[Federal Register Volume 61, Number 2 (Wednesday, January 3, 1996)]
[Rules and Regulations]
[Pages 99-100]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-23]



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 Rules and Regulations
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  Federal Register / Vol. 61, No. 2 / Wednesday, January 3, 1996 / 
Rules and Regulations  

[[Page 99]]


DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 928

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


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

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: This final rule reduces the expenses and rate of assessment 
previously established under Marketing Order No. 928 for the 1995-96 
fiscal year. This rule reduces the budget of expenses and assessment 
rate which papaya handlers will be assessed for funding expenses by the 
Papaya Administrative Committee (Committee) that are reasonable and 
necessary to administer the program.

EFFECTIVE DATE: July 1, 1995 through June 30, 1996.

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) 720-5127, or Fax # (202) 720-5698.

SUPPLEMENTARY INFORMATION: This final 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 rule in 
conformance with Executive Order 12866.
    This 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 issued herein will be applicable to all 
assessable papayas handled during the 1995-96 fiscal year, which began 
July 1, 1995, and ends June 30, 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 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.
    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 

[[Page 100]]
year, which was the same as was recommended for the 1994-95 fiscal 
year.
    An interim final rule was published in the Federal Register (60 FR 
43351, August 21, 1995). 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, yields $194,700 in assessment income. Other sources of 
program income include $40,000 from the Hawaii Department of 
Agriculture, $57,000 from the Department'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 is expected to be $307,266. The Committee plans to use money 
from its reserve account to meet its estimated expenses for the year.
    Major expense categories for the 1995-96 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, will be within the 
maximum permitted by the order of one fiscal year's expenses.
    A proposed rule was published in the Federal Register on November 
6, 1995 (60 FR 56003). That rule provided a 30-day comment period. No 
comments were received.
    This action will reduce the assessment obligation imposed on 
handlers. The assessments will be uniform for all handlers. The 
assessment costs are expected to 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. 533, it is also found and determined that good 
cause exists for not postponing the effective date of this rule until 
30 days after publication in the Federal Register because: (1) This 
action reduces the expenses and rate of assessment previously 
established under the marketing order for the 1995-96 fiscal year; (2) 
the 1995 crop year began on July 1, 1995, and the marketing order 
requires that the rate of assessment apply to all assessable papayas 
during the crop year; and (3) handlers are aware of this rule which was 
recommended by the Committee at a public meeting and published in the 
Federal Register as a proposed rule. The proposed rule provided a 30-
day comment period; no comments were received.

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

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


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: December 26, 1995.
Sharon Bomer Lauritsen,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 96-23 Filed 1-2-96; 8:45 am]
BILLING CODE 3410-02-P