97-1162. Grapes Grown in a Designated Area of Southeastern California; Assessment Rate

[Federal Register Volume 62, Number 12 (Friday, January 17, 1997)]
[Rules and Regulations]
[Pages 2547-2549]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-1162]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 925

[Docket No. FV96-925-1 IFR]


Grapes Grown in a Designated Area of Southeastern California; 
Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: This interim final rule establishes an assessment rate for the 
California Desert Grape Administrative Committee (Committee) under 
Marketing Order No. 925 for the 1997 and subsequent fiscal years. The 
Committee is responsible for local administration of the marketing 
order which regulates the handling of table grapes grown in a 
designated area of southeastern California. Authorization to assess 
grape handlers enables the Committee to incur expenses that are 
reasonable and necessary to administer the program.

DATES: Effective on January 1, 1997. Comments received by February 18, 
1997, 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 in triplicate to the Docket 
Clerk, Fruit and Vegetable Division, AMS, USDA, P.O. Box 96456, room 
2525-S, Washington, DC 20090-6456, FAX [phone]. 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: Tershirra T. Yeager, program 
assistant, Marketing Order Administration Branch, Fruit and Vegetable 
Division, AMS, USDA, P.O. Box 96456, room 2525-S, Washington, DC 20090-
6456, telephone [phone], FAX [phone] or Rose Aguayo, 
Marketing Specialist, California Marketing Field Office, Fruit and 
Vegetable Division, AMS, USDA, 2202 Monterey Street, suite 102B, 
Fresno, California 93721, telephone [phone], FAX [phone]. 
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 [phone], FAX (202) 
720-5698.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing 
Agreement and Order No. 925 (7 CFR part 925) regulating the handling of 
table grapes grown in a designated area of southeastern 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 order now in effect, California table grape 
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 grapes beginning 
January 1, 1997, and continuing until amended, suspended, or 
terminated. This rule will not preempt any State or local laws, 
regulations, or policies, unless they

[[Page 2548]]

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. Interested persons are invited to 
submit information on the regulatory and informational impacts of this 
action on small businesses.
    There are approximately 80 producers of table grapes 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 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 table grape producers and handlers are not 
classified as small entities.
    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 
members of the Committee are producers and handlers of California 
desert grapes. 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 December 3, 1996, and unanimously recommended 
1997 expenditures of $156,865 and an assessment rate of $0.01 per lug 
of table grapes. In comparison, last year's budgeted expenditures were 
$114,827. The Committee recommended not to have an assessment rate for 
the 1996 fiscal year because there was adequate money in the reserve to 
cover estimated expenses. Major expenditures recommended by the 
Committee for the 1997 year include $100,000 for research, $25,000 for 
compliance purposes, and $8,675 for the manager's salary. Budgeted 
expenses for these items in 1996 were $60,000 for research, $25,000 for 
the sheriff's patrol and $7,887 for the manager's salary.
    The assessment rate recommended by the Committee was derived by 
dividing anticipated expenses by expected shipments of California table 
grapes. Table grape shipments for the year are estimated at 8,000,000 
lugs which should provide $80,000 in assessment income. Income derived 
from handler assessments, along with interest income and funds from the 
Committee's authorized reserve, will be adequate to cover budgeted 
expenses. Funds in the reserve will be kept within the maximum 
permitted by the order.
    While this rule will impose 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.
    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 
1997 budget and those for subsequent fiscal 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 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 Committee needs to have sufficient funds to 
pay its expenses which are incurred on a continuous basis; (2) the 1997 
fiscal year begins on January 1, 1997, and the marketing order requires 
that the rate of assessment for each fiscal year apply to all 
assessable table grapes handled during such fiscal 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) 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 925

    Grapes, Marketing agreements, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 925 is 
amended as follows:

PART 925--GRAPES GROWN IN A DESIGNATED AREA OF SOUTHEASTERN 
CALIFORNIA

    1. The authority citation for 7 CFR part 925 continues to read as 
follows:

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

    2. A new subpart--Assessment Rates and a new Sec. 925.215 are added 
to read as follows:


[[Page 2549]]


    Note: This section will appear in the Code of Federal 
Regulations.

Subpart--Assessment Rates


Sec. 925.215  Assessment rate.

    On and after January 1, 1997, an assessment rate of $0.01 per lug 
is established for grapes grown in a designated area of southeastern 
California.

    Dated: January 10, 1997.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 97-1162 Filed 1-16-97; 8:45 am]
BILLING CODE 3410-02-P