[Federal Register Volume 65, Number 71 (Wednesday, April 12, 2000)]
[Rules and Regulations]
[Pages 19644-19646]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-9038]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 932

[Docket No. FV00-932-1 FIR]


Olives Grown in California; Decreased Assessment Rate

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 
which decreased 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 
began January 1 and ends December 31. The assessment rate will remain 
in effect indefinitely unless modified, suspended, or terminated.

EFFECTIVE DATE: May 12, 2000.

FOR FURTHER INFORMATION CONTACT: Diane Purvis, Marketing Assistant, and 
Rose Aguayo, Marketing Specialist, California Marketing Field Office, 
Marketing Order Administration Branch, 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

[[Page 19645]]

 ``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 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 
assessment 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 continues the decrease in 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 handled.
    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 
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, an 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 assemble tonnage 
of 67,990 for fiscal year 1999. The increase in fiscal year 2000, due 
in large part to the alternate-bearing nature of olives, 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 will be adequate to cover budgeted 
expenses. Funds in the reserve at the end of fiscal year 2000 will be 
less than the maximum permitted by Sec. 932.40 of the order 
(approximately one fiscal year's expenses).
    The assessment rate 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 for 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 
fiscal year 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 final 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 3 handlers subject to regulation under the marketing order. 
Small agricultural producers have been defined by the Small Business 
Administration (13 CFR 121.201) 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 continues the decrease in 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

[[Page 19646]]

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) 
Continue 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 was recommended for fiscal year 2000 
because the estimated 2000 fiscal year assessable tonnage is 
approximately 40 percent larger than last fiscal years 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 estimated 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, as estimated assessable tonnage of olives, and 
additional pertinent factors.
    A review of historical and preliminary information pertaining to 
the current fiscal year indicates that the grower revenue for the 1999-
2000 crop year will approximate $64,126,725. With an assessment rate of 
421.73 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 continues to decrease in 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, meeting was 
a public meeting and all entities, both large and small, were able to 
express views on this issue.
    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.
    An interim final rule concerning this action was published in the 
Federal Register on January 19, 2000 (65 FR 2839). Copies of that rule 
were also mailed or sent via facsimile to all commodity handlers. 
Finally, the interim final rule was made available through the Internet 
by the Office of the Federal Register. A 60-day comment period was 
provided for interested persons to respond to the interim final rule. 
The comment period ended on March 20, 2000, and no comments were 
received.
    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 INFORAMTION 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.

List of Subjects in 7 CFR Part 932

    Marketing agreements, Olives, Reporting and recordkeeping 
requirements.

PART 932--OLIVES GROWN IN CALIFORNIA

    Accordingly, the interim final rule amending 7 CFR part 932 which 
was published at 65 FR 2839 on January 19, 2000, is adopted as a final 
rule without change.

    Dated: April 4, 2000.
Robert C. Keeney,
Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 00-9038 Filed 4-11-00; 8:45 am]
BILLING CODE 3410-02-M