1. U.S. Code
  2. title 7
  3. chapter 93
  4. § 6410

Collapse to view only § 6410. Petition and review

§ 6401. Findings and declaration of policy
(a) Findings
Congress finds that—
(1) fluid milk products are basic foods and are a primary source of required nutrients such as calcium, and otherwise are a valuable part of the human diet;
(2) fluid milk products must be readily available and marketed efficiently to ensure that the people of the United States receive adequate nourishment;
(3) the dairy industry plays a significant role in the economy of the United States, in that milk is produced by thousands of milk producers and dairy products (including fluid milk products) are consumed every day by millions of people in the United States;
(4) the processing of milk into fluid milk products and the marketing of such products are important to the dairy industry because the fluid milk segment of the dairy market contributes substantially to ensuring that the prices paid to milk producers for raw milk are stable and adequate to maintain the overall strength of the dairy industry;
(5) the maintenance and expansion of markets for fluid milk products are vital to the Nation’s fluid milk processors and milk producers, as well as to the general economy of the United States;
(6) the congressional purpose underlying this chapter is to maintain and expand markets for fluid milk products, not to maintain or expand any processor’s share of those markets and that the chapter does not prohibit or restrict individual advertising or promotion of fluid milk products since the programs created and funded by this chapter are not extended to replace individual advertising and promotion efforts;
(7) the cooperative development, financing, and implementation of a coordinated program of advertising and promotion of fluid milk products is necessary to maintain and expand markets for fluid milk products;
(8) it is appropriate to finance the cooperative program described in paragraph (6) 1
1 So in original. Probably should be paragraph “(7)”.
with self-help assessments paid by the fluid milk processors; and
(9) fluid milk products move in interstate and foreign commerce, and fluid milk products that do not move in such channels of commerce directly burden or affect interstate commerce in fluid milk products.
(b) Policy
(Pub. L. 101–624, title XIX, § 1999B, Nov. 28, 1990, 104 Stat. 3914; Pub. L. 104–127, title I, § 146(a), (b), Apr. 4, 1996, 110 Stat. 918.)

CITE AS: 7 USC 6401

§ 6402. Definitions
As used in this chapter:
(1) Advertising
(2) Board
(3) Fluid milk product
The term “fluid milk product” has the meaning given the term in—
(A) section 1000.15 of title 7, Code of Federal Regulations, subject to such amendments as may be made by the Secretary; or
(B) any successor regulation.
(4) Fluid milk processor
(5) Department
(6) Research
(7) Secretary
(8) United States
(Pub. L. 101–624, title XIX, § 1999C, Nov. 28, 1990, 104 Stat. 3915; Pub. L. 103–72, § 2(a), Aug. 11, 1993, 107 Stat. 717; Pub. L. 104–127, title I, § 146(c), Apr. 4, 1996, 110 Stat. 918; Pub. L. 107–171, title I, § 1506(a), (b), May 13, 2002, 116 Stat. 210.)

CITE AS: 7 USC 6402

§ 6403. Authority to issue orders
(a) In general
To effectuate the declared policy under section 6401(b) of this title, the Secretary shall issue and from time to time may amend, orders applicable to all fluid milk processors, authorizing—
(1) the collection of assessments on fluid milk products subject to this chapter; and
(2) the use of the assessments to provide research and advertising in a manner prescribed by this chapter.
(b) Scope
(c) One order
(Pub. L. 101–624, title XIX, § 1999D, Nov. 28, 1990, 104 Stat. 3916.)

CITE AS: 7 USC 6403

§ 6404. Notice and comment

Not later than 60 days after the Secretary receives a request for the issuance of an order under this chapter, and a specific proposal for an order from individual fluid milk processors that marketed during a representative period, as determined by the Secretary, not less than 30 percent of the volume of fluid milk products marketed by all processors, the Secretary shall publish the proposed order and give due notice and opportunity for public comment on the proposed order.

(Pub. L. 101–624, title XIX, § 1999E, Nov. 28, 1990, 104 Stat. 3916.)

CITE AS: 7 USC 6404

§ 6405. Findings and issuance of orders
(a) In general
(b) Effective date
(Pub. L. 101–624, title XIX, § 1999F, Nov. 28, 1990, 104 Stat. 3916.)

CITE AS: 7 USC 6405

§ 6406. Regulations

The Secretary may issue such regulations as may be necessary to carry out this chapter and the powers vested in the Secretary by this chapter.

(Pub. L. 101–624, title XIX, § 1999G, Nov. 28, 1990, 104 Stat. 3916.)

CITE AS: 7 USC 6406

§ 6407. Required terms in orders
(a) In general
(b) National Processor Advertising and Promotion Board
(1) Establishment
(2) Service to entire industry
(3) Regions
(4) Board membership
(5) Terms of office
(6) Compensation
(c) Powers and duties of Board
The order shall define the powers and duties of the Board, which shall include the power and duty—
(1) to administer the order in accordance with the terms and conditions of the order;
(2) to make rules to effectuate the terms and conditions of the order;
(3) to receive, investigate, and report to the Secretary complaints of violations of the order;
(4) to develop and recommend such rules, regulations, and amendments to the order to the Secretary for approval as may be necessary for the development and execution of programs or projects to carry out the order;
(5) to employ such persons as the Board considers necessary and determine the compensation and define the duties of the persons;
(6) to prepare and submit for the approval of the Secretary, prior to the beginning of each fiscal year, a fiscal year budget of the anticipated expenses in the administration of the order, including the probable costs of all programs and projects;
(7) to develop programs and projects, subject to subsection (d);
(8) to enter into contracts or agreements, with the approval of the Secretary, to develop and carry out programs or projects of research and advertising;
(9) to carry out advertising or research, and pay the costs of the projects with funds collected pursuant to section 6409 of this title;
(10) to keep minutes, books, and records that reflect all of the acts and transactions of the Board, and promptly report minutes of each Board meeting to the Secretary;
(11) to furnish the Secretary with such other information as the Secretary may require; and
(12) to invest funds collected by the Board pursuant to subsection (g).
(d) Plans and budgets
(1) Budgets
(2) Incurring expenses
(3) Paying expenses
(4) Limitation on spending
(e) Prohibition on branded advertising
(f) Contracts and agreements
(1) In general
(2) Requirements
Any such contract or agreement shall provide that—
(A) the contracting party shall develop and submit to the Board a program or project, together with a budget or budgets that shall disclose estimated costs to be incurred for such program or project;
(B) the program or project shall become effective on the approval of the Secretary; and
(C) the contracting party shall keep accurate records of all of the transactions of the contracting party, account for funds received and expended, make periodic reports to the Board of activities conducted, and make such other reports as the Board or the Secretary may require.
(g) 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 disbursement of the funds, 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
(h) Books and records of Board
(1) In general
The order shall require the Board to—
(A) maintain such books and records (which shall be available to the Secretary for inspection and audit) as the Secretary may prescribe;
(B) prepare and submit to the Secretary, from time to time, such reports as the Secretary may prescribe; and
(C) account for the receipt and disbursement of all funds entrusted to the Board.
(2) Audits
(i) Books and records of processors
(1) In general
(2) Use of information
(3) Confidentiality
(A) In general
(B) Availability of information
(C) Other exceptions
Nothing in subparagraph (A) may be construed 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 from the persons, 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 the person.
(4) Penalty
(5) Withholding information
(6) Time requirement
(j) Prohibition on use of funds to influence governmental action
(1) In general
(2) Exception
(k) Coordination
(l) Exemptions
(m) Report
(n) Other terms and conditions
(Pub. L. 101–624, title XIX, § 1999H, Nov. 28, 1990, 104 Stat. 3916.)

CITE AS: 7 USC 6407

§ 6408. Permissive terms
(a) In general
(b) Advertising
(c) Research and development
(d) Reserve funds
(e) Other terms
(Pub. L. 101–624, title XIX, § 1999I, Nov. 28, 1990, 104 Stat. 3920.)

CITE AS: 7 USC 6408

§ 6409. Assessments
(a) In general
(b) No effect on producer prices
Such assessments shall not—
(1) reduce the prices paid under the Federal milk marketing orders issued under section 608c of this title;
(2) otherwise be deducted from the amounts that handlers must pay to producers for fluid milk products sold to a processor; or
(3) otherwise be deducted from the price of milk paid to a producer by a handler, as determined by the Secretary.
(c) Remitting assessments
(1) In general
(2) Time to remit assessment
(3) Verification
(d) Limitation on assessments
(e) Producer-handlers
(f) Processor assessment rate
(Pub. L. 101–624, title XIX, § 1999J, Nov. 28, 1990, 104 Stat. 3921; Pub. L. 103–72, § 2(b), Aug. 11, 1993, 107 Stat. 717.)

CITE AS: 7 USC 6409

§ 6410. Petition and review
(a) Petition
(1) In general
A person subject to an order issued under this chapter may file with the Secretary a petition—
(A) stating that the order, any provision of the order, or any obligation imposed in connection with the order is not established in accordance with law; and
(B) requesting a modification of the order or an exemption from the order.
(2) Hearings
(3) Ruling
(b) Review
(1) Commencement of action
(2) Process
(3) Remands
If the court determines that such ruling is not in accordance with law, the court shall remand the matter to the Secretary with directions either—
(A) to make such ruling as the court shall determine to be in accordance with law; or
(B) to take such further proceedings as, in the opinion of the court, the law requires.
(Pub. L. 101–624, title XIX, § 1999K, Nov. 28, 1990, 104 Stat. 3921.)

CITE AS: 7 USC 6410

§ 6411. Enforcement
(a) Jurisdiction
(b) Referral to Attorney General
(c) Civil penalties and orders
(1) Civil penaltiesAny person who violates any provision of any order or regulation issued by the Secretary under this chapter, or who fails or refuses to pay, collect, or remit any assessment or fee duly required of the person under the order or regulations, may be assessed—
(A) a civil penalty by the Secretary of not less than $500 nor more than $5,000 for each such violation; or
(B) in the case of a willful failure or refusal to pay, collect, or remit any assessment or fee duly required of the person under this chapter or a regulation issued under this chapter, a civil penalty by the Secretary of not less than $10,000 nor more than $100,000 for each such violation.
Each violation shall be a separate offense.
(2) Cease-and-desist orders
(3) Notice and hearing
(4) Finality
(d) Review by district court
(1) Commencement of actionAny person against whom a violation is found and a civil penalty assessed or cease-and-desist order issued under subsection (c) may obtain review of the penalty or order by—
(A) filing, within the 30-day period beginning on the date the penalty is assessed or order issued, a notice of appeal in—
(i) the district court of the United States for the district in which the person resides or carries on business; or
(ii) the United States District Court for the District of Columbia; and
(B) simultaneously sending a copy of the notice by certified mail to the Secretary.
(2) Record
(3) Standard of review
(e) Failure to obey orders
(f) Failure to pay penalties
(g) Additional remedies
(Pub. L. 101–624, title XIX, § 1999L, Nov. 28, 1990, 104 Stat. 3922; Pub. L. 102–237, title VIII, § 809, Dec. 13, 1991, 105 Stat. 1883.)

CITE AS: 7 USC 6411

§ 6412. Investigations and power to subpoena
(a) Investigations
The Secretary may make such investigations as the Secretary considers necessary—
(1) for the effective administration of this chapter; or
(2) to determine whether any person has engaged or is engaging in any act that constitutes a violation of this chapter, or any order, rule, or regulation issued under this chapter.
(b) Subpoenas, oaths, and affirmations
(1) In general
(2) Administrative hearings
(c) Aid of courts
(d) Contempt
(e) Process
(f) Hearing site
(Pub. L. 101–624, title XIX, § 1999M, Nov. 28, 1990, 104 Stat. 3924.)

CITE AS: 7 USC 6412

§ 6413. Requirement of initial referendum
(a) In general
(b) Implementation
If, as a result of the referendum conducted under subsection (a), the Secretary determines that implementation of the order is favored—
(1) by at least 50 percent of fluid milk processors voting in the referendum; and
(2) by fluid milk processors voting in the referendum that marketed during the representative period, as determined by the Secretary, 60 percent or more of the volume of fluid milk products marketed by fluid milk processors voting in the referendum;
the order shall become effective as provided in section 6405(b) of this title.
(c) Costs of referendum
(d) Manner
(1) In general
(2) Advance registration
(3) Voting
(4) Notice
(Pub. L. 101–624, title XIX, § 1999N, Nov. 28, 1990, 104 Stat. 3924; Pub. L. 104–127, title I, § 146(d)(1), Apr. 4, 1996, 110 Stat. 919.)

CITE AS: 7 USC 6413

§ 6414. Suspension or termination of orders
(a) Suspension or termination by Secretary
(b) Other referenda
(1) In general
(2) Suspension or termination
If the Secretary determines that the suspension or termination is favored—
(A) by at least 50 percent of fluid milk processors voting in the referendum; and
(B) by fluid milk processors voting in the referendum that marketed during a representative period, as determined by the Secretary, 40 percent or more of the volume of fluid milk products marketed by fluid milk processors voting in the referendum;
the Secretary shall, within 6 months after making the determination, suspend or terminate, as appropriate, collection of assessments under the order, and suspend or terminate, as appropriate, activities under the order in an orderly manner as soon as practicable.
(3) Costs; manner
(Pub. L. 101–624, title XIX, § 1999O, Nov. 28, 1990, 104 Stat. 3925; Pub. L. 104–127, title I, § 146(d)(2), (e), Apr. 4, 1996, 110 Stat. 919; Pub. L. 107–171, title I, § 1506(c), May 13, 2002, 116 Stat. 210.)

CITE AS: 7 USC 6414

§ 6415. Amendments
(a) Amendments to order
(b) Amendment to assessment rates
(1) In general
(2) Adjustment to assessment rate
The Secretary shall adjust the assessment rate under the order whenever the Secretary determines that the adjustment is favored—
(A) by at least 50 percent of fluid milk processors voting in the referendum; and
(B) by fluid milk processors that marketed during a representative period, as determined by the Secretary, 60 percent or more of the volume of fluid milk products marketed by all processors;
In no event shall the rate of assessment prescribed by the order exceed 20 cents per hundredweight.
(3) Effective date
(4) Costs; manner
(Pub. L. 101–624, title XIX, § 1999P, Nov. 28, 1990, 104 Stat. 3926.)

CITE AS: 7 USC 6415

§ 6416. Independent evaluation of programs
(a) Review and evaluation
The Comptroller General of the United States shall review and evaluate the order to—
(1) determine the effectiveness of the promotion program conducted under this chapter on fluid milk sales;
(2) determine if the assessments for the program have been passed back to milk producers by fluid milk processors; and
(3) make recommendations for future funding and assessment levels for the program.
(b) Report to Congress
(Pub. L. 101–624, title XIX, § 1999Q, Nov. 28, 1990, 104 Stat. 3926.)

CITE AS: 7 USC 6416

§ 6417. Authorization of appropriations
(a) In general
(b) Administrative expenses
(Pub. L. 101–624, title XIX, § 1999R, Nov. 28, 1990, 104 Stat. 3926.)

CITE AS: 7 USC 6417