[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: 94-2010]


[[Page Unknown]]

[Federal Register: January 31, 1994]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 907 and 908

[Docket No. FV93-907-3FIR]

 

Navel and Valencia Oranges Grown in Arizona and Designated Parts 
of California; Expenses and Assessment Rates for the 1993-94 Fiscal 
Year

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: The Department of Agriculture (Department) is adopting as a 
final rule, without change, the provisions of the interim final rule 
that authorized expenses and established assessment rates for the Navel 
Orange Administrative Committee and the Valencia Orange Administrative 
Committee (Committees) under Marketing Order Nos. 907 and 908, 
respectively, for the 1993-94 fiscal year. Authorization of these 
budgets enables the Committees to incur expenses that are reasonable 
and necessary to administer their respective programs. Funds to 
administer these programs are derived from assessments on handlers.

EFFECTIVE DATE: Sections 907.231 and 908.232 are effective November 1, 
1993, through October 31, 1994.

FOR FURTHER INFORMATION CONTACT: Britthany E. Beadle, Marketing Order 
Administration Branch, F&V, AMS, USDA, P.O. Box 96456, room 2524-S, 
Washington, DC 20090-6456; telephone: (202) 720-5127; or Maureen Pello, 
California Marketing Field Office, Marketing Order Administration 
Branch, Fruit and Vegetable Division, AMS, USDA, 2202 Monterey Street, 
suite 102 B, Fresno, CA 93721, telephone: (209) 487-5901.

SUPPLEMENTARY INFORMATION: This final rule is issued under Marketing 
Order Nos. 907 and 908 (7 CFR Parts 907 and 908), both as amended, 
regulating the handling of California-Arizona navel and Valencia 
oranges. The marketing orders 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 final rule has been reviewed under Executive Order 12778, 
Civil Justice Reform. Under the marketing order provisions now in 
effect, navel and Valencia oranges grown in California and Arizona are 
subject to assessments. It is intended that the assessment rates 
specified herein will be applicable to all assessable oranges handled 
during the 1993-94 fiscal year, beginning November 1, 1993, through 
October 31, 1994. This 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 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 action 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 140 handlers of navel oranges and 125 
handlers of Valencia oranges subject to regulation under their 
respective marketing orders each season. In addition, there are 
approximately 3,750 producers of navel oranges and 3,700 producers of 
Valencia oranges in the regulated areas. 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 the navel and Valencia orange 
producers and handlers may be classified as small entities.
    The respective marketing orders require that the assessment rates 
for a particular fiscal year shall apply to all assessable oranges 
handled from the beginning of such year. An annual budget of expenses 
is prepared by each Committee and submitted to the Department for 
approval. The members of the Committees are producers and handlers of 
the regulated commodities. They are familiar with the Committees' needs 
and with the costs for goods, services, and personnel in their local 
areas and are thus in a position to formulate appropriate budgets. The 
budgets are formulated and discussed in public meetings. Thus, all 
directly affected persons have an opportunity to participate and 
provide input.
    The assessment rates recommended by the Committees are derived by 
dividing anticipated expenses by expected shipments of oranges. Because 
these rates are applied to actual shipments, they must be established 
at rates which will produce sufficient income to pay the Committees' 
expected expenses. The recommended budgets and rates of assessment are 
usually acted upon by the Committees shortly before a season starts, 
and expenses are incurred on a continuous basis. Therefore, the budget 
and assessment rate approval must be expedited so that the Committees 
will have funds to pay their expenses.
    The Navel Orange Administrative Committee (NOAC) met on August 31, 
1993, and unanimously recommended 1993-94 fiscal year expenditures of 
$1,589,768 and an assessment rate of $0.0260 per carton of navel 
oranges. Assessment income for 1993-94 is expected to total $1,235,000 
based on shipments of 47.5 million cartons of oranges. Interest and 
incidental income is estimated at $11,000. The NOAC plans on utilizing 
$343,768 from its reserve to cover the difference between income and 
expenses. In comparison, 1992-93 fiscal year budgeted expenditures were 
$1,463,270, and the assessment rate was $0.0316 per carton.
    Major expenditure categories in the 1993-94 budget are $682,975 for 
program administration, $134,463 for compliance activities, $567,355 
for the field department, $199,975 for direct expenses, and $5,000 for 
a salary reserve. This compares to $496,010, $206,800, $591,360, 
$165,700, and $3,400, respectively, for the 1992-93 fiscal year.
    The Valencia Orange Administrative Committee (VOAC) also met on 
August 31, 1993, and unanimously recommended 1993-94 fiscal year 
expenditures of $722,936 and an assessment rate of $0.0270 per carton 
of Valencia oranges. Assessment income for 1993-94 is expected to total 
$540,000 based on shipments of 20 million cartons of oranges. Interest 
and miscellaneous income is estimated at $4,800. The VOAC plans on 
utilizing $178,136 from its reserve to cover the difference between 
income and expenses. In comparison, 1992-93 fiscal year budgeted 
expenditures were $724,330, and the assessment rate was $0.032 per 
carton on Valencia oranges.
    Major expenditure categories in the 1993-94 budget are $287,712 for 
program administration, $56,644 for compliance activities, $239,005 for 
the field department, $137,075 for direct expenses, and $2,500 for a 
salary reserve. This compares to $228,090, $95,100, $271,940, $127,600 
and $1,600, respectively, for the 1992-93 fiscal year.
    This action was issued as an interim final rule on October 22, 
1993, and published in the Federal Register (58 FR 57955, October 28, 
1993). A 30-day comment period was provided for interested persons. No 
comments were received.
    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 will be offset by the benefits derived from the operation of the 
marketing orders. 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.
    It is found that the specified expenses for the marketing orders 
covered in this rule are reasonable and likely to be incurred and that 
such expenses and the specified assessment rates to cover such expenses 
will tend to effectuate the declared policy of the Act.
    It is further found that good cause exists for not postponing the 
effective date of this action until 30 days after publication in the 
Federal Register (5 U.S.C. 553) because the Committees need to have 
sufficient funds to pay their expenses which are incurred on a 
continuous basis. The 1993-94 fiscal years for the programs began on 
November 1, 1993. The marketing orders require that the rates of 
assessment for the fiscal year apply to all assessable oranges handled 
during the fiscal year. In addition, handlers are aware of these 
actions which were recommended by the Committees at public meetings and 
published in the Federal Register as an interim final rule. No comments 
were received concerning the interim final rule that is adopted in this 
action as a final rule without change.

List of Subjects in 7 CFR Parts 907 and 908

    Marketing agreements, Oranges, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR parts 907 and 908 
are hereby amended as follows:
    1. The authority citation for 7 CFR parts 907 and 908 continues to 
read as follows:

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

PART 907--NAVEL ORANGES GROWN IN ARIZONA AND DESIGNATED PART OF 
CALIFORNIA

    2. The interim final rule amending 7 CFR part 907 which was 
published at 58 FR 57955 on October 28, 1993, is adopted as a final 
rule without change.

PART 908--VALENCIA ORANGES GROWN IN ARIZONA AND DESIGNATED PART OF 
CALIFORNIA

    3. The interim final rule amending 7 CFR part 908 which was 
published at 58 FR 57955 on October 28, 1993, is adopted as a final 
rule without change.

    Dated: January 24, 1994.
Robert C. Keeney,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 94-2010 Filed 1-28-94; 8:45 am]
BILLING CODE 3410-02-P