Federal Register / Vol. 72, No. 10 / Wednesday, January 17, 2007 / Rules and Regulations 1913 

list of quarantined areas based on 

projections of the natural spread of PSB 

that make it reasonable to believe that 

the pest is present in those States. 

Comments on the interim rule were 

required to be received on or before 

December 4, 2006. We did not receive 

any comments. Therefore, for the 

reasons given in the interim rule, we are 

adopting the interim rule as a final rule. 

This action also affirms the 

information contained in the interim 

rule concerning Executive Order 12866 

and the Regulatory Flexibility Act, 

Executive Orders 12372 and 12988, and 

the Paperwork Reduction Act. 

Further, for this action, the Office of 

Management and Budget has waived its 

review under Executive Order 12866. 

List of Subjects in 7 CFR Part 301 

Agricultural commodities, Plant 

diseases and pests, Quarantine, 

Reporting and recordkeeping 

requirements, Transportation. 

PART 301—DOMESTIC QUARANTINE 

NOTICES 

■ Accordingly, we are adopting as a 

final rule, without change, the interim 

rule that amended 7 CFR part 301 and 

that was published at 71 FR 58243–

58246 on October 3, 2006. 

Done in Washington, DC, this 10th day of 

January 2007. 

W. Ron DeHaven, 

Administrator, Animal and Plant Health 

Inspection Service. 

[FR Doc. E7–505 Filed 1–16–07; 8:45 am] 

BILLING CODE 3410–34–P 

DEPARTMENT OF AGRICULTURE 

Grain Inspection, Packers and 

Stockyards Administration 

7 CFR Part 868 

RIN 0580–AA92 

Fees for Rice Inspection Services 

AGENCY: Grain Inspection Packers and 

Stockyards Administration, USDA. 

ACTION: Final rule. 

SUMMARY: This final rule revises the 

regulations governing the sampling, 

inspection, weighing, and certification 

for rice by increasing certain fees 

charged for the services by 

approximately 18 percent. Further, the 

rice fees increase an additional 3 

percent each year through fiscal year 

2010 and establish a stowage 

examination fee. These revisions are 

necessary in order to recover, as nearly 

as practicable, the costs of performing 

these services under the Agricultural 

Marketing Act of 1946 (AMA). 

EFFECTIVE DATE: February 16, 2007. 

FOR FURTHER INFORMATION CONTACT: For 

information concerning program 

operations, contact John Giler, Deputy 

Director, Field Management Division, at 

his E-mail address: 

john.c.giler@usda.gov or by telephone 

(202) 720–0228. For information 

concerning fee development contact, 

contact Ms. Patricia Donohue-Galvin, 

Director, Budget and Planning Staff, at 

her E-mail address: patricia.donohuegalvin@usda.gov or by telephone (202) 

690–0231. 

SUPPLEMENTARY INFORMATION: 

Background 

The AMA authorizes official 

inspection and weighing services, on a 

user-fee basis, of rice (7 U.S.C. 1622(h)). 

The AMA provides that reasonable fees 

be collected from the users of the 

services to cover, as nearly as 

practicable, the costs of the services 

rendered. 

The regulations in 7 CFR 868 list user 

fees for inspection and weighing 

services provided by the Grain 

Inspection, Packers and Stockyards 

Administration (GIPSA or Agency). This 

final rule amends the schedule for fees 

and charges for inspection and weighing 

services that GIPSA provides to the rice 

industry to reflect the costs necessary to 

operate the program. 

GIPSA receives no directly 

appropriated funds to provide 

inspection and weighing services. Our 

ability to provide these services 

depends on user fees. 

For our user fees to cover our costs so 

that we can continue to provide services 

and to inform our customers of user fees 

in time for advance planning, we 

proposed to set user fees for our 

inspection and weighing services for 

fiscal years 2007 through 2010. 

GIPSA regularly reviews its user fee 

programs to determine if the fees are 

adequate. While GIPSA continues to 

search for opportunities to reduce its 

costs, the existing fee schedule will not 

generate sufficient revenues to cover 

program costs while maintaining the 

Agency 3-month operating reserve. 

The cost of operating the rice program 

was $4.4 million during fiscal year 2006 

and will increase to approximately $4.8 

million by fiscal year 2010. These cost 

increases are due to estimated annual 

cost of living adjustments for employee 

salaries and benefits, equipment 

replacement, and information 

technology upgrades. Replacing aging 

rice inspection equipment will cost 

approximately $50,000. An information 

technology upgrade to improve 

certification efficiency and program 

management will cost approximately 

$300,000. The estimated costs 

incorporate plans to introduce program 

changes that will better control 

increases in long-term costs. 

We designed the revised fee structure 

to fund the rice program this fiscal year 

and future fiscal years to avoid a 

continued program deficit. The 

combination of the initial 18 percent 

increase and the subsequent annual 3 

percent increases will ultimately cover 

the program’s operating cost and 

replenish the 3-month retained earnings 

balance. 

We are also establishing a new fee for 

stowage examination services that we 

will provide as a service upon request. 

In the April 11, 2006 Federal Register 

(71 FR 18231–18236), we invited 

comments on our proposed rule 

identifying changes to the user fees we 

charge for rice inspection and weighing 

services. We solicited comments 

concerning our proposal for 60 days 

ending June 12, 2006. By the close of the 

comment period, we received two 

comments; one from representatives of a 

rice mill and one from a rice industry 

organization. Both commenters opposed 

the fee increases. The issues raised in 

these comments are discussed below. 

The comments, one from a rice 

industry trade organization and one 

from a rice mill, both opposed the fee 

increases. The trade organization stated 

that the fee increase was excessive and 

would lead to a reduction in service 

requested from the industry, resulting in 

a continuing cycle of fee increases. It 

also said that the fee increase was 

preemptive and premature considering 

the continuing nature of discussion on 

privatization. 

The trade organization indicated that 

GIPSA should eliminate costs, redesign 

its delivery system in certain locations, 

and it offered to work with GIPSA to 

evaluate options. 

The rice mill stated that the fees 

charged by GIPSA were much higher 

than private industry and that the 

increase would force the industry to 

look for alternatives. The mill also 

questioned a statement in the proposed 

rule concerning the voluntary nature of 

the inspection service, because GIPSA is 

the only agency issuing USDA Rice 

Inspection Certificates. 

We disagree with these comments. 

The rice inspection program is 

authorized under the AMA of 1946 and 

funded by user fees. The rice fees were 

last revised in 2003. Since that time, 

costs have increased and retained 

earnings have been depleted. Without 

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1914 Federal Register / Vol. 72, No. 10 / Wednesday, January 17, 2007 / Rules and Regulations 

the fee increase, the program will 

continue at a deficit. 

We have adopted cost savings 

measures; however some aspects of the 

program required upgrades, as 

previously discussed. In fact, we have 

already adopted program changes that 

involved a realignment of staff to better 

control rising personnel costs in the 

future. Further, program costs and 

revenues have been projected out 

through 2010 with fee adjustments on a 

fiscal year basis. This will minimize the 

impact of the needed fee increase and 

will provide the industry a template to 

take into account future rice program 

fees and stabilize program finances. 

While the agency has implemented 

appropriate cost savings measures, we 

have also completed our feasibility 

study that considered restructuring the 

program as part of a government-wide 

initiative designed to improve efficiency 

and cost effectiveness (see OMB 

Circular A–76). Specifically, our 

feasibility study determined that the A–

76 action, which could include the use 

of private vendors to deliver inspection 

services, would not result in any savings 

to the rice inspection program or any 

long term savings to the rice industry. 

Therefore, a revision to the user fees is 

necessary now in order to run the 

inspection program without a deficit. 

Contrary to one of the commenter’s 

statements, rice inspection is a 

voluntary service. Applicants in fact 

may choose to receive non-federal 

inspection services. While it is true that 

GIPSA is the only entity that issues 

USDA Rice Inspection Certificates, such 

certificates are not mandatory. 

Finally, we will continue to work 

with the rice industry, as appropriate, 

concerning this program. 

Miscellaneous Changes 

We made the following minor 

miscellaneous changes in the regulation 

to add clarity. In Table 2 of 7 CFR 

868.91, the fees listed as (a) and (b) 

under Stowage Examination are the 

same, so we added the actual fee in row 

(b) instead of implying it and only 

listing it in row (a). In footnote 2 of 

Table 2, we added a reference to the 

GIPSA Web site as an alternative source 

for field office information. We moved 

the text of footnote 3 in Table 2 to the 

introductory text of section 868.91 

because it refers the reader back to the 

fees in Table 1. As a result, we 

renumbered footnote 4 in Table 2 as 

footnote 3. 

Therefore, for the reasons given in 

this proposed rule and in this 

document, we are adopting the 

proposed rule as a final rule, with the 

changes noted in this document. 

Executive Order 12866 and Regulatory 

Flexibility Act 

This rule has been determined to be 

not significant for the purposes of 

Executive Order 12866 and, therefore, 

the Office of Management and Budget 

(OMB) has not reviewed it. 

As required by the Regulatory 

Flexibility Act (RFA); we have 

considered the economic impact of this 

action on small entities. 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. 

We are making these regulatory 

changes because additional user fee 

revenues are needed to cover the costs 

of providing current and future program 

operations and services. 

There are approximately 135 

applicants who receive rice inspection 

and weighing services. A small portion 

of these users are small entities under 

the criteria established by the Small 

Business Administration (13 CFR 

121.201). 

GIPSA has determined that this final 

rule will not have a significant 

economic impact on a substantial 

number of small entities as defined 

under the RFA because the majority of 

applicants that apply for services do not 

meet the requirements of small entities. 

Rice inspection and weighing services 

are provided upon request and the fees 

charged to users of these services vary 

with usage. However, the impact on all 

businesses, including small entities, is 

very similar. Further, the rice industry 

businesses are under no obligation to 

use these services, and, therefore, any 

decision on their part to discontinue the 

use of the services should not prevent 

them from marketing their products. 

GIPSA regularly reviews its user fee 

financed programs to determine if the 

fees are adequate. GIPSA has and will 

continue to seek out cost saving 

opportunities and implement 

appropriate changes to reduce its costs. 

GIPSA’s cost of operating the rice 

program was $4.4 million during fiscal 

year 2006 and will gradually escalate to 

approximately $4.8 million by fiscal 

year 2010. These cost increases through 

fiscal year 2010 are due to employee 

salaries and benefits coupled with 

estimated annual cost of living 

adjustments, the future costs of 

approximately $50,000 to replace aging 

rice inspection equipment in the offices, 

and the need to fund approximately 

$300,000 for an information technology 

upgrade to improve certification 

efficiency and program management. 

The fees cover the GIPSA 

administrative and supervisory costs for 

the performance of official services, 

including personnel compensation and 

benefits, travel, rent, communications, 

utilities, contractual services, supplies, 

and equipment. 

The 18 percent fee increase will 

initially increase the revenue of the 

program. The 3 percent annual increase 

through fiscal year 2010 is expected to 

cover the program’s operating cost and 

replenish the 3-month reserve balance. 

To minimize the impact of a fee 

increase, GIPSA has decided to establish 

fee rates that will collect sufficient 

revenue over time to cover operating 

expenses, while striving to create a 3- 

month operating reserve by FY 2010. 

The following table reflects GIPSA’s 

financial rice program projections 

through fiscal year 2010. GIPSA will 

evaluate the financial status of the rice 

program on a continuous basis to 

determine if it is meeting the goal of 

obtaining a 3-month operating reserve 

by FY 2010, and to determine if other 

adjustments are necessary. 

TABLE 1.—RICE PROGRAM FY06 ACTUAL AND PROJECTIONS

[Million dollars]* 

FY06 FY07 FY08 FY09 FY10 

Revenue ....................................................................................................................................... $4.0 $4.6 $5.0 $5.1 $5.3 

Obligations ................................................................................................................................... 4.4 4.4 4.5 4.6 4.8 

Projected Reserve (Retained Earnings) ...................................................................................... (0.5) (0.3 ) 0.2 0.7 1.2 

Target Reserve (Retained Earnings) (3-months operating obligations) ...................................... 1.1 1.1 1.2 1.2 1.2 

*

Figures may not sum due to rounding. 

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Federal Register / Vol. 72, No. 10 / Wednesday, January 17, 2007 / Rules and Regulations 1915 

GIPSA is also establishing a new fee 

for stowage examination services that 

we will provide as a service upon 

request. 

There is no additional reporting, 

recordkeeping, or other compliance 

requirements imposed upon small 

entities as a result of this final rule. 

Paperwork Reduction Act 

In compliance with the Paperwork 

Reduction Act of 1995 (44 U.S.C. 

Chapter 35), the information collection 

and record keeping requirements 

included in this final rule have been 

approved by OMB under control 

number 0580–0013. 

GIPSA is committed to compliance 

with the Government Paperwork 

Elimination Act, which requires 

Government agencies, in general, to 

provide the public the option of 

submitting information or transacting 

business electronically to the maximum 

extent possible. 

Executive Order 12988 

We reviewed this final rule under 

Executive Order 12988, Civil Justice 

Reform. This action is not intended to 

have retroactive effect. This rule will 

not preempt any state or local laws, 

regulations or policies, unless they 

present an irreconcilable conflict with 

this rule. There are no administrative 

procedures that must be exhausted prior 

to any judicial challenge to the 

provisions of this rule. 

List of Subjects in 7 CFR Part 868 

Administrative practice and 

procedure, Agricultural commodities, 

Reporting and recordkeeping 

requirements, Rice. 

■ For reasons set out in the preamble, 

amend 7 CFR Part 868 as follows: 

PART 868—GENERAL REGULATIONS 

AND STANDARDS FOR CERTAIN 

AGRICULTURAL COMMODITIES 

■ 1. Revise the authority citation for part 

868 to read as follows: 

Authority: 7 U.S.C. 1621–1627. 

■ 2. Revise section 868.91 to read as 

follows: 

§ 868.91 Fees for certain Federal rice 

inspection services. 

The fees shown in Tables 1 and 2 

apply to Federal rice inspection 

services. Fees for other services not 

referenced in Table 2 will be based on 

the non-contract hourly rate listed in 

§ 868.91, Table 1. 

TABLE 1.—HOURLY RATES/UNIT RATE PER CWT 

Service 1 Regular workday 

(Monday–Saturday) 

Nonregular workday 

(Sunday–Holiday) 

Effective February 16, 2007 

Contract (per hour per Service representative) ............................................................................... $54.80 $76.00 

Noncontract (per hour per Service representative) ......................................................................... 66.80 92.10 

Export Port Services (per hundredweight) 2 .................................................................................... 0.066 0.066 

Effective October 1, 2007 

Contract (per hour per Service representative) ............................................................................... $56.40 $78.30 

Noncontract (per hour per Service representative) ......................................................................... 68.80 94.80 

Export Port Services (per hundredweight) 2 .................................................................................... 0.068 0.068 

Effective October 1, 2008 

Contract (per hour per Service representative) ............................................................................... $58.10 $80.70 

Noncontract (per hour per Service representative) ......................................................................... 70.90 97.70 

Export Port Services (per hundredweight) 2 .................................................................................... 0.070 0.070 

Effective October 1, 2009 

Contract (per hour per Service representative) ............................................................................... $59.90 $83.10 

Noncontract (per hour per Service representative) ......................................................................... 73.00 100.60 

Export Port Services (per hundredweight) 2 .................................................................................... 0.072 0.072 

Effective October 1, 2010 

Contract (per hour per Service representative) ............................................................................... $61.70 $85.60 

Noncontract (per hour per Service representative) ......................................................................... 75.20 103.60 

Export Port Services (per hundredweight) 2 .................................................................................... 0.074 0.074 

1Original and appeal inspection services include: Sampling, grading, weighing, and other services requested by the applicant when performed 

at the applicant’s facility. 2Services performed at export port locations on lots at rest. 

TABLE 2.—UNIT RATES SERVICE 1

Effective February 16, 2007 

Inspection for quality (per lot, sublot, or sample inspection): 

(a) Rough rice ...................................................................................................................................................................................... $41.90 

(b) Brown rice for processing ............................................................................................................................................................... 36.00 

(c) Milled rice ........................................................................................................................................................................................ 26.00 

Factor analysis for any single factor (per factor): 

(a) Milling yield (per sample) (Rough or Brown rice) .......................................................................................................................... 32.50 

(b) All other factors (per factor) (all rice) ............................................................................................................................................. 15.60 

Total oil and free fatty acid ...................................................................................................................................................................... 50.80 

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1916 Federal Register / Vol. 72, No. 10 / Wednesday, January 17, 2007 / Rules and Regulations 

TABLE 2.—UNIT RATES SERVICE 1—Continued 

Interpretive line samples: 2

(a) Milling degree (per set) .................................................................................................................................................................. 111.00 

(b) Parboiled light (per sample) ........................................................................................................................................................... 27.20 

Faxed and extra copies of certificates (per copy) ................................................................................................................................... 3.00 

Stowage Examination (service-on-request) 3

(a) Ship (per stowage space) (minimum $252.50 per ship) ................................................................................................................ 50.50 

(b) Subsequent ship examination (same as original) (minimum $151.50 per ship) ........................................................................... 50.50 

(c) Barge (per examination) ................................................................................................................................................................. 40.50 

(d) All other carriers (per examination) ................................................................................................................................................ 15.50 

Effective October 1, 2007 

Inspection for quality (per lot, sublot, or sample inspection): 

(a) Rough rice ...................................................................................................................................................................................... $43.20 

(b) Brown rice for processing ............................................................................................................................................................... 37.10 

(c) Milled rice ........................................................................................................................................................................................ 26.80 

Factor analysis for any single factor (per factor): 

(a) Milling yield (per sample) (Rough or Brown rice) .......................................................................................................................... 33.50 

(b) All other factors (per factor) (all rice) ............................................................................................................................................. 16.10 

Total oil and free fatty acid ...................................................................................................................................................................... 52.30 

Interpretive line samples: 2

(a) Milling degree (per set) .................................................................................................................................................................. 114.30 

(b) Parboiled light (per sample) ........................................................................................................................................................... 28.00 

Faxed and extra copies of certificates (per copy) ................................................................................................................................... 3.00 

Stowage Examination (service-on-request) 3

(a) Ship (per stowage space) (minimum $252.50 per ship) ................................................................................................................ 50.50 

(b) Subsequent ship examination (same as original) (minimum $151.50 per ship) ........................................................................... 50.50 

(c) Barge (per examination) ................................................................................................................................................................. 40.50 

(d) All other carriers (per examination) ................................................................................................................................................ 15.50 

Effective October 1, 2008 

Inspection for quality (per lot, sublot, or sample inspection): 

(a) Rough rice ...................................................................................................................................................................................... $44.50 

(b) Brown rice for processing ............................................................................................................................................................... 38.20 

(c) Milled rice ........................................................................................................................................................................................ 27.60 

Factor analysis for any single factor (per factor): 

(a) Milling yield (per sample) (Rough or Brown rice) .......................................................................................................................... 34.50 

(b) All other factors (per factor) (all rice) ............................................................................................................................................. 16.60 

Total oil and free fatty acid ...................................................................................................................................................................... 53.90 

Interpretive line samples: 2

(a) Milling degree (per set) .................................................................................................................................................................. 117.70 

(b) Parboiled light (per sample) ........................................................................................................................................................... 28.80 

Faxed and extra copies of certificates (per copy) ................................................................................................................................... 3.00 

Stowage Examination (service-on-request) 3

(a) Ship (per stowage space) (minimum $252.50 per ship) ................................................................................................................ 50.50 

(b) Subsequent ship examination (same as original) (minimum $151.50 per ship) ........................................................................... 50.50 

(c) Barge (per examination) ................................................................................................................................................................. 40.50 

(d) All other carriers (per examination) ................................................................................................................................................ 15.50 

Effective October 1, 2009 

Inspection for quality (per lot, sublot, or sample inspection): 

(a) Rough rice ...................................................................................................................................................................................... $45.80 

(b) Brown rice for processing ............................................................................................................................................................... 39.40 

(c) Milled rice ........................................................................................................................................................................................ 28.40 

Factor analysis for any single factor (per factor): 

(a) Milling yield (per sample) (Rough or Brown rice) .......................................................................................................................... 35.50 

(b) All other factors (per factor) (all rice) ............................................................................................................................................. 17.10 

Total oil and free fatty acid ...................................................................................................................................................................... 55.50 

Interpretive line samples: 2

(a) Milling degree (per set) .................................................................................................................................................................. 121.30 

(b) Parboiled light (per sample) ........................................................................................................................................................... 29.70 

Faxed and extra copies of certificates (per copy) ................................................................................................................................... 3.00 

Stowage Examination (service-on-request) 3

(a) Ship (per stowage space) (minimum $252.50 per ship) ................................................................................................................ 50.50 

(b) Subsequent ship examination (same as original) (minimum $151.50 per ship) ........................................................................... 50.50 

(c) Barge (per examination) ................................................................................................................................................................. 40.50 

(d) All other carriers (per examination) ................................................................................................................................................ 15.50 

Effective October 1, 2010 

Inspection for quality (per lot, sublot, or sample inspection): 

(a) Rough rice ...................................................................................................................................................................................... $47.20 

(b) Brown rice for processing ............................................................................................................................................................... 40.60 

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Federal Register / Vol. 72, No. 10 / Wednesday, January 17, 2007 / Rules and Regulations 1917 

TABLE 2.—UNIT RATES SERVICE 1—Continued 

(c) Milled rice ........................................................................................................................................................................................ 29.30 

Factor analysis for any single factor (per factor): 

(a) Milling yield (per sample) (Rough or Brown rice) .......................................................................................................................... 36.60 

(b) All other factors (per factor) (all rice) ............................................................................................................................................. 17.60 

Total oil and free fatty acid ...................................................................................................................................................................... 57.20 

Interpretive line samples: 2

(a) Milling degree (per set) .................................................................................................................................................................. 124.90 

(b) Parboiled light (per sample) ........................................................................................................................................................... 30.60 

Faxed and extra copies of certificates (per copy) ................................................................................................................................... 3.00 

Stowage Examination (service-on-request) 3

(a) Ship (per stowage space) (minimum $252.50 per ship) ................................................................................................................ 50.50 

(b) Subsequent ship examination (same as original) (minimum $151.50 per ship) ........................................................................... 50.50 

(c) Barge (per examination) ................................................................................................................................................................. 40.50 

(d) All other carriers (per examination) ................................................................................................................................................ 15.50 

1Fees apply to determinations (original or appeals) for kind, class, grade, factor analysis, equal to type, milling yield, or any other quality designation as defined in the U.S. Standards for Rice or applicable instructions, whether performed singly or in combination at other than at the applicant’s facility. 2 Interpretive line samples may be purchased from the U.S. Department of Agriculture, GIPSA, FGIS, Technical Services Division, 10383 North 

Ambassador Drive, Kansas City, Missouri 64153–1394. Interpretive line samples also are available for examination at selected FGIS field offices. 

A list of field offices may be obtained from the Director, Field Management Division, USDA, GIPSA, FGIS, 1400 Independence Avenue, SW., 

STOP 3630, Washington, DC 20250–3630 or from the GIPSA Web site (http://www.gipsa.usda.gov). The interpretive line samples illustrate the 

lower limit for milling degrees only and the color limit for the factor ‘‘Parboiled Light’’ rice. 3 If performed outside of normal business hours, 11⁄2 times the applicable unit fee will be charged. 

James E. Link, 

Administrator, Grain Inspection, Packers and 

Stockyards Administration. 

[FR Doc. 07–153 Filed 1–16–07; 8:45 am] 

BILLING CODE 3410–KD–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 966 

[Docket No. AMS–FV–06–0190; FV06–966–

2 FR] 

Tomatoes Grown in Florida; Increased 

Assessment Rate 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: This rule increases the 

assessment rate established for the 

Florida Tomato Committee (Committee) 

for the 2006–07 and subsequent fiscal 

periods from $0.025 to $0.035 per 25- 

pound container or equivalent of 

tomatoes handled. The Committee 

locally administers the marketing order 

which regulates the handling of 

tomatoes grown in Florida. Assessments 

upon Florida tomato 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 will 

remain in effect indefinitely unless 

modified, suspended, or terminated. 

DATES: Effective Date: January 18, 2007. 

FOR FURTHER INFORMATION CONTACT: 

William G. Pimental, Marketing 

Specialist or Christian D. Nissen, 

Regional Manager, Southeast Marketing 

Field Office, Marketing Order 

Administration Branch, Fruit and 

Vegetable Programs, AMS, USDA; 

Telephone: (863) 324–3375, Fax: (863) 

325–8793, or E-mail: 

William.Pimental@usda.gov or 

Christian.Nissen@usda.gov. 

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. 125 and Order No. 966, both as 

amended (7 CFR part 966), regulating 

the handling of tomatoes 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 tomato 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 tomatoes 

beginning August 1, 2006, 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 2006–07 and subsequent fiscal 

periods from $0.025 to $0.035 per 25- 

pound container or equivalent of 

tomatoes handled. 

The Florida tomato 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 tomatoes. 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 

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