[Federal Register Volume 62, Number 45 (Friday, March 7, 1997)]
[Rules and Regulations]
[Pages 10419-10420]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-5589]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 925
[Docket No. FV96-925-1 FIR]
Grapes Grown in a Designated Area of Southeastern 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 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.
EFFECTIVE DATE: January 1, 1997.
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 (202) 720-5127, FAX (202) 720-5698 or Rose Aguayo,
Marketing Specialist, California Marketing Field Office, Fruit and
Vegetable Division, AMS, USDA, 2202 Monterey Street, suite 102B,
Fresno, California 93721, telephone (209) 487-5901, FAX (209) 487-5906.
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. 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 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 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 table 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. 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
[[Page 10420]]
cover budgeted expenses. Funds in the reserve will be kept within the
maximum permitted by the order.
An interim final rule regarding this action was published January
17, 1997, issue of the Federal Register (62 FR 2547). That rule
provided for a 30-day comment period. No comments were received.
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 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 began 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) an interim
final rule was published on this action and provided a 30-day comment
period, no comments were received.
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 2547 on January 17, 1997, is adopted as a final
rule without change.
Dated: March 3, 1997.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 97-5589 Filed 3-6-97; 8:45 am]
BILLING CODE 3410-02-P
