I
104TH CONGRESS
1ST SESSION
H. R. 2509
To finance and implement a program of research, promotion, market develop-
ment, 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 infor-
mation to enhance demand for and increase the profit-
ability of canola and rapeseed products in the United
States, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Canola and Rapeseed Research, Promotion, and
Consumer Information Act’’.
(b) TABLE OF CONTENTS.—The table of contents of
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.
SEC. 2. FINDINGS AND DECLARATION OF POLICY.
(a) FINDINGS.—Congress finds that—
(1) canola and rapeseed products are an impor-
tant and nutritious part of the human diet;
(2) the production of canola and rapeseed prod-
ucts plays a significant role in the economy of the
United States in that canola and rapeseed products
are produced by thousands of canola and rapeseed
producers, processed by numerous processing enti-
ties, and canola and rapeseed products produced in
the United States are consumed by people through-
out the United States and foreign countries;
(3) canola, rapeseed, and canola and rapeseed
products should be readily available and marketed
efficiently to ensure that consumers have an ade-
quate supply of canola and rapeseed products at a
reasonable price;
(4) the maintenance and expansion of existing
markets and development of new markets for canola,
rapeseed, and canola and rapeseed products are vital
to the welfare of canola and rapeseed producers and
processors and those persons concerned with market-
ing canola, rapeseed, and canola and rapeseed prod-
ucts, as well as to the general economy of the United
States, and are necessary to ensure the ready avail-
ability and efficient marketing of canola, rapeseed,
and canola and rapeseed products;
(5) there exist established State and national
organizations conducting canola and rapeseed re-
search, promotion, and consumer education pro-
grams that are valuable to the efforts of promoting
the consumption of canola, rapeseed, and canola and
rapeseed products;
(6) the cooperative development, financing, and
implementation of a coordinated national program of
canola and rapeseed research, promotion, consumer
information, and industry information is necessary
to maintain and expand existing markets and de-
velop new markets for canola, rapeseed, and canola
and rapeseed products; and
(7) canola, rapeseed, and canola and rapeseed
products move in interstate and foreign commerce,
and canola, rapeseed, and canola and rapeseed prod-
ucts that do not move in interstate or foreign com-
merce directly burden or affect interstate commerce
in canola, rapeseed, and canola and rapeseed prod-
ucts.
(b) POLICY.—It is the policy of this Act to establish
an orderly procedure for developing, financing through as-
sessments on domestically-produced canola and rapeseed,
and implementing a program of research, promotion,
consumer information, and industry information designed
to strengthen the position in the marketplace of the canola
and rapeseed industry, to maintain and expand existing
domestic and foreign markets and uses for canola,
rapeseed, and canola and rapeseed products, and to de-
velop new markets and uses for canola, rapeseed, and
canola and rapeseed products.
(c) CONSTRUCTION.—Nothing in this Act provides
for the control of production or otherwise limits the right
of individual producers to produce canola, rapeseed, or
canola or rapeseed products.
SEC. 3. DEFINITIONS.
In this Act:
(1) BOARD.—The term ‘‘Board’’ means the Na-
tional Canola and Rapeseed Board established under
section 5(b).
(2) CANOLA
OR
RAPESEED
PRODUCTS.—The
term ‘‘canola or rapeseed products’’ means products
produced, in whole or in part, from canola or
rapeseed.
(3) COMMERCE.—The term ‘‘commerce’’ in-
cludes interstate, foreign, and intrastate commerce.
(4) CONFLICT OF INTEREST.—The term ‘‘con-
flict of interest’’ means a situation in which a mem-
ber has a direct or indirect financial interest in a
corporation, partnership, sole proprietorship, joint
venture, or other business entity dealing directly or
indirectly with the Board.
(5) 
CONSUMER
INFORMATION.—The 
term
‘‘consumer information’’ means information that will
assist consumers and other persons in making eval-
uations and decisions regarding the purchase, prepa-
ration, and use of canola or rapeseed products.
(6) DEPARTMENT.—The term ‘‘Department’’
means the Department of Agriculture.
(7) FIRST PURCHASER.—The term ‘‘first pur-
chaser’’ means—
(A) except as provided in subparagraph
(B), a person buying or otherwise acquiring
canola, rapeseed, or canola or rapeseed prod-
ucts produced by a producer; or
(B) the Commodity Credit Corporation, in
a case in which canola or rapeseed is forfeited
to the Commodity Credit Corporation as collat-
eral for a loan issued under a price support
loan program administered by the Commodity
Credit Corporation.
(8) INDUSTRY INFORMATION.—The term ‘‘in-
dustry information’’ means information or programs
that will lead to the development of new markets,
new marketing strategies, or increased efficiency for
the canola and rapeseed industry, or an activity to
enhance the image of the canola or rapeseed indus-
try.
(9) INDUSTRY MEMBER.—The term ‘‘industry
member’’ means a member of the canola and
rapeseed industry who represents—
(A) manufacturers of canola or rapeseed
end products; or
(B) persons who commercially buy or sell
canola or rapeseed.
(10) 
MARKETING.—The 
term 
‘‘marketing’’
means the sale or other disposition of canola,
rapeseed, or canola or rapeseed products in a chan-
nel of commerce.
(11) ORDER.—The term ‘‘order’’ means an
order issued under section 4.
(12) PERSON.—The term ‘‘person’’ means an
individual, partnership, corporation, association, co-
operative, or any other legal entity.
(13) PRODUCER.—The term ‘‘producer’’ means
a person engaged in the growing of canola or
rapeseed in the United States who owns, or who
shares the ownership and risk of loss of, the canola
or rapeseed.
(14) 
PROMOTION.—The 
term 
‘‘promotion’’
means an action, including paid advertising, tech-
nical assistance, or trade servicing activity, to en-
hance the image or desirability of canola, rapeseed,
or canola or rapeseed products in domestic and for-
eign markets, or an activity designed to commu-
nicate to consumers, processors, wholesalers, retail-
ers, government officials, or others information re-
lating to the positive attributes of canola, rapeseed,
or canola or rapeseed products or the benefits of use
or distribution of canola, rapeseed, or canola or
rapeseed products.
(15) QUALIFIED STATE CANOLA AND RAPESEED
BOARD.—The term ‘‘qualified State canola and
rapeseed board’’ means a State canola and rapeseed
promotion entity that is authorized and functioning
under State law.
(16) RESEARCH.—The term ‘‘research’’ means
any type of test, study, or analysis to advance the
image, desirability, marketability, production, prod-
uct development, quality, or functional or nutritional
value of canola, rapeseed, or canola or rapeseed
products, including research activity designed to
identify and analyze barriers to export sales of
canola or rapeseed produced in the United States.
(17) 
SECRETARY.—The 
term 
‘‘Secretary’’
means the Secretary of Agriculture.
(18) STATE.—The term ‘‘State’’ means any of
the 50 States, the District of Columbia and the
Commonwealth of Puerto Rico.
(19) UNITED
STATES.—The term ‘‘United
States’’ means collectively the 50 States, the District
of Columbia, and the Commonwealth of Puerto Rico.
SEC. 4. ISSUANCE AND AMENDMENT OF ORDERS.
(a) IN GENERAL.—Effective beginning with the first
marketing year that the Secretary estimates that canola
or rapeseed will be produced in the United States in a
quantity sufficient to effectuate the policy described in sec-
tion 2(b), the Secretary, subject to subsection (b), shall
issue 1 or more orders under this Act applicable to produc-
ers and first purchasers of canola or rapeseed products.
The order shall be national in scope. Not more than 1
order shall be in effect under this Act at any 1 time.
(b) PROCEDURE.—
(1) PROPOSAL OR REQUEST FOR ISSUANCE.—
The Secretary may propose the issuance of an order
under this Act, or an association of canola and
rapeseed producers or any other person that would
be affected by an order issued pursuant to this Act
may request the issuance of, and submit a proposal
for, an order.
(2) NOTICE AND COMMENT CONCERNING PRO-
POSED ORDER.—Not later than 60 days after the re-
ceipt of a request and proposal for an order pursu-
ant to paragraph (1), or whenever the Secretary de-
termines to propose an order, the Secretary shall
publish a proposed order and give due notice and op-
portunity for public comment on the proposed order.
(3) ISSUANCE OF ORDER.—After notice and op-
portunity for public comment are given as provided
in paragraph (2), the Secretary shall issue an order,
taking into consideration the comments received and
including in the order provisions necessary to ensure
that the order is in conformity with the require-
ments of this Act. The order shall be issued and be-
come effective not later than 180 days following
publication of the proposed order.
(c) AMENDMENTS.—The Secretary, from time to
time, may amend an order issued under this section.
SEC. 5. REQUIRED TERMS IN ORDERS.
(a) IN GENERAL.—An order issued under this Act
shall contain the terms and conditions specified in this sec-
tion.
(b) ESTABLISHMENT AND MEMBERSHIP OF THE NA-
TIONAL CANOLA AND RAPESEED BOARD.—
(1) IN GENERAL.—The order shall provide for
the establishment of, and appointment of members
to, a National Canola and Rapeseed Board to ad-
minister the order.
(2) SERVICE
TO
ENTIRE
INDUSTRY.—The
Board shall carry out programs and projects that
will provide maximum benefit to the canola and
rapeseed industry in all parts of the United States
and only promote canola, rapeseed, or canola or
rapeseed products.
(3) BOARD
MEMBERSHIP.—The Board shall
consist of 15 members, including—
(A) 11 members who are producers, in-
cluding—
(i) 1 member from each of 6 geo-
graphic regions comprised of States where
canola or rapeseed is produced, as deter-
mined by the Secretary; and
(ii) 5 members from the geographic
regions referred to in clause (i), allocated
according to the production in each region;
and
(B) 4 members who are industry members,
including at least—
(i) 1 member who represents manu-
facturers of canola or rapeseed end prod-
ucts; and
(ii) 1 member who represents persons
who commercially buy or sell canola or
rapeseed.
(4) LIMITATION ON STATE RESIDENCE.—There
shall be no more than 4 producer members of the
Board from any State.
(5) MODIFYING BOARD MEMBERSHIP.—In ac-
cordance with regulations approved by the Secretary,
at least once each 3 years and not more than once
each 2 years, the Board shall review the geographic
distribution of canola and rapeseed production
throughout the United States and, if warranted, rec-
ommend to the Secretary that the Secretary—
(A) reapportion regions in order to reflect
the geographic distribution of canola and
rapeseed production; and
(B) reapportion the seats on the Board to
reflect the production in each region.
(6) CERTIFICATION OF ORGANIZATIONS.—
(A) IN GENERAL.—The eligibility of any
State organization to represent producers shall
be certified by the Secretary.
(B) CRITERIA.—The Secretary shall certify
any State organization that the Secretary deter-
mines has a history of stability and permanency
and meets at least one of the following criteria:
(i) MAJORITY
REPRESENTATION.—
The organization’s total paid member-
ship—
(I) is comprised of at least a ma-
jority of canola or rapeseed producers;
or
(II) represents at least a major-
ity of the canola or rapeseed produc-
ers in the State.
(ii) SUBSTANTIAL NUMBER OF PRO-
DUCERS REPRESENTED.—The organization
represents a substantial number of produc-
ers that produce a substantial amount of
canola or rapeseed in the State.
(iii) PURPOSE.—The organization is a
general farm or agricultural organization
that has as a stated objective the pro-
motion and development of the United
States canola or rapeseed industries and
the economic welfare of United States
canola or rapeseed producers.
(C) REPORT.—The Secretary shall make a
certification under this paragraph on the basis
of a factual report submitted by the State orga-
nization.
(7) TERMS OF OFFICE.—
(A) IN
GENERAL.—The members of the
Board shall serve for a term of 3 years, except
that the members appointed to the initial Board
shall serve, proportionately, for terms of 1, 2,
and 3 years, as determined by the Secretary.
(B) TERMINATION
OF
TERMS.—Notwith-
standing subparagraph (C), each member shall
continue to serve until a successor is appointed
by the Secretary.
(C) LIMITATION ON TERMS.—No individ-
ual may serve more than 2 consecutive 3-year
terms as a member.
(8) COMPENSATION.—A member of the Board
shall serve without compensation, but shall be reim-
bursed for necessary and reasonable expenses in-
curred in the performance of duties for and ap-
proved by the Board.
(c) POWERS
AND DUTIES
OF
THE BOARD.—The
order shall define the powers and duties of the Board,
which shall include the power and duty—
(1) to administer the order in accordance with
the terms and conditions of the order;
(2) to make regulations to effectuate the terms
and conditions of the order;
(3) to meet, organize, and select from among
members of the Board a chairperson, other officers,
and committees and subcommittees, as the Board
determines appropriate;
(4) to establish working committees of persons
other than Board members;
(5) to employ such persons, other than Board
members, as the Board considers necessary, and to
determine the compensation and define the duties of
the persons;
(6) to prepare and submit for the approval of
the Secretary, when appropriate or necessary, a rec-
ommended rate of assessment under section 6, and
a fiscal period budget of the anticipated expenses in
the administration of the order, including the prob-
able costs of all programs and projects;
(7) to develop programs and projects, subject to
subsection (d);
(8) to enter into contracts or agreements, sub-
ject to subsection (e), to develop and carry out pro-
grams or projects of research, promotion, industry
information, and consumer information;
(9) to carry out research, promotion, industry
information, and consumer information projects, and
to pay the costs of the projects with assessments col-
lected under section 6;
(10) to keep minutes, books, and records that
reflect the actions and transactions of the Board,
and promptly report minutes of each Board meeting
to the Secretary;
(11) to appoint and convene, from time to time,
working committees comprised of producers, indus-
try members, and the public to assist in the develop-
ment of research, promotion, industry information,
and consumer information programs for canola,
rapeseed, and canola and rapeseed products;
(12) to invest, pending disbursement under a
program or project, funds collected through assess-
ments authorized under section 6, or funds earned
from investments, only in—
(A) obligations of the United States or an
agency of the United States;
(B) general obligations of a State or a po-
litical subdivision of a State;
(C) an interest-bearing account or certifi-
cate of deposit of a bank that is a member of
the Federal Reserve System; or
(D) obligations fully guaranteed as to prin-
cipal and interest by the United States;
(13) to receive, investigate, and report to the
Secretary complaints of violations of the order;
(14) to furnish the Secretary with such infor-
mation as the Secretary may request;
(15) to recommend to the Secretary amend-
ments to the order;
(16) to develop and recommend to the Sec-
retary for approval such regulations as may be nec-
essary for the development and execution of pro-
grams or projects, or as may otherwise be necessary,
to carry out the order; and
(17) to provide the Secretary with advance no-
tice of meetings.
(d) PROGRAMS AND BUDGETS.—
(1) SUBMISSION
TO
SECRETARY.—The order
shall provide that the Board shall submit to the Sec-
retary for approval any program or project of re-
search, promotion, consumer information, or indus-
try information. No program or project shall be im-
plemented prior to approval by the Secretary.
(2) BUDGETS.—The order shall require the
Board, prior to the beginning of each fiscal year, or
as may be necessary after the beginning of a fiscal
year, to submit to the Secretary for approval budg-
ets of anticipated expenses and disbursements in the
implementation of the order, including projected
costs of research, promotion, consumer information,
and industry information programs and projects.
(3) INCURRING
EXPENSES.—The Board may
incur such expenses for programs or projects of re-
search, promotion, consumer information, or indus-
try information, and other expenses for the adminis-
tration, maintenance, and functioning of the Board
as may be authorized by the Secretary, including
any implementation, administrative, and referendum
costs incurred by the Department.
(4) PAYING EXPENSES.—The funds to cover the
expenses referred to in paragraph (3) shall be paid
by the Board from assessments collected under sec-
tion 6 or funds borrowed pursuant to paragraph (5).
(5) AUTHORITY TO BORROW.—To meet the ex-
penses referred to in paragraph (3), the Board shall
have the authority to borrow funds, as approved by
the Secretary, for capital outlays and startup costs.
(e) CONTRACTS AND AGREEMENTS.—
(1) IN GENERAL.—To ensure efficient use of
funds, the order shall provide that the Board may
enter into a contract or agreement for the implemen-
tation and carrying out of a program or project of
canola or rapeseed research, promotion, consumer
information, or industry information, including a
contract with a producer organization, and for the
payment of the costs with funds received by the
Board under the order.
(2) REQUIREMENTS.—A contract or agreement
under paragraph (1) shall provide that—
(A) the contracting party shall develop and
submit to the Board a program or project to-
gether with a budget that shall show the esti-
mated costs to be incurred for the program or
project;
(B) the program or project shall become
effective on the approval of the Secretary; and
(C) the contracting party shall keep accu-
rate records of all transactions, account for
funds received and expended, make periodic re-
ports to the Board of activities conducted, and
make such other reports as the Board or the
Secretary may require.
(3) PRODUCER
ORGANIZATIONS.—The order
shall provide that the Board may contract with pro-
ducer organizations for any other services. The con-
tract shall include provisions comparable to those re-
quired by paragraph (2).
(f) BOOKS AND RECORDS OF THE BOARD.—
(1) IN GENERAL.—The order shall require the
Board to—
(A) maintain such books and records
(which shall be available to the Secretary for in-
spection and audit) as the Secretary may pre-
scribe;
(B) prepare and submit to the Secretary,
from time to time, such reports as the Sec-
retary may prescribe; and
(C) account for the receipt and disburse-
ment of all funds entrusted to the Board.
(2) AUDITS.—The Board shall cause the books
and records of the Board to be audited by an inde-
pendent auditor at the end of each fiscal year, and
a report of the audit to be submitted to the Sec-
retary.
(g) PROHIBITION.—
(1) IN GENERAL.—Subject to paragraph (2),
the Board shall not engage in any action to, nor
shall any funds received by the Board under this Act
be used to—
(A) influence legislation or governmental
action;
(B) engage in an action that would be a
conflict of interest;
(C) engage in advertising that is false or
misleading; or
(D) engage in promotion that would dis-
parage other commodities.
(2) ACTION PERMITTED.—Paragraph (1) does
not preclude—
(A) the development and recommendation
of amendments to the order;
(B) the communication to appropriate gov-
ernment officials of information relating to the
conduct, implementation, or results of pro-
motion, research, consumer information, or in-
dustry information activities under the order; or
(C) any action designed to market canola
or rapeseed products directly to a foreign gov-
ernment or political subdivision of a foreign
government.
(h) BOOKS AND RECORDS.—
(1) IN GENERAL.—The order shall require that
each producer or industry member shall—
(A) maintain and submit to the Board any
reports considered necessary by the Secretary
to ensure compliance with this Act; and
(B) make available during normal business
hours, for inspection by employees of the Board
or Secretary, such books and records as are
necessary to carry out this Act, including such
records as are necessary to verify any required
reports.
(2) CONFIDENTIALITY.—
(A) IN
GENERAL.—Except as otherwise
provided in this Act, all information obtained
from books, records, or reports required to be
maintained under paragraph (1) shall be kept
confidential, and shall not be disclosed to the
public by any person.
(B) DISCLOSURE.—Information referred to
in subparagraph (A) may be disclosed to the
public if—
(i) the Secretary considers the infor-
mation relevant;
(ii) the information is revealed in a
suit or administrative hearing brought at
the direction or on the request of the Sec-
retary or to which the Secretary or any of-
ficer of the Department is a party; and
(iii) the information relates to this
Act.
(C) MISCONDUCT.—A disclosure of con-
fidential information in violation of subpara-
graph (A) by a Board member or employee of
the Board, except as required by other law or
allowed under subparagraph (B) or (D), shall
be considered a violation of this Act.
(D) GENERAL STATEMENTS.—Nothing in
this paragraph prohibits—
(i) the issuance of general statements,
based on the reports, of the number of per-
sons subject to the order or statistical data
collected from the reports, if the state-
ments do not identify the information fur-
nished by any person; or
(ii) the publication, by direction of the
Secretary, of the name of a person violat-
ing the order, together with a statement of
the particular provisions of the order vio-
lated by the person.
(3) AVAILABILITY OF INFORMATION.—
(A) EXCEPTION.—Except as provided in
this Act, information obtained under this Act
may be made available to another agency of the
Federal Government for a civil or criminal law
enforcement activity if the activity is authorized
by law and if the head of the agency has made
a written request to the Secretary specifying
the particular information desired and the law
enforcement activity for which the information
is sought.
(B) PENALTY.—Any person knowingly vio-
lating this subsection, on conviction, shall be
subject to a fine of not more than $1,000 or to
imprisonment for not more than 1 year, or
both, and if an officer or employee of the Board
or the Department, shall be removed from office
or terminated from employment, as applicable.
(5) WITHHOLDING INFORMATION.—Nothing in
this Act authorizes withholding information from
Congress.
(i) USE OF ASSESSMENTS.—The order shall provide
that the assessments collected under section 6 shall be
used for payment of the expenses in implementing and ad-
ministering this Act, with provision for a reasonable re-
serve, and to cover those administrative costs incurred by
the Secretary in implementing and administering this Act,
except for the salaries of Government employees incurred
in conducting referenda.
(j) OTHER TERMS
AND CONDITIONS.—The order
also shall contain such terms and conditions, not inconsist-
ent with this Act, as determined necessary by the Sec-
retary to effectuate this Act.
SEC. 6. ASSESSMENTS.
(a) IN GENERAL.—During the effective period of an
order issued pursuant to this Act, assessments shall be—
(1) levied on all canola or rapeseed produced in
the United States and marketed; and
(2) deducted from the payment made to a pro-
ducer for all canola or rapeseed sold to a first pur-
chaser.
(b) LIMITATION ON ASSESSMENTS.—No more than
1 assessment may be assessed under subsection (a) on any
canola or rapeseed produced (as remitted by a first pur-
chaser).
(c) REMITTING ASSESSMENTS.—
(1) IN GENERAL.—Assessments required under
subsection (a) shall be remitted to the Board by a
first purchaser.
(2) TIMES TO REMIT ASSESSMENT.—Each first
purchaser shall remit the assessment to the Board
as provided for in the order.
(d) ASSESSMENT RATE.—
(1) INITIAL RATE.—The initial assessment rate
shall be—
(A) 2 cents per hundredweight of canola or
rapeseed produced and marketed in a State in
which there is a qualified State canola and
rapeseed board; and
(B) 4 cents per hundredweight of canola or
rapeseed produced and marketed in a State in
which there is no qualified State canola and
rapeseed board.
(2) INCREASE.—The assessment rate may be
increased on recommendation by the Board to a rate
not exceeding 8 cents per hundredweight of canola
or rapeseed produced and marketed in a State in
which there is a qualified State canola and rapeseed
board or 10 cents per hundredweight of canola or
rapeseed produced and marketed in a State in which
there is no qualified State canola and rapeseed
board, unless—
(A) after the initial referendum is held
under section 7(a), the Board recommends an
increase above 10 cents per hundredweight; and
(B) the increase is approved in a referen-
dum under section 7(b).
(e) LATE PAYMENT CHARGE.—
(1) IN GENERAL.—There shall be a late pay-
ment charge imposed on any person who fails to
remit, on or before the date provided for in the
order, to the Board the total amount for which the
person is liable.
(2) AMOUNT OF CHARGE.—The amount of the
late payment charge imposed under paragraph (1)
shall be prescribed by the Board with the approval
of the Secretary.
(f) REFUND OF ASSESSMENTS FROM ESCROW AC-
COUNT.—
(1) ESTABLISHMENT OF ESCROW ACCOUNT.—
During the period beginning on the date on which
an order is first issued under section 4(b)(3) and
ending on the date on which a referendum is con-
ducted under section 7(a), the Board shall—
(A) establish an escrow account to be used
for assessment refunds; and
(B) place funds in such account in accord-
ance with paragraph (2).
(2) PLACEMENT OF FUNDS IN ACCOUNT.—The
Board shall place in such account, from assessments
collected during the period referred to in paragraph
(1), an amount equal to the product obtained by
multiplying the total amount of assessments col-
lected during the period by 10 percent.
(3) RIGHT TO RECEIVE REFUND.—The Board
shall refund to a producer the assessments paid by
or on behalf of the producer if—
(A) the producer is required to pay the as-
sessment;
(B) the producer does not support the pro-
gram established under this Act; and
(C) the producer demands the refund prior
to the conduct of the referendum under section
7(a).
(4) FORM OF DEMAND.—The demand shall be
made in accordance with such regulations, in such
form, and within such time period as prescribed by
the Board.
(5) MAKING OF REFUND.—The refund shall be
made on submission of proof satisfactory to the
Board that the producer paid the assessment for
which the refund is demanded.
(6) PRORATION.—If—
(A) the amount in the escrow account re-
quired by paragraph (1) is not sufficient to re-
fund the total amount of assessments demanded
by eligible producers; and
(B) the order is not approved pursuant to
the referendum conducted under section 7(a);
the Board shall prorate the amount of the refunds
among all eligible producers who demand a refund.
(7) PROGRAM APPROVED.—If the plan is ap-
proved pursuant to the referendum conducted under
section 7(a), all funds in the escrow account shall be
returned to the Board for use by the Board in ac-
cordance with this Act.
SEC. 7. REFERENDA.
(a) INITIAL REFERENDUM.—
(1) REQUIREMENT.—During the period ending
30 months after the date of the issuance of an order
under section 4, the Secretary shall conduct a ref-
erendum among producers who, during a representa-
tive period as determined by the Secretary, have
been engaged in the production of canola or
rapeseed for the purpose of ascertaining whether the
order then in effect shall be continued.
(2) ADVANCE NOTICE.—The Secretary shall, to
the extent practicable, provide broad public notice in
advance of any referendum. The notice shall be pro-
vided, without advertising expenses, by means of
newspapers, county newsletters, the electronic media,
and press releases, through the use of notices posted
in State and county Cooperative State Research,
Education, and Extension Service offices and county
Consolidated Farm Service Agency offices, and by
other appropriate means specified in the order. The
notice shall include information on when the referen-
dum will be held, registration and voting require-
ments, rules regarding absentee voting, and other
pertinent information.
(3) APPROVAL OF ORDER.—The order shall be
continued only if the Secretary determines that the
order has been approved by not less than a majority
of the producers voting in the referendum.
(4) DISAPPROVAL OF ORDER.—If continuation
of the order is not approved by a majority of those
voting in the referendum, the Secretary shall termi-
nate collection of assessments under the order within
6 months after the referendum and shall terminate
the order in an orderly manner as soon as prac-
ticable.
(b) ADDITIONAL REFERENDA.—
(1) IN GENERAL.—
(A) REQUIREMENT.—After the initial ref-
erendum on an order, the Secretary shall con-
duct additional referenda, as described in sub-
paragraph (C), if requested by a representative
group of producers, as described in subpara-
graph (B).
(B) REPRESENTATIVE GROUP OF PRODUC-
ERS.—An additional referendum on an order
shall be conducted if requested by 10 percent or
more of the producers who during a representa-
tive period have been engaged in the production
of canola or rapeseed.
(C) ELIGIBLE
PRODUCERS.—Each addi-
tional referendum shall be conducted among all
producers who, during a representative period,
as determined by the Secretary, have been en-
gaged in the production of canola, rapeseed, or
canola or rapeseed products, to determine
whether the producers favor the termination or
suspension of the order.
(2) DISAPPROVAL OF ORDER.—If the Secretary
determines, in a referendum conducted under para-
graph (1), that suspension or termination of the
order is favored by a majority of the producers vot-
ing in the referendum, the Secretary shall suspend
or terminate, as appropriate, collection of assess-
ments under the order within 6 months after the de-
termination, and shall suspend or terminate the
order, as appropriate, in an orderly manner as soon
as practicable after the determination.
(3) OPPORTUNITY
TO
REQUEST
ADDITIONAL
REFERENDA.—
(A) IN GENERAL.—Beginning on the date
that is 5 years after the conduct of a referen-
dum under this Act, and every 5 years there-
after, the Secretary shall provide canola and
rapeseed producers an opportunity to request
an additional referendum.
(B) METHOD OF MAKING REQUEST.—
(i) IN-PERSON REQUESTS.—To carry
out subparagraph (A), the Secretary shall
establish a procedure under which a pro-
ducer may request a reconfirmation ref-
erendum in-person at a county Cooperative
State Research, Education, and Extension
Service office or a county Consolidated
Farm Service Agency office during a pe-
riod established by the Secretary, or as
provided in clause (ii).
(ii) MAIL-IN
REQUESTS.—In lieu of
making a request in person, a producer
may make a request by mail. To facilitate
the submission of requests by mail, the
Secretary may make mail-in request forms
available to producers.
(C) NOTIFICATIONS.—The Secretary shall
publish a notice in the Federal Register, and
the Board shall provide written notification to
producers, not later than 60 days prior to the
end of the period established under subpara-
graph (B)(i) for an in-person request, of the op-
portunity of producers to request an additional
referendum. The notification shall explain the
right of producers to an additional referendum,
the procedure for a referendum, the purpose of
a referendum, and the date and method by
which producers may act to request an addi-
tional referendum under this paragraph. The
Secretary shall take such other action as the
Secretary determines is necessary to ensure
that producers are made aware of the oppor-
tunity to request an additional referendum.
(D) ACTION BY SECRETARY.—As soon as
practicable following the submission of a re-
quest for an additional referendum, the Sec-
retary shall determine whether a sufficient
number of producers have requested the ref-
erendum, and take such steps as are necessary
to conduct the referendum, as required under
paragraph (1).
(E) TIME LIMIT.—An additional referen-
dum requested under the procedures provided
in this paragraph shall be conducted not later
than 1 year after the Secretary determines that
a representative group of producers, as de-
scribed in paragraph (1)(B), have requested the
conduct of the referendum.
(c) PROCEDURES.—
(1) REIMBURSEMENT
OF
SECRETARY.—The
Secretary shall be reimbursed from assessments col-
lected by the Board for any expenses incurred by the
Secretary in connection with the conduct of an activ-
ity required under this section, except for the sala-