This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

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new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

39697

Vol. 63, No. 142

Friday, July 24, 1998

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 906

[Docket No. FV98–906–1 IFR]

Oranges and Grapefruit Grown in the

Lower Rio Grande Valley in Texas;

Decreased Assessment Rate

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Interim final rule with request

for comments.

SUMMARY: This rule decreases the

assessment rate from $0.125 to $0.11 per

7⁄10 bushel carton established for the

Texas Valley Citrus Committee

(Committee) under Marketing Order No.

906 for the 1998–99 and subsequent

fiscal periods. The Committee is

responsible for local administration of

the marketing order which regulates the

handling of oranges and grapefruit

grown in the Lower Rio Grande Valley

in Texas. Authorization to assess orange

and grapefruit handlers enables the

Committee to incur expenses that are

reasonable and necessary to administer

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 July 27, 1998.

Comments received by September 22,

1998, 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 to the Docket Clerk, Fruit and

Vegetable Programs, AMS, USDA, room

2525–S, P.O. Box 96456, Washington,

DC 20090–6456; Fax: (202) 205–6632.

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, McAllen Marketing

Field Office, Fruit and Vegetable

Programs, AMS, USDA, 1313 E.

Hackberry, McAllen, TX 78501;

telephone: (956) 682–2833, Fax: (956)

682–5942; 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) 205–6632. Small

businesses may request information on

compliance with this regulation by

contacting Jay Guerber, 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) 205–6632.

SUPPLEMENTARY INFORMATION: This rule

is issued under Marketing Agreement

and Order No. 906 (7 CFR part 906),

regulating the handling of oranges and

grapefruit grown in the Lower Rio

Grande Valley in 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, orange and grapefruit handlers

in the Lower Rio Grande Valley in Texas

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 oranges and

grapefruit beginning August 1, 1998,

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 deceases the assessment rate

established for the Committee for the

1998–99 and subsequent fiscal periods

from $0.125 to $0.11 per 7⁄10 bushel

carton handled.

The Texas orange and grapefruit

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 Texas oranges and grapefruit. 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 1996–97 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 June 10, 1998,

and unanimously recommended 1998–

99 expenditures of $1,172,950 and an

assessment rate of $0.11 per 7/10 bushel

carton of oranges and grapefruit

handled. In comparison, last year’s

budgeted expenditures were $1,100,478.

The assessment rate of $0.11 is $0.015

lower than the rate currently in effect.

The Committee voted to lower its

assessment rate and use more of the
39698 Federal Register / Vol. 63, No. 142 / Friday, July 24, 1998 /Rules and Regulations

reserve to cover its expenses. The

assessment rate decrease is necessary to

bring expected assessment income

closer to the amount necessary to

administer the program for the 1998–99

fiscal period. At the current rate,

assessment income would exceed

anticipated expenses by about $14,550,

and the projected reserve on July 31,

1999, would exceed the level the

Committee believes to be adequate to

administer the program.

The major expenditures

recommended by the Committee for the

1998–99 fiscal period include $768,700

for advertising and promotion, and

$170,000 for the Mexican Fruit Fly

support program. Budgeted expenses for

these items in 1997–98 were $712,000

and $170,000, respectively. Budget

increases for 1998–99 (with the 1997–98

budgeted amounts in parentheses)

include administrative at $68,313,

($64,548), and compliance at $73,369,

($71,112). A new budget item for 1998–

99 includes funds totaling $14,000 for

promotion program evaluation.

The assessment rate recommended by

the Committee was derived by dividing

anticipated expenses by expected

shipments of Texas oranges and

grapefruit. Texas orange and grapefruit

shipments for the year are estimated at

9.5 million cartons which should

provide $1,045,000 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 $270,000) will be kept

within the maximum permitted by the

order (approximately one fiscal periods’

expenses; § 906.35).

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 1998–99 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 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 2,000

producers of oranges and grapefruit in

the production area and 17 handlers

subject to regulation under the

marketing order. Small agricultural

producers have been defined by the

Small Business Administration (SBA)

(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 orange

and grapefruit producers and handlers

may be classified as small entities.

Last year, 4 of the handlers each

shipped over 833,000 7⁄10 bushel cartons

of oranges and grapefruit, which at an

average free-on-board (f.o.b.) price of

$6.00, generated approximately $5

million in gross sales. These handlers

would be considered large businesses

under SBA’s definition, and the

remaining 13 handlers would be

considered small businesses. Of the

approximately 2,000 producers within

the production area, few have sufficient

acreage to generate sales in excess of

$500,000; therefore, a majority of

producers of Texas oranges and

grapefruit may be classified as small

entities.

This rule decreases the assessment

rate established for the Committee and

collected from handlers for the 1998–99

and subsequent fiscal periods from

$0.125 to $0.11 per 7⁄10 bushel carton

handled. The Committee unanimously

recommended 1998–99 expenditures of

$1,172,950 and an assessment rate of

$0.11 per 7⁄10 bushel carton. The

assessment rate of $0.11 is $0.015 lower

than the 1997–98 rate. As mentioned

earlier, the quantity of assessable

oranges and grapefruit for the 1998–99

season is estimated at 9.5 million

cartons. Income derived from handler

assessments, along with interest income

and funds from the Committee’s

authorized reserve, will be adequate to

cover budgeted expenses.

The major expenditures

recommended by the Committee for the

1998–99 fiscal period include $768,700

for advertising and promotion, and

$170,000 for the Mexican Fruit Fly

support program. Budgeted expenses for

these items in 1997–98 were $712,000

and $170,000, respectively. Budget

increases for 1998–99 (with the 1997–98

budgeted amounts in parentheses)

include administrative at $68,313,

($64,548), and compliance at $73,369,

($71,112). A new budget item for 1998–

99 includes funds totaling $14,000 for

promotion program evaluation.

Many producers are still recovering

from the devastating freezes of 1983 and

1989 that virtually destroyed the Texas

citrus industry. Most trees in the

production area were planted within the

past ten years and have not yet reached

full maturity. As a result, yields are still

somewhat low and profit to the

producers is marginal. Also, a general

oversupply of citrus from other

domestic sources and foreign countries

is depressing prices. To allow more of

the revenue from sales to be retained by

those paying assessments, the

Committee recommended that the 1998–

99 rate of assessment be reduced to

$0.11 per 7⁄10 bushel carton. A reduction

in the assessment rate will, however,

cause the Committee to draw

approximately $122,950 from reserves

to meet the 1998–99 budget. At the end

of the 1998–99 fiscal period, the reserve

is expected to be $126,428. Interest

income totaling $5,000 also will be used

to cover program expenses in 1998–99.

The Committee reviewed and

unanimously recommended 1998–99

expenditures of $1,172,950, which

included increases in administrative

costs, compliance, the advertising and

promotion program, and the addition of

funds to cover promotion program

evaluation. Budgeted expenses for the

Mexican Fruit Fly program were left the

same as last year. In arriving at the

budget, the Committee considered

information from various sources. A

lower assessment rate was considered.

The Committee, however, concluded

that establishing a lower rate would

require it to use to much of its reserve.

Based on its estimate of anticipated

1998–99 shipments, the Committee

concluded that an assessment rate of

$0.11 per 7⁄10 bushel carton of oranges

and grapefruit would generate the

income necessary to administer the

program with an appropriate reserve

level.
Federal Register / Vol. 63, No. 142 / Friday, July 24, 1998 /Rules and Regulations 39699

A review of historical information and

preliminary information pertaining to

the upcoming fiscal period indicates

that the f.o.b. price for the 1998–99

season could range between $4.50 and

$9.00 per 7⁄10 bushel carton of oranges

and grapefruit, depending upon the fruit

variety, size, and quality. Therefore, the

estimated assessment revenue for the

1998–99 fiscal period as a percentage of

the total pack-out revenue could range

between 2.4 and 1.2 percent.

This action decreases the assessment

obligation imposed on handlers.

Assessments are applied uniformly on

all handlers, and some of the costs may

be passed on to producers. However,

decreasing the assessment rate reduces

the burden on handlers and may reduce

the burden on producers. In addition,

the Committee’s meeting was widely

publicized throughout the Texas orange

and grapefruit industry and all

interested persons were invited to

attend the meeting and participate in

Committee deliberations on all issues.

Like all Committee meetings, the June

10, 1998, 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 action imposes no additional

reporting or recordkeeping requirements

on either small or large Texas orange

and grapefruit 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.

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 1998–99 fiscal period

begins on August 1, 1998, and the

marketing order requires that the rate of

assessment for each fiscal period apply

to all assessable oranges and grapefruit

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 60-day comment

period, and all comments timely

received will be considered prior to

finalization of this rule.

List of Subjects in 7 CFR Part 906

Marketing agreements, Grapefruit,

Oranges, Reporting and recordkeeping

requirements.

For the reasons set forth in the

preamble, 7 CFR part 906 is amended as

follows:

PART 906—ORANGES AND

GRAPEFRUIT GROWN IN LOWER RIO

GRANDE VALLEY IN TEXAS

1. The authority citation for 7 CFR

part 906 continues to read as follows:

Authority: 7 U.S.C. 601–674.

2. Section 906.235 is revised to read

as follows:

§ 906.235 Assessment rate.

On and after August 1, 1998, an

assessment rate of $0.11 per 7⁄10 bushel

carton is established for oranges and

grapefruit grown in the Lower Rio

Grande Valley in Texas.

Dated: July 21, 1998.

Robert C. Keeney,

Deputy Administrator, Fruit and Vegetable

Programs.

[FR Doc. 98–19886 Filed 7–23–98; 8:45 am]

BILLING CODE 3410–02–P

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 989

[FV98–989–2 IFR]

Raisins Produced From Grapes Grown

In California; Increase in Desirable

Carryout Used to Compute Trade

Demand

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Interim final rule with request

for comments.

SUMMARY: This rule increases the

desirable carryout used to compute the

yearly trade demand for raisins covered

under the Federal marketing order for

California raisins. The order regulates

the handling of raisins produced from

grapes grown in California and is

administered locally by the Raisin

Administrative Committee (Committee).

Trade demand is computed based on a

formula specified in the order, and is

used to determine volume regulation

percentages for each crop year, if

necessary. Desirable carryout, one factor

in this formula, is the amount of

tonnage from the prior crop year needed

during the first part of the next crop

year to meet market needs, before new

crop raisins are available for shipment.

This rule increases the desirable

carryout from 2 to 21⁄2 months of prior

year’s shipments. This increase allows

for a higher free tonnage percentage

which makes more raisins available to

handlers for immediate use early in the

season.

DATES: Effective August 1, 1998.

Comments must be received by August

3, 1998.

ADDRESSES: Interested persons are

invited to submit written comments

concerning this rule. Comments must be

sent to the Docket Clerk, Fruit and

Vegetable Programs, AMS, USDA, room

2525–S, P.O. Box 96456, Washington,

DC 20090–6456; Fax: (202) 205–6632.

All comments should reference the

docket number and the date and page

number of this issue of the Federal

Register and will be made available for

public inspection in the Office of the

Docket Clerk during regular business

hours.

FOR FURTHER INFORMATION CONTACT:

Maureen T. Pello, Marketing Specialist,

California Marketing Field Office, Fruit

and Vegetable Programs, AMS, USDA,

2202 Monterey Street, suite 102B,

Fresno, California 93721; telephone:

(209) 487–5901, Fax: (209) 487–5906; 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, or Fax: (202)

205–6632. Small businesses may request

information on compliance 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)

205–6632.

SUPPLEMENTARY INFORMATION: This rule

is issued under Marketing Agreement

and Order No. 989 (7 CFR part 989),

both as amended, regulating the

handling of raisins produced from

grapes grown in California, hereinafter

referred to as the ‘‘order.’’ The order is

effective under the Agricultural

Marketing Agreement Act of 1937, as