[Federal Register Volume 60, Number 214 (Monday, November 6, 1995)]
[Rules and Regulations]
[Pages 55989-55991]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-27392]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1131
[Docket No. AO-271-A32; DA-92-24]
Milk in the Central Arizona Marketing Area; Order Amending the
Order
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: This final rule removes the ``associated producer'' provisions
and revises the producer-handler definition in the Central Arizona
Federal milk order. The amendments, which were approved by two-thirds
of the producers in the market, are based on proposals presented at a
public hearing held in February 1992.
EFFECTIVE DATE: January 1, 1996.
FOR FURTHER INFORMATION CONTACT: Nicholas Memoli, Marketing Specialist,
USDA/AMS/Dairy Division, Order Formulation Branch, Room 2971, South
Building, P.O. Box 96456, Washington, DC 20090-6456, (202) 690-1932.
SUPPLEMENTARY INFORMATION: This administrative rule is governed by the
provisions of Sections 556 and 557 of Title 5 of the United States Code
and, therefore, is excluded from the requirements of Executive Order
12866.
The Regulatory Flexibility Act (5 U.S.C. 601-612) requires the
Agency to examine the impact of a proposed rule on small entities.
Pursuant to 5 U.S.C. 605(b), the Administrator of the Agricultural
Marketing Service has certified that this action will not have a
significant economic impact on a substantial number of small entities.
The amended order will promote orderly marketing of milk by producers
and regulated handlers.
This final rule has been reviewed under Executive Order 12278,
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 the rule.
The Agricultural Marketing Agreement Act of 1937, as amended (7
U.S.C. 601-674), 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 the law and requesting a modification of an order or to
be exempted from the order. A handler is afforded the opportunity for a
hearing on the petition. After a 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
its 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 the date of the entry of the ruling.
Prior documents in this proceeding:
Notice of Hearing: Issued December 21, 1992; published December 30,
1992 (57 FR 62241).
Recommended Decision: Issued December 15, 1993; published December
22, 1993 (57 FR 67703).
Extension of Time for Filing Exceptions: Issued February 4, 1994;
published February 14, 1994 (59 FR 6916).
Revised Recommended Decision: Issued November 4, 1994; published
November 14, 1994 (59 FR 56414).
Final Decision: Issued September 19, 1995; published September 28,
1995 (60 FR 50139).
Findings and Determinations
The findings and determinations hereinafter set forth supplement
those that were made when the Central Arizona order was first issued
and when it was amended. The previous findings and determinations are
hereby ratified and confirmed, except where they may conflict with
those set forth herein.
[[Page 55990]]
The following findings are hereby made with respect to the Central
Arizona order:
(a) Findings 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. 601-674), and the applicable rules of practice and
procedure governing the formulation of marketing agreements and
marketing orders (7 CFR Part 900), a public hearing was held upon
certain proposed amendments to the tentative marketing agreement and to
the order regulating the handling of milk in the Central Arizona
marketing area.
Upon the basis of the evidence introduced at such hearing and the
record thereof it is found that:
(1) The Central Arizona order, as hereby amended, and all of the
terms and conditions thereof, will tend to effectuate the declared
policy of the Act;
(2) The parity prices of milk, as determined pursuant to section 2
of the Act, are not reasonable in view of the price of feeds, available
supplies of feeds, and other economic conditions which affect market
supply and demand for milk in the marketing area, and the minimum
prices specified in the order, as hereby amended, are such prices as
will reflect the aforesaid factors, insure a sufficient quantity of
pure and wholesome milk, and be in the public interest; and
(3) The Central Arizona order, as hereby amended, regulates the
handling of milk in the same manner as, and is applicable only to
persons in the respective classes of industrial and commercial activity
specified in, the marketing agreement upon which a hearing has been
held.
(b) Determinations. It is hereby determined that:
(1) The refusal or failure of handlers (excluding cooperative
associations specified in Section 8c(9) of the Act) of more than 50
percent of the milk, which is marketed within the specified marketing
area, to sign a proposed marketing agreement, tends to prevent the
effectuation of the declared policy of the Act;
(2) The issuance of this order amending the Central Arizona order
is the only practical means pursuant to the declared policy of the Act
of advancing the interests of producers as defined in the order as
hereby amended;
(3) The issuance of the order amending the Central Arizona order is
favored by at least two-thirds of the producers who were engaged in the
production of milk for sale in the marketing area.
List of Subjects in 7 CFR Part 1131
Milk marketing orders.
Order Relative to Handling
It is therefore ordered, that on and after the effective date
hereof, the handling of milk in the Central Arizona marketing area
shall be in conformity to and in compliance with the terms and
conditions of the order, as amended, and as hereby further amended, as
follows:
PART 1131--MILK IN THE CENTRAL ARIZONA MARKETING AREA
1. The authority citation for 7 CFR Part 1131 reads as follows:
Authority: 7 U.S.C. 601-674.
2. In Sec. 1131.10, paragraph (a)(3) is redesignated as (a)(4), a
new paragraph (a)(3) is added, and paragraph (a)(1)(ii) is revised to
read as follows:
Sec. 1131.10 Producer-handler.
* * * * *
(a) * * *
(1) * * *
(ii) Fluid milk products obtained by transfer or diversion from
pool plants, other order plants, or from a handler described in
Sec. 1131.9(b), in an amount not to exceed 5 percent of its fluid milk
product disposition for the month or 5,000 pounds, whichever is less;
(2) * * *
(3) Does not distribute fluid milk products to a wholesale customer
who also is serviced by a handler described in Sec. 1131.9 (a) or (d)
that supplied the same product in the same-sized package with a similar
label to the wholesale customer during the month; and
* * * * *
Sec. 1131.13 [Amended]
3. In Sec. 1131.13 paragraphs (a)(2) and (b)(1), the words ``that
is not a producer-handler plant,'' are removed.
Secs. 1131.21 and 1131.22 [Removed]
4. Sections 1131.21 and 1131.22 are removed.
5. In Sec. 1131.30, paragraph (d) is redesignated as paragraph (e),
in newly designated (e) the words ``(a) through (c)'' are revised to
read ``(a) through (d)'', and a new paragraph (d) is added to read as
follows:
Sec. 1131.30 Reports of receipts and utilization.
* * * * *
(d) Each handler described in Sec. 1131.10 shall report:
(1) The pounds of milk received from each of the handler's own-farm
production units, showing separately the production of each farm unit
and the number of dairy cows in production at each farm unit;
(2) Fluid milk products and bulk fluid cream products received at
its plant or acquired for route disposition from pool plants, other
order plants, and handlers described in Sec. 1131.9(b);
(3) Receipts of other source milk not reported pursuant to
paragraph (d)(2) of this section;
(4) Inventories at the beginning and end of the month of fluid milk
products and products specified in Sec. 1131.40(b)(1); and
(5) The utilization or disposition of all milk and milk products
required to be reported pursuant to this paragraph.
* * * * *
Sec. 1131.33 [Removed]
6. Section 1131.33 is removed.
7. In Sec. 1131.42 paragraph (d)(2)(vi), the words ``pursuant to
Sec. 1131.22 or'' are removed, and the introductory text of paragraph
(c) and paragraph (c)(1) are revised to read as follows:
Sec. 1131.42 Classification of transfers and diversions.
* * * * *
(c) Transfers and diversions to producer-handlers. Skim milk or
butterfat transferred or diverted from a pool plant or diverted from a
handler described in Sec. 1131.9(b) to a producer-handler under this or
any other order shall be classified:
(1) As Class I milk, if transferred or diverted in the form of a
fluid milk product; and
* * * * *
Sec. 1131.44 [Amended]
8. In Sec. 1131.44(a)(4), the word ``.ilk'' is revised to read
``milk''.
9. In Sec. 1131.50, paragraph (a) is revised to read as follows:
Sec. 1131.50 Class prices.
* * * * *
(a) The Class I price shall be the basic formula price for the
second preceding month plus $2.52.
* * * * *
10. In Sec. 1131.61, paragraph (b) is removed, paragraphs (c)
through (f) are redesignated as paragraphs (b) through (e), and newly
redesignated paragraph (d) is amended by removing paragraph (d)(3) and
revising paragraphs (d)(1) and (d)(2) to read as follows:
Sec. 1131.61 Computation of uniform price.
* * * * *
(d) * * *
(1) The total hundredweight of producer milk; and
[[Page 55991]]
(2) The total hundredweight for which a value is computed pursuant
to Sec. 1131.60(f).
* * * * *
Sec. 1131.72 [Amended]
11. In Sec. 1131.72, the word ``for'' is revised to read ``from''
in the section heading, paragraph (b) is removed, and paragraph (c) is
redesignated as paragraph (b).
Sec. 1131.77 [Amended]
12. In Sec. 1131.77, the last sentence is removed.
Sec. 1131.85 [Amended]
13. In Sec. 1131.85, paragraph (b) is removed and reserved.
Dated: October 31, 1995.
Shirley R. Watkins,
Acting Assistant Secretary, Marketing and Regulatory Programs.
[FR Doc. 95-27392 Filed 11-3-95; 8:45 am]
BILLING CODE 3410-02-P
