[Federal Register Volume 61, Number 185 (Monday, September 23, 1996)]
[Rules and Regulations]
[Pages 49651-49653]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-24239]


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DEPARTMENT OF AGRICULTURE
7 CFR Parts 916 and 917

[Docket No. FV96-916-1 FIR]


Nectarines and Fresh Peaches Grown in California; Assessment 
Rates

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: The Department of Agriculture (Department) is adopting as a 
final rule, without change, the provisions of an interim final rule 
establishing assessment rates for the Nectarine Administrative 
Committee and the Peach Commodity Committee (Committees) under 
Marketing Order Nos. 916 and 917 for the 1996-97 and subsequent fiscal 
periods. The Committees are responsible for local administration of the 
marketing orders which regulate the handling of nectarines and fresh 
peaches grown in California. Authorization to assess nectarine and 
fresh peach handlers enables the Committees to incur expenses that are 
reasonable and necessary to administer the programs.

EFFECTIVE DATE: March 1, 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, (209) 
487-5901, FAX (209) 487-5906, or Kenneth G. Johnson, 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) 720-5127, 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 
Agreement No. 916 and Order No. 916, both as amended (7 CFR part 916), 
regulating the handling of nectarines grown in California, and 
Marketing Agreement No. 917 and Order No. 917, both as amended (7 CFR 
part 917), regulating the handling of fresh peaches grown in 
California, hereinafter referred to as the ``orders.'' The marketing 
agreements and orders 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 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 orders now in effect, California 
nectarine and fresh peach handlers are subject to assessments. Funds to 
administer the orders are derived from such assessments. It is intended 
that the assessment rates as issued herein will be applicable to all 
assessable nectarines and peaches beginning March 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

[[Page 49652]]

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 1,800 producers of nectarines and peaches 
in the production area and approximately 300 handlers subject to 
regulation under the marketing orders. 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 nectarine and fresh peach 
producers and handlers may be classified as small entities.
    The nectarine and peach marketing orders provide authority for the 
Committees, with the approval of the Department, to formulate annual 
budgets of expenses and collect assessments from handlers to administer 
the programs. The members of the Committees are producers and handlers 
of California nectarines and fresh peaches. They are familiar with the 
Committees' needs and with the costs for goods and services in their 
local area and are thus in a position to formulate appropriate budgets 
and assessment rates. The assessment rates are formulated and discussed 
in public meetings. Thus, all directly affected persons have an 
opportunity to participate and provide input.
    The Nectarine Administrative Committee met on May 2, 1996, and 
unanimously recommended 1996-97 expenditures of $3,682,728 and an 
assessment rate of $0.1850 per 25-pound container or equivalent of 
nectarines. In comparison, last year's budgeted expenditures were 
$3,683,031. The assessment rate of $0.1850 is the same as last year's 
established rate. Major expenditures recommended by the Committee for 
the 1996-97 year include $1,326,376 for domestic market development, 
$972,300 for inspection, $342,250 in salaries and benefits, and 
$120,870 for research. Budgeted expenses for these items in 1995-96 
were $1,534,593, $855,000, $340,025, and $99,117 respectively.
    The Peach Commodity Committee met on May 1, 1996, and unanimously 
recommended 1996-97 expenditures of $3,722,757 and an assessment rate 
of $0.1900 per 25-pound container or equivalent of fresh peaches. In 
comparison, last year's budgeted expenditures were $3,736,531. The 
assessment rate of $0.1900 is the same as last year's established rate. 
Major expenditures recommended by the Committee for the 1996-97 year 
include $1,326,376 for domestic market development, $991,500 for 
inspection, $342,250 in salaries and benefits, and $120,870 for 
research. Budgeted expenses for these items in 1995-96 were $1,534,593, 
$900,000, $340,025, and $99,117 respectively.
    The assessment rates recommended by the Committees were derived by 
dividing anticipated expenses by expected shipments of California 
nectarines and fresh peaches. Nectarine shipments for the year are 
estimated at 17,266,000 25-pound containers or equivalent which should 
provide $3,194,210 in assessment income, and fresh peach shipments for 
the year are estimated at 17,250,000 25-pound containers or equivalent 
which should provide $3,277,500 in assessment income. Income derived 
from handler assessments, the Plum Commodity Committee, and the Pear 
Field Service, along with interest income and funds from the 
Committees' authorized reserves, will be adequate to cover budgeted 
expenses. Funds in the reserves will be kept within the maximum 
permitted by the orders.
    An interim final rule regarding this action was published in the 
July 22, 1996, issue of the Federal Register (61 FR 37812). That rule 
provided for a 30-day comment period. Two comments were received, both 
in support of the assessment rates as published.
    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 orders.
    Therefore, the AMS has determined that this rule will not have a 
significant economic impact on a substantial number of small entities.
    The assessment rates established in this rule will continue in 
effect indefinitely unless modified, suspended, or terminated by the 
Secretary upon recommendation and information submitted by the 
Committees or other available information.
    Although these assessment rates are effective for an indefinite 
period, the Committees will continue to meet prior to or during each 
fiscal period to recommend budgets of expenses and consider 
recommendations for modification of their assessment rates. The dates 
and times of Committee meetings are available from the Committees or 
the Department. Committee meetings are open to the public and 
interested persons may express their views at these meetings. The 
Department will evaluate the Committees' recommendations and other 
available information to determine whether modification of the 
assessment rates are needed. The Committees' 1996-97 budgets 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 recommendations submitted by the Committees 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 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 
Committees need to have sufficient funds to pay their expenses which 
are incurred on a continuous basis; (2) the 1996-97 fiscal periods 
began on March 1, 1996, and the marketing orders require that the rates 
of assessment for each fiscal period apply to all assessable nectarines 
and peaches handled during such fiscal period; (3) handlers are aware 
of this action which was unanimously recommended by the Committees at 
public meetings and is similar to other assessment rate actions issued 
in past years; and (4) an interim final rule was published on this 
action and provided for a 30-day comment period. Two comments were 
received, both in support of the assessment rates as published.

[[Page 49653]]

List of Subjects

7 CFR Part 916

    Nectarines, Marketing agreements, Reporting and recordkeeping 
requirements.

7 CFR Part 917

    Peaches, Pears, Marketing agreements, Reporting and recordkeeping 
requirements.

PART 916--NECTARINES GROWN IN CALIFORNIA

PART 917--FRESH PEARS AND PEACHES GROWN IN CALIFORNIA

    Accordingly, the interim final rule amending 7 CFR parts 916 and 
917 which was published at 61 FR 37812 on July 22, 1996, is adopted as 
a final rule.

    Dated: September 16, 1996.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 96-24239 Filed 9-20-96; 8:45 am]
BILLING CODE 3410-02-P