[Federal Register Volume 71, Number 212 (Thursday, November 2, 2006)]
[Rules and Regulations]
[Pages 64439-64441]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-18517]



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  Federal Register / Vol. 71, No. 212 / Thursday, November 2, 2006 / 
Rules and Regulations  

[[Page 64439]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1210

[FV-05-704-FR]


Watermelon Research and Promotion Plan; Redistricting

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: The Department of Agriculture (USDA) is adopting as a final 
rule, without change, an interim final rule that reapportioned the 
producer and handler membership on the National Watermelon Promotion 
Board (Board). The final rule continues in effect the realignment of 
all seven districts under the Watermelon Research and Promotion Plan 
(Plan) based on three-year United States production records for 
watermelons and the assessments paid in each district. The change was 
proposed by the Board, which administers the nationally coordinated 
program, in accordance to the provisions of the Plan which require a 
review of the districts' alignment at least every five years.

DATES: Effective December 4, 2006.

FOR FURTHER INFORMATION CONTACT: Jeanette Palmer, Marketing Specialist, 
Research and Promotion Branch, FVP, AMS, USDA, Room 0635-S, Stop 0244, 
1400 Independence Avenue, SW., Washington, DC 20250-0244; telephone 
(202) 720-9915 or (888) 720-9917 (toll free); fax: (202) 205-2800; or 
e-mail [email protected].

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

Executive Orders 12886

    The Office of Management and Budget has waived the review process 
required by Executive Order 12866 for this action.

Executive Order 12988

    In addition, this rule has been reviewed under Executive Order 
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, handlers, and importers to file a written 
petition with the Department of Agriculture (Department) 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 the law. The Act provides that the district court of the United 
States in any district in which the handler is an inhabitant, or has 
his or her principal place of business, has jurisdiction to review 
USDA's ruling on the petition, provided an action is filed not later 
than 20 days after the date of the entry of the ruling.

Regulatory Flexibility Act and Paperwork Reduction Act

    In accordance with the Regulatory Flexibility Act (RFA) [5 U.S.C. 
601 et seq.], the Agricultural Marketing Service has considered the 
economic impact of this action on the small businesses and has 
certified that this rule will not have a significant economic impact on 
a substantial number of small entities. The purpose of the RFA is to 
fit regulatory action to scale on businesses subject to such action so 
that small businesses will not be disproportionately burdened.
    The Small Business Administration defines, in 13 CFR part 121, 
small agricultural producers as those having annual receipts of no more 
than $750,000 and small agricultural service firms (handlers and 
importers) as those having annual receipts of no more than $6.5 
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 1,301 producers, 
442 handlers, and 346 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 will not change. Because some current members are in 
states or counties which will be moved to other districts under this 
rule, one handler vacancy in the new District 4, one producer member 
vacancy in the new District 5, and one handler member vacancy in the 
new District 2 is created with this rule change. Nomination meetings 
will be held in the new districts to fill these vacancies.
    The overall impact is favorable because the new district boundaries 
provide more equitable representation for the producers and handlers 
who pay assessments in the various districts. The current importer 
membership will not change.
    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 provides 
proportional representation on the Board of producers, handlers, and 
importers.
    This rule does not impose additional recordkeeping requirements on 
first handlers, producers, or importers of watermelons because the 
number of nominees would remain unchanged.
    There are no Federal rules that duplicate, overlap, or conflict 
with this rule.
    In accordance with the Office of Management and Budget (OMB) 
regulation [5 CFR part 1320] which implements the Paperwork Reduction 
Act of 1995 [44 U.S.C. Chapter 35], the information collection and 
recordkeeping requirements that are imposed by the Plan have been 
approved previously under OMB control number 0581-0093. This rule does 
not result in a change to the information collection and recordkeeping 
requirements previously approved.

Background

    Under the Plan, the Board administers a nationally coordinated 
program of research, development, advertising, and

[[Page 64440]]

promotion designed to strengthen the position of watermelons 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 and Border Protection. This action 
will not have any impact on the assessment rates paid by producers, 
handlers, and importers.
    Membership on the Board consists of two producers and two handlers 
for each of the seven districts established by the Plan, at least one 
importer, and one public member. The Board currently has 35 members: 14 
producers, 14 handlers, 6 importers, and 1 public member.
    The seven current districts were established in 2001. They are:
    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.
    The six importer membership positions on the Board are 
proportionate to the percentage of assessments paid by the importers. 
Pursuant to section 1210.320(c) of the Plan, the Board shall review the 
seven districts to determine whether realignment of the districts is 
necessary, every five years. 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. 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.
    Pursuant to section 1210.320 (e), the Secretary shall review 
importer representation every five years. According to the Plan, the 
Secretary shall review a three-year average of watermelon import 
assessments and adjust, to the extent practicable, the number of 
importers on the Board.
    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 2002 through 2004, which provide 
figures for the top 17 watermelon producing states, and the Board's 
assessment collection records for 2002 through 2004. Both sets of data 
showed similar trends in production among the various states. However, 
the Board used the assessment reports because USDA's Annual Crop 
Summary reports were available for only 17 of the 34 states in which 
watermelons are produced.
    The subcommittee recommended to the Board that the boundaries of 
all seven districts be changed in order for there to be an equal amount 
of assessments paid by producers and handlers in the districts.
    The subcommittee also provided information that the average annual 
percentage of assessments paid by importers continued to represent 20 
percent of the Board's assessment income during 2002 through 2004. 
Because there was no change in the assessments on imports, it is not 
necessary to change the number of importer representatives on the 
Board. Therefore, the number of importer Board members remains at six.
    Subsequently, the realignment was approved by the Board at its 
February 22, 2005, meeting. Under the realignment, each district will 
represent, on average, 14 percent of total U.S. production. The 
composition of the Board will remain at a total of 35 members: 14 
producers, 14 handlers, 6 importers, and 1 public member.
    Therefore, this rule realigns the districts as follows:
    District 1--The Florida counties of Brevard, Broward, Charlotte, 
Citrus, Collier, Dade, DeSoto, Flagler, Glades, Hardee, Hendry, 
Hernando, Highlands, Hillsborough, Indian River, Lake, Lee, Manatee, 
Martin, Marion, Monroe, Okeechobee, Orange, Osceola, Palm Beach, Pasco, 
Pinellas, Polk, Putnam, Sarasota, Seminole, St. Johns, St. Lucie, 
Sumter, and Volusia.
    District 2--The Florida counties of Alachua, Baker, Bay, Bradford, 
Calhoun, Clay, Columbia, Dixie, Duval, Escambia, Franklin, Gadsden, 
Gilchrist, Gulf, Hamilton, Holmes, Jackson, Jefferson, Lafayette, Leon, 
Levy, Liberty, Madison, Nassau, Okaloosa, Santa Rosa, Suwannee, Taylor, 
Union, Wakulla, Walton, Washington, and the Georgia counties Early, 
Baker, Miller, Mitchell, Colquitt, Thomas, Grady, Decatur, Seminole, 
and the states of Alabama, Arkansas, Louisiana, Mississippi, North 
Carolina, Oklahoma, Tennessee, and Virginia.
    District 3--The Georgia counties not included in District two and 
the state of South Carolina.
    District 4--The States of North Dakota, South Dakota, Nebraska, 
Kansas, Minnesota, Iowa, Illinois, Missouri, Michigan, Indiana, Ohio, 
Kentucky, West Virginia, Maryland, New Hampshire, Maine, New Jersey, 
New York, Pennsylvania, Massachusetts, Rhode Island, Delaware, Vermont, 
Wisconsin, Connecticut, and Washington, DC.
    District 5--The States of Alaska, Hawaii, Nevada, Oregon, and

[[Page 64441]]

Washington and all of the counties in the state of California except 
for those California counties included in District Seven.
    District 6--The counties in the state of Texas, except for those 
counties in Texas included in District Seven.
    District 7--The counties in the state of Texas; Dallam, Sherman, 
Hanaford, Ochiltree, Lipscomb, Hartely, Moore, Hutchinson, Roberts, 
Hemphill, Oldham, Potter, Carson, Gray, Wheeler, Deaf Smith, Randall, 
Armstrong, Donley, Collingsworth, Parmer, Castro, Swisher, Briscoe, 
Hall, Childness, Bailey, Lamb, Hale, Floyd, Motley, Cottle, Cochran, 
Hockely, Lubbock, Crosby, Dickens, King, Yoakum, Terry, Lynn, Garza, 
Kent, Stonewall, the states of New Mexico, Arizona, Utah, Colorado, 
Idaho, Montana, and Wyoming, and the following counties in California; 
San Bernardino, Riverside, San Diego, and Imperial.
    Under this realignment: (1) Eighteen Florida counties are moved 
from District 2 to District 1; (2) Alabama, Arkansas, Louisiana, 
Mississippi, and Tennessee are moved from District 3 to District 2; (3) 
North Carolina, Virginia and Oklahoma are moved from District 4 to 
District 2; (4) Georgia counties Early, Baker, Miller, Colquitt, 
Thomas, Grady, Decatur, and Seminole are moved from District 3 to 
District 2; (5) Montana, Idaho, Wyoming, Utah and Colorado are moved 
from District 5 to District 7; (6) Texas counties Dallam, Sherman, 
Hanaford, Ochiltree, Lipscomb, Hartely, Moore, Hutchinson, Roberts, 
Hemphill, Oldham, Potter, Carlson, Gray, Wheeler, Deaf Smith, Randall, 
Armstrong, Donley, Collingsworth, Parmer, Castro, Swisher, Briscoe, 
Hall, Childness, Bailey, Lamb, Hale, Floyd, Motley, Cottle, Cochran, 
Hockely, Lubbock, Crosby, Dickens, King, Yoakum, Terry, Lynn, Garza, 
Kent, and Stonewall, are moved from District 6 to District 7; and (7) 
California counties Los Angeles and Orange are moved from District 7 to 
District 5.
    Due to the re-alignment of the districts the following vacancies 
are created: one handler vacancy in District 4, one handler vacancy in 
District 2, and one producer vacancy in District 5. Current Board 
members would be affected because their states or counties would be 
moved to other districts. Nomination meetings will be held as soon as 
possible in the new districts to fill the vacancies.
    An interim final rule that re-aligned the districts under the Plan 
was published in the Federal Register on June 14, 2006. Copies of the 
rule were made available through the Internet by USDA and the Office of 
the Federal Register. That rule provided a 30-day comment period which 
ended July 15, 2006. Two comments were received by the deadline.
    Two unfavorable comments were received. The commenters' state that 
USDA should not be marketing the agribusiness products at the expense 
of the taxpayers; however, the Board is industry-funded and, as such, 
taxpayers' dollars are not expended on this program.
    After consideration of all relevant material presented including 
comments, the Board's recommendation, and other information, it is 
found that finalizing the interim final rule, without change, as 
published in the Federal Register (71 FR 34232) on June 14, 2006, will 
tend to effectuate the declared policy of the Act.

List of Subjects in 7 CFR Part 1210

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

0
1. The authority citation for 7 CFR part 1210 continues to read as 
follows:

    Authority: 7 U.S.C. 4901-4916.

PART 1210--WATERMELON RESEARCH AND PROMOTION PLAN

0
The interim final rule amending of 7 CFR part 1210, which was published 
in the June 14, 2006, Federal Register at 71 FR 34232 is adopted 
without change.

    Dated: October 27, 2006.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
 [FR Doc. E6-18517 Filed 11-1-06; 8:45 am]
BILLING CODE 3410-02-P