[Federal Register Volume 59, Number 169 (Thursday, September 1, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-21673]
Federal Register / Vol. 59, No. 169 / Thursday, September 1, 1994 /
[[Page Unknown]]
[Federal Register: September 1, 1994]
VOL. 59, NO. 169
Thursday, September 1, 1994
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Parts 916 and 917
[Docket No. FV94-916-3FIR]
Nectarines and Fresh Peaches Grown in California; Expenses and
Assessment Rates for the 1994-95 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 changes, the provisions of the interim final rule
which authorized expenses and established assessment rates for the
Nectarine Administrative Committee and the Peach Commodity Committee
(Committees) under Marketing Order (M.O.) Nos. 916 and 917 for the
1994-95 fiscal year. Authorization of these budgets enable the
Committees to incur expenses that are reasonable and necessary to
administer their programs. Funds to administer these programs are
derived from assessments on handlers.
EFFECTIVE DATES: March 1, 1994, through February 28, 1995.
FOR FURTHER INFORMATION CONTACT: Britthany Beadle, 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 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 and Order No. 916 [7 CFR Part 916] regulating the handling of
nectarines grown in California and Marketing Agreement and Order No.
917 [7 CFR Part 917] regulating the handling of fresh peaches grown in
California. The agreements and orders 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 final rule has been reviewed under Executive Order 12778,
Civil Justice Reform. Under the marketing order provisions now in
effect, nectarines and peaches grown in California are subject to
assessments. It is intended that the assessment rates specified herein
will be applicable to all assessable nectarines and peaches handled
during the 1994-95 fiscal year, which began March 1, 1994, through
February 28, 1995. 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 300 handlers of nectarines and peaches
regulated under the marketing orders each season and approximately
1,800 producers of these fruits 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. The majority of these handlers and
producers may be classified as small entities.
The nectarine and peach marketing orders, administered by the
Department, require that the assessment rates for a particular fiscal
year apply to all assessable nectarines and peaches handled from the
beginning of such year. Annual budgets of expenses are prepared by the
Committees, the agencies responsible for local administration of their
respective marketing order, and submitted to the Department for
approval. The members of the Committees are nectarine and peach
handlers and producers. They are familiar with the Committees' 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
Committees' budgets are formulated and discussed in public meetings.
Thus, all directly affected persons have an opportunity to participate
and provide input.
The assessment rates recommended by the Committees are derived by
dividing the anticipated expenses by expected shipments of nectarines
and peaches. Because these rates are applied to actual shipments, they
must be established at rates which will provide sufficient income to
pay the Committees' expected expenses.
The Nectarine Administrative Committee met on May 4, 1994, and
unanimously recommended total expenses of $3,844,635 for the 1994-95
fiscal year. In comparison, the 1993-94 fiscal year expenses amount was
$3,804,962, representing a $39,673 increase in expenses from the 1993-
94 fiscal year.
The Committee also unanimously recommended an assessment rate of
$0.1825 per 25-pound container or equivalent for the 1994-95 fiscal
year, which is the same assessment rate that was approved for the 1993-
94 fiscal year. The assessment rate, when applied to anticipated
shipments of 18,144,000 25-pound containers or equivalent of nectarines
would yield $3,311,280 in assessment income. Adequate funds exist in
the Committee's reserve to cover additional expenses.
Major expense categories for the 1994-95 nectarine budget include
$447,118 for salaries and benefits, $1,402,000 for domestic market
development, and $1,000,000 for inspection. Funds in the reserve at the
end of the 1994-95 fiscal year, estimated at $363,483, will be within
the maximum permitted by the order of one fiscal year's expenses.
The Peach Commodity Committee also met May 4, 1994, and unanimously
recommended total expenses of $3,967,335, for the 1994-95 fiscal year.
In comparison, this is $113,790 more than the $3,853,545 expense amount
that was recommended for the 1993-94 fiscal year.
The Committee also unanimously recommended an assessment rate of
$0.19 per 25-pound container or equivalent for the 1994-95 fiscal year,
which is the same assessment rate that was approved for the previous
fiscal year. The assessment rate, when applied to anticipated shipments
of 17,571,000 25-pound containers or equivalent of peaches, would yield
$3,338,490 in assessment income. Adequate funds exist in the
Committee's reserve fund to cover additional expenses.
Major expense categories for the 1994-95 fiscal period are $447,118
in salaries and benefits, $1,402,000 for domestic market development,
and $950,000 for inspection. Funds in the reserve at the end of the
1994-95 fiscal year, estimated at $578,639, will be within the maximum
permitted by the order of one fiscal year's expenses.
An interim final rule was published in the Federal Register [59 FR
33897, July 1, 1994] and provided a 30-day comment period for
interested persons. No comments were received.
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 orders. 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.
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 1994-95 fiscal year for the program began March 1, 1994. The
marketing order requires that the rate of assessment apply to all
assessable nectarines and fresh peaches 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
7 CFR Part 916
Marketing agreements, Nectarines, Reporting and recordkeeping
requirements.
7 CFR Part 917
Marketing agreements, Pears, Peaches, Reporting and recordkeeping
requirements.
For the reason set forth in the preamble, 7 CFR Parts 916 and 917
are amended as follows:
PART 916--NECTARINES GROWN IN CALIFORNIA
Accordingly, the interim final rule amending 7 CFR Part 916 which
was published at 59 FR 33897 on July 1, 1994, is adopted as a final
rule without change.
PART 917--FRESH PEARS AND PEACHES GROWN IN CALIFORNIA
Accordingly, the interim final rule amending 7 CFR Part 917 which
was published at 59 FR 33897 on July 1, 1994, is adopted as a final
rule without change.
Dated: August 25, 1994.
Martha B. Ransom,
Acting Deputy Director, Fruit and Vegetable Division.
[FR Doc. 94-21673 Filed 8-31-94; 8:45 am]
BILLING CODE 3410-02-P
