[Federal Register Volume 72, Number 134 (Friday, July 13, 2007)]
[Proposed Rules]
[Pages 38496-38498]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-13581]


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 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. 72, No. 134 / Friday, July 13, 2007 / 
Proposed Rules  

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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 922

[Docket No. AMS-FV-07-0085; FV07-922-2 PR]


Apricots Grown in Designated Counties in Washington; 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 Washington Apricot Marketing Committee (Committee) for the 2007-
2008 and subsequent fiscal periods from $1.00 to $1.50 per ton for 
Washington apricots. The Committee is responsible for local 
administration of the marketing order regulating the handling of 
apricots grown in designated counties in Washington. Assessments upon 
handlers of apricots are used by the Committee to fund reasonable and 
necessary expenses of the program. The fiscal period for the marketing 
order begins April 1 and ends March 31. The assessment rate would 
remain in effect indefinitely unless modified, suspended or terminated.

DATES: Comments must be received by July 23, 2007.

ADDRESSES: Interested persons are invited to submit written comments 
regarding this rule. Comments must be sent to the Docket Clerk, 
Marketing Order Administration Branch, Fruit and Vegetable Programs, 
AMS, USDA, 1400 Independence Avenue, SW., STOP 0237, Washington, DC 
20250-0237; Fax: (202) 720-8938; or Internet: http://www.regulations.gov. 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.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Robert J. Curry or Gary D. Olson, 
Northwest Marketing Field Office, Marketing Order Administration 
Branch, Fruit and Vegetable Programs, AMS, USDA, 1220 SW., Third 
Avenue, suite 385, Portland, OR 97204; telephone: (503) 326-2724; Fax: 
(503) 326-7440; or E-mail: [email protected] or 
[email protected].
    Small businesses may request information on complying with this 
regulation by contacting Jay Guerber, Marketing Order Administration 
Branch, Fruit and Vegetable Programs, AMS, USDA, 1400 Independence, 
SW., STOP 0237, Washington, DC 20250-0237; telephone: (202) 720-2491; 
Fax: (202) 720-8938; or E-mail: [email protected].

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing Order 
No. 922 (7 CFR 922), as amended, regulating the handling of apricots 
grown in designated counties in Washington, hereinafter referred to as 
the ``order.'' The 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 (USDA) 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, apricot 
handlers in designated counties in Washington are subject to 
assessments. Funds to administer the order are derived from such 
assessments. It is intended that the assessment rate as proposed herein 
would be applicable to all assessable Washington apricots beginning 
April 1, 2007, 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 USDA 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 USDA 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 USDA'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 2007-2008 and subsequent fiscal periods from $1.00 to 
$1.50 per ton for Washington apricots handled under the order.
    The order provides authority for the Committee, with the approval 
of USDA, 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 apricots in designated counties 
in Washington. 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 at a public meeting. Thus, 
all directly affected persons have an opportunity to participate and 
provide input.
    For the 2005-2006 and subsequent fiscal periods, the Committee 
recommended, and the USDA approved, an assessment rate of $1.00 per ton 
of apricots handled. This rate continues in effect from fiscal period 
to fiscal period unless modified, suspended, or terminated by USDA upon 
recommendation and information submitted by the Committee or other 
information available to USDA.
    The Committee met on May 24, 2007, and unanimously recommended 
2007-2008 expenditures of $6,743. In comparison, last year's budgeted 
expenditures were $6,400. In addition, the Committee recommended that 
the current $1.00 per ton assessment rate be increased by $0.50 to 
$1.50 per ton of apricots handled. The Committee recommended the higher 
assessment rate to cover budgeted expenses while increasing its 
monetary reserve to a level commensurate with program objectives and 
requirements.

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    The major expenditures recommended by the Committee for the 2007-
2008 fiscal period include $4,800 for management fees, $1,000 for 
Committee travel, $500 for the annual financial audit, and $100 for 
compliance. Budgeted expenses for these items in 2006-2007 were $4,800, 
$1,000, $600, and $100, respectively. The Committee added $343 to its 
budgeted expenses this year for equipment maintenance, insurance, 
bonds, and miscellaneous expenses.
    The assessment rate recommended by the Committee was derived by 
dividing its anticipated expenses of $6,743 by the projected apricot 
crop of 5,400 tons. Applying the $1.50 per ton assessment rate to the 
Committee's 5,400 ton crop estimate should provide $8,100 in assessment 
income. Income derived from handler assessments would not only 
adequately cover budgeted expenses, but would also add approximately 
$1,357 to the current $3,980 reserve fund. As a consequence, the 
projected fiscal year-end reserve balance of $5,337 would be within the 
maximum permitted by the order of approximately one fiscal period's 
operational expenses.
    The proposed assessment rate would continue in effect indefinitely 
unless modified, suspended, or terminated by USDA upon recommendation 
and information submitted by the Committee or other available 
information.
    Although this 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 the Committee's meetings are available from the Committee or 
USDA. The Committee's meetings are open to the public and interested 
persons may express their views at these meetings. USDA will evaluate 
the Committee's 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 
2007-2008 budget and those for subsequent fiscal periods will be 
reviewed and, as appropriate, approved by USDA.

Initial Regulatory Flexibility Analysis

    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.
    There are approximately 300 apricot producers within the regulated 
production area and approximately 22 regulated handlers. Small 
agricultural producers are defined by the Small Business Administration 
(13 CFR 121.201) as those having annual receipts of less than $750,000, 
and small agricultural service firms are defined as those whose annual 
receipts are less than $6,500,000.
    The Washington Agricultural Statistics Service has prepared a 
report showing that the total 5,400 ton apricot utilization sold for an 
average of $1,150 per ton in 2006 with a total value of approximately 
$6,200,000. Based on the number of producers in the production area 
(300), the average annual producer revenue from the sale of apricots in 
2006 can thus be estimated at approximately $20,700. In addition, based 
on information from the Committee and USDA's Market News Service, 2006 
f.o.b. prices ranged from $15.00 to $20.00 per 24-pound loose-pack 
container, and from $16.00 to $18.00 for 2-layer tray pack containers. 
Of the approximate 3,728 tons of the 2006 season fresh apricots packed-
out, about 1,569 tons were packed in loose-pack containers and about 
2,159 tons in tray-pack containers (weighing an average of about 20 
pounds each). The total receipts for 2006 were less than $6,500,000. 
Thus, the majority of producers and handlers of Washington apricots may 
be classified as small entities.
    This rule would increase the assessment rate established for the 
Committee and collected from handlers for the 2007-2008 and subsequent 
fiscal periods from $1.00 to $1.50 per ton for apricots handled under 
authority of the order. The Committee also unanimously recommended 
2007-2008 expenditures of $6,743. With the 2007-2008 Washington apricot 
crop estimate of 5,400 tons, the Committee anticipates assessment 
income of $8,100. The Committee recommended the assessment rate 
increase to cover budgeted expenses and to increase the monetary 
reserve. With this proposed assessment rate and budget, the Committee 
would be in a position to add about $1,357 to its monetary reserve, 
with a projected balance on March 31, 2008, of approximately $5,337--an 
amount within the maximum permitted by the order of approximately one 
fiscal period's operational expenses.
    The major expenditures recommended by the Committee for the 2007-
2008 fiscal period include $4,800 for management fees, $1,000 for 
Committee travel, $500 for the annual financial audit, and $100 for 
compliance. Budgeted expenses for these items in 2006-2007 were $4,800, 
$1,000, $600, and $100, respectively. The Committee added $343 to its 
budgeted expenses this year for equipment maintenance, insurance, 
bonds, and miscellaneous expenses.
    The Committee discussed alternatives to this recommended assessment 
increase. Leaving the assessment rate at the current $1.00 per ton was 
discussed, but not seriously considered since such a rate would have 
further eroded the Committee's reserves. Higher and lower rates were 
also considered but not recommended because the $1.50 rate would not 
only meet the Committee's objectives for the 2007-2008 season, but also 
increase the reserve to a level commensurate with order provisions.
    A review of historical information and preliminary information 
pertaining to the upcoming crop year indicates that the producer price 
for the 2007-2008 season could average about $1,000 per ton for fresh 
Washington apricots. Therefore, the estimated assessment revenue for 
the 2007-2008 fiscal period as a percentage of total producer revenue 
is 0.15 percent for Washington apricots.
    This action would increase the assessment obligation imposed on 
handlers. While assessments impose some additional costs on handlers, 
the costs are minimal and uniform on all handlers. Some of the 
additional costs may be passed on to producers. However, these costs 
would be offset by the benefits derived by the operation of the order.
    In addition, the Committee's meeting was widely publicized 
throughout the Washington apricot industry and all interested persons 
were invited to attend and participate in Committee deliberations on 
all issues. Like all Committee meetings, the May 24, 2007, meeting was 
a public meeting and all entities, both large and small, were able to 
express views on the issues. Finally, interested persons are invited to 
submit information on the regulatory and informational impacts of this 
action on small businesses.

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    This proposed rule would impose no additional reporting or 
recordkeeping requirements on either small or large Washington apricot 
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. Furthermore, USDA 
has not identified any relevant Federal rules that duplicate, overlap, 
or conflict with this rule.
    AMS is committed to complying with the E-Government Act, to promote 
the use of the Internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services, and for other purposes.
    A small business guide on complying with fruit, vegetable, and 
specialty crop marketing agreements and order 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.
    A 10-day comment period is provided to allow interested persons to 
respond to this proposed rule. Ten days is deemed appropriate because: 
(1) The 2007-2008 fiscal period began on April 1, 2007, and the order 
requires that the assessment rate for each fiscal period apply to all 
assessable apricots handled during such fiscal period; (2) the 
Washington apricot harvest and shipping season is expected to begin as 
early as the last week of June; (3) the Committee needs to have 
sufficient funds to pay its expenses, which are incurred on a 
continuous basis; and (4) handlers are aware of this action, which was 
recommended by the Committee at a public meeting and is similar to 
other assessment rate actions issued in past years.

List of Subjects in 7 CFR Part 922

    Apricots, Marketing agreements, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 922 is 
proposed to be amended as follows:

PART 922--APRICOTS GROWN IN DESIGNATED COUNTIES IN WASHINGTON

    1. The authority citation for 7 CFR part 922 continues to read as 
follows:

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

    2. Section 922.235 is revised to read as follows:


Sec.  922.235  Assessment rate.

    On or after April 1, 2007, an assessment rate of $1.50 per ton is 
established for the Washington Apricot Marketing Committee.

    Dated: July 9, 2007.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. E7-13581 Filed 7-12-07; 8:45 am]
BILLING CODE 3410-02-P