[Federal Register Volume 65, Number 130 (Thursday, July 6, 2000)]
[Proposed Rules]
[Pages 41608-41610]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-16991]


 ========================================================================
 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. 130 / Thursday, July 6, 2000 / 
Proposed Rules  

[[Page 41608]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 905

[Docket No. FV00-905-1 PR]


Oranges, Grapefruit, Tangerines and Tangelos Grown in 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 Citrus Administrative Committee (Committee) for the 2000-2001 and 
subsequent fiscal periods from $0.00385 to $0.0055 per 4/5-bushel 
carton of citrus handled. The Committee locally administers the 
marketing order which regulates the handling of oranges, grapefruit, 
tangerines, and tangelos grown in Florida. Authorization to assess 
citrus handlers enables the Committee to incur expenses that are 
reasonable and necessary to administer the program. The fiscal period 
begins on August 1 and ends July 31. The assessment rate would remain 
in effect indefinitely unless modified, suspended, or terminated.

DATES: Comments must be received by August 7, 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, or can be 
viewed at: http://www.ams.usda.gov/fv/moab.html.

FOR FURTHER INFORMATION CONTACT: William Pimental, Marketing 
Specialist, Southeast Marketing Field Office, Fruit and Vegetable 
Programs, AMS, USDA, P.O. Box 2276, Winter Haven, FL 33883-2276; 
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. 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 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 citrus 
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 oranges, 
grapefruit, tangerines, and tangelos beginning on August 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 $0.00385 
to $0.0055 per 4/5-bushel carton or equivalent of citrus.
    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 
Florida citrus. 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 1998-99 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 May 26, 2000, and unanimously recommended 
2000-2001 expenditures of $255,500 and an assessment rate of $0.0055 
per 4/5-bushel carton or equivalent of citrus. In comparison, last 
year's budgeted expenditures were $245,425. The assessment rate of 
$0.0055 is $0.00165 higher than the rate currently in effect. The 
quantity of assessable oranges, grapefruit, tangerines, and tangelos 
for

[[Page 41609]]

the 2000-2001 fiscal period is expected to be 55,000,000 4/5 bushel 
cartons. The Committee projected 60,500,000 assessable 4/5-bushel 
cartons of citrus for the 1999-2000 fiscal period. The actual quantity 
of assessable citrus for 1999-2000 is expected to be 53,500,000 4/5-
bushel cartons. Because of this shortfall, the Committee has had to use 
money from its authorized reserve fund to cover approved expenses. The 
increase in assessment rate for 2000-2001 is needed to bring the 
reserve fund to an acceptable level, and to cover increases in the 
Committee's budgeted expenditures for the 2000-2001 fiscal period.
    The major expenditures recommended by the Committee for the 2000-
2001 fiscal period include $118,300 for salaries, $36,000 for Manifest 
Department-FDACS, $19,900 for insurance and bonds, $18,500 for 
retirement plan, $12,450 for miscellaneous and reserve, and $10,000 for 
telephone. Budgeted expenses for these items in 1999-2000 were 
$118,300, $14,000, $19,900, $12,600, $9,075, and $9,000, respectively.
    The assessment rate recommended by the Committee was derived by 
dividing anticipated expenses by expected shipments of Florida citrus. 
With citrus shipments for the year estimated at 55 million cartons, 
assessment income should total $302,500. 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 (approximately $111,371) would be kept within the 
maximum permitted by the order (one-half of one fiscal period's 
expenses; Sec. 905.42).
    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 11,000 producers of oranges, grapefruit, 
tangerines, and tangelos in the production area and approximately 80 
handlers subject to regulation under the marketing order. Small 
agricultural producers are defined by the Small Business Administration 
(13 CFR 121.201) 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.
    Based on the Florida Agricultural Statistical Service and Committee 
data for the 1998-99 season, the average annual f.o.b. price for fresh 
Florida citrus during the 1998-99 season was $8.66 per 4/5-bushel 
carton for all shipments, and the total shipments for the 1998-99 
season were 63.6 million cartons of citrus. Approximately 68 percent of 
the handlers handled 93 percent of Florida citrus shipments. Using 
information provided by the Committee, about 60 percent of citrus 
handlers could be considered small businesses under the SBA definition. 
Although specific data is unavailable, the Department believes that the 
majority of Florida citrus producers 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 $0.00385 to $0.0055 per   4/5-bushel carton of 
citrus. The Committee unanimously recommended 2000-2001 expenditures of 
$255,500 and an assessment rate of $0.0055 per   4/5-bushel carton. The 
proposed assessment rate of $0.0055 is $0.00165 higher than the current 
rate. The quantity of assessable citrus for the 2000-2001 fiscal period 
is estimated at 55 million 4/5-bushel cartons. Thus, the $0.0055 rate 
should provide $302,500 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. Assessment funds in excess of those needed for approved 
expenses would be used to increase the Committee's operating reserve.
    The major expenditures recommended by the Committee for the 2000-
2001 fiscal period include $118,300 for salaries, $36,000 for Manifest 
Department--FDACS, $19,900 for insurance and bonds, $18,500 for 
retirement plan, $12,450 for miscellaneous and reserve, and $10,000 for 
telephone. Budgeted expenses for these items in 1999-2000 were 
$118,300, $14,000, $19,900, $12,600, $9,075, and $9,000, respectively.
    The quantity of assessable oranges, grapefruit, tangerines, and 
tangelos for the 2000-2001 fiscal period is expected to be much less 
than in previous seasons. The Committee projected 60,500,000 assessable 
4/5-bushel cartons of citrus for the 1999-2000 fiscal period. The 
actual quantity of assessable citrus for 1999-2000 is expected to be 
53,500,000 4/5-bushel cartons. Because of this shortfall, the Committee 
has had to use money from its authorized reserve fund to cover approved 
expenses. In an effort to recover from assessment income shortfalls in 
1997-98 and 1999-2000, and to bring the reserve fund to an acceptable 
level, the Committee voted unanimously to increase its assessment rate.
    The Committee reviewed and unanimously recommended 2000-2001 
expenditures of $255,500 that included increases in administrative 
costs. Prior to arriving at this budget, the Committee considered 
information from various sources, such as the Budget Subcommittee, the 
Grapefruit Subcommittee, and the Regulatory Subcommittee. Alternative 
expenditure levels were discussed by these groups, based upon the 
estimated number of assessable cartons of citrus. The assessment rate 
of $0.0055 per 4/5-bushel carton of assessable citrus was recommended 
to provide enough income to cover the Committee's estimated expenses 
for 2000-2001 and to increase its operating reserve. This rate is 
expected to generate $302,500. This is $47,000 above the anticipated 
expenses, which the Committee determined to be acceptable.
    A review of historical information and preliminary information 
pertaining to

[[Page 41610]]

the upcoming fiscal period indicates that the grower price for the 
2000-2001 fiscal period could range between $4.10 and $19.65 per 4/5-
bushel carton of oranges, grapefruit, tangerines, and tangelos. 
Therefore, the estimated assessment revenue for the 2000-2001 fiscal 
period as a percentage of total grower revenue could range between .03 
and .13 percent.
    This action would increase the assessment obligation imposed on 
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 citrus production area and all interested 
persons were invited to attend the meeting and participate in Committee 
deliberations on all issues. Like all Committee meetings, the May 26, 
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 citrus 
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: 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 begins on August 1, 2000, and 
the marketing order requires that the rate of assessment for each 
fiscal period apply to all assessable citrus 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 905

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

    For the reasons set forth in the preamble, 7 CFR part 905 is 
proposed to be amended as follows:

PART 905--ORANGES, GRAPEFRUIT, TANGERINES, AND TANGELOS GROWN IN 
FLORIDA

    1. The authority citation for 7 CFR part 905 continues to read as 
follows:

    Authority: 7 U.S.C. 601-674.
    2. Section 905.235 is revised to read as follows:


Sec. 905.235   Assessment rate.

    On and after August 1, 2000, an assessment rate of $0.0055 per 4/5-
bushel carton or equivalent is established for assessable Florida 
citrus covered under the order.

    Dated: June 27, 2000.
Robert C. Keeney,
Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 00-16991 Filed 7-5-00; 8:45 am]
BILLING CODE 3410-02-P