Laws: Cases and Codes : U.S. Code : Title 7 : Section 6304


   
U.S. Code as of: 01/03/05
Section 6304. Required terms in orders

    (a) In general
      Any order issued under this chapter shall contain the terms and
    conditions specified in this section.
    (b) Establishment and membership of United Soybean Board
      (1) In general
        The order shall provide for the establishment of, and
      appointment of members to, a United Soybean Board to administer
      the order. Members of the Board shall be soybean producers
      appointed by the Secretary, on a geographic basis, from State or
      combined units, as provided in this subsection. The cumulative
      number of seats on the Board shall be the total number of seats
      to which all the units are entitled.
      (2) Seats
        The Secretary shall establish State units and combined units
      and seats on the Board for such units, as follows:
        (A) State units
          Except as provided in subparagraph (B), each State shall be
        considered as a unit.
        (B) Combined units
          A State in which average annual soybean production is less
        than 3,000,000 bushels shall be grouped with other States into
        a combined unit. To the extent practicable, each State with
        average annual soybean production of less than 3,000,000
        bushels shall be grouped with other States with average annual
        soybean production of less than 3,000,000 bushels into a
        combined unit, in a manner prescribed in the order, and each
        combined unit shall consist of geographically contiguous
        States. To the extent practicable, each combined unit shall
        have an average annual production of soybeans of at least
        3,000,000 bushels.
        (C) Number of seats per unit
          Subject to subparagraph (F), each unit, as established under
        subparagraph (A) or (B) - 
            (i) if its average annual soybean production is less than
          15,000,000 bushels, shall be entitled to one seat on the
          Board;
            (ii) if its average annual soybean production is 15,000,000
          bushels or more but less than 70,000,000 bushels, shall be
          entitled to 2 seats on the Board;
            (iii) if its average annual soybean production is
          70,000,000 bushels or more but less than 200,000,000 bushels,
          shall be entitled to 3 seats on the Board; and
            (iv) if its average annual soybean production is
          200,000,000 bushels or more, shall be entitled to 4 seats on
          the Board.
        (D) Determination of average annual soybean production
          For purposes of subparagraphs (A), (B), (C), and (F), the
        Secretary shall determine average annual soybean production
        applicable to a crop year by using the average of the 5
        previous crops of soybeans, excluding the crop in which
        production was the highest and the crop in which production was
        the lowest.
        (E) Reapportionment of seats
          At the end of each 3 year period beginning with the 3 year
        period starting on the effective date of the order, the
        Secretary, if necessary, shall adjust any unit to conform with
        subparagraphs (A) and (B). If the Secretary makes such an
        adjustment, the Secretary shall reapportion the seats on the
        Board to conform with subparagraph (C) and any modifications
        made under subparagraph (F). If payment of refunds following
        the initial referendum conducted under section 6305(a) of this
        title is authorized by producers, in making such adjustments,
        the Secretary shall exclude, from each State's annual soybean
        production, those bushels of soybeans on which such refunds are
        paid.
        (F) Adjustment of levels of production
          At the end of each 3 year period beginning with the 3 year
        period starting on the effective date of the order, the Board
        may recommend to the Secretary, to the extent it determines
        appropriate, changes in the levels of production used in
        subparagraphs (A), (B), and (C) to determine per-unit
        representation on the Board. The Secretary may amend the order
        to make such changes in levels of production used to determine
        per-unit representation. Any such amendment to the order shall
        not be subject to a referendum of producers. A unit may not, as
        a result of any modification under this subparagraph, lose
        Board seats to which it is entitled at the time the order is
        initially issued unless its average annual production, as
        determined under subparagraph (D), declines below the levels
        required for representation, as specified in subparagraphs (A),
        (B), and (C).
      (3) Nominations
        (A) In general
          The Secretary shall appoint soybean producers to seats
        established under paragraph (2) from nominations submitted by
        each unit. Each unit shall submit to the Secretary at least two
        nominations for each appointment to the Board to which the unit
        is entitled, as determined under paragraph (2).
        (B) Method for obtaining nominations
          (i) Initially-established Board
            (I) State units
              The Secretary shall solicit nominations for each seat on
            the initially-established Board to which a State unit is
            entitled from the State soybean board in the State that
            submits satisfactory evidence to the Secretary that such
            board meets the criteria of subparagraph (A) or (B) of
            section 6302(14) of this title. If no such organization
            exists in the unit, the Secretary shall solicit nominations
            for appointments in such manner as the Secretary determines
            appropriate.
            (II) Combined units
              The Secretary shall solicit nominations for each seat on
            the initially-established Board to which a combined unit is
            entitled in such manner as the Secretary determines
            appropriate, taking into consideration the recommendations
            of any State soybean board operating in the unit that
            submits to the Secretary satisfactory evidence that such
            board meets the criteria described in subparagraph (A) or
            (B) of section 6302(14) of this title.
          (ii) Subsequent appointment
            (I) State units
              Nominations for each subsequent appointment to a seat on
            the Board to which a State unit is entitled shall be made
            by the qualified State soybean board in the unit. If no
            such organization exists in the unit, the Secretary shall
            solicit nominations for such appointment in such manner as
            the Secretary determines appropriate.
            (II) Combined units
              The Secretary shall solicit nominations for each
            subsequent appointment to the Board to which a combined
            unit is entitled in such manner as the Secretary determines
            appropriate, taking into consideration the recommendations
            of any qualified State soybean board operating in the unit.
          (iii) Rejection
            The Secretary may reject any nomination submitted by a unit
          under this paragraph. If there are insufficient nominations
          from which to appoint members to the Board as a result of the
          Secretary rejecting the nominations submitted by a unit, the
          unit shall submit additional nominations, as provided in this
          paragraph.
      (4) Terms
        Each appointment to the Board shall be for a term of 3 years,
      except that appointments to the initially-established Board shall
      be proportionately for 1-year, 2-year, and 3-year terms. No
      person may serve more than three consecutive 3-year terms.
      (5) Compensation
        Board members shall serve without compensation, but shall be
      reimbursed for their reasonable expenses incurred in performing
      their duties as members of the Board.
      (6) Temporary appointments
        (A) Appointment
          Notwithstanding paragraphs (1) through (5), the Secretary,
        under procedures established by the Secretary, shall appoint to
        the initially-established Board up to three temporary members
        to serve in addition to the members appointed as otherwise
        provided in this subsection, as the Secretary determines
        appropriate for transition purposes under the criteria set out
        in subparagraph (B). Each such temporary member shall be
        appointed for a single term not to exceed 3 years.
        (B) Representation of certain States
          The Secretary shall make temporary appointments to the
        initially-established Board to ensure, to the extent
        practicable, that each State with a State soybean board that,
        prior to November 28, 1990, was contributing State soybean
        promotion and research assessment funds to national soybean
        promotion and research efforts has representation on the
        initially-established Board that reflects the relative
        contributions of such State to the national soybean promotion
        and research effort.
      (7) Meetings
        The order shall provide for at least one meeting of the Board
      annually and specify the circumstances under which additional
      special meetings of the Board may be held.
    (c) Powers and duties of Board
      The order shall define the powers and duties of the Board and
    shall include the power and duty - 
        (1) to administer the order in accordance with the terms and
      provisions of the order;
        (2) to make regulations to effectuate the terms and provisions
      of the order;
        (3) if the Board exercises its authority to establish the
      Committee described in subsection (g) of this section - 
          (A) to elect members of the Board to serve on the Committee;
        and
          (B) if the Board assigns to the Committee the power to
        develop and submit budgets as provided for in subsection (h)(1)
        of this section, to approve, modify, or reject budgets
        submitted by the Committee;

        (4) to submit budgets to the Secretary for the approval or
      disapproval of the Secretary;
        (5) to contract with appropriate persons to implement plans or
      projects;
        (6) to contract with qualified State soybean boards to
      implement programs in their States;
        (7) to receive, investigate, and report to the Secretary
      complaints of violations of the order;
        (8) to recommend to the Secretary amendments to the order;
        (9) to provide the Secretary with prior notice of meetings of
      the Board and meetings of committees of the Board to permit the
      Secretary, or a designated representative, to attend such
      meetings; and
        (10) to provide not less than annually a report to producers
      accounting for funds and describing programs implemented, and
      such reports shall be made available to the public on request.
    (d) Board voting procedures
      (1) In general
        The order shall establish procedures for the conduct of voting
      by the Board, as provided in this subsection. On or after the end
      of the 3-year period beginning on the effective date of the
      order, the Board may recommend to the Secretary changes in the
      voting procedures of the Board and the Secretary may amend the
      order to make such changes. Such changes shall not be subject to
      a referendum of producers.
      (2) Number of votes per member
        Each member of the Board shall be entitled, in any vote
      conducted by the Board, to cast the number of votes determined
      under the following rules:
        (A) In general
          Each member shall be entitled to cast one vote unless a roll
        call vote is conducted. On a roll call vote, each member shall
        be entitled to cast such additional votes as are assigned to
        the member under subparagraph (B).
        (B) Additional votes
          The additional votes that each member is assigned for roll
        call votes shall be computed as follows:
          (i) Assessment level
            Except as provided in clause (ii), each unit shall be
          allotted one vote for each percent, or portion of a percent,
          of the total amount of assessments remitted to the Board that
          was remitted from the unit (net of any refunds made under
          subsection (l)(2) of this section), on the average, during
          each of the 3 previous fiscal years of the Board.
          (ii) First three fiscal years
            (I) First fiscal year
              During the first fiscal year of the Board, each unit
            shall be allotted one vote for each percent, or portion of
            a percent, of the total production of soybeans in the
            United States that was produced in the unit, on the
            average, during each of the 3 immediately preceding crop
            years.
            (II) Second and third fiscal years
              The order shall provide appropriate adjustments of the
            procedure for the allotment of votes under clause (i) to
            apply to allotments of votes during the second and third
            fiscal years of the Board.
          (iii) Division of votes within units
            A unit's total votes under clause (i) or (ii) shall be
          divided equally among all the members present and voting
          representing that unit. The procedures established by the
          order shall provide for the equitable disposition of
          fractional votes assigned to a member under such division of
          a unit's vote.
      (3) Motions
        (A) In general
          Except as provided in subparagraph (B), a motion shall carry
        if approved by a simple majority of members of the Board
        casting votes.
        (B) Roll call votes
          Any member of the Board may call for a roll call vote on any
        motion. Except as otherwise provided in the bylaws adopted by
        the Board, whenever a roll call vote is conducted, the motion
        shall carry only if it is approved by a simple majority of all
        votes cast and a simple majority of all units voting (with the
        vote of each unit determined by a simple majority of all votes
        cast by members in that unit).
      (4) Committee votes
        In any vote conducted by a committee of the Board, each member
      of the committee shall have one vote.
      (5) Proxies
        A member may not cast votes by proxy.
    (e) Budgets
      (1) In general
        The order shall provide that the Board shall develop budgets on
      a fiscal year basis of anticipated expenses and disbursements
      under the order, including probable costs of administration and
      promotion, research, consumer information, and industry
      information projects. The Board shall submit such budgets or any
      substantial modification thereof to the Secretary for the
      Secretary's approval.
      (2) Limitation
        No expenditure of funds may be made by the Board unless such
      expenditure is authorized under a budget or modification approved
      by the Secretary.
    (f) Plans and projects
      The order shall provide that the Board shall review or, on its
    own initiative, develop plans or projects of promotion, research,
    consumer information, and industry information, to be paid for with
    funds received by the Board. Such plans or projects shall not
    become effective until approved by the Secretary.
    (g) Soybean Program Coordinating Committee
      (1) Establishment
        The order may authorize the Board to establish a Soybean
      Program Coordinating Committee to assist in the administration of
      the order, as provided in this subsection.
      (2) Membership
        (A) Composition
          The Committee shall be composed of members such that - 
            (i) not less than two-thirds of the Committee shall be
          members of the Board, including - 
              (I) the Chairperson and Treasurer of the Board; and
              (II) additional members of the Board elected by the
            Board; and

            (ii) not more than one-third of the Committee shall be
          producers elected by the national, nonprofit soybean
          producer-governed organization that conducts activities on
          behalf of State soybean boards and that, on November 28,
          1990, conducts activities to promote soybeans and soybean
          products as a cooperator with the Foreign Agricultural
          Service of the Department.
        (B) Certification
          To serve on the Committee, each producer elected by the
        national, nonprofit soybean producer-governed organization
        shall be certified by the Secretary as a producer who is duly
        elected by such organization as a representative to the
        Committee.
      (3) Terms
        Terms of appointment to the Committee shall be for 1 year. No
      person may serve on the Committee for more than 6 consecutive
      terms.
      (4) Compensation
        Committee members shall serve without compensation, but shall
      be reimbursed for their reasonable expenses incurred in
      performing duties for the Committee.
      (5) Chairperson
        The Chairperson of the Board shall serve as Chairperson of the
      Committee.
      (6) Quorum
        A quorum of the Committee shall consist of the number of
      members of the Committee equal to three-fourths of the total
      membership of the Committee.
    (h) Powers and duties of Committee
      The order shall define the powers and duties that the Board may
    assign to the Committee, which may include the following:
      (1) Budgets
        The Board may assign to the Committee the power to develop and
      submit to the Board, for approval, budgets on a fiscal year
      basis, as provided for in subsection (e) of this section. The
      Board shall review and approve, reject, modify, or substitute a
      budget proposed by the Committee, and submit budgets to the
      Secretary for the Secretary's approval under subsection (e) of
      this section.
      (2) Plans and projects
        The Board may assign to the Committee the power to review, or
      on its own initiative develop, plans or projects for promotion,
      research, consumer information, and industry information
      activities, to be paid for with funds received by the Board as
      provided for in subsection (f) of this section. Each such plan or
      project shall be presented to the Board for approval.
      (3) Voting
        A recommendation to be presented to the Board relating to
      proposed budgets or proposed plans and projects shall require the
      concurring vote of at least two-thirds of the members present at
      a meeting of the Committee.
    (i) Administration
      (1) Expenses
        The order shall provide that the Board shall be responsible for
      all expenses of the Board.
      (2) Staff
        (A) In general
          The order shall provide that the Board may establish an
        administrative staff or facilities of its own or contract for
        the use of the staff and facilities of national, nonprofit,
        producer-governed organizations that represent producers of
        soybeans.
        (B) Limitation on salaries
          If the Board establishes an administrative staff of its own,
        the Board is authorized to expend for administrative staff
        salaries and benefits an amount not to exceed one percent of
        the projected level of assessments to be collected by the
        Board, net of any refunds to be made under subsection (l)(2) of
        this section, for that fiscal year.
        (C) Reimbursement of organization
          If the staff of national, nonprofit, producer-governed
        organizations that represent producers of soybeans are used by
        the Board, the staff of such organizations shall not receive
        compensation directly from the Board, but such organizations
        shall be reimbursed for the reasonable expenses of their
        staffs, including salaries, incurred in performing staff duties
        on behalf of, and authorized by, the Board.
      (3) Limitation on administrative costs
        The order shall provide that costs incurred by the Board in
      administering the order (including the cost of staff but not
      including administrative costs incurred by the Secretary) during
      any fiscal year shall not exceed 5 percent of the projected level
      of assessments to be collected by the Board, net of any refunds
      to be made under subsection (l)(2) of this section, for that
      fiscal year.
    (j) Contracts and agreements
      (1) Authority
        To ensure coordination and efficient use of funds, the order
      shall provide that the Board may enter into contracts or
      agreements for the implementation and carrying out of the
      activities authorized by this chapter with national, nonprofit,
      producer-governed organizations that represent producers of
      soybeans, and for the payment thereof with funds received by the
      Board under the order.
      (2) Coordination
        To enhance coordination, the Board, when entering into
      contracts or agreements for the implementation and carrying out
      of activities authorized by this chapter, shall ensure that all
      plans or projects implemented for consumer information, industry
      information, promotion, or research are each implemented by a
      single entity. There shall not be in force, at any one time, more
      than one contract or agreement for implementation of plans or
      projects for consumer information, for industry information, for
      promotion, or for research, except that, upon approval of the
      Secretary, the Board may contract with qualified State soybean
      boards to implement plans or projects within their respective
      States.
      (3) Terms
        Any contract or agreement entered into under this subsection
      shall provide that - 
          (A) the contracting party shall develop and submit to the
        Board a plan or project together with a budget or budgets that
        shall show estimated costs to be incurred for such plan or
        project;
          (B) the plan or project shall not become effective until it
        has been approved by the Secretary; and
          (C) the contracting party shall keep accurate records of all
        of its transactions, account for funds received and expended,
        including staff time, salaries, and expenses expended on behalf
        of Board activities, make periodic reports to the Board of
        activities conducted, and make such other reports as the Board
        or the Secretary may require.
      (4) Communications to producers
        The order may provide that - 
          (A) the Board may enter into contracts or agreements with
        qualified State soybean boards that apply therefor and agree to
        the terms thereof, for the implementation of plans or projects
        to coordinate and facilitate communications to producers
        regarding the conduct of activities under the order and for the
        payment of the costs of the plans or projects with funds
        received by the Board under the order; and
          (B) to facilitate the funding of plans or projects described
        in subparagraph (A), if the order does not authorize the
        payment of refunds, the Board shall allocate for such funding
        each year an amount not less than the cumulative amount of all
        producer contributions to qualified State soybean boards during
        the previous year that the State boards were unable to retain,
        and forwarded to the Board, because producers received refunds
        on such State contributions, as determined by the Board based
        on information submitted by the qualified State soybean boards.
      (5) Apportionment of funds to qualified State soybean boards
        (A) In general
          In using the funds allocated each year under paragraph (4)(B)
        for payment of the costs of contracts or agreements described
        in paragraph (4)(A), subject to subparagraph (B), the Board
        shall apportion such allocated funds among States so that each
        qualified State soybean board receives an amount equal to the
        amount of such allocated funds attributable to refunds in the
        State during the previous year, as determined by the Board
        based on information submitted by the qualified State soybean
        boards.
        (B) Exception
          The Board shall not be required to apportion funds to a
        qualified State soybean board, as provided in subparagraph (A),
        if - 
            (i) the qualified State soybean board has not entered into
          a contract or agreement with the Board for the implementation
          of plans or projects described in paragraph (4)(A); or
            (ii) the amount to be apportioned to the qualified State
          soybean board is less than the cost to the Board of
          overseeing the use of such apportionment during the year
          involved, and the contract or agreement shall so provide.
    (k) Books and records of Board
      The order shall require the Board to - 
        (1) maintain such books and records, which shall be available
      to the Secretary for inspection and audit, as the Secretary may
      prescribe;
        (2) prepare and submit to the Secretary, from time to time,
      such reports as the Secretary may prescribe; and
        (3) account for the receipt and disbursement of all funds
      entrusted to the Board.

    The Board shall cause its books and records to be audited by an
    independent auditor at the end of each fiscal year and a report of
    such audit to be submitted to the Secretary. The Secretary shall
    make such report available to the public upon request.
    (l) Assessments
      (1) In general
        (A) First purchasers
          (i) Collection
            The order shall provide that each first purchaser of
          soybeans from a producer shall collect, in the manner
          prescribed by the order, an assessment from the producer and
          remit the assessment to the Board. The Board shall use
          qualified State soybean boards to collect such assessments in
          States in which such boards operate.
          (ii) Rate
            The rate of assessment prescribed by the order shall be
          one-half of 1 percent of the net market price of soybeans
          sold by the producer to the first purchaser.
          (iii) One assessment
            No more than one assessment shall be made on any soybeans.
        (B) Direct processing
          The order shall provide that any person processing soybeans
        of that person's own production and marketing such soybeans or
        soybean products made from such soybeans shall remit to the
        Board or the qualified State soybean board, in the manner
        prescribed by the order, an assessment established at a rate
        equivalent to the rate provided for in subparagraph (A)(ii).
      (2) Refunds
        (A) Refunds prior to initial referendum
          (i) In general
            The order shall provide that, during the period prior to
          the approval of the continuation of the initial order in the
          referendum provided for in section 6305(a) of this title, as
          determined by the Secretary, each producer shall have the
          right to demand and receive from the Board a refund of any
          assessment collected from such producer if - 
              (I) such producer is responsible for paying the
            assessment; and
              (II) such producer does not support the programs,
            projects, or activities implemented under the order.
          (ii) By Board
            During the period referred to in clause (i), refunds shall
          be provided equally from the Board and, where applicable, the
          qualified State soybean board, as determined by the
          Secretary.
        (B) Administration
          Subject to subparagraph (C)(i), any demand by a producer for
        a refund of an assessment under this paragraph shall be made in
        accordance with regulations, on a form, and within the time
        period (not to exceed 90 days) prescribed by the Board.
        (C) Submission of refund demands
          (i) In general
            In each State in which a qualified State soybean board
          collects assessments, as provided in paragraph (1)(A)(i),
          producers shall submit demands for refunds of assessments to
          the qualified State soybean board. Such board shall provide
          notice to producers, in a manner prescribed by the Board, of
          their right to such refunds, and shall process such
          submissions under procedures established by State law
          applicable to refunds of assessments on soybeans, except that
          if no refunds are allowed under State law, such submissions
          shall be processed under procedures established under this
          paragraph.
          (ii) No qualified State soybean board
            In each State in which there is no qualified State soybean
          board, producers shall submit demands for refunds of
          assessments directly to the Board.
        (D) Time limit for making refund
          Subject to subparagraph (C)(i), each refund to a producer of
        an assessment under this paragraph shall be made as soon as
        practicable, but in no event more than 60 days, after
        submission of proof satisfactory to the qualified State soybean
        board or the Board that the producer paid the assessment for
        which refund is demanded.
        (E) Order not favored
          If the Secretary determines that producers do not favor the
        continuation of the order in the referendum provided for in
        section 6305(a) of this title, refunds shall be made under this
        paragraph on collected assessments until such collections are
        terminated, as provided in section 6305(a) of this title.
        (F) Refunds after initial referendum
          (i) In general
            The order shall contain provisions relating to refunds
          after the approval of the order in the initial referendum
          under section 6305(a) of this title as required in this
          subparagraph.
          (ii) Availability
            Effective for the period beginning on the date the
          Secretary determines the result of the initial referendum
          under section 6305(a) of this title and ending on a date (not
          later than 18 months thereafter) established by the
          Secretary, the qualified State soybean board and, where no
          qualified State soybean board exists, the Board shall make
          refunds available to soybean producers at the end of the
          fiscal year from escrowed funds, as provided for in clause
          (vii). Such refunds shall be made available, under the
          procedures specified in subparagraphs (A) through (D) to the
          extent not inconsistent with this subparagraph, to producers
          who have requested refunds during such period.
          (iii) Poll
            Not later than the end of the period provided for in clause
          (ii), the Secretary shall conduct a poll of soybean
          producers, using the procedures provided for in section
          6305(b)(3) of this title, to determine if producers support
          the conduct of a referendum on the continuance of the payment
          of refunds under the order.
          (iv) Referendum
            If the Secretary determines, based on the poll conducted
          under clause (iii), that the conduct of a referendum is
          supported by at least 20 percent of the producers (not in
          excess of one-fifth of which may be producers in any one
          State) who, during a representative period, have been engaged
          in the production of soybeans, the Secretary shall conduct a
          referendum among all such producers for the purpose of
          determining whether such producers favor the continuation of
          the payment of refunds under the order. Such referendum shall
          be conducted, under the procedures provided for in section
          6305 of this title, not later than 1 year after the Secretary
          determines, based on the poll, that the referendum is
          required.
          (v) Continued refunds
            If the Secretary conducts a referendum under clause (iv),
          the qualified State soybean board and, where no qualified
          State soybean board exists, the Board shall continue to make
          refunds available to producers as provided for in clause (ii)
          during the period prior to the conduct of the referendum,
          which shall be payable at the end of the period from the
          escrowed funds, as provided in clause (vii).
          (vi) Continuation or cessation of refunds
            If the Secretary determines, in the referendum conducted
          under clause (iv), that continuation of the payment of
          refunds is favored by a majority of the producers voting in
          such referendum, the qualified State soybean board and, where
          no qualified State soybean board exists, the Board shall
          continue to make refunds available to producers as provided
          for in clause (ii) for each 1-year period that follows until
          such time as soybean producers approve an amendment to the
          order to eliminate such refunds. Such refunds shall be
          payable at the end of each such 1-year period from escrowed
          funds, as provided in clause (vii). If the Secretary
          determines in the referendum that continuation of such
          refunds is not favored by a majority of producers voting in
          the referendum, the right to such refunds shall cease
          immediately.
          (vii) Escrow accounts
            (I) Establishment
              The qualified State soybean board and, for producers in
            States where no qualified State soybean board exists, the
            Board shall establish escrow accounts to be used to pay
            refunds under clause (ii) and, if necessary, clauses (v)
            and (vi).
            (II) Separate accounts
              The qualified State soybean board and, where no qualified
            State soybean board exists, the Board shall establish
            separate escrow accounts for each State from which producer
            assessments are collected for the purpose of making refunds
            under clauses (ii), (v), and (vi), respectively.
            (III) Deposits
              The qualified State soybean board and, where no qualified
            State soybean board exists, the Board shall deposit into
            its escrow account for refunds under clause (ii), (v), or
            (vi), as appropriate, 10 percent of the total assessment
            collected by the qualified State soybean board and, where
            no qualified State soybean board exists, the Board
            (including the assessment provided under paragraph (2) and
            contributions by producers to qualified State soybean
            boards under paragraph (4)), during the time period
            involved.
            (IV) Refunds made from escrow account
              Refunds requested by producers from a State under clause
            (ii) (or if refunds are available under clause (v) or (vi))
            during the time period involved shall be made from the
            escrow account that is applicable to that clause for such
            State.
            (V) Proration
              If the funds deposited in a State account established
            under subclause (I) for purposes described under clauses
            (ii), (v), and (vi) are not sufficient to honor all
            requests for refunds made by producers from that State
            during the time period involved, the qualified State
            soybean board and, where no qualified State soybean board
            exists, the Board shall prorate the amount of such refunds
            from the State's account among all producers from that
            State that request refunds.
            (VI) Surplus funds
              Any funds not refunded to producers in a State under this
            clause shall be divided equally between the Board and the
            qualified State soybean board of such State. Such funds
            shall be used to carry out programs under this chapter.
            (VII) Refund period
              In applying this clause to refunds under clause (vi),
            each annual refund period shall be treated separately.
      (3) Use
        The assessments (net of any refunds under paragraph (2)) shall
      be used for - 
          (A) payment of the expenses incurred in implementation and
        administration of the order;
          (B) the establishment of a reasonable reserve; and
          (C) reimbursement to the Secretary of administrative costs
        incurred by the Secretary to implement and administer the
        order, other than one-half of the cost incurred for the
        referendum conducted under paragraph (2)(F).
      (4) Credit for contributions to qualified State soybean boards
        A producer who can establish that such producer is contributing
      to a qualified State soybean board shall receive credit, in
      determining the assessment due to the Board from such producer,
      for contributions to the qualified State soybean board of up to
      one-quarter of 1 percent of the net market price of soybeans or
      the equivalent thereof. For purposes of this chapter, there shall
      be only one qualified State soybean board in each State. A
      producer may receive a credit under this paragraph only if the
      contribution is to the qualified State soybean board in the State
      in which the soybeans are produced, except that the Board, with
      the approval of the Secretary, may authorize exceptions to such
      State-of-origin rule as are appropriate to ensure effective
      coordination of collection procedures among States.
      (5) Single process of assessment
        The procedures in the order for the collection of assessments
      shall ensure, to the extent practicable, that such soybeans are
      subject to a single process of assessment under the order.
    (m) Credit for certain costs to States
      The order shall provide that the Board may provide a credit to
    each qualified State soybean board of an amount not to exceed
    one-half of any fees paid to State governmental agencies or first
    purchasers for collection of the assessments if the payment of such
    fees by the qualified State soybean board is required by State law
    enacted prior to November 28, 1990, except that the Board may not
    provide a credit to any qualified State soybean board of an amount
    that exceeds 2.5 percent of the amount of assessments collected and
    remitted to the Board under subsection (l) of this section.
    (n) Minimum level of assessments to States
      (1) Pre-referendum period
        The order shall contain provisions to ensure that, during the
      period prior to the conduct of the referendum provided for in
      section 6305(a) of this title, each qualified State soybean board
      receives annually an amount of funds equal to the average amount
      that the State board collected from assessments during each of
      the State board's fiscal years 1984 through 1988 (excluding the
      year in which such collections were the highest and the year in
      which such collections were the lowest), as determined by the
      Secretary and subject to paragraph (3).
      (2) Post-referendum period
        The order shall provide, effective after the conduct of the
      referendum provided for in section 6305(a) of this title, subject
      to paragraph (3), that the Board annually shall provide a credit
      to each qualified State soybean board of an amount by which - 
          (A) the amount equal to 1 cent times the average number of
        bushels of soybeans produced in the State during each of the
        preceding 5 years (excluding the year in which the production
        is the highest and the year in which the production is the
        lowest); exceeds
          (B) the total amount collected by the qualified State soybean
        board from assessments on producers minus the amount of
        assessments remitted to the Board during such year under
        subsection (l) of this section.
      (3) Limitation
        The total amount of credits under paragraph (1) or (2) and
      assessments retained by the qualified State soybean board for a
      year may not exceed the total amount of assessments collected in
      that State under subsection (l) of this section (net of any
      refunds made under paragraph (2) of subsection (l) of this
      section) in that year.
    (o) Investment of funds
      (1) In general
        The order shall provide that the Board, with the approval of
      the Secretary, may invest assessment funds collected by the Board
      under the order, pending their disbursement, only in - 
          (A) obligations of the United States or any agency thereof;
          (B) general obligations of any State or any political
        subdivision thereof;
          (C) any interest-bearing account or certificate of deposit of
        a bank that is a member of the Federal Reserve System; or
          (D) obligations fully guaranteed as to principal and interest
        by the United States.
      (2) Income
        Income from any such investment may be used for any purpose for
      which the invested funds may be used.
    (p) Prohibition on use of funds to influence governmental action
      (1) In general
        Except as otherwise provided in paragraph (2), the order shall
      prohibit any funds collected by the Board under the order from
      being used in any manner for the purpose of influencing
      legislation or governmental action or policy.
      (2) Exceptions
        Paragraph (1) shall not apply to - 
          (A) the development and recommendation of amendments to the
        order;
          (B) the communication to appropriate government officials of
        information relating to the conduct, implementation, or results
        of promotion, research, consumer information, or industry
        information activities under the order; or
          (C) any action designed to market soybeans or soybean
        products directly to a foreign government or political
        subdivision thereof.
    (q) Books and records of first purchasers and certain producers
      (1) Recordkeeping
        (A) In general
          The order shall require that each first purchaser of soybeans
        and any person processing soybeans of that person's own
        production maintain and make available for inspection by the
        Board or the Secretary such books and records as may be
        required by the order and file reports at the time, in the
        manner, and having the content prescribed by the order. The
        order shall exempt small producers processing soybeans of their
        own production from such recordkeeping and reporting
        requirements if they are not required to pay assessments under
        the order.
        (B) "Small producer" defined
          The order shall define the term "small producer" as such term
        is used in subparagraph (A).
      (2) Use of information
        (A) In general
          Information maintained under paragraph (1) shall be made
        available to the Secretary as is appropriate for the
        administration or enforcement of this chapter, or any order or
        regulation issued under this chapter.
        (B) Other information
          The Secretary shall authorize the use under this chapter of
        information regarding first purchasers that is accumulated
        under a law or regulation other than this chapter or
        regulations under this chapter.
      (3) Confidentiality
        (A) In general
          Except as otherwise provided in this chapter, commercial or
        financial information that is obtained under paragraph (1) or
        (2) and that is privileged or confidential shall be kept
        confidential by all officers and employees of the Department,
        members of the Board, and agents of the Board.
        (B) Permitted uses
          Information obtained under the authority of this chapter
        shall be made available to any agency or officer of the Federal
        Government for - 
            (i) the implementation of this chapter;
            (ii) any investigatory or enforcement action necessary for
          the implementation of this chapter; or
            (iii) any civil or criminal law enforcement activity if the
          activity is authorized by law.
        (C) Other exceptions
          Nothing in subparagraph (A) may be deemed to prohibit - 
            (i) the issuance of general statements, based on the
          reports, of the number of persons subject to an order or
          statistical data collected therefrom, which statements do not
          identify the information furnished by any person; or
            (ii) the publication, by direction of the Secretary, of the
          name of any person violating any order, together with a
          statement of the particular provisions of the order violated
          by such person.
      (4) Penalty
        Any person who willfully violates the provisions of this
      subsection, upon conviction, shall be subject to a fine of not
      more than $1,000, or to imprisonment for not more than one year,
      or both, and, if a member or an agent of the Board or an officer
      or employee of the Department, shall be removed from office.
    (r) Incidental terms and conditions
      The order shall provide terms and conditions, not inconsistent
    with the provisions of this chapter, as necessary to effectuate the
    provisions of the order, including provisions for the assessment of
    a penalty for each late payment of assessments under subsection (l)
    of this section.



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