[Federal Register Volume 61, Number 185 (Monday, September 23, 1996)]
[Rules and Regulations]
[Pages 49650-49651]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-24240]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 906

[Docket No. FV96-906-1 FIR]


Oranges and Grapefruit Grown in the Lower Rio Grande Valley in 
Texas; 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 interim final rule 
establishing an assessment rate for the Texas Valley Citrus Committee 
(Committee) under Marketing Order No. 906 for the 1996-97 and 
subsequent fiscal periods. The Committee is responsible for local 
administration of the marketing order which regulates the handling of 
oranges and grapefruit grown in the Lower Rio Grande Valley in Texas. 
Authorization to assess orange and grapefruit handlers enables the 
Committee to incur expenses that are reasonable and necessary to 
administer the program.

EFFECTIVE DATE: August 1, 1996.

FOR FURTHER INFORMATION CONTACT: Belinda G. Garza, McAllen Marketing 
Field Office, Fruit and Vegetable Division, AMS, USDA, 1313 E. 
Hackberry, McAllen, TX 78501, telephone (210) 682-2833, FAX # (210) 
682-5942, or Charles L. Rush, Marketing Order Administration Branch, 
Fruit and Vegetable Division, AMS, USDA, P.O. Box 96456, room 2523-S, 
Washington, DC 20090-6456, telephone (202) 690-3670, FAX # (202) 720-
5698.
    Small businesses may request information on compliance with this 
regulation by contacting: Jay Guerber, Marketing Order Administration 
Branch, Fruit and Vegetable Division, AMS, USDA, P.O. Box 96456, room 
2523-S, Washington, DC 20090-6456; telephone (202) 720-2491; FAX # 
(202) 720-5698.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing 
Agreement and Order No. 906 (7 CFR part 906), regulating the handling 
of oranges and grapefruit grown in the Lower Rio Grande Valley in 
Texas, hereinafter referred to as the ``order.'' 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 12988, Civil 
Justice Reform. Under the marketing order now in effect, handlers of 
oranges and grapefruit grown in the Lower Rio Grande Valley in Texas 
are subject to assessments. Funds to administer the order are derived 
from such assessments. It is intended that the assessment rate as 
issued herein will be applicable to all assessable oranges and 
grapefruit beginning August 1, 1996, and continuing until amended, 
suspended, or terminated. 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 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 to review the 
Secretary's ruling on the petition, provided an action is filed not 
later than 20 days after the date of the entry of the ruling.
    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA), 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 2,000 producers of oranges and grapefruit 
in the production area and 19 handlers subject to regulation under the 
marketing order. Small agricultural producers have been defined by the 
Small Business Administration (13 CFR 121.601) as those having annual 
receipts 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 orange and grapefruit producers and handlers may be 
classified as small entities.
    The Texas orange and grapefruit marketing order provides authority 
for the Committee, with the approval of the Department, to formulate an 
annual budget of expenses and collect assessments from handlers to 
administer the program. The members of the Committee are producers and 
handlers of Texas oranges and grapefruit. They are familiar with the 
Committee's needs and with the costs for goods and services in their 
local area and are thus in a position to formulate an appropriate 
budget and assessment rate. The assessment rate is formulated and 
discussed in a public meeting. Thus, all directly affected persons have 
an opportunity to participate and provide input.
    The Committee met on May 29, 1996, and recommended 1996-97 
expenditures of $1,085,130 and an assessment rate of $0.125 per \7/10\ 
bushel carton of oranges and grapefruit. In comparison, last year's 
budgeted expenditures were $1,008,643. The assessment rate of $0.125 is 
$0.025 higher than last year's established rate. Major expenditures 
recommended by the Committee for the 1996-97 fiscal year include 
$712,800 for advertising and $174,000 for the Mexican Fruit Fly support 
program. Budgeted expenses for these items in 1995-96 were $500,000 for 
advertising and $174,000 for the Mexican Fruit Fly support program.
    The assessment rate recommended by the Committee was derived by 
dividing anticipated expenses by expected shipments of Texas oranges 
and grapefruit. Texas orange and grapefruit shipments for the year are 
estimated at 8 million cartons which should provide $1,000,000 in 
assessment income. Income derived from handler assessments, along with 
interest income

[[Page 49651]]

and funds from the Committee's authorized reserve, will be adequate to 
cover budgeted expenses. Funds in the reserve will be kept within the 
maximum permitted by the order.
    An interim final rule regarding this action was published in the 
July 22, 1996, issue of the Federal Register (61 FR 37810). That rule 
provided for a 30-day comment period. No comments were received.
    While this rule 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 by the operation of the 
marketing order. Therefore, the AMS has determined that this rule will 
not have a significant economic impact on a substantial number of small 
entities.
    The assessment rate established in this rule will continue in 
effect indefinitely unless modified, suspended, or terminated by the 
Secretary upon recommendation and information submitted by the 
Committee or other available information.
    Although this assessment rate is effective for an indefinite 
period, the Committee will continue to meet prior to or during each 
fiscal period to recommend a budget of expenses and consider 
recommendations for modification of the assessment rate. The dates and 
times of Committee meetings are available from the Committee or the 
Department. Committee meetings are open to the public and interested 
persons may express their views at these meetings. The Department will 
evaluate Committee recommendations and other available information to 
determine whether modification of the assessment rate is needed. The 
Committee's 1996-97 budget and those for subsequent fiscal periods will 
be reviewed and, as appropriate, approved by the Department.
    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 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 that good 
cause exists for not postponing the effective date of this rule 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 1996-97 fiscal period began on 
August 1, 1996, and the marketing order requires that the rate of 
assessment for each fiscal period apply to all assessable oranges and 
grapefruit handled during such fiscal period; (3) handlers are aware of 
this action which was recommended by the Committee at a public meeting 
and is similar to other assessment rate actions issued in past years; 
and (4) an interim final rule was published on this action, providing a 
30-day comment period, and no comments were received.

List of Subjects in 7 CFR Part 906

    Marketing agreements, Grapefruit, Oranges, Reporting and 
recordkeeping requirements.

PART 906--ORANGES AND GRAPEFRUIT GROWN IN THE LOWER RIO GRANDE 
VALLEY IN TEXAS

    Accordingly, the interim final rule amending 7 CFR part 906 which 
was published at 61 FR 37810 on July 22, 1996, is adopted as a final 
rule without change.

    Dated: September 17, 1996.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 96-24240 Filed 9-20-96; 8:45 am]
BILLING CODE 3410-02-P