[Federal Register Volume 60, Number 63 (Monday, April 3, 1995)]
[Rules and Regulations]
[Pages 16770-16771]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-8099]
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DEPARTMENT OF AGRICULTURE
7 CFR Part 985
[Docket No. FV95-985-1IFR]
Spearmint Oil Produced in the Far West; Expenses and Assessment
Rate for the 1995-96 Fiscal Year
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 Spearmint Oil Administrative Committee
(Committee) under Marketing Order No. 985 for the 1995-96 fiscal year.
Authorization of this budget enables the Committee to incur expenses
that are reasonable and necessary to administer this program. Funds to
administer this program are derived from assessments on handlers.
DATES: Effective beginning June 1, 1995, through May 31, 1996. Comments
received by May 3, 1995 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, D.C. 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: Caroline C. Thorpe, Marketing Order
Administration Branch, Fruit and Vegetable Division, AMS, USDA, P.O.
Box 96456, room 2523-S, Washington, D.C. 20090-6456, telephone: (202)
720-5127; or Robert Curry, Northwest Marketing Field Office, Fruit and
Vegetable Division, AMS, USDA, 1220 SW. Third Avenue, room 369,
Portland, Oregon 97204, telephone: (503) 326-2724.
SUPPLEMENTARY INFORMATION: This interim final rule is issued under
Marketing Agreement and Order No. 985 (7 CFR Part 985), regulating the
handling of spearmint oil produced in the Far West. 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 interim final rule has been reviewed under Executive Order
12778, Civil Justice Reform. Under the marketing order provisions now
in effect, spearmint oil produced in the Far West is subject to
assessments. It is intended that the assessment rate specified herein
will be applicable to all assessable oil produced during the 1995-96
fiscal year, beginning June 1, 1995, through May 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 [[Page 16771]] law and requesting 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 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 the 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 8 handlers of spearmint oil regulated under the marketing
order each season and approximately 260 spearmint oil producers in the
Far West. 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. A
minority of these producers and handlers may be classified as small
entities.
The marketing order, administered by the Department, requires that
the assessment rate for a particular fiscal year apply to all
assessable spearmint oil handled from the beginning of such year.
Annual budgets of expenses are 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 handlers and producers of spearmint oil. 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
appropriate budgets. The Committee's budget is formulated and discussed
in a public meeting. Thus, all directly affected persons have an
opportunity to participate and provide input.
The assessment rate recommended by the Committee is derived by
dividing the anticipated expenses by expected shipments of spearmint
oil. Because that rate is applied to actual shipments, it must be
established at a rate which will provide sufficient income to pay the
Committee's expected expenses.
The Committee met on February 22, 1995, and unanimously recommended
a total expense amount of $233,272 for its 1995-96 budget. This is
$4,567 less in expenses than the 1994-95 budget.
The Committee also unanimously recommended an assessment rate of
$.10 per pound for the 1995-96 fiscal year, which is $.01 more than the
assessment rate from the 1994-95 fiscal year. The assessment rate, when
applied to anticipated shipments of 2,000,000 pounds from the 1995-96
spearmint oil production, would yield $200,000.00 in assessment income.
This, along with approximately $24,272 from the Committee's authorized
reserves, and $9,000 interest will be adequate to cover estimated
expenses.
Major expense categories for the 1995-96 fiscal year include
$101,300 for salaries, $20,000 for market development, and $23,000 for
travel. Funds in the reserve at the beginning of the 1995-96 fiscal
year are estimated at $160,000, 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 should be significantly 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 matter presented, including the
information and recommendations 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 because: (1) The Committee needs to have sufficient funds to pay
its expenses which are incurred on a continuous basis; (2) the 1995-96
fiscal year starts on June 1, 1995, and the marketing order requires
that the rate of assessment for the fiscal year apply to all assessable
spearmint oil 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 985
Marketing agreements, Oils and fats, Reporting and recordkeeping
requirements, Spearmint oil.
For the reasons set forth in the preamble, 7 CFR part 985 is
amended as follows:
PART 985--MARKETING ORDER REGULATING THE HANDLING OF SPEARMINT OIL
PRODUCED IN THE FAR WEST
1. The authority citation for 7 CFR Part 985 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
Note: This section will not appear in the annual Code of Federal
Regulations.
2. A new Sec. 985.315 is added to read as follows:
Sec. 985.315 Expenses and assessment rate.
Expenses of $233,272.00 by the Spearmint Oil Administrative
Committee are authorized and an assessment rate of $.10 per pound of
assessable spearmint oil is established for the fiscal year ending May
31, 1996. Unexpended funds may be carried over as a reserve.
Dated: March 28, 1995.
Sharon Bomer Lauritsen,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 95-8099 Filed 3-31-95; 8:45 am]
BILLING CODE 3410-02-W
