[Federal Register Volume 78, Number 10 (Tuesday, January 15, 2013)]
[Proposed Rules]
[Pages 2908-2910]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-00599]


 ========================================================================
 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. 78, No. 10 / Tuesday, January 15, 2013 / 
Proposed Rules  

[[Page 2908]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 905

[Doc. No. AMS-FV-12-0045; FV12-905-1 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 proposed rule would increase the assessment rate 
established for the Citrus Administrative Committee (Committee) for the 
2012-13 and subsequent fiscal periods from $0.0072 to $0.008 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. Assessments upon citrus 
handlers are used by the Committee to fund reasonable and necessary 
expenses of 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: Comments must be received by January 25, 2013.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposed rule. Comments must be sent to the Docket 
Clerk, Marketing Order and Agreement Division, Fruit and Vegetable 
Program, AMS, USDA, 1400 Independence Avenue SW., STOP 0237, 
Washington, DC 20250-0237; Fax: (202) 720-8938; or Internet: http://www.regulations.gov. Comments should reference the document 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.regulations.gov. All comments submitted in response to this 
proposed rule will be included in the record and will be made available 
to the public. Please be advised that the identity of the individuals 
or entities submitting the comments will be made public on the Internet 
at the address provided above.

FOR FURTHER INFORMATION CONTACT: Corey E. Elliott, Marketing 
Specialist, or Christian D. Nissen, Regional Director, Southeast 
Marketing Field Office, Marketing Order and Agreement Division, Fruit 
and Vegetable Program, AMS, USDA; Telephone: (863) 324-3375, Fax: (863) 
325-8793, or Email: [email protected] or 
[email protected].
    Small businesses may request information on complying with this 
proposed regulation by contacting Laurel May, Marketing Order and 
Agreement Division, Fruit and Vegetable Program, AMS, USDA, 1400 
Independence Avenue SW., STOP 0237, Washington, DC 20250-0237; 
Telephone: (202) 720-2491, Fax: (202)720-8938, or Email: 
[email protected].

SUPPLEMENTARY INFORMATION: This rulemaking is issued under Marketing 
Order No. 905, amended (7 CFR part 905), regulating the handling of 
oranges, grapefruit, tangerines, and tangelos grown in Florida, 
hereinafter referred to as the ``order.'' The order is 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 proposed rule 
in conformance with Executive Order 12866.
    This rulemaking 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 citrus beginning on August 1, 2012, and continue until 
amended, suspended, or terminated.
    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, 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'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 proposed rule would increase the assessment rate established 
for the Committee for the 2012-13 and subsequent fiscal periods from 
$0.0072 to $0.008 per \4/5\ bushel carton 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 2007-08 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 USDA upon recommendation and information 
submitted by the Committee or other information available to USDA.
    The Committee met on July 17, 2012, and unanimously recommended 
2012-13 expenditures of $223,500 and an assessment rate of $0.008 per 
\4/5\ bushel carton of citrus. In comparison, last year's budgeted 
expenditures were also $223,500. The assessment rate of $0.008 is 
$0.0008 higher than the rate currently in effect.
    The Committee estimates 2012-2013 production to be approximately 
27.3 million \4/5\ bushel cartons, down from the 29.5 million \4/5\ 
bushel cartons estimated for last year. At the current

[[Page 2909]]

assessment rate, assessment income would equal only $196,560, an amount 
insufficient to cover the Committee's anticipated expenditures. The 
assessment rate increase would generate additional revenue and would 
help offset the amount of reserves needed to fund the budget. 
Therefore, the Committee recommended increasing the assessment rate.
    The major expenditures recommended by the Committee for the 2012-13 
year include $116,200 for salaries, $25,000 for Florida Department of 
Agriculture and Consumer Services (FDACS) manifesting, and $18,250 for 
a retirement plan. Budgeted expenses for these items in 2011-12 were 
the same as recommended for 2012-13 budgeted expenditures, 
respectively.
    The assessment rate recommended by the Committee was derived by 
reviewing anticipated expenses, expected shipments of Florida citrus, 
interest income, and available reserves. Citrus shipments for the year 
are estimated at 27.3 million \4/5\ bushel cartons which should provide 
$218,400 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 (approximately $34,000) would be kept within the maximum 
permitted by the order of not to exceed one half of one fiscal period's 
expenses as stated in Sec.  905.42.
    The proposed assessment rate would 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 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 USDA. 
Committee meetings are open to the public and interested persons may 
express their views at these meetings. 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 2012-13 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) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS) 
has considered the economic impact of this rulemaking 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.
    There are approximately 45 handlers subject to regulation under the 
marketing order and approximately 8,000 producers of citrus in the 
production area. Small agricultural service firms are defined by the 
Small Business Administration (SBA) as those whose annual receipts are 
less than $7,000,000, and small agricultural producers are defined as 
those having annual receipts less than $750,000 (13 CFR 121.201).
    Based on industry and Committee data, the average annual f.o.b. 
price for fresh Florida citrus during the 2010-11 season was 
approximately $12.16 per \4/5\ bushel carton, and total fresh shipments 
were approximately 30.4 million cartons. Using the average f.o.b. price 
and shipment data, about 55 percent of the Florida citrus handlers 
could be considered small businesses under SBA's definition. In 
addition, based on production data, grower prices as reported by the 
National Agricultural Statistics Service, and the total number of 
Florida citrus growers, the average annual grower revenue is below 
$750,000. Thus, assuming a normal distribution, the majority of 
handlers and producers of Florida citrus may be classified as small 
entities.
    This proposed rule would increase the assessment rate established 
for the Committee and collected from handlers for the 2012-13 and 
subsequent fiscal periods from $0.0072 to $0.008 per \4/5\ bushel 
carton of citrus. The Committee unanimously recommended 2012-13 
expenditures of $223,500 and an assessment rate of $0.008 per \4/5\ 
bushel carton of citrus. The proposed assessment rate of $0.008 is 
$0.0008 higher than the 2011-12 rate. The quantity of assessable citrus 
for the 2012-13 season is estimated at 27.3 million cartons. Thus, the 
$0.008 rate should provide $218,400 in assessment income. Income 
derived from handler assessments, along with interest income and funds 
from the Committee's authorized reserve fund, would be adequate to meet 
this year's anticipated expenses.
    The major expenditures recommended by the Committee for the 2012-13 
year include $116,200 for salaries, $25,000 for Florida Department of 
Agriculture and Consumer Services (FDACS) manifesting, and $18,250 for 
a retirement plan. Budgeted expenses for these items in 2011-12 were 
the same as recommended for 2012-13 budgeted expenditures, 
respectively.
    As previously stated, the Committee estimates the 2012-2013 
production to be approximately 27.3 million \4/5\ bushel cartons, down 
from the 29.5 million \4/5\ bushel cartons estimated for last year. At 
the current assessment rate, assessment income would equal only 
$196,560, an amount insufficient to cover the Committee's anticipated 
expenditures. The assessment rate increase would generate additional 
revenue and would help offset the amount of reserves needed to fund the 
budget. Therefore, the Committee recommended increasing the assessment 
rate.
    The Committee reviewed and unanimously recommended 2012-13 
expenditures of $223,500. Prior to arriving at this budget, the 
Committee considered information from the Committee's Executive 
Subcommittee. Alternative expenditure levels were discussed by this 
group. The assessment rate of $0.008 per \4/5\ bushel carton of citrus 
was then determined by reviewing anticipated expenses, total expected 
shipments of citrus, interest income, and the available reserves. The 
increased assessment rate should provide $218,400 in assessment income. 
This is approximately $5,100 below the anticipated expenses, which the 
Committee determined to be acceptable.
    A review of historical information and preliminary information 
pertaining to the upcoming crop year indicates that the grower price 
for the 2012-13 season could range between $3.83 and $10.13 per \4/5\ 
bushel carton of citrus. Therefore, the estimated assessment revenue 
for the 2012-13 crop year as a percentage of total grower revenue could 
range between .08 and .2 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

[[Page 2910]]

the marketing order. In addition, the Committee's meeting was 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 July 17, 
2012, 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 comments on this proposed rule, including 
the regulatory and informational impacts of this action on small 
businesses.
    In accordance with the Paperwork Reduction Act of 1995, (44 U.S.C. 
Chapter 35), the order's information collection requirements have been 
previously approved by the Office of Management and Budget (OMB) and 
assigned OMB No. 0581-0189 Generic Fruit Crops. No changes in those 
requirements as a result of this action are necessary. Should any 
changes become necessary, they would be submitted to OMB for approval.
    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.
    AMS is committed to complying with the E-Government Act, to promote 
the use of the Internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services, and for other purposes.
    USDA has not identified any relevant Federal rules that duplicate, 
overlap, or conflict with this proposed rule.
    A small business guide on complying with fruit, vegetable, and 
specialty crop marketing agreements and orders may be viewed at: 
www.ams.usda.gov/MarketingOrdersSmallBusinessGuide. Any questions about 
the compliance guide should be sent to Laurel May at the previously-
mentioned address in the FOR FURTHER INFORMATION CONTACT section.
    A 10-day comment period is provided to allow interested persons to 
respond to this proposed rule. Ten days is deemed appropriate because: 
(1) The 2012-13 fiscal period began on August 1, 2012, 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, 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

0
1. The authority citation for 7 CFR part 905 continues to read as 
follows:

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

0
2. Section 905.235 is revised to read as follows:


Sec.  905.235  Assessment rate.

    On and after August 1, 2012, an assessment rate of $0.008 per \4/5\ 
bushel carton or equivalent is established for Florida citrus covered 
under the order.

    Dated: January 9, 2013.
David R. Shipman,
Administrator, Agricultural Marketing Service.
[FR Doc. 2013-00599 Filed 1-14-13; 8:45 am]
BILLING CODE 3410-02-P