[Federal Register Volume 78, Number 180 (Tuesday, September 17, 2013)]
[Proposed Rules]
[Pages 57099-57101]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-22539]


 ========================================================================
 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. 180 / Tuesday, September 17, 2013 / 
Proposed Rules  

[[Page 57099]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 915

[Doc. No. AMS-FV-13-0054; FV13-915-2 PR]


Avocados Grown in South Florida; Increased Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This proposed rule would increase the assessment rate 
established for the Avocado Administrative Committee (Committee) for 
the 2013-14 and subsequent fiscal periods from $0.25 to $0.30 per 55-
pound bushel container of Florida avocados handled. The Committee 
locally administers the marketing order, which regulates the handling 
of avocados grown in South Florida. Assessments upon Florida avocado 
handlers are used by the Committee to fund reasonable and necessary 
expenses of the program. The fiscal period begins 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 October 2, 2013.

ADDRESSES: Interested persons are invited to submit written comments on 
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: Doris Jamieson, 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 
regulation by contacting Jeffrey Smutny, 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 proposed rule is issued under Marketing 
Order No. 915, as amended (7 CFR part 915), regulating the handling of 
avocados grown in South 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 proposed 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 Florida avocados beginning on April 1, 2013, 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 2013-14 and subsequent fiscal periods from 
$0.25 to $0.30 per 55-pound bushel container of avocados.
    The Florida avocado 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 avocados. They are familiar with the Committee's needs and with 
the costs of goods and services in their local area and are therefore 
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 2012-13 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 June 12, 2013, and unanimously recommended 
2013-14 expenditures of $472,553 and an assessment rate of $0.30 per 
55-pound container of avocados. In comparison, last year's budgeted 
expenditures were $324,575. The assessment rate of $0.30 is $0.05 
higher than the rate currently in effect. The Committee recommended 
increasing the assessment rate to provide additional funds for research 
to address the Laurel Wilt fungus, which can infect and kill avocado 
trees.
    The major expenditures recommended by the Committee for the

[[Page 57100]]

2013-14 year include $175,000 for research, $119,483 for salaries, and 
$51,500 for employee benefits. Budgeted expenses for these items in 
2012-13 were $75,000, $101,705, and $48,000, respectively.
    The assessment rate recommended by the Committee was derived by 
reviewing anticipated expenses, expected shipments of Florida avocados, 
and available reserves. Florida avocado shipments for the year are 
estimated at 1,000,000 55-pound bushel containers, which should provide 
$300,000 in assessment income. Income derived from handler assessments, 
interest income, and funds from the Committee's authorized reserve 
would be adequate to cover budgeted expenses. Funds in the reserve 
(currently $465,000) would be kept within the maximum permitted by the 
order (approximately three fiscal periods' expenses, Sec.  915.42).
    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 to modify 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, and further rulemaking 
would be undertaken as necessary. The Committee's 2013-14 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 proposed 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 
businesses 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 30 handlers of Florida avocados subject to 
regulation under the order and approximately 300 producers of avocados 
in the production area. Small agricultural service firms, which include 
avocado handlers, are defined by the Small Business Administration 
(SBA) as those having annual receipts less than $7,000,000, and small 
agricultural producers are defined as those having annual receipts less 
than $750,000 (13 CFR 121.201).
    According to Committee data and information from the National 
Agricultural Statistical Service, the average price for Florida 
avocados during the 2011-12 season was approximately $20.79 per 55-
pound bushel container and total shipments were slightly higher than 
1.2 million 55-pound bushels. Using the average price and shipment 
information, the majority of avocado handlers could be considered small 
businesses under SBA's definition. In addition, based on avocado 
production, producer prices, and the total number of Florida avocado 
producers, the average annual producer revenue is less than $750,000. 
Consequently, the majority of avocado handlers and producers may be 
classified as small entities.
    This proposal would increase the assessment rate for the 2013-14 
and subsequent fiscal periods from the current rate of $0.25 to $0.30 
per 55-pound bushel container of avocados. The Committee unanimously 
recommended the increased assessment rate, and 2013-14 expenditures of 
$472,553. The increase was recommended to provide an additional 
$100,000 for research to address the Laurel Wilt fungus, which can 
infect and kill avocado trees. As previously stated, income from 
handler assessments, interest income, and funds from reserves, would be 
adequate to meet this year's expenses.
    Alternative expenditure and assessments levels were discussed prior 
to arriving at this budget. However, the Committee agreed on $472,553 
in expenditures, reviewed the quantity of assessable avocados and 
available reserves, and recommended an assessment rate of $0.30 per 55-
pound bushel container.
    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 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 June 12, 
2013, 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 OMB 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 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.
    AMS is committed to complying with the E-Government Act, to promote 
the use of the Internet and other information technologies to provide 
more opportunities for citizens to access Government information and 
services, and for other purposes.
    USDA has not identified any relevant Federal rules that duplicate, 
overlap, or conflict with this action.
    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 Jeffrey Smutny at the 
previously-mentioned address in the FOR FURTHER INFORMATION CONTACT 
section.
    A 15-day comment period is provided to allow interested persons to 
respond to this proposed rule. Fifteen days is deemed appropriate 
because: (1) The 2013-14 fiscal period began on April 1, 2013, and the 
marketing order requires that the rate of assessment for each fiscal 
period apply to all assessable Florida avocados handled during such

[[Page 57101]]

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, 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


0
1. The authority citation for 7 CFR part 915 continues to read as 
follows:

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

0
2. Section 915.235 is revised to read as follows:


Sec.  915.235  Assessment rate.

    On and after April 1, 2013, an assessment rate of $0.30 per 55-
pound container or equivalent is established for avocados grown in 
South Florida.

    Dated: September 11, 2013.
Rex A. Barnes,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2013-22539 Filed 9-16-13; 8:45 am]
BILLING CODE 3410-02-P