[Federal Register Volume 62, Number 12 (Friday, January 17, 1997)]
[Rules and Regulations]
[Pages 2549-2550]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-1161]


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DEPARTMENT OF AGRICULTURE
7 CFR Part 932

[Docket No. FV96-932-4 IFR]


Olives Grown In California; 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 
California Olive Committee (Committee) under Marketing Order No. 932 
for the 1997 fiscal year and subsequent fiscal years. The Committee is 
responsible for local administration of the marketing order which 
regulates the handling of olives grown in California. Authorization to 
assess olive handlers enables the Committee to incur expenses that are 
reasonable and necessary to administer the program.

DATES: Effective on January 1, 1997. Comments received by February 18, 
1997, 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 
2525-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: 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, FAX (209) 487-5906, or Tershirra Yeager, 
Program Assistant, Marketing Order Administration Branch, Fruit and 
Vegetable Division, AMS, USDA, P.O. Box 96456, room 2525-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 2525-S, 
Washington, DC 20090-6456, telephone (202) 720-2491, FAX (202) 720-
5698.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing 
Agreement No. 148 and Order No. 932, both as amended (7 CFR part 932), 
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 (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, California 
olive 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 
olives beginning January 1, 1997, 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. Interested persons are invited to 
submit information on the regulatory and informational impacts of this 
action on small businesses.
    There are approximately 1,200 producers of olives in the production 
area and approximately 4 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. None 
of the olive handlers may be classified as small entities, while the 
majority of olive producers may be classified as small entities.
    The olive 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 producers and handlers of 
California olives. 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 December 11, 1996, and recommended 1997 
expenditures of $2,159,265 and an assessment rate of $14.99 per ton 
covering olives from the appropriate crop year. The vote on the 
assessment rate was 13 in favor and 1 opposed, with the opposing grower 
maintaining that the assessment is not sufficient for the industry's 
needs. In comparison, last year's budgeted expenditures were 
$2,600,785. The assessment rate of $14.99 is $13.27 lower than last 
year's established rate. Major expenditures recommended by the 
Committee for the 1997 fiscal year include $390,890 for

[[Page 2550]]

administration, $173,375 for research, and $1,595,000 for market 
development. Budgeted expenses for these items in 1996 were $388,350, 
$213,000, and $1,999,435 respectively.
    The order 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, 1996, through July 31, 1997. 
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 olive receipts for 
the year are 144,075 tons which should provide $2,159,684 in assessment 
income. Income derived from handler assessments will be adequate to 
cover budgeted expenses. Funds in the reserve will be kept within the 
maximum permitted by the order.
    This action will reduce the assessment obligation imposed on 
handlers. The assessments will be uniform for all handlers. The 
assessment costs will be offset by the benefits derived from 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 year 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 
1997 budget and those for subsequent fiscal years 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 1997 
fiscal year began on January 1, 1997, and the marketing order requires 
that the rate of assessment for each fiscal year apply to all 
assessable olives handled during the appropriate crop year; (3) 
handlers are aware of this action which was 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 932

    Marketing agreements, Olives, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 932 is 
amended as follows:

PART 932--OLIVES GROWN IN CALIFORNIA

    1. The authority citation for 7 CFR part 932 continues to read as 
follows:

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

    2. A new subpart--Assessment Rates and a new Sec. 932.230 are added 
to read as follows:

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

Subpart--Assessment Rates


Sec. 932.230  Assessment rate.

    On and after January 1, 1997, an assessment rate of $14.99 per ton 
is established for assessable olives grown in California.

    Dated: January 10, 1997.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 97-1161 Filed 1-16-97; 8:45 am]
BILLING CODE 3410-02-P