[Federal Register Volume 61, Number 124 (Wednesday, June 26, 1996)]
[Rules and Regulations]
[Pages 32922-32924]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-16303]
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DEPARTMENT OF AGRICULTURE
7 CFR Part 985
[Docket No. AO-79-2; FV95-985-4]
Spearmint Oil Produced in the Far West Order Amending the Order
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: This final rule amends the marketing order for spearmint oil
produced in the Far West. The Department of Agriculture (Department)
proposed this amendment, which was favored by spearmint oil producers
in a referendum. Previously, the order included in the regulated
production area the States of Washington, Idaho, Oregon, and portions
of Utah, Nevada, Montana, and California. This amendment redefines the
``production area'' to remove the portions of the States of Montana and
California. This amendment is designed to improve the administration,
operation, and function of the Far West spearmint oil program.
EFFECTIVE DATE: June 27, 1996.
FOR FURTHER INFORMATION CONTACT: Caroline C. Thorpe, Marketing
Specialist, Marketing Order Administration Branch, Fruit and Vegetable
Division, AMS, USDA, P.O. Box 96456, Room 2522-S, Washington, D.C.
20090-6456, telephone (202) 720-5127; or Robert Curry, Marketing
Specialist, Northwest Marketing Field Office, Marketing Order
Administration Branch, Fruit and Vegetable Division, AMS, USDA, 1220 SW
Third Avenue, room 369, Portland, Oregon 97204-2807, telephone: (503)
326-2724.
SUPPLEMENTARY INFORMATION: Prior documents in this proceeding: Notice
of Hearing was issued on October 4, 1995, and published in the Federal
Register on October 11, 1995 (60 FR 52869). Notice of Public Hearing:
Correction was issued on November 8, 1995, and published in the Federal
Register on November 13, 1995 (60 FR 57144). A Notice of order filed on
proposed rulemaking was issued on November 30, 1995, and published in
the Federal Register December 5, 1995 (60 FR 62229). The Emergency
Final Decision and Referendum Order was issued on February 13, 1996,
and published in the Federal Register on February 20, 1996 (61 FR
6329).
This administrative action is governed by the provision of sections
556 and 557 of title 5 of the United States Code, and is therefore
excluded from the requirements of Executive Order 12866.
This rule has been reviewed under Executive Order 12778, Civil
Justice Reform. This rule is not intended to have retroactive effect.
This rule will not preempt any State or local laws, regulations, or
policies, unless they present an irreconcilable conflict with this
rule.
The Agricultural Marketing Agreement Act of 1937 (Act), as amended
(7 U.S.C. 601 et seq.) 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. A 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 date of the entry of the ruling.
Preliminary Statement
This final rule was formulated on the record of a public hearing
held in Spokane, Washington, on November 14, 1995, to consider the
proposed amendment of Marketing Order No. 985, regulating the handling
of spearmint oil produced in the Far West, hereinafter referred to as
the ``order.'' The hearing was held pursuant to the provisions of the
Act and the applicable rules of practice and procedure governing
proceedings to formulate marketing agreements and marketing orders (7
CFR Part 900). The Notice of Hearing contained an amendment proposal
recommended by the Department.
The Department proposed this action to determine if portions of
both the States of California and Montana should continue to be
regulated under the order.
Upon the basis of evidence introduced at the hearing and the record
thereof, the Assistant Secretary for Marketing and Regulatory Programs
on February 13, 1996, filed with the Hearing Clerk, Department of
Agriculture, an Emergency Final Decision and Referendum Order,
directing that a referendum be conducted during the period March 2
through March 15, 1996, among all known producers of spearmint oil
produced in the Far West. The proposed amendment was favored by more
than the requisite two-thirds of spearmint oil producers voting in the
referendum. Based upon the referendum and other available information
the Department determined that the ``production area,'' the area
regulated under the order, no longer include portions of the states of
California and Montana.
There is no amended marketing agreement effective with this
amendment of the order. The original order was published in the April
14, 1980, Federal Register (45 FR 25040), as a final rule. At that
time, a marketing agreement was not approved by spearmint oil handlers
representing 50 percent or more of the volume of spearmint oil handled
by all handlers during the representative period.
The information collection requirements contained in the order and
regulation have been previously approved by the Office of Management
and Budget (OMB) under the provisions of the Paperwork Reduction Act of
1995 (Pub. L. 104-13) and have been assigned OMB numbers 0581-0065 for
Far West spearmint oil.
[[Page 32923]]
This rule will have no impact on the reporting burden of
approximately 8 handlers of spearmint oil as none of the handlers have
a history of receiving commercial production from the portions of
California or Montana removed from regulation under the order.
Small Business Consideration
In accordance with the provisions of the Regulatory Flexibility Act
(RFA) (5 U.S.C. 601 et seq.), the Agricultural Marketing Service has
determined that this action will not have a significant economic impact
on a substantial number of small entities. Small agricultural producers
have been defined by the Small Business Administration (SBA) (13 CFR
121.601) as those having annual receipts of less than $500,000. Small
agricultural service firms, which include handlers under this order,
are defined as those with annual receipts of less than $5 million.
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 and
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 the RFA and the Act have small entity orientation
and compatibility. Interested persons were invited to present evidence
at the hearing on the probable impact that the proposed amendment to
the order would have on small businesses.
During the 1994-95 marketing year from June 1, 1994, through May
31, 1995, 8 handlers were regulated under the order. In addition, there
are approximately 260 producers of spearmint oil in the regulated
production area. The Act requires the application of uniform rules on
regulated handlers. A minority of handlers and producers of Far West
spearmint oil may be classified as small entities. The order itself is
tailored to the size and nature of these small entities. Thus, both the
RFA and the Act are compatible with respect to small entities.
This amendment removes from the regulated production area the
portions of California and Montana currently regulated by the order.
This amendment is designed to enhance the administration and
functioning of the marketing order to the benefit of the industry.
Order Amending the Order Regulating the Handling of Spearmint Oil
Produced in the Far West
Findings and Determinations
The findings and determinations hereinafter set forth are
supplementary and in addition to the findings and determinations
previously made in connection with the issuance of the order; and all
of said previous findings and determinations are hereby ratified and
affirmed, except insofar as such findings and determinations may be in
conflict with the findings and determinations set forth herein.
(a) Findings and Determinations Upon the Basis of the Hearing
Record. Pursuant to the provisions of the Agricultural Marketing
Agreement Act of 1937, as amended (7 U.S.C. 601 et seq.), and the
applicable rules of practice and procedure effective thereunder (7 CFR
Part 900), a public hearing was held upon the proposed amendment to
Marketing Order No. 985 (7 CFR Part 985), regulating the handling of
spearmint oil produced in the Far West.
Upon the basis of the evidence introduced at such hearing and the
record thereof, it is found that:
(1) The order, as hereby amended, and all of the terms and
conditions thereof, will tend to effectuate the declared policy of the
Act;
(2) The order, as hereby amended, regulates the handling of
spearmint oil grown in the production area in the same manner as, and
is applicable only to persons in the respective classes of commercial
and industrial activity specified in the marketing order upon which
hearings have been held;
(3) The order, as hereby amended, is limited in application to the
smallest regional production area which is practicable, consistent with
carrying out the declared policy of the Act, and the issuance of
several orders applicable to subdivisions of the production area would
not effectively carry out the declared policy of the Act; and
(4) All handling of spearmint oil grown in the production area is
in the current of interstate or foreign commerce or directly burdens,
obstructs, or affects such commerce.
(b) Additional findings. It is necessary and in the public interest
to make this order amendment effective upon publication in the Federal
Register.
A later effective date would unnecessarily delay the implementation
of the order amendment and the improvement in operation of the
marketing order program. There has been uncertainty within the
spearmint oil industry for some time with respect to the possible
redefinition of the order's production area. Such uncertainty has the
potential of hampering the ability of individual producers and handlers
to make sound economic decisions concerning their operations. The
amendment could affect planting, contracting, lending and other
important economic decisions of those in the industry.
In view of the foregoing, it is hereby found and determined that
good cause exists to making this amendatory order effective upon
publication in the Federal Register, and that it would be contrary to
the public interest to delay the effective date of this order for 30
days after publication in the Federal Register (Sec. 553(d),
Administrative Procedure Act; 5 U.S.C. 551-559).
(c) Determinations. It is hereby determined that:
(1) Handlers (excluding cooperative associations of producers who
are not engaged in processing, distribution, or shipping the commodity
covered by the said order, as hereby amended) who, during the period
June 1, 1994, through May 31, 1995, handled not less than 50 percent of
the volume of such spearmint oil covered by the said order, as hereby
amended, have not signed a marketing agreement;
(2) The issuance of this amendatory order, amending the aforesaid
order, is favored or approved by at least two-thirds of the producers
who participated in a referendum on the question of its approval or
produced for market at least two-thirds of the volume of such commodity
represented in the referendum, all such producers, during the period
June 1, 1994, through May 31, 1995 (which has been deemed to be a
representative period), having been engaged within the production area
in the production of such spearmint oil; and
(3) In the absence of signed marketing agreements, the issuance of
this amendatory order is the only practical means pursuant to the
declared policy of the Act of advancing the interest of producers of
spearmint oil in the production area.
Order Relative to Handling
It is therefore ordered, That on and after the effective date
hereof, all handling of spearmint oil grown in the production area
shall be in conformity to, and in compliance with, the terms and
conditions of the said order as hereby amended as follows:
The provisions of the proposed marketing order amending the order
contained in the Emergency Final Decision issued by the Assistant
Secretary on February 13, 1996, and
[[Page 32924]]
published in the Federal Register on February 20, 1996, shall be and
are the terms and provisions of this order amending the order and are
set forth in full herein.
List of Subjects in 7 CFR Part 985
Marketing agreements, Oils and fats, Reporting and recordkeeping
requirements, Spearmint oil.
For the reasons set forth in the preamble, 7 CFR Part 985 is
amended as follows:
PART 985--MARKETING ORDER REGULATING THE HANDLING OF SPEARMINT OIL
PRODUCED IN THE FAR WEST
1. The authority citation for 7 CFR Part 985 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
2. Section 985.5 is revised to read as follows:
Sec. 985.5 Production area.
Production area means all the area within the States of Washington,
Idaho, Oregon, and that portion of Nevada north of the 37th parallel
and that portion of Utah west of the 111th meridian. The area shall be
divided into the following districts:
(a) District 1. State of Washington
(b) District 2. The State of Idaho and that portion of the States
of Nevada and Utah included in the production area.
(c) District 3. The State of Oregon.
Dated: June 19, 1996.
Michael V. Dunn,
Assistant Secretary, Marketing and Regulatory Programs.
[FR Doc. 96-16303 Filed 6-25-96; 8:45 am]
BILLING CODE 3410-02-P
