[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]


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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.

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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