[Federal Register Volume 59, Number 204 (Monday, October 24, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-26224]
Federal Register / Vol. 59, No. 204 / Monday, October 24, 1994 /
[[Page Unknown]]
[Federal Register: October 24, 1994]
VOL. 59, NO. 204
Monday, October 24, 1994
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 920
[Docket No. FV94-920-3FIR]
Expenses and Assessment Rate for the 1994-95 Fiscal Year for the
Marketing Order Covering Kiwifruit Grown in California
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: The Department of Agriculture (Department) is adopting as a
final rule, without change, the provisions of the interim final which
authorized expenses and established an assessment rate for the
Kiwifruit Administrative Committee (Committee) under Marketing Order
No. 920 for the 1994-95 fiscal year. Authorization of this budget
enables the Committee to incur expenses that are reasonable and
necessary to administer the program. Funds to administer this program
are derived from assessments on handlers.
EFFECTIVE DATE: August 1, 1994, through July 31, 1995.
FOR FURTHER INFORMATION CONTACT: Britthany Beadle, Marketing Order
Administration Branch, F&V, AMS, USDA, P.O. Box 96456, Room 2523-S,
Washington, DC 20090-6456; telephone: (202) 720-5127; or Rose Aguayo,
California Marketing Field Office, Fruit and Vegetable Division, AMS,
USDA, 2202 Monterey Street, Suite 102B, Fresno, CA 93721, telephone:
(209) 487-5901.
SUPPLEMENTARY INFORMATION: This final rule is issued under Marketing
Order No. 920 [7 CFR Part 920], as amended, regulating the handling of
kiwifruit 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 is issuing this rule in conformance
with Executive Order 12866.
This final rule has been reviewed under Executive Order 12778,
Civil Justice Reform. Under the marketing order provisions now in
effect, California kiwifruit are subject to assessments. It is intended
that the assessment rate as issued herein will be applicable to all
assessable California kiwifruit during the 1994-95 fiscal year
beginning August 1, 1994, through July 31, 1995. This final rule will
not preempt any State or local laws, regulations, or policies, unless
they present an irreconcilable conflict with this rule.
The Act provides that administrative proceedings must be exhausted
before parties may file suit in court. Under section 608c(15)(A) of the
Act, any handler subject to an order may file with the Secretary a
petition stating that the order, any provision of the order, or any
obligation imposed in connection with the order is not in accordance
with law and 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.
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA), the Administrator of 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 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 65 handlers of kiwifruit grown in
California who are subject to regulation under the kiwifruit marketing
order and approximately 600 producers of kiwifruit in the regulated
area. Small agricultural producers have been defined by the Small
Business Administration [13 CFR 121.601] as those having annual
receipts of less than $500,000, and small agricultural service firms
are defined as those whose annual receipts are less than $5,000,000.
The majority of kiwifruit producers and handlers may be classified as
small entities.
The kiwifruit marketing order, administered by the Department,
requires that the assessment rate for a particular fiscal year apply to
all assessable kiwifruit handled from the beginning of such year. The
budget of expenses for the 1994-95 fiscal year was prepared by the
Committee, the agency responsible for local administration of this
marketing order, and submitted to the Department for approval. The
members of the Committee are producers of California kiwifruit. They
are familiar with the Committee's needs and with the costs for goods,
services, and personnel in their local area and are thus in a position
to formulate an appropriate budget. The budget was formulated and
discussed in public meetings. Thus, all directly affected persons have
an opportunity to participate and provide input.
The assessment rate recommended by the Committee was derived by
dividing anticipated expenses by expected shipments of kiwifruit.
Because that rate is applied to actual shipments, 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 are usually acted upon by the Committee shortly before a
season 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 Committee met on June 15, 1994, and unanimously recommended
1994-95 marketing order expenditures of $167,862 and an assessment rate
of $0.01 per tray or tray equivalent of kiwifruit. In comparison, 1993-
94 marketing year budgeted expenditures were $156,150, which is $11,712
less than the $167,862 recommended for this fiscal year. The assessment
rate of $0.01 per tray or tray equivalent is the same as last year's
assessment rate. The major budget category for 1994-95 is $98,360 for
administrative, staff and field salaries.
Assessment income for 1994-95 is estimated to total $110,000 based
on anticipated fresh domestic shipments of 11 millions trays or tray
equivalents of kiwifruit. The assessment income will have to be
augmented by $57,862 from the Committee's reserves to provide adequate
funds to cover budgeted expenses. Funds in the reserve at the end of
the 1993-94 fiscal year are estimated to be $87,138. The reserve fund
will be within the maximum permitted by the order of one fiscal year's
expenses.
An interim final rule was published in the Federal Register [59 FR
41379, August 12, 1994] and provided a 30-day comment period for
interested persons. No comments were received.
While this action 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 from the operation of the
marketing order. Therefore, the Administrator of the AMS has determined
that this action will not have a significant economic impact on a
substantial number of small entities.
It is found that the specified expenses for the marketing order
covered in this rule are reasonable and likely to be incurred and that
such expenses and the specified assessment rate to cover such expenses
will tend to effectuate the declared policy of the Act.
It is further found that good cause exists for not postponing the
effective date of this action until 30 days after publication in the
Federal Register [5 U.S.C. 443] because the Committee needs to have
sufficient funds to pay its expenses which are incurred on a continuous
basis. The 1994-95 fiscal year for the program began August 1, 1994.
The marketing order requires that the rate of assessment apply to all
assessable kiwifruit handled during the fiscal year. In addition,
handlers are aware of this action which was recommended by the
Committee at a public meeting and published in the Federal Register as
an interim final rule.
No comments were received concerning the interim final rule that is
adopted in this action as a final rule without change.
List of Subjects in 7 CFR Part 920
Kiwifruit, Marketing agreements, Reporting and recordkeeping
requirements.
For the reason set forth in the preamble, 7 CFR Part 920 is amended
as follows:
PART 920--KIWIFRUIT GROWN IN CALIFORNIA
Accordingly, the interim final rule amending 7 CFR Part 920 which
was published at 59 FR 41379 on August 12, 1994, is adopted as a final
rule without change.
Dated: October 18, 1994.
Eric M. Forman,
Acting Director, Fruit and Vegetable Division.
[FR Doc. 94-26224 Filed 10-21-94; 8:45 am]
BILLING CODE 3410-02-P
