[Federal Register Volume 61, Number 115 (Thursday, June 13, 1996)]
[Rules and Regulations]
[Pages 29924-29926]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-14985]
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DEPARTMENT OF AGRICULTURE
7 CFR Part 982
[Docket No. FV96-982-1IFR]
Hazelnuts Grown in Oregon and Washington; Assessment Rate
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
Hazelnut Marketing Board (Board) under Marketing Order No. 982 for the
1996-97 and subsequent marketing years. The Board is responsible for
local administration of the marketing order which regulates the
handling of hazelnuts grown in Oregon and Washington. Authorization to
assess hazelnut handlers enables the Board to incur expenses that are
reasonable and necessary to administer the program.
[[Page 29925]]
DATES: Effective July 1, 1996. Comments received by July 15, 1996, 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, 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: Martha Sue Clark, Marketing Order
Administration Branch, Fruit and Vegetable Division, AMS, USDA, P.O.
Box 96456, room 2523-S, Washington, DC 20090-6456, telephone 202-720-
9918, FAX 202-720-5698, or Teresa L. Hutchinson, Northwest Marketing
Field Office, Fruit and Vegetable Division, AMS, USDA, Green-Wyatt
Federal Building, room 369, 1220 Southwest Third Avenue, Portland, OR
97204, telephone 503-326-2724, FAX 503-326-7440.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement and Order No. 982, both as amended (7 CFR part 982; April 22,
1996, 61 FR 17556), regulating the handling of hazelnuts grown in
Oregon and Washington. 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 rule has been reviewed under Executive Order 12778, Civil
Justice Reform. Under the marketing order now in effect, Oregon-
Washington hazelnut 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 hazelnuts beginning July 1, 1996, 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.
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA), 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 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 1,000 producers of Oregon and Washington
hazelnuts in the production area and approximately 25 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 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 Oregon and Washington
hazelnut producers and handlers may be classified as small entities.
The Oregon and Washington hazelnut marketing order provides
authority for the Board, with the approval of the Department, to
formulate an annual budget of expenses and collect assessments from
handlers to administer the program. The members of the Board are
producers and handlers of hazelnuts. They are familiar with the Board's
needs and with the costs for goods and services in their local area and
are thus in a position to formulate an appropriate budget and
assessment rate. The assessment rate is recommended by a mail vote and
discussed reconfirmed in a public meeting. Thus, all directly affected
persons have an opportunity to participate and provide input.
The Board, in a mail vote, unanimously recommended 1996-97
expenditures of $558,974 and an assessment rate of $0.007 per pound of
hazelnuts. In comparison, last year's budgeted expenditures were
$483,685. The assessment rate of $0.007 is the same as last year's
established rate. Major expenditures recommended by the Board for the
1996-97 year include $50,020 for personal services (salaries), $5,640
for rent, $5,000 for auditing, $5,000 for compliance, $15,000 for a
crop survey, $275,000 for promotion, and $182,364 for the emergency
fund. Budgeted expenses for these items in 1995-96 were $50,735,
$5,650, $3,500, $5,000, $11,000, $250,000, and $140,000, respectively.
The Board will consider using emergency funds for authorized activities
when it is reasonably certain that its estimate of assessable hazelnuts
will be reached. It will not be able to make this determination until
December 1996, the month in which the hazelnut harvest and deliveries
to handlers usually are completed. Hence, any decision on whether or
not to undertake additional activities will not be made until December
1996, at the earliest.
The assessment rate recommended by the Board was derived by
dividing anticipated expenses by expected shipments of Oregon and
Washington hazelnuts. Hazelnut shipments for the year are estimated at
20,000,000 pounds which should provide $280,000 in assessment income.
Income derived from handler assessments, interest, and from the Nut
Growers Society in payment for services performed by the Board under an
agreement with the Society, along with funds from the Board's
authorized reserve, will be adequate to cover budgeted expenses. Funds
remaining in the reserve at the end of the 1996-97 marketing year
should be about $196,240. Funds in the reserve will be kept within the
maximum permitted by the order.
While this 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. Therefore, the AMS has determined that this rule will
not have a significant economic impact on a substantial number of small
entities.
The assessment rate established in this 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 this assessment rate is effective for an indefinite
period, the
[[Page 29926]]
Board will continue to conduct a mail vote prior to or during each
fiscal period to recommend a budget of expenses and consider
recommendations for modification of the assessment rate. Any mail votes
will be discussed and reconfirmed at a public meeting. 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 rate is needed. Further
rulemaking will be undertaken as necessary. The Board's 1996-97 budget
and those for subsequent fiscal periods will be reviewed and, as
appropriate, approved by the Department.
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.
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 action until 30 days after publication in the Federal Register
because: (1) The Board needs to have sufficient funds to pay its
expenses which are incurred on a continuous basis; (2) the 1996-97
marketing year begins on July 1, 1996, and the marketing order requires
that the rate of assessment for each marketing year apply to all
assessable hazelnuts handled during such marketing year; (3) handlers
are aware of this action which was unanimously recommended by the Board
in a mail vote and is similar to the assessment rate action issued last
year; 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 982
Filberts, Hazelnuts, Marketing agreements, Nuts, Reporting and
recordkeeping requirements.
For the reasons set forth in the preamble, 7 CFR part 982 is
amended as follows:
PART 982--HAZELNUTS GROWN IN OREGON AND WASHINGTON
1. The authority citation for 7 CFR part 982 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
2. A new subpart--Assessment Rates and a new Sec. 982.340 are added
to read as follows:
Subpart--Assessment Rates
Sec. 982.340 Assessment rate.
On and after July 1, 1996, an assessment rate of $0.007 per pound
of assessable hazelnuts is established for Oregon and Washington
hazelnuts.
Dated: June 7, 1996.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 96-14985 Filed 6-12-96; 8:45 am]
BILLING CODE 3410-02-P
