[Federal Register Volume 66, Number 44 (Tuesday, March 6, 2001)]
[Rules and Regulations]
[Pages 13389-13391]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-5320]



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  Federal Register / Vol. 66, No. 44 / Tuesday, March 6, 2001 / Rules 
and Regulations  

[[Page 13389]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 932

[Docket No. FV01-932-1 IFR]


Olives Grown in California; Increased Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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

SUMMARY: This rule increases the assessment rate established for the 
California Olive Committee (Committee) for the 2001 and subsequent 
fiscal years from $21.73 to $27.90 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: March 7, 2001. Comments received by May 7, 2001, 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, 
Marketing Order Administration Branch, 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: 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 ``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, 2001, 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 2001 and subsequent fiscal years from $21.73 per ton 
to $27.90 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 2000 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 12, 2000, and unanimously recommended 
fiscal year 2001 expenditures of $1,348,242 and an assessment rate of 
$27.90 per ton of olives. In comparison, last year's budgeted 
expenditures were $2,472,235 and the assessment rate was $21.73. 
Assessable tonnage for 2001 is estimated at 46,374, significantly below 
last year's of 113,750. Although the Committee reduced expenditures in

[[Page 13390]]

marketing development and research, the significant decrease in tonnage 
necessitates a higher assessment rate. The reduced research 
expenditures will 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. Market 
development expenditures are significantly lower because handlers have 
taken more responsibility for market development.
    The following table compares major budget expenditure 
recommendations for the 2001 fiscal year with those from last year.

------------------------------------------------------------------------
              Budget  expenditure                   2000         2001
------------------------------------------------------------------------
Administration................................     $356,190     $343,490
Research......................................      868,550      408,337
Market Development............................    1,212,495      596,415
------------------------------------------------------------------------

    The assessment rate recommended by the Committee was derived by 
considering anticipated expenses, actual tonnage, and additional 
pertinent factors. The significant assessable tonnage decrease in 2001, 
due in large part to the alternate-bearing nature of olives, has made 
it necessary for the Committee to increase the assessment rate from 
$21.73 to $27.90 per ton, an increase of $6.17. Income derived from 
handler assessments, interest, and reserve funds will be adequate to 
cover budgeted expenses. Funds in the reserve will continue to be less 
than the maximum permitted by Sec. 932.40 of the order (approximately 
one fiscal year's expenses) by the end of 2001.
    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 
2001 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 121.201) 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 increases the assessment rate established for the 
Committee and collected from handlers for the 2001 and subsequent 
fiscal years from $21.73 per ton to $27.90 per ton of olives. The 
Committee unanimously recommended 2001 expenditures of $1,348,242 and 
an assessment rate of $27.90 per ton. The assessment rate of $27.90 is 
$6.17 higher than the 2000 rate. The estimated quantity of assessable 
olives for the 2001 fiscal year is 46,374 tons. Thus, the $27.90 rate 
should generate enough funds 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 2001 fiscal year with those from last year.

------------------------------------------------------------------------
              Budget  expenditure                   2000         2001
------------------------------------------------------------------------
Administration................................     $356,190     $343,490
Research......................................      868,550      408,337
Market Development............................    1,212,495      596,415
------------------------------------------------------------------------

    The reduced research expenditures will 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. Market development expenditures are significantly lower because 
handlers have taken more responsibility for market development.
    A higher assessment rate is recommended for 2001 because the 2001 
fiscal year assessable tonnage is approximately 59 percent smaller than 
last fiscal year's tonnage, due in large part to the alternate bearing 
nature of the crop:

------------------------------------------------------------------------
                     1999                           2000         2001
------------------------------------------------------------------------
67,900........................................      113,750       46,374
------------------------------------------------------------------------

    The Committee reviewed and unanimously recommended 2001 
expenditures of $1,348,242, which reflects the decreases 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 market development 
projects. The Committee determined it was necessary to increase the 
assessment rate to cover these expenses because the significant 
decrease in tonnage will not provide sufficient funds to cover 
anticipated expenses. The assessment rate of $27.90 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 the grower revenue for the 
2000-2001 crop year is estimated to be approximately $36,068,864. 
Therefore, if the assessment rate is increased to $27.90 per ton, the 
estimated assessment revenue to the Committee will be $1,293,835 for 
the 2001 fiscal year, or approximately 3.59 percent of grower revenue.
    This action increases the assessment obligation imposed on handlers 
for fiscal year 2001 by $286,128 ($6.17 difference between the new and 
current rate  x  46,374 assessable tonnage estimate for 2001). 
Assessments are applied uniformly on all handlers, and some of the 
costs may be passed on to producers. However, increasing the

[[Page 13391]]

assessment rate increases the burden on handlers, and may increase 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 
12, 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 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: 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 2001 fiscal period begins on January 1, 2001, 
and the marketing order requires that the rate of assessment for each 
fiscal period apply to all assessable olives handled during such fiscal 
period; (2) the action increases the assessment rate for assessable 
olives beginning with the 2001 fiscal period; (3) this action 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, 2001, an assessment rate of $27.90 per ton 
is established for California olives.

    Dated: February 28, 2001.
Kenneth C. Clayton,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 01-5320 Filed 3-5-01; 8:45 am]
BILLING CODE 3410-02-P