96-30485. Tomatoes Grown in Florida; Assessment Rate

[Federal Register Volume 61, Number 231 (Friday, November 29, 1996)]
[Rules and Regulations]
[Pages 60510-60512]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-30485]


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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

7 CFR Part 966

[Docket No. FV96-966-1 IFR]


Tomatoes Grown in Florida; Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: This interim final rule establishes an assessment rate for the 
Florida Tomato Committee (Committee) under Marketing Order No. 966 for 
the 1996-97 and subsequent fiscal periods. The Committee is responsible 
for local administration of the marketing order which regulates the 
handling of tomatoes grown in Florida. Authorization to assess Florida 
tomato handlers enables the Committee to incur expenses that are 
reasonable and necessary to administer the program.

DATES: Effective on August 1, 1996. Comments received by December 30, 
1996, will be considered prior to issuance of a final rule.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this rule. Comments must be sent in triplicate to the Docket 
Clerk, Fruit and Vegetable Division, AMS, USDA, P.O. Box 96456, room 
2525-S, Washington, DC 20090-6456, FAX [phone]. 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: Doris Jamieson, Marketing Assistant, 
Southeast Marketing Field Office, Fruit and Vegetable Division, AMS, 
USDA, P.O. Box 2276, Winter Haven, FL 33883-2276, telephone 941-299-
4770; FAX [phone], or Martha Sue Clark, Program Assistant, 
Marketing Order Administration Branch, Fruit and Vegetable Division, 
AMS, USDA, P.O. Box 96456, room 2525-S, Washington, DC 20090-6456, 
telephone [phone]; FAX [phone]. Small businesses may request 
information on compliance with this regulation by contacting: Jay 
Guerber, Marketing Order Administration Branch, Fruit and Vegetable 
Division, AMS, USDA, P.O. Box 96456, room 2525-S, Washington, DC 20090-
6456; telephone [phone]; FAX [phone].

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 order is 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 rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. Under the marketing order now in effect, Florida tomato 
handlers are subject to assessments. Funds to

[[Page 60511]]

administer the order are derived from such assessments. It is intended 
that the assessment rate as issued herein will be applicable to all 
assessable tomatoes beginning August 1, 1996, and continuing until 
amended, suspended, or terminated. This 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. 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 the 
Secretary's ruling on the petition, provided an action is filed not 
later than 20 days after the date of the entry of the ruling.
    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA), 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 90 producers of Florida tomatoes in the 
production area and approximately 75 handlers subject to regulation 
under the marketing order. 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 Florida tomato marketing order provides authority for the 
Committee, with the approval of the Department, to formulate an annual 
budget of expenses and collect assessments from handlers to administer 
the program. 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 and assessment rate. The 
assessment rate is formulated and discussed in a public meeting. Thus, 
all directly affected persons have an opportunity to participate and 
provide input.
    The Committee met on September 5, 1996, and unanimously recommended 
1996-97 expenditures of $1,189,000 and an assessment rate of $0.03 per 
25-pound container of tomatoes. In comparison, last year's budgeted 
expenditures were $2,025,000. The assessment rate of $0.03 is $0.01 
less than last year's established rate. Major expenditures recommended 
by the Committee for the 1996-97 fiscal period compared to those 
budgeted for 1995-96 (in parentheses) include: $500,000 for education 
and promotion ($1,225,000), $5,000 for miscellaneous promotion 
($5,000), $284,650 for office salaries ($319,100), $180,000 for 
research ($245,000), $45,500 for employees' retirement program 
($50,500), $30,000 for employees' travel ($30,000), $24,500 for office 
rent ($24,500), $22,150 for payroll taxes ($22,150), $20,000 for 
employees' health insurance ($29,500), $19,150 for depreciation on the 
office furniture and automobiles ($19,000), $14,000 for communications 
($12,000), $12,000 for Committee member travel ($12,000), $9,000 for 
supplies and printing ($8,500), $8,000 for insurance and bonds 
($8,000), and $7,000 for postage, ($7,000).
    The assessment rate recommended by the Committee was derived by 
dividing anticipated expenses by expected shipments of Florida 
tomatoes. Tomato shipments for the year are estimated at 40,000,000 25-
pound containers which should provide $1,200,000 in assessment income, 
which will be adequate to cover projected expenses.
    This action will reduce the assessment obligation imposed on 
handlers. While this rule will impose some additional costs on 
handlers, the costs are in the form of uniform assessments on all 
handlers. Some of the additional costs may be passed on to producers. 
However, these costs will be offset by the benefits derived from the 
operation of the marketing order. Therefore, the AMS has determined 
that this rule will not have a significant economic impact on a 
substantial number of small entities. Interested persons are invited to 
submit information on the regulatory and informational impacts of this 
action on small businesses.
    The assessment rate established in this rule will continue in 
effect indefinitely unless modified, suspended, or terminated by the 
Secretary upon recommendation and information submitted by the 
Committee or other available information.
    Although this assessment rate is effective for an indefinite 
period, the Committee will continue to meet prior to or during each 
fiscal period to recommend a budget of expenses and consider 
recommendations for modification of the assessment rate. The dates and 
times of Committee meetings are available from the Committee or the 
Department. Committee meetings are open to the public and interested 
persons may express their views at these meetings. The Department will 
evaluate Committee recommendations and other available information to 
determine whether modification of the assessment rate is needed. 
Further rulemaking will be undertaken as necessary. The Committee's 
1996-97 budget and those for subsequent fiscal periods will be reviewed 
and, as appropriate, approved by the Department.
    After consideration of all relevant material presented, including 
the information and recommendation 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 rule 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 
1996-97 fiscal period began on August 1, 1996, and the marketing order 
requires that the rate of assessment for each fiscal period apply to 
all assessable tomatoes handled during such 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 assessment rate 
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 rule.

[[Page 60512]]

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 subpart titled ``Assessment Rates'' consisting of a new 
Sec. 966.234 and a new subpart heading titled ``Handling Regulations'' 
are added immediately preceding Sec. 966.323, to read as follows:

    Note: This section will appear in the Code of Federal 
Regulations.

Subpart--Assessment Rates


Sec. 966.234  Assessment rate.

    On and after August 1, 1996, an assessment rate of $0.03 per 25-
pound container is established for Florida tomatoes.

Subpart--Handling Regulations

    Dated: November 22, 1996.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 96-30485 Filed 11-27-96; 8:45 am]
BILLING CODE 3410-02-P