Nectarines and Fresh Peaches Grown in California; Expenses and Assessment Rate for the 1995-96 Fiscal Year

SUMMARY: The Department of Agriculture (Department) is adopting as

final, without change, the provisions of the interim final rule which

authorized expenses and established an assessment rate for the

Nectarines Administration Committee and the Peach Commodity Committee

(Committees) under Marketing Order Nos. 916 and 917 for the 1995-96

fiscal year. Authorization of these budgets enables the Committees to

incur expenses that are reasonable and necessary to administer their

programs. Funds to administer the program are derived from assessments

on handlers.

EFFECTIVE DATE: March 1, 1995, through February 29, 1996.

FOR FURTHER INFORMATION CONTACT: Karen T. Chaney, Marketing Order

Administration Branch, Fruit and Vegetable Division, AMS, USDA, P.O.

Box 96456, room 2523-S, Washington, DC 20090-6456, telephone: 202-720-

5127; or J. Terry Vawter, 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 issued under Marketing

Agreement No. 916 (CFR Part 916) regulating the handling of nectarines

grown in California and Marketing Agreement and Order No. 917 (7 CFR

Part 917) regulating the handling of fresh peaches grown in California.

The 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 is issuing this rule in conformance with Executive

Order 12866.

This final rule has been reviewed under Executive Order 12778,

Civil Justice Reform. Under the marketing order provisions now in

effect, nectarines and peaches grown in California are subject to

assessments. It is intended that the assessment rates specifies herein

will be applicable to all assessable nectarines and peaches handled

during the 1995-96 fiscal year, which began March 1, 1995, through

February 29, 1996. This 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 688c(15)(A) of the

Act, any handler subject to an order may file with the Secretary a

petition stating that the order, or 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 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 statutes have small

entity orientation and compatibility.

There are approximately 300 handlers of nectarines and peaches

regulated under the marketing order each season and approximately 1,800

producers of these fruits in California. 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 these handlers and producers

may be classified as small entities.

The nectarine and peach marketing orders, administered by the

Department, require that the assessment rates for particular fiscal

year apply to all assessable nectarines and peaches handled from the

beginning of such year. Annual budgets of expenses are prepared by the

Committees, the agencies responsible for local administration of their

respective marketing order, and submitted to the Department for

approval. The members of the Committees are nectarine and peach

handlers and producers. They are familiar with the Committees' needs

and with the cost for goods, services, and personnel in their local

area, and are thus in a position to formulate appropriate budgets. The

Committees' budgets are formulated and discussed in public meetings.

Thus, all directly affected persons have an opportunity to participate

and provide input.

The assessment rate recommended by the Committee was derived by

dividing anticipated expenses by expected shipments of nectarines and

peaches. Because these rates are applied to actual shipments, they must

be established at a rate that will provide sufficient income to pay the

Committee's expenses.

The Nectarines Administrative Committee met on May 4, 1995, and

unanimously recommended total expenses of $3,683,031 for the 1995-96

fiscal year. In comparison, this is $161,604 less than $3,844,635

expenses amount that was recommended for the 1994-95 fiscal year.

The Committee also unanimously recommended an assessment rate of

[[Page 52068]]

$0.1850 per 25-pound container or equivalent for the 1995-96 fiscal

year, which is $0.5 cent higher than the assessment rate that was

approved for the 1994-95 fiscal year. The assessment rate, when applied

to anticipated shipments of 16,860,000 25-pound containers or

equivalent of nectarines would yield $3,119,100 in assessment income.

Adequate funds exits in the Committee's reserve to cover additional

expenses.

Major expense categories for the 1995-96 nectarine budget include

$340,025 for salaries and benefits, $1,534,593 for domestic market

development $99,117 for production and cultural research, and $855,000

for inspection. Funds in the reserve at the end of the 1995-96 fiscal

year's expenses.

The Peach Commodity Committee also met May 4, 1995, and unanimously

recommended total expenses of $3,736,531, for the 1995-96 fiscal year.

In comparison, this is $230,804 less than the $3,967,335 expenses

amount that was recommended for the 1994-95 fiscal year.

The Committee also unanimously recommended an assessment rate of

$0.19 per 25-pound container or equivalent for the 1995-96 fiscal year,

which is the same assessment rate that was approved for the previous

fiscal year. The assessment rate, when applied to anticipated shipments

of $16,982,000 25-pound containers or equivalent of peaches, would

yield $3,226,580 in assessment income. Adequate funds exist in the

Committee's reserve fund to cover additional expenses

Major expense categories for the 1995-96 fiscal period are $340,024

in salaries and benefits, $1,534,593 for domestic market development,

$99,117 for research, and $900,000 for inspection. Funds in the reserve

at the end of the 1995-96 fiscal year, estimated at $335,864, will be

within the maximum permitted by the order of on fiscal year's expenses.

An interim final rule concerning this action was published in the

August 21, 1995 Federal Register [60 FR 43352], with a 30 day comment

period ending September 30, 1995. No comments were received.

While this action will impose some additional costs on handlers,

the cost are in the form of uniform assessments on all handlers. Some

of the additional costs may be passed on to producers. However, these

costs will be offset by the benefits derived from 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 their rule 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.

After consideration of all relevant material presented, including

the Committee's recommendations, and other available information, it is

found that this interim final rule, as hereinafter set forth, 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 because the Committees need to have sufficient funds

to pay their expenses which are incurred on a continuous basis. The

1995-96 fiscal year began on March 1, 1995, and the marketing orders

require that the rates of assessment for the fiscal year apply to all

assessable nectarines and peaches handled during the fiscal year. In

addition, handlers are aware of this action which was recommended by

the Committees at public meetings. No comments were received concerning

the interim final rule that is adopted in this action as a final rule

without change.

List of Subjects

7 CFR Part 916

Marketing agreements, Nectarines, Reporting and recordkeeping

requirements.

7 CFR Part 917

Marketing agreements, Pears, Peaches, Reporting and recordkeeping

requirements

PART 916--NECTARINES GROWN IN CALIFORNIA

1. Accordingly, the interim final rule amending 7 CFR Part 916

which was published at 60 FR 43350 on August 21, 1995, is adopted as a

final rule without change.

PART 917--FRESH PEARS AND PEACHES GROWN IN CALIFORNIA

2. Accordingly, the interim final rule amending 7 CFR Part 917

which was published at 60 FR 43350 on August 21, 1995, is adopted as a

final rule without change.

Dated: September 28, 1995.

Martha B. Ransom,

Acting Deputy Director, Fruit and Vegetable Division.

[FR Doc. 95-24710 Filed 10-4-95; 8:45 am]

BILLING CODE 3410-02-P