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.

Proposed Rules Federal Register

41608

Vol. 65, No. 130

Thursday, July 6, 2000

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 905

[Docket No. FV00–905–1 PR]

Oranges, Grapefruit, Tangerines and

Tangelos Grown in Florida; Increased

Assessment Rate

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Proposed rule.

SUMMARY: This rule would increase the

assessment rate established for the

Citrus Administrative Committee

(Committee) for the 2000–2001 and

subsequent fiscal periods from $0.00385

to $0.0055 per 4/5-bushel carton of

citrus handled. The Committee locally

administers the marketing order which

regulates the handling of oranges,

grapefruit, tangerines, and tangelos

grown in Florida. Authorization to

assess citrus handlers enables the

Committee to incur expenses that are

reasonable and necessary to administer

the program. The fiscal period begins on

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

August 7, 2000.

ADDRESSES: Interested persons are

invited to submit written comments

concerning this rule. Comments must be

sent to the Docket Clerk, Marketing

Order Administration Branch, Fruit and

Vegetable Programs, AMS, USDA, room

2525–S, P.O. Box 96456, Washington,

DC 20090–6456; Fax: (202) 720–5698; or

E-mail: moab.docketclerk@usda.gov.

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, or can be viewed

at: http://www.ams.usda.gov/fv/

moab.html.

FOR FURTHER INFORMATION CONTACT:

William Pimental, Marketing Specialist,

Southeast Marketing Field Office, Fruit

and Vegetable Programs, AMS, USDA,

P.O. Box 2276, Winter Haven, FL

33883–2276; 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, P.O. 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, P.O. Box 96456, room

2525–S, Washington, DC 20090–6456;

telephone: (202) 720–2491, Fax: (202)

720–5698, or E-mail:

Jay.Guerber@usda.gov.

SUPPLEMENTARY INFORMATION: This rule

is issued under Marketing Agreement

No. 84 and 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 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 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

oranges, grapefruit, tangerines, and

tangelos beginning on August 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 would increase the

assessment rate established for the

Committee for the 2000–2001 and

subsequent fiscal periods from $0.00385

to $0.0055 per 4/5-bushel carton or

equivalent of citrus.

The Florida citrus 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

citrus. 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 1998–99 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 May 26, 2000,

and unanimously recommended 2000–

2001 expenditures of $255,500 and an

assessment rate of $0.0055 per 4/5-

bushel carton or equivalent of citrus. In

comparison, last year’s budgeted

expenditures were $245,425. The

assessment rate of $0.0055 is $0.00165

higher than the rate currently in effect.

The quantity of assessable oranges,

grapefruit, tangerines, and tangelos for

Federal Register / Vol. 65, No. 130 / Thursday, July 6, 2000 / Proposed Rules 41609

the 2000–2001 fiscal period is expected

to be 55,000,000 4/5 bushel cartons. The

Committee projected 60,500,000

assessable 4/5-bushel cartons of citrus

for the 1999–2000 fiscal period. The

actual quantity of assessable citrus for

1999–2000 is expected to be 53,500,000

4/5-bushel cartons. Because of this

shortfall, the Committee has had to use

money from its authorized reserve fund

to cover approved expenses. The

increase in assessment rate for 2000–

2001 is needed to bring the reserve fund

to an acceptable level, and to cover

increases in the Committee’s budgeted

expenditures for the 2000–2001 fiscal

period.

The major expenditures

recommended by the Committee for the

2000–2001 fiscal period include

$118,300 for salaries, $36,000 for

Manifest Department-FDACS, $19,900

for insurance and bonds, $18,500 for

retirement plan, $12,450 for

miscellaneous and reserve, and $10,000

for telephone. Budgeted expenses for

these items in 1999–2000 were

$118,300, $14,000, $19,900, $12,600,

$9,075, and $9,000, respectively.

The assessment rate recommended by

the Committee was derived by dividing

anticipated expenses by expected

shipments of Florida citrus. With citrus

shipments for the year estimated at 55

million cartons, assessment income

should total $302,500. Income derived

from handler assessments, along with

interest income and funds from the

Committee’s authorized reserve, would

be adequate to cover budgeted expenses.

Funds in the reserve (approximately

$111,371) would be kept within the

maximum permitted by the order (onehalf of one fiscal period’s expenses;

§ 905.42).

The proposed assessment rate would

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 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 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 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 2000–2001

budget and those for subsequent fiscal

periods would 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 initial 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 80

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.

Based on the Florida Agricultural

Statistical Service and Committee data

for the 1998–99 season, the average

annual f.o.b. price for fresh Florida

citrus during the 1998–99 season was

$8.66 per 4/5-bushel carton for all

shipments, and the total shipments for

the 1998–99 season were 63.6 million

cartons of citrus. Approximately 68

percent of the handlers handled 93

percent of Florida citrus shipments.

Using information provided by the

Committee, about 60 percent of citrus

handlers could be considered small

businesses under the SBA definition.

Although specific data is unavailable,

the Department believes that the

majority of Florida citrus producers may

be classified as small entities.

This rule would increase the

assessment rate established for the

Committee and collected from handlers

for the 2000–2001 and subsequent fiscal

periods from $0.00385 to $0.0055 per 

4/5-bushel carton of citrus. The

Committee unanimously recommended

2000–2001 expenditures of $255,500

and an assessment rate of $0.0055 per 

4/5-bushel carton. The proposed

assessment rate of $0.0055 is $0.00165

higher than the current rate. The

quantity of assessable citrus for the

2000–2001 fiscal period is estimated at

55 million 4/5-bushel cartons. Thus, the

$0.0055 rate should provide $302,500 in

assessment income. Income derived

from handler assessments, along with

interest income and funds from the

Committee’s authorized reserve, would

be adequate to cover budgeted expenses.

Assessment funds in excess of those

needed for approved expenses would be

used to increase the Committee’s

operating reserve.

The major expenditures

recommended by the Committee for the

2000–2001 fiscal period include

$118,300 for salaries, $36,000 for

Manifest Department—FDACS, $19,900

for insurance and bonds, $18,500 for

retirement plan, $12,450 for

miscellaneous and reserve, and $10,000

for telephone. Budgeted expenses for

these items in 1999–2000 were

$118,300, $14,000, $19,900, $12,600,

$9,075, and $9,000, respectively.

The quantity of assessable oranges,

grapefruit, tangerines, and tangelos for

the 2000–2001 fiscal period is expected

to be much less than in previous

seasons. The Committee projected

60,500,000 assessable 4/5-bushel

cartons of citrus for the 1999–2000 fiscal

period. The actual quantity of assessable

citrus for 1999–2000 is expected to be

53,500,000 4/5-bushel cartons. Because

of this shortfall, the Committee has had

to use money from its authorized

reserve fund to cover approved

expenses. In an effort to recover from

assessment income shortfalls in 1997–

98 and 1999–2000, and to bring the

reserve fund to an acceptable level, the

Committee voted unanimously to

increase its assessment rate.

The Committee reviewed and

unanimously recommended 2000–2001

expenditures of $255,500 that included

increases in administrative costs. Prior

to arriving at this budget, the Committee

considered information from various

sources, such as the Budget

Subcommittee, the Grapefruit

Subcommittee, and the Regulatory

Subcommittee. Alternative expenditure

levels were discussed by these groups,

based upon the estimated number of

assessable cartons of citrus. The

assessment rate of $0.0055 per 4/5-

bushel carton of assessable citrus was

recommended to provide enough

income to cover the Committee’s

estimated expenses for 2000–2001 and

to increase its operating reserve. This

rate is expected to generate $302,500.

This is $47,000 above the anticipated

expenses, which the Committee

determined to be acceptable.

A review of historical information and

preliminary information pertaining to

41610 Federal Register / Vol. 65, No. 130 / Thursday, July 6, 2000 / Proposed Rules

the upcoming fiscal period indicates

that the grower price for the 2000–2001

fiscal period could range between $4.10

and $19.65 per 4/5-bushel carton of

oranges, grapefruit, tangerines, and

tangelos. Therefore, the estimated

assessment revenue for the 2000–2001

fiscal period as a percentage of total

grower revenue could range between .03

and .13 percent.

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. Some of the additional costs

may be passed on to producers.

However, these costs would be offset by

the benefits derived by the operation of

the marketing order. In addition, the

Committee’s meeting was widely

publicized throughout the citrus

production area and all interested

persons were invited to attend the

meeting and participate in Committee

deliberations on all issues. Like all

Committee meetings, the May 26, 2000,

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

information on the regulatory and

informational impacts of this action on

small businesses.

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.

The Department has not identified

any relevant Federal rules that

duplicate, overlap, or conflict with this

rule.

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.

A 30-day comment period is provided

to allow interested persons to respond

to this proposed rule. Thirty days is

deemed appropriate because: (1) The

2000–2001 fiscal period begins on

August 1, 2000, and the marketing order

requires that the rate of assessment for

each fiscal period apply to all assessable

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, Marketing agreements,

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

1. The authority citation for 7 CFR

part 905 continues to read as follows:

Authority: 7 U.S.C. 601–674.

2. Section 905.235 is revised to read

as follows:

§ 905.235 Assessment rate.

On and after August 1, 2000, an

assessment rate of $0.0055 per 4/5-

bushel carton or equivalent is

established for assessable Florida citrus

covered under the order.

Dated: June 27, 2000.

Robert C. Keeney,

Deputy Administrator, Fruit and Vegetable

Programs.

[FR Doc. 00–16991 Filed 7–5–00; 8:45 am]

BILLING CODE 3410–02–P

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG–107872–99]

RIN 1545–AX18

Coordination of Sections 755 and 1060

Relating to Allocation of Basis

Adjustments Among Partnership

Assets; Hearing Cancellation

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Cancellation of notice of public

hearing on proposed rulemaking.

SUMMARY: This document provides

notice of cancellation of a public

hearing on proposed regulations relating

to the allocation of basis adjustments

among partnership assets under section

755.

DATES: The public hearing originally

scheduled for Wednesday, July 12,

2000, at 10 a.m., is cancelled.

FOR FURTHER INFORMATION CONTACT:

LaNita Van Dyke of the Regulations

Unit, Assistant Chief Counsel

(Corporate), (202) 622–7190 (not a tollfree number).

SUPPLEMENTARY INFORMATION: A notice

of proposed rulemaking and/or notice of

public hearing that appeared in the

Federal Register on Wednesday, April

5, 2000, (65 FR 17829), announced that

a public hearing was scheduled for

Wednesday, July 12, 2000, at 10 a.m., in

room 2716, Internal Revenue Building,

1111 Constitution Avenue, NW.,

Washington, DC. The subject of the

public hearing is proposed regulations

under section 755 of the Internal

Revenue Code. The public comment

period for these proposed regulations

expires on Wednesday, July 5, 2000.

The outlines of topics to be addressed

at the hearing were due on Wednesday,

June 21, 2000.

The notice of proposed rulemaking

and/or notice of public hearing,

instructed those interested in testifying

at the public hearing to submit a request

to speak and an outline of the topics to

be addressed. As of Tuesday, June 27,

2000, no one has requested to speak.

Therefore, the public hearing scheduled

for Wednesday, July 12, 2000, is

cancelled.

Cynthia Grigsby,

Chief, Regulations Unit, Assistant Chief

Counsel (Corporate).

[FR Doc. 00–16972 Filed 7–5–00; 8:45 am]

BILLING CODE 4830–01–U

PENSION BENEFIT GUARANTY

CORPORATION

29 CFR Parts 4022 and 4044

RIN 1212–AA96

Title IV Aspects of Cash Balance Plans

With Variable Indices

AGENCY: Pension Benefit Guaranty

Corporation.

ACTION: Request for public comment.

SUMMARY: Many cash balance plans use

variable indices to determine future

retirement benefits. If such a plan

terminates in a distress or involuntary

termination under Title IV of ERISA, the

PBGC must make assumptions—as of

the plan’s termination date—about the

future performance of the variable

index. The PBGC is soliciting public

comment on what assumptions it

should make about that future

performance.

DATES: Comments must be received on

or before September 22, 2000.

ADDRESSES: Comments may be mailed to

the Office of the General Counsel,

Pension Benefit Guaranty Corporation,