[Federal Register Volume 66, Number 218 (Friday, November 9, 2001)]
[Rules and Regulations]
[Pages 56595-56597]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-28201]



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  Federal Register / Vol. 66, No. 218 / Friday, November 9, 2001 / 
Rules and Regulations  

[[Page 56595]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 905

[Docket No. FV01-905-3 IFR]


Oranges, Grapefruit, Tangerines and Tangelos Grown in Florida; 
Decreased Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: This rule decreases the assessment rate established for the 
Citrus Administrative Committee (Committee) for the 2001-02 and 
subsequent fiscal periods from $0.0055 to $0.005 per \4/5\ bushel 
carton of Florida 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 
Florida citrus handlers enables the Committee to incur expenses that 
are reasonable and necessary to administer the program. The fiscal 
period begins August 1 and ends July 31. The assessment rate would 
remain in effect indefinitely unless modified, suspended, or 
terminated.

DATES: Effective: November 13, 2001. Comments received by January 8, 
2002, will be considered prior to issuance of a final rule.

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) 720-8938, 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, Marketing Order 
Administration Branch, 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) 720-8938.
    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) 720-8938, 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 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 (USDA) 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 would be applicable to all assessable Florida citrus 
beginning on August 1, 2001, 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 USDA 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 USDA 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 USDA 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 decreases the assessment rate established for the 
Committee for the 2001-02 and subsequent fiscal periods from $0.0055 to 
$0.005 per 4/5-bushel carton or equivalent of citrus.
    The Florida citrus marketing order provides authority for the 
Committee, with the approval of USDA, 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 2000-01 and subsequent fiscal periods, the Committee 
recommended, and USDA approved, an assessment rate that would continue 
in effect from fiscal period to fiscal period unless modified, 
suspended, or terminated by the USDA upon recommendation and 
information submitted by the Committee or other information available 
to the USDA.
    The Committee met on August 29, 2001, and unanimously recommended 
2001-02 expenditures of $280,000 and an assessment rate of $0.005 per 
4/5-bushel carton of Florida citrus. In comparison, last year's 
budgeted expenditures were $255,500. The

[[Page 56596]]

assessment rate of $0.005 is $0.0005 lower than the rate currently in 
effect. Last fiscal year, Committee revenues exceeded expenses by 
$38,500. Committee members agreed that the excess revenues should be 
used to reduce the assessment rate. The $38,500 was added to the 
anticipated assessment revenue along with interest income for a revenue 
total of $280,000 for the 2001-02 fiscal period.
    The major expenditures recommended by the Committee for the 2001-
2002 fiscal period include $121,300 for salaries, $25,000 for Manifest 
USDA-FDACS, $21,000 for insurance and bonds, $18,750 for retirement 
plan, $44,550 for miscellaneous and reserve, and $10,000 for telephone. 
Other expenses for 2001-02 total $39,400. Budgeted expenses for these 
items in 2000-01 were $118,300, $36,000, $19,900, $18,500, $12,450, and 
$10,000, respectively.
    The assessment rate recommended by the Committee was derived by 
dividing anticipated expenses by expected shipments of fresh Florida 
citrus. With Florida citrus shipments for the year are estimated at 
48,000,000 cartons, assessment income should total $240,000. 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 (currently $90,334) will be 
kept within the maximum permitted by the order (one half of one fiscal 
periods' expenses; Sec. 905.42).
    The assessment rate established in this rule will continue in 
effect indefinitely unless modified, suspended, or terminated by USDA 
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 
USDA. Committee meetings are open to the public and interested persons 
may express their views at these meetings. The USDA 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 2001-02 
budget and those for subsequent fiscal periods would be reviewed and, 
as appropriate, approved by USDA.

Initial Regulatory Flexibility Analysis

    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 Florida citrus 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 $750,000, and small agricultural service 
firms are defined as those whose annual receipts are less than 
$5,000,000.
    Based on industry and Committee data, the average annual f.o.b. 
price for fresh Florida citrus during the 2000-01 season was 
approximately $7.92 per \4/5\ bushel carton for all shipments, and the 
total fresh shipments for the 2000-01 season are estimated at 53.8 
million \4/5\ bushel cartons of Florida 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, USDA believes that the majority 
of Florida citrus producers may be classified as small entities.
    This rule decreases the assessment rate established for the 
Committee and collected from handlers for the 2001-02 and subsequent 
fiscal periods from $0.0055 to $0.005 per \4/5\-bushel carton of 
Florida citrus. The Committee unanimously recommended 2001-02 
expenditures of $280,000 and an assessment rate of $0.005 per \4/5\-
bushel carton. The assessment rate of $0.005 is $0.0005 lower than the 
2000-01 rate. The quantity of assessable Florida citrus for the 2001-02 
fiscal period is estimated at 48 million \4/5\-bushel cartons. Thus, 
the $0.005 rate should provide $240,000 in assessment income. 
Assessments, along with interest income and funds from the Committee's 
authorized reserve, will be adequate to cover this year's expenses.
    The major expenditures recommended by the Committee for the 2001-
2002 fiscal period include $121,300 for salaries, $25,000 for Manifest 
Department--FDACS, $21,000 for insurance and bonds, $18,750 for 
retirement plan, $44,550 for miscellaneous and reserve, and $10,000 for 
telephone. Budgeted expenses for these items in 2000-01 were $118,300, 
$36,000, $19,900, $18,500, $12,450, and $10,000, respectively.
    Last fiscal year, Committee revenues exceeded expenses by $38,500. 
Committee members agreed that the excess revenues should be used to 
reduce the assessment rate. The $38,500 was added to the anticipated 
assessment revenue along with interest income for a revenue total of 
$280,000 for the 2001-02 fiscal period.
    The Committee reviewed and unanimously recommended 2001-02 
expenditures of $280,000, which includes increases in some 
administrative costs. Prior to arriving at this budget, the Committee 
considered information from various sources, such as the Committee's 
Budget Subcommittee, the Grapefruit Subcommittee, and the Regulatory 
Subcommittee. Alternative expenditure levels were discussed by these 
groups, based upon previous seasons and the general condition of the 
Florida citrus industry. The assessment rate of $0.005 per \4/5\ bushel 
carton of assessable citrus was then determined by dividing the total 
recommended budget by the quantity of assessable commodity, estimated 
at 48,000,000 \4/5\ bushel cartons for the 2001-2002 fiscal period. 
This rate is expected to generate $240,000. This is $40,000 below the 
anticipated expenses, which the Board determined to be acceptable.
    A review of historical information and preliminary information 
pertaining to the upcoming fiscal period indicates that the average 
grower price for the 2001-02 season could range between $4.60 and 
$10.70 per \4/5\ bushel of oranges, grapefruit, tangerines, and 
tangelos. Therefore, the estimated assessment revenue for the 2001-02 
fiscal period as a percentage of total grower revenue could range 
between .04 and .1 percent.
    This action decreases the assessment obligation imposed on 
handlers. Assessments are applied uniformly on all handlers, and some 
of the costs may be passed on to producers. However, decreasing the 
assessment rate reduces the burden on handlers, which may reduce the 
burden on producers. In addition, the Committee's meeting was

[[Page 56597]]

widely publicized throughout the Florida citrus industry and all 
interested persons were invited to attend the meeting and participate 
in Committee deliberations on all issues. Like all Committee meetings, 
the August 29, 2001 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 action imposes 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 USDA 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.
    After consideration of all relevant material presented, including 
the information and recommendation submitted by the Committee and other 
available information, it hereby found that this rule, as hereinafter 
set forth, tends to effectuate the declared policy of the act.
    Pursuant to 5 U.S.C. 553, it is also found and determined upon good 
cause that it is impracticable, unnecessary, and contrary to the public 
interest to give preliminary notice prior to putting this rule into 
effect, and that good cause exists for not postponing the effective 
date of this rule until 30 days after publication in the Federal 
Register: (1) The 2001-02 fiscal period began on August 1, 2001, and 
the marketing order requires that the rate of assessment for each 
fiscal period apply to all assessable Florida citrus handled during 
such fiscal period; (2) the action decreases the assessment rate for 
assessable Florida citrus beginning with the 2001-02 fiscal period; and 
(3) producers and 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) 
this interim final rule provides a 60-day comment period, and all 
comments timely received will be considered prior to finalization of 
this rule.

List of Subjects in 7 CFR Part 905

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


    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

    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, 2001, an assessment rate of $0.005 per 4/5-
bushel carton or equivalent is established for assessable Florida 
citrus covered under the order.

    Dated: November 5, 2001.
A.J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 01-28201 Filed 11-8-01; 8:45 am]
BILLING CODE 3410-02-P