[Federal Register Volume 61, Number 235 (Thursday, December 5, 1996)]
[Rules and Regulations]
[Pages 64454-64456]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-30930]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 989
[Docket No. FV96-989-3 FIR]
Raisins Produced From Grapes Grown in California; Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: The Department of Agriculture (Department) is adopting as a
final rule, without change, the provisions of an interim final rule
establishing an assessment rate for the Raisin Administrative Committee
(Committee) under Marketing Order No. 989 for the 1996-97 and
subsequent crop years. The Committee is responsible for local
administration of the marketing order which regulates the handling of
raisins produced from grapes grown in California. Authorization to
assess raisin handlers enables the Committee to incur expenses that are
reasonable and necessary to administer the program.
EFFECTIVE DATE: August 1, 1996.
FOR FURTHER INFORMATION CONTACT: Mary Kate Nelson, Marketing Assistant,
Marketing Order Administration
[[Page 64455]]
Branch, California Marketing Field Office, Fruit and Vegetable
Division, AMS, USDA, suite 102B, 2202 Monterey Street, Fresno,
California 93721, telephone 209-487-5901; FAX 209-487-5906, or Martha
Sue Clark, Program Assistant, Marketing Order Administration Branch,
Fruit and Vegetable Division, AMS, USDA, P.O. Box 96456, room 2525-S,
Washington, DC 20090-6456, telephone 202-720-9918; FAX 202-720-5698.
Small businesses may request information on compliance with this
regulation by contacting: Jay Guerber, Marketing Order Administration
Branch, Fruit and Vegetable Division, AMS, USDA, P.O. Box 96456, room
2525-S, Washington, DC 20090-6456, telephone 202-720-2491, FAX 202-720-
5698.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement and Order No. 989, both as amended (7 CFR part 989),
regulating the handling of raisins produced from grapes 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
raisin 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
raisins beginning August 1, 1996, and continuing 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.
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.
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 4,500 producers of raisins in the
production area and approximately 20 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 of less than $500,000, and small agricultural
service firms are defined as those whose annual receipts (from all
sources) are less than $5,000,000. No more than eight handlers, and a
majority of producers, of California raisins may be classified as small
entities. Twelve of the 20 handlers subject to regulation have annual
sales estimated to be at least $5,000,000, and the remaining eight
handlers have sales less than $5,000,000, excluding receipts from any
other sources.
The California raisin 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 raisins. 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.
The Committee met on August 15, 1996, and unanimously recommended
1996-97 expenditures of $1,463,000 and an assessment rate of $5.00 per
ton of California raisins. In comparison, last year's budgeted
expenditures were $1,500,000. The assessment rate of $5.00 is the same
as last year's established rate. Major expenditures recommended by the
Committee for the 1996-97 year compared to those budgeted for 1995-96
(in parentheses) include: $485,000 for export program administration
and related activities ($470,000); $412,000 for salaries and wages
($471,000); $95,000 for Committee and office staff travel ($70,000);
$80,000 reserve for contingencies ($142,115); $54,000 for general,
medical, and Committee member insurance ($64,385); $49,500 for rent
($43,000); $41,200 for group retirement ($23,000); $37,500 for
membership dues/surveys ($15,500); $30,000 for office supplies
($30,000); $28,000 for equipment ($20,000); $28,000 for payroll taxes
($32,000); $22,000 for postage ($20,000); $15,000 for telephone
($15,000); $15,000 for miscellaneous expenses ($15,000); $12,000 for
repairs and maintenance ($10,000); $12,000 for Committee meeting
expenses ($7,500); $10,000 for research and communications ($23,000);
and $5,000 for audit fees ($20,000). The Committee also recommended
$15,000 for printing and $10,000 for software and programming for which
no funding was recommended last year.
The assessment rate recommended by the Committee was derived by
dividing anticipated expenses by the expected quantity of assessable
California raisins for the crop year. This rate, when applied to
anticipated acquisitions of 292,600 tons, will yield $1,463,000 in
assessment income, which should be adequate to cover anticipated
administrative expenses. Any unexpended assessment funds from the crop
year are required to be credited or refunded to the handlers from whom
collected.
An interim final rule regarding this action was published in the
October 8, 1996, issue of the Federal Register (61 FR 52684). That rule
provided for a 30-day comment period. No comments were received.
While this rule 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 will be offset by the benefits derived by the operation of the
marketing order. Therefore, the AMS has determined that this rule will
not have a significant economic impact on a substantial number of small
entities.
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.
[[Page 64456]]
Although this assessment rate is effective for an indefinite
period, the Committee will continue to meet prior to or during each
crop 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. The
Committee's 1996-97 budget and those for subsequent crop years will be
reviewed and, as appropriate, approved by the Department.
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 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
Committee needs to have sufficient funds to pay its expenses which are
incurred on a continuous basis; (2) the 1996-97 crop year began on
August 1, 1996, and the marketing order requires that the rate of
assessment for each crop year apply to all assessable raisins handled
during such crop year; (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; and (4)
an interim final rule was published on this action and provided for a
30-day comment period; no comments were received.
List of Subjects in 7 CFR Part 989
Grapes, Marketing agreements, Raisins, Reporting and recordkeeping
requirements.
Note: This section will appear in the Code of Federal
Regulations.
For the reasons set forth in the preamble, 7 CFR part 989 is
amended as follows:
PART 989--RAISINS PRODUCED FROM GRAPES GROWN IN CALIFORNIA
Accordingly, the interim final rule amending 7 CFR part 989 which
was published at 61 FR 52684 on October 8, 1996, is adopted as a final
rule without change.
Dated: November 29, 1996.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 96-30930 Filed 12-4-96; 8:45 am]
BILLING CODE 3410-02-P
