[Federal Register Volume 65, Number 108 (Monday, June 5, 2000)]
[Rules and Regulations]
[Pages 35561-35563]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-13980]



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Rules and Regulations
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Federal Register / Vol. 65, No. 108 / Monday, June 5, 2000 / Rules 
and Regulations

[[Page 35561]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 915

[Docket No. FV00-915-2 FR]


Avocados Grown in South 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 
Avocado Administrative Committee (Committee) for the 2000-2001 and 
subsequent fiscal periods from $0.16 per 55-pound bushel container or 
equivalent to $0.19 per 55-pound bushel container or equivalent of 
avocados handled. The Committee is responsible for local administration 
of the marketing order, which regulates the handling of avocados grown 
in South Florida. Authorization to assess avocado handlers enables the 
Committee to incur expenses that are reasonable and necessary to 
administer the program. The fiscal period began on April 1 and ends 
March 31. The assessment rate will remain in effect indefinitely unless 
modified, suspended, or terminated.

EFFECTIVE DATE: June 6, 2000.

FOR FURTHER INFORMATION CONTACT: Doris Jamieson, Marketing Specialist, 
Southeast Marketing Field Office, Marketing Order Administration 
Branch, Fruit and Vegetable Programs, AMS, USDA, PO Box 2276, Winter 
Haven, Florida 33883; telephone: (863) 299-4770, Fax: (863) 299-5169; 
or George Kelhart, Technical Advisor, Marketing Order Administration 
Branch, Fruit and Vegetable Programs, AMS, USDA, room 2525-S, PO Box 
96456, Washington, DC 20090-6456; telephone: (202) 720-2491, Fax: (202) 
720-5698.
    Small businesses may request information on complying with this 
regulation by contacting Jay Guerber, Marketing Order Administration 
Branch, Fruit and Vegetable Programs, AMS, USDA, PO Box 96456, room 
2525-S, Washington, DC 20090-6456; telephone: (202) 720-2491, Fax: 
(202) 720-5698, or E-mail: <a href="/cdn-cgi/l/email-protection#672d061e4920120215050215271214030649000811"><span class="__cf_email__" data-cfemail="400a21396e0735253222253200353324216e272f36">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing 
Agreement No. 121 and Order No. 915, both as amended (7 CFR part 915), 
regulating the handling of avocados grown in South 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 12988, Civil 
Justice Reform. Under the marketing order now in effect, Florida 
avocado 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 
avocados beginning April 1, 2000, 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 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.
    This rule increases the assessment rate established for the 
Committee for the 2000-2001 and subsequent fiscal periods from $0.16 
per 55-pound bushel container or equivalent to $0.19 per 55-pound 
bushel container or equivalent of avocados.
    The Florida avocado 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 
Florida avocados. 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 1999-2000 and subsequent fiscal periods, the Committee 
recommended, and the Department approved, an assessment rate that would 
continue in effect from fiscal period to fiscal period unless modified, 
suspended, or terminated by the Secretary upon recommendation and 
information submitted by the Committee or other information available 
to the Secretary.
    The Committee met on March 8, 2000, and unanimously recommended 
2000-2001 expenditures of $186,333 and an assessment rate of $0.19 per 
55-pound bushel container or equivalent of avocados. In comparison, 
last year's budgeted expenditures were $164,335. The assessment rate of 
$0.19 is $0.03 higher than the rate currently in effect.
    The Florida Lime and the Florida Avocado Administrative Committees 
share certain costs (staff, office space, and equipment) for economy 
and efficiency (7 CFR parts 911 and 915). Each Committee's share of 
these costs is based upon the amount of work performed and time devoted 
to administration. To reflect its increased share of the workload and 
resources, and Avocado Administrative Committee needs to fund a greater 
share of the costs. An increased budget for avocados is needed to 
accomplish this.
    The major expenditures recommended by the Committee for the

[[Page 35562]]

2000-2001 year include $69,000 for salaries, $35,000 for national 
enforcement, $20,000 for research, $14,898 for employee benefits, and 
$13,782 for insurance and bonds. Budgeted expenses for these items in 
1999-2000 were $46,000, $27,000, $39,500, $10,040, and $8,955, 
respectively.
    The assessment rate recommended by the Committee was derived by 
dividing anticipated expenses by expected shipments of Florida 
avocados. Commodity shipments for the year are estimated at 900,000 55-
pound bushel containers, which should provide $171,000 in assessment 
income. Income derived from handler assessments, along with interest 
income and funds from the Committee's authorized reserve, should be 
adequate to cover budgeted expenses. Funds in the reserve (currently 
$174,431) will be kept within the maximum permitted by the order 
(approximately three fiscal periods' expenses, Sec. 915.41(a)(2)).
    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 will be 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 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 
2000-2001 budget and those for subsequent fiscal periods will be 
reviewed and, as appropriate, approved by the Department.
    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 141 avocado producers in the production 
area and approximately 49 avocado 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 $500,000, and small agricultural service firms are 
defined as those whose annual receipts are less than $5,000,000.
    The average grower price for fresh avocados during the 1998-99 
season was $17.90 per 55-pound bushel box or equivalent for all 
domestic shipments and the total shipments were 890,859 bushels. 
Approximately 10 percent of all handlers handled 90 percent of the 
Florida avocado shipments. Many avocado handlers ship other tropical 
fruit and vegetable products, which are not included in the Committee's 
data but would contribute further to handler receipts.
    Using these prices, about 90 percent of avocado handlers could be 
considered small businesses under the SBA definition. The majority of 
Florida avocado producers also may be classified as small entities.
    This rule increases the assessment rate established for the 
Committee and collected from handlers for the 2000-2001 and subsequent 
fiscal periods from $0.16 per 55-pound bushel container or equivalent 
to $0.19 per 55-pound bushel container or equivalent of avocados. The 
Committee unanimously recommended 2000-2001 expenditures of $186,333 
and an assessment rate of $0.19 per 55-pound bushel container or 
equivalent. The assessment rate of $0.19 is $0.03 higher than the 1999-
2000 rate. The quantity of assessable avocados for the 2000-2001 season 
is estimated at 900,000 55-pound bushel containers. Thus, the $0.19 
rate should provide $171,000 in assessment income. Income derived from 
handler assessments, along with interest income and funds from the 
Committee's authorized reserve, should be adequate to cover budgeted 
expenses.
    The major expenditures recommended by the Committee for the 2000-
2001 fiscal year include $69,000 for salaries, $35,000 for national 
enforcement, $20,000 for research, $14,898 for employee benefits, and 
$13,782 for insurance and bonds. Budgeted expenses for these items in 
1999-2000 were $46,000, $27,000 $39,500, $10,040, and $8,955, 
respectively.
    The Florida Lime and the Florida Avocado Administrative Committees 
share certain costs (staff, office space, and equipment) for economy 
and efficiency (7 CFR parts 911 and 915). Each Committee's share of 
these costs is based upon the amount of work performed and time devoted 
to administration. To reflect its increased share of the workload and 
resources, the Avocado Administrative Committee needs to fund a greater 
share of the costs. An increased budget for avocados is needed to 
accomplish this.
    The Committee reviewed and unanimously recommended 2000-2001 
expenditures of $186,333 which included increases in administrative and 
office salaries, and national enforcement. Prior to arriving at this 
budget, the Committee considered information from various sources, such 
as the Committee's Budget Subcommittee. Alternative expenditure levels 
were discussed. However, the Committee ultimately determined that the 
recommended expenditures were appropriate to reflect its increased 
share of the workload and resource demands. The assessment rate of 
$0.19 per 55-pound bushel container or equivalent of assessable 
avocados was then determined by dividing the total recommended budget 
by the quantity of assessable avocados, estimated at 900,000 55-pound 
bushel containers or equivalents for the 2000-2001 fiscal year. This is 
approximately $11,000 below the anticipated expenses, which the 
Committee determined to be acceptable.
    A review of historical information and preliminary information 
pertaining to the upcoming fiscal year indicates that the average 
grower price for the 2000-2001 season could be close to $17.90 per 55-
pound bushel container or equivalent of avocados. Therefore, the 
estimated assessment revenue for the 2000-2001 fiscal year as a 
percentage of total grower revenue could be one 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 avocado industry and all interested persons were 
invited to attend the meeting and participate in Committee 
deliberations on all issues.

[[Page 35563]]

Like all Committee meetings, the March 8, 2000, 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 avocado 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.
    The Department 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 April 17, 2000 (65 FR 20382). Copies of the proposed rule 
were also mailed or sent via facsimile to all Florida avocado handlers. 
Finally, the proposal was made available through the Internet by the 
Office of the Federal Register. A 30-day comment period ending May 17, 
2000, 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) Handlers 
are already receiving 2000-2001 crop avocados from growers;(2) the 
fiscal period began April 1, 2000, and the marketing order requires 
that the assessment rate apply for each fiscal period to all avocados 
handled during such fiscal period; (3) the Committee needs sufficient 
funds to pay its expenses which are incurred on a continuous basis; (4) 
handlers are aware of this rule which was unanimously recommended by 
the Committee at a public meeting, and is similar to other assessment 
rate actions issued in past years; and (5) a 30-day comment period was 
provided for in the proposed rule and no comments were received.

List of Subjects in 7 CFR Part 915

    Avocados, Marketing agreements, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 915 is 
amended as follows:

PART 915--AVOCADOS GROWN IN SOUTH FLORIDA

    1. The authority citation for 7 CFR part 915 continues to read as 
follows:

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


    2. Section 915.235 is revised to read as follows:


Sec. 915.235  Assessment rate.

    On and after April 1, 2000, an assessment rate of $0.19 per 55-
pound bushel container or equivalent is established for avocados grown 
in South Florida.

    Dated: May 30, 2000.
Robert C. Keeney,
Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 00-13980 Filed 6-2-00; 8:45 am]
BILLING CODE 3410-02-P


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