[Federal Register Volume 61, Number 141 (Monday, July 22, 1996)]
[Rules and Regulations]
[Pages 37810-37812]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-18465]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 906

[Docket No. FV96-906-1 IFR]


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

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: This interim final rule establishes an assessment rate for the 
Texas Valley Citrus Committee (Committee) under Marketing Order No. 906 
for the 1996-97 and subsequent fiscal period. 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.

DATES: Effective on August 1, 1996. Comments received by August 21, 
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: 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, D.C. 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 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, handlers 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

[[Page 37811]]

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 of 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 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 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.
    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 business.
    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. 
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 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) 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 906

    Marketing agreements, Grapefruit, 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 THE LOWER RIO GRANDE 
VALLEY IN TEXAS

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

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

    2. Section 906.235 is added to read as follows:

    Note: This section will appear in the Code of Federal 
Regulations.


Sec. 906.235  Assessment rate.

    On and after August 1, 1996, an assessment rate of $0.125 per 7/10 
bushel carton is established for oranges

[[Page 37812]]

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

    Dated: July 15, 1996.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 96-18465 Filed 7-19-96; 8:45 am]
BILLING CODE 3410-02-P