[Federal Register Volume 59, Number 155 (Friday, August 12, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-19805]
[[Page Unknown]]
[Federal Register: August 12, 1994]
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DEPARTMENT OF AGRICULTURE
7 CFR Part 905
[Docket No. FV94-905-1IFR]
Oranges, Grapefruit, Tangerines, and Tangelos Grown in Florida;
Expenses and Assessment Rate for 1994-95 Fiscal Year
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim final rule with request for comments.
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SUMMARY: This interim final rule authorizes expenses and establishes an
assessment rate for the 1994-95 fiscal year under Marketing Order No.
905. Authorization of this budget enables the Citrus Administrative
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, 1994, through July 31, 1995. Comments
received by September 12, 1994, will be considered prior to any
finalization on this interim final rule.
ADDRESSES: Interested persons are invited to submit written comments
concerning this rule to: Docket Clerk, Fruit and Vegetable Division,
AMS, USDA, P.O. Box 96456, Room 2523-S, Washington, DC 20090-6456 or by
Fax: (202) 720-5698. Three copies of all written material shall be
submitted, and they will be made available for public inspection in the
office of the Docket Clerk during regular business hours.
All comments should reference the docket number, date, and page
number of this issue of the Federal Register.
FOR FURTHER INFORMATION CONTACT: Britthany Beadle, Marketing Order
Administration Branch, Fruit and Vegetable Division, AMS, USDA, P.O.
Box 96456, Room 2525-S, Washington, DC 20090-6456; telephone: (202)
720-5127; or William Pimenthal, Southeast Marketing Field Office, Fruit
& Vegetable Division, AMS, USDA, P.O. Box 2276, Winter Haven, Florida
33883-2276; telephone: (813) 299-4770.
SUPPLEMENTARY INFORMATION: This interim final rule is issued under
Marketing Agreement and Marketing 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
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 interim final rule has been reviewed under Executive Order
12778, Civil Justice Reform. Under the marketing order provisions now
in effect, oranges, grapefruit, tangerines, and tangelos grown in
Florida are subject to assessments. It is intended that the assessment
rate as issued herein will be applicable to all assessable citrus fruit
during the 1994-95 fiscal year, beginning August 1, 1994, through July
31, 1995. 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 8c(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 requesting 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 date of the entry of the ruling.
Pursuant to 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 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 100 citrus handlers subject to regulation
under the marketing order covering fresh oranges, grapefruit,
tangerines, and tangelos grown in Florida, and approximately 10,200
producers of these fruits in Florida. 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. A minority of these handlers and a majority
of these producers may be classified as small entities.
This marketing order, administered by the Department, requires that
the assessment rate for a particular fiscal period shall apply to all
assessable citrus fruit handled from the beginning of such period. An
annual budget of expenses and assessment rate is prepared by the
Committee and submitted to the Department for approval. The Committee
members are handlers and producers of Florida citrus. They are familiar
with the Committee's needs and with the costs for goods, services, and
personnel in their local area and are thus in a position to formulate
appropriate budgets. The budget is formulated and discussed in public
meetings. Thus, all directly affected persons have an opportunity to
participate and provide input.
The assessment rate recommended by the Committee is derived by
dividing anticipated expenses by the expected cartons (\4/5\ bushels)
of fruit shipped. Because that rate is applied to actual shipments, it
must be established at a rate which will produce sufficient income to
pay the Committee's expected expenses. The annual budget and assessment
rate are usually recommended by the Committee shortly before a season
starts, and expenses are incurred on a continuous basis. Therefore,
budget and assessment rate approvals must be expedited so that the
Committee will have funds to pay its expenses.
The Committee met June 21, 1994, and unanimously recommended
expenses of $210,000 for the 1994-95 fiscal year, with an assessment
rate of $0.003 per \4/5\ bushel carton of fresh fruit shipped.
In comparison, 1993-94 budget expenses were $200,000 with an
approved assessment of $0.00285. This represents increases of $10,000
in expenses and of $0.00015 in the assessment rate from the amounts
recommended for the current fiscal year.
The assessment rate, when applied to anticipated shipments of
66,000,000 cartons of assessable fruit, will yield a total of $198,000
in assessment income. Interest income for 1994-95 is estimated at
$2,000. This, along with $10,000 from the Committee's authorized
reserve fund, will be adequate to cover additional expenses. Funds in
the reserve at the end of the 1994-95 fiscal year, estimated at
$125,000, will be within the maximum permitted by the order of
approximately one-half of one fiscal year's expenses.
Major expense categories for the current fiscal year include
$98,300 for salaries, $36,000 for the Manifest department, and $12,600
for insurance and bonds.
While this action 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 would be significantly offset by the benefits derived from 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 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 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) this
fiscal year begins on August 1, 1994, and the marketing order requires
that the rate of assessment for the fiscal year apply to all assessable
oranges, grapefruit, tangerines, and tangelos handled during the fiscal
year; (3) handlers are aware of this action which was unanimously
recommended by the Committee at a public meeting and is similar to
other 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 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 Sec. 905.233 is added to read as follows:
Note: This section will not appear in the annual Code of Federal
Regulations.
Sec. 905.233 Expenses and assessment rate.
Expenses of $210,000 by the Citrus Administrative Committee are
authorized and an assessment rate of $0.003 per 4/5 bushel carton of
assessable fruit is established for the fiscal year ending July 31,
1995. Any unexpended funds may be carried over as a reserve.
Dated: August 8, 1994.
Eric M. Forman,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 94-19805 Filed 8-11-94; 8:45 am]
BILLING CODE 3410-02-P
