[Federal Register Volume 60, Number 32 (Thursday, February 16, 1995)]
[Rules and Regulations]
[Pages 8926-8927]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-3837]



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DEPARTMENT OF AGRICULTURE
7 CFR PART 915

[Docket No. FV93-911-1FR; Amendment]


Increase in Expenses for Marketing Order Covering Avocados Grown 
in South Florida

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule; amendment.

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SUMMARY: The Department of Agriculture (Department) is amending the 
final rule that authorized expenses and established an assessment rate 
for the Florida Avocado Administrative Committee (Committee) under 
Marketing Order No. 915 for the 1994-95 fiscal year. This final rule 
authorizes an increased level of expenses for the 1994-95 fiscal year. 
Authorization of this budget enables the Committee to incur expenses 
that are reasonable and necessary to administer its program. Funds to 
administer the program are derived from assessments on handlers.

EFFECTIVE DATE: April 1, 1994, through March 31, 1995.

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 Aleck Jonas, 
Southeast Marketing Field Office, Marketing Order Administration 
Branch, Fruit and Vegetable Division, AMS, USDA, P.O. Box 2276, Winter 
Haven, Florida 338833, telephone: (813) 299-4770.

SUPPLEMENTARY INFORMATION: This final rule is issued under Marketing 
Agreement and Order No. 915 (7 CFR Part 915), as amended, regulating 
the handling of avocados grown in south 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 is issuing this rule in conformance with Executive 
Order 12866.
    This final rule has been reviewed under Executive Order 12778, 
Civil Justice Reform. This rule increases the authorized level of 
expenses for the 1994-95 fiscal year which began April 1, 1994, and 
ends March 31, 1995. 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 95 producers of avocados grown in south 
Florida, and approximately 65 handlers who are subject to regulation 
under the avocado marketing order. 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 the avocado producers and 
handlers may be classified as small entities.
    The marketing order requires that the assessment rate for a 
particular fiscal year shall apply to all assessable avocados handled 
from the beginning of [[Page 8927]] such year. An annual budget of 
expenses is prepared by the Committee and submitted to the Department 
for approval. The members of the Committee are producers and handlers 
of avocados. They are familiar with the Committee's needs and with the 
costs for goods, services, and personnel in its area and are thus in a 
position to formulate an appropriate budget. The budget is formulated 
and discussed in a public meeting. 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 expected shipments of avocados. 
Because this 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. Expenses for the Committee are incurred 
on a continuous basis. Therefore, the budget and assessment rate 
approval must be expedited so that the Committee will have funds to pay 
its expenses.
    The Committee met on December 8, 1993, and unanimously recommended 
1994-95 marketing order expenditures of $97,000 and an assessment rate 
of $0.16 per 55-pound bushel of avocados. In comparison, 1993-94 fiscal 
year budgeted expenditures were $113,846, which is $16,846 more than 
the $97,000 recommended for the 1994-95 fiscal year. The assessment 
rate of $0.16 per bushel remained the same as last year's assessment 
rate of $0.16. The major budget categories for 1994-95 were $28,000 for 
administrative staff salaries, $15,600 for compliance, and $10,100 for 
employee benefits.
    Assessment income for 1994-95 was estimated to total $96,000 based 
on anticipated fresh domestic shipments of 600,000 55-pound bushels of 
avocados. Interest on savings was expected to add an additional $1,000 
to income. Sufficient reserve funds were available to cover any 
unexpected shortfall in projected income. Funds in the reserve at the 
end of the 1994-95 fiscal year were estimated to be $100,000. These 
reserve funds will be within the maximum permitted by the order of 
three fiscal years' expenses.
    The expenses and assessment rate were authorized by an interim 
final rule issued on January 25, 1994, and published in the Federal 
Register (59 FR 5073, February 3, 1994). A 30-day comment period was 
provided for interested persons. No comments were received.
    The Committee met again on March 9, 1994, and unanimously 
recommended to increase expenses from $97,000 to $99,500, an increase 
of $2,500 in expenses from the previously authorized amount. The 
additional funds provided money for increased monitoring of water table 
levels in south Florida. No change was recommended for the assessment 
rate. Sufficient reserve funds were available to cover the increased 
expenses.
    The increase in expenses was authorized in the finalization of the 
interim final rule issued on April 15, 1994, and published in the 
Federal Register (59 FR 18943, April 21, 1994).
    The Committee met again on November 9, 1994, and unanimously 
recommended to further increase expenses by $16,920. This increases the 
total 1994-95 expense amount from $99,500 to $116,420. The additional 
increase in expenses was recommended to provide funding for the Avocado 
Lace Bug Research Project. The avocado lace bug has been the most 
persistent pest of the avocado and its population numbers have been 
increasing for the last two years. No change was recommended in the 
approved assessment rate. Adequate funds exist in the Committee's 
reserve to cover the increase in expenses.
    This action will not impose additional costs on handlers. 
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 or to engage in further public 
procedure 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 fiscal 
year began on April 1, 1994, and the Committee needs to have approval 
to pay its expenses which are incurred on a continuous basis; (2) 
handlers are aware of this action which was unanimously recommended by 
the Committee at a public meeting; and (3) no increase in the 
assessment rate is being recommended so no additional funds will need 
to be collected from handlers.

List of Subjects in CFR Part 915

    Avocados, Marketing agreements, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR Part 915 is hereby 
amended as follows:

PART 915--AVOCADOS GROWN IN SOUTH FLORIDA

    1. The authority citation for 7 CFR Part 915 continues to read as 
follows:

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

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


Sec. 915.232   [Amended]

    2. Section 915.232 is amended by removing the number ``$99,500'' 
and adding in its place ``$116,420''.

    Dated: February 8, 1995.
Sharon Bomer Lauritsen,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 95-3837 Filed 2-15-95; 8:45 am]
BILLING CODE 3410-02-P