[Federal Register Volume 59, Number 200 (Tuesday, October 18, 1994)] [Unknown Section] [Page 0] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 94-25666] [[Page Unknown]] [Federal Register: October 18, 1994] ----------------------------------------------------------------------- DEPARTMENT OF AGRICULTURE 7 CFR Parts 945, 967, 987, and 993 [Docket Nos. FV94-945-1FIR, FV94-967-1FIR, FV94-987-1FIR, FV94-993- 1FIR] Expenses and Assessment Rates for Specified Marketing Orders AGENCY: Agricultural Marketing Service, USDA. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: The Department of Agriculture (Department) is adopting as a final rule, without change, the provisions of four interim final rules that authorized expenditures and established assessment rates under Marketing Orders 945, 967, 987, and 993 for the 1994-55 fiscal period. Authorization of these budgets enables the Idaho-Eastern Oregon Potato Committee, the Florida Celery Committee, the California Date Administrative Committee, and the Prune Marketing Committee (Committees) to incur expenses that are reasonable and necessary to administer the programs. Funds to administer these programs are derived from assessments on handlers. EFFECTIVE DATE: Sections 945.247, 967.229, and 993.345 are effective August 1, 1994 through July 31, 1995, and section 987.337 is effective October 1, 1994, through September 30, 1995. FOR FURTHER INFORMATION CONTACT: Martha Sue Clark, Marketing Order Administration Branch, Fruit and Vegetable Division, AMS, USDA, P.O. Box 96456, room 2523-S, Washington, DC 20090-6456, telephone 202-720- 9918; Dennis L. West (M.O. 945), Northwest Marketing Field Office, Fruit and Vegetable Division, AMS, USDA, Green-Wyatt Federal Building, room 369, 1220 Southwest Third Avenue, Portland, OR 97204, telephone 503-326-2724; William G. Pimental (M.O. 967), Southeast Marketing Field Office, Fruit and Vegetable Division, AMS, USDA, P.O. Box 2276, Winter Haven, FL 33883-2276, telephone 813-299-4770; or Maureen Pello (M.O. 987) or Richard P. Van Diest (M.O. 993), California Marketing Field Office, Fruit and Vegetable Division, AMS, USDA, 2202 Monterey Street, suite 102B, Fresno, California 93721, telephone 209-487-5901. SUPPLEMENTARY INFORMATION: This rule is effective under Marketing Agreement No. 98 and Order No. 945, both as amended (7 CFR part 945), regulating the handling of Irish potatoes grown in designated counties in Idaho, and Malheur County, Oregon; Marketing Agreement No. 149 and Order No. 967, both as amended (7 CFR part 967), regulating the handling of celery grown in Florida; Marketing Agreement and Order No. 987, both as amended (7 CFR part 987), regulating the handling of dates produced or packed in Riverside County, California; and Marketing Agreement and Order No. 993, both as amended, regulating the handling of dried prunes produced in California. The marketing agreements and orders 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 is issuing this rule in conformance with Executive Order 12866. This rule has been reviewed under Executive Order 12778, Civil Justice Reform. Under the marketing order provisions now in effect, Idaho-Eastern Oregon potatoes, Florida celery, California dates, and California dried prunes are subject to assessments. It is intended that the assessment rates as issued herein will be applicable to all assessable potatoes, celery, and prunes handled during the 1994-95 fiscal period, which began August 1, 1994, and ends July 31, 1995, and all assessable dates during the 1994-5 crop year which begins October 1, 1994, and ends September 30, 1995. 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 law and requesting a modification of the order or to be exempted therefrom. A 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 the date of the entry of the ruling. Pursuant to 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 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 statues have small entity orientation and compatibility. There are approximately 2,100 producers of Idaho-Eastern Oregon potatoes under Marketing Order 945, and approximately 60 handlers. There are approximately 7 producers of Florida celery under Marketing Order 967, and approximately 7 handlers. There are approximately 135 producers of California dates under Marketing Order 987, and approximately 25 handlers. Also, there are approximately 1,360 producers of California prunes under Marketing Order 993, and approximately 20 handlers. 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. The majority of the producers and handlers covered under these orders may be classified as small entities. The budgets of expenses for the 1994-95 fiscal period were prepared by the Committees, the agencies responsible for local administration of their respective orders, and submitted to the Department for approval. The members of the Committees are producers and handlers of Idaho- Eastern Oregon potatoes, Florida celery, California dates, and California prunes. They are familiar with the Committees' needs and with the costs for goods and services in their local areas and are thus in a position to formulate appropriate budgets. The budgets were formulated and discussed by the Committees. Thus, directly affected persons have had an opportunity to participate and provide input. The recommended assessment rates were derived by dividing anticipated Committee expenses by expected respective shipments of Idaho-Eastern Oregon potatoes, Florida celery, California dates, and California prunes. Because these rates will be applied to actual shipments, the assessment rates must be established at levels that will provide sufficient income to pay the Committees' expenses. The Idaho-Eastern Oregon Potato Committee met June 7, 1994, and unanimously recommended a 1994-95 budget of $99,879, $937 more than the previous year. Increases of $2,737 for salaries, $300 for telephone, $200 for postage, $500 for meetings and miscellaneous, and $200 for Federal payroll taxes will be partially offset by a decrease of $3,000 for reserve/auto purchase. The Committee also unanimously recommended an assessment rate of $0.0026 per hundredweight, the same as each year for the past decade. This rate, when applied to anticipated shipments of 32,000,000 hundredweight, will yield $83,200 in assessment income. This, along with $16,679 from the Committee's authorized reserve at the beginning of the 1994-95 fiscal period, estimated at about $60,000, will be within the maximum permitted by the order of one fiscal period's expenses. The Florida Celery Committee met June 15, 1994, and unanimously recommended a 1994-95 budget of $42,000, $3,000 less than the previous year. The budget item for 1994-95 which has increased compared to 1993- 94 is $200 for the contingency reserve for which no funding was recommended last year. Budget items which have decreased compared to the amount budgeted for 1993-94 (in parentheses) are: Travel for Committee personnel, $1,000 ($2,000), telephone and telegraph, $500 ($600), postage, $200 ($300), and promotion, merchandising, and public relations, $13,000 ($15,000). All other items are budgeted at last year's amounts. The Committee also unanimously recommended an assessment rate of $0.01 per crate, the same as last season. This rate, when applied to anticipated shipments of 4,200,000 crates, will yield $42,000 in assessment income. Funds in the Committee's authorized reserve as of June 15, 1994, estimated at $15,000, were within the maximum permitted by the order of one marketing year's expenses. The California Date Administrative Committee met on March 17, 1994, and by a vote of 6 to 2 with one abstention recommended a 1994-95 budget and assessment rate. The Committee again met on July 7, 1994, and unanimously recommended the line item operating expenses and by a vote of 6 to 2 recommended the line item promotion expenses in the budget. The 1994-95 budget of $571,000 is $101,440 less than the previous year. Included in the budgeted expenditures is an operating budget of $135,135, $13,335 more than last year, with a 26 percent surplus account allocation, for a net operating budget of $100,000, or $2,560 more than last year. Budget items for 1994-95 which have increased compared to those budgeted for 1993-94 (in parentheses) are: Executive Director's salary, $57,500 ($55,000), Administrative Assistant's salary, $18,500 ($15,000), health and related benefits, $8,500 ($7,500), utilities, $1,500 ($1,200), telephone, $5,000 ($3,000), office supplies, $3,600 ($1,500), furniture and equipment, $7,400 ($1,000), printing, $1,600 ($1,000), and insurance, $2,500 ($2,300). Items which have decreased compared to the amount budgeted for 1993-94 (in parentheses) are: payroll taxes, $5,814 ($6,000), postage and meter rental, $1,700 ($2,000), repair and maintenance, $500 ($600), travel and mileage, $1,500 ($2,000), contingency, $221 ($4,000), and market promotion, $450,000 ($575,000). The Committee also eliminated funding for a clerk, unemployment reserve, and USDA compliance audits for which $6,000, $1,000, and $1,900 were recommended last year, respectively. All other items are budgeted at last year's amounts. The assessment rate of $1.50 per hundredweight is $0.25 more than last season. This rate, when applied to anticipated date shipments of 38,000,000 pounds, will yield $570,000 in assessable income. This, along with $1,000 in interest income, will result in $21,000 in excess income which the Committee recommended be allocated to its reserve. These reserve funds, which the Committee estimates would be $121,000 as of September 30, 1995, would be within the maximum amount permitted by the order of not to exceed 50 percent of the average of expenses incurred during the most recent five preceding crop years, except that an estimated reserve need not be reduced to conform to any recomputed average. Funds held by the Committee at the end of the crop year, including the reserve, which are in excess of the crop year's expenses may be used to defray expenses for four months and thereafter the Committee shall refund or credit the excess funds to the handlers. The Prune Marketing Committee met June 28, 1994, and unanimously recommended a 1994-95 budget of $270,200, $21,395 more than the previous year. Budget items for 1994-95 which have increased compared to those budgeted for 1993-94 (in parentheses) are: Executive salaries, $83,850 ($81,500), clerical salaries, $18,650 ($17,600), employee benefits, $15,800 ($14,500), audit fees, $3,650 ($3,500), office rent, $21,500 ($19,000), postage and messenger, $5,000 ($4,500), telephone, $2,500 ($2,000), fieldman travel, $4,000 ($3,500), purchase of equipment, $4,500 ($3,000), acreage survey, $10,000 ($5,000), and reserve for contingencies, $19,250 ($6,705). Items which have decreased compared to the amount budgeted for 1993-94 (in parentheses) are: Temporary help, $5,000 ($8,000), and data processing, $3,500 ($7,000). All other items are budgeted at last year's amounts. The Committee also unanimously recommended an assessment rate of $1.60 per salable ton, $0.30 less than the previous year. This rate, when applied to anticipated shipments of 168,875 salable tons, will yield $270,200 in assessment income, which will be adequate to cover budgeted expenses. Any funds not expended by the Committee during a crop year may be used, pursuant to Sec. 993.81(c), for a period of five months subsequent to that crop year. At the end of such period, the excess funds are returned or credited to handlers. Interim final rules were published in the Federal Register on August 12, 1994, for 7 CFR part 945 (59 FR 41381), 7 CFR part 987 (59 FR 41383), and 7 CFR part 993 (59 FR 41385), and on August 15, 1994, for 7 CFR part 967 (59 FR 41637). Those rules added Sec. 945.247, Sec. 987.337, Sec. 993.345, and Sec. 967.229 which authorized expenses, and established assessment rates for the Committees. Those rules provided that interested persons could file comments through September 12, 1994, for 7 CFR part 945, 7 CFR part 987, and 7 CFR part 993 and through September 14, 1994, for 7 CFR part 967. No comments were filed. While this action will impose some additional costs on handlers, the costs are in the form of uniform assessments on handlers. Some of the additional costs may be passed on to producers. However, these costs will be offset by the benefits derived by the operation of the marketing orders. 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. It is found that the specified expenses for the marketing orders covered in this rulemaking are reasonable and likely to be incurred and that such expenses and the specified assessment rates to cover such expenses will tend to effectuate the declared policy of the Act. It is further found that good cause exists for not postponing the effective date of this action until 30 days after publication in the Federal Register (5 U.S.C. 553) because the Committees need to have sufficient funds to pay their expenses which are incurred on a continuous basis. The 1994-95 fiscal periods for the programs began on August 1, 1994, for Idaho-Eastern Oregon potatoes, Florida celery, and California prunes, and begin on October 1, 1994, for California dates. The marketing orders require that the rates of assessment for the fiscal periods apply to all assessable potatoes, celery, dates, and prunes handled during the fiscal periods. In addition, handlers are aware of these actions which were recommended by the Committees and published in the Federal Register as interim final rules. List of Subjects 7 CFR Part 945 Marketing agreements, Potatoes, Reporting and recordkeeping requirements. 7 CFR Part 967 Celery, Marketing agreements, Reporting and recordkeeping requirements. 7 CFR Part 987 Dates, Marketing agreements, Reporting and recordkeeping requirements. 7 CFR Part 993 Marketing agreements, Plums, Prunes, Reporting and recordkeeping requirements. For the reasons set forth in the preamble, 7 CFR parts 945, 967, 987, and 993 are amended as follows: PART 945--IRISH POTATOES GROWN IN CERTAIN DESIGNATED COUNTIES IN IDAHO AND MALHEUR COUNTY, OREGON Accordingly, the interim final rule amending 7 CFR part 945 which was published at 59 FR 41381 on August 12, 1994, is adopted as a final rule without change. PART 967--CELERY GROWN IN FLORIDA Accordingly, the interim final rule amending 7 CFR part 967 which was published at 59 FR 41637 on August 15, 1994, is adopted as a final rule without change. PART 987--DOMESTIC DATES PRODUCED OR PACKED IN RIVERSIDE COUNTY, CALIFORNIA Accordingly, the interim final rule amending 7 CFR part 987 which was published at 59 FR 41383 on August 12, 1994, is adopted as a final rule without change. PART 993--DRIED PRUNES PRODUCED IN CALIFORNIA Accordingly, the interim final rule amending 7 CFR part 993 which was published at 59 FR 41385 on August 12, 1994, is adopted as a final rule without change. Dated: October 11, 1994. Eric M. Forman, Deputy Director, Fruit and Vegetable Division. [FR Doc. 94-25666 Filed 10-17-94; 8:45 am] BILLING CODE 3410-02-P