[Federal Register Volume 61, Number 41 (Thursday, February 29, 1996)]
[Rules and Regulations]
[Pages 7688-7690]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-4704]



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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

7 CFR Part 979

[Docket No. FV95-979-1FIR]


Melons Grown in South Texas; 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 to generate funds to pay those expenses under Marketing 
Order No. 979 for the 1995-96 fiscal period. 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, 1995, through September 30, 1996.

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 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 1995-96 fiscal period, which began October 1, 
1995, and ends September 30, 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 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 

[[Page 7689]]
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 30 producers of South Texas melons under 
this marketing order, and approximately 27 handlers. Since the amended 
interim final was issued, information regarding a decrease in the 
number of producers from approximately 40 to 30 and an increase in the 
number of handlers from approximately 19 to 27 was received. 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 
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 research and promotion 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 December 31, 1995, were $398,821, 
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 4, 1996 (61 FR 248). That interim final rule amended 
Sec. 979.218 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 February 5, 1996. 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 1995-96 fiscal period began on October 1, 1995. 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.

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

PART 979--MELONS GROWN IN SOUTH TEXAS

    Accordingly, the amended interim final rule revising Sec. 979.218 
which was published at 61 FR 248 on January 4, 1996, is adopted as a 
final rule without change.


[[Page 7690]]

    Dated: February 23, 1996.
Martha B. Ransom,
Acting Deputy Director, Fruit and Vegetable Division.
[FR Doc. 96-4704 Filed 2-28-96; 8:45 am]
BILLING CODE 3410-02-P