[Federal Register Volume 65, Number 74 (Monday, April 17, 2000)]
[Proposed Rules]
[Pages 20382-20384]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-9451]


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 Proposed Rules
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
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  Federal Register / Vol. 65, No. 74 / Monday, April 17, 2000 / 
Proposed Rules  

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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 915

[Docket No. FV00-915-2 PR]


Avocados Grown in South Florida; Increased Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This rule would increase the assessment rate established for 
the Avocado Administrative Committee (Committee) for the 2000-2001 and 
subsequent fiscal periods from $0.16 per 55-pound bushel container or 
equivalent to $0.19 per 55-pound bushel container or equivalent of 
avocados handled. The Committee is responsible for local administration 
of the marketing order, which regulates the handling of avocados grown 
in South Florida. Authorization to assess avocado handlers enables the 
Committee to incur expenses that are reasonable and necessary to 
administer the program. The fiscal period began April 1 and ends March 
31. The assessment rate would remain in effect indefinitely unless 
modified, suspended, or terminated.

DATES: Comments must be received by May 17, 2000.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this rule. Comments must be sent to the Docket Clerk, 
Marketing Order Administration Branch, Fruit and Vegetable Programs, 
AMS, USDA, room 2525-S, P.O. Box 96456, Washington, DC 20090-6456; Fax: 
(202) 720-5698, or E-mail: [email protected]. Comments should 
reference the docket number and the date and page number of this issue 
of the Federal Register and will be available for public inspection in 
the Office of the Docket Clerk during regular business hours.

FOR FURTHER INFORMATION CONTACT: Doris Jamieson, Marketing Specialist, 
Southeast Marketing Field Office, Fruit and Vegetable Programs, AMS, 
USDA, P.O. Box 2276, Winter Haven, Florida 33883; telephone: (863) 299-
4770, Fax: (863) 299-5169; or George Kelhart, Technical Advisor, 
Marketing Order Administration Branch, Fruit and Vegetable Programs, 
AMS, USDA, room 2525-S, P.O. Box 96456, Washington, DC 20090-6456; 
telephone: (202) 720-2491, Fax: (202) 720-5698.
    Small businesses may request information on complying with this 
regulation by contacting Jay Guerber, Marketing Order Administration 
Branch, Fruit and Vegetable Programs, AMS, USDA, P.O. Box 96456, room 
2525-S, Washington, DC 20090-6456; telephone: (202) 720-2491, Fax: 
(202) 720-5698, or E-mail: [email protected].

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing 
Agreement No. 121 and Order No. 915, both as amended (7 CFR part 915), 
regulating the handling of avocados grown in South 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 of Agriculture (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 
avocado handlers are subject to assessments. Funds to administer the 
order are derived from such assessments. It is intended that the 
assessment rate as proposed herein would be applicable to all 
assessable avocados beginning on April 1, 2000, and continue 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.
    This rule would increase the assessment rate established for the 
Committee for the 2000-2001 and subsequent fiscal periods from $0.16 
per 55-pound bushel container or equivalent to $0.19 per 55-pound 
bushel container or equivalent of avocados.
    The Florida avocado 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 
Florida avocados. 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.
    For the 1999-2000 and subsequent fiscal periods, the Committee 
recommended, and the Department approved, an assessment rate that would 
continue in effect from fiscal period to fiscal period unless modified, 
suspended, or terminated by the Secretary upon recommendation and 
information submitted by the Committee or other information available 
to the Secretary.
    The Committee met on March 8, 2000, and unanimously recommended 
2000-2001 expenditures of $186,333 and an assessment rate of $0.19 per 
55-pound bushel container or equivalent of avocados. In comparison, 
last year's budgeted expenditures were $164,335. The assessment rate of 
$0.19 is $0.03 higher than the rate currently in effect.
    The Florida Lime and the Florida Avocado Administrative Committees 
share certain costs (staff, office space, and equipment) for economy 
and

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efficiency (7 CFR part 911 and 915). Each Committee's share of these 
costs is based upon the amount of work performed and time devoted to 
administration. To reflect its increased share of the workload and 
resources, the Avocado Administrative Committee needs to fund a greater 
share of the costs. An increased budget for avocados is needed to 
accomplish this.
    The major expenditures recommended by the Committee for the 2000-
2001 year include $69,000 for salaries, $35,000 for national 
enforcement, $20,000 for research, $14,898 for employee benefits, and 
$13,782 for insurance and bonds. Budgeted expenses for these items in 
1999-2000 were $46,000, $27,000, $39,500, $10,040, and $8,955, 
respectively.
    The assessment rate recommended by the Committee was derived by 
dividing anticipated expenses by expected shipments of Florida 
avocados. Commodity shipments for the year are estimated at 900,000 55-
pound bushel containers, which should provide $171,000 in assessment 
income. Income derived from handler assessments, along with interest 
income and funds from the Committee's authorized reserve, would be 
adequate to cover budgeted expenses. Funds in the reserve (currently 
$174,431) would be kept within the maximum permitted by the order 
(approximately three fiscal periods' expenses, section 915.42(a)(2)).
    The proposed assessment rate would 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 would be in effect for an indefinite 
period, the Committee would 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 would 
evaluate Committee recommendations and other available information to 
determine whether modification of the assessment rate is needed. 
Further rulemaking would be undertaken as necessary. The Committee's 
2000-2001 budget and those for subsequent fiscal periods would be 
reviewed and, as appropriate, approved by the Department.
    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. Accordingly, AMS has 
prepared this initial regulatory flexibility analysis.
    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 141 avocado producers in the production 
area and approximately 49 avocado handlers subject to regulation under 
the marketing order. Small agricultural producers have been defined by 
the Small Business Administration (SBA) (13 CFR 121.201) as those 
having annual receipts less than $500,000, and small agricultural 
service firms are defined as those having annual receipts less than 
$500,000,000.
    The average grower price for fresh avocados during the 1998-99 
season was $17.90 per 55-pound bushel box equivalent for all domestic 
shipments and the total shipments were 890,859 bushels. Approximately 
10 percent of all handlers handled 90 percent of the Florida avocado 
shipments. Many avocado handlers ship other tropical fruit and 
vegetable products, which are not included in the Committee's data but 
would contribute further to handler receipts.
    Using these prices, about 90 percent of avocado handlers could be 
considered small businesses under the SBA definition. The majority of 
Florida avocado producers also may be classified as small entities.
    This rule would increase the assessment rate established for the 
Committee and collected from handlers for the 2000-2001 and subsequent 
fiscal periods from $0.16 per 55-pound bushel container or equivalent 
to $0.19 per 55-pound bushel container or equivalent of avocados. The 
Committee unanimously recommended 2000-2001 expenditures of $186,333 
and an assessment rate of $0.19 per 55-pound bushel container or 
equivalent. The proposed assessment rate of $0.19 is $0.03 higher than 
the 1999-2000 rate. The quantity of assessable avocados for the 2000-
2001 season is estimated at 900,000 55-pound bushel containers. Thus, 
the $0.19 rate should provide $171,000 in assessment income. Income 
derived from handler assessments, along with interest income and funds 
from the Committee?s authorized reserve, would be adequate to cover 
budgeted expenses.
    The major expenditures recommended by the Committee for the 2000-
2001 fiscal year include $69,000 for salaries, $35,000 for national 
enforcement, $20,000 for research, $14,898 for employee benefits, and 
$13,782 for insurance and bonds. Budgeted expenses for these items in 
1999-2000 were $46,000, $27,000, $39,500, $10,040, and $8,955, 
respectively.
    The Florida Lime and the Florida Avocado Administrative Committees 
share certain costs (staff, office space, and equipment) for economy 
and efficiency (7 CFR part 911 and 915). Each Committee's share of 
these costs is based upon the amount of work performed and time devoted 
to administration. To reflect its increased share of the workload and 
resources, the Avocado Administrative Committee needs to fund a greater 
share of the costs. An increased budget for avocados is needed to 
accomplish this.
    The Committee reviewed and unanimously recommended 2000-2001 
expenditures of $186,333, which include increases in administrative and 
office salaries, and local and national enforcement. Prior to arriving 
at this budget, the Committee considered information from various 
sources, such as the Committee's Budget Subcommittee. Alternative 
expenditure levels were discussed. However, the Committee ultimately 
determined that the recommended expenditures were appropriate to 
reflect its increased share of the workload and resource demands. The 
assessment rate of $0.19 per 55-pound bushel container or equivalent of 
assessable avocados was then determined by dividing the total 
recommended budget by the quantity of assessable avocados, estimated at 
900,000 55-pound bushel containers or equivalents for the 2000-2001 
fiscal year. This is approximately $11,000 below the anticipated 
expenses, which the Committee determined to be acceptable.
    A review of historical information and preliminary information 
pertaining to the upcoming fiscal year indicates that the average 
grower price for the 2000-2001 season could be close to $17.90 per 55-
pound bushel container or equivalent of avocados. Therefore, the 
estimated assessment revenue for the 2000-2001 fiscal year as a 
percentage of total grower revenue could be one percent.
    This action would increase the assessment obligation imposed on

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handlers. While assessments impose some additional costs on handlers, 
the costs are minimal and uniform on all handlers. Some of the 
additional costs may be passed on to producers. However, these costs 
would be offset by the benefits derived by the operation of the 
marketing order. In addition, the Committee's meeting was widely 
publicized throughout the Florida avocado industry and all interested 
persons were invited to attend the meeting and participate in Committee 
deliberations on all issues. Like all Committee meetings, the March 8, 
2000, meeting was a public meeting and all entities, both large and 
small, were able to express views on this issue. Finally, interested 
persons are invited to submit information on the regulatory and 
informational impacts of this action on small businesses.
    This proposed rule would impose no additional reporting or 
recordkeeping requirements on either small or large Florida avocado 
handlers. As with all Federal marketing order programs, reports and 
forms are periodically reviewed to reduce information requirements and 
duplication by industry and public sector agencies.
    The Department has not identified any relevant Federal rules that 
duplicate, overlap, or conflict with this rule.
    A small business guide on complying with fruit, vegetable, and 
specialty crop marketing agreements and orders may be viewed at the 
following web site: http://www.ams.usda.gov/fv/moab.html. Any questions 
about the compliance guide should be sent to Jay Guerber at the 
previously mentioned address in the FOR FURTHER INFORMATION CONTACT 
section.
    A 30-day comment period is provided to allow interested persons to 
respond to this proposed rule. Thirty days is deemed appropriate 
because: (1) The 2000-2001 fiscal period began on April 1, 2000, and 
the marketing order requires that the rate of assessment for each 
fiscal period apply to all assessable avocados handled during such 
fiscal period; (2) the Committee needs to have sufficient funds to pay 
its expenses which are incurred on a continuous basis; and (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.

List of Subjects in 7 CFR Part 915

    Avocados, Marketing agreements, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 915 is 
proposed to be amended as follows:

PART 915--AVOCADOS GROWN IN SOUTH FLORIDA

    1. The authority citation for 7 CFR part 915 continues to read as 
follows:

    Authority: 7 U.S.C. 601-674.

    2. Section 915.235 is revised to read as follows:


Sec. 915.235  Assessment rate.

    On and after April 1, 2000, an assessment rate of $0.19 per 55-
pound bushel container or equivalent is established for avocados grown 
in South Florida.

    Dated: April 11, 2000.
James R. Frazier,
Acting Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 00-9451 Filed 4-14-00; 8:45 am]
BILLING CODE 3410-02-P