[Federal Register Volume 63, Number 58 (Thursday, March 26, 1998)]
[Rules and Regulations]
[Pages 14601-14603]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-7941]
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Rules and Regulations
Federal Register
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Federal Register / Vol. 63, No. 58 / Thursday, March 26, 1998 / Rules
and Regulations
[[Page 14601]]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 925
[Docket No. FV98-925-1 FIR]
Grapes Grown in a Designated Area of Southeastern California;
Temporary Suspension of Continuing 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
which suspended the continuing assessment rate for the Desert Grape
Administrative Committee (Committee) under Marketing Order No. 925 for
the 1998 fiscal period. The Committee is responsible for local
administration of the marketing order, and recommended that no handler
assessments be collected in 1998. It made this recommendation because
it has enough reserve funds to cover 1998 fiscal year expenses and
expenses expected during the first several months of fiscal year 1999,
and to keep its operating reserve within the maximum permitted under
the marketing order. The assessment rate will apply again during fiscal
year 1999 to cover expenses and to replenish the Committee's reserve
funds. That rate will continue in effect indefinitely unless modified,
suspended, or terminated.
EFFECTIVE DATE: April 27, 1998.
FOR FURTHER INFORMATION CONTACT: Diane Purvis, Marketing Assistant, or
Rose Aguayo, Marketing Specialist, California Marketing Field Office,
Fruit and Vegetable Programs, AMS, USDA, 2202 Monterey Street, Suite
102B, Fresno, California 93721; telephone: (209) 487-5901, Fax: (209)
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) 205-6632. Small businesses may request information
on compliance 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) 205-6632.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement and Order No. 925, both as amended (7 CFR part 925),
regulating the handling of grapes grown in 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 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
grape handlers are subject to assessments. Funds to administer the
order are derived from such assessments. In 1997, an assessment rate of
$.01 per lug of grapes was fixed by the Secretary to continue in effect
indefinitely unless modified, suspended, or terminated. This action
continues to suspend that assessment rate for the 1998 fiscal year. The
assessment rate again will apply in fiscal year 1999, and it will be
applicable to all assessable grapes beginning January 1, 1999, and
continue in effect 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 temporarily suspend Sec. 925.215 of the
order's rules and regulations. Section 925.215 established an
assessment rate of $0.01 per lug for fiscal period 1997 and subsequent
fiscal periods. Continuous assessment rates remain in effect from
fiscal period to fiscal period indefinitely unless modified, suspended,
or terminated by the Secretary. This rule continues to suspend the
$0.01 assessment rate for the 1998 fiscal period.
Section 925.41 of the grape 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. In addition, Sec. 925.42 authorizes the use of
reserve funds to cover program expenses. The members of the Committee
are producers and handlers of California 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. Recommendations concerning the assessment
rate were formulated and discussed in a public meeting. Thus, all
directly affected persons had an opportunity to participate and provide
input.
The Committee met on November 12, 1997, and unanimously recommended
carrying over the 1997 reserve fund of almost $190,000, adopting a
budget of $160,619, and suspending the assessment rate of $0.01 per lug
of grapes for the 1998 fiscal period. The Committee determined that
sufficient funds would be available to meet expected 1998 fiscal period
expenses, and to cover anticipated expenses during the first few months
of fiscal year 1999, before handler assessments are collected. The
Committee discussed alternatives to this rule, including not
[[Page 14602]]
suspending the assessment rate, but concluded that an assessment rate
for 1998 would not be necessary because sufficient reserve funds and
interest income would be available to meet 1998 fiscal period expenses,
and early season expenses in 1999. Also, the Committee recommended that
the major expenditures for the 1998 fiscal period should include
$100,000 for research, $25,000 for the sheriff's patrol, and $9,109 for
the manager's salary. Budgeted expenses for these items in 1997 were
$100,000 for research, $25,000 for compliance purposes, and $8,675 for
the manager's salary. Funds in the reserve will be kept within the
maximum permitted by the order (approximately one fiscal period's
expenses; Sec. 925.42).
The temporary suspension of the continuing assessment rate is
effective only for the 1998 fiscal period. The assessment rate of $0.01
per lug will apply again during the 1999 fiscal period, unless
subsequent action to suspend or revise this rate is taken by the
Department.
Prior to the 1999 fiscal period, and prior to or during each
successive fiscal period, the Committee will continue to meet 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 1998 budget has been
approved; and those for subsequent fiscal periods 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 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 27 handlers of California grapes subject to
regulation under the marketing order and approximately 80 producers in
the production area. Small agricultural producers are defined by the
Small Business Administration (13 CFR 121.601) as those whose annual
receipts are less than $500,000, and small agricultural service firms
are defined as those whose annual receipts are less than $5,000,000.
Ten of the 27 handlers subject to regulation have annual grape sales of
at least $5,000,000, excluding receipts from any other sources. The
remaining 17 handlers have annual receipts less than $5,000,000,
excluding receipts from any other sources. In addition, 70 of the 80
producers subject to regulation have annual sales of at least $500,000,
excluding receipts from any other sources. The remaining 10 producers
have annual sales less than $500,000, excluding receipts from any other
sources. Therefore, a majority of handlers and a minority of producers
are classified as small entities.
This rule continues to suspend Sec. 925.215 of the order's rules
and regulations, which established an assessment rate of $0.01 per lug
for fiscal period 1997 and subsequent fiscal periods. This suspension
is in effect for the 1998 fiscal period.
The Committee discussed alternatives to this rule, including not
suspending the assessment rate, but concluded that no assessment rate
is necessary for 1998 because funds in the reserve and interest income
would be adequate to meet 1998 fiscal period's expenses, and expenses
for the first several months of fiscal year 1999. Also, the Committee
recommended that the major expenditures for the 1998 fiscal period
include $100,000 for research, $25,000 for the sheriff's patrol, and
$9,109 for the manager's salary. Budgeted expenses for these items in
1997 were $100,000 for research, $25,000 for compliance purposes, and
$8,675 for the manager's salary. Funds in the reserve will be kept
within the maximum permitted by the order (approximately one fiscal
period's expenses; Sec. 925.42).
Handler costs will be reduced during the 1998 fiscal year, as
assessments will not be collected. The Committee's meeting was widely
publicized throughout the grape industry and all interested persons
were invited to attend the meeting and participate in Committee
deliberations on all issues. Like all Committee meetings, the November
12, 1997, 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 either small or large California grape 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.
An interim final rule concerning this action was published in the
Federal Register on December 31, 1997 (62 FR 68150). Copies of that
rule were also mailed or sent via facsimile to all grape 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 March 2, 1998, and no comments were
received.
After consideration of all relevant matter presented, including the
information and recommendation submitted by the Committee and other
available information, it is hereby found that a continuing assessment
rate on handlers during the 1998 fiscal period no longer tends to
effectuate the declared policy of the Act. The suspension shall
continue only through December 31, 1998, at which time it shall
terminate and the suspended assessment rate specified in Sec. 925.215
will apply again beginning January 1, 1999.
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
Accordingly, the interim final rule amending 7 CFR part 925 which
was published at 62 FR 68150 on December 31, 1997, is adopted as a
final rule without change.
[[Page 14603]]
Dated: March 20, 1998.
Robert C. Keeney,
Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 98-7941 Filed 3-25-98; 8:45 am]
BILLING CODE 3410-02-P
