[Federal Register Volume 59, Number 62 (Thursday, March 31, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-7694]


[[Page Unknown]]

[Federal Register: March 31, 1994]


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DEPARTMENT OF AGRICULTURE
7 CFR Part 979

[Docket No. FV93-979-1FIR]

 

South Texas Melons; Increased Expenses and Establishment of 
Assessment Rate

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 an amended interim final 
rule that increased the level of authorized expenses and established an 
assessment rate that generated funds to pay those expenses. 
Authorization of this budget enables the South Texas Melon 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.

EFFECTIVE DATE: October 1, 1993, through September 30, 1994.

FOR FURTHER INFORMATION CONTACT: Martha Sue Clark, Marketing Order 
Administration Branch, Fruit and Vegetable Division, AMS, USDA, PO 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 (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 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 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. A 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 40 producers of South Texas melons under 
this marketing order, and approximately 19 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, the agency responsible for local 
administration of the marketing order, and submitted to the Department 
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 January 31, 1994, were $326,517, which is within the 
maximum permitted by the order of two fiscal periods' expenses.
    An amended interim final rule was published in the Federal Register 
on January 31, 1994 (59 FR 4246). That interim final rule amended 
Sec. 979.216 to increase the level of authorized expenses and establish 
an assessment rate for the Committee. That rule provided that 
interested persons could file comments through March 2, 1994. No 
comments were received.
    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.
    It is further found that good cause exists for not postponing the 
effective date of this rule until 30 days after publication in the 
Federal Register (5 U.S.C. 553) because the Committee needs to have 
sufficient funds to pay its expenses which are incurred on a continuous 
basis. The 1993-94 fiscal period began on October 1, 1993. The 
marketing order requires that the rate of assessment for the fiscal 
period apply to all assessable melons handled during the fiscal period. 
In addition, handlers are aware of this rule which was recommended by 
the Committee at a public meeting and published in the Federal Register 
as an amended interim final rule.

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.

    Accordingly, the amended interim final rule revising Sec. 979.216 
which was published at 59 FR 4246 on January 31, 1994, is adopted as a 
final rule without change.

    Dated: March 25, 1994.
Robert C. Keeney,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 94-7694 Filed 3-30-94; 8:45 am]
BILLING CODE 3410-02-P