[Federal Register Volume 59, Number 115 (Thursday, June 16, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-14585]
[[Page Unknown]]
[Federal Register: June 16, 1994]
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DEPARTMENT OF AGRICULTURE
7 CFR Part 932
[Docket No. FV93-932-4FIR]
Olives Grown in California; Expenses and Assessment Rate for 1994
Fiscal Year
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 rule
that authorized expenditures and established an assessment rate for the
California Olive Committee (Committee) under Marketing Order (M.O.) No.
932 for the 1994 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.
EFFECTIVE DATE: January 1, 1994, through December 31, 1994.
FOR FURTHER INFORMATION CONTACT: Britthany Beadle, Marketing Order
Administration Branch, Fruit and Vegetable Division, AMS, USDA, P.O.
Box 96456, room 2523-S, Washington, DC 20090-6456, telephone: (202)
720-5127; or Terry Vawter, California Marketing Field Office, Fruit and
Vegetable Division, AMS, USDA, 2202 Monterey Street, Suite 102 B,
Fresno, California 93721, telephone: (209) 487-5901.
SUPPLEMENTARY INFORMATION: This final rule is issued under Marketing
Agreement No. 148 and Marketing Order No. 932 (7 CFR Part 932), as
amended, regulating the handling of olives grown in California. 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 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, olives grown in California are subject to assessments. It is
intended that the assessment rate specified herein will be applicable
to all assessable olives handled during the 1994 fiscal year, beginning
January 1, 1994, through December 31, 1994. 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 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 approximately 5 handlers of olives regulated under the
marketing order each season and approximately 1,350 olive producers in
California. 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 handlers may be classified as small entities. The majority
of the producers 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 olives 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 California olives. 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 olives.
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 California Olive Committee met on December 14, 1993, and
unanimously recommended a total expense amount of $3,748,290, for its
1994 budget. This is $928,530 more in expenses than the previous year.
The increase is primarily due to additional funding for market
development.
The Committee also unanimously recommended an assessment rate of
$27.21 per ton for the 1994 fiscal year, which is $1.46 more in the
assessment rate from the 1993 fiscal year. The assessment rate, when
applied to anticipated shipments of 101,000 tons, would yield
$2,748,210 in assessment income. This, along with approximately
$1,000,000 from the Committee's authorized reserves will be adequate to
cover estimated expenses.
Major expense categories for the 1994 fiscal year include
$1,150,000 for the market expansion program, $990,860 for consumer
affairs, and $173,730 for salaries. Funds in the reserve at the end of
the fiscal year, estimated at $300,000 will be 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.
An interim final rule was published in the Federal Register (59 FR
12526, March 17, 1994) and provided a 30-day comment period for
interested persons. No comments were received.
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. 553) because the Committee needs to have
sufficient funds to pay its expenses which are incurred on a continuous
basis. The 1994 fiscal year for the program began January 1, 1994. The
marketing order requires that the rate of assessment apply to all
assessable olives 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 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.
Accordingly, the interim final rule adding Sec. 932.227 which was
published at 59 FR 12526, is adopted as a final rule without change.
Dated: June 9, 1994.
Eric M. Forman,
Acting Director, Fruit and Vegetable Division.
[FR Doc. 94-14585 Filed 6-15-94; 8:45 am]
BILLING CODE 3410-02-P
