[Federal Register Volume 61, Number 148 (Wednesday, July 31, 1996)]
[Rules and Regulations]
[Pages 39842-39844]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-19376]
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DEPARTMENT OF AGRICULTURE
7 CFR Part 993
[Docket No. FV96-993-1 IFR]
Dried Prunes Produced in 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
Prune Marketing Committee (Committee) under Marketing Order No. 993 for
the 1996-97 and subsequent crop years. The Committee is responsible for
local administration of the marketing order which regulates the
handling of dried prunes produced in California. Authorization to
assess prune handlers enables the Committee to incur expenses that are
reasonable and necessary to administer the program.
DATES: Effective on August 1, 1996. Comments received by August 30,
1996, will be considered prior to issuance of a final rule.
ADDRESSES: Interested persons are invited to submit written comments
[[Page 39843]]
concerning this rule. Comments must be sent in triplicate to the Docket
Clerk, Fruit and Vegetable Division, AMS, USDA, P.O. Box 96456, room
2523-S, Washington, DC 20090-6456, FAX 202-720-5698. 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: Mary Kate Nelson, Marketing Assistant,
Marketing Order Administration 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 2523-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 2523-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. 993, both as amended (7 CFR part 993),
regulating the handling of dried prunes produced in California,
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. Under the marketing order now in effect, California
prune 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
prunes 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 1,400 producers of dried prunes in the
production area and approximately 21 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 California dried prune producers and
handlers may be classified as small entities.
The California prune 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 dried prunes. They are familiar with the Committee's needs
and with the costs of 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 June 27, 1996, and unanimously recommended
1996-97 expenditures of $283,500 and an assessment rate of $1.50 per
salable ton of dried prunes. In comparison, last year's budgeted
expenditures were $275,280. The assessment rate of $1.50 per salable
ton is $0.05 lower than last year's established rate. Major
expenditures recommended by the Committee for the 1996-97 crop year
include $142,120 for salaries and wages, $30,000 for research and
development, $22,000 for office rent, $20,000 for travel, $11,000 for
an acreage survey, $8,430 for the reserve for contingency, and $6,500
each for office supplies and data processing. Budgeted expenses for
these items in 1995-96 were $131,320, $30,000, $22,000, $20,000,
$10,500, $19,310, $5,000, and $3,500, respectively.
The assessment rate recommended by the Committee was derived by
dividing anticipated expenses by expected shipments of California dried
prunes. Dried prune shipments for the year are estimated at 189,000
salable tons which should provide $283,500 in assessment income. Income
derived from handler assessments will be adequate to cover budgeted
expenses. Any funds not expended by the Committee during a crop year
may be used, pursuant to Sec. 993.81(c), for a period of five months
subsequent to that crop year. At the end of such period, the excess
funds are returned or credited to handlers.
This action will reduce the assessment obligation imposed on
handlers. 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 from 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. Interested persons are invited to
submit information on the regulatory and informational impacts of this
action on small businesses.
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
crop year to recommend a budget of expenses and
[[Page 39844]]
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 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 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
1996-97 crop year begins on August 1, 1996, and the marketing order
requires that the rate of assessment for each crop year apply to all
assessable dried prunes 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) 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 993
Marketing agreements, Plums, Prunes, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 993 is
amended as follows:
PART 993--DRIED PRUNES PRODUCED IN CALIFORNIA
1. The authority citation for 7 CFR part 993 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
Note: This section will appear in the Code of Federal
Regulations.
2. A new Subpart--Assessment Rates and a new Sec. 993.347 are added
to read as follows:
Subpart--Assessment Rates
Sec. 993.347 Assessment rate.
On and after August 1, 1996, an assessment rate of $1.50 per
salable ton is established for California dried prunes.
Dated: July 25, 1996.
Sharon Bomer Lauritsen,
Acting Director, Fruit and Vegetable Division.
[FR Doc. 96-19376 Filed 7-30-96; 8:45 am]
BILLING CODE 3410-02-P
