[Federal Register Volume 62, Number 109 (Friday, June 6, 1997)]
[Rules and Regulations]
[Pages 30979-30980]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-14877]



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 Rules and Regulations
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  Federal Register / Vol. 62, No. 109 / Friday, June 6, 1997 / Rules 
and Regulations  

[[Page 30979]]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 979

[Docket No. FV97-979-1 FIR]


Melons Grown in South 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 South Texas Melon Committee 
(Committee) under Marketing Order No. 979 for the 1996-97 and 
subsequent fiscal periods. The Committee is responsible for local 
administration of the marketing order which regulates the handling of 
melons grown in South Texas. Authorization to assess Texas melon 
handlers enables the Committee to incur expenses that are reasonable 
and necessary to administer the program.

EFFECTIVE DATE: October 1, 1996.

FOR FURTHER INFORMATION CONTACT: Belinda G. Garza, Marketing 
Specialist, McAllen Marketing Field Office, Fruit and Vegetable 
Division, AMS, USDA, 1313 East Hackberry, McAllen, TX 78501, telephone 
210-682-2833, FAX 210-682-5942, 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. 156 and Order No. 979, both as amended (7 CFR part 979), 
regulating the handling of melons grown in South 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, South Texas 
melon handlers are subject to assessments. It is intended that the 
assessment rate as issued herein will be applicable to all assessable 
melons beginning October 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 32 producers of South Texas melons in the 
production area and approximately 24 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 South Texas melon producers and handlers 
may be classified as small entities.
    The melon 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 
South Texas melons. 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, in a telephone vote on September 25, 1996, 
unanimously recommended 1996-97 administrative expenses of $100,000 for 
personnel, office, and the travel portion of the compliance budget. 
These expenses were approved by the Department in October 1996. The 
assessment rate and funding for the research projects and the road 
guard station maintenance portion of the compliance budget were to be 
recommended at a later Committee meeting.
    The Committee subsequently met on December 17, 1996, and 
unanimously recommended 1996-97 expenditures of $308,000 and an 
assessment rate of $0.07 per carton of melons. In comparison, last 
year's budgeted expenditures were $395,159. The assessment rate of 
$0.07 is the same as last year's established rate. Major

[[Page 30980]]

expenditures recommended by the Committee for the 1996-97 fiscal period 
include $84,500 for personnel and administrative expenses, $115,500 for 
compliance, $64,000 for a melon disease management program, $33,125 for 
breeding and variety development, and $10,875 for melon variety 
evaluation. Budgeted expenses for these items in 1995-96 were $95,544, 
$139,500, $86,716, $32,674, and $10,875, respectively.
    The assessment rate recommended by the Committee was derived by 
dividing anticipated expenses by expected shipments of South Texas 
melons. Melon shipments for the year are estimated at 3,870,000 
cartons, which should provide $270,900 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 
February 20, 1997, issue of the Federal Register (62 FR 7659). That 
rule provided 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. 
Further rulemaking will be undertaken as necessary. 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 
October 1, 1996, and the marketing order requires that the rate of 
assessment for each fiscal period apply to all assessable melons 
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 979

    Marketing agreements, Melons, Reporting and recordkeeping 
requirements.

PART 979--MELONS GROWN IN SOUTH TEXAS

    Accordingly, the interim final rule amending 7 CFR part 979 which 
was published at 62 FR 7659 on February 20, 1997, is adopted as a final 
rule without change.

    Dated: June 2, 1997.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 97-14877 Filed 6-5-97; 8:45 am]
BILLING CODE 3410-02-P