[Federal Register Volume 61, Number 141 (Monday, July 22, 1996)]
[Rules and Regulations]
[Pages 37810-37812]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-18465]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 906
[Docket No. FV96-906-1 IFR]
Oranges and Grapefruit Grown in the Lower Rio Grande Valley in
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
Texas Valley Citrus Committee (Committee) under Marketing Order No. 906
for the 1996-97 and subsequent fiscal period. The Committee is
responsible for local administration of the marketing order which
regulates the handling of oranges and grapefruit grown in the Lower Rio
Grande Valley in Texas. Authorization to assess orange and grapefruit
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 August 21,
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
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: Belinda G. Garza, McAllen Marketing
Field Office, Fruit and Vegetable Division, AMS, USDA, 1313 E.
Hackberry, McAllen, TX 78501, telephone (210) 682-2833, FAX (210) 682-
5942, or Charles L. Rush, Marketing Order Administration Branch, Fruit
and Vegetable Division, AMS, USDA, P.O. Box 96456, room 2523-S,
Washington, DC 20090-6456, telephone (202) 690-3670, 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
2523-S, Washington, D.C. 20090-6456; telephone: (202) 720-2491, Fax#
(202) 720-5698.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement and Order No. 906 (7 CFR part 906), regulating the handling
of oranges and grapefruit grown in the Lower Rio Grande Valley in
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 12778, Civil
Justice Reform. Under the marketing order now in effect, handlers in
the Lower Rio Grande Valley in Texas are subject to assessments. Funds
to administer the order are derived from such assessments. It is
intended that the assessment rate as issued herein will be applicable
to all assessable oranges and grapefruit 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
[[Page 37811]]
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 2,000 producers of oranges and grapefruit
in the production area and 19 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 orange and grapefruit producers and handlers may be
classified as small entities.
The Texas orange and grapefruit 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 Texas oranges and grapefruit. 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. Thus, all directly affected persons have
an opportunity to participate and provide input.
The Committee met on May 29, 1996, and recommended 1996-97
expenditures of $1,085,130 and an assessment rate of $0.125 per 7/10
bushel carton of oranges and grapefruit. In comparison, last year's
budgeted expenditures were $1,008,643. The assessment rate of $0.125 is
$0.025 higher than last year's established rate. Major expenditures
recommended by the Committee for the 1996-97 fiscal year include
$712,800 for advertising, and $174,000 for the Mexican Fruit Fly
support program. Budgeted expenses for these items in 1995-96 were
$500,000 for advertising, and $174,000 for Mexican Fruit Fly support
program.
The assessment rate recommended by the Committee was derived by
dividing anticipated expenses by expected shipments of Texas oranges
and grapefruit. Texas orange and grapefruit shipments for the year are
estimated at 8 million cartons which should provide $1,000,000 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 budgeted 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 business.
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 begins on August 1, 1996, and the marketing order
requires that the rate of assessment for each fiscal period apply to
all assessable oranges and grapefruit handled during such fiscal
period; (3) handlers are aware of this action which was 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 906
Marketing agreements, Grapefruit, Oranges, Reporting and
recordkeeping requirements.
For the reasons set forth in the preamble, 7 CFR part 906 is
amended as follows:
PART 906--ORANGES AND GRAPEFRUIT GROWN IN THE LOWER RIO GRANDE
VALLEY IN TEXAS
1. The authority citation for 7 CFR part 906 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
2. Section 906.235 is added to read as follows:
Note: This section will appear in the Code of Federal
Regulations.
Sec. 906.235 Assessment rate.
On and after August 1, 1996, an assessment rate of $0.125 per 7/10
bushel carton is established for oranges
[[Page 37812]]
and grapefruit grown in the Lower Rio Grande Valley in Texas.
Dated: July 15, 1996.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 96-18465 Filed 7-19-96; 8:45 am]
BILLING CODE 3410-02-P
