Pub. L. 94-294, 90 Stat. 529, May 28, 1976, as amended by Pub. L. 95-334, 92 Stat. 433, 1

Aug. 4, 1978. Title XVI, Subtitle A, of the Food Security Act of 1985, Pub. L. 99-198, 99

Stat. 1597, Dec. 23, 1985, revised sections 2 through 20 (7 U.S.C. 2901-2918.) and Section

1601(a) provided: “This Section may be cited as the Beef Promotion and Research Act of

1985.”.

580

BEEF RESEARCH AND INFORMATION ACT 1

(Beef Promotion and Research Act of 1985)

(7 U.S.C. 2901-2911)

To enable cattle producers to establish, finance, and carry out a

coordinated program of research, producer and consumer information,

and promotion to improve, maintain, and develop markets

for cattle, beef, and beef products.

Be it enacted by the Senate and House of Representatives of the United

States of America in Congress assembled, That this Act shall be known as

the “Beef Research and Information Act”. (7 U.S.C. 2901 note.)

CONGRESSIONAL FINDINGS AND DECLARATION OF POLICY

SEC. 2. (a) Congress finds that)

(1) beef and beef products are basic foods that are a valuable part

of human diet;

(2) the production of beef and beef products plays a significant role

in the Nation's economy, beef and beef products are produced by

thousands of beef producers and processed by numerous processing

entities, and beef and beef products are consumed by millions of

people throughout the United States and foreign countries;

(3) beef and beef products should be readily available and marketed

efficiently to ensure that the people of the United States receive

adequate nourishment;

(4) the maintenance and expansion of existing markets for beef and

beef products are vital to the welfare of beef producers and those

concerned with marketing, using, and producing beef products, as

well as to the general economy of the Nation;

(5) there exist established State and national organizations

conducting beef promotion, research, and consumer education

programs that are invaluable to the efforts of promoting the

consumption of beef and beef products; and

(6) beef and beef products move in interstate and foreign

commerce, and beef and beef products that do not move in such
581

channels of commerce directly burden or affect interstate commerce

of beef and beef products.

(b) It, therefore, is declared to be the policy of Congress that it is in the

public interest to authorize the establishment, through the exercise of the

powers provided herein, of an orderly procedure for financing (through

assessments on all cattle sold in the United States and on cattle, beef, and

beef products imported into the United States) and carrying out a

coordinated program of promotion and research designed to strengthen the

beef industry's position in the marketplace and to maintain and expand

domestic and foreign markets and uses for beef and beef products.

Nothing in this Act shall be construed to limit the right of individual

producers to raise cattle. (7 U.S.C. 2901.)

DEFINITIONS

SEC. 3. For purposes of this Act)

(1) the term “beef” means flesh of cattle;

(2) the term “beef products” means edible products produced in

whole or in part from beef, exclusive of milk and products made

therefrom;

(3) the term “Board” means the Cattlemen's Beef Promotion and

Research Board established under section 5(1);

(4) the term “cattle” means live domesticated bovine animals

regardless of age;

(5) the term “Committee” means the Beef Promotion Operating

Committee established under section 5(4);

(6) the term “consumer information” means nutritional data and

other information that will assist consumers and other persons in

making evaluations and decisions regarding the purchasing,

preparing, and use of beef and beef products;

(7) the term “Department” means the Department of Agriculture.

(8) the term “importer” means any person who imports cattle, beef,

or beef products from outside the United States;

(9) the term “industry information” means information and

programs that will lead to the development of new markets, marketing

strategies, increased efficiency, and activities to enhance the image of

the cattle industry;

(10) The term “order” means a beef promotion and research order

issued under section 4.

(11) the term “person” means any individual, group of individuals,

partnership, corporation, association, cooperative, or any other entity;

(12) the term “producer” means any person who owns or acquires

ownership of cattle, except that a person shall not be considered to be
582

a producer if the person's only share in the proceeds of a sale of cattle

or beef is a sales commission, handling fee, or other service fee;

(13) the term “promotion” means any action, including paid

advertising, to advance the image and desirability of beef and beef

products with the express intent of improving the competitive position

and stimulating sales of beef and beef products in the marketplace;

(14) the term “qualified State beef council” means a beef promotion

entity that is authorized by State statute or is organized and operating

within a State, that receives voluntary contributions and conducts beef

promotion, research, and consumer information programs, and that is

recognized by the Board as the beef promotion entity within such

State;

(15) the term “research” means studies testing the effectiveness of

market development and promotion efforts, studies relating to the

nutritional value of beef and beef products, other related food science

research, and new product development;

(16) the term “Secretary” means the Secretary of Agriculture;

(17) The term “State” means each of the 50 States; and

(18) the term “United States” means the several States and the

District of Columbia. (7 U.S.C. 2902.)

ISSUANCE OF ORDERS

SEC. 4. (a) During the period beginning on the effective date of this

section and ending thirty days after receipt of a proposal for a beef

promotion and research order, the Secretary shall publish such proposed

order and give due notice and opportunity for public comment on such

proposed order. Such proposal may be submitted by any organization

meeting the requirements for certification under section 6 or any interested

person, including the Secretary.

(b) After notice and opportunity for public comment are given, as

provided for in subsection (a), the Secretary shall issue a beef promotion

and research order. The order shall become effective not later than one

hundred and twenty days following publication of the proposed order. (7

U.S.C. 2903.)

REQUIRED TERMS IN ORDERS

SEC. 5. An order issued under section 4(b) shall contain the following

terms and conditions:

(1) The order shall provide for the establishment and selection of

a Cattlemen's Beef Promotion and Research Board. Members of the

Board shall be cattle producers and importers appointed by the

Secretary from (A) nominations submitted by eligible State
583

organizations certified under section 6 (or, if the Secretary determines

that there is no eligible State organization in a State, the Secretary

may provide for nominations from such State to be made in a different

manner), and (B) nominations submitted by importers under such

procedures as the Secretary determines appropriate. In determining

geographic representation for cattle producers on the Board, whole

States shall be considered as a unit. Each State that has a total cattle

inventory greater than five hundred thousand head shall be entitled to

at least one representative on the Board. A State that has a total

inventory of fewer than 500,000 cattle shall be grouped, as far as

practicable, with other States each of which has a combined total

inventory of not less than 500,000 cattle, into geographically

contiguous units in a manner prescribed in the order. A unit may be

represented on the Board by more than one member. For each

additional million head of cattle within a unit, such unit shall be

entitled to an additional member on the Board. The Board may

recommend a change in the level of inventory per unit necessary for

representation on the Board and, on such recommendation, the

Secretary may change the level necessary for representation on the

Board. The number of members on the Board that represent importers

shall be determined by the Secretary on a proportional basis, by

converting the volume of imported beef and beef products into live

animal equivalencies.

(2) The order shall define the powers and duties of the Board,

which shall be exercised at an annual meeting, and shall include only

the following powers:

(A) To administer the order in accordance with its terms and

provisions.

(B) To make rules and regulations to effectuate the terms and

provisions of the order.

(C) To elect members of the Board to serve on the Committee.

(D) To approve or disapprove budgets submitted by the

Committee.

(E) To receive, investigate, and report to the Secretary

complaints of violations of the order.

(F) To recommend to the Secretary amendments to the order.

In addition, the order shall determine the circumstances under which

special meetings of the Board may be held.

(3) The order shall provide that the term of appointment to the

Board shall be three years with no member serving more than two

consecutive terms, except that initial appointments shall be

proportionately for one-year, two-year, and three-year terms; and that

Board members shall serve without compensation, but shall be
584

reimbursed for their reasonable expenses incurred in performing their

duties as members of the Board.

(4)(A) The order shall provide that the Board shall elect from its

membership ten members to serve on the Beef Promotion Operating

Committee, which shall be composed of ten members of the Board

and ten producers elected by a federation that includes as members

the qualified State beef councils. The producers elected by the

federation shall be certified by the Secretary as producers that are

directors of a qualified State beef council. The Secretary also shall

certify that such directors are duly elected by the federation as

representatives to the Committee.

(B) The Committee shall develop plans or projects of promotion

and advertising, research, consumer information, and industry

information, which shall be paid for with assessments collected by the

Board. In developing plans or projects, the Committee shall)

(i) to the extent practicable, take into account similarities and

differences between certain beef, beef products, and veal; and

(ii) ensure that segments of the beef industry that enjoy a

unique consumer identity receive equitable and fair treatment

under this Act.

(C) The Committee shall be responsible for developing and

submitting to the Board, for its approval, budgets on a fiscal year

basis of its anticipated expenses and disbursements, including

probable costs of advertising and promotion, research, consumer

information, and industry information projects. The Board shall

approve or disapprove such budgets and, if approved, shall submit

such budget to the Secretary for the Secretary's approval.

(D) The total costs of collection of assessments and administrative

staff incurred by the Board during any fiscal year shall not exceed 5

per centum of the projected total assessments to be collected by the

Board for such fiscal year. The Board shall use, to the extent possible,

the resources, staffs, and facilities of existing organizations.

(5) The order shall provide that terms of appointment to the

Committee shall be one year, and that no person may serve on the

Committee for more than six consecutive terms. Committee members

shall serve without compensation, but shall be reimbursed for their

reasonable expenses incurred in performing their duties as members

of the Committee. The Committee may utilize the resources, staffs,

and facilities of the Board and industry organizations. An employee

of an industry organization may not receive compensation for work

performed for the Committee, but shall be reimbursed from

assessments collected by the Board for reasonable expenses incurred

in performing such work.
585

(6) The order shall provide that, to ensure coordination and

efficient use of funds, the Committee shall enter into contracts or

agreements for implementing and carrying out the activities

authorized by this Act with established national nonprofit

industry-governed organizations, including the federation referred to

in paragraph (4), to implement programs of promotion, research,

consumer information, and industry information. Any such contract

or agreement shall provide that)

(A) the person entering the contract or agreement shall develop

and submit to the Committee a plan or project together with a

budget or budgets that shows estimated costs to be incurred for

the plan or project;

(B) the plan or project shall become effective on the approval

of the Secretary; and

(C) the person entering the contract or agreement shall keep

accurate records of all of its transactions, account for funds

received and expended, and make periodic reports to the

Committee of activities conducted, and such other reports as the

Secretary, the Board, or the Committee may require.

(7) The order shall require the Board and the Committee to)

(A) maintain such books and records, which shall be available

to the Secretary for inspection and audit, as the Secretary may

prescribe;

(B) prepare and submit to the Secretary, from time to time,

such reports as the Secretary may prescribe; and

(C) account for the receipt and disbursement of all funds

entrusted to them.

(8)(A) The order shall provide that each person making payment to

a producer for cattle purchased from the producer shall, in the manner

prescribed by the order, collect an assessment and remit the

assessment to the Board. The Board shall use qualified State beef

councils to collect such assessments.

(B) If an appropriate qualified State beef council does not exist to

collect an assessment in accordance with paragraph (1), such

assessment shall be collected by the Board.

(C) The order also shall provide that each importer of cattle, beef,

or beef products shall pay an assessment, in the manner prescribed by

the order, to the Board. The assessments shall be used for payment of

the costs of plans and projects, as provided for in paragraph (4), and

expenses in administering the order, including more administrative

costs incurred by the Secretary after the order has been promulgated

under this Act, and to establish a reasonable reserve. The rate of

assessment prescribed by the order shall be one dollar per head of

cattle, or the equivalent thereof in the case of imported beef and beef
586

products. A producer who can establish that the producer is

participating in a program of an established qualified State beef

council shall receive credit, in determining the assessment due from

such producer, for contributions to such program of up to 50 cents per

head of cattle or the equivalent thereof. There shall be only one

qualified State beef council in each State. Any person marketing from

beef from cattle of the person's own production shall remit the

assessment to the Board in the manner prescribed by the order.

(9) The order shall provide that the Board, with the approval of the

Secretary, may invest, pending disbursement, funds collected through

assessments only in obligations of the United States or any agency

thereof, in general obligations of any State or any political subdivision

thereof, in any interest-bearing account or certificate of deposit of a

bank that is a member of the Federal Reserve System, or in

obligations fully guaranteed as to principal and interest by the United

States.

(10) The order shall prohibit any funds collected by the Board

under the order from being used in any manner for the purpose of

influencing governmental action or policy, with the exception of

recommending amendments to the order.

(11) The order shall require that each person making payment to a

producer, any person marketing beef from cattle of the person's own

production directly to consumers, and any importer of cattle, beef, or

beef products maintain and make available for inspection such books

and records as may be required by the order and file reports at the

time, in the manner, and having the content prescribed by the order.

Such information shall be made available to the Secretary as is

appropriate to the administration or enforcement of this Act, the

order, or any regulation issued under this Act. In addition, the

Secretary shall authorize the use of information regarding persons

paying producers that is accumulated under a law or regulation other

than this Act or regulations under this Act.

All information so obtained shall be kept confidential by all officers

and employees of the Department, and only such information so

obtained as the Secretary deems relevant may be disclosed by them

and then only in a suit or administrative hearing brought at the request

of the Secretary, or to which the Secretary or any officer of the United

States is a party, and involving the order. Nothing in this paragraph

may be deemed to prohibit)

(A) the issuance of general statements, based on the reports, of

the number of persons subject to the order or statistical data

collected therefrom, which statements do not identify the

information furnished by any person; or
587

(B) the publication, by direction of the Secretary, of the name

of any person violating the order, together with a statement of the

particular provisions of the order violated by the person.

No information obtained under the authority of this Act may be

made available to any agency or officer of the United States for any

purpose other than the implementation of this Act and any

investigatory or enforcement act necessary for the implementation of

this Act. Any person violating the provisions of this paragraph shall

be subject to a fine of not more than $1,000, or to imprisonment for

not more than one year, or both, and if an officer or employee of the

Board or the Department, shall be removed from office.

(12) The order shall contain terms and conditions, not inconsistent

with the provisions of this Act, as necessary to effectuate the

provisions of the order. (7 U.S.C. 2904.)

CERTIFICATION OF ORGANIZATIONS TO NOMINATE

SEC. 6. (a) The eligibility of any State organization to represent

producers and to participate in the making of nominations under section

5(1) shall be certified by the Secretary. The Secretary shall certify any

State organization that the Secretary determines meets the eligibility

criteria established under subsection (b) and such determination as to

eligibility shall be final.

(b) A State cattle association or State general farm organization may be

certified as described in subsection (a) if such association or organization

meets all of the following eligibility criteria:

(1) The association or organization's total paid membership is

comprised of at least a majority of cattle producers or the association

or organization's total paid membership represents at least a majority

of the cattle producers in the State.

(2) The association or organization represents a substantial number

of producers that produce a substantial number of cattle in the State.

(3) The association or organization has a history of stability and

permanency.

(4) A primary or overriding purpose of the association or

organization is to promote the economic welfare of cattle producers.

(c) Certification of State cattle associations and State general farm

organizations shall be based on a factual report submitted by the

association or organization involved.

(d) If more than one State organization is certified in a State (or in a unit

referred to in section 5(1)), such organizations may caucus to determine

any of such State's (or such unit's) nominations under section 5(1). (7

U.S.C. 2905.)
588

REQUIREMENT OF REFERENDUM

SEC. 7. (a) For the purpose of determining whether the initial order shall

be continued, not later than 22 months after the issuance of the order (or

any earlier date recommended by the Board), the Secretary shall conduct

a referendum among persons who have been producers or importers during

a representative period, as determined by the Secretary. The order shall be

continued only if the Secretary determines that it has been approved by not

less than a majority of the producers voting in the referendum who, during

a representative period as determined by the Secretary, have been engaged

in the production of cattle. 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 six months after the

Secretary determines that continuation of the order is not favored by a

majority voting in the referendum and shall terminate the order in an

orderly manner as soon as practicable after such determination.

(b) After the initial referendum, the Secretary may conduct a referendum

on the request of a representative group comprising 10 per centum or more

of the number of cattle producers to determine whether cattle producers

favor the termination or suspension of the order. The Secretary shall

suspend or terminate collection of assessments under the order within six

months after the Secretary determines that suspension or termination of the

order is favored by a majority of the producers voting in the referendum

who, during a representative period as determined by the Secretary, have

been engaged in the production of cattle and shall terminate or suspend the

order in an orderly manner as soon as practicable after such determination.

(c) The Department shall be reimbursed from assessments collected by

the Board for any expenses incurred by the Department in connection with

conducting any referendum under this section, except for the salaries of

Government employees. Any referendum conducted under this section

shall be conducted on a date established by the Secretary, whereby

producers shall certify that they were engaged in the production of cattle

during the representative period and, on the same day, shall be provided

an opportunity to vote in the referendum. Each referendum shall be

conducted at county extension offices, and there shall be provision for an

absentee mail ballot on request. (7 U.S.C. 2906.)

REFUNDS

SEC. 8. (a) During the period prior to the approval of the continuation

of an order pursuant to the referendum required under section 7(a), subject

to subsection (f), the Board shall)

(1) establish an escrow account to be used for assessment refunds;
589

(2) place funds in such account in accordance with subsection (b);

and

(3) refund assessments to persons in accordance with this section.

(b) Subject to subsection (f), the Board shall place in such account, from

assessments collected under section 7 during the period referred to in

subsection (a), an amount equal to the product obtained by multiplying)

(1) the total amount of assessments collected under section 7 during

such period; by

(2) the greater of)

(A) the average rate of assessment refunds provided to

producers under State beef promotion, research, and consumer

information programs financed through producer assessments, as

determined by the Board; or

(B) 15 percent.

(c) Subject to subsections (d), (e), and (f) and notwithstanding any other

provision of this subtitle, any person shall have the right to demand and

receive from the Board a one-time refund of all assessments collected

under section 7 from such person during the period referred to in

subsection (a) if such person)

(1) is responsible for paying such assessment; and

(2) does not support the program established under this Act.

(d) Such demand shall be made in accordance with regulations, on a

form, and within a time period prescribed by the Board.

(e) Such refund shall be made on submission of proof satisfactory to the

Board that the producer, person, or importer)

(1) paid the assessment for which refund is sought; and

(2) did not collect such assessment from another producer, person,

or importer.

(f)(1) If the amount in the escrow account required to be established by

subsection (a) is not sufficient to refund the total amount of assessments

demanded by all eligible persons under this section and the continuation

of an order is approved pursuant to the referendum required under section

10(a), the Board shall)

(A) continue to place in such account, from assessments collected

under section 5, the amount required under subsection (b), until such

time as the Board is able to comply with subparagraph (B); and

(B) provide to all eligible persons the total amount of assessments

demanded by all eligible producers.

(2) If the amount in the escrow account required to be established by

subsection (a) is not sufficient to refund the total amount of assessments

demanded by all eligible persons under this section and the continuation

of an order is not approved pursuant to the referendum required under

section 7(a), the Board shall prorate the amount of such refunds among all

eligible persons who demand such refund. (7 U.S.C. 2907.)
590

ENFORCEMENT

SEC. 9. (a) If the Secretary believes that the administration and

enforcement of this Act or an order would be adequately served by such

procedure, following an opportunity for an administrative hearing on the

record, the Secretary may)

(1) issue an order to restrain or prevent a person from violating an

order; and

(2) assess a civil penalty of not more than $5,000 for violation of

such order.

(b) The district courts of the United States are vested with jurisdiction

specifically to enforce, and to prevent and restrain a person from violating,

an order or regulation made or issued under this Act.

(c) A civil action authorized to be brought under this section shall be

referred to the Attorney General for appropriate action. (7 U.S.C. 2908.)

INVESTIGATIONS; POWER TO SUBPOENA AND TAKE OATHS

AND AFFIRMATIONS; AID OF COURTS

SEC. 10. The Secretary may make such investigations as the Secretary

deems necessary for the effective administration of this Act or to

determine whether any person subject to this Act has engaged or is about

to engage in any act that constitutes or will constitute a violation of this

Act, the order, or any rule or regulation issued under this Act. For the

purpose of such investigation, the Secretary may administer oaths and

affirmations, subpoena witnesses, compel their attendance, take evidence,

and require the production of any records that are relevant to the inquiry.

The attendance of witnesses and the production of records may be

required from any place in the United States. In case of contumacy by, or

refusal to obey a subpoena 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 requiring the attendance and testimony of the

person and the production of records. The court may issue an order

requiring such person to appear before the Secretary to produce records

or to give testimony regarding the matter under investigation. Any failure

to obey such order of the court may be punished by such court as a

contempt thereof. Process in any such case may be served in the judicial

district in which such person is an inhabitant or wherever such person may

be found. (7 U.S.C. 2909.)

ADMINISTRATIVE PROVISIONS
 Sections 13 to 20 (7 U.S.C. 2912-2918) were omitted in the general revision of this Act 2

by Pub. L. 99-198.

591

SEC. 11. (a) Nothing in this Act may be construed to preempt or

supersede any other program relating to beef promotion organized and

operated under the laws of the United States or any State.

(b) The provisions of this Act applicable to the order shall be applicable

to amendments to the order. (7 U.S.C. 2910.)

AUTHORIZATION OF APPROPRIATIONS

SEC. 12. There are authorized to be appropriated such sums as may be

necessary to carry out this Act. Sums appropriated to carry out this Act

shall not be available for payment of the expenses or expenditures of the

Board or the Committee in administering any provisions of the order

issued under section 4(b) of this Act. (7 U.S.C. 2911.)

SEC. 13 to 20. Omitted.2