[Federal Register Volume 61, Number 185 (Monday, September 23, 1996)]
[Rules and Regulations]
[Pages 49651-49653]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-24239]
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DEPARTMENT OF AGRICULTURE
7 CFR Parts 916 and 917
[Docket No. FV96-916-1 FIR]
Nectarines and Fresh Peaches Grown in California; Assessment
Rates
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 an interim final rule
establishing assessment rates for the Nectarine Administrative
Committee and the Peach Commodity Committee (Committees) under
Marketing Order Nos. 916 and 917 for the 1996-97 and subsequent fiscal
periods. The Committees are responsible for local administration of the
marketing orders which regulate the handling of nectarines and fresh
peaches grown in California. Authorization to assess nectarine and
fresh peach handlers enables the Committees to incur expenses that are
reasonable and necessary to administer the programs.
EFFECTIVE DATE: March 1, 1996.
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, (209)
487-5901, FAX (209) 487-5906, or Kenneth G. Johnson, 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. Small businesses
may request information on compliance with this regulation by
contacting: Jay Guerber, Marketing Order Administration Branch, Fruit
and Vegetable Division, AMS, USDA, P.O. Box 96456, room 2523-S,
Washington, D.C. 20090-6456; telephone: (202) 720-2491, FAX (202) 720-
5698.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement No. 916 and Order No. 916, both as amended (7 CFR part 916),
regulating the handling of nectarines grown in California, and
Marketing Agreement No. 917 and Order No. 917, both as amended (7 CFR
part 917), regulating the handling of fresh peaches grown in
California, hereinafter referred to as the ``orders.'' The marketing
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 is issuing this rule in conformance with Executive
Order 12866.
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. Under the marketing orders now in effect, California
nectarine and fresh peach handlers are subject to assessments. Funds to
administer the orders are derived from such assessments. It is intended
that the assessment rates as issued herein will be applicable to all
assessable nectarines and peaches beginning March 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
[[Page 49652]]
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 1,800 producers of nectarines and peaches
in the production area and approximately 300 handlers subject to
regulation under the marketing orders. 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 nectarine and fresh peach
producers and handlers may be classified as small entities.
The nectarine and peach marketing orders provide authority for the
Committees, with the approval of the Department, to formulate annual
budgets of expenses and collect assessments from handlers to administer
the programs. The members of the Committees are producers and handlers
of California nectarines and fresh peaches. They are familiar with the
Committees' needs and with the costs for goods and services in their
local area and are thus in a position to formulate appropriate budgets
and assessment rates. The assessment rates are formulated and discussed
in public meetings. Thus, all directly affected persons have an
opportunity to participate and provide input.
The Nectarine Administrative Committee met on May 2, 1996, and
unanimously recommended 1996-97 expenditures of $3,682,728 and an
assessment rate of $0.1850 per 25-pound container or equivalent of
nectarines. In comparison, last year's budgeted expenditures were
$3,683,031. The assessment rate of $0.1850 is the same as last year's
established rate. Major expenditures recommended by the Committee for
the 1996-97 year include $1,326,376 for domestic market development,
$972,300 for inspection, $342,250 in salaries and benefits, and
$120,870 for research. Budgeted expenses for these items in 1995-96
were $1,534,593, $855,000, $340,025, and $99,117 respectively.
The Peach Commodity Committee met on May 1, 1996, and unanimously
recommended 1996-97 expenditures of $3,722,757 and an assessment rate
of $0.1900 per 25-pound container or equivalent of fresh peaches. In
comparison, last year's budgeted expenditures were $3,736,531. The
assessment rate of $0.1900 is the same as last year's established rate.
Major expenditures recommended by the Committee for the 1996-97 year
include $1,326,376 for domestic market development, $991,500 for
inspection, $342,250 in salaries and benefits, and $120,870 for
research. Budgeted expenses for these items in 1995-96 were $1,534,593,
$900,000, $340,025, and $99,117 respectively.
The assessment rates recommended by the Committees were derived by
dividing anticipated expenses by expected shipments of California
nectarines and fresh peaches. Nectarine shipments for the year are
estimated at 17,266,000 25-pound containers or equivalent which should
provide $3,194,210 in assessment income, and fresh peach shipments for
the year are estimated at 17,250,000 25-pound containers or equivalent
which should provide $3,277,500 in assessment income. Income derived
from handler assessments, the Plum Commodity Committee, and the Pear
Field Service, along with interest income and funds from the
Committees' authorized reserves, will be adequate to cover budgeted
expenses. Funds in the reserves will be kept within the maximum
permitted by the orders.
An interim final rule regarding this action was published in the
July 22, 1996, issue of the Federal Register (61 FR 37812). That rule
provided for a 30-day comment period. Two comments were received, both
in support of the assessment rates as published.
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 orders.
Therefore, the AMS has determined that this rule will not have a
significant economic impact on a substantial number of small entities.
The assessment rates established in this rule will continue in
effect indefinitely unless modified, suspended, or terminated by the
Secretary upon recommendation and information submitted by the
Committees or other available information.
Although these assessment rates are effective for an indefinite
period, the Committees will continue to meet prior to or during each
fiscal period to recommend budgets of expenses and consider
recommendations for modification of their assessment rates. The dates
and times of Committee meetings are available from the Committees or
the Department. Committee meetings are open to the public and
interested persons may express their views at these meetings. The
Department will evaluate the Committees' recommendations and other
available information to determine whether modification of the
assessment rates are needed. The Committees' 1996-97 budgets 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 recommendations submitted by the Committees 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 that good
cause exists for not postponing the effective date of this rule until
30 days after publication in the Federal Register because: (1) The
Committees need to have sufficient funds to pay their expenses which
are incurred on a continuous basis; (2) the 1996-97 fiscal periods
began on March 1, 1996, and the marketing orders require that the rates
of assessment for each fiscal period apply to all assessable nectarines
and peaches handled during such fiscal period; (3) handlers are aware
of this action which was unanimously recommended by the Committees at
public meetings and is similar to other assessment rate actions issued
in past years; and (4) an interim final rule was published on this
action and provided for a 30-day comment period. Two comments were
received, both in support of the assessment rates as published.
[[Page 49653]]
List of Subjects
7 CFR Part 916
Nectarines, Marketing agreements, Reporting and recordkeeping
requirements.
7 CFR Part 917
Peaches, Pears, Marketing agreements, Reporting and recordkeeping
requirements.
PART 916--NECTARINES GROWN IN CALIFORNIA
PART 917--FRESH PEARS AND PEACHES GROWN IN CALIFORNIA
Accordingly, the interim final rule amending 7 CFR parts 916 and
917 which was published at 61 FR 37812 on July 22, 1996, is adopted as
a final rule.
Dated: September 16, 1996.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 96-24239 Filed 9-20-96; 8:45 am]
BILLING CODE 3410-02-P
