[Federal Register: October 27, 2000 (Volume 65, Number 209)]
[Rules and Regulations]
[Page 64338-64340]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr27oc00-2]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 920
[Docket No. FV00-920-3 FIR]
Kiwifruit Grown in California; Decreased 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
which decreased the assessment rate established for the Kiwifruit
Administrative Committee (Committee) for the 2000-2001 and subsequent
fiscal periods from $0.05 to $0.03 per 22-pound volume fill container
or equivalent of kiwifruit. The Committee locally administers the
marketing order which regulates the handling of kiwifruit grown in
California. Authorization to assess kiwifruit handlers enables the
Committee to incur expenses that are reasonable and necessary to
administer the program. The fiscal period begins August 1 and ends July
31. The assessment rate will remain in effect indefinitely unless
modified, suspended, or terminated.
EFFECTIVE DATE: November 27, 2000.
FOR FURTHER INFORMATION CONTACT: Rose M. Aguayo, Marketing Specialist,
California Marketing Field Office, Marketing Order Administration
Branch, Fruit and Vegetable Programs, AMS, USDA, 2202 Monterey Street,
Suite 102B, Fresno, California 93721; telephone: (559) 487-5901; Fax:
(559) 487-5906; or George Kelhart, Technical Advisor, Marketing Order
Administration Branch, Fruit and Vegetable Programs, AMS, USDA, room
2525-S, PO Box 96456, Washington, DC 20090-6456; telephone: (202) 720-
2491, Fax: (202) 720-5698.
Small businesses may request information on complying with this
regulation by contacting Jay Guerber, Marketing Order Administration
Branch, Fruit and Vegetable Programs, AMS, USDA, room 2525-S, PO Box
96456, Washington, DC 20090-6456; telephone: (202) 720-2491, Fax: (202)
720-5698, or E-mail: Jay.Guerber@usda.gov.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing Order
No. 920, as amended (7 CFR part 920), regulating the handling of
kiwifruit grown in California, 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, California
kiwifruit 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
kiwifruit beginning August 1, 2000, and continue 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.
This rule continues to decrease the assessment rate established for
the Committee for the 2000-2001 and subsequent fiscal periods from
$0.05 to $0.03 per 22-pound volume fill container or equivalent of
kiwifruit.
The California kiwifruit 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 of California
kiwifruit. They are familiar with the Committee's needs and 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 is normally formulated and discussed in a public
meeting. A public meeting was held on July 11, 2000. Because a
Committee quorum (eight Committee representatives) was not present at
the meeting, the Committee voted on the budget and assessment rate by
telephone on July 13, 2000. Thus, all directly affected persons had an
opportunity to participate and provide input.
For the 1998-1999 and subsequent fiscal periods, the Committee
recommended, and the Department approved, an assessment rate that would
continue in effect from fiscal period to fiscal period unless modified,
suspended, or terminated by the Secretary upon recommendation and
information submitted by the Committee or other information available
to the Secretary.
In the telephone conference call on July 13, 2000, the Committee
unanimously recommended 2000-2001 expenditures of $81,575 and an
assessment rate of $0.03 per 22-pound volume fill container or
equivalent of kiwifruit. In comparison, last year's budgeted
expenditures were $83,800. The assessment rate of $0.03 is $0.02 lower
than the rate previously in effect. The Committee voted to reduce 2000-
2001 budgeted expenditures and the assessment rate to lessen the
financial burden on California kiwifruit handlers.
The following table compares major budget expenditures recommended
by the Committee for the 2000-2001 and 1999-2000 fiscal periods:
------------------------------------------------------------------------
Budget expense categories 2000-2001 1999-2000
------------------------------------------------------------------------
Administrative Staff & Field Salaries............. 52,000 56,000
Travel, Food & Lodging............................ 9,500 7,500
Office Costs...................................... 12,000 14,000
Vehicle Expense................................... 4,000 2,300
Account...........................................
Annual Audit...................................... 4,075 4,000
------------------------------------------------------------------------
The assessment rate recommended by the Committee was derived by
considering the amount of funds in the Committee's operating reserve,
anticipated expenses, and expected shipments of California kiwifruit.
Kiwifruit shipments for the year are estimated at 2,704,545 22-pound
volume fill containers or equivalents of kiwifruit, which should
provide $81,136 in assessment income at an assessment
[[Page 64339]]
rate of $.03 per container, $439 less than the estimated expenses.
Income derived from handler assessments, along with $24,000 carry-in
from the Committee's operating reserve, will be adequate to meet
budgeted expenses and to establish an adequate reserve (estimated to be
$23,561 at the end of the 2000-2001 fiscal period). Reserve funds will
be kept within 1 fiscal period's expenses, the maximum permitted under
Sec. 920.42 of the order.
The assessment rate 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
2000-2001 budget and those for subsequent fiscal periods will be
reviewed and, as appropriate, approved by the Department.
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. Accordingly, AMS has
prepared this final 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 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 400 producers of kiwifruit in the
production area and approximately 56 handlers subject to regulation
under the marketing order. Small agricultural producers are defined by
the Small Business Administration (13 CFR 121.201) 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 56 handlers subject to regulation have annual kiwifruit
sales of at least $5,000,000, excluding receipts from any other
sources. Ten of the 400 producers subject to regulation have annual
sales of at least $500,000; and the remaining 390 producers have sales
less than $500,000, excluding receipts from any other sources. The
majority of California kiwifruit producers and handlers may be
classified as small entities.
This rule continues to decrease the assessment rate established for
the Committee and collected from handlers for the 2000-2001 and
subsequent fiscal periods from $0.05 to $0.03 per 22-pound volume fill
container or equivalent. The Committee unanimously recommended 2000-
2001 expenditures of $81,575 and an assessment rate of $0.03 per 22-
pound volume fill container or equivalent. The assessment rate of $0.03
is $0.02 lower than the previous rate. The quantity of assessable
kiwifruit for the 2000-2001 fiscal period is estimated at 2,704,545 22-
pound volume fill containers or equivalent. Thus, the $0.03 rate should
provide $81,136 in assessment income, $439 less than the estimated
expenses.
The estimated assessments of $81,136 combined with the $24,000 from
the Committee's operation reserve will allow the Committee to meet its
expenses and to establish an adequate reserve (estimated to be $23,561
at the end of the 2000-2001 fiscal period). Reserve funds will be kept
within 1 fiscal period's expenses, the maximum permitted under
Sec. 920.42 of the order.
The following table compares major budget expenditures recommended
by the Committee for the 2000-2001 and 1999-2000 fiscal years:
------------------------------------------------------------------------
Budget expense categories 2000-2001 1999-2000
------------------------------------------------------------------------
Administrative Staff & Field Salaries............. 52,000 56,000
Travel, Food & Lodging............................ 9,500 7,500
Office Costs...................................... 12,000 14,000
Vehicle Expense................................... 4,000 2,300
Account...........................................
Annual Audit...................................... 4,075 4,000
------------------------------------------------------------------------
The Committee reviewed and unanimously recommended 2000-2001
expenditures of $81,575 which includes decreases in administrative
staff and field salaries and office costs. The Committee also
unanimously recommended lowering the assessment rate from $0.05 to
$0.03 to lessen the financial burden on handlers.
Prior to arriving at this budget, the Committee considered
information from various sources, such as the Committee's Finance and
Assessment Subcommittee. These groups discussed alternative expenditure
levels. The subcommittee looked at maintaining the assessment rate at
its current level, but determined that the handler financial burden
should be lessened. The assessment rate of $0.03 per 22-pound volume
fill container or equivalent of assessable kiwifruit was recommended by
the Committee and was derived by considering the funds in the
Committee's operating reserve, anticipated expenses, and expected
shipments of California kiwifruit.
Kiwifruit shipments for the year are estimated at 2,704,545 22-
pound volume fill containers or equivalents of kiwifruit, which should
provide $81,136 in assessment income, $439 less than the estimated
expenses. Income derived from handler assessments, along with the
$24,000 carry-in from the Committee's operating reserve, will be
adequate to meet budgeted expenses and to establish an adequate reserve
(estimated to be $23,561 at the end of the 2000-2001 fiscal period).
Reserve funds will be kept within 1 fiscal period's expenses, the
maximum permitted under Sec. 920.42 of the order.
A review of historical information and preliminary information
pertaining to the upcoming fiscal period indicates that the grower
price for the 2000-2001 season will be approximately $12.32 per 22-
pound volume fill container or equivalent of kiwifruit. Therefore, the
estimated assessment revenue for the 2000-2001 fiscal period as a
percentage of total grower revenue is estimated at 0.2 percent.
This action continues to decrease the assessment obligation imposed
on handlers. Assessments are applied uniformly on all handlers, and
some of the costs may be passed on to producers. However, decreasing
the assessment rate reduces the burden on handlers, and may reduce the
burden on producers.
In addition, the Committee's July 11, 2000, meeting was widely
publicized throughout the California kiwifruit industry and all
interested persons were invited to attend the meeting and participate
in Committee deliberations on all issues. Like all Committee meetings,
the July 11, 2000, meeting was a public meeting and all entities, both
large and small, were able to express views on this issue.
Additionally, all attendees were advised of the conference call to
be conducted on July 13, 2000. Finally, interested persons were invited
to
[[Page 64340]]
submit information on the regulatory and informational impacts of this
action on small businesses.
This action imposes no additional reporting or recordkeeping
requirements on either small or large California kiwifruit 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 Department has not identified any relevant Federal rules that
duplicate, overlap, or conflict with this rule.
An interim final rule concerning this action was published in the
Federal Register on August 14, 2000 (65 FR 49472). Copies of that rule
were also mailed or sent via facsimile to all kiwifruit handlers.
Finally, the interim final rule was made available through the Internet
by the Office of the Federal Register. A 60-day comment period was
provided for interested persons to respond to the interim final rule.
The comment period ended on October 13, 2000. No comments were
received.
A small business guide on complying with fruit, vegetable, and
specialty crop marketing agreements and orders may be viewed at: http:/
/www.ams.usda.gov/fv/moab.html. Any questions about the compliance
guide should be sent to Jay Guerber at the previously mentioned address
in the FOR FURTHER INFORMATION CONTACT section.
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.
List of Subjects in 7 CFR Part 920
Kiwifruit, Marketing agreements.
For the reasons set forth in the preamble, 7 CFR part 920 is
amended as follows:
PART 920--KIWIFRUIT GROWN IN CALIFORNIA
Accordingly, the interim final rule amending 7 CFR part 920 which
was published at 65 FR 49472 on August 14, 2000, is adopted as a final
rule without change.
Dated: October 23, 2000.
Robert C. Keeney,
Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 00-27618 Filed 10-26-00; 8:45 am]
BILLING CODE 3410-02-P
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