I

104TH CONGRESS

1ST SESSION H. R. 2509

To finance and implement a program of research, promotion, market development, and industry and consumer information to enhance demand for

and increase the profitability of canola and rapeseed products in the

United States, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

OCTOBER 19, 1995

Mr. CRAPO (for himself, Mr. POMEROY, Mrs. CHENOWETH, and Mr. BROWN

of California) introduced the following bill; which was referred to the

Committee on Agriculture

A BILL

To finance and implement a program of research, promotion,

market development, and industry and consumer information to enhance demand for and increase the profitability of canola and rapeseed products in the United

States, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Canola and Rapeseed Research, Promotion, and

6 Consumer Information Act’’.
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1 (b) TABLE OF CONTENTS.—The table of contents of

2 this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Findings and declaration of policy.

Sec. 3. Definitions.

Sec. 4. Issuance and amendment of orders.

Sec. 5. Required terms in orders.

Sec. 6. Assessments.

Sec. 7. Referenda.

Sec. 8. Petition and review.

Sec. 9. Enforcement.

Sec. 10. Investigations and power to subpoena.

Sec. 11. Suspension or termination of an order.

Sec. 12. Regulations.

Sec. 13. Authorization of appropriations.

3 SEC. 2. FINDINGS AND DECLARATION OF POLICY.

4 (a) FINDINGS.—Congress finds that—

5 (1) canola and rapeseed products are an impor6 tant and nutritious part of the human diet;

7 (2) the production of canola and rapeseed prod8 ucts plays a significant role in the economy of the

9 United States in that canola and rapeseed products

10 are produced by thousands of canola and rapeseed

11 producers, processed by numerous processing enti12 ties, and canola and rapeseed products produced in

13 the United States are consumed by people through14 out the United States and foreign countries;

15 (3) canola, rapeseed, and canola and rapeseed

16 products should be readily available and marketed

17 efficiently to ensure that consumers have an ade18 quate supply of canola and rapeseed products at a

19 reasonable price;
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1 (4) the maintenance and expansion of existing

2 markets and development of new markets for canola,

3 rapeseed, and canola and rapeseed products are vital

4 to the welfare of canola and rapeseed producers and

5 processors and those persons concerned with market6 ing canola, rapeseed, and canola and rapeseed prod7 ucts, as well as to the general economy of the United

8 States, and are necessary to ensure the ready avail9 ability and efficient marketing of canola, rapeseed,

10 and canola and rapeseed products;

11 (5) there exist established State and national

12 organizations conducting canola and rapeseed re13 search, promotion, and consumer education pro14 grams that are valuable to the efforts of promoting

15 the consumption of canola, rapeseed, and canola and

16 rapeseed products;

17 (6) the cooperative development, financing, and

18 implementation of a coordinated national program of

19 canola and rapeseed research, promotion, consumer

20 information, and industry information is necessary

21 to maintain and expand existing markets and de22 velop new markets for canola, rapeseed, and canola

23 and rapeseed products; and

24 (7) canola, rapeseed, and canola and rapeseed

25 products move in interstate and foreign commerce,
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1 and canola, rapeseed, and canola and rapeseed prod2 ucts that do not move in interstate or foreign com3 merce directly burden or affect interstate commerce

4 in canola, rapeseed, and canola and rapeseed prod5 ucts.

6 (b) POLICY.—It is the policy of this Act to establish

7 an orderly procedure for developing, financing through as8 sessments on domestically-produced canola and rapeseed,

9 and implementing a program of research, promotion,

10 consumer information, and industry information designed

11 to strengthen the position in the marketplace of the canola

12 and rapeseed industry, to maintain and expand existing

13 domestic and foreign markets and uses for canola,

14 rapeseed, and canola and rapeseed products, and to de15 velop new markets and uses for canola, rapeseed, and

16 canola and rapeseed products.

17 (c) CONSTRUCTION.—Nothing in this Act provides

18 for the control of production or otherwise limits the right

19 of individual producers to produce canola, rapeseed, or

20 canola or rapeseed products.

21 SEC. 3. DEFINITIONS.

22 In this Act:

23 (1) BOARD.—The term ‘‘Board’’ means the Na24 tional Canola and Rapeseed Board established under

25 section 5(b).
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1 (2) CANOLA OR RAPESEED PRODUCTS.—The

2 term ‘‘canola or rapeseed products’’ means products

3 produced, in whole or in part, from canola or

4 rapeseed.

5 (3) COMMERCE.—The term ‘‘commerce’’ in6 cludes interstate, foreign, and intrastate commerce.

7 (4) CONFLICT OF INTEREST.—The term ‘‘con8 flict of interest’’ means a situation in which a mem9 ber has a direct or indirect financial interest in a

10 corporation, partnership, sole proprietorship, joint

11 venture, or other business entity dealing directly or

12 indirectly with the Board.

13 (5) CONSUMER INFORMATION.—The term

14 ‘‘consumer information’’ means information that will

15 assist consumers and other persons in making eval16 uations and decisions regarding the purchase, prepa17 ration, and use of canola or rapeseed products.

18 (6) DEPARTMENT.—The term ‘‘Department’’

19 means the Department of Agriculture.

20 (7) FIRST PURCHASER.—The term ‘‘first pur21 chaser’’ means—

22 (A) except as provided in subparagraph

23 (B), a person buying or otherwise acquiring

24 canola, rapeseed, or canola or rapeseed prod25 ucts produced by a producer; or
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1 (B) the Commodity Credit Corporation, in

2 a case in which canola or rapeseed is forfeited

3 to the Commodity Credit Corporation as collat4 eral for a loan issued under a price support

5 loan program administered by the Commodity

6 Credit Corporation.

7 (8) INDUSTRY INFORMATION.—The term ‘‘in8 dustry information’’ means information or programs

9 that will lead to the development of new markets,

10 new marketing strategies, or increased efficiency for

11 the canola and rapeseed industry, or an activity to

12 enhance the image of the canola or rapeseed indus13 try.

14 (9) INDUSTRY MEMBER.—The term ‘‘industry

15 member’’ means a member of the canola and

16 rapeseed industry who represents—

17 (A) manufacturers of canola or rapeseed

18 end products; or

19 (B) persons who commercially buy or sell

20 canola or rapeseed.

21 (10) MARKETING.—The term ‘‘marketing’’

22 means the sale or other disposition of canola,

23 rapeseed, or canola or rapeseed products in a chan24 nel of commerce.
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1 (11) ORDER.—The term ‘‘order’’ means an

2 order issued under section 4.

3 (12) PERSON.—The term ‘‘person’’ means an

4 individual, partnership, corporation, association, co5 operative, or any other legal entity.

6 (13) PRODUCER.—The term ‘‘producer’’ means

7 a person engaged in the growing of canola or

8 rapeseed in the United States who owns, or who

9 shares the ownership and risk of loss of, the canola

10 or rapeseed.

11 (14) PROMOTION.—The term ‘‘promotion’’

12 means an action, including paid advertising, tech13 nical assistance, or trade servicing activity, to en14 hance the image or desirability of canola, rapeseed,

15 or canola or rapeseed products in domestic and for16 eign markets, or an activity designed to commu17 nicate to consumers, processors, wholesalers, retail18 ers, government officials, or others information re19 lating to the positive attributes of canola, rapeseed,

20 or canola or rapeseed products or the benefits of use

21 or distribution of canola, rapeseed, or canola or

22 rapeseed products.

23 (15) QUALIFIED STATE CANOLA AND RAPESEED

24 BOARD.—The term ‘‘qualified State canola and

25 rapeseed board’’ means a State canola and rapeseed
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1 promotion entity that is authorized and functioning

2 under State law.

3 (16) RESEARCH.—The term ‘‘research’’ means

4 any type of test, study, or analysis to advance the

5 image, desirability, marketability, production, prod6 uct development, quality, or functional or nutritional

7 value of canola, rapeseed, or canola or rapeseed

8 products, including research activity designed to

9 identify and analyze barriers to export sales of

10 canola or rapeseed produced in the United States.

11 (17) SECRETARY.—The term ‘‘Secretary’’

12 means the Secretary of Agriculture.

13 (18) STATE.—The term ‘‘State’’ means any of

14 the 50 States, the District of Columbia and the

15 Commonwealth of Puerto Rico.

16 (19) UNITED STATES.—The term ‘‘United

17 States’’ means collectively the 50 States, the District

18 of Columbia, and the Commonwealth of Puerto Rico.

19 SEC. 4. ISSUANCE AND AMENDMENT OF ORDERS.

20 (a) IN GENERAL.—Effective beginning with the first

21 marketing year that the Secretary estimates that canola

22 or rapeseed will be produced in the United States in a

23 quantity sufficient to effectuate the policy described in sec24 tion 2(b), the Secretary, subject to subsection (b), shall

25 issue 1 or more orders under this Act applicable to produc-
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1 ers and first purchasers of canola or rapeseed products.

2 The order shall be national in scope. Not more than 1

3 order shall be in effect under this Act at any 1 time.

4 (b) PROCEDURE.—

5 (1) PROPOSAL OR REQUEST FOR ISSUANCE.—

6 The Secretary may propose the issuance of an order

7 under this Act, or an association of canola and

8 rapeseed producers or any other person that would

9 be affected by an order issued pursuant to this Act

10 may request the issuance of, and submit a proposal

11 for, an order.

12 (2) NOTICE AND COMMENT CONCERNING PRO13 POSED ORDER.—Not later than 60 days after the re14 ceipt of a request and proposal for an order pursu15 ant to paragraph (1), or whenever the Secretary de16 termines to propose an order, the Secretary shall

17 publish a proposed order and give due notice and op18 portunity for public comment on the proposed order.

19 (3) ISSUANCE OF ORDER.—After notice and op20 portunity for public comment are given as provided

21 in paragraph (2), the Secretary shall issue an order,

22 taking into consideration the comments received and

23 including in the order provisions necessary to ensure

24 that the order is in conformity with the require25 ments of this Act. The order shall be issued and be-
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1 come effective not later than 180 days following

2 publication of the proposed order.

3 (c) AMENDMENTS.—The Secretary, from time to

4 time, may amend an order issued under this section.

5 SEC. 5. REQUIRED TERMS IN ORDERS.

6 (a) IN GENERAL.—An order issued under this Act

7 shall contain the terms and conditions specified in this sec8 tion.

9 (b) ESTABLISHMENT AND MEMBERSHIP OF THE NA10 TIONAL CANOLA AND RAPESEED BOARD.—

11 (1) IN GENERAL.—The order shall provide for

12 the establishment of, and appointment of members

13 to, a National Canola and Rapeseed Board to ad14 minister the order.

15 (2) SERVICE TO ENTIRE INDUSTRY.—The

16 Board shall carry out programs and projects that

17 will provide maximum benefit to the canola and

18 rapeseed industry in all parts of the United States

19 and only promote canola, rapeseed, or canola or

20 rapeseed products.

21 (3) BOARD MEMBERSHIP.—The Board shall

22 consist of 15 members, including—

23 (A) 11 members who are producers, in24 cluding—
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1 (i) 1 member from each of 6 geo2 graphic regions comprised of States where

3 canola or rapeseed is produced, as deter4 mined by the Secretary; and

5 (ii) 5 members from the geographic

6 regions referred to in clause (i), allocated

7 according to the production in each region;

8 and

9 (B) 4 members who are industry members,

10 including at least—

11 (i) 1 member who represents manu12 facturers of canola or rapeseed end prod13 ucts; and

14 (ii) 1 member who represents persons

15 who commercially buy or sell canola or

16 rapeseed.

17 (4) LIMITATION ON STATE RESIDENCE.—There

18 shall be no more than 4 producer members of the

19 Board from any State.

20 (5) MODIFYING BOARD MEMBERSHIP.—In ac21 cordance with regulations approved by the Secretary,

22 at least once each 3 years and not more than once

23 each 2 years, the Board shall review the geographic

24 distribution of canola and rapeseed production
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1 throughout the United States and, if warranted, rec2 ommend to the Secretary that the Secretary—

3 (A) reapportion regions in order to reflect

4 the geographic distribution of canola and

5 rapeseed production; and

6 (B) reapportion the seats on the Board to

7 reflect the production in each region.

8 (6) CERTIFICATION OF ORGANIZATIONS.—

9 (A) IN GENERAL.—The eligibility of any

10 State organization to represent producers shall

11 be certified by the Secretary.

12 (B) CRITERIA.—The Secretary shall certify

13 any State organization that the Secretary deter14 mines has a history of stability and permanency

15 and meets at least one of the following criteria:

16 (i) MAJORITY REPRESENTATION.—

17 The organization’s total paid member18 ship—

19 (I) is comprised of at least a ma20 jority of canola or rapeseed producers;

21 or

22 (II) represents at least a major23 ity of the canola or rapeseed produc24 ers in the State.
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1 (ii) SUBSTANTIAL NUMBER OF PRO2 DUCERS REPRESENTED.—The organization

3 represents a substantial number of produc4 ers that produce a substantial amount of

5 canola or rapeseed in the State.

6 (iii) PURPOSE.—The organization is a

7 general farm or agricultural organization

8 that has as a stated objective the pro9 motion and development of the United

10 States canola or rapeseed industries and

11 the economic welfare of United States

12 canola or rapeseed producers.

13 (C) REPORT.—The Secretary shall make a

14 certification under this paragraph on the basis

15 of a factual report submitted by the State orga16 nization.

17 (7) TERMS OF OFFICE.—

18 (A) IN GENERAL.—The members of the

19 Board shall serve for a term of 3 years, except

20 that the members appointed to the initial Board

21 shall serve, proportionately, for terms of 1, 2,

22 and 3 years, as determined by the Secretary.

23 (B) TERMINATION OF TERMS.—Notwith24 standing subparagraph (C), each member shall
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1 continue to serve until a successor is appointed

2 by the Secretary.

3 (C) LIMITATION ON TERMS.—No individ4 ual may serve more than 2 consecutive 3-year

5 terms as a member.

6 (8) COMPENSATION.—A member of the Board

7 shall serve without compensation, but shall be reim8 bursed for necessary and reasonable expenses in9 curred in the performance of duties for and ap10 proved by the Board.

11 (c) POWERS AND DUTIES OF THE BOARD.—The

12 order shall define the powers and duties of the Board,

13 which shall include the power and duty—

14 (1) to administer the order in accordance with

15 the terms and conditions of the order;

16 (2) to make regulations to effectuate the terms

17 and conditions of the order;

18 (3) to meet, organize, and select from among

19 members of the Board a chairperson, other officers,

20 and committees and subcommittees, as the Board

21 determines appropriate;

22 (4) to establish working committees of persons

23 other than Board members;

24 (5) to employ such persons, other than Board

25 members, as the Board considers necessary, and to
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1 determine the compensation and define the duties of

2 the persons;

3 (6) to prepare and submit for the approval of

4 the Secretary, when appropriate or necessary, a rec5 ommended rate of assessment under section 6, and

6 a fiscal period budget of the anticipated expenses in

7 the administration of the order, including the prob8 able costs of all programs and projects;

9 (7) to develop programs and projects, subject to

10 subsection (d);

11 (8) to enter into contracts or agreements, sub12 ject to subsection (e), to develop and carry out pro13 grams or projects of research, promotion, industry

14 information, and consumer information;

15 (9) to carry out research, promotion, industry

16 information, and consumer information projects, and

17 to pay the costs of the projects with assessments col18 lected under section 6;

19 (10) to keep minutes, books, and records that

20 reflect the actions and transactions of the Board,

21 and promptly report minutes of each Board meeting

22 to the Secretary;

23 (11) to appoint and convene, from time to time,

24 working committees comprised of producers, indus25 try members, and the public to assist in the develop-
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1 ment of research, promotion, industry information,

2 and consumer information programs for canola,

3 rapeseed, and canola and rapeseed products;

4 (12) to invest, pending disbursement under a

5 program or project, funds collected through assess6 ments authorized under section 6, or funds earned

7 from investments, only in—

8 (A) obligations of the United States or an

9 agency of the United States;

10 (B) general obligations of a State or a po11 litical subdivision of a State;

12 (C) an interest-bearing account or certifi13 cate of deposit of a bank that is a member of

14 the Federal Reserve System; or

15 (D) obligations fully guaranteed as to prin16 cipal and interest by the United States;

17 (13) to receive, investigate, and report to the

18 Secretary complaints of violations of the order;

19 (14) to furnish the Secretary with such infor20 mation as the Secretary may request;

21 (15) to recommend to the Secretary amend22 ments to the order;

23 (16) to develop and recommend to the Sec24 retary for approval such regulations as may be nec25 essary for the development and execution of pro-
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1 grams or projects, or as may otherwise be necessary,

2 to carry out the order; and

3 (17) to provide the Secretary with advance no4 tice of meetings.

5 (d) PROGRAMS AND BUDGETS.—

6 (1) SUBMISSION TO SECRETARY.—The order

7 shall provide that the Board shall submit to the Sec8 retary for approval any program or project of re9 search, promotion, consumer information, or indus10 try information. No program or project shall be im11 plemented prior to approval by the Secretary.

12 (2) BUDGETS.—The order shall require the

13 Board, prior to the beginning of each fiscal year, or

14 as may be necessary after the beginning of a fiscal

15 year, to submit to the Secretary for approval budg16 ets of anticipated expenses and disbursements in the

17 implementation of the order, including projected

18 costs of research, promotion, consumer information,

19 and industry information programs and projects.

20 (3) INCURRING EXPENSES.—The Board may

21 incur such expenses for programs or projects of re22 search, promotion, consumer information, or indus23 try information, and other expenses for the adminis24 tration, maintenance, and functioning of the Board

25 as may be authorized by the Secretary, including
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1 any implementation, administrative, and referendum

2 costs incurred by the Department.

3 (4) PAYING EXPENSES.—The funds to cover the

4 expenses referred to in paragraph (3) shall be paid

5 by the Board from assessments collected under sec6 tion 6 or funds borrowed pursuant to paragraph (5).

7 (5) AUTHORITY TO BORROW.—To meet the ex8 penses referred to in paragraph (3), the Board shall

9 have the authority to borrow funds, as approved by

10 the Secretary, for capital outlays and startup costs.

11 (e) CONTRACTS AND AGREEMENTS.—

12 (1) IN GENERAL.—To ensure efficient use of

13 funds, the order shall provide that the Board may

14 enter into a contract or agreement for the implemen15 tation and carrying out of a program or project of

16 canola or rapeseed research, promotion, consumer

17 information, or industry information, including a

18 contract with a producer organization, and for the

19 payment of the costs with funds received by the

20 Board under the order.

21 (2) REQUIREMENTS.—A contract or agreement

22 under paragraph (1) shall provide that—

23 (A) the contracting party shall develop and

24 submit to the Board a program or project to25 gether with a budget that shall show the esti-
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1 mated costs to be incurred for the program or

2 project;

3 (B) the program or project shall become

4 effective on the approval of the Secretary; and

5 (C) the contracting party shall keep accu6 rate records of all transactions, account for

7 funds received and expended, make periodic re8 ports to the Board of activities conducted, and

9 make such other reports as the Board or the

10 Secretary may require.

11 (3) PRODUCER ORGANIZATIONS.—The order

12 shall provide that the Board may contract with pro13 ducer organizations for any other services. The con14 tract shall include provisions comparable to those re15 quired by paragraph (2).

16 (f) BOOKS AND RECORDS OF THE BOARD.—

17 (1) IN GENERAL.—The order shall require the

18 Board to—

19 (A) maintain such books and records

20 (which shall be available to the Secretary for in21 spection and audit) as the Secretary may pre22 scribe;

23 (B) prepare and submit to the Secretary,

24 from time to time, such reports as the Sec25 retary may prescribe; and
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1 (C) account for the receipt and disburse2 ment of all funds entrusted to the Board.

3 (2) AUDITS.—The Board shall cause the books

4 and records of the Board to be audited by an inde5 pendent auditor at the end of each fiscal year, and

6 a report of the audit to be submitted to the Sec7 retary.

8 (g) PROHIBITION.—

9 (1) IN GENERAL.—Subject to paragraph (2),

10 the Board shall not engage in any action to, nor

11 shall any funds received by the Board under this Act

12 be used to—

13 (A) influence legislation or governmental

14 action;

15 (B) engage in an action that would be a

16 conflict of interest;

17 (C) engage in advertising that is false or

18 misleading; or

19 (D) engage in promotion that would dis20 parage other commodities.

21 (2) ACTION PERMITTED.—Paragraph (1) does

22 not preclude—

23 (A) the development and recommendation

24 of amendments to the order;
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1 (B) the communication to appropriate gov2 ernment officials of information relating to the

3 conduct, implementation, or results of pro4 motion, research, consumer information, or in5 dustry information activities under the order; or

6 (C) any action designed to market canola

7 or rapeseed products directly to a foreign gov8 ernment or political subdivision of a foreign

9 government.

10 (h) BOOKS AND RECORDS.—

11 (1) IN GENERAL.—The order shall require that

12 each producer or industry member shall—

13 (A) maintain and submit to the Board any

14 reports considered necessary by the Secretary

15 to ensure compliance with this Act; and

16 (B) make available during normal business

17 hours, for inspection by employees of the Board

18 or Secretary, such books and records as are

19 necessary to carry out this Act, including such

20 records as are necessary to verify any required

21 reports.

22 (2) CONFIDENTIALITY.—

23 (A) IN GENERAL.—Except as otherwise

24 provided in this Act, all information obtained

25 from books, records, or reports required to be
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1 maintained under paragraph (1) shall be kept

2 confidential, and shall not be disclosed to the

3 public by any person.

4 (B) DISCLOSURE.—Information referred to

5 in subparagraph (A) may be disclosed to the

6 public if—

7 (i) the Secretary considers the infor8 mation relevant;

9 (ii) the information is revealed in a

10 suit or administrative hearing brought at

11 the direction or on the request of the Sec12 retary or to which the Secretary or any of13 ficer of the Department is a party; and

14 (iii) the information relates to this

15 Act.

16 (C) MISCONDUCT.—A disclosure of con17 fidential information in violation of subpara18 graph (A) by a Board member or employee of

19 the Board, except as required by other law or

20 allowed under subparagraph (B) or (D), shall

21 be considered a violation of this Act.

22 (D) GENERAL STATEMENTS.—Nothing in

23 this paragraph prohibits—

24 (i) the issuance of general statements,

25 based on the reports, of the number of per-
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1 sons subject to the order or statistical data

2 collected from the reports, if the state3 ments do not identify the information fur4 nished by any person; or

5 (ii) the publication, by direction of the

6 Secretary, of the name of a person violat7 ing the order, together with a statement of

8 the particular provisions of the order vio9 lated by the person.

10 (3) AVAILABILITY OF INFORMATION.—

11 (A) EXCEPTION.—Except as provided in

12 this Act, information obtained under this Act

13 may be made available to another agency of the

14 Federal Government for a civil or criminal law

15 enforcement activity if the activity is authorized

16 by law and if the head of the agency has made

17 a written request to the Secretary specifying

18 the particular information desired and the law

19 enforcement activity for which the information

20 is sought.

21 (B) PENALTY.—Any person knowingly vio22 lating this subsection, on conviction, shall be

23 subject to a fine of not more than $1,000 or to

24 imprisonment for not more than 1 year, or

25 both, and if an officer or employee of the Board
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1 or the Department, shall be removed from office

2 or terminated from employment, as applicable.

3 (5) WITHHOLDING INFORMATION.—Nothing in

4 this Act authorizes withholding information from

5 Congress.

6 (i) USE OF ASSESSMENTS.—The order shall provide

7 that the assessments collected under section 6 shall be

8 used for payment of the expenses in implementing and ad9 ministering this Act, with provision for a reasonable re10 serve, and to cover those administrative costs incurred by

11 the Secretary in implementing and administering this Act,

12 except for the salaries of Government employees incurred

13 in conducting referenda.

14 (j) OTHER TERMS AND CONDITIONS.—The order

15 also shall contain such terms and conditions, not inconsist16 ent with this Act, as determined necessary by the Sec17 retary to effectuate this Act.

18 SEC. 6. ASSESSMENTS.

19 (a) IN GENERAL.—During the effective period of an

20 order issued pursuant to this Act, assessments shall be—

21 (1) levied on all canola or rapeseed produced in

22 the United States and marketed; and

23 (2) deducted from the payment made to a pro24 ducer for all canola or rapeseed sold to a first pur25 chaser.
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1 (b) LIMITATION ON ASSESSMENTS.—No more than

2 1 assessment may be assessed under subsection (a) on any

3 canola or rapeseed produced (as remitted by a first pur4 chaser).

5 (c) REMITTING ASSESSMENTS.—

6 (1) IN GENERAL.—Assessments required under

7 subsection (a) shall be remitted to the Board by a

8 first purchaser.

9 (2) TIMES TO REMIT ASSESSMENT.—Each first

10 purchaser shall remit the assessment to the Board

11 as provided for in the order.

12 (d) ASSESSMENT RATE.—

13 (1) INITIAL RATE.—The initial assessment rate

14 shall be—

15 (A) 2 cents per hundredweight of canola or

16 rapeseed produced and marketed in a State in

17 which there is a qualified State canola and

18 rapeseed board; and

19 (B) 4 cents per hundredweight of canola or

20 rapeseed produced and marketed in a State in

21 which there is no qualified State canola and

22 rapeseed board.

23 (2) INCREASE.—The assessment rate may be

24 increased on recommendation by the Board to a rate

25 not exceeding 8 cents per hundredweight of canola
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1 or rapeseed produced and marketed in a State in

2 which there is a qualified State canola and rapeseed

3 board or 10 cents per hundredweight of canola or

4 rapeseed produced and marketed in a State in which

5 there is no qualified State canola and rapeseed

6 board, unless—

7 (A) after the initial referendum is held

8 under section 7(a), the Board recommends an

9 increase above 10 cents per hundredweight; and

10 (B) the increase is approved in a referen11 dum under section 7(b).

12 (e) LATE PAYMENT CHARGE.—

13 (1) IN GENERAL.—There shall be a late pay14 ment charge imposed on any person who fails to

15 remit, on or before the date provided for in the

16 order, to the Board the total amount for which the

17 person is liable.

18 (2) AMOUNT OF CHARGE.—The amount of the

19 late payment charge imposed under paragraph (1)

20 shall be prescribed by the Board with the approval

21 of the Secretary.

22 (f) REFUND OF ASSESSMENTS FROM ESCROW AC23 COUNT.—

24 (1) ESTABLISHMENT OF ESCROW ACCOUNT.—

25 During the period beginning on the date on which
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1 an order is first issued under section 4(b)(3) and

2 ending on the date on which a referendum is con3 ducted under section 7(a), the Board shall—

4 (A) establish an escrow account to be used

5 for assessment refunds; and

6 (B) place funds in such account in accord7 ance with paragraph (2).

8 (2) PLACEMENT OF FUNDS IN ACCOUNT.—The

9 Board shall place in such account, from assessments

10 collected during the period referred to in paragraph

11 (1), an amount equal to the product obtained by

12 multiplying the total amount of assessments col13 lected during the period by 10 percent.

14 (3) RIGHT TO RECEIVE REFUND.—The Board

15 shall refund to a producer the assessments paid by

16 or on behalf of the producer if—

17 (A) the producer is required to pay the as18 sessment;

19 (B) the producer does not support the pro20 gram established under this Act; and

21 (C) the producer demands the refund prior

22 to the conduct of the referendum under section

23 7(a).

24 (4) FORM OF DEMAND.—The demand shall be

25 made in accordance with such regulations, in such
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1 form, and within such time period as prescribed by

2 the Board.

3 (5) MAKING OF REFUND.—The refund shall be

4 made on submission of proof satisfactory to the

5 Board that the producer paid the assessment for

6 which the refund is demanded.

7 (6) PRORATION.—If—

8 (A) the amount in the escrow account re9 quired by paragraph (1) is not sufficient to re10 fund the total amount of assessments demanded

11 by eligible producers; and

12 (B) the order is not approved pursuant to

13 the referendum conducted under section 7(a);

14 the Board shall prorate the amount of the refunds

15 among all eligible producers who demand a refund.

16 (7) PROGRAM APPROVED.—If the plan is ap17 proved pursuant to the referendum conducted under

18 section 7(a), all funds in the escrow account shall be

19 returned to the Board for use by the Board in ac20 cordance with this Act.

21 SEC. 7. REFERENDA.

22 (a) INITIAL REFERENDUM.—

23 (1) REQUIREMENT.—During the period ending

24 30 months after the date of the issuance of an order

25 under section 4, the Secretary shall conduct a ref-
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1 erendum among producers who, during a representa2 tive period as determined by the Secretary, have

3 been engaged in the production of canola or

4 rapeseed for the purpose of ascertaining whether the

5 order then in effect shall be continued.

6 (2) ADVANCE NOTICE.—The Secretary shall, to

7 the extent practicable, provide broad public notice in

8 advance of any referendum. The notice shall be pro9 vided, without advertising expenses, by means of

10 newspapers, county newsletters, the electronic media,

11 and press releases, through the use of notices posted

12 in State and county Cooperative State Research,

13 Education, and Extension Service offices and county

14 Consolidated Farm Service Agency offices, and by

15 other appropriate means specified in the order. The

16 notice shall include information on when the referen17 dum will be held, registration and voting require18 ments, rules regarding absentee voting, and other

19 pertinent information.

20 (3) APPROVAL OF ORDER.—The order shall be

21 continued only if the Secretary determines that the

22 order has been approved by not less than a majority

23 of the producers voting in the referendum.

24 (4) DISAPPROVAL OF ORDER.—If continuation

25 of the order is not approved by a majority of those
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1 voting in the referendum, the Secretary shall termi2 nate collection of assessments under the order within

3 6 months after the referendum and shall terminate

4 the order in an orderly manner as soon as prac5 ticable.

6 (b) ADDITIONAL REFERENDA.—

7 (1) IN GENERAL.—

8 (A) REQUIREMENT.—After the initial ref9 erendum on an order, the Secretary shall con10 duct additional referenda, as described in sub11 paragraph (C), if requested by a representative

12 group of producers, as described in subpara13 graph (B).

14 (B) REPRESENTATIVE GROUP OF PRODUC15 ERS.—An additional referendum on an order

16 shall be conducted if requested by 10 percent or

17 more of the producers who during a representa18 tive period have been engaged in the production

19 of canola or rapeseed.

20 (C) ELIGIBLE PRODUCERS.—Each addi21 tional referendum shall be conducted among all

22 producers who, during a representative period,

23 as determined by the Secretary, have been en24 gaged in the production of canola, rapeseed, or

25 canola or rapeseed products, to determine
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1 whether the producers favor the termination or

2 suspension of the order.

3 (2) DISAPPROVAL OF ORDER.—If the Secretary

4 determines, in a referendum conducted under para5 graph (1), that suspension or termination of the

6 order is favored by a majority of the producers vot7 ing in the referendum, the Secretary shall suspend

8 or terminate, as appropriate, collection of assess9 ments under the order within 6 months after the de10 termination, and shall suspend or terminate the

11 order, as appropriate, in an orderly manner as soon

12 as practicable after the determination.

13 (3) OPPORTUNITY TO REQUEST ADDITIONAL

14 REFERENDA.—

15 (A) IN GENERAL.—Beginning on the date

16 that is 5 years after the conduct of a referen17 dum under this Act, and every 5 years there18 after, the Secretary shall provide canola and

19 rapeseed producers an opportunity to request

20 an additional referendum.

21 (B) METHOD OF MAKING REQUEST.—

22 (i) IN-PERSON REQUESTS.—To carry

23 out subparagraph (A), the Secretary shall

24 establish a procedure under which a pro25 ducer may request a reconfirmation ref-
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1 erendum in-person at a county Cooperative

2 State Research, Education, and Extension

3 Service office or a county Consolidated

4 Farm Service Agency office during a pe5 riod established by the Secretary, or as

6 provided in clause (ii).

7 (ii) MAIL-IN REQUESTS.—In lieu of

8 making a request in person, a producer

9 may make a request by mail. To facilitate

10 the submission of requests by mail, the

11 Secretary may make mail-in request forms

12 available to producers.

13 (C) NOTIFICATIONS.—The Secretary shall

14 publish a notice in the Federal Register, and

15 the Board shall provide written notification to

16 producers, not later than 60 days prior to the

17 end of the period established under subpara18 graph (B)(i) for an in-person request, of the op19 portunity of producers to request an additional

20 referendum. The notification shall explain the

21 right of producers to an additional referendum,

22 the procedure for a referendum, the purpose of

23 a referendum, and the date and method by

24 which producers may act to request an addi25 tional referendum under this paragraph. The
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1 Secretary shall take such other action as the

2 Secretary determines is necessary to ensure

3 that producers are made aware of the oppor4 tunity to request an additional referendum.

5 (D) ACTION BY SECRETARY.—As soon as

6 practicable following the submission of a re7 quest for an additional referendum, the Sec8 retary shall determine whether a sufficient

9 number of producers have requested the ref10 erendum, and take such steps as are necessary

11 to conduct the referendum, as required under

12 paragraph (1).

13 (E) TIME LIMIT.—An additional referen14 dum requested under the procedures provided

15 in this paragraph shall be conducted not later

16 than 1 year after the Secretary determines that

17 a representative group of producers, as de18 scribed in paragraph (1)(B), have requested the

19 conduct of the referendum.

20 (c) PROCEDURES.—

21 (1) REIMBURSEMENT OF SECRETARY.—The

22 Secretary shall be reimbursed from assessments col23 lected by the Board for any expenses incurred by the

24 Secretary in connection with the conduct of an activ25 ity required under this section, except for the sala-
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1 ries of Government employees associated with con2 ducting a referendum under subsections (a) and (b).

3 (2) DATE.—Each referendum shall be con4 ducted for a reasonable period of time not to exceed

5 3 days, established by the Secretary, under a proce6 dure under which producers intending to vote in the

7 referendum shall certify that the producers were en8 gaged in the production of canola, rapeseed, or

9 canola or rapeseed products during the representa10 tive period and, at the same time, shall be provided

11 an opportunity to vote in the referendum.

12 SEC. 8. PETITION AND REVIEW.

13 (a) PETITION.—

14 (1) IN GENERAL.—A person subject to an order

15 issued under this Act may file with the Secretary a

16 petition—

17 (A) stating that the order, a provision of

18 the order, or an obligation imposed in connec19 tion with the order is not established in accord20 ance with law; and

21 (B) requesting a modification of the order

22 or an exemption from the order.

23 (2) HEARINGS.—The petitioner shall be given

24 the opportunity for a hearing on a petition filed
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1 under paragraph (1), in accordance with regulations

2 issued by the Secretary.

3 (3) RULING.—After a hearing under paragraph

4 (2), the Secretary shall make a ruling on the peti5 tion that is the subject of the hearing, which shall

6 be final if the ruling is in accordance with applicable

7 law.

8 (b) REVIEW.—

9 (1) COMMENCEMENT OF ACTION.—The district

10 court of the United States in any district in which

11 the person who is a petitioner under subsection (a)

12 resides or carries on business shall have jurisdiction

13 to review a ruling on the petition, if a complaint is

14 filed by the person not later than 20 days after the

15 date of the entry of a ruling by the Secretary under

16 subsection (a)(3).

17 (2) PROCESS.—Service of process in a proceed18 ing under paragraph (1) shall be conducted in ac19 cordance with the Federal Rules of Civil Procedure.

20 (3) REMANDS.—If the court determines, under

21 paragraph (1), that a ruling issued under subsection

22 (a)(3) is not in accordance with applicable law, the

23 court shall remand the matter to the Secretary with

24 directions either—
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1 (A) to make such ruling as the court shall

2 determine to be in accordance with law; or

3 (B) to take such further proceedings as, in

4 the opinion of the court, the law requires.

5 (4) ENFORCEMENT.—The pendency of proceed6 ings instituted under subsection (a) shall not im7 pede, hinder, or delay the Attorney General or the

8 Secretary from taking any action under section 9.

9 SEC. 9. ENFORCEMENT.

10 (a) JURISDICTION.—The district courts of the United

11 States are vested with jurisdiction specifically to enforce,

12 and to prevent and restrain any person from violating, an

13 order or regulation made or issued under this Act.

14 (b) REFERRAL TO ATTORNEY GENERAL.—A civil ac15 tion authorized to be commenced under this section shall

16 be referred to the Attorney General for appropriate action,

17 except that the Secretary shall not be required to refer

18 to the Attorney General a violation of this Act if the Sec19 retary believes that the administration and enforcement

20 of this Act would be adequately served by providing a suit21 able written notice or warning to the person who commit22 ted the violation or by administrative action under

23 section 8.

24 (c) CIVIL PENALTIES AND ORDERS.—

25 (1) CIVIL PENALTIES.—
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1 (A) IN GENERAL.—Any person who will2 fully violates any provision of an order or regu3 lation issued by the Secretary under this Act, or

4 who fails or refuses to pay, collect, or remit an

5 assessment or fee required of the person under

6 an order or regulation, may be assessed—

7 (i) a civil penalty by the Secretary of

8 not more than $1,000 for each violation;

9 and

10 (ii) in the case of a willful failure to

11 pay, collect, or remit an assessment as re12 quired by an order or regulation, an addi13 tional penalty equal to the amount of the

14 assessment.

15 (B) SEPARATE OFFENSE.—Each violation

16 under subparagraph (A) shall be a separate of17 fense.

18 (2) CEASE-AND-DESIST ORDERS.—In addition

19 to, or in lieu of, a civil penalty under paragraph (1),

20 the Secretary may issue an order requiring a person

21 to cease and desist from continuing a violation.

22 (3) NOTICE AND HEARING.—No penalty shall

23 be assessed, or cease-and-desist order issued, by the

24 Secretary under this subsection unless the person

25 against whom the penalty is assessed or the order is
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1 issued is given notice and opportunity for a hearing

2 before the Secretary with respect to the violation.

3 (4) FINALITY.—The order of the Secretary as4 sessing a penalty or imposing a cease-and-desist

5 order under this subsection shall be final and conclu6 sive unless the affected person files an appeal of the

7 order with the appropriate district court of the

8 United States in accordance with subsection (d).

9 (d) REVIEW BY DISTRICT COURT.—

10 (1) COMMENCEMENT OF ACTION.—Any person

11 who has been determined to be in violation of this

12 Act, or against whom a civil penalty has been as13 sessed or a cease-and-desist order issued under sub14 section (c), may obtain review of the penalty or

15 order by—

16 (A) filing, within the 30-day period begin17 ning on the date the penalty is assessed or

18 order issued, a notice of appeal in—

19 (i) the district court of the United

20 States for the district in which the person

21 resides or conducts business; or

22 (ii) the United States District Court

23 for the District of Columbia; and

24 (B) simultaneously sending a copy of the

25 notice by certified mail to the Secretary.
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1 (2) RECORD.—The Secretary shall file prompt2 ly, in the appropriate court referred to in paragraph

3 (1), a certified copy of the record on which the Sec4 retary has determined that the person has commit5 ted a violation.

6 (3) STANDARD OF REVIEW.—A finding of the

7 Secretary under this section shall be set aside only

8 if the finding is found to be unsupported by substan9 tial evidence.

10 (e) FAILURE TO OBEY ORDERS.—Any person who

11 fails to obey a cease-and-desist order issued under this sec12 tion after the order has become final and unappealable,

13 or after the appropriate United States district court has

14 entered a final judgment in favor of the Secretary, shall

15 be subject to a civil penalty assessed by the Secretary,

16 after opportunity for a hearing and for judicial review

17 under the procedures specified in subsections (c) and (d),

18 of not more than $5,000 for each offense. Each day during

19 which the failure continues shall be considered as a sepa20 rate violation of the order.

21 (f) FAILURE TO PAY PENALTIES.—If a person fails

22 to pay an assessment of a civil penalty under this section

23 after the assessment has become a final and unappealable

24 order, or after the appropriate United States district court

25 has entered final judgment in favor of the Secretary, the
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1 Secretary shall refer the matter to the Attorney General

2 for recovery of the amount assessed in the district court

3 in which the person resides or conducts business. In an

4 action for recovery, the validity and appropriateness of the

5 final order imposing the civil penalty shall not be subject

6 to review.

7 (g) ADDITIONAL REMEDIES.—The remedies provided

8 in this Act shall be in addition to, and not exclusive of,

9 other remedies that may be available.

10 SEC. 10. INVESTIGATIONS AND POWER TO SUBPOENA.

11 (a) INVESTIGATIONS.—The Secretary may make such

12 investigations as the Secretary considers necessary—

13 (1) for the effective administration of this Act;

14 and

15 (2) to determine whether any person has en16 gaged or is engaging in an act that constitutes a vio17 lation of this Act, or an order, rule, or regulation is18 sued under this Act.

19 (b) SUBPOENAS, OATHS, AND AFFIRMATIONS.—

20 (1) IN GENERAL.—For the purpose of an inves21 tigation under subsection (a), the Secretary may ad22 minister oaths and affirmations, and issue subpoe23 nas to require the production of any records that are

24 relevant to the inquiry.
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1 (2) ADMINISTRATIVE HEARINGS.—For the pur2 pose of an administrative hearing held under section

3 8 or 9, the presiding officer is authorized to admin4 ister oaths and affirmations, subpoena and compel

5 the attendance of witnesses, take evidence, and re6 quire the production of any records that are relevant

7 to the inquiry. The attendance of witnesses and the

8 production of records may be required from any

9 place in the United States.

10 (c) AID OF COURTS.—In the case of contumacy by,

11 or refusal to obey a subpoena issued to, any person, the

12 Secretary may invoke the aid of any court of the United

13 States within the jurisdiction of which the investigation

14 or proceeding is carried on, or where the person resides

15 or carries on business, in order to enforce a subpoena is16 sued by the Secretary under subsection (b). The court may

17 issue an order requiring the person to comply with the

18 subpoena.

19 (d) CONTEMPT.—A failure to obey an order of the

20 court under this section may be punished by the court as

21 contempt of the court.

22 (e) PROCESS.—Process may be served on a person

23 in the judicial district in which the person resides or con24 ducts business or wherever the person may be found.
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1 (f) HEARING SITE.—The site of a hearing held under

2 section 8 or 9 shall be in the judicial district where the

3 person affected by the hearing resides or has a principal

4 place of business.

5 SEC. 11. SUSPENSION OR TERMINATION OF AN ORDER.

6 The Secretary shall, whenever the Secretary finds

7 that an order or a provision of an order obstructs or does

8 not tend to effectuate the declared policy of this Act, ter9 minate or suspend the operation of the order or provision.

10 The termination or suspension of an order shall not be

11 considered an order within the meaning of this Act.

12 SEC. 12. REGULATIONS.

13 The Secretary may issue such regulations as are nec14 essary to carry out this Act, including regulations relating

15 to the assessment of late payment charges.

16 SEC. 13. AUTHORIZATION OF APPROPRIATIONS.

17 (a) IN GENERAL.—There are authorized to be appro18 priated for each fiscal year such sums as are necessary

19 to carry out this Act.

20 (b) ADMINISTRATIVE EXPENSES.—Funds appro21 priated under subsection (a) shall not be available for pay22 ment of the expenses or expenditures of the Board in ad23 ministering a provision of an order issued under this Act.

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