[Federal Register: September 29, 2003 (Volume 68, Number 188)]
[Rules and Regulations]               
[Page 55807-55809]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr29se03-1]                         


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Rules and Regulations
                                                Federal Register
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[[Page 55807]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 905

[Docket No. FV03-905-4 FR]

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

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: This rule increases the assessment rate established for the 
Citrus Administrative Committee (Committee) for the 2003-04 and 
subsequent fiscal periods from $0.005 to $0.006 per \4/5\ bushel carton 
of oranges, grapefruit, tangerines, and tangelos handled. The Committee 
locally administers the marketing order, which regulates the handling 
of oranges, grapefruit, tangerines, and tangelos grown in Florida. 
Authorization to assess Florida citrus handlers enables the Committee 
to incur expenses that are reasonable and necessary to administer the 
program. The fiscal period began August 1 and ends July 31. The 
assessment rate will remain in effect indefinitely unless modified, 
suspended, or terminated.

EFFECTIVE DATE: September 30, 2003.

FOR FURTHER INFORMATION CONTACT: William G. Pimental, Southeast 
Marketing Field Office, Marketing Order Administration Branch, Fruit 
and Vegetable Programs, AMS, USDA, 799 Overlook Drive, Suite A, Winter 
Haven, Florida 33884-1671; telephone: (863) 324-3375, Fax: (863) 325-
8793; or George Kelhart, Technical Advisor, Marketing Order 
Administration Branch, Fruit and Vegetable Programs, AMS, USDA, 1400 
Independence Avenue SW., STOP 0237, Washington, DC 20250-0237; 
telephone: (202) 720-2491, Fax: (202) 720-8938.
    Small businesses may request information on complying with this 
regulation by contacting Jay Guerber, Marketing Order Administration 
Branch, Fruit and Vegetable Programs, AMS, USDA, 1400 Independence 
Avenue SW., STOP 0237, Washington, DC 20250-0237; telephone: (202) 720-2491, Fax: (202) 720-8938, or E-mail: Jay.Guerber@usda.gov.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing 
Agreement No. 84 and Marketing Order No. 905, both 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 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, 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 is applicable to all assessable oranges, grapefruit, 
tangerines, and tangelos grown in Florida, beginning August 1, 2003, 
and continue 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 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 rule increases the assessment rate established for the 
Committee for the 2003-04 and subsequent fiscal periods from $0.005 per 
4/5 bushel carton to $0.006 per 4/5 bushel carton of oranges, 
grapefruit, tangerines, and tangelos grown in Florida.
    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 
oranges, grapefruit, tangerines, and tangelos. 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 2001-02 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 July 1, 2003, and unanimously recommended 
2003-04 expenditures of $247,000 and an assessment rate of $0.006 per 
4/5 bushel of oranges, grapefruit, tangerines, and tangelos grown in 
Florida based on a crop estimate of 45 million 4/5 bushels. In 
comparison, last year's budgeted expenditures were $250,700. The 
assessment rate of $0.006 is $0.001 higher than the $0.005 rate 
previously in effect. This increase reflects the Committee's 
expectation of lower shipments in the coming year resulting in less 
assessment income to cover expenses. In addition, the Committee wants 
to increase the monies available in their reserve fund.
    The major expenditures recommended by the Committee for the 2003-04 
fiscal year include $126,000 for salaries, $25,000 for Manifests-USDA-
FDACS, $21,000 for insurance and

[[Page 55808]]

bonds, $19,500 for retirement plan, and $10,100 for payroll taxes. 
Budgeted expenses for these items in 2002-03 were $126,000, $25,000, 
$21,000, $19,500, and $10,100, respectively.
    The assessment rate recommended by the Committee was derived by 
dividing anticipated expenses by expected shipments of oranges, 
grapefruit, tangerines, and tangelos. As mentioned earlier, Florida 
citrus shipments for the year are estimated at 45 million 4/5 bushels, 
which should provide $270,000 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 currently total approximately $23,091 
and are 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(a).
    The assessment rate established in this rule continues 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 is in effect 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 USDA. 
Committee meetings are open to the public and interested persons may 
express their views at these meetings. USDA 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 2003-04 budget and those 
for subsequent fiscal periods will be reviewed and, as appropriate, 
approved by USDA.

Final Regulatory Flexibility Analysis

    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. Accordingly, AMS has 
prepared this final regulatory flexibility analysis.
    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 11,000 producers of oranges, grapefruit, 
tangerines, and tangelos in the production area and approximately 75 
handlers subject to regulation under the marketing order. Small 
agricultural producers are defined by the Small Business Administration 
(13 CFR 121.201) as those having annual receipts less than $750,000, 
and small agricultural service firms are defined as those whose annual 
receipts are less than $5,000,000.
    Based on industry and Committee data, the average annual f.o.b. 
price for fresh Florida oranges, grapefruit, tangerines, and tangelos 
during the 2002-03 season was approximately $8.55 per 4/5 bushel 
carton, and total fresh shipments for the 2003-04 season are estimated 
at 45 million cartons of oranges, grapefruit, tangerines, and tangelos. 
Approximately 20 handlers handled 65 percent of Florida's citrus 
shipments in 2002-03. Considering the average f.o.b. price, at least 55 
percent of the orange, grapefruit, tangerine, and tangelo handlers 
could be considered small businesses under SBA's definition. Therefore, 
the majority of Florida citrus handlers may be classified as small 
entities. The majority of Florida citrus producers may also be 
classified as small entities.
    This rule increases the assessment rate established for the 
Committee and collected from handlers for the 2003-04 and subsequent 
fiscal periods from $0.005 to $0.006 per 4/5 bushel carton of oranges, 
grapefruit, tangerines, and tangelos. The Committee unanimously 
recommended 2003-04 expenditures of $247,000 and an assessment rate of 
$0.006 per 4/5 bushel carton. The assessment rate of $0.006 is $0.001 
higher than the current rate. The quantity of assessable oranges, 
grapefruit, tangerines, and tangelos for the 2003-04 season is 
estimated at 45 million 4/5 bushel cartons. Thus, the $0.006 rate 
should provide $270,000 in assessment income and be adequate to meet 
this year's expenses.
    The major expenditures recommended by the Committee for the 2003-04 
fiscal period include $126,000 for salaries, $25,000 for Manifests-
USDA-FDACS, $21,000 for insurance and bonds, $19,500 for retirement 
plan, and $10,100 for payroll taxes. Budgeted expenses for these items 
in 2002-03 were $126,000, $25,000, $21,000, $19,500, and $10,100, 
respectively.
    The increase in the assessment rate is due to the Committee's 
expectation that shipments in the coming year will be lower affecting 
assessment income. The Committee also wants to replenish its reserve 
fund.
    The Committee reviewed and unanimously recommended 2003-04 
expenditures of $247,000. Prior to arriving at this budget, the 
Committee considered information from various sources including the 
Committee's Budget Subcommittee. Alternative assessment rates were 
discussed based on different estimates of assessable cartons and budget 
expenses. The assessment rate of $0.006 per 4/5 bushel carton of 
assessable oranges, grapefruit, tangerines, and tangelos was then 
determined by dividing the total recommended budget by the quantity of 
assessable commodity, estimated at 45 million 4/5 bushel cartons for 
the 2003-04 season taking into consideration the need for additional 
funds to increase reserves. This assessment rate will yield 
approximately $23,000 over anticipated budgeted expenses with the 
excess funds to be earmarked for the reserve fund.
    A review of historical information and preliminary information 
pertaining to the upcoming 2003-04 fiscal period indicates that the 
grower price for the 2003-04 season could range between $1.80 and 
$20.40 per 4/5 bushel of oranges, grapefruit, tangerines, and tangelos. 
Therefore, the estimated assessment revenue for the 2003-04 fiscal 
period as a percentage of total grower revenue could range between .03 
and .33 percent.
    This action increases the assessment obligation imposed on 
handlers. While assessments impose some additional costs on handlers, 
the costs are minimal and uniform on all handlers. Some of the 
additional costs may be passed on to producers. However, these costs 
are offset by the benefits derived by 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 1, 
2003, meeting was a public meeting and all entities, both large and 
small, were able to express views on this issue.
    This rule imposes 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

[[Page 55809]]

duplication by industry and public sector agencies.
    USDA has not identified any relevant Federal rules that duplicate, 
overlap, or conflict with this rule.
    A proposed rule concerning this action was published in the Federal 
Register on July 28, 2003 (68 FR 44237). Copies of the proposed rule 
were also mailed or sent via facsimile to all Florida citrus handlers. 
Finally, the proposal was made available through the Internet by the 
Office of the Federal Register and USDA. A 30-day comment period ending 
August 27, 2003, was provided for interested persons to respond to the 
proposal. No comments were received.
    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/fv/moab.html.
 Any questions about the compliance 
guide should be sent to Jay Guerber at the previously mentioned address 
in the FOR FURTHER INFORMATION CONTACT section.
    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 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 
2003-04 fiscal period began August 1, 2003, and the marketing order 
requires that the rate of assessment for each fiscal period apply to 
all assessable citrus fruit 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 actions issued in past 
years.

List of Subjects in 7 CFR Part 905

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


0
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

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, 2003, an assessment rate of $0.006 per 4/5 
bushel carton or equivalent is established for assessable Florida 
citrus covered under the order.

    Dated: September 23, 2003.
A.J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 03-24538 Filed 9-26-03; 8:45 am]

BILLING CODE 3410-02-P