7 U.S.C. § 4809

Current through P.L. 118-107 (published on www.congress.gov on 11/21/2024)
Section 4809 - Assessments
(a) Collection and remission to Board; persons required to pay
(1) The order shall provide that, not later than 30 days after the effective date of the order under section 4805(c) of this title an assessment shall be paid, in the manner prescribed in the order. Upon the appointment of the Board, the assessments held in escrow shall be distributed to the Board. Except as provided in paragraph (3), assessments shall be payable by-
(A) each producer for each porcine animal described in subparagraph (A) or (C) of section 4802(8) of this title produced in the United States that is sold or slaughtered for sale;
(B) each producer for each porcine animal described in subsection1 4802(8)(B) of this title that is sold; and
(C) each importer for each porcine animal, pork, or pork product that is imported into the United States.
(2) Such assessment shall be collected and remitted to the Board once it is appointed pursuant to section 4808 of this title, but, until that time, to the Secretary, who shall promptly proceed to distribute the funds received by him in accordance with the provisions of subsection (c), except that the Secretary shall retain the funds to be received by the Board until such time as the Board is appointed pursuant to section 4808 of this title, by-
(A) in the case of subparagraph (A) of paragraph (1), the purchaser of the porcine animal referred to in such subparagraph;
(B) in the case of subparagraph (B) of paragraph (1), the producer of the porcine animal referred to in such subparagraph; and
(C) in the case of subparagraph (C) of paragraph (1), the importer referred to in such subparagraph.
(3) A person is not required to pay an assessment for a porcine animal, pork, or pork product under paragraph (1) if such person proves to the Board that an assessment was paid previously under such paragraph by a person for such porcine animal (of the same category described in subparagraph (A), (B), or (C) of section 4802(8) of this title), pork, or pork product.
(b) Rate of assessment; increase; waiver of collection of assessment
(1) Except as provided in paragraph (2), the rate of assessment prescribed by the initial order shall be the lesser of-
(A) 0.25 percent of the market value of the porcine animal, pork, or pork product sold or imported; or
(B) an amount established by the Secretary based on a recommendation of the Delegate Body.
(2) Except as provided in paragraph (3), the rate of assessment in the initial order may be increased by not more than 0.1 percent per year on recommendation of the Delegate Body.
(3) The rate of assessment may not exceed 0.50 percent of such market value unless-
(A) after the initial referendum required under section 4811(a) of this title, the Delegate Body recommends an increase in such rate above 0.50 percent; and
(B) such increase is approved in a referendum conducted under section 4811(b) of this title.
(4)
(A) Pork or pork products imported into the United States shall be assessed based on the equivalent value of the live porcine animal from which such pork or pork products were produced, as determined by the Secretary.
(B) The Secretary may waive the collection of assessments on a type of such imported pork or pork products if the Secretary determines that such collection is not practicable.
(c) Distribution and use

Funds collected by the Board from assessments collected under this section shall be distributed and used in the following manner:

(1)
(A) Each State association, shall receive an amount of funds equal to the product obtained by multiplying-
(i) the aggregate amount of assessments attributable to porcine animals produced in such State by persons described in subsection (a)(1)(A) and (B) minus that State's share of refunds determined pursuant to paragraph (4) by such persons pursuant to section 4813 of this title; and
(ii) a percentage applicable to such State association determined by the Delegate Body, but in no event less than sixteen and one-half percent, or
(B) in the case of a State association that was conducting a pork promotion program in the period from July 1, 1984, to June 30, 1985, if greater than (A) an amount of funds equal to the amount of funds that would have been collected in such State pursuant to the pork promotion program in existence in such State from July 1, 1984, to June 30, 1985, had the porcine animals, subject to assessment and to which no refund was received in such State in each year following December 23, 1985, been produced from July 1, 1984, to June 30, 1985, and been subject to the rates of assessments then in effect and the rate of return then in effect from each State to the Council described in paragraph (2)(A), and other national entities involved in pork promotion, research and consumer information.
(C) A State association shall use such funds and any proceeds from the investment of such funds for financing-
(i) promotion, research, and consumer information plans and projects, and
(ii) administrative expenses incurred in connection with such plans and projects.
(2)
(A) The National Pork Producers Council, a nonprofit corporation of the type described in section 501(c)(3) of title 26 and incorporated in the State of Iowa, shall receive an amount of funds equal to-
(i) 371/2 percent of the aggregate amount of assessments collected under this section throughout the United States from the date assessment commences pursuant to subsection (a)(1) until the first day of the month following the month in which the Board is appointed pursuant to section 4808 of this title.2
(ii) 35 percent thereafter until the referendum is conducted pursuant to section 4811 of this title,
(iii) 25 percent until twelve months after the referendum is conducted, and
(iv) no funds thereafter except in so far as it obtains such funds from the Board pursuant to sections3 4808 or 4809 of this title, each of which amounts determined under (i), (ii), and (iii) shall be less the Council's share of refunds determined pursuant to paragraph (4).
(B) The Council shall use such funds and proceeds from the investment of such funds for financing-
(i) promotion, research, and consumer information plans and projects, and
(ii) administrative expenses of the Council.
(3)
(A) The Board shall receive the amount of funds that remain after the distribution required under paragraphs (1) and (2).
(B) The Board shall use such funds and any proceeds from the investment of such funds pursuant to subsection (g) for-
(i) financing promotion, research, and consumer information plans and projects in accordance with this chapter;4
(ii) such expenses for the administration, maintenance, and functioning of the Board as may be authorized by the Secretary;
(iii) accumulation of a reasonable reserve to permit an effective promotion, research, and consumer information program to continue in years when the amount of assessments may be reduced; and
(iv) administrative costs incurred by the Secretary to carry out this chapter,4 including any expenses incurred for the conduct of a referendum under this chapter.4
(4)
(A) Each State's share of refunds shall be determined by multiplying the aggregate amount of refunds received by producers in such State by the percentage applicable to such State pursuant to paragraph (1)(A)(ii).
(B) The National Pork Producers Council's share of refunds shall be determined by multiplying its applicable percent of the aggregate amount of assessments by the product of-
(i) subtracting from the aggregate amount of refunds received by all producers the aggregate amount of State share or refunds in every State determined pursuant to subparagraph (A), and
(ii) adding to that sum the aggregate amount of refunds received by importers.
(d) Prohibited promotions

No promotion funded with assessments collected under this chapter may make-

(1) a false or misleading claim on behalf of pork or a pork product; or
(2) a false or misleading statement with respect to an attribute or use of a competing product.
(e) Influencing legislation prohibited

No funds collected through assessments authorized by this section may, in any manner, be used for the purpose of influencing legislation, as defined in section 4911(d) and (e)(2) of title 26.

(f) Maintenance of books and records; audits

The Board shall-

(1) maintain such books and records, and prepare and submit to the Secretary such reports from time to time, as may be required by the Secretary for appropriate accounting of the receipt and disbursement of funds entrusted to the Board or a State association, as the case may be; and
(2) cause a complete audit report to be submitted to the Secretary at the end of each fiscal year.
(g) Investment by Board of funds collected

The Board, with the approval of the Secretary, may invest funds collected through assessments authorized under this section, pending disbursement for a plan or project, only in-

(1) an obligation of the United States, or of a State or political subdivision thereof;
(2) an interest-bearing account or certificate of deposit of a bank that is a member of the Federal Reserve System; or
(3) an obligation fully guaranteed as to principal and interest by the United States.

1So in original. Probably should be "section".

2So in original. The period probably should be a comma.

3So in original. Probably should be "section".

4See References in Text note below.

7 U.S.C. § 4809

Pub. L. 99-198 title XVI, §1620, Dec. 23, 1985, 99 Stat. 1614; Pub. L. 99-514, §2, Oct. 22, 1986, 100 Stat. 2095.

EDITORIAL NOTES

REFERENCES IN TEXTThis chapter, referred to in subsec. (c)(3)(B)(i), (iv), was in the original "this title" and was translated as reading "this subtitle", meaning subtitle B of title XVI of Pub. L. 99-198, which enacted this chapter, as the probable intent of Congress.

AMENDMENTS1986-Subsecs. (c)(2)(A), (e). Pub. L. 99-514 substituted "Internal Revenue Code of 1986" for "Internal Revenue Code of 1954", which for purposes of codification was translated as "title 26" thus requiring no change in text.

STATUTORY NOTES AND RELATED SUBSIDIARIES

EFFECTIVE DATESection effective Jan. 1, 1986, see section 1631 of Pub. L. 99-198 set out as a note under section 4801 of this title.

Board
The term "Board" means the National Pork Board established under section 4808 of this title.
Delegate Body
The term "Delegate Body" means the National Pork Producers Delegate Body established under section 4806 of this title.
Secretary
The term "Secretary" means the Secretary of Agriculture.
State association
The term "State association" means-(A) the single organization of pork producers in a State that is-(i) organized under the laws of the State in which such association operates; and(ii) recognized by the chief executive officer of such State as representing the pork producers of such State; or(B) if such organization does not exist on January 1, 1986, an organization that represents not fewer than 50 pork producers who market annually, in the aggregate, not less than 10 percent of the volume (measured in pounds) of porcine animals marketed in such State.
State
The term "State" means each of the 50 States.
consumer information
The term "consumer information" means an activity intended to broaden the understanding of sound nutritional attributes of pork or pork products, including the role of pork or pork products in a balanced, healthy diet.
imported
The term "imported" means entered, or withdrawn from a warehouse for consumption, in the customs territory of the United States.
importer
The term "importer" means a person who imports porcine animals, pork, or pork products into the United States.
order
The term "order" means a pork and pork products promotion, research, and consumer information order issued under section 4803 of this title.
person
The term "person" means an individual, group of individuals, partnership, corporation, association, organization, cooperative, or other entity.
porcine animal
The term "porcine animal" means a swine raised for-(A) feeder pigs;(B) seedstock; or(C) slaughter.
pork product
The term "pork product" means a product produced or processed in whole or in part from pork.
pork
The term "pork" means the flesh of a porcine animal.
producer
The term "producer" means a person who produces porcine animals in the United States for sale in commerce.
promotion
The term "promotion" means an action, including paid advertising, taken to present a favorable image for porcine animals, pork, or pork products to the public with the intent of improving the competitive position and stimulating sales of porcine animals, pork, or pork products.
research
The term "research" means-(A) research designed to advance, expand, or improve the image, desirability, nutritional value, usage, marketability, production, or quality of porcine animals, pork, or pork products; or(B) dissemination to a person of the results of such research.