United States and only generically promote pecans. (3) Board membership The Board shall consist of 15 members, including (A) 8 members who are growers; (C) one member who is a first handler and who derives over 50 percent of the member's gross income from buying and selling pecans; (D) one member who is an importer of pecans into the United States, nominated by the Board; (E) one member representing the general public, nominated by the Board; and (F) at the option of the Board, a consultant or advisor representing the views of pecan producers in a country other than the United States who may be chosen to attend Board functions as a nonvoting member. (4) Representation of members (A) Grower representatives Of the growers referred to in paragraph (3)(A), 2 members shall be from each district. (B) Sheller representatives Of the shellers referred to in paragraph (3)(B) (i) 2 members shall be selected from among shellers whose place of residence is east of the Mississippi River; and (ii) 2 members shall be selected from among shellers whose place of residence is west of the Mississippi River. (C) First handler representative The first handler representative on the Board referred to in paragraph (3)(C) shall be selected from among first handlers whose place of residence is in a district. (D) Importer representative The importer representative on the Board referred to in paragraph (3)(D) shall be an individual who imports pecans into the United States. (E) Public representative The public representative on the Board referred to in paragraph (3)(E) shall not be a grower, grower-sheller, sheller, first handler, or importer. (5) Alternate for each member Each member of the Board shall have an alternate with the same qualifications as the member such alternate would replace. (6) Limitation on State residence There shall be no more than one member from each State in each district, except that the State of Georgia may have 2 growers from such State representing the district that it is in. (7) Modifying Board membership In accordance with regulations approved by the Secretary, at least once each 3 years and not more than once each 2 years, the Board shall The members of the Board shall serve for a term of 3 years, except that the members appointed to the initial Board established under paragraph (8)(G) shall serve, proportionately, for terms of 1, 2, and 3 years, as determined by the Secretary. (B) Termination of terms Notwithstanding subparagraph (C), each member shall continue to serve until a successor is appointed by the Secretary. (C) Limitation on terms No individual may serve more than 2 consecutive 3-year terms as a member. (D) Vacancies (i) Submitting nominations To fill any vacancy created by the death, removal, resignation, or disqualification of any member of the Board, the Secretary shall request that at least 2 eligible nominations for a successor for each such vacancy be submitted by the Board in the manner provided in paragraph (8). (ii) Lack of nominations If at least 2 eligible nominations are not submitted under clause (i), the Secretary shall determine the manner of submission of nominations for the vacancy. (10) Compensation A member of the Board shall serve without compensation, but shall be reimbursed for necessary and reasonable expenses incurred in the performance of duties for and approved by the Board. (c) Powers and duties of Board The plan shall define the powers and duties of the Board, which shall include the power and duty (1) to administer the plan in accordance with its terms and conditions; (2) to make regulations to effectuate the terms and conditions of the plan; (3) to meet, organize, and select from among members of the Board a chairperson, other officers, and committees and subcommittees, as the Board determines appropriate; (4) to establish working committees of persons other than Board members; (5) to employ such persons, other than Board members, as the Board considers necessary and to determine the compensation and define the duties of such persons; (6) to prepare and submit for the approval of the Secretary, prior to the beginning of Page 1008 each fiscal period, a recommended rate of assessment under section 6007 of this title, and a fiscal period budget of the anticipated expenses in the administration of the plan, including the probable costs of all programs and projects; (7) to develop programs and projects, subject to subsection (d) of this section; (8) to enter into contracts or agreements, subject to subsection (e) of this section, to develop and carry out programs or projects of promotion, research, industry information and consumer information; (9) to carry out research, promotion, industry information, and consumer information, and to pay the costs of such projects with assessments collected pursuant to section 6007 of this title; (10) to keep minutes, books, and records that reflect the actions and transactions of the Board, and promptly report minutes of each Board meeting to the Secretary; (11) to appoint and convene, from time to time, working committees comprised of growers, grower-shellers, first handlers, shellers, importers, and the public to assist in the development of research, promotion, industry information, and consumer information programs for pecans; (12) to invest, pending disbursement under a program or project, funds collected through assessments authorized under this chapter, only in (A) obligations of the United States or any agency thereof; (B) general obligations of any State or any political subdivision thereof; (C) any interest-bearing account or certificate of deposit of a bank that is a member of the Federal Reserve System; or (D) obligations fully guaranteed as to principal and interest by the United States; except that income from any such invested funds may be used for any purpose for which the invested funds may be used; (13) to receive, investigate, and report to the Secretary complaints of violations of the plan; (14) to furnish the Secretary with such information as the Secretary may request; (15) to recommend to the Secretary amendments to the plan; and (16) to develop and recommend to the Secretary for approval such regulations as may be necessary for the development and execution of programs or projects, or as may otherwise be necessary, to carry out the plan. (d) Programs and budgets (1) Submission to Secretary The plan shall provide that the Board shall submit to the Secretary for approval any program or project of promotion, research, consumer information, or industry information. No program or project shall be implemented prior to its approval by the Secretary. (2) Budgets The plan shall require the Board, prior to the beginning of each fiscal year, or as may Any such contract or agreement shall provide that (A) the contracting party shall develop and submit to the Board a program or project together with a budget or budgets that shall show estimated costs to be incurred for such program or project; (B) the program or project shall become effective on the approval of the Secretary; and (C) the contracting party shall keep accurate records of all of its transactions, account for funds received and expended, make periodic reports to the Board of activities conducted, and make such other reports as the Board or the Secretary may require. (3) Grower and grower-sheller organizations The plan shall provide that the Board may contract with grower and grower-sheller organizations for any other services. Any such contract shall include provisions comparable to those required by paragraph (2). (f) Books and records of Board (1) In general The plan shall require the Board to (A) maintain such books and records (which shall be available to the Secretary for inspection and audit) as the Secretary may prescribe; (B) prepare and submit to the Secretary, from time to time, such reports as the Secretary may prescribe; and (C) account for the receipt and disbursement of all funds entrusted to the Board. (2) Audits The Board shall cause its books and records to be audited by an independent auditor at the end of each fiscal year, and a report of such audit to be submitted to the Secretary. (g) Prohibition The Board shall not engage in any action to, nor shall any funds received by the Board under this chapter be used to (1) influence legislation or governmental action, other than recommending to the Secretary amendments to the plan; (2) engage in any action that would be a conflict of interest; or (3) engage in any advertising that may be false or misleading. (h) Books and records (1) In general The plan shall require that each first handler, grower-sheller, or importer shall (A) maintain and submit to the Board any reports considered necessary by the Secretary to ensure compliance with this chapter; and (B) make available during normal business hours, for inspection by employees of the Board or Secretary, such books and records as are necessary to carry out this chapter, including such records as are necessary to verify any required reports. (2) Time requirement The records required under paragraph (1) shall be maintained for 2 years beyond the fiscal period of the applicability of such records. (3) Confidentiality (A) In general (E) of paragraph (3) shall be made in accordance with paragraph (3). (H) Failure to nominate If growers and shellers fail to nominate individuals for appointment, the Secretary may appoint members on a basis provided for in the plan. If the Board fails to nominate an importer or a public representative, such member may be appointed without a nomination. (9) Terms of office (A) In general The members of the Board shall serve for a term of 3 years, except that the members appointed to the initial Board established under paragraph (8)(G) shall serve, proportionately, for terms of 1, 2, and 3 years, as determined by the Secretary. (B) Termination of terms Notwithstanding subparagraph (C), each member shall continue to serve until a successor is appointed by the Secretary. (C) Limitation on terms No individual may serve more than 2 consecutive 3-year terms as a member. (D) Vacancies (i) Submitting nominations To fill any vacancy created by the death, removal, resignation, or disqualification of any member of the Board, the Secretary shall request that at least 2 eligible nominations for a successor for each such vacancy be submitted by the Board in the manner provided in paragraph (8). (ii) Lack of nominations If at least 2 eligible nominations are not submitted under clause (i), the Secretary shall determine the manner of submission of nominations for the vacancy. (10) Compensation A member of the Board shall serve without compensation, but shall be reimbursed for necessary and reasonable expenses incurred in the performance of duties for and approved by the Board. (c) Powers and duties of Board The plan shall define the powers and duties of the Board, which shall include the power and duty (1) to administer the plan in accordance with its terms and conditions; (2) to make regulations to effectuate the terms and conditions of the plan; (3) to meet, organize, and select from among members of the Board a chairperson, other officers, and committees and subcommittees, as the Board determines appropriate; (4) to establish working committees of persons other than Board members; (5) to employ such persons, other than Board members, as the Board considers necessary and to determine the compensation and define the duties of such persons; (6) to prepare and submit for the approval of the Secretary, prior to the beginning of each fiscal period, a recommended rate of assessment under section 6007 of this title, and a fiscal period budget of the anticipated expenses in the administration of the plan, including the probable costs of all programs and projects; (7) to develop programs and projects, subject to subsection (d) of this section; (8) to enter into contracts or agreements, subject to subsection (e) of this section, to develop and carry out programs or projects of promotion, research, industry information and consumer information; (9) to carry out research, promotion, industry information, and consumer information, and to pay the costs of such projects with assessments collected pursuant to section 6007 of this title; (10) to keep minutes, books, and records that reflect the actions and transactions of the Board, and promptly report minutes of each Board meeting to the Secretary; (11) to appoint and convene, from time to time, working committees comprised of grow. ers, grower-shellers, first handlers, shellers, importers, and the public to assist in the development of research, promotion, industry information, and consumer information programs for pecans; (12) to invest, pending disbursement under a program or project, funds collected through assessments authorized under this chapter, only in (A) obligations of the United States or any agency thereof; (B) general obligations of any State or any political subdivision thereof; (C) any interest-bearing account or certificate of deposit of a bank that is a member of the Federal Reserve System; or (D) obligations fully guaranteed as to principal and interest by the United States; except that income from any such invested funds may be used for any purpose for which the invested funds may be used; (13) to receive, investigate, and report to the Secretary complaints of violations of the plan; (14) to furnish the Secretary with such information as the Secretary may request; (15) to recommend to the Secretary amendments to the plan; and (16) to develop and recommend to the Secretary for approval such regulations as may be necessary for the development and execution of programs or projects, or as may other. wise be necessary, to carry out the plan. (d) Programs and budgets (1) Submission to Secretary The plan shall provide that the Board shall submit to the Secretary for approval any program or project of promotion, research, consumer information, or industry information. No program or project shall be implemented prior to its approval by the Secretary. (2) Budgets The plan shall require the Board, prior to the beginning of each fiscal year, or as may Any such contract or agreement shall provide that (A) the contracting party shall develop and submit to the Board a program or project together with a budget or budgets that shall show estimated costs to be incurred for such program or project; (B) the program or project shall become effective on the approval of the Secretary; and (C) the contracting party shall keep accurate records of all of its transactions, account for funds received and expended, make periodic reports to the Board of activities conducted, and make such other reports as the Board or the Secretary may require. (3) Grower and grower-sheller organizations The plan shall provide that the Board may contract with grower and grower-sheller organizations for any other services. Any such contract shall include provisions comparable to those required by paragraph (2). (f) Books and records of Board (1) In general The plan shall require the Board to (A) maintain such books and records (which shall be available to the Secretary for inspection and audit) as the Secretary may prescribe; (B) prepare and submit to the Secretary, from time to time, such reports as the Secretary may prescribe; and (C) account for the receipt and disbursement of all funds entrusted to the Board. (2) Audits The Board shall cause its books and records to be audited by an independent auditor at the end of each fiscal year, and a report of such audit to be submitted to the Secretary. (g) Prohibition The Board shall not engage in any action to, nor shall any funds received by the Board under this chapter be used to (1) influence legislation or governmental action, other than recommending to the Secretary amendments to the plan; (2) engage in any action that would be a conflict of interest; or (3) engage in any advertising that may be false or misleading. (h) Books and records (1) In general The plan shall require that each first handler, grower-sheller, or importer shall (A) maintain and submit to the Board any reports considered necessary by the Secretary to ensure compliance with this chapter; and (B) make available during normal business hours, for inspection by employees of the Board or Secretary, such books and records as are necessary to carry out this chapter, including such records as are necessary to verify any required reports. (2) Time requirement The records required under paragraph (1) shall be maintained for 2 years beyond the fiscal period of the applicability of such records. (3) Confidentiality (A) In general Except as otherwise provided in this chapter, all information obtained from books, records, or reports required to be maintained under paragraph (1) shall be kept confidential, and shall not be disclosed to the public by any person. (B) Disclosure Information referred to in subparagraph (A) may be disclosed to the public only if |