[Federal Register Volume 60, Number 161 (Monday, August 21, 1995)]
[Rules and Regulations]
[Pages 43350-43351]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-20589]



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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

7 CFR Parts 916 and 917

[Docket No. FV95-916-3IFR]


Nectarines and Fresh Peaches Grown in California; Expenses and 
Assessment Rates for the 1995-96 Fiscal Year

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 
assessment rates for the Nectarine Administrative Committee and the 
Peach Commodity Committee (Committees) under M.O. Nos. 916 and 917 for 
the 1995-96 fiscal year. Authorization of these budgets enables 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: Effective beginning March 1, 1995, through February 
29, 1996. Comments received by September 20, 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: Kenneth G. Johnson, 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 J. 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 interim 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 interim 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 1995-96 fiscal year, which began March 1, 1995, through 
February 29, 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 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 Sec. 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, 1995, and 
unanimously recommended total expenses of $3,683,031 for the 1995-96 
fiscal year. In comparison, this is $161,604 less than the $3,844,635 
expense amount that was recommended for the 1994-95 fiscal year.
    The Committee also unanimously recommended an assessment rate of 
$0.1850 per 25-pound container or equivalent for the 1995-96 fiscal 
year, which is $0.5 cent higher than the assessment rate that was 
approved for the 1994-95 fiscal year. The assessment rate, when applied 
to anticipated shipments of 16,860,000 25-pound 

[[Page 43351]]
containers or equivalent of nectarines would yield $3,119,100 in 
assessment income. Adequate funds exist in the Committee's reserve to 
cover additional expenses.
    Major expense categories for the 1995-96 nectarine budget include 
$340,025 for salaries and benefits, $1,534,593 for domestic market 
development, $99,117 for production and cultural research, and $855,000 
for inspection. Funds in the reserve at the end of the 1995-96 fiscal 
year, estimated at $66,072, will be within the maximum permitted by the 
order of one fiscal year's expenses.
    The Peach Commodity Committee also met May 4, 1995, and unanimously 
recommended total expenses of $3,736,531, for the 1995-96 fiscal year. 
In comparison, this is $230,804 less than the $3,967,335 expense amount 
that was recommended for the 1994-95 fiscal year.
    The Committee also unanimously recommended an assessment rate of 
$0.19 per 25-pound container or equivalent for the 1995-96 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 16,982,000 25-pound containers or equivalent of peaches, would yield 
$3,226,580 in assessment income. Adequate funds exist in the 
Committee's reserve fund to cover additional expenses.
    Major expense categories for the 1995-96 fiscal period are $340,025 
in salaries and benefits, $1,534,593 for domestic market development, 
$99,117 for research, and $900,000 for inspection. Funds in the reserve 
at the end of the 1995-96 fiscal year, estimated at $335,864, 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 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.
    After consideration of all relevant material presented, including 
the Committees' recommendations, 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 action 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 1995-96 
fiscal year began on March 1, 1995, and the marketing orders require 
that the rates of assessment for the fiscal year apply to all 
assessable nectarines and peaches handled during the fiscal year; (3) 
handlers are aware of this action which was recommended by the 
Committees at public meetings; 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 action.

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 reasons set forth in the preamble, 7 CFR parts 916 and 917 
are amended as follows:
    1. The authority citation for both 7 CFR parts 916 and 917 
continues to read as follows:

    Authority: 7 U.S.C. 601-674.
    Note: These sections will not appear in the Code of Federal 
Regulations.

PART 916--NECTARINES GROWN IN CALIFORNIA

    2. A new Sec. 916.233 is added to read as follows:


Sec. 916.233  Expenses and Assessment rate.

    Expenses of $3,683,031 by the Nectarine Administrative Committee 
are authorized, and an assessment rate of $0.1850 per 25-pound 
container or equivalent on assessable nectarines is established for the 
1995-96 fiscal year ending on February 29, 1996. Unexpended funds may 
be carried over as a reserve.

PART 917--FRESH PEARS AND PEACHES GROWN IN CALIFORNIA

    3. A new Sec. 917.257 is added to read as follows:


Sec. 917.257  Expenses and Assessment rate.

    Expenses of $3,736,531, by the Peach Commodity Committee are 
authorized, and an assessment rate of $0.19 per 25-pound container or 
equivalent of assessable peaches is established for the 1995-96 fiscal 
year ending on February 29, 1996. Unexpended funds may be carried over 
as a reserve.

    Dated: August 15, 1995
Terry C. Long,
Acting Deputy Director, Fruit and Vegetable Division.
[FR Doc. 95-20589 Filed 8-18-95; 8:45 am]
BILLING CODE 3410-02-P