[Federal Register Volume 70, Number 226 (Friday, November 25, 2005)]
[Rules and Regulations]
[Pages 70991-70992]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-23253]



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  Federal Register / Vol. 70, No. 226 / Friday, November 25, 2005 / 
Rules and Regulations  

[[Page 70991]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1131

[Docket No. AO-271-A37; DA-03-04-A]


Milk in the Arizona-Las Vegas Marketing Area; Order Amending the 
Order

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: This final rule amends regulations pertaining to the producer 
milk provision of the Arizona-Las Vegas Federal milk order. More than 
the required number of producers for the Arizona-Las Vegas marketing 
area approved the issuance of the final order amendments.

EFFECTIVE DATE: January 1, 2006.

FOR FURTHER INFORMATION CONTACT: Jack Rower, Marketing Specialist, 
USDA/AMS/Dairy Programs, Order Formulation and Enforcement Branch, STOP 
0231-Room 2971, 1400 Independence Avenue, SW., Washington, DC 20250-
0231, (202) 720-2357, e-mail: [email protected].

SUPPLEMENTARY INFORMATION: This document amends the pooling and related 
provisions of the Arizona-Las Vegas Federal milk order. Specifically, 
this final rule permanently adopts a provision that will eliminate the 
ability to simultaneously pool the same milk on the Arizona-Las Vegas 
milk order and any State operated milk order that has marketwide 
pooling.
    This administrative action is governed by the provisions of 
Sections 556 and 557 of Title 5 of the United States Code and, 
therefore, is excluded from the requirements of Executive Order 12866.
    The final rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. The rule is not intended to have a retroactive effect. 
This rule will not preempt any state or local laws, regulations, or 
policies, unless they present an irreconcilable conflict with this 
rule.
    The Agricultural Marketing Agreement Act of 1937, as amended (7 
U.S.C. 601-674), 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 request 
modification or exemption from such order by filing 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 the law. A handler is afforded the opportunity for a hearing on 
the petition. After a 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 its 
principal place of business, has jurisdiction in equity to review the 
Secretary's ruling on the petition, provided a bill in equity is filed 
not later than 20 days after the date of the entry of the ruling.

Regulatory Flexibility Analysis and Paperwork Reduction Act

    In accordance with the Regulatory Flexibility Act (5 U.S.C. 601 et 
seq.), the Agricultural Marketing Service has considered the economic 
impact of this action on small entities and has certified that this 
final rule will not have a significant economic impact on a substantial 
number of small entities.
    For the purpose of the Regulatory Flexibility Act, a dairy farm is 
considered a ``small business'' if it has an annual gross revenue of 
less than $750,000, and a dairy products manufacturer is a ``small 
business'' if it has fewer than 500 employees. For the purposes of 
determining which dairy farms are ``small businesses,'' the $750,000 
per year criterion was used to establish a marketing guideline of 
500,000 pounds per month. Although this guideline does not factor in 
additional monies that may be received by dairy producers, it should be 
an inclusive standard for most ``small'' dairy farmers. For purposes of 
determining a handler's size, if the plant is part of a larger company 
operating multiple plants that collectively exceed the 500-employee 
limit, the plant will be considered a large business even if the local 
plant has fewer than 500 employees.
    In September 2003, the month in which the hearing began, the milk 
of 106 dairy producers was pooled on, and 22 handlers were regulated 
by, the Arizona-Las Vegas order. Approximately 18 producers, or 17 
percent, were small businesses based on the above criteria. On the 
handler side, 7 handlers, or 32 percent were ``small businesses.''
    The adoption of the proposed standards serve to revise and 
establish criteria that ensure the pooling of producers, producer milk, 
and plants that have a reasonable association with, and are 
consistently serving, the fluid milk needs of the Arizona-Las Vegas 
milk marketing area. Criteria for pooling milk are established on the 
basis of performance standards that are considered adequate to meet the 
Class I fluid needs of the market and to determine those that are 
eligible to share in the revenue that arises from the classified 
pricing of milk. Criteria for pooling are established without regard to 
the size of any dairy industry organization or entity. The criteria 
established in the amended pooling standards provision are applied in 
an equal fashion to both large and small businesses. Therefore, the 
amendments will not have a significant economic impact on a substantial 
number of small entities.
    A review of reporting requirements was completed under the 
Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35). It was 
determined that these amendments will have no impact on reporting, 
recordkeeping, or other compliance requirements because they will 
remain identical to the current requirements. No new forms are proposed 
and no additional reporting requirements are necessary.
    This action does not require additional information collection that 
requires clearance by the Office of Management and Budget (OMB) beyond 
currently approved information collection. The primary sources of data 
used to complete the approved forms are routinely used in most business 
transactions. The forms require only a minimal amount of information 
which can be supplied without data processing equipment or a trained 
statistical staff. Thus, the information collection and

[[Page 70992]]

reporting burden is relatively small. Requiring the same reports for 
all handlers does not significantly disadvantage any handler that is 
smaller than the industry average.

Prior Documents in This Proceeding

    Notice of Hearing: Issued July 31, 2003; published August 6, 2003 
(68 FR 46505).
    Correction to Notice of Hearing: August 20, 2003; published August 
26, 2003 (68 FR 51202).
    Notice of Reconvened Hearing: Issued October 27, 2003; published 
October 31, 2003 (68 FR 62027).
    Notice of Reconvened Hearing: Issued December 18, 2003; published 
December 29, 2003 (68 FR 74874).
    Tentative Final Decision: Issued December 23, 2004; published 
December 30, 2004 (69 FR 78355).
    Interim Final Rule: Issued February 23, 2005; published March 1, 
2005 (70 FR 9846).
    Partial Recommended Decision: Issued April 7, 2005; published April 
13, 2005 (70 FR 19636).
    Partial Final Decision: Issued June 20, 2005; published June 27, 
2005 (70 FR 36859).

Findings and Determinations

    The findings and determinations hereinafter set forth supplement 
those that were made when the Arizona-Las Vegas order was first issued 
and when it was amended. The previous findings and determinations are 
hereby ratified and confirmed, except where they may conflict with 
those set forth herein.
    The following findings are hereby made with respect to the Arizona-
Las Vegas order:
    (a) Findings upon the basis of the hearing record. A public hearing 
was held upon certain proposed amendments to the tentative marketing 
agreement and to the order regulating the handling of milk in the 
Arizona-Las Vegas marketing area. The hearing was held pursuant to the 
provisions of the Agricultural Marketing Agreement Act of 1937, as 
amended (7 U.S.C. 601-674), and the applicable rules of practice and 
procedure (7 CFR Part 900).
    Upon the basis of the evidence introduced at such hearing and the 
record thereof, it is found that:
    (1) The Arizona-Las Vegas order as hereby amended, and all of the 
terms and conditions thereof, will tend to effectuate the declared 
policy of the Act;
    (2) The parity prices of milk, as determined pursuant to Section 2 
of the Act, are not reasonable in view of the price of feeds, available 
supplies of feeds, and other economic conditions which affect market 
supply and demand for milk in the aforesaid marketing area. The minimum 
prices specified in the order as hereby amended are such prices as will 
reflect the aforesaid factors, insure a sufficient quantity of pure and 
wholesome milk, and be in the public interest; and
    (3) The Arizona-Las Vegas order as hereby amended regulates the 
handling of milk in the same manner as, and is applicable only to 
persons in the respective classes of industrial or commercial activity 
specified in, a marketing agreement upon which a hearing has been held.
    (b) Determinations. It is hereby determined that:
    (1) The refusal or failure of handlers (excluding cooperative 
associations specified in Sec. 8c(9) or the Act) of more than 50 
percent of the milk that is marketed within the specified marketing 
area to sign a proposed marketing agreement tends to prevent the 
effectuation of the declared policy of the Act;
    (2) The issuance of this order amending the Arizona-Las Vegas order 
is the only practical means pursuant to the declared policy of the Act 
of advancing the interests of producers as defined by the order as 
hereby amended;
    (3) The issuance of the order amending the Arizona-Las Vegas order 
is favored by at least two-thirds of the producers who were engaged in 
the production of milk for sale in the marketing area.

List of Subjects in 7 CFR Part 1131

    Milk marketing orders.

Order Relative to Handling

    It is therefore ordered, that on and after the effective date 
hereof, the handling of milk in the Arizona-Las Vegas marketing area 
shall be in conformity to and in compliance with the terms and 
conditions of the order, as amended, and as hereby further amended, as 
follows:

0
The provisions of the order amending the order contained in the interim 
amendment of the order issued by the Administrator, Agricultural 
Marketing Service, on February 23, 2005, and published in the Federal 
Register on March 1, 2005 (70 FR 9846), are adopted without change and 
shall be and are the terms and provisions of this order.

    Dated: November 18, 2005.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. 05-23253 Filed 11-23-05; 8:45 am]
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