[Federal Register Volume 66, Number 83 (Monday, April 30, 2001)]
[Proposed Rules]
[Pages 21602-21606]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-10600]



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Part V





Department of Agriculture





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Agricultural Marketing Service



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7 CFR Part 1210



Watermelon Research and Promotion Plan; Amendment To Cover All 
Handlers; Proposed Rule

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

[[Page 21602]]


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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.

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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: [email protected]. 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 
[email protected].

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.

[[Page 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 e-mail. 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

[[Page 21604]]

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.

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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 Sec. 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 Sec. 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 Sec. Sec. 1210.308 and 
1210.341(a) of the Plan, Sec. Sec. 1210.402(b) and 1210.404(d) of the 
nominating procedures issued under the Plan, and Sec. Sec. 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 Sec. Sec. 1210.341(c) and 1210.350(a) of the Plan to 
clarify the assessment and reporting requirements for all handlers. 
Since Sec. 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 Sec. 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 Sec. Sec. 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 (Sec. Sec. 1210.301 through 
1210.367) would become Subpart A; the Procedures for Nominating Members 
to the National Watermelon Promotion Board (Sec. Sec. 1210.400 through 
1210.405) would become Subpart B; the Rules and Regulations 
(Sec. Sec. 1210.500 through 1210.540) would become Subpart C; and the 
proposed Referendum Procedures (proposed Sec. Sec. 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 Sec. Sec. 1210.301 through 1210.314 as follows:

------------------------------------------------------------------------
                        Old section                          New section
------------------------------------------------------------------------
1210.301...................................................     1210.313
1210.302...................................................     1210.301
1210.303...................................................     1210.308

[[Page 21606]]

 
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 Sec. 1210.305 is revised to read as follows:


Sec. 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 Sec. 1210.341, paragraphs (a) and (c) are revised to read as 
follows:


Sec. 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 Sec. 1210.350, paragraph (a) introductory text is revised to 
read as follows:


Sec. 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 Sec. 1210.402, paragraph (b) is revised to read as follows:


Sec. 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 Sec. 1210.403 and Sec. 1210.404 of this 
subpart.
* * * * *
    7. In Sec. 1210.404, paragraph (d) is revised to read as follows:


Sec. 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 Sec. 1210.515, paragraph (a) is revised to read as follows:


Sec. 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 Sec. 1210.518, paragraphs (a) and (b)(1) are revised and a 
new paragraph (b)(3) is added to read as follows:


Sec. 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 non-exempt 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