[Federal Register Volume 60, Number 63 (Monday, April 3, 1995)]
[Rules and Regulations]
[Pages 16767-16768]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-8098]



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DEPARTMENT OF AGRICULTURE
7 CFR Part 979

[Docket No. FV94-979-1FIR]


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, 1994, through September 30, 1995.

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 (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 1994-95 fiscal period, which began October 1, 
1994, and ends September 30, 1995. 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 $5,000,000. The majority of South Texas melon 
producers and handlers may be classified as small entities.
    The budget of expenses for the 1994-95 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 $207,500 for personnel, 
office, and compliance expenses were recommended in a mail vote. The 
assessment rate and funding for the research and promotion projects 
were to be recommended at a later Committee meeting. The Committee 
administrative expenses of $207,500 were published in the Federal 
Register as an interim final rule November 15, 1994 (59 FR 58760). That 
interim final rule added Sec. 979.217, authorizing expenses for the 
Committee, and provided that interested persons could file comments 
through December 15, 1994. No comments were filed.
    The Committee subsequently met on December 13, 1994, and 
unanimously recommended an increase of $9,700 for administrative 
expenses, plus $158,426 in research expenses, for a total budget of 
$375,626. Budget items for 1994-95 which have increased compared to 
those budgeted for 1993-94 (in parentheses) are: Office salaries, 
$22,000 ($15,600), insurance, $6,250 ($5,250), accounting and audit 
$2,600 ($2,300), rent and utilities, $6,000 ($4,000), disease 
management programs, $86,716 ($82,000), melon breeding and cultivar 
development, $43,824 ($23,118), and variety evaluation, $9,186 
($8,460). Items which have decreased compared to the amount budgeted 
for 1993-94 (in parentheses) are: Insect management programs, $18,700 
($34,390), and $3,823 for cultural practices for which no funding was 
recommended this year. All other items are budgeted at last year's 
amounts.
    The initial 1994-95 budget, published on November 15, 1994, did not 
establish an assessment rate. Therefore, the Committee also unanimously 
recommended an assessment rate of [[Page 16768]] $0.07 per carton. This 
rate, when applied to anticipated shipments of approximately 45,000 
cartons, will yield $315,000 in assessment income, which, along with 
$60,626 from the reserve, will be adequate to cover budgeted expenses. 
Funds in the reserve as of January 31, 1995, were $367,369, 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 30, 1995 (60 FR 5560). That interim final rule amended 
Sec. 979.217 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 1, 1995. 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 1994-95 fiscal period began on October 1, 1994. 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.

PART 979--MELONS GROWN IN SOUTH TEXAS

    Accordingly, the interim final rule revising Sec. 979.217 which was 
published at 60 FR 5560 on January 30, 1995, is adopted as a final rule 
without change.

    Dated: March 28, 1995.
Sharon Bomer Lauritsen,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 95-8098 Filed 3-31-95; 8:45 am]
BILLING CODE 3410-02-W-P