Opportunities for Fairness in Farming Act of 2019

To prohibit certain practices relating to certain commodity promotion programs, to require greater transparency by those programs, and for other purposes. 1. Short title This Act may be cited as the Opportunities for Fairness in Farming Act of 2019 2. Findings Congress finds that— (1) the generic programs to promote and provide research and information for an agricultural commodity (commonly known as checkoff programs (2) although the laws establishing checkoff programs broadly prohibit the use of funds in any manner for the purpose of influencing legislation or government action, checkoff programs have repeatedly been shown to use funds to influence policy directly or by partnering with organizations that lobby; (3) the unlawful use of checkoff programs funds benefits some agricultural producers while harming many others; (4) to more effectively prevent Boards from using funds for unlawful purposes, strict separation of engagement between the Boards and policy entities is necessary; (5) conflicts of interest in the checkoff programs allow special interests to use checkoff program funds for the benefit of some assessed agricultural producers at the expense of many others; (6) prohibiting conflicts of interest in checkoff programs is necessary to ensure the proper and lawful operation of the checkoff programs; (7) checkoff programs are designed to promote agricultural commodities, not to damage other types of agricultural commodities through anticompetitive conduct or otherwise; (8) prohibiting anticompetitive and similar conduct is necessary to ensure proper and lawful operation of checkoff programs; (9) lack of transparency in checkoff programs enables abuses to occur and conceals abuses from being discovered; and (10) requiring transparency in the expenditure of checkoff program funds is necessary to prevent and uncover abuses in checkoff programs. 3. Definitions In this Act: (1) Board The term Board (2) Checkoff program The term checkoff program (A) The Cotton Research and Promotion Act ( 7 U.S.C. 2101 (B) The Potato Research and Promotion Act ( 7 U.S.C. 2611 (C) The Egg Research and Consumer Information Act ( 7 U.S.C. 2701 (D) The Beef Research and Information Act ( 7 U.S.C. 2901 (E) The Wheat and Wheat Foods Research and Nutrition Education Act ( 7 U.S.C. 3401 (F) The Floral Research and Consumer Information Act ( 7 U.S.C. 4301 (G) Subtitle B of the Dairy Production Stabilization Act of 1983 ( 7 U.S.C. 4501 (H) The Honey Research, Promotion, and Consumer Information Act ( 7 U.S.C. 4601 (I) The Pork Promotion, Research, and Consumer Information Act of 1985 ( 7 U.S.C. 4801 (J) The Watermelon Research and Promotion Act ( 7 U.S.C. 4901 (K) The Pecan Promotion and Research Act of 1990 ( 7 U.S.C. 6001 (L) The Mushroom Promotion, Research, and Consumer Information Act of 1990 ( 7 U.S.C. 6101 (M) The Lime Research, Promotion, and Consumer Information Act of 1990 ( 7 U.S.C. 6201 (N) The Soybean Promotion, Research, and Consumer Information Act ( 7 U.S.C. 6301 (O) The Fluid Milk Promotion Act of 1990 ( 7 U.S.C. 6401 (P) The Fresh Cut Flowers and Fresh Cut Greens Promotion and Information Act of 1993 ( 7 U.S.C. 6801 (Q) The Sheep Promotion, Research, and Information Act of 1994 ( 7 U.S.C. 7101 (R) Section 501 of the Federal Agriculture Improvement and Reform Act of 1996 ( 7 U.S.C. 7401 (S) The Commodity Promotion, Research, and Information Act of 1996 ( 7 U.S.C. 7411 (T) The Canola and Rapeseed Research, Promotion, and Consumer Information Act ( 7 U.S.C. 7441 (U) The National Kiwifruit Research, Promotion, and Consumer Information Act ( 7 U.S.C. 7461 (V) The Popcorn Promotion, Research, and Consumer Information Act ( 7 U.S.C. 7481 (W) The Hass Avocado Promotion, Research, and Information Act of 2000 ( 7 U.S.C. 7801 (3) Conflict of interest The term conflict of interest (4) Secretary The term Secretary 4. Requirements of checkoff programs (a) Prohibitions (1) In general Except as provided in paragraph (4), a Board shall not enter into any contract or agreement to carry out checkoff program activities with a party that engages in activities for the purpose of influencing any government policy or action that relates to agriculture. (2) Conflict of interest A Board shall not engage in, and shall prohibit the employees and agents of the Board, acting in their official capacity, from engaging in, any act that may involve a conflict of interest. (3) Other prohibitions A Board shall not engage in, and shall prohibit the employees and agents of the Board, acting in their official capacity, from engaging in— (A) any anticompetitive activity; (B) any unfair or deceptive act or practice; or (C) any act that may be disparaging to, or in any way negatively portray, another agricultural commodity or product. (4) Exception for certain contracts with institutions of higher education Paragraph (1) shall not apply to a contract or agreement entered into between a Board and an institution of higher education for the purpose of research, extension, and education. (b) Authority To enter into contracts Notwithstanding any other provision of law, on approval of the Secretary, a Board may enter directly into contracts and agreements to carry out generic promotion, research, or other activities authorized by law. (c) Production of records (1) In general Each contract or agreement of a checkoff program shall provide that the entity that enters into the contract or agreement shall produce to the Board accurate records that account for all funds received under the contract or agreement, including any goods or services provided or costs incurred in connection with the contract or agreement. (2) Maintenance of records A Board shall maintain any records received under paragraph (1). (d) Publication of budgets and disbursements (1) In general The Board shall publish and make available for public inspection all budgets and disbursements of funds entrusted to the Board that are approved by the Secretary, immediately on approval by the Secretary. (2) Required disclosures In carrying out paragraph (1), the Board shall disclose— (A) the amount of the disbursement; (B) the purpose of the disbursement, including the activities to be funded by the disbursement; (C) the identity of the recipient of the disbursement; and (D) the identity of any other parties that may receive the disbursed funds, including any contracts or subcontractors of the recipient of the disbursement. (e) Audits (1) Periodic audits by Inspector General of USDA (A) In general Not later than 2 years after the date of enactment of this Act, and not less frequently than every 5 years thereafter, the Inspector General of the Department of Agriculture shall conduct an audit to determine the compliance of each checkoff program with this section during the period of time covered by the audit. (B) Review of records An audit conducted under subparagraph (A) shall include a review of any records produced to the Board under subsection (c)(1). (C) Submission of reports On completion of each audit under subparagraph (A), the Inspector General of the Department of Agriculture shall— (i) prepare a report describing the audit; and (ii) submit the report described in clause (i) to— (I) the appropriate committees of Congress, including the Subcommittee on Antitrust, Competition Policy and Consumer Rights of the Committee on the Judiciary of the Senate; and (II) the Comptroller General of the United States. (2) Audit by Comptroller General (A) In general Not earlier than 3 years, and not later than 5 years, after the date of enactment of this Act, the Comptroller General of the United States shall— (i) conduct an audit to assess— (I) the status of actions taken for each checkoff program to ensure compliance with this section; and (II) the extent to which actions described in subclause (I) have improved the integrity of a checkoff program; and (ii) prepare a report describing the audit conducted under clause (i), including any recommendations for— (I) strengthening the effect of actions described in clause (i)(I); and (II) improving Federal legislation relating to checkoff programs. (B) Consideration of Inspector General reports The Comptroller General of the United States shall consider reports described in paragraph (1)(C) in preparing any recommendations in the report under subparagraph (A)(ii). 5. Severability If any provision of this Act or the application of such provision to any person or circumstance is held to be unconstitutional, the remainder of this Act, and the application of the provision to any other person or circumstance, shall not be affected.

Summary: Opportunities for Fairness in Farming Act of 2019 This bill establishes restrictions and requirements for checkoff programs, which are programs overseen by the Department of Agriculture (USDA) to promote and provide research and information for a particular agricultural commodity without reference to specific producers or brands. The bill prohibits boards established to carry out a checkoff program or a USDA order issued under a checkoff program from entering into a contract or agreement to carry out program activities with a party that engages in activities to influence any government policy or action that relates to agriculture. A board or its employees or agents acting in their official capacity may not engage in any act that may involve a conflict of interest; anticompetitive activity; unfair or deceptive act or practice; or act that may be disparaging to, or in any way negatively portray, another agricultural commodity or product. Upon approval of USDA, a board may enter directly into contracts and agreements to carry out generic promotion, research, or other activities authorized by law if the agreement or contract requires records accounting for the funds received to be submitted to the board. The board must meet specified requirements regarding the publication of budgets and disbursements of funds. The USDA Inspector General and the Government Accountability Office must conduct specified audits regarding checkoff programs.