[Federal Register Volume 60, Number 193 (Thursday, October 5, 1995)]
[Rules and Regulations]
[Pages 52067-52068]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-24710]



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 Rules and Regulations
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  Federal Register / Vol. 60, No. 193 / Thursday, October 5, 1995 / 
Rules and Regulations  

[[Page 52067]]


DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 916 and 917

[Docket No. FV95-916-3FIR]


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

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: The Department of Agriculture (Department) is adopting as 
final, without change, the provisions of the interim final rule which 
authorized expenses and established an assessment rate for the 
Nectarines Administration Committee and the Peach Commodity Committee 
(Committees) under Marketing Order 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 the program are derived from assessments 
on handlers.

EFFECTIVE DATE: March 1, 1995, through February 29, 1996.

FOR FURTHER INFORMATION CONTACT: Karen T. Chaney, Marketing Order 
Administration Branch, Fruit and Vegetable Division, AMS, USDA, P.O. 
Box 96456, room 2523-S, Washington, DC 20090-6456, telephone: 202-720-
5127; or J. Terry Vawter, California Marketing Field Office, Fruit and 
Vegetable Division, AMS, USDA, 2202 Monterey Street, Suite 102B, 
Fresno, California 93721, telephone: 209-487-5901.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing 
Agreement No. 916 (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 is issuing this rule in conformance with Executive 
Order 12866.
    This 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 specifies 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 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 688c(15)(A) of the 
Act, any handler subject to an order may file with the Secretary a 
petition stating that the order, or 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 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 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 300 handlers of nectarines and peaches 
regulated under the marketing order 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 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 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 cost 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 rate recommended by the Committee was derived by 
dividing anticipated expenses by expected shipments of nectarines and 
peaches. Because these rates are applied to actual shipments, they must 
be established at a rate that will provide sufficient income to pay the 
Committee's expenses.
    The Nectarines 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 $3,844,635 
expenses amount that was recommended for the 1994-95 fiscal year.
    The Committee also unanimously recommended an assessment rate of 

[[Page 52068]]
    $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 containers or 
equivalent of nectarines would yield $3,119,100 in assessment income. 
Adequate funds exits 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'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 expenses 
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 $340,024 
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 on fiscal year's expenses.
    An interim final rule concerning this action was published in the 
August 21, 1995 Federal Register [60 FR 43352], with a 30 day comment 
period ending September 30, 1995. No comments were received.
    While this action will impose some additional costs on handlers, 
the cost 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. It is found that the 
specified expenses for the marketing orders covered in their rule are 
reasonable and likely to be incurred and that such expenses and the 
specified assessment rates to cover such expenses will tend to 
effectuate the declared policy of the Act.
    After consideration of all relevant material presented, including 
the Committee's 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.
    It is further found that good cause exists for not postponing the 
effective date of this action until 30 days after publication in the 
Federal Register because the Committees need to have sufficient funds 
to pay their expenses which are incurred on a continuous basis. 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. In 
addition, handlers are aware of this action which was recommended by 
the Committees at public meetings. No comments were received concerning 
the interim final rule that is adopted in this action as a final rule 
without change.

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

PART 916--NECTARINES GROWN IN CALIFORNIA

    1. Accordingly, the interim final rule amending 7 CFR Part 916 
which was published at 60 FR 43350 on August 21, 1995, is adopted as a 
final rule without change.

PART 917--FRESH PEARS AND PEACHES GROWN IN CALIFORNIA

    2. Accordingly, the interim final rule amending 7 CFR Part 917 
which was published at 60 FR 43350 on August 21, 1995, is adopted as a 
final rule without change.

    Dated: September 28, 1995.
Martha B. Ransom,
Acting Deputy Director, Fruit and Vegetable Division.
[FR Doc. 95-24710 Filed 10-4-95; 8:45 am]
BILLING CODE 3410-02-P