---
kind: "section"
citation: "7 U.S.C. § 2904"
title: "7"
title_heading: "Agriculture"
number: "2904"
heading: "Required terms in orders"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/7/2904"
units:
  - "Chapter 62 — Beef Research and Information"
---

# §2904. Required terms in orders


An [order](/usc/7/2902.md?p=10) issued under [section 2903(b) of this title](/usc/7/2903.md?p=b) shall contain the following terms and conditions:

- (1) The [order](/usc/7/2902.md?p=10) shall provide for the establishment and selection of a Cattlemen’s [Beef](/usc/7/2902.md?p=1) [Promotion](/usc/7/2902.md?p=13) and [Research](/usc/7/2902.md?p=15) [Board](/usc/7/2902.md?p=3). Members of the [Board](/usc/7/2902.md?p=3) shall be [cattle](/usc/7/2902.md?p=4) [producers](/usc/7/2902.md?p=12) and [importers](/usc/7/2902.md?p=8) appointed by the [Secretary](/usc/7/2902.md?p=16) from (A) nominations submitted by eligible [State](/usc/7/2902.md?p=17) organizations certified under [section 2905 of this title](/usc/7/2905.md) (or, if the [Secretary](/usc/7/2902.md?p=16) determines that there is no eligible [State](/usc/7/2902.md?p=17) organization in a [State](/usc/7/2902.md?p=17), the [Secretary](/usc/7/2902.md?p=16) may provide for nominations from such [State](/usc/7/2902.md?p=17) to be made in a different manner), and (B) nominations submitted by [importers](/usc/7/2902.md?p=8) under such procedures as the [Secretary](/usc/7/2902.md?p=16) determines appropriate. In determining geographic representation for [cattle](/usc/7/2902.md?p=4) [producers](/usc/7/2902.md?p=12) on the [Board](/usc/7/2902.md?p=3), whole [States](/usc/7/2902.md?p=17) shall be considered as a unit. Each [State](/usc/7/2902.md?p=17) that has a total [cattle](/usc/7/2902.md?p=4) inventory greater than five hundred thousand head shall be entitled to at least one representative on the [Board](/usc/7/2902.md?p=3). A [State](/usc/7/2902.md?p=17) that has a total inventory of fewer than 500,000 [cattle](/usc/7/2902.md?p=4) shall be grouped, as far as practicable, with other [States](/usc/7/2902.md?p=17) each of which has a combined total inventory of not less than 500,000 [cattle](/usc/7/2902.md?p=4), into geographically contiguous units in a manner prescribed in the [order](/usc/7/2902.md?p=10). A unit may be represented on the [Board](/usc/7/2902.md?p=3) by more than one member. For each additional million head of [cattle](/usc/7/2902.md?p=4) within a unit, such unit shall be entitled to an additional member on the [Board](/usc/7/2902.md?p=3). The [Board](/usc/7/2902.md?p=3) may recommend a change in the level of inventory per unit necessary for representation on the [Board](/usc/7/2902.md?p=3) and, on such recommendation, the [Secretary](/usc/7/2902.md?p=16) may change the level necessary for representation on the [Board](/usc/7/2902.md?p=3). The number of members on the [Board](/usc/7/2902.md?p=3) that represent [importers](/usc/7/2902.md?p=8) shall be determined by the [Secretary](/usc/7/2902.md?p=16) on a proportional basis, by converting the volume of imported [beef](/usc/7/2902.md?p=1) and [beef products](/usc/7/2902.md?p=2) into live animal equivalencies.
- (2) The [order](/usc/7/2902.md?p=10) shall define the powers and duties of the [Board](/usc/7/2902.md?p=3), which shall be exercised at an annual meeting, and shall include only the following powers:
  - (A) To administer the [order](/usc/7/2902.md?p=10) in accordance with its terms and provisions.
  - (B) To make rules and regulations to effectuate the terms and provisions of the [order](/usc/7/2902.md?p=10).
  - (C) To elect members of the [Board](/usc/7/2902.md?p=3) to serve on the [Committee](/usc/7/2902.md?p=5).
  - (D) To approve or disapprove budgets submitted by the [Committee](/usc/7/2902.md?p=5).
  - (E) To receive, investigate, and report to the [Secretary](/usc/7/2902.md?p=16) complaints of violations of the [order](/usc/7/2902.md?p=10).
  - (F) To recommend to the [Secretary](/usc/7/2902.md?p=16) amendments to the [order](/usc/7/2902.md?p=10).

  In addition, the [order](/usc/7/2902.md?p=10) shall determine the circumstances under which special meetings of the [Board](/usc/7/2902.md?p=3) may be held.

- (3) The [order](/usc/7/2902.md?p=10) shall provide that the term of appointment to the [Board](/usc/7/2902.md?p=3) 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](/usc/7/2902.md?p=3) members shall serve without compensation, but shall be reimbursed for their reasonable expenses incurred in performing their duties as members of the [Board](/usc/7/2902.md?p=3).
- (4)
  - (A) The [order](/usc/7/2902.md?p=10) shall provide that the [Board](/usc/7/2902.md?p=3) shall elect from its membership ten members to serve on the [Beef](/usc/7/2902.md?p=1) [Promotion](/usc/7/2902.md?p=13) Operating [Committee](/usc/7/2902.md?p=5), which shall be composed of ten members of the [Board](/usc/7/2902.md?p=3) and ten [producers](/usc/7/2902.md?p=12) elected by a federation that includes as members the [qualified State beef councils](/usc/7/2902.md?p=14). The [producers](/usc/7/2902.md?p=12) elected by the federation shall be certified by the [Secretary](/usc/7/2902.md?p=16) as [producers](/usc/7/2902.md?p=12) that are directors of a [qualified State beef council](/usc/7/2902.md?p=14). The [Secretary](/usc/7/2902.md?p=16) also shall certify that such directors are duly elected by the federation as representatives to the [Committee](/usc/7/2902.md?p=5).
  - (B) The [Committee](/usc/7/2902.md?p=5) shall develop plans or projects of [promotion](/usc/7/2902.md?p=13) and advertising, [research](/usc/7/2902.md?p=15), [consumer information](/usc/7/2902.md?p=6), and [industry information](/usc/7/2902.md?p=9), which shall be paid for with assessments collected by the [Board](/usc/7/2902.md?p=3). In developing plans or projects, the [Committee](/usc/7/2902.md?p=5) shall—
    - (i) to the extent practicable, take into account similarities and differences between certain [beef](/usc/7/2902.md?p=1), [beef products](/usc/7/2902.md?p=2), and veal; and
    - (ii) ensure that segments of the [beef](/usc/7/2902.md?p=1) industry that enjoy a unique consumer identity receive equitable and fair treatment under this chapter.
  - (C) The [Committee](/usc/7/2902.md?p=5) shall be responsible for developing and submitting to the [Board](/usc/7/2902.md?p=3), for its approval, budgets on a fiscal year basis of its anticipated expenses and disbursements, including probable costs of advertising and [promotion](/usc/7/2902.md?p=13), [research](/usc/7/2902.md?p=15), [consumer information](/usc/7/2902.md?p=6), and [industry information](/usc/7/2902.md?p=9) projects. The [Board](/usc/7/2902.md?p=3) shall approve or disapprove such budgets and, if approved, shall submit such budget to the [Secretary](/usc/7/2902.md?p=16) for the [Secretary](/usc/7/2902.md?p=16)’s approval.
  - (D) The total costs of collection of assessments and administrative staff incurred by the [Board](/usc/7/2902.md?p=3) during any fiscal year shall not exceed 5 per centum of the projected total assessments to be collected by the [Board](/usc/7/2902.md?p=3) for such fiscal year. The [Board](/usc/7/2902.md?p=3) shall use, to the extent possible, the resources, staffs, and facilities of existing organizations.
- (5) The [order](/usc/7/2902.md?p=10) shall provide that terms of appointment to the [Committee](/usc/7/2902.md?p=5) shall be one year, and that no [person](/usc/7/2902.md?p=11) may serve on the [Committee](/usc/7/2902.md?p=5) for more than six consecutive terms. [Committee](/usc/7/2902.md?p=5) members shall serve without compensation, but shall be reimbursed for their reasonable expenses incurred in performing their duties as members of the [Committee](/usc/7/2902.md?p=5). The [Committee](/usc/7/2902.md?p=5) may utilize the resources, staffs, and facilities of the [Board](/usc/7/2902.md?p=3) and industry organizations. An employee of an industry organization may not receive compensation for work performed for the [Committee](/usc/7/2902.md?p=5), but shall be reimbursed from assessments collected by the [Board](/usc/7/2902.md?p=3) for reasonable expenses incurred in performing such work.
- (6) The [order](/usc/7/2902.md?p=10) shall provide that, to ensure coordination and efficient use of funds, the [Committee](/usc/7/2902.md?p=5) shall enter into contracts or agreements for implementing and carrying out the activities authorized by this chapter with established national nonprofit industry-governed organizations, including the federation referred to in [paragraph (4)](#4), to implement programs of [promotion](/usc/7/2902.md?p=13), [research](/usc/7/2902.md?p=15), [consumer information](/usc/7/2902.md?p=6), and [industry information](/usc/7/2902.md?p=9). Any such contract or agreement shall provide that—
  - (A) the [person](/usc/7/2902.md?p=11) entering the contract or agreement shall develop and submit to the [Committee](/usc/7/2902.md?p=5) 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](/usc/7/2902.md?p=16); and
  - (C) the [person](/usc/7/2902.md?p=11) 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](/usc/7/2902.md?p=5) of activities conducted, and such other reports as the [Secretary](/usc/7/2902.md?p=16), the [Board](/usc/7/2902.md?p=3), or the [Committee](/usc/7/2902.md?p=5) may require.
- (7) The [order](/usc/7/2902.md?p=10) shall require the [Board](/usc/7/2902.md?p=3) and the [Committee](/usc/7/2902.md?p=5) to—
  - (A) maintain such books and records, which shall be available to the [Secretary](/usc/7/2902.md?p=16) for inspection and audit, as the [Secretary](/usc/7/2902.md?p=16) may prescribe;
  - (B) prepare and submit to the [Secretary](/usc/7/2902.md?p=16), from time to time, such reports as the [Secretary](/usc/7/2902.md?p=16) may prescribe; and
  - (C) account for the receipt and disbursement of all funds entrusted to them.
- (8)
  - (A) The [order](/usc/7/2902.md?p=10) shall provide that each [person](/usc/7/2902.md?p=11) making payment to a [producer](/usc/7/2902.md?p=12) for [cattle](/usc/7/2902.md?p=4) purchased from the [producer](/usc/7/2902.md?p=12) shall, in the manner prescribed by the [order](/usc/7/2902.md?p=10), collect an assessment and remit the assessment to the [Board](/usc/7/2902.md?p=3). The [Board](/usc/7/2902.md?p=3) shall use [qualified State beef councils](/usc/7/2902.md?p=14) to collect such assessments.
  - (B) If an appropriate [qualified State beef council](/usc/7/2902.md?p=14) does not exist to collect an assessment in accordance with [paragraph (1)](#1), such assessment shall be collected by the [Board](/usc/7/2902.md?p=3).
  - (C) The [order](/usc/7/2902.md?p=10) also shall provide that each [importer](/usc/7/2902.md?p=8) of [cattle](/usc/7/2902.md?p=4), [beef](/usc/7/2902.md?p=1), or [beef products](/usc/7/2902.md?p=2) shall pay an assessment, in the manner prescribed by the [order](/usc/7/2902.md?p=10), to the [Board](/usc/7/2902.md?p=3). The assessments shall be used for payment of the costs of plans and projects, as provided for in [paragraph (4)](#4), and expenses in administering the [order](/usc/7/2902.md?p=10), including more administrative costs incurred by the [Secretary](/usc/7/2902.md?p=16) after the [order](/usc/7/2902.md?p=10) has been promulgated under this chapter, and to establish a reasonable reserve. The rate of assessment prescribed by the [order](/usc/7/2902.md?p=10) shall be one dollar per head of [cattle](/usc/7/2902.md?p=4), or the equivalent thereof in the case of imported [beef](/usc/7/2902.md?p=1) and [beef products](/usc/7/2902.md?p=2). A [producer](/usc/7/2902.md?p=12) who can establish that the [producer](/usc/7/2902.md?p=12) is participating in a program of an established [qualified State beef council](/usc/7/2902.md?p=14) shall receive credit, in determining the assessment due from such [producer](/usc/7/2902.md?p=12), for contributions to such program of up to 50 cents per head of [cattle](/usc/7/2902.md?p=4) or the equivalent thereof. There shall be only one [qualified State beef council](/usc/7/2902.md?p=14) in each [State](/usc/7/2902.md?p=17). Any [person](/usc/7/2902.md?p=11) marketing from[^1] [beef](/usc/7/2902.md?p=1) from [cattle](/usc/7/2902.md?p=4) of the [person](/usc/7/2902.md?p=11)’s own production shall remit the assessment to the [Board](/usc/7/2902.md?p=3) in the manner prescribed by the [order](/usc/7/2902.md?p=10).
- (9) The [order](/usc/7/2902.md?p=10) shall provide that the [Board](/usc/7/2902.md?p=3), with the approval of the [Secretary](/usc/7/2902.md?p=16), may invest, pending disbursement, funds collected through assessments only in obligations of the [United States](/usc/7/2902.md?p=18) or any agency thereof, in general obligations of any [State](/usc/7/2902.md?p=17) or any political subdivision thereof, in any interest-bearing account or certificate of deposit of a [bank](/usc/7/27.md?p=a) that is a member of the Federal Reserve System, or in obligations fully guaranteed as to principal and interest by the [United States](/usc/7/2902.md?p=18).
- (10) The [order](/usc/7/2902.md?p=10) shall prohibit any funds collected by the [Board](/usc/7/2902.md?p=3) under the [order](/usc/7/2902.md?p=10) from being used in any manner for the purpose of influencing governmental action or policy, with the exception of recommending amendments to the [order](/usc/7/2902.md?p=10).
- (11) The [order](/usc/7/2902.md?p=10) shall require that each [person](/usc/7/2902.md?p=11) making payment to a [producer](/usc/7/2902.md?p=12), any [person](/usc/7/2902.md?p=11) marketing [beef](/usc/7/2902.md?p=1) from [cattle](/usc/7/2902.md?p=4) of the [person](/usc/7/2902.md?p=11)’s own production directly to consumers, and any [importer](/usc/7/2902.md?p=8) of [cattle](/usc/7/2902.md?p=4), [beef](/usc/7/2902.md?p=1), or [beef products](/usc/7/2902.md?p=2) maintain and make available for inspection such books and records as may be required by the [order](/usc/7/2902.md?p=10) and file reports at the time, in the manner, and having the content prescribed by the [order](/usc/7/2902.md?p=10). Such information shall be made available to the [Secretary](/usc/7/2902.md?p=16) as is appropriate to the administration or enforcement of this chapter, the [order](/usc/7/2902.md?p=10), or any regulation issued under this chapter. In addition, the [Secretary](/usc/7/2902.md?p=16) shall authorize the use of information regarding [persons](/usc/7/2902.md?p=11) paying [producers](/usc/7/2902.md?p=12) that is accumulated under a law or regulation other than this chapter or regulations under this chapter.

  All information so obtained shall be kept confidential by all officers and employees of the [Department](/usc/7/2902.md?p=7), and only such information so obtained as the [Secretary](/usc/7/2902.md?p=16) deems relevant may be disclosed by them and then only in a suit or administrative hearing brought at the request of the [Secretary](/usc/7/2902.md?p=16), or to which the [Secretary](/usc/7/2902.md?p=16) or any officer of the [United States](/usc/7/2902.md?p=18) is a party, and involving the [order](/usc/7/2902.md?p=10). Nothing in this paragraph may be deemed to prohibit—

  - (A) the issuance of general statements, based on the reports, of the number of [persons](/usc/7/2902.md?p=11) subject to the [order](/usc/7/2902.md?p=10) or statistical data collected therefrom, which statements do not identify the information furnished by any [person](/usc/7/2902.md?p=11); or
  - (B) the publication, by direction of the [Secretary](/usc/7/2902.md?p=16), of the name of any [person](/usc/7/2902.md?p=11) violating the [order](/usc/7/2902.md?p=10), together with a statement of the particular provisions of the [order](/usc/7/2902.md?p=10) violated by the [person](/usc/7/2902.md?p=11).

  No information obtained under the authority of this chapter may be made available to any agency or officer of the [United States](/usc/7/2902.md?p=18) for any purpose other than the implementation of this chapter and any investigatory or enforcement act necessary for the implementation of this chapter. Any [person](/usc/7/2902.md?p=11) 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](/usc/7/2902.md?p=3) or the [Department](/usc/7/2902.md?p=7), shall be removed from office.

- (12) The [order](/usc/7/2902.md?p=10) shall contain terms and conditions, not inconsistent with the provisions of this chapter, as necessary to effectuate the provisions of the [order](/usc/7/2902.md?p=10).

## Footnotes

[^1]: So in original. The word “from” probably should not appear.

## Source credit

(Pub. L. 94–294, § 5, May 28, 1976, 90 Stat. 530; Pub. L. 99–198, title XVI, § 1601(b), Dec. 23, 1985, 99 Stat. 1599.)

## Notes

### Editorial Notes

### Amendments

1985—Pub. L. 99–198 amended section generally, substituting provisions relating to required terms in orders for provisions relating to notice and hearing upon proposed orders.

### Statutory Notes and Related Subsidiaries

### Effective Date of 1985 Amendment

Amendment by Pub. L. 99–198 effective Jan. 1, 1986, see section 1601(c) of Pub. L. 99–198, set out as a note under section 2901 of this title.