Cranberries Grown in the States of Massachusetts, Rhode Island, Connecticut, New Jersey, Wisconsin, Michigan, Minnesota, Oregon, Washington, and Long Island in the State of New York; Assessment Rate

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

Cranberry Marketing Committee (Committee) under Marketing Order No. 929

for the 1996-97 and subsequent fiscal periods. The Committee is

responsible for local administration of the marketing order which

regulates the handling of cranberries grown in the States of

Massachusetts, Rhode Island, Connecticut, New Jersey, Wisconsin,

Michigan, Minnesota, Oregon, Washington, and Long Island in the State

of New York. Authorization to assess cranberry handlers enables the

Committee to incur expenses that are reasonable and necessary to

administer the program.

DATES: Effective on September 1, 1996. Comments received by September

11, 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: Kathleen M. Finn, Marketing

Specialist, Marketing Order Administration Branch, Fruit and Vegetable

Division, AMS, USDA, P.O. Box 96456, room 2523-S, Washington, DC 20090-

6456, telephone (202)720-1509, Fax# (202) 720-5698, or Tershirra

Yeager, Program Assistant, 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, Fax# (202) 720-

5698. Small businesses may request information on compliance with this

regulation by contacting: Jay Guerber, Marketing Order Administration

Branch, Fruit and Vegetable Division, AMS, USDA, P.O. Box 96456, Room

2523-S, Washington, D.C. 20090-6456; telephone: (202) 720-2491, Fax#

(202) 720-5698.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing Order

No. 929 (7 CFR part 929), as amended, regulating the handling of

cranberries grown in the States of Massachusetts, Rhode Island,

Connecticut, New Jersey, Wisconsin, Michigan, Minnesota, Oregon,

Washington, and Long Island in the State of New York, 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 12988, Civil

Justice Reform. Under the marketing order now in effect, cranberry

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 cranberries

beginning September 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 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 1,050 producers of cranberries in the

production area and approximately 30 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. The majority of cranberry producers and handlers may be

classified as small entities. Interested persons are invited to submit

information on the regulatory and informational impacts of this action

on small businesses.

The cranberry 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

[[Page 41730]]

producers and handlers of cranberries. 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 March 4, 1996, and recommended by a 7-to-1

vote an assessment rate of $0.04 per barrel of cranberries. A mail vote

was conducted by the Committee regarding the budget, requiring

responses by June 20, 1996. Seven out of eight responses were received

in favor of the proposed budget. The 1996-97 recommended expenditures

are $192,980. In comparison, last year's budgeted expenditures were

$201,336. The assessment rate of $0.04 is $0.01 higher than last year's

established rate. Major expenditures recommended by the Committee for

the 1996-97 year include $63,764 for administrative expenses, and

$66,732 for compensation.

The assessment rate recommended by the Committee was derived by

dividing anticipated expenses by expected shipments of cranberries.

Cranberry shipments for the year are estimated at 4,737,000 barrels

which should provide $189,480 in assessment income. Income derived from

handler assessments, along with interest income, will be adequate to

cover budgeted expenses. 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 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 rate is needed.

Further rulemaking will be undertaken as necessary. The Committee's

1996-97 budget and those for subsequent fiscal periods 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 September 1, 1996, and the marketing

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

to all assessable cranberries 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 received will

be considered prior to finalization of this rule.

List of Subjects in 7 CFR Part 929

Cranberries, Marketing agreements, Reporting and recordkeeping

requirements.

For the reasons set forth in the preamble, 7 CFR part 929 is

amended as follows:

PART 929--CRANBERRY MARKETING COMMITTEE

1. The authority citation for 7 CFR part 929 continues to read as

follows:

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

2. A new subpart--Assessment Rates and a new Sec. 929.236 are added

to read as follows:

Note: This section will appear in the Code of Federal

Regulations.

Subpart--Assessment Rate

Sec. 929.236 Assessment rate.

On and after September 1, 1996, an assessment rate of $0.04 per

barrel is established for cranberries.

Dated: August 6, 1996.

Robert C. Keeney,

Director, Fruit and Vegetable Division.

[FR Doc. 96-20411 Filed 8-9-96; 8:45 am]

BILLING CODE 3410-02-P