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contains regulatory documents having general

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Rules and Regulations Federal Register

45293

Vol. 62, No. 166

Wednesday, August 27, 1997

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 920

[Docket No. FV97–920–1 FR]

Kiwifruit Grown in California; Revision

of Administrative Rules Pertaining to

Delinquent Assessments

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Final rule.

SUMMARY: This final rule revises the

time periods specified for timely

payment of assessments owed by

handlers under the Federal marketing

order for kiwifruit grown in California.

This rule reduces the time periods

specified for timely payments of

assessments from 60 days of invoice for

in-line inspection and from 45 days of

invoice for block inspection, to 30 days

of invoice for both types of inspection.

It also allows the Kiwifruit

Administrative Committee (committee)

to further revise this time period to a

later time period, in the future, if

deemed necessary and approved by the

committee. This rule will contribute to

the efficient operation of the program,

and will reduce the administrative and

accounting burden for handlers and the

committee staff.

EFFECTIVE DATE: August 28, 1997.

FOR FURTHER INFORMATION CONTACT: Rose

Aguayo, California Marketing Field

Office, Marketing Order Administration

Branch, Fruit and Vegetable Division,

AMS, USDA, 2202 Monterey St., 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, P.O.

Box 96456, Room 2525–S, 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 final

rule is issued under Marketing Order

No. 920 (7 CFR part 920), as amended,

regulating the handling of kiwifruit

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

(Department) is issuing this rule in

conformance with Executive Order

12866.

This final 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 that 20 days after date of the entry

of the ruling.

This final rule revises the time

periods specified for timely payment of

assessments owed by handlers under

the Federal marketing order for kiwifruit

grown in California. Under § 920.41(a)

of the order, each person who first

handles kiwifruit is required to pay a

pro-rata share of the costs of

administering the program. This cost is

in the form of a uniform assessment rate

applied to each handler’s shipments.

Section 920.41(a) also provides that if a

handler does not pay an assessment

within the time prescribed by the

committee, the assessment may be

subject to an interest or late payment

charge, or both. Section 920.112 of the

order’s administrative rules specifies

that a simple interest rate of 1.5 percent

per month will be charged to

assessments which are not received

within 60 days of invoice for in-line

inspected kiwifruit or within 45 days of

invoice for block inspected kiwifruit. It

further specifies that a 10 percent late

charge will be assessed handlers when

payment becomes 30 days late.

The committee, the agency

responsible for local administration of

the marketing order, met on April 16,

1997, and unanimously recommended

revising the administrative rules in

effect under the order pertaining to the

time period specified for timely

payment of assessments owed by

handlers. The committee recommended

reducing the time period for timely

payment of assessments owed by

handlers from 60 days of invoice for inline inspection and from 45 days of

invoice for block inspection, to 30 days

of invoice for both types of inspection.

The committee also requested that

§ 920.112 of the rules and regulations be

revised to allow the committee to

further revise this time period in the

future, if deemed necessary.

Kiwifruit grown in California is

harvested in late September or early

October. The fruit is packed shortly after

harvest and much of it is placed into

storage until shipment. The primary

shipping season extends through the

following May, although some fruit is

marketed during the summer months.

Whenever grade, size, quality, or

maturity requirements are in effect for

California kiwifruit, handlers are

required to have their fruit inspected

and certified as meeting those

requirements. Handlers have a choice of

two different inspection methods,

referred to as ‘‘in-line’’ and ‘‘block’’

inspection. With in-line inspection,

kiwifruit is inspected during the

packing process, prior to storage. With

block inspection, the kiwifruit is

inspected after it has been packed.

Block inspections are typically

performed just prior to shipment.

Pursuant to § 920.160, each shipper

who ships kiwifruit shall furnish a
45294 Federal Register / Vol. 62, No. 166 / Wednesday, August 27, 1997 / Rules and Regulations

report of shipment and inventory data to

the committee not later than the fifth

day of the month following such

shipment. This Monthly Shipment

Report is also required under the State

kiwifruit program administered by the

California Kiwifruit Commission

(commission). The Federal and State

programs are both administered by the

same staff.

The committee staff calculates

assessments from the Monthly

Shipment Report for all inspected

kiwifruit and bills handlers for

committee and commission

assessments. The billing period runs

from the first to the last day of the

month for all handlers. Invoices are

typically prepared and mailed at the

end of the month of receipt of the

Monthly Shipment Report, with

payment due 60 days from date of

invoice for in-line inspected kiwifruit

and 45 days from date of invoice for

block inspected kiwifruit.

Approximately a month before the

start of the 1996–1997 season, the

commission reduced its time period to

specify that assessments were

considered late if not received within 30

days of invoice. The committee did not

recommend a change in its requirements

at that time because there was not

adequate time to implement such a

change for the 1996–1997 crop year.

Operating under two different time

periods for timely payment of

assessments requires the committee staff

to process and mail two invoices each

month and requires the handlers to

review two invoices and make two

payments. Thus, this final rule will

reduce costs for handlers and the

committee by making the procedure

under both programs the same.

The committee met on April 16, 1997,

and recommended reducing the time

periods for timely payment of

assessments owed by handlers to 30

days of invoice so that the committee’s

time period will be consistent with the

commission’s time period and further

recommended that this rule be effective

in September for the 1997–1998 season.

The committee also recommended

including authority to revise this time

period in the future, if deemed

necessary and approved by the

committee. The committee wants to

ensure that consistent accounting and

administrative procedures can be

implemented simultaneously in the

future. The Department believes the

committee should be granted authority

to increase the time period; however, a

reduction in the time period should be

subject to the informal rulemaking

process. The committee’s

recommendation is modified

accordingly.

This action revises § 920.112 to

provide that assessments on all kiwifruit

be considered delinquent if not received

within 30 days of invoice, or such other

later time as specified by the committee.

There is unanimous committee

support to reduce the time periods

specified for timely payment of

assessments owed by handlers to within

30 days of invoice for both types of

inspections.

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,

the 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.

There are approximately 60 handlers

of California kiwifruit subject to

regulation under the marketing order

and 450 producers in the production

area. Small agricultural service firms are

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 have been defined as those

having annual receipts of less than

$500,000. One of the 60 handlers subject

to regulation has annual kiwifruit sales

of at least $5,000,000, and the remaining

59 handlers have sales less than

$5,000,000, excluding receipts from any

other sources. Ten of the 450 producers

subject to regulation have annual sales

of at least $500,000, and the remaining

440 producers have sales less than

$500,000, excluding receipts from any

other sources. Therefore, a majority of

handlers and producers of California

kiwifruit may be classified as small

entities.

Under § 920.41(a) of the marketing

order for kiwifruit grown in California,

each person who first handles kiwifruit

is required to pay a pro-rata share of the

costs of administering the program. This

cost is in the form of a uniform

assessment rate applied to each

handler’s shipments. Section 920.41(a)

also provides that if a handler does not

pay an assessment within the time

prescribed by the committee, the

assessment may be subject to an interest

or late payment charge, or both. Section

920.112 of the order’s administrative

rules specifies that a simple interest rate

of 1.5 percent per month will be charged

to assessments which are not received

within 60 days of invoice for in-line

inspected kiwifruit or within 45 days of

invoice for block inspected kiwifruit. It

further specifies that a 10 percent late

charge will be assessed handlers when

payment becomes 30 days late.

Pursuant to § 920.160, each shipper

who ships kiwifruit shall furnish a

report of shipment and inventory data to

the committee not later than the fifth

day of the month following such

shipment. This Monthly Shipment

Report is also required under the State

kiwifruit program administered by the

California Kiwifruit Commission. The

Federal and State programs are both

administered by the same staff.

The committee staff calculates

assessments from the Monthly

Shipment Report for all inspected

kiwifruit and bills handlers for

committee and commission

assessments. The billing period runs

from the first to the last day of the

month for all handlers. Invoices are

typically prepared and mailed at the

end of the month of receipt of the

Monthly Shipping Report, with

payment due 60 days from date of

invoice for in-line inspected kiwifruit

and 45 days from date of invoice for

block inspected kiwifruit.

Approximately a month before the

start of the 1996–1997 season, the

commission reduced its time period to

specify that assessments will be

considered late if not received within 30

days of invoice. The committee did not

recommend a change in its requirements

at that time because there was not

adequate time to implement such a

change for the 1996–1997 crop year.

Two different time periods for timely

payment of assessments requires the

committee staff to process and mail two

invoices each month and require the

handlers to review two invoices and

make two payments. Thus, this final

rule will reduce costs for handlers and

the committee by making the

procedures under both programs the

same.

The committee met on April 16, 1997,

and recommended revising § 920.112 to

provide that the time periods for timely

payment of assessments owed by

handlers be reduced to 30 days of

invoice so that the committee’s time

period will be consistent with the

commission’s time period and further

recommended that this rule be effective

in September for the 1997–1998 season.

The committee also recommended

including authority to revise this time
Federal Register / Vol. 62, No. 166 / Wednesday, August 27, 1997 / Rules and Regulations 45295

period in the future, if deemed

necessary. The committee wants to

ensure that consistent accounting and

administrative procedures can be

implemented simultaneously in the

future.

There is unanimous committee

support to reduce the time periods

specified for timely payment of

assessments owed by handlers to 30

days of invoice for both types of

inspections.

Currently, the time lapse between the

date the fruit is shipped and the date

assessments are due is between 60–90

days. Handlers normally receive

payment for shipments within 30 days

of shipment. Therefore, the impact of

this action will not be significant as

payments for shipments are normally

received 30–60 days before assessments

are due.

For the 1997–98 season, handlers will

pay assessments of $.0225 per tray or

tray equivalent and have 60 days from

date of invoice for in-line inspected

kiwifruit and have 45 days from date of

invoice for block inspected kiwifruit to

pay their assessments before their

assessments are considered delinquent.

If handlers pay their assessments in a

timely manner, they are not charged the

simple interest rate of 1.5 percent per

month nor the 10 percent late charge.

Under this rule, handlers will have 30

days from the invoice date before their

assessments will be considered

delinquent. This 30-day reduction in the

time period for handlers receiving inline inspection and 15-day reduction in

the time period for handlers receiving

block inspection will have no impact on

handlers who pay their assessments in

a timely manner. Even for those who do

not pay in a timely manner, the impact

will not be significant. For example, if

a handler is delinquent in paying

assessments, a simple interest rate of 1.5

percent interest per month and an

assessment of $.0225 per tray or tray

equivalent will apply. During the peak

month of March 1996, less than 1.6

million trays or tray equivalents were

shipped. This equates to an approximate

average of 26,667 trays for each of the

60 handlers, which when assessed at

$.0225 per tray generates a $600

assessment per handler. If an account is

30 days delinquent, the handler is

charged a 1.5 percent interest charge in

the amount of $9.00 and a 10 percent

late charge in the amount of $60.00 over

the assessment. This action does not

change the interest rate nor the late

charge percentage, but reduces the time

period specified for timely payment to

30 days. If amounts are paid in a timely

manner, no additional charges are

incurred. The majority of assessments

owed by handlers are paid within the

specified time periods.

This change will reduce the

administrative and accounting burden

for handlers and for the committee staff

by making the committee’s and the

commission’s time periods consistent.

While no specific alternatives were

suggested during the public meeting, the

committee’s recommendation and the

rule finalized herein do provide for

built-in alternatives and flexibility.

Allowing the committee to further

revise this time period to a later time

period in the future, if deemed

necessary, will ensure that consistent

accounting and administrative

procedures can be implemented

simultaneously in the future. This rule

will be applied uniformly to all

handlers and was viewed by the

committee as the best solution.

This action will not impose any

additional reporting or recordkeeping

requirements on either small or large

kiwifruit handlers. As with all Federal

marketing order programs, reports and

forms are periodically reviewed to

reduce information requirements and

duplication by industry and public

sector agencies.

The Department has not identified

any relevant Federal rules that

duplicate, overlap or conflict with this

final rule.

In addition, the committee’s meeting

was widely publicized throughout the

kiwifruit industry and all interested

persons were invited to attend the

meeting and participate in committee

deliberations on all issues. Like all

committee meetings, the April 16, 1997,

meeting was a public meeting and all

entities, both large and small, were able

to express views on this issue.

A proposed rule concerning this

action was issued by the Department on

June 30, 1997, and published in the

Federal Register on Monday, July 7,

1997 (62 FR 36231). Copies of the rule

were mailed to all Committee members

and kiwifruit handlers. The rule was

also made available through the Internet

by the Office of the Federal Register. No

comments were received.

After consideration of all relevant

matter presented, including the

information and recommendations

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.

It is further found that good cause

exists for not postponing the effective

date of this rule until 30 days after

publication in the Federal Register (5

U.S.C. 553) because this change should

apply to all kiwifruit shipped during the

season. Such shipments can begin as

early as September. Further, handlers

are aware of this rule, which was

recommended at a public meeting. Also,

a 30-day comment period was provided

for in the proposed rule and no

comments were received.

List of Subjects in 7 CFR Part 920

Kiwifruit, Marketing agreements.

For the reasons set forth in the

preamble, 7 CFR part 920 is amended as

follows:

PART 920—KIWIFRUIT GROWN IN

CALIFORNIA

1. The authority citation for 7 CFR

part 920 continues to read as follows:

Authority: 7 U.S.C. 601–674.

2. Section 920.112 is revised to read

as follows:

§ 920.112 Late payments.

Pursuant to § 920.41(a), interest will

be charged at a 1.5 percent monthly

simple interest rate. Assessments for

kiwifruit shall be deemed late if not

received within 30 days of invoice, or

such other later time period as specified

by the committee. A 10 percent late

charge will be assessed when payment

becomes 30 days late. Interest and late

payment charges shall be applied only

to the overdue assessment.

Dated: August 21, 1997.

Robert C. Keeney,

Director, Fruit and Vegetable Division.

[FR Doc. 97–22710 Filed 8–26–97; 8:45 am]

BILLING CODE 3410–02–P

FEDERAL RESERVE SYSTEM

12 CFR Part 225

[Regulation Y; Docket No. R–0958]

Bank Holding Companies and Change

in Bank Control (Regulation Y);

Amendments to Restrictions in the

Board’s Section 20 Orders

AGENCY: Board of Governors of the

Federal Reserve System.

ACTION: Final Conditions to Board

Orders.

SUMMARY: The Board is modifying the

prudential limitations established in its

decisions under the Bank Holding

Company Act and section 20 of the

Glass-Steagall Act permitting a nonbank

subsidiary of a bank holding company

to underwrite and deal in securities.

The Board is eliminating those

restrictions that have proven to be

unduly burdensome or unnecessary in

light of other laws or regulations, and