Olives Grown In California; Assessment Rate

DEPARTMENT OF AGRICULTURE

7 CFR Part 932

[Docket No. FV96-932-4 IFR]

Olives Grown In California; 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

California Olive Committee (Committee) under Marketing Order No. 932

for the 1997 fiscal year and subsequent fiscal years. The Committee is

responsible for local administration of the marketing order which

regulates the handling of olives grown in California. Authorization to

assess olive handlers enables the Committee to incur expenses that are

reasonable and necessary to administer the program.

DATES: Effective on January 1, 1997. Comments received by February 18,

1997, 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

2525-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: Mary Kate Nelson, Marketing Assistant,

California Marketing Field Office, Fruit and Vegetable Division, AMS,

USDA, 2202 Monterey Street, suite 102B, Fresno, California 93721,

telephone (209) 487-5901, FAX (209) 487-5906, or Tershirra Yeager,

Program Assistant, Marketing Order Administration Branch, Fruit and

Vegetable Division, AMS, USDA, P.O. Box 96456, room 2525-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 2525-S,

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

5698.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing

Agreement No. 148 and Order No. 932, both as amended (7 CFR part 932),

regulating the handling of olives grown in California, hereinafter

referred to as the ``order.'' The 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, California

olive 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

olives beginning January 1, 1997, 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. Interested persons are invited to

submit information on the regulatory and informational impacts of this

action on small businesses.

There are approximately 1,200 producers of olives in the production

area and approximately 4 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. None

of the olive handlers may be classified as small entities, while the

majority of olive producers may be classified as small entities.

The olive 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 and handlers of

California olives. 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 December 11, 1996, and recommended 1997

expenditures of $2,159,265 and an assessment rate of $14.99 per ton

covering olives from the appropriate crop year. The vote on the

assessment rate was 13 in favor and 1 opposed, with the opposing grower

maintaining that the assessment is not sufficient for the industry's

needs. In comparison, last year's budgeted expenditures were

$2,600,785. The assessment rate of $14.99 is $13.27 lower than last

year's established rate. Major expenditures recommended by the

Committee for the 1997 fiscal year include $390,890 for

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administration, $173,375 for research, and $1,595,000 for market

development. Budgeted expenses for these items in 1996 were $388,350,

$213,000, and $1,999,435 respectively.

The order requires that the assessment rate for a particular fiscal

year apply to all assessable olives handled during the appropriate crop

year, which for this season is August 1, 1996, through July 31, 1997.

The assessment rate recommended by the Committee was derived by

dividing anticipated expenses by actual receipts of olives by handlers

during the crop year. Because that rate is applied to actual receipts,

it must be established at a rate which will produce sufficient income

to pay the Committee's expected expenses.

The recommended budget and rate of assessment is usually acted upon

by the Committee after the crop year begins and before the fiscal year

starts, and expenses are incurred on a continuous basis. Therefore, the

budget and assessment rate approval must be expedited so that the

Committee will have funds to pay its expenses. The olive receipts for

the year are 144,075 tons which should provide $2,159,684 in assessment

income. Income derived from handler assessments will be adequate to

cover budgeted expenses. Funds in the reserve will be kept within the

maximum permitted by the order.

This action will reduce the assessment obligation imposed on

handlers. The assessments will be uniform for all handlers. The

assessment costs will be offset by the benefits derived from 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 year 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

1997 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 1997

fiscal year began on January 1, 1997, and the marketing order requires

that the rate of assessment for each fiscal year apply to all

assessable olives handled during the appropriate crop year; (3)

handlers are aware of this action which was 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 932

Marketing agreements, Olives, Reporting and recordkeeping

requirements.

For the reasons set forth in the preamble, 7 CFR part 932 is

amended as follows:

PART 932--OLIVES GROWN IN CALIFORNIA

1. The authority citation for 7 CFR part 932 continues to read as

follows:

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

2. A new subpart--Assessment Rates and a new Sec. 932.230 are added

to read as follows:

Note: This section will appear in the Code of Federal

Regulations.

Subpart--Assessment Rates

Sec. 932.230 Assessment rate.

On and after January 1, 1997, an assessment rate of $14.99 per ton

is established for assessable olives grown in California.

Dated: January 10, 1997.

Robert C. Keeney,

Director, Fruit and Vegetable Division.

[FR Doc. 97-1161 Filed 1-16-97; 8:45 am]

BILLING CODE 3410-02-P