US (United States) Code. Title 7. Chapter 26: Agricultural adjustment

Codificación normativa de EEUU (Estados Unidos). Legislación federal estadounidense # Agriculture

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-CITE-

7 USC CHAPTER 26 - AGRICULTURAL ADJUSTMENT 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 26 - AGRICULTURAL ADJUSTMENT

.

-HEAD-

CHAPTER 26 - AGRICULTURAL ADJUSTMENT

-MISC1-

SUBCHAPTER I - DECLARATION OF CONDITIONS AND POLICY

Sec.

601. Declaration of conditions.

602. Declaration of policy; establishment of price basing period;

marketing standards; orderly supply flow; circumstances for

continued regulation.

SUBCHAPTER II - COTTON OPTION CONTRACTS

603. Government owned cotton; transfer to Secretary of Agriculture;

powers of Secretary.

604. Borrowing money; expenditures; authority of Secretary.

605, 606. Repealed.

607. Sale by Secretary; additional options; validation of

assignments; publication of information.

SUBCHAPTER III - COMMODITY BENEFITS

608. Powers of Secretary.

(1) Investigations; proclamation of findings.

(2) Agreements for adjustment of acreage or

production and for rental or benefit payments.

(3) Payments by Secretary.

(4) Additional investigation; suspension of exercise

of powers.

(5) Hearings; notice.

(6) Commodity in which payment made.

(7) Additional payments to producers of sugar beets

or sugarcane.

(8) Pledge by rice producer for production credit of

right to rental or benefit payments.

(9) Advances of payments on stored nonperishable

commodity.

608-1. Omitted.

608a. Enforcement of chapter.

(1) to (4) Omitted.

(5) Forfeitures.

(6) Jurisdiction of district courts.

(7) Duties of United States attorneys; investigation

of violations by Secretary; hearings.

(8) Cumulative remedies.

(9) ''Person'' defined.

608a-1. Repealed.

608b. Marketing agreements; exemption from antitrust laws;

inspection requirements for handlers not subject to agreements.

608c. Orders regulating handling of commodity.

(1) Issuance by Secretary.

(2) Commodities to which applicable; single

commodities and separate agricultural

commodities.

(3) Notice and hearing.

(4) Finding and issuance of order.

(5) Milk and its products; terms and conditions of

orders.

(6) Other commodities; terms and conditions of

orders.

(7) Terms common to all orders.

(8) Orders with marketing agreement.

(9) Orders with or without marketing agreement.

(10) Manner of regulation and applicability.

(11) Regional application.

(12) Approval of cooperative association as approval

of producers.

(13) Retailer and producer exemption.

(14) Violation of order; penalty.

(15) Petition by handler for modification of order or

exemption; court review of ruling of Secretary.

(16) Termination of orders and marketing agreements.

(17) Provisions applicable to amendments.

(18) Milk prices.

(19) Producer or processor referendum for approving

order.

608c-1. Repealed.

608d. Books and records.

608e. Repealed.

608e-1. Import prohibitions on specified foreign produce.

(a) Import prohibitions on tomatoes, avocadoes,

limes, etc.

(b) Extension of time for marketing order; factors;

review.

(c) Notification of United States Trade

Representative of import restrictions;

advisement of Secretary of Agriculture.

(d) Proposed prohibition or regulation; authority of

Secretary of Agriculture to proceed.

608f. Repealed.

609. Processing tax; methods of computation; rate; what constitutes

processing; publicity as to tax to avoid profiteering.

610. Administration.

(a) Appointment of officers and employees; impounding

appropriations.

(b) State and local committees or associations of

producers; handlers' share of expenses of

authority or agency.

(c) Regulations; penalty for violation.

(d) Regulations of Secretary of the Treasury.

(e) Review of official acts.

(f) Geographical application.

(g) Officers; dealing or speculating in agricultural

products; penalties.

(h) Adoption of Federal Trade Commission Act;

hearings; report of violations to Attorney

General.

(i) Cooperation with State authorities; imparting

information.

(j) Definitions.

611. ''Basic agricultural commodity'' defined; exclusion of

commodities.

612. Appropriation; use of revenues; administrative expenses.

612a, 612b. Omitted.

612c. Appropriation to encourage exportation and domestic

consumption of agricultural products.

612c-1. Authorization for appropriations to increase domestic

consumption of surplus farm commodities.

612c-2. Technical support to exporters and importers of United

States agricultural products; scope of support provided by

Department of Agriculture.

612c-3. Repealed.

612c-4. Purchase of specialty crops.

(a) General purchase authority.

(b) Purchase authority.

(c) Definitions.

613. Termination date; investigations and reports.

613a. Repealed.

614. Separability.

615. Refunds of tax; exemptions from tax; compensating tax;

compensating tax on foreign goods; covering into Treasury.

616. Stock on hand when tax takes effect or terminates.

617. Refund on goods exported; bond to suspend tax on commodity

intended for export.

618. Existing contracts; imposition of tax on vendee; collection.

619. Collection of tax; provisions of internal revenue laws

applicable; returns.

619a. Cotton tax, time for payment.

620. Falsely ascribing deductions or charges to taxes; penalty.

621. Machinery belting processed from cotton; exemption from tax.

622. Omitted.

623. Actions relating to tax; legalization of prior taxes.

(a) Action to restrain collection of tax or obtain

declaratory judgment forbidden.

(b) Taxes imposed prior to August 24, 1935, legalized

and ratified.

(c) Rental and benefit payments, agreements, and

programs made prior to August 24, 1935,

legalized and ratified.

624. Limitation on imports; authority of President.

625. Review of Burley tobacco imports by Secretary of Agriculture;

price-support levels; excessive stocks.

626. Import inventory.

(a) Compilation and report on imports.

(b) Compilation and report on consumption.

(c) Issuing of data.

627. Dairy forward pricing pilot program.

(a) Pilot program required.

(b) Minimum milk price requirements.

(c) Milk covered by pilot program.

(d) Duration.

(e) Study and report on effect of pilot program.

SUBCHAPTER IV - REFUNDS

641 to 659. Omitted.

-SECREF-

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in sections 499b-1, 671, 672, 673,

1446, 7958 of this title; title 12 section 1150a; title 16 section

2005b; title 18 section 433; title 41 section 22.

-CITE-

7 USC SUBCHAPTER I - DECLARATION OF CONDITIONS AND

POLICY 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 26 - AGRICULTURAL ADJUSTMENT

SUBCHAPTER I - DECLARATION OF CONDITIONS AND POLICY

.

-HEAD-

SUBCHAPTER I - DECLARATION OF CONDITIONS AND POLICY

-CITE-

7 USC Sec. 601 01/06/03

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TITLE 7 - AGRICULTURE

CHAPTER 26 - AGRICULTURAL ADJUSTMENT

SUBCHAPTER I - DECLARATION OF CONDITIONS AND POLICY

-HEAD-

Sec. 601. Declaration of conditions

-STATUTE-

It is declared that the disruption of the orderly exchange of

commodities in interstate commerce impairs the purchasing power of

farmers and destroys the value of agricultural assets which support

the national credit structure and that these conditions affect

transactions in agricultural commodities with a national public

interest, and burden and obstruct the normal channels of interstate

commerce.

-SOURCE-

(May 12, 1933, ch. 25, title I, Sec. 1, 48 Stat. 31; June 3, 1937,

ch. 296, Sec. 1, 2(a), 50 Stat. 246.)

-MISC1-

SHORT TITLE

Section 8(a) of act June 16, 1933, ch. 90, 48 Stat. 199, provided

in part that title I of act May 12, 1933, which is classified to

this chapter, may for all purposes be referred to as the

''Agricultural Adjustment Act.''

VALIDITY OF CERTAIN SECTIONS AFFIRMED

Act June 3, 1937, ch. 296, Sec. 1, 2, 50 Stat. 246, provided as

follows: ''The following provisions of the Agricultural Adjustment

Act, as amended, not having been intended for the control of the

production of agricultural commodities, and having been intended to

be effective irrespective of the validity of any other provision of

that Act are expressly affirmed and validated, and are reenacted

without change except as provided in section 2:

''(a) Section 1 (relating to the declaration of emergency (this

section)):

''(b) Section 2 (relating to declaration of policy (section 602

of this title)):

''(c) Section 8a(5), (6), (7), (8), and (9) (relating to

violations and enforcement (section 608a(5), (6), (7), (8), and (9)

of this title));

''(d) Section 8b (relating to marketing agreements (section 608b

of this title));

''(e) Section 8c (relating to orders (section 608c of this

title));

''(f) Section 8d (relating to books and records (section 608d of

this title));

''(g) Section 8e (relating to determination of base period

(former section 608e of this title));

''(h) Section 10(a), (b)(2), (c), (f), (g), (h), and (i)

(miscellaneous provisions (section 610(a), (b)(2), (c), (f), (g),

(h), and (i) of this title));

''(i) Section 12(a) and (c) (relating to appropriation and

expenses (section 612(a) and (c) of this title));

''(j) Section 14 (relating to separability (section 614 of this

title));

''(k) Section 22 (relating to imports (section 624 of this

title)).

''Sec. 2. The following provisions, reenacted in section I of

this act, are amended as follows: * * * (sections 601, 602(1),

608a(6), 608c(5)(B)(d), (6)(B), (6)(B)(18), (19), 610(c), (f),

612(a) of this title).''

Section 2 of act June 3, 1937, also added subsec. (j) to section

610.

Section 2 of act June 3, 1937, was amended by act Aug. 5, 1937,

ch. 567, 50 Stat. 563, which amending act provided for amendments

to subsecs. (2) and (6) of section 608c of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 671, 672, 673, 1392 of

this title.

-CITE-

7 USC Sec. 602 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 26 - AGRICULTURAL ADJUSTMENT

SUBCHAPTER I - DECLARATION OF CONDITIONS AND POLICY

-HEAD-

Sec. 602. Declaration of policy; establishment of price basing

period; marketing standards; orderly supply flow; circumstances

for continued regulation

-STATUTE-

It is declared to be the policy of Congress -

(1) Through the exercise of the powers conferred upon the

Secretary of Agriculture under this chapter, to establish and

maintain such orderly marketing conditions for agricultural

commodities in interstate commerce as will establish, as the

prices to farmers, parity prices as defined by section 1301(a)(1)

of this title.

(2) To protect the interest of the consumer by (a) approaching

the level of prices which it is declared to be the policy of

Congress to establish in subsection (1) of this section by

gradual correction of the current level at as rapid a rate as the

Secretary of Agriculture deems to be in the public interest and

feasible in view of the current consumptive demand in domestic

and foreign markets, and (b) authorizing no action under this

chapter which has for its purpose the maintenance of prices to

farmers above the level which it is declared to be the policy of

Congress to establish in subsection (1) of this section.

(3) Through the exercise of the powers conferred upon the

Secretary of Agriculture under this chapter, to establish and

maintain such production research, marketing research, and

development projects provided in section 608c(6)(I) of this

title, such container and pack requirements provided in section

608c(6)(H) of this title (FOOTNOTE 1) such minimum standards of

quality and maturity and such grading and inspection requirements

for agricultural commodities enumerated in section 608c (2) of

this title, other than milk and its products, in interstate

commerce as will effectuate such orderly marketing of such

agricultural commodities as will be in the public interest.

(FOOTNOTE 1) So in original. Probably should be followed by a

comma.

(4) Through the exercise of the powers conferred upon the

Secretary of Agriculture under this chapter, to establish and

maintain such orderly marketing conditions for any agricultural

commodity enumerated in section 608c(2) of this title as will

provide, in the interests of producers and consumers, an orderly

flow of the supply thereof to market throughout its normal

marketing season to avoid unreasonable fluctuations in supplies

and prices.

(5) Through the exercise of the power conferred upon the

Secretary of Agriculture under this chapter, to continue for the

remainder of any marketing season or marketing year, such

regulation pursuant to any order as will tend to avoid a

disruption of the orderly marketing of any commodity and be in

the public interest, if the regulation of such commodity under

such order has been initiated during such marketing season or

marketing year on the basis of its need to effectuate the policy

of this chapter.

-SOURCE-

(May 12, 1933, ch. 25, title I, Sec. 2, 48 Stat. 32; Aug. 24, 1935,

ch. 641, Sec. 1, 62, 49 Stat. 750, 782; June 3, 1937, ch. 296, Sec.

1, 2(b), 50 Stat. 246, 247; Aug. 1, 1947, ch. 425, Sec. 1, 61 Stat.

707; July 3, 1948, ch. 827, title III, Sec. 302(a), 62 Stat. 1257;

Aug. 28, 1954, ch. 1041, title IV, Sec. 401(a), 68 Stat. 906; Pub.

L. 87-128, title I, Sec. 141(1), Aug. 8, 1961, 75 Stat. 303; Pub.

L. 89-330, Sec. 1(a), Nov. 8, 1965, 79 Stat. 1270; Pub. L. 91-292,

Sec. 1(1), June 25, 1970, 84 Stat. 333.)

-MISC1-

AMENDMENTS

1970 - Subsec. (3). Pub. L. 91-292 inserted authority to

establish and maintain the production research, marketing research,

and development projects provided in section 608c(6)(I) of this

title.

1965 - Subsec. (3). Pub. L. 89-330 inserted ''such container and

pack requirements provided in section 608c(6)(H) of this title''.

1961 - Subsec. (5). Pub. L. 87-128 added subsec. (5).

1954 - Subsec. (4). Act Aug. 28, 1954, added subsec. (4).

1948 - Subsec. (1). Act July 3, 1948, made definition of

''parity'' conform to definition stated in section 1301(a)(1) of

this title.

1947 - Subsec. (3). Act Aug. 1, 1947, added subsec. (3).

1937 - Act June 3, 1937, inserted ''orderly marketing conditions

for agricultural commodities in interstate commerce as will

establish'' before ''as the prices to farmers''.

1935 - Subsec. (1). Act Aug. 24, 1935, ch. 641, Sec. 1, amended

first sentence and act Aug. 24, 1935, ch. 641, Sec. 62, amended

second and third sentences.

Subsec. (2). Act Aug. 24, 1935, amended subsec. (2).

EFFECTIVE DATE OF 1948 AMENDMENT

Amendment by act July 3, 1948, effective Jan. 1, 1950, see

section 303 of act July 3, 1948, set out as a note under section

1301 of this title.

VALIDITY OF SECTION AFFIRMED

Section 1 of act June 3, 1937, affirmed and validated, and

reenacted without change the provisions of this section except for

the amendment to subsec. (1) by section 2 of said act. See note

set out under section 601 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 608c, 609, 672, 673, 1392

of this title.

-CITE-

7 USC SUBCHAPTER II - COTTON OPTION CONTRACTS 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 26 - AGRICULTURAL ADJUSTMENT

SUBCHAPTER II - COTTON OPTION CONTRACTS

.

-HEAD-

SUBCHAPTER II - COTTON OPTION CONTRACTS

-CITE-

7 USC Sec. 603 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 26 - AGRICULTURAL ADJUSTMENT

SUBCHAPTER II - COTTON OPTION CONTRACTS

-HEAD-

Sec. 603. Government owned cotton; transfer to Secretary of

Agriculture; powers of Secretary

-STATUTE-

The Farm Credit Administration and all departments and other

agencies of the Government, not including the Federal intermediate

credit banks are directed -

(a) To sell to the Secretary of Agriculture at such price as may

be agreed upon, not in excess of the market price, all cotton now

owned by them.

(b) To take such action and to make such settlements as are

necessary in order to acquire full legal title to all cotton on

which money has been loaned or advanced by any department or agency

of the United States, including futures contracts for cotton or

which is held as collateral for loans or advances and to make final

settlement of such loans and advances as follows:

(1) In making such settlements with regard to cotton, including

operations to which such cotton is related, such cotton shall be

taken over by all such departments or agencies other than the

Secretary of Agriculture at a price or sum equal to the amounts

directly or indirectly loaned or advanced thereon and

outstanding, including loans by the Government, department or

agency and any loans senior thereto, plus any sums required to

adjust advances to growers to 90 per centum of the value of their

cotton at the date of its delivery in the first instance as

collateral to the department or agency involved, such sums to be

computed by subtracting the total amount already advanced to

growers on account of pools of which such cotton was a part, from

90 per centum of the value of the cotton to be taken over as of

the time of such delivery as collateral, plus unpaid accrued

carrying charges and operating costs on such cotton, less,

however, any existing assets of the borrower derived from net

income, earnings, or profits arising from such cotton, and from

operations to which such cotton is related; all as determined by

the department or agency making the settlement.

(2) The Secretary of Agriculture shall make settlements with

respect to cotton held as collateral for loans or advances made

by him on such terms as in his judgment may be deemed advisable,

and to carry out the provisions of this section, is authorized to

indemnify or furnish bonds to warehousemen for lost warehouse

receipts and to pay the premiums on such bonds.

When full legal title to the cotton referred to in this

subsection has been acquired, it shall be sold to the Secretary of

Agriculture for the purposes of this section, in the same manner as

provided in subsection (a) of this section.

(c) The Secretary of Agriculture is authorized to purchase the

cotton specified in subsections (a) and (b) of this section.

-SOURCE-

(May 12, 1933, ch. 25, title I, Sec. 3, 48 Stat. 32; 1933 Ex. Ord.

No. 6084, Mar. 22, 1933.)

-CHANGE-

CHANGE OF NAME

Ex. Ord. No. 6084, set out as a note preceding section 2241 of

Title 12, Banks and Banking, changed the name of ''Federal Farm

Board'' to ''Farm Credit Administration''.

-TRANS-

TRANSFER OF FUNCTIONS

Ex. Ord. No. 9322, Mar. 26, 1943, 8 F.R. 3807, as amended by Ex.

Ord. No. 9334, Apr. 19, 1943, 8 F.R. 5423, removed Farm Credit

Administration from Food Production Administration of Department of

Agriculture and returned it to its former status as a separate

agency of Department.

Ex. Ord. No. 9280, Dec. 5, 1942, 7 F.R. 10179, made Farm Credit

Administration a part of Food Production Administration of

Department of Agriculture.

Farm Credit Administration transferred to Department of

Agriculture by 1939 Reorg. Plan No. 1, Sec. 401, 4 F.R. 2727, 53

Stat. 1423, set out in the Appendix to Title 5, Government

Organization and Employees.

EXCEPTIONS FROM TRANSFER OF FUNCTIONS

Functions of Corporations of Department of Agriculture, boards of

directors and officers of such corporations; Advisory Board of

Commodity Credit Corporation; and Farm Credit Administration or any

agency, officer or entity of, under, or subject to supervision of

said Administration excepted from functions of officers, agencies,

and employees transferred to Secretary of Agriculture by 1953

Reorg. Plan No. 2, Sec. 1, effective June 4, 1953, 18 F.R. 3219, 67

Stat. 633, set out as a note under section 2201 of this title.

-MISC5-

FARM CREDIT ADMINISTRATION

Establishment of Farm Credit Administration as independent

agency, and other changes in status, functions, etc., see section

2241 et seq., of Title 12, Banks and Banking.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 604, 673 of this title.

-CITE-

7 USC Sec. 604 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 26 - AGRICULTURAL ADJUSTMENT

SUBCHAPTER II - COTTON OPTION CONTRACTS

-HEAD-

Sec. 604. Borrowing money; expenditures; authority of Secretary

-STATUTE-

(a) The Secretary of Agriculture shall have authority to borrow

money upon all cotton in his possession or control and may, at his

discretion, deposit as collateral for such loans the warehouse

receipts for such cotton.

(b) The Secretary of the Treasury is authorized to advance, in

his discretion, out of any money in the Treasury not otherwise

appropriated, the sum of $100,000,000, to the Secretary of

Agriculture, for paying off any debt or debts which may have been

or may be incurred by the Secretary of Agriculture and discharging

any lien or liens which may have arisen or may arise pursuant to

sections 603, 604, and 607 of this title, for protecting title to

any cotton which may have been or may be acquired by the Secretary

of Agriculture under authority of said sections, and for paying any

expenses (including, but not limited to, warehouse charges,

insurance, salaries, interest, costs, and commissions) incident to

carrying, handling, insuring, and marketing of said cotton and for

the purposes described in subsection (e) of this section. This sum

shall be available until the cotton acquired by the Secretary of

Agriculture under authority of this chapter including cotton

futures, shall have been finally marketed by any agency which may

have been or may be established by the Secretary of Agriculture for

the handling, carrying, insuring, or marketing of any cotton

acquired by the Secretary of Agriculture.

(c) The funds authorized by subsection (b) of this section shall

be made available to the Secretary of Agriculture from time to time

upon his request and with the approval of the Secretary of the

Treasury. Each such request shall be accompanied by a statement

showing by weight and average grade and staple the quantity of

cotton held by the Secretary of Agriculture and the approximate

aggregate market value thereof.

(d) It is the purpose of subsections (b) and (c) of this section

to provide an alternative method to that provided by subsection (a)

of this section, for enabling the Secretary of Agriculture to

finance the acquisition, carrying, handling, insuring, and

marketing of cotton acquired by him under authority of section 603

of this title. The Secretary of Agriculture may at his discretion

make use of either or both of the methods provided in this section

for obtaining funds for the purposes hereinabove enumerated.

(e) The Secretary of Agriculture is authorized to use in his

discretion any funds obtained by him pursuant to the provisions of

subsection (a) or (b) of this section for making advances to any

agency which may have been or may be established by the Secretary

of Agriculture for the handling, carrying, insuring, or marketing

of any cotton acquired by the Secretary of Agriculture, to enable

any such agency to perform, exercise, and discharge any of the

duties, privileges, and functions which such agency may be

authorized to perform, exercise, or discharge.

(f) The proceeds derived from the sale of cotton shall be held

for the Secretary of Agriculture by the Treasurer of the United

States in a special deposit account and shall be used by the

Secretary of Agriculture to discharge the obligations incurred

under authority of sections 603, 604, and 607 of this title.

Whenever any cotton shall be marketed the net proceeds (after

discharge of other obligations incurred with respect thereto)

derived from the sale thereof shall be used, to the extent

required, to reimburse the Treasury for such portion of the funds

hereby provided for as shall have been used, which shall be covered

into the Treasury as a miscellaneous receipt. If when all of the

cotton acquired by the Secretary of Agriculture shall have been

marketed and all of the obligations incurred with respect to such

cotton shall have been discharged, and the Treasury reimbursed for

any and all sums which may have been advanced pursuant to

subsection (b) of this section, there shall remain any balance in

the hands of the Secretary of Agriculture, such balance shall be

covered into the Treasury as miscellaneous receipts.

The word ''obligation'' when used in this section shall include

(without being limited to) administrative expenses, warehouse

charges, insurance, salaries, interest, costs, commissions, and

other expenses incident to handling, carrying, insuring, and

marketing of said cotton.

-SOURCE-

(May 12, 1933, ch. 25, title I, Sec. 4, 48 Stat. 33; June 19, 1934,

ch. 648, title II, Sec. 1, 48 Stat. 1058; Aug. 24, 1935, ch. 641,

Sec. 35, 36, 49 Stat. 775.)

-MISC1-

AMENDMENTS

1935 - Subsec. (b). Act Aug. 24, 1935, Sec. 35, struck out ''to

be available until March 1, 1936'' after ''$100,000,000'' and

inserted last sentence relating to availability of the sum of

$100,000,000.

Subsec. (f). Act Aug. 24, 1935, Sec. 36, inserted last par.

defining ''obligation''.

1934 - Subsec. (a). Act June 19, 1934, inserted ''may in his

discretion'' after ''or control and''.

Subsecs. (b) to (f). Act June 19, 1934, added subsecs. (b) to

(f).

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 673 of this title; title

12 section 1150a.

-CITE-

7 USC Sec. 605 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 26 - AGRICULTURAL ADJUSTMENT

SUBCHAPTER II - COTTON OPTION CONTRACTS

-HEAD-

Sec. 605. Repealed. June 30, 1947, ch. 166, title II, Sec. 206(d),

61 Stat. 208

-MISC1-

Section, acts May 12, 1933, ch. 25, title I, Sec. 5, 48 Stat. 33;

June 19, 1934, ch. 648, title II, Sec. 1, 48 Stat. 1059, related to

loans from Reconstruction Finance Corporation and warehouse

receipts as collateral.

-CITE-

7 USC Sec. 606 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 26 - AGRICULTURAL ADJUSTMENT

SUBCHAPTER II - COTTON OPTION CONTRACTS

-HEAD-

Sec. 606. Repealed. Aug. 24, 1935, ch. 641, Sec. 34, 49 Stat. 775

-MISC1-

Section, act May 12, 1933, ch. 25, title I, Sec. 6, 48 Stat. 33,

related to option contracts.

-CITE-

7 USC Sec. 607 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 26 - AGRICULTURAL ADJUSTMENT

SUBCHAPTER II - COTTON OPTION CONTRACTS

-HEAD-

Sec. 607. Sale by Secretary; additional options; validation of

assignments; publication of information

-STATUTE-

The Secretary shall sell cotton held or acquired by him pursuant

to authority of this chapter at his discretion subject only to the

conditions and limitations of this chapter: Provided, That the

Secretary shall have authority to enter into option contracts with

producers of cotton to sell to or for the producers such cotton

held and/or acquired by him in such amounts and at such prices and

upon such terms and conditions as he, the Secretary, may deem

advisable, and such option contracts may be transferred or assigned

in such manner as the Secretary of Agriculture may prescribe.

Notwithstanding any provisions contained in option contracts

heretofore issued and/or any provision of law, assignments made

prior to January 11, 1934, of option contracts exercised prior to

January 18, 1934, shall be deemed valid upon determination by the

Secretary that such assignment was an assignment in good faith of

the full interest in such contract and for full value and is free

from evidence of fraud or speculation by the assignee.

Notwithstanding any provision of existing law, the Secretary of

Agriculture may, in the administration of this chapter, make public

such information as he deems necessary in order to effectuate the

purposes of this chapter.

-SOURCE-

(May 12, 1933, ch. 25, title I, Sec. 7, 48 Stat. 34; June 16, 1933,

ch. 90, title II, Sec. 221, 48 Stat. 210; Aug. 24, 1935, ch. 641,

Sec. 33, 49 Stat. 775.)

-MISC1-

AMENDMENTS

1935 - Act Aug. 24, 1935, among other changes, inserted

provisions as to presumption of validity of assignments made prior

to Jan. 11, 1934 of option contracts exercised prior to Jan. 18,

1934 if in good faith, for full value, and without fraud or

speculation by the assignee.

1933 - Act June 16, 1933, amended section generally.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 608d, 673 of this title.

-CITE-

7 USC SUBCHAPTER III - COMMODITY BENEFITS 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 26 - AGRICULTURAL ADJUSTMENT

SUBCHAPTER III - COMMODITY BENEFITS

.

-HEAD-

SUBCHAPTER III - COMMODITY BENEFITS

-CITE-

7 USC Sec. 608 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 26 - AGRICULTURAL ADJUSTMENT

SUBCHAPTER III - COMMODITY BENEFITS

-HEAD-

Sec. 608. Powers of Secretary

-STATUTE-

(1) Investigations; proclamation of findings

Whenever the Secretary of Agriculture has reason to believe that:

(a) The current average farm price for any basic agricultural

commodity is less than the fair exchange value thereof, or the

average farm price of such commodity is likely to be less than

the fair exchange value thereof for the period in which the

production of such commodity during the current or next

succeeding marketing year is normally marketed, and

(b) The conditions of and factors relating to the production,

marketing, and consumption of such commodity are such that the

exercise of any one or more of the powers conferred upon the

Secretary under subsections (2) and (3) of this section would

tend to effectuate the declared policy of this chapter,

he shall cause an immediate investigation to be made to determine

such facts. If, upon the basis of such investigation, the

Secretary finds the existence of such facts, he shall proclaim such

determination and shall exercise such one or more of the powers

conferred upon him under subsections (2) and (3) of this section as

he finds, upon the basis of an investigation, administratively

practicable and best calculated to effectuate the declared policy

of this chapter.

(2) Agreements for adjustment of acreage or production and for

rental or benefit payments

Subject to the provisions of subsection (1) of this section, the

Secretary of Agriculture shall provide, through agreements with

producers or by other voluntary methods,

(a) For such adjustment in the acreage or in the production for

market, or both, of any basic agricultural commodity, as he

finds, upon the basis of the investigation made pursuant to

subsection (1) of this section, will tend to effectuate the

declared policy of this chapter, and to make such adjustment

program practicable to operate and administer, and

(b) For rental or benefit payments in connection with such

agreements or methods in such amounts as he finds, upon the basis

of such investigation, to be fair and reasonable and best

calculated to effectuate the declared policy of this chapter, and

to make such program practicable to operate and administer, to be

paid out of any moneys available for such payments or, subject to

the consent of the producer, to be made in quantities of one or

more basic agricultural commodities acquired by the Secretary

pursuant to this chapter.

(3) Payments by Secretary

Subject to the provisions of subsection (1) of this section, the

Secretary of Agriculture shall make payments, out of any moneys

available for such payments, in such amounts as he finds, upon the

basis of the investigation made pursuant to subsection (1) of this

section, to be fair and reasonable and best calculated to

effectuate the declared policy of this chapter:

(a) To remove from the normal channels of trade and commerce

quantities of any basic agricultural commodity or product

thereof;

(b) To expand domestic or foreign markets for any basic

agricultural commodity or product thereof;

(c) In connection with the production of that part of any basic

agricultural commodity which is required for domestic

consumption.

(4) Additional investigation; suspension of exercise of powers

Whenever, during a period during which any of the powers

conferred in subsection (2) or (3) of this section is being

exercised, the Secretary of Agriculture has reason to believe that,

with respect to any basic agricultural commodity:

(a) The current average farm price for such commodity is not

less than the fair exchange value thereof, and the average farm

price for such commodity is not likely to be less than the fair

exchange value thereof for the period in which the production of

such commodity during the current or next succeeding marketing

year is normally marketed, or

(b) The conditions of and factors relating to the production,

marketing, and consumption of such commodity are such that none

of the powers conferred in subsections (2) and (3) of this

section, and no combination of such powers, would, if exercised,

tend to effectuate the declared policy of this chapter,

he shall cause an immediate investigation to be made to determine

such facts. If, upon the basis of such investigation, the

Secretary finds the existence of such facts, he shall proclaim such

determination, and shall not exercise any of such powers with

respect to such commodity after the end of the marketing year

current at the time when such proclamation is made and prior to a

new proclamation under subsection (1) of this section, except

insofar as the exercise of such power is necessary to carry out

obligations of the Secretary assumed, prior to the date of such

proclamation made pursuant to this subsection, in connection with

the exercise of any of the powers conferred upon him under

subsections (2) or (3) of this section.

(5) Hearings; notice

In the course of any investigation required to be made under

subsection (1) or (4) of this section, the Secretary of Agriculture

shall hold one or more hearings, and give due notice and

opportunity for interested parties to be heard.

(6) Commodity in which payment made

No payment under this chapter made in an agricultural commodity

acquired by the Secretary in pursuance of this chapter shall be

made in a commodity other than that in respect of which the payment

is being made. For the purposes of this subsection, hogs and field

corn may be considered as one commodity.

(7) Additional payments to producers of sugar beets or sugarcane

In the case of sugar beets or sugarcane, in the event that it

shall be established to the satisfaction of the Secretary of

Agriculture that returns to growers or producers, under the

contracts for the 1933-1934 crop of sugar beets or sugarcane,

entered into by and between the processors and producers and/or

growers thereof, were reduced by reason of the payment of the

processing tax, and/or the corresponding floor stocks tax, on sugar

beets or sugarcane, in addition to the foregoing rental or benefit

payments, the Secretary of Agriculture shall make such payments,

representing in whole or in part such tax, as the Secretary deems

fair and reasonable, to producers who agree, or have agreed, to

participate in the program for reduction in the acreage or

reduction in the production for market, or both, of sugar beets or

sugarcane.

(8) Pledge by rice producer for production credit of right to

rental or benefit payments

In the case of rice, the Secretary of Agriculture, in exercising

the power conferred upon him by subsection (2) of this section to

provide for rental or benefit payments, is directed to provide in

any agreement entered into by him with any rice producer pursuant

to such subsection, upon such terms and conditions as the Secretary

determines will best effectuate the declared policy of this

chapter, that the producer may pledge for production credit in

whole or in part his right to any rental or benefit payments under

the terms of such agreement and that such producer may designate

therein a payee to receive such rental or benefit payments.

(9) Advances of payments on stored nonperishable commodity

Under regulations of the Secretary of Agriculture requiring

adequate facilities for the storage of any nonperishable

agricultural commodity on the farm, inspection and measurement of

any such commodity so stored, and the locking and sealing thereof,

and such other regulations as may be prescribed by the Secretary of

Agriculture for the protection of such commodity and for the

marketing thereof, a reasonable percentage of any benefit payment

may be advanced on any such commodity so stored. In any such case

such deduction may be made from the amount of the benefit payment

as the Secretary of Agriculture determines will reasonably

compensate for the cost of inspection and sealing but no deduction

may be made for interest.

-SOURCE-

(May 12, 1933, ch. 25, title I, Sec. 8, 48 Stat. 34; Apr. 7, 1934,

ch. 103, Sec. 7, 48 Stat. 528; May 9, 1934, ch. 263, Sec. 14, 48

Stat. 676; Mar. 18, 1935, ch. 32, Sec. 7, 49 Stat. 46; Aug. 24,

1935, ch. 641, Sec. 2, 4-7, 49 Stat. 751, 753-762.)

-COD-

CODIFICATION

Section as originally enacted consisted of subsections (1) to

(5). Act Aug. 24, 1935, amended section by striking out or amending

and redesignating the various subsections.

-MISC3-

AMENDMENTS

1935 - Subsec. (1) was, together with subsecs. (2) to (9),

inserted in lieu of former (1) by section 2 of act Aug. 24, 1935,

which also struck out former (1) as amended by acts May 9, 1934,

and March 18, 1935.

Subsec. (2) was, together with subsecs. (1) and (3) to (9),

inserted in lieu of former (1) by section 2 of act Aug. 24, 1935.

Former subsec. (2), as amended by act Apr. 7, 1934, was designated

section 8b of the Agricultural Adjustment Act, section 608b of this

title, and amended by section 4 of said act Aug. 24, 1935.

Subsec. (3) was, together with subsecs. (1), (2), and (4) to (9),

inserted in lieu of former (1) by section 2 of act Aug. 24, 1935.

Former subsec. (3) was struck out by section 5 of said act Aug. 24,

1935, which also added section 8c to the Agricultural Adjustment

Act, section 608c of this title.

Subsec. (4) was, together with subsecs. (1) to (3) and (5) to

(9), inserted in lieu of former (1) by section 2 of act Aug. 24,

1935. Former subsec. (4) was struck out by section 6 of said act

Aug. 24, 1935, which also added sections 8d and 8e to the

Agricultural Adjustment Act, section 608d and former section 608e,

respectively, of this title.

Subsec. (5) was, together with subsecs. (1) to (4) and (6) to

(9), inserted in lieu of former (1) by section 2 of act Aug. 24,

1935. Former subsec. (5) was designated section 8f of the

Agricultural Adjustment Act, section 608f of this title, and

amended by section 7 of said act Aug. 24, 1935.

Subsecs. (6) to (9) were, together with subsecs. (1) to (5),

inserted in lieu of former (1) by section 2 of act Aug. 24, 1935.

1934 - Act May 9, 1934, amended subsec. (1) generally.

Act Apr. 7, 1934, amended subsec. (2) by striking out proviso.

VALIDITY OF AGREEMENTS AND LICENSES PRESERVED UNDER 1935 ACT

Section 38 of act Aug. 24, 1935, which amended this chapter

generally, provided as follows: ''Nothing contained in this Act

shall (a), invalidate any marketing agreement or license in

existence on the date of the enactment hereof (Aug. 24, 1935), or

any provision thereof, or any act done pursuant thereto, either

before or after the enactment of this Act, or (b) impair any remedy

provided for on the date of the enactment thereof for the

enforcement of any such marketing agreement or license, or (c)

invalidate any agreement entered into pursuant to section 8(1) of

the Agricultural Adjustment Act prior to the enactment of this Act,

or subsequent to the enactment of this Act in connection with a

program the initiation of which has been formally approved by the

Secretary of Agriculture under such section 8(1) prior to the

enactment of this Act, or any act done or agreed to be done or any

payment made or agreed to be made in pursuance of any such

agreement, either before or after the enactment of this Act, or any

change in the terms and conditions of any such agreement, or any

voluntary arrangements or further agreements which the Secretary

finds necessary or desirable in order to complete or terminate such

program pursuant to the declared policy of the Agricultural

Adjustment Act (this chapter); Provided, That the Secretary shall

not prescribe, pursuant to any such agreement or voluntary

arrangement, any adjustment in the acreage or in the production for

market of any basic agricultural commodity to be made after July 1,

1937, except pursuant to the provisions of section 8 of the

Agricultural Adjustment Act as amended by this Act.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 609, 610, 612, 623, 673

of this title; title 12 section 1150a.

-CITE-

7 USC Sec. 608-1 01/06/03

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TITLE 7 - AGRICULTURE

CHAPTER 26 - AGRICULTURAL ADJUSTMENT

SUBCHAPTER III - COMMODITY BENEFITS

-HEAD-

Sec. 608-1. Omitted

-COD-

CODIFICATION

Section, act July 2, 1940, ch. 521, Sec. 9, 54 Stat. 729, which

related to adjustments between payee and third persons, was omitted

as executed.

-CITE-

7 USC Sec. 608a 01/06/03

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TITLE 7 - AGRICULTURE

CHAPTER 26 - AGRICULTURAL ADJUSTMENT

SUBCHAPTER III - COMMODITY BENEFITS

-HEAD-

Sec. 608a. Enforcement of chapter

-STATUTE-

(1) to (4) Omitted

(5) Forfeitures

Any person exceeding any quota or allotment fixed for him under

this chapter by the Secretary of Agriculture and any other person

knowingly participating or aiding in the exceeding of such quota or

allotment shall forfeit to the United States a sum equal to the

value of such excess at the current market price for such commodity

at the time of violation, which forfeiture shall be recoverable in

a civil suit brought in the name of the United States.

(6) Jurisdiction of district courts

The several district courts of the United States are vested with

jurisdiction specifically to enforce, and to prevent and restrain

any person from violating any order, regulation, or agreement,

heretofore or hereafter made or issued pursuant to this chapter, in

any proceeding now pending or hereafter brought in said courts.

(7) Duties of United States attorneys; investigation of violations

by Secretary; hearings

Upon the request of the Secretary of Agriculture, it shall be the

duty of the several United States attorneys, in their respective

districts, under the directions of the Attorney General, to

institute proceedings to enforce the remedies and to collect the

forfeitures provided for in, or pursuant to this chapter. Whenever

the Secretary, or such officer or employee of the Department of

Agriculture as he may designate for the purpose, has reason to

believe that any handler has violated, or is violating, the

provisions of any order or amendment thereto issued pursuant to

this chapter, the Secretary shall have power to institute an

investigation and, after due notice to such handler, to conduct a

hearing in order to determine the facts for the purpose of

referring the matter to the Attorney General for appropriate

action.

(8) Cumulative remedies

The remedies provided for in this section shall be in addition

to, and not exclusive of, any of the remedies or penalties provided

for elsewhere in this chapter or now or hereafter existing at law

or in equity.

(9) ''Person'' defined

The term ''person'' as used in this chapter includes an

individual, partnership, corporation, association, and any other

business unit.

-SOURCE-

(May 12, 1933, ch. 25, title I, Sec. 8a, as added May 9, 1934, ch.

263, Sec. 4, 48 Stat. 672; amended Aug. 24, 1935, ch. 641, Sec.

8-10, 49 Stat. 762; June 3, 1937, ch. 296, Sec. 1, 2(c), 50 Stat.

246, 247; June 25, 1948, ch. 646, Sec. 1, 62 Stat. 909; Pub. L.

87-128, title I, Sec. 141(2), Aug. 8, 1961, 75 Stat. 304.)

-COD-

CODIFICATION

Provisions of subsecs. (1) to (4), relating to establishment,

regulation and determination of sugar quotas, agreements limiting

or regulating child labor, wages, and adjustment of disputes in the

sugar industry, and prescribing penalties for violations thereof,

were omitted since they ceased to apply on Sept. 1, 1937, in

accordance with the provisions of section 510 of the Sugar Act of

1937, act Sept. 1, 1937, ch. 898, 50 Stat. 916. Section 510 of act

Sept. 1, 1937, provided in part that: ''The provisions of the

Agricultural Adjustment Act, as amended (this chapter), shall cease

to apply to sugar upon the enactment of this Act (Sept. 1, 1937)''.

Provisions similar to former subsecs. (1) to (4) were contained in

the Sugar Act of 1948, section 1100 et seq. of this title, which

expired on Dec. 31, 1974.

-MISC3-

AMENDMENTS

1961 - Subsec. (5). Pub. L. 87-128 struck out ''willfully'' after

''Any person'' and substituted provision for forfeiture of a sum

equal to the value of the excess at the current market price for

the commodity at the time of violation for provision for forfeiture

of a sum equal to three times the current market value of the

excess.

1937 - Subsec. (6). Act June 3, 1937, Sec. 2(c), struck out ''the

provisions of this section, or of''.

1935 - Subsec. (1). Act Aug. 24, 1935, Sec. 8, substituted

''persons engaged in handling'' for ''handlers'' wherever

appearing; struck out ''or in competition with,'' in par. (B);

inserted ''directly'' before ''to burden'' in par. (B); and struck

out ''in any way'' in par. (B).

Subsec. (6). Act Aug. 24, 1935, Sec. 9, inserted ''or'' after

''regulation,'' and struck out ''or license''.

Subsec. (7). Act Aug. 24, 1935, Sec. 10, inserted last sentence.

-CHANGE-

CHANGE OF NAME

Act June 25, 1948, eff. Sept. 1, 1948, substituted ''United

States attorneys'' for ''district attorneys'' in subsec. (7). See

section 541 of Title 28, Judiciary and Judicial Procedure, and

Historical and Revision Notes thereunder.

-MISC4-

ADMISSION OF HAWAII AS STATE

Admission of Hawaii into the Union was accomplished Aug. 21,

1959, on issuance of Proc. No. 3309, Aug. 21, 1959, 24 F.R. 6868,

73 Stat. c74, as required by sections 1 and 7(c) of Pub. L. 86-3,

Mar. 18, 1959, 73 Stat. 4, set out as notes preceding 491 of Title

48, Territories and Insular Possessions.

VALIDITY OF SECTION AFFIRMED

Act June 3, 1937, affirmed and validated, and reenacted without

change the provisions of subsections (5), (6), (7), (8), and (9) of

this section, except for the amendment to subsection (6) by section

2 of the act. See note set out under section 601 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 608c, 608e-1, 616, 672,

673, 855, 1392 of this title.

-CITE-

7 USC Sec. 608a-1 01/06/03

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TITLE 7 - AGRICULTURE

CHAPTER 26 - AGRICULTURAL ADJUSTMENT

SUBCHAPTER III - COMMODITY BENEFITS

-HEAD-

Sec. 608a-1. Repealed. Sept. 1, 1937, ch. 898, title V, Sec. 510,

50 Stat. 916

-MISC1-

Section, act June 19, 1936, ch. 612, Sec. 2, 49 Stat. 1539,

related to additional provisions regulating the sugar quotas.

-CITE-

7 USC Sec. 608b 01/06/03

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TITLE 7 - AGRICULTURE

CHAPTER 26 - AGRICULTURAL ADJUSTMENT

SUBCHAPTER III - COMMODITY BENEFITS

-HEAD-

Sec. 608b. Marketing agreements; exemption from anti-trust laws;

inspection requirements for handlers not subject to agreements

-STATUTE-

(a) In order to effectuate the declared policy of this chapter,

the Secretary of Agriculture shall have the power, after due notice

and opportunity for hearing, to enter into marketing agreements

with processors, producers, associations of producers, and others

engaged in the handling of any agricultural commodity or product

thereof, only with respect to such handling as is in the current of

interstate or foreign commerce or which directly burdens,

obstructs, or affects, interstate or foreign commerce in such

commodity or product thereof. The making of any such agreement

shall not be held to be in violation of any of the antitrust laws

of the United States, and any such agreement shall be deemed to be

lawful: Provided, That no such agreement shall remain in force

after the termination of this chapter.

(b)(1) If an agreement with the Secretary is in effect with

respect to peanuts pursuant to this section -

(A) all peanuts handled by persons who have not entered into

such an agreement with the Secretary shall be subject to

inspection to the same extent and manner as is required by such

agreement;

(B) no such peanuts shall be sold or otherwise disposed of for

human consumption if such peanuts fail to meet the quality

requirements of such agreement; and

(C) any assessment (except with respect to any assessment for

the indemnification of losses on rejected peanuts) imposed under

the agreement shall -

(i) apply to peanut handlers (as defined by the Secretary)

who have not entered into such an agreement with the Secretary

in addition to those handlers who have entered into the

agreement; and

(ii) be paid to the Secretary.

(2) Violation of this subsection by a person who has not entered

into such an agreement shall result in the assessment by the

Secretary of a penalty equal to 140 percent of the support price

for quota peanuts multiplied by the quantity of peanuts sold or

disposed of in violation of subsection (b)(1)(B) of this section,

as determined under section 1445c-3 (FOOTNOTE 1) of this title, for

the marketing year for the crop with respect to which such

violation occurs.

(FOOTNOTE 1) See References in Text note below.

-SOURCE-

(May 12, 1933, ch. 25, title I, Sec. 8b, formerly Sec. 8(2), 48

Stat. 34; Apr. 7, 1934, ch. 103, Sec. 7, 48 Stat. 528; renumbered

and amended Aug. 24, 1935, ch. 641, Sec. 4, 49 Stat. 753; June 3,

1937, ch. 296, Sec. 1, 50 Stat. 246; June 30, 1947, ch. 166, title

II, Sec. 206(d), 61 Stat. 208; Pub. L. 101-220, Sec. 4, Dec. 12,

1989, 103 Stat. 1878; Pub. L. 102-237, title I, Sec. 115(1), Dec.

13, 1991, 105 Stat. 1840; Pub. L. 103-66, title I, Sec. 1109(b),

Aug. 10, 1993, 107 Stat. 326.)

-REFTEXT-

REFERENCES IN TEXT

Section 1445c-3 of this title, referred to in subsec. (b)(2), was

repealed by Pub. L. 104-127, title I, Sec. 171(b)(2)(E), Apr. 4,

1996, 110 Stat. 938.

-COD-

CODIFICATION

The provisions appearing in subsec. (a) of this section except

the first sentence, were originally enacted as part of section 8(2)

of act May 12, 1933, and formerly appeared as section 608(2) of

this title.

-MISC3-

AMENDMENTS

1993 - Subsec. (b)(1)(C). Pub. L. 103-66 added subpar. (C).

1991 - Subsec. (b)(2). Pub. L. 102-237 made technical amendment

to reference to section 1445c-3 of this title involving

corresponding provisions of original Act.

1989 - Pub. L. 101-220 designated existing provisions as subsec.

(a) and added subsec. (b).

1947 - Act June 30, 1947, repealed provisions providing for loans

from Reconstruction Finance Corporation.

1935 - Act Aug. 24, 1935, designated subsection 2 of section 8 of

act May 12, 1933, as section 8b and amended first sentence

generally.

1934 - Act Apr. 7, 1934, empowered Secretary of Agriculture to

enter into marketing agreements with individual producers.

EFFECTIVE DATE OF 1989 AMENDMENT

Section 4(c) of Pub. L. 101-220 provided that: ''The amendment

made by this section (amending this section) shall be effective

with respect to the 1990 and subsequent crops of peanuts.''

VALIDITY OF SECTION AFFIRMED

Act June 3, 1937, affirmed and validated, and reenacted without

change the provisions of this section. See note set out under

section 601 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 608c, 672, 673, 1392 of

this title; title 12 section 1150a.

-CITE-

7 USC Sec. 608c 01/06/03

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TITLE 7 - AGRICULTURE

CHAPTER 26 - AGRICULTURAL ADJUSTMENT

SUBCHAPTER III - COMMODITY BENEFITS

-HEAD-

Sec. 608c. Orders regulating handling of commodity

-STATUTE-

(1) Issuance by Secretary

The Secretary of Agriculture shall, subject to the provisions of

this section, issue, and from time to time amend, orders applicable

to processors, associations of producers, and others engaged in the

handling of any agricultural commodity or product thereof specified

in subsection (2) of this section. Such persons are referred to in

this chapter as ''handlers.'' Such orders shall regulate, in the

manner hereinafter in this section provided, only such handling of

such agricultural commodity, or product thereof, as is in the

current of interstate or foreign commerce, or which directly

burdens, obstructs, or affects, interstate or foreign commerce in

such commodity or product thereof. In carrying out this section,

the Secretary shall complete all informal rulemaking actions

necessary to respond to recommendations submitted by administrative

committees for such orders as expeditiously as possible, but not

more than 45 days (to the extent practicable) after submission of

the committee recommendations. The Secretary is authorized to

implement a producer allotment program and a handler withholding

program under the cranberry marketing order in the same crop year

through informal rulemaking based on a recommendation and

supporting economic analysis submitted by the Cranberry Marketing

Committee. Such recommendation and analysis shall be submitted by

the Committee no later than March 1 of each year. The Secretary

shall establish time frames for each office and agency within the

Department of Agriculture to consider the committee

recommendations.

(2) Commodities to which applicable; single commodities and

separate agricultural commodities

Orders issued pursuant to this section shall be applicable only

to (A) the following agricultural commodities and the products

thereof (except canned or frozen pears, grapefruit, cherries,

apples, or cranberries, the products of naval stores, and the

products of honeybees), or to any regional, or market

classification of any such commodity or product: Milk, fruits

(including filberts, almonds, pecans, and walnuts but not including

apples, other than apples produced in the States of Washington,

Oregon, Idaho, New York, Michigan, Maryland, New Jersey, Indiana,

California, Maine, Vermont, New Hampshire, Rhode Island,

Massachusetts, Connecticut, Colorado, Utah, New Mexico, Illinois,

and Ohio, and not including fruits for canning or freezing other

than pears, olives, grapefruit, cherries, caneberries (including

raspberries, blackberries, and loganberries), cranberries, and

apples produced in the States named above except Washington,

Oregon, and Idaho), tobacco, vegetables (not including vegetables,

other than asparagus, for canning or freezing and not including

potatoes for canning, freezing, or other processing), hops,

honeybees, and naval stores as included in the Naval Stores Act (7

U.S.C. 91 et seq.) and standards established thereunder (including

refined or partially refined oleoresin): Provided, That no order

issued pursuant to this section shall be effective as to any

grapefruit for canning or freezing unless the Secretary of

Agriculture determines, in addition to other findings and

determinations required by this chapter, that the issuance of such

order is approved or favored by the processors who, during a

representative period determined by the Secretary, have been

engaged in canning or freezing such commodity for market and have

canned or frozen for market more than 50 per centum of the total

volume of such commodity canned or frozen for market during such

representative period; and (B) any agricultural commodity (except

honey, cotton, rice, wheat, corn, grain sorghums, oats, barley,

rye, sugarcane, sugarbeets, wool, mohair, livestock, soybeans,

cottonseed, flaxseed, poultry (but not excepting turkeys and not

excepting poultry which produce commercial eggs), fruits and

vegetables for canning or freezing, including potatoes for canning,

freezing, or other processing (FOOTNOTE 1) and apples), or any

regional or market classification thereof, not subject to orders

under (A) of this subdivision, but not the products (including

canned or frozen commodities or products) thereof. No order issued

pursuant to this section shall be effective as to cherries, apples,

or cranberries for canning or freezing unless the Secretary of

Agriculture determines, in addition to other required findings and

determinations, that the issuance of such order is approved or

favored by processors who, during a representative period

determined by the Secretary, have engaged in canning or freezing

such commodity for market and have frozen or canned more than 50

per centum of the total volume of the commodity to be regulated

which was canned or frozen within the production area, or marketed

within the marketing area, defined in such order, during such

representative period. No order issued pursuant to this section

shall be applicable to peanuts produced in more than one of the

following production areas: the Virginia-Carolina production area,

the Southeast production area, and the Southwest production area.

If the Secretary determines that the declared policy of this

chapter will be better achieved thereby (i) the commodities of the

same general class and used wholly or in part for the same purposes

may be combined and treated as a single commodity and (ii) the

portion of an agricultural commodity devoted to or marketed for a

particular use or combination of uses, may be treated as a separate

agricultural commodity. All agricultural commodities and products

covered hereby shall be deemed specified herein for the purposes of

subsections (6) and (7) of this section.

(FOOTNOTE 1) So in original. Probably should be followed by a

comma.

(3) Notice and hearing

Whenever the Secretary of Agriculture has reason to believe that

the issuance of an order will tend to effectuate the declared

policy of this chapter with respect to any commodity or product

thereof specified in subsection (2) of this section, he shall give

due notice of and an opportunity for a hearing upon a proposed

order.

(4) Finding and issuance of order

After such notice and opportunity for hearing, the Secretary of

Agriculture shall issue an order if he finds, and sets forth in

such order, upon the evidence introduced at such hearing (in

addition to such other findings as may be specifically required by

this section) that the issuance of such order and all of the terms

and conditions thereof will tend to effectuate the declared policy

of this chapter with respect to such commodity.

(5) Milk and its products; terms and conditions of orders

In the case of milk and its products, orders issued pursuant to

this section shall contain one or more of the following terms and

conditions, and (except as provided in subsection (7) of this

section) no others:

(A) Classifying milk in accordance with the form in which or the

purpose for which it is used, and fixing, or providing a method for

fixing, minimum prices for each such use classification which all

handlers shall pay, and the time when payments shall be made, for

milk purchased from producers or associations of producers. Such

prices shall be uniform as to all handlers, subject only to

adjustments for (1) volume, market, and production differentials

customarily applied by the handlers subject to such order, (2) the

grade or quality of the milk purchased, and (3) the locations at

which delivery of such milk, or any use classification thereof, is

made to such handlers. Throughout the 2-year period beginning on

the effective date of this sentence (and subsequent to such 2-year

period unless modified by amendment to the order involved), the

minimum aggregate amount of the adjustments, under clauses (1) and

(2) of the preceding sentence, to prices for milk of the highest

use classification under orders that are in effect under this

section on December 23, 1985, shall be as follows:

Minimum Aggregate Dollar

Amount of Such Adjustments

Marketing Area Per Hundredweight of Milk

Subject to Order Having 3.5 Percent Milkfat

New England $3.24

New York-New Jersey 3.14

Middle Atlantic 3.03

Georgia 3.08

Alabama-West Florida 3.08

Upper Florida 3.58

Tampa Bay 3.88

Southeastern Florida 4.18

Michigan Upper Peninsula 1.35

Southern Michigan 1.75

Eastern Ohio-Western Pennsylvania 1.95

Ohio Valley 2.04

Indiana 2.00

Chicago Regional 1.40

Central Illinois 1.61

Southern Illinois 1.92

Louisville-Lexington-Evansville 2.11

Upper Midwest 1.20

Eastern South Dakota 1.50

Black Hills, South Dakota 2.05

Iowa 1.55

Nebraska-Western Iowa 1.75

Greater Kansas City 1.92

Tennessee Valley 2.77

Nashville, Tennessee 2.52

Paducah, Kentucky 2.39

Memphis, Tennessee 2.77

Central Arkansas 2.77

Fort Smith, Arkansas 2.77

Southwest Plains 2.77

Texas Panhandle 2.49

Lubbock-Plainview, Texas 2.49

Texas 3.28

Greater Louisiana 3.28

New Orleans-Mississippi 3.85

Eastern Colorado 2.73

Western Colorado 2.00

Southwestern Idaho-Eastern Oregon 1.50

Great Basin 1.90

Lake Mead 1.60

Central Arizona 2.52

Rio Grande Valley 2.35

Puget Sound-Inland 1.85

Oregon-Washington 1.95

Effective at the beginning of such two-year period, the minimum

prices for milk of the highest use classification shall be adjusted

for the locations at which delivery of such milk is made to such

handlers.

(B) Providing:

(i) for the payment to all producers and associations of

producers delivering milk to the same handler of uniform prices

for all milk delivered by them: Provided, That, except in the

case of orders covering milk products only, such provision is

approved or favored by at least three-fourths of the producers

who, during a representative period determined by the Secretary

of Agriculture, have been engaged in the production for market of

milk covered in such order or by producers who, during such

representative period, have produced at least three-fourths of

the volume of such milk produced for market during such period;

the approval required hereunder shall be separate and apart from

any other approval or disapproval provided for by this section;

or

(ii) for the payment to all producers and associations of

producers delivering milk to all handlers of uniform prices for

all milk so delivered, irrespective of the uses made of such milk

by the individual handler to whom it is delivered;

subject, in either case, only to adjustments for (a) volume,

market, and production differentials customarily applied by the

handlers subject to such order, (b) the grade or quality of the

milk delivered, (c) the locations at which delivery of such milk is

made, (d) a further adjustment to encourage seasonal adjustments in

the production of milk through equitable apportionment of the total

value of the milk purchased by any handler, or by all handlers,

among producers on the basis of their marketings of milk during a

representative period of time, which need not be limited to one

year, (e) a provision providing for the accumulation and

disbursement of a fund to encourage seasonal adjustments in the

production of milk may be included in an order, and (f) a further

adjustment, equitably to apportion the total value of milk

purchased by any handler or by all handlers among producers on the

basis of the milk components contained in their marketings of milk.

(C) In order to accomplish the purposes set forth in paragraphs

(A) and (B) of this subsection, providing a method for making

adjustments in payments, as among handlers (including producers who

are also handlers), to the end that the total sums paid by each

handler shall equal the value of the milk purchased by him at the

prices fixed in accordance with paragraph (A) of this subsection.

(D) Providing that, in the case of all milk purchased by handlers

from any producer who did not regularly sell milk during a period

of 30 days next preceding the effective date of such order for

consumption in the area covered thereby, payments to such producer,

for the period beginning with the first regular delivery by such

producer and continuing until the end of two full calendar months

following the first day of the next succeeding calendar month,

shall be made at the price for the lowest use classification

specified in such order, subject to the adjustments specified in

paragraph (B) of this subsection.

(E) Providing (i) except as to producers for whom such services

are being rendered by a cooperative marketing association,

qualified as provided in paragraph (F) of this subsection, for

market information to producers and for the verification of

weights, sampling, and testing of milk purchased from producers,

and for making appropriate deductions therefor from payments to

producers, and (ii) for assurance of, and security for, the payment

by handlers for milk purchased.

(F) Nothing contained in this subsection is intended or shall be

construed to prevent a cooperative marketing association qualified

under the provisions of sections 291 and 292 of this title, engaged

in making collective sales or marketing of milk or its products for

the producers thereof, from blending the net proceeds of all of its

sales in all markets in all use classifications, and making

distribution thereof to its producers in accordance with the

contract between the association and its producers: Provided, That

it shall not sell milk or its products to any handler for use or

consumption in any market at prices less than the prices fixed

pursuant to paragraph (A) of this subsection for such milk.

(G) No marketing agreement or order applicable to milk and its

products in any marketing area shall prohibit or in any manner

limit, in the case of the products of milk, the marketing in that

area of any milk or product thereof produced in any production area

in the United States.

(H) Omitted

(I) Establishing or providing for the establishment of research

and development projects, and advertising (excluding brand

advertising), sales promotion, educational, and other programs

designed to improve or promote the domestic marketing and

consumption of milk and its products, to be financed by producers

in a manner and at a rate specified in the order, on all producer

milk under the order. Producer contributions under this

subparagraph (FOOTNOTE 2) may be deducted from funds due producers

in computing total pool value or otherwise computing total funds

due producers and such deductions shall be in addition to the

adjustments authorized by paragraph (B) of this subsection.

Provision may be made in the order to exempt, or allow suitable

adjustments or credits in connection with, milk on which a

mandatory checkoff for advertising or marketing research is

required under the authority of any State law. Such funds shall be

paid to an agency organized by milk producers and producers'

cooperative associations in such form and with such methods of

operation as shall be specified in the order. Such agency may

expend such funds for any of the purposes authorized by this

subparagraph (FOOTNOTE 2) and may designate, employ, and allocate

funds to persons and organizations engaged in such programs which

meet the standards and qualifications specified in the order. All

funds collected under this subparagraph (FOOTNOTE 2) shall be

separately accounted for and shall be used only for the purposes

for which they were collected. Programs authorized by this

subparagraph (FOOTNOTE 2) may be either local or national in scope,

or both, as provided in the order, but shall not be international.

Order provisions under this subparagraph (FOOTNOTE 2) shall not

become effective in any marketing order unless such provisions are

approved by producers separately from other order provisions, in

the same manner provided for the approval of marketing orders, and

may be terminated separately whenever the Secretary makes a

determination with respect to such provisions as is provided for

the termination of an order in subsection (16)(B) of this section.

Disapproval or termination of such order provisions shall not be

considered disapproval of the order or of other terms of the

order. Notwithstanding any other provision of this chapter, any

producer against whose marketings any assessment is withheld or

collected under the authority of this subparagraph, (FOOTNOTE 2)

and who is not in favor of supporting the research and promotion

programs, as provided for herein, shall have the right to demand

and receive a refund of such assessment pursuant to the terms and

conditions specified in the order.

(FOOTNOTE 2) So in original. Probably should be ''paragraph''.

(J) Providing for the payment, from the total sums payable by all

handlers for milk (irrespective of the use classification of such

milk) and before computing uniform prices under paragraph (A) and

making adjustments in payments under paragraph (C), to handlers

that are cooperative marketing associations described in paragraph

(F) and to handlers with respect to which adjustments in payments

are made under paragraph (C), for services of marketwide benefit,

including but not limited to -

(i) providing facilities to furnish additional supplies of milk

needed by handlers and to handle and dispose of milk supplies in

excess of quantities needed by handlers;

(ii) handling on specific days quantities of milk that exceed

the quantities needed by handlers; and

(iii) transporting milk from one location to another for the

purpose of fulfilling requirements for milk of a higher use

classification or for providing a market outlet for milk of any

use classification.

(K)(i) Notwithstanding any other provision of law, milk produced

by dairies -

(I) owned or controlled by foreign persons; and

(II) financed by or with the use of bonds the interest on which

is exempt from Federal income tax under section 103 of title 26;

shall be treated as other-source milk, and shall be allocated as

milk received from producer-handlers for the purposes of

classifying producer milk, under the milk marketing program

established under this chapter. For the purposes of this

subparagraph, (FOOTNOTE 2) the term ''foreign person'' has the

meaning given such term under section 3508(3) of this title.

(ii) The Secretary of Agriculture shall prescribe regulations to

carry out this subparagraph. (FOOTNOTE 2)

(iii) This subparagraph (FOOTNOTE 2) shall not apply with respect

to any dairy that began operation before May 6, 1986.

(L) Providing that adjustments in payments by handlers under

paragraph (A) need not be the same as adjustments to producers

under paragraph (B) with regard to adjustments authorized by

subparagraphs (2) and (3) of paragraph (A) and clauses (b), (c),

and (d) of paragraph (B)(ii).

(6) Other commodities; terms and conditions of orders

In the case of the agricultural commodities and the products

thereof, other than milk and its products, specified in subsection

(2) of this section orders issued pursuant to this section shall

contain one or more of the following terms and conditions, and

(except as provided in subsection (7) of this section), no others:

(A) Limiting, or providing methods for the limitation of, the

total quantity of any such commodity or product, or of any grade,

size, or quality thereof, produced during any specified period or

periods, which may be marketed in or transported to any or all

markets in the current of interstate or foreign commerce or so as

directly to burden, obstruct, or affect interstate or foreign

commerce in such commodity or product thereof, during any specified

period or periods by all handlers thereof.

(B) Allotting, or providing methods for allotting, the amount of

such commodity or product, or any grade, size, or quality thereof,

which each handler may purchase from or handle on behalf of any and

all producers thereof, during any specified period or periods,

under a uniform rule based upon the amounts sold by such producers

in such prior period as the Secretary determines to be

representative, or upon the current quantities available for sale

by such producers, or both, to the end that the total quantity

thereof to be purchased, or handled during any specified period or

periods shall be apportioned equitably among producers.

(C) Allotting, or providing methods for allotting, the amount of

any such commodity or product, or any grade, size, or quality

thereof, which each handler may market in or transport to any or

all markets in the current of interstate or foreign commerce or so

as directly to burden, obstruct, or affect interstate or foreign

commerce in such commodity or product thereof, under a uniform rule

based upon the amounts which each such handler has available for

current shipment, or upon the amounts shipped by each such handler

in such prior period as the Secretary determines to be

representative, or both, to the end that the total quantity of such

commodity or product, or any grade, size, or quality thereof, to be

marketed in or transported to any or all markets in the current of

interstate or foreign commerce or so as directly to burden,

obstruct, or affect interstate or foreign commerce in such

commodity or product thereof, during any specified period or

periods shall be equitably apportioned among all of the handlers

thereof.

(D) Determining, or providing methods for determining, the

existence and extent of the surplus of any such commodity or

product, or of any grade, size, or quality thereof, and providing

for the control and disposition of such surplus, and for equalizing

the burden of such surplus elimination or control among the

producers and handlers thereof.

(E) Establishing or providing for the establishment of reserve

pools of any such commodity or product, or of any grade, size, or

quality thereof, and providing for the equitable distribution of

the net return derived from the sale thereof among the persons

beneficially interested therein.

(F) Requiring or providing for the requirement of inspection of

any such commodity or product produced during specified periods and

marketed by handlers.

(G) In the case of hops and their products in addition to, or in

lieu of, the foregoing terms and conditions, orders may contain one

or more of the following:

(i) Limiting, or providing methods for the limitation of, the

total quantity thereof, or of any grade, type, or variety

thereof, produced during any specified period or periods, which

all handlers may handle in the current of or so as directly to

burden, obstruct, or affect interstate or foreign commerce in

hops or any product thereof.

(ii) Apportioning, or providing methods for apportioning, the

total quantity of hops of the production of the then current

calendar year permitted to be handled equitably among all

producers in the production area to which the order applies upon

the basis of one or more or a combination of the following: The

total quantity of hops available or estimated will become

available for market by each producer from his production during

such period; the normal production of the acreage of hops

operated by each producer during such period upon the basis of

the number of acres of hops in production, and the average yield

of that acreage during such period as the Secretary determines to

be representative, with adjustments determined by the Secretary

to be proper for age of plantings or abnormal conditions

affecting yield; such normal production or historical record of

any acreage for which data as to yield of hops are not available

or which had no yield during such period shall be determined by

the Secretary on the basis of the yields of other acreage of hops

of similar characteristics as to productivity, subject to

adjustment as just provided for.

(iii) Allotting, or providing methods for allotting, the

quantity of hops which any handler may handle so that the

allotment fixed for that handler shall be limited to the quantity

of hops apportioned under preceding clause (ii) to each

respective producer of hops; such allotment shall constitute an

allotment fixed for that handler within the meaning of subsection

(5) of section 608a of this title.

(H) Providing a method for fixing the size, capacity, weight,

dimensions, or pack of the container, or containers, which may be

used in the packaging, transportation, sale, shipment, or handling

of any fresh or dried fruits, vegetables, or tree nuts: Provided,

however, That no action taken hereunder shall conflict with the

Standard Containers Act of 1916 (15 U.S.C. 251-256) and the

Standard Containers Act of 1928 (15 U.S.C. 257-257i).

(I) Establishing or providing for the establishment of production

research, marketing research and development projects designed to

assist, improve, or promote the marketing, distribution, and

consumption or efficient production of any such commodity or

product, the expense of such projects to be paid from funds

collected pursuant to the marketing order: Provided, That with

respect to orders applicable to almonds, filberts (otherwise known

as hazelnuts), California-grown peaches, cherries, papayas,

carrots, citrus fruits, onions, Tokay grapes, pears, dates, plums,

nectarines, celery, sweet corn, limes, olives, pecans, eggs,

avocados, apples, raisins, walnuts, tomatoes, caneberries

(including raspberries, blackberries, and loganberries), Florida

grown (FOOTNOTE 3) strawberries, or cranberries, such projects may

provide for any form of marketing promotion including paid

advertising and with respect to almonds, filberts (otherwise known

as hazelnuts), raisins, walnuts, olives, Florida Indian River

grapefruit, and cranberries may provide for crediting the pro rata

expense assessment obligations of a handler with all or any portion

of his direct expenditures for such marketing promotion including

paid advertising as may be authorized by the order and when the

handling of any commodity for canning or freezing is regulated,

then any such projects may also deal with the commodity or its

products in canned or frozen form: Provided further, That the

inclusion in a Federal marketing order of provisions for research

and marketing promotion, including paid advertising, shall not be

deemed to preclude, preempt or supersede any such provisions in any

State program covering the same commodity.

(FOOTNOTE 3) So in original. Probably should be

''Florida-grown''.

(J) In the case of pears for canning or freezing, any order for a

production area encompassing territory within two or more States or

portions thereof shall provide that the grade, size, quality,

maturity, and inspection regulation under the order applicable to

pears grown within any such State or portion thereof may be

recommended to the Secretary by the agency established to

administer the order only if a majority of the representatives from

that State on such agency concur in the recommendation each year.

(7) Terms common to all orders

In the case of the agricultural commodities and the products

thereof specified in subsection (2) of this section orders shall

contain one or more of the following terms and conditions:

(A) Prohibiting unfair methods of competition and unfair trade

practices in the handling thereof.

(B) Providing that (except for milk and cream to be sold for

consumption in fluid form) such commodity or product thereof, or

any grade, size, or quality thereof shall be sold by the handlers

thereof only at prices filed by such handlers in the manner

provided in such order.

(C) Providing for the selection by the Secretary of Agriculture,

or a method for the selection, of an agency or agencies and

defining their powers and duties, which shall include only the

powers:

(i) To administer such order in accordance with its terms and

provisions;

(ii) To make rules and regulations to effectuate the terms and

provisions of such order;

(iii) To receive, investigate, and report to the Secretary of

Agriculture complaints of violations of such order; and

(iv) To recommend to the Secretary of Agriculture amendments to

such order.

No person acting as a member of an agency established pursuant to

this paragraph shall be deemed to be acting in an official

capacity, within the meaning of section 610(g) of this title,

unless such person receives compensation for his personal services

from funds of the United States. There shall be included in the

membership of any agency selected to administer a marketing order

applicable to grapefruit or pears for canning or freezing one or

more representatives of processors of the commodity specified in

such order: Provided, That in a marketing order applicable to pears

for canning or freezing the representation of processors and

producers on such agency shall be equal.

(D) Incidental to, and not inconsistent with, the terms and

conditions specified in subsections (5) to (7) of this section and

necessary to effectuate the other provisions of such order.

(8) Orders with marketing agreement

Except as provided in subsection (9) of this section, no order

issued pursuant to this section shall become effective until the

handlers (excluding cooperative associations of producers who are

not engaged in processing, distributing, or shipping the commodity

or product thereof covered by such order) of not less than 50 per

centum of the volume of the commodity or product thereof covered by

such order which is produced or marketed within the production or

marketing area defined in such order have signed a marketing

agreement, entered into pursuant to section 608b of this title,

which regulates the handling of such commodity or product in the

same manner as such order, except that as to citrus fruits produced

in any area producing what is known as California citrus fruits no

order issued pursuant to this subsection shall become effective

until the handlers of not less than 80 per centum of the volume of

such commodity or product thereof covered by such order have signed

such a marketing agreement: Provided, That no order issued pursuant

to this subsection shall be effective unless the Secretary of

Agriculture determines that the issuance of such order is approved

or favored:

(A) By at least two-thirds of the producers who (except that as

to citrus fruits produced in any area producing what is known as

California citrus fruits said order must be approved or favored by

three-fourths of the producers), during a representative period

determined by the Secretary, have been engaged, within the

production area specified in such marketing agreement or order, in

the production for market of the commodity specified therein, or

who, during such representative period, have been engaged in the

production of such commodity for sale in the marketing area

specified in such marketing agreement, or order, or

(B) By producers who, during such representative period, have

produced for market at least two-thirds of the volume of such

commodity produced for market within the production area specified

in such marketing agreement or order, or who, during such

representative period, have produced at least two-thirds of the

volume of such commodity sold within the marketing area specified

in such marketing agreement or order.

(9) Orders with or without marketing agreement

Any order issued pursuant to this section shall become effective

in the event that, notwithstanding the refusal or failure of

handlers (excluding cooperative associations of producers who are

not engaged in processing, distributing, or shipping the commodity

or product thereof covered by such order) of more than 50 per

centum of the volume of the commodity or product thereof (except

that as to citrus fruits produced in any area producing what is

known as California citrus fruits said per centum shall be 80 per

centum) covered by such order which is produced or marketed within

the production or marketing area defined in such order to sign a

marketing agreement relating to such commodity or product thereof,

on which a hearing has been held, the Secretary of Agriculture

determines:

(A) That the refusal or failure to sign a marketing agreement

(upon which a hearing has been held) by the handlers (excluding

cooperative associations of producers who are not engaged in

processing, distributing, or shipping the commodity or product

thereof covered by such order) of more than 50 per centum of the

volume of the commodity or product thereof (except that as to

citrus fruits produced in any area producing what is known as

California citrus fruits said per centum shall be 80 per centum)

specified therein which is produced or marketed within the

production or marketing area specified therein tends to prevent the

effectuation of the declared policy of this chapter with respect to

such commodity or product, and

(B) That the issuance of such order is the only practical means

of advancing the interests of the producers of such commodity

pursuant to the declared policy, and is approved or favored:

(i) By at least two-thirds of the producers (except that as to

citrus fruits produced in any area producing what is known as

California citrus fruits said order must be approved or favored

by three-fourths of the producers) who, during a representative

period determined by the Secretary, have been engaged, within the

production area specified in such marketing agreement or order,

in the production for market of the commodity specified therein,

or who, during such representative period, have been engaged in

the production of such commodity for sale in the marketing area

specified in such marketing agreement, or order, or

(ii) By producers who, during such representative period, have

produced for market at least two-thirds of the volume of such

commodity produced for market within the production area

specified in such marketing agreement or order, or who, during

such representative period, have produced at least two-thirds of

the volume of such commodity sold within the marketing area

specified in such marketing agreement or order.

(10) Manner of regulation and applicability

No order shall be issued under this section unless it regulates

the handling of the commodity or product covered thereby in the

same manner as, and is made applicable only to persons in the

respective classes of industrial or commercial activity specified

in, a marketing agreement upon which a hearing has been held. No

order shall be issued under this chapter prohibiting, regulating,

or restricting the advertising of any commodity or product covered

thereby, nor shall any marketing agreement contain any provision

prohibiting, regulating, or restricting the advertising of any

commodity, or product covered by such marketing agreement.

(11) Regional application

(A) No order shall be issued under this section which is

applicable to all production areas or marketing areas, or both, of

any commodity or product thereof unless the Secretary finds that

the issuance of several orders applicable to the respective

regional production areas or regional marketing areas, or both, as

the case may be, of the commodity or product would not effectively

carry out the declared policy of this chapter.

(B) Except in the case of milk and its products, orders issued

under this section shall be limited in their application to the

smallest regional production areas or regional marketing areas, or

both, as the case may be, which the Secretary finds practicable,

consistently with carrying out such declared policy.

(C) All orders issued under this section which are applicable to

the same commodity or product thereof shall, so far as practicable,

prescribe such different terms, applicable to different production

areas and marketing areas, as the Secretary finds necessary to give

due recognition to the differences in production and marketing of

such commodity or product in such areas.

The price of milk paid by a handler at a plant operating in Clark

County, Nevada shall not be subject to any order issued under this

section.

(12) Approval of cooperative association as approval of producers

Whenever, pursuant to the provisions of this section, the

Secretary is required to determine the approval or disapproval of

producers with respect to the issuance of any order, or any term or

condition thereof, or the termination thereof, the Secretary shall

consider the approval or disapproval by any cooperative association

of producers, bona fide engaged in marketing the commodity or

product thereof covered by such order, or in rendering services for

or advancing the interests of the producers of such commodity, as

the approval or disapproval of the producers who are members of,

stockholders in, or under contract with, such cooperative

association of producers.

(13) Retailer and producer exemption

(A) No order issued under subsection (9) of this section shall be

applicable to any person who sells agricultural commodities or

products thereof at retail in his capacity as such retailer, except

to a retailer in his capacity as a retailer of milk and its

products.

(B) No order issued under this chapter shall be applicable to any

producer in his capacity as a producer.

(14) Violation of order; penalty

(A) Any handler subject to an order issued under this section, or

any officer, director, agent, or employee of such handler, who

violates any provision of such order shall, on conviction, be fined

not less than $50 or more than $5,000 for each such violation, and

each day during which such violation continues shall be deemed a

separate violation. If the court finds that a petition pursuant to

subsection (15) of this section was filed and prosecuted by the

defendant in good faith and not for delay, no penalty shall be

imposed under this subsection for such violations as occurred

between the date upon which the defendant's petition was filed with

the Secretary, and the date upon which notice of the Secretary's

ruling thereon was given to the defendant in accordance with

regulations prescribed pursuant to subsection (15) of this section.

(B) Any handler subject to an order issued under this section, or

any officer, director, agent, or employee of such handler, who

violates any provision of such order may be assessed a civil

penalty by the Secretary not exceeding $1,000 for each such

violation. Each day during which such violation continues shall be

deemed a separate violation, except that if the Secretary finds

that a petition pursuant to paragraph (15) was filed and prosecuted

by the handler in good faith and not for delay, no civil penalty

may be assessed under this paragraph for such violations as

occurred between the date on which the handler's petition was filed

with the Secretary, and the date on which notice of the Secretary's

ruling thereon was given to the handler in accordance with

regulations prescribed pursuant to paragraph (15). The Secretary

may issue an order assessing a civil penalty under this paragraph

only after notice and an opportunity for an agency hearing on the

record. Such order shall be treated as a final order reviewable in

the district courts of the United States in any district in which

the handler subject to the order is an inhabitant, or has the

handler's principal place of business. The validity of such order

may not be reviewed in an action to collect such civil penalty.

(15) Petition by handler for modification of order or exemption;

court review of ruling of Secretary

(A) Any handler subject to an order may file a written petition

with the Secretary of Agriculture, stating that any such order or

any provision of any such order or any obligation imposed in

connection therewith is not in accordance with law and praying for

a modification thereof or to be exempted therefrom. He shall

thereupon be given an opportunity for a hearing upon such petition,

in accordance with regulations made by the Secretary of

Agriculture, with the approval of the President. After such

hearing, the Secretary shall make a ruling upon the prayer of such

petition which shall be final, if in accordance with law.

(B) The District Courts of the United States in any district in

which such handler is an inhabitant, or has his principal place of

business, are vested with jurisdiction in equity to review such

ruling, provided a bill in equity for that purpose is filed within

twenty days from the date of the entry of such ruling. Service of

process in such proceedings may be had upon the Secretary by

delivering to him a copy of the bill of complaint. If the court

determines that such ruling is not in accordance with law, it shall

remand such proceedings to the Secretary with directions either (1)

to make such ruling as the court shall determine to be in

accordance with law, or (2) to take such further proceedings as, in

its opinion, the law requires. The pendency of proceedings

instituted pursuant to this subsection (15) shall not impede,

hinder, or delay the United States or the Secretary of Agriculture

from obtaining relief pursuant to section 608a(6) of this title.

Any proceedings brought pursuant to section 608a(6) of this title

(except where brought by way of counterclaim in proceedings

instituted pursuant to this subsection (15)) shall abate whenever a

final decree has been rendered in proceedings between the same

parties, and covering the same subject matter, instituted pursuant

to this subsection (15).

(16) Termination of orders and marketing agreements

(A)(i) Except as provided in clause (ii), the Secretary of

Agriculture shall, whenever he finds that any order issued under

this section, or any provision thereof, obstructs or does not tend

to effectuate the declared policy of this chapter, terminate or

suspend the operation of such order or such provision thereof.

(ii) The Secretary may not terminate any order issued under this

section for a commodity for which there is no Federal program

established to support the price of such commodity unless the

Secretary gives notice of, and a statement of the reasons relied

upon by the Secretary for, the proposed termination of such order

to the Committee on Agriculture, Nutrition, and Forestry of the

Senate and the Committee on Agriculture of the House of

Representatives not later than 60 days before the date such order

will be terminated.

(B) The Secretary shall terminate any marketing agreement entered

into under section 608b of this title, or order issued under this

section, at the end of the then current marketing period for such

commodity, specified in such marketing agreement or order, whenever

he finds that such termination is favored by a majority of the

producers who, during a representative period determined by the

Secretary, have been engaged in the production for market of the

commodity specified in such marketing agreement or order, within

the production area specified in such marketing agreement or order,

or who, during such representative period, have been engaged in the

production of such commodity for sale within the marketing area

specified in such marketing agreement or order: Provided, That such

majority have, during such representative period, produced for

market more than 50 per centum of the volume of such commodity

produced for market within the production area specified in such

marketing agreement or order, or have, during such representative

period, produced more than 50 per centum of the volume of such

commodity sold in the marketing area specified in such marketing

agreement or order, but such termination shall be effective only if

announced on or before such date (prior to the end of the then

current marketing period) as may be specified in such marketing

agreement or order.

(C) Except as otherwise provided in this subsection with respect

to the termination of an order issued under this section, the

termination or suspension of any order or amendment thereto or

provision thereof, shall not be considered an order within the

meaning of this section.

(17) Provisions applicable to amendments

The provisions of this section and section 608d of this title

applicable to orders shall be applicable to amendments to orders:

Provided, That notice of a hearing upon a proposed amendment to any

order issued pursuant to this section, given not less than three

days prior to the date fixed for such hearing, shall be deemed due

notice thereof: Provided further, That if one-third or more of the

producers as defined in a milk order apply in writing for a hearing

on a proposed amendment of such order, the Secretary shall call

such a hearing if the proposed amendment is one that may legally be

made to such order. Subsection (12) of this section shall not be

construed to permit any cooperative to act for its members in an

application for a hearing under the foregoing proviso and nothing

in such proviso shall be construed to preclude the Secretary from

calling an amendment hearing as provided in subsection (3) of this

section. The Secretary shall not be required to call a hearing on

any proposed amendment to an order in response to an application

for a hearing on such proposed amendment if the application

requesting the hearing is received by the Secretary within ninety

days after the date on which the Secretary has announced the

decision on a previously proposed amendment to such order and the

two proposed amendments are essentially the same.

(18) Milk prices

The Secretary of Agriculture, prior to prescribing any term in

any marketing agreement or order, or amendment thereto, relating to

milk or its products, if such term is to fix minimum prices to be

paid to producers or associations of producers, or prior to

modifying the price fixed in any such term, shall ascertain the

parity prices of such commodities. The prices which it is declared

to be the policy of Congress to establish in section 602 of this

title shall, for the purposes of such agreement, order, or

amendment, be adjusted to reflect the price of feeds, the available

supplies of feeds, and other economic conditions which affect

market supply and demand for milk or its products in the marketing

area to which the contemplated marketing agreement, order, or

amendment relates. Whenever the Secretary finds, upon the basis of

the evidence adduced at the hearing required by section 608b of

this title or this section, as the case may be, that the parity

prices of such commodities are not reasonable in view of the price

of feeds, the available supplies of feeds, and other economic

conditions which affect market supply and demand for milk and its

products in the marketing area to which the contemplated agreement,

order, or amendment relates, he shall fix such prices as he finds

will reflect such factors, insure a sufficient quantity of pure and

wholesome milk to meet current needs and further to assure a level

of farm income adequate to maintain productive capacity sufficient

to meet anticipated future needs, and be in the public interest.

Thereafter, as the Secretary finds necessary on account of changed

circumstances, he shall, after due notice and opportunity for

hearing, make adjustments in such prices.

(19) Producer or processor referendum for approving order

For the purpose of ascertaining whether the issuance of an order

is approved or favored by producers or processors, as required

under the applicable provisions of this chapter, the Secretary may

conduct a referendum among producers or processors and in the case

of an order other than an amendatory order shall do so. The

requirements of approval or favor under any such provision shall be

held to be complied with if, of the total number of producers or

processors, or the total volume of production, as the case may be,

represented in such referendum, the percentage approving or

favoring is equal to or in excess of the percentage required under

such provision. The terms and conditions of the proposed order

shall be described by the Secretary in the ballot used in the

conduct of the referendum. The nature, content, or extent of such

description shall not be a basis for attacking the legality of the

order or any action relating thereto. Nothing in this subsection

shall be construed as limiting representation by cooperative

associations as provided in subsection (12) of this section. For

the purpose of ascertaining whether the issuance of an order

applicable to pears for canning or freezing is approved or favored

by producers as required under the applicable provisions of this

chapter, the Secretary shall conduct a referendum among producers

in each State in which pears for canning or freezing are proposed

to be included within the provisions of such marketing order and

the requirements of approval or favor under any such provisions

applicable to pears for canning or freezing shall be held to be

complied with if, of the total number of producers, or the total

volume of production, as the case may be, represented in such

referendum, the percentage approving or favoring is equal to or in

excess of 66 2/3 per centum except that in the event that pear

producers in any State fail to approve or favor the issuance of any

such marketing order, it shall not be made effective in such State.

-SOURCE-

(May 12, 1933, ch. 25, title I, Sec. 8c, as added Aug. 24, 1935,

ch. 641, Sec. 5, 49 Stat. 753; amended June 25, 1936, ch. 804, 49

Stat. 1921; June 3, 1937, ch. 296, Sec. 1, 2(d), (e), (f), (k),

(l), (m), 50 Stat. 246, 247; Aug. 5, 1937, ch. 567, 50 Stat. 563;

Apr. 13, 1938, ch. 143, Sec. 1, 2, 52 Stat. 215; May 31, 1939, ch.

157, 53 Stat. 793; Feb. 10, 1942, ch. 52, Sec. 2, 3, 56 Stat. 85;

1947 Reorg. Plan No. 1, Sec. 102, eff. July 1, 1947, 12 F.R. 4534,

61 Stat. 951; Aug. 1, 1947, ch. 425, Sec. 2, 4, 61 Stat. 707, 710;

July 3, 1948, ch. 827, title III, Sec. 302(b), (c), 62 Stat. 1258;

June 29, 1949, ch. 273, 63 Stat. 282; Aug. 28, 1954, ch. 1041,

title IV, Sec. 401(b)-(d), 68 Stat. 906, 907; Pub. L. 87-128, title

I, Sec. 141(3), (4), Aug. 8, 1961, 75 Stat. 304, 305; Pub. L.

87-703, title IV, Sec. 403, Sept. 27, 1962, 76 Stat. 632; Pub. L.

89-321, title I, Sec. 101, 102, Nov. 3, 1965, 79 Stat. 1187; Pub.

L. 89-330, Sec. 1(b), Nov. 8, 1965, 79 Stat. 1270; Pub. L. 91-196,

Sec. 1, Feb. 20, 1970, 84 Stat. 14; Pub. L. 91-292, Sec. 1(2), June

25, 1970, 84 Stat. 333; Pub. L. 91-341, July 18, 1970, 84 Stat.

438; Pub. L. 91-363, July 31, 1970, 84 Stat. 687; Pub. L. 91-384,

Aug. 18, 1970, 84 Stat. 827; Pub. L. 91-522, Nov. 25, 1970, 84

Stat. 1357; Pub. L. 91-524, title II, Sec. 201(a), Nov. 30, 1970,

84 Stat. 1359; Pub. L. 91-670, title I, Sec. 101, title II, Sec.

201, Jan. 11, 1971, 84 Stat. 2040, 2041; Pub. L. 92-120, Aug. 13,

1971, 85 Stat. 340; Pub. L. 92-233, Feb. 15, 1972, 86 Stat. 39;

Pub. L. 92-466, Oct. 6, 1972, 86 Stat. 780; Pub. L. 91-524, title

II, Sec. 201(f), Nov. 30, 1970, as added Pub. L. 93-86, Sec.

1(2)(B), Aug. 10, 1973, 87 Stat. 222; Pub. L. 93-230, Dec. 29,

1973, 87 Stat. 945; Pub. L. 95-279, title IV, Sec. 401(a), May 15,

1978, 92 Stat. 242; Pub. L. 96-494, title I, Sec. 101, Dec. 3,

1980, 94 Stat. 2570; Pub. L. 97-98, title I, Sec. 101(a), Dec. 22,

1981, 95 Stat. 1218; Pub. L. 98-171, Sec. 1, Nov. 29, 1983, 97

Stat. 1117; Pub. L. 98-180, title III, Sec. 304, Nov. 29, 1983, 97

Stat. 1151; Pub. L. 99-198, title I, Sec. 131(a), 133, title XVI,

Sec. 1661(a), 1662(a), Dec. 23, 1985, 99 Stat. 1372, 1373, 1630,

1631; Pub. L. 100-203, title I, Sec. 1501, Dec. 22, 1987, 101 Stat.

1330-27; Pub. L. 100-418, title IV, Sec. 4601, 4602, Aug. 23, 1988,

102 Stat. 1407; Pub. L. 101-624, title I, Sec. 112, 113, title

XIII, Sec. 1306, Nov. 28, 1990, 104 Stat. 3380, 3561; Pub. L.

102-237, title I, Sec. 115(2), Dec. 13, 1991, 105 Stat. 1840; Pub.

L. 102-553, Sec. 2, Oct. 28, 1992, 106 Stat. 4141; Pub. L. 106-78,

title VII, Sec. 757(a), 760, Oct. 22, 1999, 113 Stat. 1171, 1173;

Pub. L. 107-76, title VII, Sec. 765, Nov. 28, 2001, 115 Stat. 743;

Pub. L. 107-171, title X, Sec. 10601(a), May 13, 2002, 116 Stat.

511.)

-STATAMEND-

AMENDMENT OF SECTION

For termination of amendment by section 101(b) of Pub. L.

97-98, see Effective and Termination Dates of 1981 Amendment note

below.

-REFTEXT-

REFERENCES IN TEXT

The Naval Stores Act, referred to in subsec. (2), is act Mar. 3,

1923, ch. 217, 42 Stat. 1435, as amended, which is classified

generally to chapter 4 (Sec. 91 et seq.) of this title. For

complete classification of this Act to the Code, see section 91 of

this title and Tables.

For the effective date of this sentence, referred to in subsec.

(5)(A), see Effective Date of 1985 Amendment note below.

The Standard Containers Act of 1916 and the Standard Containers

Act of 1928, referred to in subsec. (6)(H), are act Aug. 31, 1916,

ch. 426, 39 Stat. 673, as amended, and act May 21, 1928, ch. 664,

45 Stat. 685, as amended, respectively, and were repealed by Pub.

L. 90-628, Sec. 1(a), (b), Oct. 22, 1968, 82 Stat. 1320.

-COD-

CODIFICATION

Subsec. (5)(H), which permitted marketing orders applicable to

milk and its products to be limited in application to milk used for

manufacturing, was omitted as terminated. See Termination of 1965

Amendments note set out below.

Phrase ''with the approval of the President,'' following

''Secretary of Agriculture'' in opening par. of subsec. (9) of this

section was omitted on the authority of 1947 Reorg. Plan No. 1, set

out in the Appendix to Title 5, Government Organization and

Employees, which abolished the function of the President with

respect to approving determinations of the Secretary of Agriculture

in connection with agricultural marketing orders under this

section.

The words ''(including the district court of the United States

for the District of Columbia)'' in subsec. (15)(B) following ''The

District Courts of the United States'' have been deleted as

superfluous in view of section 132(a) of Title 28, Judiciary and

Judicial Procedure which states that ''There should be in each

judicial district a district court which shall be a court of record

known as the United States District Court for the district'', and

section 88 of said Title 28 which states that ''The District of

Columbia constitutes one judicial district.''

In subsec. (18), ''or, in the case of orders applying only to

manufacturing milk, the production area'' following ''marketing

area'' in two places, was deleted from the Code. See Termination of

1965 Amendments note set out below.

-MISC3-

AMENDMENTS

2002 - Par. (2)(A). Pub. L. 107-171, Sec. 10601(a)(1), inserted

''caneberries (including raspberries, blackberries, and

loganberries),'' after ''other than pears, olives, grapefruit,

cherries,''.

Par. (6)(I). Pub. L. 107-171, Sec. 10601(a)(2), substituted

''tomatoes, caneberries (including raspberries, blackberries, and

loganberries),'' for ''tomatoes,,''.

2001 - Par. (1). Pub. L. 107-76, which directed insertion of

''The Secretary is authorized to implement a producer allotment

program and a handler withholding program under the cranberry

marketing order in the same crop year through informal rulemaking

based on a recommendation and supporting economic analysis

submitted by the Cranberry Marketing Committee. Such recommendation

and analysis shall be submitted by the Committee no later than

March 1 of each year.'' at end of penultimate sentence of section

8c(1) of the Agricultural Marketing Agreement Act of 1937, was

executed to this section, which is section 8c(1) of the

Agricultural Adjustment Act, to reflect the probable intent of

Congress.

1999 - Subsec. (6)(I). Pub. L. 106-78, Sec. 757(a)(2),

substituted ''Florida Indian River grapefruit, and cranberries''

for ''and Florida Indian River grapefruit''.

Pub. L. 106-78, Sec. 757(a)(1), which directed substitution of

'', Florida grown strawberries, or cranberries'' for ''or Florida

grown strawberries'', was executed by making the substitution for

''or Florida-grown strawberries'' to reflect the probable intent of

Congress.

Subsec. (11). Pub. L. 106-78, Sec. 760, inserted at end ''The

price of milk paid by a handler at a plant operating in Clark

County, Nevada shall not be subject to any order issued under this

section.''

1992 - Subsec. (1). Pub. L. 102-553 inserted at end ''In carrying

out this section, the Secretary shall complete all informal

rulemaking actions necessary to respond to recommendations

submitted by administrative committees for such orders as

expeditiously as possible, but not more than 45 days (to the extent

practicable) after submission of the committee recommendations.

The Secretary shall establish time frames for each office and

agency within the Department of Agriculture to consider the

committee recommendations.''

1991 - Subsec. (5)(B). Pub. L. 102-237 substituted '', and'' for

''and,'' before cl. (f) in last sentence.

1990 - Subsec. (5)(B)(f). Pub. L. 101-624, Sec. 112, added cl.

(f).

Subsec. (5)(L). Pub. L. 101-624, Sec. 113, added par. (L).

Subsec. (14)(A). Pub. L. 101-624, Sec. 1306(1), struck out

''(other than a provision calling for payment of a pro rata share

of expenses)'' before ''shall, on conviction'' and substituted ''.

If'' for '': Provided, That if''.

Subsec. (14)(B). Pub. L. 101-624, Sec. 1306(2), struck out

''(other than a provision calling for payment of a pro rata share

of expenses)'' before ''may be assessed''.

1988 - Subsec. (5)(K). Pub. L. 100-418, Sec. 4601, added par.

(K).

Subsec. (6)(I). Pub. L. 100-418, Sec. 4602, substituted

''tomatoes, or Florida-grown strawberries,'' for ''or tomatoes''.

1987 - Subsec. (14). Pub. L. 100-203 designated existing

provisions as par. (A) and added par. (B).

1985 - Subsec. (5)(A). Pub. L. 99-198, Sec. 131(a), inserted

provisions, with accompanying table, establishing the minimum

aggregate amounts of the adjustments under cls. (1) and (2) to

prices for milk of the highest use classification under orders in

effect on Dec. 23, 1985, and requiring that such prices be adjusted

for the locations at which delivery of such milk is made to such

handlers.

Subsec. (5)(J). Pub. L. 99-198, Sec. 133, added par. (J).

Subsec. (14). Pub. L. 99-198, Sec. 1661(a), substituted

''$5,000'' for ''$500''.

Subsec. (16)(A). Pub. L. 99-198, Sec. 1662(a)(1), designated

existing provisions of par. (A) as cl. (i), substituted ''Except as

provided in clause (ii), the Secretary'' for ''The Secretary'', and

added cl. (ii).

Subsec. (16)(C). Pub. L. 99-198, Sec. 1662(a)(2), substituted

''Except as otherwise provided in this subsection with respect to

the termination of an order issued under this section, the

termination'' for ''The termination''.

1983 - Subsec. (2). Pub. L. 98-180, Sec. 304(1), substituted

''poultry (but not excepting turkeys and not excepting poultry

which produce commercial eggs),'' for ''poultry (but not excepting

turkeys), eggs (but not excepting turkey hatching eggs),''.

Subsec. (6)(I). Pub. L. 98-180, Sec. 304(2), inserted ''eggs,''

after ''pecans,''.

Pub. L. 98-171 inserted ''filberts (otherwise known as

hazelnuts),'' after ''almonds,'' in two places.

1981 - Subsec. (5)(B). Pub. L. 97-98, Sec. 101(a)(1), struck out

cl. (f) which extended authority for Class I Base Plans, provided

for a representative Class I base period of one to three years to

be automatically updated each year, inserted provisions to

automatically keep the total of bases closely related to changing

levels of market utilization, provided authorization for transfers

of Class I bases on such terms and conditions as prescribed in the

order by the Secretary, added authority to make provision in the

order for the alleviation of hardship and inequity among producers

including abnormally low production during a base forming period

due to circumstances beyond his control, operation during part but

not all of a base period, acts of God, and reduced marketing due to

diseases, pesticides, residues, and condemnation of milk, and

removed provision under which the participation of new producers in

the market's Class I sales was confined to increases in such sales

with defined exceptions.

Subsec. (17). Pub. L. 97-98, Sec. 101(a)(2), inserted provisions

governing procedures when one-third or more of producers apply in

writing for a hearing on a proposed amendment of an order,

prohibiting any construction of subsec. (12) in a way which might

permit cooperatives to act for their members in applying for

hearings, and excusing the Secretary from the requirement of having

to call a hearing on proposed amendments to an order in response to

an application for such a hearing when the application for such a

hearing is received by the Secretary within ninety days after the

date on which the Secretary has announced his decision on a

previously proposed amendment to such order and the two proposed

amendments are essentially the same. An identical amendment was

made by Pub. L. 91-524, Sec. 201(f)(1), as added by Pub. L. 93-86,

see Termination of 1970 Amendment note set out below.

Subsec. (18). Pub. L. 97-98, Sec. 101(a)(3), inserted ''to meet

current needs and further to assure a level of farm income adequate

to maintain productive capacity sufficient to meet anticipated

future needs'' after ''pure and wholesome milk''. An identical

amendment was made by Pub. L. 91-524, Sec. 201(f)(2), as added by

Pub. L. 93-86, see Termination of 1970 Amendment note set out

below.

1980 - Subsec. (6)(I). Pub. L. 96-494 inserted ''walnuts'' before

''or tomatoes'' and substituted ''walnuts, olives, and Florida

Indian River grapefruit'' for ''Florida Indian River grapefruit''.

1978 - Subsec. (6)(I). Pub. L. 95-279 inserted ''raisins'' after

''apples'' and after ''with respect to almonds''.

1973 - Subsec. (6)(I). Pub. L. 93-230 inserted ''and Florida

Indian River grapefruit'' after ''with respect to almonds''.

Subsec. (17). Pub. L. 91-524, Sec. 201(f)(1), as added by Pub. L.

93-86, inserted provisions governing procedures when one-third or

more of producers apply in writing for a hearing on a proposed

amendment of an order, prohibiting any construction of subsec. (12)

in a way which might permit cooperatives to act for their members

in applying for hearings, and excusing the Secretary from the

requirement of having to call a hearing on proposed amendments to

an order in response to an application for such a hearing when the

application for such a hearing is received by the Secretary within

ninety days after the date on which the Secretary has announced his

decision on a previously proposed amendment to such order and the

two proposed amendments are essentially the same.

Subsec. (18). Pub. L. 91-524, Sec. 201(f)(2), as added by Pub. L.

93-86, inserted ''to meet current needs and further to assure a

level of farm income adequate to maintain productive capacity

sufficient to meet anticipated future needs'' after ''insure a

sufficient quantity of pure and wholesome milk''.

1972 - Subsec. (2). Pub. L. 92-233 inserted potatoes for canning,

freezing or other processing to the agricultural commodities

excluded from the categories of commodities which the Secretary may

regulate. The amendment served to make permanent the temporary

exemption first inserted by Pub. L. 91-196. See 1970 Amendment note

and Effective Date of 1970 Amendment note.

Subsec. (2)(A). Pub. L. 92-466, Sec. 1(1), inserted ''pears,''

after ''except canned or frozen'' and after ''canning or freezing

other than''.

Subsec. (6)(I). Pub. L. 92-466, Sec. 1(2), struck out ''fresh''

before ''pears'' and provided that when the handling of any

commodity for canning or freezing is regulated, then any projects

may also deal with the commodity or its products in canned or

frozen form.

Subsec. (6)(J). Pub. L. 92-466, Sec. 1(5), added par. (J).

Subsec. (7)(C). Pub. L. 92-466, Sec. 1(3), inserted ''or pears''

after ''marketing order applicable to grapefruit'' and inserted

proviso that in a marketing order applicable to pears for canning

or freezing the representation of processors and producers on the

agency shall be equal.

Subsec. (19). Pub. L. 92-466, Sec. 1(4), inserted provision

respecting producer or processor referendum for approving order

applicable to pears for canning or freezing.

1971 - Subsec. (5)(I). Pub. L. 91-670, Sec. 101, added par. (I).

Subsec. (6)(I). Pub. L. 92-120 inserted reference to

''California-grown peaches'' in proviso.

Pub. L. 91-670, Sec. 201, inserted reference to ''tomatoes'' in

proviso.

1970 - Subsec. (2). Pub. L. 91-196 inserted potatoes for canning,

freezing or other processing to the category of agricultural

commodities excluded from the Secretary's power to issue orders to

regulate the handling of such commodities.

Subsec. (2)(A). Pub. L. 91-341 inserted provision for marketing

orders for apples produced in Colorado, Utah, New Mexico, Illinois

and Ohio.

Subsec. (5)(B). Pub. L. 91-524 retained and separately stated the

existing authority for base-surplus or base-excess provisions in

milk marketing orders in cl. (d), clarified and reaffirmed, in cl.

(e), the authority for plans under which leveling of spring and

fall production is encouraged by withholding from sums paid for

milk in the spring and subsequently paying the same sums to

producers in the fall, and, in cl. (f), extended the authority for

Class I Base Plans, provided for a representative Class I base

period of one to three years to be automatically updated each year,

inserted provisions to automatically keep the total of bases

closely related to changing levels of market utilization, provided

authorization for transfers of Class I bases on such terms and

conditions as prescribed in the order by the Secretary, added

authority to make provision in the order for the alleviation of

hardship and inequity among producers including abnormally low

production during a base forming period due to circumstances beyond

his control, operation during part but not all of a base period,

acts of God, and reduced marketing due to diseases, pesticides,

residues, and condemnation of milk, and removed provision under

which the participation of new producers in the market's Class I

sales was confined to increases in such sales with defined

exceptions.

Subsec. (6)(I). Pub. L. 91-522 in first proviso inserted

applicability to almonds and provisions authorizing with respect to

almonds the crediting of the pro rata expense assessment

obligations of a handler with all or any portion of his direct

expenditures for marketing promotion including paid advertising as

authorized by the order, and in second proviso inserted provisions

relating to marketing promotion, including paid advertising, in

Federal marketing orders.

Pub. L. 91-384 inserted ''papayas,'' after ''applicable to

cherries,''.

Pub. L. 91-363 substituted ''avocados, or apples'' for ''or

avocados'' in proviso.

Pub. L. 91-292 authorized the establishment of production

research, inserted efficient production to the enumeration of aims

to be served by established projects, and inserted proviso that the

inclusion in a Federal marketing order of provisions for research

not be deemed to preclude, preempt, or supersede research

provisions in any State program covering the same commodity.

1965 - Subsec. (5). Pub. L. 89-321, Sec. 101, 102, inserted '',

which may be adjusted to reflect sales of such milk by any handler

or by all handlers in any classification or classifications,''

before ''during a representative period of time'' in cl. (d) of

par. (B) and, after ''representative period of time'', inserted

''which need not be limited to one year'' in completion of first

sentence of cl. (d) as well as all the remaining sentences in

completion of cl. (d), and added par. (H).

Subsec. (6)(I). Pub. L. 89-330 inserted ''carrots, citrus fruits,

onions, Tokay grapes, fresh pears, dates, plums, nectarines,

celery, sweet corn, limes, olives, pecans, or avocados'' in

proviso.

Subsec. (18). Pub. L. 89-321, Sec. 102, inserted ''or, in the

case of orders applying only to manufacturing milk, the production

area'' after ''marketing area'' wherever occurring.

1962 - Subsec. (6)(I). Pub. L. 87-703 inserted the cherry

marketing order provisions for advertising.

1961 - Subsec. (2). Pub. L. 87-128, Sec. 141(3), designated

existing provisions as par. (A), included in exception provision

thereof cherries, apples, and cranberries, substituted ''Idaho, New

York, Michigan, Maryland, New Jersey, Indiana, California, Maine,

Vermont, New Hampshire, Rhode Island, Massachusetts, and

Connecticut, and not including fruits for canning or freezing other

than olives, grapefruit, cherries, cranberries, and apples produced

in the States named above except Washington, Oregon, and Idaho)''

for ''and Idaho, and not including fruits, other than olives and

grapefruit, for canning or freezing)'', struck out ''soybeans''

before '', hops, honeybees'', and added par. (B) and provisions

respecting the effectiveness of orders as to cherries, apples and

cranberries for canning or freezing, the applicability of orders to

peanuts, the treatment of commodities as single commodities and

separate agricultural commodities, and the deeming of the covered

agricultural commodities and products as specified in the

subsection.

Subsec. (19). Pub. L. 87-128, Sec. 141(4), provided for processor

referendum for approving order, required referendum in case of an

order other than an amendatory order, and a description of the

terms and conditions of the proposed order in the ballot used in

the conduct of the referendum, and prohibited the use of such

description as a basis for attacking legality of orders or any

action relating thereto.

1954 - Subsec. (2). Act Aug. 28, 1954, Sec. 401(b), made

grapefruit for canning and freezing (but not the canned or frozen

product) subject to its provisions, and inserted proviso.

Subsec. (6). Act Aug. 28, 1954, Sec. 401(c), brought within its

scope all agricultural commodities specified in subsec. (2) of this

section, and added pars. (H) and (I).

Subsec. (7)(C). Act Aug. 28, 1954, Sec. 401(d), provided for the

appointment of representatives from the grapefruit for canning

processors.

1949 - Subsecs. (2), (6). Act June 29, 1949, made section

applicable to filberts and almonds.

1948 - Subsec. (17). Act July 3, 1948, Sec. 302(c), struck out

''section 608e of this title''.

Subsec. (18). Act July 3, 1948, Sec. 302(b), made definition of

''parity'' conform to definition stated in section 1301(a)(1) of

this title.

1947 - Subsec. (2). Act Aug. 1, 1947, inserted ''or freezing''

after ''canning'' in two places.

Subsec. (6). Act Aug. 1, 1947, in opening par., inserted ''or

freezing'' after ''canning'' in two places, reenacted pars. (A) to

(E) without change, inserted par. (F), redesignated former par. (F)

as (G) and reenacted such par. without further change.

1942 - Subsec. (6), opening par. Act Feb. 10, 1942, Sec. 2,

inserted ''and their products'' after ''hops''.

Subsec. (6)(F). Act Feb. 10, 1942, Sec. 3, added par. (F).

1939 - Subsecs. (2), (6). Act May 31, 1939, amended Act June 3,

1937, Sec. 2, by adding subsection (m) thereto, which in turn

amended subsecs. (2) and (6) of this section.

1938 - Subsec. (2). Act Apr. 13, 1938, Sec. 1, inserted ''hops''

after ''soybeans''.

Subsec. (6). Act Apr. 13, 1938, Sec. 2, inserted ''hops'' after

''soybeans and their products''.

1937 - Subsec. (2). Act Aug. 5, 1937, amended act June 3, 1937,

by adding thereto subsec. (k), which in turn amended subsec. (2) by

inserting ''and the products of honeybees'' after ''except the

products of naval stores'' and '', honeybees'' after ''soybeans''.

Subsec. (5)(B)(d). Act June 3, 1937, Sec. 2(d), substituted

''marketings'' for ''production''.

Subsec. (6). Act Aug. 5, 1937, amended act June 3, 1937, by

adding subsec. (l), which in turn amended subsec. (6) by inserting

''honeybees'' after ''soybeans and their products,''.

Subsec. (6)(B). Act June 3, 1937, Sec. 2(e), struck out

''produced or'' and ''production or sales of'' and inserted in lieu

thereof ''quantities available for sale by''.

Subsecs. (18), (19). Act June 3, 1937, Sec. 2(f), added subsecs.

(18) and (19). See note set out under section 601 of this title.

1936 - Act June 25, 1936, provided that the Supreme Court of the

District of Columbia should thereafter be known as the ''district

court of the United States for the District of Columbia''.

1935 - Section added to the Agricultural Adjustment Act by act

Aug. 24, 1935, which also struck out former section 608(3) of this

title.

EFFECTIVE DATE OF 1999 AMENDMENT

Pub. L. 106-78, title VII, Sec. 760, Oct. 22, 1999, 113 Stat.

1173, provided that the amendment made by section 760 is effective

Oct. 1, 1999.

EFFECTIVE DATE OF 1990 AMENDMENT

Amendments by sections 112 and 113 of Pub. L. 101-624 effective

beginning with 1991 crop of an agricultural commodity, with

provision for prior crops, see section 1171 of Pub. L. 101-624, set

out as a note under section 1421 of this title.

EFFECTIVE DATE OF 1985 AMENDMENT

Section 131(b) of Pub. L. 99-198 provided that: ''The amendment

made by this section (amending this section) shall take effect on

the first day of the first month beginning more than 120 days after

the date of the enactment of this Act (Dec. 23, 1985).''

Section 133 of Pub. L. 99-198 provided that the amendment made by

that section is effective Jan. 1, 1986.

Section 1661(b) of Pub. L. 99-198 provided that: ''The amendment

made by subsection (a) (amending this section) shall not apply with

respect to any violation described in section 8c(14) of the

Agricultural Adjustment Act (subsec. (14) of this section)

occurring before the date of the enactment of this Act (Dec. 23,

1985).''

EFFECTIVE AND TERMINATION DATES OF 1981 AMENDMENT

Section 101(b) of Pub. L. 97-98, as amended by Pub. L. 99-198,

title I, Sec. 132, Dec. 23, 1985, 99 Stat. 1373; Pub. L. 101-624,

title I, Sec. 108, Nov. 28, 1990, 104 Stat. 3380; Pub. L. 103-66,

title I, Sec. 1105(b), Aug. 10, 1993, 107 Stat. 317, provided that:

''The provisions of subsection (a) (amending this section) shall

become effective January 1, 1982, and shall terminate December 31,

1996.''

EFFECTIVE DATE OF 1978 AMENDMENT

Section 401(a) of Pub. L. 95-279 provided that the amendment made

by that section is effective Oct. 1, 1978.

EFFECTIVE DATE OF 1970 AMENDMENT

Section 2 of Pub. L. 91-196 provided that: ''The amendments made

by this Act (amending this section) shall be effective only during

the period beginning with the date of enactment of this Act (Feb.

20, 1970) and ending two years after such date.'' The limited

effective period beginning Feb. 20, 1970, and ending two years

after such date for the amendment made by Pub. L. 91-196 was

removed as a result of the enactment of Pub. L. 92-233, Feb. 15,

1972, 86 Stat. 39, which made an amendment to the section identical

to that made by Pub. L. 91-196 but without a time limit on such

amendment of the type which had limited the duration of such

earlier Pub. L. 91-196 amendment.

EFFECTIVE DATE OF 1948 AMENDMENT

Amendment by act July 3, 1948, effective Jan. 1, 1950, see

section 303 of act July 3, 1948, set out as a note under section

1301 of this title.

TERMINATION OF 1970 AMENDMENT; SAVINGS PROVISION

Section 201(e) of Pub. L. 91-524, as amended by Pub. L. 93-86,

Sec. 1(2)(A), Aug. 10, 1973, 87 Stat. 222; Pub. L. 95-113, title

II, Sec. 201, Sept. 29, 1977, 91 Stat. 919, provided that: ''The

provisions of this section (amending this section) shall not be

effective after December 31, 1981, except with respect to orders

providing for class I base plans issued prior to such date, but in

no event shall any order so issued extend or be effective beyond

December 31, 1984.''

TERMINATION OF 1965 AMENDMENTS; REVERSION OF STATUS OF PRODUCER

HANDLERS OF MILK TO PRE-AMENDMENT STATUS

Sections 103 and 104 of Pub. L. 89-321, as amended by Pub. L.

90-559, Sec. 1(3), Oct. 11, 1968, 82 Stat. 996, provided that:

''Sec. 103. The provisions of this title (amending this section)

shall not be effective after December 31, 1970.

''Sec. 104. The legal status of producer handlers of milk under

the provisions of the Agricultural Adjustment Act, as reenacted and

amended by the Agricultural Marketing Agreement Act of 1937, as

amended, shall be the same subsequent to the adoption of the

amendments made by this title (amending this section) as it was

prior thereto.''

SHORT TITLE

Section 1 of Pub. L. 89-321 provided: ''That this Act (enacting

sections 1305, 1306, 1316, 1344b, 1379, 1446a-1, and 1838 of this

title, amending this section and sections 1301, 1314b, 1332, 1333,

1334, 1335, 1339, 1339a, 1339c, 1340, 1346, 1348, 1350, 1353, 1374,

1379b, 1379c, 1379d, 1379e, 1379g, 1379i, 1423, 1427, 1428, 1444,

1445a, and 1782 of this title and section 590p of Title 16,

Conservation, repealing sections 1801 to 1816, 1821 to 1824, 1831,

and 1832 to 1837 of this title, enacting provisions set out as

notes under this section and sections 1282, 1301, 1332, 1334, 1339,

1350, 1359, 1379b, 1379c, 1379d, 1379i, 1428, 1441, and 1445a of

this title and section 590p of Title 16, and amending provisions

set out as notes under sections 1339, 1379c, and 1427 of this

title) may be cited as the 'Food and Agriculture Act of 1965'.''

MINNESOTA-WISCONSIN PRICE SERIES REFORM

Section 103 of Pub. L. 101-624 provided that:

''(a) In General. - Within 60 days of the date of enactment of

this Act (Nov. 28, 1990), the Secretary of Agriculture shall

commence to accept alternative pricing formula recommendations, as

they may relate to the Minnesota-Wisconsin price series used to

determine the minimum prices paid under milk marketing orders, in

order to amend such milk marketing orders authorized under section

8c of the Agricultural Adjustment Act (7 U.S.C. 608c), reenacted

with amendments by the Agricultural Marketing Agreement Act of

1937. Among the alternative pricing formulas to be considered by

the Secretary shall be a price series based on prices paid by milk

processors for Grade A milk and manufacturing grade milk that is

used in the manufacture of dairy products.

''(b) Availability of Data. - The Secretary shall compile and

make available to the public the historical and current data used

to compare the alternative pricing formulas submitted and

recommended as provided in subsection (a) with the existing

Minnesota-Wisconsin price series.

''(c) Implementation in Federal Marketing Orders. -

''(1) Announcement of hearing. - Not later than October 1,

1991, the Secretary shall -

''(A) announce a national hearing to consider the proposed

replacement of the Minnesota-Wisconsin price series in Federal

milk marketing orders; and

''(B) invite industry and consumer proposals on the specific

provisions to be considered for each order.

''(2) Report to congress. - On issuance of the final decision

on the hearing proposals, the Secretary shall report the decision

to the Committee on Agriculture of the House of Representatives

and the Committee on Agriculture, Nutrition, and Forestry of the

Senate.

''(3) Opportunity for public comment. - The opportunity for

public comment on the recommended decision shall not be less than

30 legislative days. For purposes of this paragraph, the term

'legislative day' means a day on which either House of Congress

is in session.''

HEARINGS ON FEDERAL MILK MARKETING ORDERS

Section 104 of Pub. L. 101-624 provided that: ''The Secretary of

Agriculture shall -

''(1) conclude the national hearings announced by the Secretary

on March 29, 1990, regarding possible changes in the pricing

provisions of Federal milk marketing orders; and

''(2) to the maximum extent practicable consistent with

applicable laws, effect any resulting system-wide changes in the

Federal orders setting minimum prices that milk processors must

pay for Grade A milk received from producers, by January 1,

1992.''

STATUS OF PRODUCER HANDLERS

Section 115 of title I of Pub. L. 101-624 provided that: ''The

legal status of producer handlers of milk under the Agricultural

Adjustment Act (7 U.S.C. 601 et seq.), reenacted with amendments by

the Agricultural Marketing Agreement Act of 1937, shall be the same

after the amendments made by this title (enacting section 1446e of

this title and amending sections 450l, 608c, and 1446a of this

title, section 713a-14 of Title 15, Commerce and Trade, and

provisions set out as notes under sections 608c and 1731 of this

title) take effect as it was before the effective date of the

amendments (see Effective Date of 1990 Amendment note set out under

section 1421 of this title).''

MULTIPLE COMPONENT PRICING STUDY

Section 116 of Pub. L. 101-624 provided that:

''(a) In General. - Not later than 60 days after the date of

enactment of this Act (Nov. 28, 1990), the Secretary of Agriculture

shall initiate a study to determine whether, and to what extent,

milkfat is being produced in the United States in excess of

commercial market needs as a result of any provision of law,

regulation, or order that affects the manner in which producers

receive payment for milk on the basis of the milk components

contained in their marketings of milk under any Federal or State

milk pricing program.

''(b) Study. - In conducting the study, the Secretary shall

assess the potential impact on achieving balance in the production,

marketing, and domestic commercial use of milkfat through adoption

of multiple component pricing programs under Federal and State milk

pricing programs.

''(c) Report. - Not later that 180 days after the date of

enactment of this Act (Nov. 28, 1990), the Secretary shall -

''(1) report the results of the study conducted under

subsection (a), together with associated recommendations, to the

Committee on Agriculture of the House of Representatives and the

Committee on Agriculture, Nutrition, and Forestry of the Senate;

and

''(2) publish the results of the study.

''(d) Implementation in Federal Marketing Orders. - On completion

and publication of the study described in this section, the

Secretary shall -

''(1) announce a national hearing to consider the adoption of

multiple component pricing provisions in individual Federal milk

marketing orders issued under section 8c of the Agricultural

Adjustment Act (7 U.S.C. 608c), reenacted with amendments by the

Agricultural Marketing Agreement Act of 1937; and

''(2) invite industry and consumer proposals on the specific

provisions to be considered for each order.''

MARKETWIDE SERVICE PAYMENTS

Pub. L. 99-260, Sec. 9, Mar. 20, 1986, 100 Stat. 51, provided

that:

''(a) Hearing. - Not later than 90 days after receipt of a

proposal to amend a milk marketing order in accordance with section

8c(5)(J) of the Agricultural Adjustment Act, reenacted with

amendments by the Agricultural Marketing Agreement Act of 1937 (7

U.S.C. 608c(5)(J)) (as added by section 133 of the Food Security

Act of 1985), the Secretary of Agriculture shall conduct a hearing

on the proposal.

''(b) Implementation. - Not later than 120 days after a hearing

is conducted under subsection (a), the Secretary shall implement,

in accordance with the Agricultural Adjustment Act (this chapter),

a marketwide service payment program under section 8c(5)(J) of such

Act that meets the requirements of such Act.''

TERMINATION OF MARKETING ORDERS

Section 1662(b) of Pub. L. 99-198 provided that: ''The Secretary

of Agriculture may not terminate any marketing order under section

8c(16) of the of the (so in original) Agricultural Adjustment Act

(7 U.S.C. 608c(16)), reenacted with amendments by the Agricultural

Marketing Agreement Act of 1937, if such termination becomes

effective before January 16, 1986.''

REPORT TO HOUSES OF CONGRESS REGARDING IMPLEMENTATION OF PROVISIONS

RELATING TO HANDLING OF COMMODITIES

Section 401(b) of Pub. L. 95-279 provided that: ''Within a period

of sixty days following the second anniversary of the

implementation of this section, the Secretary of Agriculture shall

submit to the Committee on Agriculture of the House of

Representatives and to the Committee on Agriculture, Nutrition, and

Forestry of the Senate a report that shall describe in detail how

this section has been implemented including, but not limited to,

information as to the issuance or amendment of any affected order,

the annual amount of assessments collected, in the aggregate and by

size and class of handler, the manner in which such assessments

were collected, the amount of direct expenditures credited against

the pro rata expense assessment obligations of each handler, and

the purpose to which such assessments and such direct expenditures

of each such handler were devoted.''

RETENTION OF STATUS OF PRODUCER HANDLERS OF MILK AT PRE-1985

AMENDMENT STATUS

Section 134 of Pub. L. 99-198 provided that: ''The legal status

of producer handlers of milk under the Agricultural Adjustment Act

(7 U.S.C. 601 et seq.), reenacted with amendments by the

Agricultural Marketing Agreement Act of 1937, shall be the same

after the amendments made by this title (probably means this

subtitle, subtitle C (Sec. 131-134) of title I of Pub. L. 99-198,

amending subsec. (5) of this section and provisions set out as a

note above) take effect as it was before the effective date of such

amendments.''

RETENTION OF STATUS OF PRODUCER HANDLERS OF MILK AT PRE-1981

AMENDMENT STATUS

Section 102 of Pub. L. 97-98 provided that: ''The legal status of

producer handlers of milk under the provisions of the Agricultural

Adjustment Act, as reenacted and amended by the Agricultural

Marketing Agreement Act of 1937 (this chapter) shall be the same

subsequent to the adoption of the amendment made by the Agriculture

and Food Act of 1981 (see Tables) as it was prior thereto.''

RETENTION OF STATUS OF PRODUCER HANDLERS OF MILK AT PRE-1977

AMENDMENT STATUS

Pub. L. 95-113, title II, Sec. 202, Sept. 29, 1977, 91 Stat. 919,

provided that: ''The legal status of producer handlers of milk

under the provisions of the Agricultural Adjustment Act (see Short

Title note set out under section 601 of this title), as reenacted

and amended by the Agricultural Marketing Agreement Act of 1937, as

amended (act June 3, 1937, ch. 296, 50 Stat. 246, set out as a note

under section 601 of this title) shall be the same subsequent to

the adoption of the amendment made by the Food and Agriculture Act

of 1977 (see Short Title of 1977 Amendment note set out under

section 1281 of this title) as it was prior thereto.''

RETENTION OF STATUS OF PRODUCER HANDLERS OF MILK AT PRE-1973

AMENDMENT STATUS

Section 206 of Pub. L. 91-524, as added by Pub. L. 93-86, Sec.

1(6), Aug. 10, 1973, 87 Stat. 224; amended Pub. L. 93-125, Sec.

1(a)(iii), Oct. 18, 1973, 87 Stat. 450, provided that: ''The legal

status of producer handlers of milk under the provisions of the

Agricultural Adjustment Act, as reenacted and amended by the

Agricultural Marketing Agreement Act of 1937, as amended, shall be

the same subsequent to the adoption of the amendments made by the

Agriculture and Consumer Protection Act of 1973 (amending this

section and sections 450l, 1446, and 1446a of this title) as it was

prior thereto.''

RETENTION OF STATUS OF PRODUCER HANDLERS OF MILK AT PRE-1970

AMENDMENT STATUS

Section 201(b) of Pub. L. 91-524 provided that: ''The legal

status of producer handlers of milk under the provisions of the

Agricultural Adjustment Act, as reenacted and amended by the

Agricultural Marketing Agreement Act of 1937, as amended, shall be

the same subsequent to the adoption of the amendments made by this

Act (amending subsec. (5)(B) of this section) as it was prior

thereto.''

RATIFICATION, LEGALIZATION, CONFIRMATION, AND EXTENSION OF CLASS I

BASE PLAN PROVISIONS IN MARKETING ORDERS ISSUED PRIOR TO NOV. 30,

1970

Section 201(c) of Pub. L. 91-524 provided that: ''Nothing in

subsection (a) of this section 201 (amending subsec. (5)(B) of this

section) shall be construed as invalidating any class I base plan

provisions of any marketing order previously issued by the

Secretary of Agriculture pursuant to authority contained in the

Food and Agriculture Act of 1965 (79 Stat. 1187), but such

provisions are expressly ratified, legalized, and confirmed and may

be extended through and including December 31, 1971.''

REAFFIRMATION OF SUBSEC. (5)(G) OF THIS SECTION

Section 201(d) of Pub. L. 91-524 provided that: ''It is not

intended that existing law be in any way altered, rescinded, or

amended with respect to section 8c(5)(G) of the Agricultural

Adjustment Act, as reenacted and amended by the Agricultural

Marketing Agreement Act of 1937, as amended (subsec. (5)(G) of this

section), and such section 8c(5)(G) is fully reaffirmed.''

VALIDITY OF SECTION AFFIRMED

Act June 3, 1937, affirmed and validated, and reenacted without

change the provisions of this section, except for the amendments to

subsections (5)(B)(d) and (6)(B) by section 2 of the act, and the

addition of subsections (18) and (19) by said section 2. See note

set out under section 601 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 602, 608d, 608e-1, 610,

627, 672, 673, 853, 855, 1392, 1637a, 6409, 7253, 7256, 7401, 7982,

7983 of this title.

-CITE-

7 USC Sec. 608c-1 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 26 - AGRICULTURAL ADJUSTMENT

SUBCHAPTER III - COMMODITY BENEFITS

-HEAD-

Sec. 608c-1. Repealed. June 29, 1945, ch. 196, 59 Stat. 263

-MISC1-

Section, acts Apr. 13, 1938, ch. 143, Sec. 3, 52 Stat. 215; May

26, 1939, ch. 150, 53 Stat. 782; Feb. 10, 1942, ch. 52, Sec. 1, 56

Stat. 85, related to orders applicable to hops. Section was not a

part of the Agricultural Adjustment Act of 1933.

-CITE-

7 USC Sec. 608d 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 26 - AGRICULTURAL ADJUSTMENT

SUBCHAPTER III - COMMODITY BENEFITS

-HEAD-

Sec. 608d. Books and records

-STATUTE-

(1) All parties to any marketing agreement, and all handlers

subject to an order, shall severally, from time to time, upon the

request of the Secretary, furnish him with such information as he

finds to be necessary to enable him to ascertain and determine the

extent to which such agreement or order has been carried out or has

effectuated the declared policy of this chapter and with such

information as he finds to be necessary to determine whether or not

there has been any abuse of the privilege of exemptions from the

antitrust laws. Such information shall be furnished in accordance

with forms of reports to be prescribed by the Secretary. For the

purpose of ascertaining the correctness of any report made to the

Secretary pursuant to this subsection, or for the purpose of

obtaining the information required in any such report, where it has

been requested and has not been furnished, the Secretary is

authorized to examine such books, papers, records, copies of

income-tax reports, accounts, correspondence, contracts, documents,

or memoranda, as he deems relevant and which are within the control

(1) of any such party to such marketing agreement, or any such

handler, from whom such report was requested or (2) of any person

having, either directly or indirectly, actual or legal control of

or over such party or such handler or (3) of any subsidiary of any

such party, handler, or person.

(2) Notwithstanding the provisions of section 607 of this title,

all information furnished to or acquired by the Secretary of

Agriculture pursuant to this section, as well as information for

marketing order programs that is categorized as trade secrets and

commercial or financial information exempt under section 552(b)(4)

of title 5 from disclosure under section 552 of such title, shall

be kept confidential by all officers and employees of the

Department of Agriculture and only such information so furnished or

acquired as the Secretary deems relevant shall be disclosed by

them, and then only in a suit or administrative hearing brought at

the direction, or upon the request, of the Secretary of

Agriculture, or to which he or any officer of the United States is

a party, and involving the marketing agreement or order with

reference to which the information so to be disclosed was furnished

or acquired. Notwithstanding the preceding sentence, any such

information relating to a marketing agreement or order applicable

to milk may be released upon the authorization of any regulated

milk handler to whom such information pertains. The Secretary

shall notify the Committee on Agriculture, Nutrition, and Forestry

of the Senate and the Committee on Agriculture of the House of

Representatives not later than 10 legislative days before the

contemplated release under law, of the names and addresses of

producers participating in such marketing agreements and orders,

and shall include in such notice a statement of reasons relied upon

by the Secretary in making the determination to release such names

and addresses. Nothing in this section shall be deemed to prohibit

(A) the issuance of general statements based upon the reports of a

number of parties to a marketing agreement or of handlers subject

to an order, which statements do not identify the information

furnished by any person, or (B) the publication by direction of the

Secretary, of the name of any person violating any marketing

agreement or any order, together with a statement of the particular

provisions of the marketing agreement or order violated by such

person. Any such officer or employee violating the provisions of

this section shall upon conviction be subject to a fine of not more

than $1,000 or to imprisonment for not more than one year, or to

both, and shall be removed from office.

(3) Collection of cranberry inventory data. -

(A) In general. - If an order is in effect with respect to

cranberries, the Secretary of Agriculture may require persons

engaged in the handling or importation of cranberries or

cranberry products (including producer-handlers, second handlers,

processors, brokers, and importers) to provide such information

as the Secretary considers necessary to effectuate the declared

policy of this chapter, including information on acquisitions,

inventories, and dispositions of cranberries and cranberry

products.

(B) Delegation to committee. - The Secretary may delegate the

authority to carry out subparagraph (A) to any committee that is

responsible for administering an order covering cranberries.

(C) Confidentiality. - Paragraph (2) shall apply to information

provided under this paragraph.

(D) Violations. - Any person who violates this paragraph shall

be subject to the penalties provided under section 608c(14) of

this title.

-SOURCE-

(May 12, 1933, ch. 25, title I, Sec. 8d, as added Aug. 24, 1935,

ch. 641, Sec. 6, 49 Stat. 761; amended June 3, 1937, ch. 296, Sec.

1, 50 Stat. 246; Pub. L. 99-198, title XVI, Sec. 1663, Dec. 23,

1985, 99 Stat. 1631; Pub. L. 106-78, title VII, Sec. 757(b), Oct.

22, 1999, 113 Stat. 1171.)

-REFTEXT-

REFERENCES IN TEXT

The antitrust laws, referred to in subsec. (1), are classified

generally to chapter 1 (Sec. 1 et seq.) of Title 15, Commerce and

Trade.

-COD-

CODIFICATION

Act Aug. 24, 1935, struck out provisions of section 8(4) of act

May 12, 1933, formerly appearing in section 608(4) of this title

and added a new section 8d containing provisions appearing in text.

-MISC3-

AMENDMENTS

1999 - Subsec. (3). Pub. L. 106-78 added subsec. (3).

1985 - Subsec. (2). Pub. L. 99-198, Sec. 1663(1), extended

confidentiality requirement to include information for marketing

order programs that is categorized as trade secrets and commercial

or financial information that is exempt from disclosure under

section 552 of title 5.

Pub. L. 99-198, Sec. 1663(2), inserted provisions directing that

confidential information relating to a marketing agreement or order

applicable to milk may be released upon the authorization of any

regulated milk handler to whom such information pertains and that

the Secretary notify the Committee on Agriculture, Nutrition, and

Forestry of the Senate and the Committee on Agriculture of the

House of Representatives not later than 10 legislative days before

the contemplated release under law, of the names and addresses of

producers participating in such marketing agreements and orders,

and include in such notice a statement of reasons relied upon by

the Secretary in making the determination to release such names and

addresses.

RELEASE OF INFORMATION

Pub. L. 103-111, title VII, Sec. 715, Oct. 21, 1993, 107 Stat.

1079, provided that: ''Hereafter, none of the funds available to

the Department of Agriculture may be expended to release

information acquired from any handler under the Agricultural

Marketing Agreement Act of 1937, as amended (see section 674 of

this title): Provided, That this provision shall not prohibit the

release of information to other Federal agencies for enforcement

purposes: Provided further, That this provision shall not prohibit

the release of aggregate statistical data used in formulating

regulations pursuant to the Agricultural Marketing Agreement Act of

1937, as amended: Provided further, That this provision shall not

prohibit the release of information submitted by milk handlers.''

Similar provisions were contained in the following prior

appropriation acts:

Pub. L. 102-341, title VII, Sec. 721, Aug. 14, 1992, 106 Stat.

908.

Pub. L. 102-142, title VII, Sec. 728, Oct. 28, 1991, 105 Stat.

914.

Pub. L. 101-506, title VI, Sec. 630, Nov. 5, 1990, 104 Stat.

1349.

Pub. L. 101-161, title VI, Sec. 630, Nov. 21, 1989, 103 Stat.

985.

Pub. L. 100-460, title VI, Sec. 630, Oct. 1, 1988, 102 Stat.

2262.

VALIDITY OF SECTION AFFIRMED

Act June 3, 1937, affirmed and validated, and reenacted without

change the provisions of this section. See note set out under

section 601 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 608c, 610, 627, 672, 673,

855, 1392 of this title.

-CITE-

7 USC Sec. 608e 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 26 - AGRICULTURAL ADJUSTMENT

SUBCHAPTER III - COMMODITY BENEFITS

-HEAD-

Sec. 608e. Repealed. July 3, 1948, ch. 827, title III, Sec. 302(d),

62 Stat. 1258

-MISC1-

Section, act May 12, 1933, ch. 25, title I, Sec. 8e, as added

Aug. 24, 1935, ch. 641, Sec. 6, 49 Stat. 762; amended June 3, 1937,

ch. 296, Sec. 1, 50 Stat. 246, related to determination of base

period.

EFFECTIVE DATE OF REPEAL

Repeal effective Jan. 1, 1950, see section 303 of act July 3,

1948 set out as an Effective Date of 1948 Amendment note under

section 1301 of this title.

-CITE-

7 USC Sec. 608e-1 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 26 - AGRICULTURAL ADJUSTMENT

SUBCHAPTER III - COMMODITY BENEFITS

-HEAD-

Sec. 608e-1. Import prohibitions on specified foreign produce

-STATUTE-

(a) Import prohibitions on tomatoes, avocados, limes, etc.

Subject to the provisions of subsections (c) and (d) of this

section and notwithstanding any other provision of law, whenever a

marketing order issued by the Secretary of Agriculture pursuant to

section 608c of this title contains any terms or conditions

regulating the grade, size, quality, or maturity of tomatoes,

raisins, olives (other than Spanish-style green olives), prunes,

avocados, mangoes, limes, grapefruit, green peppers, Irish

potatoes, cucumbers, oranges, onions, walnuts, dates, filberts,

table grapes, eggplants, kiwifruit, nectarines, plums, pistachios,

apples, or caneberries (including raspberries, blackberries, and

loganberries) produced in the United States the importation into

the United States of any such commodity, other than dates for

processing, during the period of time such order is in effect shall

be prohibited unless it complies with the grade, size, quality, and

maturity provisions of such order or comparable restrictions

promulgated hereunder: Provided, That this prohibition shall not

apply to such commodities when shipped into continental United

States from the Commonwealth of Puerto Rico or any Territory or

possession of the United States where this chapter has force and

effect: Provided further, That whenever two or more such marketing

orders regulating the same agricultural commodity produced in

different areas of the United States are concurrently in effect,

the importation into the United States of any such commodity, other

than dates for processing, shall be prohibited unless it complies

with the grade, size, quality, and maturity provisions of the order

which, as determined by the Secretary of Agriculture, regulates the

commodity produced in the area with which the imported commodity is

in most direct competition. Such prohibition shall not become

effective until after the giving of such notice as the Secretary of

Agriculture determines reasonable, which shall not be less than

three days. In determining the amount of notice that is reasonable

in the case of tomatoes the Secretary of Agriculture shall give due

consideration to the time required for their transportation and

entry into the United States after picking. Whenever the Secretary

of Agriculture finds that the application of the restrictions under

a marketing order to an imported commodity is not practicable

because of variations in characteristics between the domestic and

imported commodity he shall establish with respect to the imported

commodity, other than dates for processing, such grade, size,

quality, and maturity restrictions by varieties, types, or other

classifications as he finds will be equivalent or comparable to

those imposed upon the domestic commodity under such order. The

Secretary of Agriculture may promulgate such rules and regulations

as he deems necessary, to carry out the provisions of this

section. Any person who violates any provision if (FOOTNOTE 1)

this section or of any rule, regulation, or order promulgated

hereunder shall be subject to a forfeiture in the amount prescribed

in section 608a(5) of this title or, upon conviction, a penalty in

the amount prescribed in section 608c(14) of this title, or to both

such forfeiture and penalty.

(FOOTNOTE 1) So in original. Probably should be ''of''.

(b) Extension of time for marketing order; factors; review

(1) The Secretary may provide for a period of time (not to exceed

35 days) in addition to the period of time covered by a marketing

order during which the marketing order requirements would be in

effect for a particular commodity during any year if the Secretary

determines that such additional period of time is necessary -

(A) to effectuate the purposes of this chapter; and

(B) to prevent the circumvention of the grade, size, quality,

or maturity standards of a seasonal marketing order applicable to

a commodity produced in the United States by imports of such

commodity.

(2) In making the determination required by paragraph (1), the

Secretary, through notice and comment procedures, shall consider -

(A) to what extent, during the previous year, imports of a

commodity that did not meet the requirements of a marketing order

applicable to such commodity were marketed in the United States

during the period that such marketing order requirements were in

effect for available domestic commodities (or would have been

marketed during such time if not for any additional period

established by the Secretary);

(B) if the importation into the United States of such commodity

did, or was likely to, circumvent the grade, size, quality or

maturity standards of a seasonal marketing order applicable to

such commodity produced in the United States; and

(C) the availability and price of commodities of the variety

covered by the marketing order during any additional period the

marketing order requirements are to be in effect.

(3) An additional period established by the Secretary in

accordance with this subsection shall be -

(A) announced not later than 30 days before the date such

additional period is to be in effect; and

(B) reviewed by the Secretary on request, through notice and

comment procedures, at least every 3 years in order to determine

if the additional period is still needed to prevent circumvention

of the seasonal marketing order by imported commodities.

(4) For the purposes of carrying out this subsection, the

Secretary is authorized to make such reasonable inspections as may

be necessary.

(c) Notification of United States Trade Representative of import

restrictions; advisement of Secretary of Agriculture

Prior to any import prohibition or regulation under this section

being made effective with respect to any commodity -

(1) the Secretary of Agriculture shall notify the United States

Trade Representative of such import prohibition or regulation;

and

(2) the United States Trade Representative shall advise the

Secretary of Agriculture, within 60 days of the notification

under paragraph (1), to ensure that the application of the grade,

size, quality, and maturity provisions of the relevant marketing

order, or comparable restrictions, to imports is not inconsistent

with United States international obligations under any trade

agreement, including the General Agreement on Tariffs and Trade.

(d) Proposed prohibition or regulation; authority of Secretary of

Agriculture to proceed

The Secretary may proceed with the proposed prohibition or

regulation if the Secretary receives the advice and concurrence of

the United States Trade Representative within 60 days of the

notification under subsection (c)(1) of this section.

-SOURCE-

(May 12, 1933, ch. 25, title I, Sec. 8e, as added Aug. 28, 1954,

ch. 1041, title IV, Sec. 401(e), 68 Stat. 907; amended Aug. 31,

1954, ch. 1172, Sec. 3(a), 68 Stat. 1047; Pub. L. 87-128, title I,

Sec. 141(5), Aug. 8, 1961, 75 Stat. 305; Pub. L. 91-670, title IV,

Sec. 401, Jan. 11, 1971, 84 Stat. 2047; Pub. L. 95-113, title X,

Sec. 1006, Sept. 29, 1977, 91 Stat. 951; Pub. L. 97-312, Sec. 2,

Oct. 14, 1982, 96 Stat. 1461; Pub. L. 100-418, title IV, Sec. 4603,

Aug. 23, 1988, 102 Stat. 1407; Pub. L. 101-624, title XIII, Sec.

1307, 1308, Nov. 28, 1990, 104 Stat. 3561; Pub. L. 107-171, title

X, Sec. 10601(b), May 13, 2002, 116 Stat. 511.)

-MISC1-

AMENDMENTS

2002 - Subsec. (a). Pub. L. 107-171 substituted ''apples, or

caneberries (including raspberries, blackberries, and

loganberries)'' for ''or apples'' in first sentence.

1990 - Subsec. (a). Pub. L. 101-624, Sec. 1307, 1308(1),

substituted ''Subject to the provisions of subsections (c) and (d)

of this section and notwithstanding any other provision of law,''

for ''Notwithstanding any other provision of law,'' and

''eggplants, kiwifruit, nectarines, plums, pistachios, or apples''

for ''or eggplants''.

Subsecs. (c), (d). Pub. L. 101-624, Sec. 1308(2), added subsecs.

(c) and (d).

1988 - Pub. L. 100-418 designated existing provisions as subsec.

(a) and added subsec. (b).

1982 - Pub. L. 97-312 extended import prohibition to table

grapes.

1977 - Pub. L. 95-113 extended import prohibition to filberts.

1971 - Pub. L. 91-670 extended import prohibition to raisins,

olives (other than Spanish-style green olives), and prunes.

1961 - Pub. L. 87-128 extended importation prohibition to

oranges, onions, walnuts and dates, other than dates for

processing.

1954 - Act Aug. 31, 1954, made section applicable to mangoes.

EFFECTIVE DATE OF 1977 AMENDMENT

Amendment by Pub. L. 95-113 effective Oct. 1, 1977, see section

1901 of Pub. L. 95-113, set out as a note under section 1307 of

this title.

EFFECTIVE DATE OF 1954 AMENDMENT

Section 3(b) of act Aug. 31, 1954, provided that: ''The amendment

made by this section (amending this section) shall become effective

upon the enactment of this Act (Aug. 31, 1954) or upon the

enactment of the Agricultural Act of 1954 (Aug. 28, 1954),

whichever occurs later.''

-CITE-

7 USC Sec. 608f 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 26 - AGRICULTURAL ADJUSTMENT

SUBCHAPTER III - COMMODITY BENEFITS

-HEAD-

Sec. 608f. Repealed. Pub. L. 89-106, Sec. 9, Aug. 4, 1965, 79 Stat.

432

-MISC1-

Section, act May 12, 1933, ch. 25, title I, Sec. 8f, formerly

Sec. 8(5), 48 Stat. 34; renumbered Sec. 8f and amended Aug. 24,

1935, ch. 641, Sec. 7, 49 Stat. 762; Oct. 8, 1940, ch. 759, 54

Stat. 1019, prohibited, except in specified cases, the shipment of

grain from public grain warehouses to other warehouse without

cancellation of warehouse receipts to avoid conflict with other

laws regulating warehousemen.

-CITE-

7 USC Sec. 609 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 26 - AGRICULTURAL ADJUSTMENT

SUBCHAPTER III - COMMODITY BENEFITS

-HEAD-

Sec. 609. Processing tax; methods of computation; rate; what

constitutes processing; publicity as to tax to avoid

profiteering

-STATUTE-

(a) To obtain revenue for extraordinary expenses incurred by

reason of the national economic emergency, there shall be levied

processing taxes as hereinafter provided. When the Secretary of

Agriculture determines that any one or more payments authorized to

be made under section 608 of this title are to be made with respect

to any basic agricultural commodity, he shall proclaim such

determination, and a processing tax shall be in effect with respect

to such commodity from the beginning of the marketing year therefor

next following the date of such proclamation; except that (1) in

the case of sugar beets and sugarcane, the Secretary of Agriculture

shall, on or before the thirtieth day after May 9, 1934, proclaim

that rental or benefit payments with respect to said commodities

are to be made, and the processing tax shall be in effect on and

after the thirtieth day after May 9, 1934, and (2) in the case of

rice, the Secretary of Agriculture shall, before April 1, 1935,

proclaim that rental or benefit payments are to be made with

respect thereto, and the processing tax shall be in effect on and

after April 1, 1935. In the case of sugar beets and sugarcane, the

calendar year shall be considered to be the marketing year and for

the year 1934 the marketing year shall begin January 1, 1934. In

the case of rice, the period from August 1 to July 31, both

inclusive, shall be considered to be the marketing year. The

processing tax shall be levied, assessed, and collected upon the

first domestic processing of the commodity, whether of domestic

production or imported, and shall be paid by the processor. The

rate of tax shall conform to the requirements of subsection (b) of

this section. Such rate shall be determined by the Secretary of

Agriculture as of the date the tax first takes effect, and the rate

so determined shall, at such intervals as the Secretary finds

necessary to effectuate the declared policy, be adjusted by him to

conform to such requirements. The processing tax shall terminate

at the end of the marketing year current at the time the Secretary

proclaims that all payments authorized under section 608 of this

title which are in effect are to be discontinued with respect to

such commodity. The marketing year for each commodity shall be

ascertained and prescribed by regulations of the Secretary of

Agriculture: Provided, That upon any article upon which a

manufacturers' sales tax is levied under the authority of the

Revenue Act of 1932, act June 6, 1932, ch. 209, 47 Stat. 169-289,

and which manufacturers' sales tax is computed on the basis of

weight, such manufacturers' sales tax shall be computed on the

basis of the weight of said finished article less the weight of the

processed cotton contained therein on which a processing tax has

been paid.

(b)(1) The processing tax shall be at such rate as equals the

difference between the current average farm price for the commodity

and the fair exchange value of the commodity, plus such percentage

of such difference, not to exceed 20 per centum, as the Secretary

of Agriculture may determine will result in the collection, in any

marketing year with respect to which such rate of tax may be in

effect pursuant to the provisions of this chapter, of an amount of

tax equal to (A) the amount of credits or refunds which he

estimates will be allowed or made during such period pursuant to

section 615(c) of this title with respect to the commodity and (B)

the amount of tax which he estimates would have been collected

during such period upon all processings of such commodity, which

are exempt from tax by reason of the fact that such processings are

done by or for a State, or a political subdivision or an

institution thereof, had such processings been subject to tax. If,

prior to the time the tax takes effect, or at any time thereafter,

the Secretary has reason to believe that the tax at such rate, or

at the then existing rate, on the processing of the commodity

generally or for any designated use or uses, or on the processing

of the commodity in the production of any designated product or

products thereof for any designated use or uses, will cause or is

causing such reduction in the quantity of the commodity or products

thereof domestically consumed as to result in the accumulation of

surplus stocks of the commodity or products thereof or in the

depression of the farm price of the commodity, then the Secretary

shall cause an appropriate investigation to be made, and afford due

notice and opportunity for hearing to interested parties. If

thereupon the Secretary determines and proclaims that any such

result will occur or is occurring, then the processing tax on the

processing of the commodity generally or for any designated use or

uses, or on the processing of the commodity in the production of

any designated product or products thereof for any designated use

or uses, shall be at such lower rate or rates as he determines and

proclaims will prevent such accumulation of surplus stocks and

depression of the farm price of the commodity, and the tax shall

remain during its effective period at such lower rate until the

Secretary, after due notice and opportunity for hearing to

interested parties, determines and proclaims that an increase in

the rate of such tax will not cause such accumulation of surplus

stocks or depression of the farm price of the commodity.

Thereafter the processing tax shall be at the highest rate which

the Secretary determines will not cause such accumulation of

surplus stocks or depression of the farm price of the commodity,

but it shall not be higher than the rate provided in the first

sentence of this paragraph.

(2) In the case of wheat, cotton, field corn, hogs, peanuts,

tobacco, paper, and jute, and (except as provided in paragraph (8)

of this subsection) in the case of sugarcane and sugar beets, the

tax on the first domestic processing of the commodity generally or

for any particular use, or in the production of any designated

product for any designated use, shall be levied, assessed,

collected, and paid at the rate prescribed by the regulations of

the Secretary of Agriculture in effect on August 24, 1935, during

the period from such date to December 31, 1937, both dates

inclusive.

(3) For the period from April 1, 1935, to July 31, 1936, both

inclusive, the processing tax with respect to rice shall be levied,

assessed, collected, and paid at the rate of 1 cent per pound of

rough rice.

(4) For the period from September 1, 1935, to December 31, 1937,

both inclusive, the processing tax with respect to rye shall be

levied, assessed, collected, and paid at the rate of 30 cents per

bushel of fifty-six pounds. In the case of rye, the first

marketing year shall be considered to be the period commencing

September 1, 1935, and ending June 30, 1936. Subsequent marketing

years shall commence on July 1 and end on June 30 of the succeeding

year. The provisions of section 616 of this title shall not apply

in the case of rye.

(5) If at any time prior to December 31, 1937, a tax with respect

to barley becomes effective pursuant to proclamation as provided in

subsection (a) of this section, such tax shall be levied, assessed,

collected, and paid during the period from the date upon which such

tax becomes effective to December 31, 1937, both inclusive, at the

rate of 25 cents per bushel of forty-eight pounds. The provisions

of section 616 of this title shall not apply in the case of barley.

(6)(A) Any rate of tax which is prescribed in paragraphs (2) to

(4), or (5) of this subsection or which is established pursuant to

this paragraph on the processing of any commodity generally or for

any designated use or uses, or on the processing of the commodity

in the production of any designated product or products thereof for

any designated use or uses, shall be decreased (including a

decrease to zero) in accordance with the formulae, standards, and

requirements of paragraph (1) of this subsection, in order to

prevent such reduction in the quantity of such commodity or the

products thereof domestically consumed as will result in the

accumulation of surplus stocks of such commodity or the products

thereof or in the depression of the farm price of the commodity,

and shall thereafter be increased in accordance with the provisions

of paragraph (1) of this subsection but subject to the provisions

of subdivision (B) of this paragraph.

(B) If the average farm price of any commodity, the rate of tax

on the processing of which is prescribed in paragraphs (2) to (4),

or (5) of this subsection or is established pursuant to this

paragraph, during any period of twelve successive months ending

after July 1, 1935, consisting of the first ten months of any

marketing year and the last two months of the preceding marketing

year -

(i) is equal to, or exceeds by 10 per centum or less, the fair

exchange value thereof, or, in the case of tobacco, is less than

the fair exchange value by not more than 10 per centum, the rate

of such tax shall (subject to the provisions of subdivision (A)

of this paragraph) be adjusted, at the beginning of the next

succeeding marketing year, to such rate as equals 20 per centum

of the fair exchange value thereof.

(ii) exceeds by more than 10 per centum, but not more than 20

per centum, the fair exchange value thereof, the rate of such tax

shall (subject to the provisions of subdivision (A) of this

paragraph) be adjusted, at the beginning of the next succeeding

marketing year, to such rate as equals 15 per centum of the fair

exchange value thereof.

(iii) exceeds by more than 20 per centum the fair exchange

value thereof, the rate of such tax shall (subject to the

provisions of subdivision (A) of this paragraph) be adjusted, at

the beginning of the next succeeding marketing year, to such rate

as equals 10 per centum of the fair exchange value thereof.

(C) Any rate of tax which has been adjusted pursuant to this

paragraph shall remain at such adjusted rate unless further

adjusted or terminated pursuant to this paragraph, until December

31, 1937, or until July 31, 1936, in the case of rice.

(D) In accordance with the formulae, standards, and requirements

prescribed in this chapter, any rate of tax prescribed in

paragraphs (2) to (4) or (5) of this subsection or which is

established pursuant to this paragraph shall be increased.

(E) Any tax, the rate of which is prescribed in paragraphs (2) to

(4), or (5) of this subsection or which is established pursuant to

this paragraph, shall terminate pursuant to proclamation as

provided in subsection (a) of this section or pursuant to section

613 of this title. Any such tax with respect to any basic

commodity which terminates pursuant to proclamation as provided in

subsection (a) of this section shall again become effective at the

rate prescribed in paragraphs (2) to (4), or (5) of this

subsection, subject however to the provisions of subdivisions (A)

and (B) of this paragraph, from the beginning of the marketing year

for such commodity next following the date of a new proclamation by

the Secretary as provided in subsection (a) of this section, if

such marketing year begins prior to December 31, 1937, or prior to

July 31, 1936, in the case of rice, and shall remain at such rate

until altered or terminated pursuant to this section or terminated

pursuant to section 613 of this title.

(F) After December 31, 1937 (in the case of the commodities

specified in paragraphs (2), (4), and (5) of this subsection), and

after July 31, 1936 (in the case of rice), rates of tax shall be

determined by the Secretary of Agriculture in accordance with the

formulae, standards, and requirements prescribed in this chapter

but not in this paragraph, and shall, subject to such formulae,

standards, and requirements, thereafter be effective.

(G) If the applicability to any person or circumstances of any

tax, the rate of which is fixed in pursuance of this paragraph, is

finally held invalid by reason of any provision of the

Constitution, or is finally held invalid by reason of the Secretary

of Agriculture's exercise or failure to exercise any power

conferred on him under this chapter, there shall be levied,

assessed, collected, and paid (in lieu of all rates of tax fixed in

pursuance of this paragraph with respect to all tax liabilities

incurred under this chapter on or after the effective date of each

of the rates of tax fixed in pursuance of this paragraph), rates of

tax fixed under paragraphs (2) to (4), or (5) of this subsection,

and such rates shall be in effect (unless the particular tax is

terminated pursuant to proclamation, as provided in subsection (a)

of this section or pursuant to section 613 of this title) until

altered by Act of Congress; except that, for any period prior to

the effective date of such holding of invalidity, the amount of tax

which represents the difference between the tax at the rate fixed

in pursuance of this paragraph (6) and the tax at the rate fixed

under paragraphs (2) to (4), and (5) shall not be levied, assessed,

collected or paid.

(7) In the case of rice, the weight to which the rate of tax

shall be applied shall be the weight of rough rice when delivered

to a processor, except that, where the producer processes his own

rice, the weight to which the rate of tax shall be applied shall be

the weight of rough rice when delivered to the place of processing.

(8) In the case of sugar beets or sugarcane the rate of tax shall

be applied to the direct-consumption sugar, resulting from the

first domestic processing, translated into terms of pounds of raw

value according to regulations to be issued by the Secretary of

Agriculture, and in the event that the Secretary increases or

decreases the rate of tax fixed by paragraph (2) of this

subsection, pursuant to the provisions of paragraph (6) of this

subsection, then the rate of tax to be so applied shall be the

higher of the two following quotients: The difference between the

current average farm price and the fair exchange value (A) of a ton

of sugar beets and (B) of a ton of sugarcane, divided in the case

of each commodity by the average extraction therefrom of sugar in

terms of pounds of raw value (which average extraction shall be

determined from available statistics of the Department of

Agriculture); the rate of tax fixed by paragraph (2) of this

subsection or adjusted pursuant to the provisions of paragraph (6)

of this subsection shall in no event exceed the amount of the

reduction by the President on a pound of sugar raw value of the

rate of duty in effect on January 1, 1934, under paragraph 501 of

section 1001 (FOOTNOTE 1) of title 19, as adjusted to the treaty of

commercial reciprocity concluded between the United States and the

Republic of Cuba on December 11, 1902, and/or the provisions of

sections 124 and 125 of title 19.

(FOOTNOTE 1) See References in Text note below.

(9) In computing the current average farm price in the case of

wheat, premiums paid producers for protein content shall not be

taken into account.

(c) For the purposes of this chapter, the fair exchange value of

a commodity shall be the price therefor that will give the

commodity the same purchasing power, with respect to articles

farmers buy, as such commodity had during the base period specified

in section 602 of this title; and, in the case of all commodities

where the base period is the prewar period, August 1909 to July

1914, will also reflect interest payments per acre on farm

indebtedness secured by real estate and tax payments per acre on

farm real estate, as contrasted with such interest payments and tax

payments during said base period; and the current average farm

price and the fair exchange value shall be ascertained by the

Secretary of Agriculture from available statistics of the

Department of Agriculture. The rate of tax upon the processing of

any commodity in effect on August 24, 1935, shall not be affected

by the adoption of this amendment and shall not be required to be

adjusted or altered, unless the Secretary of Agriculture finds that

it is necessary to adjust or alter any such rate pursuant to

subsection (a) of this section.

(d) As used in this chapter -

(1) In case of wheat, rye, barley and corn, the term

''processing'' means the milling or other processing (except

cleaning and drying) of wheat, rye, barley or corn for market,

including custom milling for toll as well as commercial milling,

but shall not include the grinding or cracking thereof not in the

form of flour for feed purposes only.

(2) In case of cotton, the term ''processing'' means the

spinning, manufacturing, or other processing (except ginning) of

cotton; and the term ''cotton'' shall not include cotton linters.

(3) In case of tobacco, the term ''processing'' means the

manufacturing or other processing (except drying or converting into

insecticides and fertilizers) of tobacco.

(4) Repealed. June 26, 1934, ch. 759, Sec. 2(a), 48 Stat. 1242.

(5) Repealed. Aug. 24, 1935, ch. 641, Sec. 14(b), 49 Stat. 767.

(6) In the case of sugar beets and sugarcane -

(A) The term ''first domestic processing'' means each domestic

processing, including each processing of successive domestic

processings, of sugar beets, sugarcane, or raw sugar, which

directly results in direct-consumption sugar.

(B) The term ''sugar'' means sugar in any form whatsoever,

derived from sugar beets or sugarcane, whether raw sugar or

direct-consumption sugar, including also edible molasses, sirups,

and any mixture containing sugar (except blackstrap molasses and

beet molasses).

(C) The term ''blackstrap molasses'' means the commercially

so-designated ''byproduct'' of the cane-sugar industry, not used

for human consumption or for the extraction of sugar.

(D) The term ''beet molasses'' means the commercially

so-designated ''byproduct'' of the beet-sugar industry, not used

for human consumption or for the extraction of sugar.

(E) The term ''raw sugar'' means any sugar, as defined above,

manufactured or marketed in, or brought into, the United States,

in any form whatsoever, for the purpose of being, or which shall

be, further refined (or improved in quality, or further prepared

for distribution or use).

(F) The term ''direct-consumption sugar'' means any sugar, as

defined above, manufactured or marketed in, or brought into, the

United States in any form whatsoever, for any purpose other than

to be further refined (or improved in quality, or further

prepared for distribution or use).

(G) The term ''raw value'' means a standard unit of sugar

testing ninety-six sugar degrees by the polariscope. All taxes

shall be imposed and all quotas shall be established in terms of

''raw value'' and for purposes of quota and tax measurements all

sugar shall be translated into terms of ''raw value'' according

to regulations to be issued by the Secretary, except that in the

case of direct-consumption sugar produced in continental United

States from sugar beets the raw value of such sugar shall be one

and seven one-hundredths times the weight thereof.

(7) In the case of rice -

(A) The term ''rough rice'' means rice in that condition which

is usual and customary when delivered by the producer to a

processor.

(B) The term ''processing'' means the cleaning shelling,

milling (including custom milling for toll as well as commercial

milling), grinding, rolling, or other processing (except grinding

or cracking by or for the producer thereof for feed for his own

livestock, cleaning by or directly for a producer for seed

purposes, and drying) of rough rice; and in the case of rough

rice with respect to which a tax-payment warrant has been

previously issued or applied for by application then pending, the

term ''processing'' means any one of the above mentioned

processings or any preparation or handling in connection with the

sale or other disposition thereof.

(C) The term ''cooperating producer'' means any person

(including any share-tenant or share-cropper) whom the Secretary

of Agriculture finds to be willing to participate in the 1935

production-adjustment program for rice.

(D) The term ''processor'', as used in subsection (b-1) of

section 615 of this title, means any person (including a

cooperative association of producers) engaged in the processing

of rice on a commercial basis (including custom milling for toll

as well as commercial milling).

(8) In the case of any other commodity, the term ''processing''

means any manufacturing or other processing involving a change in

the form of the commodity or its preparation for distribution or

use, as defined by regulations of the Secretary of Agriculture; and

in prescribing such regulations the Secretary shall give due weight

to the customs of the industry.

(e) When any processing tax, or increase or decrease therein,

takes effect in respect of a commodity the Secretary of

Agriculture, in order to prevent pyramiding of the processing tax

and profiteering in the sale of the products derived from the

commodity, shall make public such information as he deems necessary

regarding (1) the relationship between the processing tax and the

price paid to producers of the commodity, (2) the effect of the

processing tax upon prices to consumers of products of the

commodity, (3) the relationship, in previous periods, between

prices paid to the producers of the commodity and prices to

consumers of the products thereof, and (4) the situation in foreign

countries relating to prices paid to producers of the commodity and

prices to consumers of the products thereof.

(f) For the purposes of this chapter, processing shall be held to

include manufacturing.

(g) Nothing contained in this chapter shall be construed to

authorize any tax upon the processing of any commodity which

processing results in the production of newsprint.

-SOURCE-

(May 12, 1933, ch. 25, title I, Sec. 9, 48 Stat. 35; Apr. 7, 1934,

ch. 103, Sec. 3(a), 48 Stat. 528; May 9, 1934, ch. 263, Sec. 2, 3,

5, 6, 9, 48 Stat. 670, 671, 675, 676; June 26, 1934, ch. 759, Sec.

2, 48 Stat. 1242; Mar. 18, 1935, ch. 32, Sec. 1-6, 49 Stat. 45, 46;

Aug. 24, 1935, ch. 641, Sec. 11-15, 49 Stat. 762-767.)

-REFTEXT-

REFERENCES IN TEXT

Section 1001 of title 19, referred to in subsec. (b)(8), was

repealed by Pub. L. 87-456, title I, Sec. 101(a), May 24, 1962, 76

Stat. 72. See Publication of Harmonized Tariff Schedule note set

out under section 1202 of Title 19, Customs Duties.

The treaty of commercial reciprocity concluded between the United

States and Cuba on December 11, 1902, referred to in subsec.

(b)(8), was terminated Aug. 21, 1963, pursuant to notice given by

the United States on Aug. 21, 1962. See, Bevans, Treaties and Other

International Agreements of the United States of America,

1776-1949, vol. VI, page 1106.

Sections 124 and 125 of title 19, referred to in subsec. (b)(8),

have been omitted from the Code.

Phrase ''this amendment'' in subsec. (c) refers to amendments by

act Aug. 24, 1935.

-MISC2-

AMENDMENTS

1935 - Subsec. (a). Act Aug. 24, 1935, Sec. 11, struck out second

sentence preceding semicolon and inserted in lieu thereof ''When

the Secretary of Agriculture determines that any one or more

payments authorized to be made under section 608 of this title are

to be made with respect to any basic agricultural commodity, he

shall proclaim such determination, and a processing tax shall be in

effect with respect to such commodity from the beginning of the

marketing year therefor next following the date of such

proclamation.''

Act Mar. 18, 1935, Sec. 1, 2, struck out comma after ''except

that'' in second sentence and inserted in lieu thereof ''(i)'', and

inserted ''and (2) in the case of rice, the Secretary of

Agriculture shall, before April 1, 1935, proclaim that rental or

benefit payments are to be made with respect thereto, and the

processing tax shall be in effect on and after April 1, 1935''.

Subsec. (b). Act Aug. 24, 1935, Sec. 12, amended subsec. (b)

generally.

Act Mar. 18, 1935, Sec. 3, 4, among other changes inserted ''In

the case of rice, the weight to which the rate of tax shall be

applied shall be the weight of rough rice when delivered to a

processor, except that where the producer processes his own rice,

the weight to which the rate of tax shall be applied shall be the

weight of rough rice when delivered to the place of processing.''

Subsec. (c). Act Aug. 24, 1935, Sec. 13, among other changes

inserted ''The rate of tax upon the processing of any commodity, in

effect on August 24, 1935, shall not be affected by the adoption of

this amendment and shall not be required to be adjusted or altered,

unless the Secretary of Agriculture finds that it is necessary to

adjust or alter any such rate pursuant to subsection (a) of this

section.''

Subsec. (d). Act Aug. 24, 1935, Sec. 14, inserted '', rye,

barley'' after ''wheat'' wherever appearing and struck out par.

(5).

Act Mar. 18, 1935, Sec. 5, 6, struck out '', rice,'' in two

places in par. (1), added par. (7), and renumbered former par. (7)

as (8).

Subsec. (g). Act Aug. 24, 1935, Sec. 15, added subsec. (g).

1934 - Subsec. (a). Act May 9, 1934, Sec. 9, struck out the

period after ''proclamation'' and inserted in lieu thereof '';

except that, in the case of sugar beets and sugarcane, the

Secretary of Agriculture shall, on or before the thirtieth day

after May 9, 1934, proclaim that rental or benefit payments with

respect to said commodities are to be made, and the processing tax

shall be in effect on and after the thirtieth day after May 9,

1934. In the case of sugar beets and sugarcane, the calendar year

shall be considered to be the marketing year and for the year 1934

the marketing year shall begin January 1, 1934.''

Subsec. (b). Act May 9, 1934, Sec. 3, among other changes amended

first two sentences and inserted ''In the case of sugar beets or

sugarcane the rate of tax shall be applied to the

direct-consumption sugar, resulting from the first domestic

processing, translated into terms of pounds of raw value according

to regulations to be issued by the Secretary of Agriculture, and

the rate of tax to be so applied shall be the higher of the two

following quotients: The difference between the current average

farm price and the fair exchange value (1) of a ton of sugar beets

and (2) of a ton of sugarcane, divided in the case of each

commodity by the average extraction therefrom of sugar in terms of

pounds of raw value (which average extraction shall be determined

from available statistics of the Department of Agriculture); except

that such rate shall not exceed the amount of the reduction by the

President on a pound of sugar raw value of the rate of duty in

effect on January 1, 1934, under paragraph 501 of section 1001 of

Title 19, as adjusted to the treaty of commercial reciprocity

concluded between the United States and the Republic of Cuba on

December 11, 1902, and/or the provisions of sections 124 and 125 of

Title 19.''

Subsec. (d). Act June 26, 1934, Sec. 2(a), struck out par. (4).

Act June 26, 1934, Sec. 2(b), amended par. (7).

Act May 9, 1934, Sec. 2, 5, amended par. (6) generally and

renumbered former par. (6) as (7).

Act Apr. 7, 1934, added par. (5) and renumbered former par. (5)

as (6).

Subsec. (f). Act May 9, 1934, Sec. 6, added subsec. (f).

UNCONSTITUTIONALITY

This section may be obsolete in view of the Supreme Court's

holding that the processing and floor stock taxes provided for by

the Agricultural Adjustment Act of 1933 are unconstitutional. See

U.S. v. Butler, Mass. 1936, 56 S.Ct. 312, 297 U.S. 1, 80 L.Ed.

477, 102 A.L.R. 914.

SEPARABILITY

Validity of remainder of this chapter as not affected should any

of those provisions be declared unconstitutional, see section 614

of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 619a, 673 of this title;

title 12 section 1150a.

-CITE-

7 USC Sec. 610 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 26 - AGRICULTURAL ADJUSTMENT

SUBCHAPTER III - COMMODITY BENEFITS

-HEAD-

Sec. 610. Administration

-STATUTE-

(a) Appointment of officers and employees; impounding

appropriations

The Secretary of Agriculture may appoint such officers and

employees, subject to the provisions of chapter 51 and subchapter

III of chapter 53 of title 5, and such experts, as are necessary to

execute the functions vested in him by this chapter: Provided, That

the Secretary shall establish the Agricultural Adjustment

Administration in the Department of Agriculture for the

administration of the functions vested in him by this chapter: And

provided further, That the State Administrator appointed to

administer this chapter in each State shall be appointed by the

President, by and with the advice and consent of the Senate.

Section 8 of Title II of the Act entitled ''An Act to maintain the

credit of the United States Government,'' approved March 20, 1933,

to the extent that it provides for the impoundment of

appropriations on account of reductions in compensation, shall not

operate to require such impoundment under appropriations contained

in this chapter.

(b) State and local committees or associations of producers;

handlers' share of expenses of authority or agency

(1) The Secretary of Agriculture is authorized to establish, for

the more effective administration of the functions vested in him by

this chapter, State and local committees, or associations of

producers, and to permit cooperative associations of producers,

when in his judgment they are qualified to do so, to act as agents

of their members and patrons in connection with the distribution of

payments authorized to be made under section 608 of this title.

The Secretary, in the administration of this chapter, shall accord

such recognition and encouragement to producer-owned and

producer-controlled cooperative associations as will be in harmony

with the policy toward cooperative associations set forth in

existing Acts of Congress, and as will tend to promote efficient

methods of marketing and distribution.

(2)(i) Each order relating to milk and its products issued by the

Secretary under this chapter shall provide that each handler

subject thereto shall pay to any authority or agency established

under such order such handler's pro rata share (as approved by the

Secretary) of such expenses as the Secretary may find will

necessarily be incurred by such authority or agency, during any

period specified by him, for the maintenance and functioning of

such authority or agency, other than expenses incurred in

receiving, handling, holding, or disposing of any quantity of milk

or products thereof received, handled, held, or disposed of by such

authority or agency for the benefit or account of persons other

than handlers subject to such order. The pro rata share of the

expenses payable by a cooperative association of producers shall be

computed on the basis of the quantity of milk or product thereof

covered by such order which is distributed, processed, or shipped

by such cooperative association of producers.

(ii) Each order relating to any other commodity or product issued

by the Secretary under this chapter shall provide that each handler

subject thereto shall pay to any authority or agency established

under such order such handler's pro rata share (as approved by the

Secretary) of such expenses as the Secretary may find are

reasonable and are likely to be incurred by such authority or

agency, during any period specified by him, for such purposes as

the Secretary may, pursuant to such order, determine to be

appropriate, and for the maintenance and functioning of such

authority or agency, other than expenses incurred in receiving,

handling, holding, or disposing of any quantity of a commodity

received, handled, held, or disposed of by such authority or agency

for the benefit or account of persons other than handlers subject

to such order. The pro rata share of the expenses payable by a

cooperative association of producers shall be computed on the basis

of the quantity of the agricultural commodity or product thereof

covered by such order which is distributed, processed, or shipped

by such cooperative association of producers. The payment of

assessments for the maintenance and functioning of such authority

or agency, as provided for herein, may be required under a

marketing agreement or marketing order throughout the period the

marketing agreement or order is in effect and irrespective of

whether particular provisions thereof are suspended or become

inoperative.

(iii) Any authority or agency established under an order may

maintain in its own name, or in the name of its members, a suit

against any handler subject to an order for the collection of such

handler's pro rata share of expenses. The several district courts

of the United States are vested with jurisdiction to entertain such

suits regardless of the amount in controversy.

(c) Regulations; penalty for violation

The Secretary of Agriculture is authorized, with the approval of

the President, to make such regulations with the force and effect

of law as may be necessary to carry out the powers vested in him by

this chapter. Any violation of any regulation shall be subject to

such penalty, not in excess of $100, as may be provided therein.

(d) Regulations of Secretary of the Treasury

The Secretary of the Treasury is authorized to make such

regulations as may be necessary to carry out the powers vested in

him by this chapter.

(e) Review of official acts

The action of any officer, employee, or agent in determining the

amount of and in making any payment authorized to be made under

section 608 of this title shall not be subject to review by any

officer of the Government other than the Secretary of Agriculture

or Secretary of the Treasury.

(f) Geographical application

The provisions of this chapter shall be applicable to the United

States and its possessions, except the Virgin Islands, American

Samoa, the Canal Zone, and the island of Guam; except that, in the

case of sugar beets and sugarcane, the President, if he finds it

necessary in order to effectuate the declared policy of this

chapter, is authorized by proclamation to make the provisions of

this chapter applicable to the Virgin Islands, American Samoa, the

Canal Zone, and/or the island of Guam.

(g) Officers; dealing or speculating in agricultural products;

penalties

No person shall, while acting in any official capacity in the

administration of this chapter, speculate, directly or indirectly,

in any agricultural commodity or product thereof to which this

chapter applies, or in contracts relating thereto, or in the stock

or membership interest of any association or corporation engaged in

handling, processing, or disposing of any such commodity or

product. Any person violating this subsection shall upon

conviction thereof be fined not more than $10,000 or imprisoned not

more than two years, or both.

(h) Adoption of Federal Trade Commission Act; hearings; report of

violations to Attorney General

For the efficient administration of the provisions of this

chapter, the provisions, including penalties, of sections 48, 49,

and 50 of title 15, are made applicable to the jurisdiction,

powers, and duties of the Secretary in administering the provisions

of this chapter, and to any person subject to the provisions of

this chapter, whether or not a corporation. Hearings authorized or

required under this chapter shall be conducted by the Secretary of

Agriculture or such officer or employee of the Department as he may

designate for the purpose. The Secretary may report any violation

of any agreement entered into under this chapter, to the Attorney

General of the United States, who shall cause appropriate

proceedings to enforce such agreement to be commenced and

prosecuted in the proper courts of the United States without delay.

(i) Cooperation with State authorities; imparting information

The Secretary of Agriculture upon the request of the duly

constituted authorities of any State is directed, in order to

effectuate the declared policy of this chapter and in order to

obtain uniformity in the formulation, administration, and

enforcement of Federal and State programs relating to the

regulation of the handling of agricultural commodities or products

thereof, to confer with and hold joint hearings with the duly

constituted authorities of any State, and is authorized to

cooperate with such authorities; to accept and utilize, with the

consent of the State, such State and local officers and employees

as may be necessary; to avail himself of the records and facilities

of such authorities; to issue orders (subject to the provisions of

section 608c of this title) complementary to orders or other

regulations issued by such authorities; and to make available to

such State authorities the records and facilities of the Department

of Agriculture: Provided, That information furnished to the

Secretary of Agriculture pursuant to section 608d(1) of this title

shall be made available only to the extent that such information is

relevant to transactions within the regulatory jurisdiction of such

authorities, and then only upon a written agreement by such

authorities that the information so furnished shall be kept

confidential by them in a manner similar to that required of

Federal officers and employees under the provisions of section

608d(2) of this title.

(j) Definitions

The term ''interstate or foreign commerce'' means commerce

between any State, Territory, or possession, or the District of

Columbia, and any place outside thereof; or between points within

the same State, Territory, or possession, or the District of

Columbia, but through any place outside thereof; or within any

Territory or possession, or the District of Columbia. For the

purpose of this chapter (but in nowise limiting the foregoing

definition) a marketing transaction in respect to an agricultural

commodity or the product thereof shall be considered in interstate

or foreign commerce if such commodity or product is part of that

current of interstate or foreign commerce usual in the handling of

the commodity or product whereby they, or either of them, are sent

from one State to end their transit, after purchase, in another,

including all cases where purchase or sale is either for shipment

to another State or for the processing within the State and the

shipment outside the State of the products so processed.

Agricultural commodities or products thereof normally in such

current of interstate or foreign commerce shall not be considered

out of such current through resort being had to any means or device

intended to remove transactions in respect thereto from the

provisions of said sections. As used herein, the word ''State''

includes Territory, the District of Columbia, possession of the

United States, and foreign nations.

-SOURCE-

(May 12, 1933, ch. 25, title I, Sec. 10, 48 Stat. 37; June 16,

1933, ch. 98, title VIII, Sec. 86, 48 Stat. 273; May 9, 1934, ch.

263, Sec. 7, 48 Stat. 675; Aug. 24, 1935, ch. 641, Sec. 16-18, 49

Stat. 767; Aug. 26, 1935, ch. 685, 49 Stat. 801; June 22, 1936, ch.

690, Sec. 601(a), 49 Stat. 1739; June 3, 1937, ch. 296, Sec. 1,

2(g)-(i), 50 Stat. 246, 248; Proc. No. 2695, eff. July 4, 1946, 11

F.R. 7817, 60 Stat. 1352; Aug. 1, 1947, ch. 425, Sec. 3, 61 Stat.

709; Oct. 28, 1949, ch. 782, title XI, Sec. 1106(a), 63 Stat. 972.)

-REFTEXT-

REFERENCES IN TEXT

Section 8 of title II of the Act entitled ''An Act to maintain

the credit of the United States Government,'', referred to in

subsec. (a), means act Mar. 20, 1933, ch. 3, title II, Sec. 8, 48

Stat. 15, which is not classified to the Code.

For definition of Canal Zone, referred to in subsec. (f), see

section 3602(b) of Title 22, Foreign Relations and Intercourse.

-COD-

CODIFICATION

In subsec. (a), ''chapter 51 and subchapter III of chapter 53 of

title 5'' substituted for ''the Classification Act of 1949'' on

authority of Pub. L. 89-554, Sec. 7(b), Sept. 6, 1966, 80 Stat.

631, the first section of which enacted Title 5, Government

Organization and Employees.

Provisions of subsec. (a), which authorized appointment of

officers and employees without regard to the civil-service laws and

regulations and which limited the maximum salary payable to any

officer or employee to not more than $10,000 per annum, were

omitted from the Code as obsolete and superseded. Such

appointments are now subject to the civil service laws unless

specifically excepted by those laws or by laws enacted subsequent

to Executive Order 8743, Apr. 23, 1941, issued by the President

pursuant to act Nov. 26, 1940, ch. 919, title I, Sec. 1, 54 Stat.

1211, which covered most excepted positions into the classified

(competitive) civil service. The Order is set out as a note under

section 3301 of Title 5.

The salary limitation was superseded by the Classification Act of

1949.

References to the Philippine Islands in subsec. (f) of this

section were omitted from the Code as obsolete in view of the

independence of the Philippine Islands, proclaimed by the President

of the United States in Proc. No. 2695, which is set out as a note

under section 1394 of Title 22, Foreign Relations and Intercourse.

-MISC3-

AMENDMENTS

1949 - Subsec. (a). Act Oct. 28, 1949, substituted

''Classification Act of 1949'' for ''Classification Act of 1923''.

1947 - Subsec. (b)(2). Act Aug. 1, 1947, among other changes

inserted subpar. (i), designated former first and second sentences

of subsection as subpar. (ii) and inserted last sentence relating

to the payment of assessments for the maintenance and functioning

of such authority thereto, and designated former third and fourth

sentences of subsection as subpar. (iii).

1937 - Subsec. (c). Act June 3, 1937, Sec. 2(g), struck out last

clause of first sentence which related to regulations establishing

conversion factors for any commodity and article processed

therefrom to determine the amount of tax imposed or refunds to be

made with respect thereto.

Subsec. (f). Act June 3, 1937, Sec. 2(b), struck out sentence

which authorized the President to attach by executive order any or

all possessions to any internal-revenue district for the purpose of

carrying out provisions with respect to the collection of taxes.

Subsec. (j). Act June 3, 1937, Sec. 2(i), added subsec. (j).

1936 - Subsec. (d). Act June 22, 1936, reenacted subsec. (d) for

refund purposes.

1935 - Subsec. (b). Act Aug. 24, 1935, Sec. 16, among other

changes inserted ''The Secretary, in the administration of this

chapter, shall accord such recognition and encouragement to

producer-owned and producer-controlled cooperative associations as

will be in harmony with the policy toward cooperative associations

set forth in existing Acts of Congress, and as will tend to promote

efficient methods of marketing and distribution.

''(2) Each order issued by the Secretary under this chapter shall

provide that each handler subject thereto shall pay to any

authority or agency established under such order such handler's pro

rata share (as approved by the Secretary) of such expenses as the

Secretary may find will necessarily be incurred by such authority

or agency, during any period specified by him, for the maintenance

and functioning of such authority or agency, other than expenses

incurred in receiving, handling, holding, or disposing of any

quantity of a commodity received, handled, held, or disposed of by

such authority or agency for the benefit or account of persons

other than handlers subject to such order. The pro rata share of

the expenses payable by a cooperative association of producers

shall be computed on the basis of the quantity of the agricultural

commodity or product thereof covered by such order which is

distributed, processed, or shipped by such cooperative association

of producers. Any such authority or agency may maintain in its own

name, or in the names of its members, a suit against any handler

subject to an order for the collection of such handler's pro rata

share of expenses. The several District Courts of the United

States are hereby vested with jurisdiction to entertain such suits

regardless of the amount in controversy.''

Subsec. (e). Act Aug. 24, 1935, Sec. 17, struck out ''rental or

benefit payment'' and inserted in lieu thereof ''payment authorized

to be made under section 8''.

Subsec. (f). Act Aug. 26, 1935, inserted sentence authorizing the

President to attach by executive order any or all possessions to

any internal-revenue district for the purpose of carrying out

provisions with respect to the collection of taxes.

Subsec. (i). Act Aug. 24, 1935, Sec. 18, added subsec. (i).

1934 - Subsec. (f). Act May 9, 1934, inserted exception

provision.

1933 - Subsec. (a). Act June 16, 1933, inserted ''And provided

further, That the State Administrator appointed to administer this

chapter in each State shall be appointed by the President, by and

with the advice and consent of the Senate'' at end of first

sentence.

REPEALS

Act Oct. 28, 1949, ch. 782, cited as a credit to this section,

was repealed (subject to a savings clause) by Pub. L. 89-554, Sept.

6, 1966, Sec. 8, 80 Stat. 632, 655.

-TRANS-

TRANSFER OF FUNCTIONS

Functions of all officers, agencies, and employees of Department

of Agriculture transferred, with certain exceptions, to Secretary

of Agriculture by 1953 Reorg. Plan No. 2, Sec. 1, eff. June 4,

1953, 18 F.R. 3219, 67 Stat. 633, set out as a note under section

2201 of this title.

Executive and administrative functions of Federal Trade

Commission, with certain reservations, transferred to Chairman of

Commission by 1950 Reorg. Plan No. 8, Sec. 1, eff. May 24, 1950,

15 F.R. 3175, 64 Stat. 1264, set out in the Appendix to Title 5,

Government Organization and Employees.

1946 Reorg. Plan No. 3, Sec. 501, eff. July 16, 1946, 11 F.R.

7877, 60 Stat. 1100, set out in the Appendix to Title 5,

transferred functions of Agricultural Adjustment Administration to

Secretary of Agriculture. In his letter to Congress, the President

stated that purpose of this transfer was to permit Secretary of

Agriculture to continue consolidation already effected in

Production and Marketing Administration. By temporary Executive

Orders 9069 and 9577, and Ex. Ord. No. 9280, Dec. 5, 1942, 7 F.R.

10, 179, and Ex. Ord. No. 9322, Mar. 26, 1943, 8 F.R. 3807, as

amended by Ex. Ord. No. 9334, Apr. 19, 1943, 8 F.R. 5423, the

Agricultural Adjustment Administration had been successively

consolidated into Agricultural Conservation and Adjustment

Administration, Food Production Administration, and War Food

Administration, which was terminated and its functions transferred

to Secretary of Agriculture by said Ex. Ord. 9577. Secretary of

Agriculture consolidated functions of Agricultural Adjustment

Administration into Production and Marketing Administration by

Memorandum 1118, Aug. 18, 1945.

-MISC5-

VALIDITY OF SECTION AFFIRMED

Act June 3, 1937, Sec. 1, affirmed, validated, and reenacted

without change the provisions of subsecs. (a), (b) (2), (c), and

(f) to (i) of this section, except for the amendments to subsecs.

(c) and (f) by section 2 of the act. See note set out under

section 601 of this title.

APPROPRIATIONS FOR REFUNDS AND PAYMENTS OF PROCESSING AND RELATED

TAXES AND LIMITATIONS THEREON

Acts June 25, 1938, ch. 681, 52 Stat. 1150; May 6, 1939, ch. 115,

Sec. 1, 53 Stat. 661, 662; Feb. 12, 1940, ch. 28, Sec. 1, 54 Stat.

36; Mar. 25, 1940, ch. 71, title I, 54 Stat. 61; May 31, 1941, ch.

156, title I, Sec. 1, 55 Stat. 218; Mar. 10, 1942, ch. 178, title

I, Sec. 1, 56 Stat. 156; June 30, 1943, ch. 179, title I, 57 Stat.

257; Apr. 22, 1944, ch. 175, title I, Sec. 1, 58 Stat. 201; Apr.

24, 1945, ch. 92, title I, 59 Stat. 62; July 20, 1946, ch. 588,

title I, 60 Stat. 574.

-EXEC-

EX. ORD. NO. 10199. REGULATIONS WITHOUT APPROVAL OF PRESIDENT

Ex. Ord. No. 10199, Dec. 21, 1950, 15 F.R. 9217, provided:

By virtue of the authority vested in me by the act of August 8,

1950, Public Law 673, 81st Congress (sections 301 to 303 of Title

3) I hereby authorize the Secretary of Agriculture to make without

the approval of the President such regulations with the force and

effect of law as may be necessary to carry out the powers vested in

him by the Agricultural Marketing Agreement Act of 1937, as amended

(this chapter). Harry S Truman.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 608c, 671, 672, 673, 855,

1392 of this title; title 5 sections 3502, 6312, 8332.

-CITE-

7 USC Sec. 611 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 26 - AGRICULTURAL ADJUSTMENT

SUBCHAPTER III - COMMODITY BENEFITS

-HEAD-

Sec. 611. ''Basic agricultural commodity'' defined; exclusion of

commodities

-STATUTE-

As used in this chapter, the term ''basic agricultural

commodity'' means wheat, rye, flax, barley, cotton, field corn,

grain sorghums, hogs, cattle, rice, potatoes, tobacco, sugar beets

and sugarcane, peanuts, and milk and its products, and any regional

or market classification, type, or grade thereof; but the Secretary

of Agriculture shall exclude from the operation of the provisions

of this chapter, during any period, any such commodity or

classification, type, or grade thereof if he finds, upon

investigation at any time and after due notice and opportunity for

hearing to interested parties, that the conditions of production,

marketing, and consumption are such that during such period this

chapter can not be effectively administered to the end of

effectuating the declared policy with respect to such commodity or

classification, type, or grade thereof. As used in this chapter,

the term ''potatoes'' means all varieties of potatoes included in

the species Solanum tuberosum.

-SOURCE-

(May 12, 1933, ch. 25, title I, Sec. 11, 48 Stat. 38; Apr. 7, 1934,

ch. 103, Sec. 1, 3(b), 4, 5, 48 Stat. 528; May 9, 1934, ch. 263,

Sec. 1, 48 Stat. 670; Aug. 24, 1935, ch. 641, Sec. 61, 49 Stat.

782.)

-MISC1-

AMENDMENTS

1935 - Act Aug. 24, 1935, inserted '', potatoes'' after ''rice''

and last sentence defining potatoes.

1934 - Act May 9, 1934, inserted '', sugar beets and sugarcane''

after ''tobacco''.

Act Apr. 7, 1934, inserted '', cattle'' after ''hogs'', '',

peanuts'' after ''tobacco'', '', rye, flax, barley'' after

''wheat'', and '', grain sorghums'' after ''field corn''.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 673 of this title; title

12 section 1150a.

-CITE-

7 USC Sec. 612 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 26 - AGRICULTURAL ADJUSTMENT

SUBCHAPTER III - COMMODITY BENEFITS

-HEAD-

Sec. 612. Appropriation; use of revenues; administrative expenses

-STATUTE-

(a) There is appropriated, out of any money in the Treasury not

otherwise appropriated, the sum of $100,000,000 to be available to

the Secretary of Agriculture for administrative expenses under this

chapter, and for payments authorized to be made under section 608

of this title. Such sum shall remain available until expended.

To enable the Secretary of Agriculture to finance under such

terms and conditions as he may prescribe, surplus reductions with

respect to the dairy- and beef-cattle industries, and to carry out

any of the purposes described in subsections (a) and (b) of this

section and to support and balance the markets for the dairy and

beef cattle industries, there is authorized to be appropriated, out

of any money in the Treasury not otherwise appropriated, the sum of

$200,000,000: Provided, That not more than 60 per centum of such

amount shall be used for either of such industries.

(b) In addition to the foregoing, for the purpose of effectuating

the declared policy of this chapter, a sum equal to the proceeds

derived from all taxes imposed under this chapter is appropriated

to be available to the Secretary of Agriculture for (1) the

acquisition of any agricultural commodity pledged as security for

any loan made by any Federal agency, which loan was conditioned

upon the borrower agreeing or having agreed to cooperate with a

program of production adjustment or marketing adjustment adopted

under the authority of this chapter, and (2) the following purposes

under this chapter: Administrative expenses, payments authorized to

be made under section 608 of this title, and refunds on taxes. The

Secretary of Agriculture and the Secretary of the Treasury shall

jointly estimate from time to time the amounts, in addition to any

money available under subsection (a) of this section, currently

required for such purposes; and the Secretary of the Treasury

shall, out of any money in the Treasury not otherwise appropriated,

advance to the Secretary of Agriculture the amounts so estimated.

The amount of any such advance shall be deducted from such tax

proceeds as shall subsequently become available under this

subsection.

(c) The administrative expenses provided for under this section

shall include, among others, expenditures for personal services and

rent in the District of Columbia and elsewhere, for law books and

books of reference, for contract stenographic reporting services,

and for printing and paper in addition to allotments under the

existing law. The Secretary of Agriculture shall transfer to the

Treasury Department, and is authorized to transfer to other

agencies, out of funds available for administrative expenses under

this chapter, such sums as are required to pay administrative

expenses incurred and refunds made by such department or agencies

in the administration of this chapter.

-SOURCE-

(May 12, 1933, ch. 25, title I, Sec. 12, 48 Stat. 38; Apr. 7, 1934,

ch. 103, Sec. 2, 48 Stat. 528; Aug. 24, 1935, ch. 641, Sec. 3, 19,

49 Stat. 753, 768; June 3, 1937, ch. 296, Sec. 1, 2(j), 50 Stat.

246, 248.)

-MISC1-

AMENDMENTS

1937 - Subsec. (a). Act June 3, 1937, Sec. 2(j), struck out ''and

production adjustments'' after ''surplus reductions'' in second

par.

1935 - Subsec. (a). Act Aug. 24, 1935, Sec. 19, substituted

''payments authorized to be made under section 608'' for ''rental

and benefit payments made with respect to reduction in acreage or

reduction in production for market under part 2 of this title''.

Subsec. (b). Act Aug. 24, 1935, Sec. 3, amended subsec. (b)

generally.

1934 - Subsec. (a). Act Apr. 7, 1934, added second par.

VALIDITY OF SECTION AFFIRMED

Act June 3, 1937, Sec. 1, affirmed and validated, and reenacted

without change the provisions of subsecs. (a) and (c) of this

section, except for the amendment to subsec. (a) by section 2 of

the act. See note set out under section 601 of this title.

SETTLEMENT OF CERTAIN CLAIMS AND ACCOUNTS

Act June 5, 1942, ch. 349, Sec. 2, 3, 56 Stat. 324, authorized

Comptroller General to relieve disbursing and certifying officers

from liability for payments made prior to January 6, 1936, under

Agricultural Adjustment Act of 1933 or amendments thereto (this

chapter) or under the appropriation ''Payments for Agricultural

Adjustment'' in act Feb. 11, 1936, ch. 49, 49 Stat. 1116, upon

certificate of Secretary of Agriculture that such payments were

made in good faith, and also provided that no action should be

taken to recover such excess payments, if the Secretary of

Agriculture should further certify that in view of the good faith

of the parties or other circumstances of the case, such attempt to

recover them would be inadvisable or inequitable.

-EXEC-

EX. ORD. NO. 10914. EXPANDED PROGRAM OF FOOD DISTRIBUTION TO NEEDY

FAMILIES

Ex. Ord. No. 10914, Jan. 21, 1961, 26 F.R. 639, provided:

Whereas one of the most important and urgent problems confronting

this Nation today is the development of a positive food and

nutrition program for all Americans;

Whereas I have received the report of the Task Force on Area

Redevelopment under the chairmanship of Senator Douglas, in which

special emphasis is placed upon the need for additional food to

supplement the diets of needy persons in areas of chronic

unemployment;

Whereas I am also advised that there are now almost 7 million

persons receiving some form of public assistance, that 4.5 million

persons are reported as being unemployed and that a substantial

number of needy persons are not recipients in the present food

distribution program;

Whereas the variety of foods currently being made available is

limited and its nutritional content inadequate; and

Whereas despite an abundance of food, farm income has been in a

period of decline, and a strengthening of farm prices is desirable.

NOW, THEREFORE, by virtue of the authority vested in me as

President of the United States, it is ordered as follows:

The Secretary of Agriculture shall take immediate steps to expand

and improve the program of food distribution throughout the United

States, utilizing funds and existing statutory authority available

to him, including section 32 of the Act of August 24, 1935, as

amended (7 U.S.C. 612) (this section), so as to make available for

distribution, through appropriate State and local agencies, to all

needy families a greater variety and quantity of food out of our

agricultural abundance. John F. Kennedy.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 616, 672, 673, 724, 1392

of this title; title 12 section 1150a; title 31 section 1511.

-CITE-

7 USC Sec. 612a, 612b 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 26 - AGRICULTURAL ADJUSTMENT

SUBCHAPTER III - COMMODITY BENEFITS

-HEAD-

Sec. 612a, 612b. Omitted

-COD-

CODIFICATION

Section 612a, act Apr. 7, 1934, ch. 103, Sec. 6, 48 Stat. 528;

1940 Reorg. Plan No. III, Sec. 5, 5 F.R. 2108, 54 Stat. 1232,

authorized appropriation of $50,000,000 for purpose of dairy and

beef products for distribution for relief purposes, and for

elimination of diseased cattle.

Section 612b, act Aug. 24, 1935, ch. 641, Sec. 37, 49 Stat. 775,

provided appropriations for elimination of disease in dairy and

beef cattle to remain available until June 30, 1936.

-CITE-

7 USC Sec. 612c 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 26 - AGRICULTURAL ADJUSTMENT

SUBCHAPTER III - COMMODITY BENEFITS

-HEAD-

Sec. 612c. Appropriation to encourage exportation and domestic

consumption of agricultural products

-STATUTE-

There is appropriated for each fiscal year beginning with the

fiscal year ending June 30, 1936 an amount equal to 30 per centum

of the gross receipts from duties collected under the customs laws

during the period January 1 to December 31, both inclusive,

preceding the beginning of each such fiscal year. Such sums shall

be maintained in a separate fund and shall be used by the Secretary

of Agriculture only to (1) encourage the exportation of

agricultural commodities and products thereof by the payment of

benefits in connection with the exportation thereof or of

indemnities for losses incurred in connection with such exportation

or by payments to producers in connection with the production of

that part of any agricultural commodity required for domestic

consumption; (2) encourage the domestic consumption of such

commodities or products by diverting them, by the payment of

benefits or indemnities or by other means, from the normal channels

of trade and commerce or by increasing their utilization through

benefits, indemnities, donations or by other means, among persons

in low income groups as determined by the Secretary of Agriculture;

and (3) reestablish farmers' purchasing power by making payments in

connection with the normal production of any agricultural commodity

for domestic consumption. Determinations by the Secretary as to

what constitutes diversion and what constitutes normal channels of

trade and commerce and what constitutes normal production for

domestic consumption shall be final. The sums appropriated under

this section shall be expended for such one or more of the

above-specified purposes, and at such times, in such manner, and in

such amounts as the Secretary of Agriculture finds will effectuate

substantial accomplishment of any one or more of the purposes of

this section. Notwithstanding any other provision of this section,

the amount that may be devoted, during any fiscal year after June

30, 1939, to any one agricultural commodity or the products thereof

in such fiscal year, shall not exceed 25 per centum of the funds

available under this section for such fiscal year. The sums

appropriated under this section shall be devoted principally to

perishable nonbasic agricultural commodities (other than those

receiving price support under section 1446 of this title) and their

products. The sums appropriated under this section shall,

notwithstanding the provisions of any other law, continue to remain

available for the purposes of this section until expended; but any

excess of the amount remaining unexpended at the end of any fiscal

year over $500,000,000 shall, in the same manner as though it had

been appropriated for the service of such fiscal year, be subject

to the provisions of section 3690 (FOOTNOTE 1) of the Revised

Statutes, and section 5 (FOOTNOTE 1) of the Act entitled ''An Act

making appropriations for the legislative, executive, and judicial

expenses of the Government for the year ending June thirtieth,

eighteen hundred and seventy-five, and for other purposes''. A

public or private nonprofit organization that receives agricultural

commodities or the products thereof under clause (2) of the second

sentence may transfer such commodities or products to another

public or private nonprofit organization that agrees to use such

commodities or products to provide, without cost or waste,

nutrition assistance to individuals in low-income groups.

(FOOTNOTE 1) See References in Text note below.

-SOURCE-

(Aug. 24, 1935, ch. 641, Sec. 32, 49 Stat. 774; Feb. 29, 1936, ch.

104, Sec. 2, 49 Stat. 1151; Feb. 16, 1938, ch. 30, title II, Sec.

203, 52 Stat. 38; June 30, 1939, ch. 253, title I, 53 Stat. 975;

July 3, 1948, ch. 827, title III, Sec. 301, 62 Stat. 1257; Oct. 31,

1949, ch. 792, title IV, Sec. 411, 63 Stat. 1057; Jan. 30, 1954,

ch. 2, Sec. 5(b), 68 Stat. 7; Pub. L. 99-198, title XV, Sec. 1561,

Dec. 23, 1985, 99 Stat. 1589; Pub. L. 107-171, title X, Sec. 10602,

May 13, 2002, 116 Stat. 511.)

-REFTEXT-

REFERENCES IN TEXT

Section 3690 of the Revised Statutes, and section 5 of act June

30, 1875, referred to in text, which were classified to sections

712 and 713 of former Title 31, Money and Finance, were repealed by

act July 6, 1949, ch. 299, Sec. 3, 63 Stat. 407.

-COD-

CODIFICATION

Section was not enacted as part of the Agricultural Adjustment

Act which comprises this chapter.

-MISC3-

AMENDMENTS

2002 - Pub. L. 107-171, which directed amendment of second

undesignated par. by substituting ''$500,000,000'' for

''$300,000,000'', was executed by making the substitution in text

to reflect the probable intent of Congress, because section does

not contain a second undesignated par.

1985 - Pub. L. 99-198 inserted sentence authorizing a public or

private nonprofit organization that receives agricultural

commodities or the products thereof under clause (2) of the second

sentence to transfer such commodities or products to another public

or private nonprofit organization that agrees to use such

commodities or products to provide, without cost or waste,

nutrition assistance to individuals in low-income groups.

1954 - Act Jan. 30, 1954, substituted ''(other than those

receiving price support under section 1446 of this title)'' for

''(other than those designated in section 1446 of this title),'' in

next to last sentence.

1949 - Act Oct. 31, 1949, inserted sentence relating to

perishable nonbasic agricultural commodities.

1948 - Act July 3, 1948, inserted sentence providing for the

accumulation of funds up to $300,000,000.

1939 - Act June 30, 1939, in cl. (2), inserted ''or by increasing

their utilization through benefits, indemnities, donations or by

other means, among persons in low income groups as determined by

the Secretary of Agriculture''.

1938 - Act Feb. 16, 1938, inserted ''Notwithstanding any other

provision of this section, the amount that may be devoted, during

any fiscal year after June 30, 1939, to any one agricultural

commodity or the products thereof in such fiscal year, shall not

exceed 25 per centum of the funds available under this section for

such fiscal year.''

1936 - Act Feb. 29, 1936, struck out cl. (3) and inserted in lieu

thereof immediately preceding second proviso ''(3) reestablish

farmers' purchasing power by making payments in connection with the

normal production of any agricultural commodity for domestic

consumption. Determinations by the Secretary as to what

constitutes diversion and what constitutes normal channels of trade

and commerce and what constitutes normal production for domestic

consumption shall be final. The sums appropriated under this

section shall be expended for such one or more of the

above-specified purposes, and at such times, in such manner, and in

such amounts as the Secretary of Agriculture finds will effectuate

substantial accomplishment of any one or more of the purposes of

this section.''

EFFECTIVE DATE OF 1948 AMENDMENT

Amendment by act July 3, 1948, effective Jan. 1, 1950, see

section 303 of act July 3, 1948, set out as a note under section

1301 of this title.

-TRANS-

TRANSFER OF FUNCTIONS

Functions of all officers, agencies, and employees of the

Department of Agriculture transferred, with certain exceptions, to

Secretary of Agriculture by 1953 Reorg. Plan No. 2, Sec. 1, eff.

June 4, 1953, 18 F.R. 3219, 67 Stat. 633, set out as a note under

section 2201 of this title.

Federal Surplus Relief Corporation changed to Federal Surplus

Commodities Corporation by amendment of its charter in 1935. It

consolidated with Division of Marketing and Marketing Agreements of

Agricultural Adjustment Administration to form Surplus Marketing

Administration by 1940 Reorg. Plan No. III, Sec. 5, 5 F.R. 2108, 54

Stat. 1232, set out in the Appendix to Title 5, Government

Organization and Employees. By Executive orders under First War

Powers Act, former section 601 et seq. of Appendix to Title 50, War

and National Defense, Surplus Marketing Administration merged into

Agricultural Marketing Administration, which consolidated into Food

Distribution Administration, which consolidated into War Food

Administration, which terminated and its functions transferred to

Secretary of Agriculture. By Memorandum 1118, Secretary of

Agriculture, Aug. 18, 1945, functions of Federal Surplus

Commodities Corporation transferred to Production and Marketing

Administration. 1946 Reorg. Plan No. 3, Sec. 501(a), eff. July 16,

1946, 11 F.R. 7877, 60 Stat. 1100, transferred functions of Surplus

Marketing Administration to Secretary of Agriculture. In his letter

to Congress, the President stated that purpose of this transfer was

to permit Secretary of Agriculture to continue the consolidation

already effected in Production and Marketing Administration.

Federal Surplus Commodities Corporation and Division of Marketing

and Marketing Agreements of Agricultural Adjustment Administration

and their functions consolidated into Surplus Marketing

Administration in Department of Agriculture by Reorg. Plan No. III,

Sec. 5, eff. June 30, 1940, set out in the Appendix to Title 5.

See, also, sections 8 and 9 of said plan for provisions relating to

transfer of records, property, personnel, and funds.

-MISC5-

ADDITIONAL APPROPRIATIONS

Joint Res. July 1, 1941, ch. 266, Sec. 34, 55 Stat. 407,

appropriated, in addition to the funds already provided,

$25,000,000, to be used by the Secretary of Agriculture, for the

purpose of effectuating this section, subject to the provisions of

law relating to the expenditure of such funds.

Act July 1, 1941, ch. 267, Sec. 1, 55 Stat. 435, made the funds

provided for in this section available for the fiscal year 1942.

Joint Res. June 26, 1940, ch. 432, Sec. 41, 54 Stat. 627,

appropriated, in addition to the funds already provided,

$50,000,000, to be used by the Secretary of Agriculture, for the

purpose of effectuating this section, subject to the provisions of

law relating to the expenditure of such funds.

Act June 25, 1940, ch. 421, Sec. 1, 54 Stat. 561, made the funds

provided for in this section available for the fiscal year 1941.

Act June 30, 1939, besides amending clause 2, provided for the

availability of funds provided by this section during the fiscal

year 1940.

Act Aug. 25, 1937, ch. 757, title I, Sec. 1, 50 Stat. 762,

provided for availability of portions of funds available under this

section in fiscal years 1938 and 1939, for expenditure for

price-adjustment payments with respect to 1937 cotton crop.

USE OF APPROPRIATION

Section 301 of act July 30, 1947, ch. 356, title III, 61 Stat.

550, provided that, notwithstanding section 612c of this title, no

more than $44,000,000 would be available during the fiscal year

ending June 30, 1948, for use in effectuating this chapter; that

$65,000,000 of the fiscal year 1948 appropriation were made

available to carry out the National School Lunch Act of June 4,

1946, without regard to the 25 per cent limitation in section 612c

and exclusive of funds expended pursuant to the last sentence of

section 9 of the National School Lunch Act: provided that no part

of such funds were to be used for nonfood assistance under section

5 of said Act; and that the remainder of the fund appropriated by

said Act for the fiscal year 1948 was rescinded effective July 1,

1947, carried to the surplus fund, and covered into the Treasury

immediately thereafter.

CANCELLATION OR RESCISSION OF APPROPRIATION

Section 112(f) of act Apr. 3, 1948, ch. 169, title I, 62 Stat.

148, which provided in part for the rescission or cancellation of

appropriations under this section as provided for in act July 30,

1947, ch. 356, title III, 61 Stat. 550, was repealed by act Oct.

10, 1951, ch. 479, title V, Sec. 503(b)(1), as added June 20, 1952,

ch. 449, Sec. 7 (c), 66 Stat. 144.

REPORT ON SPECIALTY CROP PURCHASES

Pub. L. 107-171, title X, Sec. 10901, May 13, 2002, 116 Stat.

536, provided that: ''Not later than 1 year after the date of

enactment of this Act (May 13, 2002), the Secretary of Agriculture

shall submit to the Committee on Agriculture of the House of

Representatives and the Committee on Agriculture, Nutrition, and

Forestry of the Senate a report on the quantity and type of -

''(1) fruits, vegetables, and other specialty food crops that

are purchased under section 10603 (7 U.S.C. 612c-4); and

''(2) other commodities that are purchased under section 32 of

the Act of August 24, 1935 (7 U.S.C. 612c).''

DOMESTIC FISH OR FISH PRODUCT COMPLIANCE WITH FOOD SAFETY STANDARDS

OR PROCEDURES DEEMED TO HAVE MET REQUIREMENTS FOR FEDERAL COMMODITY

PURCHASE PROGRAMS

Domestic fish or fish products produced in compliance with food

safety standards or procedures accepted by Food and Drug

Administration deemed to have met inspection requirements for

program authorized by this section, except that lot inspections may

be utilized, see section 733 of Pub. L. 104-180, set out as a note

under section 342 of Title 21, Food and Drugs.

REPORT ON ENTITLEMENT COMMODITY PROCESSING

Pub. L. 101-624, title XVII, Sec. 1773(f), Nov. 28, 1990, 104

Stat. 3811, directed Comptroller General of the United States, not

later than Jan. 1, 1992, to submit a report to Congress regarding

processing of entitlement commodities used in child nutrition

programs, with evaluation of extent to which processing of

entitlement commodities occurs in the States, governmental

requirements for participation in the processing vary among States,

and entitlement commodity recipients are satisfied with access to

and services provided through entitlement commodity processing,

prior to repeal by Pub. L. 104-193, title VIII, Sec. 874, Aug. 22,

1996, 110 Stat. 2346.

SOUP KITCHENS AND OTHER EMERGENCY FOOD AID

Pub. L. 100-435, title I, Sec. 110, Sept. 19, 1988, 102 Stat.

1651, as amended by Pub. L. 101-624, title XVII, Sec. 1774(a), Nov.

28, 1990, 104 Stat. 3811; Pub. L. 102-237, title IX, Sec. 922(a),

Dec. 13, 1991, 105 Stat. 1888; Pub. L. 104-127, title IV, Sec. 404,

Apr. 4, 1996, 110 Stat. 1029, established formula so that amount,

measured by their value, of additional commodities that were to be

provided to each State for redistribution to soup kitchens and food

banks could be precisely calculated for fiscal years 1989 through

2002, and further provided for definitions, appropriations through

fiscal year 2002 to purchase additional commodities, mandatory

allotments to States, maintenance of effort by States, authority of

Secretary to establish different formula for allocation of

commodities, priority system for State distribution of commodities,

and settlement and adjustment of claims, prior to repeal by Pub. L.

104-193, title VIII, Sec. 873(1), Aug. 22, 1996, 110 Stat. 2346.

GLEANING CLEARINGHOUSES

Pub. L. 100-435, title I, Sec. 111, Sept. 19, 1988, 102 Stat.

1654, as amended by Pub. L. 101-624, title XVII, Sec. 1774(b), Nov.

28, 1990, 104 Stat. 3812, provided that:

''(a) Definition of Gleaning. - For purposes of this section, the

term 'to glean' means to collect unharvested crops from the fields

of farmers, or to obtain agricultural products from farmers,

processors, or retailers, in order to distribute the products to

needy individuals, including unemployed and low-income individuals,

and the term includes only those situations in which agricultural

products and access to fields and facilities are made available

without charge.

''(b) Establishment. -

''(1) In general. - The Secretary of Agriculture (hereafter in

this section referred to as the 'Secretary') is authorized to

assist States and private nonprofit organizations in establishing

Gleaning Clearinghouses (hereafter in this section referred to as

a 'Clearinghouse').

''(2) Assistance. - The Secretary is authorized to provide

technical information and other assistance considered appropriate

by the Secretary to encourage public and nonprofit private

organizations to -

''(A) initiate and carry out gleaning activities, and to

assist other organizations and individuals to do so, through

lectures, correspondence, consultation, or such other measures

as the Secretary may consider appropriate;

''(B) collect from public and private sources (including

farmers, processors, and retailers) information relating to the

kinds, quantities, and geographical locations of agricultural

products not completely harvested;

''(C) gather, compile, and make available to public and

nonprofit private organizations and to the public the

statistics and other information collected under this

paragraph, at reasonable intervals;

''(D) establish and operate a toll-free telephone line by

which -

''(i) farmers, processors, and retailers may report to a

Clearinghouse for dissemination information regarding

unharvested crops and agricultural products available for

gleaning, and may also report how they may be contacted;

''(ii) public and nonprofit organizations that wish to

glean or to assist others to glean, may report to a

Clearinghouse the kinds and amounts of products that are

wanted for gleaning, and may also report how they may be

contacted;

''(iii) persons who can transport crops or products may

report the availability of free transportation for gleaned

crops or products; and

''(iv) information about gleaning can be provided without

charge by a Clearinghouse to the persons and organizations

described in clauses (i), (ii), and (iii);

''(E) prepare, publish, and make available to the public, at

cost and on a continuing basis, a handbook on gleaning that

includes such information and advice as may be useful in

operating efficient gleaning activities and projects, including

information regarding how to -

''(i) organize groups to engage in gleaning; and

''(ii) distribute to needy individuals, including

low-income and unemployed individuals, food and other

agricultural products that have been gleaned; or

''(F) advertise in print, on radio, television, or through

other media, as the Secretary considers to be appropriate, the

services offered by a Clearinghouse under this section.''

(Section 111 of Pub. L. 100-435 effective and implemented on Oct.

1, 1988, except that such section to become effective and

implemented on Oct. 1, 1989, if final order is issued under section

902(b) of Title 2, The Congress, for fiscal year 1989 making

reductions and sequestrations specified in the report required

under section 901(a)(3)(A) of Title 2, see section 701(a), (c)(2)

of Pub. L. 100-435, set out as an Effective Date of 1988 Amendment

note under section 2012 of this title.)

CONTINUATION OF PROVISION OF CHEESE SUPPLIES

Pub. L. 100-435, title I, Sec. 130, Sept. 19, 1988, 102 Stat.

1655, was redesignated section 5(d)(2) of Pub. L. 93-86, set out

below, by Pub. L. 101-624, title XVII, Sec. 1774(c)(2)(A), Nov. 28,

1990, 104 Stat. 3813.

ENCOURAGEMENT OF FOOD PROCESSING AND DISTRIBUTION BY ELIGIBLE

RECIPIENT AGENCIES

Pub. L. 100-435, title II, Sec. 220, Sept. 19, 1988, 102 Stat.

1659, as amended by Pub. L. 101-624, title XVII, Sec. 1772(h)(5),

Nov. 28, 1990, 104 Stat. 3809; Pub. L. 102-237, title IX, Sec. 942,

Dec. 13, 1991, 105 Stat. 1893, provided that, not later than 60

days after Sept. 19, 1988, Secretary of Agriculture was, to extent

that Commodity Credit Corporation's inventory levels permitted,

solicit applications for surplus commodities available for

distribution under section 202 of Pub. L. 98-8 (7 U.S.C. 7502), and

further provided for requirements for solicitations as well as

review of applications, prior to repeal by Pub. L. 104-193, title

VIII, Sec. 873(2), Aug. 22, 1996, 110 Stat. 2346.

FOOD BANK DEMONSTRATION PROJECTS

Pub. L. 100-435, title V, Sec. 502, Sept. 19, 1988, 102 Stat.

1671, authorized Secretary of Agriculture to carry out

demonstration projects to provide and redistribute certain

agricultural commodities to needy individuals and families through

community food banks and other charitable food banks, authorized

Secretary to determine quantities, varieties, and types of

agricultural commodities and products thereof to be made available

to community food banks, and provided for report to Congress not

later than July 1, 1990, as well as for termination of authority on

Sept. 30, 1990, and appropriations to carry out projects, prior to

repeal by Pub. L. 104-193, title VIII, Sec. 873(3), Aug. 22, 1996,

110 Stat. 2346.

COMMODITY DISTRIBUTION REFORM

Pub. L. 100-237, Sec. 1-4, 7, 13-19, Jan. 8, 1988, 101 Stat.

1733, 1739, 1740, 1742, 1743, as amended by Pub. L. 101-624, title

XVII, Sec. 1772(h)(3), (4), 1773(a)-(e), Nov. 28, 1990, 104 Stat.

3809-3811; Pub. L. 102-342, title IV, Sec. 401, Aug. 14, 1992, 106

Stat. 914; Pub. L. 103-448, title III, Sec. 303, Nov. 2, 1994, 108

Stat. 4750; Pub. L. 105-336, title III, Sec. 301, 302, Oct. 31,

1998, 112 Stat. 3167, 3168; Pub. L. 106-78, title VII, Sec.

752(b)(1), Oct. 22, 1999, 113 Stat. 1169; Pub. L. 106-472, title

III, Sec. 307(a), Nov. 9, 2000, 114 Stat. 2073; Pub. L. 107-171,

title IV, Sec. 4202(a), May 13, 2002, 116 Stat. 329, provided that:

''SECTION 1. SHORT TITLE.

''This Act (amending section 1431e of this title and sections

1755, 1769, and 1786 of Title 42, The Public Health and Welfare,

and enacting provisions set out as notes under this section and

section 1786 of Title 42) may be cited as the 'Commodity

Distribution Reform Act and WIC Amendments of 1987'.

''SEC. 2. STATEMENT OF PURPOSE; SENSE OF CONGRESS.

''(a) Statement of Purpose. - It is the purpose of this Act to

improve the manner in which agricultural commodities acquired by

the Department of Agriculture are distributed to recipient

agencies, the quality of the commodities that are distributed, and

the degree to which such distribution reponds (sic) to the needs of

the recipient agencies.

''(b) Sense of Congress. - It is the sense of Congress that the

distribution of commodities and products -

''(1) should be improved as an effective means of removing

agricultural surpluses from the market and providing nutritious

high-quality foods to recipient agencies;

''(2) is inextricably linked to the agricultural support and

surplus removal programs; and

''(3) is an important mission of the Secretary of Agriculture.

''SEC. 3. COMMODITY DISTRIBUTION PROGRAM REFORMS.

''(a) Commodities Specifications. -

''(1) Development. - In developing specifications for

commodities acquired through price support, surplus removal, and

direct purchase programs of the Department of Agriculture that

are donated for use for programs or institutions described in

paragraph (2), the Secretary shall -

''(A) consult with the advisory council established under

paragraph (3);

''(B) consider both the results of the information received

from recipient agencies under subsection (f)(2) and the results

of an ongoing field testing program under subsection (g) in

determining which commodities and products, and in which form

the commodities and products, should be provided to recipient

agencies; and

''(C) give significant weight to the recommendations of the

advisory council established under paragraph (3) in ensuring

that commodities and products are -

''(i) of the quality, size, and form most usable by

recipient agencies; and

''(ii) to the maximum extent practicable, consistent with

the Dietary Guidelines for Americans published by the

Secretary of Agriculture and the Secretary of Health and

Human Services.

''(2) Applicability. - Paragraph (1) shall apply to -

''(A) the commodity distribution and commodity supplemental

food programs established under sections 4(a) and 5 of the

Agriculture and Consumer Protection Act of 1973 (Pub. L. 93-86)

(7 U.S.C. 612c note);

''(B) the program established under section 4(b) of the Food

Stamp Act of 1977 (7 U.S.C. 2013(b));

''(C) the school lunch, commodity distribution, and child

care food programs established under sections 6, 14, and 17 of

the Richard B. Russell National School Lunch Act (42 U.S.C.

1755, 1762a, and 1766);

''(D) the school breakfast program established under section

4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773);

''(E) the donation of surplus commodities to provide

nutrition services under section 311 of the Older Americans Act

of 1965 (42 U.S.C. 3030a); and

''(F) to the extent practicable -

''(i) the emergency food assistance program established

under the Emergency Food Assistance Act of 1983 (Public Law

100-237 (Pub. L. 98-8, title II); 7 U.S.C. 612c note) (7

U.S.C. 7501 et seq.); and

''(ii) programs under which food is donated to charitable

institutions.

''(3) Advisory council. - (A) The Secretary shall establish an

advisory council on the distribution of donated commodities to

recipient agencies. The Secretary shall appoint not less than

nine and not more than 15 members to the council, including -

''(i) representatives of recipient agencies, including food

banks;

''(ii) representatives of food processors and food

distributors;

''(iii) representatives of agricultural organizations;

''(iv) representatives of State distribution agency

directors; and

''(v) representatives of State advisory committees.

''(B) The council shall meet not less than semiannually with

appropriate officials of the Department of Agriculture and shall

provide guidance to the Secretary on regulations and policy

development with respect to specifications for commodities.

''(C) Members of the council shall serve without compensation

but shall receive reimbursement for necessary travel and

subsistence expenses incurred by them in the performance of the

duties of the committee.

''(D) The council shall report annually to the Secretary of

Agriculture, the Committee on Education and Labor (now Committee

on Education and the Workforce) and the Committee on Agriculture

of the House of Representatives, and the Committee on

Agriculture, Nutrition, and Forestry of the Senate.

''(E) The council shall expire on September 30, 1996.

''(b) Duties of Secretary With Respect to Provision of

Commodities. - With respect to the provision of commodities to

recipient agencies, the Secretary shall -

''(1) before the end of the 270-day period beginning on the

date of the enactment of this Act (Jan. 8, 1988) -

''(A) implement a system to provide recipient agencies with

options with respect to package sizes and forms of such

commodities, based on information received from such agencies

under subsection (f)(2), taking into account the duty of the

Secretary -

''(i) to remove surplus stocks of agricultural commodities

through the Commodity Credit Corporation;

''(ii) to purchase surplus agriculture commodities through

section 32 of the Agricultural Adjustment Act (7 U.S.C. 601

et seq.) (probably means section 32 of act Aug. 24, 1935,

which is classified to section 612c of this title); and

''(iii) to make direct purchases of agricultural

commodities and other foods for distribution to recipient

agencies under -

''(I) the commodity distribution and commodity supplemental food

programs established under sections 4(a) and 5 of the

Agriculture and Consumer Protection Act of 1973 (Pub. L.

93-86) (7 U.S.C. 612c note);

''(II) the program established under section 4(b) of the Food

Stamp Act of 1977 (7 U.S.C. 2013(b));

''(III) the school lunch, commodity distribution, and child care

food programs established under sections 6, 14, and 17 of

the Richard B. Russell National School Lunch Act (42 U.S.C.

1755, 1762a, and 1766);

''(IV) the school breakfast program established under section 4 of

the Child Nutrition Act of 1966 (42 U.S.C. 1773); and

''(V) the donation of surplus commodities to provide nutrition

services under section 311 of the Older Americans Act of

1965 (42 U.S.C. 3030a); and

''(B) implement procedures to monitor the manner in which

State distribution agencies carry out their responsibilities;

''(2) provide technical assistance to recipient agencies on the

use of such commodities, including handling, storage, and menu

planning and shall distribute to all recipient agencies suggested

recipes for the use of donated commodities and products (the

recipe cards shall be distributed as soon as practicable after

the date of enactment of this Act (Jan. 8, 1988) and updated on a

regular basis taking into consideration the Dietary Guidelines

for Americans published by the Secretary of Agriculture and the

Secretary of Health and Human Services, as in effect at the time

of the update of the recipe files);

''(3) before the end of the 120-day period beginning on the

date of the enactment of this Act (Jan. 8, 1988), implement a

system under which the Secretary shall -

''(A) make available to State agencies summaries of the

specifications with respect to such commodities and products;

and

''(B) require State agencies to make such summaries available

to recipient agencies on request;

''(4) implement a system for the dissemination to recipient

agencies and to State distribution agencies -

''(A) not less than 60 days before each distribution of

commodities by the Secretary is scheduled to begin, of

information relating to the types and quantities of such

commodities that are to be distributed; or

''(B) in the case of emergency purchases and purchases of

perishable fruits and vegetables, of as much advance

notification as is consistent with the need to ensure that

high-quality commodities are distributed;

''(5) before the expiration of the 90-day period beginning on

the date of the enactment of this Act (Jan. 8, 1988), establish

procedures for the replacement of commodities received by

recipient agencies that are stale, spoiled, out of condition, or

not in compliance with the specifications developed under

subsection (a)(1), including a requirement that the appropriate

State distribution agency be notified promptly of the receipt of

commodities that are stale, spoiled, out of condition, or not in

compliance with the specifications developed under subsection

(a)(1);

''(6) monitor the condition of commodities designated for

donation to recipient agencies that are being stored by or for

the Secretary to ensure that high quality is maintained;

''(7) establish a value for donated commodities and products to

be used by State agencies in the allocation or charging of

commodities against entitlements; and

''(8) require that each State distribution agency shall receive

donated commodities not more than 90 days after such commodities

are ordered by such agency, unless such agency specifies a longer

delivery period.

''(c) Qualifications for Purchase of Commodities. -

''(1) Offers for equal or less poundage. - Subject to

compliance by the Secretary with surplus removal responsibilities

under other provisions of law, the Secretary may not refuse any

offer in response to an invitation to bid with respect to a

contract for the purchase of entitlement commodities (provided in

standard order sizes) solely on the basis that such offer

provides less than the total amount of poundage for a destination

specified in such invitation.

''(2) Other qualifications. - The Secretary may not enter into

a contract for the purchase of entitlement commodities unless the

Secretary considers the previous history and current patterns of

the bidding party with respect to compliance with applicable meat

inspection laws and with other appropriate standards relating to

the wholesomeness of food for human consumption.

''(d) Duties of State Distribution Agencies. - On or before July

1, 1992, the Secretary shall by regulation require each State

distribution agency to -

''(1) evaluate its system for warehousing and distributing

donated commodities to recipient agencies designated in

subparagraphs (A) and (B) of section 13(3) (hereafter referred to

in this Act as 'child and elderly nutrition program recipient

agencies');

''(2) in the case of State distribution agencies that require

payment of fees by child and elderly nutrition program recipient

agencies for any aspect of warehousing or distribution, implement

the warehousing and distribution system that provides donated

commodities to such recipient agencies in the most efficient

manner, at the lowest cost to such recipient agencies, and at a

level that is not less than a basic level of services determined

by the Secretary;

''(3) in determining the most efficient and lowest cost system,

use commercial facilities for providing warehousing and

distribution services to such recipient agencies, unless the

State applies to the Secretary for approval to use other

facilities demonstrating that, when both direct and indirect

costs incurred by such recipient agencies are considered, such

other facilities are more efficient and provide services at a

lower total cost to such recipient agencies;

''(4) consider the preparation and storage capabilities of

recipient agencies when ordering donated commodities, including

capabilities of such agencies to handle commodity product forms,

quality, packaging, and quantities; and

''(5) in the case of any such agency that enters into a

contract with respect to processing of agricultural commodities

and their products for recipient agencies -

''(A) test the product of such processing with the recipient

agencies before entering into a contract for such processing;

and

''(B) develop a system for monitoring product acceptability.

''(e) Regulations. -

''(1) In general. - The Secretary shall provide by regulation

for -

''(A) whenever fees are charged to local recipient agencies,

the establishment of mandatory criteria for such fees based on

national standards and industry charges (taking into account

regional differences in such charges) to be used by State

distribution agencies for storage and deliveries of

commodities;

''(B) minimum performance standards to be followed by State

agencies responsible for intrastate distribution of donated

commodities and products;

''(C) procedures for allocating donated commodities among the

States; and

''(D) delivery schedules for the distribution of commodities

and products that are consistent with the needs of eligible

recipient agencies, taking into account the duty of the

Secretary -

''(i) to remove surplus stocks of agricultural commodities

through the Commodity Credit Corporation;

''(ii) to purchase surplus agricultural commodities through

section 32 of the Act entitled 'An Act to amend the

Agricultural Adjustment Act, and for other purposes',

approved August 24, 1935 (7 U.S.C. 612c); and

''(iii) to make direct purchases of agricultural

commodities and other foods for distribution to recipient

agencies under -

''(I) the commodity distribution and commodity supplemental food

programs established under sections 4(a) and 5 of the

Agriculture and Consumer Protection Act of 1973 (Pub. L.

93-86) (7 U.S.C. 612c note);

''(II) the program established under section 4(b) of the Food

Stamp Act of 1977 (7 U.S.C. 2013(b)); and

''(III) the school lunch, commodity distribution, and child care

food programs established under sections 6, 14, and 17 of

the Richard B. Russell National School Lunch Act (42 U.S.C.

1755, 1762a, and 1766);

''(IV) the school breakfast program established under section 4 of

the Child Nutrition Act of 1966 (42 U.S.C. 1773); and

''(V) the donation of surplus commodities to provide nutrition

services under section 311 of the Older Americans Act of

1965 (42 U.S.C. 3030a).

''(2) Time for promulgation of regulations. - The Secretary

shall promulgate -

''(A) regulations as required by paragraph (1)(D) before the

end of the 90-day period beginning on the date of enactment of

this Act (Jan. 8, 1988); and

''(B) regulations as required by subparagraphs (A), (B), and

(C) of paragraph (1) before the end of the 270-day period

beginning on such date.

''(f) Review of Provision of Commodities. -

''(1) In general. - Before the expiration of the 270-day period

beginning on the date of the enactment of this Act (Jan. 8,

1988), the Secretary shall establish procedures to provide for

systematic review of the costs and benefits of providing

commodities of the kind and quantity that are suitable to the

needs of recipient agencies.

''(2) Information from recipient agencies. -

''(A) In general. - The Secretary shall ensure that

information with respect to the types and forms of commodities

that are most useful to persons participating in programs

described in subsection (a)(2) is collected from recipient

agencies operating the programs.

''(B) Frequency. - The information shall be collected at

least once every 2 years.

''(C) Additional submissions. - The Secretary shall provide

the recipient agencies a means for voluntarily submitting

customer acceptability information.

''(g) Testing for Acceptability. - The Secretary shall establish

an ongoing field testing program for present and anticipated

commodity and product purchases to test product acceptability with

program participants. Test results shall be taken into

consideration in deciding which commodities and products, and in

what form the commodities and products, should be provided to

recipient agencies.

''(h) Buy American Provision. -

''(1) In general. - The Secretary shall require that recipient

agencies purchase, whenever possible, only food products that are

produced in the United States.

''(2) Waiver. - The Secretary may waive the requirement

established in paragraph (1) -

''(A) in the case of recipient agencies that have unusual or

ethnic preferences in food products; or

''(B) for such other circumstances as the Secretary considers

appropriate.

''(3) Exception. - The requirement established in paragraph (1)

shall not apply to recipient agencies in Alaska, Guam, American

Samoa, Puerto Rico, the Virgin Islands, or the Commonwealth of

the Northern Mariana Islands. The requirement established in

paragraph (1) shall apply to recipient agencies in Hawaii only

with respect to the purchase of pineapples.

''(i) Uniform Interpretation. - The Secretary shall take such

actions as are necessary to ensure that regional offices of the

Department of Agriculture interpret uniformly across the United

States policies and regulations issued to implement this section.

''(j) (Amended section 1755(e) of Title 42, The Public Health and

Welfare.)

''(k) Report. - Not later than January 1, 1989, the Secretary

shall submit to the Committee on Education and Labor and the

Committee on Agriculture of the House of Representatives and to the

Committee on Agriculture, Nutrition, and Forestry of the Senate a

report on the implementation and operation of this section.

''SEC. 3A. ADVANCE FUNDING FOR STATE OPTION CONTRACTS.

''(a) In General. - The Secretary may use the funds of the

Commodity Credit Corporation and funds made available to carry out

section 32 of the Act of August 24, 1935 (7 U.S.C. 612c) to pay for

all or a portion of the cost, as agreed on with the State

distribution agency, of food or the processing or packaging of food

on behalf of a State distribution agency.

''(b) Reimbursement. - In such cases, the State distribution

agency shall reimburse the Secretary for the agreed on cost. Any

funds received by the Secretary as reimbursement shall be deposited

to the credit of the Commodity Credit Corporation or section 32 of

the Act of August 24, 1935 (7 U.S.C. 612c), as appropriate. If the

State distribution agency fails, within 150 days of delivery, to

make the required reimbursement in full, the Secretary shall,

within 30 days, offset any outstanding amount against the

appropriate account.

''SEC. 4. FOOD BANK PROJECT.

''(a) Community Food Banks. - The Secretary shall carry out no

less than one demonstration project to provide and redistribute

agricultural commodities and food products thereof as authorized

under section 32 of the Act entitled 'An Act to amend the

Agricultural Adjustment Act, and for other purposes', approved

August 24, 1935 (7 U.S.C. 612c), to needy individuals and families

through community food banks. The Secretary may use a State agency

or any other food distribution system for such provision or

redistribution of section 32 agricultural commodities and food

products through community food banks under a demonstration

project.

''(b) Recordkeeping and Monitoring. - Each food bank

participating in the demonstration projects under this section

shall establish a recordkeeping system and internal procedures to

monitor the use of agricultural commodities and food products

provided under this section. The Secretary shall develop standards

by which the feasibility and effectiveness of the projects shall be

measured, and shall conduct an ongoing review of the effectiveness

of the projects.

''(c) Determination of Quantities, Varieties, and Types of

Commodities. - The Secretary shall determine the quantities,

varieties, and types of agricultural commodities and food products

to be made available under this section.

''(d) Effective Period. - This section shall be effective for the

period beginning on the date of enactment of this Act (Jan. 8,

1988).

''SEC. 7. ASSESSMENT AND REPORT TO CONGRESS.

''(a) Assessment. - The Comptroller General of the United States

shall monitor and assess the implementation by the Secretary of the

provisions of this Act (see section 1 set out above).

''(b) Report. - Before the expiration of the 18-month period

beginning on the date of the enactment of this Act (Jan. 8, 1988),

the Comptroller General shall submit to the Committee on Education

and Labor and the Committee on Agriculture of the House of

Representatives and the Committee on Agriculture, Nutrition, and

Forestry of the Senate a report of the findings of the assessment

conducted as required by subsection (a).

''SEC. 13. AUTHORITY TO TRANSFER COMMODITIES BETWEEN PROGRAMS.

''(a) Transfer. - Subject to subsection (b), the Secretary may

transfer any commodities purchased with appropriated funds for a

domestic food assistance program administered by the Secretary to

any other domestic food assistance program administered by the

Secretary if the transfer is necessary to ensure that the

commodities will be used while the commodities are still suitable

for human consumption.

''(b) Reimbursement. - The Secretary shall, to the maximum extent

practicable, provide reimbursement for the value of the commodities

transferred under subsection (a) from accounts available for the

purchase of commodities under the program receiving the

commodities.

''(c) Crediting. - Any reimbursement made under subsection (b)

shall -

''(1) be credited to the accounts that incurred the costs when

the transferred commodities were originally purchased; and

''(2) be available for the purchase of commodities with the

same limitations as are provided for appropriated funds for the

reimbursed accounts for the fiscal year in which the transfer

takes place.

''SEC. 14. AUTHORITY TO RESOLVE CLAIMS.

''(a) In General. - The Secretary may determine the amount of,

settle, and adjust all or part of a claim arising under a domestic

food assistance program administered by the Secretary.

''(b) Waiver. - The Secretary may waive a claim described in

subsection (a) if the Secretary determines that a waiver would

serve the purposes of the program.

''(c) Authority of the Attorney General. - Nothing in this

section diminishes the authority of the Attorney General under

section 516 of title 28, United States Code, or any other provision

of law, to supervise and conduct litigation on behalf of the United

States.

''SEC. 15. PAYMENT OF COSTS ASSOCIATED WITH REMOVAL OF COMMODITIES

THAT POSE A HEALTH OR SAFETY RISK.

''(a) In General. - The Secretary may use funds available to

carry out section 32 of the Act of August 24, 1935 (49 Stat. 774,

chapter 641; 7 U.S.C. 612c), that are not otherwise committed, for

the purpose of reimbursing States for State and local costs

associated with the removal of commodities distributed under any

domestic food assistance program administered by the Secretary if

the Secretary determines that the commodities pose a health or

safety risk.

''(b) Allowable Costs. - The costs -

''(1) may include costs for storage, transportation,

processing, and destruction of the commodities described in

subsection (a); and

''(2) shall be subject to the approval of the Secretary.

''(c) Replacement Commodities. -

''(1) In general. - The Secretary may use funds described in

subsection (a) for the purpose of purchasing additional

commodities if the purchase will expedite replacement of the

commodities described in subsection (a).

''(2) Recovery. - Use of funds under paragraph (1) shall not

restrict the Secretary from recovering funds or services from a

supplier or other entity regarding the commodities described in

subsection (a).

''(d) Crediting of Recovered Funds. - Funds recovered from a

supplier or other entity regarding the commodities described in

subsection (a) shall -

''(1) be credited to the account available to carry out section

32 of the Act of August 24, 1935 (49 Stat. 774, ch. 641; 7 U.S.C.

612c), to the extent the funds represent expenditures from that

account under subsections (a) and (c); and

''(2) remain available to carry out the purposes of section 32

of that Act until expended.

''(e) Termination Date. - The authority provided by this section

terminates effective October 1, 2003.

''SEC. 16. AUTHORITY TO ACCEPT COMMODITIES DONATED BY FEDERAL

SOURCES.

''(a) In General. - The Secretary may accept donations of

commodities from any Federal agency, including commodities of

another Federal agency determined to be excess personal property

pursuant to section 202(d) of the Federal Property and

Administrative Services Act of 1949 (40 U.S.C. 483(d)) (now 40

U.S.C. 525).

''(b) Use. - The Secretary may donate the commodities received

under subsection (a) to States for distribution through any

domestic food assistance program administered by the Secretary.

''(c) Payment. - Notwithstanding section 202(d) of the Federal

Property and Administrative Services Act of 1949 (40 U.S.C. 483(d))

(now 40 U.S.C. 525), the Secretary shall not be required to make

any payment in connection with the commodities received under

subsection (a).

''SEC. 17. COMMODITY DONATIONS.

''(a) In General. - Notwithstanding any other provision of law

concerning commodity donations, any commodities acquired in the

conduct of the operations of the Commodity Credit Corporation and

any commodities acquired under section 32 of the Act of August 24,

1935 (7 U.S.C. 612c), to the extent that the commodities are in

excess of the quantities of commodities that are essential to carry

out other authorized activities of the Commodity Credit Corporation

and the Secretary (including any quantity specifically reserved for

a specific purpose), may be used for any program authorized to be

carried out by the Secretary that involves the acquisition of

commodities for use in a domestic feeding program, including any

program conducted by the Secretary that provides commodities to

individuals in cases of hardship.

''(b) Programs. - A program described in subsection (a) includes

a program authorized by -

''(1) the Emergency Food Assistance Act of 1983 (7 U.S.C. 7501

et seq.);

''(2) the Richard B. Russell National School Lunch Act (42

U.S.C. 1751 et seq.);

''(3) the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.);

''(4) the Older Americans Act of 1965 (42 U.S.C. 3001 et seq.);

or

''(5) such other laws as the Secretary determines to be

appropriate.

''SEC. 18. DEFINITIONS.

''For purposes of this Act:

''(1) The term 'donated commodities' means agricultural

commodities and their products that are donated by the Secretary

to recipient agencies.

''(2) The term 'entitlement commodities' means agricultural

commodities and their products that are donated and charged by

the Secretary against entitlements established under programs

authorized by statute to receive such commodities.

''(3) The term 'recipient agency' means -

''(A) a school, school food service authority, or other

agency authorized under the Richard B. Russell National School

Lunch Act (42 U.S.C. 1751 et seq.) or the Child Nutrition Act

of 1966 (42 U.S.C. 1771 et seq.) to operate breakfast programs,

lunch programs, child care food programs, summer food service

programs, or similar programs and to receive donations of

agricultural commodities and their products acquired by the

Secretary through price support, surplus removal, or direct

purchase;

''(B) a nutrition program for the elderly authorized under

title III of the Older Americans Act of 1965 (42 U.S.C. 3021 et

seq.) to receive donations of agricultural commodities and

their products acquired by the Secretary through price support,

surplus removal, or direct purchase;

''(C) an agency or organization distributing commodities

under the commodity supplemental food program established in

section 4 of the Agriculture and Consumer Protection Act of

1973 (Pub. L. 93-86) (7 U.S.C. 612c note);

''(D) any charitable institution, summer camp, or assistance

agency for the food distribution program on Indian reservations

authorized under section 4 of the Agriculture and Consumer

Protection Act of 1973 (7 U.S.C. 612c note) to receive

donations of agricultural commodities and their products

acquired by the Secretary through price support, surplus

removal, or direct purchase; or

''(E) an agency or organization distributing commodities

under a program established in section 202 of the Emergency

Food Assistance Act of 1983 (7 U.S.C. 612c note) (7 U.S.C.

7502).

''(4) The term 'State distribution agency' means a State agency

responsible for the intrastate distribution of donated

commodities.

''(5) The term 'Secretary' means Secretary of Agriculture,

unless the context specifies otherwise.

''SEC. 19. GENERAL EFFECTIVE DATE.

''Except as otherwise provided in this Act, this Act and the

amendments made by this Act (see section 1 above) shall take effect

on the date of the enactment of this Act (Jan. 8, 1988).''

(Pub. L. 107-171, title IV, Sec. 4202(b), May 13, 2002, 116 Stat.

330, provided that: ''The amendments made by this section (amending

sections 17 to 19 of Pub. L. 100-237, set out above) take effect on

the date of enactment of this Act (May 13, 2002).''

(Pub. L. 106-78, Sec. 752(b)(1), which directed amendment of

section 13(3)(A) of Pub. L. 100-237, was executed by amending

section 17(3)(A) (now 18(3)(A)) of Pub. L. 100-237, set out above,

to reflect the probable intent of Congress.)

FOOD BANK DEMONSTRATION PROJECT

Pub. L. 100-232, Sec. 3, Jan. 5, 1988, 101 Stat. 1566, authorized

Secretary of Agriculture to carry out no less than one

demonstration project to provide and redistribute agricultural

commodities and food products thereof as authorized under this

section to needy individuals and families through community food

banks and to use State agency or any other food distribution system

for such provision or redistribution of commodities and food

products, further required each food bank participating in

demonstration projects to establish recordkeeping system and

internal procedures to monitor use of agricultural commodities and

food products, authorized Secretary to determine quantities,

varieties, and types of agricultural commodities and food products

to be made available, and further provided for termination of

authority on Dec. 31, 1990, and annual progress reports by

Secretary, prior to repeal by Pub. L. 104-193, title VIII, Sec.

872, Aug. 22, 1996, 110 Stat. 2346.

CONTINUATION OF DISTRIBUTION OF AGRICULTURAL COMMODITIES TO

LOW-INCOME ELDERLY AT EXISTING LEVELS

Section 1562(d) of Pub. L. 99-198 provided that:

''Notwithstanding any other provision of law, in implementing the

commodity supplemental food program under section 4 of the

Agriculture and Consumer Protection Act of 1973 (Pub. L. 93-86, set

out as a note below), the Secretary of Agriculture shall allow

agencies distributing agricultural commodities to low-income

elderly people under such programs on the date of enactment of this

Act (Dec. 23, 1985) to continue such distribution at levels no

lower than existing caseloads.''

REPORT TO CONGRESS ON ACTIVITIES OF PROGRAM CONDUCTED UNDER

TEMPORARY EMERGENCY FOOD ASSISTANCE ACT OF 1983

Section 1571 of Pub. L. 99-198 provided that not later than Apr.

1, 1987, Secretary of Agriculture was to report to Congress on

activities of program conducted under Temporary Emergency Food

Assistance Act of 1983 (7 U.S.C. 7501 et seq.), which was to

include information on volume and types of commodities distributed

under program, types of State and local agencies receiving

commodities for distribution under program, populations served

under program and their characteristics, Federal, State, and local

costs of commodity distribution operations under program (including

transportation, storage, refrigeration, handling, distribution, and

administrative costs), and amount of Federal funds provided to

cover State and local costs under program, prior to repeal by Pub.

L. 104-193, title VIII, Sec. 871(f), Aug. 22, 1996, 110 Stat. 2345.

EMERGENCY FOOD ASSISTANCE ACT OF 1983

Pub. L. 98-8, title II, Mar. 24, 1983, 97 Stat. 35, as amended by

Pub. L. 98-92, Sec. 2, Sept. 2, 1983, 97 Stat. 608; Pub. L. 99-198,

title XV, Sec. 1562(e)(1), 1563-1566, 1567(c), 1568-1570, Dec. 23,

1985, 99 Stat. 1590-1594; Pub. L. 100-77, title VIII, Sec. 811-814,

July 22, 1987, 101 Stat. 536-538; Pub. L. 100-435, title I, Sec.

101-105, Sept. 19, 1988, 102 Stat. 1647-1650; Pub. L. 101-624,

title XVII, Sec. 1772(a)-(h)(1), Nov. 28, 1990, 104 Stat. 3808,

3809; Pub. L. 102-237, title IX, Sec. 922(b), Dec. 13, 1991, 105

Stat. 1888; Pub. L. 104-66, title I, Sec. 1011(k), Dec. 21, 1995,

109 Stat. 710; Pub. L. 104-127, title IV, Sec. 403, Apr. 4, 1996,

110 Stat. 1029; Pub. L. 104-193, title VIII, Sec. 871(a)-(e), Aug.

22, 1996, 110 Stat. 2343-2345, known as the Emergency Food

Assistance Act of 1983, and formerly set out as a note under this

section, established temporary program authorizing Secretary of

Agriculture to distribute excess food commodities to public or

nonprofit organizations administering certain activities such as

school lunch programs, elderly nutrition programs, activities of

charitable institutions that serve meals to needy persons, and

disaster relief programs. As amended by Pub. L. 104-193, the

program became permanent, and title II of Pub. L. 98-8 was

transferred to chapter 102 (Sec. 7501 et seq.) of this title.

AGRICULTURAL EXPORT PROMOTION

Pub. L. 97-253, title I, Sec. 135, Sept. 8, 1982, 96 Stat. 772,

authorized Secretary of Agriculture, for each of fiscal years 1983,

1984, and 1985, to use up to $190,000,000 of Commodity Credit

Corporation funds to carry out export activities through Commodity

Credit Corporation under provisions of law in effect on Sept. 8,

1982, including activities authorized under amendments made by

section 405(d) of Pub. L. 98-623 to sections 1707a and 1732 of this

title and section 714c(f) of Title 15, Commerce and Trade, even if

those export activities were not included in budget program of

Corporation.

(Amendments made by section 405(d) of Pub. L. 98-623, amending

sections 1707a and 1732 of this title and section 714c(f) of Title

15, Commerce and Trade, to be considered as having taken effect

before Sept. 8, 1982, for purposes of section 135 of Pub. L.

97-253, set out above, see section 405(d) of Pub. L. 98-623, set

out as an Effective Date of 1984 Amendment note under section 714c

of Title 15, Commerce and Trade.)

DISTRIBUTION OF COMMODITIES TO INDIVIDUALS IN CASES OF HARDSHIP

Pub. L. 106-78, title VII, Sec. 709, Oct. 22, 1999, 113 Stat.

1161, which provided that commodities acquired by the Department in

connection with Commodity Credit Corporation and price support

operations under this section could be used, as authorized by this

section and section 714c of Title 15, Commerce and Trade, to

provide commodities to individuals in cases of hardship as

determined by the Secretary of Agriculture, was from the

Agriculture, Rural Development, Food and Drug Administration, and

Related Agencies Appropriation Act, 2000, and was not repeated in

subsequent appropriation acts. Similar provisions were contained

in the following prior appropriations acts:

Pub. L. 105-277, div. A, Sec. 101(a) (title VII, Sec. 709), Oct.

21, 1998, 112 Stat. 2681, 2681-26.

Pub. L. 105-86, title VII, Sec. 709, Nov. 18, 1997, 111 Stat.

2105.

Pub. L. 104-180, title VII, Sec. 709, Aug. 6, 1996, 110 Stat.

1597.

Pub. L. 104-37, title VII, Sec. 709, Oct. 21, 1995, 109 Stat.

330.

Pub. L. 103-330, title VII, Sec. 709, Sept. 30, 1994, 108 Stat.

2467.

Pub. L. 103-111, title VII, Sec. 710, Oct. 21, 1993, 107 Stat.

1079.

Pub. L. 102-341, title VII, Sec. 715, Aug. 14, 1992, 106 Stat.

908.

Pub. L. 102-142, title VII, Sec. 718, Oct. 28, 1991, 105 Stat.

913.

Pub. L. 101-506, title VI, Sec. 619, Nov. 5, 1990, 104 Stat.

1347.

Pub. L. 101-161, title VI, Sec. 619, Nov. 21, 1989, 103 Stat.

983.

Pub. L. 100-460, title VI, Sec. 619, Oct. 1, 1988, 102 Stat.

2261.

Pub. L. 100-202, Sec. 101(k) (title VI, Sec. 619), Dec. 22, 1987,

101 Stat. 1329-322, 1329-355.

Pub. L. 99-500, Sec. 101(a) (title VI, Sec. 619), Oct. 18, 1986,

100 Stat. 1783, 1783-29, and Pub. L. 99-591, Sec. 101(a) (title VI,

Sec. 619), Oct. 30, 1986, 100 Stat. 3341, 3341-29.

Pub. L. 99-190, Sec. 101(a) (H.R. 3037, title VI, Sec. 619), Dec.

19, 1985, 99 Stat. 1185.

Pub. L. 98-473, title I, Sec. 101(a) (H.R. 5743, title VI, Sec.

619), Oct. 12, 1984, 98 Stat. 1837.

Pub. L. 98-151, Sec. 101(d) (H.R. 3223, title VI, Sec. 619), Nov.

14, 1983, 97 Stat. 972.

Pub. L. 97-370, title VI, Sec. 620, Dec. 18, 1982, 96 Stat. 1811.

Pub. L. 97-103, title VI, Sec. 620, Dec. 23, 1981, 95 Stat. 1490.

COMMODITY DISTRIBUTION PROGRAM; PURCHASE OF AGRICULTURAL

COMMODITIES; FURNISHING COMMODITIES TO SUMMER CAMPS

Pub. L. 93-86, Sec. 4, Aug. 10, 1973, 87 Stat. 249, as amended by

Pub. L. 93-347, Sec. 1, July 12, 1974, 88 Stat. 340; Pub. L.

94-273, Sec. 2(1), Apr. 21, 1976, 90 Stat. 375; Pub. L. 95-113,

title XIII, Sec. 1302(a)(1), 1304(a), Sept. 29, 1977, 91 Stat. 979,

980, Pub. L. 97-98, title XIII, Sec. 1334, Dec. 22, 1981, 95 Stat.

1292; Pub. L. 98-8, title II, Sec. 207, Mar. 24, 1983, 97 Stat. 36;

Pub. L. 98-92, Sec. 3, Sept. 2, 1983, 97 Stat. 612; Pub. L. 99-198,

title XV, Sec. 1562(a), Dec. 23, 1985, 99 Stat. 1590; Pub. L.

101-624, title XVII, Sec. 1771(a), (b)(1), (c)(1), 1772(h)(2), Nov.

28, 1990, 104 Stat. 3806, 3807, 3809; Pub. L. 104-127, title IV,

Sec. 402(a), Apr. 4, 1996, 110 Stat. 1028; Pub. L. 107-171, title

IV, Sec. 4201(a), May 13, 2002, 116 Stat. 328, provided that:

''(a) Notwithstanding any other provision of law, the Secretary

may, during fiscal years 1991 through 2007, purchase and distribute

sufficient agricultural commodities with funds appropriated from

the general fund of the Treasury to maintain the traditional level

of assistance for food assistance programs as are authorized by

law, including but not limited to distribution to institutions

(including hospitals and facilities caring for needy infants and

children), supplemental feeding programs serving women, infants,

and children or elderly persons, or both, wherever located,

disaster areas, summer camps for children, the United States Trust

Territory of the Pacific Islands, and Indians, whenever a tribal

organization requests distribution of federally donated foods

pursuant to section 4(b) of the Food Stamp Act of 1977 (section

2013(b) of this title). In providing for commodity distribution to

Indians, the Secretary shall improve the variety and quantity of

commodities supplied to Indians in order to provide them an

opportunity to obtain a more nutritious diet.

''(b) The Secretary may furnish commodities to summer camps for

children in which the number of adults participating in camp

activities as compared with the number of children 18 years of age

and under so participating is not unreasonable in light of the

nature of such camp and the characteristics of the children in

attendance.''

''(c) Whoever embezzles, willfully misapplies, steals or obtains

by fraud any agricultural commodity or its products (or any funds,

assets, or property deriving from donation of such commodities)

provided under this section, or under section 416 of the

Agricultural Act of 1949 (7 U.S.C. 1431), section 32 of the Act of

August 24, 1935 (7 U.S.C. 612c), section 709 of the Food and

Agriculture Act of 1965 (7 U.S.C. 1446a-1), or the Emergency Food

Assistance Act of 1983 (7 U.S.C. 7501 et seq.), whether received

directly or indirectly from the United States Department of

Agriculture, or whoever receives, conceals, or retains such

commodities, products, funds, assets, or property for personal use

or gain, knowing such commodities, products, funds, assets, or

property have been embezzled, willfully misapplied, stolen, or

obtained by fraud shall, if such commodities, products, funds,

assets, or property are of a value of $100 or more, be fined not

more than $10,000 or imprisoned not more than five years, or both,

or if such commodities, products, funds, assets, or property are of

value of less than $100, shall be fined not more than $1,000 or

imprisoned for not more than one year, or both.''

(Amendment by section 1771(a) of Pub. L. 101-624 effective Oct.

1, 1990, and amendments by sections 1771(b)(1), (c)(1), and

1772(h)(2) of Pub. L. 101-624 effective Nov. 28, 1990, see section

1781(b)(1), (2) of Pub. L. 101-624, set out as an Effective Date of

1990 Amendment note under section 2012 of this title.)

(Section 1334 of Pub. L. 97-98 provided in part that the

amendment of section 4 of Pub. L. 93-86 by Pub. L. 97-98 is

effective Oct. 1, 1981.)

(Section 1302(b) and section 1304(a) in part, both of Pub. L.

95-113, provided that the amendment of subsecs. (a) and (b) of

section 4 of Pub. L. 93-86 and the repeal of subsec. (c) of section

4 of Pub. L. 93-86 are effective Oct. 1, 1977.)

(Pub. L. 93-233, Sec. 8(b)(1), Dec. 31, 1973, 87 Stat. 956, as

amended by Pub. L. 93-335, Sec. 1(b), July 8, 1974, 88 Stat. 291;

Pub. L. 94-44, Sec. 3(b), June 28, 1975, 89 Stat. 235; Pub. L.

94-365, Sec. 2(2), July 14, 1976, 90 Stat. 990; Pub. L. 95-59, Sec.

3(2), June 30, 1977, 91 Stat. 255, eff. July 1, 1977, provided

that: ''Section 4(c) of Public Law 93-86 shall not be effective for

the period ending September 30, 1978.'') (For repeal of section

4(c) of Pub. L. 93-86, see section 1304(a) of Pub. L. 95-113.).

(For termination of Trust Territory of the Pacific Islands, see

note set out preceding section 1681 of Title 48, Territories and

Insular Possessions.)

COMMODITY SUPPLEMENTAL FOOD PROGRAM

Pub. L. 107-171, title IV, Sec. 4201(c), May 13, 2002, 116 Stat.

329, provided that:

''(1) In general. - Not later than 30 days after the date of

enactment of this Act (May 13, 2002), of the funds of the Commodity

Credit Corporation, the Secretary of Agriculture shall make

available an amount equal to the amount that the Secretary of

Agriculture determines to be necessary to permit each State that

began administering the commodity supplemental food program under

the Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 612c

note; Public Law 93-86) in the 2000 caseload cycle to administer

the program, through the 2002 caseload cycle, at a caseload level

that is not less than the originally assigned caseload level of the

State.

''(2) Provision to states. - The Secretary shall provide to each

State described in paragraph (1) for the purpose described in that

paragraph the funds made available under that paragraph.''

Section 5 of Pub. L. 93-86, as added by Pub. L. 95-113, title

XIII, Sec. 1304(b)(2), Sept. 29, 1977, 91 Stat. 980, and amended by

Pub. L. 97-98, title XIII, Sec. 1335, Dec. 22, 1981, 95 Stat. 1293;

Pub. L. 98-8, title II, Sec. 209, Mar. 24, 1983, 97 Stat. 36, as

amended Pub. L. 98-92, Sec. 2(8), Sept. 2, 1983, 97 Stat. 611; Pub.

L. 99-198, title XV, Sec. 1562(b), (c), (e)(2), Dec. 23, 1985, 99

Stat. 1590; Pub. L. 100-435, title I, Sec. 130, redesignated Sec.

5(d)(2) of Pub. L. 93-86 by Pub. L. 101-624, title XVII, Sec.

1774(c)(2)(A), (B), Nov. 28, 1990, 104 Stat. 3813; Pub. L. 101-624,

title XVII, Sec. 1771(c)(2)-(f), 1774(c)(2)(C), Nov. 28, 1990, 104

Stat. 3807, 3808, 3813; Pub. L. 102-237, title I, Sec. 118(a),

title IX, Sec. 922(c), Dec. 13, 1991, 105 Stat. 1841, 1889; Pub. L.

104-127, title IV, Sec. 402(b), Apr. 4, 1996, 110 Stat. 1028; Pub.

L. 104-193, title I, Sec. 109(f), Aug. 22, 1996, 110 Stat. 2170;

Pub. L. 105-33, title V, Sec. 5514(b), Aug. 5, 1997, 111 Stat. 620;

Pub. L. 107-171, title IV, Sec. 4201(b), May 13, 2002, 116 Stat.

328, provided that:

''(a) Grants Per Assigned Caseload Slot. -

''(1) In general. - In carrying out the program under section 4

(set out as a note above) (referred to in this section as the

'commodity supplemental food program'), for each of fiscal years

2003 through 2007, the Secretary shall provide to each State

agency from funds made available to carry out that section

(including any such funds remaining available from the preceding

fiscal year), a grant per assigned caseload slot for

administrative costs incurred by the State agency and local

agencies in the State in operating the commodity supplemental

food program.

''(2) Amount of grants. -

''(A) Fiscal year 2003. - For fiscal year 2003, the amount of

each grant per assigned caseload slot shall be equal to the

amount of the grant per assigned caseload slot for

administrative costs in 2001, adjusted by the percentage change

between -

''(i) the value of the State and local government price

index, as published by the Bureau of Economic Analysis of the

Department of Commerce, for the 12-month period ending June

30, 2001; and

''(ii) the value of that index for the 12-month period

ending June 30, 2002.

''(B) Fiscal years 2004 through 2007. - For each of fiscal

years 2004 through 2007, the amount of each grant per assigned

caseload slot shall be equal to the amount of the grant per

assigned caseload slot for the preceding fiscal year, adjusted

by the percentage change between -

''(i) the value of the State and local government price

index, as published by the Bureau of Economic Analysis of the

Department of Commerce, for the 12-month period ending June

30 of the second preceding fiscal year; and

''(ii) the value of that index for the 12-month period

ending June 30 of the preceding fiscal year.

''(b) During the first three months of any commodity supplemental

food program, or until such program reaches its projected caseload

level, whichever comes first, the Secretary shall pay those

administrative costs necessary to commence the program

successfully: Provided, That in no event shall administrative costs

paid by the Secretary for any fiscal year exceed the limitation

established in subsection (a) of this section.

''(c) Administrative costs for the purposes of the commodity

supplemental food program shall include, but not be limited to,

expenses for information and referral, operation, monitoring,

nutrition education, start-up costs, and general administration,

including staff, warehouse and transportation personnel, insurance,

and administration of the State or local office.

''(d)(1) During each fiscal year the commodity supplemental food

program is in operation, the types and varieties of commodities and

their proportional amounts shall be determined by the Secretary,

but, if the Secretary proposes to make any significant changes in

the types, varieties, or proportional amounts from those that were

available or were planned at the beginning of the fiscal year (or

as were available during the fiscal year ending June 30, 1976,

whichever is greater) the Secretary shall report such changes

before implementation to the Committee on Agriculture of the House

of Representatives and the Committee on Agriculture, Nutrition, and

Forestry of the Senate.

''(2) Notwithstanding any other provision of law, the Commodity

Credit Corporation shall, to the extent that the Commodity Credit

Corporation inventory levels permit, provide not less than

9,000,000 pounds of cheese and not less than 4,000,000 pounds of

nonfat dry milk in each of the fiscal years 1991 through 2007 to

the Secretary of Agriculture. The Secretary shall use such amounts

of cheese and nonfat dry milk to carry out the commodity

supplemental food program before the end of each fiscal year.

''(e) The Secretary of Agriculture is authorized to issue such

regulations as may be necessary to carry out the commodity

supplemental food program.

''(f) The Secretary shall, in any fiscal year, approve

applications of additional sites for the program, including sites

that serve only elderly persons, in areas in which the program

currently does not operate to the full extent that this can be done

within the appropriations available for the program for the fiscal

year and without reducing actual participation levels (including

participation of elderly persons under subsection (g)) in areas in

which the program is in effect.

''(g) If a local agency that administers the commodity

supplemental food program determines that the amount of funds made

available to the agency to carry out this section exceeds the

amount of funds necessary to provide assistance under such program

to women, infants, and children, the agency, with the approval of

the Secretary, may permit low-income elderly persons (as defined by

the Secretary) to participate in and be served by such program.

''(h) Each State agency administering a commodity supplemental

food program serving women, infants, and children shall -

''(1) ensure that written information concerning food stamps,

the State program funded under part A of title IV of the Social

Security Act (42 U.S.C. 601 et seq.), and the child support

enforcement program under part D of title IV of the Social

Security Act (42 U.S.C. 651 et seq.) is provided on at least one

occasion to each adult who applies for or participates in the

commodity supplemental food program;

''(2) provide each local agency with materials showing the

maximum income limits, according to family size, applicable to

pregnant women, infants, and children up to age 6 under the

medical assistance program established under title XIX of the

Social Security Act (42 U.S.C. 1396 et seq.) (hereinafter

referred to in this section as the 'medicaid program') which

materials may be identical to those provided under section

17(e)(3) of the Child Nutrition Act of 1966 (42 U.S.C.

1786(e)(3)); and

''(3) ensure that local agencies provide to pregnant, breast

feeding and post partum women, and adults applying on behalf of

infants or children, who apply to the commodity supplemental food

program, or who reapply to such program, written information

about the medicaid program and referral to the program or to

agencies authorized to determine presumptive eligibility for the

medicaid program, if the individuals are not participating in the

medicaid program.

''(i) Each State agency administering a commodity supplemental

food program serving elderly persons shall ensure that written

information is provided on at least one occasion to each elderly

participant in or applicant for the commodity supplemental food

program for the elderly concerning -

''(1) food stamps provided under the Food Stamp Act of 1977 (7

U.S.C. 2011 et seq.);

''(2) the supplemental security income benefits provided under

title XVI of the Social Security Act (42 U.S.C. 1381 et seq.);

and

''(3) medical assistance provided under title XIX of such Act

(42 U.S.C. 1396 et seq.) (including medical assistance provided

to a qualified medicare beneficiary (as defined in section

1905(p) of such Act (42 U.S.C. 1396d(5)))).

''(j)(1) If the Secretary must pay a significantly higher than

expected price for one or more types of commodities purchased under

the commodity supplemental food program, the Secretary shall

promptly determine whether the price is likely to cause the number

of persons that can be served in the program in a fiscal year to

decline.

''(2) If the Secretary determines that such a decline would

occur, the Secretary shall promptly notify the State agencies

charged with operating the program of the decline and shall ensure

that a State agency notify all local agencies operating the program

in the State of the decline.

''(k)(1) The Secretary or a designee of the Secretary shall have

the authority to -

''(A) determine the amount of, settle, and adjust any claim

arising under the commodity supplemental food program; and

''(B) waive such a claim if the Secretary determines that to do

so will serve the purposes of the program.

''(2) Nothing contained in this subsection shall be construed to

diminish the authority of the Attorney General of the United States

under section 516 of title 28, United States Code, to conduct

litigation on behalf of the United States.

''(l) Use of Approved Food Safety Technology. -

''(1) In general. - In acquiring commodities for distribution

through a program specified in paragraph (2), the Secretary shall

not prohibit the use of any technology to improve food safety

that -

''(A) has been approved by the Secretary; or

''(B) has been approved or is otherwise allowed by the

Secretary of Health and Human Services.

''(2) Programs. - A program referred to in paragraph (1) is a

program authorized under -

''(A) this Act (see Short Title of 1973 Amendment note set

out under section 1281 of this title);

''(B) the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.);

''(C) the Emergency Food Assistance Act of 1983 (7 U.S.C.

7501 et seq.);

''(D) the Richard B. Russell National School Lunch Act (42

U.S.C. 1751 et seq.); or

''(E) the Child Nutrition Act of 1966 (42 U.S.C. 1771 et

seq.).''

(Amendment by Pub. L. 107-171 (amending section 5 of Pub. L.

93-86, set out above) effective Oct. 1, 2002, except as otherwise

provided, see section 4405 of Pub. L. 107-171, set out as an

Effective Date note under section 1161 of Title 2, The Congress.)

(Pub. L. 107-171, title IV, Sec. 4201(d), May 13, 2002, 116 Stat.

329, provided that: ''The amendment made by subsection (b)(3)

(amending section 5 of Pub. L. 93-86, set out above) takes effect

on the date of enactment of this Act (May 13, 2002).'')

(Amendment by section 922(c) of Pub. L. 102-237 effective and

implemented no later than Feb. 1, 1992, see section 1101(d)(1) of

Pub. L. 102-237, set out as an Effective Date of 1991 Amendment

note under section 1421 of this title.)

(Amendment by sections 1771(c)(2) and 1774(c) of Pub. L. 101-624

effective Nov. 28, 1990; amendment by section 1771(d) of Pub. L.

101-624 effective Oct. 1, 1990, and amendments by section 1771(e)

and (f) of Pub. L. 101-624 effective and implemented the first day

of the month beginning 120 days after the publication of

implementing regulations which shall be promulgated not later than

Oct. 1, 1991, see section 1781(a), (b)(1), (2) of Pub. L. 101-624,

set out as an Effective Date of 1990 Amendment note under section

2012 of this title.)

(Section 1335 of Pub. L. 97-98 provided in part that the

amendment to section 5 of Pub. L. 93-86 by Pub. L. 97-98 is

effective Oct. 1, 1981.)

(Section 1304(b) of Pub. L. 95-113 provided in part that section

5 of Pub. L. 93-86 is effective Oct. 1, 1977.)

DIRECT DISTRIBUTION PROGRAMS FOR DIET OF NEEDY CHILDREN AND

LOW-INCOME PERSONS SUFFERING FROM GENERAL AND CONTINUED HUNGER;

ADDITIONAL FUNDS

Section 6 of Pub. L. 92-32, June 30, 1971, 85 Stat. 86,

authorized the Secretary of Agriculture to use during the fiscal

year ending June 30, 1972, not to exceed $20,000,000 in funds from

section 612c of this title, in addition to funds appropriated or

otherwise available, to carry out in any area of the United States

direct distribution or other programs, without regard to whether

such area is under the food stamp program or a system of direct

distribution, in order to provide in the vicinity of their

residence an adequate diet to needy children and low income persons

suffering, through no fault of their own, from general and

continued hunger; provided that food made available to needy

children was to be in addition to food made available under the

National School Lunch Act or the Child Nutrition Act of 1966; and

authorized payment of administrative costs incurred by state or

local agencies in carrying out programs for needy children.

USE OF FUNDS FOR SCHOOL LUNCH PROGRAM UNDER SECTION 1753 OF TITLE

42

Use of funds appropriated under this section for implementing

section 1753 of Title 42 till supplemental appropriation is made

and reimbursement of such funds, see section 4(a) of Pub. L.

92-433, set out as a note under section 1753 of Title 42, The

Public Health and Welfare.

TRANSFER OF FUNDS TO SCHOOLS IN NEED OF ADDITIONAL ASSISTANCE IN

SCHOOL BREAKFAST PROGRAM

Authorization for transfer of funds under this section to assist

schools in need of additional funds in school breakfast program,

see note set out under section 1773 of Title 42, The Public Health

and Welfare.

ADDITIONAL FUNDS FOR FOOD SERVICE PROGRAMS FOR CHILDREN;

APPORTIONMENT TO STATES; SPECIAL ASSISTANCE; CONSULTATION WITH

CHILD NUTRITION COUNCIL; REIMBURSEMENT FROM SUPPLEMENTAL

APPROPRIATION

Additional funds for food service programs for children from

appropriations under this section, apportionment to States, special

assistance programs, consultation with National Advisory Council on

Child Nutrition, and reimbursement from supplemental appropriation,

see note set out under section 1753 of Title 42, The Public Health

and Welfare.

MEAL AND FLOUR FOR RELIEF

Act Aug. 9, 1955, ch. 671, 69 Stat. 608, authorized the Secretary

of Agriculture upon specific request of the Governor of any State,

during the period commencing Aug. 9, 1955 and ending June 30, 1957,

to make available, pursuant to clause (2) of this section for

distribution by State agencies, other than institutions and

schools, directly to families and persons determined by appropriate

State or local public welfare agencies to be in need, wheat flour

and corn meal in such quantities as the Secretary of Agriculture

determines can be effectively distributed and utilized within such

period without regard to the requirement contained in this section,

that such funds be devoted principally to perishable nonbasic

agricultural commodities and their products.

ELIGIBILITY OF SUPPLEMENTAL SECURITY INCOME RECIPIENTS FOR FOOD

STAMPS DURING THE PERIOD ENDING SEPTEMBER 30, 1978

Pub. L. 93-233, Sec. 8(b)(3), Dec. 31, 1973, 87 Stat. 956, as

amended by Pub. L. 93-335, Sec. 1(b), July 8, 1974, 88 Stat. 291;

Pub. L. 94-44, Sec. 3(b), June 28, 1975, 89 Stat. 235; Pub. L.

94-365, Sec. 2(2), July 14, 1976, 90 Stat. 990; Pub. L. 95-59, Sec.

3(2), June 30, 1977, 91 Stat. 255, provided that: ''For the period

ending September 30, 1978, no individual, who receives supplemental

security income benefits under title XVI of the Social Security Act

(section 1381 et seq. of Title 42, The Public Health and Welfare),

State supplementary payments described in section 1616 of such Act

(section 1382e of Title 42), or payments of the type referred to in

section 212(a) of Public Law 93-66 (set out as a note under section

1382 of Title 42), shall be considered to be a member of a

household for any purpose of the food distribution program for

families under section 32 of Public Law 74-320 (this section),

section 416 of the Agricultural Act of 1949 (section 1431 of this

title), or any other law, for any month during such period, if, for

such month, such individual resides in a State which provides State

supplementary payments (A) of the type described in section 1616(a)

of the Social Security Act (section 1382e(a) of Title 42), and (B)

the level of which has been found by the Secretary of Health,

Education, and Welfare to have been specifically increased so as to

include the bonus value of food stamps.''

(Amendment by Pub. L. 93-335 effective July 1, 1974, see section

1(c) of Pub. L. 93-335, set out as an Effective Date of 1974

Amendment note under section 1382 of Title 42. Section 3 of Pub. L.

95-59 provided in part that the amendment of section 8 of Pub. L.

93-233 by section 3(2) of Pub. L. 95-59 is effective July 1, 1977.)

FOOD STAMP PLAN

Acts June 25, 1940, ch. 421, Sec. 1, 54 Stat. 563; July 1, 1941,

ch. 267, Sec. 1, 55 Stat. 438, provided: ''That said 25 per centum

provision and the like provision in said section 32 (this section),

as amended, shall not apply to amounts devoted to a stamp plan for

the removal of surplus agricultural commodities from funds made

available hereby and by said section 32 (this section), and,

notwithstanding expenditures under such stamp plan, the 25 per

centum provision shall continue to be calculated on the aggregate

amount available hereunder and under said section 32 (this

section).''

DISTRIBUTION OF SURPLUS COMMODITIES TO OTHER UNITED STATES AREAS

Extension of relief programs to areas under United States

jurisdiction, see section 1431b of this title.

FISHERY PRODUCTS; USE OF FUNDS

Use of funds made available under this section for distribution

of surplus fishery products, and for promotion of free flow of

domestically produced fishery products, see sections 713c-2 and

713c-3 of Title 15, Commerce and Trade.

HOME ECONOMICS TRAINING

Authorization of schools to use surplus foods received under this

section to train students in home economics, see note set out under

section 1431 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 612c-4, 624, 1392, 1421,

1424, 1431b, 1641, 1855, 2036, 2627, 4004, 5676, 7502 of this

title; title 12 section 1150a; title 15 sections 713c, 713c-2,

713c-3; title 31 section 1511; title 40 section 474; title 42

sections 1755, 1758, 1761, 1762a, 1777, 1786, 3030a, 3045f, 5180.

-CITE-

7 USC Sec. 612c-1 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 26 - AGRICULTURAL ADJUSTMENT

SUBCHAPTER III - COMMODITY BENEFITS

-HEAD-

Sec. 612c-1. Authorization for appropriations to increase domestic

consumption of surplus farm commodities

-STATUTE-

On and after December 30, 1963, such sums (not in excess of

$25,000,000 in any one year) as may be approved by the Congress

shall be available for the purpose of increasing domestic

consumption of any farm commodity or farm commodities determined by

the Secretary of Agriculture to be in surplus supply, such

authorization not to restrict authority in existing law, of which

amount $11,000,000 shall remain available until expended for

construction and equipping of research facilities determined to be

needed as a result of a special survey.

-SOURCE-

(Pub. L. 88-250, title I, Sec. 101, Dec. 30, 1963, 77 Stat. 826.)

-COD-

CODIFICATION

Section was not enacted as part of the Agricultural Adjustment

Act which comprises this chapter.

-CITE-

7 USC Sec. 612c-2 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 26 - AGRICULTURAL ADJUSTMENT

SUBCHAPTER III - COMMODITY BENEFITS

-HEAD-

Sec. 612c-2. Technical support to exporters and importers of United

States agricultural products; scope of support provided by

Department of Agriculture

-STATUTE-

The Department of Agriculture shall provide technical support to

exporters and importers of United States agricultural products when

so requested. Such support shall include, but not be limited to, a

review of the feasibility of the export proposal, adequacy of

sources of supply, compliance with trade regulations of the United

States and the importing country and such other information or

guidance as may be needed to expand and expedite United States

agricultural exports by private trading interests.

-SOURCE-

(Pub. L. 91-524, title VIII, Sec. 811, as added Pub. L. 93-86, Sec.

1(27)(B), Aug. 10, 1973, 87 Stat. 238.)

-COD-

CODIFICATION

Section was not enacted as part of the Agricultural Adjustment

Act which comprises this chapter.

-CITE-

7 USC Sec. 612c-3 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 26 - AGRICULTURAL ADJUSTMENT

SUBCHAPTER III - COMMODITY BENEFITS

-HEAD-

Sec. 612c-3. Repealed. Pub. L. 101-624, title XV, Sec. 1578, Nov.

28, 1990, 104 Stat. 3702

-MISC1-

Section, Pub. L. 91-524, title VIII, Sec. 812, as added Pub. L.

93-86, Sec. 1(27)(B), Aug. 10, 1973, 87 Stat. 238, and amended Pub.

L. 95-113, title X, Sec. 1005, Sept. 29, 1977, 91 Stat. 951; Pub.

L. 97-444, title II, Sec. 238, Jan. 11, 1983, 96 Stat. 2326,

required exporters to report export sales and restricted President

from prohibiting or curtailing certain exports. See section 5712

of this title.

EFFECTIVE DATE OF REPEAL

Section 1578 of Pub. L. 101-624 provided that the repeal is

effective on the effective date of regulations promulgated under

section 5664 of this title. Implementing regulations were

promulgated and published in the Federal Register as follows:

May 30, 1991, eff. July 8, 1991, 56 F.R. 25998.

June 3, 1991, eff. June 7, 1991, 56 F.R. 26323.

Aug. 16, 1991, eff. Aug. 27, 1991, 56 F.R. 42222.

-CITE-

7 USC Sec. 612c-4 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 26 - AGRICULTURAL ADJUSTMENT

SUBCHAPTER III - COMMODITY BENEFITS

-HEAD-

Sec. 612c-4. Purchase of specialty crops

-STATUTE-

(a) General purchase authority

Of the funds made available under section 612c of this title, for

fiscal year 2002 and each subsequent fiscal year, the Secretary of

Agriculture shall use not less than $200,000,000 each fiscal year

to purchase fruits, vegetables, and other specialty food crops.

(b) Purchase authority

(1) Purchase

Of the amount specified in subsection (a) of this section, the

Secretary of Agriculture shall use not less than $50,000,000 each

fiscal year for the purchase of fresh fruits and vegetables for

distribution to schools and service institutions in accordance

with section 1755(a) of title 42.

(2) Servicing agency

The Secretary of Agriculture shall provide for the Secretary of

Defense to serve as the servicing agency for the procurement of

the fresh fruits and vegetables under this subsection on the same

terms and conditions as provided in the memorandum of agreement

entered into between the Agricultural Marketing Service, the Food

and Consumer Service, and the Defense Personnel Support Center

during August 1995 (or any successor memorandum of agreement).

(c) Definitions

In this section, the terms ''fruits'', ''vegetables'', and

''other specialty food crops'' shall have the meaning given the

terms by the Secretary of Agriculture.

-SOURCE-

(Pub. L. 107-171, title X, Sec. 10603, May 13, 2002, 116 Stat.

511.)

-COD-

CODIFICATION

Section was enacted as part of the Farm Security and Rural

Investment Act of 2002, and not as part of the Agricultural

Adjustment Act which comprises this chapter.

-CITE-

7 USC Sec. 613 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 26 - AGRICULTURAL ADJUSTMENT

SUBCHAPTER III - COMMODITY BENEFITS

-HEAD-

Sec. 613. Termination date; investigations and reports

-STATUTE-

This chapter shall cease to be in effect whenever the President

finds and proclaims that the national economic emergency in

relation to agriculture has been ended; and pending such time the

President shall by proclamation terminate with respect to any basic

agricultural commodity such provisions of this chapter as he finds

are not requisite to carrying out the declared policy with respect

to such commodity. In the case of sugar beets and sugarcane, the

taxes provided by this chapter shall cease to be in effect, and the

powers vested in the President or in the Secretary of Agriculture

shall terminate on December 31, 1937 unless this chapter ceases to

be in effect at an earlier date, as hereinabove provided. The

Secretary of Agriculture shall make such investigations and reports

thereon to the President as may be necessary to aid him in

executing this section.

-SOURCE-

(May 12, 1933, ch. 25, title I, Sec. 13, 48 Stat. 39; May 9, 1934,

ch. 263, Sec. 15, 48 Stat. 677; Aug. 24, 1935, ch. 641, Sec. 20(a),

49 Stat. 768.)

-MISC1-

AMENDMENTS

1935 - Act Aug. 24, 1935, substituted ''on December 31, 1937''

for ''at the end of three years after the adoption of this

amendment''.

1934 - Act May 9, 1934, inserted second sentence relating to

taxes on sugar beets and sugarcane.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 609, 673 of this title.

-CITE-

7 USC Sec. 613a 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 26 - AGRICULTURAL ADJUSTMENT

SUBCHAPTER III - COMMODITY BENEFITS

-HEAD-

Sec. 613a. Repealed. Sept. 1, 1937, ch. 898, title V, Sec. 510, 50

Stat. 916

-MISC1-

Section, act June 19, 1936, ch. 612, Sec. 1, 49 Stat. 1539,

related to termination of taxes on sugar beets and sugarcane.

-CITE-

7 USC Sec. 614 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 26 - AGRICULTURAL ADJUSTMENT

SUBCHAPTER III - COMMODITY BENEFITS

-HEAD-

Sec. 614. Separability

-STATUTE-

If any provision of this chapter is declared unconstitutional, or

the applicability thereof to any person, circumstance, or commodity

is held invalid the validity of the remainder of this chapter and

the applicability thereof to other persons, circumstances, or

commodities shall not be affected thereby.

-SOURCE-

(May 12, 1933, ch. 25, title I, Sec. 14, 48 Stat. 39; June 3, 1937,

ch. 296, Sec. 1, 50 Stat. 246.)

-MISC1-

VALIDITY OF SECTION AFFIRMED

Act June 3, 1937, Sec. 1, affirmed and validated, and reenacted

without change the provisions of this section. See note set out

under section 601 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 672, 673, 1392 of this

title.

-CITE-

7 USC Sec. 615 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 26 - AGRICULTURAL ADJUSTMENT

SUBCHAPTER III - COMMODITY BENEFITS

-HEAD-

Sec. 615. Refunds of tax; exemptions from tax; compensating tax;

compensating tax on foreign goods; covering into Treasury

-STATUTE-

(a) If at any time the Secretary of Agriculture finds, upon

investigation and after due notice and opportunity for hearing to

interested parties, that any class of products of any commodity is

of such low value, considering the quantity of the commodity used

for their manufacture, that the imposition of the processing tax

would prevent in whole or in large part the use of the commodity in

the manufacture of such products and thereby substantially reduce

consumption and increase the surplus of the commodity, then the

Secretary of Agriculture shall so certify to the Secretary of the

Treasury, specifying whether such results will in his judgment most

effectively be prevented by a suspension of the imposition of the

processing tax or a refund of the tax paid, with respect to such

amount of the commodity or any product thereof as is used in the

manufacture of such products, and thereafter, as shall be specified

in such certification, (1) the imposition of the processing tax

shall be suspended with respect to such amount of the commodity as

is used in the manufacture of such products, and thereafter, as

shall be specified in such certification, (2) the imposition of the

processing tax shall be suspended with respect to such amount of

the commodity as is used in the manufacture of such products until

such time as the Secretary of Agriculture, after further

investigation and due notice and opportunity for hearing to

interested parties, revokes his certification to the Secretary of

the Treasury, or (3) the Secretary of the Treasury shall refund (in

accordance with the provisions of, to such persons and in such

manner as shall be specified in, such certification) the amount of

any tax paid (prior to the date of any revocation by the Secretary

of Agriculture of his certification to the Secretary of the

Treasury, upon further investigation and after due notice and

opportunity for hearing to interested parties) under this chapter

with respect to such amount of the commodity or any product thereof

as is used after the date of such certification in the manufacture

of such products, or shall credit against any tax due and payable

under this chapter the amount of tax which would be refundable.

During the period in which any certificate under this section is

effective, the provisions of subsection (e) of this section shall

be suspended with respect to all imported articles of the kind

described in such certificate; and notwithstanding the provisions

of section 623 of this title, any compensating taxes, which have

heretofore, during the period in which any certificate under this

section has been effective, become due and payable upon imported

articles of the kind described in such certificate, shall be

refunded by the Secretary of the Treasury if the same have been

paid, or, if the same have not been paid the amount thereof shall

be abated. Notwithstanding the provisions of section 623 of this

title, the Secretary of the Treasury shall refund or credit any

processing tax paid on or before June 12, 1934, with respect to

such amount of cotton as was used in the manufacture of large

cotton bags (as defined in the Certificate of the Secretary of

Agriculture, dated June 12, 1934) between June 13, and July 7,

1934, both inclusive.

(b) No tax shall be required to be paid on the processing of any

commodity by or for the producer thereof for consumption by his own

family, employees, or household; and the Secretary of Agriculture

is authorized, by regulations, to exempt from the payment of the

processing tax the processing of commodities by or for the producer

thereof for sale by him where, in the judgment of the Secretary,

the imposition of a processing tax with respect thereto is

unnecessary to effectuate the declared policy.

(b-1) The Secretary of Agriculture is authorized and directed to

issue tax-payment warrants, with respect to rough rice produced in

1933 and 1934 (provided the processing of such rice is not exempt

from the tax, and provided no tax payment warrant has been

previously issued with respect thereto or previously applied for by

application then pending, sufficient to cover the tax with respect

to the processing thereof at the rate in effect at the time of such

issuance, to any processor with respect to any such rice which he

had in his possession on March 31, 1935, and to, or at the

direction of any other person with respect to any such rice which,

on or after April 1, 1935, he delivers for processing or sells to a

processor: Provided, That in case any such processor or other

person is the producer of such rice (or has received such rice by

gift, bequest, or descent from the producer thereof) that such

processor or other person is, if eligible, a cooperating producer:

And provided further, That in case such processor or other person

is not the producer thereof (nor a person who has received such

rice by gift, bequest, or descent from the producer thereof), (a)

that, if the title to such rice was transferred from the producer

thereof, whether by operation of law or otherwise, prior to April

1, 1935, such producer received the price prescribed in any

marketing agreement, license, regulation, or administrative ruling,

pursuant to this chapter, applicable to the sale of such rice by

the producer, and (b) that, if the title to such rice was

transferred from the producer thereof, whether by operation of law

or otherwise, on or after April 1, 1935, such producer received at

least the full market price therefor plus an amount equal to 99 per

centum of the face value of taxpayment warrants sufficient to cover

the tax on the processing of such rice at rate in effect at the

time title was so transferred, and was, if eligible, a cooperating

producer.

(b-2) The warrants authorized and directed to be issued by

subsection (b-1) of this section -

(1) shall be issued by the Secretary of Agriculture or his duly

authorized agent in such manner, at such time or times, at such

place or places, in such form, and subject to such terms and

conditions with reference to the transfer thereof or the voiding of

warrants fraudulently obtained and/or erroneously issued, as the

Secretary of Agriculture may prescribe, and the Secretary of

Agriculture is authorized to discontinue the further issuance of

tax-payment warrants at any time or times and in any region or

regions when he shall determine that the rice in any such region or

regions can no longer be identified adequately as rice grown in

1933 or 1934; and

(2) shall be accepted by the Collector of Internal Revenue and

the Secretary of the Treasury at the face value thereof in payment

of any processing tax on rice.

(b-3)(1) Any person who deals or traffics in, or purchases any

such tax-payment warrant or the right of any person thereto at less

than 99 per centum of its face value shall be guilty of a

misdemeanor and upon conviction thereof shall be fined not more

than $1,000 or imprisoned for not more than one year or both.

(2) Any person who, with intent to defraud, secures or attempts

to secure, or aids or assists in or procures, counsels, or advises,

the securing or attempting to secure any tax-payment warrant with

respect to rice as to which any tax-payment warrant has been

theretofore issued shall be guilty of a misdemeanor and upon

conviction thereof shall be fined not more than $1,000 or

imprisoned for not more than one year, or both.

(3) Any person who with intent to defraud forges, makes, alters,

or counterfeits any tax-payment warrant or any stamp, tag, or other

means of identification provided for by this chapter or any

regulation issued pursuant thereto, or makes any false entry upon

such warrant or any false statement in any application for the

issuance of such warrant, or who uses, sells, lends, or has in his

possession any such altered, forged, or counterfeited warrant or

stamp, tag, or other means of identification, or who makes, uses,

sells, or has in his possession any material in imitation of the

material used in the manufacture of such warrants or stamps, tags,

or other means of identification, shall, upon conviction thereof,

be punished by a fine not exceeding $5,000 or by imprisonment not

exceeding five years, or both.

(4) All producers, warehousemen, processors, and common carriers,

having information with respect to rice produced in the years 1933

or 1934, may be required to furnish to the Secretary of Agriculture

such information as he shall, by order, prescribe as necessary to

safeguard the issuance, transfer, and/or use of tax-payment

warrants.

(5) The Secretary of Agriculture may make regulations protecting

the interests of producers (including share-tenants and

share-croppers) and others, in the issuance, holding, use, and/or

transfer of such tax-payment warrants.

(c) Any person, including any State or Federal organization or

institution, delivering any product to any organization for

charitable distribution or use, including any State or Federal

welfare organization, for its own use, whether the product is

delivered as merchandise, or as a container for merchandise, or

otherwise, shall, if such product or the commodity from which

processed is under this chapter subject to tax, be entitled to a

refund of the amount of any tax due and paid under this chapter

with respect to such product so delivered, or to a credit against

any tax due and payable under this chapter of the amount of tax

which would be refundable under this section with respect to such

product so delivered: Provided, however, That no tax shall be

refunded or credited under this section, unless the person claiming

the refund or credit establishes, in accordance with regulations

prescribed by the Commissioner of Internal Revenue, with the

approval of the Secretary of the Treasury (1) that he has not

included the tax in the price of the product so delivered or

collected the amount of the tax from the said organization, or (2)

that he has repaid, or has agreed in writing to repay, the amount

of the tax to the said organization. The word ''State'' as used in

this section shall include a State and any political subdivision

thereof.

(d) The Secretary of Agriculture shall ascertain from time to

time whether the payment of the processing tax upon any basic

agricultural commodity is causing or will cause to the processors

or producers thereof disadvantages in competition from competing

commodities by reason of excessive shifts in consumption between

such commodities or products thereof. If the Secretary of

Agriculture finds, after investigation and due notice and

opportunity for hearing to interested parties, that such

disadvantages in competition exist, or will exist, he shall

proclaim such finding. The Secretary shall specify in this

proclamation the competing commodity and the compensating rate of

tax on the processing thereof necessary to prevent such

disadvantages in competition. Thereafter there shall be levied,

assessed, and collected upon the first domestic processing of such

competing commodity a tax, to be paid by the processor, at the rate

specified, until such rate is altered pursuant to a further finding

under this section, or the tax or rate thereof on the basic

agricultural commodity is altered or terminated. In no case shall

the tax imposed upon such competing commodity exceed that imposed

per equivalent unit, as determined by the Secretary, upon the basic

agricultural commodity.

(e) During any period for which a processing tax is in effect

with respect to any commodity there shall be levied, assessed,

collected, and paid upon any article processed or manufactured

wholly or partly from such commodity and imported into the United

States or any possession thereof to which this chapter applies,

from any foreign country or from any possession of the United

States to which this chapter does not apply, whether imported as

merchandise, or as a container of merchandise, or otherwise, a

compensating tax equal to the amount of the processing tax in

effect with respect to domestic processing of such commodity into

such an article at the time of importation: Provided, (1) That in

the event any of the provisions of this chapter have been or are

hereafter made applicable to any possession of the United States in

the case of any particular commodity or commodities, but not

generally, this chapter, for the purposes of this subsection, shall

be deemed applicable to such possession with respect to such

commodity or commodities but shall not be deemed applicable to such

possession with respect to other commodities; and (2) That all

taxes collected under this subsection upon articles coming from the

possessions of the United States to which this chapter does not

apply shall not be covered into the general fund of the Treasury of

the United States but shall be held as a separate fund and paid

into the Treasury of the said possessions, respectively, to be used

and expended by the governments thereof for the benefit of

agriculture. Such tax shall be paid prior to the release of the

article from customs custody or control.

(f) The President, in his discretion, is authorized by

proclamation to decree that all or part of the taxes collected from

the processing of sugar beets or sugarcane in Puerto Rico, the

Territory of Hawaii, the Virgin Islands, American Samoa, the Canal

Zone, and/or the island of Guam (if the provisions of this chapter

are made applicable thereto), and/or upon the processing in

continental United States of sugar produced in, or coming from,

said areas, shall not be covered into the general fund of the

Treasury of the United States but shall be held as a separate fund,

in the name of the respective area to which related, to be used and

expended for the benefit of agriculture and/or paid as rental or

benefit payments in connection with the reduction in the acreage,

or reduction in the production for market, or both, of sugar beets

and/or sugarcane, and/or used and expended for expansion of markets

and for removal of surplus agricultural products in such areas,

respectively, as the Secretary of Agriculture, with the approval of

the President, shall direct.

-SOURCE-

(May 12, 1933, ch. 25, title I, Sec. 15, 48 Stat. 39; May 9, 1934,

ch. 263, Sec. 8, 11, 48 Stat. 675, 676; June 16, 1934, ch. 551, 48

Stat. 973; June 26, 1934, ch. 759, Sec. 1, 48 Stat. 1241; Mar. 18,

1935, ch. 32, Sec. 8, 9, 49 Stat. 47, 48; Aug. 24, 1935, ch. 641,

Sec. 21-24, 49 Stat. 768; June 22, 1936, ch. 690, Sec. 601(a), 49

Stat. 1739; Proc. No. 2695, eff. July 4, 1946, 11 F.R. 7871, 60

Stat. 1352.)

-REFTEXT-

REFERENCES IN TEXT

For definition of Canal Zone, referred to in subsec. (f), see

section 3602(b) of Title 22, Foreign Relations and Intercourse.

-COD-

CODIFICATION

Reference to the Philippine Islands in subsec. (f) was omitted as

obsolete in view of the independence proclaimed by the President of

the United States by Proc. No. 2695, which is set out as a note

under section 1394 of Title 22, Foreign Relations and Intercourse.

-MISC3-

AMENDMENTS

1936 - Subsecs. (a), (c). Act June 22, 1936, reenacted subsecs.

(a) and (c) only for the purpose of allowing refunds in cases where

the delivery for charitable distribution or use, or the

exportation, or the manufacture of large cotton bags, or the

decrease in the rate of the processing tax, took place prior to

Jan. 6, 1936.

1935 - Subsec. (a). Act Aug. 24, 1935, Sec. 21, inserted ''or

shall credit against any tax due and payable under this chapter the

amount of tax which would be refundable. During the period in

which any certificate under this section is effective, the

provisions of subsection (e) of this section shall be suspended

with respect to all imported articles of the kind described in such

certificate; and notwithstanding the provisions of section 623 of

this title, any compensating taxes, which have heretofore, during

the period in which any certificate under this section has been

effective, become due and payable upon imported articles of the

kind described in such certificate, shall be refunded by the

Secretary of the Treasury if the same have been paid, or, if the

same have not been paid the amount thereof shall be abated.

Notwithstanding the provisions of section 623 of this title, the

Secretary of the Treasury shall refund or credit any processing tax

paid on or before June 12, 1934, with respect to such amount of

cotton as was used in the manufacture of large cotton bags (as

defined in the Certificate of the Secretary of Agriculture, dated

June 12, 1934) between June 13, and July 7, 1934, both inclusive''.

Subsecs. (b-1) to (b-3). Act Mar. 18, 1935, Sec. 8, added

subsecs. (b-1) to (b-3).

Subsec. (e). Act Aug. 24, 1935, Sec. 24, inserted ''into such an

article'' after ''with respect to domestic processing of such

commodity''.

Subsec. (e). Act Mar. 18, 1935, Sec. 9, among other changes,

inserted ''(1) That in the event any of the provisions of this

chapter have been or are hereafter made applicable to any

possession of the United States in the case of any particular

commodity or commodities, but not generally, this chapter, for the

purposes of this subsection, shall be deemed applicable to such

possession with respect to such commodity or commodities but shall

not be deemed applicable to such possession with respect to other

commodities; and (2)'' at beginning of proviso.

1934 - Subsec. (a). Act June 26, 1934, among other changes,

inserted ''and thereafter, as shall be specified in such

certification, (1) the imposition of the processing tax shall be

suspended with respect to such amount of the commodity as is used

in the manufacture of such products''.

Subsec. (c). Act June 16, 1934, among other changes, inserted

proviso.

Subsec. (e). Act May 9, 1934, Sec. 11, substituted ''partly'' for

''in chief value'', inserted ''whether imported as merchandise, or

as a container of merchandise, or otherwise,'' after ''apply'', and

inserted ''of such commodity'' after ''processing''.

Subsec. (f). Act May 9, 1934, Sec. 8, added subsec. (f).

SEPARABILITY

Validity of remainder of this chapter as not affected should any

of the provisions of this chapter be declared unconstitutional, see

section 614 of this title.

CONSTITUTIONALITY

Unconstitutionality of processing and floor stock taxes, see note

set out under section 616 of this title.

-TRANS-

ABOLITION OF OFFICES AND TRANSFER OF FUNCTIONS

The office of Internal Revenue Collector was abolished by 1952

Reorg. Plan No. 1, Sec. 1, eff. Mar. 14, 1952, 17 F.R. 2243, 66

Stat. 823, set out in the Appendix to Title 5, Government

Organization and Employees, and by section 2 thereof a new office

of district commissioner of internal revenue was established.

Section 4 of the Plan transferred all functions, that had been

vested by statute in any officer or employee of the Bureau of

Internal Revenue since the effective date of 1950 Reorg. Plan No.

26, Sec. 1, 2, 15 F.R. 4935, 64 Stat. 1280, 1281, to the Secretary

of the Treasury.

All functions of all officers of the Department of the Treasury,

and all functions of all agencies and employees of such Department,

were transferred, with certain exceptions, to the Secretary of the

Treasury, with power vested in him to authorize their performance

or the performance of any of his functions, by any of those

officers, agencies, and employees, by 1950 Reorg. Plan No. 26, Sec.

1, 2, eff. July 31, 1950, 15 F.R. 4935, 64 Stat. 1280, set out in

the Appendix to Title 5. The Collector and Commissioner of Internal

Revenue, referred to in this section, are officers of the Treasury

Department.

-MISC5-

ADMISSION OF HAWAII TO STATEHOOD

Hawaii was admitted into the Union on Aug. 21, 1959, on issuance

of Proc. No. 3309, Aug. 25, 1959, 24 F.R. 6868, 73 Stat. c74. For

Hawaii statehood law, see Pub. L. 86-3, Mar. 18, 1959, 73 Stat. 4,

set out as a note preceding section 491 of Title 48, Territories

and Insular Possessions.

APPROPRIATIONS

Appropriations for refunds, etc., see note under section 610 of

this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 609, 616, 673 of this

title.

-CITE-

7 USC Sec. 616 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 26 - AGRICULTURAL ADJUSTMENT

SUBCHAPTER III - COMMODITY BENEFITS

-HEAD-

Sec. 616. Stock on hand when tax takes effect or terminates

-STATUTE-

(a) Upon the sale or other disposition of any article processed

wholly or in chief value from any commodity with respect to which a

processing tax is to be levied, that on the date the tax first

takes effect or wholly terminates with respect to the commodity, is

held for sale or other disposition (including articles in transit)

by any person, there shall be made a tax adjustment as follows:

(1) Whenever the processing tax first takes effect, there shall

be levied, assessed, and collected a tax to be paid by such

person equivalent to the amount of the processing tax which would

be payable with respect to the commodity from which processed if

the processing had occurred on such date. Such tax upon articles

imported prior to, but in customs custody or control on, the

effective date, shall be paid prior to release therefrom. In the

case of sugar, the tax on floor stocks, except the retail stocks

of persons engaged in retail trade, shall be paid for the month

in which the stocks are sold, or used in the manufacture of other

articles, under rules and regulations prescribed by the

Commissioner of Internal Revenue with the approval of the

Secretary of the Treasury.

(2) Whenever the processing tax is wholly terminated, (A) there

shall be refunded or credited in the case of a person holding

such stocks with respect to which a tax under this chapter has

been paid, or (B) there shall be credited or abated in the case

of a person holding such stocks with respect to which a tax under

this chapter is payable, where such person is the processor

liable for the payment of such tax, or (C) there shall be

refunded or credited (but not before the tax has been paid) in

the case of a person holding such stocks with respect to which a

tax under this chapter is payable, where such person is not the

processor liable for the payment of such tax, a sum in an amount

equivalent to the processing tax which would have been payable

with respect to the commodity from which processed if the

processing had occurred on such date: Provided, That in the case

of any commodity with respect to which there was any increase,

effective prior to June 1, 1934, in the rate of the processing

tax, no such refund, credit, or abatement, shall be in an amount

which exceeds the equivalent of the initial rate of the

processing tax in effect with respect to such commodity.

(b) The tax imposed by subsection (a) of this section shall not

apply to the retail stocks of persons engaged in retail trade, held

at the date the processing tax first takes effect; but such retail

stocks shall not be deemed to include stocks held in a warehouse on

such date, or such portion of other stocks held on such date as are

not sold or otherwise disposed of within thirty days thereafter.

Except as to flour and prepared flour, and cereal preparations made

chiefly from wheat, as classified in Wheat Regulations, Series 1,

Supplement 1, and as to any article processed wholly or in chief

value from cotton, the tax refund, credit, or abatement provided in

subsection (a) of this section shall not apply to the retail stocks

of persons engaged in retail trade, nor to any article (except

sugar) processed wholly or in chief value from sugar beets,

sugarcane, or any product thereof, nor to any article (except

flour, prepared flour and cereal preparations made chiefly from

wheat, as classified in Wheat Regulations, Series 1, Supplement 1)

processed wholly or in chief value from wheat, held on the date the

processing tax is wholly terminated.

(c)(1) Any sugar, imported prior to the effective date of a

processing tax on sugar beets and sugarcane, with respect to which

it is established (under regulations prescribed by the Commissioner

of Internal Revenue, with the approval of the Secretary of the

Treasury) that there was paid at the time of importation a duty at

the rate in effect on January 1, 1934, and (2) any sugar held on

April 25, 1934, by, or to be delivered under a bona fide contract

of sale entered into prior to April 25, 1934, to, any manufacturer

or converter, for use in the production of any article (except

sugar) and not for ultimate consumption as sugar, and (3) any

article (except sugar) processed wholly or in chief value from

sugar beets, sugarcane, or any product thereof, shall be exempt

from taxation under subsection (a) of this section, but sugar held

in customs custody or control on April 25, 1934, shall not be

exempt from taxation under subsection (a) of this section, unless

the rate of duty paid upon the withdrawal thereof was the rate of

duty in effect on January 1, 1934.

(d) The Secretary of Agriculture is authorized to purchase, out

of such proceeds of taxes as are available therefor, during the

period this chapter is in effect with respect to sugar beets and

sugarcane, not in excess of three hundred thousand tons of sugar

raw value from the surplus stocks of direct-consumption sugar

produced in the United States beet-sugar area, at a price not in

excess of the market price for direct consumption sugar on the date

of purchase, and to dispose of such sugar by sale or otherwise,

including distribution to any organization for the relief of the

unemployed, under such conditions and at such times as will tend to

effectuate the declared policy of section 608a of this title. The

sugar so purchased shall not be included in the quota for the

United States beet-sugar area. All proceeds received by the

Secretary of Agriculture, in the exercise of the powers granted,

are appropriated to be available to the Secretary of Agriculture

for the purposes described in subsections (a) and (b) of section

612 of this title.

(e) Upon the sale or other disposition of any article processed

wholly or in chief value from any commodity with respect to which

the existing rate of the processing tax is to be increased, or

decreased, that on the date such increase, or decrease, first takes

effect with respect to the commodity, is held for sale or other

disposition (including articles in transit) by any person, and upon

the production of any article from a commodity in process on the

date on which the rate of the processing tax is to be increased or

decreased, there shall be made a tax adjustment as follows:

(1) Whenever, on or after June 1, 1934, the rate of the

processing tax on the processing of the commodity generally or

for any designated use or uses, or as to any designated product

or products thereof for any designated use or uses, or as to any

class of products, is decreased, there shall be credited or

refunded to such person an amount equivalent to the difference

between the rate of the processing tax payable or paid at the

time immediately preceding the decrease in rate and the rate of

the processing tax which would have been payable with respect to

the commodity from which processed, if the processing had

occurred on such date: Provided, however, That no such credit or

refund shall be made in the case of hogs unless the rate of the

processing tax immediately preceding said decrease is equal to,

or less than, the rate of the processing tax in effect on the

date on which any floor stocks tax was paid prior to the adoption

of this subsection. In the case of wheat the provisions of this

paragraph and of paragraph (2) of this subsection shall apply to

flour, prepared flour and cereal preparations made chiefly from

wheat, as classified in Wheat Regulations, Series 1, Supplement 1

only; in the case of sugarcane and sugar beets the provisions of

this paragraph and of paragraph (2) of this subsection shall

apply to sugar only.

(2) Whenever the rate of the processing tax on the processing

of the commodity generally, or for any designated use or uses, or

as to any designated product or products thereof for any

designated use or uses, or as to any class of products, is

increased, there shall be levied, assessed and collected a tax to

be paid by such person equivalent to the difference between the

rate of the processing tax payable or paid at the time

immediately preceding the increase in rate and the rate of the

processing tax which would be payable with respect to the

commodity from which processed, if the processing had occurred on

such date.

(3) Whenever the processing tax is suspended or is to be

refunded pursuant to a certification of the Secretary of

Agriculture to the Secretary of the Treasury, under section

615(a) of this title, the provisions of subdivision (1) of this

subsection shall become applicable.

(4) Whenever the Secretary of Agriculture revokes any

certification to the Secretary of the Treasury under section

615(a) of this title, the provisions of paragraph (2) of this

subsection shall become applicable.

(5) The provisions of this subsection shall be effective on and

after June 1, 1934.

(f) The provisions of this section shall not be applicable with

respect to rice.

-SOURCE-

(May 12, 1933, ch. 25, title I, Sec. 16, 48 Stat. 40; May 9, 1934,

ch. 263, Sec. 10, 17, 48 Stat. 676, 678; June 26, 1934, ch. 759,

Sec. 1, 48 Stat. 1241; Mar. 18, 1935, ch. 32, Sec. 10, 49 Stat. 48;

Aug. 24, 1935, ch. 641, Sec. 20(b), 25-27, 49 Stat. 768, 769; June

4, 1936, ch. 501, 49 Stat. 1464; June 22, 1936, ch. 690, Sec.

601(a), (c), (g), 49 Stat. 1739, 1740.)

-MISC1-

AMENDMENTS

1936 - Subsec. (e)(1). Act June 22, 1936, Sec. 601(a), (g),

reenacted par. (1) for certain refund purposes only and substituted

''on or after June 1, 1934'' for ''subsequent to June 26, 1934'',

respectively.

Act June 4, 1936, substituted ''on or after June 1, 1934'' for

''subsequent to June 26, 1934''.

Subsec. (e)(3). Act June 22, 1936, Sec. 601(a), reenacted par.

(3) for certain refund purposes only.

Subsec. (g). Act June 22, 1936, Sec. 601(c), repealed subsec. (g)

which related to the time for filing refunds.

1935 - Subsec. (a)(2). Act Aug. 24, 1935, Sec. 25, substituted a

new par. (2) for former par. (2).

Subsec. (b). Act Aug. 24, 1935, Sec. 26, amended second sentence

generally.

Subsec. (c). Act Aug. 24, 1935, Sec. 20(b), struck out last

sentence.

Subsec. (e). Act Mar. 18, 1935, redesignated former subsec. (c)

as (e).

Subsec. (e)(1). Act Aug. 24, 1935, Sec. 27(a), inserted

''subsequent to June 26, 1934'' at beginning of paragraph, and ''in

the case of hogs'' after ''made'' in proviso and inserted ''In the

case of wheat the provisions of this paragraph and of paragraph (2)

of this subsection shall apply to flour, prepared flour and cereal

preparations made chiefly from wheat, as classified in Wheat

Regulations, Series 1, Supplement 1 only; in the case of sugarcane

and sugar beets the provisions of this paragraph and of paragraph

(2) of this subsection shall apply to sugar only.''

Subsec. (f). Act Mar. 18, 1935, added subsec. (f).

Subsec. (g). Act Aug. 24, 1935, Sec. 27(b), added subsec. (g).

1934 - Subsec. (a)(1). Act May 9, 1934, Sec. 10, inserted second

sentence.

Subsec. (c). Act June 26, 1934, added subsec. (c).

Subsec. (c)(1). Act May 9, 1934, Sec. 17, added par. (1).

Subsec. (d). Act May 9, 1934, Sec. 17, added subsec. (d).

SEPARABILITY

Validity of remainder of this chapter as not affected should any

of the provisions of this chapter be declared unconstitutional.

See section 614 of this title.

-TRANS-

TRANSFER OF FUNCTIONS

Functions of all officers of Department of the Treasury, and

functions of all agencies and employees of such Department,

transferred, with certain exceptions, to Secretary of the Treasury,

with power vested in him to authorize their performance or

performance of any of his functions, by any of such officers,

agencies, and employees, by 1950 Reorg. Plan No. 26, Sec. 1, 2,

eff. July 31, 1950, 15 F.R. 4935, 64 Stat. 1280, set out in the

Appendix to Title 5, Government Organization and Employees.

Commissioner of Internal Revenue, referred to in this section, is

an officer of Department of the Treasury.

-MISC5-

CONSTITUTIONALITY

Section may be obsolete in view of the Supreme Court's holding

that the processing and floor stock taxes provided for by the

Agricultural Adjustment Act of 1933 are unconstitutional. See U.S.

v. Butler, Mass. 1936, 56 S.Ct. 312, 297 U.S. 1, 80 L.Ed. 477, 102

A.L.R. 914.

APPROPRIATIONS

Appropriations for refunds, etc., see note set out under section

610 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 609, 621, 673 of this

title.

-CITE-

7 USC Sec. 617 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 26 - AGRICULTURAL ADJUSTMENT

SUBCHAPTER III - COMMODITY BENEFITS

-HEAD-

Sec. 617. Refund on goods exported; bond to suspend tax on

commodity intended for export

-STATUTE-

(a) Upon the exportation to any foreign country (and/or to the

Virgin Islands, American Samoa, the Canal Zone, and the island of

Guam) of any product processed wholly or partly from a commodity

with respect to which product or commodity a tax has been paid or

is payable under this chapter, the tax due and payable or due and

paid shall be credited or refunded. Under regulations prescribed

by the Commissioner of Internal Revenue, with the approval of the

Secretary of the Treasury, the credit or refund shall be allowed to

the consignor named in the bill of lading under which the product

is exported or to the shipper or to the person liable for the tax

provided the consignor waives any claim thereto in favor of such

shipper or person liable for the tax. In the case of rice, a tax

due under this chapter which has been paid by a tax-payment warrant

shall be deemed for the purposes of this subsection to have been

paid; and with respect to any refund authorized under this section,

the amount scheduled by the Commissioner of Internal Revenue for

refunding shall be paid, any provision of law notwithstanding. In

the case of sugar beets and sugarcane, this subsection shall be

applicable to exports of products thereof to the Virgin Islands,

American Samoa, the Canal Zone, and/or the island of Guam only if

this chapter with respect to sugar beets and sugarcane is not made

applicable thereto. The term ''product'' includes any product

exported as merchandise, or as a container for merchandise, or

otherwise.

(b) Upon the giving of bond satisfactory to the Secretary of the

Treasury for the faithful observance of the provisions of this

chapter requiring the payment of taxes, any person shall be

entitled, without payment of the tax, to process for such

exportation any commodity with respect to which a tax is imposed by

this chapter, or to hold for such exportation any article processed

wholly or partly therefrom.

-SOURCE-

(May 12, 1933, ch. 25, title I, Sec. 17, 48 Stat. 40; May 9, 1934,

ch. 263, Sec. 12, 13, 48 Stat. 676; Mar. 18, 1935, ch. 32, Sec. 11,

49 Stat. 48; Aug. 24, 1935, ch. 641, Sec. 28, 49 Stat. 770; June

22, 1936, ch. 690, Sec. 601(a), 49 Stat. 1739; Proc. No. 2695,

eff. July 4, 1946, 11 F.R. 7871, 60 Stat. 1352.)

-REFTEXT-

REFERENCES IN TEXT

For definition of Canal Zone, referred to in subsec. (a), see

section 3602(b) of Title 22, Foreign Relations and Intercourse.

-COD-

CODIFICATION

References to the Philippine Islands in subsec. (a) were omitted

from the Code as obsolete in view of the independence proclaimed by

the President of the United States by Proc. No. 2695, cited to

text, which is set out as a note under section 1394 of Title 22,

Foreign Relations and Intercourse.

-MISC3-

AMENDMENTS

1936 - Subsec. (a). Act June 22, 1936, reenacted subsec. (a) for

refund purposes only.

1935 - Subsec. (a). Act Aug. 24, 1935, struck out first two

sentences and substituted ''Upon the exportation to any foreign

country (and/or to the Philippine Islands, the Virgin Islands,

American Samoa, the Canal Zone, and the island of Guam) of any

product processed wholly or partly from a commodity with respect to

which product or commodity a tax has been paid or is payable under

this chapter, the tax due and payable or due and paid shall be

credited or refunded. Under regulations prescribed by the

Commissioner of Internal Revenue, with the approval of the

Secretary of the Treasury, the credit or refund shall be allowed to

the consignor named in the bill of lading under which the product

is exported or to the shipper or to the person liable for the tax

provided the consignor waives any claim thereto in favor of such

shipper or person liable for the tax.''

Act Mar. 18, 1935, inserted third sentence.

1934 - Subsec. (a). Act May 9, 1934, amended subsec. (a)

generally.

Subsec. (b). Act May 9, 1934, Sec. 13, substituted ''partly'' for

''in chief value''.

SEPARABILITY

Validity of remainder of this chapter as not affected should any

of the provisions of this chapter be declared unconstitutional, see

section 614 of this title.

-TRANS-

TRANSFER OF FUNCTIONS

Functions of all officers of Department of the Treasury, and

functions of all agencies and employees of such Department,

transferred, with certain exceptions, to Secretary of the Treasury,

with power vested in him to authorize their performance or

performance of any of his functions, by any of such officers,

agencies, and employees, by 1950 Reorg. Plan. No. 26, Sec. 1, 2,

eff. July 31, 1950, 15 F.R. 4935, 64 Stat. 1280, set out in the

Appendix to Title 5, Government Organization and Employees.

Commissioner of Internal Revenue, referred to in this section, is

an officer of Department the Treasury.

-MISC5-

CONSTITUTIONALITY

Unconstitutionality of processing and floor stock taxes, see note

set out under section 616 of this title.

APPROPRIATIONS

Appropriations for refunds, etc., see note set out under section

610 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 673 of this title.

-CITE-

7 USC Sec. 618 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 26 - AGRICULTURAL ADJUSTMENT

SUBCHAPTER III - COMMODITY BENEFITS

-HEAD-

Sec. 618. Existing contracts; imposition of tax on vendee;

collection

-STATUTE-

(a) If (1) any processor, jobber, or wholesaler has, prior to the

date a tax with respect to any commodity is first imposed under

this chapter, made a bona fide contract of sale for delivery on or

after such date, of any article processed wholly or in chief value

from such commodity, and if (2) such contract does not permit the

addition to the amount to be paid thereunder of the whole of such

tax, then (unless the contract prohibits such addition) the vendee

shall pay so much of the tax as is not permitted to be added to the

contract price.

(b) Taxes payable by the vendee shall be paid to the vendor at

the time the sale is consummated and shall be collected and paid to

the United States by the vendor in the same manner as other taxes

under this chapter. In case of failure or refusal by the vendee to

pay such taxes to the vendor, the vendor shall report the facts to

the Commissioner of Internal Revenue who shall cause collections of

such taxes to be made from the vendee.

-SOURCE-

(May 12, 1933, ch. 25, title I, Sec. 18, 48 Stat. 41.)

-MISC1-

SEPARABILITY

Validity of remainder of this chapter as not affected should any

of the provisions of this chapter be declared unconstitutional, see

section 614 of this title.

-TRANS-

TRANSFER OF FUNCTIONS

Functions of all officers of Department of the Treasury, and

functions of all agencies and employees of such Department,

transferred, with certain exceptions, to Secretary of the Treasury,

with power vested in him to authorize their performance or

performance of any of his functions, by any of such officers,

agencies, and employees, by 1950 Reorg. Plan No. 26, Sec. 1, 2,

eff. July 31, 1950, 15 F.R. 4935, 64 Stat. 1280, set out in the

Appendix to Title 5, Government Organization and Employees.

Commissioner of Internal Revenue, referred to in this section, is

an officer of Department of the Treasury.

-MISC5-

CONSTITUTIONALITY

Unconstitutionality of processing and floor stock taxes, see note

set out under section 616 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 673 of this title.

-CITE-

7 USC Sec. 619 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 26 - AGRICULTURAL ADJUSTMENT

SUBCHAPTER III - COMMODITY BENEFITS

-HEAD-

Sec. 619. Collection of tax; provisions of internal revenue laws

applicable; returns

-STATUTE-

(a) The taxes provided in this chapter shall be collected by the

Bureau of Internal Revenue under the direction of the Secretary of

the Treasury. Such taxes shall be paid into the Treasury of the

United States.

(b) All provisions of law, including penalties, applicable with

respect to the taxes imposed by section 600 of the Revenue Act of

1926, and the provisions of section 626 of the Revenue Act of 1932,

shall, insofar as applicable and not inconsistent with the

provisions of this chapter, be applicable in respect of taxes

imposed by this chapter: Provided, That the Secretary of the

Treasury is authorized to permit postponement, for a period not

exceeding one hundred and eighty days, of the payment of not

exceeding three-fourths of the amount of the taxes covered by any

return under this chapter, but postponement of all taxes covered by

returns under this chapter for a period not exceeding one hundred

and eighty days may be permitted in cases in which the Secretary of

the Treasury authorizes such taxes to be paid each month on the

amount of the commodity marketed during the next preceding month.

(c) Repealed. June 30, 1947, ch. 166, title II, Sec. 206(d), 61

Stat. 208.

(d) Under regulations made by the Commissioner of Internal

Revenue, with the approval of the Secretary of the Treasury, any

person required pursuant to the provisions of this chapter to file

a return may be required to file such return and pay the tax shown

to be due thereon to the collector of internal revenue for the

district in which the processing was done or the liability was

incurred. Whenever the Commissioner of Internal Revenue deems it

necessary, he may require any person or class of persons handling

or dealing in any commodity or product thereof, with respect to

which a tax is imposed under the provisions of this chapter, to

make a return, render under oath such statements, or to keep such

records, as the Commissioner deems sufficient to show whether or

not such person, or any other person, is liable for the tax.

-SOURCE-

(May 12, 1933, ch. 25, title I, Sec. 19, 48 Stat. 41; June 26,

1934, ch. 759, Sec. 3, 48 Stat. 1242; Aug. 24, 1935, ch. 641, Sec.

29, 49 Stat. 770; June 30, 1947, ch. 166, title II, Sec. 206(d), 61

Stat. 208.)

-REFTEXT-

REFERENCES IN TEXT

Provisions of section 600 of the Revenue Act of 1926 and section

626 of the Revenue Act of 1932, referred to in subsec. (b), were

incorporated in sections 2700, 2704, and 3448 of Title 26, Internal

Revenue Code, 1939. See sections 4181, 4182, 4216, 4224, 5831, 6151

and 6601 of Title 26, Internal Revenue Code, 1986.

-MISC2-

AMENDMENTS

1947 - Subsec. (c). Act June 30, 1947, repealed subsec. (c) which

related to loans by Reconstruction Finance Corporation.

1935 - Subsec. (b). Act Aug. 24, 1935, Sec. 29(a), among other

changes, inserted at end of proviso ''but postponement of all taxes

covered by returns under this chapter for a period not exceeding

one hundred and eighty days may be permitted in cases in which the

Secretary of the Treasury authorizes such taxes to be paid each

month on the amount of the commodity marketed during the next

preceding month''.

Subsec. (d). Act Aug. 24, 1935, Sec. 29(b), added subsec. (d).

1934 - Subsec. (b). Act June 26, 1934, substituted ''one hundred

and eighty'' for ''ninety''.

SEPARABILITY

Validity of remainder of this chapter as not affected should any

of the provisions of this chapter be declared unconstitutional, see

section 614 of this title.

-TRANS-

TRANSFER OF FUNCTIONS

Office of Internal Revenue Collector abolished by 1952 Reorg.

Plan No. 1, Sec. 1, eff. Mar. 14, 1952, 17 F.R. 2243, 66 Stat.

823, set out in the Appendix to Title 5, Government Organization

and Employees, and by section 2 thereof a new office of district

commissioner of internal revenue was established. Section 4 of the

Plan transferred all functions, that had been vested by statute in

any officer or employee of Bureau of Internal Revenue since

effective date of 1950 Reorg. Plan No. 26, Sec. 1, 2, 15 F.R. 4935,

64 Stat. 1280, 1281, to Secretary of the Treasury.

Functions of all officers of Department of the Treasury, and

functions of all agencies and employees of such Department,

transferred, with certain exceptions, to Secretary of the Treasury,

with power vested in him to authorize their performance or

performance of any of his functions, by any of those officers,

agencies, and employees, by 1950 Reorg. Plan No. 26, Sec. 1, 2,

eff. July 31, 1950, 15 F.R. 4935, 64 Stat. 1280, set out in the

Appendix to Title 5. Collector and Commissioner of Internal

Revenue, referred to in this section, are officers of Department of

the Treasury.

-MISC5-

CONSTITUTIONALITY

Unconstitutionality of processing and floor stock taxes, see note

set out under section 616 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 623, 673 of this title.

-CITE-

7 USC Sec. 619a 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 26 - AGRICULTURAL ADJUSTMENT

SUBCHAPTER III - COMMODITY BENEFITS

-HEAD-

Sec. 619a. Cotton tax, time for payment

-STATUTE-

The processing tax authorized by section 609 of this title, when

levied upon cotton, shall be payable ninety days after the filing

of the processor's report: Provided, That, under regulations to be

prescribed by the Secretary of the Treasury, the time for payment

of such tax upon cotton may be extended, but in no case to exceed

six months from the date of the filing of the report.

-SOURCE-

(May 17, 1935, ch. 131, title I, Sec. 2, 49 Stat. 281.)

-COD-

CODIFICATION

Section was not enacted as part of the Agricultural Adjustment

Act which comprises this chapter.

-MISC3-

SEPARABILITY

Validity of remainder of this chapter as not affected should any

of the provisions of this chapter be declared unconstitutional, see

section 614 of this title.

CONSTITUTIONALITY

Unconstitutionality of processing and floor stock taxes, see note

set out under section 616 of this title.

-CITE-

7 USC Sec. 620 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 26 - AGRICULTURAL ADJUSTMENT

SUBCHAPTER III - COMMODITY BENEFITS

-HEAD-

Sec. 620. Falsely ascribing deductions or charges to taxes; penalty

-STATUTE-

(a) Whoever in connection with the purchase of, or offer to

purchase, any commodity, subject to any tax under this chapter, or

which is to be subjected to any tax under this chapter, makes any

statement, written or oral, (1) intended or calculated to lead any

person to believe that any amount deducted from the market price or

the agreed price of the commodity consists of a tax imposed under

this chapter, or (2) ascribing a particular part of the deduction

from the market price or the agreed price of the commodity, to a

tax imposed under this chapter, knowing that such statement is

false or that the tax is not so great as the amount deducted from

the market price or the agreed price of the commodity, ascribed to

such tax, shall be guilty of a misdemeanor and, upon conviction

thereof, shall be punished by a fine of not more than $1,000 or by

imprisonment for not exceeding six months, or both.

(b) Whoever in connection with the processing of any commodity

subject to any tax under this chapter, whether commercially, for

toll, upon an exchange, or otherwise, makes any statement, written

or oral, (1) intended or calculated to lead any person to believe

that any part of the charge for said processing, whether

commercially, for toll, upon an exchange, or otherwise, consists of

a tax imposed under this chapter, or (2) ascribing a particular

part of the charge for processing, whether commercially, for toll,

upon an exchange, or otherwise, to a tax imposed under this

chapter, knowing that such statement is false, or that the tax is

not so great as the amount charged for said processing ascribed to

such tax, shall be guilty of a misdemeanor, and upon conviction

thereof, shall be punished by a fine of not more than $1,000 or by

imprisonment for not exceeding six months, or both.

(c) Whoever in connection with any settlement, under a contract

to buy any commodity, and/or to sell such commodity, or any product

or byproduct thereof, subject to any tax under this chapter, makes

any statement, written or oral, (1) intended or calculated to lead

any person to believe that any amount deducted from the gross sales

price, in arriving at the basis of settlement under the contract,

consists of a tax under this chapter, or (2) ascribing a particular

amount deducted from the gross sales price, in arriving at the

basis of settlement under the contract, to a tax imposed under this

chapter, knowing that such statement is false, or that the tax is

not so great as the amount so deducted and/or ascribed to such tax,

shall be guilty of a misdemeanor, and, upon conviction thereof,

shall be punished by a fine of not more than $1,000 or by

imprisonment for not exceeding six months, or both.

-SOURCE-

(May 12, 1933, ch. 25, title I, Sec. 20, as added May 9, 1934, ch.

263, Sec. 16, 48 Stat. 677.)

-MISC1-

CONSTITUTIONALITY

Unconstitutionality of processing and floor stock taxes, see note

set out under section 616 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 673 of this title.

-CITE-

7 USC Sec. 621 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 26 - AGRICULTURAL ADJUSTMENT

SUBCHAPTER III - COMMODITY BENEFITS

-HEAD-

Sec. 621. Machinery belting processed from cotton; exemption from

tax

-STATUTE-

The provisions of section 616 of this title, shall not apply to

articles of machinery belting processed wholly or in chief value

from cotton, if such processing was completed prior to January 1,

1930.

-SOURCE-

(June 26, 1934, ch. 753, Sec. 1, 48 Stat. 1223.)

-COD-

CODIFICATION

Section was not enacted as part of the Agricultural Adjustment

Act which comprises this chapter.

-CITE-

7 USC Sec. 622 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 26 - AGRICULTURAL ADJUSTMENT

SUBCHAPTER III - COMMODITY BENEFITS

-HEAD-

Sec. 622. Omitted

-COD-

CODIFICATION

Section, act June 26, 1934, ch. 753, Sec. 2, 48 Stat. 1223,

related to refunding or crediting of taxes paid under section 616

of this title.

-CITE-

7 USC Sec. 623 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 26 - AGRICULTURAL ADJUSTMENT

SUBCHAPTER III - COMMODITY BENEFITS

-HEAD-

Sec. 623. Actions relating to tax; legalization of prior taxes

-STATUTE-

(a) Action to restrain collection of tax or obtain declaratory

judgment forbidden

No suit, action, or proceeding (including probate,

administration, and receivership proceedings) shall be brought or

maintained in any court if such suit, action, or proceeding is for

the purpose or has the effect (1) of preventing or restraining the

assessment or collection of any tax imposed or the amount of any

penalty or interest accrued under this chapter on or after August

24, 1935, or (2) of obtaining a declaratory judgment under sections

2201 and 2202 of title 28 in connection with any such tax or such

amount of any such interest or penalty. In probate,

administration, receivership, or other similar proceedings, the

claim of the United States for any such tax or such amount of any

such interest or penalty, in the amount assessed by the

Commissioner of Internal Revenue, shall be allowed and ordered to

be paid, but the right to claim the refund or credit thereof and to

maintain such claim pursuant to the applicable provisions of law,

including subsection (d) of this section, may be reserved in the

court's order.

(b) Taxes imposed prior to August 24, 1935, legalized and ratified

The taxes imposed under this chapter, as determined, prescribed,

proclaimed and made effective by the proclamations and certificates

of the Secretary of Agriculture or of the President and by the

regulations of the Secretary with the approval of the President

prior to August 24, 1935, are legalized and ratified, and the

assessment, levy, collection, and accrual of all such taxes

(together with penalties and interest with respect thereto) prior

to said date are legalized and ratified and confirmed as fully to

all intents and purposes as if each such tax had been made

effective and the rate thereof fixed specifically by prior Act of

Congress. All such taxes which had accrued and remained unpaid

August 24, 1935, shall be assessed and collected pursuant to

section 619 of this title, and to the provisions of law made

applicable thereby. Nothing in this section shall be construed to

import illegality to any act, determination, proclamation,

certificate, or regulation of the Secretary of Agriculture or of

the President done or made prior to August 24, 1935.

(c) Rental and benefit payments, agreements, and programs made

prior to August 24, 1935, legalized and ratified

The making of rental and benefit payments under this chapter,

prior to August 24, 1935, as determined, prescribed, proclaimed and

made effective by the proclamations of the Secretary of Agriculture

or of the President or by regulations of the Secretary, and the

initiation, if formally approved by the Secretary of Agriculture

prior to such date of adjustment programs under section 608(1) of

this title, and the making of agreements with producers prior to

such date, and the adoption of other voluntary methods prior to

such date, by the Secretary of Agriculture under this chapter, and

rental and benefit payments made pursuant thereto, are legalized

and ratified, and the making of all such agreements and payments,

the initiation of such programs, and the adoption of all such

methods prior to such date are legalized, ratified, and confirmed

as fully to all intents and purposes as if each such agreement,

program, method, and payment had been specifically authorized and

made effective and the rate and amount thereof fixed specifically

by prior act of Congress.

-SOURCE-

(May 12, 1933, ch. 25, title I, Sec. 21, as added Aug. 24, 1935,

ch. 641, Sec. 30, 49 Stat. 770; amended June 22, 1936, ch. 690,

Sec. 601(c), 901, 49 Stat. 1740, 1747; Pub. L. 95-598, title III,

Sec. 304, Nov. 6, 1978, 92 Stat. 2673.)

-REFTEXT-

REFERENCES IN TEXT

Subsection (d) of this section, referred to in subsec. (a), was

repealed by section 901 of act June 22, 1936. See 1936 Amendment

note set out below.

-COD-

CODIFICATION

''Sections 2201 and 2202 of title 28'' was substituted for ''the

Federal Declaratory Judgments Act'', which had enacted section 400

of former Title 28, Judicial Code and Judiciary, on authority of

act June 25, 1948, ch. 646, 62 Stat. 869, section 1 of which

enacted Title 28, Judiciary and Judicial Procedure.

Another section 21 of act May 12, 1933, enacted sections 992 and

993 of Title 12, Banks and Banking.

-MISC3-

AMENDMENTS

1978 - Subsec. (a). Pub. L. 95-598 struck out '', and

bankruptcy'' after ''receivership'' in first sentence, and struck

out ''bankruptcy,'' after ''receivership'' in second sentence.

1936 - Subsecs. (d) to (g). Act June 22, 1936, Sec. 901, repealed

subsec. (d) relating to prohibition on making certain refunds,

subsec. (e) providing for access to books, and subsec. (g)

providing for recovery of taxes erroneously collected, and act June

22, 1936, Sec. 601(c), repealed subsec. (f) relating to time for

filing claim for refund.

EFFECTIVE DATE OF 1978 AMENDMENT

Amendment effective Oct. 1, 1979, see section 402(a) of Pub. L.

95-598, set out as an Effective Date note preceding section 101 of

Title 11, Bankruptcy.

SEPARABILITY

Validity of remainder of this chapter as not affected should any

of the provisions of this chapter be declared unconstitutional, see

section 614 of this title.

-TRANS-

TRANSFER OF FUNCTIONS

Functions of all officers of Department of the Treasury, and

functions of all agencies and employees of such Department,

transferred, with certain exceptions, to Secretary of the Treasury,

with power vested in him to authorize their performance or

performance of any of his functions, by any of such officers,

agencies, and employees, by 1950 Reorg. Plan No. 26, Sec. 1, 2,

eff. July 31, 1950, 15 F.R. 4935, 64 Stat. 1280, set out in the

Appendix to Title 5, Government Organization and Employees.

Commissioner of Internal Revenue, referred to in this section, is

an officer of Department of the Treasury.

-MISC5-

CONSTITUTIONALITY

Unconstitutionality of processing and floor stock taxes, see note

set out under section 616 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 615, 673 of this title.

-CITE-

7 USC Sec. 624 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 26 - AGRICULTURAL ADJUSTMENT

SUBCHAPTER III - COMMODITY BENEFITS

-HEAD-

Sec. 624. Limitation on imports; authority of President

-STATUTE-

(a) Whenever the Secretary of Agriculture has reason to believe

that any article or articles are being or are practically certain

to be imported into the United States under such conditions and in

such quantities as to render or tend to render ineffective, or

materially interfere with, any program or operation undertaken

under this chapter or the Soil Conservation and Domestic Allotment

Act, as amended (16 U.S.C. 590a et seq.), or section 612c of this

title, or any loan, purchase, or other program or operation

undertaken by the Department of Agriculture, or any agency

operating under its direction, with respect to any agricultural

commodity or product thereof, or to reduce substantially the amount

of any product processed in the United States from any agricultural

commodity or product thereof with respect to which any such program

or operation is being undertaken, he shall so advise the President,

and, if the President agrees that there is reason for such belief,

the President shall cause an immediate investigation to be made by

the United States International Trade Commission, which shall give

precedence to investigations under this section to determine such

facts. Such investigation shall be made after due notice and

opportunity for hearing to interested parties, and shall be

conducted subject to such regulations as the President shall

specify.

(b) If, on the basis of such investigation and report to him of

findings and recommendations made in connection therewith, the

President finds the existence of such facts, he shall by

proclamation impose such fees not in excess of 50 per centum ad

valorem or such quantitative limitations on any article or articles

which may be entered, or withdrawn from warehouse, for consumption

as he finds and declares shown by such investigation to be

necessary in order that the entry of such article or articles will

not render or tend to render ineffective, or materially interfere

with, any program or operation referred to in subsection (a) of

this section, or reduce substantially the amount of any product

processed in the United States from any such agricultural commodity

or product thereof with respect to which any such program or

operation is being undertaken: Provided, That no proclamation under

this section shall impose any limitation on the total quantity of

any article or articles which may be entered, or withdrawn from

warehouse, for consumption which reduces such permissible total

quantity to proportionately less than 50 per centum of the total

quantity of such article or articles which was entered, or

withdrawn from warehouse, for consumption during a representative

period as determined by the President: And provided further, That

in designating any article or articles, the President may describe

them by physical qualities, value, use, or upon such other bases as

he shall determine.

In any case where the Secretary of Agriculture determines and

reports to the President with regard to any article or articles

that a condition exists requiring emergency treatment, the

President may take immediate action under this section without

awaiting the recommendations of the International Trade Commission,

such action to continue in effect pending the report and

recommendations of the International Trade Commission and action

thereon by the President.

(c) The fees and limitations imposed by the President by

proclamation under this section and any revocation, suspension, or

modification thereof, shall become effective on such date as shall

be therein specified, and such fees shall be treated for

administrative purposes and for the purposes of section 612c of

this title, as duties imposed by the Tariff Act of 1930 (19 U.S.C.

1202 et seq.), but such fees shall not be considered as duties for

the purpose of granting any preferential concession under any

international obligation of the United States.

(d) After investigation, report, finding, and declaration in the

manner provided in the case of a proclamation issued pursuant to

subsection (b) of this section, any proclamation or provision of

such proclamation may be suspended or terminated by the President

whenever he finds and proclaims that the circumstances requiring

the proclamation or provision thereof no longer exist or may be

modified by the President whenever he finds and proclaims that

changed circumstances require such modification to carry out the

purposes of this section.

(e) Any decision of the President as to facts under this section

shall be final.

(f) No quantitative limitation or fee shall be imposed under this

section with respect to any article that is the product of a WTO

member (as defined in section 3501(10) of title 19).

-SOURCE-

(May 12, 1933, ch. 25, title I, Sec. 22, as added Aug. 24, 1935,

ch. 641, Sec. 31, 49 Stat. 773; amended Feb. 29, 1936, ch. 104,

Sec. 5, 49 Stat. 1152; June 3, 1937, ch. 296, Sec. 1, 50 Stat. 246;

Jan. 25, 1940, ch. 13, 54 Stat. 17; July 3, 1948, ch. 827, title I,

Sec. 3, 62 Stat. 1248; June 28, 1950, ch. 381, Sec. 3, 64 Stat.

261; June 16, 1951, ch. 141, Sec. 8(b), 65 Stat. 75; Aug. 7, 1953,

ch. 348, title I, Sec. 104, 67 Stat. 472; Pub. L. 93-618, title I,

Sec. 171(b), Jan. 3, 1975, 88 Stat. 2009; Pub. L. 100-449, title

III, Sec. 301(c), Sept. 28, 1988, 102 Stat. 1868; Pub. L. 103-465,

title IV, Sec. 401(a)(1), Dec. 8, 1994, 108 Stat. 4957.)

-REFTEXT-

REFERENCES IN TEXT

The Soil Conservation and Domestic Allotment Act, as amended,

referred to in subsec. (a), is act Apr. 27, 1935, ch. 85, 49 Stat.

163, as amended, which is classified generally to chapter 3B (Sec.

590a et seq.) of Title 16, Conservation. For complete

classification of this Act to the Code, see section 590q of Title

16 and Tables.

The Tariff Act of 1930, referred to in subsec. (c), is act June

17, 1930, ch. 497, 46 Stat. 590, as amended, which is classified

generally to chapter 4 (Sec. 1202 et seq.) of Title 19, Customs

Duties. For complete classification of this Act to the Code, see

section 1654 of Title 19 and Tables.

-COD-

CODIFICATION

Another section 22 of act May 12, 1933, amended section 781 of

Title 12, Banks and Banking.

-MISC3-

AMENDMENTS

1994 - Subsec. (f). Pub. L. 103-465 amended subsec. (f)

generally. Prior to amendment, subsec. (f) read as follows: ''No

trade agreement or other international agreement heretofore or

hereafter entered into by the United States shall be applied in a

manner inconsistent with the requirements of this section; except

that the President may, pursuant to articles 705.5 and 707 of the

United States-Canada Free-Trade Agreement, exempt products of

Canada from any import restriction imposed under this section.''

1988 - Subsec. (f). Pub. L. 100-449 inserted before period at end

''; except that the President may, pursuant to articles 705.5 and

707 of the United States-Canada Free-Trade Agreement, exempt

products of Canada from any import restriction imposed under this

section''.

1975 - Subsecs. (a), (b). Pub. L. 93-618 substituted ''United

States International Trade Commission'' for ''United States Tariff

Commission''.

1953 - Subsec. (b) amended by subsec. (c) of section 8 of act

June 16, 1951, as added to section 8 by act Aug. 7, 1953, which

added second paragraph to subsec. (b).

1951 - Subsec. (f). Act June 16, 1951, amended subsec. (f)

generally to provide that no trade agreement concessions can be

construed to interfere with the operation of agricultural programs.

1950 - Subsec. (a). Act June 28, 1950, placed upon the Secretary

of Agriculture the responsibility of notifying the President

whenever the Secretary believes or has reason to believe that any

article or articles are being or practically certain to be brought

into this country so as to render, or tend to render ineffective or

materially interfere with programs undertaken under this chapter.

Subsecs. (b) to (e). Act June 28, 1950, reenacted subsecs. (b) to

(e) without change.

Subsec. (f). Act June 28, 1950, made certain that future

international agreements or amendments to existing agreements give

effect to this section within the framework of the general

agreements on tariffs and trade.

1948 - Act July 3, 1948, amended section generally to extend

authority of this section to agriculture products as well as

commodities; to extend such authority to cover articles the import

of which affects any loan, purchase, or other Departmental

operation or program; to make quantitative limitation restrictions

applicable to the total quantity of an article imported during a

representative period as determined by the President, rather than

to each country's average annual quantity of the article imported

during the period from Jan. 1, 1929, to Dec. 31, 1933, as formerly

provided; to give the President a specific grant of authority to

describe designated articles by physical qualities, value, use, or

upon such bases as he determines; to clarify definition respecting

authorized fees, which formerly were considered duties for some

purposes, so that they no longer shall be considered as duties for

the purpose of granting any preferential concession under any

international obligation of the United States; and, to prohibit the

enforcement of a proclamation under this section which would be in

contravention to any treaty or international agreement to which the

United States is a part.

1940 - Subsecs. (a) to (c). Act Jan. 25, 1940, amended subsecs.

(a) to (c) generally.

1936 - Act Feb. 29, 1936, inserted ''or the Soil Conservation and

Domestic Allotment Act, as amended'' after ''this chapter''

wherever appearing, and substituted ''any'' for ''an adjustment''

wherever appearing.

EFFECTIVE DATE OF 1994 AMENDMENT

Section 401(a)(2) of Pub. L. 103-465 provided that: ''The

amendment made by paragraph (1) (amending this section) shall take

effect on the date of entry into force of the WTO Agreement with

respect to the United States (Jan. 1, 1995), except that with

respect to wheat, that amendment shall take effect on the later of

such date or September 12, 1995.''

EFFECTIVE AND TERMINATION DATES OF 1988 AMENDMENT

Amendment by Pub. L. 100-449 effective on the date the United

States-Canada Free-Trade Agreement enters into force (Jan. 1,

1989), and to cease to have effect on the date the Agreement ceases

to be in force, see section 501(a), (c), of Pub. L. 100-449, set

out in a note under section 2112 of Title 19, Customs Duties.

EFFECTIVE DATE OF 1948 AMENDMENT

Section 6 of title I of act July 3, 1948, provided that: ''This

title (enacting provisions set out as notes under sections 1281,

1282, and 1312 of this title and section 713a-8 of Title 15,

Commerce and Trade) shall take effect on January 1, 1949, except

that sections 3 and 4 (amending this section and section 590h of

Title 16, Conservation) shall take effect on the date of enactment

of this Act (July 3, 1948).''

CONSTITUTIONALITY

Unconstitutionality of processing and floor stock taxes, see note

set out under section 616 of this title.

VALIDITY OF SECTION AFFIRMED

Act June 3, 1937, affirmed and validated, and reenacted without

change the provisions of this section. See note set out under

section 601 of this title.

REPORT TO CONGRESS ON TERMINATION OR SUSPENSION OF QUANTITATIVE

LIMITATIONS OR FEES

Pub. L. 101-624, title XV, Sec. 1554, Nov. 28, 1990, 104 Stat.

3697, directed Secretary of Agriculture to report to Congress

before effective date of suspension or termination of any

quantitative limitations or fees in effect under 7 U.S.C. 624 on

consequences of lifting of limitations or fees, prior to repeal by

Pub. L. 104-127, title II, Sec. 281(a), Apr. 4, 1996, 110 Stat.

980.

INTERFERENCE WITH TOBACCO PRICE SUPPORT PROGRAM

Pub. L. 100-418, title IV, Sec. 4609, Aug. 23, 1988, 102 Stat.

1411, provided that: ''It is the sense of Congress that -

''(1) the amounts of assessments collected under the

no-net-cost tobacco program can be an indicator of import injury

and material interference with the tobacco price support program

administered by the Secretary of Agriculture; and

''(2) for purposes of any investigation conducted under section

22(a) of the Agricultural Adjustment Act (7 U.S.C. 624(a)),

reenacted with amendments by the Agricultural Marketing Agreement

Act of 1937, with respect to tobacco, or articles containing

tobacco, imported into the United States, the International Trade

Commission should take into account, as if they are costs to the

Federal government, contributions and assessments imposed under

sections 106A and 106B of the Agricultural Act of 1949 (7 U.S.C.

1445-1 and 1445-2) in determining whether such imported tobacco

or articles containing tobacco materially interfere with the

tobacco price support program carried out by the Secretary of

Agriculture.''

DAIRY IMPORT STUDY BY SECRETARY OF AGRICULTURE; REPORT TO CONGRESS

BY JAN. 1, 1975

Pub. L. 91-524, title II, Sec. 205, as added Pub. L. 93-86, Sec.

1(6), Aug. 10, 1973, 87 Stat. 223; amended Pub. L. 93-125, Sec.

1(a)(i), Oct. 18, 1973, 87 Stat. 450, authorized the Secretary of

Agriculture to determine the effect upon domestic dairy producers,

handlers, and processors and upon consumers of increases in the

level of imports, if any, of dairy products and report his

findings, together with any recommendations he may have with

respect to import quotas or other matters, to the Congress of the

United States no later than Jan. 1, 1975, defined dairy products as

including (1) all forms of milk and dairy products, butterfat, milk

solids-not-fat, and any combination or mixture thereof; (2) any

article, compound, or mixture containing 5 per centum or more of

butterfat, or milk solids-not-fat, or any combinations of the two;

and (3) lactose, and other derivatives of milk, butterfat, or milk

solids-not-fat, if imported commercially for any food use, and

excluded from the definition of dairy products (1) casein,

caseinates, industrial casein, industrial caseinates, or any other

industrial products, not to be used in any form for any food use,

or an ingredient of food; or (2) articles not normally considered

to be dairy products, such as candy, bakery goods, and other

similar articles.

-EXEC-

PROC. NO. 3178. QUOTA ON BUTTER SUBSTITUTES

Proc. No. 3178, Apr. 17, 1957, 22 F.R. 2701, provided:

WHEREAS, pursuant to section 22 of the Agricultural Adjustment

Act, as amended (7 U.S.C. 624), the Secretary of Agriculture

advised me that there was reason to believe that butter

substitutes, including butter oil, containing 45 per centum or more

of butterfat, which are dutiable under paragraph 709 of the Tariff

Act of 1930, as amended, are practically certain to be imported

into the United States under such conditions and in such quantities

as to render or tend to render ineffective, or materially interfere

with, the price-support program undertaken by the Department of

Agriculture with respect to milk and butterfat, or to reduce

substantially the amount of products processed in the United States

from domestic milk and butterfat with respect to which such program

of the Department of Agriculture is being undertaken; and

WHEREAS on November 17, 1956, under the authority of the said

section 22, I caused the United States Tariff Commission (now the

United States International Trade Commission) to make an

investigation with respect to this matter; and

WHEREAS, in accordance with the said section 22, as implemented

by Executive Order No. 7233 of November 23, 1935, the said Tariff

Commission has made such investigation and has reported to me its

findings and recommendations made in connection therewith; and

WHEREAS, on the basis of the said investigation and report of the

Tariff Commission, I find that butter substitutes, including butter

oil, containing 45 per centum or more of butterfat and classifiable

under paragraph 709 of the Tariff Act of 1930 are practically

certain to be imported into the United States under such conditions

and in such quantities as to materially interfere with the said

price-support program with respect to milk and butterfat, and to

reduce substantially the amount of products processed in the United

States from domestic milk and butterfat with respect to which said

price-support program is being undertaken; and

WHEREAS I find and declare that the imposition of the

quantitative limitations hereinafter proclaimed is shown by such

investigation of the said Tariff Commission to be necessary in

order that the entry, or withdrawal from warehouse, for consumption

of such butter substitutes, including butter oil, will not

materially interfere with the said price-support program or reduce

substantially the amount of products processed in the United States

from domestic milk and butterfat with respect to which the said

price-support program is being undertaken:

NOW, THEREFORE, I, DWIGHT D. EISENHOWER, President of the United

States of America, acting under and by virtue of the authority

vested in me by the said section 22 of the Agricultural Adjustment

Act (this section), do hereby proclaim that the total aggregate

quantity of butter substitutes, including butter oil, containing 45

per centum or more of butterfat and classifiable under paragraph

709 of the Tariff Act of 1930, as amended, which shall be permitted

to be entered, or withdrawn from warehouse, for consumption during

the calendar year 1958 and each subsequent calendar year shall not

exceed 1,200,000 pounds. The specified quantities of the named

articles which may be entered, or withdrawn from warehouse, for

consumption are not proportionately less than 50 per centum of the

total quantities of such articles entered, or withdrawn from

warehouse, for consumption during the representative period from

January 1, 1956, to December 31, 1956, inclusive.

IN WITNESS WHEREOF, I have hereunto set my hand and caused the

Seal of the United States of America to be affixed.

DONE at the City of Washington this fifteenth day of April in the

year of our Lord nineteen hundred and fifty-seven, and of

the Independence of the United States of America the one

hundred and eighty-first.

(seal) Dwight D. Eisenhower.

PROCLAMATION NO. 3306

Proc. No. 3306, Aug. 7, 1959, 24 F.R. 6407, which provided for

quotas on imports of rye, rye flour, and rye meal terminated on

June 30, 1961.

PROCLAMATION NO. 3378

Proc. No. 3378, Oct. 31, 1960, 25 F.R. 10449, relating to quotas

on imports of tung oil and tung nuts, was terminated by Proc. No.

3471, May 2, 1962, 27 F.R. 4271.

PROC. NO. 3428. IMPORT RESTRICTIONS ON CERTAIN COTTON PRODUCTS

Proc. No. 3428, Sept. 11, 1961, 26 F.R. 8535, provided:

WHEREAS, pursuant to section 22 of the Agricultural Adjustment

Act, as amended (7 U.S.C. 624), the Secretary of Agriculture

advised the President that he had reason to believe that certain

cotton products produced in any stage preceding the spinning into

yarn are being or are practically certain to be imported into the

United States under such conditions and in such quantities as to

render or tend to render ineffective, or materially interfere with,

the price-support program and other programs or operations

undertaken by the Department of Agriculture with respect to cotton

or products thereof, or to reduce substantially the amount of

cotton processed in the United States from cotton or products

thereof with respect to which any such program or operation is

being undertaken; and

WHEREAS, on January 18, 1961, under the authority of the said

section 22, the President requested the United States Tariff

Commission (now the United States International Trade Commission)

to make an investigation with respect to this matter; and

WHEREAS, in accordance with the said section 22, as implemented

by Executive Order No. 7233 of November 23, 1935, the Tariff

Commission has made such investigation and has reported to me its

findings and recommendations made in connection therewith; and

WHEREAS, on the basis of the investigation and report of the

Tariff Commission, I find that the articles with respect to which

import restrictions are hereinafter proclaimed are being or are

practically certain to be imported into the United States under

such conditions and in such quantities as to render or tend to

render ineffective, or materially interfere with, the price-support

program and other programs or operations undertaken by the

Department of Agriculture with respect to cotton or products

thereof; and

WHEREAS I find and declare that the important restrictions

hereinafter proclaimed are shown by such investigation of the

Tariff Commission to be necessary in order that the entry, or

withdrawal from warehouse, for consumption of the said articles

will not render or tend to render ineffective, or materially

interfere with, the price-support program and other programs or

operations undertaken by the Department of Agriculture with respect

to cotton or products thereof;

NOW, THEREFORE, I, JOHN F. KENNEDY, President of the United

States of America, acting under and by virtue of the authority

vested in me by section 22 of the Agricultural Adjustment Act, as

amended, do hereby proclaim that the total aggregate quantity of

cotton products produced in any stage preceding the spinning into

yarn, except cotton wastes, which may be entered, or withdrawn from

warehouse, for consumption in any 12-month period, beginning

September 11 in 1961 and in subsequent years shall not exceed 1,000

pounds, which permissible total quantity I find and declare to be

proportionately not less than 50 per centum of the total quantity

of such articles entered, or withdrawn from warehouse, for

consumption during the representative period from January 1, 1940,

to December 31, 1953, inclusive.

IN WITNESS WHEREOF, I have hereunto set my hand and caused the

Seal of the United States of America to be affixed.

DONE at the City of Washington this 11th day of September in the

year of our Lord nineteen hundred and sixty-one, and of the

Independence of the United States of America the one

hundred and eighty-sixth.

(seal) John F. Kennedy.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 625, 672, 673, 1392, 1854

of this title; title 19 sections 1360, 1366, 1887, 2581, 2703,

3011, 3203, 3333, 3391.

-CITE-

7 USC Sec. 625 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 26 - AGRICULTURAL ADJUSTMENT

SUBCHAPTER III - COMMODITY BENEFITS

-HEAD-

Sec. 625. Review of Burley tobacco imports by Secretary of

Agriculture; price-support levels; excessive stocks

-STATUTE-

The Secretary of Agriculture shall review, pursuant to section

624 of this title, the effects of imports of Burley tobacco on the

Department of Agriculture's Burley tobacco price-support program

whenever (1) the level of price support for any crop of Burley

tobacco is increased by less than 65 per centum of the amount that

it would have otherwise been increased if the level of price

support would have been determined in accordance with section

1445(b) of this title, or (2) stocks of Burley tobacco held by

producer-owned cooperative marketing associations having loan

agreements with the Commodity Credit Corporation exceed 20 per

centum of the national marketing quota proclaimed by the Secretary

for any such crop of Burley tobacco.

-SOURCE-

(Pub. L. 98-59, Sec. 3, July 25, 1983, 97 Stat. 296.)

-COD-

CODIFICATION

Section was not enacted as part of the Agricultural Adjustment

Act which comprises this chapter.

-CITE-

7 USC Sec. 626 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 26 - AGRICULTURAL ADJUSTMENT

SUBCHAPTER III - COMMODITY BENEFITS

-HEAD-

Sec. 626. Import inventory

-STATUTE-

(a) Compilation and report on imports

The Secretary of Agriculture, in consultation with the Secretary

of Commerce, the International Trade Commission, the United States

Trade Representative, and the heads of all other appropriate

Federal agencies, shall compile and report to the public statistics

on the total value and quantity of imported raw and processed

agricultural products. The report shall be limited to those

statistics that such agencies already obtain for other purposes.

(b) Compilation and report on consumption

The Secretary shall compile and report to the public data on the

total quantity of production and consumption of domestically

produced raw and processed agricultural products.

(c) Issuing of data

The reports required by this section shall be made in a format

that correlates statistics for the quantity and value of imported

agricultural products to the production and consumption of domestic

agricultural products. The Secretary shall issue such reports on

an annual basis, with the first report required not later than 1

year after August 23, 1988.

-SOURCE-

(Pub. L. 100-418, title IV, Sec. 4502, Aug. 23, 1988, 102 Stat.

1403.)

-COD-

CODIFICATION

Section was enacted as part of the Agricultural Competitiveness

and Trade Act of 1988 and also as part of the Omnibus Trade and

Competitiveness Act of 1988, and not as part of the Agricultural

Adjustment Act which comprises this chapter.

-CITE-

7 USC Sec. 627 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 26 - AGRICULTURAL ADJUSTMENT

SUBCHAPTER III - COMMODITY BENEFITS

-HEAD-

Sec. 627. Dairy forward pricing pilot program

-STATUTE-

(a) Pilot program required

Not later than 90 days after November 29, 1999, the Secretary of

Agriculture shall establish a temporary pilot program under which

milk producers and cooperatives are authorized to voluntarily enter

into forward price contracts with milk handlers.

(b) Minimum milk price requirements

Payments made by milk handlers to milk producers and

cooperatives, and prices received by milk producers and

cooperatives, under the forward contracts shall be deemed to

satisfy -

(1) all regulated minimum milk price requirements of paragraphs

(B) and (F) of subsection (5) of section 608c of this title; and

(2) the requirement of paragraph (C) of such subsection

regarding total payments by each handler.

(c) Milk covered by pilot program

(1) Covered milk

The pilot program shall apply only with respect to the

marketing of federally regulated milk that -

(A) is not classified as Class I milk or otherwise intended

for fluid use; and

(B) is in the current of interstate or foreign commerce or

directly burdens, obstructs, or affects interstate or foreign

commerce in federally regulated milk.

(2) Relation to Class I milk

To assist milk handlers in complying with the limitation in

paragraph (1)(A) without having to segregate or otherwise

individually track the source and disposition of milk, a milk

handler may allocate milk receipts from producers, cooperatives,

and other sources that are not subject to a forward contract to

satisfy the handler's obligations with regard to Class I milk

usage.

(d) Duration

The authority of the Secretary of Agriculture to carry out the

pilot program shall terminate on December 31, 2004. No forward

price contract entered into under the program may extend beyond

that date.

(e) Study and report on effect of pilot program

(1) Study

The Secretary of Agriculture shall conduct a study on forward

contracting between milk producers and cooperatives and milk

handlers to determine the impact on milk prices paid to producers

in the United States. To obtain information for the study, the

Secretary may use the authorities available to the Secretary

under section 608d of this title, subject to the confidentiality

requirements of subsection (2) of such section.

(2) Report

Not later than April 30, 2002, the Secretary shall submit to

the Committee on Agriculture, Nutrition and Forestry of the

Senate and the Committee on Agriculture of the House of

Representatives a report containing the results of the study.

-SOURCE-

(May 12, 1933, ch. 25, title I, Sec. 23, as added Pub. L. 106-113,

div. B, Sec. 1000(a)(8) (Sec. 3), Nov. 29, 1999, 113 Stat. 1536,

1501A-519.)

-COD-

CODIFICATION

Another section 23 of act May 12, 1933 amended former section 781

of Title 12, Banks and Banking.

-CITE-

7 USC SUBCHAPTER IV - REFUNDS 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 26 - AGRICULTURAL ADJUSTMENT

SUBCHAPTER IV - REFUNDS

.

-HEAD-

SUBCHAPTER IV - REFUNDS

-MISC1-

APPROPRIATIONS FOR REFUNDS AND PAYMENTS OF PROCESSING AND RELATED

TAXES AND LIMITATIONS THEREON

Acts June 25, 1938, ch. 681, 52 Stat. 1150; May 6, 1939, ch. 115,

Sec. 1, 53 Stat. 661, 662; Feb. 12, 1940, ch. 28, Sec. 1, 54 Stat.

36; Mar. 25, 1940, ch. 71, title I, 54 Stat. 61; May 31, 1941, ch.

156, title I, Sec. 1, 55 Stat. 218; Mar. 10, 1942, ch. 178, title

I, Sec. 1, 56 Stat. 156; June 30, 1943, ch. 179, title I, 57 Stat.

257; Apr. 22, 1944, ch. 175, title I, Sec. 1, 58 Stat. 201; Apr.

24, 1945, ch. 92, title I, 59 Stat. 62; July 20, 1946, ch. 588,

title I, 60 Stat. 574.

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7 USC Sec. 641 to 659 01/06/03

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TITLE 7 - AGRICULTURE

CHAPTER 26 - AGRICULTURAL ADJUSTMENT

SUBCHAPTER IV - REFUNDS

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Sec. 641 to 659. Omitted

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CODIFICATION

Section 641, act June 22, 1936, ch. 690, Sec. 601, 49 Stat. 1739,

related to refunds in cases where exports, deliveries for

charitable distribution or use, manufacture of large cotton bags,

or the decrease in rate of processing tax took place prior to

January 6, 1936, specified persons entitled to refunds, and filing

and determination of claims.

Section 642, acts June 22, 1936, ch. 690, Sec. 602, 49 Stat.

1740; Aug. 10, 1939, ch. 666, title IX, Sec. 911, 53 Stat. 1402,

specified amount of refunds on articles processed wholly or in

chief value from a commodity subject to processing tax, defined

certain terms, prohibited payments with respect to retail floor

stocks with some exceptions, and made final determinations of

Commissioner of Internal Revenue with respect to such payments.

Section 643, act June 22, 1936, ch. 690, Sec. 603, 49 Stat. 1742,

made applicable proclamations, certificates, and regulations of

this chapter for purpose of determining amount of refunds or

payments authorized by sections 641 and 642.

Section 644, acts June 22, 1936, ch. 690, Sec. 902, 49 Stat.

1747; Oct. 21, 1942, ch. 619, title V, Sec. 504(a), (c), 510(e), 56

Stat. 957, 968, conditioned allowance of refunds on a showing by

claimant that he bore burden of tax or that he repaid such amount

unconditionally to his vendee.

Section 645, acts June 22, 1936, ch. 690, Sec. 903, 49 Stat.

1747; June 29, 1939, ch. 247, title IV, Sec. 405, 53 Stat. 884,

prohibited refunds except where claims were filed after June 22,

1936, and prior to January 1, 1940, and provided for regulations

relating to filing of such claims.

Section 646, act June 22, 1936, ch. 690, Sec. 904, 49 Stat. 1747,

provided that no action could be brought before expiration of

eighteen months from date of filing of a claim, or after expiration

of two years from date of mailing to claimant of a notice

disallowing the claim.

Section 647, act June 22, 1936, ch. 690, Sec. 905, 49 Stat. 1748,

provided for District Courts of the United States to have

concurrent jurisdiction with Court of Claims or refund cases

regardless of amount in controversy.

Section 648, acts June 22, 1936, ch. 690, Sec. 906, 49 Stat.

1748; Oct. 21, 1942, ch. 619, title V, Sec. 504(a), (c), 510(b),

(f)(1), (g)-(j), 56 Stat. 957, 967; June 25, 1948, ch. 646, Sec.

32, 62 Stat. 991; May 24, 1949, ch. 139, Sec. 127, 63 Stat. 107,

related to procedure on claims for refunds of processing taxes,

review of actions of Commissioner of Internal Revenue by Tax Court,

and review of Tax Court decisions by Courts of Appeals.

Section 649, act June 22, 1936, ch. 690, Sec. 907, 49 Stat. 1751,

related to evidence and presumptions.

Section 650, act June 22, 1936, ch. 690, Sec. 908, 49 Stat. 1753,

placed limitations on allowance of claims and interest.

Section 651, act June 22, 1936, ch. 690, Sec. 909, 49 Stat. 1753,

provided that, in absence of fraud or mistake, findings of fact and

conclusions of law of Commissioner was conclusive on any other

administrative or accounting officer.

Section 652, act June 22, 1936, ch. 690, Sec. 910, 49 Stat. 1753,

related to liability of collectors.

Section 653, act June 22, 1936, ch. 690, Sec. 911, 49 Stat. 1753,

made provisions of former sections 644-659 of this title

inapplicable to certain refunds.

Section 654, act June 22, 1936, ch. 690, Sec. 912, 49 Stat. 1754,

provided that suits or proceedings, and claims barred on June 22,

1936, shall remain barred.

Section 655, act June 22, 1936, ch. 690, Sec. 913, 49 Stat. 1754,

defined ''tax'', ''processing tax,'' ''commodity'', ''article'',

''refund'', and ''Agricultural Adjustment Act''.

Section 656, act June 22, 1936, ch. 690, Sec. 914, 49 Stat. 1754,

related to authority of Commissioner of Internal Revenue.

Section 657, act June 22, 1936, ch. 690, Sec. 915, 49 Stat. 1755,

relating to salaries and administrative expenses, made funds

available until June 30, 1937, and was not extended.

Section 658, act June 22, 1936, ch. 690, Sec. 916, 49 Stat. 1755,

provided that Commissioner of Internal Revenue, with approval of

Secretary of Agriculture, prescribe rules and regulations for

carrying out provisions of sections 644 to 659 of this title.

Section 659, act June 22, 1936, ch. 690, Sec. 917, 49 Stat. 1755,

related to personnel.

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