45142 Federal Register / Vol. 62, No. 165 / Tuesday, August 26, 1997 / Rules and Regulations

comprise less than 1 percent of the total

number of similar small entities

operating in the State of California. In

addition, these small entities sell

regulated articles primarily for local

intrastate, not interstate, movement so

the effect, if any, of this regulation on

these entities appears to be minimal.

The effect on those few entities that

do move regulated articles interstate

will be minimized by the availability of

various treatments, that, in most cases,

will allow these small entities to move

regulated articles interstate with very

little additional cost.

Under these circumstances, the

Administrator of the Animal and Plant

Health Inspection Service has

determined that this action will not

have a significant economic impact on

a substantial number of small entities.

Executive Order 12372

This program/activity is listed in the

Catalog of Federal Domestic Assistance

under No. 10.025 and is subject to

Executive Order 12372, which requires

intergovernmental consultation with

State and local officials. (See 7 CFR part

3015, subpart V.)

Executive Order 12988

This rule has been reviewed under

Executive Order 12988, Civil Justice

Reform. This rule: (1) Preempts all State

and local laws and regulations that are

inconsistent with this rule; (2) has no

retroactive effect; and (3) does not

require administrative proceedings

before parties may file suit in court

challenging this rule.

National Environmental Policy Act

An environmental assessment and

finding of no significant impact have

been prepared for the Oriental fruit fly

regulatory program. The site specific

environmental assessment provides a

basis for the conclusion that

implementation of integrated pest

management to achieve eradication of

the Oriental fruit fly will not have a

significant impact on human health and

the natural environment. Based on the

finding of no significant impact, the

Administrator of the Animal and Plant

Health Inspection Service has

determined that an environmental

impact statement need not be prepared.

The environmental assessment and

finding of no significant impact were

prepared in accordance with: (1) The

National Environmental Policy Act of

1969 (NEPA) (42 U.S.C. 4321 et seq.), (2)

Regulations of the Council on

Environmental Quality for

implementing the procedural provisions

of NEPA (40 CFR parts 1500–1508), (3)

USDA regulations implementing NEPA

(7 CFR part 1b), and (4) APHIS’ NEPA

Implementing Procedures (7 CFR part

372).

Copies of the environmental

assessment and finding of no significant

impact are available for public

inspection at USDA, room 1141, South

Building, 14th street and Independence

Avenue SW., Washington, DC, between

8 a.m. and 4:30 p.m., Monday through

Friday, except holidays. Persons

wishing to inspect copies are requested

to call ahead on (202) 690–2817 to

facilitate entry into the reading room. In

addition, copies may be obtained by

writing to the individual listed under

FOR FURTHER INFORMATION CONTACT.

Paperwork Reduction Act

This rule contains no new

information collection or recordkeeping

requirements under the Paperwork

Reduction Act of 1995 (44 U.S.C. 3501

et seq.).

List of Subjects in 7 CFR Part 301

Agricultural commodities,

Incorporation by reference, Plant

diseases and pests, Quarantining,

Reporting and recordkeeping

requirements, Transportation.

Accordingly, 7 CFR part 301 is

amended as follows:

PART 301—DOMESTIC QUARANTINE

NOTICES

1. The authority citation for part 301

continues to read as follows:

Authority: 7 U.S.C. 147a, 150bb, 150dd,

150ee, 150ff, 161, 162, and 164–167; 7 CFR

2.22, 2.80, and 371.2(c).

2. In § 301.93–3, paragraph (c) is

revised to read as follows:

§ 301.93–3 Quarantined areas.

* * * * *

(c) The areas described below are

designated as quarantined areas:

California

Los Angeles County. That portion of Los

Angeles County beginning at the intersection

of Arrow Highway and Interstate Highway

605; then west along Arrow Highway to

Buena Vista Street; then north along Buena

Vista Street to Huntington Drive; then east

along Huntington Drive to Foothill

Boulevard; then east along Foothill

Boulevard to the shoreline of the San Gabriel

River; then northeast along the shoreline of

the San Gabriel River to State Highway 39

(San Gabriel Canyon Road); then southeast

along an imaginary line to the intersection of

Sierra Madre Avenue and Glendora Avenue;

then south along Glendora Avenue to Alosta

Avenue; then east along Alosta Avenue to

Lone Hill Avenue; then south along Lone Hill

Avenue to Cypress Street; then west along

Cypress Street to Badillo Street; then

southwest along Badillo Street to Reeder

Avenue; then south along Reeder Avenue to

Puente Street; then southeast along Puente

Street to Via Verde; then southwest along Via

Verde to The Mall; then south along The Mall

to Interstate Highway 10; then west along

Interstate Highway 10 to Grand Avenue; then

southeast along Grand Avenue to Amar Road;

then west and northwest along Amar Road to

Baldwin Park Boulevard; then northeast

along Baldwin Park Boulevard to

Francisquito Avenue; then northwest along

Francisquito Avenue to Ramona Boulevard;

then west along Ramona Boulevard to

Interstate Highway 605; then northeast along

Interstate Highway 605 to the point of

beginning.

Done in Washington, DC, this 20th day of

August 1997.

Terry L. Medley,

Administrator, Animal and Plant Health

Inspection Service.

[FR Doc. 97–22645 Filed 8–25–97; 8:45 am]

BILLING CODE 3410–34–P

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 911 and 944

[Docket No. FV97–911–1A FIR]

Limes Grown in Florida and Imported

Limes; Change in Regulatory Period

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Final rule.

SUMMARY: The Department of

Agriculture (Department) is adopting as

a final rule, without change, an interim

final rule which changed the regulatory

period currently prescribed under the

lime marketing order and the lime

import regulations. The marketing order

regulates the handling of limes grown in

Florida and is administered locally by

the Florida Lime Administrative

Committee (committee). This rule

revokes the temporary suspension of

grade and size requirements and

maintains continuous, year round,

implementation of regulations. This rule

will maintain quality standards

ensuring continued customer

satisfaction with fresh limes. The

change in import requirements is

necessary under section 8e of the

Agricultural Marketing Agreement Act

of 1937.

DATES: Effective September 25, 1997.

FOR FURTHER INFORMATION CONTACT:

Aleck Jonas, Southeast Marketing Field

Office, Marketing Order Administration

Branch, F&V, AMS, USDA, P.O. Box

2276, Winter Haven, Florida 33883;

telephone: (941) 299–4770, Fax: (941)

299–5169; or Anne Dec, Marketing

Order Administration Branch, F&V,
Federal Register / Vol. 62, No. 165 / Tuesday, August 26, 1997 / Rules and Regulations 45143

AMS, USDA, room 2522–S, P.O. Box

96456, Washington, DC 20090–6456;

telephone: (202) 720–2491, 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. 126 and Marketing Order No. 911 (7

CFR part 911), both as amended,

regulating the handling of limes grown

in Florida, 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.’’

This rule is also issued under section

8e of the Act, which provides that

whenever certain specified

commodities, including limes, are

regulated under a Federal marketing

order, imports of these commodities

into the United States are prohibited

unless they meet the same or

comparable grade, size, quality, or

maturity requirements as those in effect

for the domestically produced

commodities.

The Department is issuing this rule in

conformance with Executive Order

12866.

This rule has been reviewed under

Executive Order 12988, Civil Justice

Reform. This rule is not intended to

have retroactive effect. 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. A

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 date of the entry

of the ruling.

There are no administrative

procedures which must be exhausted

prior to any judicial challenge to the

provisions of import regulations issued

under section 8e of the Act.

This rule revokes the temporary

suspension of regulations currently

prescribed under the lime marketing

order and the lime import regulations.

The temporary suspension was

published in the Federal Register on

August 21, 1996 (61 FR 43141) and

suspended both the domestic and

import regulations for the period June 1,

1997, through December 31, 1997. The

interim final rule published in the

Federal Register on June 4, 1997 (62 FR

30429) revised both the domestic and

import regulations by removing a

temporary suspension of regulations

and thereby maintaining handling

regulations for the remainder of 1997,

and thereafter. This rule adopts as a

final rule, without change, the

provisions of the interim final rule and

keeps the regulations in effect.

Section 911.48 of the lime marketing

order provides authority to issue

regulations establishing specific pack,

container, grade and size requirements.

These requirements are specified under

Sections 911.311, 911.329, and 911.344.

Prior to this rule, the requirements

specified under Sections 911.311,

911.329, and 911.344 were temporarily

suspended from June 1, 1997, through

December 31, 1997.

The committee met on February 5,

1997, and, on a unanimous vote,

recommended terminating the

scheduled suspension.

The suspension of regulations was

first published, as a proposed rule, in

the May 8, 1996, Federal Register (60

FR 20754). A notice, published in the

June 26, 1996, Federal Register (61 FR

33047), extended the comment period of

the proposed rule from June 7, 1996, to

July 8, 1996. The final rule was

published in the August 21, 1996,

Federal Register (61 FR 43141).

In its deliberations, the committee

noted that this issue has been argued

and debated by the committee since its

original proposal to suspend

regulations. The committee was

divided, passing the measure on a split

vote of six in favor and four opposed,

January 10, 1996. Comments from

growers and grower/handlers

concerning the changes in the proposed

rule expressed concern that the loss of

regulation and the associated quality

standards would result in poor quality

limes on the market and consumer

dissatisfaction.

The committee, upon further

discussion, shared these concerns. In

fact, the committee revisited the issue

on April 17, 1996. After deliberations on

the possibilities of what could occur

without regulations, the committee

recommended, on a vote of seven in

support, none against, and one

abstention, that the original proposal be

modified from a permanent change to a

one year experiment. This action was

taken to provide the committee with an

opportunity to study the effects the

suspension of the handling regulations

would have on the industry and market

versus the cost savings derived from it.

The change was originally to have

begun on June 1, 1996. However, an

extended comment period, and the

requested modifications to the proposal

itself, resulted in the start date being

delayed to June 1, 1997. This one year

delay in implementation has allowed

the committee time to reevaluate the

need to suspend regulations.

The original rule suspending

regulations was issued in response to

changes in the market, rising costs of

production, and the cost of replanting in

the aftermath of Hurricane Andrew. The

committee commented that when the

change was originally recommended on

January 10, 1996, the industry’s position

and future prospects appeared quite

different from today. At that time, many

of the lime trees were less than 3 years

old and too young to bear fruit. These

lime trees had been replanted after

Hurricane Andrew. Money was being

expended on replanting and no revenue

was coming in from these young nonbearing trees. Further, last year citrus

leaf minor was a new threat to the lime

trees and at that time predictions called

for expensive control methods that may

or may not have worked. Throughout

the industry, the concern to save money

was great, and the suspension of

regulations was thought to be a money

saving avenue. By reducing the

regulatory period and its associated

costs, the committee hoped to provide a

decrease in industry expenses. The

committee hoped the reduced costs of

no regulations, no inspection fees, and

reduced committee expenses, resulting

from fewer meetings and less

compliance monitoring, would benefit

the industry and foster growth.

The industry’s present situation is

much improved over what it was when

the changes to the regulation were

proposed and made final. The young

lime trees are now 3 and 4 years old and

bearing fruit, resulting in a larger crop

and more revenue. Citrus leaf minor is

far less a threat than originally

presumed, due, in part, to native insect

predation against it. This has resulted in

less funds being required to combat this

pest.
45144 Federal Register / Vol. 62, No. 165 / Tuesday, August 26, 1997 / Rules and Regulations

Also, the lime committee operated off

reserves last season with a zero

assessment, and it has budgeted to work

off reserves with a zero assessment for

the current season. This will result in

industry savings of approximately

$75,000 each season. The committee

believes that all of these factors have

eliminated the critical need for the

further cost savings which prompted the

original request for the change.

Reviewing the past year, committee

members stated that fresh limes sold

were generally plentiful and of good

quality. However, they also noted that

even with quality regulations in effect,

some poor quality limes do reach the

retail market. The committee is now

concerned that removing quality

regulations, even for an experimental

period, may result in even larger

quantities of poor quality fruit reaching

the retail market, resulting in consumer

dissatisfaction and product substitution.

Committee members commented that

past experience has indicated the

difficulty of enticing customers to return

to a product once substitution has taken

place.

Committee members maintain that

although some poor quality limes still

appear on the market, the regulations

have done much to reduce the number

and help provide uniform quality. This,

in turn, has ensured customer

satisfaction with fresh limes which is a

primary concern to the industry. Thus,

the committee believes the benefits of

the quality regulations outweigh the

now diminished need to take action that

would result in cost savings.

Section 8e of the Act provides that

when certain domestically produced

commodities, including limes, are

regulated under a Federal marketing

order, imports of that commodity must

meet the same or comparable grade,

size, quality, and maturity requirements.

Since this rule changes the regulatory

period under the domestic handling

regulations, a corresponding change to

the import regulations must also be

made.

Minimum grade and size

requirements for limes imported into

the United States are currently in effect

under Section 944.209 (7 CFR 944.209).

This rule revokes the temporary

suspension period for both the domestic

and import regulations. This rule leaves

the lime regulations in effect throughout

the remainder of 1997. This reflects the

same changes being made under the

order for Florida limes. The minimum

size and grade requirements for Florida

limes are specified in section 911.344

under marketing order 911. The

minimum size and grade requirements

are not specifically stated in the lime

import regulation. Therefore, no change

is needed in the text of Section 944.209.

Mexico is the largest exporter of limes

to the United States. During the 1995–

96 season, Mexico exported 5,591,451

bushels to the United States, while all

other import sources shipped a

combined total of 167,832 bushels

during the same time period. From June

1, 1996, through December 31, 1996,

Mexico exported 4,151,867 bushels of

limes to the United States,

approximately 67 percent of the total,

6,190,321 bushels, shipped during the

1996–97 season that ended in March.

Mexico exported 559,525 bushels of

limes to the United States for the month

of June 1996, approximately 9 percent of

the total, 6,190,321 bushels, shipped in

the 1996–97 season.

Pursuant to requirements set forth in

the Regulatory Flexibility Act (RFA), the

Agricultural Marketing Service (AMS)

has considered the economic impact of

this action 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 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.

Import regulations issued under the Act

are based on those established under

Federal marketing orders.

There are approximately 10 handlers

subject to regulation under the order

and about 50 producers of Florida limes.

There are approximately 35 importers of

limes. Small agricultural service firms,

which include lime handlers and

importers, have been defined by the

Small Business Administration (13 CFR

121.601) as those whose annual receipts

are less than $5,000,000, and small

agricultural producers are defined as

those whose annual receipts are less

than $500,000.

Based on the Florida Agricultural

Statistics Service and committee data

for the 1995–96 season, the average

annual f.o.b. price for fresh Florida

limes during the 1995–96 season was

$16.50 per 55 pound bushel box

equivalent for all domestic shipments,

and the total shipments for the 1995–96

season were 371,413. Approximately 20

percent of all handlers handled 86

percent of Florida lime shipments. In

addition, many of these handlers ship

other tropical fruit and vegetable

products which are not included in

committee data but would contribute

further to handler receipts. Using the

average f.o.b. price, about 80 percent of

lime handlers could be considered small

businesses under SBA’s definition and

about 20 percent of the handlers could

be considered large businesses. The

majority of lime handlers, producers,

and importers may be classified as small

entities.

Section 911.48 of the lime marketing

order provides authority to issue

regulations establishing specific grade

and size requirements, and section 8e of

the Act requires that when such

regulations are in effect for limes, the

same or comparable requirements be

applied to imports.

The interim final rule changed the

regulatory period currently prescribed

under the lime marketing order and the

lime import regulations. Beginning June

9, 1997, that rule revised both the

domestic and import regulations by

removing a temporary suspension of

regulations and thereby maintaining

handling regulations for the remainder

of 1997. The regulations are specified in

sections 911.311, 911.329 and 911.344

and establish pack, container, grade and

size requirements. The committee

recommended this change to maintain

the quality of limes in the marketplace.

Additionally, the need to suspend

regulations to reduce handling costs has

diminished.

This rule will have a positive impact

on growers, handlers and importers, as

fruit and vegetable prices are quite

responsive to quality differentials. This

action is intended to maintain quality.

At the meeting, the committee discussed

the impact of this change on handlers

and producers in terms of cost. Any

costs to handlers and importers caused

by this action will be the loss of

projected savings from the suspension.

The majority of possible cost savings

would have resulted from eliminating

inspection fees during the suspension.

The scheduled suspension period

would have only been effective for one

year, resulting in limited cost savings.

The industry is already used to

budgeting for inspection and associated

regulation costs. The Federal/State

Inspection Service assesses fees to

provide its service. The cost for

inspection is equitable. Small and large

handlers are charged the same base rate,

with the overall cost determined by a

handler’s volume.

During this season, and the season

prior, the committee voted to operate on

reserves rather than assessing the

industry. This will result in an industry

cost savings of approximately $75,000,

the approximate cost of operating the

committee for a year, during each of
Federal Register / Vol. 62, No. 165 / Tuesday, August 26, 1997 / Rules and Regulations 45145

these two years. This will do much to

offset any costs that result from the

revocation of the suspension period.

Assessments, when they are applied, are

based on the amount of fruit handled,

therefore, the costs are borne

proportionally by small and large

operations. Consequently, the benefits

of no assessments are received equally.

Importers do not have to pay

assessments to maintain the marketing

order.

Since the recommendation to

establish the suspension period was

made, industry needs for cost savings

have diminished. The focus has shifted

to the need for stable markets and

returns. Customers are willing to pay for

quality, and complementary studies

show that customers return purchase

rate declines considerably if they are

disappointed by the quality of the

original purchase. The current cost of

inspection is $.14 per 55 pound

equivalent. However, a drop in quality

could result in a price reduction

measured in dollars rather than cents on

the same equivalent. Thus, the benefits

of a quality standard outweigh the

minimal cost savings that may have

resulted from the suspension.

Maintaining quality to the consumer

will result in a strong and stable market,

benefiting growers, handlers and

importers.

Shipments of Florida limes for the

1994–95 season were 289,213 bushels,

for the 1995–96 season they were

371,413 bushels, and for the current

1996–97 season shipments were 398,279

bushels. A steady increase in

production is indicated. Mexican

exports have also increased from

2,626,707 bushels in the 1990–91 season

to 6,190,321 bushels in the 1996–97

season.

Committee members have considered

alternatives to rescinding the

suspension period. The committee

considered a continuous period of no

regulations for the months of June

through December. They reconsidered

the merits of such an action,

determining that removing regulations

to save money may have costs, such as

lost market share, which would

overshadow any potential savings. The

committee determined that in the time

that had passed since the original

consideration of a suspension period,

the need for cost savings measures had

passed, and that the benefits of the

quality standards outweighed the cost

savings that may have been realized.

The committee was unanimous in its

belief that the need for the suspension

has passed. Accordingly, the committee

unanimously recommended this change

as outlined.

This action will not impose any

additional reporting or recordkeeping

requirements on either small or large

lime 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

proposed rule. However, limes must

meet the requirements as specified in

the U.S. Standards for Grades of Persian

Limes (7 CFR 51.1000 through 51.1016)

issued under the Agricultural Marketing

Act of 1946 (7 U.S.C. 1621 through

1627).

The committee’s meeting was widely

publicized throughout the lime industry

and all interested persons were invited

to attend the meeting and participate in

committee deliberations on all issues.

Like all committee meetings, the

February 5, 1997, meeting was a public

meeting and all entities, both large and

small, were able to express views on

these issues. The committee itself is

composed of ten members, of which

four are handlers, five are producers and

one is a public member. The majority of

committee members represent small

entities.

A proposed rule concerning this

action was issued by the Department on

April 25, 1997, and published in the

Federal Register on Tuesday, April 29,

1997 (62 FR 23185). That rule also

proposed an increase in the minimum

size for the month of June. Copies of the

rule were mailed or sent via facsimile to

all Committee members and lime

handlers and producers. The rule was

also made available through the Internet

by the Office of the Federal Register.

A 30-day comment period, ending

May 29, 1997, was provided to allow

interested persons to respond to the

proposal. Two comments were received.

The commenters, one representing a

Mexican exporter and the other a

Mexican exporters’ and packers’ union,

requested that the comment period for

the rule be extended to allow for

additional time, 30 days and 90 days,

respectively, to analyze the proposal.

One commenter concluded the proposal

would have a negative affect on its

business and the other noted that the

proposal would have a direct effect on

its business.

The Department reviewed the

requests, and determined that an

extended period with no minimum

quality or size standards in place would

be detrimental to the industry. As

previously discussed, the suspension

was originally recommended at a time

when cost savings were of utmost

concern to the Florida lime industry.

Now, however, the benefits of

maintaining quality and ensuring

customer satisfaction and repeat

purchases outweigh the diminished

need to take action that would result in

cost savings.

Therefore, the Department instituted

the revocation of the suspension

through the interim final rule which

allowed 30 additional days to comment.

However, with regard to increasing

the minimum size requirement, the

Department issued in a separate Federal

Register publication an extension of the

proposed comment period concerning

implementing the increase in minimum

size from 17⁄8 to 2 inches in diameter for

the month of June.

This rule also modifies language in

the regulations to return the minimum

size requirement of 17⁄8 inches from

June 1 through December 31. The 17⁄8

inch minimum size requirement was

inadvertently removed when the

temporary suspension was issued on

August 14, 1996 (61 FR 43141).

An interim final rule concerning this

action was issued by the Department on

May 30, 1997, and published in the

Federal Register on June 4, 1997 (62 FR

30429). Copies of the rule were mailed

or sent via facsimile to all committee

members and lime handlers and

producers. Finally, the rule was made

available through the Internet by the

Office of the Federal Register. The rule

provided for a 30-day comment period

which ended July 7, 1997. No comments

were received.

After consideration of all relevant

matter 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.

In accordance with section 8e of the

Act, the United States Trade

Representative has concurred with the

issuance of this rule, as it pertains to

limes imported into the United States.

List of Subjects

7 CFR Part 911

Limes, Marketing agreements,

Reporting and recordkeeping

requirements.

7 CFR Part 944

Avocados, Food grades and standards,

Grapefruit, Grapes, Imports, Kiwifruit,

Limes, Olives, Oranges.
45146 Federal Register / Vol. 62, No. 165 / Tuesday, August 26, 1997 / Rules and Regulations

PART 911—LIMES GROWN IN

FLORIDA

PART 944—FRUITS, IMPORT

REGULATIONS

Accordingly, the interim final rule

amending 7 CFR parts 911 and 944

which was published at 62 FR 30429 on

June 4, 1997, is adopted as a final rule

without change.

Dated: August 18, 1997.

Robert C. Keeney,

Director, Fruit and Vegetable Division.

[FR Doc. 97–22580 Filed 8–25–97; 8:45 am]

BILLING CODE 3410–02–P

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 920

[Docket No. FV97–920–3 IFR]

Kiwifruit Grown in California;

Assessment Rate

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Interim final rule with request

for comments.

SUMMARY: This rule increases the

assessment rate established for the

Kiwifruit Administrative Committee

(Committee) under Marketing Order No.

920 for the 1997–98 and subsequent

fiscal periods. The Committee is

responsible for local administration of

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 assessment rate will

remain in effect indefinitely unless

modified, suspended, or terminated.

DATES: August 27, 1997. Comments

received by September 25, 1997, 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 in triplicate to the Docket Clerk,

Fruit and Vegetable Division, AMS,

USDA, room 2525–S, P.O. Box 96456,

Washington, DC 20090–6456; Fax: (202)

720–5698. 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: Rose

Aguayo, 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 George

Kelhart, Marketing Order

Administration Branch, Fruit and

Vegetable Division, AMS, USDA, room

2525–S, P.O. Box 96456, Washington,

DC 20090–6456; telephone: (202) 690–

3919, 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, room

2525–S, P.O. Box 96456, Washington,

DC 20090–6456; telephone: (202) 720–

2491, Fax: (202) 720–5698.

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, 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.

This rule increases the assessment

rate for the Committee for the 1997–98

and subsequent fiscal periods from

$0.0175 to $0.0225 per tray or tray

equivalent.

The 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. Section

920.41 also authorizes the Committee to

borrow funds. The members of the

Committee consist of producers of

California kiwifruit and one nonindustry member. 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 1996–1997 and subsequent fiscal

periods, the Committee recommended,

and the Department approved, an

assessment rate that would continue in

effect from season to season indefinitely

unless modified, suspended, or

terminated by the Secretary upon

recommendation and information

submitted by the Committee or other

available information available to the

Secretary.

The Committee met on June 25, 1997,

and unanimously recommended 1997–

98 expenditures of $161,286 and an

assessment rate of $0.0225 per tray or

tray equivalent of kiwifruit. In

comparison, last year’s budgeted

expenditures were $178,598. The

assessment rate of $0.0225 cents per tray

or tray equivalent is $0.0050 cents

higher than the rate currently in effect.

The 1996–97 kiwifruit crop was short

3.3 million trays or tray equivalents of

the projected crop estimate. The

Committee met in February, 1997, and

approved the borrowing of funds to

cover expenses for the remainder of the

1996–97 season. The Committee has

borrowed $11,052 as of May 31, 1997,

and estimates that an additional $22,401

may be needed to cover expenses

through the end of the fiscal period. As

the Committee’s reserve is depleted, the

Committee voted to increase its

assessment rate to cover the budgeted

expenses, to reimburse the borrowed

funds, and to begin to establish an

adequate reserve. The order provides for

a maximum reserve equal to