[Federal Register Volume 65, Number 153 (Tuesday, August 8, 2000)]
[Rules and Regulations]
[Pages 48349-48351]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-19988]



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  Federal Register / Vol. 65, No. 153 / Tuesday, August 8, 2000 / Rules 
and Regulations  

[[Page 48349]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 929

[Docket No. FV00-929-4 IFR]


Cranberries Grown in States of Massachusetts, et al.; Increased 
Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: This rule increases the assessment rate established for the 
Cranberry Marketing Committee (Committee) for the 1999-2000 and 
subsequent fiscal periods from $0.04 to $0.06 per barrel of 
cranberries. The Committee locally administers 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. The fiscal period began September 1, 1999, and 
ends August 31, 2000. The assessment rate will remain in effect 
indefinitely unless modified, suspended, or terminated.

DATES: August 9, 2000. Comments received by October 10, 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 or can be viewed at: http://www.ams.usda.gov/fv/moab.html.

FOR FURTHER INFORMATION CONTACT: Patricia A. Petrella or Kenneth G. 
Johnson, DC Marketing Field Office, Fruit and Vegetable Programs, AMS, 
USDA, Suite 2A04, Unit 155, 4700 River Road, Riverdale, Maryland 20737, 
telephone: (301) 734-5243; Fax: (301) 734-5275; 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 Order 
No. 929, as amended (7 CFR part 929), regulating the handling of 
cranberries grown in 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, 1999, 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 increases the assessment rate established for the 
Committee for the 1999-2000 and subsequent fiscal periods from $0.04 to 
$0.06 per barrel of cranberries.
    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 producers 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.
    For the 1996-1997 fiscal period, the Committee recommended, and the 
Department approved, an assessment rate that would continue in effect 
from fiscal period to fiscal period unless modified, suspended, or 
terminated by the Secretary upon recommendation and information 
submitted by the Committee or other information available to the 
Secretary.
    In August of 1999, the Committee recommended, and the Department 
administratively approved, 1999-2000

[[Page 48350]]

expenditures of $548,231. The Committee met on March 30, 2000, and 
unanimously recommended additional 1999-2000 expenditures of $127,108 
for total 1999-2000 expenditures of $675,339 and an assessment rate of 
$.06 per barrel of cranberries. An increased assessment rate has been 
recommended by the Committee because the industry is in a surplus 
situation and has recommended that a volume regulation be implemented 
for the 2000-2001 season. The Committee would have additional startup 
costs to implement such a program. Also, the Committee has held 
meetings to discuss the volume regulation which were not contemplated 
in the original budget.
    The major increased expenditures recommended by the Committee for 
the 1999-2000 fiscal period include $128,239 for administration costs, 
$120,307 for personnel, and $81,700 for Committee meetings. Budgeted 
expenses for these items in the original 1999-2000 budget were $63,531 
for administration, $93,407 for personnel, and $49,200 for Committee 
meetings.
    In deriving the recommended assessment rate increase, the Committee 
used the actual assessable production of 6,355,413 barrels. This figure 
is 1,005,413 barrels more than the 5,350,413 barrels estimated at the 
beginning of the fiscal period. This increased rate is expected to 
generate an additional $127,108 for a total of $341,108 in assessment 
income. This amount plus interest income, funds from other sources, and 
funds in the reserve will be sufficient to cover budgeted expenses. 
Funds in the reserve (currently $45,000) will be kept within the 
approximately one year's operational expenses permitted by the order 
(Sec. 929.42(a)).
    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 the 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 1999-2000 
budget and those for subsequent fiscal periods will be reviewed and, as 
appropriate, approved by the Department.

The Regulatory Flexibility Act and Effects on Small Businesses

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA), the Agricultural Marketing Service (AMS) has considered the 
economic impact of this action 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 rules 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 20 handlers of cranberries who are subject 
to regulation under the order and approximately 1,100 producers of 
cranberries in the regulated area. Small agricultural service firms, 
which include handlers, are defined by the Small Business 
Administration (13 CFR 121.201) as those having annual receipts of less 
than $5,000,000, and small agricultural producers are defined as those 
having annual receipts of less than $500,000. The majority of cranberry 
handlers and producers may be classified as small businesses.
    This rule increases the assessment rate established for the 
Committee and collected from handlers for the 1999-2000 and subsequent 
fiscal periods from $0.04 to $0.06 per barrel of cranberries. In August 
of 1999, the Committee recommended, and the Department administratively 
approved, 1999-2000 expenditures of $548,231. On March 30, 2000, the 
Committee met and unanimously recommended additional expenditures of 
$127,108 for total 1999-2000 expenditures of $675,339. The assessment 
rate of $0.06 is $0.02 higher than the previous rate. The quantity of 
assessable cranberries for the 1999-2000 year is 6,355,413 barrels, 
1,005,413 barrels more than the 5,350,000 estimated at the beginning of 
the fiscal period. Income derived from handler assessments, along with 
interest income and funds from the Committee's authorized reserve, will 
be adequate to cover budgeted expenses.
    The major increased expenditures recommended by the Committee for 
the 1999-2000 fiscal period include $128,239 for administration costs, 
$120,307 for personnel, and $81,700 for Committee meetings. Budgeted 
expenses for these items in the original 1999-2000 budget were $63,531 
for administration, $93,407 for personnel, and $49,200 for Committee 
meetings.
    An increased assessment rate has been recommended by the Committee 
because the industry is in a surplus situation and has recommended that 
a volume regulation be implemented for the 2000-2001 season. The 
Committee would have additional startup costs to implement such a 
program. Also, the Committee has held meetings to discuss the volume 
regulation which were not contemplated in the original budget.
    The Committee discussed the alternative of continuing the existing 
assessment rate, but concluded that the Committee could run out of 
funds if a volume regulation program is implemented. In deriving the 
recommended assessment rate increase, the Committee used the actual 
assessable production for the crop year of 6,355,413 barrels. This 
amount plus adequate supplies in the reserve will be sufficient to 
cover budgeted expenses. Funds in the reserve (currently $45,000) will 
be kept within the approximately one year's operational expenses 
permitted by the order (Sec. 929.42(a)).
    This action increases the assessment obligation imposed on 
handlers. Assessments are applied uniformly on all handlers, and some 
of the costs may be passed on to producers. In addition, the 
Committee's meeting was widely publicized throughout the cranberry 
industry and all interested persons were invited to attend the meeting 
and participate in Committee deliberations on all issues. Like all 
Committee meetings, the March 30, 2000, 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 either small or large cranberry 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.

[[Page 48351]]

    A small business guide on complying with fruit, vegetable, and 
specialty crop marketing agreements and orders may be viewed at the 
following website: 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) The 1999-2000 fiscal period began on September 1, 
1999, and ends on August 31, 2000, and the marketing order requires 
that the rate of assessment for each fiscal period apply to all 
assessable cranberries handled during such fiscal period; (2) the 
Committee needs the additional funds to begin implementation of a 
volume regulation program, if approved by the Department; (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 929

    Marketing agreements, Cranberries, Reporting and recordkeeping 
requirements.

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

PART 929--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

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

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

    2. Section 929.236 is revised to read as follows:


Sec. 929.236  Assessment rate.

    On and after September 1, 1999, an assessment rate of $0.06 per 
barrel is established for cranberries.

    Dated: August 3, 2000.
Robert C. Keeney,
Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 00-19988 Filed 8-3-00; 8:45 am]
BILLING CODE 3410-02-P