--- kind: "section" citation: "7 U.S.C. § 7416" title: "7" title_heading: "Agriculture" number: "7416" heading: "Assessments" release: "119-102" date: "2026-07-12" url: "https://uscodex.org/usc/7/7416" units: - "Chapter 101 — Agricultural Promotion" - "Subchapter II — Issuance of Orders for Promotion, Research, and Information Activities Regarding Agricultural Commodities" --- # §7416. Assessments - (a) **Assessments authorized—** While an [order](/usc/7/7412.md?p=9) issued under this subchapter is in effect with respect to an [agricultural commodity](/usc/7/7412.md?p=1), assessments shall be— - (1) paid by [first handlers](/usc/7/7412.md?p=5) with respect to the [agricultural commodity](/usc/7/7412.md?p=1) produced and marketed in the [United States](/usc/7/7412.md?p=18); and - (2) paid by [importers](/usc/7/7412.md?p=6) with respect to the [agricultural commodity](/usc/7/7412.md?p=1) imported into the [United States](/usc/7/7412.md?p=18), if the imported [agricultural commodity](/usc/7/7412.md?p=1) is covered by the [order](/usc/7/7412.md?p=9) pursuant to [section 7415(f) of this title](/usc/7/7415.md?p=f). - (b) **Collection—** Assessments required under an [order](/usc/7/7412.md?p=9) shall be remitted to the [board](/usc/7/7412.md?p=2) established under the [order](/usc/7/7412.md?p=9) at the time and in the manner prescribed by the [order](/usc/7/7412.md?p=9). - (c) **Limitation on assessments—** Not more than 1 assessment may be levied on a [first handler](/usc/7/7412.md?p=5) or [importer](/usc/7/7412.md?p=6) under [subsection (a)](#a) with respect to any [agricultural commodity](/usc/7/7412.md?p=1). - (d) **Assessment rates—** The [board](/usc/7/7412.md?p=2) shall recommend to the [Secretary](/usc/7/7412.md?p=14) 1 or more rates of assessment to be levied under [subsection (a)](#a). If approved by the [Secretary](/usc/7/7412.md?p=14), the rates shall take effect. An [order](/usc/7/7412.md?p=9) may provide that an assessment rate may not be increased unless approved by a referendum conducted pursuant to [section 7417 of this title](/usc/7/7417.md). - (e) **Late-payment and interest charges—** - (1) **In general—** Late-payment and interest charges may be levied on each [person](/usc/7/7412.md?p=10) subject to an [order](/usc/7/7412.md?p=9) who fails to remit an assessment in accordance with [subsection (b)](#b). - (2) **Rate—** The rate for the charges shall be specified by the [Secretary](/usc/7/7412.md?p=14). - (f) **Investment of assessments—** Pending disbursement of assessments under a budget approved by the [Secretary](/usc/7/7412.md?p=14), a [board](/usc/7/7412.md?p=2) may invest assessments collected under this section in— - (1) obligations of the [United States](/usc/7/7412.md?p=18) or any agency of the [United States](/usc/7/7412.md?p=18); - (2) general obligations of any [State](/usc/7/7412.md?p=15) or any political subdivision of a [State](/usc/7/7412.md?p=15); - (3) interest-bearing accounts or certificates of deposit of financial institutions that are members of the Federal Reserve System; or - (4) obligations fully guaranteed as to principal and interest by the [United States](/usc/7/7412.md?p=18). - (g) **Refund of assessments from escrow account—** - (1) **Escrow account—** During the period beginning on the effective date of an [order](/usc/7/7412.md?p=9) and ending on the date the [Secretary](/usc/7/7412.md?p=14) announces the results of a referendum that is conducted under [section 7417(b)(1) of this title](/usc/7/7417.md?p=b-1) with respect to the [order](/usc/7/7412.md?p=9), the [board](/usc/7/7412.md?p=2) established under the [order](/usc/7/7412.md?p=9) shall— - (A) establish and maintain an escrow account of the kind described in [subsection (f)(3)](#f-3) to be used to refund assessments; and - (B) deposit funds in the account in accordance with [paragraph (2)](#g-2). - (2) **Amount to be deposited—** The [board](/usc/7/7412.md?p=2) shall deposit in the account an amount equal to 10 percent of the assessments collected during the period referred to in [paragraph (1)](#g-1). - (3) **Right to receive refund—** Subject to paragraphs [(4)](#g-4), [(5)](#g-5), and [(6)](#g-6), [persons](/usc/7/7412.md?p=10) subject to an [order](/usc/7/7412.md?p=9) shall be eligible to demand a refund of assessments collected during the period referred to in [paragraph (1)](#g-1) if— - (A) the assessments were remitted on behalf of the [person](/usc/7/7412.md?p=10); and - (B) the [order](/usc/7/7412.md?p=9) is not approved in the referendum. - (4) **Form of demand—** The demand for a refund shall be made at such time and in such form as specified by the [order](/usc/7/7412.md?p=9). - (5) **Payment of refund—** A [person](/usc/7/7412.md?p=10) entitled to a refund shall be paid promptly after the [board](/usc/7/7412.md?p=2) receives satisfactory proof that the assessment for which the refund is demanded was paid on behalf of the [person](/usc/7/7412.md?p=10) who makes the demand. - (6) **Proration—** If the funds in the escrow account required by [paragraph (1)](#g-1) are insufficient to pay the amount of all refunds that [persons](/usc/7/7412.md?p=10) subject to an [order](/usc/7/7412.md?p=9) otherwise would have a right to receive under this subsection, the [board](/usc/7/7412.md?p=2) shall prorate the amount of the funds among all the [persons](/usc/7/7412.md?p=10). - (7) **Closing of escrow account—** If the [order](/usc/7/7412.md?p=9) is approved in a referendum conducted under [section 7417(b)(1) of this title](/usc/7/7417.md?p=b-1)— - (A) the escrow account shall be closed; and - (B) the funds shall be available to the [board](/usc/7/7412.md?p=2) for disbursement as authorized in the [order](/usc/7/7412.md?p=9). ## Source credit (Pub. L. 104–127, title V, § 517, Apr. 4, 1996, 110 Stat. 1042.)