[Federal Register Volume 59, Number 212 (Thursday, November 3, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-27233]


[[Page Unknown]]

[Federal Register: November 3, 1994]


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DEPARTMENT OF AGRICULTURE
7 CFR Part 966

[Docket No. FV94-966-2IFR]

 

Tomatoes Grown in Florida; Expenses and Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: This interim final rule authorizes expenditures and 
establishes an assessment rate under Marketing Order No. 966 for the 
1994-95 fiscal period. Authorization of this budget enables the Florida 
Tomato 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 December 5, 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 Aleck J. Jonas, Southeast Marketing Field Office, Fruit and 
Vegetable Division, AMS, USDA, P.O. Box 2276, Winter Haven, FL 33883-
2276, telephone 813-299-4770.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing 
Agreement No. 125 and Order No. 966, both as amended (7 CFR part 966), 
regulating the handling of tomatoes grown in Florida. 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 interim final rule has been reviewed under Executive Order 
12778, Civil Justice Reform. Under the provisions of the marketing 
order now in effect, Florida tomatoes are subject to assessments. It is 
intended that the assessment rate as issued herein will be applicable 
to all assessable tomatoes handled during the 1994-95 fiscal period, 
which began August 1, 1994, and ends July 31, 1995. 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 
orientation and compatibility.
    There are approximately 250 producers of Florida tomatoes under 
this marketing order, and approximately 50 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 $5,000,000. The majority of Florida tomato 
producers and handlers may be classified as small entities.
    The budget of expenses for the 1994-95 fiscal period was prepared 
by the Florida Tomato 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 of Florida 
tomatoes. 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 Florida 
tomatoes. 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.
    The Committee met September 8, 1994, and unanimously recommended a 
1994-95 budget of $2,215,000, $467,000 less than the previous year. 
Budget items for 1994-95 which have increased compared to those 
budgeted for 1993-94 (in parentheses) are: Office salaries, $297,300 
($276,000), depreciation, $18,200 ($16,200), communications, $12,000 
($10,000), employee's retirement program, $46,600 ($37,300), insurance 
and bonds, $7,000 ($5,000), office rent, $24,700 ($22,600), social 
security tax, $20,000 ($19,000), supplies and printing, $7,500 
($6,500), and audit, $2,500 ($2,300). Items which have decreased 
compared to those budgeted for 1993-94 (in parentheses) are: Research 
expense, $192,100 ($200,000), and education and promotion expense, 
$1,500,000 ($2,000,000). All other items are budgeted at last year's 
amounts.
    The Committee also unanimously recommended an assessment rate of 
$0.04 per 25-pound container, the same as last year. This rate, when 
applied to anticipated shipments of 55,000,000 25-pound containers, 
will yield $2,200,000 in assessment income. This, along with $15,000 in 
interest and other income, will be adequate to cover budgeted 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 by 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 August 1, 1994, and the marketing order requires that 
the rate of assessment for the fiscal period apply to all assessable 
tomatoes 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 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 966

    Marketing agreements, Reporting and recordkeeping requirements, 
Tomatoes.

    For the reasons set forth in the preamble, 7 CFR part 966 is 
amended as follows:

PART 966--TOMATOES GROWN IN FLORIDA

    1. The authority citation for 7 CFR part 966 continues to read as 
follows:

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

    2. A new Sec. 966.232 is added to read as follows:

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


Sec. 966.232  Expenses and assessment rate.

    Expenses of $2,215,000 by the Florida Tomato Committee are 
authorized, and an assessment rate of $0.04 per 25-pound container of 
Florida tomatoes is established for the fiscal period ending July 31, 
1995. Unexpended funds may be carried over as a reserve.

    Dated: October 28, 1994.
Larry B. Lace,
Acting Deputy Director, Fruit and Vegetable Division.
[FR Doc. 94-27233 Filed 11-2-94; 8:45 am]
BILLING CODE 3410-02-P