[Federal Register Volume 62, Number 34 (Thursday, February 20, 1997)]
[Rules and Regulations]
[Pages 7659-7660]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-4112]
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DEPARTMENT OF AGRICULTURE
7 CFR Part 979
[Docket No. FV97-979-1 IFR]
Melons Grown in South Texas; 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
South Texas Melon Committee (Committee) under Marketing Order No. 979
for the 1996-97 and subsequent fiscal periods. The Committee is
responsible for local administration of the marketing order which
regulates the handling of melons grown in South Texas. Authorization to
assess Texas melon handlers enables the Committee to incur expenses
that are reasonable and necessary to administer the program.
DATES: Effective on October 1, 1996. Comments received by March 24,
1997, 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 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: Belinda G. Garza, Marketing
Specialist, McAllen Marketing Field Office, Fruit and Vegetable
Division, AMS, USDA, 1313 East Hackberry, McAllen, TX 78501, telephone
210-682-2833, FAX 210-682-5942, 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 202-720-9918; FAX 202-720-5698. 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 202-720-2491; FAX 202-720-5698.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement No. 156 and Order No. 979, both as amended (7 CFR part 979),
regulating the handling of melons grown in South Texas, 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 rule has been reviewed under Executive Order 12988, Civil
Justice Reform. Under the marketing order now in effect, South Texas
melon handlers are subject to assessments. It is intended that the
assessment rate as issued herein will be applicable to all assessable
melons beginning October 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. 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 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 32 producers of South Texas melons in the
production area and approximately 24 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 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 South Texas melon producers and handlers
may be classified as small entities.
The melon 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 and handlers of
South Texas melons. They are familiar with the Committee's needs and
with the costs for 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.
[[Page 7660]]
Thus, all directly affected persons have an opportunity to participate
and provide input.
The Committee, in a telephone vote on September 25, 1996,
unanimously recommended 1996-97 administrative expenses of $100,000 for
personnel, office and the travel portion of the compliance budget.
These expenses were approved by the Department in October 1996. The
assessment rate and funding for the research projects and the road
guard station maintenance portion of the compliance budget were to be
recommended at a later Committee meeting.
The Committee subsequently met on December 17, 1996, and
unanimously recommended 1996-97 expenditures of $308,000 and an
assessment rate of $0.07 per carton of melons. In comparison, last
year's budgeted expenditures were $395,159. The assessment rate of
$0.07 is the same as last year's established rate. Major expenditures
recommended by the Committee for the 1996-97 fiscal period include
$84,500 for personnel and administrative expenses, $115,500 for
compliance, $64,000 for a melon disease management program, $33,125 for
breeding and variety development, and $10,875 for melon variety
evaluation. Budgeted expenses for these items in 1995-96 were $95,544,
$139,500, $86,716, $32,674, and $10,875, respectively.
The assessment rate recommended by the Committee was derived by
dividing anticipated expenses by expected shipments of South Texas
melons. Melon shipments for the year are estimated at 3,870,000
cartons, which should provide $270,900 in assessment income. Income
derived from handler assessments, along with interest income and funds
from the Committee's authorized reserve, will be adequate to cover
budget expenses. Funds in the reserve will be kept within the maximum
permitted by the order.
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 by 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 October 1, 1996, and the marketing order
requires that the rate of assessment for each fiscal period apply to
all assessable melons 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.
List of Subjects in 7 CFR Part 959
Marketing agreements, Melons, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 979 is
amended as follows:
PART 979--MELONS GROWN IN SOUTH TEXAS
1. The authority citation for 7 CFR part 979 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
2. A new subpart titled ``Assessment Rates'' consisting of a new
Sec. 979.219 and a new subpart heading titled ``Handling Regulations''
are added immediately preceding Sec. 979.304, to read as follows:
Note: This section will appear in the Code of Federal
Regulations.
Subpart--Assessment Rates
Sec. 979.219 Assessment rate.
On and after October 1, 1996, an assessment rate of $0.07 per
carton is established for South Texas melons.
Dated: February 13, 1997.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 97-4112 Filed 2-19-97; 8:45 am]
BILLING CODE 3410-02-P
