[Federal Register Volume 59, Number 126 (Friday, July 1, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-16060]
[[Page Unknown]]
[Federal Register: July 1, 1994]
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DEPARTMENT OF AGRICULTURE
7 CFR Part 928
[Docket No. FV94-928-1IFR]
Papayas Grown in Hawaii; Expenses and Assessment Rate for 1994-95
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 expenditures and
establishes an assessment rate for the Papaya Administrative Committee
(Committee) under M.O. No. 928 for the 1994-95 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 July 1, 1994, through June 30, 1995.
Comments received by August 1, 1994, 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, PO 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: Britthany Beadle, Marketing Order
Administration Branch, Fruit and Vegetable Division, AMS, USDA, PO Box
96456, Room 2523-S, Washington, DC 20090-6456, telephone: (202) 720-
5127; or Martin Engler, 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 interim final rule is issued under
Marketing Agreement and Order No. 928 (7 CFR part 928), regulating the
handling of papayas grown in Hawaii. 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, papayas grown in Hawaii are subject to assessments. It is
intended that the assessment rate specified herein will be applicable
to all assessable papayas handled during the 1994-95 fiscal year,
beginning July 1, 1994, through June 30, 1995. 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 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 120 handlers of papayas regulated under the
marketing order each season and approximately 400 papaya producers in
Hawaii. 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
majority of these handlers and 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 papayas 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 Hawaii papayas. 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 papayas.
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 Papaya Administrative Committee met on April 22, 1994, and
unanimously recommended expenses totaling $589,200 for its 1994-95
budget. This is a $3,260 reduction in expenses compared to the 1993-94
budget of $592,460.
The Committee also unanimously recommended an assessment rate of
$.0089 per pound for the 1994-95 fiscal year, which is a $.0024
increase in the assessment rate from the $.0065 per pound that was
approved for the 1993-94 fiscal year. The assessment rate, when applied
to anticipated shipments of 48 million pounds, would yield $427,200 in
assessment income. Other sources of program income include $60,000 from
the Hawaii Department of Agriculture, $57,000 from the USDA's Foreign
Agricultural Service, $25,000 from the GACC, $7,800 from the Japanese
Inspection program, $7,200 in interest income, and $5,000 from the
County of Hawaii. Income from all sources will be adequate to cover
estimated expenses.
Major expense categories for the 1994 fiscal year include $240,000
for the market expansion program, $68,000 for research and development,
and $78,600 for salaries. Funds in the reserve at the end of the 1994-
95 fiscal year, estimated at $37,356 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 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 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 Committee needs to have sufficient funds to pay its
expenses which are incurred on a continuous basis; (2) the fiscal year
for the Committee begins July 1, 1994, and the marketing order requires
that the rate of assessment for the fiscal year apply to all assessable
papayas handled during the fiscal year; (3) handlers are aware of this
action 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 action.
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.
Note: This section will not appear in the annual Code of Federal
Regulations.
2. A new Sec. 928.224 is added to read as follows:
Sec. 928.224 Expenses and assessment rate.
Expenses of $589,200 by the Papaya Administrative Committee are
authorized and an assessment rate of $.0089 per pound of assessable
papayas is established for the fiscal year ending June 30, 1995.
Unexpended funds may be carried over as a reserve.
Dated: June 27, 1994.
Robert C. Keeney,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 94-16060 Filed 6-30-94; 8:45 am]
BILLING CODE 3410-02-P
