[Federal Register Volume 65, Number 12 (Wednesday, January 19, 2000)]
[Rules and Regulations]
[Pages 2839-2841]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-1221]



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  Federal Register / Vol. 65, No. 12 / Wednesday, January 19, 2000 / 
Rules and Regulations  

[[Page 2839]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 932

[Docket No. FV00-932-1 IFR]


Olives Grown in California; Decreased Assessment Rate

AGENCY:  Agricultural Marketing Service, USDA.

ACTION:  Interim final rule with request for comments.

-----------------------------------------------------------------------

SUMMARY:  This rule decreases the assessment rate established for the 
California Olive Committee (Committee) for the 2000 and subsequent 
fiscal years from $26.18 to $21.73 per ton of olives handled. 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. 
The fiscal year begins January 1 and ends December 31. The assessment 
rate will remain in effect indefinitely unless modified, suspended, or 
terminated.

DATES:  January 20, 2000. Comments received by March 20, 2000, 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 to the Docket Clerk, Fruit 
and Vegetable Programs, AMS, USDA, room 2525-S, P.O. Box 96456, 
Washington, DC 20090-6456; Fax: (202) 720-5698; or E-mail: 
[email protected]. 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:  Diane Purvis, Marketing Assistant, 
and Rose Aguayo, Marketing Specialist, California Marketing Field 
Office, Fruit and Vegetable Programs, AMS, USDA, 2202 Monterey Street, 
Suite 102B, Fresno, California 93721; telephone: (559) 487-5901, Fax: 
(559) 487-5906; or George Kelhart, Technical Advisor, Marketing Order 
Administration Branch, Fruit and Vegetable Programs, AMS, USDA, room 
2525-S, P.O. Box 96456, Washington, DC 20090-6456; telephone: (202) 
720-2491, Fax: (202) 720-5698.
    Small businesses may request information on complying with this 
regulation by contacting Jay Guerber, Marketing Order Administration 
Branch, Fruit and Vegetable Programs, AMS, USDA, P.O. Box 96456, room 
2525-S, Washington, DC 20090-6456; telephone (202) 720-2491, Fax: (202) 
720-5698, or E-mail: [email protected].

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 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 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 on January 1, 2000, and continue 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.
    This rule decreases the assessment rate established for the 
Committee for the 2000 and subsequent fiscal years from $26.18 per ton 
to $21.73 per ton of olives.
    The California 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.
    For the 1999 and subsequent fiscal years, the Committee 
recommended, and the Department approved, an assessment rate that would 
continue in effect from fiscal year to fiscal year unless modified, 
suspended, or terminated by the Secretary upon recommendation and 
information submitted by the Committee or other information available 
to the Secretary.
    The Committee met on December 9, 1999, and unanimously recommended 
fiscal year 2000 expenditures of $2,472,235 and an assessment rate of 
$21.73 per ton of olives. In comparison, last year's budgeted 
expenditures were $1,845,185. Recommended budget expenditures for 
research are significantly higher this year because of higher 
anticipated research expenses. The higher research budget of $868,550 
is needed to fund: (1) Continued research and development of the

[[Page 2840]]

mechanical olive harvester and (2) scientific studies to develop 
chemical or biological defenses to counteract a potential threat from 
the olive fruit fly in the California production area.
    The following table compares major budget expenditure 
recommendations for the 2000 fiscal year with those from last year.

------------------------------------------------------------------------
               Budget expenditure                    1999        2000
------------------------------------------------------------------------
Administration..................................    $346,485    $356,190
Research........................................     302,000     868,550
Market Development..............................   1,190,500   1,212,495
------------------------------------------------------------------------

    The assessment rate recommended by the Committee was derived by 
considering anticipated expenses, estimated assessable tonnage, and 
additional pertinent factors. The estimate of assessable olives for the 
2000 fiscal year is 113,750 tons. This compares to an assessable 
tonnage of 67,990 for fiscal year 1999. The increase in 2000, due in 
large part to the alternate-bearing nature of olives, has allowed the 
Committee to lower the assessment rate from $26.18 to $21.73 per ton, a 
decrease of $4.45. Income derived from handler assessments, interest, 
and carryover of reserve funds would be adequate to cover budgeted 
expenses. Funds in the reserve at the end of fiscal year 2000 would be 
less than the maximum permitted by Sec. 932.40 of the order 
(approximately one fiscal year's expenses).
    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 will be in effect 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 
2000 budget and those for subsequent fiscal years will be reviewed and, 
as appropriate, approved by the Department.
    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. Accordingly, AMS has 
prepared this initial regulatory flexibility analysis.
    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 1,200 producers of olives in the production 
area and 2 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.
    This rule decreases the assessment rate established for the 
Committee and collected from handlers for the 2000 and subsequent 
fiscal years from $26.18 per ton to $21.73 per ton of olives. The 
Committee unanimously recommended fiscal year 2000 expenditures of 
$2,472,235 and an assessment rate of $21.73 per ton. The assessment 
rate of $21.73 is $4.45 lower than the 1999 rate. The estimated 
quantity of assessable olives for the 2000 fiscal year is 113,750 tons. 
Thus, the $21.73 rate should be adequate to meet this year's budgeted 
expenses, when combined with funds from the authorized reserve and 
interest income.
    The following table compares major budget expenditure 
recommendations for the 2000 fiscal year with those from last year.

------------------------------------------------------------------------
               Budget expenditure                    1999        2000
------------------------------------------------------------------------
Administration..................................    $346,485    $356,190
Research........................................     302,000     868,550
Market Development..............................   1,190,500   1,212,495
------------------------------------------------------------------------

    The higher research budget of $868,550 is needed to fund: (1) 
Continued research and development of the mechanical olive harvester 
and (2) scientific studies to develop chemical and scientific defenses 
to counteract a potential threat from the olive fruit fly in the 
California production area.
    A lower assessment rate is recommended for 2000 because the 
estimated 2000 fiscal year assessable tonnage is approximately 67 
percent larger than last fiscal year's tonnage, due in large part to 
the alternate bearing nature of the crop. A comparison of assessable 
tonnage for fiscal year 2000 with the two previous fiscal years is 
listed below:

------------------------------------------------------------------------
          1998                     1999                    2000
------------------------------------------------------------------------
           85,585                   67,990                  113,750
------------------------------------------------------------------------

    The Committee reviewed and unanimously recommended fiscal year 2000 
expenditures of $2,472,235, which reflects increases in the research, 
market development, and administrative budgets. Prior to arriving at 
this budget, the Committee considered information from various sources, 
such as the Committee's Executive Subcommittee, the Research 
Subcommittee, and the Marketing Subcommittee. Alternate spending levels 
were discussed by these groups, based upon potential reductions in the 
funding of various research and marketing projects. The Committee 
determined it was not necessary to increase the assessment rate to 
cover these expenses because the increased assessable tonnage will 
provide sufficient funds to cover anticipated expenses. The assessment 
rate of $21.73 per ton of assessable olives was derived by considering 
anticipated expenses, the Committee's estimate of assessable olives, 
and additional pertinent factors.
    A review of historical and preliminary information pertaining to 
the upcoming fiscal year indicates that grower revenue for the 1999-
2000 crop year will approximate $64,126,725. With an assessment rate of 
$21.73 per ton and assessable tonnage totaling 113,750 tons, the 
Committee's assessment revenue for fiscal year 2000 will be $2,471,788, 
or approximately 3.9 percent of grower revenue.
    This action decreases the assessment obligation imposed on handlers 
for fiscal year 2000 by $506,187. Assessments are applied uniformly on 
all handlers, and some of the costs may be passed on to producers. 
However, decreasing the assessment rate reduces the burden on handlers, 
and may reduce the burden on producers. In addition, the Committee's 
meeting was widely publicized throughout the California olive industry 
and all interested persons were invited to attend the meeting and 
participate in Committee deliberations on all issues. Like all 
Committee meetings, the December 9, 1999,

[[Page 2841]]

meeting was a public meeting and all entities, both large and small, 
were able to express views on this issue. Finally, interested persons 
are invited to submit information on the regulatory and informational 
impacts of this action on small businesses.
    This action imposes no additional reporting or recordkeeping 
requirements on California olive handlers. As with all Federal 
marketing order programs, reports and forms are periodically reviewed 
to reduce information requirements and duplication by industry and 
public sector agencies.
    The Department has not identified any relevant Federal rules that 
duplicate, overlap, or conflict with this rule.
    A small business guide on complying with fruit, vegetable, and 
specialty crop marketing agreements and orders may be viewed at the 
following web site: http://www.ams.usda.gov/fv/moab.html. Any questions 
about the compliance guide should be sent to Jay Guerber at the 
previously mentioned address in the FOR FURTHER INFORMATION CONTACT 
section.
    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) Fiscal year 2000 begins on January 1, 2000, and 
the marketing order requires that the rate of assessment for each 
fiscal year apply to all assessable olives handled during such fiscal 
year; (2) this action decreases the assessment rate for assessable 
olives beginning with the 2000 fiscal year; (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 60-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. Section 932.230 is revised to read as follows:


Sec. 932.230  Assessment rate.

    On and after January 1, 2000, an assessment rate of $21.73 per ton 
is established for California olives.

    Dated: January 12, 2000.
Robert C. Keeney,
Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 00-1221 Filed 1-18-00; 8:45 am]
BILLING CODE 3410-02-P