[Federal Register: March 6, 2001 (Volume 66, Number 44)]
[Rules and Regulations]
[Page 13389-13391]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr06mr01-1]
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[[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.
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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: moab.docketclerk@usda.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.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: Jay.Guerber@usda.gov.
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
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Administration................................ $356,190 $343,490
Research...................................... 868,550 408,337
Market Development............................ 1,212,495 596,415
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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
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67,900........................................ 113,750 46,374
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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
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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
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