[Federal Register Volume 80, Number 220 (Monday, November 16, 2015)]
[Rules and Regulations]
[Pages 70669-70671]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-28913]



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  Federal Register / Vol. 80, No. 220 / Monday, November 16, 2015 / 
Rules and Regulations  

[[Page 70669]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 906

[Doc. No. AMS-FV-15-0035; FV15-906-1 IR]


Oranges and Grapefruit Grown in Lower Rio Grande Valley in Texas; 
Decreased Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim rule with request for comments.

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SUMMARY: This rule implements a recommendation from the Texas Valley 
Citrus Committee (Committee) for a decrease in the assessment rate 
established for the 2015-16 and subsequent fiscal periods from $0.11 to 
$0.08 per 7/10-bushel carton or equivalent of oranges and grapefruit 
handled under the marketing order (order). The Committee locally 
administers the order, and is comprised of producers and handlers of 
oranges and grapefruit operating within the area of production. 
Assessments upon orange and grapefruit 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 
will remain in effect indefinitely unless modified, suspended, or 
terminated.

DATES: Effective November 17, 2015. Comments received by January 15, 
2016, 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 and Agreement Division, Specialty Crops 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 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: Abigail Campos, Marketing Specialist, 
or Christian D. Nissen, Regional Director, Southeast Marketing Field 
Office, Marketing Order and Agreement Division, Specialty Crops 
Program, AMS, USDA; Telephone: (863) 324-3375, Fax: (863) 291-8614, 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, Specialty Crops 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 rule is issued under Marketing 
Agreement and Order No. 906, as amended (7 CFR part 906), regulating 
the handling of oranges and grapefruit grown in the Lower Rio Grande 
Valley in Texas, 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 rule in 
conformance with Executive Orders 12866, 13563, and 13175.
    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. Under the marketing order now in effect, orange and 
grapefruit 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 will be applicable to all assessable 
oranges and grapefruit beginning August, 1, 2015, 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 rule decreases the assessment rate established for the 
Committee for the 2015-16 and subsequent fiscal periods from $0.11 to 
$0.08 per 7/10-bushel carton or equivalent of oranges and grapefruit 
handled.
    The Texas orange and grapefruit 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 
Texas oranges and grapefruit. 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 2014-15 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 24, 2015, and unanimously recommended 
2015-16 expenditures of $701,148 and an assessment rate of $0.08 per 7/
10-bushel carton or equivalent of oranges and

[[Page 70670]]

grapefruit. In comparison, last year's budgeted expenditures were 
$809,500. The assessment rate of $0.08 is $0.03 lower than the rate 
currently in effect. The recommended 2015-16 expenditures include 
decreases in educational outreach and compliance, which were reduced by 
approximately $100,000. The Committee considered proposed expenses and 
recommended decreasing the assessment rate to more closely align 
assessment income to the lower budget.
    The major expenditures recommended by the Committee for the 2015-16 
year include $600,248 for the Mexican fruit fly control program, 
$77,200 for management and compliance, and $23,700 for operating 
expenses. Budgeted expenses for these items in 2014-15 were $503,000, 
$175,000, and $21,500, respectively.
    The assessment rate recommended by the Committee was derived by 
dividing anticipated expenses by expected shipments of Texas oranges 
and grapefruit. Orange and grapefruit shipments for the 2015-16 year 
are estimated at 8 million 7/10-bushel cartons or equivalent, which 
should provide $640,000 in assessment income. Income derived from 
handler assessments, along with interest income and funds from the 
Committee's authorized reserve, will be adequate to cover budgeted 
expenses. Income in the reserve (currently around $230,000) will be 
kept within the maximum permitted by the order (approximately one 
fiscal period's expenses as stated in Sec.  906.35).
    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 USDA. 
Committee meetings are open to the public and interested persons may 
express their views at these meetings. USDA will evaluate Committee 
recommendations and other available information to determine whether 
modification of the assessment rate is needed. Further rulemaking will 
be undertaken as necessary. The Committee's 2015-16 budget and those 
for subsequent fiscal periods will 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 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 170 producers of oranges and grapefruit in 
the production area and 13 handlers subject to regulation under the 
marketing order. Small agricultural producers are defined by the Small 
Business Administration as those having annual receipts less than 
$750,000, and small agricultural service firms are defined as those 
whose annual receipts are less than $7,000,000 (13 CFR 121.201).
    According to Committee data and information from the National 
Agricultural Statistics Service, the weighted average grower price for 
Texas citrus during the 2013-14 season was around $13.89 per box and 
total shipments were near 7.4 million boxes. Using the weighted average 
price and shipment information, and assuming a normal distribution, the 
majority of growers would have annual receipts of less than $750,000. 
In addition, based on available information, the majority of handlers 
have annual receipts of less than $7,000,000 and could be considered 
small businesses under SBA's definition. Thus, the majority of Texas 
citrus producers and handlers may be classified as small entities.
    This rule decreases the assessment rate established for the 
Committee and collected from handlers for the 2015-16 and subsequent 
fiscal periods from $0.11 to $0.08 per 7/10-bushel carton or equivalent 
of Texas citrus. The Committee unanimously recommended 2015-16 
expenditures of $701,148 and an assessment rate of $0.08 per 7/10-
bushel carton or equivalent handled. The assessment rate of $0.08 is 
$0.03 lower than the 2014-2015 rate. The quantity of assessable oranges 
and grapefruit for the 2015-16 fiscal period is estimated at 8 million 
7/10-bushel cartons or equivalent. Thus, the $0.08 rate should provide 
$640,000 in assessment income. Income derived from handler assessments 
along with interest income and funds from Committee's authorized 
reserve, will be adequate to cover budgeted expenses.
    The major expenditures recommended by the Committee for the 2015-16 
year include $600,248 for the Mexican fruit fly control program, 
$77,200 for management and compliance, and $23,700 for operating 
expenses. Budgeted expenses for these items in 2014-15 were $503,000, 
$175,000, and $21,500, respectively.
    The recommended 2015-16 expenditures include decreases in the 
amount budgeted for educational outreach and compliance. The Committee 
considered proposed expenses and recommended decreasing the assessment 
rate to more closely align assessment income to the lower budget.
    Prior to arriving at this budget and assessment rate, the Committee 
considered information from various sources, such as the Committee's 
Budget and Personnel Committee and the Market Development Committee. 
Alternative expenditure levels were discussed by these groups, based 
upon the relative value of various activities to the Texas citrus 
industry. Based on estimated shipments, the recommended assessment rate 
of $0.08 should provide $640,000 in assessment income. The Committee 
determined that the assessment revenue, along with funds from reserves 
and interest income, would be adequate to cover budgeted expenses for 
the 2015-16 fiscal period.
    A review of historical information and preliminary information 
pertaining to the upcoming fiscal period indicates that the average 
grower price for the 2015-16 season could be around $13.00 per 7/10-
bushel carton or equivalent of oranges and grapefruit. Therefore, the 
estimated assessment revenue for the 2015-16 fiscal period, as a 
percentage of total grower revenue would be around 0.6 percent.
    This action decreases the assessment obligation imposed on 
handlers. Assessments are applied uniformly on all handlers, and 
decreasing the assessment rate reduces the burden on handlers.
    The Committee's meeting was widely publicized throughout the Texas 
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 June 24, 2015, meeting was a public 
meeting. All entities, both large and small, were able to express views 
on this issue. Interested persons are invited to submit comments on 
this interim rule, including the regulatory

[[Page 70671]]

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 are necessary as a result of this action. Should any 
changes become necessary, they would be submitted to OMB for approval.
    This action imposes no additional reporting or recordkeeping 
requirements on either small or large Texas orange and grapefruit 
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 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/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.
    After consideration of all relevant material presented, including 
the information and recommendation submitted by the Committee and other 
available information, it is hereby found that this rule, as 
hereinafter set forth, will tend 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 because: (1) The 2015-16 fiscal period began on August, 1, 
2015, and the marketing order requires that the rate of assessment for 
each fiscal period apply to all assessable oranges and grapefruit 
handled during such fiscal period; (2) this action decreases the 
assessment rate for assessable oranges and grapefruit grown in Texas 
beginning with the 2015-16 fiscal period; (3) handlers are aware of 
this action which was recommended by the Committee at a public meeting 
and is similar to other assessment rate actions issued in past years; 
and (4) this interim 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 906

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

    For the reasons set forth in the preamble, 7 CFR part 906 is 
amended as follows:

PART 906--ORANGES AND GRAPEFRUIT GROWN IN LOWER RIO GRANDE VALLEY 
IN TEXAS

0
1. The authority citation for 7 CFR part 906 continues to read as 
follows:

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


0
2. Section 906.235 is revised to read as follows:


Sec.  906.235  Assessment rate.

    On and after August, 1, 2015, an assessment rate of $0.08 per 7/10-
bushel carton or equivalent is established for oranges and grapefruit 
grown in the Lower Rio Grande Valley in Texas.

    Dated: November 9, 2015.
Rex A. Barnes,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2015-28913 Filed 11-13-15; 8:45 am]
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