96-18467. Oranges, Grapefruit, Tangerines, and Tangelos Grown in Florida; Assessment Rate

[Federal Register Volume 61, Number 143 (Wednesday, July 24, 1996)]
[Rules and Regulations]
[Pages 38354-38355]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-18467]


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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

7 CFR Part 905

[Docket No. FV96-905-1 IFR]


Oranges, Grapefruit, Tangerines, and Tangelos 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 
Citrus Administrative Committee (Committee) under Marketing Order No. 
905 for the 1996-97 fiscal period and continuing until amended. The 
Committee is responsible for local administration of the marketing 
order which regulates the handling of citrus grown in Florida. 
Authorization to assess citrus 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 23, 
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 [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, Southeast Marketing Field Office, Fruit and Vegetable 
Division, AMS, USDA, P.O. Box 2276, Winter Haven, FL 33883-2276, 
telephone [phone], FAX [phone], or Tershirra Yeager, 
Marketing Order Administration Branch, Fruit and Vegetable Division, 
AMS, USDA, P.O. Box 96456, room 2523-S, Washington, DC 20090-6456, 
telephone [phone], FAX [phone]. Small business 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: [phone], Fax # [phone].

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing 
Agreement No. 84 and Order No. 905, as amended (7 CFR part 905), 
regulating the handling of Oranges, Grapefruit, Tangerines, and 
Tangelos 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 rule has been reviewed under Executive Order 12778, Civil 
Justice Reform. Under the marketing order now in effect, Florida citrus 
handlers 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 citrus 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. 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

[[Page 38355]]

behalf. Thus, both statutes have small entity orientation and 
compatibility.
    There are approximately 11,000 producers of citrus in the 
production area and approximately 100 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 citrus producers and handlers may be 
classified as small entities.
    The Florida citrus 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 
Oranges, Grapefruit, Tangerines, and Tangelos Grown in Florida. 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 24, 1996, and unanimously recommended 
1996-97 expenditures of approximately $230,000 and an assessment rate 
of $0.0035 per 4/5 bushel carton of citrus. In comparison, last year's 
budgeted expenditures were $215,000. The assessment rate of $0.0035 is 
$0.00025 higher than last year's assessment. Major expenditures 
recommended by the Committee for the 1996-97 year include $102,760 for 
salaries, $36,000 for the Manifest Department-FDACS, and $13,500 for 
insurance and bonds. Budgeted expenses for these items in 1995-96 were 
$101,740 for salaries, $36,000 for the Manifest Department-FDACS, and 
$13,350 for insurance and bonds.
    The assessment rate recommended by the Committee was derived by 
dividing anticipated expenses by expected shipments of Florida citrus. 
Citrus shipments for the year are estimated at 64,500,000 which should 
provide $225,750 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. Any 
excess of revenues or expenses will be placed in the reserve fund. 
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 during each fiscal period 
to 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 citrus 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 part 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 905

    Grapefruit, Marketing agreements, Oranges, Reporting and 
recordkeeping requirements, Tangelos, Tangerines.

    For the reasons set forth in the preamble, 7 CFR part 905 is 
amended as follows:

PART 905--ORANGES, GRAPEFRUIT, TANGERINES, AND TANGELOS GROWN IN 
FLORIDA

    1.The authority citation for 7 CFR part 905 continues to read as 
follows:

    Authority: 7 U.S.C. 601-674.

    2. A new subpart--Assessment Rates consisting of a new Sec. 905.235 
and a new subpart heading--Grade and Size Requirements are added 
immediately preceding Sec. 905.306 Orange, Grapefruit, Tangerine, and 
Tangelo regulation to read as follows:

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

Subpart--Assessment Rates


Sec. 905.235  Assessment rate.

    On and after August 1, 1996, an assessment rate of $0.0035 per \4/
5\ bushel carton is established for assessable for Florida citrus 
covered under the order.

Subpart--Grade and Size Requirements


Sec. 905.306  Orange, Grapefruit, Tangerine and Tangelo Regulation.

* * * * *
    Dated: July 15, 1996.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 96-18467 Filed 7-23-96; 8:45 am]
BILLING CODE 3410-02-M