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[Federal Register Volume 63, Number 136 (Thursday, July 16, 1998)]
[Proposed Rules]
[Pages 38349-38351]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-18999]

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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 924

[Docket No. FV98-924-1 PR]

Fresh Prunes Grown in Designated Counties in Washington and 
Umatilla County, Oregon; Increased Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This rule would increase the assessment rate established for 
the Washington-Oregon Fresh Prune Marketing Committee (Committee) under 
Marketing Order No. 924 for the 1998-99 and subsequent fiscal periods 
from $0.75 to $1.00 per ton of fresh prunes handled. The Committee is 
responsible for local administration of the marketing order which 
regulates the handling of fresh prunes grown in designated counties in 
Washington and Umatilla County, Oregon. Authorization to assess fresh 
prune handlers enables the Committee to incur expenses that are 
reasonable and necessary to administer the program. The 1998-99 fiscal 
period began April 1 and ends

[[Page 38350]]

March 31. The assessment rate would remain in effect indefinitely 
unless modified, suspended, or terminated.

DATES: Comments must be received by August 17, 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: Teresa L. Hutchinson, 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) 
690-3919, 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 and Order No. 927, both as amended (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 
``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, fresh prune 
handlers are subject to assessments. Funds to administer the order are 
derived from such assessments. It is intended that the assessment rate 
as proposed herein would be applicable to all assessable fresh prunes 
beginning April 1, 1998, and continue until modified, suspended, or 
terminated. This rule would 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 periods from $0.75 to 
$1.00 per ton of fresh prunes handled.
    The 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 
Committee consists of six producer members and three handler members, 
each of whom is 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 budget and 
assessment rate were discussed at a public meeting and all directly 
affected persons had an opportunity to participate and provide input.
    For the 1997-98 and subsequent fiscal periods, the Committee 
recommended, and the Department approved, an assessment rate of $0.75 
per ton 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 
Committee or other information available to the Secretary.
    The Committee met on June 3, 1998, and unanimously recommended 
1998-99 expenditures of $7,003 and an assessment rate of $1.00 per ton 
of fresh prunes handled during the 1998-99 and subsequent fiscal 
periods. In comparison, last year's budgeted expenditures were $7,233. 
The assessment rate of $1.00 is $0.25 more than the rate currently in 
effect. The Committee recommended an increased assessment rate because 
the current rate would not generate enough income to adequately 
administer the program. The Committee decided that an assessment rate 
of more than $1.00 would generate income in excess of that needed to 
adequately administer the program.
    Major expenses recommended by the Committee for the 1998-99 fiscal 
period include $2,880 for manager salary, $1,000 for travel, $528 for 
rent and maintenance, and $475 for audit. Budgeted expenses for these 
items in 1997-98 were $2,880, $1,000, $440, and $465, respectively.
    The assessment rate recommended by the Committee was derived by 
dividing anticipated expenses by expected shipments of fresh prunes. 
Fresh prune shipments for the year are estimated at 4,800 tons, which 
should provide $4,800 in assessment income. Income derived from handler 
assessments, along with funds from the Committee's authorized reserve, 
will be adequate to cover budgeted expenses. Funds in the reserve 
(currently $6,709) would be kept within the maximum permitted by the 
order of approximately one fiscal period's operational expenses 
(Sec. 924.42).
    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 period to recommend a budget of expenses and consider 
recommendations for modification of the assessment rate. The dates and 
times of Committee meetings are available from the Committee or the 
Department. Committee meetings are open to the public and interested 
persons may express their views at these meetings. The Department 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 periods 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 this rule would have on small entities. Accordingly, 
AMS has prepared this initial regulatory flexibility analysis.

[[Page 38351]]

    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 350 producers of fresh prunes in the 
production area and approximately 30 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. The majority of fresh prune producers and handlers may be 
classified as small entities.
    This rule would increase the assessment rate established for the 
Committee for the 1998-99 and subsequent fiscal periods from $0.75 to 
$1.00 per ton of fresh prunes handled. The Committee met on June 3, 
1998, and unanimously recommended 1998-99 expenditures of $7,003 and an 
assessment rate of $1.00 per ton of fresh prunes handled. In 
comparison, last year's budgeted expenditures were $7,233. The 
assessment rate of $1.00 is $0.25 more than the rate currently in 
effect. The Committee recommended an increased assessment rate because 
the current rate would not generate enough income to adequately 
administer the program. The Committee decided that an assessment rate 
of more than $1.00 would generate income in excess of that needed to 
adequately administer the program.
    Major expenses recommended by the Committee for the 1998-99 fiscal 
period include $2,880 for manager salary, $1,000 for travel, $528 for 
rent and maintenance, and $475 for audit. Budgeted expenses for these 
items in 1997-98 were $2,880, $1,000, $440, and $465, respectively.
    The assessment rate recommended by the Committee was derived by 
dividing anticipated expenses by expected shipments of fresh prunes. 
Fresh prune shipments for the year are estimated at 4,800 tons, which 
should provide $4,800 in assessment income. Income derived from handler 
assessments, along with funds from the Committee's authorized reserve, 
will be adequate to cover budgeted expenses. The reserve is within the 
maximum permitted by the order of approximately one fiscal period's 
operational expenses (Sec. 924.42).
    Recent price information indicates that the grower price for the 
1998-99 marketing season will range between $200 and $500 per ton of 
fresh prunes handled. Therefore, the estimated assessment revenue for 
the 1998-99 fiscal period as a percentage of total grower revenue will 
range between 0.20 and 0.50 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 fresh prune 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 3, 
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 winter pear 
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 the 
opportunity to respond to this request for information and comments. 
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 period began on April 1, 1998, 
and the order requires that the rate of assessment for each fiscal 
period apply to all assessable fresh prunes handled during such fiscal 
period; (3) handlers are aware of this action which was unanimously 
recommended by the Committee at a public meeting and is similar to 
other assessment rate actions issued in past years.

List of Subjects in 7 CFR Part 924

    Marketing agreements, Plums, Prunes, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 924 is 
proposed to be amended as follows:

PART 924--FRESH PRUNES GROWN IN DESIGNATED COUNTIES IN WASHINGTON 
AND UMATILLA COUNTY, OREGON

    1. The authority citation for 7 CFR part 924 continues to read as 
follows:

    Authority: 7 U.S.C. 601-674.

Sec. 924.236  [Amended]

    2. Section 924.236 is proposed to be amended by removing the words 
``April 1, 1997,'' and adding in their place the words ``April 1, 
1998,'' and by removing ``$0.75'' and adding in its place ``$1.00.''

    Dated: July 10, 1998.
Robert C. Keeney,
Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 98-18999 Filed 7-15-98; 8:45 am]
BILLING CODE 3410-02-P
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