Olives Grown In California; Assessment Rate

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 932

[Docket No. FV96-932-4 FIR]

Olives Grown In California; Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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

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

establishing 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

[[Page 11315]]

enables the Committee to incur expenses that are reasonable and

necessary to administer the program.

EFFECTIVE DATE: January 1, 1997.

FOR FURTHER INFORMATION CONTACT: Mary Kate Nelson, Marketing

Specialist, 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.

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 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.

An interim final rule regarding this action was published in the

January 17, 1997, issue of the Federal Register (62 FR 2549). That rule

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

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 reduces 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.

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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 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)

an interim final rule was published on this action and provided a 30-

day comment period, no comments were received.

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

Accordingly, the interim final rule amending 7 CFR part 932 which

was published at 62 FR 2549 on January 17, 1997, is adopted as a final

rule without change.

Dated: March 4, 1997.

Robert C. Keeney,

Director, Fruit and Vegetable Division.

[FR Doc. 97-6203 Filed 3-11-97; 8:45 am]

BILLING CODE 3410-02-P