This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

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REGISTER issue of each week.

Rules and Regulations Federal Register

30289

Vol. 66, No. 109

Wednesday, June 6, 2001

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 932

[Docket No. FV01–932–1 FIR]

Olives Grown in California; Increased

Assessment Rate

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 increased the assessment rate

established for the California Olive

Committee (Committee) for the 2001

and subsequent fiscal years from $21.73

to $27.90 per ton of olives handled. The

Committee locally administers the

marketing order which regulates the

handling of olives grown in California.

Authorization to assess olive handlers

enables the Committee to incur

expenses that are reasonable and

necessary to administer the program.

The fiscal year began January 1 and

ends December 31. The assessment rate

will remain in effect indefinitely unless

modified, suspended, or terminated.

EFFECTIVE DATE: July 6, 2001.

FOR FURTHER INFORMATION CONTACT: Rose

Aguayo, Marketing Specialist, California

Marketing Field Office, Marketing Order

Administration Branch, Fruit and

Vegetable Programs, AMS, USDA, 2202

Monterey Street, Suite 102B, Fresno,

California 93721; telephone: (559) 487–

5901, Fax: (559) 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) 720–8938.

Small businesses may request

information on complying with this

regulation by contacting Jay Guerber,

Marketing Order Administration

Branch, Fruit and Vegetable Programs,

AMS, USDA, P.O. Box 96456, room

2525–S, Washington, DC 20090–6456;

telephone (202) 720–2491, Fax: (202)

720–8938, or E-mail:

Jay.Guerber@usda.gov.

SUPPLEMENTARY INFORMATION: This rule

is issued under Marketing Agreement

No. 148 and Order No. 932, both as

amended (7 CFR part 932), regulating

the handling of olives grown in

California, 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 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 olive 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 olives

beginning on January 1, 2001, 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 continues to increase the

assessment rate established for the

Committee for the 2001 and subsequent

fiscal years from $21.73 per ton to

$27.90 per ton of olives handled.

The California olive 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 California

olives. 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 2000 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 December 12,

2000, and unanimously recommended

fiscal year 2001 expenditures of

$1,348,242 and an assessment rate of

$27.90 per ton of olives. In comparison,

last year’s budgeted expenditures were

$2,472,235 and the assessment rate was

$21.73. Assessable tonnage for 2001 was

estimated at 46,374, significantly below

last year’s 113,750 tons. Although the

Committee reduced expenditures in

marketing development and research,

the significant decrease in tonnage

necessitates a higher assessment rate.

The reduced research expenditures will

fund: (1) Continued research and

development of the mechanical olive

harvester and (2) scientific studies to

develop chemical and scientific

defenses to counteract a potential threat

from the olive fruit fly in the California

production area. Market development

expenditures are significantly lower

because handlers have taken more

responsibility for market development.

The following table compares major

budget expenditure recommendations

for the 2001 fiscal year with those from

last year.

30290 Federal Register / Vol. 66, No. 109 / Wednesday, June 6, 2001 / Rules and Regulations

Budget expenditure 2000 2001

Administration ... $356,190 $343,490

Research .......... 868,550 408,337

Market Development .............. 1,212,495 596,415

The assessment rate recommended by

the Committee was derived by

considering anticipated expenses, actual

tonnage, and additional pertinent

factors. The significant tonnage decrease

in 2001, due in large part to the

alternate-bearing nature of olives, has

made it necessary for the Committee to

increase the assessment rate from $21.73

to $27.90 per ton, an increase of $6.17.

Income derived from handler

assessments, interest, and reserve funds

will be adequate to cover budgeted

expenses. Funds in the reserve will

continue to be less than the maximum

permitted by § 932.40 of the order

(approximately one fiscal year’s

expenses) by the end of 2001.

The assessment rate will 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 is

effective for an indefinite period, the

Committee will 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 may express their views at these

meetings. The Department will evaluate

Committee recommendations and other

available information to determine

whether modification of the assessment

rate is needed. Further rulemaking will

be undertaken as necessary. The

Committee’s 2001 budget and those for

subsequent fiscal years will be reviewed

and, as appropriate, approved by the

Department.

Final Regulatory Flexibility Analysis

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 1,200

producers of olives in the production

area and 2 handlers subject to regulation

under the marketing order. Small

agricultural producers are defined by

the Small Business Administration (13

CFR 121.201) 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. None of the olive

handlers may be classified as small

entities, while the majority of olive

producers may be classified as small

entities.

This rule continues to increase the

assessment rate established for the

Committee and collected from handlers

for the 2001 and subsequent fiscal years

from $21.73 per ton to $27.90 per ton of

olives. The Committee unanimously

recommended 2001 expenditures of

$1,348,242 and an assessment rate of

$27.90 per ton. The assessment rate of

$27.90 is $6.17 higher than the 2000

rate. The estimated quantity of

assessable olives for the 2001 fiscal year

is 46,374 tons. Thus, the $27.90 rate

should generate enough funds to meet

this year’s budgeted expenses, when

combined with funds from the

authorized reserve and interest income.

The following table compares major

budget expenditure recommendations

for the 2001 fiscal year with those from

last year.

Budget expenditure 2000 2001

Administration ... $356,190 $343,490

Research .......... 868,550 408,337

Market Development .............. 1,212,495 596,415

The reduced research expenditures

will fund: 1) Continued research and

development of the mechanical olive

harvester and 2) scientific studies to

develop chemical and scientific

defenses to counteract a potential threat

from the olive fruit fly in the California

production area. Market development

expenditures are significantly lower

because handlers have taken more

responsibility for market development.

A higher assessment rate was

recommended for 2001 because the

2001 fiscal year assessable tonnage is

approximately 59 percent smaller than

last fiscal year’s tonnage, due in large

part to the alternate bearing nature of

the crop:

1999 2000 2001

67,900 ............... 113,750 46,374

The Committee reviewed and

unanimously recommended 2001

expenditures of $1,348,242, which

reflects decreases in the research,

market development and administrative

budgets. Prior to arriving at this budget,

the Committee considered information

from various sources, such as the

Committee’s Executive Subcommittee,

the Research Subcommittee, and the

Marketing Subcommittee. Alternate

spending levels were discussed by these

groups, based upon potential reductions

in the funding of various research and

market development projects. The

Committee determined it was necessary

to increase the assessment rate to cover

these expenses because the significant

decrease in tonnage will not provide

sufficient funds to cover anticipated

expenses. The assessment rate of $27.90

per ton of assessable olives was derived

by considering anticipated expenses, the

Committee’s estimate of assessable

olives, and additional pertinent factors.

A review of historical and preliminary

information pertaining to the upcoming

fiscal year indicates that the grower

revenue for the 2000–2001 crop year is

estimated to be approximately

$36,068,864. With an assessment rate of

$27.90 per ton, the estimated

assessment revenue to the Committee

will be $1,293,834 for the 2001 fiscal

year, or approximately 3.59 percent of

grower revenue.

This action continues to increase the

assessment obligation imposed on

handlers for fiscal year 2001 by

$286,128 ($6.17 difference between the

new and past rate x 46,374 assessable

tonnage estimate for 2001). Assessments

are applied uniformly on all handlers,

and some of the costs may be passed on

to producers. However, increasing the

assessment rate increases the burden on

handlers, and may increase the burden

on producers. In addition, the

Committee’s meeting was widely

publicized throughout the California

olive industry and all interested persons

were invited to attend the meeting and

participate in Committee deliberations

on all issues. Like all Committee

meetings, the December 12, 2000,

meeting was a public meeting and all

entities, both large and small, were able

to express views on this issue. Finally,

interested persons were invited to

submit information on the regulatory

and informational impacts of this action

on small businesses.

This action imposes no additional

reporting or recordkeeping requirements

on California olive handlers. As with all

Federal Register / Vol. 66, No. 109 / Wednesday, June 6, 2001 / Rules and Regulations 30291

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.

An interim final rule concerning this

action was published in the Federal

Register on March 6, 2001 (66 FR

13389). Copies of that rule were also

mailed or sent via facsimile to all olive

handlers. Finally, the interim final rule

was made available through the Internet

by the Office of the Federal Register. A

60-day comment period was provided

for interested persons to respond to the

interim final rule. The comment period

ended on May 7, 2001, and no

comments were received.

A small business guide on complying

with fruit, vegetable, and specialty crop

marketing agreements and orders may

be viewed at: http://www.ams.usda.gov/

fv/moab.html. Any questions about the

compliance guide should be sent to Jay

Guerber at the previously mentioned

address in the FOR FURTHER INFORMATION

CONTACT section.

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 932

Marketing agreements, Olives,

Reporting and recordkeeping

requirements.

PART 932—OLIVES GROWN IN

CALIFORNIA

Accordingly, the interim final rule

amending 7 CFR part 932 which was

published at 66 FR 13389 on March 6,

2001, is adopted as a final rule without

change.

Dated: June 1, 2001.

Kenneth C. Clayton,

Acting Administrator, Agricultural Marketing

Service.

[FR Doc. 01–14270 Filed 6–5–01; 8:45 am]

BILLING CODE 3410–02–P

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 985

[Docket No. FV–01–985–1 FR]

Marketing Order Regulating the

Handling of Spearmint Oil Produced in

the Far West; Salable Quantities and

Allotment Percentages for the 2001–

2002 Marketing Year

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Final rule.

SUMMARY: This rule establishes the

quantity of spearmint oil produced in

the Far West, by class, that handlers

may purchase from, or handle for,

producers during the 2001–2002

marketing year, which begins on June 1,

2001. This rule establishes salable

quantities and allotment percentages for

Class 1 (Scotch) spearmint oil of

900,208 pounds and 48 percent,

respectively, and for Class 3 (Native)

spearmint oil of 938,944 pounds and 45

percent, respectively. The Spearmint Oil

Administrative Committee (Committee),

the agency responsible for local

administration of the marketing order

for spearmint oil produced in the Far

West, recommended this rule for the

purpose of avoiding extreme

fluctuations in supplies and prices, and

thus help to maintain stability in the

spearmint oil market.

EFFECTIVE DATE: June 1, 2001, through

May 31, 2002.

FOR FURTHER INFORMATION CONTACT:

Robert J. Curry, Northwest Marketing

Field Office, Marketing Order

Administration Branch, Fruit and

Vegetable Programs, AMS, USDA, 1220

SW Third Avenue, suite 385, Portland,

Oregon 97204; telephone: (503) 326–

2724; Fax: (503) 326–7440; 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) 720–8938.

Small businesses may request

information on complying 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)

720–8938, or E-mail:

Jay.Guerber@usda.gov.

SUPPLEMENTARY INFORMATION: This final

rule is issued under Marketing Order

No. 985 (7 CFR part 985), as amended,

regulating the handling of spearmint oil

produced in the Far West (Washington,

Idaho, Oregon, and designated parts of

Nevada and Utah), hereinafter referred

to as the ‘‘order.’’ This 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. Under the provisions of

the order now in effect, salable

quantities and allotment percentages

may be established for classes of

spearmint oil produced in the Far West.

This rule establishes the quantity of

spearmint oil produced in the Far West,

by class, that may be purchased from or

handled for producers by handlers

during the 2001–2002 marketing year,

which begins on June 1, 2001. 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 the date of the

entry of the ruling.

Pursuant to authority in sections

985.50, 985.51, and 985.52 of the order,

the Committee recommended the

salable quantities and allotment

percentages for the 2001–2002

marketing year at its October 11, 2000,

meeting. The Committee unanimously

recommended the establishment of a

salable quantity and allotment

percentage for Class 1 (Scotch)

spearmint oil of 900,208 pounds and 48

percent, respectively, and a salable

quantity and allotment percentage for

Class 3 (Native) spearmint oil of 938,944

pounds and 45 percent, respectively.