[Federal Register Volume 65, Number 200 (Monday, October 16, 2000)]
[Proposed Rules]
[Pages 61122-61125]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-26488]


========================================================================
Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

========================================================================


Federal Register / Vol. 65, No. 200 / Monday, October 16, 2000 / 
Proposed Rules

[[Page 61122]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1210

[FV-00-703 PR]


Watermelon Research and Promotion Plan; Redistricting and Adding 
Two Importer Members to the National Watermelon Promotion Board

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule with request for comments.

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SUMMARY: This proposed rule invites comments on changing the boundaries 
of all seven districts under the Watermelon Research and Promotion Plan 
(Plan) to apportion producer and handler membership on the National 
Watermelon Promotion Board (Board). This would make all districts equal 
according to the assessments collected in each district. Pursuant to 
the provisions of the Plan and regulations, we would also add two 
importer members to the Board to ensure that representation of 
importers is proportionate to the percentage of assessments importers 
pay to the Board. These changes are based on a review of the production 
and assessments paid in each district and the amount of watermelon 
import assessments, which the Plan requires at least every five years.

DATES: Comments must be received by November 15, 2000.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposed rule to the Docket Clerk, Research and 
Promotion Branch, Fruit and Vegetable Programs (FV), Agricultural 
Marketing Service (AMS), USDA, Stop 0244, Room 2535-S, 1400 
Independence Avenue, SW., Washington, DC 20250-0244. Comments should be 
submitted in triplicate and will be made available for public 
inspection at the above address during regular business hours. Comments 
may also be submitted electronically to: <a href="/cdn-cgi/l/email-protection#d4b9b5b8bdbab0b5fab2b5a6b9b1a694a1a7b0b5fab3bba2"><span class="__cf_email__" data-cfemail="1f727e7376717b7e31797e6d727a6d5f6a6c7b7e31787069">[email protected]</span></a>. All 
comments should reference the docket number and the date and page 
number of this issue of the Federal Register. A copy of this rule may 
be found at www.ams.usda.gov/fv/rpdocketlist.htm.
    Also, pursuant to the Paperwork Reduction Act (PRA), you may send 
comments regarding the merits of the burden estimate, ways to minimize 
the burden, including the use of automated collection techniques of 
other forms of information technology, or any other aspect of the 
collection of information contained in this proposed rule to the above 
address. Comments concerning the information collection under the PRA 
should also be sent to the Desk Officer for Agriculture, Office of 
Information and Regulatory Affairs, Office of Management and Budget, 
Washington, DC 20503.

FOR FURTHER INFORMATION CONTACT: Kathie Birdsell, Research and 
Promotion Branch, FV, AMS, USDA, Room 2535-S, Stop 0244, Washington, DC 
20250-0244; telephone (202) 720-6930 or (888) 720-9917 (toll free); e-
mail to <a href="/cdn-cgi/l/email-protection#a8c3c9dcc0c1cd86cac1daccdbcdc4c4e8dddbccc986cfc7de"><span class="__cf_email__" data-cfemail="8ce7edf8e4e5e9a2eee5fee8ffe9e0e0ccf9ffe8eda2ebe3fa">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION: This proposed rule is issued under the 
Watermelon Research and Promotion Plan (Plan) [7 CFR Part 1210]. The 
Plan is authorized under the Watermelon Research and Promotion Act 
(Act) [7 U.S.C. 4901-4916].

Question and Answer Overview

Why Does the U.S. Department of Agriculture (USDA or the Department) 
Want To Take This Action?

    Section 1210.320(d) of the Plan requires the National Watermelon 
Promotion Board (Board) to review the alignment of the seven districts 
and importer representation every five years. The Board conducted a 
review in 1999. Therefore, USDA is publishing this proposed rule which 
is based upon the Board's recommendations to obtain public input before 
finalizing any changes.

What Is the Size and Composition of the Board?

    The Plan divides the United States into seven districts of 
comparable watermelon production. Each district is allocated two 
producer members and two handler members. The Plan also requires the 
number of importer members on the Board to be proportionate to the 
percentage of assessments paid by importers. In addition, one public 
member should serve on the Board. The Board currently has 33 members: 
14 producers, 14 handlers, 4 importers, and 1 public member. However, 
two importer positions and the public member position are currently 
vacant.

What Data Is Used by the Board To Conduct the Review?

    The Board is required to base its recommendations on the most 
recent three years of USDA production reports or Board assessment 
reports. In this instance, the Board used assessment reports for 1996, 
1997, and 1998 because USDA production reports were available for only 
16 of the 35 states in which watermelons are produced.

What Was the Outcome of the 1999 Redistricting Review?

    The 1999 review indicated that the boundaries of the districts 
needed to be adjusted in order for there to be an equal amount of 
assessments paid by the producers and handlers in the districts and 
that two additional importers needed to be added to the Board.

How Would the Size and Composition of the Board Change if This Action 
Is Approved?

    The number of producer and handler members would not be changed. 
However, the number of importer positions on the Board would be 
increased from four to six.

How Would This Action Affect the Current Assessment Rates Paid by 
Importers? By Producers and Handlers?

    This action will not have any impact on the assessment rates paid 
by producers, handlers, and importers.

Why Is the USDA Inviting Comments on This Proposed Rule Before Taking 
Further Action?

    The USDA is required to provide to all interested parties a 60-day 
comment period before USDA makes a final decision on this proposed 
rule. The comment period gives an opportunity to all producers, 
handlers, and importers that are subject to the Plan to convey their 
opinions and concerns on the proposed changes. Your participation is

[[Page 61123]]

greatly appreciated and significant to the outcome of this action.

Executive Orders 12886 and 12988

    This rule has been determined ``not significant'' for purposes of 
Executive Order (E.O.) 2866 and, therefore, has not been reviewed by 
the Office of Management and Budget (OMB).
    In addition, this rule has been reviewed under E.O. 12988, Civil 
Justice Reform. The rule is not intended to have retroactive effect and 
will not affect or preempt any other State or Federal law authorizing 
promotion or research relating to an agricultural commodity.
    The Act allows producers, producer-packers, handlers, and importers 
(if covered by the program) to file a written petition with the 
Secretary of Agriculture (Secretary) if they believe that the Plan, any 
provision of the Plan, or any obligation imposed in connection with the 
Plan, is not established in accordance with law. In any petition, the 
person may request a modification of the Plan or an exemption from the 
Plan. The petitioner will have the opportunity for a hearing on the 
petition. Afterwards, an Administrative Law Judge (ALJ) will issue a 
decision. If the petitioner disagrees with the ALJ's ruling, the 
petitioner has 30 days to appeal to the Judicial Officer, who will 
issue a ruling on behalf of the Secretary. If the petitioner disagrees 
with the Secretary's ruling, the petitioner may file, within 20 days, 
an appeal in the U.S. District Court for the district where the 
petitioner resides or conducts business.

Regulatory Flexibility Act and Paperwork Reduction Act

Initial Regulatory Flexibility Analysis

    In accordance with the Regulatory Flexibility Act [5 U.S.C. 601 et 
seq.], AMS has examined the economic impact of this rule on the small 
producers, handlers, and importers that would be affected by this rule.
    The Small Business Administration defines, in 13 CFR Part 121, 
small agricultural producers as those having annual receipts of no more 
than $500,000 and small agricultural service firms (handlers and 
importers) as those having annual receipts of no more than $5 million. 
Under these definitions, the majority of the producers, handlers, and 
importers that would be affected by this rule would be considered small 
entities. Producers of less than 10 acres of watermelons are exempt 
from this program. Importers of less than 150,000 pounds of watermelons 
per year are also exempt.
    According to the Board, there are approximately 2,219 non-exempt 
producers, 619 handlers, and 278 importers who are eligible to serve on 
the Board.
    The Plan requires producers to be nominated by producers, handlers 
to be nominated by handlers, and importers to be nominated by 
importers. This would not change. Because some current members are in 
states or counties which would be moved to other districts under this 
proposed rule, at least one producer member vacancy in Districts 1, 6, 
and 7 and one handler member vacancy in District 6 would be created if 
this rule is adopted. Nomination meetings would have to be held in the 
new districts to fill these vacancies.
    The overall impact would be favorable for producers and handlers 
because the proposed district boundaries would provide more equitable 
representation for the producers and handlers who pay assessments in 
the various districts. For importers, too, the overall impact would be 
favorable because they would be provided two additional seats on the 
Board and more equitable representation on the Board.
    The Board considered several alignments of the districts in an 
effort to provide balanced representation for each district. The Board 
selected the alignment described in this rule as it will provide 
proportional representation on the Board of producers, handlers, and 
importers.
    The addition of two importer seats on the Board would mean four 
additional nominees. This is because two nominees must be submitted for 
each position. The estimated additional annual cost of providing 
nomination information by four persons eligible to be nominated to 
serve as importer members on the Board would be $6.00 or $1.50 per 
importer. The increase of .06 hours has been added to the burden 
previously approved under OMB No. 0505-0001.
    There are no federal rules that duplicate, overlap, or conflict 
with this rule.

Paperwork Reduction Act

    This rule would increase the information collection burden 
previously approved by OMB for the Board nominee background information 
form under OMB Number 0505-0001. This is because there would be two 
additional importers on the Board. Since two nominees must be submitted 
to the Secretary for each position, there is the potential for four 
additional background forms to be submitted under this proposed rule. 
As required by OMB regulations [5 CFR part 1320], the revised burden, 
as described below, has been submitted to OMB.
    Title: National Research, Promotion, and Consumer Information 
Programs.
    OMB Number: 0505-0001.
    Expiration Date of Approval: July 31, 2001.
    Type of Request: Revision of a currently approved information 
collection for research and promotion programs.
    Abstract: The information collection requirements in this request 
are essential to carry out the intent of the Act. The increase in 
burden associated with the background form is as follows:
    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 0.50 hours per response.
    Respondents: Importers.
    Estimated Number of Respondents: 4.
    Estimated Number of Responses per Respondent: 1 every 3 years 
(0.3).
    Estimated Total Annual Burden on Respondents: 0.6 hours.
    The estimated additional annual cost of providing nomination 
information by four persons eligible to be nominated to serve as 
importer members on the Board would be $6.00 or $1.50 per importer. The 
increase of .06 hours has been added to the burden previously approved 
under OMB No. 0505-0001.

Background

    Under the Plan, the Board administers a nationally coordinated 
program of research, development, advertising, and promotion designed 
to strengthen the watermelon's position in the market place and to 
establish, maintain, and expand markets for watermelons. This program 
is financed by assessments on producers growing 10 acres or more of 
watermelons, handlers of watermelons, and importers of 150,000 pounds 
of watermelons or more per year. The Plan specifies that handlers are 
responsible for collecting and submitting both the producer and handler 
assessments to the Board, reporting their handling of watermelons, and 
maintaining records necessary to verify their reporting(s). Importers 
are responsible for payment of assessments to the Board on watermelons 
imported into the United States through the U.S. Customs Service.
    Domestic membership on the Board is determined on the basis of two 
producers and two handlers for each of the seven districts established 
by the Plan. The Board should also include at least one representative 
of importers and one public member. There are currently four importer 
positions on the Board.

[[Page 61124]]

    The current U.S. districts were established in 1994. They are:

    District 1--South Florida, including all south areas of State 
Highway 50.
    District 2--North Florida, including all north areas of State 
Highway 50.
    District 3--Alabama, Georgia, and Mississippi.
    District 4--Connecticut, Delaware, Maine, Maryland, Massachusetts, 
Michigan, New Hampshire, New Jersey, New York, North Carolina, Ohio, 
Pennsylvania, Rhode Island, South Carolina, Vermont, Virginia, 
Washington, D.C., and West Virginia.
    District 5--Alaska, Arkansas, Colorado, Hawaii, Illinois, Indiana, 
Iowa, Kansas, Kentucky, Louisiana, Minnesota, Mississippi, Missouri, 
Nebraska, New Mexico, North Dakota, Oklahoma, South Dakota, Tennessee, 
and Wisconsin.
    District 6--Arkansas, Louisiana, and Texas.
    District 7--Arizona, California, Idaho, Montana, Nevada, Oregon, 
Utah, Washington, and Wyoming.

    The Plan provides that two years after its effective date (June 8, 
1989), and at least every five years thereafter, the Board should 
review the districts to determine whether realignment of the districts 
is necessary.
    When making a review, the Plan specifies that the Board should 
consider factors such as the most recent three years of USDA production 
reports or Board assessment reports if USDA production reports are 
unavailable, shifts and trends in quantities of watermelons produced, 
and any other relevant factors. In reviewing importer representation, 
the Board should review a three-year average of watermelon import 
assessments.
    The Plan further specifies that, as a result of a review, the Board 
may recommend realignment of the districts and a change in the number 
of importer members subject to the approval of the Secretary. Any 
realignment should be recommended by the Board at least six months 
prior to the date of the call for nominations and should become 
effective at least 30 days prior to this date.
    On November 8, 1999, the Board appointed a subcommittee to begin 
reviewing the U.S. districts and to determine whether realignment was 
necessary based on production and assessment collections in the current 
districts. During the review, as prescribed by the Plan, the 
subcommittee reviewed USDA's Annual Crop Summary reports for 1996 
through 1998, which provide figures for the top 16 watermelon producing 
states, and the Board's assessment collection records for 1996 through 
1998, including assessments collected at the county level for 
California and Florida.
    The subcommittee recommended to the Board that the boundaries of 
Districts 3 through 7 be changed and that Districts 1 and 2 be defined 
by Florida counties, rather than using Route 50 as the boundary line.
    The subcommittee also determined that assessments on imports 
represented 20 percent of the Board's assessment income during 1996-
1998. The Plan requires that importers have proportionate 
representation on the Board. Therefore, importers should have 20 
percent of the seats on the Board. Currently, the four importer 
positions represent only 12.5 percent of the 32 industry seats on the 
Board. Adding two more importer member positions would give importers 
approximately 20 percent of the seats on the Board. Because the Plan 
and regulations are self-executing in this regard, no change to the 
regulations is needed.
    Subsequently, the realignment was approved by Board at its February 
15-16, 2000, meeting, with slight modification. Under the proposed 
realignment, each district would represent, on average, 14 percent of 
total U.S. production.
    Therefore, this proposal would realign the districts as follows:

    District 1--The Florida counties of Brevard, Broward, Collier, 
Dade, Glades, Hardee, Hendry, Highlands, Indian River, Lee, Martin, 
Monroe, Okeechobee, Osceola, Palm Beach, Polk, and St. Lucie.
    District 2--The Florida counties of Alachula, Baker, Bay, Bradford, 
Calhoun, Charlotte, Citrus, Clay, Columbia, Desoto, Dixie, Duval, 
Escambia, Flagler, Franklin, Gadsden, Gilchrist, Gulf, Hamilton, 
Hernando, Hillsborough, Holmes, Jackson, Jefferson, Lafayette, Lake, 
Leon, Levy, Liberty, Madison, Manatee, Marion, Nassau, Okaloosa, 
Orange, Pasco, Pinnellas, Putnam, Santa Rosa, Sarasota, Seminole, St. 
Johns, Sumter, Suwannee, Taylor, Union, Volusia, Wakulla, Walton, and 
Washington.
    District 3--Alabama, Arkansas, Georgia, Louisiana, Mississippi, 
South Carolina, and Tennessee.
    District 4--Connecticut, Delaware, Illinois, Indiana, Iowa, Kansas, 
Kentucky, Massachusetts, Maryland, Maine, Michigan, Minnesota, 
Missouri, Nebraska, New Hampshire, New Jersey, New York, North 
Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, Rhode Island, 
South Dakota, Vermont, Virginia, Washington, D.C., West Virginia, and 
Wisconsin.
    District 5--Alaska, Colorado, Hawaii, Idaho, Montana, Nevada, 
Oregon, Utah, Washington, Wyoming and the California counties of 
Alameda, Alpine, Amador, Butte, Calaveras, Colusa, Contra Costa, Del 
Norte, El Dorado, Fresno, Glenn, Humboldt, Inyo, Kern, Kings, Lake, 
Lassen, Madera, Marin, Mariposa, Mendocino, Merced, Modoc, Mono, 
Monterey, Napa, Nevada, Placer, Plumas, Sacramento, San Benito, San 
Francisco, San Joaquin, San Luis Obispo, San Mateo, Santa Barbara, 
Santa Clara, Santa Cruz, Shasta, Sierra, Siskiyou, Solano, Sonoma, 
Stanislaus, Sutter, Tehama, Trinity, Tulare, Toulumne, Venture, Yolo, 
and Yuba.
    District 6--Texas.
    District 7--Arizona, New Mexico, and the California counties of 
Imperial, Los Angeles, Orange, Riverside, San Bernardino, and San 
Diego.

    Under this proposed realignment: (1) South Carolina and Tennessee 
would be moved from District 4 to District 3; (2) Arkansas and 
Louisiana would be moved from District 6 to District 3; (3) Illinois, 
Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Oklahoma, 
South Dakota, and Wisconsin would be moved from District 5 to District 
4; (4) four California counties would be moved from District 7 to 
District 5; and (5) only Texas would remain in District 6.
    This would create one producer vacancy in Districts 1, 6, and 7 and 
one handler in District 6. Current Board members would be affected 
because their states or counties would be moved to other districts. 
Nomination meetings would have to be held in the new districts to fill 
the vacancies.

List of Subjects in 7 CFR Part 1210

    Administrative practice and procedure, Advertising, Consumer 
information, Marketing agreements, Reporting and recordkeeping 
requirements, Watermelon promotion.

    For the reasons set forth in the preamble, Part 1210, Chapter XI of 
Title 7 is proposed to be amended as follows:

PART 1210--WATERMELON RESEARCH AND PROMOTION PLAN

    1. The authority citation for 7 CFR Part 1210 continues to read as 
follows:

    Authority: 7 U.S.C. 4901-4916.
    2. Section 1210.501 is revised to read as follows:


Sec. 1210.501  Realignment of districts.

    Pursuant to Sec. 1210.320(c) of the Plan, the districts shall be as 
follows:

    District 1--The Florida counties of Brevard, Broward, Collier, 
Dade, Glades, Hardee, Hendry, Highlands, Indian

[[Page 61125]]

River, Lee, Martin, Monroe, Okeechobee, Osceola, Palm Beach, Polk, and 
St. Lucie.
    District 2--The Florida counties of Alachula, Baker, Bay, Bradford, 
Calhoun, Charlotte, Citrus, Clay, Columbia, Desoto, Dixie, Duval, 
Escambia, Flagler, Franklin, Gadsden, Gilchrist, Gulf, Hamilton, 
Hernando, Hillsborough, Holmes, Jackson, Jefferson, Lafayette, Lake, 
Leon, Levy, Liberty, Madison, Manatee, Marion, Nassau, Okaloosa, 
Orange, Pasco, Pinnellas, Putnam, Santa Rosa, Sarasota, Seminole, St. 
Johns, Sumter, Suwannee, Taylor, Union, Volusia, Wakulla, Walton, and 
Washington.
    District 3--Alabama, Arkansas, Georgia, Louisiana, Mississippi, 
South Carolina, and Tennessee.
    District 4--Connecticut, Delaware, Illinois, Indiana, Iowa, Kansas, 
Kentucky, Massachusetts, Maryland, Maine, Michigan, Minnesota, 
Missouri, Nebraska, New Hampshire, New Jersey, New York, North 
Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, Rhode Island, 
South Dakota, Vermont, Virginia, Washington, D.C., West Virginia, and 
Wisconsin.
    District 5--Alaska, Colorado, Hawaii, Idaho, Montana, Nevada, 
Oregon, Utah, Washington, Wyoming, and the California counties of 
Alameda, Alpine, Amador, Butte, Calaveras, Colusa, Contra Costa, Del 
Norte, El Dorado, Fresno, Glenn, Humboldt, Inyo, Kern, Kings, Lake, 
Lassen, Madera, Marin, Mariposa, Mendocino, Merced, Modoc, Mono, 
Monterey, Napa, Nevada, Placer, Plumas, Sacramento, San Benito, San 
Francisco, San Joaquin, San Luis Obispo, San Mateo, Santa Barbara, 
Santa Clara, Santa Cruz, Shasta, Sierra, Siskiyou, Solano, Sonoma, 
Stanislaus, Sutter, Tehama, Trinity, Tulare, Toulumne, Venture, Yolo, 
and Yuba.
    District 6--Texas.
    District 7--Arizona, New Mexico, and the California counties of 
Imperial, Los Angeles, Orange, Riverside, San Bernardino and San Diego.

    Dated: October 10, 2000.
Robert C. Keeney,
Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 00-26488 Filed 10-13-00; 8:45 am]
BILLING CODE 3410-02-U


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