This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

35164

Vol. 63, No. 124

Monday, June 29, 1998

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 928

[Docket No. FV98–928–1 PR]

Papayas Grown in Hawaii; Increased

Assessment Rate

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Proposed rule.

SUMMARY: This rule would increase the

assessment rate established for the

Papaya Administrative Committee

(Committee) under Marketing Order No.

928 for the 1998–99 and subsequent

fiscal years from $0.0059 to $0.0063 per

pound of papayas handled. The

Committee is responsible for local

administration of the marketing order

which regulates the handling of papayas

grown in Hawaii. Authorization to

assess papaya handlers enables the

Committee to incur expenses that are

reasonable and necessary to administer

the program. The fiscal year begins July

1 and ends June 30. The assessment rate

would remain in effect indefinitely

unless modified, suspended, or

terminated.

DATES: Comments must be received by

July 29, 1998.

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) 205–6632.

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

Terry Vawter, Marketing Specialist,

California Marketing Field Office, Fruit

and Vegetable Programs, AMS, USDA,

2202 Monterey Street, Suite 102B,

Fresno, California 93721; telephone:

(209) 487–5901, Fax: (209) 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)

205–6632. 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)

205–6632.

SUPPLEMENTARY INFORMATION: This rule

is issued under Marketing Agreement

No. 155 and Order No. 928, both as

amended (7 CFR part 928), regulating

the handling of papayas grown in

Hawaii, 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, papaya 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 papayas

beginning on July 1, 1998, 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 would increase the

assessment rate established for the

Committee for the 1998–99 and

subsequent fiscal years from $0.0059 per

pound to $0.0063 per pound of papayas

handled.

The papaya 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 papayas.

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 1996–97 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 May 7, 1998,

and recommended 1998–99

expenditures of $561,500 and an

assessment rate of $0.0063 per pound of

papayas. In comparison, last year’s

budgeted expenditures were $623,000.

The assessment rate of $0.0063 per

pound is $0.0004 higher than the rate

currently in effect. The Committee

determined that the present assessment

rate would be inadequate to fund its

anticipated expenses and maintain a

sufficient reserve fund for the 1998–99

fiscal year. The Committee is authorized

to maintain an operating reserve in an

amount not to exceed approximately

one fiscal year’s operational expenses.

Last year, the reserve fund was

$110,000. At the end of the 1998–99

fiscal year the operating reserve is
Federal Register / Vol. 63, No. 124 / Monday, June 29, 1998 / Proposed Rules 35165

expected to be $25,200, which is

considered adequate by the Committee.

After consideration of anticipated

expenses for the 1998–99 fiscal year, it

was determined that assessment

income, interest, and income from other

sources would provide sufficient funds

to meet anticipated expenses and

maintain an adequate reserve fund.

The major expenditures

recommended by the Committee for the

1998–99 fiscal year include $183,000 for

marketing and promotion, $171,500 for

research and development, and $98,000

for salaries. Budgeted expenses for these

items in 1997–98 were $200,000 for

marketing and promotion, $225,000 for

research and development, and $81,000

for salaries, respectively.

The assessment rate recommended by

the Committee was derived by dividing

assessment income needed by expected

shipments of papayas. Papaya

shipments for 1998–99 are estimated at

38 million pounds which should

provide $239,400 in assessment income.

Income derived from handler

assessments, when combined with

income from the Hawaii Department of

Agriculture, State of Hawaii (Research),

USDA’s Foreign Agricultural Service,

County of Hawaii, and the Japanese

Inspection program, along with interest

income and $84,800 from the

Committee’s authorized reserve, will be

adequate to cover budgeted expenses.

Funds in the reserve (estimated to be

$25,200 at the end of the 1998–99 fiscal

year) would be kept within the

maximum permitted in § 928.42(a)(2) of

the order. The order authorizes

approximately one fiscal year’s

expenses for the reserve.

The proposed assessment rate would

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 would

be in effect for an indefinite period, the

Committee would continue to meet

prior to or during each fiscal year to

recommend a budget of expenses and

consider recommendations for

modification of the assessment rate. The

dates and times of Committee meetings

are available from the Committee or the

Department. Committee meetings are

open to the public and interested

persons are encouraged to express their

views at these meetings. The

Department would evaluate Committee

recommendations and other available

information to determine whether

modification of the assessment rate is

needed. Further rulemaking would be

undertaken as necessary. The

Committee’s 1998–99 budget and those

for subsequent fiscal years would 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 400

producers of papayas in the production

area and approximately 60 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.

Last year, as a percentage, four

handlers each shipped in excess of 3.85

million pounds of papayas, and the

remaining handlers each shipped less

than 3.85 million pounds of papayas.

Using an average f.o.b. price of $1.30 per

pound, the four handlers shipping in

excess of 3.85 million pounds of

papayas each could be considered large

businesses and the remaining handlers

could thus be considered small

businesses under SBA’s definition.

Using an average grower price of $0.45

per pound and industry shipments of 36

million pounds, grower revenues would

be $16.2 million. Average revenue per

grower would thus be $40,500. Based on

the foregoing, the majority of handlers

and producers of papayas may be

classified as small entities.

This rule would increase the

assessment rate established for the

Committee and collected from handlers

for the 1998–99 and subsequent fiscal

years from $0.0059 per pound to

$0.0063 per pound of papayas handled.

The Committee recommended 1998–99

expenditures of $561,500 and an

assessment rate of $0.0063 per pound of

papayas handled. The proposed

assessment rate of $0.0063 per pound is

$0.0004 higher than the 1997–98 rate.

The quantity of assessable papayas for

the 1998–99 fiscal year is estimated at

38 million pounds. Thus, the $0.0063

rate should provide $239,400 in

assessment income. Income derived

from handler assessments, the Hawaii

Department of Agriculture, State of

Hawaii (Research), USDA’s Foreign

Agricultural Service, County of Hawaii,

and Japanese Inspection program, along

with interest income and $84,800 from

the Committee’s authorized reserve, will

be adequate to cover budgeted expenses.

Funds in the reserve (estimated to be

$25,200 at the end of the 1998–99 fiscal

year) would be kept within the

maximum permitted in § 928.42(a)(2) of

the order. The order authorizes

approximately one fiscal year’s

expenses for the reserve.

The Committee recommended 1998–

99 expenditures of $561,500 which

include decreases in marketing and

promotion, and research and

development programs. The Committee

discussed further decreases in these

budget categories to avoid increasing the

assessment rate, but it decided that the

programs should be funded at the

recommended levels. Salary increases

were budgeted to cover the costs of a

new employee. The assessment rate of

$0.0063 per pound of assessable

papayas was determined by dividing the

assessment income needed by the

quantity of assessable papayas,

estimated at 38 million pounds for the

1998–99 fiscal year. This estimate

would generate $239,400 in assessment

income. When combined with $237,300

in anticipated income from other

sources including $84,800 from the

reserve, the Committee would have

adequate funds to meet 1998–99

expenses.

A review of historical information and

preliminary information pertaining to

the upcoming fiscal year indicates that

the grower price for the 1998–99 season

could range between $.30 and $0.45 per

pound of papayas. Therefore, the

estimated assessment revenue for the

1998–99 fiscal year as a percentage of

total grower revenue could range

between 1.4 and 2.1 percent.

This action would increase the

assessment obligation imposed on

handlers. While assessments impose

some additional costs on handlers, the

costs are minimal and uniform on all

handlers. Some of the additional costs

may be passed on to producers.

However, these costs would be offset by

the benefits derived by the operation of

the marketing order. In addition, the

Committee’s meeting was widely

publicized throughout the papaya

industry, and all interested persons

were invited to attend the meeting and

participate in Committee deliberations

on all issues. Like all Committee
35166 Federal Register / Vol. 63, No. 124 / Monday, June 29, 1998 / Proposed Rules

meetings, the May 7, 1998, 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 proposed rule would impose no

additional reporting or recordkeeping

requirements on either small or large

papaya 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 30-day comment period is provided

to allow interested persons to respond

to this proposed rule. Thirty days is

deemed appropriate because: (1) The

Committee needs to have sufficient

funds to pay its expenses which are

incurred on a continuous basis; (2) the

1998–99 fiscal year begins on July 1,

1998, and the marketing order requires

that the rate of assessment for each

fiscal year apply to all assessable

papayas handled during such fiscal

year; and (3) handlers are aware of this

action which was recommended by the

Committee at a public meeting and is

similar to other assessment rate actions

issued in past years.

List of Subjects in 7 CFR Part 928

Marketing agreements, Papayas,

Reporting and recordkeeping

requirements.

For the reasons set forth in the

preamble, 7 CFR part 928 is proposed to

be amended as follows:

PART 928—PAPAYAS GROWN IN

HAWAII

1. The authority citation for 7 CFR

part 928 continues to read as follows:

Authority: 7 U.S.C. 601–674.

2. Section 928.226 is proposed to be

revised to read as follows:

§ 928.226 Assessment rate.

On and after July 1, 1998, an

assessment rate of $0.0063 per pound is

established for papayas grown in

Hawaii.

Dated: June 23, 1998.

Robert C. Keeney,

Deputy Administrator, Fruit and Vegetable

Programs.

[FR Doc. 98–17251 Filed 6–26–98; 8:45 am]

BILLING CODE 3410–02–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 71

[Airspace Docket No. 98–ACE–21]

Proposed Establishment of Class E

Airspace; Davenport, LA

AGENCY: Federal Aviation

Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking.

SUMMARY: This document proposes to

establish Class E airspace area at

Davenport Municipal Airport,

Davenport, IA. The FAA has received a

request to establish Class E surface area

at Davenport, IA. The commissioning of

the Davenport Automated Surface

Observation System (ASOS) qualifies

the Davenport Municipal Airport for a

Class E surface area. The intended effect

of this action is to establish controlled

airspace for instrument operations at the

Davenport Municipal Airport.

DATES: Comments must be received on

or before July 20, 1998.

ADDRESSES: Send comments on the

proposal in triplicate to: Manager,

Airspace Branch, ACE–520, Federal

Aviation Administration, Docket No.

98–ACE–21, 601 East 12th Street,

Kansas City, MO 64106.

The official docket may be examined

in the Office of Regional Counsel for the

Central Region at the same address

between 9:00 a.m. and 3:00 p.m.,

Monday through Friday, except Federal

holidays.

An informal docket may also be

examined during normal business hours

in the office of the Manager, Airspace

Branch, Air Traffic Division, at the

address listed above.

FOR FURTHER INFORMATION CONTACT:

Kathy Randolph, Air Traffic Division,

Airspace Branch, ACE–520C, Federal

Aviation Administration, 601 East 12th

Street, Kansas City, Missouri 64106;

telephone number: (816) 426–3408.

SUPPLEMENTARY INFORMATION:

Comments Invited

Interested parties are invited to

participate in this proposed rulemaking

by submitting such written data, views,

or arguments as they may desire.

Comments that provide the factual basis

supporting the views and suggestions

presented are particularly helpful in

developing reasoned regulatory

decisions on the proposal. Comments

are specifically invited on the overall

regulatory, economic, environmental,

and energy-related aspects of the

proposal. Communications should

identify the airspace docket number and

be submitted in triplicate to the address

listed above. Commenters wishing the

FAA to acknowledge receipt of their

comments on this notice must submit

with those comments a self-addressed,

stamped postcard on which the

following statement is made:

‘‘Comments to Airspace Docket No. 98–

ACE–21.’’ The postcard will be date/

time stamped and returned to the

commenter. All communications

received on or before the closing date

for comments will be considered before

taking action on the proposed rule. The

proposal contained in this notice may

be changed in light of comments

received. All comments submitted will

be available for examination in the

Rules Docket both before and after the

closing date for comments. A report

summarizing each substantive public

contact with FAA personnel concerned

with this rulemaking will be filed in the

docket.

Availability of NPRMs

Any person may obtain a copy of this

Notice of Proposed Rulemaking (NPRM)

by submitting a request to the Federal

Aviation Administration, Office of

Public Affairs, Attention: Public Inquiry

Center, APA–230, 800 Independence

Avenue, SW, Washington, DC 20591, or

by calling (202) 267–3484.

Communications must identify the

notice number of this NPRM. Persons

interested in being placed on a mailing

list for future NPRMs should also

request a copy of Advisory Circular No.

11–2A, which describes the procedures.

The Proposal

The FAA is considering an

amendment to 14 CFR part 71 to

establish Class E surface airspace area at

Davenport, IA. The FAA has received a

request to establish a Class E surface

area. Commissioning of the ASOS

qualifies the Davenport Municipal

Airport for a Class E surface area. The

intended effect of this action is to

provide segregation of aircraft operating

under Instrument Flight Rules (IFR)

from aircraft operating in visual weather

conditions. The area would be depicted

on appropriate aeronautical charts

thereby enabling pilots to

circumnavigate the area or otherwise

comply with IFR procedures. Class E

airspace areas designated as a surface

area for an airport are published in

paragraph 6002 of FAA Order 7400.9E,

dated September 10, 1997, and effective

September 16, 1997, which is

incorporated by reference in 14 CFR

71.1. The Class E airspace designation

listed in this document would be

published subsequently in the Order.