[Federal Register Volume 60, Number 134 (Thursday, July 13, 1995)]
[Rules and Regulations]
[Pages 36031-36033]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-17196]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 920
[Docket No. FV95-920-2IFR]
Expenses and Assessment Rate for Marketing Order Covering
Kiwifruit Grown in California
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim final rule with request for comments.
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SUMMARY: This interim final rule authorizes expenses and establishes an
assessment rate for the Kiwifruit Administrative Committee (Committee)
under Marketing Order No. 920 for the 1995-96 fiscal year. The
Committee is responsible for local administration of the marketing
order which regulates the handling of California kiwifruit.
Authorization of this budget enables the Committee to incur expenses
that are reasonable and necessary to administer the program. Funds to
administer this program are derived from assessments on handlers.
DATES: Effective beginning August 1, 1995, through July 31, 1996.
Comments received by August 14, 1995, 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, 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) 487-5906; or Charles Rush,
Marketing Specialist, Marketing Order Administration Branch, F&V, AMS,
USDA, P.O. Box 96456, room 2522-S, Washington, DC 20090-6456; telephone
(202) 690-3670, Fax # (202) 720-5698.
SUPPLEMENTARY INFORMATION: This interim final rule is issued under
Marketing Order No. 920 (7 CFR part 920), as amended, regulating the
handling of kiwifruit grown in California, hereinafter referred to as
the ``order.'' 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 interim final rule has been reviewed under Executive Order
12778, Civil Justice Reform. Under the marketing order provisions now
in effect, California kiwifruit are subject to assessments. It is
intended that the assessment rate as issued herein will be applicable
to all assessable California kiwifruit during the 1995-96 fiscal year
beginning August 1, 1995, through July 31, 1996. 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 request a modification of the order or to be exempted
therefrom. A 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 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 65 handlers of kiwifruit grown in California who are
subject to regulation under the kiwifruit marketing order and 600
producers of kiwifruit in the regulated area. 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 kiwifruit producers
and handlers may be classified as small entities.
The kiwifruit marketing order, administered by the Department,
requires that the assessment rate for a particular fiscal year apply to
all assessable kiwifruit handled from the beginning of such year. The
budget of expenses for the 1995-96 fiscal year was prepared by the
Committee and submitted to the Department for approval. The Committee
consists of producers and a non-industry member. 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
an appropriate budget. The budget was formulated and discussed in
public meetings. Thus, all directly affected persons have an
opportunity to participate and provide input.
The assessment rate recommended by the Committee was derived by
dividing anticipated expenses by expected shipments of kiwifruit.
Because that rate is applied to actual shipments, it must be
established at a rate which will produce sufficient income to pay the
Committee's expected expenses. The recommended budget and rate of
assessment are usually acted upon by the Committee shortly before a
season starts, and expenses are incurred on a continuous basis.
Therefore, the budget and assessment rate approval must be expedited so
that the Committee will have funds to pay its expenses.
The Committee met on June 14, 1995, and unanimously recommended
1995-96 marketing order expenditures of $172,683 and an assessment rate
of 1.5 cents per tray or tray equivalent of kiwifruit. In comparison,
1994-95 marketing year budgeted expenditures were $169,157, which is
$3,526 less than the $172,683 recommended for this fiscal year. The
assessment rate of 1.5 cents per tray or tray equivalent is .5 cents
more than last year's assessment rate of 1.0 cents. The major budget
category for 1995-96 is $102,850 for administrative, staff and field
salaries.
Assessment income for 1995-96 is estimated to total $135,000 based
on anticipated fresh domestic shipments of 9 million trays or tray
equivalents of kiwifruit. The assessment income will have to be
augmented by $37,683 from the Committee's reserves to provide adequate
funds to cover budgeted expenses. Funds in the reserve at the end of
the 1995-96 fiscal year are
[[Page 36033]]
estimated to be $40,245. These reserve funds 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 will 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 material presented, including
the Committee's recommendation, and other available information, it is
found that this interim final 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 1995-96
fiscal year begins on August 1, 1995, and the marketing order requires
that the rate of assessment for the fiscal year apply to all assessable
kiwifruit handled during the fiscal year; (3) handlers are aware of
this rule 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 rule.
List of Subjects in 7 CFR Part 920
Kiwifruit, Marketing agreements.
For the reasons set forth in the preamble, 7 CFR part 920 is
amended as follows:
PART 920--KIWIFRUIT GROWN IN CALIFORNIA
1. The authority citation for 7 CFR part 920 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
Note: This section will not appear in the Code of Federal
Regulations.
2. A new Sec. 920.212 is added to read as follows:
Sec. 920.212 Expenses and assessment rate.
Expenses of $172,683 by the Kiwifruit Administrative Committee are
authorized, and an assessment rate of 1.5 cents per tray or tray
equivalent of assessable kiwifruit is established for the 1995-96
fiscal year ending on July 31, 1996. Unexpended funds may be carried
over as a reserve.
Dated: July 7, 1995
Sharon Bomer Lauritsen,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 95-17196 Filed 7-12-95; 8:45 am]
BILLING CODE 3410-02-P