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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1449 Introduced in Senate (IS)]

  1st Session
                                S. 1449

 To make agricultural promotion boards and councils more responsive to 
 producers whose mandatory assessments support the activities of such 
boards and councils, to improve the representation and participation of 
such producers on such boards and councils, to ensure the independence 
of such boards and councils, to ensure the appropriate use of promotion 
   funds, to prevent legislatively authorized promotion and research 
   boards from using mandatory assessments to directly or indirectly 
 influence legislation or governmental action or policy, and for other 
                               purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                            December 5, 1995

 Mr. Feingold introduced the following bill; which was read twice and 
   referred to the Committee on Agriculture, Nutrition, and Forestry

_______________________________________________________________________

                                 A BILL

 
 To make agricultural promotion boards and councils more responsive to 
 producers whose mandatory assessments support the activities of such 
boards and councils, to improve the representation and participation of 
such producers on such boards and councils, to ensure the independence 
of such boards and councils, to ensure the appropriate use of promotion 
   funds, to prevent legislatively authorized promotion and research 
   boards from using mandatory assessments to directly or indirectly 
 influence legislation or governmental action or policy, and for other 
                               purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Agricultural Promotion 
Accountability Act of 1995''.

SEC. 2. PURPOSE.

    The purpose of this Act is to make agricultural promotion boards 
and councils more responsive to producers whose mandatory assessments 
support the activities of such boards and councils, to improve the 
representation and participation of such producers on such boards and 
councils, to ensure the independence of such boards and councils, to 
ensure the appropriate use of promotion funds, and to prevent 
legislatively authorized agricultural promotion and research boards 
from using mandatory assessments to directly or indirectly influence 
legislation or governmental action or policy.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Influencing legislation or governmental action or 
        policy.--The term ``influencing legislation or governmental 
        action or policy'' includes--
                    (A) establishing, administering, contributing to, 
                or paying the expenses of a political party campaign, 
                political action committee, or other organization 
                established for the purpose of influencing the outcome 
                of an election;
                    (B) attempting to influence--
                            (i) the outcome of any Federal, State or 
                        local election, referendum, initiative, or 
                        similar procedure through a cash contribution, 
                        in-kind contribution, endorsement, publicity or 
                        public relations activity or similar activity;
                            (ii) the introduction, modification, or 
                        enactment of any Federal or State legislation 
                        or signature or veto of any enrolled Federal or 
                        State legislation, including through--
                                    (I) communication with any member 
                                or employee of a legislative body or 
                                agency or with any governmental 
                                official or employee who may 
                                participate in the formulation of the 
                                legislation, including engaging State 
                                or local officials in similar activity 
                                (not including a communication to an 
                                appropriate government official in 
                                response to a written request by the 
                                official for factual, scientific, or 
                                technical information relating to the 
                                conduct, implementation, or results of 
                                promotion, research, consumer 
                                information and education, industry 
                                information, or producer information 
                                activities under a promotion program);
                                    (II) planning, preparing, funding, 
                                or distributing any publicity or 
                                propaganda to affect the opinion of the 
                                general public or a segment of the 
                                public in connection with a pending 
                                legislative matter; or
                                    (III) urging members of the general 
                                public or any segment of the general 
                                public to contribute to, or participate 
                                in, any mass demonstration, march, 
                                rally, fund-raising drive, lobbying 
                                campaign, letter-writing campaign, or 
                                telephone campaign in connection with a 
                                pending legislative matter;
                    (C) carrying out a legislative liaison activity, 
                including attendance at a legislative session or 
                committee hearing to gather information regarding 
                legislation or to analyze the effect of legislation, if 
                the activity is carried on in support of, or in knowing 
                preparation for, an effort to influence legislation or 
                government action or policy;
                    (D) carrying out an opinion survey of the general 
                public or a segment of the public, general research, or 
                information gathering, if carried out in support of, or 
                in knowing preparation for, an effort to influence 
                legislation or government action or policy; or
                    (E) attempting to influence any agency action or 
                agency proceeding, as the terms are defined in section 
                551 of title 5, United States Code, through--
                            (i) communication with any government 
                        official or employee who may participate in the 
                        action or proceeding (not including a 
                        communication to an appropriate government 
                        official in response to a written request by 
                        the official for factual, scientific, or 
                        technical information relating to the conduct, 
                        implementation, or results of promotion, 
                        research, consumer information or education, or 
                        industry information of producer information 
                        activities under a promotion program);
                            (ii) planning, preparing, funding, or 
                        distributing any publicity or propaganda to 
                        affect the opinions of the general public or 
                        any segment of the general public in connection 
                        with the action or proceeding; or
                            (iii) urging members of the general public 
                        or any segment of the general public to 
                        contribute to, or participate in, any mass 
                        demonstration, march, rally, fundraising drive, 
                        lobbying campaign, letter-writing campaign, or 
                        telephone campaign in connection with the 
                        action or proceeding.
            (2) Promotion program.--The term ``promotion program'' 
        means--
                    (A) the cotton research and promotion program 
                established under the Cotton Research and Promotion Act 
                (7 U.S.C. 2101 et seq.);
                    (B) the potato research, development, advertising, 
                and promotion program established under the Potato 
                Research and Promotion Act (7 U.S.C. 2611 et seq.);
                    (C) the egg research, consumer and producer 
                education, and promotion program established under the 
                Egg Research and Consumer Information Act (7 U.S.C. 
                2701 et seq.);
                    (D) the beef promotion and research program 
                established under the Beef Research and Information Act 
                (7 U.S.C. 2901 et seq.);
                    (E) the wheat research and nutrition education 
                program established under the Wheat and Wheat Foods 
                Research and Nutrition Education Act (7 U.S.C. 3401 et 
                seq.);
                    (F) the dairy promotion program established under 
                the Dairy Production Stabilization Act of 1983 (7 
                U.S.C. 4501 et seq.);
                    (G) the honey research, promotion, and consumer 
                education program established under the Honey Research, 
                Promotion, and Consumer Information Act (7 U.S.C. 4601 
                et seq.);
                    (H) the pork promotion, research, and consumer 
                information program established under the Pork 
                Promotion, Research, and Consumer Information Act (7 
                U.S.C. 4801 et seq.);
                    (I) the watermelon research, development, 
                advertising, and promotion program established under 
                the Watermelon Research and Promotion Act (7 U.S.C. 
                4901 et seq.);
                    (J) the pecan promotion, research, industry 
                information, and consumer information program 
                established under the Pecan Promotion and Research Act 
                of 1990 (7 U.S.C. 6001 et seq.);
                    (K) the mushroom promotion, research, and consumer 
                and industry information program established under the 
                Mushroom Promotion, Research, and Consumer Information 
                Act of 1990 (7 U.S.C. 6101 et seq.);
                    (L) the lime research, promotion, and consumer 
                information program established under the Lime 
                Research, Promotion, and Consumer Information Act of 
                1990 (7 U.S.C. 6201 et seq.);
                    (M) the soybean promotion, research, consumer 
                information, and industry information program 
                established under the Soybean Promotion, Research, and 
                Consumer Information Act (7 U.S.C. 6301 et seq.);
                    (N) the fluid milk advertising and promotion 
                program established under the Fluid Milk Promotion Act 
                of 1990 (7 U.S.C. 6401 et seq.);
                    (O) the flowers and greens promotion, consumer 
                information, and related research program established 
                under the Fresh Cut Flowers and Fresh Cut Greens 
                Promotion and Information Act of 1993 (7 U.S.C. 6801 et 
                seq.);
                    (P) the sheep promotion, research, consumer 
                information, education, and industry information 
                program established under the Sheep Promotion, 
                Research, and Information Act of 1994 (7 U.S.C. 7101 et 
                seq.); and
                    (Q) any other coordinated program of promotion, 
                research, industry information, and consumer 
                information that is funded by mandatory assessments on 
                producers and designed to maintain and expand markets 
                and uses for an agricultural commodity, as determined 
                by the Secretary.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.

SEC. 4. INFLUENCING LEGISLATION OR GOVERNMENTAL ACTION OR POLICY.

    (a) In General.--A board or council established by a promotion 
program may not use any funds collected by the board or council for the 
purpose of directly or indirectly influencing legislation or 
governmental action or policy, except for the development and 
recommendation of amendments to the promotion program to the Secretary.
    (b) Conforming Amendments.--
            (1) Cotton.--Section 7(h) of the Cotton Research and 
        Promotion Act (7 U.S.C. 2106(h)) is amended by striking 
        ``influencing governmental policy or action'' and inserting 
        ``directly or indirectly influencing legislation or 
        governmental action or policy (as defined in section 3(1) of 
        the Agricultural Promotion Accountability Act of 1995)''.
            (2) Potatoes.--Section 308(f)(3) of the Potato Research and 
        Promotion Act (7 U.S.C. 2617(f)(3)) is amended by striking 
        ``influencing governmental policy or action'' and inserting 
        ``directly or indirectly influencing legislation or 
        governmental action or policy (as defined in section 3(1) of 
        the Agricultural Promotion Accountability Act of 1995)''.
            (3) Eggs.--Section 8(h) of the Egg Research and Consumer 
        Information Act (7 U.S.C. 2707) is amended by striking 
        ``influencing governmental policy or action'' and inserting 
        ``directly or indirectly influencing legislation or 
        governmental action or policy (as defined in section 3(1) of 
        the Agricultural Promotion Accountability Act of 1995)''.
            (4) Beef.--Section 5(10) of the Beef Research and 
        Information Act (7 U.S.C. 2904(10)) is amended--
                    (A) by striking ``influencing governmental action 
                or policy'' and inserting ``directly or indirectly 
                influencing legislation or governmental action or 
                policy (as defined in section 3(1) of the Agricultural 
                Promotion Accountability Act of 1995)''; and
                    (B) by inserting ``to the Secretary'' before the 
                period at the end.
            (5) Wheat.--Section 1706(i) of the Wheat and Wheat Foods 
        Research and Nutrition Education Act (7 U.S.C. 3405(i)) is 
        amended by striking ``influencing governmental policy or 
        action'' and inserting ``directly or indirectly influencing 
        legislation or governmental action or policy (as defined in 
        section 3(1) of the Agricultural Promotion Accountability Act 
        of 1995)''.
            (6) Dairy.--Section 113(j) of the Dairy Production 
        Stabilization Act of 1983 (7 U.S.C. 4504(j)) is amended by 
        striking ``influencing governmental policy or action'' and 
        inserting ``directly or indirectly influencing legislation or 
        governmental action or policy (as defined in section 3(1) of 
        the Agricultural Promotion Accountability Act of 1995),''.
            (7) Honey.--Section 7(h) of the Honey Research, Promotion, 
        and Consumer Information Act (7 U.S.C. 4606(h)) is amended by 
        striking ``influencing governmental policy or action'' and 
        inserting ``directly or indirectly influencing legislation or 
        governmental action or policy (as defined in section 3(1) of 
        the Agricultural Promotion Accountability Act of 1995)''.
            (8) Pork.--Section 1620(e) of the Pork Promotion, Research, 
        and Consumer Information Act (7 U.S.C. 4809(e)) is amended by 
        striking ``influencing legislation'' and all that follows 
        through the period at the end and inserting the following: 
        ``directly or indirectly influencing legislation or 
        governmental action or policy (as defined in section 3(1) of 
        the Agricultural Promotion Accountability Act of 1995), except 
        to recommend amendments to the order to the Secretary.''.
            (9) Watermelons.--Section 1647(g)(3) of the Watermelon 
        Research and Promotion Act (7 U.S.C. 4906(g)(3)) is amended by 
        striking ``influencing governmental policy or action'' and 
        inserting ``directly or indirectly influencing legislation or 
        governmental action or policy (as defined in section 3(1) of 
        the Agricultural Promotion Accountability Act of 1995)''.
            (10) Pecans.--Section 1910(g)(1) of the Pecan Promotion and 
        Research Act of 1990 (7 U.S.C. 6005(g)(1)) is amended--
                    (A) in the matter preceding paragraph (1)--
                            (i) by striking ``to,'' and inserting ``for 
                        the purpose of,''; and
                            (ii) by striking ``to--'' and inserting 
                        ``for the purpose of--'';
                    (B) in paragraph (1), by striking ``influence 
                legislation or governmental action'' and inserting 
                ``directly or indirectly influencing legislation or 
                governmental action or policy (as defined in section 
                3(1) of the Agricultural Promotion Accountability Act 
                of 1995)'';
                    (C) in paragraph (2), by striking ``engage'' and 
                inserting ``engaging''; and
                    (D) in paragraph (3), by striking ``engage'' and 
                inserting ``engaging''.
            (11) Mushrooms.--Section 1925(h) of the Mushroom Promotion, 
        Research, and Consumer Information Act of 1990 (7 U.S.C. 
        6104(h)) is amended by striking ``influencing legislation or 
        governmental action or policy'' and inserting ``directly or 
        indirectly influencing legislation or governmental action or 
        policy (as defined in section 3(1) of the Agricultural 
        Promotion Accountability Act of 1995)''.
            (12) Limes.--Section 1955(g) of the Lime Research, 
        Promotion, and Consumer Information Act of 1990 (7 U.S.C. 
        6204(g)) is amended by striking ``influencing legislation or 
        governmental policy or action'' and inserting ``directly or 
        indirectly influencing legislation or governmental action or 
        policy (as defined in section 3(1) of the Agricultural 
        Promotion Accountability Act of 1995)''.
            (13) Soybeans.--Section 1969(p) of the Soybean Promotion, 
        Research, and Consumer Information Act (7 U.S.C. 6304(p) is 
        amended--
                    (A) in paragraph (1), by striking ``influencing 
                legislation or governmental action or policy'' and 
                inserting ``directly or indirectly influencing 
                legislation or governmental action or policy (as 
                defined in section 3(1) of the Agricultural Promotion 
                Accountability Act of 1995)''; and
                    (B) in paragraph (2)--
                            (i) in subparagraph (A), by inserting ``to 
                        the Secretary'' before the semicolon; and
                            (ii) in subparagraph (B), by inserting ``, 
                        in response to a request made by the 
                        officials,'' after ``officials''.
            (14) Milk.--Section 1999H(j)(1) of the Fluid Milk Promotion 
        Act of 1990 (7 U.S.C. 6407(j)(1)) is amended by striking 
        ``influencing legislation or governmental action or policy'' 
        and inserting ``directly or indirectly influencing legislation 
        or governmental action or policy (as defined in section 3(1) of 
        the Agricultural Promotion Accountability Act of 1995)''.
            (15) Flowers and greens.--Section 5(i) of the Fresh Cut 
        Flowers and Fresh Cut Greens Promotion and Information Act of 
        1993 (7 U.S.C. 6804(i)) is amended by striking ``influencing 
        legislation or government action or policy'' and inserting 
        ``directly or indirectly influencing legislation or 
        governmental action or policy (as defined in section 3(1) of 
        the Agricultural Promotion Accountability Act of 1995)''.
            (16) Sheep.--Section 5(l)(1) of the Sheep Promotion, 
        Research, and Information Act of 1994 (7 U.S.C. 7104(l)(1)) is 
        amended by striking ``influencing legislation or government 
        action or policy'' and inserting ``directly or indirectly 
        influencing legislation or governmental action or policy (as 
        defined in section 3(1) of the Agricultural Promotion 
        Accountability Act of 1995)''.

SEC. 5. PROMOTING THE IMAGE OF AN INDUSTRY PROHIBITED.

    (a) In General.--A board or council established by a promotion 
program may not use any funds collected by the board or council for the 
purpose of enhancing the image of an industry, except that the board or 
council may promote the image of a product with the express intent of 
stimulating demand for and sales of an agricultural product in the 
marketplace.
    (b) Conforming Amendments.--
            (1) Beef.--Section 3(9) of the Beef Research and 
        Information Act (7 U.S.C. 2902(9)) is amended by striking ``, 
        increased efficiency'' and all that follows through 
        ``industry'' and inserting ``and increased efficiency''.
            (2) Pecans.--Section 1907(12) of the Pecan Promotion and 
        Research Act of 1990 (7 U.S.C. 6002(12)) is amended by striking 
        ``, increased efficiency'' and all that follows through 
        ``industry'' and inserting ``and increased efficiency''.
            (3) Mushrooms.--Section 1923(7) of the Mushroom Promotion, 
        Research, and Consumer Information Act of 1990 (7 U.S.C. 
        6103(7)) is amended by striking ``, increased efficiency'' and 
        all that follows through ``industry'' and inserting ``and 
        increased efficiency''.
            (4) Soybeans.--Section 1967(7) of the Soybean Promotion, 
        Research, and Consumer Information Act (7 U.S.C. 6302(7)) is 
        amended by striking ``, and activities'' and all that follows 
        through ``industry''.

SEC. 6. LIMITATIONS ON CONTRACTING.

    (a) Permitted Contracts or Agreements.--Notwithstanding any other 
provision of law, a board or council established by a promotion program 
shall not be limited to contracting with, or entering into an agreement 
with, an established national nonprofit industry-governed organization.
    (b) Competitive Bidding.--It is the policy of Congress that boards 
and councils should, to the extent practicable, use competitive bidding 
in the awarding of contracts and grants for activities authorized under 
a promotion program.
    (c) Independence of Boards and Councils.--
            (1) Applications and recommendations not binding.--
        Notwithstanding any other provision of law, a board or council 
        established by a promotion program shall not be bound by a 
        proposed application for a board or council contract or a 
        recommendation or advice of a potential contractor or a 
        national nonprofit industry-governed organization on the use of 
        board or council receipts.
            (2) Interlocking boards or membership.--Notwithstanding any 
        other provision of law, no person shall be eligible to be a 
        member of any board or council established by a promotion 
        program (including operating and nominating committees) if the 
        person serves in any decision making capacity, such as that of 
        a member of the board of directors, executive committee, or 
        other committee, for an entity that enters into a contract or 
        other agreement with the board or council.
            (3) Requirements for contracting.--A contractor or grantee 
        of a board or council may not use funds collected through 
        mandatory assessments under a promotion program to fund any 
        staff (including expenses or other activities of the staff) 
        who, in part, engage in 1 or more activities to influence 
legislation or governmental action or policy.
    (d) Producer Approval of Relationships With Boards or Councils.--
            (1) In general.--Except as provided in paragraph (2) and 
        notwithstanding any other provision of law, the entering into 
        of a permanent cooperative arrangement or the establishment of 
        a joint committee (including an arrangement that is advisory in 
        nature) by a board or council established by a promotion 
        program with a national nonprofit industry-governed 
        organization shall require the prior approval of at least \2/3\ 
        of the eligible producers under the promotion program.
            (2) Exception.--Paragraph (1) shall not apply to a 
        cooperative arrangement or joint committee--
                    (A) that was established prior to January 1, 1995; 
                or
                    (B) that includes representatives or participation 
                from all producer-, processor-, or handler-governed 
                national nonprofit organizations (including general 
                farm organizations) that represent any but an 
                insignificant number of producers, processors, or 
                handlers paying assessments under the promotion program 
                to the board or council, as determined by the 
                Secretary.
            (3) Permanent cooperative arrangement.--In this subsection, 
        the term ``permanent cooperative arrangement'' means a formal 
        or informal, written or unwritten agreement or understanding 
        establishing a relationship, a liaison, a sole source contract, 
        or an operational mechanism under which a board or council 
        shares staff, facilities, or other resources or carries out 
        coordinated activities with any entity on a more or less 
        permanent and exclusive basis.
    (e) Fungibility of Board or Council Funds.--
            (1) In general.--The Inspector General of the Department of 
        Agriculture shall conduct an annual review of contractual 
        arrangements between each board or council established by a 
        promotion program and any entity or association that engages in 
        activities to influence legislation or governmental action or 
        policy and receives a significant amount of funding from the 
        board or council as determined by the Secretary.
            (2) Scope of review.--A review under paragraph (1) shall 
        examine whether any funds collected by the board or council are 
        used to directly or indirectly fund or subsidize an entity or 
        association that engages in influencing legislation or 
        governmental action or policy.
            (3) Report.--The Secretary shall submit a report on the 
        findings of any review under this subsection and make 
        recommendations for any actions that should be taken as a 
        result of the findings to the Committee on Agriculture of the 
        House of Representatives and the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate.

SEC. 7. PERIODIC REFERENDA.

    (a) In General.--Notwithstanding any other provision of law, not 
less than 4 nor more than 6 years after the date of enactment of this 
Act or the date on which the Secretary determines the results of the 
most recent referendum for a promotion program, whichever is earlier, 
and not less than once every 5 years thereafter, the Secretary shall 
conduct a referendum to determine whether to approve or terminate the 
order under the promotion program and whether refunds should be made 
under the order.
    (b) Procedure.--The referendum under subsection (a) shall be 
conducted using the same eligibility and other procedures as the 
referendum used to approve the original order under the promotion 
program, except that, notwithstanding any other provision of law, no 
greater than a simple majority of eligible producers shall be required 
to approve the making of refunds to producers.
    (c) Termination.--
            (1) In general.--If the percentage of persons voting to 
        approve the order does not equal or exceed the percentage of 
        persons necessary to approve the continuation of the original 
        order under the promotion program, the Secretary shall 
        terminate the order.
            (2) Time of termination.--The Secretary shall terminate the 
        order at the end of the marketing year during which the 
        referendum is conducted.
    (d) Refunds.--If the making of refunds is approved in a referendum 
under subsection (a), the Secretary shall establish a procedure for 
making the refunds not later than 180 days after the date of the 
referendum.
    (e) Cooperative Association.--Notwithstanding subsection (b), a 
cooperative association may not vote on behalf of the members of the 
association in a referendum conducted under this section.
    (f) Inactive Promotion Programs.--The Secretary shall not conduct a 
referendum of a promotion program under this section if the Secretary 
determines that the promotion program is not active.
                                 <all>
S 1449 IS----2
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