[Code of Federal Regulations]
[Title 7, Volume 9]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1160.209]

[Page 195-196]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER X--AGRICULTURAL MARKETING SERVICE (Marketing Agreements and 
                 Orders; Milk) DEPARTMENT OF AGRICULTURE
 
PART 1160_FLUID MILK PROMOTION PROGRAM--Table of Contents
 
                   Subpart_Fluid Milk Promotion Order
 
Sec.  1160.209  Duties of the Board.

    The Board shall have the following duties:
    (a) To meet not less than annually, and to organize and select from 
among its members a chairperson, who may serve for a term of a fiscal 
period pursuant to Sec.  1160.113, and not more than two consecutive 
terms, and to select such other officers as may be necessary;
    (b) To prepare and submit to the Secretary for approval a budget for 
each fiscal period of the anticipated expenses and disbursements in the 
administration of this subpart, including a description of and the 
probable costs of consumer education, promotion and research projects;
    (c) To develop and submit to the Secretary for approval promotion 
and consumer education, and research plans or projects;
    (d) To the extent practicable, carry out consumer education and 
promotion programs under Sec.  1160.301 in such a manner as to ensure 
that advertising coverage in each of the regions defined in Sec.  
1160.200 is proportionate to funds collected from each such region;
    (e) To disseminate information to fluid milk processors or eligible 
organizations;
    (f) To maintain minutes, books and records that accurately reflect 
all of the acts and transactions of the Board, which shall be available 
to the Secretary for inspection and audit, and prepare and promptly 
report minutes of each Board meeting to the Secretary and submit such 
reports from time to time to the Secretary as the Secretary may 
prescribe, and to account with respect to the receipt and disbursement 
of all funds entrusted to it;
    (g) To enter into contracts or agreements, with the approval of the 
Secretary, with such persons and organizations as the Board may approve 
for the

[[Page 196]]

development and conduct of activities authorized under this subpart and 
for the payment of the cost thereof with funds collected through 
assessments pursuant to Sec.  1160.211 and income from such assessments. 
Any such contract or agreement shall provide that:
    (1) The contractors shall develop and submit to the Board a plan or 
project together with a budget(s) showing the estimated cost of such 
plan or project;
    (2) Any such plan or project shall be adopted upon approval of the 
Secretary; and
    (3) The contracting party shall keep accurate records of all of its 
transactions and make periodic reports to the Board of all activities 
conducted pursuant to the contract or agreement, and provide accounts of 
all funds received and expended, and such other reports as the Secretary 
or the Board may require. The Secretary or employees of the Board 
periodically may audit the records of the contracting parties;
    (h) For the initial fiscal period, the Board shall contract, to the 
extent practicable and subject to the approval of the Secretary, with an 
eligible organization to carry out the provisions of this subpart;
    (i) To prepare and make public, at least annually, a report of its 
activities and an accounting for funds received and expended;
    (j) To have an audit of its financial statements conducted by a 
certified public accountant in accordance with generally accepted 
auditing standards, at the end of the first 15 months of the initial 
fiscal period, at the end of the initial fiscal period, and at least 
once each fiscal period thereafter as well as at such other times as the 
Secretary may request, and to submit a copy of each such audit report to 
the Secretary;
    (k) To give the Secretary the same notice of meetings of the Board 
and committees of the Board, including actions conducted under Sec.  
1160.206(b), as is given to such Board or committee members in order 
that the Secretary, or a representative of the Secretary, may attend 
such meetings;
    (l) To submit to the Secretary such information pursuant to this 
subpart as may be requested;
    (m) The Board shall take reasonable steps to coordinate the 
collection of assessments, and promotion, education, and research 
activities of the Board, with the National Dairy Promotion and Research 
Board established under section 113(b) of the Dairy Production 
Stabilization Act of 1983 (7 U.S.C. 4504(b)); and
    (n) The Board shall conduct advertising using third parties only 
through contracts which shall prohibit the third party from selling, 
offering for sale, or otherwise making available advertising time or 
space to private industry members conducting brand-name advertising 
which immediately precedes, follows, appears in juxtaposition, or 
appears in the midst of Board-sponsored advertising.

[58 FR 62503, Nov. 29, 1993, as amended at 61 FR 27003, May 30, 1996; 62 
FR 3983, Jan. 28, 1997]