[Federal Register Volume 60, Number 1 (Tuesday, January 3, 1995)]
[Rules and Regulations]
[Pages 2-3]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-32288]
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DEPARTMENT OF AGRICULTURE
7 CFR Part 966
[Docket No. FV94-966-2FIR]
Tomatoes Grown in Florida; Expenses and Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: The Department of Agriculture (Department) is adopting as a
final rule, without change, the provisions of an interim final rule
that authorized expenses and established an assessment rate that will
generate funds to pay those expenses. Authorization of this budget
enables the Florida Tomato Committee (Committee) to incur expenses that
are reasonable and necessary to administer the program. Funds to
administer this program are derived from assessments on handlers.
EFFECTIVE DATE: August 1, 1994, through July 31, 1995.
FOR FURTHER INFORMATION CONTACT: Martha Sue Clark, Marketing Order
Administration Branch, Fruit and Vegetable Division, AMS, USDA, P.O.
Box 96456, room 2523-S, Washington, DC 20090-6456, telephone 202-720-
9918, or Aleck J. Jonas, Southeast Marketing Field Office, Fruit and
Vegetable Division, AMS, USDA, P.O. Box 2276, Winter Haven, FL 33883-
2276, telephone 813-299-4770.
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. 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 is issuing this rule in conformance
with Executive Order 12866.
This rule has been reviewed under Executive order 12778, Civil
Justice Reform. Under the provisions of the marketing order now in
effect, Florida tomatoes are subject to assessments. It is intended
that the assessment rate as issued herein will be applicable to all
assessable tomatoes handled during the 1994-95 fiscal period, which
began August 1, 1994, and ends July 31, 1995. This 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 requesting 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 in equity to review
the Secretary's ruling on the petition, provided a bill in equity is
filed not later than 20 days after the date of the entry of the ruling.
Pursuant to the requirements set forth in the Regulatory
Flexibility Act (RFA), the Administrator of the Agricultural Marketing
Service (AMS) has [[Page 3]] 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
orientation and compatibility.
There are approximately 250 producers of Florida tomatoes under
this marketing order, and approximately 50 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 Florida tomato
producers and handlers may be classified as small entities.
The budget of expenses for the 1994-95 fiscal period was prepared
by the Florida Tomato 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 of Florida
tomatoes. They are familiar with the Committee's needs and with the
costs of goods and services in their local area and are thus in a
position to formulate an appropriate budget. The budget 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 Florida
tomatoes. 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 September 8, 1994, and unanimously recommended a
1994-95 budget of $2,215,000, $467,000 less than the previous year.
Budget items for 1994-95 which have increased compared to those
budgeted for 1993-94 (in parentheses) are: Office salaries, $297,300
($276,000); depreciation, $18,200 ($16,200); communications, $12,000
($10,000); employee's retirement program, $46,600 ($37,300); insurance
and bonds, $7,000 ($5,000); office rent, $24,700 ($22,600); social
security tax, $20,000 ($19,000); supplies and printing, $7,500
($6,500); and audit, $2,500 ($2,300); Items which have decreased
compared to those budgeted for 1993-94 (in parentheses) are: Research
expense, $192,100 ($200,000); and education and promotion expense,
$1,500,000 ($2,000,000). All other items are budgeted at last year's
amounts.
The Committee also unanimously recommended an assessment rate of
$0.04 per 25-pound container, the same as last year. This rate, when
applied to anticipated shipments of 55,000,000 25-pound containers,
will yield $2,200,000 in assessment income. This, along with $15,000 in
interest and other income, will be adequate to cover budgeted expenses.
An interim final rule was published in the Federal Register on
November 3, 1994 (59 FR 55020). That interim final rule added
Sec. 966.232 to authorize expenses and establish an assessment rate for
the Committee. That rule provided that interested persons could file
comments through December 5, 1994. No comments were received.
While this action will impose some additional costs on handlers,
the costs are in the form of uniform assessments on 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 action will not have a significant economic impact on a
substantial number of small entities.
After consideration of all relevant matter presented, including the
information and recommendations 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.
It is further found that good cause exists for not postponing the
effective date of this action until 30 days after publication in the
Federal Register (5 U.S.C. 553) because the Committee needs to have
sufficient funds to pay its expenses which are incurred on a continuous
basis. The 1994-95 fiscal period began on August 1, 1994. The marketing
order requires that the rate of assessment for the fiscal period apply
to all assessable tomatoes handled during the fiscal period. In
addition, handlers are aware of this action which was unanimously
recommended by the Committee at a public meeting and published in the
Federal Register as an interim final rule.
List of Subjects in 7 CFR Part 966
Marketing agreements, Reporting and recordkeeping requirements,
Tomatoes.
For the reasons set forth in the preamble, 7 CFR part 966 is
amended as follows:
PART 966--TOMATOES GROWN IN FLORIDA
Accordingly, the interim final rule amending 7 CFR part 966 which
was published at 59 FR 55020 on November 3, 1994, is adopted as a final
rule without change.
Dated: December 27, 1994.
Sharon Bomer Lauritsen,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 94-32288 Filed 12-30-94; 8:45 am]
BILLING CODE 3410-02-P