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7 U.S.C. § 7465Required terms in order

submitted 30 years ago by Pub. L. 104-127 to r/title-7-AGRICULTURE · 1,237 words · no verdicts yet

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The kiwifruit order must set rules for the Board's budgets, plans, and an assessment (fee) on kiwifruit production and imports, capped at 10 cents per 7-pound tray. It spells out who collects and pays the assessment, who's exempt, how the money can and must be used, limits on administrative costs, a ban on false advertising and lobbying, required recordkeeping and audits, and confidentiality rules with criminal penalties for improper disclosure.

(a) Budgets and plans. The order must set rules for regular budgets and plans. Before each fiscal year starts, the Board submits a budget of its expected expenses to the Secretary; a budget takes effect once two-thirds of a quorum of the Board votes for it and the Secretary approves it. Each budget includes a plan for research, promotion, and consumer information, which takes effect once the Secretary approves it. With Secretary approval, the Board can contract for carrying out the plan and paying its costs using collected funds. (b) Assessments. The order must set up a fee (assessment) on kiwifruit production and imports. The rate is set by a two-thirds vote of a quorum of the Board and approved by the Secretary, but can never be more than 10 cents per 7-pound tray of kiwifruit (or an equivalent amount). Except for certain exempt people, the first handler of the kiwifruit must collect the assessment from the producer, pay it to the Board, and keep separate records for each producer's kiwifruit. Importers pay their assessment to U.S. Customs when the kiwifruit enters the country, and Customs sends it to the Board. Some people are exempt from the assessment: producers growing less than 500 pounds a year, importers bringing in less than 10,000 pounds a year, direct producer-to-consumer sales not meant for resale, and kiwifruit grown or imported for processing. To claim an exemption, a person applies to the Board explaining the basis and certifying they'll stay under the poundage limit, or is on the Board's approved list of processors. (c) Use of assessments. The Board may use assessment money to (1) pay for research, promotion, and consumer information in its budget, and other administration expenses; (2) pay other Secretary-approved costs of running the Board, including interest and penalties on late payments; and (3) fund a reserve fund allowed under section 7466(d). The Board must use assessment money to (1) reimburse the Secretary's costs (including federal salaries) for implementing and running the order, and (2) reimburse the Secretary's costs for running referenda (votes). Except in the Board's first year, its own administrative costs can't be more than 30% of its yearly budget. (d) False claims. Promotion paid for with assessment money can't make false claims about kiwifruit, or false statements about products that compete with kiwifruit. (e) Prohibition on use of funds. Assessment money can't be used to influence legislation or government policy or action, except for the Board making recommendations to the Secretary as this law allows. (f) Books, records, and reports. The Board must keep books and records of the money it receives and spends, submit reports the Secretary asks for, and submit an independent audit of its activities every fiscal year. Handlers and importers responsible for collecting or paying assessments must keep records available for Board and Secretary inspection, and file reports about the assessments as the order requires. (g) Confidentiality. Information collected under (f)(2) must be kept confidential by USDA and Board officials. It can only be shared publicly if the Secretary considers it relevant, and only in a lawsuit or hearing brought by or involving the Secretary or another U.S. official. This doesn't stop general public statements based on combined data from many handlers or importers (as long as no individual's information is identifiable), or publishing the name of someone who violated the order along with which rule they broke, if the Secretary directs it. Anyone who willfully violates this confidentiality rule can be fined up to $1,000 or imprisoned up to a year, or both, for a first offense (up to $20,000 for a later offense), and must be removed from office if they're a Board member, officer, agent, or USDA employee. (h) Withholding of information. Nothing in this law lets anyone withhold information from Congress.
the actual law source: uscode.house.gov ↗public domain
(a) Budgets and plans
(1) In general

An order issued under section 7463 of this title shall provide for periodic budgets and plans in accordance with this subsection.

(2) Budgets

The Board shall prepare and submit to the Secretary a budget prior to the beginning of the fiscal year of the anticipated expenses and disbursements of the Board in the administration of the order, including probable costs of research, promotion, and consumer information. A budget shall become effective on a ⅔-vote of a quorum of the Board and approval by the Secretary.

(3) Plans

Each budget shall include a plan for research, promotion, and consumer information regarding kiwifruit. A plan under this paragraph shall become effective on approval by the Secretary. The Board may enter into contracts and agreements, on approval by the Secretary, for—

(A)

the development and carrying out of the plan; and

(B)

the payment of the cost of the plan, with funds collected pursuant to this subchapter.

(b) Assessments
(1) In general

The order shall provide for the imposition and collection of assessments with regard to the production and importation of kiwifruit in accordance with this subsection.

(2) Rate

The assessment rate shall be the rate that is recommended by a ⅔-vote of a quorum of the Board and approved by the Secretary, except that the rate shall not exceed $0.10 per 7-pound tray of kiwifruit or an equivalent rate.

(3) Collection by first handlers

Except as provided in paragraph (5), the first handler of kiwifruit shall—

(A)

be responsible for the collection from the producer, and payment to the Board, of assessments required under this subsection; and

(B)

maintain a separate record of the kiwifruit of each producer whose kiwifruit are so handled, including the kiwifruit owned by the handler.

(4) Importers

The assessment on imported kiwifruit shall be paid by the importer to the United States Customs Service at the time of entry into the United States and shall be remitted to the Board.

(5) Exemption from assessment

The following persons or activities are exempt from an assessment under this subsection:

(A)

A producer who produces less than 500 pounds of kiwifruit per year.

(B)

An importer who imports less than 10,000 pounds of kiwifruit per year.

(C)

A sale of kiwifruit made directly from the producer to a consumer for a purpose other than resale.

(D)

The production or importation of kiwifruit for processing.

(6) Claim of exemption

To claim an exemption under paragraph (5) for a particular year, a person shall—

(A)

submit an application to the Board stating the basis for the exemption and certifying that the quantity of kiwifruit produced, imported, or sold by the person will not exceed any poundage limitation required for the exemption in the year; or

(B)

be on a list of approved processors developed by the Board.

(c) Use of assessments
(1) Authorized uses

The order shall provide that funds paid to the Board as assessments under subsection (b) may be used by the Board—

(A)

to pay for research, promotion, and consumer information described in the budget of the Board under subsection (a) and for other expenses incurred by the Board in the administration of an order;

(B)

to pay such other expenses for the administration, maintenance, and functioning of the Board (including any enforcement efforts for the collection of assessments) as may be authorized by the Secretary, including interest and penalties for late payments; and

(C)

to fund a reserve established under section 7466(d) of this title.

(2) Required uses

The order shall provide that funds paid to the Board as assessments under subsection (b) shall be used by the Board—

(A)

to pay the expenses incurred by the Secretary, including salaries and expenses of Federal Government employees, in implementing and administering the order; and

(B)

to reimburse the Secretary for any expenses incurred by the Secretary in conducting referenda under this subchapter.

(3) Limitation on use of assessments

Except for the first year of operation of the Board, expenses for the administration, maintenance, and functioning of the Board may not exceed 30 percent of the budget for a year.

(d) False claims

The order shall provide that any promotion funded with assessments collected under subsection (b) may not make—

(1)

any false claims on behalf of kiwifruit; and

(2)

any false statements with respect to the attributes or use of any product that competes with kiwifruit for sale in commerce.

(e) Prohibition on use of funds

The order shall provide that funds collected by the Board under this subchapter through assessments may not, in any manner, be used for the purpose of influencing legislation or governmental policy or action, except for making recommendations to the Secretary as provided for under this subchapter.

(f) Books, records, and reports
(1) Board

The order shall require the Board—

(A)

to maintain books and records with respect to the receipt and disbursement of funds received by the Board;

(B)

to submit to the Secretary from time to time such reports as the Secretary may require for appropriate accounting; and

(C)

to submit to the Secretary at the end of each fiscal year a complete audit report by an independent auditor regarding the activities of the Board during the fiscal year.

(2) Others

To make information and data available to the Board and the Secretary that is appropriate or necessary for the effectuation, administration, or enforcement of this subchapter (or any order or regulation issued under this subchapter), the order shall require handlers and importers who are responsible for the collection, payment, or remittance of assessments under subsection (b)—

(A)

to maintain and make available for inspection by the employees and agents of the Board and the Secretary such books and records as may be required by the order; and

(B)

to file, at the times and in the manner and content prescribed by the order, reports regarding the collection, payment, or remittance of the assessments.

(g) Confidentiality
(1) In general

The order shall require that all information obtained pursuant to subsection (f)(2) be kept confidential by all officers, employees, and agents of the Department of Agriculture and of the Board. Only such information as the Secretary considers relevant shall be disclosed to the public and only in a suit or administrative hearing, brought at the request of the Secretary or to which the Secretary or any officer of the United States is a party, involving the order with respect to which the information was furnished or acquired.

(2) Limitations

Nothing in this subsection prohibits—

(A)

the issuance of general statements based on the reports of a number of handlers and importers subject to an order, if the statements do not identify the information furnished by any person; or

(B)

the publication, by direction of the Secretary, of the name of any person violating an order issued under section 7463(a) of this title, together with a statement of the particular provisions of the order violated by the person.

(3) Penalty

Any person who willfully violates this subsection, on conviction, shall be subject to a fine of not more than $1,000 or to imprisonment for not more than 1 year, or both, and, if the person is a member, officer, or agent of the Board or an employee of the Department of Agriculture, shall be removed from office.

(h) Withholding of information

Nothing in this subchapter authorizes the withholding of information from Congress.

Source credit: (Pub. L. 104–127, title V, § 556, Apr. 4, 1996, 110 Stat. 1067.)

history & why it existsrecord from the source credit
  • 1996Enacted · Pub. L. 104-127 · 110 Stat. 1067

A history note hasn’t been published yet. The record shows enactment by Pub. L. 104-127 on 1996-04-04.

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