[Federal Register Volume 61, Number 86 (Thursday, May 2, 1996)]
[Rules and Regulations]
[Pages 19512-19514]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-10871]



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DEPARTMENT OF AGRICULTURE
7 CFR Part 915

[Docket No. FV96-915-1IFR]


Avocados Grown in South Florida; 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 of 
$0.16 per bushel of assessable avocados under Marketing Order No. 915 
for the 1996-97 and subsequent fiscal periods. Authorization to assess 
avocado handlers enables the Avocado Administrative Committee 
(committee) to incur expenses that are reasonable and necessary to 
administer the program.

DATES: Effective April 1, 1996. Comments received by June 3, 1996, will 
be considered prior to issuance of a final rule.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this action. Comments must be sent in triplicate to the 
Docket Clerk, Fruit and Vegetable Division, AMS, USDA, P.O. Box 96456, 
room 2523-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: Caroline C. Thorpe, Marketing Order 
Administration Branch, Fruit and

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Vegetable Division, AMS, USDA, P.O. Box 96456, room 2523-S, Washington, 
DC 20090-6456, telephone 202-720-5127, FAX (202) 720-5698, or Alex 
Jonas, Marketing Specialist, Southeast Marketing Field Office, Fruit 
and Vegetable Division, AMS, USDA, P.O. Box 2276, Winter Haven, FL 
33883-2276, telephone 813 299-4896, FAX (813) 299-5169.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing 
Agreement No. 121 and Order No. 915, both as amended (7 CFR part 915), 
regulating the handling of avocados grown in South Florida, hereinafter 
referred to as the order. The marketing agreement and order are 
effective under the Agricultural Marketing Agreement Act of 1937, as 
amended (7 U.S.C. 601-674), hereinafter referred to as the Act.
    The Department of Agriculture (Department) is issuing this rule in 
conformance with Executive Order 12866.
    This interim final rule has been reviewed under Executive Order 
12778, Civil Justice Reform. Under the marketing order now in effect 
Florida avocado handlers are subject to assessments. Funds to 
administer the order are derived from such assessments. It is intended 
that the assessment rate as issued herein will be applicable to all 
assessable avocados beginning April 1, 1996, and continuing until 
amended or terminated. This interim final 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 Administrator of 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 65 producers of avocados under the order 
and approximately 95 handlers. Small agricultural producers have been 
defined by the Small Business Administration (13 CFR 121.601) as those 
having annual receipts of 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 avocado producers and handlers may be 
classified as small entities.
    This continuing rate of assessment, beginning with the 1996-97 
fiscal period, was prepared by the committee, the agency responsible 
for local administration of the marketing order, and submitted to the 
Department for approval. The members of the committee are producers and 
handlers of South Florida avocados. They are familiar with the 
committee's needs and with the costs for goods and services in their 
local area and are thus in a position to formulate an appropriate 
budget and assessment rate. The assessment rate was formulated and 
discussed in a public meeting. Thus, all directly affected persons have 
had an opportunity to participate and provide input.
    The assessment rate recommended by the committee was derived by 
dividing anticipated expenses by expected shipments of South Florida 
Avocados. Because that rate will be applied to actual shipments, it 
must be established at a rate that will provide sufficient income to 
pay the committee's expenses.
    The committee met on December 13, 1995, and unanimously recommended 
an assessment rate of $0.16 per bushel, the same as last season. This 
rate, when applied to anticipated shipments, should yield sufficient 
assessment income. This rate, along with interest income and funds from 
the committee's authorized reserve, will be adequate to cover budgeted 
expenses. Funds in the reserve will be kept within the maximum 
permitted by the order of one fiscal period's expenses.
    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 Administrator of the AMS has determined 
that this rule will not have a significant economic impact on a 
substantial number of small entities.
    The assessment rate established in this interim final rule, 
effective April 1, 1996, will continue in effect from fiscal period to 
fiscal period indefinitely unless modified, suspended, or terminated by 
the Secretary upon recommendation and information submitted by the 
committee or other information available to the Secretary. Heretofore, 
assessment rates issued under the marketing order were made effective 
for a single fiscal period. The change to issuing assessment rates 
which will continue in effect from fiscal period to fiscal period 
reflects the fact that assessment rates change infrequently from fiscal 
period to fiscal period and it is believed unnecessary to issue them 
for only a single fiscal period. In addition, this rule will result in 
a reduction in operational costs to the committee and the government. 
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 and consider recommendations for 
modification of the assessment rate. The dates and times of committee 
meetings are available from the Department at the address listed under 
ADDRESSES. Committee meetings are open to the public and interested 
persons may express their views at these meetings or may file comments 
with the Docket Clerk at the address listed above before April 1, each 
year. The Department will evaluate committee recommendations and 
information submitted by the committee, comments filed, and other 
available information, and determine whether modification of the 
assessment rate on assessable shipments of South Florida Avocados would 
tend to effectuate the declared policy of the Act.
    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,

[[Page 19514]]

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 action 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 begins on April 1, 
1996, and the marketing order requires that the rate of assessment for 
each fiscal period apply to all assessable avocados 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 action.

List of Subjects in 7 CFR Part 915

    Avocados, Marketing agreements, Reporting and recordkeeping 
requirements.

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

PART 915--AVOCADOS GROWN IN SOUTH FLORIDA

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

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

    2. A new section 915.235 is added to read as follows:

    Note: This section will not appear in the annual code of Federal 
Regulations.


Sec. 915.235  Assessment rate.

    On and after April 1, 1996, an assessment rate of $0.16 per bushel 
of assessable avocados is established for the Avocado Administrative 
Committee.

    Dated: April 26, 1996.
Eric M. Forman,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 96-10871 Filed 5-1-96; 8:45 am]
BILLING CODE 3410-02-P