[Federal Register: February 6, 2002 (Volume 67, Number 25)]
[Rules and Regulations]
[Page 5438-5440]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr06fe02-2]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 932
[Docket No. FV02-932-1 IFR]
Olives Grown in California; Decreased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim final rule with request for comments.
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SUMMARY: This rule decreases the assessment rate established for the
California Olive Committee (Committee) for the 2002 and subsequent
fiscal years from $27.90 to $10.09 per ton of olives handled. The
Committee locally administers 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. The fiscal year began January
1, 2002, and ends December 31, 2002. The assessment rate will remain in
effect indefinitely unless modified, suspended, or terminated.
DATES: Effective: February 7, 2002. Comments received by April 8, 2002,
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 to the Docket Clerk,
Marketing Order Administration Branch, Fruit and Vegetable Programs,
AMS, USDA, 1400 Independence Avenue, SW STOP 0237, Washington, DC
20250-0237; Fax: (202) 720-8938, or e-mail: moab.docketclerk@usda.gov.
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, or can be viewed at: http://www.ams.usda.gov/fv/
moab.html.
FOR FURTHER INFORMATION CONTACT: Rose 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, 1400
Independence Avenue, SW STOP 0237, Washington, DC 20250-0237;
telephone: (202) 720-2491, Fax: (202) 720-8938.
Small businesses may request information on complying with this
regulation by contacting Jay Guerber, Marketing Order Administration
Branch, Fruit and Vegetable Programs, AMS, USDA, 1400 Independence
Avenue, SW STOP 0237, Washington, DC 20250-0237; telephone: (202) 720-
2491, Fax: (202) 720-8938, or e-mail: Jay.Guerber@usda.gov.
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 (USDA) 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, 2002, 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 USDA 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 USDA 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 USDA'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 decreases the assessment rate established for the
Committee for the 2002 and subsequent fiscal years from $27.90 per ton
to $10.09 per ton of olives.
The California olive marketing order provides authority for the
Committee, with the approval of USDA, 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.
For the 2001 and subsequent fiscal years, the Committee
recommended, and USDA approved, an assessment rate that would continue
in effect from fiscal year to fiscal year unless modified, suspended,
or terminated by USDA upon recommendation and information submitted by
the Committee or other information available to USDA.
The Committee met on December 11, 2001, and unanimously recommended
fiscal year 2002 expenditures of $1,428,585 and an assessment rate of
$10.09 per ton of olives. In comparison, last year's budgeted
expenditures were $1,348,242 and the assessment rate was $27.90. The
assessment rate of $10.09 is
[[Page 5439]]
$17.81 lower than the rate currently in effect.
Expenditures recommended by the Committee for the 2002 fiscal year
include $811,935 for marketing development, $339,650 for
administration, $250,000 for research, and $27,000 for capital
expenditures. Budgeted expenses for these items in 2001 were $596,415,
$343,490, $408,337, and $0, respectively.
Last year's assessable tonnage was 46,374 tons, and this year's
assessable tonnage is 123,439 tons. Although the Committee increased
2002 marketing development and capital expenditures, the significant
increase in assessable tonnage makes possible the lower assessment
rate.
Funds budgeted for research activities are reduced due to
completion of the mechanical harvester project. The reduced research
expenditures will fund scientific studies to develop chemical and
scientific defenses to counteract a potential threat from the olive
fruit fly in the California production area. Market development
expenditures are significantly higher as the Committee's website will
be redesigned and outreach programs will be implemented for students
and teachers. Capital expenditures are higher as the Committee will
purchase a vehicle for Committee staff.
The assessment rate recommended by the Committee was derived by
considering anticipated expenses, actual tonnage, and additional
pertinent factors. As mentioned earlier olive shipments for the year
are estimated at 123,439 for fiscal year 2002. This compares to an
assessable tonnage of 46,374 for fiscal year 2001. The significant
tonnage increase in fiscal year 2002, due in part to the alternate-
bearing nature of olives, has made it possible for the Committee to
decrease the assessment rate from $27.90 to $10.09 per ton. 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--approximately one fiscal periods' expenses, or
$1,428,585 (Sec. 932.40).
The assessment rate established in this rule will continue in
effect indefinitely unless modified, suspended, or terminated by USDA
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 USDA.
Committee meetings are open to the public and interested persons may
express their views at these meetings. USDA 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 2002 budget and those for
subsequent fiscal years will be reviewed and, as appropriate, approved
by USDA.
Initial Regulatory Flexibility Analysis
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 initial 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 1,200 producers of olives in the production
area and approximately 3 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 $750,000, and small agricultural service firms are
defined as those whose annual receipts are less than $5,000,000.
The majority of olive producers may be classified as small
entities. One of the handlers may be classified as a small entity.
Thus, the majority of handlers may be classified as large entities.
This rule decreases the assessment rate established for the
Committee and collected from handlers for the 2002 and subsequent
fiscal years from $27.90 to $10.09 per ton of olives. The Committee
unanimously recommended 2002 expenditures of $1,428,585 and an
assessment rate of $10.09 per ton. The assessment rate of $10.09 is
$17.81 lower than the 2001 rate. The quantity of assessable olives for
the 2002 fiscal year is estimated at 123,439 tons. Thus, the $10.09
rate should provide $1,245,500 in assessment income and should be
adequate, when combined with funds from the authorized reserve and
interest income to meet this year's expenses.
The expenditures recommended by the Committee for the 2002 fiscal
year include $811,935 for marketing development, $339,650 for
administration, $250,000 for research, and $27,000 for capital
expenditures. Budgeted expenses for these items in 2001 were $596,415,
$343,490, $408,337, and $0, respectively.
Last year's assessable tonnage was 46,374 tons, and this year's
assessable tonnage is 123,439 tons. Although the Committee increased
2002 marketing development and capital expenditures, the significant
increase in tonnage makes the lower assessment rate possible.
Funds budgeted for research activities are reduced due to
completion of the mechanical harvester project. The reduced research
expenditures will fund scientific studies to develop chemical and
scientific defenses to counteract a potential threat from the olive
fruit fly in the California production area. Market development
expenditures are significantly higher as the Committee's website will
be redesigned and outreach programs will be implemented for students
and teachers. Capital expenditures are higher as the Committee will
purchase a vehicle for Committee staff.
Prior to arriving at this budget, the Committee considered
information from various sources, such as the Committee's Executive
Subcommittee, and Market Development Subcommittee. Alternative
expenditure levels were discussed by these groups, based upon the
relative value of various research and marketing projects to the olive
industry. The assessment rate of $10.09 per ton of assessable olives
was derived by considering anticipated expenses, the Committee's
estimate of assessable olives, and additional pertinent factors.
A review of historical information and preliminary information
pertaining to the upcoming fiscal year indicates that the grower price
for the 2002 season is estimated to be approximately $502.27 per ton of
olives. Therefore, the estimated assessment revenue for the 2002 fiscal
year as a percentage of total grower revenue will be approximately 2
percent.
This action decreases 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
[[Page 5440]]
the burden on producers. In addition, the Committee's meeting was
widely publicized throughout the California olive industry and all
interested persons were invited to attend the meeting and participate
in Committee deliberations on all issues. Like all Committee meetings,
the December 11, 2001, meeting was a public meeting and all entities,
both large and small, were able to express views on this issue.
Finally, interested persons are invited to 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 olive 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.
USDA has not identified any relevant Federal rules that duplicate,
overlap, or conflict with this rule.
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.
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 2002 fiscal year began on January 1, 2002,
and the marketing order requires that the rate of assessment for each
fiscal year apply to all assessable olives handled during such fiscal
year; (2) the action decreases the assessment rate for assessable
olives beginning with the 2002 fiscal year; (3) handlers are aware of
this action which was unanimously 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 60-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. Section 932.230 is revised to read as follows:
Sec. 932.230 Assessment rate.
On and after January, 1, 2002, an assessment rate of $10.09 per ton
is established for California olives.
Dated: January 31, 2002.
A.J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 02-2847 Filed 2-5-02; 8:45 am]
BILLING CODE 3410-02-P
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