---
kind: "section"
citation: "7 U.S.C. § 7804"
title: "7"
title_heading: "Agriculture"
number: "7804"
heading: "Required terms in orders"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/7/7804"
units:
  - "Chapter 105 — Hass Avocado Promotion, Research, and Information"
---

# §7804. Required terms in orders

- (a) **In general—** An [order](/usc/7/7802.md?p=10) shall contain the terms and provisions specified in this section.
- (b) **Hass Avocado Board—**
  - (1) **Establishment and membership—**
    - (A) **Establishment—** The [order](/usc/7/7802.md?p=10) shall provide for the establishment of a [Hass Avocado](/usc/7/7802.md?p=6-A) [Board](/usc/7/7802.md?p=1), consisting of 12 members, to administer the [order](/usc/7/7802.md?p=10).
    - (B) **Membership—**
      - (i) **Appointment—** The [order](/usc/7/7802.md?p=10) shall provide that members of the [Board](/usc/7/7802.md?p=1) shall be appointed by the [Secretary](/usc/7/7802.md?p=15) from nominations submitted as provided in this subsection.
      - (ii) **Composition—** The [Board](/usc/7/7802.md?p=1) shall consist of participating domestic [producers](/usc/7/7802.md?p=12) and [importers](/usc/7/7802.md?p=8).
    - (C) **Special definition of importer—** In this subsection, the term “[importer](/usc/7/7802.md?p=8)” means a [person](/usc/7/7802.md?p=11) who is involved in, as a substantial activity, the importation, sale, and marketing of [Hass avocados](/usc/7/7802.md?p=6-A) in the [United States](/usc/7/7802.md?p=17) (either directly or as an agent, [broker](/usc/7/499a.md?p=b-7), or consignee of any [person](/usc/7/7802.md?p=11) or nation that produces or handles [Hass avocados](/usc/7/7802.md?p=6-A) outside the [United States](/usc/7/7802.md?p=17) for sale in the [United States](/usc/7/7802.md?p=17)), and who is subject to assessments under the [order](/usc/7/7802.md?p=10).
  - (2) **Distribution of appointments—**
    - (A) **In general—** The [order](/usc/7/7802.md?p=10) shall provide that the membership of the [Board](/usc/7/7802.md?p=1) shall consist of the following:
      - (i) Seven members who are domestic [producers](/usc/7/7802.md?p=12) of [Hass avocados](/usc/7/7802.md?p=6-A) and are subject to assessments under the [order](/usc/7/7802.md?p=10).
      - (ii) Two members who represent [importers](/usc/7/7802.md?p=8) of [Hass avocados](/usc/7/7802.md?p=6-A) and are subject to assessments under the [order](/usc/7/7802.md?p=10).
      - (iii) Three members who are domestic [producers](/usc/7/7802.md?p=12) of [Hass avocados](/usc/7/7802.md?p=6-A) and are subject to assessments under the [order](/usc/7/7802.md?p=10), or are [importers](/usc/7/7802.md?p=8) of [Hass avocados](/usc/7/7802.md?p=6-A) and are subject to assessments under the [order](/usc/7/7802.md?p=10), to reflect the proportion of domestic production and imports supplying the [United States](/usc/7/7802.md?p=17) [market](/usc/7/198.md?p=1), which shall be based on the [Secretary](/usc/7/7802.md?p=15)’s determination of the average volume of domestic production of [Hass avocados](/usc/7/7802.md?p=6-A) proportionate to the average volume of imports of [Hass avocados](/usc/7/7802.md?p=6-A) in the [United States](/usc/7/7802.md?p=17) over the previous 3 years.
    - (B) **Adjustment in Board representation—** Three years after the assessment of [Hass avocados](/usc/7/7802.md?p=6-A) commences pursuant to an [order](/usc/7/7802.md?p=10), and at the end of each 3-year period thereafter, the [Avocado Board](/usc/7/7802.md?p=1) shall adjust the proportion of [producer](/usc/7/7802.md?p=12) representatives to [importer](/usc/7/7802.md?p=8) representatives on the [Board](/usc/7/7802.md?p=1) under [subparagraph (A)(iii)](#b-2-A-iii) on the basis of the amount of assessments collected from [producers](/usc/7/7802.md?p=12) and [importers](/usc/7/7802.md?p=8) over the immediately preceding 3-year period. Any adjustment under this subparagraph shall be subject to the review and approval of the [Secretary](/usc/7/7802.md?p=15).
  - (3) **Nomination process—** The [order](/usc/7/7802.md?p=10) shall provide that—
    - (A) two nominees shall be submitted for each appointment to the [Board](/usc/7/7802.md?p=1);
    - (B) nominations for each appointment of a [producer](/usc/7/7802.md?p=12) or an [importer](/usc/7/7802.md?p=8) shall be made by domestic [producers](/usc/7/7802.md?p=12) or [importers](/usc/7/7802.md?p=8), respectively—
      - (i) in the case of [producers](/usc/7/7802.md?p=12), through an election process which utilizes existing organizations of avocado [producers](/usc/7/7802.md?p=12) established pursuant to a [State](/usc/7/7802.md?p=16) statute, with approval by the [Secretary](/usc/7/7802.md?p=15); and
      - (ii) in the case of [importers](/usc/7/7802.md?p=8), nominations are submitted by [importers](/usc/7/7802.md?p=8) under such procedures as the [Secretary](/usc/7/7802.md?p=15) determines appropriate; and
    - (C) in any case in which [producers](/usc/7/7802.md?p=12) or [importers](/usc/7/7802.md?p=8) fail to nominate individuals for an appointment to the [Board](/usc/7/7802.md?p=1), the [Secretary](/usc/7/7802.md?p=15) may appoint an individual to fill the vacancy on a basis provided in the [order](/usc/7/7802.md?p=10) or other regulations of the [Secretary](/usc/7/7802.md?p=15).
  - (4) **Alternates—** The [order](/usc/7/7802.md?p=10) shall provide for the selection of alternate members of the [Board](/usc/7/7802.md?p=1) by the [Secretary](/usc/7/7802.md?p=15) in accordance with procedures specified in the [order](/usc/7/7802.md?p=10).
  - (5) **Terms—** The [order](/usc/7/7802.md?p=10) shall provide that—
    - (A) each term of appointment to the [Board](/usc/7/7802.md?p=1) shall be for 3 years, except that, of the initial appointments, four of the appointments shall be for 2-year terms, four of the appointments shall be for 3-year terms, and four of the appointments shall be for 4-year terms; and
    - (B) no member of the [Board](/usc/7/7802.md?p=1) may serve more than 2 consecutive terms of 3 years, except that any member serving an initial term of 4 years may serve an additional term of 3 years.
  - (6) **Replacement—**
    - (A) **Disqualification from Board service—** The [order](/usc/7/7802.md?p=10) shall provide that if a member or alternate of the [Board](/usc/7/7802.md?p=1) who was appointed as a domestic [producer](/usc/7/7802.md?p=12) or [importer](/usc/7/7802.md?p=8) ceases to belong to the group for which such member was appointed, such member or alternate shall be disqualified from serving on the [Board](/usc/7/7802.md?p=1).
    - (B) **Manner of filling vacancy—** A vacancy arising as a result of disqualification or any other reason before the expiration of the term of office of an incumbent member or alternate of the [Board](/usc/7/7802.md?p=1) shall be filled in a manner provided in the [order](/usc/7/7802.md?p=10).
  - (7) **Compensation—** The [order](/usc/7/7802.md?p=10) shall provide that members and alternates of the [Board](/usc/7/7802.md?p=1) shall serve without compensation, but shall be reimbursed for the reasonable expenses incurred in performing duties as members or alternates of the [Board](/usc/7/7802.md?p=1).
- (c) **General responsibilities of the Avocado Board—** The [order](/usc/7/7802.md?p=10) shall define the general responsibilities of the [Avocado Board](/usc/7/7802.md?p=1), which shall include the responsibility to—
  - (1) administer the [order](/usc/7/7802.md?p=10) in accordance with the terms and provisions of the [order](/usc/7/7802.md?p=10);
  - (2) meet, organize, and select from among the members of the [Board](/usc/7/7802.md?p=1) a chairperson, other officers, and committees and subcommittees, as the [Board](/usc/7/7802.md?p=1) determines to be appropriate;
  - (3) recommend to the [Secretary](/usc/7/7802.md?p=15) rules and regulations to effectuate the terms and provisions of the [order](/usc/7/7802.md?p=10);
  - (4) [employ](/usc/7/499a.md?p=b-10) such [persons](/usc/7/7802.md?p=11) as the [Board](/usc/7/7802.md?p=1) determines are necessary, and set the compensation and define the duties of the [persons](/usc/7/7802.md?p=11);
  - (5)
    - (A) develop budgets for the implementation of the [order](/usc/7/7802.md?p=10) and submit the budgets to the [Secretary](/usc/7/7802.md?p=15) for approval under [subsection (d)](#d); and
    - (B) propose and develop (or receive and evaluate), approve, and submit to the [Secretary](/usc/7/7802.md?p=15) for approval under [subsection (d)](#d) plans or projects for [Hass avocado](/usc/7/7802.md?p=6-A) [promotion](/usc/7/7802.md?p=13), [industry information](/usc/7/7802.md?p=9), [consumer information](/usc/7/7802.md?p=3), or related [research](/usc/7/7802.md?p=14);
  - (6)
    - (A) implement plans and projects for [Hass avocado](/usc/7/7802.md?p=6-A) [promotion](/usc/7/7802.md?p=13), [industry information](/usc/7/7802.md?p=9), [consumer information](/usc/7/7802.md?p=3), or related [research](/usc/7/7802.md?p=14), as provided in [subsection (d)](#d); or
    - (B) contract or enter into agreements with appropriate [persons](/usc/7/7802.md?p=11) to implement the plans and projects, as provided in [subsection (e)](#e), and pay the costs of the implementation, or contracts and agreement, with funds received under the [order](/usc/7/7802.md?p=10);
  - (7) evaluate on-going and completed plans and projects for [Hass avocado](/usc/7/7802.md?p=6-A) [promotion](/usc/7/7802.md?p=13), [industry information](/usc/7/7802.md?p=9), [consumer information](/usc/7/7802.md?p=3), or related [research](/usc/7/7802.md?p=14) and comply with the independent evaluation provisions of the Commodity [Promotion](/usc/7/7802.md?p=13), [Research](/usc/7/7802.md?p=14), and Information Act of 1996 (subtitle B of title V of Public Law 104–127 [[7 U.S.C. 7411](/usc/7/7411.md) et seq.]);
  - (8) receive, investigate, and report to the [Secretary](/usc/7/7802.md?p=15) complaints of violations of the [order](/usc/7/7802.md?p=10);
  - (9) recommend to the [Secretary](/usc/7/7802.md?p=15) amendments to the [order](/usc/7/7802.md?p=10);
  - (10) invest, pending disbursement under a plan or project, funds collected through assessments authorized under this chapter only in—
    - (A) obligations of the [United States](/usc/7/7802.md?p=17) or any agency of the [United States](/usc/7/7802.md?p=17);
    - (B) general obligations of any [State](/usc/7/7802.md?p=16) or any political subdivision of a [State](/usc/7/7802.md?p=16);
    - (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/7/7802.md?p=17), except that income from any such invested funds may be used only for a purpose for which the invested funds may be used;
  - (11) borrow funds necessary for the startup expenses of the [order](/usc/7/7802.md?p=10); and
  - (12) provide the [Secretary](/usc/7/7802.md?p=15) such information as the [Secretary](/usc/7/7802.md?p=15) may require.
- (d) **Budgets; plans and projects—**
  - (1) **Submission of budgets—** The [order](/usc/7/7802.md?p=10) shall require the [Board](/usc/7/7802.md?p=1) to submit to the [Secretary](/usc/7/7802.md?p=15) for approval budgets, on a fiscal year basis, of the anticipated expenses and disbursements of the [Board](/usc/7/7802.md?p=1) in the implementation of the [order](/usc/7/7802.md?p=10), including the projected costs of [Hass avocado](/usc/7/7802.md?p=6-A) [promotion](/usc/7/7802.md?p=13), [industry information](/usc/7/7802.md?p=9), [consumer information](/usc/7/7802.md?p=3), and related [research](/usc/7/7802.md?p=14) plans and projects.
  - (2) **Plans and projects—**
    - (A) **Promotion and consumer information—** The [order](/usc/7/7802.md?p=10) shall provide—
      - (i) for the establishment, implementation, administration, and evaluation of appropriate plans and projects for advertising, sales [promotion](/usc/7/7802.md?p=13), other [promotion](/usc/7/7802.md?p=13), and [consumer information](/usc/7/7802.md?p=3) with respect to [Hass avocados](/usc/7/7802.md?p=6-A), and for the disbursement of necessary funds for the purposes described in this clause; and
      - (ii) that any plan or project referred to in [clause (i)](#d-2-A-i) shall be directed toward increasing the general demand for [Hass avocados](/usc/7/7802.md?p=6-A) in the domestic marketplace.
    - (B) **Industry information—** The [order](/usc/7/7802.md?p=10) shall provide for the establishment, implementation, administration, and evaluation of appropriate plans and projects that will lead to the development of new [markets](/usc/7/198.md?p=1), maintain and expand existing [markets](/usc/7/198.md?p=1), lead to the development of new marketing strategies, or increase the efficiency of the [Hass avocado](/usc/7/7802.md?p=6-A) industry, and activities to enhance the image of the [Hass avocado](/usc/7/7802.md?p=6-A) industry, and for the disbursement of necessary funds for the purposes described in this subparagraph.
    - (C) **Research—** The [order](/usc/7/7802.md?p=10) shall provide for—
      - (i) the establishment, implementation, administration, and evaluation of plans and projects for [market](/usc/7/198.md?p=1) development [research](/usc/7/7802.md?p=14), [research](/usc/7/7802.md?p=14) with respect to the sale, distribution, marketing, use, quality, or nutritional value of [Hass avocados](/usc/7/7802.md?p=6-A), and other [research](/usc/7/7802.md?p=14) with respect to [Hass avocado](/usc/7/7802.md?p=6-A) marketing, [promotion](/usc/7/7802.md?p=13), [industry information](/usc/7/7802.md?p=9) or [consumer information](/usc/7/7802.md?p=3);
      - (ii) the dissemination of the information acquired through the plans and projects; and
      - (iii) the disbursement of such funds as are necessary to carry out this subparagraph.
    - (D) **Submission to Secretary—** The [order](/usc/7/7802.md?p=10) shall provide that the [Board](/usc/7/7802.md?p=1) shall submit to the [Secretary](/usc/7/7802.md?p=15) for approval a proposed plan or project for [Hass avocados](/usc/7/7802.md?p=6-A) [promotion](/usc/7/7802.md?p=13), [industry information](/usc/7/7802.md?p=9), [consumer information](/usc/7/7802.md?p=3), or related [research](/usc/7/7802.md?p=14), as described in subparagraphs [(A)](#d-2-A), [(B)](#d-2-B), and [(C)](#d-2-C).
  - (3) **Approval by Secretary—** A budget, plan, or project for [Hass avocados](/usc/7/7802.md?p=6-A) [promotion](/usc/7/7802.md?p=13), [industry information](/usc/7/7802.md?p=9), [consumer information](/usc/7/7802.md?p=3), or related [research](/usc/7/7802.md?p=14) may not be implemented prior to approval of the budget, plan, or project by the [Secretary](/usc/7/7802.md?p=15). Not later than 45 days after receipt of such a budget, plan, or project, the [Secretary](/usc/7/7802.md?p=15) shall notify the [Board](/usc/7/7802.md?p=1) whether the [Secretary](/usc/7/7802.md?p=15) approves or disapproves the budget, plan, or project. If the [Secretary](/usc/7/7802.md?p=15) fails to provide such notice before the end of the 45-day period, the budget, plan, or project shall be deemed to be approved and may be implemented by the [Board](/usc/7/7802.md?p=1).
- (e) **Contracts and agreements—**
  - (1) **Promotion, consumer information, industry information and related research plans and projects—**
    - (A) **In general—** To ensure the efficient use of funds, the [order](/usc/7/7802.md?p=10) shall provide that the [Board](/usc/7/7802.md?p=1), with the approval of the [Secretary](/usc/7/7802.md?p=15), shall enter into a contract or an agreement with an avocado organization established by [State](/usc/7/7802.md?p=16) statute in a [State](/usc/7/7802.md?p=16) with the majority of [Hass avocado](/usc/7/7802.md?p=6-A) production in the [United States](/usc/7/7802.md?p=17), for the implementation of a plan or project for [promotion](/usc/7/7802.md?p=13), [industry information](/usc/7/7802.md?p=9), [consumer information](/usc/7/7802.md?p=3), or related [research](/usc/7/7802.md?p=14) with respect to [Hass avocados](/usc/7/7802.md?p=6-A), and for the payment of the cost of the contract or agreement with funds received by the [Board](/usc/7/7802.md?p=1) under the [order](/usc/7/7802.md?p=10).
    - (B) **Requirements—** The [order](/usc/7/7802.md?p=10) shall provide that any contract or agreement entered into under this paragraph shall provide that—
      - (i) the contracting or agreeing party shall develop and submit to the [Board](/usc/7/7802.md?p=1) a plan or project, together with a budget that includes the estimated costs to be incurred for the plan or project;
      - (ii) the plan or project shall become effective on the approval of the [Secretary](/usc/7/7802.md?p=15); and
      - (iii) the contracting party or agreeing party shall—
        - (I) keep accurate records of all transactions of the party;
        - (II) account for funds received and expended;
        - (III) make periodic reports to the [Board](/usc/7/7802.md?p=1) of activities conducted; and
        - (IV) make such other reports as the [Board](/usc/7/7802.md?p=1) or the [Secretary](/usc/7/7802.md?p=15) shall require.
  - (2) **Other contracts and agreements—** The [order](/usc/7/7802.md?p=10) shall provide that the [Board](/usc/7/7802.md?p=1), with the approval of the [Secretary](/usc/7/7802.md?p=15), may enter into a contract or agreement for administrative services. Any contract or agreement entered into under this paragraph shall include provisions comparable to the provisions described in [paragraph (1)(B)](#e-1-B).
- (f) **Books and records of Board—**
  - (1) **In general—** The [order](/usc/7/7802.md?p=10) shall require the [Board](/usc/7/7802.md?p=1) to—
    - (A) maintain such books and records (which shall be available to the [Secretary](/usc/7/7802.md?p=15) for inspection and audit) as the [Secretary](/usc/7/7802.md?p=15) may require;
    - (B) prepare and submit to the [Secretary](/usc/7/7802.md?p=15), from time to time, such reports as the [Secretary](/usc/7/7802.md?p=15) may require; and
    - (C) account for the receipt and disbursement of all the funds entrusted to the [Board](/usc/7/7802.md?p=1), including all assessment funds disbursed by the [Board](/usc/7/7802.md?p=1) to a [State](/usc/7/7802.md?p=16) organization of avocado [producers](/usc/7/7802.md?p=12) established pursuant to [State](/usc/7/7802.md?p=16) law.
  - (2) **Audits—** The [Board](/usc/7/7802.md?p=1) shall cause the books and records of the [Board](/usc/7/7802.md?p=1) to be audited by an independent auditor at the end of each fiscal year. A report of each audit shall be submitted to the [Secretary](/usc/7/7802.md?p=15).
- (g) **Control of administrative costs—**
  - (1) **System of cost controls—** The [order](/usc/7/7802.md?p=10) shall provide that the [Board](/usc/7/7802.md?p=1) shall, as soon as practicable after the [order](/usc/7/7802.md?p=10) becomes effective and after consultation with the [Secretary](/usc/7/7802.md?p=15) and other appropriate [persons](/usc/7/7802.md?p=11), implement a system of cost controls based on normally accepted business practices that—
    - (A) will ensure that the costs incurred by the [Board](/usc/7/7802.md?p=1) in administering the [order](/usc/7/7802.md?p=10) in any fiscal year shall not exceed 10 percent of the projected level of assessments to be collected by the [Board](/usc/7/7802.md?p=1) for that fiscal year; and
    - (B) cover the minimum administrative activities and personnel needed to properly administer and enforce the [order](/usc/7/7802.md?p=10), and conduct, supervise, and evaluate plans and projects under the [order](/usc/7/7802.md?p=10).
  - (2) **Use of existing personnel and facilities—** The [Board](/usc/7/7802.md?p=1) shall use, to the extent possible, the resources, staffs, and facilities of existing organizations, as provided in [subsection (e)(1)(A)](#e-1-A).
- (h) **Assessments—**
  - (1) **Authority—**
    - (A) **In general—** The [order](/usc/7/7802.md?p=10) shall provide that each [first handler](/usc/7/7802.md?p=7-A) shall remit to the [Board](/usc/7/7802.md?p=1), in the manner provided in the [order](/usc/7/7802.md?p=10), an assessment collected from the [producer](/usc/7/7802.md?p=12), except to the extent that the sale is excluded from assessments under [paragraph (6)](#h-6). In the case of imports, the assessment shall be levied upon imports and remitted to the [Board](/usc/7/7802.md?p=1) by [Customs](/usc/7/7802.md?p=4).
    - (B) **Published lists—** To facilitate the payment of assessments under this paragraph, the [Board](/usc/7/7802.md?p=1) shall publish lists of [first handlers](/usc/7/7802.md?p=7-A) required to remit assessments under the [order](/usc/7/7802.md?p=10) and [exempt handlers](/usc/7/7802.md?p=7-B).
    - (C) **Making determinations—**
      - (i) **First handler status—** The [order](/usc/7/7802.md?p=10) shall contain provisions regarding the determination of the status of a [person](/usc/7/7802.md?p=11) as a [first handler](/usc/7/7802.md?p=7-A) or [exempt handler](/usc/7/7802.md?p=7-B).
      - (ii) **Producer-handlers—** For purposes of [paragraph (3)](#h-3), a [producer](/usc/7/7802.md?p=12)-handler shall be considered the [first handler](/usc/7/7802.md?p=7-A) of those [Hass avocados](/usc/7/7802.md?p=6-A) that are produced by that [producer](/usc/7/7802.md?p=12)-handler and packed by that [producer](/usc/7/7802.md?p=12)-handler for sale at wholesale or retail.
      - (iii) **Importers—** The assessment on imported [Hass avocados](/usc/7/7802.md?p=6-A) shall be paid by the [importer](/usc/7/7802.md?p=8) to [Customs](/usc/7/7802.md?p=4) at the time of entry into the [United States](/usc/7/7802.md?p=17) and shall be remitted by [Customs](/usc/7/7802.md?p=4) to the [Board](/usc/7/7802.md?p=1). Importation occurs when [Hass avocados](/usc/7/7802.md?p=6-A) originating outside the [United States](/usc/7/7802.md?p=17) are released from custody of [Customs](/usc/7/7802.md?p=4) and introduced into the stream of commerce within the [United States](/usc/7/7802.md?p=17). [Importers](/usc/7/7802.md?p=8) include [persons](/usc/7/7802.md?p=11) who hold title to foreign-produced [Hass avocados](/usc/7/7802.md?p=6-A) immediately upon release by [Customs](/usc/7/7802.md?p=4), as well as any [persons](/usc/7/7802.md?p=11) who act on behalf of others, as agents, [brokers](/usc/7/499a.md?p=b-7), or consignees, to secure the release of [Hass avocados](/usc/7/7802.md?p=6-A) from [Customs](/usc/7/7802.md?p=4) and the introduction of the released [Hass avocados](/usc/7/7802.md?p=6-A) into the current of commerce.
  - (2) **Assessment rates—** With respect to assessment rates, the [order](/usc/7/7802.md?p=10) shall contain the following terms:
    - (A) **Initial rate—** The rate of assessment on [Hass avocados](/usc/7/7802.md?p=6-A) shall be $.025 per pound on fresh avocados or the equivalent rate for processed avocados on which an assessment has not been paid.
    - (B) **Changes in the rate—**
      - (i) **In general—** Once the [order](/usc/7/7802.md?p=10) in is effect, the uniform assessment rate may be increased or decreased not more than once annually, but in no event shall the rate of assessment be in excess of $.05 per pound.
      - (ii) **Requirements—** Any change in the rate of assessment under this subparagraph—
        - (I) may be made only if adopted by the [Board](/usc/7/7802.md?p=1) by an affirmative vote of at least seven members of the [Board](/usc/7/7802.md?p=1) and approved by the [Secretary](/usc/7/7802.md?p=15) as necessary to achieve the objectives of this chapter (after public notice and opportunity for comment in accordance with [section 553 of title 5](/usc/5/553.md) and without regard to sections [556](/usc/5/556.md) and [557](/usc/5/557.md) of such title);
        - (II) shall be announced by the [Board](/usc/7/7802.md?p=1) not less than 30 days prior to going into effect; and
        - (III) shall not be subject to a vote in a referendum conducted under [section 7805 of this title](/usc/7/7805.md).
  - (3) **Collection by first handlers—** Except as provided in [paragraph (1)(C)(iii)](#h-1-C-iii), the [first handler](/usc/7/7802.md?p=7-A) of [Hass avocados](/usc/7/7802.md?p=6-A) shall be responsible for the collection of assessments from the [producer](/usc/7/7802.md?p=12) under this subsection. As part of the collection of assessments, the [first handler](/usc/7/7802.md?p=7-A) shall maintain a separate record of the [Hass avocados](/usc/7/7802.md?p=6-A) of each [producer](/usc/7/7802.md?p=12) whose [Hass avocados](/usc/7/7802.md?p=6-A) are so handled, including the [Hass avocados](/usc/7/7802.md?p=6-A) produced by the [first handler](/usc/7/7802.md?p=7-A).
  - (4) **Timing of submitting assessments—** The [order](/usc/7/7802.md?p=10) shall provide that each [person](/usc/7/7802.md?p=11) required to remit assessments under this subsection shall remit to the [Board](/usc/7/7802.md?p=1) the assessment due from each sale of [Hass avocados](/usc/7/7802.md?p=6-A) that is subject to an assessment within such time period after the sale (not to exceed 60 days after the end of the month in which the sale took place) as is specified in the [order](/usc/7/7802.md?p=10).
  - (5) **Claiming an exemption from collecting assessments—** To claim an exemption under [section 7802(6) of this title](/usc/7/7802.md?p=6) as an [exempt handler](/usc/7/7802.md?p=7-B) for a particular fiscal year, a [person](/usc/7/7802.md?p=11) shall submit an application to the [Board](/usc/7/7802.md?p=1)—
    - (A) stating the basis for such exemption; and
    - (B) certifying such [person](/usc/7/7802.md?p=11) will not purchase [Hass avocados](/usc/7/7802.md?p=6-A) in the [United States](/usc/7/7802.md?p=17) on which an assessment has not been paid for the current fiscal year.
  - (6) **Exclusion—** An [order](/usc/7/7802.md?p=10) shall exclude from assessments under the [order](/usc/7/7802.md?p=10) any sale of [Hass avocados](/usc/7/7802.md?p=6-A) for export from the [United States](/usc/7/7802.md?p=17).
  - (7) **Use of assessment funds—** The [order](/usc/7/7802.md?p=10) shall provide that assessment funds shall be used for payment of costs incurred in implementing and administering the [order](/usc/7/7802.md?p=10), with provision for a reasonable reserve, and to cover the administrative costs incurred by the [Secretary](/usc/7/7802.md?p=15) in implementing and administering this chapter, including any expenses incurred by the [Secretary](/usc/7/7802.md?p=15) in conducting referenda under this chapter, subject to [subsection (i)](#i).
  - (8) **Assessment funds for State association—** The [order](/usc/7/7802.md?p=10) shall provide that a [State](/usc/7/7802.md?p=16) organization of avocado [producers](/usc/7/7802.md?p=12) established pursuant to [State](/usc/7/7802.md?p=16) law shall receive an amount equal to the product obtained by multiplying the aggregate amount of assessments attributable to the pounds of [Hass avocados](/usc/7/7802.md?p=6-A) produced in such [State](/usc/7/7802.md?p=16) by 85 percent. The [State](/usc/7/7802.md?p=16) organization shall use such funds and any proceeds from the investment of such funds for financing domestic [promotion](/usc/7/7802.md?p=13), [research](/usc/7/7802.md?p=14), [consumer information](/usc/7/7802.md?p=3), and [industry information](/usc/7/7802.md?p=9) plans and projects, except that no such funds shall be used for the administrative expenses of such [State](/usc/7/7802.md?p=16) organization.
  - (9) **Assessment funds for importers associations—**
    - (A) **In general—** The [order](/usc/7/7802.md?p=10) shall provide that any [importers](/usc/7/7802.md?p=8) association shall receive a credit described in [subparagraph (B)](#h-9-B) if such association is—
      - (i) established pursuant to [State](/usc/7/7802.md?p=16) law that requires detailed [State](/usc/7/7802.md?p=16) regulation comparable to that applicable to the [State](/usc/7/7802.md?p=16) organization of [United States](/usc/7/7802.md?p=17) avocado [producers](/usc/7/7802.md?p=12), as determined by the [Secretary](/usc/7/7802.md?p=15); or
      - (ii) certified by the [Secretary](/usc/7/7802.md?p=15) as meeting the requirements applicable to the [Board](/usc/7/7802.md?p=1) as to budgets, plans, projects, audits, conflicts of interest, and reimbursements for administrative costs incurred by the [Secretary](/usc/7/7802.md?p=15).
    - (B) **Credit—** An [importers](/usc/7/7802.md?p=8) association described in [subparagraph (A)](#h-9-A) shall receive 85 percent of the assessments paid on [Hass avocados](/usc/7/7802.md?p=6-A) imported by the members of such association.
    - (C) **Use of funds—**
      - (i) **In general—** [Importers](/usc/7/7802.md?p=8) associations described in [subparagraph (A)](#h-9-A) shall use the funds described in [subparagraph (B)](#h-9-B) and proceeds from the investment of such funds for financing [promotion](/usc/7/7802.md?p=13), [research](/usc/7/7802.md?p=14), [consumer information](/usc/7/7802.md?p=3), and [industry information](/usc/7/7802.md?p=9) plans and projects in the [United States](/usc/7/7802.md?p=17).
      - (ii) **Administrative expenses—** No funds described in [subparagraph (C)](#h-9-C) shall be used for the administrative expenses of such [importers](/usc/7/7802.md?p=8) association.
- (i) **Reimbursement of Secretary expenses—** The [order](/usc/7/7802.md?p=10) shall provide for reimbursing the [Secretary](/usc/7/7802.md?p=15)—
  - (1) for expenses not to exceed $25,000 incurred by the [Secretary](/usc/7/7802.md?p=15) in connection with any referendum conducted under [section 7805 of this title](/usc/7/7805.md);
  - (2) for administrative costs incurred by the [Secretary](/usc/7/7802.md?p=15) for supervisory work of up to two employee years annually after an [order](/usc/7/7802.md?p=10) or amendment to any [order](/usc/7/7802.md?p=10) has been issued and made effective; and
  - (3) for costs incurred by the [Secretary](/usc/7/7802.md?p=15) in implementation of the [order](/usc/7/7802.md?p=10) issued under [section 7803 of this title](/usc/7/7803.md), for enforcement of the chapter and the [order](/usc/7/7802.md?p=10), for subsequent referenda conducted under [section 7805 of this title](/usc/7/7805.md), and in defending the [Board](/usc/7/7802.md?p=1) in litigation arising out of action taken by the [Board](/usc/7/7802.md?p=1).
- (j) **Prohibition on brand advertising and certain claims—**
  - (1) **Prohibitions—** Except as provided in [paragraph (2)](#j-2), a program or project conducted under this chapter shall not—
    - (A) make any reference to private brand names;
    - (B) make false, misleading, or disparaging claims on behalf of [Hass avocados](/usc/7/7802.md?p=6-A); or
    - (C) make false, misleading, or disparaging statements with respect to the attributes or use of any competing products.
  - (2) **Exceptions—** [Paragraph (1)](#j-1) does not preclude the [Board](/usc/7/7802.md?p=1) from offering its programs and projects for use by commercial parties, under such terms and conditions as the [Board](/usc/7/7802.md?p=1) may prescribe as approved by the [Secretary](/usc/7/7802.md?p=15). For the purposes of this subsection, a reference to [State](/usc/7/7802.md?p=16) of origin does not constitute a reference to a private brand name with regard to any funds credited to, or disbursed by the [Board](/usc/7/7802.md?p=1) to, a [State](/usc/7/7802.md?p=16) organization of avocado [producers](/usc/7/7802.md?p=12) established pursuant to [State](/usc/7/7802.md?p=16) law. Furthermore, for the purposes of this section, a reference to either [State](/usc/7/7802.md?p=16) of origin or country of origin does not constitute a reference to a private brand name with regard to any funds credited to, or disbursed by the [Board](/usc/7/7802.md?p=1) to, any [importers](/usc/7/7802.md?p=8) association established or certified in accordance with [subsection (h)(9)(A)](#h-9-A).
- (k) **Prohibition on use of funds to influence governmental action—**
  - (1) **In general—** Except as otherwise provided in [paragraph (2)](#k-2), the [order](/usc/7/7802.md?p=10) shall prohibit any funds collected by the [Board](/usc/7/7802.md?p=1) under the [order](/usc/7/7802.md?p=10) from being used in any manner for the purpose of influencing legislation or government action or policy.
  - (2) **Exception—** [Paragraph (1)](#k-1) shall not apply to the development or recommendation of amendments to the [order](/usc/7/7802.md?p=10).
- (l) **Prohibition of conflict of interest—** The [Board](/usc/7/7802.md?p=1) may not engage in, and shall prohibit the employees and agents of the [Board](/usc/7/7802.md?p=1) from engaging in, any action that would be a [conflict of interest](/usc/7/7802.md?p=2).
- (m) **Books and records; reports—**
  - (1) **In general—** The [order](/usc/7/7802.md?p=10) shall provide that each [first handler](/usc/7/7802.md?p=7-A), [producer](/usc/7/7802.md?p=12), and [importer](/usc/7/7802.md?p=8) subject to the [order](/usc/7/7802.md?p=10) shall maintain, and make available for inspection, such books and records as are required by the [order](/usc/7/7802.md?p=10) and file reports at the time, in the manner, and having the content required by the [order](/usc/7/7802.md?p=10), to the end that such information is made available to the [Secretary](/usc/7/7802.md?p=15) and the [Board](/usc/7/7802.md?p=1) as is appropriate for the administration or enforcement of this chapter, the [order](/usc/7/7802.md?p=10), or any regulation issued under this chapter.
  - (2) **Confidentiality requirement—**
    - (A) **In general—** Information obtained from books, records, or reports under [paragraph (1)](#m-1) shall be kept confidential by all officers and employees of the [Department](/usc/7/7802.md?p=5) of Agriculture and by the staff and agents of the [Board](/usc/7/7802.md?p=1).
    - (B) **Suits and hearings—** Information described in [subparagraph (A)](#m-2-A) may be disclosed to the public only—
      - (i) in a suit or administrative hearing brought at the request of the [Secretary](/usc/7/7802.md?p=15), or to which the [Secretary](/usc/7/7802.md?p=15) or any officer of the [United States](/usc/7/7802.md?p=17) is a party, involving the [order](/usc/7/7802.md?p=10); and
      - (ii) to the extent the [Secretary](/usc/7/7802.md?p=15) considers the information relevant to the suit or hearing.
    - (C) **General statements and publications—** Nothing in this paragraph may be construed to prohibit—
      - (i) the issuance of general statements, based on the reports, of the number of [persons](/usc/7/7802.md?p=11) subject to the [order](/usc/7/7802.md?p=10) or statistical data collected from the reports, if the statements do not identify the information furnished by any [person](/usc/7/7802.md?p=11); or
      - (ii) the publication, by direction of the [Secretary](/usc/7/7802.md?p=15), of the name of any [person](/usc/7/7802.md?p=11) who violates the [order](/usc/7/7802.md?p=10), together with a statement of the particular provisions of the [order](/usc/7/7802.md?p=10) violated by the [person](/usc/7/7802.md?p=11).
  - (3) **Lists of importers—**
    - (A) **Review—** The [order](/usc/7/7802.md?p=10) shall provide that the staff of the [Board](/usc/7/7802.md?p=1) shall periodically review lists of [importers](/usc/7/7802.md?p=8) of [Hass avocados](/usc/7/7802.md?p=6-A) to determine whether [persons](/usc/7/7802.md?p=11) on the lists are subject to the [order](/usc/7/7802.md?p=10).
    - (B) **Customs Service—** On the request of the [Secretary](/usc/7/7802.md?p=15) or the [Board](/usc/7/7802.md?p=1), the Commissioner of the [United States](/usc/7/7802.md?p=17) [Customs](/usc/7/7802.md?p=4) Service shall provide to the [Secretary](/usc/7/7802.md?p=15) or the [Board](/usc/7/7802.md?p=1) lists of [importers](/usc/7/7802.md?p=8) of [Hass avocados](/usc/7/7802.md?p=6-A).
- (n) **Consultations with industry experts—**
  - (1) **In general—** The [order](/usc/7/7802.md?p=10) shall provide that the [Board](/usc/7/7802.md?p=1) may seek advice from and consult with experts from the production, import, wholesale, and retail segments of the [Hass avocado](/usc/7/7802.md?p=6-A) industry to assist in the development of [promotion](/usc/7/7802.md?p=13), [industry information](/usc/7/7802.md?p=9), [consumer information](/usc/7/7802.md?p=3), and related [research](/usc/7/7802.md?p=14) plans and projects.
  - (2) **Special committees—**
    - (A) **In general—** For the purposes described in [paragraph (1)](#n-1), the [order](/usc/7/7802.md?p=10) shall authorize the appointment of special committees composed of [persons](/usc/7/7802.md?p=11) other than [Board](/usc/7/7802.md?p=1) members.
    - (B) **Consultation—** A committee appointed under [subparagraph (A)](#n-2-A) shall consult directly with the [Board](/usc/7/7802.md?p=1).
- (o) **Other terms of the order—** The [order](/usc/7/7802.md?p=10) shall contain such other terms and provisions, consistent with this chapter, as are necessary to carry out this chapter (including provision for the assessment of interest and a charge for each late payment of assessments under [subsection (h)](#h)).

## Source credit

(Pub. L. 106–387, § 1(a) [title XII, § 1205], Oct. 28, 2000, 114 Stat. 1549, 1549A–82.)

## Notes

### Editorial Notes

### References in Text

The Commodity Promotion, Research, and Information Act of 1996, referred to in subsec. (c)(7), is subtitle B of title V of Pub. L. 104–127, Apr. 4, 1996, 110 Stat. 1032, which is classified generally to subchapter II (§ 7411 et seq.) of chapter 101 of this title. For complete classification of this Act to the Code, see Short Title note set out under section 7401 of this title and Tables.

### Statutory Notes and Related Subsidiaries

### Transfer of Functions

For transfer of functions, personnel, assets, and liabilities of the United States Customs Service of the Department of the Treasury, including functions of the Secretary of the Treasury relating thereto, to the Secretary of Homeland Security, and for treatment of related references, see sections 203(1), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set out as a note under section 542 of Title 6. For establishment of U.S. Customs and Border Protection in the Department of Homeland Security, treated as if included in Pub. L. 107–296 as of Nov. 25, 2002, see section 211 of Title 6, as amended generally by Pub. L. 114–125, and section 802(b) of Pub. L. 114–125, set out as a note under section 211 of Title 6.