[Federal Register Volume 62, Number 34 (Thursday, February 20, 1997)]
[Rules and Regulations]
[Pages 7659-7660]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-4112]


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DEPARTMENT OF AGRICULTURE
7 CFR Part 979

[Docket No. FV97-979-1 IFR]


Melons Grown in South Texas; Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: This interim final rule establishes an assessment rate for the 
South Texas Melon Committee (Committee) under Marketing Order No. 979 
for the 1996-97 and subsequent fiscal periods. The Committee is 
responsible for local administration of the marketing order which 
regulates the handling of melons grown in South Texas. Authorization to 
assess Texas melon handlers enables the Committee to incur expenses 
that are reasonable and necessary to administer the program.

DATES: Effective on October 1, 1996. Comments received by March 24, 
1997, will be considered prior to issuance of a final rule.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this rule. Comments must be sent in triplicate to the Docket 
Clerk, Fruit and Vegetable Division, AMS, USDA, P.O. Box 96456, room 
2525-S, Washington, DC 20090-6456, FAX 202-720-5698. Comments should 
reference the docket number and the date and page number of this issue 
of the Federal Register and will be available for public inspection in 
the Office of the Docket Clerk during regular business hours.

FOR FURTHER INFORMATION CONTACT: Belinda G. Garza, Marketing 
Specialist, McAllen Marketing Field Office, Fruit and Vegetable 
Division, AMS, USDA, 1313 East Hackberry, McAllen, TX 78501, telephone 
210-682-2833, FAX 210-682-5942, or Martha Sue Clark, Program Assistant, 
Marketing Order Administration Branch, Fruit and Vegetable Division, 
AMS, USDA, P.O. Box 96456, room 2525-S, Washington, DC 20090-6456; 
telephone 202-720-9918; FAX 202-720-5698. Small businesses may request 
information on compliance with this regulation by contacting Jay 
Guerber, Marketing Order Administration Branch, Fruit and Vegetable 
Division, AMS, USDA, P.O. Box 96456, room 2525-S, Washington, DC 20090-
6456; telephone 202-720-2491; FAX 202-720-5698.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing 
Agreement No. 156 and Order No. 979, both as amended (7 CFR part 979), 
regulating the handling of melons grown in South Texas, hereinafter 
referred to as the ``order.'' The marketing agreement and order are 
effective under the Agricultural Marketing Agreement Act of 1937, as 
amended (7 U.S.C. 601-674), hereinafter referred to as the ``Act.''
    The Department of Agriculture (Department) is issuing this rule in 
conformance with Executive Order 12866.
    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. Under the marketing order now in effect, South Texas 
melon handlers are subject to assessments. It is intended that the 
assessment rate as issued herein will be applicable to all assessable 
melons beginning October 1, 1996, and continuing until amended, 
suspended, or terminated. This rule will not preempt any State or local 
laws, regulations, or policies unless they present an irreconcilable 
conflict with this rule.
    The Act provides that administrative proceedings must be exhausted 
before parties may file suit in court. Under section 608c(15)(A) of the 
Act, any handler subject to an order may file with the Secretary a 
petition stating that the order, any provision of the order, or any 
obligation imposed in connection with the order is not in accordance 
with law and request a modification of the order or to be exempted 
therefrom. Such handler is afforded the opportunity for a hearing on 
the petition. After the hearing the Secretary would rule on the 
petition. The Act provides that the district court of the United States 
in any district in which the handler is an inhabitant, or has his or 
her principal place of business, has jurisdiction to review the 
Secretary's ruling on the petition, provided an action is filed not 
later than 20 days after the date of the entry of the ruling.
    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA), the Agricultural Marketing Service (AMS) has considered the 
economic impact of this rule on small entities.
    The purpose of the RFA is to fit regulatory actions to the scale of 
business subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened. Marketing orders issued 
pursuant to the Act, and the rules issued thereunder, are unique in 
that they are brought about through group action of essentially small 
entities acting on their own behalf. Thus, both statutes have small 
entity orientation and compatibility.
    There are approximately 32 producers of South Texas melons in the 
production area and approximately 24 handlers subject to regulation 
under the marketing order. Small agricultural producers have been 
defined by the Small Business Administration (13 CFR 121.601) as those 
having annual receipts less than $500,000 and small agricultural 
service firms are defined as those whose annual receipts are less than 
$5,000,000. The majority of South Texas melon producers and handlers 
may be classified as small entities.
    The melon 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 
South Texas melons. 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.

[[Page 7660]]

Thus, all directly affected persons have an opportunity to participate 
and provide input.
    The Committee, in a telephone vote on September 25, 1996, 
unanimously recommended 1996-97 administrative expenses of $100,000 for 
personnel, office and the travel portion of the compliance budget. 
These expenses were approved by the Department in October 1996. The 
assessment rate and funding for the research projects and the road 
guard station maintenance portion of the compliance budget were to be 
recommended at a later Committee meeting.
    The Committee subsequently met on December 17, 1996, and 
unanimously recommended 1996-97 expenditures of $308,000 and an 
assessment rate of $0.07 per carton of melons. In comparison, last 
year's budgeted expenditures were $395,159. The assessment rate of 
$0.07 is the same as last year's established rate. Major expenditures 
recommended by the Committee for the 1996-97 fiscal period include 
$84,500 for personnel and administrative expenses, $115,500 for 
compliance, $64,000 for a melon disease management program, $33,125 for 
breeding and variety development, and $10,875 for melon variety 
evaluation. Budgeted expenses for these items in 1995-96 were $95,544, 
$139,500, $86,716, $32,674, and $10,875, respectively.
    The assessment rate recommended by the Committee was derived by 
dividing anticipated expenses by expected shipments of South Texas 
melons. Melon shipments for the year are estimated at 3,870,000 
cartons, which should provide $270,900 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 
budget expenses. Funds in the reserve will be kept within the maximum 
permitted by the order.
    While this rule will impose some additional costs on handlers, the 
costs are in the form of uniform assessments on all handlers. Some of 
the additional costs may be passed on to producers. However, these 
costs will be offset by the benefits derived by the operation of the 
marketing order. Therefore, the AMS has determined that this rule will 
not have a significant economic impact on a substantial number of small 
entities. Interested persons are invited to submit information on the 
regulatory and informational impacts of this action on small 
businesses.
    The assessment rate established in this rule will continue in 
effect indefinitely unless modified, suspended, or terminated by the 
Secretary upon recommendation and information submitted by the 
Committee or other available information.
    Although this assessment rate is effective for an indefinite 
period, the Committee will continue to meet prior to or during each 
fiscal period to recommend a budget of expenses and consider 
recommendations for modification of the assessment rate. The dates and 
times of Committee meetings are available from the Committee or the 
Department. Committee meetings are open to the public and interested 
persons may express their views at these meetings. The Department will 
evaluate Committee recommendations and other available information to 
determine whether modification of the assessment rate is needed. 
Further rulemaking will be undertaken as necessary. The Committee's 
1996-97 budget and those for subsequent fiscal periods will be reviewed 
and, as appropriate, approved by the Department.
    After consideration of all relevant material presented, including 
the information and recommendation submitted by the Committee and other 
available information, it is hereby found that this rule, as 
hereinafter set forth, will tend to effectuate the declared policy of 
the Act.
    Pursuant to 5 U.S.C. 553, it is also found and determined upon good 
cause that it is impracticable, unnecessary, and contrary to the public 
interest to give preliminary notice prior to putting this rule into 
effect, and that good cause exists for not postponing the effective 
date of this rule until 30 days after publication in the Federal 
Register because: (1) The Committee needs to have sufficient funds to 
pay its expenses which are incurred on a continuous basis; (2) the 
1996-97 fiscal period began on October 1, 1996, and the marketing order 
requires that the rate of assessment for each fiscal period apply to 
all assessable melons handled during such fiscal period; (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; and (4) this interim final rule provides 
a 30-day comment period, and all comments timely received will be 
considered prior to finalization of this rule.

List of Subjects in 7 CFR Part 959

    Marketing agreements, Melons, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 979 is 
amended as follows:

PART 979--MELONS GROWN IN SOUTH TEXAS

    1. The authority citation for 7 CFR part 979 continues to read as 
follows:

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

    2. A new subpart titled ``Assessment Rates'' consisting of a new 
Sec. 979.219 and a new subpart heading titled ``Handling Regulations'' 
are added immediately preceding Sec. 979.304, to read as follows:

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

Subpart--Assessment Rates


Sec. 979.219  Assessment rate.

    On and after October 1, 1996, an assessment rate of $0.07 per 
carton is established for South Texas melons.

    Dated: February 13, 1997.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 97-4112 Filed 2-19-97; 8:45 am]
BILLING CODE 3410-02-P