This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents. Prices of

new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

2839

Vol. 65, No. 12

Wednesday, January 19, 2000

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 932

[Docket No. FV00–932–1 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 2000 and subsequent fiscal years

from $26.18 to $21.73 per ton of olives

handled. 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

enables the Committee to incur

expenses that are reasonable and

necessary to administer the program.

The fiscal year begins January 1 and

ends December 31. The assessment rate

will remain in effect indefinitely unless

modified, suspended, or terminated.

DATES: January 20, 2000. Comments

received by March 20, 2000, 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, Fruit and

Vegetable Programs, AMS, USDA, room

2525–S, P.O. Box 96456, Washington,

DC 20090–6456; Fax: (202) 720–5698; 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.

FOR FURTHER INFORMATION CONTACT:

Diane Purvis, Marketing Assistant, and

Rose Aguayo, Marketing Specialist,

California Marketing Field Office, 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, P.O. 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, P.O. Box 96456, room

2525–S, 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 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 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, 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 on January 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 decreases the assessment

rate established for the Committee for

the 2000 and subsequent fiscal years

from $26.18 per ton to $21.73 per ton of

olives.

The California 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.

For the 1999 and subsequent fiscal

years, the Committee recommended,

and the Department approved, an

assessment rate that would continue in

effect from fiscal year to fiscal year

unless modified, suspended, or

terminated by the Secretary upon

recommendation and information

submitted by the Committee or other

information available to the Secretary.

The Committee met on December 9,

1999, and unanimously recommended

fiscal year 2000 expenditures of

$2,472,235 and an assessment rate of

$21.73 per ton of olives. In comparison,

last year’s budgeted expenditures were

$1,845,185. Recommended budget

expenditures for research are

significantly higher this year because of

higher anticipated research expenses.

The higher research budget of $868,550

is needed to fund: (1) Continued

research and development of the

2840 Federal Register / Vol. 65, No. 12 / Wednesday, January 19, 2000 / Rules and Regulations

mechanical olive harvester and (2)

scientific studies to develop chemical or

biological defenses to counteract a

potential threat from the olive fruit fly

in the California production area.

The following table compares major

budget expenditure recommendations

for the 2000 fiscal year with those from

last year.

Budget expenditure 1999 2000

Administration ....... $346,485 $356,190

Research .............. 302,000 868,550

Market Development .................. 1,190,500 1,212,495

The assessment rate recommended by

the Committee was derived by

considering anticipated expenses,

estimated assessable tonnage, and

additional pertinent factors. The

estimate of assessable olives for the

2000 fiscal year is 113,750 tons. This

compares to an assessable tonnage of

67,990 for fiscal year 1999. The increase

in 2000, due in large part to the

alternate-bearing nature of olives, has

allowed the Committee to lower the

assessment rate from $26.18 to $21.73

per ton, a decrease of $4.45. Income

derived from handler assessments,

interest, and carryover of reserve funds

would be adequate to cover budgeted

expenses. Funds in the reserve at the

end of fiscal year 2000 would be less

than the maximum permitted by

§ 932.40 of the order (approximately one

fiscal year’s expenses).

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.

Although this assessment rate will be

in effect 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 2000 budget and those for

subsequent fiscal years 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 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 2 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.

This rule decreases the assessment

rate established for the Committee and

collected from handlers for the 2000 and

subsequent fiscal years from $26.18 per

ton to $21.73 per ton of olives. The

Committee unanimously recommended

fiscal year 2000 expenditures of

$2,472,235 and an assessment rate of

$21.73 per ton. The assessment rate of

$21.73 is $4.45 lower than the 1999 rate.

The estimated quantity of assessable

olives for the 2000 fiscal year is 113,750

tons. Thus, the $21.73 rate should be

adequate to meet this year’s budgeted

expenses, when combined with funds

from the authorized reserve and interest

income.

The following table compares major

budget expenditure recommendations

for the 2000 fiscal year with those from

last year.

Budget expenditure 1999 2000

Administration ....... $346,485 $356,190

Research .............. 302,000 868,550

Market Development .................. 1,190,500 1,212,495

The higher research budget of

$868,550 is needed to fund: (1)

Continued research and development of

the mechanical olive harvester and (2)

scientific studies to develop chemical

and scientific defenses to counteract a

potential threat from the olive fruit fly

in the California production area.

A lower assessment rate is

recommended for 2000 because the

estimated 2000 fiscal year assessable

tonnage is approximately 67 percent

larger than last fiscal year’s tonnage, due

in large part to the alternate bearing

nature of the crop. A comparison of

assessable tonnage for fiscal year 2000

with the two previous fiscal years is

listed below:

1998 1999 2000

85,585 67,990 113,750

The Committee reviewed and

unanimously recommended fiscal year

2000 expenditures of $2,472,235, which

reflects increases in the research, market

development, and administrative

budgets. Prior to arriving at this budget,

the Committee considered information

from various sources, such as the

Committee’s Executive Subcommittee,

the Research Subcommittee, and the

Marketing Subcommittee. Alternate

spending levels were discussed by these

groups, based upon potential reductions

in the funding of various research and

marketing projects. The Committee

determined it was not necessary to

increase the assessment rate to cover

these expenses because the increased

assessable tonnage will provide

sufficient funds to cover anticipated

expenses. The assessment rate of $21.73

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 and preliminary

information pertaining to the upcoming

fiscal year indicates that grower revenue

for the 1999–2000 crop year will

approximate $64,126,725. With an

assessment rate of $21.73 per ton and

assessable tonnage totaling 113,750

tons, the Committee’s assessment

revenue for fiscal year 2000 will be

$2,471,788, or approximately 3.9

percent of grower revenue.

This action decreases the assessment

obligation imposed on handlers for

fiscal year 2000 by $506,187.

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 9, 1999,

Federal Register / Vol. 65, No. 12 / Wednesday, January 19, 2000 / Rules and Regulations 2841

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 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.

The Department 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 the following web site:

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) Fiscal year 2000 begins on

January 1, 2000, 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) this action decreases

the assessment rate for assessable olives

beginning with the 2000 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:

§ 932.230 Assessment rate.

On and after January 1, 2000, an

assessment rate of $21.73 per ton is

established for California olives.

Dated: January 12, 2000.

Robert C. Keeney,

Deputy Administrator, Fruit and Vegetable

Programs.

[FR Doc. 00–1221 Filed 1–18–00; 8:45 am]

BILLING CODE 3410–02–P

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 982

[Docket No. FV00–982–1 IFR]

Hazelnuts Grown in Oregon and

Washington; Establishment of Interim

and Final Free and Restricted

Percentages for the 1999–2000

Marketing Year

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Interim final rule with request

for comments.

SUMMARY: This rule establishes interim

and final free and restricted percentages

for domestic inshell hazelnuts for the

1999–2000 marketing year under the

Federal marketing order for hazelnuts

grown in Oregon and Washington. The

percentages allocate the quantity of

domestically produced hazelnuts which

may be marketed in the domestic inshell

market. The percentages are intended to

stabilize the supply of domestic inshell

hazelnuts to meet the limited domestic

demand for such hazelnuts and provide

reasonable returns to producers. This

rule was recommended unanimously by

the Hazelnut Marketing Board (Board),

which is the agency responsible for

local administration of the order.

DATES: Effective Date: This interim final

rule is effective January 20, 2000.

Applicability Date: This interim final

rule applies during the period July 1,

1999, through June 30, 2000. Comments

received by March 20, 2000 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, Fruit and

Vegetable Programs, AMS, USDA, room

2525–S, P.O. Box 96456, Washington,

DC 20090–6456; Fax: (202) 720–5698, 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 available for public inspection in

the Office of the Docket Clerk during

regular business hours.

FOR FURTHER INFORMATION CONTACT:

Teresa L. Hutchinson, Northwest

Marketing Field Office, Marketing Order

Administration Branch, Fruit and

Vegetable Programs, AMS, USDA, 1220

SW Third Avenue, room 369, Portland,

OR 97204; telephone: (503) 326–2724,

Fax: (503) 326–7440; or George J.

Kelhart, Technical Advisor, Marketing

Order Administration Branch, Fruit and

Vegetable Programs, AMS, USDA, room

2525–S, P.O. 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, P.O. Box 96456, room

2525–S, 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 Agreement

No. 115 and Marketing Order No. 982,

both as amended (7 CFR part 982),

regulating the handling of hazelnuts

grown in Oregon and Washington,

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. It is intended that this action

apply to all merchantable hazelnuts

handled during the 1999–2000

marketing year (July 1, 1999, through

June 30, 2000). 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