[Federal Register Volume 62, Number 12 (Friday, January 17, 1997)]
[Rules and Regulations]
[Pages 2549-2550]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-1161]
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DEPARTMENT OF AGRICULTURE
7 CFR Part 932
[Docket No. FV96-932-4 IFR]
Olives Grown In California; 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 for the
California Olive Committee (Committee) under Marketing Order No. 932
for the 1997 fiscal year and subsequent fiscal years. The Committee is
responsible for local administration of the marketing order which
regulates the handling of olives grown in California. Authorization to
assess olive handlers enables the Committee to incur expenses that are
reasonable and necessary to administer the program.
DATES: Effective on January 1, 1997. Comments received by February 18,
1997, 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 in triplicate to the Docket
Clerk, Fruit and Vegetable Division, AMS, USDA, P.O. Box 96456, room
2525-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: Mary Kate Nelson, Marketing Assistant,
California Marketing Field Office, Fruit and Vegetable Division, AMS,
USDA, 2202 Monterey Street, suite 102B, Fresno, California 93721,
telephone (209) 487-5901, FAX (209) 487-5906, or Tershirra Yeager,
Program Assistant, Marketing Order Administration Branch, Fruit and
Vegetable Division, AMS, USDA, P.O. Box 96456, room 2525-S, Washington,
DC 20090-6456, telephone (202) 720-5127, FAX (202) 720-5698. Small
businesses may request information on compliance with this regulation
by contacting: Jay Guerber, Marketing Order Administration Branch,
Fruit and Vegetable Division, AMS, USDA, P.O. Box 96456, room 2525-S,
Washington, DC 20090-6456, telephone (202) 720-2491, FAX (202) 720-
5698.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement No. 148 and Order No. 932, both as amended (7 CFR part 932),
regulating the handling of olives grown in California, hereinafter
referred to as the ``order.'' 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 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, California
olive 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
olives beginning January 1, 1997, and continuing 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.
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.
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. Interested persons are invited to
submit information on the regulatory and informational impacts of this
action on small businesses.
There are approximately 1,200 producers of olives in the production
area and approximately 4 handlers subject to regulation under the
marketing order. Small agricultural producers have been defined by the
Small Business Administration (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. None
of the olive handlers may be classified as small entities, while the
majority of olive producers may be classified as small entities.
The olive 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
California olives. 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.
The Committee met on December 11, 1996, and recommended 1997
expenditures of $2,159,265 and an assessment rate of $14.99 per ton
covering olives from the appropriate crop year. The vote on the
assessment rate was 13 in favor and 1 opposed, with the opposing grower
maintaining that the assessment is not sufficient for the industry's
needs. In comparison, last year's budgeted expenditures were
$2,600,785. The assessment rate of $14.99 is $13.27 lower than last
year's established rate. Major expenditures recommended by the
Committee for the 1997 fiscal year include $390,890 for
[[Page 2550]]
administration, $173,375 for research, and $1,595,000 for market
development. Budgeted expenses for these items in 1996 were $388,350,
$213,000, and $1,999,435 respectively.
The order requires that the assessment rate for a particular fiscal
year apply to all assessable olives handled during the appropriate crop
year, which for this season is August 1, 1996, through July 31, 1997.
The assessment rate recommended by the Committee was derived by
dividing anticipated expenses by actual receipts of olives by handlers
during the crop year. Because that rate is applied to actual receipts,
it must be established at a rate which will produce sufficient income
to pay the Committee's expected expenses.
The recommended budget and rate of assessment is usually acted upon
by the Committee after the crop year begins and before the fiscal year
starts, and expenses are incurred on a continuous basis. Therefore, the
budget and assessment rate approval must be expedited so that the
Committee will have funds to pay its expenses. The olive receipts for
the year are 144,075 tons which should provide $2,159,684 in assessment
income. Income derived from handler assessments will be adequate to
cover budgeted expenses. Funds in the reserve will be kept within the
maximum permitted by the order.
This action will reduce the assessment obligation imposed on
handlers. The assessments will be uniform for all handlers. The
assessment costs will be offset by the benefits derived from the
operation of the marketing order. Therefore, 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 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 year 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
1997 budget and those for subsequent fiscal years will be reviewed and,
as appropriate, approved by the Department.
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 1997
fiscal year began on January 1, 1997, and the marketing order requires
that the rate of assessment for each fiscal year apply to all
assessable olives handled during the appropriate crop year; (3)
handlers are aware of this action which was 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 rule.
List of Subjects in 7 CFR Part 932
Marketing agreements, Olives, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 932 is
amended as follows:
PART 932--OLIVES GROWN IN CALIFORNIA
1. The authority citation for 7 CFR part 932 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
2. A new subpart--Assessment Rates and a new Sec. 932.230 are added
to read as follows:
Note: This section will appear in the Code of Federal
Regulations.
Subpart--Assessment Rates
Sec. 932.230 Assessment rate.
On and after January 1, 1997, an assessment rate of $14.99 per ton
is established for assessable olives grown in California.
Dated: January 10, 1997.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 97-1161 Filed 1-16-97; 8:45 am]
BILLING CODE 3410-02-P
