[Federal Register Volume 78, Number 219 (Wednesday, November 13, 2013)]
[Proposed Rules]
[Pages 67977-67979]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-27018]
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Proposed Rules
Federal Register
________________________________________________________________________
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. 219 / Wednesday, November 13, 2013 /
Proposed Rules
[[Page 67977]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 905
[Doc. No. AMS-FV-13-0074; FV13-905-3 PR]
Oranges, Grapefruit, Tangerines, and Tangelos Grown in 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 Citrus Administrative Committee (Committee) for the
2013-14 and subsequent fiscal periods from $0.008 to $0.009 per 4/5
bushel carton of Florida citrus handled. The Committee locally
administers the Federal marketing order, which regulates the handling
of oranges, grapefruit, tangerines, and tangelos grown in Florida.
Assessments upon Florida citrus 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 November 29, 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: Corey E. Elliott, 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. 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 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 and 13563.
This proposed rule has been reviewed under Executive Order 12988,
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 proposed herein would be applicable to all
assessable Florida citrus beginning on August 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
$0.008 to $0.009 per 4/5 bushel carton of citrus.
The Florida citrus 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 citrus. 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 of $0.08 per 4/5
bushel carton of citrus 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 July 16, 2013, and unanimously recommended
2013-14 expenditures of $190,000 and an assessment rate of $0.009 per
4/5 bushel carton of citrus. In comparison, last year's budgeted
expenditures were $223,500. The assessment rate of $0.009 is $0.001
higher than the rate currently in effect. Over the past few years, the
Committee's reserve has been depleted as the Committee has used reserve
funds to help meet its annual expenditures. Therefore, the Committee
recommended increasing the assessment rate to
[[Page 67978]]
generate additional funds to increase the Committee's reserve balance.
The major expenditures recommended by the Committee for the 2013-14
year include $92,400 for salaries, $25,000 for Florida Department of
Agriculture and Consumer Services (FDACS) manifesting reports and
statistics, and $13,000 for a retirement plan. Budgeted expenses for
these items in 2012-13 were $116,200, $25,000, and $18,250,
respectively.
The assessment rate recommended by the Committee was derived by
reviewing anticipated expenses, expected shipments of Florida citrus,
interest income, and the need to add additional funds to the reserve.
Florida citrus shipments for the year are estimated at 23.8 million 4/5
bushel cartons, which should provide $214,200 in assessment income.
Income derived from handler assessments and interest income would be
adequate to cover budgeted expenses. Funds in the reserve (projected at
approximately $40,000) would be kept within the maximum permitted by
the order of not to exceed one half of one fiscal period's expenses as
stated in Sec. 905.42.
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. 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 44 Florida citrus handlers subject to regulation under
the marketing order and approximately 8,000 producers of citrus in the
production area. Small agricultural service firms are defined by the
Small Business Administration (SBA) as those whose annual receipts are
less than $7,000,000, and small agricultural producers are defined as
those having annual receipts less than $750,000 (13 CFR 121.201).
Based on industry and Committee data, the average annual f.o.b.
price for fresh Florida citrus during the 2011-12 season was
approximately $11.79 per 4/5 bushel carton, and total fresh shipments
were approximately 29.5 million cartons. Using the average f.o.b. price
and shipment data, about 48 percent of the Florida citrus handlers
could be considered small businesses under SBA's definition. In
addition, based on production data, grower prices as reported by the
National Agricultural Statistics Service, and the total number of
Florida citrus growers, the average annual grower revenue is below
$750,000. Thus, assuming a normal distribution, the majority of
handlers of Florida citrus may be classified as large entities and the
majority of producers of Florida citrus 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 $0.008 to $0.009
per 4/5 bushel carton of citrus. The Committee unanimously recommended
the increased assessment rate, and 2013-14 expenditures of $190,000.
The increase was recommended to generate additional funds to add to the
Committee's reserve. As previously stated, income derived from handler
assessments and interest would be adequate to meet this year's
anticipated expenses.
A review of historical information and preliminary information
pertaining to the upcoming season indicates that the grower price for
the 2013-14 season should average around $5.05 per 4/5 bushel carton of
citrus. Utilizing this estimate and the proposed assessment rate of
$0.009, estimated assessment revenue as a percentage of total grower
revenue would be approximately 0.18 percent for the season.
Alternative expenditure and assessment levels were discussed prior
to arriving at this budget. However, the Committee agreed on $190,000
in expenditures, reviewed the quantity of assessable citrus and the
need to add additional funds to the reserve, and recommended an
assessment rate of $0.009 per 4/5 bushel carton of citrus.
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. These costs would be
offset by the benefits derived from the operation of the marketing
order. In addition, the Committee's meeting was widely publicized
throughout the Florida 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 July 16,
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 citrus
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: http://www.ams.usda.gov/MarketingOrdersSmallBusinessGuide.
[[Page 67979]]
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 August 1, 2013, with
shipments beginning in September, and the marketing order requires that
the rate of assessment for each fiscal period apply to all assessable
Florida citrus 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 905
Grapefruit, Oranges, Reporting and recordkeeping requirements,
Tangelos, Tangerines.
For the reasons set forth in the preamble, 7 CFR part 905 is
proposed to be amended as follows:
PART 905--ORANGES, GRAPEFRUIT, TANGERINES, AND TANGELOS GROWN IN
FLORIDA
0
1. The authority citation for 7 CFR part 905 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. Section 905.235 is revised to read as follows:
Sec. 905.235 Assessment rate.
On and after August 1, 2013, an assessment rate of $0.009 per 4/5
bushel carton or equivalent is established for Florida citrus covered
under the order.
Dated: November 5, 2013.
Rex A. Barnes,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2013-27018 Filed 11-12-13; 8:45 am]
BILLING CODE 3410-02-P