§4. Requirements of checkoff programs
This section establishes requirements for boards of checkoff programs (i.e., USDA-administered programs funded by mandatory producer assessments for generic promotion, research, and information activities). Specifically, it—
(1) prohibits boards of programs with annual assessment revenue exceeding $20 million from contracting with entities that influence government agriculture policy (except for research, extension, and education contracts with institutions of higher education), and bars boards, employees, and agents from conflicts of interest, anticompetitive activities, unfair or deceptive acts, or disparaging other agricultural commodities;
(2) authorizes boards to enter contracts directly for authorized activities upon Secretary of Agriculture approval;
(3) requires contractors to provide boards with quarterly records of funds, goods, services, and costs, which boards must maintain and publish for public inspection within 30 days;
(4) mandates immediate public disclosure of Secretary-approved budgets and disbursements, including amounts, purposes, recipients, and subcontractors; and
(5) directs the USDA Inspector General to audit each program's compliance starting no later than two years after enactment and every five years thereafter (including record reviews), with reports to specified congressional committees and the Comptroller General; and requires the Comptroller General to audit compliance and improvements 3-5 years after enactment, with recommendations considering Inspector General reports.