[Federal Register Volume 61, Number 189 (Friday, September 27, 1996)]
[Rules and Regulations]
[Pages 50691-50693]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-24846]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 905

[Docket No. FV96-905-1 FIR]


Oranges, Grapefruit, Tangerines, and Tangelos Grown in Florida; 
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 Citrus Administrative Committee 
(Committee) under Marketing Order No. 905 for the 1996-97 and 
subsequent fiscal periods. The Committee is responsible for local 
administration of the marketing order which regulates the handling of 
citrus grown in Florida. Authorization to assess citrus 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: Doris Jamieson, Southeast Marketing 
Field Office, Fruit and Vegetable Division, AMS, USDA, P.O. Box 2276, 
Winter Haven, FL 33883-2276, telephone (941) 299-4770 and FAX (941) 
299-5169, or Tershirra Yeager, Marketing Order Administration Branch, 
Fruit and Vegetable Division, AMS, USDA, P.O. Box 96456, room 2523-S, 
Washington, DC 20090-6456, telephone (202) 720-8139, 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,

[[Page 50692]]

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 No. 84 and Order No. 905, both as amended (7 CFR part 905), 
regulating the handling of Oranges, Grapefruit, Tangerines, and 
Tangelos grown in Florida, 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, Florida citrus 
handlers 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 citrus 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 11,000 producers of citrus in the 
production area and approximately 100 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 citrus producers and handlers may be 
classified as small entities.
    The Florida citrus 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 
Oranges, Grapefruit, Tangerines, and Tangelos Grown in Florida. 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 24, 1996, and unanimously recommended 
1996-97 expenditures of $230,000 and an assessment rate of $0.0035 per 
\4/5\ bushel carton of citrus. In comparison, last year's budgeted 
expenditures were $215,000. The assessment rate of $0.0035 is $0.00025 
higher than last year's established rate. Major expenditures 
recommended by the Committee for the 1996-97 year include $102,760 for 
salaries, $36,000 for the Manifest Department-FDACS, and $13,500 for 
insurance and bonds. Budgeted expenses for these items in 1995-96 were 
$101,740 for salaries, $36,000 for the Manifest Department-FDACS, and 
$13,350 for insurance and bonds.
    The assessment rate recommended by the Committee was derived by 
dividing anticipated expenses by expected shipments of Florida citrus. 
Citrus shipments for the year are estimated at 64,500,000 cartons which 
should provide $225,750 in assessment income. Income derived from 
handler assessments, along with interest income 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 24, 1996, issue of the Federal Register (61 FR 38355). 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

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assessment for each fiscal period apply to all assessable citrus 
handled during such fiscal period; (3) handlers are aware of this 
action which was unanimously 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 and 
provided for a 30-day comment period, no comments were received.

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 amending 7 CFR part 905 which 
was published at 61 FR 38354 on July 24, 1996, is adopted as a final 
rule without change.

    Dated: September 23, 1996.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 96-24846 Filed 9-26-96; 8:45 am]
BILLING CODE 3410-02-P