[Federal Register Volume 61, Number 108 (Tuesday, June 4, 1996)]
[Rules and Regulations]
[Pages 28000-28002]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-13853]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 928
[Docket No. FV96-928-1-IFR]
Papayas Grown in Hawaii; 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
Papaya Administrative Committee (Committee) under Marketing Order No.
928 for the 1996-97 and subsequent fiscal periods. The Committee is
responsible for local administration of the marketing order which
regulates the handling of papayas grown in Hawaii. Authorization to
assess papaya handlers enables the Committee to incur expenses that are
reasonable and necessary to administer the program.
DATES: Effective on July 1, 1996. Comments received by July 5, 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: Mary Kate Nelson, Marketing Assistant,
California Marketing Field Office, Fruit and Vegetable Division, AMS,
USDA, 2202 Monterey Street, suite 102B, Fresno, California 93721,
telephone (209) 487-5901, FAX (209) 487-5901, or Charles L. Rush,
Marketing Specialist, 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, FAX (202) 720-5698.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement No. 928 and Order No. 928, both as amended (7 CFR part 928),
regulating the handling of papayas grown in Hawaii, hereinafter
referred to as the ``order.'' 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 rule has been reviewed under Executive Order 12778, Civil
Justice Reform. Under the marketing order now in effect, handlers of
papayas grown in Hawaii 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
papayas beginning July 1, 1996, and continuing until amended,
suspended, or terminated. This rule will not preempt any State or local
laws,
[[Page 28001]]
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 400 producers of papayas in the production
area and approximately 60 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 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 papaya producers and handlers may be classified as small
entities.
The papaya marketing order provides authority for the Committee,
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 Committee are producers and handlers of
papayas grown in Hawaii. They are familiar with the Committee'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 formulated and discussed in a public
meeting. Thus, all directly affected persons have an opportunity to
participate and provide input.
The Committee met on April 26, 1996, and unanimously recommended
1996-97 expenditures of $485,300 and an assessment rate of $0.0059 per
pound of papayas. In comparison, last year's budgeted expenditures were
$435,800.
The assessment rate of $0.0059 is the same as last year's
established rate. Major expenditures recommended by the Committee for
the 1996-97 year include $160,000 for the marketing and promotion
program, $130,000 for research and development, and $67,000 for
salaries. Budgeted expenses for these items in 1995-96 were $165,500,
$115,000, and $67,000 respectively.
The assessment rate recommended by the Committee was derived by
dividing anticipated expenses by expected shipments of papayas grown in
Hawaii. Papaya shipments for the year are estimated at 30 million
pounds which should provide $177,000 in assessment income. Income
derived from handler assessments, the Hawaii Department of Agriculture,
the USDA's Foreign Agricultural Service, the County of Hawaii, and the
Japanese Inspection program, along with interest income and funds from
the Committee's authorized reserve, will be adequate to cover budgeted
expenses. Funds in the reserve will be kept within the maximum
permitted by the order.
While this rule will impose some costs on handlers, the costs are
in the form of uniform assessments on all handlers. Some of the costs
may be passed on to producers.
However, these costs should be offset by the benefits derived by
the operation of the marketing order.
Based on available information, the Agricultural Marketing Service
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
Committee or other available information.
Although this assessment rate is effective for an indefinite
period, the Committee will continue to meet prior to or during each
fiscal period to recommend a budget of expenses and consider
recommendations for modification of the assessment rate. The dates and
times of Committee meetings are available from the Committee or the
Department. Committee meetings are open to the public and interested
persons may express their views at these meetings. The Department will
evaluate Committee recommendations and other available information to
determine whether modification of the assessment rate is needed.
Further rulemaking will be undertaken as necessary. The Committee'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 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
1996-97 fiscal period begins on July 1, 1996, and the marketing order
requires that the rate of assessment for each fiscal period apply to
all assessable papayas handled during such fiscal period; (3) handlers
are aware of this action which was unanimously recommended by the
Committee at a public meeting and is similar to other assessment rate
actions issued in past years; 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 928
Marketing agreements, Papayas, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 928 is
amended as follows:
PART 928--PAPAYAS GROWN IN HAWAII
1. The authority citation for 7 CFR part 928 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
2. Section 928.226 is added to read as follows:
Note: This section will appear in the Code of Federal
Regulations.
Sec. 928.226 Assessment rate.
On and after July 1, 1996, an assessment rate of $0.0059 per pound
is
[[Page 28002]]
established for papayas grown in Hawaii.
Dated: May 29, 1996.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 96-13853 Filed 6-3-96; 8:45 am]
BILLING CODE 3410-02-P
