[Federal Register Volume 59, Number 126 (Friday, July 1, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-16060]


[[Page Unknown]]

[Federal Register: July 1, 1994]


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DEPARTMENT OF AGRICULTURE
7 CFR Part 928

[Docket No. FV94-928-1IFR]

 

Papayas Grown in Hawaii; Expenses and Assessment Rate for 1994-95 
Fiscal Year

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: This interim final rule authorizes expenditures and 
establishes an assessment rate for the Papaya Administrative Committee 
(Committee) under M.O. No. 928 for the 1994-95 fiscal year. 
Authorization of this budget enables the Committee to incur expenses 
that are reasonable and necessary to administer this program. Funds to 
administer this program are derived from assessments on handlers.

DATES: Effective beginning July 1, 1994, through June 30, 1995. 
Comments received by August 1, 1994, will be considered prior to 
issuance of a final rule.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this interim final rule. Comments must be sent in triplicate 
to the Docket Clerk, Fruit and Vegetable Division, AMS, USDA, PO Box 
96456, Room 2523-S, Washington, DC 20090-6456; Fax # (202) 720-5698. 
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.

FOR FURTHER INFORMATION CONTACT: Britthany Beadle, Marketing Order 
Administration Branch, Fruit and Vegetable Division, AMS, USDA, PO Box 
96456, Room 2523-S, Washington, DC 20090-6456, telephone: (202) 720-
5127; or Martin Engler, California Marketing Field Office, Fruit and 
Vegetable Division, AMS, USDA, 2202 Monterey Street, Suite 102 B, 
Fresno, California 93721, telephone: (209) 487-5901.

SUPPLEMENTARY INFORMATION: This interim final rule is issued under 
Marketing Agreement and Order No. 928 (7 CFR part 928), regulating the 
handling of papayas grown in Hawaii. 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 interim final rule has been reviewed under Executive Order 
12778, Civil Justice Reform. Under the marketing order provisions now 
in effect, papayas grown in Hawaii are subject to assessments. It is 
intended that the assessment rate specified herein will be applicable 
to all assessable papayas handled during the 1994-95 fiscal year, 
beginning July 1, 1994, through June 30, 1995. This interim final 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 requesting 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 in equity to review 
the Secretary's ruling on the petition, provided a bill in equity is 
filed not later than 20 days after date of the entry of the ruling.
    Pursuant to the requirements set forth in the Regulatory 
Flexibility Act (RFA), the Administrator of the Agricultural Marketing 
Service (AMS) has considered the economic impact of this rule on small 
entities.
    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 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 120 handlers of papayas regulated under the 
marketing order each season and approximately 400 papaya producers in 
Hawaii. Small agricultural producers have been defined by the Small 
Business Administration (13 CFR 121.601) as those having annual 
receipts of less than $500,000, and small agricultural service firms 
are defined as those whose annual receipts are less than $5,000,000. A 
majority of these handlers and producers may be classified as small 
entities.
    The marketing order, administered by the Department, requires that 
the assessment rate for a particular fiscal year apply to all 
assessable papayas handled from the beginning of such year. Annual 
budgets of expenses are prepared by the Committee, the agency 
responsible for local administration of this marketing order, and 
submitted to the Department for approval. The members of the Committee 
are handlers and producers of Hawaii papayas. They are familiar with 
the Committee's needs and with the costs for goods, services, and 
personnel in their local area, and are thus in a position to formulate 
appropriate budgets. The Committee's budget is formulated and discussed 
in a public meeting. Thus, all directly affected persons have an 
opportunity to participate and provide input.
    The assessment rate recommended by the Committee is derived by 
dividing the anticipated expenses by expected shipments of papayas. 
Because that rate is applied to actual shipments, it must be 
established at a rate which will provide sufficient income to pay the 
Committee's expected expenses.
    The Papaya Administrative Committee met on April 22, 1994, and 
unanimously recommended expenses totaling $589,200 for its 1994-95 
budget. This is a $3,260 reduction in expenses compared to the 1993-94 
budget of $592,460.
    The Committee also unanimously recommended an assessment rate of 
$.0089 per pound for the 1994-95 fiscal year, which is a $.0024 
increase in the assessment rate from the $.0065 per pound that was 
approved for the 1993-94 fiscal year. The assessment rate, when applied 
to anticipated shipments of 48 million pounds, would yield $427,200 in 
assessment income. Other sources of program income include $60,000 from 
the Hawaii Department of Agriculture, $57,000 from the USDA's Foreign 
Agricultural Service, $25,000 from the GACC, $7,800 from the Japanese 
Inspection program, $7,200 in interest income, and $5,000 from the 
County of Hawaii. Income from all sources will be adequate to cover 
estimated expenses.
    Major expense categories for the 1994 fiscal year include $240,000 
for the market expansion program, $68,000 for research and development, 
and $78,600 for salaries. Funds in the reserve at the end of the 1994-
95 fiscal year, estimated at $37,356 will be within the maximum 
permitted by the order of one fiscal year's expenses.
    While this action will impose some additional costs on handlers, 
the costs are in the form of uniform assessments on all handlers. Some 
of the additional costs may be passed on to producers. However, these 
costs should be offset by the benefits derived from the operation of 
the marketing order. Therefore, the Administrator of the AMS has 
determined that this action will not have a significant economic impact 
on a substantial number of small entities.
    After consideration of all relevant matter presented, including the 
information and recommendations 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 action until 30 days after publication in the Federal Register 
because: (1) The Committee needs to have sufficient funds to pay its 
expenses which are incurred on a continuous basis; (2) the fiscal year 
for the Committee begins July 1, 1994, and the marketing order requires 
that the rate of assessment for the fiscal year apply to all assessable 
papayas handled during the fiscal year; (3) handlers are aware of this 
action which was recommended by the Committee at a public meeting; and 
(4) this interim final rule provides a 30-day comment period, and all 
comments timely received will be considered prior to finalization of 
this action.

List of Subjects in 7 CFR Part 928

    Marketing agreements, Papayas, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR Part 928 is 
amended as follows:

PART 928--PAPAYAS GROWN IN HAWAII

    1. The authority citation for 7 CFR Part 928 continues to read as 
follows:

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

    Note: This section will not appear in the annual Code of Federal 
Regulations.

    2. A new Sec. 928.224 is added to read as follows:


Sec. 928.224  Expenses and assessment rate.

    Expenses of $589,200 by the Papaya Administrative Committee are 
authorized and an assessment rate of $.0089 per pound of assessable 
papayas is established for the fiscal year ending June 30, 1995. 
Unexpended funds may be carried over as a reserve.

    Dated: June 27, 1994.
Robert C. Keeney,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 94-16060 Filed 6-30-94; 8:45 am]
BILLING CODE 3410-02-P