Spearmint Oil Produced in the Far West; Assessment Rate

DEPARTMENT OF AGRICULTURE

7 CFR Part 985

[Docket No. FV96-985-2-IFR]

Spearmint Oil Produced in the Far West; Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: This interim final rule establishes an assessment rate for the

Spearmint Oil Administrative Committee (Committee) under Marketing

Order No. 985 for the 1996-97 and subsequent fiscal periods. The

Committee is responsible for local administration of the marketing

order which regulates the handling of spearmint oil produced in the Far

West. Authorization to assess spearmint oil handlers enables the

Committee to incur expenses that are reasonable and necessary to

administer the program.

DATES: Effective on June 1, 1996. Comments received by June 5, 1996,

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 in triplicate to the Docket

Clerk, Fruit and Vegetable Division, AMS, USDA, P.O. 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: Robert J. Curry, Northwest Marketing

Field Office, Marketing Order Administration Branch, Fruit and

Vegetable Division, AMS, USDA, 1220 SW Third Avenue, room 369,

Portland, Oregon 97204-2807; telephone (503) 326-2724; or Tershirra T.

Yeager, Marketing Order Administration Branch, Fruit and Vegetable

Division, AMS, USDA, room 2525, South Building, P.O. Box 96456,

Washington, D.C. 20090-6456; telephone: (202) 720-5127.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing Order

No. 985 (7 CFR part 985), regulating the handling of spearmint oil

produced in the Far West (Washington, Idaho,

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Oregon, and designated parts of California, Nevada, Montana, and Utah),

hereinafter referred to as the ``order.'' The marketing order is

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 12778, Civil

Justice Reform. Under the marketing order now in effect, Far West

spearmint oil 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

spearmint oil beginning June 1, 1996, and continuing 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.

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 260 producers of spearmint oil in the

production area and 8 handlers subject to regulation under the

marketing order. Small agricultural producers have been defined by the

Small Business Administration (13 CFR 121.601) 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. A

minority of spearmint oil producers and handlers may be classified as

small entities.

The spearmint oil 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 of Far West

spearmint oil. 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.

The Committee met on February 27, 1996, and unanimously recommended

1996-97 expenditures of $230,752 and an assessment rate of $0.10 per

pound of spearmint oil. In comparison, last year's budgeted

expenditures were $233,272. The assessment rate of $.10 is the same as

last year's established rate. Major expenditures recommended by the

Committee for 1996-97 include $96,200 for administrative expenses,

$113,552 for salaries, and $21,000 for committee travel. Budgeted

expenses for these items in 1995-96 were $102,900, $107,372, and

$23,009, respectively.

The assessment rate recommended by the Committee was derived by

dividing anticipated expenses by expected shipments of Far West

spearmint oil. Spearmint oil shipments for the year are estimated at

2,081,610 pounds which should provide $208,161 in assessment income.

Income derived from handler assessments, along with interest income and

funds from the committee's authorized reserve, will be adequate to

cover budgeted expenses. Funds in the reserve at the beginning of the

1996-97 fiscal year are estimated at $162,923. Funds in the reserve

will be kept within the maximum permitted by the order.

While this rule 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 will be offset by the benefits derived by the operation of the

marketing order. Therefore, the Administrator of the AMS has determined

that this rule will not have a significant economic impact on a

substantial number of small entities.

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 period 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 is needed. Further

rulemaking will be undertaken as necessary. The Committee's 1996-97

budget and those for subsequent fiscal years will be reviewed and as

appropriate, approved by the Department.

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 Committee needs to have sufficient funds to

pay its expenses which are incurred on a continuous basis; (2) the

1996-97 fiscal period begins on June 1, 1996, and the marketing order

requires that the rate of assessment for each fiscal period apply to

all assessable spearmint oil handled during such fiscal period; (3)

handlers are aware of this action which 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 30-day comment period, and all comments timely

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received will be considered prior to finalization of this rule.

List of Subjects in 7 CFR Part 985

Marketing agreements, Oils and fats, Reporting and recordkeeping

requirements, Spearmint oil.

For the reasons set forth in the preamble, 7 CFR Part 985 is

amended as follows:

PART 985--SPEARMINT OIL PRODUCED IN THE FAR WEST

1. The authority citation for 7 CFR Part 985 continues to read as

follows:

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

2. Section 985.141 is added to read as follows:

Sec. 985.141 Assessment rate.

On and after June 1, 1996, an assessment rate of $0.10 per pound is

established for Far West spearmint oil. Unexpended funds may be carried

over as a reserve.

Dated: April 30, 1996.

Robert C. Keeney,

Director, Fruit and Vegetable Division.

[FR Doc. 96-11152 Filed 5-3-96; 8:45 am]

BILLING CODE 3410-02-P