---
kind: "section"
citation: "7 U.S.C. § 4906"
title: "7"
title_heading: "Agriculture"
number: "4906"
heading: "Required terms in plans"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/7/4906"
units:
  - "Chapter 80 — Watermelon Research and Promotion"
---

# §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](/usc/7/4902.md?p=1) of the National [Watermelon](/usc/7/4902.md?p=3) [Promotion](/usc/7/4902.md?p=8) [Board](/usc/7/4902.md?p=9) 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](/usc/7/4902.md?p=1) complaints of violations of the plan; and
  - (4) recommend to the [Secretary](/usc/7/4902.md?p=1) 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](/usc/7/4902.md?p=9) shall be composed of representatives of [producers](/usc/7/4902.md?p=5) and [handlers](/usc/7/4902.md?p=4), and one representative of the public, appointed by the [Secretary](/usc/7/4902.md?p=1) from nominations submitted in accordance with this subsection. An equal number of representatives of [producers](/usc/7/4902.md?p=5) and [handlers](/usc/7/4902.md?p=4) shall be nominated by [producers](/usc/7/4902.md?p=5) and [handlers](/usc/7/4902.md?p=4), and the representative of the public shall be nominated by the other members of the [Board](/usc/7/4902.md?p=9), in such manner as may be prescribed by the [Secretary](/usc/7/4902.md?p=1). If [producers](/usc/7/4902.md?p=5) and [handlers](/usc/7/4902.md?p=4) fail to select nominees for appointment to the [Board](/usc/7/4902.md?p=9), the [Secretary](/usc/7/4902.md?p=1) may appoint [persons](/usc/7/4902.md?p=2) on the basis of representation as provided for in the plan. If the [Board](/usc/7/4902.md?p=9) fails to nominate a public representative, the [Secretary](/usc/7/4902.md?p=1) shall choose such representative for appointment.
  - (2) A [producer](/usc/7/4902.md?p=5) shall be eligible to serve on the [Board](/usc/7/4902.md?p=9) only as a representative of [handlers](/usc/7/4902.md?p=4), and not as a representative of [producers](/usc/7/4902.md?p=5), if—
    - (A) the [producer](/usc/7/4902.md?p=5) purchases [watermelons](/usc/7/4902.md?p=3) from other [producers](/usc/7/4902.md?p=5), in a combined total volume that is equal to 25 percent or more of the [producer](/usc/7/4902.md?p=5)’s own production; or
    - (B) the combined total volume of [watermelons](/usc/7/4902.md?p=3) handled by the [producer](/usc/7/4902.md?p=5) from the [producer](/usc/7/4902.md?p=5)’s own production and purchases from other [producers](/usc/7/4902.md?p=5)’ production is more than 50 percent of the [producer](/usc/7/4902.md?p=5)’s own production.
  - (3)
    - (A) If [importers](/usc/7/4902.md?p=6) are subject to the plan, the [Board](/usc/7/4902.md?p=9) shall also include 1 or more representatives of [importers](/usc/7/4902.md?p=6), who shall be appointed by the [Secretary](/usc/7/4902.md?p=1) from nominations submitted by [importers](/usc/7/4902.md?p=6) in such manner as may be prescribed by the [Secretary](/usc/7/4902.md?p=1).
    - (B) [Importer](/usc/7/4902.md?p=6) representation on the [Board](/usc/7/4902.md?p=9) shall be proportionate to the percentage of assessments paid by [importers](/usc/7/4902.md?p=6) to the [Board](/usc/7/4902.md?p=9), except that at least 1 representative of [importers](/usc/7/4902.md?p=6) shall serve on the [Board](/usc/7/4902.md?p=9).
    - (C) If [importers](/usc/7/4902.md?p=6) are subject to the plan and fail to select nominees for appointment to the [Board](/usc/7/4902.md?p=9), the [Secretary](/usc/7/4902.md?p=1) may appoint any [importers](/usc/7/4902.md?p=6) as the representatives of [importers](/usc/7/4902.md?p=6).
    - (D) Not later than 5 years after the date that [importers](/usc/7/4902.md?p=6) are subjected to the plan, and every 5 years thereafter, the [Secretary](/usc/7/4902.md?p=1) shall evaluate the average annual percentage of assessments paid by [importers](/usc/7/4902.md?p=6) during the 3-year period preceding the date of the evaluation and adjust, to the extent practicable, the number of [importer](/usc/7/4902.md?p=6) representatives on the [Board](/usc/7/4902.md?p=9).
- (d) **Compensation and expenses of Board—** The plan shall provide that all [Board](/usc/7/4902.md?p=9) members shall serve without compensation, but shall be reimbursed for reasonable expenses incurred in performing their duties as members of the [Board](/usc/7/4902.md?p=9).
- (e) **Budget on fiscal period basis—** The plan shall provide that the [Board](/usc/7/4902.md?p=9) shall prepare and submit to the [Secretary](/usc/7/4902.md?p=1) for the [Secretary](/usc/7/4902.md?p=1)’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](/usc/7/4902.md?p=8).
- (f) **Assessments; payments; notice—** The plan shall provide for the fixing by the [Secretary](/usc/7/4902.md?p=1) of assessments to cover costs incurred under the budgets provided for in [subsection (e)](#e), and under [section 4907(f) of this title](/usc/7/4907.md?p=f), based on the [Board](/usc/7/4902.md?p=9)’s recommendation as to the appropriate rate of assessment, and for the payment of the assessments to the [Board](/usc/7/4902.md?p=9)..[^1] In fixing or changing the rate of assessment pursuant to the plan, the [Secretary](/usc/7/4902.md?p=1) shall comply with the notice and comment procedures established under [section 553 of title 5](/usc/5/553.md). Sections [556](/usc/5/556.md) and [557](/usc/5/557.md) 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](/usc/7/4902.md?p=9) shall be used for research, development, advertising, or [promotion](/usc/7/4902.md?p=8) of [watermelons](/usc/7/4902.md?p=3) and such other expenses for the administration, maintenance, and functioning of the [Board](/usc/7/4902.md?p=9) as may be authorized by the [Secretary](/usc/7/4902.md?p=1), including any referendum and administrative costs incurred by the Department of Agriculture under this chapter.
  - (2) No advertising or sales [promotion](/usc/7/4902.md?p=8) program under this chapter shall make any reference to private brand names nor use false or unwarranted claims in behalf of [watermelons](/usc/7/4902.md?p=3) 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](/usc/7/4902.md?p=9) shall in any manner be used for the purpose of influencing governmental policy or action, except as provided by subsections [(b)(4)](#b-4) and [(f)](#f).
  - (4) Assessments shall be made on [watermelons](/usc/7/4902.md?p=3) produced by [producers](/usc/7/4902.md?p=5) and [watermelons](/usc/7/4902.md?p=3) handled by [handlers](/usc/7/4902.md?p=4), and the rate of such assessments in the case of [producers](/usc/7/4902.md?p=5) and [handlers](/usc/7/4902.md?p=4) shall be the same, on a per-unit basis, for [producers](/usc/7/4902.md?p=5) and [handlers](/usc/7/4902.md?p=4). If a [person](/usc/7/4902.md?p=2) performs both producing and handling functions, both assessments shall be paid by such [person](/usc/7/4902.md?p=2).
  - (5) If [importers](/usc/7/4902.md?p=6) are subject to the plan, an assessment shall also be made on [watermelons](/usc/7/4902.md?p=3) imported into the [United States](/usc/7/4902.md?p=10) by the [importers](/usc/7/4902.md?p=6). The rate of assessment for [importers](/usc/7/4902.md?p=6) who are subject to the plan shall be equal to the combined rate for [producers](/usc/7/4902.md?p=5) and [handlers](/usc/7/4902.md?p=4).
- (h) **Refunds—**
  - (1) Except as provided in [paragraph (2)](#h-2), the plan shall provide that, notwithstanding any other provisions of this chapter, any [watermelon](/usc/7/4902.md?p=3) [producer](/usc/7/4902.md?p=5) or [handler](/usc/7/4902.md?p=4) (or [importer](/usc/7/4902.md?p=6) who is subject to the plan) against whose [watermelons](/usc/7/4902.md?p=3) an assessment is made and collected under this chapter and who is not in favor of supporting the research, development, advertising, and [promotion](/usc/7/4902.md?p=8) program provided for under this chapter shall have the right to demand a refund of the assessment from the [Board](/usc/7/4902.md?p=9), under regulations, and on a form and within a time period (not less than 90 days), prescribed by the [Board](/usc/7/4902.md?p=9) and approved by the [Secretary](/usc/7/4902.md?p=1). A [producer](/usc/7/4902.md?p=5) or [handler](/usc/7/4902.md?p=4) (or [importer](/usc/7/4902.md?p=6) who is subject to the plan) who timely makes demand in accord with the regulations, on submission of proof satisfactory to the [Board](/usc/7/4902.md?p=9) that the [producer](/usc/7/4902.md?p=5), [handler](/usc/7/4902.md?p=4), or [importer](/usc/7/4902.md?p=6) 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](/usc/7/4914.md?p=b) relating to the elimination of the assessment refund under [paragraph (1)](#h-1), the [Secretary](/usc/7/4902.md?p=1) 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)](#h-2) and subject to [subparagraph (B)](#h-3-B), if [importers](/usc/7/4902.md?p=6) are subject to the plan, the plan shall provide that an [importer](/usc/7/4902.md?p=6) of less than 150,000 pounds of [watermelons](/usc/7/4902.md?p=3) per year shall be entitled to apply for a refund that is based on the rate of assessment paid by domestic [producers](/usc/7/4902.md?p=5).
    - (B) The [Secretary](/usc/7/4902.md?p=1) may adjust the quantity of the weight exemption specified in [subparagraph (A)](#h-3-A) on the recommendation of the [Board](/usc/7/4902.md?p=9) after an opportunity for public notice and opportunity for comment in accordance with [section 553 of title 5](/usc/5/553.md), and without regard to sections [556](/usc/5/556.md) and [557](/usc/5/557.md) of such title, to reflect significant changes in the 5-year average yield per acre of [watermelons](/usc/7/4902.md?p=3) produced in the [United States](/usc/7/4902.md?p=10).
- (i) **Submission of programs or projects; approval by Secretary—** The plan shall provide that the [Board](/usc/7/4902.md?p=9), subject to the provisions of subsections [(e)](#e), [(f)](#f), and [(g)](#g), shall develop and submit to the [Secretary](/usc/7/4902.md?p=1), for the [Secretary](/usc/7/4902.md?p=1)’s approval, any research, development, advertising, or [promotion](/usc/7/4902.md?p=8) program or project, and that a program or project must be approved by the [Secretary](/usc/7/4902.md?p=1) before becoming effective.
- (j) **Contract authority—** The plan shall provide the [Board](/usc/7/4902.md?p=9) with authority to enter into contracts or agreements, with the approval of the [Secretary](/usc/7/4902.md?p=1), for the development and carrying out of research, development, advertising, or [promotion](/usc/7/4902.md?p=8) 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](/usc/7/4902.md?p=9) shall (1) maintain books and records, (2) prepare and submit to the [Secretary](/usc/7/4902.md?p=1) 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](/usc/7/4902.md?p=1) at the end of each fiscal period.
- (l) **Certification—** The plan shall provide that the [Board](/usc/7/4902.md?p=9) shall have the authority to establish rules for certifying whether a [person](/usc/7/4902.md?p=2) meets the definition of a [producer](/usc/7/4902.md?p=5) under [section 4902(5) of this title](/usc/7/4902.md?p=5).

## Footnotes

[^1]: So in original.

## Source credit

(Pub. L. 99–198, title XVI, § 1647, Dec. 23, 1985, 99 Stat. 1624; Pub. L. 103–189, §§ 4–7, 8(d)–(f), (k)(4), 9(b), Dec. 14, 1993, 107 Stat. 2260–2262, 2264.)

## Notes

### Editorial Notes

### Amendments

1993—Subsec. (c). Pub. L. 103–189, §§ 4, 8(d), designated existing provisions as par. (1), substituted “other members of the Board” for “producer and handler members of the Board” in second sentence, and added pars. (2) and (3).

Subsec. (f). Pub. L. 103–189, §§ 5(1), 6, substituted “payment of the assessments to the Board.” for “collection of the assessments by the Board” and inserted at end “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.”

Subsec. (g). Pub. L. 103–189, § 8(k)(4)(A), substituted “the following:” for “that—” in introductory provisions.

Subsec. (g)(1). Pub. L. 103–189, §§ 5(2), 8(k)(4)(B), substituted “Funds received” for “funds collected” and a period for semicolon at end.

Subsec. (g)(2). Pub. L. 103–189, § 8(k)(4)(C), substituted “No” for “no” and a period for semicolon at end.

Subsec. (g)(3). Pub. L. 103–189, §§ 5(2), 8(k)(4)(D), substituted “No” for “no”, “received” for “collected”, and a period for “; and” at end.

Subsec. (g)(4). Pub. L. 103–189, § 8(e)(1), substituted “Assessments” for “assessments” and inserted “in the case of producers and handlers” after “such assessments”.

Subsec. (g)(5). Pub. L. 103–189, § 8(e)(2), added par. (5).

Subsec. (h). Pub. L. 103–189, §§ 7, 8(f), designated existing provisions as par. (1), substituted “Except as provided in paragraph (2), the” for “The”, inserted “(or importer who is subject to the plan)” after “or handler” the first two places appearing, substituted “, handler, or importer paid the assessment” for “or handler paid the assessment”, and added pars. (2) and (3).

Subsec. (l). Pub. L. 103–189, § 9(b), added subsec. (l).