Assessment Rates for Specified Marketing Orders

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

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

that establishes assessment rates for Marketing Order Nos. 922, 923 and

924 for the 1996-97 and subsequent fiscal periods. The Washington

Apricot Marketing Committee, Washington Cherry Marketing Committee, and

Washington-Oregon Fresh Prune Marketing Committee (Committees) are

responsible for local administration of the marketing orders which

regulate the handling of apricots and cherries grown in designated

counties in Washington, and prunes grown in designated counties in

Washington and in Umatilla County, Oregon. Authorization to assess

apricot, cherry and prune handlers enables the Committees to incur

expenses that are reasonable and necessary to administer the programs.

EFFECTIVE DATE: April 1, 1996.

FOR FURTHER INFORMATION CONTACT: Tershirra Yeager, Marketing Assistant,

Marketing Order Administration Branch, Fruit and Vegetable Division,

AMS, USDA, PO Box 96456, Room 2522-S, Washington, DC 20090-6456,

telephone (202) 720-5127, FAX (202) 720-5698, or Teresa L. Hutchinson,

Marketing Specialist, Northwest Marketing Field Office, Fruit and

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

Portland, OR 97204, telephone (503) 326-2724, FAX (503) 326-7440. Small

businesses may request information on compliance with this regulation

by contacting: Jay Guerber, Marketing Order Administration Branch,

Fruit and Vegetable Division, AMS, USDA, PO Box 96456, Room 2523-S,

Washington, DC 20090-6456; telephone: (202) 720-2491, FAX (202) 720-

5698.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing

Agreement and Order No. 922 (7 CFR part 922), regulating the handling

of apricots grown in designated counties in Washington; Marketing Order

No. 923 (7 CFR part 923) regulating the handling of sweet cherries

grown in designated counties in Washington; and Marketing Order No. 924

(7 CFR part 924) regulating the handling of fresh prunes grown in

designated counties in Washington and in Umatilla County, Oregon,

hereinafter referred to as the ``orders.'' 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 (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 orders now in effect, handlers in

designated areas are subject to assessments. Funds to administer the

orders are derived from such assessments. It is intended that the

assessment rates as issued herein will be applicable to all assessable

apricots, cherries, and prunes beginning April 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 handlers are 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 55 handlers of Washington apricots, 55

handlers of Washington sweet cherries, and 30 handlers of Washington-

Oregon fresh prunes subject to regulation under the marketing orders.

In addition, there are about 190 Washington apricot producers, 1,100

Washington sweet cherry producers, and 350 Washington-Oregon fresh

prune producers in the respective production areas. 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 Washington apricot,

Washington cherry, and Washington-Oregon fresh prune 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 orders provide authority for the Committees, with the approval

of the Department, to formulate annual budgets of expenses and collect

assessments from handlers to administer the programs. The members of

the Committees are producers and handlers in designated counties in

Washington and in Umatilla County, Oregon. They are familiar with the

Committees needs

[[Page 50230]]

and with the costs for goods and services in their local area and are

thus in a position to formulate appropriate budgets and assessment

rates. The assessment rates are formulated and discussed in public

meetings. Thus, all directly affected persons have an opportunity to

participate and provide input.

The Washington Apricot Marketing Committee met on May 16, 1996, and

unanimously recommended 1996-97 expenditures of $9,385 and an

assessment rate of $3.00 per ton of apricots. In comparison, last

year's budgeted expenditures were $9,594.

The assessment rate recommended by the Committee was derived by

dividing anticipated expenses by expected shipments of apricots grown

in designated counties in Washington. Apricot shipments for the year

are estimated at 2,300 tons which should provide $6,900 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 will be kept

within the maximum permitted by the order.

The Washington Cherry Marketing Committee met on May 17, 1996, and

unanimously recommended 1996-97 expenditures of $56,665 and an

assessment rate of $1.00 per ton of cherries. In comparison, last

year's budgeted expenditures were $55,393.

The assessment rate recommended by the Committee was derived by

dividing anticipated expenses by expected shipments of cherries grown

in designated counties in Washington. Shipments for the year are

estimated at 30,000 tons which should provide $30,000 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 will be kept

within the maximum permitted by the order.

The Washington-Oregon Fresh Prune Committee met on May 29, 1996,

and unanimously recommended 1996-97 expenditures of $6,645 and an

assessment rate of $1.00 per ton of fresh prunes. In comparison, last

year's budgeted expenditures were $10,018.

The assessment rate recommended by the Committee was derived by

dividing anticipated expenses by expected shipments of fresh prunes

grown in designated counties in Washington and Umatilla County, Oregon.

Fresh prune shipments for the year are estimated at 2,700 tons which

should provide $2,700 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 will be kept within the maximum permitted by the order.

The Committees voted against having an assessment rate for their

respective programs for the 1995-96 fiscal year. Major expenditures

recommended by the Committees for the 1996-97 year include salary

expenses, and office expenses.

An interim final rule regarding this action was published in the

August 7, 1996, issue of the Federal Register (61 FR 40954). That rule

provided a 30-day comment period. No comments were received.

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 orders. Therefore, the AMS has determined that this rule will

not have a significant economic impact on a substantial number of small

entities.

The assessment rates established in this rule will continue in

effect indefinitely unless modified, suspended, or terminated by the

Secretary upon recommendation and information submitted by the

Committees or other available information.

Although these assessment rates are effective for an indefinite

period, the Committees will continue to meet prior to or during each

fiscal period to consider recommendations for modification of the

assessment rates. The dates and times of Committee meetings are

available from the Committees 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 rates are needed. Further rulemaking will be undertaken

as necessary. The Committees' 1996-97 budgets 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 Committees 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 that good

cause exists for not postponing the effective date of this action until

30 days after publication in the Federal Register because: (1) The

Committees need to have sufficient funds to pay their expenses which

are incurred on a continuous basis; (2) the 1996-97 fiscal period began

on April 1, 1996, and the marketing orders require that the rates of

assessment for each fiscal period apply to all assessable apricots,

cherries and prunes handled during such fiscal period; (3) handlers are

aware of the actions which were recommended by the Committees at public

meetings and are similar to other assessment rate actions issued in

past years; and (4) an interim final rule was published on this action,

providing a 30-day comment period, and no comments were received.

List of Subjects

7 CFR Part 922

Apricots, Marketing agreements, Reporting and recordkeeping

requirements.

7 CFR Part 923

Cherries, Marketing agreements, Reporting and recordkeeping

requirements.

7 CFR Part 924

Plums, Prunes, Marketing agreements, Reporting and recordkeeping

requirements.

For the reasons set forth in the preamble, 7 CFR part 922 is

amended as follows:

PART 922--APRICOTS GROWN IN DESIGNATED COUNTIES IN WASHINGTON

PART 923--SWEET CHERRIES GROWN IN DESIGNATED COUNTIES IN WASHINGTON

PART 924--FRESH PRUNES GROWN IN DESIGNATED COUNTIES IN WASHINGTON

AND IN UMATILLA COUNTY, OREGON

Accordingly, the interim final rule amending 7 CFR parts 922, 923,

and 924 which was published at 61 FR 40954 on August 7, 1996, is

adopted as a final rule without change.

Dated: September 19, 1996.

Robert C. Keeney,

Director, Fruit and Vegetable Division.

[FR Doc. 96-24504 Filed 9-24-96; 8:45 am]

BILLING CODE 3410-02-P