[Federal Register Volume 62, Number 31 (Friday, February 14, 1997)]
[Rules and Regulations]
[Pages 6851-6852]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-3793]



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Rules and Regulations
                                                Federal Register
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Federal Register / Vol. 62, No. 31 / Friday, February 14, 1997 / 
Rules and Regulations

[[Page 6851]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 966

[Docket No. FV96-966-1 FIR]


Tomatoes 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 Florida Tomato Committee 
(Committee) under Marketing Order No. 966 for the 1996-97 and 
subsequent fiscal periods. The Committee is responsible for local 
administration of the marketing order which regulates the handling of 
tomatoes grown in Florida. Authorization to assess Florida tomato 
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, Marketing Assistant, 
Southeast Marketing Field Office, Fruit and Vegetable Division, AMS, 
USDA, P.O. Box 2276, Winter Haven, FL 33883-2276, telephone 941-299-
4770; FAX 941-299-5169, or Martha Sue Clark, Program Assistant, 
Marketing Order Administration Branch, Fruit and Vegetable Division, 
AMS, USDA, P.O. Box 96456, room 2525-S, Washington, DC 20090-6456, 
telephone 202-720-9918, 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 2525-S, Washington, DC 20090-
6456; telephone 202-720-2491; FAX 202-720-5698.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing 
Agreement No. 125 and Order No. 966, both as amended (7 CFR part 966), 
regulating the handling of tomatoes 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 tomato 
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 Florida tomatoes 
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 90 producers of Florida tomatoes in the 
production area and approximately 75 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 Florida tomato producers and handlers may 
be classified as small entities.
    The Florida tomato 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 of Florida 
tomatoes. 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 September 5, 1996, and unanimously recommended 
1996-97 expenditures of $1,189,000 and an assessment rate of $0.03 per 
25-pound container of tomatoes. In comparison, last year's budgeted 
expenditures were $2,025,000. The assessment rate of $0.03 is $0.01 
less than last year's established rate. Major expenditures recommended 
by the Committee for the 1996-97 fiscal period compared to those 
budgeted for 1995-96 (in parentheses) include: $500,000 for education 
and promotion ($1,225,000), $5,000 for miscellaneous promotion 
($5,000), $284,650 for office salaries ($319,100), $180,000 for 
research ($245,000), $45,500 for employees' retirement program 
($50,500), $30,000 for employees' travel ($30,000), $24,500

[[Page 6852]]

for office rent ($24,500), $22,150 for payroll taxes ($22,150), $20,000 
for employees' health insurance ($29,500), $19,150 for depreciation on 
the office furniture and automobiles ($19,000), $14,000 for 
communications ($12,000), $12,000 for Committee member travel 
($12,000), $9,000 for supplies and printing ($8,500), $8,000 for 
insurance and bonds ($8,000), and $7,000 for postage ($7,000).
    The assessment rate recommended by the Committee was derived by 
dividing anticipated expenses by expected shipments of Florida 
tomatoes. Tomato shipments for the year are estimated at 40,000,000 25-
pound containers which should provide $1,200,000 in assessment income, 
which will be adequate to cover projected expenses.
    An interim final rule regarding this action was published in the 
November 29, 1996, issue of the Federal Register (61 FR 60510). That 
rule provided for a 30-day comment period. No comments were received.
    This action will reduce the assessment obligation imposed on 
handlers. 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 from 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 tomatoes 
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 966

    Marketing agreements, Reporting and recordkeeping requirements, 
Tomatoes.

    For the reasons set forth in the preamble, 7 CFR part 966 is 
amended as follows:

    Note: This action will appear in the Code of Federal 
Regulations.

PART 966--TOMATOES GROWN IN FLORIDA

    Accordingly, the interim final rule amending 7 CFR part 966 which 
was published at 61 FR 60510 on November 29, 1996, is adopted as a 
final rule without change.

    Dated: February 10, 1997.
Robert C. Keeney
Director, Fruit and Vegetable Division.
[FR Doc. 97-3793 Filed 2-13-97; 8:45 am]
BILLING CODE 3410-02-P