Title 7AgricultureRelease 119-73

§2617 Required terms and conditions of plans

Title 7 › Chapter CHAPTER 58— - POTATO RESEARCH AND PROMOTION › § 2617

Last updated Apr 6, 2026|Official source

Summary

Plans must create a National Potato Promotion Board and tell how it will run. The board will run the plan, make rules, look into complaints, and suggest changes to the Secretary. The Secretary will appoint board members from nominations. The board will include producers and public members and, if importers are covered, up to 5 importer members. If nominees are not chosen, the Secretary can appoint people. Public members do not need producer or importer approval. Board members are not paid but get reimbursed for reasonable expenses. The board must send the Secretary a yearly budget that covers research, development, advertising, promotion, and board costs. The board proposes an assessment rate that the Secretary will set at no more than 2 cents per 100 pounds handled, or—if producers (and importers when covered) approve under section 2623—a rate up to one-half of 1 percent of the immediate past ten-calendar-year United States average price received by growers for potatoes as reported by the Department of Agriculture. Collected funds may be used for research, promotion, and board administration (including referendum and USDA administrative costs). Money cannot pay for private brand advertising, false claims, or to influence government policy except to recommend plan changes. Programs and contracts must be approved by the Secretary before work or spending begins. The board must keep records, report to the Secretary, and submit a full audit at the end of each fiscal period.

Full Legal Text

Title 7, §2617

Agriculture — Source: USLM XML via OLRC

Any plan issued pursuant to this chapter shall contain the following terms and conditions:
(a)Providing for the establishment by the Secretary of a National Potato Promotion Board (hereinafter referred to as “the board”) and for defining its powers and duties, which shall include powers—
(1)to administer such plan in accordance with its terms and conditions;
(2)to make rules and regulations to effectuate the terms and conditions of such plan;
(3)to receive, investigate, and report to the Secretary complaints of violations of such plan; and
(4)to recommend to the Secretary amendments to such plan.
(b)Providing that the board shall be composed of representatives of producers and the public appointed by the Secretary from nominations submitted in accordance with this subsection. If importers are subject to a plan, the board shall also include up to 5 representatives of importers, appointed by the Secretary from nominations submitted by importers in such manner as may be prescribed by the Secretary. Representatives of producers shall be nominated by producers in such manner as may be prescribed by the Secretary. Public representatives shall be nominated by the board in such manner as may be prescribed by the Secretary. If producers or importers fail to select nominees for appointment to the board, or the board fails to nominate public representatives, the Secretary may appoint persons on the basis of representation as provided for in such plan. The requirement for inclusion of public representatives on the board shall not be subject to producer approval, or to importer approval when importers are subject to a plan, in a referendum.
(c)Providing that board members shall serve without compensation, but shall be reimbursed for reasonable expenses incurred in performing their duties as members of the board.
(d)Providing that the board shall prepare and submit to the Secretary for his approval a budget, on a fiscal period basis, of its anticipated expenses and disbursements in the administration of the plan, including probable costs of research, development, advertising, and promotion.
(e)Providing that the board shall recommend to the Secretary and the Secretary shall fix the assessment rate at not more than 2 cents per one hundred pounds of potatoes handled; except that if approved by producers, and importers when importers are subject to a plan, pursuant to section 2623 of this title, the rate of assessment shall not exceed one-half of 1 per centum of the immediate past ten-calendar-year United States average price received for potatoes by growers as reported by the Department of Agriculture.
(f)Providing that—
(1)funds collected by the board shall be used for research, development, advertising, or promotion of potatoes and potato products and such other expenses for the administration, maintenance, and functioning of the board, as may be authorized by the Secretary, including any referendum and administrative costs incurred by the Department of Agriculture under this chapter: Provided, That the provision for payment to the Department of Agriculture for any referendum and administrative costs so incurred shall not be subject to producer approval, or importer approval when importers are subject to a plan, in a referendum;
(2)no advertising or sales promotion program shall make any reference to private brand names or use false or unwarranted claims in behalf of potatoes or their products or false or unwarranted statements with respect to the attributes or use of any competing products; and
(3)no funds collected by the board shall in any manner be used for the purpose of influencing governmental policy or action, except as provided by subsection (a)(4) of this section.
(g)Providing that the board shall, subject to the provisions of subsections (e) and (f) of this section, develop and submit to the Secretary for his approval any research, development, advertising or promotion programs or projects, and that any such program or project must be approved by the Secretary before becoming effective.
(h)Providing the board with authority to enter into contracts or agreements, with the approval of the Secretary, for the development and carrying out of research, development, advertising or promotion programs or projects, and the payment of the cost thereof with funds collected pursuant to this chapter.
(i)Providing that the board shall maintain books and records and prepare and submit to the Secretary such reports from time to time as may be prescribed for appropriate accounting with respect to the receipt and disbursement of funds entrusted to it and cause a complete audit report to be submitted to the Secretary at the end of each fiscal period.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

1990—Subsec. (b). Pub. L. 101–624, § 1940(1), inserted after first sentence “If importers are subject to a plan, the board shall also include up to 5 representatives of importers, appointed by the Secretary from nominations submitted by importers in such manner as may be prescribed by the Secretary.”, inserted “or importers” after “If producers”, and inserted “, or to importer approval when importers are subject to a plan,” after “approval” in last sentence. Subsec. (e). Pub. L. 101–624, § 1940(2), substituted “2 cents” for “one cent” and inserted “, and importers when importers are subject to a plan,” after “producers”. Subsec. (f)(1). Pub. L. 101–624, § 1940(3), inserted “, or importer approval when importers are subject to a plan,” after “producer approval” in proviso. Subsecs. (g) to (j). Pub. L. 101–624, § 1940(4), redesignated subsecs. (h) to (j) as (g) to (i), respectively, and struck out former subsec. (g) which read as follows: “Providing that, notwithstanding any other provisions of this chapter, any potato producer against whose potatoes any assessment is made and collected under authority of this chapter and who is not in favor of supporting the research and promotion program as provided for under this chapter shall have the right to demand and receive from the board a refund of such assessment: Provided, That such demand shall be made personally by such producer in accordance with

Regulations

and on a form and within a time period prescribed by the board and approved by the Secretary, but in no event less than ninety days, and upon submission of proof satisfactory to the board that the producer paid the assessment for which refund is sought, and any such refund shall be made within sixty days after demand therefor.” 1983—Subsec. (b). Pub. L. 98–171, § 2(a)(1), inserted “The requirement for inclusion of public representatives on the board shall not be subject to producer approval in a referendum.” Subsec. (e). Pub. L. 98–171, § 2(a)(2), amended subsec. (e) generally, substituting requirement that the Secretary fix “the assessment rate at not more than one cent per one hundred pounds of potatoes handled” for “the assessment rate required for such costs as may be incurred under subsection (d) of this section, including any referendum and administrative costs estimated to be incurred by the United States Department of Agriculture under this chapter” and provision “except that if approved by producers pursuant to section 2623 of this title, the rate of assessment shall not exceed” for “Provided, That the rate of assessment for fiscal year 1982 and each fiscal year thereafter shall not exceed”. Subsec. (f)(1). Pub. L. 98–171, § 2(a)(3), inserted “Provided, That the provision for payment to the Department of Agriculture for any referendum and administrative costs so incurred shall not be subject to producer approval in a referendum”. 1982—Subsec. (b). Pub. L. 97–244, § 2(1), substituted provisions that the board be composed of representatives of producers and the public appointed by the Secretary from nominations submitted in accordance with this subsection, that representatives of producers be nominated by producers in such manner as may be prescribed by the Secretary, that public representatives be nominated by the board in such manner as may be prescribed by the Secretary, and that, if producers fail to select nominees for appointment to the board or the board fails to nominate public representatives, the Secretary may appoint persons on the basis of representation as provided for in such plan for provisions that the board could be composed of representatives of producers selected by the Secretary from nominations made by producers in such manner as might be prescribed by the Secretary and that, in the event producers failed to select nominees for appointment to the board, the Secretary was to appoint producers on the basis of representation provided for in such plan. Subsec. (e). Pub. L. 97–244, § 2(2), substituted provisions that the assessment rate include any referendum and administrative costs estimated to be incurred by the Department of Agriculture under this chapter, but that the assessment rate for fiscal year 1982 and each fiscal year thereafter not exceed one-half of 1 per centum of the immediate past ten calendar year United States average price received for potatoes by growers as reported by the Department of Agriculture, for provisions that the assessment rate could not exceed 1 cent per hundred pounds of potatoes handled. Subsec. (f)(1). Pub. L. 97–244, § 2(3), substituted “as may be authorized by the Secretary, including any referendum and administrative costs incurred by the Department of Agriculture under this chapter” for “as may be authorized by the Secretary”.

Reference

Citations & Metadata

Citation

7 U.S.C. § 2617

Title 7Agriculture

Last Updated

Apr 6, 2026

Release point: 119-73