Oranges and Grapefruit Grown in Lower Rio Grande Valley in Texas; Increased Assessment Rate, 3720-3723 [2025-00193]
Download as PDF
3720
Proposed Rules
Federal Register
Vol. 90, No. 9
Wednesday, January 15, 2025
This section of the FEDERAL REGISTER
contains notices to the public of the proposed
issuance of rules and regulations. The
purpose of these notices is to give interested
persons an opportunity to participate in the
rule making prior to the adoption of the final
rules.
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 906
[Doc. No. AMS–SC–24–0046]
Oranges and Grapefruit Grown in
Lower Rio Grande Valley in Texas;
Increased Assessment Rate
Agricultural Marketing Service,
Department of Agriculture (USDA).
ACTION: Proposed rule.
AGENCY:
This proposed rule would
implement a recommendation from the
Texas Valley Citrus Committee
(Committee) to increase the assessment
rate established for the 2024–2025 and
subsequent fiscal periods from $0.03 to
$0.04 per 7/10-bushel carton or
equivalent of oranges and grapefruit
grown in Texas. The proposed
assessment rate would remain in effect
indefinitely unless modified,
suspended, or terminated.
DATES: Comments must be received by
February 14, 2025.
ADDRESSES: Interested persons are
invited to submit written comments
concerning this proposed rule.
Comments can be sent to the Docket
Clerk, Market Development Division,
Specialty Crops Program, AMS, USDA,
1400 Independence Avenue SW, STOP
0237, Washington, DC 20250–0237.
Comments can also be sent to the
Docket Clerk electronically by Email:
MarketingOrderComment@usda.gov or
via the internet at: https://
www.regulations.gov. Comments should
reference the document number and the
date and page number of this issue of
the Federal Register. Comments
submitted in response to this proposed
rule will be included in the record, will
be made available to the public and can
be viewed at: https://
www.regulations.gov. Please be advised
that the identity of the individuals or
entities submitting the comments will
be made public on the internet at the
address provided above.
lotter on DSK11XQN23PROD with PROPOSALS1
SUMMARY:
VerDate Sep<11>2014
16:26 Jan 14, 2025
Jkt 265001
FOR FURTHER INFORMATION CONTACT:
Delaney Fuhrmeister, Marketing
Specialist, or Christian D. Nissen, Chief,
Southeast Region Branch, Market
Development Division, Specialty Crops
Program, AMS, USDA; telephone: (863)
324–3375 or email:
Delaney.Fuhrmeister@usda.gov or
Christian.Nissen@usda.gov.
Small businesses may request
information on complying with this
regulation by contacting Antoinette
Carter, Market Development Division,
Specialty Crops Program, AMS, USDA,
1400 Independence Avenue SW, STOP
0237, Washington, DC 20250–0237;
telephone: (202) 720–8085, or email:
Antoinette.Carter@usda.gov.
This
action, pursuant to 5 U.S.C. 553,
proposes to amend regulations issued to
carry out a marketing order as defined
in 7 CFR 900.2(j). This proposed rule is
issued under Marketing Order No. 906
as amended (7 CFR part 906), regulating
the handling of oranges and grapefruit
grown in the Lower Rio Grande Valley
in Texas. Part 906 (referred to as ‘‘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
Committee locally administers the
Order and is comprised of producers
and handlers of oranges and grapefruit
operating within the area of production.
The Agricultural Marketing Service
(AMS) is issuing this proposed rule in
conformance with Executive Orders
12866, 13563, and 14094. Executive
Orders 12866 and 13563 direct agencies
to assess all costs and benefits of
available regulatory alternatives and, if
regulation is necessary, to select
regulatory approaches that maximize
net benefits (including potential
economic, environmental, public health
and safety effects, distributive impacts,
and equity). Executive Order 13563
emphasizes the importance of
quantifying both costs and benefits,
reducing costs, harmonizing rules, and
promoting flexibility. Executive Order
14094 reaffirms, supplements and
updates Executive Order 12866 and
further directs agencies to solicit and
consider input from a wide range of
affected and interested parties through a
variety of means. This proposed action
falls within a category of regulatory
actions that the Office of Management
SUPPLEMENTARY INFORMATION:
PO 00000
Frm 00001
Fmt 4702
Sfmt 4702
and Budget (OMB) exempted from
Executive Order 12866 review.
This proposed rule has been reviewed
under Executive Order 13175—
Consultation and Coordination with
Indian Tribal Governments, which
requires Federal agencies to consider
whether their rulemaking actions would
have Tribal implications. AMS has
determined that this proposed rule is
unlikely to have substantial direct
effects on one or more Indian Tribes, on
the relationship between the Federal
Government and Indian Tribes, or on
the distribution of power and
responsibilities between the Federal
Government and Indian Tribes.
This proposed rule has been reviewed
under Executive Order 12988—Civil
Justice Reform. Under the Order now in
effect, Texas orange and grapefruit
handlers are subject to assessments.
Funds to administer the Order are
derived from such assessments. It is
intended that the proposed assessment
rate would be applicable to all
assessable Texas citrus for the 2024–
2025 fiscal period, and continue until
amended, suspended, or terminated.
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 U.S. Department of Agriculture
(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 proposed rule would increase
the assessment rate for Texas oranges
and grapefruit handled under the Order
from $0.03 to $0.04 per 7/10-bushel
carton or equivalent for the 2024–2025
fiscal period and subsequent fiscal
periods.
Sections 906.33 and 906.34 of the
Order authorize the Committee, with the
E:\FR\FM\15JAP1.SGM
15JAP1
lotter on DSK11XQN23PROD with PROPOSALS1
Federal Register / Vol. 90, No. 9 / Wednesday, January 15, 2025 / Proposed Rules
approval of AMS, to formulate an
annual budget of expenses and collect
assessments from handlers to administer
the program. The members of the
Committee are familiar with the
Committee’s needs and with the costs of
goods and services in their local area
and can formulate an appropriate
budget and assessment rate. The
assessment rate is formulated and
discussed in a public meeting, and all
directly affected persons have an
opportunity to participate and provide
input.
For the 2022–23 and subsequent fiscal
periods, the Committee recommended,
and AMS approved, an assessment rate
of $0.03 per 7/10-bushel carton or
equivalent of Texas citrus within the
production area. That rate continues in
effect from fiscal period to fiscal period
until modified, suspended, or
terminated by AMS upon
recommendation and information
submitted by the Committee or other
information available to AMS.
The Committee met on June 18, 2024,
and unanimously recommended 2024–
2025 fiscal period expenditures of
$134,970 and an increased assessment
rate of $0.04 per 7/10-bushel carton or
equivalent of Texas oranges and
grapefruit handled for 2024–2025 fiscal
periods. The budgeted expenditures
remain unchanged compared to last
year’s recommended expenditures. The
proposed assessment rate of $0.04 is
$0.01 higher than the rate currently in
effect. The Committee recommended
increasing the assessment rate to cover
expenses for the current fiscal year and
replenish reserves. The Committee
estimates shipments for the 2024–2025
fiscal period to be around 4,000,000 7/
10-bushel cartons or equivalents, similar
to the 3,976,000 7/10-bushel cartons or
equivalents handled in the 2023–2024
fiscal period.
The major expenditures
recommended by the Committee for the
2024–2025 fiscal period include $66,220
for management expenses, $50,000 for
compliance, and $18,750 for general
administrative expenses, the same as
budgeted for these items during the
2023–2024 fiscal period.
At the current assessment rate of
$0.03, the expected 4,000,000 7/10bushel cartons or equivalents would
generate $120,000 in assessment
revenue (4,000,000 7/10-bushel cartons
or equivalents multiplied by $0.03
assessment rate), which would not cover
budgeted expenses. Further, shipments
from the 2023–2024 fiscal period were
approximately 4,000,000 7/10-bushel
cartons or equivalents of citrus, which
was well below the estimated crop of
5,000,000 7/10-bushel cartons or
VerDate Sep<11>2014
16:26 Jan 14, 2025
Jkt 265001
equivalents. The smaller crop forced the
Committee to use the remainder of their
reserves to help cover 2023–2024 fiscal
period expenses. Consequently, the
Committee recommended increasing the
assessment rate to meet necessary
expenses and restore reserves. By
increasing the assessment rate from
$0.03 to $0.04, assessment income
would generate $160,000 in assessment
revenue (4,000,000 7/10-bushel cartons
or equivalents multiplied by $0.04
assessment rate). This amount should be
appropriate to ensure the Committee has
sufficient revenue to fully fund its
recommended 2024–2025 budgeted
expenditures and replenish the
Committee’s reserve funds.
The Committee derived the
recommended assessment rate by
reviewing anticipated expenses, the
estimated volume of assessable Texas
citrus, and the level of funds available
in the financial reserve. Income
generated from handler assessments
should be sufficient to meet the
Committee’s estimated program
expenditures of $134,970. Funds
available in the financial reserve
(currently about $0) would be kept
within the maximum permitted by the
Order (approximately one fiscal period’s
expenses as authorized in § 906.35).
The proposed assessment rate would
continue in effect indefinitely unless
modified, suspended, or terminated by
AMS upon recommendation and
information submitted by the
Committee or other available
information. Although this assessment
rate would be in effect 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 AMS. Committee
meetings are open to the public and
interested persons may express their
views at these meetings. AMS would
evaluate Committee recommendations
and other available information to
determine whether modification of the
assessment rate is needed. Further
rulemaking would be undertaken as
necessary. The Committee’s 2024–2025
fiscal period budget, and those for
subsequent fiscal periods, will be
reviewed and, as appropriate, approved
by AMS.
Initial Regulatory Flexibility Analysis
Pursuant to requirements set forth in
the Regulatory Flexibility Act (RFA) (5
U.S.C. 601–612), AMS has considered
the economic impact of this proposed
rule on small entities. Accordingly,
PO 00000
Frm 00002
Fmt 4702
Sfmt 4702
3721
AMS has prepared this initial regulatory
flexibility analysis.
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.
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.
There are approximately 17 handlers
of Texas oranges and grapefruit subject
to regulation under the Order and
approximately 75 orange and grapefruit
producers in the regulated area. At the
time this analysis was prepared, the
Small Business Administration (SBA)
defined small agricultural producers as
those having annual receipts equal to or
less than $4 million for orange
producers (North American Industry
Classification System (NAICS) code
111310), and $4.25 million for other
citrus producers (including grapefruit)
(NAICS code 111320). Small
agricultural service firms, including
handlers, are defined as those whose
annual receipts are equal to or less than
$34 million (NAICS code 115114) (13
CFR 121.201).
According to data from the National
Agricultural Statistics Service (NASS),
the producer prices for U.S. fresh
oranges and grapefruit were $11.63 and
$15.63 per carton, respectively. The
prices for U.S. fresh oranges and
grapefruit are used for this RFA because
NASS does not publish fresh citrus
prices for Texas. Based on data provided
by the Committee, the number of orange
and grapefruit 7/10-bushel cartons or
equivalents shipped in the 2023–2024
season were 1,462,800 and 2,513,258,
respectively.
Using the producer prices, shipment
data, and the total number of Texas
orange and grapefruit producers, and
assuming a normal distribution, the
majority of producers have estimated
average annual receipts of significantly
less than the SBA threshold of $4
million ($11.63 multiplied by 1,462,800
cartons plus $15.63 multiplied by
2,513,258 cartons equals $112,564,041,
divided by 75 producers equals
$750,594 per producer).
In addition, based on the NASS data,
the average prices of fresh U.S. oranges
and grapefruit handled for 2023–2024
were $18.40 and $23.05, respectively.
Using the same shipment data from the
Committee, the number of orange and
grapefruit cartons shipped in the 2023–
2024 season, and assuming a normal
distribution, the majority of Texas
orange and grapefruit handlers have
E:\FR\FM\15JAP1.SGM
15JAP1
lotter on DSK11XQN23PROD with PROPOSALS1
3722
Federal Register / Vol. 90, No. 9 / Wednesday, January 15, 2025 / Proposed Rules
average annual receipts of less than $34
million ($18.40 multiplied by 1,462,800
cartons plus $23.05 multiplied by
2,513,258 cartons equals $84,846,117,
divided by 17 handlers equals
$4,990,948 per handler). Thus, the
majority of Texas orange and grapefruit
producers and handlers may be
classified as small entities.
This proposal would increase the
assessment rate collected from handlers
for the 2024–2025 fiscal period and
subsequent fiscal periods from $0.03 to
$0.04 per 7/10-bushel carton or
equivalent of Texas oranges and
grapefruit. The Committee unanimously
recommended 2024–2025 expenditures
of $134,970 and an assessment rate of
$0.04 per 7/10-bushel carton or
equivalent. The recommended
assessment rate of $0.04 is $0.01 higher
than the current assessment rate. The
2024–2025 crop year is estimated to be
4,000,000 7/10-bushel cartons or
equivalents. The $0.04 per 7/10-bushel
carton or equivalent assessment rate
should provide $160,000 in assessment
income (4,000,000 7/10-bushel cartons
or equivalents multiplied by $0.04
assessment rate). Income derived from
handler assessments should be
sufficient to cover budgeted expenses.
The major expenditures
recommended by the Committee for the
2024–25 fiscal period include $66,220
for management expenses, $50,000 for
compliance, and $18,750 for general
administrative expenses. This is the
same as budgeted for these items during
the 2023–2024 fiscal period.
The Committee recommended
increasing the assessment rate to meet
necessary expenses and restore reserves.
The reserves were depleted when
shipments from the 2023–2024 fiscal
period were approximately 4,000,000 7/
10-bushel cartons or equivalents, which
was well below the estimated crop of
5,000,000 7/10-bushel cartons or
equivalents. The Committee estimates
shipments for the 2024–2025 season to
be around 4,000,000 7/10-bushel cartons
or equivalents. Given the estimated
number of shipments, the current
assessment rate of $0.03 would generate
$120,000 in assessment income
(4,000,000 7/10-bushel cartons or
equivalents multiplied by $0.03
assessment rate), which would not cover
budgeted expenses. By increasing the
assessment rate from $0.03 to $0.04,
assessment income would be $160,000
(4,000,000 7/10-bushel cartons or
equivalents multiplied by $0.04
assessment rate). This amount should
provide sufficient funds to meet
anticipated 2024–2025 expenses, while
adding money to the financial reserve.
VerDate Sep<11>2014
16:26 Jan 14, 2025
Jkt 265001
Prior to arriving at this budget and
assessment rate recommendation, the
Committee considered alternatives from
the Committee staff during a discussion
at the June 18, 2024, meeting. Staff
prepared fifteen different proposed
budgets with different combinations of
assessment rates, estimated shipments,
and alternate expenditure levels. The
Committee determined maintaining
expenses and estimated shipments of
4,000,000 7/10-bushel cartons or
equivalent of oranges and grapefruit
were representative of the 2024–2025
fiscal period, and an assessment rate of
$0.04 would cover expenditures and
add funds to the financial reserve.
Consequently, the other alternatives
were rejected.
A review of historical and preliminary
information pertaining to the 2024–2025
fiscal period indicates the average
producer price for Texas oranges and
grapefruit for the 2024–2025 season
should be approximately $14.15 per 7/
10-bushel carton or equivalent.
Therefore, utilizing the recommended
assessment rate of $0.04 per 7/10-bushel
carton or equivalent, assessment
revenue for the 2024 fiscal period as a
percentage of total producer revenue
would be approximately 0.2 percent
($0.04 divided by $14.15 times 100).
This proposed rule would increase
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, these costs are
expected be offset by the benefits
derived by the operation of the Order.
The Committee’s meetings are widely
publicized throughout the Texas citrus
industry and all interested persons are
invited to attend the meetings and
participate in Committee deliberations
on all issues. Like all Committee
meetings, the June 18, 2024, 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
comments on this proposed rule,
including the regulatory and
information collection impacts of this
action on small businesses.
In accordance with the Paperwork
Reduction Act of 1995 (44 U.S.C.
chapter 35), the Order’s information
collection requirements have been
previously approved by OMB and
assigned OMB No. 0581–0189, Fruit
Crops. No changes in those
requirements would be necessary
because of this proposed rule. Should
any changes become necessary, they
would be submitted to OMB for
approval.
PO 00000
Frm 00003
Fmt 4702
Sfmt 4702
This proposed rule would not impose
any additional reporting or
recordkeeping requirements on either
small or large Texas citrus 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.
AMS is committed to complying with
the E-Government Act, to promote the
use of the internet and other
information technologies to provide
increased opportunities for citizen
access to Government information and
services, and for other purposes.
AMS has not identified any relevant
Federal rules that duplicate, overlap, or
conflict with this proposed rule.
A small business guide on complying
with fruit, vegetable, and specialty crop
marketing agreements and orders may
be viewed at: https://
www.ams.usda.gov/rules-regulations/
moa/small-businesses. Any questions
about the compliance guide should be
sent to Antoinette Carter at the
previously mentioned address in the
FOR FURTHER INFORMATION CONTACT
section.
After consideration of all relevant
material presented, including the
information and recommendations
submitted by the Committee and other
available information, AMS has
determined that this proposed rule is
consistent with, and would effectuate
the purposes of, the Act.
A 30-day comment period is provided
to allow interested persons to respond
to this proposed rule. All written
comments timely received will be
considered before a final determination
is made on this proposed rule.
List of Subjects in 7 CFR Part 906
Grapefruit, Marketing agreements,
Oranges, Reporting and recordkeeping
requirements.
For the reasons set forth in the
preamble, the Agricultural Marketing
Service proposes to amend 7 CFR part
906 as follows:
PART 906—ORANGES AND
GRAPEFRUIT GROWN IN LOWER RIO
GRANDE VALLEY IN TEXAS
1. The authority citation for 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, 2024, an
assessment rate of $0.04 per 7/10-bushel
E:\FR\FM\15JAP1.SGM
15JAP1
Federal Register / Vol. 90, No. 9 / Wednesday, January 15, 2025 / Proposed Rules
carton or equivalent is established for
oranges and grapefruit grown in the
Lower Rio Grande Valley in Texas.
Erin Morris,
Associate Administrator, Agricultural
Marketing Service.
[FR Doc. 2025–00193 Filed 1–14–25; 8:45 am]
BILLING CODE P
CONSUMER FINANCIAL PROTECTION
BUREAU
12 CFR Part 1005
[CFPB–2025–0003]
Electronic Fund Transfers Through
Accounts Established Primarily for
Personal, Family, or Household
Purposes Using Emerging Payment
Mechanisms
Consumer Financial Protection
Bureau.
ACTION: Notice of proposed interpretive
rule; request for comment.
AGENCY:
In light of interest by
electronic fund transfer system market
participants to offer new types of
products to transfer funds and make
purchases through accounts established
primarily for personal, family, or
household purposes, the Consumer
Financial Protection Bureau (CFPB) is
proposing this interpretive rule to assist
companies, investors, and other market
participants evaluating existing
statutory and regulatory requirements
governing electronic fund transfers
(EFTs).
SUMMARY:
Comments must be received by
March 31, 2025.
ADDRESSES: You may submit comments,
identified by Docket No. CFPB–2025–
0003, by any of the following methods:
• Federal eRulemaking Portal:
https://www.regulations.gov. Follow the
instructions for submitting comments. A
brief summary of this document will be
available at https://
www.regulations.gov/docket/CFPB2025-0003.
• Email: 2025-Emerging-PaymentsInterpretive-Rule@cfpb.gov. Include
Docket No. CFPB–2025–0003 in the
subject line of the message.
• Mail/Hand Delivery/Courier:
Comment Intake—2025 Emerging
Payments Interpretive Rule, c/o Legal
Division Docket Manager, Consumer
Financial Protection Bureau, 1700 G
Street NW, Washington, DC 20552.
Instructions: The CFPB encourages
the early submission of comments. All
submissions should include the agency
name and docket number. Because
lotter on DSK11XQN23PROD with PROPOSALS1
DATES:
VerDate Sep<11>2014
16:26 Jan 14, 2025
Jkt 265001
paper mail is subject to delay,
commenters are encouraged to submit
comments electronically. In general, all
comments received will be posted
without change to https://
www.regulations.gov.
All submissions, including
attachments and other supporting
materials, will become part of the public
record and subject to public disclosure.
Proprietary information or sensitive
personal information, such as account
numbers or Social Security numbers, or
names of other individuals, should not
be included. Submissions will not be
edited to remove any identifying or
contact information.
FOR FURTHER INFORMATION CONTACT:
George Karithanom, Program Analyst,
Office of Regulations at (202) 435–7700
or https://reginquiries.consumer
finance.gov. If you require this
document in an alternative electronic
format, please contact CFPB_
Accessibility@cfpb.gov.
SUPPLEMENTARY INFORMATION:
I. Background
A. The Passage and Evolution of the
Electronic Fund Transfer Act
Advances in automation brought
about enormous innovation in the
middle of the twentieth century with
respect to the movement of funds. In
1969, Chemical Bank installed the first
automated teller machine in Rockville
Center, New York. New payment
networks also launched, forming the
foundation of mechanisms facilitating
EFTs. However, adoption of these new
technologies raised questions about the
rights and liabilities of consumers who
use EFT services, and the
responsibilities of financial institutions
that offer them. In particular, while
financial firms would reap benefits from
automation, consumer adoption might
be stymied by concerns about and risks
of errors and fraud.
To provide fairness, efficiency, and
confidence in burgeoning technologies
to make payments outside of paper
currency, coins, and paper checks,
Congress enacted the Electronic Fund
Transfer Act (EFTA) in 1978.1 To ensure
that industry participants in electronic
fund transfers (EFTs) had appropriate
incentives to guard against errors and
fraud, EFTA provides a considerable set
of rights to consumers to dispute errors
and limit their liability for unauthorized
1 See Electronic Fund Transfers, Public Law 95–
630, tit. XX, section 2001, 92 Stat. 3728 (1978); see
also S. Rept. 95–1273 at 10 (1978) (‘‘EFT payment
systems, which now involve billions of dollars
annually and are growing in size, must have clearly
defined rules to operate fairly, efficiently, and with
public confidence.’’).
PO 00000
Frm 00004
Fmt 4702
Sfmt 4702
3723
EFTs, among other things. To help
vindicate the rights established in
EFTA, Congress provided mechanisms
for both public and private
enforcement.2 In addition, courts have
held that EFTA is a ‘‘remedial statute
accorded a broad, liberal construction in
favor of the consumer.’’ 3
The United States was among the first
to adopt a framework like EFTA,
providing greater certainty and
protection for consumers, financial
firms, and other participants in
electronic fund transfer systems. In
enacting that legislation, Congress
recognized that electronic fund transfer
services would continue to develop in
the future. In particular, EFTA’s
legislative history demonstrates that
Congress drafted the definitions used in
the statute in a broad manner to ensure
that EFTA was ‘‘sufficiently flexible to
accommodate the continued evolution
of electronic fund transfer services.’’ 4
Congress also granted the Board of
Governors of the Federal Reserve
System (the Board) and later the CFPB
the authority to issue regulations and
guidance to implement the broad
provisions of EFTA.5
The Board implemented EFTA
through Regulation E shortly after the
statute’s passage in 1978.6 Over time,
the Board and then the CFPB have
amended and interpreted Regulation E
in response to the emergence of new
electronic payment instruments and
systems, broader developments in the
market, and new congressional
legislation.7 Most recently, in 2016, the
2 See
15 U.S.C. 1693m, 1693o.
v. Key Bank Nat. Ass’n, 539 F.3d 349,
353 (6th Cir. 2008) (citation omitted); see also Curtis
v. Propel Prop. Tax Funding, LLC, 915 F.3d 234,
239 (4th Cir. 2019).
4 Electronic Fund Transfer Act, H. Rept. 95–1315,
at 5 (1978) (discussing definition of ‘‘financial
institution’’); see also, e.g., S. Rept. 95–1273 at 25
(1978) (‘‘The definition of ‘electronic fund transfer’
is intended to give the Federal Reserve Board
flexibility in determining whether new or
developing electronic services should be covered by
the act and, if so, to what extent.’’); id. at 26 (noting
that ‘‘[t]he definitions of ‘financial institution’ and
‘account’ are deliberately broad so as to assure that
all persons who offer equivalent EFT services
involving any type of asset account are subject to
the same standards and consumers owning such
accounts are assured of uniform protection’’).
5 See 15 U.S.C. 1693b, 1693m(d).
6 See 44 FR 18468 (Mar. 28, 1979); 44 FR 59464
(Oct. 15, 1979).
7 See, e.g., 61 FR 19662, 19662 (May 2, 1996)
(amending Regulation E as part of periodic review
to ‘‘reflect technological and other developments’’);
62 FR 43467 (Aug. 14, 1997) (amending Regulation
E with respect to government-administered EBT
programs); 71 FR 51437 (Aug. 30, 2006) (amending
Regulation E with respect to payroll cards). The
CFPB also issued new requirements in subpart B of
Regulation E relating to remittance transfers in final
rules issued in 2012 and 2013. See 78 FR 30662,
3 Clemmer
E:\FR\FM\15JAP1.SGM
Continued
15JAP1
Agencies
[Federal Register Volume 90, Number 9 (Wednesday, January 15, 2025)]
[Proposed Rules]
[Pages 3720-3723]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-00193]
========================================================================
Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
========================================================================
Federal Register / Vol. 90, No. 9 / Wednesday, January 15, 2025 /
Proposed Rules
[[Page 3720]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 906
[Doc. No. AMS-SC-24-0046]
Oranges and Grapefruit Grown in Lower Rio Grande Valley in Texas;
Increased Assessment Rate
AGENCY: Agricultural Marketing Service, Department of Agriculture
(USDA).
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: This proposed rule would implement a recommendation from the
Texas Valley Citrus Committee (Committee) to increase the assessment
rate established for the 2024-2025 and subsequent fiscal periods from
$0.03 to $0.04 per 7/10-bushel carton or equivalent of oranges and
grapefruit grown in Texas. The proposed assessment rate would remain in
effect indefinitely unless modified, suspended, or terminated.
DATES: Comments must be received by February 14, 2025.
ADDRESSES: Interested persons are invited to submit written comments
concerning this proposed rule. Comments can be sent to the Docket
Clerk, Market Development Division, Specialty Crops Program, AMS, USDA,
1400 Independence Avenue SW, STOP 0237, Washington, DC 20250-0237.
Comments can also be sent to the Docket Clerk electronically by Email:
[email protected] or via the internet at: https://www.regulations.gov. Comments should reference the document number and
the date and page number of this issue of the Federal Register.
Comments submitted in response to this proposed rule will be included
in the record, will be made available to the public and can be viewed
at: https://www.regulations.gov. Please be advised that the identity of
the individuals or entities submitting the comments will be made public
on the internet at the address provided above.
FOR FURTHER INFORMATION CONTACT: Delaney Fuhrmeister, Marketing
Specialist, or Christian D. Nissen, Chief, Southeast Region Branch,
Market Development Division, Specialty Crops Program, AMS, USDA;
telephone: (863) 324-3375 or email: [email protected] or
[email protected].
Small businesses may request information on complying with this
regulation by contacting Antoinette Carter, Market Development
Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue
SW, STOP 0237, Washington, DC 20250-0237; telephone: (202) 720-8085, or
email: [email protected].
SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553,
proposes to amend regulations issued to carry out a marketing order as
defined in 7 CFR 900.2(j). This proposed rule is issued under Marketing
Order No. 906 as amended (7 CFR part 906), regulating the handling of
oranges and grapefruit grown in the Lower Rio Grande Valley in Texas.
Part 906 (referred to as ``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 Committee locally
administers the Order and is comprised of producers and handlers of
oranges and grapefruit operating within the area of production.
The Agricultural Marketing Service (AMS) is issuing this proposed
rule in conformance with Executive Orders 12866, 13563, and 14094.
Executive Orders 12866 and 13563 direct agencies to assess all costs
and benefits of available regulatory alternatives and, if regulation is
necessary, to select regulatory approaches that maximize net benefits
(including potential economic, environmental, public health and safety
effects, distributive impacts, and equity). Executive Order 13563
emphasizes the importance of quantifying both costs and benefits,
reducing costs, harmonizing rules, and promoting flexibility. Executive
Order 14094 reaffirms, supplements and updates Executive Order 12866
and further directs agencies to solicit and consider input from a wide
range of affected and interested parties through a variety of means.
This proposed action falls within a category of regulatory actions that
the Office of Management and Budget (OMB) exempted from Executive Order
12866 review.
This proposed rule has been reviewed under Executive Order 13175--
Consultation and Coordination with Indian Tribal Governments, which
requires Federal agencies to consider whether their rulemaking actions
would have Tribal implications. AMS has determined that this proposed
rule is unlikely to have substantial direct effects on one or more
Indian Tribes, on the relationship between the Federal Government and
Indian Tribes, or on the distribution of power and responsibilities
between the Federal Government and Indian Tribes.
This proposed rule has been reviewed under Executive Order 12988--
Civil Justice Reform. Under the Order now in effect, Texas orange and
grapefruit handlers are subject to assessments. Funds to administer the
Order are derived from such assessments. It is intended that the
proposed assessment rate would be applicable to all assessable Texas
citrus for the 2024-2025 fiscal period, and continue until amended,
suspended, or terminated.
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 U.S. Department
of Agriculture (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 proposed rule would increase the assessment rate for Texas
oranges and grapefruit handled under the Order from $0.03 to $0.04 per
7/10-bushel carton or equivalent for the 2024-2025 fiscal period and
subsequent fiscal periods.
Sections 906.33 and 906.34 of the Order authorize the Committee,
with the
[[Page 3721]]
approval of AMS, to formulate an annual budget of expenses and collect
assessments from handlers to administer the program. The members of the
Committee are familiar with the Committee's needs and with the costs of
goods and services in their local area and can formulate an appropriate
budget and assessment rate. The assessment rate is formulated and
discussed in a public meeting, and all directly affected persons have
an opportunity to participate and provide input.
For the 2022-23 and subsequent fiscal periods, the Committee
recommended, and AMS approved, an assessment rate of $0.03 per 7/10-
bushel carton or equivalent of Texas citrus within the production area.
That rate continues in effect from fiscal period to fiscal period until
modified, suspended, or terminated by AMS upon recommendation and
information submitted by the Committee or other information available
to AMS.
The Committee met on June 18, 2024, and unanimously recommended
2024-2025 fiscal period expenditures of $134,970 and an increased
assessment rate of $0.04 per 7/10-bushel carton or equivalent of Texas
oranges and grapefruit handled for 2024-2025 fiscal periods. The
budgeted expenditures remain unchanged compared to last year's
recommended expenditures. The proposed assessment rate of $0.04 is
$0.01 higher than the rate currently in effect. The Committee
recommended increasing the assessment rate to cover expenses for the
current fiscal year and replenish reserves. The Committee estimates
shipments for the 2024-2025 fiscal period to be around 4,000,000 7/10-
bushel cartons or equivalents, similar to the 3,976,000 7/10-bushel
cartons or equivalents handled in the 2023-2024 fiscal period.
The major expenditures recommended by the Committee for the 2024-
2025 fiscal period include $66,220 for management expenses, $50,000 for
compliance, and $18,750 for general administrative expenses, the same
as budgeted for these items during the 2023-2024 fiscal period.
At the current assessment rate of $0.03, the expected 4,000,000 7/
10-bushel cartons or equivalents would generate $120,000 in assessment
revenue (4,000,000 7/10-bushel cartons or equivalents multiplied by
$0.03 assessment rate), which would not cover budgeted expenses.
Further, shipments from the 2023-2024 fiscal period were approximately
4,000,000 7/10-bushel cartons or equivalents of citrus, which was well
below the estimated crop of 5,000,000 7/10-bushel cartons or
equivalents. The smaller crop forced the Committee to use the remainder
of their reserves to help cover 2023-2024 fiscal period expenses.
Consequently, the Committee recommended increasing the assessment rate
to meet necessary expenses and restore reserves. By increasing the
assessment rate from $0.03 to $0.04, assessment income would generate
$160,000 in assessment revenue (4,000,000 7/10-bushel cartons or
equivalents multiplied by $0.04 assessment rate). This amount should be
appropriate to ensure the Committee has sufficient revenue to fully
fund its recommended 2024-2025 budgeted expenditures and replenish the
Committee's reserve funds.
The Committee derived the recommended assessment rate by reviewing
anticipated expenses, the estimated volume of assessable Texas citrus,
and the level of funds available in the financial reserve. Income
generated from handler assessments should be sufficient to meet the
Committee's estimated program expenditures of $134,970. Funds available
in the financial reserve (currently about $0) would be kept within the
maximum permitted by the Order (approximately one fiscal period's
expenses as authorized in Sec. 906.35).
The proposed assessment rate would continue in effect indefinitely
unless modified, suspended, or terminated by AMS upon recommendation
and information submitted by the Committee or other available
information. Although this assessment rate would be in effect 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 AMS. Committee meetings are open to the public and interested
persons may express their views at these meetings. AMS would evaluate
Committee recommendations and other available information to determine
whether modification of the assessment rate is needed. Further
rulemaking would be undertaken as necessary. The Committee's 2024-2025
fiscal period budget, and those for subsequent fiscal periods, will be
reviewed and, as appropriate, approved by AMS.
Initial Regulatory Flexibility Analysis
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA) (5 U.S.C. 601-612), AMS has considered the economic impact of
this proposed 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
businesses 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.
There are approximately 17 handlers of Texas oranges and grapefruit
subject to regulation under the Order and approximately 75 orange and
grapefruit producers in the regulated area. At the time this analysis
was prepared, the Small Business Administration (SBA) defined small
agricultural producers as those having annual receipts equal to or less
than $4 million for orange producers (North American Industry
Classification System (NAICS) code 111310), and $4.25 million for other
citrus producers (including grapefruit) (NAICS code 111320). Small
agricultural service firms, including handlers, are defined as those
whose annual receipts are equal to or less than $34 million (NAICS code
115114) (13 CFR 121.201).
According to data from the National Agricultural Statistics Service
(NASS), the producer prices for U.S. fresh oranges and grapefruit were
$11.63 and $15.63 per carton, respectively. The prices for U.S. fresh
oranges and grapefruit are used for this RFA because NASS does not
publish fresh citrus prices for Texas. Based on data provided by the
Committee, the number of orange and grapefruit 7/10-bushel cartons or
equivalents shipped in the 2023-2024 season were 1,462,800 and
2,513,258, respectively.
Using the producer prices, shipment data, and the total number of
Texas orange and grapefruit producers, and assuming a normal
distribution, the majority of producers have estimated average annual
receipts of significantly less than the SBA threshold of $4 million
($11.63 multiplied by 1,462,800 cartons plus $15.63 multiplied by
2,513,258 cartons equals $112,564,041, divided by 75 producers equals
$750,594 per producer).
In addition, based on the NASS data, the average prices of fresh
U.S. oranges and grapefruit handled for 2023-2024 were $18.40 and
$23.05, respectively. Using the same shipment data from the Committee,
the number of orange and grapefruit cartons shipped in the 2023-2024
season, and assuming a normal distribution, the majority of Texas
orange and grapefruit handlers have
[[Page 3722]]
average annual receipts of less than $34 million ($18.40 multiplied by
1,462,800 cartons plus $23.05 multiplied by 2,513,258 cartons equals
$84,846,117, divided by 17 handlers equals $4,990,948 per handler).
Thus, the majority of Texas orange and grapefruit producers and
handlers may be classified as small entities.
This proposal would increase the assessment rate collected from
handlers for the 2024-2025 fiscal period and subsequent fiscal periods
from $0.03 to $0.04 per 7/10-bushel carton or equivalent of Texas
oranges and grapefruit. The Committee unanimously recommended 2024-2025
expenditures of $134,970 and an assessment rate of $0.04 per 7/10-
bushel carton or equivalent. The recommended assessment rate of $0.04
is $0.01 higher than the current assessment rate. The 2024-2025 crop
year is estimated to be 4,000,000 7/10-bushel cartons or equivalents.
The $0.04 per 7/10-bushel carton or equivalent assessment rate should
provide $160,000 in assessment income (4,000,000 7/10-bushel cartons or
equivalents multiplied by $0.04 assessment rate). Income derived from
handler assessments should be sufficient to cover budgeted expenses.
The major expenditures recommended by the Committee for the 2024-25
fiscal period include $66,220 for management expenses, $50,000 for
compliance, and $18,750 for general administrative expenses. This is
the same as budgeted for these items during the 2023-2024 fiscal
period.
The Committee recommended increasing the assessment rate to meet
necessary expenses and restore reserves. The reserves were depleted
when shipments from the 2023-2024 fiscal period were approximately
4,000,000 7/10-bushel cartons or equivalents, which was well below the
estimated crop of 5,000,000 7/10-bushel cartons or equivalents. The
Committee estimates shipments for the 2024-2025 season to be around
4,000,000 7/10-bushel cartons or equivalents. Given the estimated
number of shipments, the current assessment rate of $0.03 would
generate $120,000 in assessment income (4,000,000 7/10-bushel cartons
or equivalents multiplied by $0.03 assessment rate), which would not
cover budgeted expenses. By increasing the assessment rate from $0.03
to $0.04, assessment income would be $160,000 (4,000,000 7/10-bushel
cartons or equivalents multiplied by $0.04 assessment rate). This
amount should provide sufficient funds to meet anticipated 2024-2025
expenses, while adding money to the financial reserve.
Prior to arriving at this budget and assessment rate
recommendation, the Committee considered alternatives from the
Committee staff during a discussion at the June 18, 2024, meeting.
Staff prepared fifteen different proposed budgets with different
combinations of assessment rates, estimated shipments, and alternate
expenditure levels. The Committee determined maintaining expenses and
estimated shipments of 4,000,000 7/10-bushel cartons or equivalent of
oranges and grapefruit were representative of the 2024-2025 fiscal
period, and an assessment rate of $0.04 would cover expenditures and
add funds to the financial reserve. Consequently, the other
alternatives were rejected.
A review of historical and preliminary information pertaining to
the 2024-2025 fiscal period indicates the average producer price for
Texas oranges and grapefruit for the 2024-2025 season should be
approximately $14.15 per 7/10-bushel carton or equivalent. Therefore,
utilizing the recommended assessment rate of $0.04 per 7/10-bushel
carton or equivalent, assessment revenue for the 2024 fiscal period as
a percentage of total producer revenue would be approximately 0.2
percent ($0.04 divided by $14.15 times 100).
This proposed rule would increase 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, these costs
are expected be offset by the benefits derived by the operation of the
Order.
The Committee's meetings are widely publicized throughout the Texas
citrus industry and all interested persons are invited to attend the
meetings and participate in Committee deliberations on all issues. Like
all Committee meetings, the June 18, 2024, 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 comments
on this proposed rule, including the regulatory and information
collection impacts of this action on small businesses.
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
chapter 35), the Order's information collection requirements have been
previously approved by OMB and assigned OMB No. 0581-0189, Fruit Crops.
No changes in those requirements would be necessary because of this
proposed rule. Should any changes become necessary, they would be
submitted to OMB for approval.
This proposed rule would not impose any additional reporting or
recordkeeping requirements on either small or large Texas citrus
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.
AMS is committed to complying with the E-Government Act, to promote
the use of the internet and other information technologies to provide
increased opportunities for citizen access to Government information
and services, and for other purposes.
AMS has not identified any relevant Federal rules that duplicate,
overlap, or conflict with this proposed rule.
A small business guide on complying with fruit, vegetable, and
specialty crop marketing agreements and orders may be viewed at:
https://www.ams.usda.gov/rules-regulations/moa/small-businesses. Any
questions about the compliance guide should be sent to Antoinette
Carter at the previously mentioned address in the FOR FURTHER
INFORMATION CONTACT section.
After consideration of all relevant material presented, including
the information and recommendations submitted by the Committee and
other available information, AMS has determined that this proposed rule
is consistent with, and would effectuate the purposes of, the Act.
A 30-day comment period is provided to allow interested persons to
respond to this proposed rule. All written comments timely received
will be considered before a final determination is made on this
proposed rule.
List of Subjects in 7 CFR Part 906
Grapefruit, Marketing agreements, Oranges, Reporting and
recordkeeping requirements.
For the reasons set forth in the preamble, the Agricultural
Marketing Service proposes to amend 7 CFR part 906 as follows:
PART 906--ORANGES AND GRAPEFRUIT GROWN IN LOWER RIO GRANDE VALLEY
IN TEXAS
0
1. The authority citation for part 906 continues to read as follows:
Authority: 7 U.S.C. 601-674.
0
2. Section 906.235 is revised to read as follows:
Sec. 906.235 Assessment rate.
On and after August 1, 2024, an assessment rate of $0.04 per 7/10-
bushel
[[Page 3723]]
carton or equivalent is established for oranges and grapefruit grown in
the Lower Rio Grande Valley in Texas.
Erin Morris,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2025-00193 Filed 1-14-25; 8:45 am]
BILLING CODE P