[Federal Register Volume 60, Number 151 (Monday, August 7, 1995)]
[Rules and Regulations]
[Pages 40056-40058]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-19328]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 905
[Docket No. FV95-905-2FIR]
Oranges, Grapefruit, Tangerines, and Tangelos Grown in Florida;
Expenses and Assessment Rate for 1995-96 Fiscal Year
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, this provisions of the interim final rule
which authorized expenses and established an assessment rate for the
1994-95 fiscal year under Marketing Order No. 905. Authorization of
this budget enables the Citrus Administration 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: Effective August 1, 1995, through July 31, 1996.
FOR FURTHER INFORMATION CONTACT: Caroline C. Thorpe, Marketing Order
Administration Branch, Fruit and Vegetable Division, AMS, USDA, P.O.
Box 96456, room 2525-S, Washington, DC 20090-6456; telephone: (202)
720-5127; or William Pimenthal, Southeast Marketing Field Office, Fruit
& Vegetable Division, AMS, USDA, P.O. Box 2276, Winter Haven, Florida
33883-2276; telephone: (813) 299-4770.
[[Page 40057]]
SUPPLEMENTARY INFORMATION: This final rule is issued under Marketing
Agreement and Marketing Order No. 905 (7 CFR part 905), as amended,
regulating the handling of oranges, grapefruit, tangerines, and
tangelos grown in Florida, hereinafter referred to as the order. The
order is 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, oranges, grapefruit, tangerines, and tangelos grown in Florida
are subject to assessments. It is intended that the assessment rate as
issued herein will be applicable to all assessable citrus fruit during
the 1995-96 fiscal year, beginning August 1, 1995, through July 31,
1996. 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 8c(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 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 100 citrus handlers subject to regulation
under the marketing order covering fresh oranges, grapefruit,
tangerines, and tangelos grown in Florida, and approximately 10,200
producers of these fruits in Florida. 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. A minority of these handlers and a majority
of these producers may be classified as small entities.
This marketing order, administered by the Department, requires that
the assessment rate for a particular fiscal period shall apply to all
assessable citrus fruit handled from the beginning of such period. An
annual budget of expenses and assessment rate is prepared by the
Committee and submitted to the Department for approval. The Committee
members are handlers and producers of Florida citrus. They are familiar
with the Committee's 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 budget is formulated and discussed in public
meetings. 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 the expected cartons (\4/5\ bushels)
of fruit shipped. Because that 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. The annual budget and assessment
rate are usually recommended by the Committee shortly before a season
starts, and expenses are incurred on a continuous basis. Therefore,
budget and assessment rate approvals must be expedited so that the
Committee will have funds to pay its expenses.
The Committee met May 23, 1995, and unanimously recommended
expenses of $215,000 for the 1995-96 fiscal year, with an assessment
rate of $0.00325 per \4/5\ bushel carton of fresh fruit shipped.
In comparison, 1994-95 budget expenses were $210,000 with an
approved assessment of $0.003. Thus, for the 1995-96 fiscal year,
expenses are being increased $5,000 and the assessment rate is being
increased $0.00025 from the levels established in 1994-95.
The assessment rate, when applied to anticipated shipments of
66,000,000 cartons of assessable fruit, will yield a total of $214,500
in assessment income. Interest income for 1995-96 is estimated at
$3,500. Income will be adequate to cover budgeted expenses. Funds in
the reserve at the end of the 1995-96 fiscal year, estimated at
$100,000, will be within the maximum permitted by the order of
approximately one-half of one fiscal year's expenses.
Major expense categories for the 1995-96 fiscal year include
$101,740 for salaries, $36,000 for the Manifest Department, and $13,350
for insurance and bonds.
The Committee budget was authorized by an interim final rule issued
on June 22, 1995, and published in the Federal Register [60 FR 33329,
June 28, 1995]. A 30-day comment period was provided 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 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 material presented, including
the information and recommendation submitted by the Committee and other
available information, it is hereby found that this interim final 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 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 1995-96 fiscal year begins on August 1,
1995, and the marketing order requires that the rate of assessment for
the fiscal year apply to all assessable oranges, grapefruit,
tangerines, and tangelos handled during the fiscal year; and (3)
handlers are aware of this action which was unanimously recommended by
the Committee at a public meeting and published in the Federal Register
as an interim final rule that is adopted in this action as a final rule
without change.
[[Page 40058]]
List of Subjects in 7 CFR Part 905
Grapefruit, Marketing agreements, Oranges, Reporting and
recordkeeping requirements, Tangelos, Tangerines.
For the reasons set forth in the preamble, 7 CFR part 905 is
amended as follows:
PART 905--ORANGES, GRAPEFRUIT, TANGERINES, AND TANGELOS GROWN IN
FLORIDA
Accordingly, the interim final rule that revised 7 CFR part 905
which was published at 60 FR 33329 on June 28, 1995, is adopted as a
final rule without change.
Dated: July 31, 1995.
Sharon Bomer Lauritsen,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 95-19328 Filed 8-4-95; 8:45 am]
BILLING CODE 3410-02-P