[Federal Register Volume 61, Number 78 (Monday, April 22, 1996)]
[Rules and Regulations]
[Pages 17555-17556]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-9827]



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DEPARTMENT OF AGRICULTURE
7 CFR Part 932

[Docket No. FV96-932-1FIR]


Expenses and Assessment Rate for Marketing Order Covering Olives 
Grown in California

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: The Department of Agriculture (Department) is adopting without 
change, the provisions of an interim final rule, that authorized 
expenses and established an assessment rate for the California Olive 
Committee (Committee) under Marketing Order No. 932 for the 1996 fiscal 
year. The Committee is responsible for local administration of the 
marketing order which regulates the handling of the California Olives. 
Authorization of this budget enables the Committee to incur expenses 
that are reasonable and necessary to administer the program. Funds to 
administer this program are derived from assessments on handlers.

EFFECTIVE DATE: Effective beginning January 1, 1996, through December 
31, 1996.

FOR FURTHER INFORMATION CONTACT: Terry Vawter, California Marketing 
Field Office, Fruit and Vegetable Division, AMS, USDA, 2202 Monterey 
Street, suite 102B, Fresno, California 93721, telephone 209-487-5901; 
or Tershirra T. Yeager, Marketing Order Administration Branch, F&V, 
AMS, USDA, PO Box 96456, room 2523-S, Washington, DC 20090-6456; 
telephone 202-720-5127.

SUPPLEMENTARY INFORMATION: This final rule is issued under Marketing 
Agreement No. 148 and Marketing Order No. 932 (7 CFR part 932), as 
amended, regulating the handling of olives grown in California, 
hereinafter referred to as the ``order.'' The order is 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 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, olives grown in California are subject to assessments. It is 
intended that the assessment rate as issued herein will be applicable 
to all assessable olives during the 1996 fiscal year, beginning January 
1, 1996, through December 31, 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. A 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 5 handlers of olives grown in California who are subject 
to regulation under the order and approximately 1,350 producers of 
olives in the regulated area. 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

[[Page 17556]]

than $5,000,000. None of the olive handlers may be classified as small 
entities, while the majority of olive producers may be classified as 
small entities.
    The order, administered by the Department, requires that the 
assessment rate for a particular fiscal year apply to all assessable 
olives handled during the appropriate crop year, which for this season 
is August 1, 1995, through July 31, 1996. The budget of expenses for 
the 1996 fiscal year was prepared by the Committee and submitted to the 
Department for approval. The Committee consists of handlers and 
producers. 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 an appropriate budget. The budget was 
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 actual receipts of olives by handlers 
during the crop year. Because that rate is applied to actual receipts, 
it must be established at a rate which will produce sufficient income 
to pay the Committee's expected expenses.
    The recommended budget and rate of assessment is usually acted upon 
by the Committee after the crop year begins and before the fiscal year 
starts, and expenses are incurred on a continuous basis. Therefore, the 
budget and assessment rate approval must be expedited so that the 
Committee will have funds to pay its expenses.
    The Committee met on December 14, 1995, and recommended 1996 
marketing order expenditures of $2,600,785 for its budget. This is 
$280,865 less in expenses than the previous year. The major budget 
categories for the 1996 fiscal year include administration ($388,350), 
research ($213,000), and market development ($1,999,435).
    The Committee also recommended an assessment rate of $28.26 per ton 
covering olives from the appropriate crop year. This is $1.78 less than 
last year's assessment rate of $30.04. The assessment rate, when 
applied to actual handler receipts of 62,182 tons from the 1995 olive 
crop year, would yield $1,757,726 in assessment income. This along with 
approximately $829,000 from the Committee's authorized reserves will be 
adequate to cover estimated expenses. Reserve funds forwarded from the 
1995 fiscal year are estimated at $210,000 which is within the maximum 
permitted by the order of one fiscal year's expenses.
    An interim final rule was issued on February 12, 1996, and 
published in the Federal Register (61 FR 6306; February 20, 1996). That 
rule provided a 30-day comment period which ended March 21, 1996. No 
comments were received.
    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 will 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 material presented, including 
the Committee's recommendation, and other available information, it is 
found that this 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 rule 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 1996 fiscal year began on January 1, 1996, and the marketing order 
requires that the rate of assessment for the fiscal year apply to all 
assessable olives handled during the fiscal year; (3) handlers are 
aware of this rule which was recommended by the Committee at a public 
meeting; and (4) an interim final rule was published in the Federal 
Register providing a 30-day comment period, and no comments were 
received.

List of Subjects in 7 CFR Part 932

    Marketing agreements, Olives, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR parts 932 are 
amended as follows:

PART 932--OLIVES GROWN IN CALIFORNIA

    Accordingly, the interim final rule amending 7 CFR part 932 which 
was published at 61 FR 6306 on February 20, 1996, is adopted as a final 
rule without change.

    Dated: April 16, 1996.
Eric M. Forman,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 96-9827 Filed 4-19-96; 8:45 am]
BILLING CODE 3410-02-P