[Federal Register Volume 65, Number 213 (Thursday, November 2, 2000)]
[Proposed Rules]
[Pages 65788-65790]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-28141]


 ========================================================================
 Proposed Rules
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
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  Federal Register / Vol. 65, No. 213 / Thursday, November 2, 2000 / 
Proposed Rules  

[[Page 65788]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 929

[Docket No. FV00-929-5 PR]


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

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This rule would increase the assessment rate established for 
the Cranberry Marketing Committee (Committee) for the 2000-2001 and 
subsequent fiscal periods from $0.06 to $0.08 per barrel of cranberries 
acquired by handlers. The Committee locally administers the Federal 
marketing order which regulates the handling of cranberries grown in 
the production area. 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 and ends 
August 30. The assessment rate would remain in effect indefinitely 
unless modified, suspended, or terminated.

DATES: Comments must be received by November 17, 2000.

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 would be applicable to all assessable cranberries 
beginning September 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 would increase the assessment rate established for the 
Committee for the 2000-2001 and subsequent fiscal periods for 
cranberries from $0.06 to $0.08 per barrel of cranberries acquired by 
handlers.
    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 1999-2000 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.
    The assessment rate for the 1999-2000 fiscal period was increased 
from $0.04 to $0.06 cents per barrel to generate enough funds to cover 
increased costs due to the industry's oversupply situation. Committee 
expenses in 1999-2000 were initially estimated at $548,231, but had to 
be increased to $675,339 to cover additional meeting and other expenses

[[Page 65789]]

related to the development of volume regulation for the 2000-2001 
season.
    At its June 6, 2000, meeting the Committee developed its 2000-2001 
budget and assessment rate. In July, the Committee conducted a mail 
vote and unanimously recommended expenditures of $778,840 and an 
assessment rate of $.08 per barrel of cranberries. The expenditures and 
assessment rate were discussed and unanimously reaffirmed at the 
Committee's August 28, 2000, meeting. A further increase in the 
assessment rate for 2000-2001 was recommended because the Committee 
needs additional funds to implement volume regulation and further 
address the industry's oversupply situation.
    The major expenditures recommended by the Committee for the 2000-
2001 fiscal period include $223,647 for administration costs, $119,464 
for personnel, and $67,500 for Committee meetings. Budgeted expenses 
for these items in the 1999-2000 budget were $130,358 for 
administration, $119,807 for personnel, and $81,700 for Committee 
meetings.
    The assessment rate recommended by the Committee was derived by 
dividing anticipated expenses by expected barrels of cranberries 
acquired by handlers. Acquisitions for the year are estimated at 
6,400,000 barrels which should provide $512,000 in assessment income. 
Income derived from handler assessments, along with interest income, 
operating reserves, and funds from the Foreign Agricultural Service for 
export marketing programs would be adequate to cover budgeted expenses. 
Any excess funds would be used by the Committee to build up its 
operating reserve. Funds in the reserve, currently $45,000, would be 
kept within the approximately one year's operational expenses permitted 
by the order (Sec. 929.42(a)).
    The proposed assessment rate would 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 would be effective for an indefinite 
period, the Committee would 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 would 
evaluate Committee recommendations and other available information to 
determine whether modification of the assessment rate is needed. 
Further rulemaking would be undertaken as necessary. The Committee's 
2000-2001 budget and those for subsequent fiscal periods would 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 entities.
    The assessment rate for the 1999-2000 fiscal period was increased 
from $0.04 to $0.06 cents per barrel to generate funds to cover 
additional expenses resulting from the industry's oversupply situation. 
Committee expenses in 1999-2000 were initially estimated at $548,231, 
but had to be increased to $675,339 to cover additional meeting and 
other expenses related to the development of volume regulation for the 
2000-2001 season.
    This rule would increase the assessment rate established for the 
Committee and collected from handlers for the 2000-2001 and subsequent 
fiscal periods from $0.06 to $0.08 per barrel of cranberries acquired 
by handlers. The Committee unanimously recommended 2000-2001 expenses 
of $778,840. The major expenditures recommended by the Committee 
include $223,647 for administration costs, $119,464 for personnel, and 
$67,500 for Committee meetings. Budgeted expenses for these items in 
1999-2000 were $130,358, $119,807, and $81,700, respectively.
    The increased assessment rate was recommended by the Committee 
because the Department has approved a volume regulation for the 2000-
2001 season to help stabilize marketing conditions. The Committee needs 
additional funds to administer the volume regulation and further 
address the industry's oversupply situation.
    The Committee discussed the alternative of continuing the existing 
$0.06 per barrel assessment rate, but concluded that the Committee 
could run out of funds with the implementation of a volume regulation 
program. The assessment rate recommended by the Committee was derived 
by dividing anticipated expenses by expected barrels of cranberries 
acquired by handlers. Acquisitions for the year are estimated at 
6,400,000 barrels which should provide $512,000 in assessment income. 
Income derived from handler assessments, along with interest income, 
operating reserves, and funds from the Foreign Agricultural Service for 
export marketing programs would be adequate to cover budgeted expenses. 
Any excess funds would be used by the Committee to build up its 
operating reserve. Funds in the reserve, currently $45,000, would be 
kept within the approximately one year's operational expenses permitted 
by the order (Sec. 929.42(a)).
    This action would increase 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 meetings were widely publicized throughout the cranberry 
industry and all interested persons were invited to attend the meetings 
and participate in Committee deliberations on all issues. Like all 
Committee meetings, 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 would impose 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 65790]]

    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.
    A 15-day comment period is provided to allow interested persons the 
opportunity to respond to this request for information and comments. 
Fifteen days is deemed appropriate because: (1) The Committee needs to 
have sufficient funds to pay its expenses which are incurred on a 
continuous basis; (2) the 2000-2001 fiscal period began on September 1, 
2000, and the order requires that the rate of assessment for each 
fiscal period apply to all assessable cranberries acquired during such 
fiscal period; and (3) handlers are aware of this action which was 
unanimously recommended by the Committee in a mail vote and discussed 
at a public meeting and is similar to other assessment rate actions 
issued in past years.

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 
proposed to be 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, 2000, an assessment rate of $0.08 per 
barrel is established for cranberries.

    Dated: October 27, 2000.
Robert C. Keeney,
Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 00-28141 Filed 11-1-00; 8:45 am]
BILLING CODE 3410-02-P