---
kind: "range"
citation: "7 U.S.C. §§ 4806–4809"
title: "7"
from: "4806"
to: "4809"
count: 4
release: "119-102"
url: "https://uscodex.org/usc/7/4806..4809"
---

# §4806. National Pork Producers Delegate Body

- (a) **Establishment and appointment—** The [order](/usc/7/2902.md?p=10) shall provide for the establishment and appointment by the [Secretary](/usc/7/4802.md?p=14), not later than 60 days after the effective date of such [order](/usc/7/2902.md?p=10), of a National [Pork](/usc/7/4802.md?p=9) [Producers](/usc/7/4802.md?p=11) [Delegate Body](/usc/7/4802.md?p=3).
- (b) **Membership; number of producer members; number of importer members—**
  - (1) The [Delegate Body](/usc/7/4802.md?p=3) shall consist of—
    - (A) [producers](/usc/7/4802.md?p=11), as appointed by the [Secretary](/usc/7/4802.md?p=14) in accordance with [paragraph (2)](#b-2), from nominees submitted as follows:
      - (i) in the case of the initial [Delegate Body](/usc/7/4802.md?p=3) appointed by each [State](/usc/7/4802.md?p=15) in accordance with [section 4807 of this title](/usc/7/4807.md).
      - (ii) in the case of each succeeding [Delegate Body](/usc/7/4802.md?p=3), each [State association](/usc/7/4802.md?p=16) shall submit nominations selected by such association pursuant to a selection process that—
        - (I) is approved by the [Secretary](/usc/7/4802.md?p=14);
        - (II) requires public notice of the process to be given at least one week in advance by publication in a newspaper or newspaper of general circulation in such [State](/usc/7/4802.md?p=15) and in pork production and agriculture trade publications; and
        - (III) that provides complete and equal access to the nominating process to every [producer](/usc/7/4802.md?p=11) who has paid all assessments due under [section 4809 of this title](/usc/7/4809.md) and not demanded a refund under [section 4813 of this title](/usc/7/4813.md),

        or pursuant to an election of nominees conducted in accordance with [section 4807 of this title](/usc/7/4807.md).

      - (iii) In the case of a [State](/usc/7/4802.md?p=15) that has a [State association](/usc/7/4802.md?p=16) that does not submit nominations or that does not have a [State association](/usc/7/4802.md?p=16), such [State](/usc/7/4802.md?p=15) shall submit nominations in a manner prescribed by the [Secretary](/usc/7/4802.md?p=14); and
    - (B) [importers](/usc/7/4802.md?p=5), as appointed by the [Secretary](/usc/7/4802.md?p=14) in accordance with [paragraph (3)](#b-3).
  - (2) The number of [producer](/usc/7/4802.md?p=11) members appointed to the [Delegate Body](/usc/7/4802.md?p=3) from each [State](/usc/7/4802.md?p=15) shall equal at least two members, and additional members, allocated as follows:
    - (A) Shares shall be assigned to each [State](/usc/7/4802.md?p=15)—
      - (i) for the 1986 calendar year, on the basis of one share for each $400,000 of farm market value of [porcine animals](/usc/7/4802.md?p=8) marketed from such [State](/usc/7/4802.md?p=15) (as determined by the [Secretary](/usc/7/4802.md?p=14) based on the annual average of farm market value in the most recent 3 calendar years preceding such year), rounded to the nearest $400,000; and
      - (ii) for each calendar year thereafter, on the basis of one share for each $1,000 of the aggregate amount of assessments collected (minus refunds under [section 4813 of this title](/usc/7/4813.md)) in such [State](/usc/7/4802.md?p=15) from [persons](/usc/7/4802.md?p=7) described in section [4809(a)(1)(A)](/usc/7/4809.md?p=a-1-A) and [(B)](/usc/7/4809.md?p=a-1-B) of this title, rounded to the nearest $1,000.
    - (B) If during a calendar year the number of such shares of a [State](/usc/7/4802.md?p=15) is—
      - (i) less than 301, the [State](/usc/7/4802.md?p=15) shall receive a total of two [producer](/usc/7/4802.md?p=11) members;
      - (ii) more than 300 but less than 601, the [State](/usc/7/4802.md?p=15) shall receive a total of three [producer](/usc/7/4802.md?p=11) members;
      - (iii) more than 600 but less than 1,001, the [State](/usc/7/4802.md?p=15) shall receive a total of four [producer](/usc/7/4802.md?p=11) members; and
      - (iv) more than 1,000, the [State](/usc/7/4802.md?p=15) shall receive four [producer](/usc/7/4802.md?p=11) members, plus one additional member for each 300 additional shares in excess of 1,000 shares, rounded to the nearest 300.
  - (3) The number of [importer](/usc/7/4802.md?p=5) members appointed to the [Delegate Body](/usc/7/4802.md?p=3) shall be determined as follows:
    - (A) Shares shall be assigned to [importers](/usc/7/4802.md?p=5)—
      - (i) for the 1986 calendar year, on the basis of one share for each $575,000 of market value of marketed [porcine animals](/usc/7/4802.md?p=8), [pork](/usc/7/4802.md?p=9), or [pork products](/usc/7/4802.md?p=10) (as determined by the [Secretary](/usc/7/4802.md?p=14) based on the annual average of imports in the most recent 3 calendar years preceding such year), rounded to the nearest $575,000; and
      - (ii) for each calendar year thereafter, on the basis of one share for each $1,000 of the aggregate amount of assessments collected (minus refunds under [section 4813 of this title](/usc/7/4813.md)) from [importers](/usc/7/4802.md?p=5), rounded to the nearest $1,000.
    - (B) The number of [importer](/usc/7/4802.md?p=5) members appointed to the [Delegate Body](/usc/7/4802.md?p=3) shall equal a total of—
      - (i) three members for the first 1,000 such shares; and
      - (ii) one additional member for each 300 additional shares in excess of 1,000 shares, rounded to the nearest 300.
- (c) **Voting; quorum; votes necessary for decision—**
  - (1) A [producer](/usc/7/4802.md?p=11) member of the [Delegate Body](/usc/7/4802.md?p=3) may, in a vote conducted by the [Delegate Body](/usc/7/4802.md?p=3) for which the member is present, cast a number of votes equal to—
    - (A) the number of shares attributable to the [State](/usc/7/4802.md?p=15) of the member; divided by
    - (B) the number of [producer](/usc/7/4802.md?p=11) members from such [State](/usc/7/4802.md?p=15).
  - (2) An [importer](/usc/7/4802.md?p=5) member of the [Delegate Body](/usc/7/4802.md?p=3) may, in a vote conducted by the [Delegate Body](/usc/7/4802.md?p=3) for which the member is present, cast a number of votes equal to—
    - (A) the number of shares allocated to [importers](/usc/7/4802.md?p=5); divided by
    - (B) the number of [importer](/usc/7/4802.md?p=5) members.
  - (3) Members entitled to cast a majority of the votes (including fractions thereof) on the [Delegate Body](/usc/7/4802.md?p=3) shall constitute a quorum.
  - (4) A majority of the votes (including fractions thereof) cast at a meeting at which a quorum is present shall be decisive of a motion or election presented to the [Delegate Body](/usc/7/4802.md?p=3) for a vote.
- (d) **Term of office—** A member of the [Delegate Body](/usc/7/4802.md?p=3) shall serve for a term of 1 year, except that the term of a member of the [Delegate Body](/usc/7/4802.md?p=3) shall continue until the successor of such member, if any, is appointed in accordance with [subsection (b)(1)](#b-1).
- (e) **Chairman—**
  - (1) At the first annual meeting, the [Delegate Body](/usc/7/4802.md?p=3) shall select a Chairman by a majority vote.
  - (2) At each annual meeting thereafter, the President of the [Board](/usc/7/1502.md?p=b-4) shall serve as the Chairman of the [Delegate Body](/usc/7/4802.md?p=3).
- (f) **Compensation—** A member of the [Delegate Body](/usc/7/4802.md?p=3) shall serve without compensation, but may be reimbursed by the [Board](/usc/7/1502.md?p=b-4) from assessments collected under [section 4809 of this title](/usc/7/4809.md) for transportation expenses incurred in performing duties as a member of the [Delegate Body](/usc/7/4802.md?p=3).
- (g) **Nomination of members to National Pork Board; annual meeting; majority vote in person to nominate—**
  - (1) The [Delegate Body](/usc/7/4802.md?p=3) shall—
    - (A) nominate—
      - (i) not less than 23 [persons](/usc/7/4802.md?p=7) for appointment to the [Board](/usc/7/1502.md?p=b-4), for the first year for which nominations are made; and
      - (ii) not less than 1½ [persons](/usc/7/4802.md?p=7) (rounded up to the nearest [person](/usc/7/4802.md?p=7)) for each vacancy in the [Board](/usc/7/1502.md?p=b-4) that requires nominations thereafter; and
    - (B) submit such nominations to the [Secretary](/usc/7/4802.md?p=14).
  - (2) The [Delegate Body](/usc/7/4802.md?p=3) shall meet annually to make such nominations.
  - (3) A majority of the [Delegate Body](/usc/7/4802.md?p=3) shall vote in [person](/usc/7/4802.md?p=7) in [order](/usc/7/2902.md?p=10) to nominate members to the [Board](/usc/7/1502.md?p=b-4).
- (h) **Duties and functions—** The [Delegate Body](/usc/7/4802.md?p=3) shall—
  - (1) recommend the rate of assessment prescribed by the initial [order](/usc/7/2902.md?p=10) and any increase in such rate pursuant to [section 4809(5)](/usc/7/4809.md)[^1] of this title; and
  - (2) determine the percentage of the aggregate amount of assessments collected in a [State](/usc/7/4802.md?p=15) that each [State association](/usc/7/4802.md?p=16) shall receive under [section 4809(c)(1) of this title](/usc/7/4809.md?p=c-1).

# §4807. Selection of Delegate Body

- (a) **Nominations—**
  - (1) Not later than 30 days after the effective date of the [order](/usc/7/2902.md?p=10), the [Secretary](/usc/7/4802.md?p=14) shall call for the nomination within each [State](/usc/7/4802.md?p=15) of candidates for appointment as [producer](/usc/7/4802.md?p=11) members of the initial [Delegate Body](/usc/7/4802.md?p=3).
  - (2) Each [State association](/usc/7/4802.md?p=16) may nominate [producers](/usc/7/4802.md?p=11) who are residents of such [State](/usc/7/4802.md?p=15) to serve as such candidates.
  - (3)
    - (A) [^1] Additional [producers](/usc/7/4802.md?p=11) who are residents of a [State](/usc/7/4802.md?p=15) may be nominated as candidates of such [State](/usc/7/4802.md?p=15) by written petition signed by 100 [producers](/usc/7/4802.md?p=11) or 5 percent of the [pork](/usc/7/4802.md?p=9) [producers](/usc/7/4802.md?p=11) in such [State](/usc/7/4802.md?p=15), whichever is less. The [Secretary](/usc/7/4802.md?p=14) shall establish and publicize the procedures governing the time and place for filing petitions.
- (b) **Election; eligibility to vote; notice of election; number of members nominated—**
  - (1) After the [Secretary](/usc/7/4802.md?p=14) has received the nominations required under [subsection (a)](#a) and not later than 45 days after the effective date of the [order](/usc/7/2902.md?p=10), the [Secretary](/usc/7/4802.md?p=14) shall call for an election within each [State](/usc/7/4802.md?p=15) of [persons](/usc/7/4802.md?p=7) for appointment as [producer](/usc/7/4802.md?p=11) members of the initial [Delegate Body](/usc/7/4802.md?p=3).
  - (2) To be eligible to vote in an election held in a [State](/usc/7/4802.md?p=15), a [person](/usc/7/4802.md?p=7) must be a [producer](/usc/7/4802.md?p=11) who is a resident of such [State](/usc/7/4802.md?p=15).
  - (3)
    - (A) Notice of each such election shall be given by the [Secretary](/usc/7/4802.md?p=14)—
      - (i) by publication in a newspaper or newspapers of general circulation in each [State](/usc/7/4802.md?p=15), and in pork production and agriculture trade publications, at least 1 week prior to the election; and
      - (ii) in any other reasonable manner determined by the [Secretary](/usc/7/4802.md?p=14).
    - (B) The notice shall set forth the period of time and places for voting and such other information as the [Secretary](/usc/7/4802.md?p=14) considers necessary.
  - (4) Each [State](/usc/7/4802.md?p=15) shall nominate to the [Delegate Body](/usc/7/4802.md?p=3) the number of [producer](/usc/7/4802.md?p=11) members required under [section 4806(b)(2)(B) of this title](/usc/7/4806.md?p=b-2-B).
  - (5) The [producers](/usc/7/4802.md?p=11) who receive the highest number of votes in each [State](/usc/7/4802.md?p=15) shall be nominated for appointment as members of the [Delegate Body](/usc/7/4802.md?p=3) from such [State](/usc/7/4802.md?p=15).
- (c) **Subsequent nominations and elections to be administered by Board; time of election; voting eligibility—**
  - (1) Except as provided in [paragraph (3)](#c-3), after the election of the [producer](/usc/7/4802.md?p=11) members of the initial [Delegate Body](/usc/7/4802.md?p=3), the [Board](/usc/7/1502.md?p=b-4) shall administer all subsequent nominations and elections of the [producer](/usc/7/4802.md?p=11) members to be nominated for appointment as members of the [Delegate Body](/usc/7/4802.md?p=3), with the assistance of the [Secretary](/usc/7/4802.md?p=14) and in accordance with subsections [(a)(3)](#a-3) and [(b)](#b).
  - (2) The [Board](/usc/7/1502.md?p=b-4) shall determine the timing of an election referred to in [paragraph (1)](#c-1).
  - (3) To be eligible to vote in such an election in a [State](/usc/7/4802.md?p=15), a [person](/usc/7/4802.md?p=7) must—
    - (A) be a [producer](/usc/7/4802.md?p=11) who is a resident of such [State](/usc/7/4802.md?p=15);
    - (B) have paid all assessments due under [section 4809 of this title](/usc/7/4809.md); and
    - (C) not demanded a refund of an assessment under [section 4813 of this title](/usc/7/4813.md).
- (d) **Nominating committee; appointment; nomination to fill position for pending election—**
  - (1) Prior to the expiration of the term of any [producer](/usc/7/4802.md?p=11) member of the [Delegate Body](/usc/7/4802.md?p=3), the [Board](/usc/7/1502.md?p=b-4) shall appoint a nominating [committee](/usc/7/2132.md?p=n) of [producers](/usc/7/4802.md?p=11) who are residents of the [State](/usc/7/4802.md?p=15) represented by such member.
  - (2) Such [committee](/usc/7/2132.md?p=n) shall nominate [producers](/usc/7/4802.md?p=11) of such [State](/usc/7/4802.md?p=15) as candidates to fill the position for which an election is to be held.
  - (3) Additional [producers](/usc/7/4802.md?p=11) who are residents of a [State](/usc/7/4802.md?p=15) may be nominated to fill such positions in accordance with [subsection (a)(3)](#a-3).

# §4808. National Pork Board

- (a)
  - (1) The [order](/usc/7/2902.md?p=10) shall provide for the establishment and appointment by the [Secretary](/usc/7/4802.md?p=14) of a 15-member National [Pork](/usc/7/4802.md?p=9) [Board](/usc/7/1502.md?p=b-4).
  - (2) [^1] The [Board](/usc/7/1502.md?p=b-4) shall consist of [producers](/usc/7/4802.md?p=11) representing at least 12 [States](/usc/7/4802.md?p=15) and [importers](/usc/7/4802.md?p=5) appointed by the [Secretary](/usc/7/4802.md?p=14) from nominations submitted under [section 4806(g) of this title](/usc/7/4806.md?p=g) .
  - (2) [^1] The [Board](/usc/7/1502.md?p=b-4) shall consist of [producers](/usc/7/4802.md?p=11) or [importers](/usc/7/4802.md?p=5) appointed by the [Secretary](/usc/7/4802.md?p=14) from nominations submitted under [section 4806(g) of this title](/usc/7/4806.md?p=g).
  - (3) A member of the [Board](/usc/7/1502.md?p=b-4) shall serve for a 3-year term, with no such member serving more than two consecutive 3-year terms, except that initial appointments to the [Board](/usc/7/1502.md?p=b-4) shall be staggered with an equal number of members appointed, to the maximum extent possible, to 1-year, 2-year, and 3-year terms, except that the term of a member of the [Board](/usc/7/1502.md?p=b-4) shall continue until the successor of such member, if any, is appointed in accordance with [paragraph (2)](#a-2).
  - (4) The [Board](/usc/7/1502.md?p=b-4) shall select its President by a majority vote.
  - (5)
    - (A) A majority of the members of the [Board](/usc/7/1502.md?p=b-4) shall constitute a quorum at a meeting of the [Board](/usc/7/1502.md?p=b-4).
    - (B) A majority of votes cast at a meeting at which a quorum is present shall determine a motion or election.
  - (6) A member of the [Board](/usc/7/1502.md?p=b-4) shall serve without compensation, but shall be reimbursed by the [Board](/usc/7/1502.md?p=b-4) from assessments collected under [section 4809 of this title](/usc/7/4809.md) for reasonable expenses incurred in performing duties as a member of the [Board](/usc/7/1502.md?p=b-4).
- (b)
  - (1) The [Board](/usc/7/1502.md?p=b-4) shall—
    - (A) develop, at the initiative of the [Board](/usc/7/1502.md?p=b-4) or other [person](/usc/7/4802.md?p=7), proposals for [promotion](/usc/7/4802.md?p=12), [research](/usc/7/4802.md?p=13), and [consumer information](/usc/7/4802.md?p=2) plans and projects;
    - (B) submit such plans and projects to the [Secretary](/usc/7/4802.md?p=14) for approval;
    - (C) administer the [order](/usc/7/2902.md?p=10), in accordance with the [order](/usc/7/2902.md?p=10) and this chapter;
    - (D) prescribe such rules as are necessary to carry out such [order](/usc/7/2902.md?p=10);
    - (E) receive, investigate, and report to the [Secretary](/usc/7/4802.md?p=14) complaints of violations of such [order](/usc/7/2902.md?p=10);
    - (F) make recommendations to the [Secretary](/usc/7/4802.md?p=14) with respect to amendments to such [order](/usc/7/2902.md?p=10); and
    - (G) employ a staff and conduct routine business.
  - (2) The [Board](/usc/7/1502.md?p=b-4) shall prepare and submit to the [Secretary](/usc/7/4802.md?p=14), for the approval of the [Secretary](/usc/7/4802.md?p=14), a budget for each fiscal year of anticipated expenses and disbursements of the [Board](/usc/7/1502.md?p=b-4) in the administration of the [order](/usc/7/2902.md?p=10), including the projected cost of—
    - (A) any [promotion](/usc/7/4802.md?p=12), [research](/usc/7/4802.md?p=13) or [consumer information](/usc/7/4802.md?p=2) plan or project to be conducted by the [Board](/usc/7/1502.md?p=b-4) directly or by way of [contract](/usc/7/518.md?p=4) or agreement; and
    - (B) the budgets, plans, or projects for which [State associations](/usc/7/4802.md?p=16) are to receive [funds](/usc/7/4531.md?p=5) pursuant to [section 4809(c)(1) of this title](/usc/7/4809.md?p=c-1).
  - (3) No plan, project, or budget referred to in paragraph [(1)](#b-1) or [(2)](#b-2) may become effective unless approved by the [Secretary](/usc/7/4802.md?p=14).
  - (4)
    - (A) The [Board](/usc/7/1502.md?p=b-4), with the approval of the [Secretary](/usc/7/4802.md?p=14), may enter into [contracts](/usc/7/518.md?p=4) or agreements with a [person](/usc/7/4802.md?p=7) for—
      - (i) the development and conduct of activities authorized under an [order](/usc/7/2902.md?p=10); and
      - (ii) the payment of the cost thereof with [funds](/usc/7/4531.md?p=5) collected through assessments under such [order](/usc/7/2902.md?p=10).
    - (B) Such [contract](/usc/7/518.md?p=4) or agreement shall require that—
      - (i) the contracting party develop and submit to the [Board](/usc/7/1502.md?p=b-4) a plan or project, together with a budget or budgets that include the estimated cost to be incurred under such plan or project;
      - (ii) such plan or project become effective on the approval of the [Secretary](/usc/7/4802.md?p=14); and
      - (iii) the contracting party—
        - (I) keep accurate records of all relevant transactions of the party;
        - (II) make periodic reports to the [Board](/usc/7/1502.md?p=b-4) of—
          - (aa) relevant activities the party has conducted; and
          - (bb) an accounting for [funds](/usc/7/4531.md?p=5) received and expended under such [contract](/usc/7/518.md?p=4); and
        - (III) make such other reports as the [Secretary](/usc/7/4802.md?p=14) or [Board](/usc/7/1502.md?p=b-4) may require.

# §4809. Assessments

- (a) **Collection and remission to Board; persons required to pay—**
  - (1) The [order](/usc/7/2902.md?p=10) shall provide that, not later than 30 days after the effective date of the [order](/usc/7/2902.md?p=10) under [section 4805(c) of this title](/usc/7/4805.md?p=c) an assessment shall be paid, in the manner prescribed in the [order](/usc/7/2902.md?p=10). Upon the appointment of the [Board](/usc/7/1502.md?p=b-4), the assessments held in escrow shall be distributed to the [Board](/usc/7/1502.md?p=b-4). Except as provided in [paragraph (3)](#a-3), assessments shall be payable by—
    - (A) each [producer](/usc/7/4802.md?p=11) for each [porcine animal](/usc/7/4802.md?p=8) described in subparagraph (A) or (C) of [section 4802(8) of this title](/usc/7/4802.md?p=8) produced in the [United States](/usc/7/6402.md?p=8) that is sold or slaughtered for sale;
    - (B) each [producer](/usc/7/4802.md?p=11) for each [porcine animal](/usc/7/4802.md?p=8) described in subsection[^1] 4802(8)(B) of this title that is sold; and
    - (C) each [importer](/usc/7/4802.md?p=5) for each [porcine animal](/usc/7/4802.md?p=8), [pork](/usc/7/4802.md?p=9), or [pork product](/usc/7/4802.md?p=10) that is [imported](/usc/7/4802.md?p=4) into the [United States](/usc/7/6402.md?p=8).
  - (2) Such assessment shall be collected and remitted to the [Board](/usc/7/1502.md?p=b-4) once it is appointed pursuant to [section 4808 of this title](/usc/7/4808.md), but, until that time, to the [Secretary](/usc/7/4802.md?p=14), who shall promptly proceed to distribute the [funds](/usc/7/4531.md?p=5) received by him in accordance with the provisions of [subsection (c)](#c), except that the [Secretary](/usc/7/4802.md?p=14) shall retain the [funds](/usc/7/4531.md?p=5) to be received by the [Board](/usc/7/1502.md?p=b-4) until such time as the [Board](/usc/7/1502.md?p=b-4) is appointed pursuant to [section 4808 of this title](/usc/7/4808.md), by—
    - (A) in the case of [subparagraph (A)](#a-1-A) of paragraph (1), the purchaser of the [porcine animal](/usc/7/4802.md?p=8) referred to in such subparagraph;
    - (B) in the case of [subparagraph (B)](#a-1-B) of paragraph (1), the [producer](/usc/7/4802.md?p=11) of the [porcine animal](/usc/7/4802.md?p=8) referred to in such subparagraph; and
    - (C) in the case of [subparagraph (C)](#a-1-C) of paragraph (1), the [importer](/usc/7/4802.md?p=5) referred to in such subparagraph.
  - (3) A [person](/usc/7/4802.md?p=7) is not required to pay an assessment for a [porcine animal](/usc/7/4802.md?p=8), [pork](/usc/7/4802.md?p=9), or [pork product](/usc/7/4802.md?p=10) under [paragraph (1)](#a-1) if such [person](/usc/7/4802.md?p=7) proves to the [Board](/usc/7/1502.md?p=b-4) that an assessment was paid previously under such paragraph by a [person](/usc/7/4802.md?p=7) for such [porcine animal](/usc/7/4802.md?p=8) (of the same category described in subparagraph (A), (B), or (C) of [section 4802(8) of this title](/usc/7/4802.md?p=8)), [pork](/usc/7/4802.md?p=9), or [pork product](/usc/7/4802.md?p=10).
- (b) **Rate of assessment; increase; waiver of collection of assessment—**
  - (1) Except as provided in [paragraph (2)](#b-2), the rate of assessment prescribed by the initial [order](/usc/7/2902.md?p=10) shall be the lesser of—
    - (A) 0.25 percent of the market value of the [porcine animal](/usc/7/4802.md?p=8), [pork](/usc/7/4802.md?p=9), or [pork product](/usc/7/4802.md?p=10) sold or [imported](/usc/7/4802.md?p=4); or
    - (B) an amount established by the [Secretary](/usc/7/4802.md?p=14) based on a recommendation of the [Delegate Body](/usc/7/4802.md?p=3).
  - (2) Except as provided in [paragraph (3)](#b-3), the rate of assessment in the initial [order](/usc/7/2902.md?p=10) may be increased by not more than 0.1 percent per year on recommendation of the [Delegate Body](/usc/7/4802.md?p=3).
  - (3) The rate of assessment may not exceed 0.50 percent of such market value unless—
    - (A) after the initial referendum required under [section 4811(a) of this title](/usc/7/4811.md?p=a), the [Delegate Body](/usc/7/4802.md?p=3) recommends an increase in such rate above 0.50 percent; and
    - (B) such increase is approved in a referendum conducted under [section 4811(b) of this title](/usc/7/4811.md?p=b).
  - (4)
    - (A) [Pork](/usc/7/4802.md?p=9) or [pork products](/usc/7/4802.md?p=10) [imported](/usc/7/4802.md?p=4) into the [United States](/usc/7/6402.md?p=8) shall be assessed based on the equivalent value of the live [porcine animal](/usc/7/4802.md?p=8) from which such [pork](/usc/7/4802.md?p=9) or [pork products](/usc/7/4802.md?p=10) were produced, as determined by the [Secretary](/usc/7/4802.md?p=14).
    - (B) The [Secretary](/usc/7/4802.md?p=14) may waive the collection of assessments on a type of such [imported](/usc/7/4802.md?p=4) [pork](/usc/7/4802.md?p=9) or [pork products](/usc/7/4802.md?p=10) if the [Secretary](/usc/7/4802.md?p=14) determines that such collection is not practicable.
- (c) **Distribution and use—** [Funds](/usc/7/4531.md?p=5) collected by the [Board](/usc/7/1502.md?p=b-4) from assessments collected under this section shall be distributed and used in the following manner:
  - (1)
    - (A) Each [State association](/usc/7/4802.md?p=16), shall receive an amount of [funds](/usc/7/4531.md?p=5) equal to the product obtained by multiplying—
      - (i) the aggregate amount of assessments attributable to [porcine animals](/usc/7/4802.md?p=8) produced in such [State](/usc/7/4802.md?p=15) by [persons](/usc/7/4802.md?p=7) described in subsection [(a)(1)(A)](#a-1-A) and [(B)](#a-1-B) minus that [State](/usc/7/4802.md?p=15)’s share of refunds determined pursuant to [paragraph (4)](#c-4) by such [persons](/usc/7/4802.md?p=7) pursuant to [section 4813 of this title](/usc/7/4813.md); and
      - (ii) a percentage applicable to such [State association](/usc/7/4802.md?p=16) determined by the [Delegate Body](/usc/7/4802.md?p=3), but in no event less than sixteen and one-half percent, or
    - (B) in the case of a [State association](/usc/7/4802.md?p=16) that was conducting a [pork](/usc/7/4802.md?p=9) [promotion](/usc/7/4802.md?p=12) program in the period from July 1, 1984, to June 30, 1985, if greater than (A) an amount of [funds](/usc/7/4531.md?p=5) equal to the amount of [funds](/usc/7/4531.md?p=5) that would have been collected in such [State](/usc/7/4802.md?p=15) pursuant to the [pork](/usc/7/4802.md?p=9) [promotion](/usc/7/4802.md?p=12) program in existence in such [State](/usc/7/4802.md?p=15) from July 1, 1984, to June 30, 1985, had the [porcine animals](/usc/7/4802.md?p=8), subject to assessment and to which no refund was received in such [State](/usc/7/4802.md?p=15) in each year following December 23, 1985, been produced from July 1, 1984, to June 30, 1985, and been subject to the rates of assessments then in effect and the rate of return then in effect from each [State](/usc/7/4802.md?p=15) to the [Council](/usc/7/3402.md?p=i) described in [paragraph (2)(A)](#c-2-A), and other national entities involved in [pork](/usc/7/4802.md?p=9) [promotion](/usc/7/4802.md?p=12), [research](/usc/7/4802.md?p=13) and [consumer information](/usc/7/4802.md?p=2).
    - (C) A [State association](/usc/7/4802.md?p=16) shall use such [funds](/usc/7/4531.md?p=5) and any proceeds from the investment of such [funds](/usc/7/4531.md?p=5) for financing—
      - (i) [promotion](/usc/7/4802.md?p=12), [research](/usc/7/4802.md?p=13), and [consumer information](/usc/7/4802.md?p=2) plans and projects, and
      - (ii) administrative expenses incurred in connection with such plans and projects.
  - (2)
    - (A) The National [Pork](/usc/7/4802.md?p=9) [Producers](/usc/7/4802.md?p=11) [Council](/usc/7/3402.md?p=i), a nonprofit [corporation](/usc/7/1502.md?p=b-5) of the type described in [section 501(c)(3) of title 26](/usc/26/501.md?p=c-3) and incorporated in the [State](/usc/7/4802.md?p=15) of Iowa, shall receive an amount of [funds](/usc/7/4531.md?p=5) equal to—
      - (i) 37½ percent of the aggregate amount of assessments collected under this section throughout the [United States](/usc/7/6402.md?p=8) from the date assessment commences pursuant to [subsection (a)(1)](#a-1) until the first day of the month following the month in which the [Board](/usc/7/1502.md?p=b-4) is appointed pursuant to [section 4808 of this title](/usc/7/4808.md).[^2]
      - (ii) 35 percent thereafter until the referendum is conducted pursuant to [section 4811 of this title](/usc/7/4811.md),
      - (iii) 25 percent until twelve months after the referendum is conducted, and
      - (iv) no [funds](/usc/7/4531.md?p=5) thereafter except in so far as it obtains such [funds](/usc/7/4531.md?p=5) from the [Board](/usc/7/1502.md?p=b-4) pursuant to sections[^3] 4808 or 4809 of this title, each of which amounts determined under (i), (ii), and (iii) shall be less the [Council](/usc/7/3402.md?p=i)’s share of refunds determined pursuant to [paragraph (4)](#c-4).
    - (B) The [Council](/usc/7/3402.md?p=i) shall use such [funds](/usc/7/4531.md?p=5) and proceeds from the investment of such [funds](/usc/7/4531.md?p=5) for financing—
      - (i) [promotion](/usc/7/4802.md?p=12), [research](/usc/7/4802.md?p=13), and [consumer information](/usc/7/4802.md?p=2) plans and projects, and
      - (ii) administrative expenses of the [Council](/usc/7/3402.md?p=i).
  - (3)
    - (A) The [Board](/usc/7/1502.md?p=b-4) shall receive the amount of [funds](/usc/7/4531.md?p=5) that remain after the distribution required under paragraphs [(1)](#c-1) and [(2)](#c-2).
    - (B) The [Board](/usc/7/1502.md?p=b-4) shall use such [funds](/usc/7/4531.md?p=5) and any proceeds from the investment of such [funds](/usc/7/4531.md?p=5) pursuant to [subsection (g)](#g) for—
      - (i) financing [promotion](/usc/7/4802.md?p=12), [research](/usc/7/4802.md?p=13), and [consumer information](/usc/7/4802.md?p=2) plans and projects in accordance with this chapter;[^4]
      - (ii) such expenses for the administration, maintenance, and functioning of the [Board](/usc/7/1502.md?p=b-4) as may be authorized by the [Secretary](/usc/7/4802.md?p=14);
      - (iii) accumulation of a reasonable reserve to permit an effective [promotion](/usc/7/4802.md?p=12), [research](/usc/7/4802.md?p=13), and [consumer information](/usc/7/4802.md?p=2) program to continue in years when the amount of assessments may be reduced; and
      - (iv) administrative costs incurred by the [Secretary](/usc/7/4802.md?p=14) to carry out this chapter,[^4] including any expenses incurred for the conduct of a referendum under this chapter.[^4]
  - (4)
    - (A) Each [State](/usc/7/4802.md?p=15)’s share of refunds shall be determined by multiplying the aggregate amount of refunds received by [producers](/usc/7/4802.md?p=11) in such [State](/usc/7/4802.md?p=15) by the percentage applicable to such [State](/usc/7/4802.md?p=15) pursuant to [paragraph (1)(A)(ii)](#c-1-A-ii).
    - (B) The National [Pork](/usc/7/4802.md?p=9) [Producers](/usc/7/4802.md?p=11) [Council](/usc/7/3402.md?p=i)’s share of refunds shall be determined by multiplying its applicable percent of the aggregate amount of assessments by the product of—
      - (i) subtracting from the aggregate amount of refunds received by all [producers](/usc/7/4802.md?p=11) the aggregate amount of [State](/usc/7/4802.md?p=15) share or refunds in every [State](/usc/7/4802.md?p=15) determined pursuant to [subparagraph (A)](#c-4-A), and
      - (ii) adding to that sum the aggregate amount of refunds received by [importers](/usc/7/4802.md?p=5).
- (d) **Prohibited promotions—** No [promotion](/usc/7/4802.md?p=12) funded with assessments collected under this chapter may make—
  - (1) a false or misleading claim on behalf of [pork](/usc/7/4802.md?p=9) or a [pork product](/usc/7/4802.md?p=10); or
  - (2) a false or misleading statement with respect to an attribute or use of a competing product.
- (e) **Influencing legislation prohibited—** No [funds](/usc/7/4531.md?p=5) collected through assessments authorized by this section may, in any manner, be used for the purpose of influencing legislation, as defined in section [4911(d)](/usc/26/4911.md?p=d) and [(e)(2)](/usc/26/4911.md?p=e-2) of title 26.
- (f) **Maintenance of books and records; audits—** The [Board](/usc/7/1502.md?p=b-4) shall—
  - (1) maintain such books and records, and prepare and submit to the [Secretary](/usc/7/4802.md?p=14) such reports from time to time, as may be required by the [Secretary](/usc/7/4802.md?p=14) for appropriate accounting of the receipt and disbursement of [funds](/usc/7/4531.md?p=5) entrusted to the [Board](/usc/7/1502.md?p=b-4) or a [State association](/usc/7/4802.md?p=16), as the case may be; and
  - (2) cause a complete audit report to be submitted to the [Secretary](/usc/7/4802.md?p=14) at the end of each fiscal year.
- (g) **Investment by Board of funds collected—** The [Board](/usc/7/1502.md?p=b-4), with the approval of the [Secretary](/usc/7/4802.md?p=14), may invest [funds](/usc/7/4531.md?p=5) collected through assessments authorized under this section, pending disbursement for a plan or project, only in—
  - (1) an obligation of the [United States](/usc/7/6402.md?p=8), or of a [State](/usc/7/4802.md?p=15) or political subdivision thereof;
  - (2) an interest-bearing account or certificate of deposit of a [bank](/usc/7/27.md?p=a) that is a member of the Federal Reserve System; or
  - (3) an obligation fully guaranteed as to principal and interest by the [United States](/usc/7/6402.md?p=8).