This section of the FEDERAL REGISTER

contains regulatory documents having general

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Rules and Regulations Federal Register

5905

Vol. 69, No. 26

Monday, February 9, 2004

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 932

[Docket No. FV04–932–1 IFR] 

Olives Grown in California; Decreased 

Assessment Rate

AGENCY: Agricultural Marketing Service, 

USDA.

ACTION: Interim final rule with request 

for comments. 

SUMMARY: This rule decreases the 

assessment rate established for the 

California Olive Committee (committee) 

for the 2004 and subsequent fiscal years 

from $13.89 to $12.18 per ton of 

assessable olives handled. The 

committee locally administers the 

marketing order regulating 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 and ends December 31. 

The assessment rate would remain in 

effect indefinitely unless modified, 

suspended, or terminated.

EFFECTIVE DATE: February 10, 2004; 

comments received by April 9, 2004, 

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. 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, or 

can be viewed at: http//

www.ams.usda.gov/fv/moab.html.

FOR FURTHER INFORMATION CONTACT:

Terry Vawter, 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 be applicable to all 

assessable olives beginning on January 

1, 2004, 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 2004 and subsequent fiscal years 

from $13.89 per ton of assessable olives 

to $12.18 per ton of assessable 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 budget 

and assessment rate is deliberated and 

formulated in a public meeting, and the 

expenditures are deliberated in various 

public subcommittee meetings prior to 

the committee meeting. Thus, all 

directly affected persons have an 

opportunity to participate and provide 

input. 

Prior to this rule, the committee 

recommended, and USDA approved, an 

assessment rate that continued in effect 

until 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, 

2003, and unanimously recommended 

fiscal year 2004 expenditures of 

$1,269,063 and an assessment rate of 

$12.18 per ton of olives. In comparison, 

last year’s budgeted expenditures were 

$1,230,590. The assessment rate of 

$12.18 is $1.71 lower than the $13.89 

rate in place for the 2003 fiscal year. 

5906 Federal Register / Vol. 69, No. 26 / Monday, February 9, 2004 / Rules and Regulations 

The committee recommended 

expenditures for the 2004 fiscal year, 

including $633,500 for marketing 

development, $360,563 for 

administration, and $225,000 for 

research. The committee also 

recommended a fiscal year 2004 

expenditure of $50,000 for the 

development of an enhanced flavor 

standards program. 

For the 2003 fiscal year, budgeted 

expenses for these items were $633,500 

for marketing development, $347,090 

for administration, and $250,000 for 

research. There were no budgeted 

expenditures for the development of 

flavor standards and flavor-standards 

inspection training for the 2003 fiscal 

year. 

The California Agricultural Statistics 

Service (CASS) reported olive receipts 

for the 2003–04 crop year at 102,703 

tons, which compares to 89,006 for the 

2002–03 crop year. The increase in the 

crop size for the 2003–04 crop year, due 

in large part to the alternate-bearing 

characteristics of olives, has made it 

possible for the committee to 

recommend the $1.71 per ton decrease 

from the current $13.89 per assessable 

ton rate to $12.18 per assessable ton. 

The assessment rate recommended by 

the committee was derived by 

considering anticipated expenses, actual 

olive tonnage received by handlers, and 

additional pertinent factors. 

Income derived from handler 

assessments, interest, and utilization of 

reserve funds will be adequate to cover 

budgeted expenses. Funds in the reserve 

will be kept within the maximum of 

approximately one fiscal period’s 

expenses as required by § 932.40 of the 

marketing order. 

The assessable tonnage for the 2004 

fiscal year is expected to be less than the 

receipts of 102,703 tons reported by 

CASS, because handlers may divert 

some olives for uses that are exempt 

from marketing order requirements.

The assessment rate continues 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 in 

effect for an indefinite period, the 

committee would 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 and subcommittee 

meetings are open to the public and 

interested persons may express their 

views at these meetings. USDA would 

evaluate committee recommendations 

and other available information to 

determine whether modification of the 

assessment rate is needed. Further 

rulemaking would be undertaken as 

necessary. The committee’s 2004 budget 

and those for subsequent fiscal years 

would 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 to 

ensure 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 3 handlers subject to regulation 

under the marketing order. The Small 

Business Administration (13 CFR 

121.601) defines small agricultural 

producers as those with annual receipts 

less than $750,000, and small 

agricultural service firms as those with 

annual receipts less than $5,000,000. 

Based upon information from the 

committee, the majority of olive 

producers may be classified as small 

entities, but not all of the handlers may 

be classified as small entities. 

This rule decreases the assessment 

rate established for the committee and 

collected from handlers for the 2004 and 

subsequent fiscal years from $13.89 per 

ton to $12.18 per ton of olives. The 

committee unanimously recommended 

2004 fiscal year expenditures of 

$1,269,063 and an assessment rate of 

$12.18 per ton. The assessment rate of 

$12.18 per ton is $1.71 per ton lower 

than the 2003 rate. 

The quantity of olive receipts for the 

2003–04 crop year was reported by 

CASS to be 102,703 tons, but the actual 

assessable tonnage for the 2003–04 crop 

year is expected to be lower. This is 

because handlers are expected to divert 

some olives to exempt outlets on which 

assessments are not paid. 

The $12.18 per ton assessment rate 

should be adequate to meet this year’s 

expenses when combined with funds 

from the authorized reserve and interest 

income. Funds in the reserve will be 

kept within the maximum of 

approximately one fiscal period’s 

expenses as required by § 932.40 of the 

marketing order. 

Expenditures recommended by the 

committee for the 2004 fiscal year 

include $633,500 for marketing 

development, $360,563 for 

administration, and $225,000 for 

research. The committee also 

recommended a fiscal year 2004 

expenditure of $50,000 for the 

development of an enhanced flavor 

standards program. 

Budgeted expenses for these items in 

the 2003 fiscal year were $633,500 for 

marketing development, $347,090 for 

administration, and $250,000 for 

research. There were no expenditures 

for the development of flavor standards 

and flavor-standards training for 

inspection personnel in the 2003 fiscal 

year.

Olive receipts totaled 102,703 tons for 

the 2003–04 crop year compared to the 

2002–03 crop year’s tonnage of 89,006. 

The committee has increased fiscal year 

2004 expenses, but the increase in olive 

production makes the lower assessment 

rate possible. 

The research expenditures will fund 

studies to develop chemical and 

scientific defenses to counteract a threat 

from the olive fruit fly in the California 

production area. Market development 

expenditures are the same because the 

committee’s marketing program for 

fiscal year 2004 is similar. 

The committee reviewed the budget 

and assessment rate, and unanimously 

recommended fiscal year 2004 

expenditures of $1,269,063, which 

reflect decreased research expenditures 

and increased administrative and flavorstandards expenditures. 

While deliberating this budget, the 

committee considered information from 

various sources, such as the committee’s 

Executive, Research, and Marketing 

Subcommittees. Alternate spending 

levels were discussed by these groups, 

based upon the relative costs and 

benefits to the olive industry of various 

research and marketing projects, the 

total quantity of assessable olives 

received by handlers, and other 

pertinent factors. Such deliberations 

resulted in the recommended 2004 

budget and the assessment rate of 

$12.18 per ton of assessable olives. 

A review of historical industry 

information and preliminary 

information pertaining to the upcoming 

fiscal year indicates that the grower 

price for the 2003–04 crop year will be 

a weighted average of $478 per ton for 

canning size fruit and $254 per ton for 

limited-use size fruit. The weighted 

average is calculated by the committee 

Federal Register / Vol. 69, No. 26 / Monday, February 9, 2004 / Rules and Regulations 5907

staff and takes into account the prices 

per ton offered by each handler for 

various sizes of the major olive varieties 

produced. 

Approximately 85 percent of a ton of 

olives are canning sizes and 10 percent 

are limited-use sizes, leaving the 

balance as cull fruit. Thus, given the 

current anticipated grower prices, the 

average grower price per ton would be 

$431.70. The estimated assessment 

revenue is expected to be approximately 

2.8 percent of the average grower price. 

Total grower revenue on 102,703 tons 

would be $44,336,885. 

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 

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, 2003, meeting was a 

public meeting and all entities, both 

large and small, were able to express 

views on this issue. The subcommittee 

meetings, as well, were public all 

interested parties were encouraged to 

attend and provide comments. Finally, 

interested persons are invited to submit 

information on the regulatory and 

informational impacts of this action on 

small businesses. 

This rule imposes no additional 

reporting or recordkeeping requirements 

on 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. 

This rule invites comments on the 

decreased assessment rate for 2004 and 

subsequent fiscal years under the 

Federal marketing order regulating 

olives grown in California. Any 

comments received will be considered 

prior to finalization of this rule. 

After consideration of all relevant 

material presented, including the 

committee’s recommendation and other 

information, it is found that this interim 

final 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 impractical, 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 2004 fiscal year began 

on January 1, 2004, and the marketing 

order requires that the rate of 

assessment for each fiscal year apply to 

all assessable olives handled during 

applicable the crop year; (2) this action 

decreases the assessment rate and the 

committee needs sufficient funds to pay 

its expenses which are incurred on a 

continuous basis; and (3) this action was 

unanimously recommended by the 

committee at a public meeting attended 

by handlers, and is similar to other 

assessment rate actions issued in past 

years.

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: 

§ 932.230 Assessment rate. 

Beginning on January 1, 2004, an 

assessment rate of $12.18 per ton is 

established for California olives.

Dated: February 3, 2004. 

A.J. Yates, 

Administrator, Agricultural Marketing 

Service.

[FR Doc. 04–2654 Filed 2–6–04; 8:45 am] 

BILLING CODE 3410–02–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. 2001–NM–107–AD; Amendment 

39–13451; AD 2004–03–07] 

RIN 2120–AA64 

Airworthiness Directives; Airbus Model 

A320–111, –211, –212, and –231 Series 

Airplanes

AGENCY: Federal Aviation 

Administration, DOT.

ACTION: Final rule.

SUMMARY: This amendment adopts a 

new airworthiness directive (AD), 

applicable to certain Airbus Model 

A320–111, –211, –212, and –231 series 

airplanes. This AD requires repetitive 

inspections for fatigue cracking around 

the fasteners attaching the pressure 

panel to the flexible bracket at frame 36, 

adjacent to the longitudinal beams on 

the left and right sides of the airplane; 

and repair as necessary. This AD would 

also provide an optional terminating 

action for the repetitive inspections. 

This action is necessary to detect and 

correct fatigue cracking around the 

fasteners attaching the pressure panel to 

the flexible bracket at the frame 36 

adjacent to the longitudinal beams, 

which could result in reduced structural 

integrity and possible rapid 

decompression of the airplane. This 

action is intended to address the 

identified unsafe condition.

DATES: Effective March 15, 2004. 

The incorporation by reference of 

certain publications listed in the 

regulations is approved by the Director 

of the Federal Register as of March 15, 

2004.

ADDRESSES: The service information 

referenced in this AD may be obtained 

from Airbus, 1 Rond Point Maurice 

Bellonte, 31707 Blagnac Cedex, France. 

This information may be examined at 

the Federal Aviation Administration 

(FAA), Transport Airplane Directorate, 

Rules Docket, 1601 Lind Avenue, SW., 

Renton, Washington; or at the Office of 

the Federal Register, 800 North Capitol 

Street, NW., suite 700, Washington, DC.

FOR FURTHER INFORMATION CONTACT: Tim 

Dulin, Aerospace Engineer, 

International Branch, ANM–116, FAA, 

Transport Airplane Directorate, 1601 

Lind Avenue, SW., Renton, Washington 

98055–4056; telephone (425) 227–2141; 

fax (425) 227–1149.

SUPPLEMENTARY INFORMATION: A 

proposal to amend part 39 of the Federal 

Aviation Regulations (14 CFR part 39) to 

include an airworthiness directive (AD)