[Federal Register Volume 60, Number 214 (Monday, November 6, 1995)]
[Proposed Rules]
[Pages 56003-56004]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-27391]



 ========================================================================
 Proposed Rules
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
 
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 

  Federal Register / Vol. 60, No. 214 / Monday, November 6, 1995 / 
Proposed Rules  

[[Page 56003]]


DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 928

[Docket No. FV95-928-1-PR; Amendment 1]


Papayas Grown in Hawaii; Reduction of Expenses and Assessment 
Rate for 1995-96 Fiscal Year

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This proposed rule invites comments on revising the expenses 
and assessment rate previously established under Marketing Order No. 
928 for the 1995-96 fiscal year. This proposal would reduce the budget 
of expenses and rate which papaya handlers may be assessed for funding 
expenses by the Papaya Administrative Committee (Committee) that are 
reasonable and necessary to administer the program.

DATES: Comments must be received by December 6, 1995.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposal. 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, or Fax # (209) 487-5906; or Charles L. Rush, 
Marketing Order Administration Branch, Fruit and Vegetable Division, 
AMS, USDA, room 2522-S. P.O. Box 96456, Washington, D.C. 20090-6456; 
telephone: (202) 720-5331, or Fax # (202) 720-5698.

SUPPLEMENTARY INFORMATION: This proposed rule is issued under Marketing 
Agreement and Order No. 928 (7 CFR part 928), regulating the handling 
of papayas grown in Hawaii; hereinafter referred to as the ``order.'' 
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 proposed 
rule in conformance with Executive Order 12866.
    This proposed 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 as proposed herein will be applicable 
to all assessable papayas handled during the 1995-96 fiscal year, which 
began on July 1, 1995, and ends June 30, 1996. This proposed rule would 
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. 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 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 producers of papayas in Hawaii, and 
approximately 60 handlers regulated under this marketing order. 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 producers and handlers may be classified as small entities.
    The papaya 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 was formulated and 
discussed in a public meeting. Thus, all directly affected persons have 
had an opportunity to participate and provide input.
    The assessment rate recommended by the Committee was derived by 
dividing anticipated expenses by expected shipments of papayas. 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. In recommending an assessment rate, the Committee 
also considered funds available in a monetary reserve that could be 
used to pay expenses. 

[[Page 56004]]

    The 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 contained expenses totaling $465,800 for the 1995-96 
budget. This was 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 was the same as was 
recommended for the 1994-95 fiscal year.
    An interim final rule implementing these recommendations was 
published in the Federal Register [60 FR 43351, August 21, 1995] and 
provided a 30-day comment period for interested persons. No comments 
were received. A final rule was published in the Federal Register on 
September 28, 1995 [60 FR 50078].
    The Committee met again on September 28, 1995, and recommended 
revising the budget to reduce expenses to $435,800, and the assessment 
rate to $.0059 per pound for the 1995-96 fiscal year, which is $.0030 
less than was recommended for the 1994-95 fiscal year. The Committee 
recommended reducing their expenses for research and development by 
$30,000, and reducing the reserve carryover for the following year to 
$26,597. There was some concern expressed at the meeting as to whether 
the Committee would have enough income to meet expenses. Ultimately, by 
a vote of eight to three with one abstention, the Committee recommended 
the reduced expenses of $435,800 and an assessment rate of $.0059.
    The assessment rate, when applied to anticipated shipments of 33 
million pounds, would yield $194,700 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. Thus, total income would be 
expected to be $307,266. The Committee plans on using money from its 
reserve to meet its estimated expenses for the year.
    Major expense categories for the 1995 fiscal year include $165,500 
for the market expansion program, $115,000 for research and 
development, and $67,000 for salaries. Funds in the reserve at the end 
of the 1995-96 fiscal year, estimated at $26,597, would be within the 
maximum permitted by the order of one fiscal year's expenses.
    This action would reduce the assessment obligation imposed on 
handlers. The assessments would be uniform for all handlers. The 
assessment costs would be offset by the benefits derived from the 
operation of the marketing order. Therefore, the Administrator of the 
AMS has determined that this action would not have a significant 
economic impact on a substantial number of small entities.
    Interested persons are invited to submit their views and comments 
on this proposal. Comments received within 30 days of publication of 
this proposed rule in the Federal Register will be considered prior to 
any final action being taken.

List of Subjects in 7 CFR Part 928

    Marketing agreements, Papayas, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 928 is 
proposed to be 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.

    2. Section 928.225 is proposed to be revised as follows:


Sec. 928.225  Expenses and assessment rate.

    Expenses of $435,800 by the Papaya Administrative Committee are 
authorized and an assessment rate of $.0059 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: October 31, 1995.
Terry C. Long,
Acting Deputy Director, Fruit and Vegetable Division.
[FR Doc. 95-27391 Filed 11-3-95; 8:45 am]
BILLING CODE 3410-02-P