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

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 905

[Docket No. FV96-905-1 IFR]

Oranges, Grapefruit, Tangerines, and Tangelos Grown in Florida;

Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

-----------------------------------------------------------------------

SUMMARY: This interim final rule establishes an assessment rate for the

Citrus Administrative Committee (Committee) under Marketing Order No.

905 for the 1996-97 fiscal period and continuing until amended. The

Committee is responsible for local administration of the marketing

order which regulates the handling of citrus grown in Florida.

Authorization to assess citrus handlers enables the Committee to incur

expenses that are reasonable and necessary to administer the program.

DATES: Effective on August 1, 1996. Comments received by August 23,

1996 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 in triplicate to the Docket

Clerk, Fruit and Vegetable Division, AMS, USDA, P.O. Box 96456, room

2523-S, Washington, DC 20090-6456, FAX (202) 720-5698. 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.

FOR FURTHER INFORMATION CONTACT:

Doris Jamieson, Southeast Marketing Field Office, Fruit and Vegetable

Division, AMS, USDA, P.O. Box 2276, Winter Haven, FL 33883-2276,

telephone (813) 299-4770, FAX (813) 299-5169, or Tershirra Yeager,

Marketing Order Administration Branch, Fruit and Vegetable Division,

AMS, USDA, P.O. Box 96456, room 2523-S, Washington, DC 20090-6456,

telephone (202) 720-8139, FAX (202) 720-5698. Small business may

request information on compliance with this regulation by contacting:

Jay Guerber, Marketing Order Administration Branch, Fruit and Vegetable

Division, AMS, USDA, P.O. Box 96456, Room 2523-S, Washington, D.C.

20090-6456; telephone: (202) 720-2491, Fax # (202) 720-5698.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing

Agreement No. 84 and Order No. 905, as amended (7 CFR part 905),

regulating the 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 (Department) is issuing this rule in

conformance with Executive Order 12866.

This rule has been reviewed under Executive Order 12778, 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 will be applicable to all assessable citrus beginning

August 1, 1996, and continuing 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 the Secretary 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 Secretary 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 the

Secretary's ruling on the petition, provided an action is filed not

later than 20 days after the date of the entry of the ruling.

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.

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

[[Page 38355]]

behalf. Thus, both statutes have small entity orientation and

compatibility.

There are approximately 11,000 producers of citrus in the

production area and approximately 100 handlers subject to regulation

under the marketing order. Small agricultural producers have been

defined by the Small Business Administration (13 CFR 121.601) as those

having annual receipts less than $500,000, and small agricultural

service firms are defined as those whose annual receipts are less than

$5,000,000. The majority of citrus producers and handlers may be

classified as small entities.

The Florida citrus marketing order provides authority for the

Committee, with the approval of the Department, 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

Oranges, Grapefruit, Tangerines, and Tangelos Grown in Florida. 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.

The Committee met on May 24, 1996, and unanimously recommended

1996-97 expenditures of approximately $230,000 and an assessment rate

of $0.0035 per 4/5 bushel carton of citrus. In comparison, last year's

budgeted expenditures were $215,000. The assessment rate of $0.0035 is

$0.00025 higher than last year's assessment. Major expenditures

recommended by the Committee for the 1996-97 year include $102,760 for

salaries, $36,000 for the Manifest Department-FDACS, and $13,500 for

insurance and bonds. Budgeted expenses for these items in 1995-96 were

$101,740 for salaries, $36,000 for the Manifest Department-FDACS, and

$13,350 for insurance and bonds.

The assessment rate recommended by the Committee was derived by

dividing anticipated expenses by expected shipments of Florida citrus.

Citrus shipments for the year are estimated at 64,500,000 which should

provide $225,750 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. Any

excess of revenues or expenses will be placed in the reserve fund.

Funds in the reserve will be kept within the maximum permitted by the

order.

While this rule will impose some additional costs on handlers, the

costs are in the form of uniform assessments on all handlers. Some of

the additional costs may be passed on to producers. However, these

costs will be offset by the benefits derived by the operation of the

marketing order. Therefore, the AMS has determined that this rule will

not have a significant economic impact on a substantial number of small

entities. Interested persons are invited to submit information on the

regulatory and informational impacts of this action on small

businesses.

The assessment rate established in this rule will continue in

effect indefinitely unless modified, suspended, or terminated by the

Secretary 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 during each fiscal period

to consider recommendations for modification of the assessment rate.

The dates and times of Committee meetings are available from the

Committee or the Department. Committee meetings are open to the public

and interested persons may express their views at these meetings. The

Department 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 1996-97 budget and those for subsequent fiscal periods will

be reviewed and, as appropriate, approved by the Department.

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 Committee needs to have sufficient funds to

pay its expenses which are incurred on a continuous basis: (2) the

1996-97 fiscal period begins on August 1, 1996, and the marketing order

requires that the rate of assessment for each fiscal period apply to

all assessable citrus handled during such fiscal period; (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 part years; and (4) this interim final rule provides

a 30-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, Marketing agreements, Oranges, Reporting and

recordkeeping requirements, Tangelos, Tangerines.

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. A new subpart--Assessment Rates consisting of a new Sec. 905.235

and a new subpart heading--Grade and Size Requirements are added

immediately preceding Sec. 905.306 Orange, Grapefruit, Tangerine, and

Tangelo regulation to read as follows:

Note: This section will appear in the Code of Federal

Regulations.

Subpart--Assessment Rates

Sec. 905.235 Assessment rate.

On and after August 1, 1996, an assessment rate of $0.0035 per \4/

5\ bushel carton is established for assessable for Florida citrus

covered under the order.

Subpart--Grade and Size Requirements

Sec. 905.306 Orange, Grapefruit, Tangerine and Tangelo Regulation.

* * * * *

Dated: July 15, 1996.

Robert C. Keeney,

Director, Fruit and Vegetable Division.

[FR Doc. 96-18467 Filed 7-23-96; 8:45 am]

BILLING CODE 3410-02-M