SOYBEAN PROMOTION, RESEARCH, AND CONSUMER
INFORMATION ACT
1

(7 U.S.C. 6301-6311)

SEC. 1965. SHORT TITLE.
This subtitle may be cited as the “Soybean Promotion, Research, and
Consumer Information Act”. (7 U.S.C. 6301 note.)

SEC. 1966. FINDINGS AND DECLARATION OF POLICY.

(a) FINDINGS.) Congress finds that)
(1) soybeans are an important source of nutritious foods that are
a valuable part of the human diet and are an important feedstuff for
the livestock industry;

(2) the production of soybeans plays a significant role in the
economy of the United States in that soybeans are produced by
thousands of soybean producers, processed by numerous processing
entities, and soybeans and soybean products produced in the United
States are consumed by people and livestock throughout the United
States and foreign countries;

(3) soybeans and soybean products should be readily available
and marketed efficiently to ensure that consumers have an adequate
supply of soybean products at a reasonable price;

(4) the maintenance and expansion of existing markets and
development of new markets for soybeans and soybean products are
vital to the welfare of soybean producers and processors and those
concerned with marketing soybeans and soybean products, as well
as to the general economy of the United States, and are necessary to
ensure the ready availability and efficient marketing of soybeans
and soybean products;

(5) there exist established State and national organizations
conducting soybean promotion, research, and consumer education
programs that are valuable to the efforts of promoting the
consumption of soybeans and soybean products;

(6) the cooperative development, financing, and implementation
of a coordinated national program of soybean promotion, research,
consumer information, and industry information are necessary to

1Title XIX, Subtitle E, of Pub. L. 101-624, 104 Stat. 3881, Nov. 28, 1990; as amended 
by Pub. L. 102-237, 105 Stat. 1883, Dec. 13, 1991.

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maintain and expand existing markets and develop new markets for
soybeans and soybean products; and

(7) soybeans and soybean products move in interstate and foreign
commerce, and soybeans and soybean products that do not move in
such channels of commerce directly burden or affect interstate
commerce in soybeans and soybean products.

(b) POLICY.) Congress declares that it is in the public interest to
authorize the establishment, through the exercise of the powers provided
in this subtitle, of an orderly procedure for developing, financing through
assessments on domestically-produced soybeans, and implementing a
program of promotion, research, consumer information, and industry
information designed to strengthen the soybean industry's position in the
marketplace, to maintain and expand existing domestic and foreign
markets and uses for soybeans and soybean products, and to develop new
markets and uses for soybeans and soybean products.

(c) CONSTRUCTION.) Nothing in this subtitle may be construed to
provide for the control of production or otherwise limit the right of
individual producers to produce soybeans. (7 U.S.C. 6301.)


SEC. 1967. DEFINITIONS.
As used in this subtitle:

(1) BOARD.) The term “Board” means the United Soybean Board
established under section 1969(b).

(2) COMMERCE.) The term “commerce” includes interstate,
foreign, and intrastate commerce.

(3) COMMITTEE.) The term “Committee” means the Soybean
Program Coordinating Committee established under section
1969(g).

(4) CONSUMER INFORMATION.) The term “consumer information”
means information that will assist consumers and other persons in
making evaluations and decisions regarding the purchase,
preparation, and use of soybeans or soybean products.

(5) DEPARTMENT.) The term “Department” means the Department
of Agriculture.

(6) FIRST PURCHASER.) The term “first purchaser” means)

(A) except as provided in subparagraph (B), any person
buying or otherwise acquiring from a producer soybeans
produced by such producer; or

(B) the Commodity Credit Corporation, in any case in
which soybeans are pledged as collateral for a loan issued
under any price support loan program administered by the
Commodity Credit Corporation.

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(7) INDUSTRY INFORMATION.) The term “industry information”
means information and programs that will lead to the development
of new markets, new marketing strategies, or increased efficiency
for the soybean industry, and activities to enhance the image of the
soybean industry.

(8) MARKETING.) The term “marketing” means the sale or other
disposition of soybeans or soybean products in any channel of
commerce.

(9) NET MARKET PRICE.) The term “net market price” means)
(A) except as provided in subparagraph (B), the sales
price or other value received by a producer for soybeans after
adjustments for any premium or discount based on grading or
quality factors, as determined by the Secretary; or

(B) for soybeans pledged as collateral for a loan issued
under any price support loan program administered by the
Commodity Credit Corporation, the principal amount of the
loan.

(10) ORDER.)The term “order” means an order issued under
section 1968.

(11) PERSON.)The term “person” means any individual, group of
individuals, partnership, corporation, association, cooperative, or
any other legal entity.

(12) PRODUCER.)The term “producer” means any person engaged
in the growing of soybeans in the United States who owns, or who
shares the ownership and risk of loss of, such soybeans.

(13) PROMOTION.) The term “promotion” means any action,
including paid advertising, technical assistance, and trade servicing
activities, to enhance the image or desirability of soybeans or
soybean products in domestic and foreign markets, and any activity
designed to communicate to consumers, importers, processors,
wholesalers, retailers, government officials, or others information
relating to the positive attributes of soybeans or soybean products
or the benefits of importation, use, or distribution of soybeans and
soybean products.

(14) QUALIFIED STATE SOYBEAN BOARD.) The term “qualified
State soybean board” means a State soybean promotion entity that
is authorized by State law. If no such entity exists in a State, the
term “qualified State soybean board” means a soybean
producer-governed entity)

(A) that is organized and operating within a State;

(B) that receives voluntary contributions and conducts
soybean promotion, research, consumer information, or
industry information programs; and

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(C) that meets criteria established by the Board as
approved by the Secretary relating to the qualifications of
such entity to perform duties under the order and is
recognized by the Board as the soybean promotion and
research entity within the State.

(15) RESEARCH.) The term “research” means any type of study to
advance the image, desirability, marketability, production, product
development, quality, or functional or nutritional value of soybeans
or soybean products, including any research activity designed to
identify and analyze barriers to export sales of soybeans and
soybean products.

(16) SECRETARY.) The term “Secretary” means the Secretary of
Agriculture.

(17) SOYBEAN PRODUCTS.) The term “soybean products” means
products produced in whole or in part from soybeans or soybean
by-products.

(18) SOYBEANS.) The term “soybeans” means all varieties of
Glycine max or Glycine soya.

(19) STATE.) The terms “State” and “United States” consist of the
50 States of the United States of America, the District of Columbia,
and the Commonwealth of Puerto Rico. (7 U.S.C. 6302.)

SEC. 1968. ISSUANCE AND AMENDMENT OF ORDERS.

(a) IN GENERAL.) To effectuate the declared policy of section 1966(b),
the Secretary, subject to the procedures provided in subsection (b), shall
issue orders under this subtitle applicable to producers and first purchasers
of soybeans. Any such order shall be national in scope, and not more than
one order shall be in effect under this subtitle at any one time.

(b) PROCEDURE.)

(1) PROPOSAL OR REQUEST FOR ISSUANCE.) The Secretary may
propose the issuance of an order under this subtitle, or an
association of soybean producers or any other person that would be
affected by an order issued pursuant to this subtitle may request the
issuance of, and submit a proposal for, such an order.

(2) NOTICE AND COMMENT CONCERNING PROPOSED ORDER.) Not
later than 30 days after the receipt of a request and proposal for an
order pursuant to paragraph (1), or whenever the Secretary
determines to propose an order, the Secretary shall publish a
proposed order and give due notice and opportunity for public
comment on the proposed order.

(3) ISSUANCE OF ORDER.) After notice and opportunity for public
comment are given as provided in paragraph (2), the Secretary shall
issue an order, taking into consideration the comments received and

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including in the order provisions necessary to ensure that the order
is in conformity with the requirements under this subtitle. Such
order shall be issued and become effective not later than 180 days
following publication of the proposed order.

(c) AMENDMENTS.) The Secretary, from time to time, may amend any
order issued under this section. The provisions of this subtitle applicable
to orders shall be applicable to amendments to orders. (7 U.S.C. 6303.)

SEC. 1969. REQUIRED TERMS IN ORDERS.

(a) IN GENERAL.) Any order issued under this subtitle shall contain the
terms and conditions specified in this section.

(b) ESTABLISHMENT AND MEMBERSHIP OF THE 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;

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(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 1970(a) 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

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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 1967(14). 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 1967(14).

(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.

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(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 the
date of enactment of this Act, 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 THE 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;

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(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.) 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

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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)), 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

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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 the date
of the enactment of this Act, 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.

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(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 THE 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). 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).

(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). 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.)

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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), 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 subtitle 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 subtitle, 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.

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(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 THE BOARD.)The order shall require the
Board to)

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(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 1970(a), 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)

666


(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 1970(a), refunds shall be
made under this paragraph on collected assessments until
such collections are terminated, as provided in section
1970(a).

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(F) REFUNDS AFTER THE 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 1970(a) 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 1970(a)
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 1970(b)(3), 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 1970, 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)

668


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

669


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 subtitle.

(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

670


one-quarter of 1 percent of the net market price of soybeans or the
equivalent thereof. For purposes of this subtitle, 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 the date of enactment of this Act, 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).

(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 1970(a), 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 1970(a),
subject to paragraph (3), that the Board annually shall provide a
credit to each qualified State soybean board of an amount by which)
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

671


amount of assessments remitted to the Board during such year
under subsection (l).
(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) (net of any refunds made under
paragraph (2) of subsection (l)) 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

672


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) DEFINITION OF SMALL PRODUCER.) 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 subtitle, or any
order or regulation issued under this subtitle.

(B) OTHER INFORMATION.) The Secretary shall authorize
the use under this subtitle of information regarding first
purchasers that is accumulated under a law or regulation other
than this subtitle or regulations under this subtitle.
(3) CONFIDENTIALITY.)
(A) IN GENERAL.)Except as otherwise provided in this
subtitle, 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 subtitle shall be made available to any
agency or officer of the Federal Government for)
(i) the implementation of this subtitle;

(ii) any investigatory or enforcement action
necessary for the implementation of this subtitle; 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

673


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 subtitle, 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). (7 U.S.C. 6304.)


SEC. 1970. REFERENDA.

(a) INITIAL REFERENDUM.)
(1) REQUIREMENT.) Not earlier than 18 months or later than 36
months following issuance of an order under section 1968, the
Secretary shall conduct a referendum among producers who, during
a representative period as determined by the Secretary, have been
engaged in the production of soybeans for the purpose of
ascertaining whether the order then in effect shall be continued.

(2) ADVANCE NOTICE.) The Secretary shall, to the extent
practicable, provide broad public notice in advance of any
referendum. Any such notice shall be provided without advertising
expenses by means of newspapers, county newsletters, the
electronic media, and press releases, through the use of notices
posted in State and county Extension Service offices and county
Agricultural Stabilization and Conservation Service offices, and by
other appropriate means specified in the order. Such notice shall
include information on when the referendum will be held,
registration and voting requirements, rules regarding absentee
voting, and other pertinent facts.

(3) APPROVAL OF ORDER.) Such order shall be continued only if
the Secretary determines that the order has been approved by not
less than a majority of the producers voting in the referendum.

(4) DISAPPROVAL OF ORDER.) If continuation of the order is not
approved by a majority of those voting in the referendum, the
Secretary shall terminate collection of assessments under the order
within 6 months after the referendum and shall terminate the order
in an orderly manner as soon as practicable.

(b) ADDITIONAL REFERENDA.)

(1) IN GENERAL.)
(A) REQUIREMENT.) After the initial referendum on an
order, the Secretary shall conduct additional referenda, as
described in subparagraph (C), if requested by a
representative group of producers, as described in
subparagraph (B).

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(B) REPRESENTATIVE GROUP OF PRODUCERS.) An
additional referendum on an order shall be conducted if
requested by 10 percent or more of the producers who during
a representative period have been engaged in the production
of soybeans, of which group of requesting producers not in
excess of one-fifth may be producers in any one State, as
determined by the Secretary.

(C) ELIGIBLE PRODUCERS.) Each additional referendum
shall be conducted among all producers who, during a
representative period, as determined by the Secretary, have
been engaged in the production of soybeans to determine
whether such producers favor the termination or suspension
of the order.
(2) DISAPPROVAL OF ORDER.) If the Secretary determines, in any
referendum conducted under paragraph (1), that suspension or
termination of the order is favored by a majority of the producers
voting in the referendum, the Secretary shall suspend or terminate,
as appropriate, collection of assessments under the order within 6
months after such determination and shall suspend or terminate the
order, as appropriate, in an orderly manner as soon as practicable
after such determination.

(3) OPPORTUNITY TO REQUEST ADDITIONAL REFERENDA.)
(A) IN GENERAL.) To facilitate the periodic determination
as to whether producers favor the conduct of an additional
referendum under this subsection, the Secretary, 5 years after
the conduct of a referendum under this subtitle and every 5
years thereafter, shall provide soybean producers an
opportunity to request an additional referendum, as provided
in this paragraph.

(B) METHOD OF MAKING REQUEST.)
(i) IN-PERSON REQUESTS.) To carry out subparagraph
(A), the Secretary shall establish a procedure under
which producers may request a reconfirmation
referendum in person at county extension offices or
county Agricultural Stabilization and Conservation
Service offices during a period established by the
Secretary, or as provided in clause (ii).

(ii) MAIL-IN REQUESTS.) In lieu of making such
requests in person, producers may make requests by
mail. Mail-in requests shall be postmarked no later than
the end of the period established under clause (i) for
in-person requests. To facilitate such submission of
requests by mail, the Secretary may make mail-in
request forms available to producers.

675


(C) NOTIFICATIONS.) The Secretary shall publish a notice
in the Federal Register, and the Board shall provide written
notification to producers, not later than 60 days prior to the
end of the period established under subparagraph (B) (i) for
in-person requests, of the producers' opportunity to request
the additional referendum. Such notifications shall explain the
producers' rights to, and the procedure specified in this
subsection for, the conduct of an additional referendum, the
purpose of the referendum, and the date and method by which
producers may act to request the additional referenda under
this paragraph. The Secretary shall take such other actions as
the Secretary determines are necessary to ensure that
producers are made aware of the opportunity to request an
additional referendum on the order.

(D) ACTION BY SECRETARY.) As soon as practicable
following the submission of requests for a reconsideration
referendum, the Secretary shall determine whether a sufficient
number of producers have requested an additional
referendum, and take other steps to conduct an additional
referendum, as are required under paragraph (1).

(E) TIME LIMIT.) Any additional referendum requested
under the procedures provided in this paragraph shall be
conducted not later than 1 year after the Secretary determines
that a representative group of producers, as described in
paragraph (1)(B), have requested the conduct of such
referendum.
(c) PROCEDURES.)
(1) REIMBURSEMENT OF SECRETARY.) The Secretary shall be
reimbursed from assessments collected by the Board for any
expenses incurred by the Secretary in connection with the conduct
of any activity required under this section, except for the salaries of
Government employees associated with the conduct of a referendum
under subsections (a) and (b).

(2) DATE.) Each referendum shall be conducted for a reasonable
period of time not to exceed 3 days, established by the Secretary,
under a procedure whereby producers intending to vote in the
referendum shall certify that they were engaged in the production of
soybeans during the representative period and, at the same time,
shall be provided an opportunity to vote in the referendum.

(3) PLACE.) Referenda shall be conducted at county extension
offices and provision shall be made for absentee mail ballots to be
provided on request. Absentee mail ballots shall be furnished by the
Secretary on request made in person, by mail, or by telephone. (7
U.S.C. 6305.)

676


SEC. 1971. PETITION AND REVIEW.

(a) PETITION.)
(1) IN GENERAL.) A person subject to an order issued under this
subtitle 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.) The petitioner shall be given the opportunity for
a hearing on a petition filed under paragraph (1), in accordance with
regulations issued by the Secretary.

(3) RULING.) After a hearing under paragraph (2), the Secretary
shall make a ruling on the petition that is the subject of the hearing,
which shall be final if such ruling is in accordance with applicable
law.

(b) REVIEW.)

(1) COMMENCEMENT OF ACTION.) The district court of the United
States in any district in which the person who is a petitioner under
subsection (a) resides or carries on business shall have jurisdiction
to review a ruling on the petition of such person under such
subsection, if a complaint for that purpose is filed not later than 20
days after the date of the entry of a ruling by the Secretary under
such subsection (a).

(2) PROCESS.) Service of process in a proceeding under paragraph
(1) shall be conducted in accordance with the Federal Rules of Civil
Procedure.

(3) REMANDS.) If the court determines, under paragraph (1), that
a ruling issued under subsection (a)(3) is not in accordance with
applicable 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.

(4) ENFORCEMENT.) The pendency of proceedings instituted
under subsection (a) shall not impede, hinder, or delay the Attorney
General or the Secretary from taking any action under section 1972.
(7 U.S.C. 6306.)

677


SEC. 1972. ENFORCEMENT.

(a) JURISDICTION.) The district courts of the United States are vested
with jurisdiction specifically to enforce, and to prevent and restrain any
person from violating, any order or regulation made or issued under this
subtitle.

(b) REFERRAL TO ATTORNEY GENERAL.) A civil action authorized to
be commenced under this section shall be referred to the Attorney General
for appropriate action, except that the Secretary shall not be required to refer
to the Attorney General a violation of this subtitle, if the Secretary
believes that the administration and enforcement of this subtitle would be
adequately served by providing a suitable written notice or warning to the
person who committed such violation or by administrative action under
section 1971.

(c) CIVIL PENALTIES AND ORDERS.)

(1) CIVIL PENALTIES.) Any person who willfully violates any
provision of any order or regulation issued by the Secretary under
this subtitle, 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 more than
$1,000 for each such violation; and

(B) in the case of a willful failure to pay, collect, or remit
an assessment as required by the order or regulation, an
additional penalty equal to the amount of such assessment.
Each violation shall be a separate offense.

(2) CEASE-AND-DESIST ORDERS.) In addition to, or in lieu of, a
civil penalty under paragraph (1), the Secretary may issue an order
requiring a person to cease and desist from continuing any such
violation.

(3) NOTICE AND HEARING.) No penalty shall be assessed or
cease-and-desist order issued by the Secretary under this subsection
unless the person against whom the penalty is assessed or the order
is issued is given notice and opportunity for a hearing before the
Secretary with respect to such violation.

(4) FINALITY.) The order of the Secretary assessing a penalty or
imposing a cease-and-desist order under this subsection shall be
final and conclusive unless the affected person files an appeal of the
Secretary's order with the appropriate district court of the United
States in accordance with subsection (d).

(d) REVIEW BY DISTRICT COURT.)

(1) COMMENCEMENT OF ACTION.) Any person who has been
determined to be in violation of this subtitle, or against whom a civil

678


penalty has been assessed or a 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 conducts
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.) The Secretary shall file promptly in the appropriate
court referred to in paragraph (1), a certified copy of the record on
which the Secretary has determined that the person had committed
a violation.

(3) STANDARD OF REVIEW.) A finding of the Secretary under this
section shall be set aside only if such finding is found to be
unsupported by substantial evidence.

(e) FAILURE TO OBEY ORDERS.) Any person who fails to obey a
cease-and-desist order issued under this section after such order has
become final and unappealable, or after the appropriate United States
district court has entered a final judgment in favor of the Secretary, shall
be subject to a civil penalty assessed by the Secretary, after opportunity for
a hearing and for judicial review under the procedures specified in
subsections (c) and (d), of not more than $5,000 for each offense. Each
day during which such failure continues shall be considered as a separate
violation of such order.

(f) FAILURE TO PAY PENALTIES.) If any person fails to pay an
assessment of a civil penalty under this section after it has become a final
and unappealable order, or after the appropriate United States district
court has entered final judgment in favor of the Secretary, the Secretary
shall refer the matter to the Attorney General for recovery of the amount
assessed in the district court in which the person resides or conducts
business. In such action, the validity and appropriateness of the final order
imposing the civil penalty shall not be subject to review.

(g) ADDITIONAL REMEDIES.) The remedies provided in this subtitle shall
be in addition to, and not exclusive of, other remedies that may be
available. (7 U.S.C. 6307.)


SEC. 1973. 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 subtitle; and

679


(2) to determine whether any person has engaged or is engaging
in any act that constitutes a violation of this subtitle, or any order,
rule, or regulation issued under this subtitle.

(b) SUBPOENAS, OATHS, AND AFFIRMATIONS.)

(1) IN GENERAL.) For the purpose of an investigation under
subsection (a), the Secretary may administer oaths and affirmations,
and issue a subpoena to require the production of any records that
are relevant to the inquiry. The production of any such records may
be required from any place in the United States.

(2) ADMINISTRATIVE HEARINGS.) For the purpose of an
administrative hearing held under section 1971 or 1972, the
presiding officer is authorized to administer oaths and affirmations,
subpoena witnesses, compel their attendance, take evidence, and
require the production of any records that are relevant to the
inquiry. Such attendance of witnesses and the production of any
such records may be required from any place in the United States.

(c) AID OF COURTS.) In the case of contumacy by, or refusal to obey a
subpoena issued to, any person, the Secretary may invoke the aid of any
court of the United States within the jurisdiction of which such
investigation or proceeding is carried on, or where such person resides or
carries on business, in order to enforce a subpoena issued by the Secretary
under subsection (b). The court may issue an order requiring such person
to comply with such a subpoena.

(d) CONTEMPT.) Any failure to obey an order of the court under this
section may be punished by such court as a contempt thereof.

(e) PROCESS.) Process in any such case may be served in the judicial
district in which such person resides or conducts business or wherever
such person may be found.

(f) HEARING SITE.) The site of any hearings held under section 1971 or
1972 shall be within the judicial district where such person resides or has
a principal place of business. (7 U.S.C. 6308.)


SEC. 1974. ADMINISTRATIVE PROVISIONS.

(a) CONSTRUCTION.) Except as provided in subsection (b), nothing in
this subtitle may be construed to)

(1) preempt or supersede any other program relating to soybean
promotion, research, consumer information, or industry information
organized and operated under the laws of the United States or any
State; or

(2) authorize the withholding of any information from Congress.

(b) STATE LAWS.)

(1) REFERENDA ON QUALIFIED STATE SOYBEAN BOARDS.) To
ensure the proper administration of this subtitle, no State may

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conduct a referendum relating to the continuation or termination of
a qualified State soybean board or State soybean assessment)
(A) during the period beginning on the date an order is
issued under section 1968 and ending 18 months after the
referendum on such order is conducted under section
1970(a); or

(B) if such order is approved under the referendum
conducted under section 1970(a) by a majority of producers
voting in such State, such State law shall be suspended for an
additional 36 months

(2) EXCEPTION.) Paragraph
(1) shall not be construed to
apply to)

(A) a State referendum concerning the approval of
modifications to a State soybean promotion program that
does not involve termination of the qualified State soybean
board or State soybean assessment; and

(B) any State referendum regarding a State soybean
promotion program that is originated by soybean producers

(3) ASSESSMENTS COLLECTED BY QUALIFIED STATE SOYBEAN
BOARDS.) To ensure adequate funding of the operations of qualified
State soybean boards under this subtitle, whenever an order is in
effect under this subtitle, no State law or regulation that limits the
rate of assessment that the qualified State soybean board in that
State may collect from producers on soybeans produced in such
State, or that has the effect of limiting such rate, may be applied to
prohibit such State board from collecting, and expending for
authorized purposes, assessments from producers of up to the full
amount of the credit authorized for producer contributions to
qualified State soybean boards under section 1969(l)(4).

(c) AMENDMENTS TO ORDERS.) The provisions of this subtitle
applicable to orders shall be applicable to amendments to orders. (7
U.S.C. 6309.)

SEC. 1975. SUSPENSION OR TERMINATION OF ORDERS.

The Secretary shall, whenever the Secretary finds that the order or any
provision of the order obstructs or does not tend to effectuate the declared
policy of this subtitle, terminate or suspend the operation of such order or
provision. The termination or suspension of any order, or any provision
thereof, shall not be considered an order within the meaning of this
subtitle. (7 U.S.C. 6310.)

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SEC. 1976. AUTHORIZATION OF APPROPRIATIONS;
REGULATIONS.

(a) IN GENERAL.) There are authorized to be appropriated for each fiscal
year such funds as are necessary to carry out this subtitle.

(b) ADMINISTRATIVE EXPENSES.) Funds appropriated under subsection
(a) shall not be available for payment of the expenses or expenditures of
the Board or the Committee in administering any provision of any order
issued under this subtitle.

(c) REGULATIONS.) The Secretary may issue such regulations as are
necessary to carry out this subtitle, including regulations relating to the
assessment of late payment charges. (7 U.S.C. 6311.)

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