[Code of Federal Regulations]
[Title 7, Volume 9]
[Revised as of January 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1150.153]

[Page 201-202]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER X--AGRICULTURAL MARKETING SERVICE (Marketing Agreements and 
                 Orders; Milk) DEPARTMENT OF AGRICULTURE
 
PART 1150_DAIRY PROMOTION PROGRAM--Table of Contents
 
               Subpart_Dairy Promotion and Research Order
 
Sec. 1150.153  Qualified State or regional dairy product promotion, 
research or nutrition education programs.

    (a) Any organization which conducts a State or regional dairy 
product promotion, research or nutrition education program may apply to 
the Secretary for certification of qualification so that producers may 
receive credit pursuant to Sec. 1150.152(c) for contributions to such 
program.
    (b) In order to be certified by the Secretary as a qualified 
program, the program must:
    (1) Conduct activities as defined in Sec. Sec. 1150.114, 1150.115, 
and 1150.116 that are intended to increase consumption of milk and dairy 
products generally;
    (2) Except for programs operated under the laws of the United States 
or any State, have been active and ongoing before enactment of the Act;
    (3) Be financed primarily by producers, either individually or 
through cooperative associations;
    (4) Not use a private brand or trade name in its advertising and 
promotion of dairy products unless the Board recommends and the 
Secretary concurs that such preclusion should not apply;
    (5) Certify to the Secretary that any requests from producers for 
refunds under the program will be honored by forwarding to either the 
Board or a qualified State or regional program designated by the 
producer that portion of such refunds equal to the amount of credit that 
otherwise would be applicable to that program pursuant to Sec. 
1150.152(c); and
    (6) Not use program funds for the purpose of influencing 
governmental policy or action.
    (c) An application for certification of qualifications of any State 
or regional dairy product promotion, research or nutrition education 
program which does not satisfy the requirements specified in paragraph 
(b) of this section shall be denied. The certification of any qualified 
program which fails to satisfy the requirements specified in paragraph 
(b) of this section after certification shall be subject to suspension 
or termination.
    (1) Prior to the denial of an application for certification of 
qualification, or the suspension or termination of an existing 
certification, the Director of

[[Page 202]]

the Dairy Division shall afford the applicant or the holder of an 
existing certification an opportunity to achieve compliance with the 
requirements for certification within a reasonable time, as determined 
by the Director.
    (2) Any State or regional dairy product promotion, research or 
nutrition education program whose application for certification of 
qualification is to be denied, or whose certification of qualification 
is to be suspended or terminated shall be given written notice of such 
pending action and shall be afforded an opportunity to petition the 
Secretary for a review of the action. The petition shall be in writing 
and shall state the facts relevant to the matter for which the review is 
sought, and whether petitioner desires an informal hearing. If an 
informal hearing is not requested, the Director of the Dairy Division 
shall issue a final decision setting forth the action to be taken and 
the basis for such action. If petitioner requests a hearing, the 
Director of the Dairy Division, or a person designated by the Director, 
shall hold an informal hearing in the following manner:
    (i) Notice of a hearing shall be given in writing and shall be 
mailed to the last known address of the petitioner or of the State or 
regional program, or to an officer thereof, at least 20 days before the 
date set for the hearing. Such notice shall contain the time and place 
of the hearing and may contain a statement of the reason for calling the 
hearing and the nature of the questions upon which evidence is desired 
or upon which argument may be presented. The hearing place shall be as 
convenient to the State or regional program as can reasonably be 
arranged.
    (ii) Hearings are not to be public and are to be attended only by 
representatives of the petitioner or the State or regional program and 
of the U.S. Government, and such other parties as either the State or 
regional program or the U.S. Government desires to have appear for 
purposes of submitting information or as counsel.
    (iii) The Director of the Dairy Division, or a person designated by 
the Director, shall be the presiding officer at the hearing. The hearing 
shall be conducted in such manner as will be most conducive to the 
proper disposition of the matter. Written statements or briefs may be 
filed by the petitioner or the State or regional program, or other 
participating parties, within the time specified by the presiding 
officer.
    (iv) The presiding officer shall prepare preliminary findings 
setting forth a recommendation as to what action should be taken and the 
basis for such action. A copy of such findings shall be served upon the 
petitioner or the State or regional program by mail or in person. 
Written exceptions to the findings may be filed within 10 days after 
service thereof.
    (v) After due consideration of all the facts and the exceptions, if 
any, the Director of the Dairy Division shall issue a final decision 
setting forth the action to be taken and the basis for such action.

[49 FR 11816, Mar. 28, 1984, as amended at 56 FR 8258, Feb. 28, 1991]