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.

The Code of Federal Regulations is sold by

the Superintendent of Documents. Prices of

new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

13389

Vol. 66, No. 44

Tuesday, March 6, 2001

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 932

[Docket No. FV01–932–1 IFR]

Olives Grown in California; Increased

Assessment Rate

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Interim final rule with request

for comments.

SUMMARY: This rule increases 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 is responsible

for local administration of 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 begins January 1 and

ends December 31. The assessment rate

will remain in effect indefinitely unless

modified, suspended, or terminated.

DATES: March 7, 2001. Comments

received by May 7, 2001, will be

considered prior to issuance of a final

rule.

ADDRESSES: Interested persons are

invited to submit written comments

concerning this rule. Comments must be

sent to the Docket Clerk, Marketing

Order Administration Branch, Fruit and

Vegetable Programs, AMS, USDA, room

2525–S, P.O. Box 96456, Washington,

DC 20090–6456; Fax: (202) 720–5698, or

E-mail: moab.docketclerk@usda.gov.

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, or can be viewed

at: http//www.ams.usda.gov/fv/

moab.html.

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) 720–5698.

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)

720–5698, 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 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, 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 increases 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.

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 is

estimated at 46,374, significantly below

last year’s of 113,750. Although the

Committee reduced expenditures in

13390 Federal Register / Vol. 66, No. 44 / Tuesday, March 6, 2001 / Rules and Regulations

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.

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 assessable

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 established in

this rule 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.

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 1,200

producers of olives in the production

area and 2 handlers subject to regulation

under the marketing order. Small

agricultural producers have been

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 increases 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 is

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 the 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. Therefore, if the

assessment rate is increased to $27.90

per ton, the estimated assessment

revenue to the Committee will be

$1,293,835 for the 2001 fiscal year, or

approximately 3.59 percent of grower

revenue.

This action increases the assessment

obligation imposed on handlers for

fiscal year 2001 by $286,128 ($6.17

difference between the new and current

rate × 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

Federal Register / Vol. 66, No. 44 / Tuesday, March 6, 2001 / Rules and Regulations 13391

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 are 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 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 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.

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, and that good cause

exists for not postponing the effective

date of this rule until 30 days after

publication in the Federal Register

because: (1) The 2001 fiscal period

begins on January 1, 2001, and the

marketing order requires that the rate of

assessment for each fiscal period apply

to all assessable olives handled during

such fiscal period; (2) the action

increases the assessment rate for

assessable olives beginning with the

2001 fiscal period; (3) this action was

unanimously recommended by the

Committee at a public meeting and is

similar to other assessment rate actions

issued in past years; and (4) this interim

final rule provides a 60-day comment

period, and all comments timely

received will be considered prior to

finalization of this rule.

List of Subjects in 7 CFR Part 932

Marketing agreements, Olives,

Reporting and recordkeeping

requirements.

For the reasons set forth in the

preamble, 7 CFR part 932 is amended as

follows:

PART 932—OLIVES GROWN IN

CALIFORNIA

1. The authority citation for 7 CFR

part 932 continues to read as follows:

Authority: 7 U.S.C. 601–674.

2. Section 932.230 is revised to read

as follows:

§ 932.230 Assessment rate.

On and after January 1, 2001, an

assessment rate of $27.90 per ton is

established for California olives.

Dated: February 28, 2001.

Kenneth C. Clayton,

Acting Administrator, Agricultural Marketing

Service.

[FR Doc. 01–5320 Filed 3–5–01; 8:45 am]

BILLING CODE 3410–02–P

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 956

[Docket No. FV00–956–1 FIR]

Sweet Onions Grown in the Walla

Walla Valley of Southeast Washington

and Northeast Oregon; Revision of

Administrative Rules and Regulations

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

modifying the handler assessment and

reporting requirements under the Walla

Walla sweet onion marketing order. The

marketing order regulates the handling

of sweet onions grown in the Walla

Walla Valley and is administered locally

by the Walla Walla Sweet Onion

Marketing Committee (Committee). For

sweet onions handled during the period

September 1 through May 31 of each

fiscal period, this rule continues in

effect dates by which handlers must pay

assessments and furnish reports to the

Committee that reflect new cultural and

storage practices that have extended the

traditional mid-summer marketing

season.

EFFECTIVE DATE: April 5, 2001.

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 97204–2807; telephone: (503)

326–2724, Fax: (503) 326–7440; or

George 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 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)

720–5698, or E-mail:

Jay.Guerber@usda.gov.

SUPPLEMENTARY INFORMATION: This rule

is issued under Marketing Agreement

and Order No. 956, as amended (7 CFR

part 956), regulating the handling of

sweet onions grown in the Walla Walla

Valley of Southeast Washington and

Northeast Oregon, hereinafter referred to

as the ‘‘order.’’ The 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 rule has been reviewed under

Executive Order 12988, Civil Justice

Reform. This rule provides dates by

which handlers must pay assessments

and furnish reports to the Committee

that reflect new cultural and storage

practices for sweet onions handled

during the period September 1 through

May 31 of each fiscal period. 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