Sec. 4. Requirements of checkoff programs

648 words·~3 min read·/bill/119/hr/3516/ih/section-4

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Except as provided in paragraph (4), for any checkoff program with an annual assessment revenue equal to more than $20,000,000, a Board shall not enter into any contract or agreement to carry out activities under the checkoff program with a party that engages in activities for the purpose of influencing any government policy or action that relates to agriculture. A Board shall not engage in, and shall prohibit the employees and agents of the Board, acting in their official capacity, from engaging in, any act that may involve a conflict of interest.

A Board shall not engage in, and shall prohibit the employees and agents of the Board, acting in their official capacity, from engaging in— any anticompetitive activity; any unfair or deceptive act or practice; or any act that may be disparaging to, or in any way negatively portray, another agricultural commodity or product. Paragraph

(1)shall not apply to a contract or agreement entered into between a Board and an institution of higher education for the purpose of research, extension, and education. Notwithstanding any other provision of law, on approval of the Secretary, a Board may enter directly into contracts and agreements to carry out generic promotion, research, or other activities authorized by law. Each contract or agreement of a checkoff program shall provide that the entity that enters into the contract or agreement shall produce to the applicable Board, on a quarterly basis, accurate records that account for all funds received under the contract or agreement, including any goods or services provided or costs incurred in connection with the contract or agreement. Each Board shall— maintain any records received under paragraph (1); and publish and make available for public inspection those records by not later than 30 days after the date of receipt. A Board shall publish and make available for public inspection all budgets and disbursements of funds entrusted to the Board that are approved by the Secretary, immediately on approval by the Secretary. In carrying out paragraph (1), a Board shall disclose— the amount of the disbursement; the purpose of the disbursement, including the activities to be funded by the disbursement; the identity of the recipient of the disbursement; and the identity of any other parties that may receive the disbursed funds, including any contracts or subcontractors of the recipient of the disbursement. Not later than 2 years after the date of enactment of this Act, and not less frequently than once every 5 years thereafter, the Inspector General of the Department of Agriculture shall conduct an audit to determine the compliance of each checkoff program with this section during the period of time covered by the audit. An audit conducted under subparagraph

(A)shall include a review of any records produced to a Board under subsection (c)(1). On completion of each audit under subparagraph (A), the Inspector General of the Department of Agriculture shall— prepare a report describing the audit; and submit the report described in clause

(i)to— the appropriate committees of Congress, including the Subcommittee on Competition Policy, Antitrust, and Consumer Rights of the Committee on the Judiciary of the Senate; and the Comptroller General of the United States. Not earlier than 3 years, and not later than 5 years, after the date of enactment of this Act, the Comptroller General of the United States shall— conduct an audit to assess— the status of actions taken for each checkoff program to ensure compliance with this section; and the extent to which actions described in subclause

(I)have improved the integrity of a checkoff program; and prepare a report describing the audit conducted under clause (i), including any recommendations for— strengthening the effect of actions described in clause (i)(I); and improving Federal legislation relating to checkoff programs. The Comptroller General of the United States shall consider reports described in paragraph (1)(C) in preparing any recommendations in the report under subparagraph (A)(ii).