Laws: Cases and Codes : U.S. Code : Title 7 : Section 4906


   
U.S. Code as of: 01/03/05
Section 4906. Required terms in plans

    (a) Description of terms and provisions
      Any plan issued under this chapter shall contain the terms and
    provisions described in this section.
    (b) Establishment and powers of National Watermelon Promotion Board
      The plan shall provide for the establishment by the Secretary of
    the National Watermelon Promotion Board and for defining its powers
    and duties, which shall include the powers to - 
        (1) administer the plan in accordance with its terms and
      conditions;
        (2) make rules and regulations to effectuate the terms and
      conditions of the plan;
        (3) receive, investigate, and report to the Secretary
      complaints of violations of the plan; and
        (4) recommend to the Secretary amendments to the plan.
    (c) Membership of Board; representation of interests; appointment;
      nomination; eligibility of producers; importer representation
      (1) The plan shall provide that the Board shall be composed of
    representatives of producers and handlers, and one representative
    of the public, appointed by the Secretary from nominations
    submitted in accordance with this subsection. An equal number of
    representatives of producers and handlers shall be nominated by
    producers and handlers, and the representative of the public shall
    be nominated by the other members of the Board, in such manner as
    may be prescribed by the Secretary. If producers and handlers fail
    to select nominees for appointment to the Board, the Secretary may
    appoint persons on the basis of representation as provided for in
    the plan. If the Board fails to nominate a public representative,
    the Secretary shall choose such representative for appointment.
      (2) A producer shall be eligible to serve on the Board only as a
    representative of handlers, and not as a representative of
    producers, if - 
        (A) the producer purchases watermelons from other producers, in
      a combined total volume that is equal to 25 percent or more of
      the producer's own production; or
        (B) the combined total volume of watermelons handled by the
      producer from the producer's own production and purchases from
      other producers' production is more than 50 percent of the
      producer's own production.

      (3)(A) If importers are subject to the plan, the Board shall also
    include 1 or more representatives of importers, who shall be
    appointed by the Secretary from nominations submitted by importers
    in such manner as may be prescribed by the Secretary.
      (B) Importer representation on the Board shall be proportionate
    to the percentage of assessments paid by importers to the Board,
    except that at least 1 representative of importers shall serve on
    the Board.
      (C) If importers are subject to the plan and fail to select
    nominees for appointment to the Board, the Secretary may appoint
    any importers as the representatives of importers.
      (D) Not later than 5 years after the date that importers are
    subjected to the plan, and every 5 years thereafter, the Secretary
    shall evaluate the average annual percentage of assessments paid by
    importers during the 3-year period preceding the date of the
    evaluation and adjust, to the extent practicable, the number of
    importer representatives on the Board.
    (d) Compensation and expenses of Board
      The plan shall provide that all Board members shall serve without
    compensation, but shall be reimbursed for reasonable expenses
    incurred in performing their duties as members of the Board.
    (e) Budget on fiscal period basis
      The plan shall provide that the Board shall prepare and submit to
    the Secretary for the Secretary's approval a budget, on a fiscal
    period basis, of its anticipated expenses and disbursements in the
    administration of the plan, including probable costs of research,
    development, advertising, and promotion.
    (f) Assessments; payments; notice
      The plan shall provide for the fixing by the Secretary of
    assessments to cover costs incurred under the budgets provided for
    in subsection (e) of this section, and under section 4907(f) of
    this title, based on the Board's recommendation as to the
    appropriate rate of assessment, and for the payment of the
    assessments to the Board..(!1) In fixing or changing the rate of
    assessment pursuant to the plan, the Secretary shall comply with
    the notice and comment procedures established under section 553 of
    title 5. Sections 556 and 557 of such title shall not apply with
    respect to fixing or changing the rate of assessment.

    (g) Scope of expenditures; restrictions; assessments on per-unit
      basis; importers
      The plan shall provide the following:
        (1) Funds received by the Board shall be used for research,
      development, advertising, or promotion of watermelons and such
      other expenses for the administration, maintenance, and
      functioning of the Board as may be authorized by the Secretary,
      including any referendum and administrative costs incurred by the
      Department of Agriculture under this chapter.
        (2) No advertising or sales promotion program under this
      chapter shall make any reference to private brand names nor use
      false or unwarranted claims in behalf of watermelons or their
      products or false or unwarranted statements with respect to
      attributes or use of any competing products.
        (3) No funds received by the Board shall in any manner be used
      for the purpose of influencing governmental policy or action,
      except as provided by subsections (b)(4) and (f) of this section.
        (4) Assessments shall be made on watermelons produced by
      producers and watermelons handled by handlers, and the rate of
      such assessments in the case of producers and handlers shall be
      the same, on a per-unit basis, for producers and handlers. If a
      person performs both producing and handling functions, both
      assessments shall be paid by such person.
        (5) If importers are subject to the plan, an assessment shall
      also be made on watermelons imported into the United States by
      the importers. The rate of assessment for importers who are
      subject to the plan shall be equal to the combined rate for
      producers and handlers.
    (h) Refunds
      (1) Except as provided in paragraph (2), the plan shall provide
    that, notwithstanding any other provisions of this chapter, any
    watermelon producer or handler (or importer who is subject to the
    plan) against whose watermelons an assessment is made and collected
    under this chapter and who is not in favor of supporting the
    research, development, advertising, and promotion program provided
    for under this chapter shall have the right to demand a refund of
    the assessment from the Board, under regulations, and on a form and
    within a time period (not less than 90 days), prescribed by the
    Board and approved by the Secretary. A producer or handler (or
    importer who is subject to the plan) who timely makes demand in
    accord with the regulations, on submission of proof satisfactory to
    the Board that the producer, handler, or importer paid the
    assessment for which the refund is sought, shall receive such
    refund within 60 days after demand therefor.
      (2) If approved in the referendum required by section 4914(b) of
    this title relating to the elimination of the assessment refund
    under paragraph (1), the Secretary shall amend the plan that is in
    effect on the day before December 14, 1993, to eliminate the refund
    provision.
      (3)(A) Notwithstanding paragraph (2) and subject to subparagraph
    (B), if importers are subject to the plan, the plan shall provide
    that an importer of less than 150,000 pounds of watermelons per
    year shall be entitled to apply for a refund that is based on the
    rate of assessment paid by domestic producers.
      (B) The Secretary may adjust the quantity of the weight exemption
    specified in subparagraph (A) on the recommendation of the Board
    after an opportunity for public notice and opportunity for comment
    in accordance with section 553 of title 5, and without regard to
    sections 556 and 557 of such title, to reflect significant changes
    in the 5-year average yield per acre of watermelons produced in the
    United States.
    (i) Submission of programs or projects; approval by Secretary
      The plan shall provide that the Board, subject to the provisions
    of subsections (e), (f), and (g) of this section, shall develop and
    submit to the Secretary, for the Secretary's approval, any
    research, development, advertising, or promotion program or
    project, and that a program or project must be approved by the
    Secretary before becoming effective.
    (j) Contract authority
      The plan shall provide the Board with authority to enter into
    contracts or agreements, with the approval of the Secretary, for
    the development and carrying out of research, development,
    advertising, or promotion programs or projects, and the payment of
    the cost thereof with funds collected under this chapter.
    (k) Recordkeeping; accounting and audit reports
      The plan shall provide that the Board shall (1) maintain books
    and records, (2) prepare and submit to the Secretary such reports
    from time to time as may be prescribed for appropriate accounting
    with respect to the receipt and disbursement of funds entrusted to
    it, and (3) cause a complete audit report to be submitted to the
    Secretary at the end of each fiscal period.
    (l) Certification
      The plan shall provide that the Board shall have the authority to
    establish rules for certifying whether a person meets the
    definition of a producer under section 4902(5) of this title.



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