7 USC 6304 - Required terms in orders

View all text of Chapter 92 [§ 6301 - § 6311]

§ 6304. Required terms in orders

(a) In general

(b) Establishment and membership of United Soybean Board

(1) In general

(2) SeatsThe Secretary shall establish State units and combined units and seats on the Board for such units, as follows:

(A) State units

(B) Combined units

(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

(E) Reapportionment of seats

(F) Adjustment of levels of production

(3) Nominations

(A) In general

(B) Method for obtaining nominations

(i) Initially-established Board(I) State units(II) Combined units

(ii) Subsequent appointment(I) State units(II) Combined units

(iii) Rejection

(4) Terms

(5) Compensation

(6) Temporary appointments

(A) Appointment

(B) Representation of certain States

(7) Meetings

(c) Powers and duties of BoardThe 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)—

(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), 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

(2) Number of votes per memberEach 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

(B) Additional votesThe additional votes that each member is assigned for roll call votes shall be computed as follows:

(i) Assessment level

(ii) First three fiscal years(I) First fiscal year(II) Second and third fiscal years

(iii) Division of votes within units

(3) Motions

(A) In general

(B) Roll call votes

(4) Committee votes

(5) Proxies

(e) Budgets

(1) In general

(2) Limitation

(f) Plans and projects

(g) Soybean Program Coordinating Committee

(1) Establishment

(2) Membership

(A) CompositionThe 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

(3) Terms

(4) Compensation

(5) Chairperson

(6) Quorum

(h) Powers and duties of CommitteeThe order shall define the powers and duties that the Board may assign to the Committee, which may include the following:

(1) Budgets

(2) Plans and projects

(3) Voting

(i) Administration

(1) Expenses

(2) Staff

(A) In general

(B) Limitation on salaries

(3) Limitation on administrative costs

(j) Contracts and agreements

(1) Authority

(2) Coordination

(3) TermsAny 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 producersThe 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

(B) ExceptionThe 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 BoardThe 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

(ii) Rate

(iii) One assessment

(B) Direct processing

(2) Refunds

(A) Refunds prior to initial referendum

(i) In generalThe 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

(B) Administration

(i) In general

(ii) No qualified State soybean board

(D) Time limit for making refund

(E) Order not favored

(F) Refunds after the initial referendum

(i) In general

(ii) Availability

(iii) Poll

(iv) Referendum

(v) Continued refunds

(vi) Continuation or cessation of refunds

(vii) Escrow accounts(I) Establishment(II) Separate accounts(III) Deposits(IV) Refunds made from escrow account(V) Proration(VI) Surplus funds(VII) Refund period

(3) UseThe 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

(5) Single process of assessment

(m) Credit for certain costs to States

(n) Minimum level of assessments to States

(1) Pre-referendum period

(2) Post-referendum periodThe 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).

(3) Limitation

(o) Investment of funds

(1) In generalThe 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;

(D) obligations fully guaranteed as to principal and interest by the United States.

(2) Income

(p) Prohibition on use of funds to influence governmental action

(1) In general

(2) ExceptionsParagraph (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

(B) “Small producer” defined

(2) Use of information

(A) In general

(B) Other information

(3) Confidentiality

(A) In general

(B) Permitted usesInformation 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.

(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

(r) Incidental terms and conditions

(Pub. L. 101–624, title XIX, § 1969, Nov. 28, 1990, 104 Stat. 3884; Pub. L. 102–237, title VIII, § 806(1), Dec. 13, 1991, 105 Stat. 1883.)