[Federal Register Volume 61, Number 156 (Monday, August 12, 1996)]
[Rules and Regulations]
[Pages 41729-41730]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-20411]



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 Rules and Regulations
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  Federal Register / Vol. 61, No. 156 / Monday, August 12, 1996 / Rules 
and Regulations  

[[Page 41729]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 929

[Docket No. FV96-929-3 IFR]


Cranberries Grown in the States of Massachusetts, Rhode Island, 
Connecticut, New Jersey, Wisconsin, Michigan, Minnesota, Oregon, 
Washington, and Long Island in the State of New York; Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: This interim final rule establishes an assessment rate for the 
Cranberry Marketing Committee (Committee) under Marketing Order No. 929 
for the 1996-97 and subsequent fiscal periods. The Committee is 
responsible for local administration of the marketing order which 
regulates the handling of cranberries grown in the States of 
Massachusetts, Rhode Island, Connecticut, New Jersey, Wisconsin, 
Michigan, Minnesota, Oregon, Washington, and Long Island in the State 
of New York. Authorization to assess cranberry handlers enables the 
Committee to incur expenses that are reasonable and necessary to 
administer the program.

DATES: Effective on September 1, 1996. Comments received by September 
11, 1996, will be considered prior to issuance of a final rule.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this rule. 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: Kathleen M. Finn, Marketing 
Specialist, Marketing Order Administration Branch, Fruit and Vegetable 
Division, AMS, USDA, P.O. Box 96456, room 2523-S, Washington, DC 20090-
6456, telephone (202)720-1509, Fax# (202) 720-5698, or Tershirra 
Yeager, Program Assistant, 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, Fax# (202) 720-
5698. Small businesses may request information on compliance with this 
regulation by contacting: Jay Guerber, Marketing Order Administration 
Branch, Fruit and Vegetable Division, AMS, USDA, P.O. Box 96456, Room 
2523-S, Washington, D.C. 20090-6456; telephone: (202) 720-2491, Fax# 
(202) 720-5698.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing Order 
No. 929 (7 CFR part 929), as amended, regulating the handling of 
cranberries grown in the States of Massachusetts, Rhode Island, 
Connecticut, New Jersey, Wisconsin, Michigan, Minnesota, Oregon, 
Washington, and Long Island in the State of New York, hereinafter 
referred to as the ``order.'' The marketing 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 (Department) is issuing this rule in 
conformance with Executive Order 12866.
    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. Under the marketing order now in effect, cranberry 
handlers are subject to assessments. Funds to administer the order are 
derived from such assessments. It is intended that the assessment rate 
as issued herein will be applicable to all assessable cranberries 
beginning September 1, 1996, and continuing until amended, suspended, 
or terminated. This 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 to review the 
Secretary's ruling on the petition, provided an action is filed not 
later than 20 days after the date of the entry of the ruling.
    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA), 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 1,050 producers of cranberries in the 
production area and approximately 30 handlers subject to regulation 
under the marketing order. Small agricultural producers have been 
defined by the Small Business Administration (13 CFR 121.601) as those 
having annual receipts 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 cranberry producers and handlers may be 
classified as small entities. Interested persons are invited to submit 
information on the regulatory and informational impacts of this action 
on small businesses.
    The cranberry marketing order provides authority for the Committee, 
with the approval of the Department, to formulate an annual budget of 
expenses and collect assessments from handlers to administer the 
program. The members of the Committee are

[[Page 41730]]

producers and handlers of cranberries. They are familiar with the 
Committee's needs and with the costs for goods and services in their 
local area and are thus in a position to formulate an appropriate 
budget and assessment rate. The assessment rate is formulated and 
discussed in a public meeting. Thus, all directly affected persons have 
an opportunity to participate and provide input.
    The Committee met on March 4, 1996, and recommended by a 7-to-1 
vote an assessment rate of $0.04 per barrel of cranberries. A mail vote 
was conducted by the Committee regarding the budget, requiring 
responses by June 20, 1996. Seven out of eight responses were received 
in favor of the proposed budget. The 1996-97 recommended expenditures 
are $192,980. In comparison, last year's budgeted expenditures were 
$201,336. The assessment rate of $0.04 is $0.01 higher than last year's 
established rate. Major expenditures recommended by the Committee for 
the 1996-97 year include $63,764 for administrative expenses, and 
$66,732 for compensation.
    The assessment rate recommended by the Committee was derived by 
dividing anticipated expenses by expected shipments of cranberries. 
Cranberry shipments for the year are estimated at 4,737,000 barrels 
which should provide $189,480 in assessment income. Income derived from 
handler assessments, along with interest income, will be adequate to 
cover budgeted expenses. Funds in the reserve will be kept within the 
maximum permitted by the order.
    While this rule 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 by the operation of the 
marketing order. Therefore, the AMS has determined that this rule will 
not have a significant economic impact on a substantial number of small 
entities.
    The assessment rate established in this rule will continue in 
effect indefinitely unless modified, suspended, or terminated by the 
Secretary upon recommendation and information submitted by the 
Committee or other available information.
    Although this assessment rate is effective for an indefinite 
period, the Committee will continue to meet prior to or during each 
fiscal period to recommend a budget of expenses and consider 
recommendations for modification of the assessment rate. The dates and 
times of Committee meetings are available from the Committee or the 
Department. Committee meetings are open to the public and interested 
persons may express their views at these meetings. The Department will 
evaluate Committee recommendations and other available information to 
determine whether modification of the assessment rate is needed. 
Further rulemaking will be undertaken as necessary. The Committee's 
1996-97 budget and those for subsequent fiscal periods will be reviewed 
and, as appropriate, approved by the Department.
    After consideration of all relevant material presented, including 
the information and recommendation 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. 553, it is also found and determined upon good 
cause that it is impracticable, unnecessary, and contrary to the public 
interest to give preliminary notice prior to putting this rule into 
effect, and 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 
1996-97 fiscal period begins on September 1, 1996, and the marketing 
order requires that the rate of assessment for each fiscal period apply 
to all assessable cranberries handled during such fiscal period; (3) 
handlers are aware of this action which was unanimously recommended by 
the Committee at a public meeting and is similar to other assessment 
rate actions issued in past years; and (4) this interim final rule 
provides a 30-day comment period, and all comments timely received will 
be considered prior to finalization of this rule.

List of Subjects in 7 CFR Part 929

    Cranberries, Marketing agreements, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 929 is 
amended as follows:

PART 929--CRANBERRY MARKETING COMMITTEE

    1. The authority citation for 7 CFR part 929 continues to read as 
follows:

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

    2. A new subpart--Assessment Rates and a new Sec. 929.236 are added 
to read as follows:

    Note: This section will appear in the Code of Federal 
Regulations.

Subpart--Assessment Rate


Sec. 929.236   Assessment rate.

    On and after September 1, 1996, an assessment rate of $0.04 per 
barrel is established for cranberries.

    Dated: August 6, 1996.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 96-20411 Filed 8-9-96; 8:45 am]
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