60158 Federal Register / Vol. 62, No. 216 / Friday, November 7, 1997 / Rules and Regulations

assessment rate to cover the budgeted

expenses, to reimburse the borrowed

funds, and to establish an adequate

reserve. Reserve funds will be kept

within the maximum permitted by the

order.

A review of historical information and

preliminary information pertaining to

the crop year indicates that the grower

price for the 1997–98 season is

estimated to be approximately $1.62 per

tray or tray equivalent of kiwifruit.

Therefore, the estimated assessment

revenue for the 1997–98 crop year as a

percentage of total grower revenue will

be approximately 1.4 percent.

This rule continues in effect the

assessment obligation imposed on

handlers. While the assessment rate this

fiscal period is higher than that of last

year, the additional costs upon handlers

are minimal and in the form of uniform

assessments on all handlers. Some of

the additional costs may be passed on

to producers. However, these costs will

be offset by the benefits derived by the

operation of the marketing order. In

addition, the Committee’s meeting was

widely publicized throughout the

California 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 June

25, 1997, meeting was a public meeting

and all entities, both large and small,

were able to express views on this issue.

This action will not impose any

additional reporting or recordkeeping

requirements on either small or large

California 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.

An interim final rule concerning this

action was published in the Federal

Register on August 26, 1997 (62 FR

45146). Copies of the rule were mailed

or sent via facsimile to all Committee

members and kiwifruit handlers.

Finally, the rule was made available

through the Internet by the Office of the

Federal Register. A 30-day comment

period was provided. No comments

were received.

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.

List of Subjects in 7 CFR Part 920

Kiwifruit, Marketing agreements.

PART 920—KIWIFRUIT GROWN IN

CALIFORNIA

Accordingly, the interim final rule

amending 7 CFR part 920 which was

published at 62 FR 45146 on August 26,

1997, is adopted as a final rule without

change.

Dated: November 3, 1997.

Robert C. Keeney,

Deputy Administrator, Fruit and Vegetable

Programs.

[FR Doc. 97–29479 Filed 11–6–97; 8:45 am]

BILLING CODE 3410–02–P

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 922, 923, and 924

[Docket No. FV97–922–2 FIR]

Reduced Assessment Rates for

Specified Marketing Orders

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Final rule.

SUMMARY: The Department of

Agriculture (Department) is adopting as

a final rule, without change, the

provisions of an interim final rule

which decreased the assessment rates

established for the Washington Apricot

Marketing Committee, Washington

Cherry Marketing Committee, and

Washington-Oregon Fresh Prune

Committee (Committees) under

Marketing Orders Nos. 922, 923, and

924 for the 1997–98, and subsequent

fiscal periods. Authorization to assess

apricot, cherry, and prune handlers

enables the Committees to incur

expenses that are reasonable and

necessary to administer the program.

The 1997–98 fiscal periods for these

marketing orders began April 1 and end

March 31. The assessment rates will

continue in effect indefinitely unless

modified, suspended, or terminated.

EFFECTIVE DATE: December 8, 1997.

FOR FURTHER INFORMATION CONTACT:

Jadean L. Williams, Northwest

Marketing Field Office, 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, 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

compliance with this regulation by

contacting Jay Guerber, 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.

SUPPLEMENTARY INFORMATION: This rule

is issued under Marketing Agreements

and Order No. 922 (7 CFR part 922),

regulating the handling of apricots

grown in designated counties in

Washington; Marketing Order No. 923 (7

CFR part 923) regulating the handling of

sweet cherries grown in designated

counties in Washington; and Marketing

Order No. 924 (7 CFR part 924)

regulating the handling of fresh prunes

grown in designated counties in

Washington and Umatilla County,

Oregon, hereinafter referred to as the

‘‘orders.’’ The marketing agreements and

orders 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 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 orders

now in effect, handlers in the

designated areas are subject to

assessments. Funds to administer the

orders are derived from such

assessments. It is intended that the

assessment rates as issued herein will be

applicable to all assessable Washington

apricots, Washington sweet cherries,

and Washington-Oregon fresh prunes

beginning April 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
Federal Register / Vol. 62, No. 216 / Friday, November 7, 1997 / Rules and Regulations 60159

petition, provided an action is filed not

later than 20 days after the date of the

entry of the ruling.

This rule continues in effect the

assessment rates established for the

Committees for the 1997–98 and

subsequent fiscal periods of $2.00 per

ton for Washington apricots, and $0.75

per ton for Washington sweet cherries

and Washington-Oregon fresh prunes.

The orders provide authority for each

of the Committees, with the approval of

the Department, to formulate an annual

budget of expenses and collect

assessments from handlers to administer

the programs. The members of the

Committees are producers and handlers

in designated counties in Washington

and in Umatilla County, Oregon. They

are familiar with the Committees’ needs

and with the costs for goods and

services in their local area and are thus

in a position to formulate appropriate

budgets and assessment rates. The

assessment rates are formulated and

discussed in public meetings. Thus, all

directly affected persons have an

opportunity to participate and provide

input.

For the 1996–97 and subsequent fiscal

periods, the Committees recommended,

and the Department approved,

assessment rates that would continue in

effect from fiscal period to fiscal period

indefinitely unless modified,

suspended, or terminated by the

Secretary upon recommendation and

information submitted by the

Committees or other information

available to the Secretary.

The Washington Apricot Marketing

Committee met on May 13, 1997, and

unanimously recommended 1997–98

expenditures of $9,917 and an

assessment rate of $2.00 per ton of

apricots. In comparison, last year’s

budgeted expenditures were $9,385. The

assessment rate of $2.00 is $1.00 less

than the rate previously in effect. At the

former rate of $3.00 per ton and an

estimated 1997 fresh apricot production

of 5,300 tons, the projected reserve on

March 31, 1998, would exceed the

maximum level authorized by the order

of one fiscal period’s operational

expenses. The Committee discussed

assessment rates of $1.00 and $1.50, but

decided that an assessment rate of less

than $2.00 would not generate the

income necessary to administer the

program with an adequate reserve.

The assessment rate recommended by

the Committee was derived by dividing

anticipated expenses by expected

shipments of apricots grown in

designated counties in Washington.

Applying the $2.00 per ton rate of

assessment to the Committee’s 5,300 ton

shipment estimate should provide

$10,600 in assessment income. Income

derived from handler assessments, along

with interest income and funds from the

Committee’s authorized reserve, will be

adequate to cover budgeted expenses.

Funds in the reserve will be kept within

the maximum permitted by the order.

The Washington Cherry Marketing

Committee met on May 12, 1997, and

unanimously recommended 1997–98

expenditures of $57,545 and an

assessment rate of $0.75 per ton of

cherries. In comparison, last year’s

budgeted expenditures were $56,665.

The assessment rate of $0.75 is $0.25

less than the rate previously in effect. At

the former rate of $1.00 per ton and an

estimated 1997 sweet cherry production

of 54,000 tons, the projected reserve on

March 31, 1998, would exceed the

maximum level authorized by the order

of one fiscal period’s operational

expenses. The Committee discussed an

assessment rate of $0.50, but decided

that an assessment rate of less than

$0.75 would not generate the income

necessary to administer the program

with an adequate reserve.

The assessment rate recommended by

the Committee was derived by dividing

anticipated expenses by expected

shipments of sweet cherries grown in

designated counties in Washington.

With cherry shipments for the year

estimated at 54,000 tons, the assessment

rate of $0.75 should provide $40,500 in

assessment income. Income derived

from handler assessments, along with

interest income and funds from the

Committee’s authorized reserve, will be

adequate to cover budgeted expenses.

Funds in the reserve will be kept within

the maximum permitted by the order.

The Oregon-Washington Fresh Prune

Marketing Committee met on May 28,

1997, and unanimously recommended

1997–98 expenditures of $7,233 and an

assessment rate of $0.75 per ton of

prunes. In comparison, last year’s

budgeted expenditures were $6,645. The

assessment rate of $0.75 is $0.25 less

than the rate previously in effect. At the

former rate of $1.00 per ton and an

estimated 1997 fresh prune production

of 6,000 tons, the projected reserve on

March 31, 1998, would exceed the

maximum level authorized by the order

of one fiscal period’s operational

expenses. The Committee discussed an

assessment rate of $0.50, but decided

that an assessment rate of less than

$0.75 would not generate the income

necessary to administer the program

with an adequate reserve.

The assessment rate recommended by

the Committee was derived by dividing

anticipated expenses by expected

shipments of fresh prunes grown in

designated counties in Washington, and

Umatilla County, Oregon. With fresh

prune shipments for the year estimated

at 6,000 tons, the $0.75 per ton

assessment rate should provide $4,500

in assessment income. Income derived

from handler assessments, along with

interest income and funds from the

Committee’s authorized reserve, will be

adequate to cover budgeted expenses.

Funds in the reserve will be kept within

the maximum permitted by the order.

Major expenses recommended by the

Committees for the 1997–98 year

include manager’s salary, office rent and

maintenance, Committee travel, and

compliance officer.

The assessment rates established in

this rule will continue in effect

indefinitely unless modified,

suspended, or terminated by the

Secretary upon recommendation and

information submitted by the

Committees or other available

information.

Although these assessment rates are

effective for an indefinite period, the

Committees will continue to meet prior

to or during each fiscal period to

recommend a budget of expenses and

consider recommendations for

modification of the assessment rates.

The dates and times of Committee

meetings are available from the

Committees 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

rates is needed. Further rulemaking will

be undertaken as necessary. The

Committees’ 1997–98 budgets and those

for subsequent fiscal periods 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 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 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 190

Washington apricot producers, 1,100

Washington sweet cherry producers,
60160 Federal Register / Vol. 62, No. 216 / Friday, November 7, 1997 / Rules and Regulations

and 350 Washington-Oregon fresh prune

producers in the respective production

areas. In addition, there are

approximately 55 Washington apricot

handlers, 55 Washington sweet cherry

handlers, and 30 Washington-Oregon

fresh prune handlers subject to

regulation under the respective

marketing orders. 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. The majority of

Washington apricot, Washington sweet

cherry, and Washington-Oregon fresh

prune producers and handlers may be

classified as small entities.

This rule continues in effect

decreased assessment rates established

for the Committees and collected from

handlers for the 1997–98 and

subsequent fiscal periods. The

Committees unanimously recommended

1997–98 expenditures of $9,917 for

apricots, $57,545 for cherries, and

$7,233 for prunes and an assessment

rate of $2.00 per ton for apricots, $0.75

per ton for cherries, and $0.75 per ton

for prunes. The assessment rate of $2.00

for apricots is $1.00 less than the rate

previously in effect. The assessment

rates of $0.75 for cherries and prunes

are $0.25 less than the rates previously

in effect. At the former assessment rates,

the Committees’ reserves were projected

to exceed the amount authorized in the

orders of approximately one fiscal

period’s operational expenses.

Therefore, the Committees voted to

lower their respective assessment rates

and use more of their reserves to cover

expenses.

The Committees discussed

alternatives to this rule, including

alternative expenditure levels. Lower

assessment rates were considered, but

not recommended because they would

not generate the income necessary to

administer the programs with adequate

reserves. Major expenses recommended

by the Committees for the 1997–98 year

include manager’s salary, office rent and

maintenance, Committee travel, and

compliance officer.

Apricot shipments for 1997 are

estimated at 5,300 tons, which should

provide $10,600 in assessment income.

Income derived from handler

assessments, along with funds from the

authorized reserve will be adequate to

cover budgeted expenses. Funds in the

reserve will be kept within the

maximum permitted by the order.

Sweet cherry shipments for 1997 are

estimated at 54,000 tons, which should

provide $40,500 in assessment income.

Income derived from handler

assessments, along with funds from the

authorized reserve will be adequate to

cover budgeted expenses. Funds in the

reserve will be kept within the

maximum permitted by the order.

Fresh prune shipments for 1997 are

estimated at 6,000 tons, which should

provide $4,500 in assessment income.

Income derived from handler

assessments, along with funds from the

authorized reserve will be adequate to

cover budgeted expenses. Funds in the

reserve will be kept within the

maximum permitted by the order.

Recent price information indicates

that the producer price for the 1997–98

season will range between $600 and

$1,400 per ton for Washington apricots,

between $1,500 and $2,200 per ton for

Washington sweet cherries, and

between $200 and $500 per ton for

Washington-Oregon fresh prunes.

Therefore, the estimated assessment

revenue for the 1997–98 fiscal period as

a percentage of total grower revenue

will range between 0.14 and 0.33

percent for Washington apricots,

between 0.03 and 0.05 percent for

Washington sweet cherries, and

between 0.15 and 0.38 for WashingtonOregon fresh prunes.

This action will reduce the

assessment obligation imposed on

handlers. While this rule will impose

some additional costs on handlers, the

costs are minimal and in the form of

uniform assessments on all handlers.

Some of the additional costs may be

passed on to producers. However, these

costs will be offset by the benefits

derived by the operation of the

marketing orders. In addition, the

Committees’ meetings were widely

publicized throughout the Washington

apricot, Washington sweet cherry, and

Washington-Oregon fresh prune

industries and all interested persons

were invited to attend and participate in

the Committees’ deliberations on all

issues. Like all meetings of these

Committees, the May 12, 13, and 28

meetings were public meetings and all

entities, both large and small, were able

to express views on the issues.

This action will not impose any

additional reporting or recordkeeping

requirements on either small or large

Washington apricot, Washington sweet

cherry, or Washington-Oregon fresh

prune 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.

The interim final rule published in

the Federal Register (62 FR 41805) on

August 4, 1997, requested comments to

be received by September 3, 1997. A

copy of the interim final rule was also

made available on the Internet by the

U.S. Government Printing Office. No

comments were received.

After consideration of all relevant

material presented, including the

information and recommendations

submitted by the Committees 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.

List of Subjects

7 CFR Part 922

Apricots, Marketing agreements,

Reporting and recordkeeping

requirements.

7 CFR Part 923

Cherries, Marketing agreements,

Reporting and recordkeeping

requirements.

7 CFR Part 924

Plums, Prunes, Marketing agreements,

Reporting and recordkeeping

requirements.

PART 922—APRICOTS GROWN IN

DESIGNATED COUNTIES IN

WASHINGTON

PART 923—SWEET CHERRIES

GROWN IN DESIGNATED COUNTIES

IN WASHINGTON

PART 924—FRESH PRUNES GROWN

IN DESIGNATED COUNTIES IN

WASHINGTON AND IN UMATILLA

COUNTY, OREGON

Accordingly, the interim final rule

amending 7 CFR parts 922, 923, and 924

which was published at 62 FR 41805 on

August 4, 1997, is adopted as a final

rule without change.

Dated: November 3, 1997.

Robert C. Keeney,

Deputy Administrator, Fruit and Vegetable

Programs.

[FR Doc. 97–29478 Filed 11–6–97; 8:45 am]

BILLING CODE 3410–02–P