[Federal Register Volume 61, Number 3 (Thursday, January 4, 1996)]
[Rules and Regulations]
[Pages 248-250]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-74]



-----------------------------------------------------------------------

DEPARTMENT OF AGRICULTURE
[Docket No. FV95-979-1IFR; Amendment 1]


Melons Grown in South Texas; Increased Expenses and Establishment 
of Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Amended interim final rule with request for comments.

-----------------------------------------------------------------------

SUMMARY: This interim final rule amends a previous interim final rule 
which authorized administrative expenses for the South Texas Melon 
Committee (Committee) under M.O. No. 979. This interim final rule 
increases the level of authorized expenses and establishes an 
assessment rate to generate funds to pay those expenses. Authorization 
of this increased budget enables the 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 October 1, 1995, through September 30, 1996. Comments 
received by February 5, 1996, 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 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, 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 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 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 1995-96 fiscal period, 
which began October 1, 1995,

[[Page 249]]

and ends September 30, 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. 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 
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 1995-96 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 
of Agriculture 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 $234,044 for personnel, 
office, and compliance expenses were recommended in a mail vote. The 
assessment rate and funding for the research projects were to be 
recommended at a later Committee meeting. The Committee administrative 
expenses of $234,044 were published in the Federal Register as an 
interim final rule October 23, 1995 (60 FR 54294). That interim final 
rule added Sec. 979.218, authorizing expenses for the Committee, and 
provided that interested persons could file comments through November 
22, 1995. No comments were filed.
    The Committee subsequently met on December 12, 1995, and 
unanimously recommended an increase of $1,000 for administrative 
expenses, plus $160,115 in research expenses, for a total budget of 
$395,159. Budget items for 1995-96 which have increased compared to 
those budgeted for 1994-95 (in parentheses) are: Manager's salary, 
$19,094 ($15,172), office salaries, $24,000 ($22,000), payroll taxes, 
$4,000 ($3,100), insurance, $8,000 ($6,250), rent and utilities, $6,500 
($6,000), supplies, $2,000 ($1,500), postage, $1,500 ($1,000), 
telephone and telegraph, $4,000 ($2,500), furniture and fixtures, 
$2,000 ($1,000), equipment rental and maintenance, $3,500 ($2,500), 
contingencies, $6,000 ($5,278), Committee expenses, $2,000 ($700), 
manager's travel, $5,000 ($3,000), variety evaluation, $10,875 ($9,186) 
and $3,750 for deferred compensation (manager's retirement), which was 
not a line item expense last year. Items which have decreased compared 
to the amount budgeted for 1994-95 (in parentheses) are: field travel, 
$4,000 ($5,000), and field salary, $5,500 ($8,000). All other items are 
budgeted at last year's amounts, including $86,716 for a disease 
management program, $18,700 for an insect management program, $32,674 
for breeding and variety development, and $11,150 for control of melon 
diseases.
    The initial 1995-96 budget, published on October 23, 1995, did not 
establish an assessment rate. Therefore, the Committee also unanimously 
recommended an assessment rate of $0.07 per carton, the same as last 
year. This rate, when applied to anticipated shipments of approximately 
4,500,000 cartons, will yield $315,000 in assessment income, which, 
along with $80,159 from the reserve, will be adequate to cover budgeted 
expenses. Funds in the reserve as of October 31, 1995, were $398,821, 
which is within the maximum permitted by the order of two fiscal 
periods' 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 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.
    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 October 1, 1995, and the marketing order requires that 
the rate of assessment for the fiscal period apply to all assessable 
melons handled during the fiscal period; (3) handlers are aware of this 
action which was unanimously recommended by the Committee at a public 
meeting and is similar to that taken for the 1994-95 fiscal period; 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 979

    Marketing agreements, Melons, Reporting and recordkeeping 
requirements.

 
[[Page 250]]

    For the reasons set forth in the preamble, 7 CFR part 979 is 
amended as follows:

PART 979--MELONS GROWN IN SOUTH TEXAS

    1. The authority citation for 7 CFR part 979 continues to read as 
follows:

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

    2. Section 979.218 is revised to read as follows:

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


Sec. 979.218  Expenses and assessment rate.

    Expenses of $395,159 by the South Texas Melon Committee are 
authorized and an assessment rate of $0.07 per carton is established 
for the fiscal period ending September 30, 1996. Unexpended funds may 
be carried over as a reserve.

    Dated: December 27, 1995
Sharon Bomer Lauritsen,
Deputy Director, Fruit and Vegetable Division, Agricultural Marketing 
Service
[FR Doc. 96-74 Filed 1-3-96; 8:45 am]
BILLING CODE 3410-02-P