[Federal Register Volume 81, Number 159 (Wednesday, August 17, 2016)]
[Proposed Rules]
[Pages 54748-54750]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-19624]


 ========================================================================
 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. 81, No. 159 / Wednesday, August 17, 2016 / 
Proposed Rules  

[[Page 54748]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 906

[Doc. No. AMS-SC-16-0059; SC16-906-2 PR]


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

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This proposed rule would implement a recommendation from the 
Texas Valley Citrus Committee (Committee) to increase the assessment 
rate established for the 2016-17 and subsequent fiscal periods from 
$0.08 to $0.09 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 
would remain in effect indefinitely unless modified, suspended, or 
terminated.

DATES: Comments must be received by September 16, 2016.

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, 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 
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, 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 Richard Lower, 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 proposed 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 proposed rule 
in conformance with Executive Orders 12866, 13563, and 13175.
    This proposed 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 proposed herein would be applicable to all 
assessable oranges and grapefruit beginning on August 1, 2016, 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 2016-17 and subsequent fiscal periods from 
$0.08 to $0.09 per 7/10-bushel carton or equivalent of oranges and 
grapefruit.
    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 2015-16 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 2, 2016, and unanimously recommended 
2016-17 expenditures of $751,148 and an assessment rate of $0.09 per 7/
10-bushel carton or equivalent of oranges and grapefruit. In 
comparison, last year's budgeted expenditures were $701,148. The 
assessment rate of $0.09 is $0.01 higher than the rate currently in 
effect.

[[Page 54749]]

At the current assessment rate, assessment income would equal around 
$640,000, an amount insufficient to cover the Committee's anticipated 
expenditures, which include a $50,000 increase in funding for 
compliance. The Committee considered the proposed expenses and 
recommended increasing the assessment rate.
    The major expenditures recommended by the Committee for the 2016-17 
year include $600,248 for the Mexican fruit fly control program, 
$77,200 for management, and $50,000 for compliance. Budgeted expenses 
for these items in 2015-16 were $600,248, $77,200, and $0, 
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 2016-17 year 
are estimated at 8 million 7/10-bushel cartons or equivalent, which 
should provide $720,000 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 (currently around $367,000) would be 
kept within the maximum permitted by the order (approximately one 
fiscal period's expenses as stated in Sec.  906.35).
    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 2016-17 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 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 (SBA) as those having annual receipts less than 
$750,000, and small agricultural service firms are defined as those 
whose annual receipts are less than $7,500,000 (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 2014-15 season was around $9.53 per box and 
total shipments were near 7.8 million boxes. Using the weighted average 
price and shipment information, and assuming a normal distribution of 
production, the majority of producers would have annual receipts of 
less than $750,000. In addition, based on Committee information, the 
majority of handlers have annual receipts of less than $7,500,000 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 proposal would increase the assessment rate established for 
the Committee and collected from handlers for the 2016-17 and 
subsequent fiscal periods from $0.08 to $0.09 per 7/10-bushel carton or 
equivalent of Texas oranges and grapefruit. The Committee unanimously 
recommended 2016-17 expenditures of $751,148 and an assessment rate of 
$0.09 per 7/10-bushel carton or equivalent handled. The proposed 
assessment rate of $0.09 is $0.01 higher than the 2015-16 rate. The 
quantity of assessable oranges and grapefruit for the 2016-17 season is 
estimated at 8 million 7/10-bushel cartons or equivalent. Thus, the 
$0.09 rate should provide $720,000 in assessment income. Income derived 
from handler assessments, along with interest income and funds from the 
Committee's authorized reserve, would be adequate to meet this year's 
expenses.
    The major expenditures recommended by the Committee for the 2016-17 
year include $600,248 for the Mexican fruit fly control program, 
$77,200 for management, and $50,000 for compliance. Budgeted expenses 
for these items in 2015-16 were $600,248, $77,200, and $0, 
respectively.
    At the current assessment rate, assessment income would only equal 
around $640,000, an amount insufficient to cover the Committee's 
anticipated expenditures, which include a $50,000 increase in funding 
for compliance. The Committee considered the proposed expenses and 
recommended increasing the assessment rate.
    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 Committee management. 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 $0.09 
should provide $720,000 in assessment income. The Committee determined 
that the assessment revenue, along with funds from interest income and 
funds from reserves, would be adequate to cover budgeted expenses for 
the 2016-17 fiscal period.
    A review of historical information and preliminary information 
pertaining to the upcoming crop year indicates that the average grower 
price for the 2016-17 season could be around $13.50 per 7/10-bushel 
carton or equivalent of oranges and grapefruit. Therefore, the 
estimated assessment revenue for the 2016-17 crop year as a percentage 
of total grower revenue would be around 0.6 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. However, these costs 
would be offset by the benefits derived by the operation of the 
marketing order.
    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 2, 2016, meeting was a public meeting 
and all entities, both large and small, were able to express

[[Page 54750]]

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 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 action.
    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/rules-regulations/moa/small-businesses. Any questions 
about the compliance guide should be sent to Richard Lower 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 2016-17 fiscal period begins on August 1, 2016, and 
the marketing order requires that the rate of assessment for each 
fiscal period apply to all assessable Texas oranges and grapefruit 
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 906

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

    For the reasons set forth in the preamble, 7 CFR part 906 is 
proposed to be 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, 2016, an assessment rate of $0.09 per 7/10-
bushel carton or equivalent is established for oranges and grapefruit 
grown in the Lower Rio Grande Valley in Texas.

    Dated: August 12, 2016.
Elanor Starmer,
Administrator, Agricultural Marketing Service.
[FR Doc. 2016-19624 Filed 8-16-16; 8:45 am]
 BILLING CODE 3410-02-P