[Federal Register: November 2, 2000 (Volume 65, Number 213)]
[Rules and Regulations]
[Page 65707-65709]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr02no00-2]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 929
[Docket No. FV00-929-4 FIR]
Cranberries Grown in States of Massachusetts, et al.; Increased
Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: The Department of Agriculture (Department) is adopting, as a
final rule, without change, the provisions of an interim final rule
which increased 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 acquired by
handlers. 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
ended August 31, 2000. The assessment rate will remain in effect
indefinitely unless modified, suspended, or terminated.
EFFECTIVE DATE: November 3, 2000.
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: Jay.Guerber@usda.gov.
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 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 continues the increase in the assessment rate established
for the Committee for the 1999-2000 and
[[Page 65708]]
subsequent fiscal periods from $0.04 to $0.06 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 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 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 $0.06 per barrel of cranberries. An
increased assessment rate was recommended by the Committee to cover
additional startup costs in connection with implementing a volume
control program for 2000-2001. The Committee held numerous meetings to
discuss the need for volume regulation which were not contemplated in
the original budget for 1999-2000. Volume regulation has been
implemented by the Department for the 2000-2001 season to address the
industry's oversupply situation.
The major increased expenditures recommended by the Committee for
the 1999-2000 fiscal period included $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 generated 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 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.
In a separate action, the Department will propose to increase the
assessment rate for the 2000-2001 fiscal period to cover the
Committee's increased costs associated with implementing volume
regulation. The proposed rule inviting comments on the increase is
being published in this issue of the Federal Register.
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 final 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 continues the increase in 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 was 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 was recommended by the Committee
because the industry is in a surplus situation and recommended a volume
regulation for the 2000-2001 season. The Department has approved that
volume regulation. The Committee incurred additional startup costs in
connection with the development and implementation of the volume
regulation program. Also, the Committee held numerous meetings to
discuss the volume regulation which were not contemplated in the
original budget.
The Committee discussed the alternative of continuing the existing
[[Page 65709]]
assessment rate, but concluded that the Committee could run out of
funds with the implementation of the volume regulation program. In
deriving the recommended assessment rate increase, the Committee used
the actual assessable production for the crop year at 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 continues the increase in 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 are offset by the benefits derived by the operation of the
marketing order. 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.
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.
An interim final rule concerning this action was published in the
Federal Register on August 8, 2000. Finally, the interim final rule was
made available through the Internet by the Office of the Federal
Register. A 60-day comment period was provided for interested persons
to respond to the interim final rule. The comment period ended on
October 10, 2000, and no comments were received.
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 that good cause exists
for not postponing the effective date of this action until 30 days
after publication in the Federal Register because: (1) The 1999-2000
fiscal period ended August 31, 2000, and all assessable cranberries
acquired by handlers during that period have been assessed; (2)
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 (3) an interim final rule was
published on this action which provided for a 60-day comment period; no
comments were received.
List of Subjects in 7 CFR Part 929
Marketing agreements, Cranberries, Reporting and recordkeeping
requirements.
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
Accordingly, the interim final rule amending 7 CFR Part 929 which
was published at 65 FR 48349 on August 8, 2000, is adopted as a final
rule without change.
Robert C. Keeney,
Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 00-28142 Filed 11-1-00; 8:45 am]
BILLING CODE 3410-02-P
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