96-24238. Domestic Dates Produced or Packed in Riverside County, CA; Assessment Rate

[Federal Register Volume 61, Number 186 (Tuesday, September 24, 1996)]
[Rules and Regulations]
[Pages 49955-49957]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-24238]


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DEPARTMENT OF AGRICULTURE
7 CFR Part 987

[Docket No. FV96-987-1 IFR]


Domestic Dates Produced or Packed in Riverside County, CA; 
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 
California Date Administrative Committee (Committee) under Marketing 
Order No. 987 for the 1996-97 and subsequent crop years. The Committee 
is responsible for local administration of the marketing order which 
regulates the handling of domestic dates produced or packed in 
Riverside County, California. Authorization to assess date handlers 
enables the Committee to incur expenses that are reasonable and 
necessary to administer the program.

DATES: Effective on October 1, 1996. Comments received by October 24, 
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 [phone]. 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

[[Page 49956]]

inspection in the Office of the Docket Clerk during regular business 
hours.

FOR FURTHER INFORMATION CONTACT: Martha Sue Clark, Program Assistant, 
Marketing Order Administration Branch, Fruit and Vegetable Division, 
AMS, USDA, P.O. Box 96456, room 2523-S, Washington, DC 20090-6456, 
telephone [phone], FAX [phone], or Maureen Pello, Marketing 
Specialist, California Marketing Field Office, Fruit and Vegetable 
Division, AMS, USDA, suite 102B, 2202 Monterey Street, Fresno, 
California 93721, telephone [phone], FAX [phone]. 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, DC 20090-6456, telephone [phone], FAX [phone].

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing 
Agreement and Order No. 987, both as amended (7 CFR part 987), 
regulating the handling of domestic dates produced or packed in 
Riverside County, California. The order is 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 12988, Civil 
Justice Reform. Under the marketing order now in effect, California 
date handlers 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 dates 
beginning October 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 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 135 producers of California dates in the 
production area and approximately 25 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 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 California date producers and handlers may 
be classified as small entities.
    The California date 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 
California dates. They are familiar with the Committee's needs and with 
the costs of 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 July 18, 1996, and by a vote of 8 to 1 
recommended 1996-97 gross operating expenditures of $60,000 and an 
assessment rate of $0.0556 per hundredweight of dates. Included in the 
gross operating expenditures is a $40,000 surplus account contribution, 
resulting in net operating expenditures of $20,000. In comparison, last 
year's net budgeted expenditures were $774,218, after a $42,000 surplus 
account contribution was deducted. The assessment rate of $0.0556 is 
$2.1944 lower than last year's established rate. The budgeted 
expenditures and assessment rate are significantly lower than last year 
because the Committee does not plan to conduct promotional activities 
under the Federal marketing order. Over the past year, the industry 
formed the California Date Commission (Commission), a State 
organization that will be conducting promotional activities for the 
industry. The no vote on the budget came from a grower who opposed 
formation of the Commission and has expressed a concern that the 
organization is composed of handlers only and no growers. Major 
expenditures recommended by the Committee for the 1996-97 crop year 
include $43,586 for salaries and benefits and $14,766 for office 
expenses. Budgeted expenses for these items in 1995-96 were $121,500 
and $33,300, respectively. Included in the $60,000 gross operating 
budget is a $40,000 surplus account contribution, for a net operating 
budget of $20,000, $98,000 less than last year.
    Under the Federal marketing order, the Committee's staff manages a 
surplus pool for low quality dates. The expenses incurred for this 
activity are paid for with proceeds from the sale of such dates, not 
assessment income.
    The assessment rate recommended by the Committee was derived by 
dividing anticipated expenses by expected shipments of California 
dates. Date shipments for the year are estimated at 360,000 
hundredweight, which should provide $20,016 in assessment income, which 
will be adequate to cover budgeted expenses. Funds in the reserve will 
be kept within the maximum permitted by the order. Funds held by the 
Committee at the end of the crop year, including the reserve, which are 
in excess of the crop year's expenses may be used to defray expenses 
for four months and thereafter the Committee shall refund or credit the 
excess funds to the handlers.
    This action will reduce the assessment rate to be imposed on 
handlers during the 1996-97 crop year. 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 from the operation of the marketing order. Therefore, the AMS 
has determined that this rule will not have a significant economic 
impact on a substantial number of small entities. Interested persons 
are invited

[[Page 49957]]

to submit information on the regulatory and informational impacts of 
this action on small businesses.
    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 
crop year 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 crop years 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, and 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 Committee needs to have sufficient funds to 
pay its expenses which are incurred on a continuous basis; (2) the 
1996-97 crop year begins on October 1, 1996, and the marketing order 
requires that the rate of assessment for each crop year apply to all 
assessable dates handled during such crop year; (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 987

    Dates, Marketing agreements, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 987 is 
amended as follows:

PART 987--DOMESTIC DATES PRODUCED OR PACKED IN RIVERSIDE COUNTY, 
CALIFORNIA

    1. The authority citation for 7 CFR part 987 is revised to read as 
follows:

    Authority: 7 U.S.C. 601-674.

    2. A new Subpart--Assessment Rates and a new Sec. 987.339 are added 
to read as follows:

    Note: This section will appear in the Code of Federal 
Regulations.

Subpart--Assessment Rates


Sec. 987.339   Assessment rate.

    On and after October 1, 1996, an assessment of $0.0556 per 
hundredweight is established for California dates.

    Dated: September 16, 1996.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 96-24238 Filed 9-23-96; 8:45 am]
BILLING CODE 3410-02-P