[Federal Register Volume 62, Number 205 (Thursday, October 23, 1997)]
[Rules and Regulations]
[Pages 55146-55150]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-28130]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 930
[Docket No. FV97-930-1 IFR]
Tart Cherries Grown in the States of Michigan, New York,
Pennsylvania, Oregon, Utah, Washington, and Wisconsin; Assessment Rate
and Establishment of Late Payment and Interest Charges on Delinquent
Assessments
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
1997-98 and subsequent fiscal periods to cover expenses incurred by the
Cherry Industry Administrative Board (Board) under Marketing Order No.
930. This rule also establishes an interest rate and late payment
charge on delinquent assessments owed by handlers under the tart cherry
marketing order. The Board is responsible for local administration of
the marketing order. Authorization to assess tart cherry handlers will
enable the Board to incur expenses that are reasonable and necessary to
administer the program. The interest rate and late payment charges will
contribute to the efficient operation of the program by ensuring
adequate funds are available to cover budgeted expenses incurred under
the marketing order. The 1997-98 fiscal period covers the period July
1, through June 30.
DATES: Effective on October 24, 1997. Comments received by December 22,
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, room 2525-S, P.O. Box
96456, Washington, DC 20090-6456; Fax: (202) 720-5698. All comments
should reference the docket number and the date and page number of this
issue of the Federal Register and will be made available for public
inspection in the Office of the Docket Clerk during regular business
hours.
FOR FURTHER INFORMATION CONTACT: Patricia A. Petrella, Marketing
Specialist, and Kenneth G. Johnson, Regional Manager, DC Marketing
Field Office, 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. 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 and Order No. 930 (7 CFR part 930), regulating the handling
of tart cherries grown in the States of Michigan, New York,
Pennsylvania, Oregon, Utah, Washington, and Wisconsin, 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 rule has been reviewed under Executive Order 12988, Civil
Justice Reform. Under the marketing order now in effect, tart cherry
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 tart cherries
beginning July 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.
The tart cherry marketing order in section 930.31 provides that one
of the duties of the Board is to submit to the Secretary a budget for
each fiscal period, prior to the beginning of such period, including a
report explaining the items appearing therein and a recommendation as
to the rates of assessments for such period. The recommendations
concerning the proposed assessment rate are discussed in a public
meeting. Thus, all directly affected persons have an opportunity to
participate and provide input.
At its meeting on January 8 and 9, 1997, the Board unanimously
recommended expenditures of $650,000, and an assessment rate of $0.0025
per pound of tart cherries handled during the 1997-1998 crop year and
subsequent crop years. The recommended expenditure figure covers
expenses for the 1997-98 fiscal period, as well as expenses incurred in
connection with the start-up of the program beginning on January 1,
1997, when the first public meeting of the newly formed Board took
place. The tart cherry marketing order became effective on September
25, 1996. The Department has approved the Board's 1997-98 budget of
expenses. Until assessment income is available, the Board may obtain
funds through a lending institution to fund Board operations.
[[Page 55147]]
The Board will begin to assess handlers as soon as possible after
the effective date of this interim final rule, and all assessments will
be due to the Board office by November 30, 1997, for this season only.
Future assessment payments will be due to the Board office by October
1. Major expenditures recommended by the Board for the 1997-98 fiscal
period, ending June 30, 1998, and expenditures for the prior six
months, are $25,000 for interest, $175,000 for Board meeting expenses,
$150,000 for salaries, $100,000 for administration, and $200,000 for
compliance. For the six month period from January 1, 1997, through June
30, 1997, the expenses were $59,000.
The assessment rate recommended by the Board was derived by
dividing anticipated expenses by expected shipments of tart cherries.
Tart cherry shipments for the 1997-98 crop year were estimated at 260
million pounds and were projected to provide $650,000 in assessment
income which, along with interest income, should have been adequate to
cover budgeted expenses. At this time, actual production figures are
available. Crop production for the 1997-98 season is now projected at
278,989,653 pounds. Assessment income, based on this crop, will be
adequate to cover this year's expenses, even with the reduced
assessment rate for juice, juice concentrate and puree. Funds in any
reserve will be kept within the current approximately one year's
operational expenses permitted by the order.
This interim final rule establishes an interest rate of 12 percent
per annum and a late payment charge equal to 10 percent of the unpaid
balance of the assessment amount due. The interest rate will be applied
to any assessment not paid within 30 days of the October 1 due date.
However, the October 1 date will be extended to November 30, 1997, for
the 1997-98 crop year only. The late payment fee on the unpaid
assessment balance by a handler will be assessed 90 days after the
October 31 due date for this season and October 1 for future seasons.
Section 930.41(a) of the marketing order provides for the payment
by handlers of a pro-rata share of the cost of administering the
program under the order. The payment is in the form of a uniform
assessment rate applied to each handler's cherry acquisitions. In
addition, section 930.41(f) provides that assessments will be
calculated on the basis of pounds handled provided that the formula
adopted by the Board and approved by the Secretary for determining the
rate of assessment will compensate for differences in the number of
pounds of cherries utilized for various cherry products and the
relative market values of such cherry products.
Section 930.41 also provides that if a handler does not pay an
assessment within the time prescribed by the Board, the assessment may
be subject to an interest or late payment charge, or both.
A new section 930.141, specifies that assessments be subject to an
interest charge of 1 percent per month on any unpaid assessment balance
beginning 30 days from the due date prescribed by the Board. The Board
requires that all assessments be paid by October 1 of each crop year.
However, assessments will be due on November 30, 1997, for the 1997-98
season only. The October 1 date specified herein will apply to all
future seasons.
Assessments are the main source of funds to pay Board expenses. The
failure of handlers to pay assessment obligations promptly results in
added expense and operational problems for the Board. Authority was
placed in the order to levy interest and late payment charges on
delinquent assessments. The interest rate and late payment charges in
this interim final rule are similar to those established under other
marketing orders. To attempt to collect delinquent assessments, the
Board will incur the added expense of sending out additional invoices
and contacting each delinquent handler by phone, in person, or by fax.
Nonpayment or late payment of assessments hampers the operation of the
Board.
Handlers will have ample time to pay their assessments and avoid
incurring the additional charges. Any amount paid by the handler will
be credited upon receipt in the Board office.
Interest and late payment charges will provide incentive for
handlers to remit assessments in a timely manner, with the intent of
creating a fair and equitable process among all industry handlers. It
will not impose any costs on handlers who pay their assessments on
time, and will contribute to the efficient administration of the
program.
In its deliberations, the Board discussed lower rates when
recommending the interest rate and late payment charge but decided that
prompt payment of assessments by handlers was crucial to the operation
of the program. Therefore, the Board recommended an interest rate and
late payment charge deemed to be sufficient to serve as an incentive to
handlers to be prompt with their payment of assessments.
A proposed rule concerning this action was issued by the Department
on June 27, 1997, and published in the Federal Register on Thursday,
July 3, 1997 (62 FR 36020). The rule was made available through the
Internet by the Office of the Federal Register. A 30-day comment
period, which ended on August 4, 1997, was provided to allow interested
persons to respond to the proposal.
Two comments were received during the comment period in response to
the proposal. The commenters, representing a tart cherry grower--
handler, and an industry organization, opposed the proposed rule.
The first commenter urged the Department to reject the proposed
rule because the commenter is concerned that the Board may be
improperly constituted at this time and unable to administer any
program under 7 CFR part 930 in a legitimate manner. The commenter
stated that some of the Board members' participation in certain sales
constituencies, should be addressed. The commenter further stated that
no decision recommended to the Secretary by the Board should be
finalized or be allowed to be imposed upon the industry in an interim
final fashion.
The Board was properly nominated in accordance with Department
procedures, and selected on December 20, 1996. The Board recommended an
assessment rate and late payment and interest charge at its January
1997 meeting. At that time, one of the sales constituencies in question
had not yet been established. Concerns which have been raised about the
constituency and questions about the eligibility of certain members to
serve on the Board are currently under review by the Department.
The second commenter raised eight issues in his comment. First, the
commenter stated that the public and the industry cannot respond
effectively to the proposed assessment without knowing how the money
will be used, and that it is impossible to determine, for example,
whether the money will be spent in conformity with the marketing order.
The commenter also stated that the fact that the proposed assessment
rate is formulated and discussed at a public meeting and that affected
persons have an opportunity to participate and provide input is
irrelevant.
The proposed rule contained a description of the major expenditures
recommended by the Board which is repeated here. The Board's
recommendation regarding such expenditures are subject to approval by
the Department. Furthermore, the Department has oversight
responsibility over marketing order committees to ensure that marketing
order funds,
[[Page 55148]]
collected through handler assessments, are spent in accordance with
order provisions. The public is provided the opportunity to comment on
whether the assessment rate is at an appropriate level to fund the
activities of the Board. In addition, since all meetings are opened to
the public, interested persons can raise concerns and such concerns can
be discussed in an open forum. This allows another opportunity for
public input in this rulemaking procedure.
Second, while recognizing that the assessment is subject to legal
challenge and judicial review, it is the commenters view that, under
the regulations, handlers should receive a refund if their challenge is
successful. The commenter asked that the proposal be modified to
provide for such refund and to ban interest and late payments (which
the commenter called a ``tax'') while a good faith legal challenge is
pending.
The Act provides that handlers regulated by marketing orders pay
their pro-rata share of expenses, as the Secretary may find are
reasonable and likely to be incurred during a specified period for the
maintaining and functioning of the marketing order. It does not impose
any requirements concerning refunds. Furthermore, late charges and
interest payments are not a tax and are common in many of USDA's
commodity programs.
Commenter's third point in opposition to the rule was that it
cannot be made retroactive to cherries already received by handlers.
The assessments imposed by the rule are consistent with provisions of
the order which provide for the payment of assessments on cherries
handled during a specified fiscal period to cover costs of
administering the program. The order further provides that, in the
event it is found that an increase in the assessment rate is needed to
cover expenses, such increase would apply to all cherries handled
during the period. Therefore, retroactivity is not at issue in this
rulemaking.
The fourth issue raised by the commenter stated that the Department
has not published sufficient rules and regulations designed to
implement this new marketing order. Therefore, the industry cannot
judge whether or not the program is being administered in accordance
with the order so that it should be supported with assessments. It was
also the commenter's view that there was ample time to develop
regulations through notice and comment rulemaking and therefore interim
final rules should not be used.
The Board has worked diligently in discussing and formulating rules
and regulations to implement authorities under this new marketing
order. It met January, February, March, June and September of 1997, and
recommended rulemaking actions at various meetings. However, since this
is a new program, these recommendations needed to be discussed at more
than one meeting, and in some instances, modified. Therefore, there was
not as much time as the commenter suggests to develop and publish the
various rules necessary to administer the program.
The fifth issue raised by the commenter concerns the make-up of the
Board. The commenter states that most Board members have become
disqualified because of their membership in two cooperatives, and that
no corrective action has been taken to resolve this matter.
The Department is aware of this issue and it is currently under
review. As soon as such review is completed, the Department will take
any action which is deemed necessary.
The sixth issue raised by the commenter stated that the proposal
provides for assessments that will continue from season to season. The
commenter stated that this is improper especially since this is a new
program. The industry may not wish to fund succeeding years' budgets at
this level, especially if volume controls are not used, or may wish to
delete certain budget items in their entirety.
As previously stated in the proposed rule, this assessment rate
established by this interim final rule will continue in effect until
the Board recommends a change to the assessment rate or the Department
sees a need for such a change. If volume regulations are not
implemented during a crop year, the Board would be asked to consider
the impact of that on its budget and whether a decrease in the
assessment rate is warranted. The Department would then issue a
proposed rule recommending establishment of a new assessment rate for
the tart cherry industry.
Seventh, the commenter stated that the proposal improperly assumes
that the Secretary will impose volume control, and includes at least
$200,000 to fund such program. No such decision has been made. The
commenter further states that no proposed rule regarding volume
regulation has ever been placed in the Federal Register. The commenter
asserted that the proposed assessment should be reduced to reflect the
lack of any volume control during the 1997-98 season.
The Board formulated its budget in January 1997 and allocated funds
for compliance if volume regulation were recommended and imposed. In
the absence of volume control, appropriate adjustments can be made to
the budget.
Finally, the commenter stated that the 12 percent interest rate and
10 percent late payment penalty are excessive and unreasonable. At
most, the interest charged should not exceed the marginal rate charged
to the Board for any actual borrowings needed to meet current needs.
The commenter further stated that the final rule should include a grace
period for handlers who are in good faith experiencing financial
difficulty. In addition, handlers should not have to pay assessments
until cherries are sold.
As previously stated, the Board reviewed the interest rate and late
payment charge and decided that it had to be large enough to be a
penalty and to encourage handlers to pay their assessments on time. The
rates established are similar to those established under other
marketing orders. Handlers will have until October 1 to pay their
assessments which is adequate time for handlers to plan for such
payment. Since handlers are assessed uniformly, the due date should be
uniform across the industry. The Board cannot wait for payment of
assessments while handlers are selling their cherries at various times.
Accordingly, no changes will be made to the proposed rule, based on
the comments received. However, the Department is issuing this interim
final rule to provide an additional opportunity for the public to
comment on the modification discussed below.
The order provides that when an assessment rate based on the number
of pounds of cherries handled is established it should provide for
differences in relative market values for various cherry products. The
discussion of this provision in the order promulgation record indicates
that proponents testified that high value products such as frozen,
canned, or dried cherries would be assessed one rate while cherries
used to make low value products such as juice, juice concentrate or
puree would be assessed at one half that rate. Since the $0.0025/pound
assessment proposed by the Board does not reflect such differences in
product value, the rule, as previously proposed, will be modified and
the $0.0025/pound assessment rate will be applicable to cherries used
in products other than juice, juice concentrate, or puree. The USDA is
modifying this action to reflect the intent of the order by setting a
rate of $0.0125 per pound for cherries used in juice, juice concentrate
or puree. This rate is based on the evidence presented by the
proponents of the order. Interested persons will have the opportunity
to
[[Page 55149]]
comment on this modified rule. If it is determined the assessment rates
do not generate sufficient funds to cover expenses, the order
authorizes the Secretary to increase the rate any time during or after
the fiscal period. The Department and the Board will continue to study
this matter to see if any other products should have different
assessment rates.
Data from the National Agricultural Statistics Service (NASS)
states that for 1996, utilization for juice, wine or brined uses was
8.0 million pounds for all districts covered under the marketing order.
The total processed amount for tart cherries for the 1996 crop year was
256.1 million pounds. Juice, wine, or brined represents about 3 percent
of the total processed crop. Data for this season is not available at
this time. However, based on the data from the previous season, it
seems that juice, juice concentrate and puree is a very small
percentage of the crop. Therefore, the modification discussed above
should have an insignificant effect on the monies collected for
assessments this season. As previously discussed the Board could
recommend an increase in the assessment rate if such rate does not
generate the funds needed for this season.
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA), the Agricultural Marketing Service (AMS) has considered the
economic impact of this action on small entities. Accordingly, AMS has
prepared this regulatory flexibility analysis.
The purpose of the RFA is to fit regulatory actions to the scale of
business subject to such actions in order that the 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 1,220 producers of tart cherries in the
production area and approximately 40 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. The majority of tart cherry producers and handlers may be
classified as small entities.
This rule establishes an assessment rate for the 1997-98 and
subsequent fiscal periods to cover expenses of the Board at $0.0025 per
pound of tart cherries used in the production of tart cherry products
other than juice, juice concentrate and puree, and $0.0125 per pound
for juice, juice concentrate and puree. The Board unanimously
recommended expenditures of $650,000 for expenses incurred during the
1997-98 fiscal period as well as for those incurred during the start-up
period beginning January 1, 1997. From January 1, 1997, through June
30, 1997, the expenses for this six month period was $59,000. The
expenses for the 1997-98 fiscal period are projected at $591,000. Tart
cherry shipments for the year were estimated at 260 million pounds,
which would have provided $650,000 in assessment income (260,000,000
pounds at $0.0025 per pound) and would have been adequate to cover this
year's expenses. At this time, actual production figures are available.
Crop production for the 1997-98 season is 278,989,653 pounds, which,
even with the reduced assessment rate for juice, juice concentrate, and
puree, will provide adequate assessment income to cover this year's
expenses. Funds in any reserve will be kept within the maximum
permitted under the order.
The Board discussed alternatives when recommending the interest
rate and late payment charge. The Board discussed lower rates, but
decided that prompt payment of assessments by handlers is crucial to
the operation of the program. Therefore, the Board recommended an
interest rate and late payment charge deemed to be sufficient to serve
as an incentive to handlers to be prompt with their payment of
assessments.
Major expenditures recommended for the 18-month period ending in
June 30, 1998, include $25,000 for interest, $175,000 for Board meeting
expenses, $150,000 for salaries, $200,000 for program compliance. The
$200,000 for compliance was deemed necessary in the event volume
control regulations are implemented during the 1997-98 season. The
Board discussed setting an assessment rate that would allow for
sufficient operation of a volume control program for the upcoming
season. With regards to alternatives, this rate may be adjusted by the
Secretary, if necessary. Accordingly, the Department believes that
since the assessments are necessary to make funds available to cover
the initial costs of implementing the new order, including operation of
a volume control program for the upcoming season, if implemented, the
assessment rate will be as recommended by the Board, and modified by
the Department.
This action will not impose any additional reporting or
recordkeeping on either small or large tart cherry 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. The new forms for
the operation of the order have been approved by the Office of
Management and Budget (OMB) and have been assigned OMB No. 0581-0177.
The interest and late payment charges were also discussed at a
public meeting. The Board believes the interest charge is a reasonable
rate. The late payment fee is high enough to discourage late payments
and encourage the timely payment of assessments by handlers.
This interim final rule provides incentive for handlers to remit
assessments in a timely manner, with the intent of creating a fair and
equitable process among all industry handlers. It will not impose any
costs on handlers who pay their assessments on time, and will
contribute to the efficient administration of the program.
Handlers who do not pay their assessments on time will be able to
reap the benefits of Board programs at the expense of others. In
addition, they will be able to utilize funds for their own use that
will otherwise be paid to the Board to finance Board programs. In
effect, this will provide handlers with an interest free loan.
Implementing interest and late payment charges will provide an
incentive for handlers to pay assessments on time, which will improve
compliance with the order. It will minimize actions taken against
handlers who fail to pay assessments on time through administrative
remedies or the Federal courts. These remedies, currently the only
recourse against handlers who fail to pay assessments, can be costly
and time consuming. This interim final rule will remove any economic
advantage gained by those handlers who do not pay on time, thus helping
to ensure a program that is equitable to all. This is also consistent
with standard business practices.
While this interim final 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.
This interim final rule will not impose any additional reporting or
recordkeeping requirements on either small or large tart cherry
handlers. As
[[Page 55150]]
with all Federal marketing order programs, reports and forms are
periodically reviewed to reduce information requirements and
duplication by industry and public sector agencies. The Department has
not identified any relevant Federal rules that duplicate, overlap, or
conflict with this final rule. In addition, the Board's meeting was
widely publicized throughout the tart cherry industry and all
interested persons were invited to attend the meeting and participate
in Board deliberations on all issues. Like all Board meetings, the
January 8 and 9, 1997, meeting was a public meeting and all entities,
both large and small, were able to express views on these issues.
Finally, interested persons were invited to submit information on the
regulatory and informational impacts of this final rule on small
businesses, and none were received.
The assessment rate, interest rate and late payment charge
established in this interim final rule will continue in effect
indefinitely unless modified, suspended, or terminated by the Secretary
upon recommendation and information submitted by the Board or other
available information.
Although the assessment rate, interest rate and late payment charge
will be effective for an indefinite period, the Board 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 and interest rates and late payment charge. The dates and
times of Board meetings are available from the Board or the Department.
Board meetings are open to the public and interested persons may
express their views at these meetings. The Department will evaluate
Board recommendations and other available information to determine
whether modification of the assessment or interest rates or late
payment charge is needed. Further rulemaking would be undertaken as
necessary. The Board's 1997-98 budget has already been approved by the
Department to allow the Board to expend funds that they have borrowed.
Budgets for subsequent fiscal periods will be reviewed and, as
appropriate, approved by the Department.
The Department has not identified any relevant Federal rules that
duplicate, overlap, or conflict with this rule.
A proposed rule concerning parts of this action was issued by the
Department on June 27, 1997, and published in the Federal Register on
July 3, 1997 (62 FR 36020). Copies of the proposed rule were also
mailed or sent via facsimile to all tart cherry handlers. Finally, the
proposal was made available through the Internet by the Office of the
Federal Register.
After consideration of all relevant material presented, including
the information and recommendation submitted by the Board 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.
This interim final rule invites comments on an assessment rate and
establishment of late payment and interest charges on delinquent
assessments. Any comments received will be considered prior to
finalization of this rule.
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) Handlers have received and are still receiving 1997-98
crop cherries from growers, the fiscal period began July 1, and the
assessment rate applies to all cherries received during the 1997-98 and
subsequent fiscal periods; (2) the Board has been operating using
borrowed funds and needs revenue to repay such funds and to continue
administering the program; and (3) handlers are aware of this rule,
which was recommended at a public meeting.
List of Subjects in 7 CFR Part 930
Marketing agreements, Reporting and recordkeeping requirements,
Tart cherries.
For the reasons set forth in the preamble, 7 CFR Part 930 is
amended as follows:
PART 930--TART CHERRIES GROWN IN THE STATES OF MICHIGAN, NEW YORK,
PENNSYLVANIA, OREGON, UTAH, WASHINGTON, AND WISCONSIN
1. The authority citation for 7 CFR Part 930 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
2. A new subpart--Administrative Rules and Regulations and a new
section 930.141 are added to read as follows:
Subpart--Administrative Rules and Regulations
Sec. 930.141 Delinquent assessments.
(a) Pursuant to Sec. 930.41, the Board shall impose an interest
charge on any handler whose assessment payment has not been received
within 30 days from the due date of October 1 of each crop year. The
interest rate shall be a rate of one percent per month and shall be
applied to the unpaid assessment balance for the number of days all or
any part of the unpaid balance is delinquent beyond the 30-day payment
period. In addition to the interest charge, the Board shall impose a
late payment charge on any handler whose payment charge has not been
received within 90 days from the due date of October 1. The late
payment charge shall be 10 percent of the unpaid balance.
(b) Due date for the 1997-98 fiscal period. For the 1997-98 fiscal
period, the due date for assessments shall be November 30, 1997. Any
interest charge for late assessment payments shall be accrued 30 days
after the November 30 due date and any late fee shall be accrued 90
days after the November 30 due date.
3. A new subpart--assessment rates and a new section 930.200 are
added to read as follows:
Subpart--Assessment Rates
Sec. 930.200 Handler assessment rate.
On and after the effective date of this rule, the assessment rate
imposed on handlers shall be $0.0025 per pound of cherries handled for
tart cherries grown in the production area and utilized in the
production of tart cherry products other than juice, juice concentrate,
or puree. The assessment rate for juice, juice concentrate, and puree
products shall be $0.0125 per pound.
Dated: October 17, 1997.
Robert C. Keeney,
Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 97-28130 Filed 10-20-97; 2:01 pm]
BILLING CODE 3410-02-P
