[Federal Register Volume 60, Number 89 (Tuesday, May 9, 1995)]
[Rules and Regulations]
[Pages 24536-24539]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-11307]



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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

7 CFR Parts 911 and 915

[FV95-911-1FIR]


Expenses and Assessment Rates for Marketing Orders Covering Limes 
and Avocados Grown in Florida

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Finalization of interim 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 
which authorized expenses and established assessment rates for the 
Florida Lime Administrative Committee and the Avocado Administrative 
Committee (Committees) under Marketing Orders 911 and 915 for the 1995-
96 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: Effective beginning April 1, 1995, through March 31, 
1996.

FOR FURTHER INFORMATION CONTACT: Britthany Beadle, Marketing Order 
Administration Branch, F&V, AMS, USDA, P.O. Box 96456, room 2523-S, 
Washington, DC 20090-6456; telephone (202) 720-5331; or Aleck Jonas, 
Southeast Marketing Field Office, Fruit and Vegetable Division, AMS, 
USDA, P.O. Box 2276, Winter Haven, Florida 33883, telephone (813) 299-
4770.

SUPPLEMENTARY INFORMATION: This final rule is issued under Marketing 
Agreement and Order No. 911 [7 CFR Part 911], as amended, regulating 
the handling of limes grown in Florida; and Marketing Agreement and 
Order No. 915 [7 CFR Part 915] regulating the handling of avocados 
grown in Florida. These agreements and 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, limes and avocados grown in Florida are [[Page 24538]] subject 
to assessments. It is intended that the assessment rates as issued 
herein will be applicable to all assessable Florida limes and avocados 
handled during the 1995-96 fiscal year, beginning April 1, 1995, 
through March 31, 1996. 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 request 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 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 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 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 45 handlers of limes grown in Florida, and 
approximately 40 producers in the regulated area. Also, there are 
approximately 65 handlers of avocados grown in Florida, and 
approximately 95 producers in the regulated area. 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 lime and avocado 
producers and handlers may be classified as small entities.
    The lime and avocado marketing orders, administered by the 
Department, require that the assessment rates for a particular fiscal 
year apply to all assessable limes and avocados handled from the 
beginning of such year. Annual budgets of expenses are prepared by the 
Committees, the agencies responsible for local administration of their 
respective marketing orders, and submitted to the Department for 
approval. Each Committee consists of producers, handlers and a non-
industry public member. They are familiar with the Committees' needs 
and with the costs for goods, services, and personnel in their local 
area and are thus in a position to formulate appropriate budgets. The 
Committees' 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 limes and 
avocados (in bushels). Because those 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 Florida Lime Administrative Committee met on December 14, 1994, 
and unanimously recommended 1995-96 expenses of $92,270. In comparison, 
the 1994-95 fiscal year expense amount was $92,197, which is $73 less 
in expenses than the amount recommended for this fiscal year.
    The Committee also unanimously recommended an assessment rate of 
$0.16 per 55-pound bushel of limes. The 1995-96 assessment rate remains 
unchanged from the previous fiscal year. Assessment income for 1995-96 
is estimated to total $64,000 based on anticipated fresh domestic 
shipments of 400,000 bushels of limes. This, along with $2,500 in 
interest income, and a withdrawal of $25,770 from the Committee's 
reserve fund will be adequate to cover estimated expenses. Funds in the 
reserve at the end of the 1995-96 fiscal year are within the maximum 
permitted by the order of three fiscal years' expenses.
    Major budget categories for the 1995-96 fiscal year are $34,000 for 
administrative staff salaries, $10,000 for research, $8,300 for 
compliance, and $7,300 for employee benefits.
    The Avocado Administrative Committee also met on December 14, 1994, 
and unanimously recommended 1995-96 expenses of $107,570. In 
comparison, 1994-95 fiscal year expenses were $116,420, which is $8,850 
more than the $107,570 recommended for this fiscal year.
    An assessment rate of $0.16 per 55-pound bushel of avocados was 
also unanimously recommended by the Committee. The 1995-96 rate of 
assessment remains the same as the previous fiscal year. Assessment 
income for 1995-96 is estimated to total $112,000 based on anticipated 
fresh domestic shipments of 700,000 bushels of avocados. Assessment 
income, plus an additional $1,500 in interest income will provide 
sufficient funds to cover budgeted expenses. The Committee anticipates 
a reserve fund increase of $5,930 because assessment income is more 
than budgeted expenses. Funds in the reserve at the end of the 1995-96 
fiscal year are within the maximum permitted by the order of three 
fiscal years' expenses.
    Major budget categories for the 1995-96 fiscal year are $34,000 for 
administrative staff salaries, $15,600 for compliance, $12,810 for 
insurance and bonds, and $10,000 for research.
    An interim final rule was issued on February 8, 1995, and published 
in the Federal Register [60 FR 8523; February 15, 1995] and provided a 
30-day comment period 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 1995-96 fiscal year for the programs began April 
1, [[Page 24539]] 1995. The marketing orders require that the rates of 
assessment apply to all assessable limes and avocados handled during 
the fiscal year. In addition, handlers are aware of this action which 
was 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

7 CFR Part 911

    Limes, Marketing agreements, Reporting and recordkeeping 
requirements.

7 CFR Part 915

    Avocados, Marketing agreements, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR parts 911 and 915 
are amended as follows:
    1. The authority citation for both 7 CFR parts 911 and 915 
continues to read as follows:

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

PART 911--LIMES GROWN IN FLORIDA

    Accordingly, the interim final rule amending 7 CFR part 911 which 
was published at 60 FR 8523 on February 15, 1995, is adopted as a final 
rule without change.

PART 915--AVOCADOS GROWN IN SOUTH FLORIDA

    Accordingly, the interim final rule amending 7 CFR part 915 which 
was published at 60 FR 8523 on February 15, 1995, is adopted as a final 
rule without change.

    Dated: May 3, 1995.
Sharon Bomer Lauritsen,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 95-11307 Filed 5-8-95; 8:45 am]
BILLING CODE 3410-02-P