[Federal Register Volume 60, Number 214 (Monday, November 6, 1995)]
[Rules and Regulations]
[Pages 55989-55991]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-27392]



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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

7 CFR Part 1131

[Docket No. AO-271-A32; DA-92-24]


Milk in the Central Arizona Marketing Area; Order Amending the 
Order

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: This final rule removes the ``associated producer'' provisions 
and revises the producer-handler definition in the Central Arizona 
Federal milk order. The amendments, which were approved by two-thirds 
of the producers in the market, are based on proposals presented at a 
public hearing held in February 1992.

EFFECTIVE DATE: January 1, 1996.

FOR FURTHER INFORMATION CONTACT: Nicholas Memoli, Marketing Specialist, 
USDA/AMS/Dairy Division, Order Formulation Branch, Room 2971, South 
Building, P.O. Box 96456, Washington, DC 20090-6456, (202) 690-1932.

SUPPLEMENTARY INFORMATION: This administrative rule is governed by the 
provisions of Sections 556 and 557 of Title 5 of the United States Code 
and, therefore, is excluded from the requirements of Executive Order 
12866.
    The Regulatory Flexibility Act (5 U.S.C. 601-612) requires the 
Agency to examine the impact of a proposed rule on small entities. 
Pursuant to 5 U.S.C. 605(b), the Administrator of the Agricultural 
Marketing Service has certified that this action will not have a 
significant economic impact on a substantial number of small entities. 
The amended order will promote orderly marketing of milk by producers 
and regulated handlers.
    This final rule has been reviewed under Executive Order 12278, 
Civil Justice Reform. This rule is not intended to have retroactive 
effect. This rule will not preempt any state or local laws, 
regulations, or policies, unless they present an irreconcilable 
conflict with the rule.
    The Agricultural Marketing Agreement Act of 1937, as amended (7 
U.S.C. 601-674), 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 the law and requesting a modification of an order or to 
be exempted from the order. A handler is afforded the opportunity for a 
hearing on the petition. After a 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 
its 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 the date of the entry of the ruling.
    Prior documents in this proceeding:
    Notice of Hearing: Issued December 21, 1992; published December 30, 
1992 (57 FR 62241).
    Recommended Decision: Issued December 15, 1993; published December 
22, 1993 (57 FR 67703).
    Extension of Time for Filing Exceptions: Issued February 4, 1994; 
published February 14, 1994 (59 FR 6916).
    Revised Recommended Decision: Issued November 4, 1994; published 
November 14, 1994 (59 FR 56414).
    Final Decision: Issued September 19, 1995; published September 28, 
1995 (60 FR 50139).

Findings and Determinations

    The findings and determinations hereinafter set forth supplement 
those that were made when the Central Arizona order was first issued 
and when it was amended. The previous findings and determinations are 
hereby ratified and confirmed, except where they may conflict with 
those set forth herein. 

[[Page 55990]]

    The following findings are hereby made with respect to the Central 
Arizona order:
    (a) Findings upon the basis of the hearing record. Pursuant to the 
provisions of the Agricultural Marketing Agreement Act of 1937, as 
amended (7 U.S.C. 601-674), and the applicable rules of practice and 
procedure governing the formulation of marketing agreements and 
marketing orders (7 CFR Part 900), a public hearing was held upon 
certain proposed amendments to the tentative marketing agreement and to 
the order regulating the handling of milk in the Central Arizona 
marketing area.
    Upon the basis of the evidence introduced at such hearing and the 
record thereof it is found that:
    (1) The Central Arizona order, as hereby amended, and all of the 
terms and conditions thereof, will tend to effectuate the declared 
policy of the Act;
    (2) The parity prices of milk, as determined pursuant to section 2 
of the Act, are not reasonable in view of the price of feeds, available 
supplies of feeds, and other economic conditions which affect market 
supply and demand for milk in the marketing area, and the minimum 
prices specified in the order, as hereby amended, are such prices as 
will reflect the aforesaid factors, insure a sufficient quantity of 
pure and wholesome milk, and be in the public interest; and
    (3) The Central Arizona order, as hereby amended, regulates the 
handling of milk in the same manner as, and is applicable only to 
persons in the respective classes of industrial and commercial activity 
specified in, the marketing agreement upon which a hearing has been 
held.
    (b) Determinations. It is hereby determined that:
    (1) The refusal or failure of handlers (excluding cooperative 
associations specified in Section 8c(9) of the Act) of more than 50 
percent of the milk, which is marketed within the specified marketing 
area, to sign a proposed marketing agreement, tends to prevent the 
effectuation of the declared policy of the Act;
    (2) The issuance of this order amending the Central Arizona order 
is the only practical means pursuant to the declared policy of the Act 
of advancing the interests of producers as defined in the order as 
hereby amended;
    (3) The issuance of the order amending the Central Arizona order is 
favored by at least two-thirds of the producers who were engaged in the 
production of milk for sale in the marketing area.

List of Subjects in 7 CFR Part 1131

    Milk marketing orders.

Order Relative to Handling

    It is therefore ordered, that on and after the effective date 
hereof, the handling of milk in the Central Arizona marketing area 
shall be in conformity to and in compliance with the terms and 
conditions of the order, as amended, and as hereby further amended, as 
follows:

PART 1131--MILK IN THE CENTRAL ARIZONA MARKETING AREA

    1. The authority citation for 7 CFR Part 1131 reads as follows:

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

    2. In Sec. 1131.10, paragraph (a)(3) is redesignated as (a)(4), a 
new paragraph (a)(3) is added, and paragraph (a)(1)(ii) is revised to 
read as follows:


Sec. 1131.10  Producer-handler.

* * * * *
    (a) * * *
    (1) * * *
    (ii) Fluid milk products obtained by transfer or diversion from 
pool plants, other order plants, or from a handler described in 
Sec. 1131.9(b), in an amount not to exceed 5 percent of its fluid milk 
product disposition for the month or 5,000 pounds, whichever is less;
    (2) * * *
    (3) Does not distribute fluid milk products to a wholesale customer 
who also is serviced by a handler described in Sec. 1131.9 (a) or (d) 
that supplied the same product in the same-sized package with a similar 
label to the wholesale customer during the month; and
* * * * *


Sec. 1131.13  [Amended]

    3. In Sec. 1131.13 paragraphs (a)(2) and (b)(1), the words ``that 
is not a producer-handler plant,'' are removed.


Secs. 1131.21 and 1131.22  [Removed]

    4. Sections 1131.21 and 1131.22 are removed.
    5. In Sec. 1131.30, paragraph (d) is redesignated as paragraph (e), 
in newly designated (e) the words ``(a) through (c)'' are revised to 
read ``(a) through (d)'', and a new paragraph (d) is added to read as 
follows:


Sec. 1131.30  Reports of receipts and utilization.

* * * * *
    (d) Each handler described in Sec. 1131.10 shall report:
    (1) The pounds of milk received from each of the handler's own-farm 
production units, showing separately the production of each farm unit 
and the number of dairy cows in production at each farm unit;
    (2) Fluid milk products and bulk fluid cream products received at 
its plant or acquired for route disposition from pool plants, other 
order plants, and handlers described in Sec. 1131.9(b);
    (3) Receipts of other source milk not reported pursuant to 
paragraph (d)(2) of this section;
    (4) Inventories at the beginning and end of the month of fluid milk 
products and products specified in Sec. 1131.40(b)(1); and
    (5) The utilization or disposition of all milk and milk products 
required to be reported pursuant to this paragraph.
* * * * *


Sec. 1131.33  [Removed]

    6. Section 1131.33 is removed.
    7. In Sec. 1131.42 paragraph (d)(2)(vi), the words ``pursuant to 
Sec. 1131.22 or'' are removed, and the introductory text of paragraph 
(c) and paragraph (c)(1) are revised to read as follows:


Sec. 1131.42  Classification of transfers and diversions.

* * * * *
    (c) Transfers and diversions to producer-handlers. Skim milk or 
butterfat transferred or diverted from a pool plant or diverted from a 
handler described in Sec. 1131.9(b) to a producer-handler under this or 
any other order shall be classified:
    (1) As Class I milk, if transferred or diverted in the form of a 
fluid milk product; and
* * * * *


Sec. 1131.44  [Amended]

    8. In Sec. 1131.44(a)(4), the word ``.ilk'' is revised to read 
``milk''.
    9. In Sec. 1131.50, paragraph (a) is revised to read as follows:


Sec. 1131.50  Class prices.

* * * * *
    (a) The Class I price shall be the basic formula price for the 
second preceding month plus $2.52.
* * * * *
    10. In Sec. 1131.61, paragraph (b) is removed, paragraphs (c) 
through (f) are redesignated as paragraphs (b) through (e), and newly 
redesignated paragraph (d) is amended by removing paragraph (d)(3) and 
revising paragraphs (d)(1) and (d)(2) to read as follows:


Sec. 1131.61  Computation of uniform price.

* * * * *
    (d) * * *
    (1) The total hundredweight of producer milk; and 

[[Page 55991]]

    (2) The total hundredweight for which a value is computed pursuant 
to Sec. 1131.60(f).
* * * * *


Sec. 1131.72  [Amended]

    11. In Sec. 1131.72, the word ``for'' is revised to read ``from'' 
in the section heading, paragraph (b) is removed, and paragraph (c) is 
redesignated as paragraph (b).


Sec. 1131.77  [Amended]

    12. In Sec. 1131.77, the last sentence is removed.


Sec. 1131.85  [Amended]

    13. In Sec. 1131.85, paragraph (b) is removed and reserved.

    Dated: October 31, 1995.
Shirley R. Watkins,
Acting Assistant Secretary, Marketing and Regulatory Programs.
[FR Doc. 95-27392 Filed 11-3-95; 8:45 am]
BILLING CODE 3410-02-P