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

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 906

[Docket No. FV96-906-1 FIR]

Oranges and Grapefruit Grown in the Lower Rio Grande Valley in

Texas; Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: The Department of Agriculture (Department) is adopting as a

final rule, without change, the provisions of an interim final rule

establishing an assessment rate for the Texas Valley Citrus Committee

(Committee) under Marketing Order No. 906 for the 1996-97 and

subsequent fiscal periods. The Committee is responsible for local

administration of the marketing order which regulates the handling of

oranges and grapefruit grown in the Lower Rio Grande Valley in Texas.

Authorization to assess orange and grapefruit handlers enables the

Committee to incur expenses that are reasonable and necessary to

administer the program.

EFFECTIVE DATE: August 1, 1996.

FOR FURTHER INFORMATION CONTACT: Belinda G. Garza, McAllen Marketing

Field Office, Fruit and Vegetable Division, AMS, USDA, 1313 E.

Hackberry, McAllen, TX 78501, telephone (210) 682-2833, FAX # (210)

682-5942, or Charles L. Rush, Marketing Order Administration Branch,

Fruit and Vegetable Division, AMS, USDA, P.O. Box 96456, room 2523-S,

Washington, DC 20090-6456, telephone (202) 690-3670, FAX # (202) 720-

5698.

Small businesses 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, DC 20090-6456; telephone (202) 720-2491; FAX #

(202) 720-5698.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing

Agreement and Order No. 906 (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 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 is issuing this rule in conformance with Executive

Order 12866.

This rule has been reviewed under Executive Order 12988, Civil

Justice Reform. Under the marketing order now in effect, handlers of

oranges and grapefruit grown in the Lower Rio Grande Valley in Texas

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, 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 behalf. Thus, both statutes have small

entity orientation and compatibility.

There are approximately 2,000 producers of oranges and grapefruit

in the production area and 19 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 orange and grapefruit producers and handlers may be

classified as small entities.

The Texas orange and grapefruit 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 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.

The Committee met on May 29, 1996, and recommended 1996-97

expenditures of $1,085,130 and an assessment rate of $0.125 per \7/10\

bushel carton of oranges and grapefruit. In comparison, last year's

budgeted expenditures were $1,008,643. The assessment rate of $0.125 is

$0.025 higher than last year's established rate. Major expenditures

recommended by the Committee for the 1996-97 fiscal year include

$712,800 for advertising and $174,000 for the Mexican Fruit Fly support

program. Budgeted expenses for these items in 1995-96 were $500,000 for

advertising and $174,000 for the Mexican Fruit Fly support program.

The assessment rate recommended by the Committee was derived by

dividing anticipated expenses by expected shipments of Texas oranges

and grapefruit. Texas orange and grapefruit shipments for the year are

estimated at 8 million cartons which should provide $1,000,000 in

assessment income. Income derived from handler assessments, along with

interest income

[[Page 49651]]

and funds from the Committee's authorized reserve, will be adequate to

cover budgeted expenses. Funds in the reserve will be kept within the

maximum permitted by the order.

An interim final rule regarding this action was published in the

July 22, 1996, issue of the Federal Register (61 FR 37810). That rule

provided for a 30-day comment period. No comments were received.

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.

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 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 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. 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 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 began on

August 1, 1996, 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; (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) an interim final rule was published on this action, providing a

30-day comment period, and no comments were received.

List of Subjects in 7 CFR Part 906

Marketing agreements, Grapefruit, Oranges, Reporting and

recordkeeping requirements.

PART 906--ORANGES AND GRAPEFRUIT GROWN IN THE LOWER RIO GRANDE

VALLEY IN TEXAS

Accordingly, the interim final rule amending 7 CFR part 906 which

was published at 61 FR 37810 on July 22, 1996, is adopted as a final

rule without change.

Dated: September 17, 1996.

Robert C. Keeney,

Director, Fruit and Vegetable Division.

[FR Doc. 96-24240 Filed 9-20-96; 8:45 am]

BILLING CODE 3410-02-P