21602 Federal Register / Vol. 66, No. 83 / Monday, April 30, 2001 / Proposed Rules

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1210

[FV–01–702 PR1]

Watermelon Research and Promotion

Plan; Amendment To Cover All

Handlers

ACTION: Proposed rule with request for

comments.

SUMMARY: This proposed rule would

amend the Watermelon Research and

Promotion Plan (Plan) and the

regulations issued under the Plan to

cover all handlers of watermelons—

including wholesalers, persons who

arrange the sale or transfer of

watermelons, and fresh-cut processors

in addition to the first handlers who are

currently covered. Under this rule, all

handlers would pay assessments and

file reports on all watermelons they

handle, including any watermelons

handled domestically after their

importation. All handlers would also be

eligible to seek nomination to the

National Watermelon Promotion Board

and vote in referenda. The amendment

would increase assessment income

under the watermelon program. In order

to become effective, the amendment

must be approved by a majority of the

watermelon producers, handlers, and

importers voting in a referendum.

DATES: Comments must be received by

June 29, 2001.

ADDRESSES: Interested persons are

invited to submit written comments

concerning the proposed rule to the

Docket Clerk, Research and Promotion

Branch, Fruit and Vegetable Programs

(FV), Agricultural Marketing Service

(AMS), USDA, Stop 0244, 1400

Independence Avenue, S.W., Room

2535 South Building, 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, or on the Internet at

www.ams.usda.gov/fv/rpdocketlist.htm.

Comments may also be submitted

electronically to:

malinda.farmer@usda.gov. 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 the

above Internet address.

Pursuant to the Paperwork Reduction

Act of 1995 (PRA), also send comments

regarding the accuracy of the burden

estimate, ways to minimize the burden,

including the use of automated

collection techniques or other forms of

information technology, or any other

aspect of this collection of information,

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:

Daniel R. Manzoni, Research and

Promotion Branch, FV, AMS, USDA,

Stop 0244, 1400 Independence Avenue,

SW., Room 2535 South Building,

Washington, DC 20250–0244; telephone

(202) 720–9915; facsimile (202) 205–

2800; or e-mail

Daniel.Manzoni@USDA.GOV.

SUPPLEMENTARY INFORMATION: The

National Watermelon Promotion Board

(Board) administers the Watermelon

Research and Promotion Plan (Plan) [7

CFR part 1210] under the supervision of

the U.S. Department of Agriculture

(USDA or the Department). The Plan

was implemented in June 1989 under

the Watermelon Research and

Promotion Act (Act) [Pub. L. 99–198;

enacted January 1, 1986; 7 U.S.C. 4901–

4916, as amended].

Under the Plan, the National

Watermelon Promotion Board (Board)

conducts promotional, consumer

information, and industry information

programs. To fund these activities,

producers and handlers pay 2 cents per

hundredweight (cwt.) on the domestic

watermelons that they produce or

handle, respectively, and importers pay

4 cents per cwt. on the foreign

watermelons they import into the

United States. Handlers collect the

assessments from producers of 10 or

more acres of watermelons and send the

producer assessment to the Board along

with their handler assessments. The

assessments on imported watermelons

are collected by the U.S. Customs

Service (Customs) at the time the

watermelons enter the United States.

Customs remits the assessments to the

Board. Importers of less than 150,000

pounds of watermelons annually may

request the Board to reimburse them for

the assessments collected by Customs

and remitted to the Board.

Question and Answer Overview

Why Should All Handlers of

Watermelons Pay Assessments Under

the Plan?

Between the farm and retail markets,

watermelons are handled several times.

The Plan currently only covers first

handlers of watermelons—those who

first put watermelons into the marketing

chain. However, wholesalers, fresh-cut

processors, and other persons who

arrange the sale or transfer of

watermelons perform similar functions

and benefit from the Board’s promotion

of watermelons. Therefore, the Board

recommended that these additional

handlers also be covered by the Plan.

Including all handlers would simplify

the assessment process because all—not

just some—handlers would be required

to pay assessments.

What Would Be the Overall Impact of

This Rule?

Currently, there are approximately

619 first handlers required to pay

assessments to the Board on the

domestic watermelons they handle. If

this amendment is approved, first

handlers would be required by pay

assessments on all watermelons they

handle, including any watermelons

handled domestically after their

importation.

Also, an additional estimated 550

handlers—wholesalers, fresh-cut

processors, and persons who arrange the

sale or transfer of watermelons (such as

brokers)—would be required to pay

assessments for the first time. The

additional handlers would not include

retailers, wholesale retailers,

foodservice distributors, or foodservice

operators. If you are one of these

handlers, you would be expected to pay

an assessment to the Board of 2 cents

per cwt. on the watermelons they

handle, including any watermelons

handled domestically after their

importation into the United States. The

assessment would be due not later than

30 days after the end of the month in

which the watermelons were handled.

You would also be required to submit to

the Board with your assessments a

report containing your name, address,

and telephone number, the period

covered by the report, and the total

quantity of watermelons handled during

the reporting period. If assessments are

not paid on time, late payment charges

and interest would be applied to the

amount due, and you might be subject

to civil penalties.

On the other hand, you will be

eligible to be nominated and to serve as

a handler member of the Board for the

district in which you reside. This

provides the opportunity to participate

in the development and implementation

of marketing and research projects

which can impact all aspects of the

industry, from field to store. You will

also be eligible to vote in referenda

relating to the Plan—including the

referendum on this amendment.

Federal Register / Vol. 66, No. 83 / Monday, April 30, 2001 / Proposed Rules 21603

How Will This Change Affect Board

Operations?

The main impact on the Board would

be the availability of an additional

$900,000 in assessment income which

would be used to benefit the

watermelon industry as a whole through

more marketing, public relations,

education, and research activities. This

has the potential to increase demand for

watermelons.

How Can I Express My Opinion—Either

For or Against—the Proposed

Amendment?

You have 60 days to submit a

comment in writing to the address listed

at the beginning of this rule Comments

may be submitted by mail, fax, or email. In addition, if you are a

watermelon producer, handler, or

importer, you will have the opportunity

to vote either ‘‘yes’’ or ‘‘no’’ in the

national referendum which will be held

on the amendment.

Why Is There Going To Be a National

Referendum on the Amendment?

The Act requires USDA to conduct a

referendum on amendments to the Plan.

Conducting a referendum allows the

persons affected or potentially affected

by the amendments the opportunity to

vote on whether it should be adopted.

When Will the Vote Be Taken?

It is expected that the referendum will

be held in Fall 2001.

How Can I Vote in the Referendum?

Referendum voting on this program

normally takes place by mail. However,

USDA is exploring the possibility of

providing watermelon producers,

handlers, and importers the opportunity

to vote electronically. If adequate

reliability and security can be obtained,

voting will take place by mail and

electronically. If adequate reliability and

security cannot be obtained, voting will

take place by mail. Regardless, all

known eligible producers, handlers, and

importers will receive a ballot and

voting instructions in the mail from

USDA. Producers, handlers, and

importers who believe they are eligible

to vote and who do not receive a ballot

in the mail will be able to request a

ballot by calling the USDA referendum

agent at a toll-free telephone number.

The voting period will last about one

month.

What Criteria Will USDA Use To Decide

Whether the Industry Wants the

Amendment or Not?

The amendment must be approved by

a simple majority of the voters in the

referendum.

If the Watermelon Industry Approves

This Amendment, When Will It Become

Effective?

Most likely, the amendment would

become effective for the 2002 marketing

year which begins on April 1, 2002.

Executive Orders 12866 and 12988

This proposed rule has been

determined to be not significant for

purposes of Executive Order (E.O.)

12866 and therefore has not been

reviewed by the Office of Management

and Budget (OMB).

This proposed rule has been reviewed

under E.O. 12988, Civil Justice Reform.

It is not intended to have retroactive

effect. This rule would not preempt any

State or local laws, regulations, or

policies, unless they present an

irreconcilable conflict with this rule.

Section 1645 of the Act allows

producers, handlers, and importers of

watermelons who are subject to the Plan

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 in

accordance with law. In the 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

decision, 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 (RFA) [5 U.S.C. 601 et

seq.], the Agricultural Marketing Service

(AMS) is required to examine the

impact of this proposed rule on small

entities. The purpose of the RFA is to

fit regulatory actions to the scale of

businesses subject to such actions so

that small businesses will not be

disproportionately burdened.

In 13 CFR 121.201, the Small

Business Administration defines small

agricultural service firms (handlers and

importers) as those having annual

receipts of less than $5 million and

small agricultural producers as those

having annual receipts of not more than

$500,000.

Currently, there are approximately

2,220 producers of 10 or more acres of

watermelons, 620 handlers, and 280

importers of more than 150,000 pounds

of watermelons annually. If this rule is

implemented, there would be an

additional 550 handlers subject to the

Plan: 480 wholesalers and persons who

arrange the sale or transfer of

watermelons and 70 fresh-cut

processors. A majority of the producers,

handlers, and importers may be

classified as small entities.

This proposed rule would amend the

Plan to cover all handlers of

watermelons. If it is adopted,

wholesalers, persons who arrange the

sale or transfer of watermelons, and

fresh-cut processors of watermelons-in

addition to first handlers—would pay

an assessment of 2 cents per cwt. on all

watermelons they handle (including any

watermelons handled domestically after

their importation), file reports with the

Board, keep records on their handling

transactions, and be subject to penalties

for noncompliance with the Plan. These

additional handlers will also be eligible

to be nominated to serve as handler

members on the Board and to vote in

referenda.

The watermelon industry as a whole

could benefit from this rule. Covering

all handlers under the Plan would

simplify the assessment process and

provide more income to the Board. The

assessment process would be simplified

because all handlers would be treated

equally. No longer would the first

handler be the only person paying the

handler assessment. Covering all

handlers is more workable in an actual

business setting. Also, an additional 550

handlers paying assessments is likely to

increase the income of the Board from

$1.3 million to $2.2 million annually.

As a result, there would be more funds

available to the Board to increase the

demand for watermelons, which would

benefit producers, handlers, and

importers alike, without increasing the

rate of assessment.

The Board would use the additional

revenue to increase post harvest

research and to enhance its category

management project. Category

management is a new system used by

major supermarket chains to manage

supplies of the various products they

sell. Each section of a supermarket is

considered a category, and some

sections—such as the produce section—

contain several categories. With

category management, the supermarket

chains are less flexible in how much of

a given product they want within a

given time frame. In order to maintain

or increase market share, the suppliers

to the retail chains need to develop their

21604 Federal Register / Vol. 66, No. 83 / Monday, April 30, 2001 / Proposed Rules

own category management plans. It is

much more difficult for producers and

suppliers of perishable items to fit into

this system than producers and

suppliers of non-perishable goods. This

means that an effective category

management program may be essential

for a perishable agricultural commodity

group. However, developing an effective

category management program is

expensive. The Board began developing

its category management program in

2000. The Board’s goal is to position

watermelons as the leader in the melon

category of the produce section. In order

to maintain its category management

program, the Board needs to purchase

additional sales data and conduct

additional consumer research. An

effective category management plan has

the potential to increase demand for

watermelons. This would benefit

producers, handlers, and importers.

The Board considered raising the

assessment rate for producers, handlers,

and importers by 50 percent in order to

generate additional funds to grow

demand for watermelons. However,

watermelon producers are not in the

position to increase their burden under

the program, given the state of the

industry. Therefore, this alternative was

not considered viable. In the

watermelon industry, just as in other

fruit and vegetable industries, there are

handlers that cover the assessment cost

as a business expense, handlers that

pass the cost back to producers, and

handlers that pass the cost along to

retailers and, hence, consumers.

Therefore, it is likely that some of the

additional assessments collected from

the newly covered handlers would be

passed back to first handlers, who may

pass it back to producers. However, it is

not anticipated that this will represent

a majority of the additional assessments

that would be collected. Any increased

cost for producers is expected to be less

than an overall increase in the producer

assessment. In addition, any increased

cost for producers or handlers is likely

to be offset by the benefit of increased

demand for watermelons.

The information collection

requirements contained in this proposed

rule are designed to minimize the

burden on handlers covered by the

watermelon research and promotion

program. The estimated additional

annual cost of providing the information

by 550 new handlers would be $2,750

or $5 per new handler as discussed

below.

There are no federal rules that

duplicate, overlap, or conflict with this

rule.

AMS has performed this initial

Regulatory Flexibility Analysis

regarding the impact of this proposed

rule on small entities. However, in order

to have additional data that may be

helpful in evaluating the effects of this

rule on small entities, we are inviting

comments concerning potential effects.

In particular, we are interested in

determining the number and kind of

small entities that may incur benefits or

costs from implementation of this

proposed rule and information on the

expected benefits and costs.

Paperwork Reduction Act

In accordance with the Office of

Management and Budget (OMB)

regulation [5 CFR 1320] which

implements the Paperwork Reduction

Act of 1995 [44 U.S.C. Chapter 35], the

information collection and

recordkeeping requirements that would

be imposed by this rule have been

submitted to OMB.

The information collection burden

associated with current producers,

handlers, and importers is already

reflected in the information collection

approved for use under OMB Number

0581–0093.

This proposed rule would add an

information collection burden on the

additional 550 handlers who would be

subject to the Plan. The information

collection burden includes filing reports

and maintaining books and records

under the Plan. Handlers are required to

maintain such records for two fiscal

years beyond the fiscal period of their

applicability. The additional handlers

would also be eligible to vote in

referenda under the Plan, but the voting

burden is associated with the ballot

which is included in the proposed

referendum procedures which are being

published separately in this issue of the

Federal Register.

Title: National Research, Promotion,

and Consumer Information Programs.

OMB Number: 0581–0093.

Expiration Date of Approval: March

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 this rule is as follows:

1. Handler’s Report

Estimate of Burden: Public reporting

burden for this collection of information

is estimated to average .75 hours per

response.

New Respondents: Handlers.

Estimated Number of New

Respondents: 550.

Estimated Number of Responses per

New Respondent: 4 times a year.

Estimated Total Annual Burden on

New Respondents: 1,650 hours

2. A Requirement to Maintain Records

Sufficient to Verify Reports Submitted

Under the plan

Estimate of Burden: Public reporting

burden for this collection of information

is estimated to average .50 hours per

response.

New Respondents: Handlers.

Estimated Number of New

Respondents: 550.

Estimated Total Annual Burden on

New Respondents: 275 hours.

The estimated additional annual cost

of providing the information by 550 new

handlers would be $2,750 or $5 per new

handler. The increase of 275 total

burden hours would be added to the

previous burden total of 314.5 hours

under OMB No. 0581–0093.

Comments are invited on: (a) Whether

the proposed additional collection of

information is necessary and whether it

will have practical utility; (b) the

accuracy of USDA’s estimate of the

burden of the proposed increase in the

collection of information, including the

validity of the methodology and

assumption used; (c) ways to enhance

the quality, utility, and clarity of the

information to be collected; and (d)

ways to minimize the burden of the

collection of information on those who

are to respond, including the use of

appropriate automated, electronic,

mechanical, or other technological

collection techniques or other forms of

information technology.

Comments concerning the

information collection requirements

contained in this action should

reference OMB No. 0581–0093, the

docket number, and the date and page

number of this issue of the Federal

Register. Comments should be sent to

the USDA Docket Clerk and the OMB

Desk Officer for Agriculture at the

addresses and within the time frames

specified above. All comments received

will be available for public inspection

during regular business hours at the

same address. All responses to this

notice will be summarized and included

in the request for OMB approval.

OMB is required to make a decision

concerning the increase in the collection

of information contained in this rule

between 30 and 60 days after

publication. Therefore, a comment to

OMB is best assured of having its full

effect if OMB receives it within 30 days

of publication.

Federal Register / Vol. 66, No. 83 / Monday, April 30, 2001 / Proposed Rules 21605

Background

The National Watermelon Promotion

Board (Board) has recommended that

the Watermelon Research and

Promotion Plan (Plan) be amended to

include all handlers of domestic

watermelons due to an increased need

to promote watermelons. In 1999,

domestic production of watermelons

totaled 4.1 billion pounds. This was a

12-percent increase over 1998. At the

same time, the season average price of

watermelons fell from $7.71 per

hundredweight (cwt.) in 1998 to $6.49

per cwt. in 1999. This indicates that

additional promotion of watermelons is

needed.

The proposed amendment would

increase the Board’s assessment income

by approximately $900,000 to

approximately $2.2 million annually. It

would also streamline the assessment

payment and collection processes

because all handlers would be

covered—not just the first handler—

because they perform similar functions

in the marketing chain.

Section 1210.305 of the Plan currently

defines a handler as any person (except

a common or contract carrier of

watermelons owned by another person)

who handles watermelons, including a

producer who handles watermelons of

the producer’s own production. This

means the first person who performs the

handling function. Under § 1210.307 of

the Plan, to handle means to grade,

pack, process, sell, transport, purchase,

or in any other way to place or cause

watermelons to which one has title or

possession to be placed in the current of

commerce. The handling function does

not include the transportation or

delivery of field run watermelons by a

producer to a handler for grading,

sizing, or processing.

Currently, 691 first handlers pay an

assessment of 4 cents per cwt. on the

watermelons that they handle, file

reports with the Board for the months in

which they handle watermelons, and

maintain records of their handling

transactions for a period of two years

after the year in which they occurred. In

1999, the average handler assessment

was $1,640.

Assessment payments and a report

must be postmarked not later than 30

days after the end of the month in

which the watermelons are handled. If

a handler does not remit the

assessments to the Board on time, the

Board imposes a one-time late payment

charge of 10 percent. In addition,

handlers are charged 1.5 percent per

month interest on the outstanding

balance. The failure to pay assessments

is considered a violation of the Act and

the Plan. If a handler does not pay the

assessments which are due, the Board

may audit the handler’s records and

request USDA to take legal action

against the handler. If USDA takes legal

action, the handler may be subject to

civil penalties from $550 to $5,500 per

violation.

The Board has identified additional

550 handlers who would be required to

pay the same assessment, file the same

reports, and maintain the same records

as first handlers on all they handle,

including any watermelons handled

domestically after their importation, if

this amendment is adopted. The

additional handlers are wholesalers,

fresh-cut processors, and other persons

who arrange the sale or transfer of

watermelons. These handlers would

also be subject to the same penalties for

non-payment of assessments.

The additional handlers would also

be eligible to serve as handler members

on the Board and vote in referenda.

Serving on the Board provides the

opportunity to participate in the

development and implementation of

marketing and research projects which

can impact all aspects of the industry,

from the field to the consumer’s table.

Voting in referenda provides the right to

vote on changes in the program—

including the current proposed

amendment—and on whether the

program should continue or be

terminated.

To include all handlers under the

Plan, this proposed rule would revise

§ 1210.305 by eliminating the reference

to the first person who performs the

handling function and by adding a

statement that handler does not mean a

retailer, wholesale retailer, foodservice

distributor, or foodservice operator.

In addition, this rule would amend

§§ 1210.308 and 1210.341(a) of the Plan,

§§ 1210.402(b) and 1210.404(d) of the

nominating procedures issued under the

Plan, and §§ 1210.515(a) and

1210.518(a) and (b) of the rules and

regulations issued under the Plan in

order to remove references to first

handlers. It is also necessary to amend

§§ 1210.341(c) and 1210.350(a) of the

Plan to clarify the assessment and

reporting requirements for all handlers.

Since § 1210.517 (which concerns

determining first handlers) would no

longer be necessary if all handlers are

covered by the Plan, that section would

be removed and reserved. In addition,

this rule would add a new

§ 1210.518(b)(3) to state that the

handling party is responsible for the

payment of assessments on any

handling of watermelons.

This rule would also redesignate

§§ 1210.301 through 1210.314 of the

Plan as necessary to arrange the

definitions in alphabetical order.

A proposed rule to establish

procedures for the referendum on these

amendments to the Plan and future

referenda is published separately in this

issue of the Federal Register.

The proposed rule on referendum

procedures also adds letter designations

to the various subparts of the

watermelon research and promotion

program as follows: the Plan

(§§ 1210.301 through 1210.367) would

become Subpart A; the Procedures for

Nominating Members to the National

Watermelon Promotion Board

(§§ 1210.400 through 1210.405) would

become Subpart B; the Rules and

Regulations (§§ 1210.500 through

1210.540) would become Subpart C; and

the proposed Referendum Procedures

(proposed §§ 1210.600 through

1210.607) would become Subpart D.

The Act requires a referendum for all

amendments to the Plan (Subpart A)

except a change in the rate of

assessment, which may be made after

notice-and-comment rulemaking. The

Act does not require a referendum for

changes to Subparts B, C, and D.

Therefore, the proposed amendments to

the Plan which are contained in this

rule would be the subject of the

upcoming referendum. The proposed

amendments to Subpart B (nominating

procedures) and Subpart C (rules and

regulations) which are contained in this

rule can be made without a referendum.

However, since they are needed only if

the amendments to the Plan are

approved in the referendum, they will

be adopted only if the amendments to

the Plan are approved in the

referendum.

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, it is proposed that 7 CFR Part

1210 be amended as follows:

PART 1210—WATERMELON

RESEARCH AND PROMOTION

1. The authority citation for 7 CFR

part 1210 continues to read as follows:

Authority: 7 U.S.C. 4901–4916.

2. Redesignate §§ 1210.301 through

1210.314 as follows:

Old section New section

1210.301 ................................... 1210.313

1210.302 ................................... 1210.301

1210.303 ................................... 1210.308

21606 Federal Register / Vol. 66, No. 83 / Monday, April 30, 2001 / Proposed Rules

Old section New section

1210.304 ................................... 1210.302

1210.305 ................................... 1210.314

1210.306 ................................... 1210.309

1210.307 ................................... 1210.304

1210.308 ................................... 1210.305

1210.309 ................................... 1210.307

1210.310 ................................... 1210.303

1210.311 ................................... 1210.310

1210.312 ................................... 1210.311

1210.313 ................................... 1210.312

1210.314 ................................... 1210.306

3. Newly designated § 1210.305 is

revised to read as follows:

§ 1210.305 Handler.

Handler means any person (except a

common or contract carrier of

watermelons owned by another person)

who handles watermelons, including a

producer who handles watermelons of

the producer’s own production. Handler

shall not mean a retailer, wholesale

retailer, foodservice distributor, or

foodservice operator.

4. In § 1210.341, paragraphs (a) and

(c) are revised to read as follows:

§ 1210.341 Assessments.

(a) Assessments shall be levied on all

watermelons produced and handled in

and imported into the United States for

consumption as human food. Producers

shall be assessed 2 cents per

hundredweight on the watermelons that

they produce. Handlers shall be

assessed 2 cents per hundredweight on

all watermelons that they handle,

including any watermelons handled

after their importation into the United

States. If a person performs both a

producing and a handling function on

any lot of domestic watermelons, the

person shall pay both the producer

assessment and the handler assessment

on those watermelons. Importers shall

be assessed 4 cents per hundredweight

on the watermelons they import at the

time of entry of the watermelons into

the United States.

* * * * *

(c) Each handler is responsible for

payment of the handler assessment to

the Board, and each handler who

purchases watermelons from a producer

is responsible for the collection and

payment to the Board of both the

producer assessment and the handler’s

own assessment. A handler who

purchases watermelons from a producer

may collect the producer assessment

from the producer or deduct the

assessment from the proceeds paid to

the producer on whose watermelons the

assessments are made. A handler who

purchases from a producer shall

maintain separate records for each

producer’s watermelons handled,

including watermelons produced by the

handler. In addition, all handlers shall

maintain records that indicate the total

quantity of watermelons handled by the

handler, including those that are exempt

under this Plan, and such other

information as may be prescribed by the

Board.

* * * * *

5. In § 1210.350, paragraph (a)

introductory text is revised to read as

follows:

§ 1210.350 Reports.

(a) Handlers shall report to the Board

at such times and in such manner as the

Board may prescribe by regulations

whatever information may be necessary

in order for the Board to perform its

duties. In addition, each handler who

purchases watermelons from a producer

shall maintain a record with respect to

each producer for whom watermelons

were handled and for watermelons

produced and handled by the handler.

Such reports may include, but shall not

be limited to, the following information:

* * * * *

6. In § 1210.402, paragraph (b) is

revised to read as follows:

§ 1210.402 Voter and board member

nominee eligibility.

* * * * *

(b) Any individual, group of

individuals, partnership, corporation,

association, cooperative, or any other

entity which is engaged in the

production or handling of watermelons

is considered a person and as such is

entitled to only one vote, except that

such person may cast proxy votes as

provides in § 1210.403 and § 1210.404

of this subpart.

* * * * *

7. In § 1210.404, paragraph (d) is

revised to read as follows:

§ 1210.404 Importer member nomination

and selection.

* * * * *

(d) Any individual, group of

individuals, partnership, corporation,

association, cooperative, or any other

entity which is engaged in the importing

of watermelons is considered a person

and as such is entitled to only one vote,

except that such person may cast proxy

votes as provided in paragraph (e)(1) of

this section.

* * * * *

8. In § 1210.515, paragraph (a) is

revised to read as follows:

§ 1210.515 Levy of assessments.

(a) An assessment of 2 cents per

hundredweight shall be levied on all

watermelon produced in the United

States for ultimate consumption as

human food. An assessment of 2 cents

per hundredweight shall be levied on all

watermelons handled for ultimate

consumption as human food. An

assessment of 4 cents per

hundredweight shall be levied on all

watermelons imported into the United

States for ultimate consumption as

human food at the time of entry into the

United States.

* * * * *

9. Section 1210.517 is removed and

reserved.

10. In § 1210.518, paragraphs (a) and

(b)(1) are revised and a new paragraph

(b)(3) is added to read as follows:

§ 1210.518 Payment of assessments.

(a) Time of payment. The assessment

of domestically produced watermelons

shall become due at the time of each

handling of the watermelons for nonexempt purposes. The assessment on

imported watermelons shall become due

at the time of entry, or withdrawal, into

the United States and at the time of each

subsequent handling.

(b) Responsibility of payment. (1) A

handler who purchases watermelons

from a producer is responsible for

collection and payment of both the

producer’s and the handler’s

assessment. A handler may collect the

producer’s assessment from the

producer or deduct the producer’s

assessment from the proceeds paid to

the producer on whose watermelons the

producer assessment is made. Any such

collection or deduction of producer

assessment shall be made not later than

the time when the handler handles the

watermelons.

* * * * *

(3) The payment of assessments on

any handling of watermelons is the

responsibility of the handling party.

* * * * *

Dated: April 23, 2001.

Kenneth C. Clayton,

Acting Administrator, Agricultural Marketing

Service.

[FR Doc. 01–10600 Filed 4–27–01; 8:45 am]

BILLING CODE 3410–02–P