[Federal Register Volume 59, Number 20 (Monday, January 31, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-2009]


[[Page Unknown]]

[Federal Register: January 31, 1994]


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DEPARTMENT OF AGRICULTURE
7 CFR Part 979

[Docket No. FV93-979-1IFR; Amendment 1]

 

South Texas Melons; Increased Expenses and Establishment of 
Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: This interim final rule amends a previous interim final rule 
which authorized administrative expenses for the South Texas Melon 
Committee (Committee) under Marketing Order (M.O.) Number 979. This 
interim final rule increases the level of authorized expenses and 
establishes an assessment rate to generate funds to pay those expenses. 
Authorization of this increased budget enables the 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 October 1, 1993, through September 30, 1994. Comments 
received by March 2, 1994, will be considered prior to issuance of a 
final rule.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this action. 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: Martha Sue Clark, Marketing Order 
Administration Branch, Fruit and Vegetable Division, AMS, USDA, P.O. 
Box 96456, room 2523-S, Washington, DC 20090-6456, telephone 202-720-
9918, or Belinda G. Garza, McAllen Marketing Field Office, Fruit and 
Vegetable Division, AMS, USDA, 1313 East Hackberry, McAllen, TX 78501, 
telephone 210-682-2833.

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. 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 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, South Texas melons are subject to assessments. It is 
intended that the assessment rate as issued herein will be applicable 
to all assessable melons handled during the 1993-94 fiscal period, 
which began October 1, 1993, and ends September 30, 1994. This interim 
final 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 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 the date of the entry of the ruling.
    Pursuant to the 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 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 25 producers of South Texas melons under 
this marketing order, and approximately 30 handlers. 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 $3,500,000. The majority of South Texas melon 
producers and handlers may be classified as small entities.
    The budget of expenses for the 1993-94 fiscal period was prepared 
by the South Texas Melon Committee (Committee), the agency responsible 
for local administration of the marketing order, and submitted to the 
Department of Agriculture for approval. 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 of goods and services in 
their local area and are thus in a position to formulate an appropriate 
budget. The budget was formulated and discussed in a public meeting. 
Thus, all directly affected persons have had an opportunity to 
participate and provide input.
    The assessment rate recommended by the Committee was derived by 
dividing anticipated expenses by expected shipments of South Texas 
melons. Because that rate will be applied to actual shipments, it must 
be established at a rate that will provide sufficient income to pay the 
Committee's expenses.
    Committee administrative expenses of $80,000 for personnel, office, 
and travel expenses were recommended in a mail vote completed July 21, 
1993. The assessment rate and funding for the research and promotion 
projects were to be recommended at a later Committee meeting. 
Authorization of the Committee's administrative expenses of $80,000 was 
published in the Federal Register as an interim final rule September 
28, 1993 (58 FR 50510). That interim final rule added Sec. 979.216, 
authorizing expenses for the Committee, and provided that interested 
persons could file comments through October 28, 1993. No comments were 
filed.
    The Committee subsequently met on December 9, 1993, and unanimously 
recommended increases of $2,500 for personnel expenses and $125,000 for 
compliance activities in the recently approved 1993-94 budget. The 
compliance increase will provide funds to operate road guard stations 
surrounding the production area. The Committee also unanimously 
recommended $151,791 in production research. This expenditure 
represents an increase of $22,056 over last year's budget. No funding 
was recommended for the market development program, for which 
$44,808.42 was budgeted last year. Under this amended budget, expense 
items for the 1993-94 fiscal period are as follows: $37,472 for 
personnel, $29,028 for office expenses, $141,000 for compliance 
activities, and $151,791 for production research.
    The interim final rule published on September 28, 1993, authorizing 
1993-94 administrative expenses, did not establish an assessment rate. 
Therefore, the Committee also unanimously recommended an assessment 
rate of $0.07 per carton, $0.02 more than last year's assessment rate. 
This rate, when applied to anticipated shipments of 5,000,000 cartons, 
will yield $350,000 in assessment income, which, along with $9,291 from 
the reserve, will be adequate to cover budgeted expenses. Funds in the 
reserve as of August 31, 1993, were $322,407, which is within the 
maximum permitted by the order of two fiscal periods' expenses.
    While this action will impose some additional costs on handlers, 
the costs are in the form of uniform assessments on 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 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 matter presented, including the 
information and recommendations 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 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) the fiscal 
period began on October 1, 1993, and the marketing order requires that 
the rate of assessment for the fiscal period apply to all assessable 
melons handled during the fiscal period; (3) handlers are aware of this 
action which was unanimously recommended by the Committee at a public 
meeting and it is similar to that taken for the 1992-93 fiscal period; 
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 979

    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. Section 979.216 is revised to read as follows:

    Note: This section will not appear in the Code of Federal 
Regulations.


Sec. 979.216  Expenses and assessment rate.

    Expenses of $359,291 by the South Texas Melon Committee are 
authorized and an assessment rate of $0.07 per carton of melons is 
established for the fiscal period ending September 30, 1994. Unexpended 
funds may be carried over as a reserve.

    Dated: January 24, 1994.
Robert C. Keaney,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 94-2009 Filed 1-28-94; 8:45 am]
BILLING CODE 3410-02-P