[Federal Register Volume 61, Number 34 (Tuesday, February 20, 1996)]
[Rules and Regulations]
[Pages 6306-6307]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-3608]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 932
[Docket No. FV96-932-1IFR]
Expenses and Assessment Rate for Marketing Order Covering Olives
Grown in California
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim final rule with request for comments.
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SUMMARY: This interim final rule authorizes expenses and establishes an
assessment rate for the California Olive Committee (Committee) under
Marketing Order No. 932 for the 1996 fiscal year. The Committee is
responsible for local administration of the marketing order which
regulates the handling of California olives. 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.
DATES: Effective beginning January 1, 1996, through December 31, 1996.
Comments received by March 21, 1996, will be considered prior to
issuance of a final rule.
ADDRESSES: Interested persons are invited to submit written comments
concerning this interim final rule. Comments must be sent in triplicate
to the Docket Clerk, Fruit and Vegetable Division, AMS, USDA, P.O. Box
96456, room 2523-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: Terry Vawter, California Marketing
Field Office, Fruit and Vegetable Division, AMS, USDA, 2202 Monterey
Street, suite 102B, Fresno, California 93721, telephone 209-487-5901;
or Caroline C. Thorpe, Marketing Order Administration Branch, F&V, AMS,
USDA, P.O. Box 96456, room 2523-S, Washington, DC 20090-6456; telephone
202-720-5127.
SUPPLEMENTARY INFORMATION: This interim final rule is issued under
Marketing Order No. 932 (7 CFR part 932), as amended, 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 interim final rule has been reviewed under Executive Order
12778, Civil Justice Reform. Under the marketing order provisions now
in effect, olives grown in California are subject to assessments. It is
intended that the assessment rate as issued herein will be applicable
to all assessable olives during the 1996 fiscal year, beginning January
1, 1996, through December 31, 1996. This interim 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 5 handlers of olives grown in California who are subject
to regulation under the order and approximately 1,350 producers of
olives 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. None of the olive handlers may be classified as small
entities, while the majority of olive producers may be classified as
small entities.
The order, administered by the Department, 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, 1995, through July 31, 1996. The budget of expenses for
the 1996 fiscal year was prepared by the Committee and submitted to the
Department for approval. The Committee consists of handlers and
producers. 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 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 Committee met on December 14, 1995, and recommended 1996
marketing order expenditures of $2,600,785 for its budget. This is
$280,865 less in expenses than the previous year. The major budget
categories for the 1996 fiscal year include administration ($388,350),
research ($213,000), and market development ($1,999,435).
The Committee also recommended an assessment rate of $28.26 per ton
[[Page 6307]]
covering olives from the appropriate crop year. This is $1.78 less than
last year's assessment rate of $30.04. The assessment rate, when
applied to actual handler receipts of 62,182 tons from the 1995 olive
crop year, would yield $1,757,726 in assessment income. This along with
approximately $829,000 from the Committee's authorized reserves will be
adequate to cover estimated expenses. Reserve funds for the 1996 fiscal
year are estimated at $210,000 which is within the maximum permitted by
the order of one fiscal year's expenses.
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.
After consideration of all relevant material presented, including
the Committee's recommendation, and other available information, it is
found that this interim final 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 1996 fiscal
year began on January 1, 1996, and the marketing order requires that
the rate of assessment for the fiscal year apply to all assessable
olives handled during the fiscal year; (3) handlers are aware of this
rule which was recommended by the Committee at a public meeting; 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.
Note: This section will not appear in the Code of Federal
Regulations.
2. A new Sec. 932.229 is added to read as follows:
Sec. 932.229 Expenses and assessment rate.
Expenses of $2,600,785 for the California Olive Committee are
authorized, and an assessment rate of $28.26 per ton of assessable
olives is established for the 1996 fiscal year ending on December 31,
1996. Unexpended funds may be carried over as a reserve.
Dated: February 12, 1996.
Sharon Bomer Lauritsen,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 96-3608 Filed 2-16-96; 8:45 am]
BILLING CODE 3410-02-P
