[Federal Register Volume 60, Number 154 (Thursday, August 10, 1995)]
[Rules and Regulations]
[Pages 40745-40747]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-19745]



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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 929

[Docket No. FV95-929-2IFR]


Cranberries Grown in the States of Massachusetts, Rhode Island, 
Connecticut, New Jersey, Wisconsin, Michigan, Minnesota, Oregon, 
Washington, and Long Island in the State of New York; Expenses and 
Assessment Rate

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 Cranberry Marketing Committee (Committee) under 
Marketing Order No. 929 for the 1995-96 fiscal year. The Committee is 
responsible for local administration of the marketing order which 
regulates the handling of cranberries grown in 10 States. Authorization 
of this budget enables the Committee to incur expenses that are 
reasonable and necessary to administer the program. 

[[Page 40746]]
Funds to administer this program are derived from assessments on 
handlers.

DATES: Effective beginning September 1, 1995, through August 31, 1996. 
Comments received by September 11, 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, 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: Patricia A. Petrella or Kathleen M. 
Finn, Marketing Specialists, Marketing Order Administration Branch, 
F&V, AMS, USDA, P.O. Box 96456, room 2522-S, Washington, DC 20090-6456; 
telephone (202) 720-1509, Fax # (202) 720-5698.

SUPPLEMENTARY INFORMATION: This interim final rule is issued under 
Marketing Order No. 929 (7 CFR part 929), as amended, regulating the 
handling of cranberries grown in 10 States, 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, cranberries grown in 10 States are subject to assessments. 
It is intended that the assessment rate as issued herein will be 
applicable to all assessable cranberries during the 1995-96 fiscal year 
beginning September 1, 1995, through August 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 30 handlers of cranberries who are subject to regulation 
under the cranberry marketing order and 1,050 producers of cranberries 
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 cranberry producers and handlers may be 
classified as small entities.
    The cranberry marketing order, administered by the Department, 
requires that the assessment rate for a particular fiscal year apply to 
all assessable cranberries 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 cranberries. 
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 conducted a mail vote and recommended 1995-96 
marketing order expenditures of $201,336 and an assessment rate of 
$0.03 cents per 100-pound barrel of cranberries. In comparison, 1994-95 
marketing year budgeted expenditures were $164,690. The 1995-96 
marketing year budgeted expenditures of $210,336 are $36,646 more than 
the previous fiscal year. The increase is due to the funding of two new 
research projects for the 1995-96 season. The assessment rate will 
remain unchanged from the previous fiscal year.
    Assessment income for 1995-96 is estimated to total $136,320 based 
on anticipated domestic shipments of 4,544,000 barrels of cranberries. 
The assessment income, plus $4,375 in interest income and a withdrawal 
of $60,641 from the Committee's authorized reserve fund will be 
adequate to cover budgeted expenses. Funds in the reserve at the end of 
the 1994-95 fiscal year are estimated to be $150,000. The reserve fund 
will be within the maximum permitted by the order of one fiscal year's 
expenses.
    Major expense categories for the 1995-96 fiscal year include 
$71,345 for operating expenses, $41,000 for travel expenses, and 
$35,788 for research projects.
    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 

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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 September 1, 1995, and the marketing 
order requires that the rate of assessment for the fiscal year apply to 
all assessable cranberries handled during the fiscal year; and (3) 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 929

    Cranberries, Marketing agreements, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 929 is 
amended as follows:

PART 929--CRANBERRIES GROWN IN THE STATES OF MASSACHUSETTS, RHODE 
ISLAND, CONNECTICUT, NEW JERSEY, WISCONSIN, MICHIGAN, MINNESOTA, 
OREGON, WASHINGTON, AND LONG ISLAND IN THE STATE OF NEW YORK

    1. The authority citation for 7 CFR part 929 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. 929.235 is added to read as follows:


Sec. 929.235  Expenses and assessment rate.

    Expenses of $201,336 by the Cranberry Administrative Committee are 
authorized, and an assessment rate of $0.03 per 100-pound barrel 
assessable cranberries is established for the 1995-96 fiscal year 
ending on August 31, 1996. Unexpended funds may be carried over as a 
reserve.

    Dated: August 4, 1995.
Sharon Bomer Lauritsen,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 95-19745 Filed 8-9-95; 8:45 am]
BILLING CODE 3410-02-P