[Federal Register Volume 60, Number 209 (Monday, October 30, 1995)]
[Rules and Regulations]
[Pages 55176-55178]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-26790]
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DEPARTMENT OF AGRICULTURE
7 CFR Part 966
[Docket No. FV95-966-1IFR]
Tomatoes Grown in Florida; Expenses and Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim final rule with request for comments.
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SUMMARY: This interim final rule authorizes expenditures and
establishes an assessment rate under Marketing Order No. 966 for the
1995-96 fiscal period. Authorization of this budget enables the Florida
Tomato Committee (Committee) to incur expenses that are reasonable and
necessary to administer the program. Funds to administer this program
are derived from assessments on handlers.
DATES: Effective August 1, 1995, through July 31, 1996. Comments
received by November 29, 1995, will be considered prior to issuance of
a final rule.
[[Page 55177]]
ADDRESSES: Interested persons are invited to submit written comments
concerning this action. Comments must be sent in triplicate to the
Docket Clerk, Fruit and Vegetable Division, AMS, USDA, P.O. Box 96456,
room 2523-S, Washington, DC 20090-6456, FAX 202-720-5698. Comments
should reference the docket number and the date and page number of this
issue of the Federal Register and will be available for public
inspection in the Office of the Docket Clerk during regular business
hours.
FOR FURTHER INFORMATION CONTACT: Martha Sue Clark, Marketing Order
Administration Branch, Fruit and Vegetable Division, AMS, USDA, P.O.
Box 96456, room 2523-S, Washington, DC 20090-6456, telephone 202-720-
9918, or Aleck J. Jonas, Southeast Marketing Field Office, Fruit and
Vegetable Division, AMS, USDA, P.O. Box 2276, Winter Haven, FL 33883-
2276, telephone 941-299-4770.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement No. 125 and Order No. 966, both as amended (7 CFR part 966),
regulating the handling of tomatoes grown in Florida, hereinafter
referred to as the ``order.'' The marketing agreement and order are
effective under the Agricultural Marketing Agreement Act of 1937, as
amended (7 U.S.C. 601-674), hereinafter referred to as the ``Act.''
The Department of Agriculture (Department) is issuing this rule in
conformance with Executive Order 12866.
This interim final rule has been reviewed under Executive Order
12778, Civil Justice Reform. Under the provisions of the marketing
order now in effect, Florida tomatoes are subject to assessments. It is
intended that the assessment rate as issued herein will be applicable
to all assessable tomatoes handled during the 1995-96 fiscal period,
which began August 1, 1995, and ends July 31, 1996. This interim final
rule will not preempt any State or local laws, regulations, or
policies, unless they present an irreconcilable conflict with this
rule.
The Act provides that administrative proceedings must be exhausted
before parties may file suit in court. Under section 608c(15)(A) of the
Act, any handler subject to an order may file with the Secretary a
petition stating that the order, any provision of the order, or any
obligation imposed in connection with the order is not in accordance
with law and request a modification of the order or to be exempted
therefrom. Such handler is afforded the opportunity for a hearing on
the petition. After the hearing the Secretary would rule on the
petition. 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 in equity to review
the Secretary's ruling on the petition, provided a bill in equity is
filed not later than 20 days after the date of the entry of the ruling.
Pursuant to the requirements set forth in the Regulatory
Flexibility Act (RFA), the Administrator of the Agricultural Marketing
Service (AMS) has considered the economic impact of this rule on small
entities.
The purpose of the RFA is to fit regulatory actions to the scale of
business subject to such actions in order that small businesses will
not be unduly or disproportionately burdened. Marketing orders issued
pursuant to the Act, and the rules issued thereunder, are unique in
that they are brought about through group action of essentially small
entities acting on their own behalf. Thus, both statutes have small
entity orientation and compatibility.
There are approximately 250 producers of Florida tomatoes under
this marketing order, and approximately 50 handlers. Small agricultural
producers have been defined by the Small Business Administration (13
CFR 121.601) as those having annual receipts of less than $500,000, and
small agricultural service firms are defined as those whose annual
receipts are less than $5,000,000. The majority of Florida tomato
producers and handlers may be classified as small entities.
The budget of expenses for the 1995-96 fiscal period was prepared
by the Florida Tomato Committee, the agency responsible for local
administration of the marketing order, and submitted to the Department
for approval. The members of the Committee are producers of Florida
tomatoes. They are familiar with the Committee's needs and with the
costs of goods and services in their local area and are thus in a
position to formulate an appropriate budget. The budget was formulated
and discussed in a public meeting. Thus, all directly affected persons
have had an opportunity to participate and provide input.
The assessment rate recommended by the Committee was derived by
dividing anticipated expenses by expected shipments of Florida
tomatoes. Because that rate will be applied to actual shipments, it
must be established at a rate that will provide sufficient income to
pay the Committee's expenses.
The Committee met September 7, 1995, and unanimously recommended a
1995-96 budget of $2,025,000, $190,000 less than the previous year.
Budget items for 1995-96 which have increased compared to those
budgeted for 1994-95 (in parentheses) are: Office salaries, $319,100
($297,300), depreciation, $19,000 ($18,200), employees' retirement
program, $50,500 ($46,600), insurance and bonds, $8,000 ($7,000),
payroll tax, $22,150 ($20,000), supplies and printing, $8,500 ($7,500),
miscellaneous, $2,000 ($1,600), audit, $3,750 ($2,500), and research
expense, $245,000 ($192,100). Items which have decreased compared to
those budgeted for 1994-95 (in parentheses) are: Office rent, $24,500
($24,700), and education and promotion expense, $1,225,000
($1,500,000). All other items are budgeted at last year's amounts.
The Committee also unanimously recommended an assessment rate of
$0.04 per 25-pound container, the same as last year. This rate, when
applied to anticipated shipments of 50,000,000 25-pound containers,
will yield $2,000,000 in assessment income. This, along with $25,000 in
interest and other income, will be adequate to cover budgeted expenses.
While this action will impose some additional costs on handlers,
the costs are in the form of uniform assessments on handlers. Some of
the additional costs may be passed on to producers. However, these
costs will be offset by the benefits derived by the operation of the
marketing order. Therefore, the Administrator of the AMS has determined
that this action will not have a significant economic impact on a
substantial number of small entities.
After consideration of all relevant matter presented, including the
information and recommendations submitted by the Committee and other
available information, it is hereby found that this rule, as
hereinafter set forth, will tend to effectuate the declared policy of
the Act.
Pursuant to 5 U.S.C. 553, it is also found and determined upon good
cause that it is impracticable, unnecessary, and contrary to the public
interest to give preliminary notice prior to putting this rule into
effect and that good cause exists for not postponing the effective date
of this action until 30 days after publication in the Federal Register
because: (1) The Committee needs to have sufficient funds to pay its
expenses which are incurred on a continuous basis; (2) the fiscal
period began on August 1, 1995, and the marketing order requires that
the rate of assessment for the fiscal period apply to all assessable
tomatoes handled during the fiscal period; (3) handlers are aware of
this action which was unanimously recommended by the Committee at a
public meeting and is similar to other
[[Page 55178]]
budget actions issued in past years; and (4) this interim final rule
provides a 30-day comment period, and all comments timely received will
be considered prior to finalization of this action.
List of Subjects in 7 CFR Part 966
Marketing agreements, Reporting and recordkeeping requirements,
Tomatoes.
For the reasons set forth in the preamble, 7 CFR part 966 is
amended as follows:
PART 966--TOMATOES GROWN IN FLORIDA
1. The authority citation for 7 CFR part 966 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
2. A new Sec. 966.233 is added to read as follows:
Note: This section will not appear in the Code of Federal
Regulations.
Sec. 966.233 Expenses and assessment rate.
Expenses of $2,025,000 by the Florida Tomato Committee are
authorized, and an assessment rate of $0.04 per 25-pound container of
Florida tomatoes is established for the fiscal period ending July 31,
1996. Unexpended funds may be carried over as a reserve.
Dated: October 23, 1995.
Sharon Bomer Lauritsen,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 95-26790 Filed 10-27-95; 8:45 am]
BILLING CODE 3410-02-P
