§7416 Assessments

Summary

When an order covers an agricultural product, first handlers must pay assessments on products made and sold in the United States, and importers must pay assessments on covered imports. These payments must go to the board the order creates, at the times and in the way the order says. Only one assessment can be charged per handler or importer for a given product. The board suggests one or more assessment rates to the Secretary. If the Secretary approves, the rates take effect. The Secretary can require a referendum before any rate increase. People who do not pay on time can be charged late fees and interest at a rate the Secretary sets. While the board waits to spend the money under an approved budget, it may invest funds in safe government, state, or bank interest-bearing investments. From the order’s start until the referendum results are announced, the board must keep an escrow account (a specific type of interest-bearing account) and put 10 percent of collections into it. If the order is rejected in the referendum, people who paid or had payments made for them can ask for refunds following the order’s rules, and refunds will be paid with proof. If the escrow does not have enough money, refunds are prorated. If the order is approved, the escrow is closed and the money can be used by the board.