[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2509 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                H. R. 2509

   To finance and implement a program of research, promotion, market 
 development, and industry and consumer information to enhance demand 
 for and increase the profitability of canola and rapeseed products in 
               the United States, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 19, 1995

 Mr. Crapo (for himself, Mr. Pomeroy, Mrs. Chenoweth, and Mr. Brown of 
 California) introduced the following bill; which was referred to the 
                        Committee on Agriculture

_______________________________________________________________________

                                 A BILL


 
   To finance and implement a program of research, promotion, market 
 development, and industry and consumer information to enhance demand 
 for and increase the profitability of canola and rapeseed products in 
               the United States, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Canola and 
Rapeseed Research, Promotion, and Consumer Information Act''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings and declaration of policy.
Sec. 3. Definitions.
Sec. 4. Issuance and amendment of orders.
Sec. 5. Required terms in orders.
Sec. 6. Assessments.
Sec. 7. Referenda.
Sec. 8. Petition and review.
Sec. 9. Enforcement.
Sec. 10. Investigations and power to subpoena.
Sec. 11. Suspension or termination of an order.
Sec. 12. Regulations.
Sec. 13. Authorization of appropriations.

SEC. 2. FINDINGS AND DECLARATION OF POLICY.

    (a) Findings.--Congress finds that--
            (1) canola and rapeseed products are an important and 
        nutritious part of the human diet;
            (2) the production of canola and rapeseed products plays a 
        significant role in the economy of the United States in that 
        canola and rapeseed products are produced by thousands of 
        canola and rapeseed producers, processed by numerous processing 
        entities, and canola and rapeseed products produced in the 
        United States are consumed by people throughout the United 
        States and foreign countries;
            (3) canola, rapeseed, and canola and rapeseed products 
        should be readily available and marketed efficiently to ensure 
        that consumers have an adequate supply of canola and rapeseed 
        products at a reasonable price;
            (4) the maintenance and expansion of existing markets and 
        development of new markets for canola, rapeseed, and canola and 
        rapeseed products are vital to the welfare of canola and 
        rapeseed producers and processors and those persons concerned 
        with marketing canola, rapeseed, and canola and rapeseed 
        products, as well as to the general economy of the United 
        States, and are necessary to ensure the ready availability and 
        efficient marketing of canola, rapeseed, and canola and 
        rapeseed products;
            (5) there exist established State and national 
        organizations conducting canola and rapeseed research, 
        promotion, and consumer education programs that are valuable to 
        the efforts of promoting the consumption of canola, rapeseed, 
        and canola and rapeseed products;
            (6) the cooperative development, financing, and 
        implementation of a coordinated national program of canola and 
        rapeseed research, promotion, consumer information, and 
        industry information is necessary to maintain and expand 
        existing markets and develop new markets for canola, rapeseed, 
        and canola and rapeseed products; and
            (7) canola, rapeseed, and canola and rapeseed products move 
        in interstate and foreign commerce, and canola, rapeseed, and 
        canola and rapeseed products that do not move in interstate or 
        foreign commerce directly burden or affect interstate commerce 
        in canola, rapeseed, and canola and rapeseed products.
    (b) Policy.--It is the policy of this Act to establish an orderly 
procedure for developing, financing through assessments on 
domestically-produced canola and rapeseed, and implementing a program 
of research, promotion, consumer information, and industry information 
designed to strengthen the position in the marketplace of the canola 
and rapeseed industry, to maintain and expand existing domestic and 
foreign markets and uses for canola, rapeseed, and canola and rapeseed 
products, and to develop new markets and uses for canola, rapeseed, and 
canola and rapeseed products.
    (c) Construction.--Nothing in this Act provides for the control of 
production or otherwise limits the right of individual producers to 
produce canola, rapeseed, or canola or rapeseed products.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Board.--The term ``Board'' means the National Canola 
        and Rapeseed Board established under section 5(b).
            (2) Canola or rapeseed products.--The term ``canola or 
        rapeseed products'' means products produced, in whole or in 
        part, from canola or rapeseed.
            (3) Commerce.--The term ``commerce'' includes interstate, 
        foreign, and intrastate commerce.
            (4) Conflict of interest.--The term ``conflict of 
        interest'' means a situation in which a member has a direct or 
        indirect financial interest in a corporation, partnership, sole 
        proprietorship, joint venture, or other business entity dealing 
        directly or indirectly with the Board.
            (5) Consumer information.--The term ``consumer 
        information'' means information that will assist consumers and 
        other persons in making evaluations and decisions regarding the 
        purchase, preparation, and use of canola or rapeseed products.
            (6) Department.--The term ``Department'' means the 
        Department of Agriculture.
            (7) First purchaser.--The term ``first purchaser'' means--
                    (A) except as provided in subparagraph (B), a 
                person buying or otherwise acquiring canola, rapeseed, 
                or canola or rapeseed products produced by a producer; 
                or
                    (B) the Commodity Credit Corporation, in a case in 
                which canola or rapeseed is forfeited  to the Commodity 
Credit Corporation as collateral for a loan issued under a price 
support loan program administered by the Commodity Credit Corporation.
            (8) Industry information.--The term ``industry 
        information'' means information or programs that will lead to 
        the development of new markets, new marketing strategies, or 
        increased efficiency for the canola and rapeseed industry, or 
        an activity to enhance the image of the canola or rapeseed 
        industry.
            (9) Industry member.--The term ``industry member'' means a 
        member of the canola and rapeseed industry who represents--
                    (A) manufacturers of canola or rapeseed end 
                products; or
                    (B) persons who commercially buy or sell canola or 
                rapeseed.
            (10) Marketing.--The term ``marketing'' means the sale or 
        other disposition of canola, rapeseed, or canola or rapeseed 
        products in a channel of commerce.
            (11) Order.--The term ``order'' means an order issued under 
        section 4.
            (12) Person.--The term ``person'' means an individual, 
        partnership, corporation, association, cooperative, or any 
        other legal entity.
            (13) Producer.--The term ``producer'' means a person 
        engaged in the growing of canola or rapeseed in the United 
        States who owns, or who shares the ownership and risk of loss 
        of, the canola or rapeseed.
            (14) Promotion.--The term ``promotion'' means an action, 
        including paid advertising, technical assistance, or trade 
        servicing activity, to enhance the image or desirability of 
        canola, rapeseed, or canola or rapeseed products in domestic 
        and foreign markets, or an activity designed to communicate to 
        consumers, processors, wholesalers, retailers, government 
        officials, or others information relating to the positive 
        attributes of canola, rapeseed, or canola or rapeseed products 
        or the benefits of use or distribution of canola, rapeseed, or 
        canola or rapeseed products.
            (15) Qualified state canola and rapeseed board.--The term 
        ``qualified State canola and rapeseed board'' means a State 
        canola and rapeseed promotion entity that is authorized and 
        functioning under State law.
            (16) Research.--The term ``research'' means any type of 
        test, study, or analysis to advance the image, desirability, 
        marketability, production, product development, quality, or 
        functional or nutritional value of canola, rapeseed, or canola 
        or rapeseed products, including research activity designed to 
        identify and analyze barriers to export sales of canola or 
        rapeseed produced in the United States.
            (17) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
            (18) State.--The term ``State'' means any of the 50 States, 
        the District of Columbia and the Commonwealth of Puerto Rico.
            (19) United states.--The term ``United States'' means 
        collectively the 50 States, the District of Columbia, and the 
        Commonwealth of Puerto Rico.

SEC. 4. ISSUANCE AND AMENDMENT OF ORDERS.

    (a) In General.--Effective beginning with the first marketing year 
that the Secretary estimates that canola or rapeseed will be produced 
in the United States in a quantity sufficient to effectuate the policy 
described in section 2(b), the Secretary, subject to subsection (b), 
shall issue 1 or more orders under this Act applicable to producers and 
first purchasers of canola or rapeseed products. The order shall be 
national in scope. Not more than 1 order shall be in effect under this 
Act at any 1 time.
    (b) Procedure.--
            (1) Proposal or request for issuance.--The Secretary may 
        propose the issuance of an order under this Act, or an 
        association of canola and rapeseed producers or any other 
        person that would be affected by an order issued pursuant to 
        this Act may request the issuance of, and submit a proposal 
        for, an order.
            (2) Notice and comment concerning proposed order.--Not 
        later than 60 days after the receipt of a request and proposal 
        for an order pursuant to paragraph (1), or whenever the 
        Secretary determines to propose an order, the Secretary shall 
        publish a proposed order and give due notice and opportunity 
        for public comment on the proposed order.
            (3) Issuance of order.--After notice and opportunity for 
        public comment are given as provided in paragraph (2), the 
        Secretary shall issue an order, taking into consideration the 
        comments received and including in the order provisions 
        necessary to ensure that the order is in conformity with the 
        requirements of this Act. The order shall be issued and become 
        effective not later than 180 days following publication of the 
        proposed order.
    (c) Amendments.--The Secretary, from time to time, may amend an 
order issued under this section.

SEC. 5. REQUIRED TERMS IN ORDERS.

    (a) In General.--An order issued under this Act shall contain the 
terms and conditions specified in this section.
    (b) Establishment and Membership of the National Canola and 
Rapeseed Board.--
            (1) In general.--The order shall provide for the 
        establishment of, and appointment of members to, a National 
        Canola and Rapeseed Board to administer the order.
            (2) Service to entire industry.--The Board shall carry out 
        programs and projects that will provide maximum benefit to the 
        canola and rapeseed industry in all parts of the United States 
        and only promote canola, rapeseed, or canola or rapeseed 
        products.
            (3) Board membership.--The Board shall consist of 15 
        members, including--
                    (A) 11 members who are producers, including--
                            (i) 1 member from each of 6 geographic 
                        regions comprised of States where canola or 
                        rapeseed is produced, as determined by the 
                        Secretary; and
                            (ii) 5 members from the geographic regions 
                        referred to in clause (i), allocated according 
                        to the production in each region; and
                    (B) 4 members who are industry members, including 
                at least--
                            (i) 1 member who represents manufacturers 
                        of canola or rapeseed end products; and
                            (ii) 1 member who represents persons who 
                        commercially buy or sell canola or rapeseed.
            (4) Limitation on state residence.--There shall be no more 
        than 4 producer members of the Board from any State.
            (5) Modifying board membership.--In accordance with 
        regulations approved by the Secretary, at least once each 3 
        years and not more than once each 2 years, the Board shall 
        review the geographic distribution of canola and rapeseed 
        production throughout the United States and, if warranted, 
        recommend to the Secretary that the Secretary--
                    (A) reapportion regions in order to reflect the 
                geographic distribution of canola and rapeseed 
                production; and
                    (B) reapportion the seats on the Board to reflect 
                the production in each region.
            (6) Certification of organizations.--
                    (A) In general.--The eligibility of any State 
                organization to represent producers shall be certified 
                by the Secretary.
                    (B) Criteria.--The Secretary shall certify any 
                State organization that the Secretary determines has a 
                history of stability and permanency and meets at least 
                one of the following criteria:
                            (i) Majority representation.--The 
                        organization's total paid membership--
                                    (I) is comprised of at least a 
                                majority of canola or rapeseed 
                                producers; or
                                    (II) represents at least a majority 
                                of the canola or rapeseed producers in 
                                the State.
                            (ii) Substantial number of producers 
                        represented.--The organization represents a 
                        substantial number of producers that produce a 
                        substantial amount of canola or rapeseed in the 
                        State.
                            (iii) Purpose.--The organization is a 
                        general farm or agricultural organization that 
                        has as a stated objective the promotion and 
                        development of the United States canola or 
                        rapeseed industries and the economic welfare of 
                        United States canola or rapeseed producers.
                    (C) Report.--The Secretary shall make a 
                certification under this paragraph on the basis of a 
                factual report submitted by the State organization.
            (7) Terms of office.--
                    (A) In general.--The members of the Board shall 
                serve for a term of 3 years, except that the members 
                appointed to the initial Board shall serve, 
                proportionately, for terms of 1, 2, and 3 years, as 
                determined by the Secretary.
                    (B) Termination of terms.--Notwithstanding 
                subparagraph (C), each member shall continue to serve 
                until a successor is appointed by the Secretary.
                    (C) Limitation on terms.--No individual may serve 
                more than 2 consecutive 3-year terms as a member.
            (8) Compensation.--A member of the Board shall serve 
        without compensation, but shall be reimbursed for necessary and 
        reasonable expenses incurred in the performance of duties for 
        and approved by the Board.
    (c) Powers and Duties of the Board.--The order shall define the 
powers and duties of the Board, which shall include the power and 
duty--
            (1) to administer the order in accordance with the terms 
        and conditions of the order;
            (2) to make regulations to effectuate the terms and 
        conditions of the order;
            (3) to meet, organize, and select from among members of the 
        Board a chairperson, other officers, and committees and 
        subcommittees, as the Board determines appropriate;
            (4) to establish working committees of persons other than 
        Board members;
            (5) to employ such persons, other than Board members, as 
        the Board considers necessary, and to determine the 
compensation and define the duties of the persons;
            (6) to prepare and submit for the approval of the 
        Secretary, when appropriate or necessary, a recommended rate of 
        assessment under section 6, and a fiscal period budget of the 
        anticipated expenses in the administration of the order, 
        including the probable costs of all programs and projects;
            (7) to develop programs and projects, subject to subsection 
        (d);
            (8) to enter into contracts or agreements, subject to 
        subsection (e), to develop and carry out programs or projects 
        of research, promotion, industry information, and consumer 
        information;
            (9) to carry out research, promotion, industry information, 
        and consumer information projects, and to pay the costs of the 
        projects with assessments collected under section 6;
            (10) to keep minutes, books, and records that reflect the 
        actions and transactions of the Board, and promptly report 
        minutes of each Board meeting to the Secretary;
            (11) to appoint and convene, from time to time, working 
        committees comprised of producers, industry members, and the 
        public to assist in the development of research, promotion, 
        industry information, and consumer information programs for 
        canola, rapeseed, and canola and rapeseed products;
            (12) to invest, pending disbursement under a program or 
        project, funds collected through assessments authorized under 
        section 6, or funds earned from investments, only in--
                    (A) obligations of the United States or an agency 
                of the United States;
                    (B) general obligations of a State or a political 
                subdivision of a State;
                    (C) an interest-bearing account or certificate of 
                deposit of a bank that is a member of the Federal 
                Reserve System; or
                    (D) obligations fully guaranteed as to principal 
                and interest by the United States;
            (13) to receive, investigate, and report to the Secretary 
        complaints of violations of the order;
            (14) to furnish the Secretary with such information as the 
        Secretary may request;
            (15) to recommend to the Secretary amendments to the order;
            (16) to develop and recommend to the Secretary for approval 
        such regulations as may be necessary for the development and 
        execution of programs or projects, or as may otherwise be 
        necessary, to carry out the order; and
            (17) to provide the Secretary with advance notice of 
        meetings.
    (d) Programs and Budgets.--
            (1) Submission to secretary.--The order shall provide that 
        the Board shall submit to the Secretary for approval any 
        program or project of research, promotion, consumer 
        information, or industry information. No program or project 
        shall be implemented prior to approval by the Secretary.
            (2) Budgets.--The order shall require the Board, prior to 
        the beginning of each fiscal year, or as may be necessary after 
        the beginning of a fiscal year, to submit to the Secretary for 
        approval budgets of anticipated expenses and disbursements in 
        the implementation of the order, including projected costs of 
        research, promotion, consumer information, and industry 
        information programs and projects.
            (3) Incurring expenses.--The Board may incur such expenses 
        for programs or projects of research, promotion, consumer 
        information, or industry information, and other expenses for 
        the administration, maintenance, and functioning of the Board 
        as may be authorized by the Secretary, including any 
        implementation, administrative, and referendum costs incurred 
        by the Department.
            (4) Paying expenses.--The funds to cover the expenses 
        referred to in paragraph (3) shall be paid by the Board from 
        assessments collected under section 6 or funds borrowed 
        pursuant to paragraph (5).
            (5) Authority to borrow.--To meet the expenses referred to 
        in paragraph (3), the Board shall have the authority to borrow 
        funds, as approved by the Secretary, for capital outlays and 
        startup costs.
    (e) Contracts and Agreements.--
            (1) In general.--To ensure efficient use of funds, the 
        order shall provide that the Board may enter into a contract or 
        agreement for the implementation and carrying out of a program 
        or project of canola or rapeseed research, promotion, consumer 
        information, or industry information, including a contract with 
        a producer organization, and for the payment of the costs with 
        funds received by the Board under the order.
            (2) Requirements.--A contract or agreement under paragraph 
        (1) shall provide that--
                    (A) the contracting party shall develop and submit 
                to the Board a program or project together with a 
                budget that shall show the estimated costs to be 
                incurred for the program or project;
                    (B) the program or project shall become effective 
                on the approval of the Secretary; and
                    (C) the contracting party shall keep accurate 
                records of all transactions, account for funds received 
                and expended, make periodic reports to the Board of 
                activities conducted, and make such other reports as 
                the Board or the Secretary may require.
            (3) Producer organizations.--The order shall provide that 
        the Board may contract with producer organizations for any 
        other services. The contract shall include provisions 
        comparable to those required by paragraph (2).
    (f) Books and Records of the Board.--
            (1) In general.--The order shall require the Board to--
                    (A) maintain such books and records (which shall be 
                available to the Secretary for inspection and audit) as 
                the Secretary may prescribe;
                    (B) prepare and submit to the Secretary, from time 
                to time, such reports as the Secretary may prescribe; 
                and
                    (C) account for the receipt and disbursement of all 
                funds entrusted to the Board.
            (2) Audits.--The Board shall cause the books and records of 
        the Board to be audited by an independent auditor at the end of 
        each fiscal year, and a report of the audit to be submitted to 
        the Secretary.
    (g) Prohibition.--
            (1) In general.--Subject to paragraph (2), the Board shall 
        not engage in any action to, nor shall any funds received by 
        the Board under this Act be used to--
                    (A) influence legislation or governmental action;
                    (B) engage in an action that would be a conflict of 
                interest;
                    (C) engage in advertising that is false or 
                misleading; or
                    (D) engage in promotion that would disparage other 
                commodities.
            (2) Action permitted.--Paragraph (1) does not preclude--
                    (A) the development and recommendation of 
                amendments to the order;
                    (B) the communication to appropriate government 
                officials of information relating to the conduct, 
                implementation, or results of promotion, research, 
                consumer information, or industry information 
                activities under the order; or
                    (C) any action designed to market canola or 
                rapeseed products directly to a foreign government or 
                political subdivision of a foreign government.
    (h) Books and Records.--
            (1) In general.--The order shall require that each producer 
        or industry member shall--
                    (A) maintain and submit to the Board any reports 
                considered necessary by the Secretary to ensure 
                compliance with this Act; and
                    (B) make available during normal business hours, 
                for inspection by employees of the Board or Secretary, 
                such books and records as are necessary to carry out 
                this Act, including such records as are necessary to 
                verify any required reports.
            (2) Confidentiality.--
                    (A) In general.--Except as otherwise provided in 
                this Act, all information obtained from books, records, 
                or reports required to be maintained under paragraph 
                (1) shall be kept confidential, and shall not be 
                disclosed to the public by any person.
                    (B) Disclosure.--Information referred to in 
                subparagraph (A) may be disclosed to the public if--
                            (i) the Secretary considers the information 
                        relevant;
                            (ii) the information is revealed in a suit 
                        or administrative hearing brought at the 
                        direction or on the request of the Secretary or 
                        to which the Secretary or any officer of the 
                        Department is a party; and
                            (iii) the information relates to this Act.
                    (C) Misconduct.--A disclosure of confidential 
                information in violation of subparagraph (A) by a Board 
                member or employee of the Board, except as required by 
                other law or allowed under subparagraph (B) or (D), 
                shall be considered a violation of this Act.
                    (D) General statements.--Nothing in this paragraph 
                prohibits--
                            (i) the issuance of general statements, 
                        based on the reports, of the number of persons 
                        subject to the order or statistical data 
                        collected from the reports, if the statements 
                        do not identify the information furnished by 
                        any person; or
                            (ii) the publication, by direction of the 
                        Secretary, of the name of a person violating 
                        the order, together with a statement of the 
                        particular provisions of the order violated by 
                        the person.
            (3) Availability of information.--
                    (A) Exception.--Except as provided in this Act, 
                information obtained under this Act may be made 
                available to another agency of the Federal Government 
                for a civil or criminal law enforcement activity if the 
                activity is authorized by law and if the head of the 
                agency has made a written request to the Secretary 
                specifying the particular information desired and the 
                law enforcement activity for which the information is 
                sought.
                    (B) Penalty.--Any person knowingly violating this 
                subsection, 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 an officer or employee of 
                the Board or the Department, shall be removed from 
                office or terminated from employment, as applicable.
            (5) Withholding information.--Nothing in this Act 
        authorizes withholding information from Congress.
    (i) Use of Assessments.--The order shall provide that the 
assessments collected under section 6 shall be used for payment of the 
expenses in implementing and administering this Act, with provision for 
a reasonable reserve, and to cover those administrative costs incurred 
by the Secretary in implementing and administering this Act, except for 
the salaries of Government employees incurred in conducting referenda.
    (j) Other Terms and Conditions.--The order also shall contain such 
terms and conditions, not inconsistent with this Act, as determined 
necessary by the Secretary to effectuate this Act.

SEC. 6. ASSESSMENTS.

    (a) In General.--During the effective period of an order issued 
pursuant to this Act, assessments shall be--
            (1) levied on all canola or rapeseed produced in the United 
        States and marketed; and
            (2) deducted from the payment made to a producer for all 
        canola or rapeseed sold to a first purchaser.
    (b) Limitation on Assessments.--No more than 1 assessment may be 
assessed under subsection (a) on any canola or rapeseed produced (as 
remitted by a first purchaser).
    (c) Remitting Assessments.--
            (1) In general.--Assessments required under subsection (a) 
        shall be remitted to the Board by a first purchaser.
            (2) Times to remit assessment.--Each first purchaser shall 
        remit the assessment to the Board as provided for in the order.
    (d) Assessment Rate.--
            (1) Initial rate.--The initial assessment rate shall be--
                    (A) 2 cents per hundredweight of canola or rapeseed 
                produced and marketed in a State in which there is a 
                qualified State canola and rapeseed board; and
                    (B) 4 cents per hundredweight of canola or rapeseed 
                produced and marketed in a State in which there is no 
                qualified State canola and rapeseed board.
            (2) Increase.--The assessment rate may be increased on 
        recommendation by the Board to a rate not exceeding 8 cents per 
        hundredweight of canola or rapeseed produced and marketed in a 
        State in which there is a qualified State canola and rapeseed 
        board or 10 cents per hundredweight of canola or rapeseed 
        produced and marketed in a State in which there is no qualified 
        State canola and rapeseed board, unless--
                    (A) after the initial referendum is held under 
                section 7(a), the Board recommends an increase above 10 
                cents per hundredweight; and
                    (B) the increase is approved in a referendum under 
                section 7(b).
    (e) Late Payment Charge.--
            (1) In general.--There shall be a late payment charge 
        imposed on any person who fails to remit, on or before the date 
        provided for in the order, to the Board the total amount for 
        which the person is liable.
            (2) Amount of charge.--The amount of the late payment 
        charge imposed under paragraph (1) shall be prescribed by the 
        Board with the approval of the Secretary.
    (f) Refund of Assessments From Escrow Account.--
            (1) Establishment of escrow account.--During the period 
        beginning on the date on which an order is first issued under 
        section 4(b)(3) and ending on the date on which a referendum is 
        conducted under section 7(a), the Board shall--
                    (A) establish an escrow account to be used for 
                assessment refunds; and
                    (B) place funds in such account in accordance with 
                paragraph (2).
            (2) Placement of funds in account.--The Board shall place 
        in such account, from assessments collected during the period 
        referred to in paragraph (1), an amount equal to the product 
        obtained by multiplying the total amount of assessments 
        collected during the period by 10 percent.
            (3) Right to receive refund.--The Board shall refund to a 
        producer the assessments paid by or on behalf of the producer 
        if--
                    (A) the producer is required to pay the assessment;
                    (B) the producer does not support the program 
                established under this Act; and
                    (C) the producer demands the refund prior to the 
                conduct of the referendum under section 7(a).
            (4) Form of demand.--The demand shall be made in accordance 
        with such regulations, in such form, and within such time 
        period as prescribed by the Board.
            (5) Making of refund.--The refund shall be made on 
        submission of proof satisfactory to the Board that the producer 
        paid the assessment for which the refund is demanded.
            (6) Proration.--If--
                    (A) the amount in the escrow account required by 
                paragraph (1) is not sufficient to refund the total 
                amount of assessments demanded by eligible producers; 
                and
                    (B) the order is not approved pursuant to the 
                referendum conducted under section 7(a);
        the Board shall prorate the amount of the refunds among all 
        eligible producers who demand a refund.
            (7) Program approved.--If the plan is approved pursuant to 
        the referendum conducted under section 7(a), all funds in the 
        escrow account shall be returned to the Board for use by the 
        Board in accordance with this Act.

SEC. 7. REFERENDA.

    (a) Initial Referendum.--
            (1) Requirement.--During the period ending 30 months after 
        the date of the issuance of an order under section 4, the 
        Secretary shall conduct a referendum among producers who, 
        during a representative period as determined by the Secretary, 
        have been engaged in the production of canola or rapeseed for 
        the purpose of ascertaining whether the order then in effect 
        shall be continued.
            (2) Advance notice.--The Secretary shall, to the extent 
        practicable, provide broad public notice in advance of any 
        referendum. The notice shall be provided, without advertising 
        expenses, by means of newspapers, county newsletters, the 
        electronic media, and press releases, through the use of 
        notices posted in State and county Cooperative State Research, 
        Education, and Extension Service offices and county 
        Consolidated Farm Service Agency offices, and by other 
        appropriate means specified in the order. The notice shall 
        include information on when the referendum will be held, 
        registration and voting requirements, rules regarding absentee 
        voting, and other pertinent information.
            (3) Approval of order.--The order shall be continued only 
        if the Secretary determines that the order has been approved by 
        not less than a majority of the producers voting in the 
        referendum.
            (4) Disapproval of order.--If continuation of the order is 
        not approved by a majority of those voting in the referendum, 
the Secretary shall terminate collection of assessments under the order 
within 6 months after the referendum and shall terminate the order in 
an orderly manner as soon as practicable.
    (b) Additional Referenda.--
            (1) In general.--
                    (A) Requirement.--After the initial referendum on 
                an order, the Secretary shall conduct additional 
                referenda, as described in subparagraph (C), if 
                requested by a representative group of producers, as 
                described in subparagraph (B).
                    (B) Representative group of producers.--An 
                additional referendum on an order shall be conducted if 
                requested by 10 percent or more of the producers who 
                during a representative period have been engaged in the 
                production of canola or rapeseed.
                    (C) Eligible producers.--Each additional referendum 
                shall be conducted among all producers who, during a 
                representative period, as determined by the Secretary, 
                have been engaged in the production of canola, 
                rapeseed, or canola or rapeseed products, to determine 
                whether the producers favor the termination or 
                suspension of the order.
            (2) Disapproval of order.--If the Secretary determines, in 
        a referendum conducted under paragraph (1), that suspension or 
        termination of the order is favored by a majority of the 
        producers voting in the referendum, the Secretary shall suspend 
        or terminate, as appropriate, collection of assessments under 
        the order within 6 months after the determination, and shall 
        suspend or terminate the order, as appropriate, in an orderly 
        manner as soon as practicable after the determination.
            (3) Opportunity to request additional referenda.--
                    (A) In general.--Beginning on the date that is 5 
                years after the conduct of a referendum under this Act, 
                and every 5 years thereafter, the Secretary shall 
                provide canola and rapeseed producers an opportunity to 
                request an additional referendum.
                    (B) Method of making request.--
                            (i) In-person requests.--To carry out 
                        subparagraph (A), the Secretary shall establish 
                        a procedure under which a producer may request 
                        a reconfirmation referendum in-person at a 
                        county Cooperative State Research, Education, 
                        and Extension Service office or a county 
                        Consolidated Farm Service Agency office during 
                        a period established by the Secretary, or as 
                        provided in clause (ii).
                            (ii) Mail-in requests.--In lieu of making a 
                        request in person, a producer may make a 
                        request by mail. To facilitate the submission 
                        of requests by mail, the Secretary may make 
                        mail-in request forms available to producers.
                    (C) Notifications.--The Secretary shall publish a 
                notice in the Federal Register, and the Board shall 
                provide written notification to producers, not later 
                than 60 days prior to the end of the period established 
                under subparagraph (B)(i) for an in-person request, of 
                the opportunity of producers to request an additional 
                referendum. The notification shall explain the right of 
                producers to an additional referendum, the procedure 
                for a referendum, the purpose of a referendum, and the 
                date and method by which producers may act to request 
                an additional referendum under this paragraph. The 
                Secretary shall take such other action as the Secretary 
                determines is necessary to ensure that producers are 
                made aware of the opportunity to request an additional 
                referendum.
                    (D) Action by secretary.--As soon as practicable 
                following the submission of a request for an additional 
                referendum, the Secretary shall determine whether a 
                sufficient number of producers have requested the 
                referendum, and take such steps as are necessary to 
                conduct the referendum, as required under paragraph 
                (1).
                    (E) Time limit.--An additional referendum requested 
                under the procedures provided in this paragraph shall 
                be conducted not later than 1 year after the Secretary 
                determines that a representative group of producers, as 
                described in paragraph (1)(B), have requested the 
                conduct of the referendum.
    (c) Procedures.--
            (1) Reimbursement of secretary.--The Secretary shall be 
        reimbursed from assessments collected by the Board for any 
        expenses incurred by the Secretary in connection with the 
        conduct of an activity required under this section, except for 
        the salaries of Government employees associated with conducting 
        a referendum under subsections (a) and (b).
            (2) Date.--Each referendum shall be conducted for a 
        reasonable period of time not to exceed 3 days, established by 
        the Secretary, under a procedure under which producers 
        intending to vote in the referendum shall certify that the 
        producers were engaged in the production of canola, rapeseed, 
        or canola or rapeseed products during the representative period 
        and, at the same time, shall be provided an opportunity to vote 
        in the referendum.

SEC. 8. PETITION AND REVIEW.

    (a) Petition.--
            (1) In general.--A person subject to an order issued under 
        this Act may file with the Secretary a petition--
                    (A) stating that the order, a provision of the 
                order, or an obligation imposed in connection with the 
                order is not established in accordance with law; and
                    (B) requesting a modification of the order or an 
                exemption from the order.
            (2) Hearings.--The petitioner shall be given the 
        opportunity for a hearing on a petition filed under paragraph 
(1), in accordance with regulations issued by the Secretary.
            (3) Ruling.--After a hearing under paragraph (2), the 
        Secretary shall make a ruling on the petition that is the 
        subject of the hearing, which shall be final if the ruling is 
        in accordance with applicable law.
    (b) Review.--
            (1) Commencement of action.--The district court of the 
        United States in any district in which the person who is a 
        petitioner under subsection (a) resides or carries on business 
        shall have jurisdiction to review a ruling on the petition, if 
        a complaint is filed by the person not later than 20 days after 
        the date of the entry of a ruling by the Secretary under 
        subsection (a)(3).
            (2) Process.--Service of process in a proceeding under 
        paragraph (1) shall be conducted in accordance with the Federal 
        Rules of Civil Procedure.
            (3) Remands.--If the court determines, under paragraph (1), 
        that a ruling issued under subsection (a)(3) is not in 
        accordance with applicable law, the court shall remand the 
        matter to the Secretary with directions either--
                    (A) to make such ruling as the court shall 
                determine to be in accordance with law; or
                    (B) to take such further proceedings as, in the 
                opinion of the court, the law requires.
            (4) Enforcement.--The pendency of proceedings instituted 
        under subsection (a) shall not impede, hinder, or delay the 
        Attorney General or the Secretary from taking any action under 
        section 9.

SEC. 9. ENFORCEMENT.

    (a) Jurisdiction.--The district courts of the United States are 
vested with jurisdiction specifically to enforce, and to prevent and 
restrain any person from violating, an order or regulation made or 
issued under this Act.
    (b) Referral to Attorney General.--A civil action authorized to be 
commenced under this section shall be referred to the Attorney General 
for appropriate action, except that the Secretary shall not be required 
to refer to the Attorney General a violation of this Act if the 
Secretary believes that the administration and enforcement of this Act 
would be adequately served by providing a suitable written notice or 
warning to the person who committed the violation or by administrative 
action under section 8.
    (c) Civil Penalties and Orders.--
            (1) Civil penalties.--
                    (A) In general.--Any person who willfully violates 
                any provision of an order or regulation issued by the 
                Secretary under this Act, or who fails or refuses to 
                pay, collect, or remit an assessment or fee required of 
                the person under an order or regulation, may be 
                assessed--
                            (i) a civil penalty by the Secretary of not 
                        more than $1,000 for each violation; and
                            (ii) in the case of a willful failure to 
                        pay, collect, or remit an assessment as 
                        required by an order or regulation, an 
                        additional penalty equal to the amount of the 
                        assessment.
                    (B) Separate offense.--Each violation under 
                subparagraph (A) shall be a separate offense.
            (2) Cease-and-desist orders.--In addition to, or in lieu 
        of, a civil penalty under paragraph (1), the Secretary may 
        issue an order requiring a person to cease and desist from 
        continuing a violation.
            (3) Notice and hearing.--No penalty shall be assessed, or 
        cease-and-desist order issued, by the Secretary under this 
        subsection unless the person against whom the penalty is 
        assessed or the order is issued is given notice and opportunity 
        for a hearing before the Secretary with respect to the 
        violation.
            (4) Finality.--The order of the Secretary assessing a 
        penalty or imposing a cease-and-desist order under this 
        subsection shall be final and conclusive unless the affected 
        person files an appeal of the order with the appropriate 
        district court of the United States in accordance with 
        subsection (d).
    (d) Review by District Court.--
            (1) Commencement of action.--Any person who has been 
        determined to be in violation of this Act, or against whom a 
        civil penalty has been assessed or a cease-and-desist order 
        issued under subsection (c), may obtain review of the penalty 
        or order by--
                    (A) filing, within the 30-day period beginning on 
                the date the penalty is assessed or order issued, a 
                notice of appeal in--
                            (i) the district court of the United States 
                        for the district in which the person resides or 
                        conducts business; or
                            (ii) the United States District Court for 
                        the District of Columbia; and
                    (B) simultaneously sending a copy of the notice by 
                certified mail to the Secretary.
            (2) Record.--The Secretary shall file promptly, in the 
        appropriate court referred to in paragraph (1), a certified 
        copy of the record on which the Secretary has determined that 
        the person has committed a violation.
            (3) Standard of review.--A finding of the Secretary under 
        this section shall be set aside only if the finding is found to 
        be unsupported by substantial evidence.
    (e) Failure To Obey Orders.--Any person who fails to obey a cease-
and-desist order issued under this section after the order has become 
final and unappealable, or after the appropriate United States district 
court has entered a final judgment in favor of the Secretary, shall be 
subject to a civil penalty assessed by the Secretary, after opportunity 
for a hearing and for judicial review under the procedures specified in 
subsections (c) and (d), of not more than $5,000 for each offense. Each 
day during which the failure continues shall be considered as a 
separate violation of the order.
    (f) Failure To Pay Penalties.--If a person fails to pay an 
assessment of a civil penalty under this section after the assessment 
has become a final and unappealable order, or after the appropriate 
United States district court has entered final judgment in favor of the 
Secretary, the Secretary shall refer the matter to the Attorney General 
for recovery of the amount assessed in the district court in which the 
person resides or conducts business. In an action for recovery, the 
validity and appropriateness of the final order imposing the civil 
penalty shall not be subject to review.
    (g) Additional Remedies.--The remedies provided in this Act shall 
be in addition to, and not exclusive of, other remedies that may be 
available.

SEC. 10. INVESTIGATIONS AND POWER TO SUBPOENA.

    (a) Investigations.--The Secretary may make such investigations as 
the Secretary considers necessary--
            (1) for the effective administration of this Act; and
            (2) to determine whether any person has engaged or is 
        engaging in an act that constitutes a violation of this Act, or 
        an order, rule, or regulation issued under this Act.
    (b) Subpoenas, Oaths, and Affirmations.--
            (1) In general.--For the purpose of an investigation under 
        subsection (a), the Secretary may administer oaths and 
        affirmations, and issue subpoenas to require the production of 
        any records that are relevant to the inquiry.
            (2) Administrative hearings.--For the purpose of an 
        administrative hearing held under section 8 or 9, the presiding 
        officer is authorized to administer oaths and affirmations, 
        subpoena and compel the attendance of witnesses, take evidence, 
        and require the production of any records that are relevant to 
        the inquiry. The attendance of witnesses and the production of 
        records may be required from any place in the United States.
    (c) Aid of Courts.--In the case of contumacy by, or refusal to obey 
a subpoena issued to, any person, the Secretary may invoke the aid of 
any court of the United States within the jurisdiction of which the 
investigation or proceeding is carried on, or where the person resides 
or carries on business, in order to enforce a subpoena issued by the 
Secretary under subsection (b). The court may issue an order requiring 
the person to comply with the subpoena.
    (d) Contempt.--A failure to obey an order of the court under this 
section may be punished by the court as contempt of the court.
    (e) Process.--Process may be served on a person in the judicial 
district in which the person resides or conducts business or wherever 
the person may be found.
    (f) Hearing Site.--The site of a hearing held under section 8 or 9 
shall be in the judicial district where the person affected by the 
hearing resides or has a principal place of business.

SEC. 11. SUSPENSION OR TERMINATION OF AN ORDER.

    The Secretary shall, whenever the Secretary finds that an order or 
a provision of an order obstructs or does not tend to effectuate the 
declared policy of this Act, terminate or suspend the operation of the 
order or provision. The termination or suspension of an order shall not 
be considered an order within the meaning of this Act.

SEC. 12. REGULATIONS.

    The Secretary may issue such regulations as are necessary to carry 
out this Act, including regulations relating to the assessment of late 
payment charges.

SEC. 13. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated for each 
fiscal year such sums as are necessary to carry out this Act.
    (b) Administrative Expenses.--Funds appropriated under subsection 
(a) shall not be available for payment of the expenses or expenditures 
of the Board in administering a provision of an order issued under this 
Act.
                                 <all>
HR 2509 IH----2
HR 2509 IH----3
HR 2509 IH----4