[Federal Register Volume 60, Number 161 (Monday, August 21, 1995)]
[Rules and Regulations]
[Pages 43351-43353]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-20590]



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DEPARTMENT OF AGRICULTURE
7 CFR Part 928

[Docket No. FV95-928-1IFR]


Papayas Grown in Hawaii; Expenses and Assessment Rate for 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 expenditures and 
establishes an assessment rate for the Papaya Administrative Committee 
(Committee) under M.O. No. 928 for the 1995-96 fiscal year. 
Authorization of this budget enables the Committee to incur expenses 
that are reasonable and necessary to administer this program. Funds to 
administer this program are derived from assessments on handlers.

DATES: Effective beginning July 1, 1995, through June 30, 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, 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: Karen T. Chaney, Marketing Order 
Administration Branch, Fruit and Vegetable Division, AMS, USDA, PO Box 
96456, room 2523-S, Washington, DC 20090-6456, telephone: (202) 720-
5127; or Martin Engler, California Marketing Field Office, Fruit and 
Vegetable Division, AMS, USDA, 2202 Monterey Street, suite 102 B, 
Fresno, California 93721, telephone: (209) 487-5901.


[[Page 43352]]

SUPPLEMENTARY INFORMATION: This interim final rule is issued under 
Marketing Agreement and Order No. 928 (7 CFR part 928), regulating the 
handling of papayas grown in Hawaii. The marketing agreement and order 
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, papayas grown in Hawaii are subject to assessments. It is 
intended that the assessment rate specified herein will be applicable 
to all assessable papayas handled during the 1995-96 fiscal year, 
beginning July 1, 1995, through June 30, 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 120 handlers of papayas regulated under the 
marketing order each season and approximately 400 papaya producers in 
Hawaii. 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. A 
majority of these producers and handlers may be classified as small 
entities.
    The marketing order, administered by the Department, requires that 
the assessment rate for a particular fiscal year apply to all 
assessable papayas handled from the beginning of such year. Annual 
budgets of expenses are prepared by the Committee, the agency 
responsible for local administration of this marketing order, and 
submitted to the Department for approval. The members of the Committee 
are handlers and producers of Hawaiian papayas. 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 
appropriate budgets. The Committee's budget is formulated and discussed 
in a public meeting. Thus, all directly affected persons have an 
opportunity to participate and provide input.
    The assessment rate recommended by the Committee is derived by 
dividing the anticipated expenses by expected shipments of papayas. 
Because that rate is applied to actual shipments, it must be 
established at a rate which will provide sufficient income to pay the 
Committee's expected expenses.
    The Papaya Administrative Committee met on April 28, 1995, and 
unanimously recommended expenses totaling $562,044 for its 1995-96 
budget. The Committee met again on July 20, 1995, and unanimously 
recommended a new budget because the original budget contained 
inaccuracies. The revised recommendation contains expenses totaling 
$465,800 for the 1995-96 budget. This is a $123,400 reduction in 
expenses compared to the 1994-95 budget of $589,200.
    The Committee also unanimously recommended an assessment rate of 
$.0089 per pound for the 1995-96 fiscal year, which is the same as was 
recommended for the 1994-95 fiscal year.
    The assessment rate, when applied to anticipated shipments of 33 
million pounds, would yield $293,700 in assessment income. Other 
sources of program income include $40,000 from the Hawaii Department of 
Agriculture, $57,000 from the USDA's Foreign Agricultural Service, 
$7,800 from the Japanese Inspection program, $3,000 in interest income, 
and $4,766 from the County of Hawaii. Income from all sources will be 
adequate to cover estimated expenses.
    Major expense categories for the 1994 fiscal year include $165,500 
for the market expansion program, $145,000 for research and 
development, and $67,600 for salaries. Funds in the reserve at the end 
of the 1995-96 fiscal year, estimated at $112,279, 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 should 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 matter presented, including the 
information and recommendations 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 action 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 
fiscal year for the Committee began July 1, 1995, and the marketing 
order requires that the rate of assessment for the fiscal year apply to 
all assessable papayas handled during the fiscal year; (3) handlers are 
aware of this action 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 action.

List of Subjects in 7 CFR Part 928

    Marketing agreements, Papayas, Reporting and recordkeeping 
requirements.

 
[[Page 43353]]

    For the reasons set forth in the preamble, 7 CFR part 928 is 
amended as follows:

PART 928--PAPAYAS GROWN IN HAWAII

    1. The authority citation for 7 CFR part 928 continues to read as 
follows:

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

    Note: This section will not appear in the annual Code of Federal 
Regulations.

    2. A new Sec. 928.225 is added to read as follows:


Sec. 928.225  Expenses and assessment rate.

    Expenses of $465,800 by the Papaya Administrative Committee are 
authorized and an assessment rate of $.0089 per pound of assessable 
papayas is established for the fiscal year ending June 30, 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. 95-20590 Filed 8-18-95; 8:45 am]
BILLING CODE 3410-02-P