[Federal Register Volume 60, Number 63 (Monday, April 3, 1995)]
[Rules and Regulations]
[Pages 16770-16771]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-8099]



-----------------------------------------------------------------------



DEPARTMENT OF AGRICULTURE
7 CFR Part 985

[Docket No. FV95-985-1IFR]


Spearmint Oil Produced in the Far West; Expenses and Assessment 
Rate for the 1995-96 Fiscal Year

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim Final Rule with Request for comments.

-----------------------------------------------------------------------

SUMMARY: This interim final rule authorizes expenses and establishes an 
assessment rate for the Spearmint Oil Administrative Committee 
(Committee) under Marketing Order No. 985 for the 1995-96 fiscal year. 
Authorization of this budget enables the Committee to incur expenses 
that are reasonable and necessary to administer this program. Funds to 
administer this program are derived from assessments on handlers.

DATES: Effective beginning June 1, 1995, through May 31, 1996. Comments 
received by May 3, 1995 will be considered prior to issuance of a final 
rule.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this interim final rule. Comments must be sent in triplicate 
to the Docket Clerk, Fruit and Vegetable Division, AMS, USDA, P.O. Box 
96456, room 2523-S, Washington, D.C. 20090-6456; Fax # (202) 720-5698. 
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: Caroline C. Thorpe, Marketing Order 
Administration Branch, Fruit and Vegetable Division, AMS, USDA, P.O. 
Box 96456, room 2523-S, Washington, D.C. 20090-6456, telephone: (202) 
720-5127; or Robert Curry, Northwest Marketing Field Office, Fruit and 
Vegetable Division, AMS, USDA, 1220 SW. Third Avenue, room 369, 
Portland, Oregon 97204, telephone: (503) 326-2724.

SUPPLEMENTARY INFORMATION: This interim final rule is issued under 
Marketing Agreement and Order No. 985 (7 CFR Part 985), regulating the 
handling of spearmint oil produced in the Far West. 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 interim final rule has been reviewed under Executive Order 
12778, Civil Justice Reform. Under the marketing order provisions now 
in effect, spearmint oil produced in the Far West is subject to 
assessments. It is intended that the assessment rate specified herein 
will be applicable to all assessable oil produced during the 1995-96 
fiscal year, beginning June 1, 1995, through May 31, 1996. This interim 
final 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 [[Page 16771]] law and requesting 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 in equity to 
review the Secretary's ruling on the petition, provided a bill in 
equity is filed not later than 20 days after date of the entry of the 
ruling.
    Pursuant to the requirements set forth in the Regulatory 
Flexibility Act (RFA), the Administrator of the Agricultural Marketing 
Service (AMS) has considered the economic impact of this rule on small 
entities.
    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 8 handlers of spearmint oil regulated under the marketing 
order each season and approximately 260 spearmint oil producers in the 
Far West. Small agricultural producers have been defined by the Small 
Business Administration (13 CFR 121.601) as those having annual 
receipts of less than $500,000, and small agricultural service firms 
are defined as those whose annual receipts are less than $5,000,000. A 
minority of these producers and handlers may be classified as small 
entities.
    The marketing order, administered by the Department, requires that 
the assessment rate for a particular fiscal year apply to all 
assessable spearmint oil handled from the beginning of such year. 
Annual budgets of expenses are prepared by the Committee, the agency 
responsible for local administration of this marketing order, and 
submitted to the Department for approval. The members of the Committee 
are handlers and producers of spearmint oil. They are familiar with the 
Committee's needs and with the costs for goods, services, and personnel 
in their local area, and are thus in a position to formulate 
appropriate budgets. The Committee's budget is formulated and discussed 
in a public meeting. Thus, all directly affected persons have an 
opportunity to participate and provide input.
    The assessment rate recommended by the Committee is derived by 
dividing the anticipated expenses by expected shipments of spearmint 
oil. Because that rate is applied to actual shipments, it must be 
established at a rate which will provide sufficient income to pay the 
Committee's expected expenses.
    The Committee met on February 22, 1995, and unanimously recommended 
a total expense amount of $233,272 for its 1995-96 budget. This is 
$4,567 less in expenses than the 1994-95 budget.
    The Committee also unanimously recommended an assessment rate of 
$.10 per pound for the 1995-96 fiscal year, which is $.01 more than the 
assessment rate from the 1994-95 fiscal year. The assessment rate, when 
applied to anticipated shipments of 2,000,000 pounds from the 1995-96 
spearmint oil production, would yield $200,000.00 in assessment income. 
This, along with approximately $24,272 from the Committee's authorized 
reserves, and $9,000 interest will be adequate to cover estimated 
expenses.
    Major expense categories for the 1995-96 fiscal year include 
$101,300 for salaries, $20,000 for market development, and $23,000 for 
travel. Funds in the reserve at the beginning of the 1995-96 fiscal 
year are estimated at $160,000, which is within the maximum permitted 
by the order of one fiscal year's expenses.
    While this action will impose some additional costs on handlers, 
the costs are in the form of uniform assessments on all handlers. Some 
of the additional costs may be passed on to producers. However, these 
costs should be significantly offset by the benefits derived from the 
operation of the marketing order. Therefore, the Administrator of the 
AMS has determined that this action will not have a significant 
economic impact on a substantial number of small entities.
    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.
    Pursuant to 5 U.S.C. 553, it is also found and determined upon good 
cause that it is impracticable, unnecessary, and contrary to the public 
interest to give preliminary notice prior to putting this rule into 
effect because: (1) The Committee needs to have sufficient funds to pay 
its expenses which are incurred on a continuous basis; (2) the 1995-96 
fiscal year starts on June 1, 1995, and the marketing order requires 
that the rate of assessment for the fiscal year apply to all assessable 
spearmint oil handled during the fiscal year; (3) handlers are aware of 
this rule which was recommended by the Committee at a public meeting; 
and (4) this interim final rule provides a 30-day comment period, and 
all comments timely received will be considered prior to finalization 
of this rule.

List of Subjects in 7 CFR Part 985

    Marketing agreements, Oils and fats, Reporting and recordkeeping 
requirements, Spearmint oil.

    For the reasons set forth in the preamble, 7 CFR part 985 is 
amended as follows:

PART 985--MARKETING ORDER REGULATING THE HANDLING OF SPEARMINT OIL 
PRODUCED IN THE FAR WEST

    1. The authority citation for 7 CFR Part 985 continues to read as 
follows:

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

    Note: This section will not appear in the annual Code of Federal 
Regulations.

    2. A new Sec. 985.315 is added to read as follows:


Sec. 985.315  Expenses and assessment rate.

    Expenses of $233,272.00 by the Spearmint Oil Administrative 
Committee are authorized and an assessment rate of $.10 per pound of 
assessable spearmint oil is established for the fiscal year ending May 
31, 1996. Unexpended funds may be carried over as a reserve.

    Dated: March 28, 1995.
Sharon Bomer Lauritsen,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 95-8099 Filed 3-31-95; 8:45 am]
BILLING CODE 3410-02-W