---
kind: "section"
citation: "7 U.S.C. § 7104"
title: "7"
title_heading: "Agriculture"
number: "7104"
heading: "Required terms in orders"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/7/7104"
units:
  - "Chapter 99 — Sheep Promotion, Research, and Information"
---

# §7104. Required terms in orders

- (a) **In general—** An [order](/usc/7/7102.md?p=15) issued under this chapter shall contain the terms and conditions specified in this section.
- (b) **Establishment and membership of Board—**
  - (1) **In general—** The [order](/usc/7/7102.md?p=15) shall provide for the establishment of, and appointment of members to, a National [Sheep](/usc/7/7102.md?p=26) [Promotion](/usc/7/7102.md?p=20), [Research](/usc/7/7102.md?p=24), and Information [Board](/usc/7/7102.md?p=1) to administer the [order](/usc/7/7102.md?p=15). Members of the [Board](/usc/7/7102.md?p=1) shall be appointed by the [Secretary](/usc/7/7102.md?p=25) from nominations provided in accordance with this subsection. The cumulative number of seats on the [Board](/usc/7/7102.md?p=1) shall be 120 and shall be apportioned as follows:
    - (A) **Producers—** [Producers](/usc/7/7102.md?p=18) shall be appointed to the [Board](/usc/7/7102.md?p=1) to represent [States](/usc/7/7102.md?p=28), with each [State](/usc/7/7102.md?p=28) represented by the following number of members:

      |  |  |
      | --- | --- |
      | Alabama | 1 |
      | Alaska | 1 |
      | Arizona | 1 |
      | Arkansas | 1 |
      | California | 5 |
      | Colorado | 4 |
      | Connecticut | 1 |
      | Delaware | 1 |
      | Florida | 1 |
      | Georgia | 1 |
      | Hawaii | 1 |
      | Idaho | 2 |
      | Illinois | 1 |
      | Indiana | 1 |
      | Iowa | 2 |
      | Kansas | 1 |
      | Kentucky | 1 |
      | Louisiana | 1 |
      | Maine | 1 |
      | Maryland | 1 |
      | Massachusetts | 1 |
      | Michigan | 1 |
      | Minnesota | 2 |
      | Mississippi | 1 |
      | Missouri | 1 |
      | Montana | 5 |
      | Nebraska | 1 |
      | Nevada | 1 |
      | New Hampshire | 1 |
      | New Jersey | 1 |
      | New Mexico | 2 |
      | New York | 1 |
      | North Carolina | 1 |
      | North Dakota | 2 |
      | Ohio | 1 |
      | Oklahoma | 1 |
      | Oregon | 2 |
      | Pennsylvania | 1 |
      | Rhode Island | 1 |
      | South Carolina | 1 |
      | South Dakota | 4 |
      | Tennessee | 1 |
      | Texas | 10 |
      | Utah | 3 |
      | Vermont | 1 |
      | Virginia | 1 |
      | Washington | 1 |
      | West Virginia | 1 |
      | Wisconsin | 1 |
      | Wyoming | 5 |

    - (B) **Feeders—** The [feeder](/usc/7/7102.md?p=10) [sheep](/usc/7/7102.md?p=26) industry shall be represented on the [Board](/usc/7/7102.md?p=1) by 10 members.
    - (C) **Importers—** [Importers](/usc/7/7102.md?p=13) shall be represented on the [Board](/usc/7/7102.md?p=1) by 25 members.
    - (D) **Alternates—** The [order](/usc/7/7102.md?p=15) shall provide that a [unit](/usc/7/7102.md?p=29) represented by only 1 member may have an alternate member appointed to ensure representation at meetings of the [Board](/usc/7/7102.md?p=1).
  - (2) **Nominations—**
    - (A) **Producers—** The [Secretary](/usc/7/7102.md?p=25) shall appoint [producers](/usc/7/7102.md?p=18) to represent [units](/usc/7/7102.md?p=29) established under [paragraph (1)(A)](#b-1-A) from nominations submitted by eligible organizations certified under [subsection (c)(3)](#c-3). An eligible organization may submit only nominations from the membership of the organization for the [unit](/usc/7/7102.md?p=29) in which the organization is located. To be represented on the [Board](/usc/7/7102.md?p=1), each eligible organization shall submit to the [Secretary](/usc/7/7102.md?p=25) at least 1.5 nominations for each appointment to the [Board](/usc/7/7102.md?p=1) for which the [unit](/usc/7/7102.md?p=29) is entitled to representation, as determined under [paragraph (1)(A)](#b-1-A). If a [unit](/usc/7/7102.md?p=29) is entitled to 1 appointment on the [Board](/usc/7/7102.md?p=1), the [unit](/usc/7/7102.md?p=29) shall submit at least 2 nominations for the appointment.
    - (B) **Feeders—** The [Secretary](/usc/7/7102.md?p=25) shall appoint representatives of the [feeder](/usc/7/7102.md?p=10) [sheep](/usc/7/7102.md?p=26) industry to seats established under [paragraph (1)(B)](#b-1-B) from nominations submitted by qualified national organizations that represent the [feeder](/usc/7/7102.md?p=10) [sheep](/usc/7/7102.md?p=26) industry. To be represented on the [Board](/usc/7/7102.md?p=1), the industry shall provide at least 1.5 nominations for each appointment to the [Board](/usc/7/7102.md?p=1) for which the [feeder](/usc/7/7102.md?p=10) [sheep](/usc/7/7102.md?p=26) industry is entitled to representation, as determined under [paragraph (1)(B)](#b-1-B).
    - (C) **Importers—** The [Secretary](/usc/7/7102.md?p=25) shall appoint [importers](/usc/7/7102.md?p=13) to seats established under [paragraph (1)(C)](#b-1-C) from nominations submitted by qualified organizations that represent [importers](/usc/7/7102.md?p=13), as determined by the [Secretary](/usc/7/7102.md?p=25). To be represented on the [Board](/usc/7/7102.md?p=1), [importers](/usc/7/7102.md?p=13) shall provide at least 1.5 nominations for each appointment to the [Board](/usc/7/7102.md?p=1) for which [importers](/usc/7/7102.md?p=13) are entitled to representation, as determined under [paragraph (1)(C)](#b-1-C).
- (c) **Method for obtaining nominations—**
  - (1) **Initially established Board—**
    - (A) **Producer nominations—** The [Secretary](/usc/7/7102.md?p=25) shall solicit nominations for each seat on the initially established [Board](/usc/7/7102.md?p=1) to which a [unit](/usc/7/7102.md?p=29) is entitled to representation from eligible organizations certified under [paragraph (3)](#c-3). If no such organization exists in the [unit](/usc/7/7102.md?p=29), the [Secretary](/usc/7/7102.md?p=25) shall solicit nominations for appointments in such manner as the [Secretary](/usc/7/7102.md?p=25) determines appropriate.
    - (B) **Feeder and importer nominations—** The [Secretary](/usc/7/7102.md?p=25) shall solicit nominations for each seat for which [feeders](/usc/7/7102.md?p=10) or [importers](/usc/7/7102.md?p=13) are entitled to representation from organizations that represent [feeders](/usc/7/7102.md?p=10) and [importers](/usc/7/7102.md?p=13), respectively. In determining whether an organization is eligible to submit nominations under this subparagraph, the [Secretary](/usc/7/7102.md?p=25) shall determine whether—
      - (i) the active membership of the organization includes a significant number of [feeders](/usc/7/7102.md?p=10) or [importers](/usc/7/7102.md?p=13) in relation to the total membership of the organization;
      - (ii) there is evidence of stability and permanency of the organization; and
      - (iii) the organization has a primary and overriding interest in representing the [feeder](/usc/7/7102.md?p=10) or [importer](/usc/7/7102.md?p=13) segment of the [sheep](/usc/7/7102.md?p=26) industry.
  - (2) **Subsequent appointment—**
    - (A) **Producer nominations—** The solicitation of nominations for subsequent appointment to the [Board](/usc/7/7102.md?p=1) from eligible organizations certified under [paragraph (3)](#c-3) shall be initiated by the [Secretary](/usc/7/7102.md?p=25), with the [Board](/usc/7/7102.md?p=1) securing the nominations for the [Secretary](/usc/7/7102.md?p=25).
    - (B) **Feeder and importer nominations—** The solicitation of [feeder](/usc/7/7102.md?p=10) and [importer](/usc/7/7102.md?p=13) nominations for seats on the [Board](/usc/7/7102.md?p=1) shall be made by the [Secretary](/usc/7/7102.md?p=25) in accordance with [paragraph (1)(B)](#c-1-B).
  - (3) **Certification of organizations—**
    - (A) **In general—** The eligibility of any organization to represent [producers](/usc/7/7102.md?p=18), and to participate in the making of nominations to represent [producers](/usc/7/7102.md?p=18) under this section, shall be certified by the [Secretary](/usc/7/7102.md?p=25). The [Secretary](/usc/7/7102.md?p=25) shall certify any organization that the [Secretary](/usc/7/7102.md?p=25) determines meets the eligibility criteria established by the [Secretary](/usc/7/7102.md?p=25) under this paragraph. An eligibility determination of the [Secretary](/usc/7/7102.md?p=25) under this paragraph shall be final.
    - (B) **Basis for certification—** Certification under this paragraph shall be based, in addition to other available information, on a factual report submitted by the organization, that shall contain information considered relevant and specified by the [Secretary](/usc/7/7102.md?p=25), including—
      - (i) the geographic territory covered by the active membership of the organization;
      - (ii) the nature and size of the active membership of the organization, including the proportion of the total number of active [producers](/usc/7/7102.md?p=18) represented by the organization;
      - (iii) evidence of stability and permanency of the organization;
      - (iv) sources from which the operating funds of the organization are derived;
      - (v) the functions of the organization; and
      - (vi) the ability and willingness of the organization to further the aims and objectives of this chapter.
    - (C) **Primary considerations—** A primary consideration in determining the eligibility of an organization under this paragraph shall be whether—
      - (i) the membership of the organization consists primarily of [producers](/usc/7/7102.md?p=18) who own a substantial quantity of [sheep](/usc/7/7102.md?p=26); and
      - (ii) an interest of the organization is in the production of [sheep](/usc/7/7102.md?p=26).
- (d) **Administration—**
  - (1) **Terms—** Each appointment to the [Board](/usc/7/7102.md?p=1) shall be for a term of 3 years, except that appointments to the initially established [Board](/usc/7/7102.md?p=1) shall be proportionately for 1-year, 2-year, and 3-year terms. No [person](/usc/7/7102.md?p=16) may serve more than 2 consecutive 3-year terms, except that an elected officer of the [Board](/usc/7/7102.md?p=1) shall not be subject to this sentence while the officer holds office.
  - (2) **Compensation—** A [Board](/usc/7/7102.md?p=1) member shall serve without compensation, but shall be reimbursed for the reasonable expenses of the member incurred in performing the duties of the [Board](/usc/7/7102.md?p=1).
  - (3) **Meetings—** The [order](/usc/7/7102.md?p=15) shall provide for at least an annual meeting of the [Board](/usc/7/7102.md?p=1) and such additional meetings of the [Board](/usc/7/7102.md?p=1) as may be required.
- (e) **Powers and duties of Board—** The [order](/usc/7/7102.md?p=15) shall define the powers and duties of the [Board](/usc/7/7102.md?p=1) and shall include the power and duty—
  - (1) to elect officers of the [Board](/usc/7/7102.md?p=1), including a Chairperson, Vice Chairperson, and [Secretary](/usc/7/7102.md?p=25);
  - (2) to administer the [order](/usc/7/7102.md?p=15) in accordance with the terms and provisions of the [order](/usc/7/7102.md?p=15);
  - (3) to recommend regulations to effectuate the terms and provisions of the [order](/usc/7/7102.md?p=15);
  - (4) to elect members of the [Board](/usc/7/7102.md?p=1) to serve on the [Executive Committee](/usc/7/7102.md?p=8);
  - (5) to approve or reject budgets submitted by the [Executive Committee](/usc/7/7102.md?p=8);
  - (6) on approval, to submit the budgets to the [Secretary](/usc/7/7102.md?p=25) for the approval or disapproval of the [Secretary](/usc/7/7102.md?p=25);
  - (7) to contract with entities, if necessary, to carry out plans or projects in accordance with this chapter;
  - (8) to conduct programs of [promotion](/usc/7/7102.md?p=20), [research](/usc/7/7102.md?p=24), [consumer information](/usc/7/7102.md?p=3), [education](/usc/7/7102.md?p=7), [industry information](/usc/7/7102.md?p=14), and [producer information](/usc/7/7102.md?p=19);
  - (9) to receive, investigate, and report to the [Secretary](/usc/7/7102.md?p=25) complaints of violations of the [order](/usc/7/7102.md?p=15);
  - (10) to recommend to the [Secretary](/usc/7/7102.md?p=25) amendments to the [order](/usc/7/7102.md?p=15);
  - (11) to provide the [Secretary](/usc/7/7102.md?p=25) with prior notice of meetings of the [Board](/usc/7/7102.md?p=1) to permit the [Secretary](/usc/7/7102.md?p=25), or a designated representative, to attend the meetings;
  - (12) to provide, not less than annually, a report to [producers](/usc/7/7102.md?p=18), [feeders](/usc/7/7102.md?p=10), and [importers](/usc/7/7102.md?p=13) accounting for funds expended by the [Board](/usc/7/7102.md?p=1) and describing programs carried out under this chapter, and to make the report available to the public on request;
  - (13) to establish 7 regions that, to the extent practicable, contain geographically contiguous [States](/usc/7/7102.md?p=28) and approximately equal numbers of [producers](/usc/7/7102.md?p=18) and [sheep](/usc/7/7102.md?p=26) production;
  - (14) to [employ](/usc/7/499a.md?p=b-10) or retain necessary staff; and
  - (15) to invest funds in accordance with [subsection (k)](#k).
- (f) **Budgets—**
  - (1) **In general—** The [order](/usc/7/7102.md?p=15) shall provide that the [Board](/usc/7/7102.md?p=1) shall review budgets submitted by the [Executive Committee](/usc/7/7102.md?p=8), on a fiscal year basis, of anticipated expenses and disbursements by the [Board](/usc/7/7102.md?p=1), including probable costs of administration and [promotion](/usc/7/7102.md?p=20), [research](/usc/7/7102.md?p=24), [consumer information](/usc/7/7102.md?p=3), [education](/usc/7/7102.md?p=7), [industry information](/usc/7/7102.md?p=14), and [producer information](/usc/7/7102.md?p=19) projects. On approval by the [Board](/usc/7/7102.md?p=1), the [Board](/usc/7/7102.md?p=1) shall submit the budget to the [Secretary](/usc/7/7102.md?p=25) for the approval of the [Secretary](/usc/7/7102.md?p=25).
  - (2) **Limitation—** No expenditure of funds may be made by the [Board](/usc/7/7102.md?p=1) unless the expenditure is authorized under a budget or budget amendment approved by the [Secretary](/usc/7/7102.md?p=25).
- (g) **Executive Committee—**
  - (1) **Establishment—** The [order](/usc/7/7102.md?p=15) shall establish an [Executive Committee](/usc/7/7102.md?p=8) to administer the terms and provisions of the [order](/usc/7/7102.md?p=15), as provided in this subsection, under the direction of the [Board](/usc/7/7102.md?p=1) and consistent with the policies determined by the [Board](/usc/7/7102.md?p=1).
  - (2) **Membership—** The [Executive Committee](/usc/7/7102.md?p=8) shall be composed of 14 members, of which—
    - (A) 11 members shall be elected by the [Board](/usc/7/7102.md?p=1) on an annual basis, of which—
      - (i) 7 members shall represent [producers](/usc/7/7102.md?p=18), with 1 member representing each of the regions established in the [order](/usc/7/7102.md?p=15);
      - (ii) 1 member shall represent [feeders](/usc/7/7102.md?p=10); and
      - (iii) 3 members shall represent [importers](/usc/7/7102.md?p=13); and
    - (B) 3 members shall be the Chairperson, Vice Chairperson, and [Secretary](/usc/7/7102.md?p=25) of the [Board](/usc/7/7102.md?p=1).
  - (3) **Powers and duties—**
    - (A) **Plans or projects—** The [Executive Committee](/usc/7/7102.md?p=8) shall develop plans or projects of [promotion](/usc/7/7102.md?p=20), [research](/usc/7/7102.md?p=24), [consumer information](/usc/7/7102.md?p=3), [education](/usc/7/7102.md?p=7), [industry information](/usc/7/7102.md?p=14), and [producer information](/usc/7/7102.md?p=19), which shall be paid for with assessments collected by the [Board](/usc/7/7102.md?p=1). The plans or projects shall not become effective until the plans or projects are approved by the [Secretary](/usc/7/7102.md?p=25).
    - (B) **Budgets—** The [Executive Committee](/usc/7/7102.md?p=8) shall be responsible for developing and submitting to the [Board](/usc/7/7102.md?p=1), for the approval of the [Board](/usc/7/7102.md?p=1), budgets, on a fiscal year basis, of the anticipated expenses and disbursements of the [Board](/usc/7/7102.md?p=1), including probable costs of [promotion](/usc/7/7102.md?p=20), [research](/usc/7/7102.md?p=24), [consumer information](/usc/7/7102.md?p=3), [education](/usc/7/7102.md?p=7), [industry information](/usc/7/7102.md?p=14), and [producer information](/usc/7/7102.md?p=19) projects. The [Board](/usc/7/7102.md?p=1) shall approve or disapprove a budget submitted by the [Executive Committee](/usc/7/7102.md?p=8), and, if approved, shall submit the budget to the [Secretary](/usc/7/7102.md?p=25) for the approval of the [Secretary](/usc/7/7102.md?p=25).
  - (4) **Terms—** A term of appointment to the [Executive Committee](/usc/7/7102.md?p=8) shall be for 1 year.
  - (5) **Chairperson—** The Chairperson of the [Board](/usc/7/7102.md?p=1) shall serve as Chairperson of the [Executive Committee](/usc/7/7102.md?p=8).
  - (6) **Quorum—** A quorum of the [Executive Committee](/usc/7/7102.md?p=8) shall consist of 8 members.
- (h) **Expenses, contracts, and agreements—**
  - (1) **Expenses—** The [order](/usc/7/7102.md?p=15) shall provide that the [Board](/usc/7/7102.md?p=1) shall be responsible for all expenses of the [Board](/usc/7/7102.md?p=1) and the [Executive Committee](/usc/7/7102.md?p=8).
  - (2) **Contracts and agreements—** A contract or agreement entered into by the [Board](/usc/7/7102.md?p=1) under [subsection (e)(7)](#e-7) shall provide that—
    - (A) the contracting party shall develop and submit to the [Board](/usc/7/7102.md?p=1) a plan or project, together with a budget or budgets that provides estimated costs to be incurred for the plan or project;
    - (B) the plan or project, and the contract or agreement, shall not become effective until the plan or project has been approved by the [Secretary](/usc/7/7102.md?p=25); and
    - (C) the contracting party shall—
      - (i) keep accurate records of all of the transactions of the party;
      - (ii) account for funds received and expended, including staff time, salaries, and expenses expended on behalf of [Board](/usc/7/7102.md?p=1) activities;
      - (iii) make periodic reports to the [Board](/usc/7/7102.md?p=1) of activities conducted; and
      - (iv) make such other reports as the [Board](/usc/7/7102.md?p=1) or the [Secretary](/usc/7/7102.md?p=25) may require.
- (i) **Assessments—**
  - (1) **Sheep purchases—**
    - (A) **In general—** The [order](/usc/7/7102.md?p=15) shall provide that each [person](/usc/7/7102.md?p=16) making payment to a [producer](/usc/7/7102.md?p=18) or [feeder](/usc/7/7102.md?p=10) for [sheep](/usc/7/7102.md?p=26) purchased from the [producer](/usc/7/7102.md?p=18) or [feeder](/usc/7/7102.md?p=10) shall, in the manner prescribed by the [order](/usc/7/7102.md?p=15), collect an assessment from the [producer](/usc/7/7102.md?p=18) or [feeder](/usc/7/7102.md?p=10) on each [sheep](/usc/7/7102.md?p=26) sold by the [producer](/usc/7/7102.md?p=18) or [feeder](/usc/7/7102.md?p=10).
    - (B) **Processing—** Any [person](/usc/7/7102.md?p=16) purchasing [sheep](/usc/7/7102.md?p=26) for processing shall collect the assessment from the seller and remit the assessment to the [Board](/usc/7/7102.md?p=1) in the manner prescribed by the [order](/usc/7/7102.md?p=15).
    - (C) **Rate—**
      - (i) **In general—** Except as provided in [clause (ii)](#i-1-C-ii), the rate of assessment under this paragraph shall be 1 cent per pound of live [sheep](/usc/7/7102.md?p=26) sold.
      - (ii) **Exception—** The rate of assessment under this paragraph may be raised or lowered not more than <sup>15</sup>⁄<sub>100</sub> of a cent per pound in any 1 year, as recommended by the [Executive Committee](/usc/7/7102.md?p=8) and approved by the [Board](/usc/7/7102.md?p=1) and the [Secretary](/usc/7/7102.md?p=25), except that the rate of assessment under this paragraph shall not exceed 2.5 cents per pound of live [sheep](/usc/7/7102.md?p=26) sold.
  - (2) **Wool purchases—**
    - (A) **In general—** The [order](/usc/7/7102.md?p=15) shall provide that each [person](/usc/7/7102.md?p=16) making payment to a [producer](/usc/7/7102.md?p=18), [feeder](/usc/7/7102.md?p=10), or [handler](/usc/7/7102.md?p=12) of [wool](/usc/7/7102.md?p=31) for [wool](/usc/7/7102.md?p=31) purchased from the [producer](/usc/7/7102.md?p=18), [feeder](/usc/7/7102.md?p=10), or [handler](/usc/7/7102.md?p=12) shall, in the manner prescribed by the [order](/usc/7/7102.md?p=15), collect an assessment on each pound of [greasy wool](/usc/7/7102.md?p=11) sold.
    - (B) **Processing—** Any [person](/usc/7/7102.md?p=16) purchasing [greasy wool](/usc/7/7102.md?p=11) for processing shall collect the assessment and remit the assessment to the [Board](/usc/7/7102.md?p=1) in the manner prescribed by the [order](/usc/7/7102.md?p=15).
    - (C) **Rate—**
      - (i) **In general—** Except as provided in [clause (ii)](#i-2-C-ii), the rate of assessment under this paragraph shall be 2 cents per pound of [greasy wool](/usc/7/7102.md?p=11).
      - (ii) **Exception—** The rate of assessment under this paragraph may be raised or lowered not more than <sup>2</sup>⁄<sub>10</sub> of a cent per pound in any 1 year, as recommended by the [Executive Committee](/usc/7/7102.md?p=8) and approved by the [Board](/usc/7/7102.md?p=1) and the [Secretary](/usc/7/7102.md?p=25), except that the rate of assessment under this paragraph shall not exceed 4 cents per pound of [greasy wool](/usc/7/7102.md?p=11).
  - (3) **Direct processing—** The [order](/usc/7/7102.md?p=15) shall provide that any [person](/usc/7/7102.md?p=16) processing or causing to be processed [sheep](/usc/7/7102.md?p=26) or [sheep products](/usc/7/7102.md?p=27) of that [person](/usc/7/7102.md?p=16)’s own production and marketing shall—
    - (A) pay an assessment on the [sheep](/usc/7/7102.md?p=26) or [sheep products](/usc/7/7102.md?p=27) at the time of sale at a rate equivalent to the rate provided for in paragraph [(1)](#i-1) or [(2)](#i-2), as appropriate; and
    - (B) remit the assessment to the [Board](/usc/7/7102.md?p=1) in the manner prescribed by the [order](/usc/7/7102.md?p=15).
  - (4) **Exports—** The [order](/usc/7/7102.md?p=15) shall provide that any [person](/usc/7/7102.md?p=16) exporting live [sheep](/usc/7/7102.md?p=26) or [greasy wool](/usc/7/7102.md?p=11) shall—
    - (A) pay the assessment on the [sheep](/usc/7/7102.md?p=26) or [greasy wool](/usc/7/7102.md?p=11) at the time of export at a rate equivalent to the rate provided for in paragraph [(1)](#i-1) or [(2)](#i-2), as appropriate; and
    - (B) remit the assessment to the [Board](/usc/7/7102.md?p=1) in the manner prescribed by the [order](/usc/7/7102.md?p=15).
  - (5) **Imports—**
    - (A) **In general—** The [order](/usc/7/7102.md?p=15) shall provide that any [person](/usc/7/7102.md?p=16) importing [sheep](/usc/7/7102.md?p=26) or [sheep](/usc/7/7102.md?p=26) product, and any [person](/usc/7/7102.md?p=16) importing [wool](/usc/7/7102.md?p=31) or products containing [wool](/usc/7/7102.md?p=31), into the [United States](/usc/7/7102.md?p=30) shall pay an assessment to the [Board](/usc/7/7102.md?p=1) in the manner prescribed by the [order](/usc/7/7102.md?p=15), except that this paragraph shall not apply to [raw wool](/usc/7/7102.md?p=23) that is imported into the [United States](/usc/7/7102.md?p=30).
    - (B) **Collection—** The [Customs Service](/usc/7/7102.md?p=4) shall collect the assessment required under this paragraph and remit the assessment to the [Secretary](/usc/7/7102.md?p=25) for disbursement to the [Board](/usc/7/7102.md?p=1).
    - (C) **Rate for sheep and sheep products—**
      - (i) **In general—** Except as provided in [subparagraph (B)](#i-5-B), the rate of assessment under this paragraph for [sheep](/usc/7/7102.md?p=26) and [sheep products](/usc/7/7102.md?p=27) shall be—
        - (I) in the case of a live [sheep](/usc/7/7102.md?p=26), 1 cent per pound; and
        - (II) in the case of a [sheep](/usc/7/7102.md?p=26) product, the equivalent of 1 cent per pound of live [sheep](/usc/7/7102.md?p=26), as determined by the [Secretary](/usc/7/7102.md?p=25) in consultation with the domestic [sheep](/usc/7/7102.md?p=26) industry.
      - (ii) **Exception—** The rate of assessment under this subparagraph may be raised or lowered not more than <sup>15</sup>⁄<sub>100</sub> cent per pound in any 1 year, as recommended by the [Executive Committee](/usc/7/7102.md?p=8) and approved by the [Board](/usc/7/7102.md?p=1) and the [Secretary](/usc/7/7102.md?p=25), except that the rate of assessment under this subparagraph shall not exceed 2.5 cents per pound.
    - (D) **Rate for wool and wool products—**
      - (i) **In general—** Except as provided in [clause (ii)](#i-5-D-ii), the rate of assessment under this paragraph for [wool](/usc/7/7102.md?p=31) and products containing [wool](/usc/7/7102.md?p=31), shall be 2 cents per pound of [degreased wool](/usc/7/7102.md?p=5) or the equivalent of [degreased wool](/usc/7/7102.md?p=5).
      - (ii) **Exception—** The rate of assessment under this subparagraph may be raised or lowered not more than <sup>2</sup>⁄<sub>10</sub> cent per pound in any 1 year, as recommended by the [Executive Committee](/usc/7/7102.md?p=8) and approved by the [Board](/usc/7/7102.md?p=1) and the [Secretary](/usc/7/7102.md?p=25), except that the rate of assessment under this subparagraph shall not exceed 4 cents per pound of [degreased wool](/usc/7/7102.md?p=5) or the equivalent of [degreased wool](/usc/7/7102.md?p=5).
  - (6) **Qualified State sheep boards—**
    - (A) **In general—** Except as provided in [subparagraph (B)](#i-6-B), the [order](/usc/7/7102.md?p=15) shall provide that 20 percent of the total assessments collected by the [Board](/usc/7/7102.md?p=1) on the marketing of domestic [sheep](/usc/7/7102.md?p=26) and domestic [sheep products](/usc/7/7102.md?p=27) in any 1 year from a [State](/usc/7/7102.md?p=28) shall be returned to the [qualified State sheep board](/usc/7/7102.md?p=22) of the [State](/usc/7/7102.md?p=28).
    - (B) **Exception—** No [qualified State sheep board](/usc/7/7102.md?p=22) shall receive less than $2,500 under [subparagraph (A)](#i-6-A) in any year.
  - (7) **De minimis imports—** The [Secretary](/usc/7/7102.md?p=25) may issue regulations that—
    - (A) exclude certain imported materials or products that contain de minimis content levels of [sheep](/usc/7/7102.md?p=26) or [sheep products](/usc/7/7102.md?p=27); and
    - (B) waive the assessment due on the materials or products.
  - (8) **Use of assessments—**
    - (A) **In general—** The [order](/usc/7/7102.md?p=15) shall provide that assessments received by the [Board](/usc/7/7102.md?p=1) shall be used by the [Board](/usc/7/7102.md?p=1) for the payment of expenses incurred in administering the [order](/usc/7/7102.md?p=15), with authorization for a reasonable reserve.
    - (B) **Reimbursement of Secretary—** The [Secretary](/usc/7/7102.md?p=25) shall be reimbursed for costs incurred in implementing and administering the [order](/usc/7/7102.md?p=15).
- (j) **Books and records of Board—**
  - (1) **In general—** The [order](/usc/7/7102.md?p=15) shall require the [Board](/usc/7/7102.md?p=1) to—
    - (A) maintain such books and records as the [Secretary](/usc/7/7102.md?p=25) may prescribe, which shall be available to the [Secretary](/usc/7/7102.md?p=25) for inspection and audit;
    - (B) prepare and submit to the [Secretary](/usc/7/7102.md?p=25), from time to time, such reports as the [Secretary](/usc/7/7102.md?p=25) may prescribe; and
    - (C) account for the receipt and disbursement of all funds entrusted to the [Board](/usc/7/7102.md?p=1).
  - (2) **Audit—** The [Board](/usc/7/7102.md?p=1) shall cause books and records of the [Board](/usc/7/7102.md?p=1) related to the [order](/usc/7/7102.md?p=15) to be audited by an independent auditor at the end of each fiscal year. The [Board](/usc/7/7102.md?p=1) shall submit a report of the audit to the [Secretary](/usc/7/7102.md?p=25).
- (k) **Investment of funds—**
  - (1) **In general—** The [order](/usc/7/7102.md?p=15) shall provide that the [Board](/usc/7/7102.md?p=1) may invest, pending disbursement, funds the [Board](/usc/7/7102.md?p=1) receives under the [order](/usc/7/7102.md?p=15), only in—
    - (A) obligations of the [United States](/usc/7/7102.md?p=30) or any agency of the [United States](/usc/7/7102.md?p=30);
    - (B) general obligations of any [State](/usc/7/7102.md?p=28) or any political subdivision of a [State](/usc/7/7102.md?p=28);
    - (C) 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
    - (D) obligations fully guaranteed as to principal and interest by the [United States](/usc/7/7102.md?p=30).
  - (2) **Use of income—** Income from any investment under [paragraph (1)](#k-1) may be used for any purpose for which the invested funds may be used.
- (l) **Prohibition on use of funds—**
  - (1) **In general—** Except as provided in [paragraph (2)](#l-2), the [order](/usc/7/7102.md?p=15) shall prohibit any funds collected by the [Board](/usc/7/7102.md?p=1) under the [order](/usc/7/7102.md?p=15) from being used in any manner for the purpose of influencing legislation or government action or policy.
  - (2) **Exceptions—** [Paragraph (1)](#l-1) shall not apply to—
    - (A) the development and recommendation to the [Secretary](/usc/7/7102.md?p=25) of amendments to the [order](/usc/7/7102.md?p=15); or
    - (B) the communication to appropriate government officials, in response to a request made by the officials, of information relating to the conduct, implementation, or results of [promotion](/usc/7/7102.md?p=20), [research](/usc/7/7102.md?p=24), [consumer information](/usc/7/7102.md?p=3), [education](/usc/7/7102.md?p=7), [industry information](/usc/7/7102.md?p=14), or [producer information](/usc/7/7102.md?p=19) activities under the [order](/usc/7/7102.md?p=15).
  - (3) **False or misleading claims—** A plan or project conducted under this chapter shall not make false or misleading claims on behalf of [sheep](/usc/7/7102.md?p=26) or [sheep products](/usc/7/7102.md?p=27) or against a competing product.
- (m) **Books and records—**
  - (1) **In general—** The [order](/usc/7/7102.md?p=15) shall require that each [person](/usc/7/7102.md?p=16) making payment to a [producer](/usc/7/7102.md?p=18), [feeder](/usc/7/7102.md?p=10), or [handler](/usc/7/7102.md?p=12) for [sheep](/usc/7/7102.md?p=26) or [sheep products](/usc/7/7102.md?p=27), each [importer](/usc/7/7102.md?p=13) and [exporter](/usc/7/7102.md?p=9) of [sheep](/usc/7/7102.md?p=26) or [sheep products](/usc/7/7102.md?p=27), and each [person](/usc/7/7102.md?p=16) marketing [sheep products](/usc/7/7102.md?p=27) of the [person](/usc/7/7102.md?p=16)’s own production to maintain, and make available for inspection, such books and records as may be required by the [order](/usc/7/7102.md?p=15) and file reports at the time, in the manner, and having the content prescribed by the [order](/usc/7/7102.md?p=15).
  - (2) **Use of information—**
    - (A) **In general—** Information from the records or reports shall be made available to the [Secretary](/usc/7/7102.md?p=25) for the administration or enforcement of this chapter, or any [order](/usc/7/7102.md?p=15) or regulation issued under this chapter.
    - (B) **Other information—** The [Secretary](/usc/7/7102.md?p=25) shall authorize the use under this chapter of information regarding [persons](/usc/7/7102.md?p=16) paying [producers](/usc/7/7102.md?p=18), [feeders](/usc/7/7102.md?p=10), [importers](/usc/7/7102.md?p=13), [handlers](/usc/7/7102.md?p=12), or [processors](/usc/7/7102.md?p=17) that is accumulated under a law or regulation other than this chapter or a regulation issued under this chapter.
  - (3) **Confidentiality—**
    - (A) **In general—** Except as otherwise provided in this chapter, all information obtained under paragraph [(1)](#m-1) or [(2)](#m-2) shall be kept confidential by all officers and employees of the [Department](/usc/7/7102.md?p=6) and of the [Board](/usc/7/7102.md?p=1).
    - (B) **Disclosure—** Information referred to in [subparagraph (A)](#m-3-A) may be disclosed only if—
      - (i) the [Secretary](/usc/7/7102.md?p=25) considers the information relevant;
      - (ii) the information is revealed in a judicial proceeding or administrative hearing brought at the direction or on the request of the [Secretary](/usc/7/7102.md?p=25) or to which the [Secretary](/usc/7/7102.md?p=25) or any officer of the [Department](/usc/7/7102.md?p=6) is a party; and
      - (iii) the information relates to this chapter.
    - (C) **General statements—** Nothing in this paragraph prohibits—
      - (i) the issuance of general statements, based on the reports, of the number of [persons](/usc/7/7102.md?p=16) subject to an [order](/usc/7/7102.md?p=15) or statistical data collected from the [persons](/usc/7/7102.md?p=16), which statements do not identify the information furnished by any [person](/usc/7/7102.md?p=16); or
      - (ii) the publication, by direction of the [Secretary](/usc/7/7102.md?p=25), of the name of any [person](/usc/7/7102.md?p=16) violating any [order](/usc/7/7102.md?p=15) and a statement of the particular provisions of the [order](/usc/7/7102.md?p=15) violated by the [person](/usc/7/7102.md?p=16).
    - (D) **Administration—** No information obtained under this chapter may be made available to any agency or officer of the Federal Government for any purpose other than the implementation of this chapter or any investigatory or enforcement action necessary for the implementation of this chapter.
    - (E) **Penalty—** Any [person](/usc/7/7102.md?p=16) who willfully violates this paragraph, 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 the [person](/usc/7/7102.md?p=16) is an officer or employee of the [Board](/usc/7/7102.md?p=1) or the [Department](/usc/7/7102.md?p=6), shall be removed from office.
- (n) **Other terms and conditions—** The [order](/usc/7/7102.md?p=15) shall provide such terms and conditions, not inconsistent with this section, as are necessary to carry out the [order](/usc/7/7102.md?p=15), including provisions for the assessment of a penalty for the late payment of an assessment due under the [order](/usc/7/7102.md?p=15).

## Source credit

(Pub. L. 103–407, § 5, Oct. 22, 1994, 108 Stat. 4213.)