Tart Cherries Grown in the States of Michigan, New York, Pennsylvania, Oregon, Utah, Washington, and Wisconsin; Assessment Rate and Establishment of Late Payment and Interest Charges on Delinquent Assessments

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 930

[Docket No. FV97-930-1 IFR]

Tart Cherries Grown in the States of Michigan, New York,

Pennsylvania, Oregon, Utah, Washington, and Wisconsin; Assessment Rate

and Establishment of Late Payment and Interest Charges on Delinquent

Assessments

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

1997-98 and subsequent fiscal periods to cover expenses incurred by the

Cherry Industry Administrative Board (Board) under Marketing Order No.

930. This rule also establishes an interest rate and late payment

charge on delinquent assessments owed by handlers under the tart cherry

marketing order. The Board is responsible for local administration of

the marketing order. Authorization to assess tart cherry handlers will

enable the Board to incur expenses that are reasonable and necessary to

administer the program. The interest rate and late payment charges will

contribute to the efficient operation of the program by ensuring

adequate funds are available to cover budgeted expenses incurred under

the marketing order. The 1997-98 fiscal period covers the period July

1, through June 30.

DATES: Effective on October 24, 1997. Comments received by December 22,

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, room 2525-S, P.O. Box

96456, Washington, DC 20090-6456; Fax: (202) 720-5698. All comments

should reference the docket number and the date and page number of this

issue of the Federal Register and will be made available for public

inspection in the Office of the Docket Clerk during regular business

hours.

FOR FURTHER INFORMATION CONTACT: Patricia A. Petrella, Marketing

Specialist, and Kenneth G. Johnson, Regional Manager, DC Marketing

Field Office, 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. 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 and Order No. 930 (7 CFR part 930), regulating the handling

of tart cherries grown in the States of Michigan, New York,

Pennsylvania, Oregon, Utah, Washington, and Wisconsin, hereinafter

referred to as the ``order.'' The marketing agreement and order 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 order now in effect, tart cherry

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 tart cherries

beginning July 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.

The tart cherry marketing order in section 930.31 provides that one

of the duties of the Board is to submit to the Secretary a budget for

each fiscal period, prior to the beginning of such period, including a

report explaining the items appearing therein and a recommendation as

to the rates of assessments for such period. The recommendations

concerning the proposed assessment rate are discussed in a public

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

participate and provide input.

At its meeting on January 8 and 9, 1997, the Board unanimously

recommended expenditures of $650,000, and an assessment rate of $0.0025

per pound of tart cherries handled during the 1997-1998 crop year and

subsequent crop years. The recommended expenditure figure covers

expenses for the 1997-98 fiscal period, as well as expenses incurred in

connection with the start-up of the program beginning on January 1,

1997, when the first public meeting of the newly formed Board took

place. The tart cherry marketing order became effective on September

25, 1996. The Department has approved the Board's 1997-98 budget of

expenses. Until assessment income is available, the Board may obtain

funds through a lending institution to fund Board operations.

[[Page 55147]]

The Board will begin to assess handlers as soon as possible after

the effective date of this interim final rule, and all assessments will

be due to the Board office by November 30, 1997, for this season only.

Future assessment payments will be due to the Board office by October

1. Major expenditures recommended by the Board for the 1997-98 fiscal

period, ending June 30, 1998, and expenditures for the prior six

months, are $25,000 for interest, $175,000 for Board meeting expenses,

$150,000 for salaries, $100,000 for administration, and $200,000 for

compliance. For the six month period from January 1, 1997, through June

30, 1997, the expenses were $59,000.

The assessment rate recommended by the Board was derived by

dividing anticipated expenses by expected shipments of tart cherries.

Tart cherry shipments for the 1997-98 crop year were estimated at 260

million pounds and were projected to provide $650,000 in assessment

income which, along with interest income, should have been adequate to

cover budgeted expenses. At this time, actual production figures are

available. Crop production for the 1997-98 season is now projected at

278,989,653 pounds. Assessment income, based on this crop, will be

adequate to cover this year's expenses, even with the reduced

assessment rate for juice, juice concentrate and puree. Funds in any

reserve will be kept within the current approximately one year's

operational expenses permitted by the order.

This interim final rule establishes an interest rate of 12 percent

per annum and a late payment charge equal to 10 percent of the unpaid

balance of the assessment amount due. The interest rate will be applied

to any assessment not paid within 30 days of the October 1 due date.

However, the October 1 date will be extended to November 30, 1997, for

the 1997-98 crop year only. The late payment fee on the unpaid

assessment balance by a handler will be assessed 90 days after the

October 31 due date for this season and October 1 for future seasons.

Section 930.41(a) of the marketing order provides for the payment

by handlers of a pro-rata share of the cost of administering the

program under the order. The payment is in the form of a uniform

assessment rate applied to each handler's cherry acquisitions. In

addition, section 930.41(f) provides that assessments will be

calculated on the basis of pounds handled provided that the formula

adopted by the Board and approved by the Secretary for determining the

rate of assessment will compensate for differences in the number of

pounds of cherries utilized for various cherry products and the

relative market values of such cherry products.

Section 930.41 also provides that if a handler does not pay an

assessment within the time prescribed by the Board, the assessment may

be subject to an interest or late payment charge, or both.

A new section 930.141, specifies that assessments be subject to an

interest charge of 1 percent per month on any unpaid assessment balance

beginning 30 days from the due date prescribed by the Board. The Board

requires that all assessments be paid by October 1 of each crop year.

However, assessments will be due on November 30, 1997, for the 1997-98

season only. The October 1 date specified herein will apply to all

future seasons.

Assessments are the main source of funds to pay Board expenses. The

failure of handlers to pay assessment obligations promptly results in

added expense and operational problems for the Board. Authority was

placed in the order to levy interest and late payment charges on

delinquent assessments. The interest rate and late payment charges in

this interim final rule are similar to those established under other

marketing orders. To attempt to collect delinquent assessments, the

Board will incur the added expense of sending out additional invoices

and contacting each delinquent handler by phone, in person, or by fax.

Nonpayment or late payment of assessments hampers the operation of the

Board.

Handlers will have ample time to pay their assessments and avoid

incurring the additional charges. Any amount paid by the handler will

be credited upon receipt in the Board office.

Interest and late payment charges will provide incentive for

handlers to remit assessments in a timely manner, with the intent of

creating a fair and equitable process among all industry handlers. It

will not impose any costs on handlers who pay their assessments on

time, and will contribute to the efficient administration of the

program.

In its deliberations, the Board discussed lower rates when

recommending the interest rate and late payment charge but decided that

prompt payment of assessments by handlers was crucial to the operation

of the program. Therefore, the Board recommended an interest rate and

late payment charge deemed to be sufficient to serve as an incentive to

handlers to be prompt with their payment of assessments.

A proposed rule concerning this action was issued by the Department

on June 27, 1997, and published in the Federal Register on Thursday,

July 3, 1997 (62 FR 36020). The rule was made available through the

Internet by the Office of the Federal Register. A 30-day comment

period, which ended on August 4, 1997, was provided to allow interested

persons to respond to the proposal.

Two comments were received during the comment period in response to

the proposal. The commenters, representing a tart cherry grower--

handler, and an industry organization, opposed the proposed rule.

The first commenter urged the Department to reject the proposed

rule because the commenter is concerned that the Board may be

improperly constituted at this time and unable to administer any

program under 7 CFR part 930 in a legitimate manner. The commenter

stated that some of the Board members' participation in certain sales

constituencies, should be addressed. The commenter further stated that

no decision recommended to the Secretary by the Board should be

finalized or be allowed to be imposed upon the industry in an interim

final fashion.

The Board was properly nominated in accordance with Department

procedures, and selected on December 20, 1996. The Board recommended an

assessment rate and late payment and interest charge at its January

1997 meeting. At that time, one of the sales constituencies in question

had not yet been established. Concerns which have been raised about the

constituency and questions about the eligibility of certain members to

serve on the Board are currently under review by the Department.

The second commenter raised eight issues in his comment. First, the

commenter stated that the public and the industry cannot respond

effectively to the proposed assessment without knowing how the money

will be used, and that it is impossible to determine, for example,

whether the money will be spent in conformity with the marketing order.

The commenter also stated that the fact that the proposed assessment

rate is formulated and discussed at a public meeting and that affected

persons have an opportunity to participate and provide input is

irrelevant.

The proposed rule contained a description of the major expenditures

recommended by the Board which is repeated here. The Board's

recommendation regarding such expenditures are subject to approval by

the Department. Furthermore, the Department has oversight

responsibility over marketing order committees to ensure that marketing

order funds,

[[Page 55148]]

collected through handler assessments, are spent in accordance with

order provisions. The public is provided the opportunity to comment on

whether the assessment rate is at an appropriate level to fund the

activities of the Board. In addition, since all meetings are opened to

the public, interested persons can raise concerns and such concerns can

be discussed in an open forum. This allows another opportunity for

public input in this rulemaking procedure.

Second, while recognizing that the assessment is subject to legal

challenge and judicial review, it is the commenters view that, under

the regulations, handlers should receive a refund if their challenge is

successful. The commenter asked that the proposal be modified to

provide for such refund and to ban interest and late payments (which

the commenter called a ``tax'') while a good faith legal challenge is

pending.

The Act provides that handlers regulated by marketing orders pay

their pro-rata share of expenses, as the Secretary may find are

reasonable and likely to be incurred during a specified period for the

maintaining and functioning of the marketing order. It does not impose

any requirements concerning refunds. Furthermore, late charges and

interest payments are not a tax and are common in many of USDA's

commodity programs.

Commenter's third point in opposition to the rule was that it

cannot be made retroactive to cherries already received by handlers.

The assessments imposed by the rule are consistent with provisions of

the order which provide for the payment of assessments on cherries

handled during a specified fiscal period to cover costs of

administering the program. The order further provides that, in the

event it is found that an increase in the assessment rate is needed to

cover expenses, such increase would apply to all cherries handled

during the period. Therefore, retroactivity is not at issue in this

rulemaking.

The fourth issue raised by the commenter stated that the Department

has not published sufficient rules and regulations designed to

implement this new marketing order. Therefore, the industry cannot

judge whether or not the program is being administered in accordance

with the order so that it should be supported with assessments. It was

also the commenter's view that there was ample time to develop

regulations through notice and comment rulemaking and therefore interim

final rules should not be used.

The Board has worked diligently in discussing and formulating rules

and regulations to implement authorities under this new marketing

order. It met January, February, March, June and September of 1997, and

recommended rulemaking actions at various meetings. However, since this

is a new program, these recommendations needed to be discussed at more

than one meeting, and in some instances, modified. Therefore, there was

not as much time as the commenter suggests to develop and publish the

various rules necessary to administer the program.

The fifth issue raised by the commenter concerns the make-up of the

Board. The commenter states that most Board members have become

disqualified because of their membership in two cooperatives, and that

no corrective action has been taken to resolve this matter.

The Department is aware of this issue and it is currently under

review. As soon as such review is completed, the Department will take

any action which is deemed necessary.

The sixth issue raised by the commenter stated that the proposal

provides for assessments that will continue from season to season. The

commenter stated that this is improper especially since this is a new

program. The industry may not wish to fund succeeding years' budgets at

this level, especially if volume controls are not used, or may wish to

delete certain budget items in their entirety.

As previously stated in the proposed rule, this assessment rate

established by this interim final rule will continue in effect until

the Board recommends a change to the assessment rate or the Department

sees a need for such a change. If volume regulations are not

implemented during a crop year, the Board would be asked to consider

the impact of that on its budget and whether a decrease in the

assessment rate is warranted. The Department would then issue a

proposed rule recommending establishment of a new assessment rate for

the tart cherry industry.

Seventh, the commenter stated that the proposal improperly assumes

that the Secretary will impose volume control, and includes at least

$200,000 to fund such program. No such decision has been made. The

commenter further states that no proposed rule regarding volume

regulation has ever been placed in the Federal Register. The commenter

asserted that the proposed assessment should be reduced to reflect the

lack of any volume control during the 1997-98 season.

The Board formulated its budget in January 1997 and allocated funds

for compliance if volume regulation were recommended and imposed. In

the absence of volume control, appropriate adjustments can be made to

the budget.

Finally, the commenter stated that the 12 percent interest rate and

10 percent late payment penalty are excessive and unreasonable. At

most, the interest charged should not exceed the marginal rate charged

to the Board for any actual borrowings needed to meet current needs.

The commenter further stated that the final rule should include a grace

period for handlers who are in good faith experiencing financial

difficulty. In addition, handlers should not have to pay assessments

until cherries are sold.

As previously stated, the Board reviewed the interest rate and late

payment charge and decided that it had to be large enough to be a

penalty and to encourage handlers to pay their assessments on time. The

rates established are similar to those established under other

marketing orders. Handlers will have until October 1 to pay their

assessments which is adequate time for handlers to plan for such

payment. Since handlers are assessed uniformly, the due date should be

uniform across the industry. The Board cannot wait for payment of

assessments while handlers are selling their cherries at various times.

Accordingly, no changes will be made to the proposed rule, based on

the comments received. However, the Department is issuing this interim

final rule to provide an additional opportunity for the public to

comment on the modification discussed below.

The order provides that when an assessment rate based on the number

of pounds of cherries handled is established it should provide for

differences in relative market values for various cherry products. The

discussion of this provision in the order promulgation record indicates

that proponents testified that high value products such as frozen,

canned, or dried cherries would be assessed one rate while cherries

used to make low value products such as juice, juice concentrate or

puree would be assessed at one half that rate. Since the $0.0025/pound

assessment proposed by the Board does not reflect such differences in

product value, the rule, as previously proposed, will be modified and

the $0.0025/pound assessment rate will be applicable to cherries used

in products other than juice, juice concentrate, or puree. The USDA is

modifying this action to reflect the intent of the order by setting a

rate of $0.0125 per pound for cherries used in juice, juice concentrate

or puree. This rate is based on the evidence presented by the

proponents of the order. Interested persons will have the opportunity

to

[[Page 55149]]

comment on this modified rule. If it is determined the assessment rates

do not generate sufficient funds to cover expenses, the order

authorizes the Secretary to increase the rate any time during or after

the fiscal period. The Department and the Board will continue to study

this matter to see if any other products should have different

assessment rates.

Data from the National Agricultural Statistics Service (NASS)

states that for 1996, utilization for juice, wine or brined uses was

8.0 million pounds for all districts covered under the marketing order.

The total processed amount for tart cherries for the 1996 crop year was

256.1 million pounds. Juice, wine, or brined represents about 3 percent

of the total processed crop. Data for this season is not available at

this time. However, based on the data from the previous season, it

seems that juice, juice concentrate and puree is a very small

percentage of the crop. Therefore, the modification discussed above

should have an insignificant effect on the monies collected for

assessments this season. As previously discussed the Board could

recommend an increase in the assessment rate if such rate does not

generate the funds needed for this season.

Pursuant to requirements set forth in the Regulatory Flexibility

Act (RFA), the Agricultural Marketing Service (AMS) has considered the

economic impact of this action on small entities. Accordingly, AMS has

prepared this regulatory flexibility analysis.

The purpose of the RFA is to fit regulatory actions to the scale of

business subject to such actions in order that the 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 1,220 producers of tart cherries in the

production area and approximately 40 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 tart cherry producers and handlers may be

classified as small entities.

This rule establishes an assessment rate for the 1997-98 and

subsequent fiscal periods to cover expenses of the Board at $0.0025 per

pound of tart cherries used in the production of tart cherry products

other than juice, juice concentrate and puree, and $0.0125 per pound

for juice, juice concentrate and puree. The Board unanimously

recommended expenditures of $650,000 for expenses incurred during the

1997-98 fiscal period as well as for those incurred during the start-up

period beginning January 1, 1997. From January 1, 1997, through June

30, 1997, the expenses for this six month period was $59,000. The

expenses for the 1997-98 fiscal period are projected at $591,000. Tart

cherry shipments for the year were estimated at 260 million pounds,

which would have provided $650,000 in assessment income (260,000,000

pounds at $0.0025 per pound) and would have been adequate to cover this

year's expenses. At this time, actual production figures are available.

Crop production for the 1997-98 season is 278,989,653 pounds, which,

even with the reduced assessment rate for juice, juice concentrate, and

puree, will provide adequate assessment income to cover this year's

expenses. Funds in any reserve will be kept within the maximum

permitted under the order.

The Board discussed alternatives when recommending the interest

rate and late payment charge. The Board discussed lower rates, but

decided that prompt payment of assessments by handlers is crucial to

the operation of the program. Therefore, the Board recommended an

interest rate and late payment charge deemed to be sufficient to serve

as an incentive to handlers to be prompt with their payment of

assessments.

Major expenditures recommended for the 18-month period ending in

June 30, 1998, include $25,000 for interest, $175,000 for Board meeting

expenses, $150,000 for salaries, $200,000 for program compliance. The

$200,000 for compliance was deemed necessary in the event volume

control regulations are implemented during the 1997-98 season. The

Board discussed setting an assessment rate that would allow for

sufficient operation of a volume control program for the upcoming

season. With regards to alternatives, this rate may be adjusted by the

Secretary, if necessary. Accordingly, the Department believes that

since the assessments are necessary to make funds available to cover

the initial costs of implementing the new order, including operation of

a volume control program for the upcoming season, if implemented, the

assessment rate will be as recommended by the Board, and modified by

the Department.

This action will not impose any additional reporting or

recordkeeping on either small or large tart cherry handlers. As with

all Federal marketing order programs, reports and forms are

periodically reviewed to reduce information requirements and

duplication by industry and public sector agencies. The new forms for

the operation of the order have been approved by the Office of

Management and Budget (OMB) and have been assigned OMB No. 0581-0177.

The interest and late payment charges were also discussed at a

public meeting. The Board believes the interest charge is a reasonable

rate. The late payment fee is high enough to discourage late payments

and encourage the timely payment of assessments by handlers.

This interim final rule provides incentive for handlers to remit

assessments in a timely manner, with the intent of creating a fair and

equitable process among all industry handlers. It will not impose any

costs on handlers who pay their assessments on time, and will

contribute to the efficient administration of the program.

Handlers who do not pay their assessments on time will be able to

reap the benefits of Board programs at the expense of others. In

addition, they will be able to utilize funds for their own use that

will otherwise be paid to the Board to finance Board programs. In

effect, this will provide handlers with an interest free loan.

Implementing interest and late payment charges will provide an

incentive for handlers to pay assessments on time, which will improve

compliance with the order. It will minimize actions taken against

handlers who fail to pay assessments on time through administrative

remedies or the Federal courts. These remedies, currently the only

recourse against handlers who fail to pay assessments, can be costly

and time consuming. This interim final rule will remove any economic

advantage gained by those handlers who do not pay on time, thus helping

to ensure a program that is equitable to all. This is also consistent

with standard business practices.

While this interim final 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.

This interim final rule will not impose any additional reporting or

recordkeeping requirements on either small or large tart cherry

handlers. As

[[Page 55150]]

with all Federal marketing order programs, reports and forms are

periodically reviewed to reduce information requirements and

duplication by industry and public sector agencies. The Department has

not identified any relevant Federal rules that duplicate, overlap, or

conflict with this final rule. In addition, the Board's meeting was

widely publicized throughout the tart cherry industry and all

interested persons were invited to attend the meeting and participate

in Board deliberations on all issues. Like all Board meetings, the

January 8 and 9, 1997, meeting was a public meeting and all entities,

both large and small, were able to express views on these issues.

Finally, interested persons were invited to submit information on the

regulatory and informational impacts of this final rule on small

businesses, and none were received.

The assessment rate, interest rate and late payment charge

established in this interim final rule will continue in effect

indefinitely unless modified, suspended, or terminated by the Secretary

upon recommendation and information submitted by the Board or other

available information.

Although the assessment rate, interest rate and late payment charge

will be effective for an indefinite period, the Board 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 and interest rates and late payment charge. The dates and

times of Board meetings are available from the Board or the Department.

Board meetings are open to the public and interested persons may

express their views at these meetings. The Department will evaluate

Board recommendations and other available information to determine

whether modification of the assessment or interest rates or late

payment charge is needed. Further rulemaking would be undertaken as

necessary. The Board's 1997-98 budget has already been approved by the

Department to allow the Board to expend funds that they have borrowed.

Budgets for subsequent fiscal periods will be reviewed and, as

appropriate, approved by the Department.

The Department has not identified any relevant Federal rules that

duplicate, overlap, or conflict with this rule.

A proposed rule concerning parts of this action was issued by the

Department on June 27, 1997, and published in the Federal Register on

July 3, 1997 (62 FR 36020). Copies of the proposed rule were also

mailed or sent via facsimile to all tart cherry handlers. Finally, the

proposal was made available through the Internet by the Office of the

Federal Register.

After consideration of all relevant material presented, including

the information and recommendation submitted by the Board 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.

This interim final rule invites comments on an assessment rate and

establishment of late payment and interest charges on delinquent

assessments. Any comments received will be considered prior to

finalization of this rule.

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) Handlers have received and are still receiving 1997-98

crop cherries from growers, the fiscal period began July 1, and the

assessment rate applies to all cherries received during the 1997-98 and

subsequent fiscal periods; (2) the Board has been operating using

borrowed funds and needs revenue to repay such funds and to continue

administering the program; and (3) handlers are aware of this rule,

which was recommended at a public meeting.

List of Subjects in 7 CFR Part 930

Marketing agreements, Reporting and recordkeeping requirements,

Tart cherries.

For the reasons set forth in the preamble, 7 CFR Part 930 is

amended as follows:

PART 930--TART CHERRIES GROWN IN THE STATES OF MICHIGAN, NEW YORK,

PENNSYLVANIA, OREGON, UTAH, WASHINGTON, AND WISCONSIN

1. The authority citation for 7 CFR Part 930 continues to read as

follows:

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

2. A new subpart--Administrative Rules and Regulations and a new

section 930.141 are added to read as follows:

Subpart--Administrative Rules and Regulations

Sec. 930.141 Delinquent assessments.

(a) Pursuant to Sec. 930.41, the Board shall impose an interest

charge on any handler whose assessment payment has not been received

within 30 days from the due date of October 1 of each crop year. The

interest rate shall be a rate of one percent per month and shall be

applied to the unpaid assessment balance for the number of days all or

any part of the unpaid balance is delinquent beyond the 30-day payment

period. In addition to the interest charge, the Board shall impose a

late payment charge on any handler whose payment charge has not been

received within 90 days from the due date of October 1. The late

payment charge shall be 10 percent of the unpaid balance.

(b) Due date for the 1997-98 fiscal period. For the 1997-98 fiscal

period, the due date for assessments shall be November 30, 1997. Any

interest charge for late assessment payments shall be accrued 30 days

after the November 30 due date and any late fee shall be accrued 90

days after the November 30 due date.

3. A new subpart--assessment rates and a new section 930.200 are

added to read as follows:

Subpart--Assessment Rates

Sec. 930.200 Handler assessment rate.

On and after the effective date of this rule, the assessment rate

imposed on handlers shall be $0.0025 per pound of cherries handled for

tart cherries grown in the production area and utilized in the

production of tart cherry products other than juice, juice concentrate,

or puree. The assessment rate for juice, juice concentrate, and puree

products shall be $0.0125 per pound.

Dated: October 17, 1997.

Robert C. Keeney,

Deputy Administrator, Fruit and Vegetable Programs.

[FR Doc. 97-28130 Filed 10-20-97; 2:01 pm]

BILLING CODE 3410-02-P