[Federal Register Volume 64, Number 242 (Friday, December 17, 1999)]
[Notices]
[Pages 70682-70686]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-32730]


 ========================================================================
 Notices
                                                 Federal Register
 ________________________________________________________________________
 
 This section of the FEDERAL REGISTER contains documents other than rules 
 or proposed rules that are applicable to the public. Notices of hearings 
 and investigations, committee meetings, agency decisions and rulings, 
 delegations of authority, filing of petitions and applications and agency 
 statements of organization and functions are examples of documents 
 appearing in this section.
 
 ========================================================================
 

  Federal Register / Vol. 64, No. 242 / Friday, December 17, 1999 / 
Notices  

[[Page 70682]]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service
[AMS-00-01]


Guidelines for AMS Oversight of Commodity Research and Promotion 
Programs

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Notice; request for comment.

-----------------------------------------------------------------------

SUMMARY: The Department of Agriculture (USDA) is seeking comments on 
the ``Guidelines for AMS Oversight of Commodity Research and Promotion 
Programs'' (Guidelines). USDA's Agricultural Marketing Service (AMS) 
developed the guidelines to facilitate uniform oversight of national 
research and promotion programs which have been implemented under 
numerous Federal statutes. The guidelines are part of the findings and 
recommendations of the Research and Promotion Task Force (task force) 
that was created by Secretary Glickman in November 1998. The task force 
held a public meeting in March 1999 and held several working meetings 
to review the oversight responsibilities of AMS and board operations.

DATES: Comments must be received on or before March 17, 2000.

FOR FURTHER INFORMATION CONTACT: Interested persons are invited to 
submit written comments concerning this notice to: Barbara C. Robinson, 
Deputy Associate Administrator, Room 3069 South Bldg., U.S. Department 
of Agriculture, AMS, OA, Washington, DC 20250; telephone (202) 720-
4276; fax (202) 690-3967. Comments should be submitted in triplicate 
and will be made available for public inspection at the above address 
during regular business hours. Comments may also be submitted 
electronically to: [email protected]. All comments should 
indicate the docket number and the date and page number of this issue 
of the Federal Register. A copy of this notice may be found at: 
www.AMS.USDA.Gov/R&P/.

SUPPLEMENTARY INFORMATION: This notice is authorized under the 
following Federal statutes: the Beef Promotion and Research [7 U.S.C. 
2901-2911]; the Canola and Rapeseed Research, Promotion, and Consumer 
Information Act [7 U.S.C. 7441-7452]; the Commodity Promotion, 
Research, and Information Act of 1996 [7 U.S.C. 7411-7425]; the Cotton 
Research and Promotion Act [7 U.S.C. 2101-2118]; the Dairy Production 
Stabilization Act of 1983 [7 U.S.C. 4501-4513]; the Egg Research and 
Consumer Information Act [7 U.S.C. 2701-2718]; the Floral Research and 
Consumer Information Act [7 U.S.C. 4301-4319]; the Fluid Milk Promotion 
Act of 1990 [7 U.S.C. 6401-6417]; the Fresh Cut Flowers and Fresh Cut 
Greens Promotion and Consumer Information Act [7 U.S.C. 6801-6814]; the 
Honey Research, Promotion, and Consumer Information Act, as amended [7 
U.S.C. 4601-4612]; the Lime Research, Promotion, and Consumer 
Information Act, as amended [7 U.S.C. 6201-6212]; the Mushroom 
Promotion, Research, and Consumer Information Act of 1990 [7 U.S.C. 
6101-6112]; the National Kiwifruit Research, Promotion, and Consumer 
Information Act [7 U.S.C. 7461-7473]; the Pecan Promotion and Research 
Act of 1990 [7 U.S.C. 6001-6013]; the Popcorn Promotion, Research, and 
Consumer Information Act [7 U.S.C. 7481-7491]; the Pork Promotion, 
Research, and Consumer Information Act [7 U.S.C. 4801-4819]; the Potato 
Research and Promotion Act, as amended [7 U.S.C. 2611-2627]; the Sheep 
Promotion, Research, and Information Act of 1994 [7 U.S.C. 7101-7111]; 
the Soybean Promotion, Research, and Consumer Information Act [7 U.S.C. 
6301-6311]; the Watermelon Research and Promotion Act, as amended [7 
U.S.C. 4901-4916]; and the Wheat and Wheat Foods Research and Nutrition 
Education Act [7 U.S.C. 3401-3417].
    There are currently 13 active programs under these statutes: beef, 
cotton, dairy, eggs, fluid milk, honey, mushrooms, peanuts, popcorn, 
pork, potatoes, soybeans, and watermelons.
    AMS is seeking public comment on the Guidelines which have been 
developed to promote uniformity in the oversight of these and any 
future programs.

Guidelines for AMS Oversight of Commodity Research and Promotion 
Programs

Table of Contents

Introduction
Purpose of Guidelines
Administration
    Administrative Reviews
    Audits
    Board Administrative Expenses
    Board Meetings
    Board Member Orientation
    Board Travel and Meeting Expenses
    Bylaws and Policy Statements
    Compliance
    Investment of Funds
    Legal Counsel
    User Fees
Budgets
Conflict of Interest
Contracts
    Competitive Bids
    Contract Approval
    Contract Compliance
Diversity and Nominations
    Diversity on Boards
    Nominations
Financial Accountability
Influencing Legislation or Government Policy or Action
Other Government Agencies
Program Progress and Evaluation
Promotional and Educational Materials
Referendum Policies
    Bonds
    Influencing Voters
    Petitions for Referenda
    Referendum Ballots
    Refunds for Programs under the Generic Statute
Appendix I: List of Industry-Specific Legislation

Introduction

    National research and promotion programs are designed to strengthen 
the position of a commodity in the marketplace, maintain and expand 
existing domestic and foreign markets, and develop new uses and markets 
for specified agricultural commodities. They are administered by the 
U.S. Department of Agriculture's (USDA) Agricultural Marketing Service 
(AMS) and funded by assessments collected from designated segments of 
industry.
    Until 1996, industry-specific legislation had to be passed by 
Congress before a national program could be established. (See Appendix 
I.) However, under the Commodity Promotion, Research, and Information 
Act of 1996 (generic statute), industry groups may

[[Page 70683]]

submit a proposal directly to AMS requesting that a program be 
implemented. All programs require rulemaking and a referendum to 
determine if those who pay assessments approve the programs.
    The programs are run by industry boards and councils (boards) 
appointed by the Secretary of Agriculture (Secretary) from industry 
nominations.

Purpose of Guidelines

    These Guidelines are designed to facilitate the application of the 
legislative and regulatory provisions of the acts and orders or plans 
(orders), subject to the unique language of individual legislation as 
determined by AMS. They are designed to promote uniformity in the 
oversight of all commodity research and promotion programs. The 
Guidelines shall be reviewed annually and amended as necessary.

Administration

Administrative Reviews

    To the extent practicable, AMS will conduct periodic administrative 
reviews of board operations to ensure adherence to AMS policy. Selected 
areas for examination will include, but not be limited to, travel 
expenses of board members and staff, contract compliance, and 
investment of funds. In general, boards should operate through an 
appropriate set of oversight committees that deal with each board's 
major budget items (see Budgets section of these Guidelines); board 
members should be given adequate information on all significant 
projects, proposals, issues, etc., and an outline of options for their 
consideration in decision making; and the board and its committees 
should document their decisions in an official set of minutes. Board 
members must be given adequate information on ongoing operations to 
allow the board to exercise appropriate management control. This can be 
accomplished through a series of progress reports on ongoing activities 
and accomplishment reports on completed activities.

Audits

    Each board shall engage a certified public accountant (CPA) to 
perform a comprehensive financial statement audit each year.
    These audits must be conducted in accordance with the Generally 
Accepted Government Auditing Standards (GAGAS) prescribed by the 
Comptroller General of the United States. Such an audit must cover the 
financial statements specified in the Financial Accountability section 
of these Guidelines and must include such procedures as are necessary 
for the auditor to express an opinion on the financial statements and 
such additional procedures as may be necessary for the auditor to 
express an opinion on the board's internal control system and its 
compliance with all applicable laws and regulations including the 
program's enabling statute, the order which established the program, 
and AMS policies and guidelines.
    AMS shall: (a) Review and approve each board's contract with its 
CPA; (b) review and approve the details of the engagement between the 
board and its CPA; (c) have the option of attending any entrance or 
exit conference with the CPA; and (d) receive a copy of the CPA's audit 
report and copies of all correspondence between the board and its CPA. 
AMS officials will evaluate each audit report and may request 
additional information if needed. Boards must promptly follow up on all 
audit findings and auditor's recommendations and must fully inform AMS 
of all such activity.
    If special circumstances arise, (e.g., a theft or loss of control 
of board assets or a serious breakdown in internal controls), AMS may 
require a board to engage a CPA to perform a one-time, focused review 
to ascertain the causes and results of a problem and to make 
recommendations for corrective or preventive action.

Board Administrative Expenses

    Recognizing inherent differences in implementing laws or 
regulations, scope, and funding among promotion programs, AMS expects 
each board and state association or other organization, authorized by 
law to receive assessment funding, to establish and maintain the 
minimum level of annual administrative expenses necessary to 
efficiently and effectively carry out the programs mandated by law. 
Each board shall include its annual administrative expenses as a 
separate item in its annual report. AMS or the board may require a 
state association or other organization receiving board funds to report 
its annual administrative expenses in a similar manner. Each board must 
adhere to its fiduciary responsibilities and ensure that all monies are 
spent wisely and in accordance with laws and regulations.
    The Secretary's costs for oversight of the commodity boards should 
not be considered as an administrative expense of the boards as these 
charges are outside of the boards' control and management.
    Pursuant to 7 U.S.C. 7401, Commodity Promotion and Evaluation, AMS 
will annually provide to the Committee on Agriculture of the House of 
Representatives and the Committee on Agriculture, Nutrition, and 
Forestry of the Senate information on the administrative expenses of 
each research and promotion board.

Board Meetings

    AMS requires advance notification from the boards of all board and 
committee meetings as well as conference calls. AMS will attend all 
board meetings and participate in conference calls and committee 
meetings when deemed necessary by AMS.
    In addition, it is important for boards to recognize that there are 
many religious practices, and boards should keep this in mind when 
scheduling meetings.

Board Member Orientation

    AMS will participate in the orientation of new board members for 
all programs. AMS will discuss USDA oversight responsibilities and 
policies, including these Guidelines, so that new members can 
understand and comply with them as well as the applicable statute and 
order. AMS will require that all board members certify that they 
understand the prohibition against using board funds to influence 
legislation or government action or policy. The Office of the General 
Counsel (OGC) will participate in the initial orientation of members of 
new boards at the board's organizational meeting. OGC may participate, 
at the request of AMS, in the orientation of new board members for 
existing programs.

Board Travel and Meeting Expenses

    Board members are not allowed a fee or compensation for board 
service other than reimbursement for reasonable travel costs. However, 
board members and employees (including staff contracted to perform 
management and administrative services for a board) may be reimbursed 
for reasonable and appropriate expenses.
    AMS will provide guidance for boards to develop a written policy, 
approved by AMS, for travel and meeting expenses. In addition, boards 
must have in place sufficient internal controls to prevent 
reimbursements or expenditures for unreasonable and potentially 
controversial travel and meeting expenses. Unreasonable and potentially 
controversial travel and meeting expenses include, but are not limited 
to, first class travel, member golf outings, and entertainment that 
does not directly

[[Page 70684]]

further the purposes of the acts and orders.
    Boards are prohibited from using assessment funds for expenses for 
spouses or other family members of board members or employees, open 
bars, and adult entertainment.

Bylaws and Policy Statements

    AMS will review for approval the bylaws and amendments to bylaws 
developed by the boards and require boards to establish policies which 
cover board member and staff responsibilities, meeting procedures, and 
travel and related expenses.

Compliance

    The respective boards are responsible for promptly identifying 
violations and violators and for securing compliance with the statutes, 
order, and rules and regulations wherever possible. AMS will develop 
with each board requirements and a timetable for the referral of 
compliance cases to AMS for appropriate action. Upon receipt of 
compliance cases, AMS will take one or more of the following actions: 
(1) Send a certified letter requesting compliance within a specified 
period; (2) Utilize National Finance Center collection procedures, 
including administrative offset; and/or (3) Refer violations to the OGC 
for action. Before discharging any delinquent debt, AMS will take all 
appropriate steps to collect such debt.

Investments of Funds

    AMS shall require the boards to follow the AMS investment policy to 
ensure proper investment of board funds.

Legal Counsel

    OGC will provide all legal counsel to the boards, except as may be 
provided for under a Memorandum of Understanding (MOU) between a board 
and OGC. OGC will review all existing MOU's and recommend any needed 
changes to ensure consistency among the boards.

User Fees

    The authorizing legislation for each program requires the various 
boards to reimburse AMS for its costs in overseeing the programs. It is 
the policy of AMS that all of these programs be charged in a fair and 
equitable manner and that all costs be covered.
    All direct program costs should be charged to the appropriate 
program. These costs include salaries and benefits of employees 
directly involved in the daily workload associated with commodity 
boards. Other costs would be travel to board meetings, rent for office 
space for the employees directly working on the programs, printing of 
any documents, supplies, equipment, and anything else needed to 
complete the necessary work involved in overseeing the programs.
    Direct program costs, including costs billed to AMS by other USDA 
and government agencies for authorized services provided in the support 
of the various boards, will be charged to the appropriate board. In 
addition, costs billed to AMS by states for actual unemployment claims 
paid to former board employees will be charged to the appropriate board 
when the bills are received by AMS.
    The cost of agency overhead should also be charged to the boards. 
Overhead includes those costs incurred by the agency, the respective 
Deputy Administrator, and other offices involved in board oversight. 
These costs should be distributed in proportion to the direct program 
cost. In order to ensure that these costs are readily available for 
billing, internal AMS distributive subcenters should include a 
percentage charge for each program. As an option, depending on the 
organization levels involved in supervision of the boards and the 
amount of oversight provided, Deputy Administrator charges may be 
included in direct costs. The cost of agency overhead for the oversight 
of the boards is also charged to the boards.

Budgets

    AMS will review for approval board-submitted budgets prior to the 
start of the board's fiscal year. When submitting budgets to AMS, the 
boards must include detailed information regarding administrative 
expenses and a written description of contract costs. Budget 
submissions must include, at a minimum, the following components:
    (1) A statement of objectives and strategy in each major program 
area (promotion, advertising, research, etc.), including reasons for 
significant changes from the preceding budget period.
    (2) A summary of anticipated revenue (assessments, interest, 
donations, etc.) and anticipated refunds, where applicable, with 
comparative data for at least one preceding year.
    (3) A summary of proposed expenditures by major program areas with 
comparative data for at least one preceding year.
    (4) Staff and administrative expense breakdown, with comparative 
data for at least one preceding year.
    AMS will review for approval amendments or additions to approved 
budgets, including shifting of program funds from one major area to 
another. Shifts that are consistent with governing bylaws need not have 
prior approval by AMS.

Conflict of Interest

    AMS will provide guidance to assist boards in developing written 
policies to safeguard against and deal with conflict of interest 
situations, and such policies will be reviewed and approved by AMS. 
These policies shall include, at a minimum, the requirements that: (1) 
Board members and employees must disclose any relationship with any 
organization or company that has a contract with the board or that 
operates a qualified state or regional program and (2) No board member 
may vote on any matter in which the member has a financial interest, or 
regarding any contract with any entity of which the member is a member 
of the board.
    In addition, each board should ensure that its responsibilities and 
duties have not been delegated or otherwise relinquished to another 
organization.
    Programs issued under the generic statute shall comply with the 
conflict of interest provisions of that statute.

Contracts

Competitive Bids

    Boards must follow sound business principles and practices in 
awarding contracts. Fundamental elements of good contracting are the 
identification of realistic alternates and the use of competitive 
bidding procedures. AMS believes it is each board's responsibility to 
incorporate these principles and practices into its operation 
procedures. Accordingly, each board must (1) develop an acquisition 
plan that specifies its processes for identifying alternative sources 
and obtaining competitive bids and (2) assign to a board committee the 
responsibility for monitoring contracting practices. These practices 
should also be reviewed regularly by the board's CPA.
    The principles applied in awarding board contracts must also be 
followed by those contractors in awarding subcontracts.
    If competitive bidding is not used, a reason for not doing so will 
be stated and placed in the board's contract file along with an 
alternative process to verify the reasonableness of the cost.
    None of the requirements stated here shall be interpreted to (1) 
prohibit multi-year contracting or (2) require boards to select the 
lowest cost bidder when, in the board's judgment, other factors are 
deemed more important.

[[Page 70685]]

Contract Approval

    AMS will review for approval written contracts for the development 
and carrying out of programs or projects of promotion, advertising, 
development, or education and written contracts for legal assistance 
and other consultants. AMS will review contracts for conformance with 
the applicable statutes and regulations and with AMS and USDA 
requirements. Contracts must include a provision prohibiting the use of 
assessment funds for lobbying activities. Contracts must be approved 
prior to the start of activities to be carried out under the contract. 
AMS will require boards to formally notify potential contractors that 
any work they undertake prior to contract approval by USDA is at their 
own risk as boards are not financially liable if the contract is not 
approved by USDA. AMS reserves the right to review for approval any and 
all contracts and subcontracts and to require AMS prior approval of any 
such contracts.
    When a board relies heavily on its industry trade association in 
carrying out its program, there must be highly effective ``fire walls'' 
between board activities and other activities of the trade association. 
These fire walls should include: (1) Completely separate accounting 
systems and thorough segregation of board funds from trade association 
funds, all of which should be audited each year by the board's 
independent CPA; (2) Careful computation and documentation of the trade 
association's overhead or indirect charges to the board, supported by 
strict recordkeeping; and (3) Strict policies on what the trade 
association may and may not do with checkoff funds.

Contract Compliance

    Boards are responsible for ensuring compliance by the contractors 
and subcontractors with the terms of their contracts.

Diversity and Nominations

Diversity on Boards

    It is USDA policy that membership on industry-governed boards and 
committees accurately reflect, to the extent practicable, the diversity 
of individuals served by the programs. Diversity includes the size of 
operation, segment of the industry, and geographical distribution as 
well as gender, ethnicity, race, and disability.

Nominations

    To facilitate the nomination of individuals to serve as members of 
boards and nominating entities, AMS will work with the boards to 
establish time frames to seek to avoid bottlenecks in the clearance 
process within USDA. Boards are urged to provide, to the extent 
possible, statements to nominating entities that ``all nominees must be 
in good standing with Department of Agriculture programs.'' AMS will 
also include this statement in news releases and other publicity 
announcing nominations for boards and nominating entities.

Financial Accountability

    Each board must maintain a comprehensive financial accounting 
system and must maintain and make available to USDA representatives, on 
request, all appropriate books and records.
    Each board must prepare a comprehensive set of annual financial 
statements. These statements, which must be prepared in accordance with 
generally accepted accounting principles, should include:
    (1) a balance sheet;
    (2) a statement of revenues and expenses;
    (3) a statement of changes in fund balance;
    (4) a statement of cash flows;
    (5) a schedule, showing the following in three columns and 
containing footnotes explaining any significant variances: (a) The 
USDA-approved budget (plan) by each major category; (b) The annual 
expenditures against each budget category (actual); and (c) and 
variances between planned and actual expenditures; and
    (6) any other financial statements, schedules, or explanations as 
may be requested by the board or USDA to provide sufficient information 
for effective management, monitoring, or decision making.
    Where refunds are applicable, the financial records should include 
all appropriate details on assessments paid, requests for refunds, and 
refunds issued.

Influencing Legislation or Government Policy or Action

    In the process of monitoring board activities, it is important for 
AMS to be aware of any actions which may be in conflict with the 
legislative prohibitions regarding influencng legislative and/or 
government policy. This prohibition on the use of check-off funds 
applies equally to any trade/producer organizations funded wholly or in 
part by a particular board or contractors to the boards.
    However, this does not affect a trade/producer organization's 
ability to lobby with non-check-off funds. Likewise, there are no 
restrictions on individual board members, except when acting in an 
official capacity for the board.
    Influencing legislation is defined as (1) any attempt to influence 
any legislation or any attempt to affect the opinions of the general 
public or any segment thereof concerning legislation; or (2) any 
attempt to influence any legislation through communication with any 
member or employee of a legislative body or with any governmental 
official who may participate in the formulation of legislation.
    Influencing of governmental policy or action is defined as any 
action the principal purpose of which is to bring about a change in 
existing policy or regulation or affect the outcome of proposed policy 
or regulation, except those actions which are specifically provided for 
in the act, order, and/or rules and regulations. Exceptions: With the 
approval of the Secretary, a board may request a ceremonial government 
action, such as the proclamation of a state or national month for the 
commodity it represents, and may provide information to USDA regarding 
government purchases of the commodity it represents.
    These prohibitions do not preclude commodity boards from providing 
factual information to government officials, provided the information 
is presented in an unbiased manner and does not advocate a specific 
course of action.
    AMS will require each board member to acknowledge in writing that 
the person understands the prohibition on using assessment funds for 
lobbying or attempting to influence legislation, government action or 
government policy, and agrees to act in accordance with that 
prohibition.

Other Government Agencies

    AMS will be responsible for developing appropriate working 
relationships with other government agencies which have 
responsibilities related to these programs. For example, AMS will be 
responsible for ensuring close coordination with the FAS any time 
check-off funds are used for foreign activities. FAS has oversight 
responsibility of the Foreign Market Development and the Market Access 
Programs, and checkoff funding is made available to some participants 
in these FAS supervised programs. However, in all cases, FAS must have 
the opportunity to approve the boards' budgets, plans, and projects 
that focus on international activities. FAS approval will be subject to 
compliance with the checkoff legislation as well as other FAS 
requirements. Likewise, for programs with import assessment provisions, 
it is the responsibility of AMS to maintain a close liaison with

[[Page 70686]]

the U.S. Customs Service. Similarly, as required by section 1999T of 
the Food, Agriculture, Conservation, and Trade Act of 1990, AMS will 
consult with the United States Trade Representative on any proposed new 
or amended commodity promotion order which would assess imports.

Program Progress and Evaluation

    AMS will receive copies of annual progress reports on program 
activities and expenditures.
    Not less often than every five years, each board shall obtain an 
independent evaluation of the effectiveness of its generic promotion 
program. Each board shall submit to the Secretary and make available to 
the public the results of each periodic independent evaluation.
    The methodology of the results must be credible, shareholder 
returns must be estimated, and the results must be presented in non-
technical terms. Ideally, each board will commission econometric 
studies or other formal statistical models which would be subject to 
peer review. However, AMS recognizes differences in the availability of 
data and financial resources among the various boards. Therefore, other 
types of evaluation may also be used to meet the requirement to conduct 
periodic evaluations. Other types of evaluation include, but are not 
limited to, focus group interviews, Nielson and Gallup polls, National 
Eating Trend data, and supermarket scanning data. Boards which do not 
conduct econometric evaluations are required to submit their evaluation 
plans to AMS for review and comment.

Promotional and Educational Materials

    AMS will review all plans and projects of commodity boards and 
approve those that are in compliance with the applicable legislative 
authority.
    AMS will disapprove any advertising that it considers to be 
disparaging to another commodity or false and misleading. AMS will also 
disapprove any promotional material that it deems derogatory to 
individuals with respect to ethnicity, gender, race, physical 
abilities, or religion. The commodity programs may refer any 
questionable advertisements to the AMS Functional Committee on Research 
and Promotion Programs for review and for its recommendation.
    Each board shall regularly provide to AMS all commodity promotional 
campaigns--advertising, consumer education programs, and other 
promotional materials for review and approval and the advertisements or 
printed materials generated in the campaign.
    AMS review of nutritional claims will include verification of the 
supporting data to determine compliance with USDA Agricultural Handbook 
8-1, the Dietary Guidelines for Americans, Federal Trade Commission 
policy, Food and Drug Administration food labeling regulations, and 
other applicable Federal regulations.

Referendum Policies

Bonds

    AMS will require the proponent of a new program to post a bond or 
submit an irrevocable letter of credit to cover any up-front referendum 
and other implementation costs.

Influencing Voters

    Boards, board members, and board employees acting in their official 
capacities are prohibited from attempting to influence voters, and no 
board funds may be expended for that purpose. Board funds may not be 
used to state a position for or against a referendum issue or a 
petition or to promote a ``yes'' or a ``no'' vote in a referendum.
    During period of referenda, requests for referenda, polls, or any 
petition process, however, board funds may be used: (1) For 
communication activities to inform industry how checkoff dollars are 
being spent and (2) to provide unbiased factual information concerning 
the referendum, poll, or petition process. Board funds may also be used 
to encourage those covered by a program to exercise their right to 
vote.

Petitions for Referenda

    All of the statutes provide some type of mechanism for industry to 
request a referendum to determine if an individual program should be 
terminated. The most common requirement is that the Secretary must hold 
a referendum at the request of 10 percent or more of the persons who 
are covered by the program.

Referendum Ballots

    Unless another method is required by statute, AMS will conduct all 
referenda by mail ballot, fax, or electronic means (when proper 
safeguards are in place). Further, in order to facilitate the 
verification of voter eligibility and the validity of ballots cast in 
referenda, the voters' name, address, telephone number, and 
certification will not be separated from the vote. All referenda 
includes referenda on implementing, continuing, amending, suspending, 
or terminating national research and promotion programs.

Refunds for Programs Under the Generic Statute

    When a new program is implemented with a delayed referendum and 
refunds of assessments are required if the industry votes to terminate 
the program:
    (1) boards must disseminate procedures for receiving refunds to all 
persons subject to assessments under the program in a timely manner;
    (2) boards, board members, and board employees may not exert 
pressure of any kind to discourage the application for refunds;
    (3) the names of individuals applying for or obtaining refunds must 
be kept confidential and made available only to appropriate staff 
personnel; and
    (4) refund information released will be limited to the aggregate 
dollar amount and the number of persons receiving refunds by State, 
region, or nationwide. No information may be released that would in any 
way readily identify individual persons or firms.

Appendix I--Industry-Specific Legislation

Legislation for Current Programs

Beef Promotion and Research Act (1985)
Cotton Research and Promotion Act (1996)
Dairy Production Stabilization Act (1983)
Egg Research and Consumer Information Act (1974)
Fluid Milk Promotion Act of 1990
Honey Research Promotion and Consumer Information Act of 1984)
Mushroom Promotion, Research and Consumer Information Act of 1990
Popcorn Promotion, Research, and Consumer Information Act of 1996
Pork Promotion, Research, and Consumer Information Act of 1985
Potato Research and Promotion Act (1971)
Soybean Promotion, Research, and Consumer Information Act of (1990)
Watermelon Research and Promotion Act (1985)

Other Legislation

Canola and Rapeseed Research, Promotion, and Consumer Information 
Act of (1996)
Floral Research and Consumer Information Act of (1981)
Fresh Cut Flowers and Fresh Cut Greens Promotion and Information Act 
of 1993
Lime Research, Promotion and Consumer Information Act of 1990
National Kiwifruit Research, Promotion, and Consumer Information Act 
(1996)
Pecan Promotion and Research Act of 1990
Sheep Promotion, Research and Information Act of 1994
Wheat and Wheat Foods Research and Nutrition Education Act (1977)

    Dated: December 14, 1999.
Kathleen A. Merrigan,
Administrator, Agricultural Marketing Service.
[FR Doc. 99-32730 Filed 12-15-99; 12:00 pm]
BILLING CODE 3410-02-P