---
kind: "section"
citation: "7 U.S.C. § 7414"
title: "7"
title_heading: "Agriculture"
number: "7414"
heading: "Required terms in orders"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/7/7414"
units:
  - "Chapter 101 — Agricultural Promotion"
  - "Subchapter II — Issuance of Orders for Promotion, Research, and Information Activities Regarding Agricultural Commodities"
---

# §7414. Required terms in orders

- (a) **In general—** Each [order](/usc/7/7412.md?p=9) shall contain the terms and conditions specified in this section.
- (b) **Board—**
  - (1) **Establishment—** Each [order](/usc/7/7412.md?p=9) shall establish a [board](/usc/7/7412.md?p=2) to carry out a program of generic [promotion](/usc/7/7412.md?p=12), [research](/usc/7/7412.md?p=13), and [information](/usc/7/7412.md?p=7) regarding the [agricultural commodity](/usc/7/7412.md?p=1) covered by the [order](/usc/7/7412.md?p=9) and intended to effectuate the purpose of this subchapter.
  - (2) **Board membership—**
    - (A) **Number of members—** Each [board](/usc/7/7412.md?p=2) shall consist of the number of members considered by the [Secretary](/usc/7/7412.md?p=14), in consultation with the [agricultural commodity](/usc/7/7412.md?p=1) industry involved, to be appropriate to administer the [order](/usc/7/7412.md?p=9). In addition to members, the [Secretary](/usc/7/7412.md?p=14) may also provide for alternates on the [board](/usc/7/7412.md?p=2).
    - (B) **Appointment—** The [Secretary](/usc/7/7412.md?p=14) shall appoint the members and any alternates of a [board](/usc/7/7412.md?p=2) from among [producers](/usc/7/7412.md?p=11) of the [agricultural commodity](/usc/7/7412.md?p=1) and [first handlers](/usc/7/7412.md?p=5) and others in the marketing chain as appropriate. If imports of the [agricultural commodity](/usc/7/7412.md?p=1) covered by an [order](/usc/7/7412.md?p=9) are subject to assessment under [section 7415(f) of this title](/usc/7/7415.md?p=f), the [Secretary](/usc/7/7412.md?p=14) shall also appoint [importers](/usc/7/7412.md?p=6) as members of the [board](/usc/7/7412.md?p=2) and as alternates if alternates are included on the [board](/usc/7/7412.md?p=2). The [Secretary](/usc/7/7412.md?p=14) may appoint 1 or more members of the general public to each [board](/usc/7/7412.md?p=2).
    - (C) **Nominations—** The [Secretary](/usc/7/7412.md?p=14) may make appointments from nominations made pursuant to the method set forth in the [order](/usc/7/7412.md?p=9).
    - (D) **Geographical representation—** To ensure fair and equitable representation of the [agricultural commodity](/usc/7/7412.md?p=1) industry covered by an [order](/usc/7/7412.md?p=9), the composition of each [board](/usc/7/7412.md?p=2) shall reflect the geographical distribution of the production of the [agricultural commodity](/usc/7/7412.md?p=1) involved in the [United States](/usc/7/7412.md?p=18) and the quantity or value of the [agricultural commodity](/usc/7/7412.md?p=1) imported into the [United States](/usc/7/7412.md?p=18).
  - (3) **Reapportionment of board membership—** In accordance with rules issued by the [Secretary](/usc/7/7412.md?p=14), at least once in each 5-year period, but not more frequently than once in each 3-year period, each [board](/usc/7/7412.md?p=2) shall—
    - (A) review the geographical distribution in the [United States](/usc/7/7412.md?p=18) of the production of the [agricultural commodity](/usc/7/7412.md?p=1) covered by the [order](/usc/7/7412.md?p=9) involved and the quantity or value of the [agricultural commodity](/usc/7/7412.md?p=1) imported into the [United States](/usc/7/7412.md?p=18); and
    - (B) if warranted, recommend to the [Secretary](/usc/7/7412.md?p=14) the reapportionment of the [board](/usc/7/7412.md?p=2) membership to reflect changes in the geographical distribution of the production of the [agricultural commodity](/usc/7/7412.md?p=1) and the quantity or value of the imported [agricultural commodity](/usc/7/7412.md?p=1).
  - (4) **Notice—**
    - (A) **Vacancies—** Each [order](/usc/7/7412.md?p=9) shall provide for notice of [board](/usc/7/7412.md?p=2) vacancies to the [agricultural commodity](/usc/7/7412.md?p=1) industry involved.
    - (B) **Meetings—** Each [board](/usc/7/7412.md?p=2) shall provide the [Secretary](/usc/7/7412.md?p=14) with prior notice of meetings of the [board](/usc/7/7412.md?p=2) to permit the [Secretary](/usc/7/7412.md?p=14), or a designated representative of the [Secretary](/usc/7/7412.md?p=14), to attend the meetings.
  - (5) **Term of office—**
    - (A) **In general—** The members and any alternates of a [board](/usc/7/7412.md?p=2) shall each serve for a term of 3 years, except that the members and any alternates initially appointed to a [board](/usc/7/7412.md?p=2) shall serve for terms of not more than 2, 3, and 4 years, as specified by the [order](/usc/7/7412.md?p=9).
    - (B) **Limitation on consecutive terms—** A member or alternate may serve not more than 2 consecutive terms.
    - (C) **Continuation of term—** Notwithstanding [subparagraph (B)](#b-5-B), each member or alternate shall continue to serve until a successor is appointed by the [Secretary](/usc/7/7412.md?p=14).
    - (D) **Vacancies—** A vacancy arising before the expiration of a term of office of an incumbent member or alternate of a [board](/usc/7/7412.md?p=2) shall be filled in a manner provided for in the [order](/usc/7/7412.md?p=9).
  - (6) **Compensation—**
    - (A) **In general—** Members and any alternates of a [board](/usc/7/7412.md?p=2) shall serve without compensation.
    - (B) **Travel expenses—** If approved by a [board](/usc/7/7412.md?p=2), members or alternates shall be reimbursed for reasonable travel expenses, which may include a per diem allowance or actual subsistence incurred while away from their homes or regular places of business in the performance of services for the [board](/usc/7/7412.md?p=2).
- (c) **Powers and duties of board—** Each [order](/usc/7/7412.md?p=9) shall specify the powers and duties of the [board](/usc/7/7412.md?p=2) established under the [order](/usc/7/7412.md?p=9), which shall include the power and duty—
  - (1) to administer the [order](/usc/7/7412.md?p=9) in accordance with its terms and conditions and to collect assessments;
  - (2) to develop and recommend to the [Secretary](/usc/7/7412.md?p=14) for approval such bylaws as may be necessary for the functioning of the [board](/usc/7/7412.md?p=2) and such rules as may be necessary to administer the [order](/usc/7/7412.md?p=9), including activities authorized to be carried out under the [order](/usc/7/7412.md?p=9);
  - (3) to meet, organize, and select from among the members of the [board](/usc/7/7412.md?p=2) a chairperson, other officers, and committees and subcommittees, as the [board](/usc/7/7412.md?p=2) determines to be appropriate;
  - (4) to [employ](/usc/7/499a.md?p=b-10) [persons](/usc/7/7412.md?p=10), other than the members, as the [board](/usc/7/7412.md?p=2) considers necessary to assist the [board](/usc/7/7412.md?p=2) in carrying out its duties, and to determine the compensation and specify the duties of the [persons](/usc/7/7412.md?p=10);
  - (5) subject to [subsection (e)](#e), to develop and carry out generic [promotion](/usc/7/7412.md?p=12), [research](/usc/7/7412.md?p=13), and [information](/usc/7/7412.md?p=7) activities relating to the [agricultural commodity](/usc/7/7412.md?p=1) covered by the [order](/usc/7/7412.md?p=9);
  - (6) to prepare and submit for the approval of the [Secretary](/usc/7/7412.md?p=14), before the beginning of each fiscal year, rates of assessment under [section 7416 of this title](/usc/7/7416.md) and an annual budget of the anticipated expenses to be incurred in the administration of the [order](/usc/7/7412.md?p=9), including the probable cost of each [promotion](/usc/7/7412.md?p=12), [research](/usc/7/7412.md?p=13), and [information](/usc/7/7412.md?p=7) activity proposed to be developed or carried out by the [board](/usc/7/7412.md?p=2);
  - (7) to borrow funds necessary for the startup expenses of the [order](/usc/7/7412.md?p=9);
  - (8) subject to [subsection (f)](#f), to enter into contracts or agreements to develop and carry out generic [promotion](/usc/7/7412.md?p=12), [research](/usc/7/7412.md?p=13), and [information](/usc/7/7412.md?p=7) activities relating to the [agricultural commodity](/usc/7/7412.md?p=1) covered by the [order](/usc/7/7412.md?p=9);
  - (9) to pay the cost of the activities with assessments collected under [section 7416 of this title](/usc/7/7416.md), earnings from invested assessments, and other funds;
  - (10) to keep records that accurately reflect the actions and transactions of the [board](/usc/7/7412.md?p=2), to keep and report minutes of each meeting of the [board](/usc/7/7412.md?p=2) to the [Secretary](/usc/7/7412.md?p=14), and to furnish the [Secretary](/usc/7/7412.md?p=14) with any [information](/usc/7/7412.md?p=7) or records the [Secretary](/usc/7/7412.md?p=14) requests;
  - (11) to receive, investigate, and report to the [Secretary](/usc/7/7412.md?p=14) complaints of violations of the [order](/usc/7/7412.md?p=9); and
  - (12) to recommend to the [Secretary](/usc/7/7412.md?p=14) such amendments to the [order](/usc/7/7412.md?p=9) as the [board](/usc/7/7412.md?p=2) considers appropriate.
- (d) **Prohibited activities—** A [board](/usc/7/7412.md?p=2) may not engage in, and shall prohibit the employees and agents of the [board](/usc/7/7412.md?p=2) from engaging in—
  - (1) any action that would be a [conflict of interest](/usc/7/7412.md?p=3);
  - (2) using funds collected by the [board](/usc/7/7412.md?p=2) under the [order](/usc/7/7412.md?p=9), any action undertaken for the purpose of influencing any legislation or governmental action or policy other than recommending to the [Secretary](/usc/7/7412.md?p=14) amendments to the [order](/usc/7/7412.md?p=9); and
  - (3) any advertising, including [promotion](/usc/7/7412.md?p=12), [research](/usc/7/7412.md?p=13), and [information](/usc/7/7412.md?p=7) activities authorized to be carried out under the [order](/usc/7/7412.md?p=9), that may be false or misleading or disparaging to another [agricultural commodity](/usc/7/7412.md?p=1).
- (e) **Activities and budgets—**
  - (1) **Activities—** Each [order](/usc/7/7412.md?p=9) shall require the [board](/usc/7/7412.md?p=2) established under the [order](/usc/7/7412.md?p=9) to submit to the [Secretary](/usc/7/7412.md?p=14) for approval plans and projects for [promotion](/usc/7/7412.md?p=12), [research](/usc/7/7412.md?p=13), or [information](/usc/7/7412.md?p=7) relating to the [agricultural commodity](/usc/7/7412.md?p=1) covered by the [order](/usc/7/7412.md?p=9).
  - (2) **Budgets—**
    - (A) **Submission to Secretary—** Each [order](/usc/7/7412.md?p=9) shall require the [board](/usc/7/7412.md?p=2) established under the [order](/usc/7/7412.md?p=9) to submit to the [Secretary](/usc/7/7412.md?p=14) for approval a budget of its anticipated annual expenses and disbursements to be paid to administer the [order](/usc/7/7412.md?p=9). The budget shall be submitted before the beginning of a fiscal year and as frequently as may be necessary after the beginning of the fiscal year.
    - (B) **Reimbursement of Secretary—** Each [order](/usc/7/7412.md?p=9) shall require that the [Secretary](/usc/7/7412.md?p=14) be reimbursed for all expenses incurred by the [Secretary](/usc/7/7412.md?p=14) in the implementation, administration, and supervision of the [order](/usc/7/7412.md?p=9), including all referenda costs incurred in connection with the [order](/usc/7/7412.md?p=9).
  - (3) **Incurring expenses—** A [board](/usc/7/7412.md?p=2) may incur the expenses described in [paragraph (2)](#e-2) and other expenses for the administration, maintenance, and functioning of the [board](/usc/7/7412.md?p=2) as authorized by the [Secretary](/usc/7/7412.md?p=14).
  - (4) **Payment of expenses—** Expenses incurred under [paragraph (3)](#e-3) shall be paid by a [board](/usc/7/7412.md?p=2) using assessments collected under [section 7416 of this title](/usc/7/7416.md), earnings obtained from assessments, and other income of the [board](/usc/7/7412.md?p=2). Any funds borrowed by the [board](/usc/7/7412.md?p=2) shall be expended only for startup costs and capital outlays.
  - (5) **Limitation on spending—** For fiscal years beginning 3 or more years after the date of the establishment of a [board](/usc/7/7412.md?p=2), the [board](/usc/7/7412.md?p=2) may not expend for administration (except for reimbursements to the [Secretary](/usc/7/7412.md?p=14) required under [paragraph (2)(B)](#e-2-B)), maintenance, and functioning of the [board](/usc/7/7412.md?p=2) in a fiscal year an amount that exceeds 15 percent of the assessment and other income received by the [board](/usc/7/7412.md?p=2) for the fiscal year.
- (f) **Contracts and agreements—**
  - (1) **In general—** Each [order](/usc/7/7412.md?p=9) shall provide that, with the approval of the [Secretary](/usc/7/7412.md?p=14), the [board](/usc/7/7412.md?p=2) established under the [order](/usc/7/7412.md?p=9) may—
    - (A) enter into contracts and agreements to carry out generic [promotion](/usc/7/7412.md?p=12), [research](/usc/7/7412.md?p=13), and [information](/usc/7/7412.md?p=7) activities relating to the [agricultural commodity](/usc/7/7412.md?p=1) covered by the [order](/usc/7/7412.md?p=9), including contracts and agreements with [producer](/usc/7/7412.md?p=11) associations or other entities as considered appropriate by the [Secretary](/usc/7/7412.md?p=14); and
    - (B) pay the cost of approved generic [promotion](/usc/7/7412.md?p=12), [research](/usc/7/7412.md?p=13), and [information](/usc/7/7412.md?p=7) activities using assessments collected under [section 7416 of this title](/usc/7/7416.md), earnings obtained from assessments, and other income of the [board](/usc/7/7412.md?p=2).
  - (2) **Requirements—** Each contract or agreement shall provide that any [person](/usc/7/7412.md?p=10) who enters into the contract or agreement with the [board](/usc/7/7412.md?p=2) shall—
    - (A) develop and submit to the [board](/usc/7/7412.md?p=2) a proposed activity together with a budget that specifies the cost to be incurred to carry out the activity;
    - (B) keep accurate records of all of its transactions relating to the contract or agreement;
    - (C) account for funds received and expended in connection with the contract or agreement;
    - (D) make periodic reports to the [board](/usc/7/7412.md?p=2) of activities conducted under the contract or agreement; and
    - (E) make such other reports as the [board](/usc/7/7412.md?p=2) or the [Secretary](/usc/7/7412.md?p=14) considers relevant.
- (g) **Records of board—**
  - (1) **In general—** Each [order](/usc/7/7412.md?p=9) shall require the [board](/usc/7/7412.md?p=2) established under the [order](/usc/7/7412.md?p=9)—
    - (A) to maintain such records as the [Secretary](/usc/7/7412.md?p=14) may require and to make the records available to the [Secretary](/usc/7/7412.md?p=14) for inspection and audit;
    - (B) to collect and submit to the [Secretary](/usc/7/7412.md?p=14), at any time the [Secretary](/usc/7/7412.md?p=14) may specify, any [information](/usc/7/7412.md?p=7) the [Secretary](/usc/7/7412.md?p=14) may request; and
    - (C) to account for the receipt and disbursement of all funds in the possession, or under the control, of the [board](/usc/7/7412.md?p=2).
  - (2) **Audits—** Each [order](/usc/7/7412.md?p=9) shall require the [board](/usc/7/7412.md?p=2) established under the [order](/usc/7/7412.md?p=9) to have—
    - (A) its records audited by an independent auditor at the end of each fiscal year; and
    - (B) a report of the audit submitted directly to the [Secretary](/usc/7/7412.md?p=14).
- (h) **Periodic evaluation—** In accordance with [section 7401(c) of this title](/usc/7/7401.md?p=c), each [order](/usc/7/7412.md?p=9) shall require the [board](/usc/7/7412.md?p=2) established under the [order](/usc/7/7412.md?p=9) to provide for the independent evaluation of all generic [promotion](/usc/7/7412.md?p=12), [research](/usc/7/7412.md?p=13), and [information](/usc/7/7412.md?p=7) activities undertaken under the [order](/usc/7/7412.md?p=9).
- (i) **Books and records of persons covered by order—**
  - (1) **In general—** Each [order](/usc/7/7412.md?p=9) shall require that [producers](/usc/7/7412.md?p=11), [first handlers](/usc/7/7412.md?p=5) and other [persons](/usc/7/7412.md?p=10) in the marketing chain as appropriate, and [importers](/usc/7/7412.md?p=6) covered by the [order](/usc/7/7412.md?p=9) shall—
    - (A) maintain records sufficient to ensure compliance with the [order](/usc/7/7412.md?p=9) and regulations;
    - (B) submit to the [board](/usc/7/7412.md?p=2) established under the [order](/usc/7/7412.md?p=9) any [information](/usc/7/7412.md?p=7) required by the [board](/usc/7/7412.md?p=2) to carry out its responsibilities under the [order](/usc/7/7412.md?p=9); and
    - (C) make the records described in [subparagraph (A)](#i-1-A) available, during normal business hours, for inspection by employees or agents of the [board](/usc/7/7412.md?p=2) or the [Department](/usc/7/7412.md?p=4), including any records necessary to verify [information](/usc/7/7412.md?p=7) required under [subparagraph (B)](#i-1-B).
  - (2) **Time requirement—** Any record required to be maintained under [paragraph (1)](#i-1) shall be maintained for such time period as the [Secretary](/usc/7/7412.md?p=14) may prescribe.
  - (3) **Other information—** The [Secretary](/usc/7/7412.md?p=14) may use, and may authorize the [board](/usc/7/7412.md?p=2) to use under this subchapter, [information](/usc/7/7412.md?p=7) regarding [persons](/usc/7/7412.md?p=10) subject to an [order](/usc/7/7412.md?p=9) that is collected by the [Department](/usc/7/7412.md?p=4) under any other law.
  - (4) **Confidentiality of information—**
    - (A) **In general—** Except as otherwise provided in this subchapter, all [information](/usc/7/7412.md?p=7) obtained under [paragraph (1)](#i-1) or as part of a referendum under [section 7417 of this title](/usc/7/7417.md) shall be kept confidential by all officers, employees, and agents of the [Department](/usc/7/7412.md?p=4) and of the [board](/usc/7/7412.md?p=2).
    - (B) **Disclosure—** [Information](/usc/7/7412.md?p=7) referred to in [subparagraph (A)](#i-4-A) may be disclosed only if—
      - (i) the [Secretary](/usc/7/7412.md?p=14) considers the [information](/usc/7/7412.md?p=7) relevant; and
      - (ii) the [information](/usc/7/7412.md?p=7) is revealed in a judicial proceeding or administrative hearing brought at the direction or on the request of the [Secretary](/usc/7/7412.md?p=14) or to which the [Secretary](/usc/7/7412.md?p=14) or any officer of the [Department](/usc/7/7412.md?p=4) is a party.
    - (C) **Other exceptions—** This paragraph shall not prohibit—
      - (i) the issuance of general statements based on reports or on [information](/usc/7/7412.md?p=7) relating to a number of [persons](/usc/7/7412.md?p=10) subject to an [order](/usc/7/7412.md?p=9) if the statements do not identify the [information](/usc/7/7412.md?p=7) furnished by any [person](/usc/7/7412.md?p=10); or
      - (ii) the publication, by direction of the [Secretary](/usc/7/7412.md?p=14), of the name of any [person](/usc/7/7412.md?p=10) violating any [order](/usc/7/7412.md?p=9) and a statement of the particular provisions of the [order](/usc/7/7412.md?p=9) violated by the [person](/usc/7/7412.md?p=10).
    - (D) **Penalty—** Any [person](/usc/7/7412.md?p=10) who willfully violates this subsection shall be subject, on conviction, to a fine of not more than $1,000 or to imprisonment for not more than 1 year, or both.
  - (5) **Withholding information—** This subsection shall not authorize the withholding of [information](/usc/7/7412.md?p=7) from Congress.

## Source credit

(Pub. L. 104–127, title V, § 515, Apr. 4, 1996, 110 Stat. 1036.)