97-20457. Dried Prunes Produced in California; Increased Assessment Rate  

  • [Federal Register Volume 62, Number 149 (Monday, August 4, 1997)]
    [Rules and Regulations]
    [Pages 41808-41810]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 97-20457]
    
    
    
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    DEPARTMENT OF AGRICULTURE
    
    Agricultural Marketing Service
    
    7 CFR Part 993
    
    [Docket No. FV97-993-1 IFR]
    
    
    Dried Prunes Produced in California; Increased Assessment Rate
    
    AGENCY: Agricultural Marketing Service, USDA.
    
    ACTION: Interim final rule with request for comments.
    
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    SUMMARY: This interim final rule increases the assessment rate for the 
    Prune Marketing Committee (Committee) under Marketing Order No. 993 for 
    the 1997-98 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. The 1997-98 crop 
    year covers the period August 1 through July 31. The assessment rate 
    will continue in effect indefinitely unless modified, suspended, or 
    terminated.
    
    DATES: Effective August 1, 1997. Comments received by September 3, 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, room 2525-S, PO Box 
    96456, 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: Richard P. Van Diest, Marketing 
    Specialist, or Diane Purvis, Marketing Assistant, 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; or George Kelhart, Marketing Order 
    Administration Branch, Fruit and Vegetable Division, AMS, USDA, room 
    2525-S, PO Box 96456, Washington, DC 20090-6456; telephone: (202) 690-
    3919, 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, 
    room 2525-S, PO Box 96456, 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 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 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, 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.
        This rule increases the assessment rate established for the 
    Committee for the 1997-98 and subsequent crop years from $1.50 to $1.60 
    per salable ton of dried prunes.
        The California dried 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 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.
        For the 1996-97 and subsequent crop years, the Committee 
    recommended, and the Department approved, an assessment rate that would 
    continue in effect from crop year to crop year indefinitely unless 
    modified, suspended, or terminated by the Secretary upon recommendation 
    and information submitted by the Committee or other available 
    information available to the Secretary.
        The Committee met on June 24, 1997, and unanimously recommended 
    1997-98 expenditures of $331,960 and an assessment rate of $1.60 per 
    salable ton of dried prunes. In comparison, last year's budgeted 
    expenditures were $283,500. The assessment rate of $1.60 is $0.10 
    higher than the rate currently in effect. The higher assessment rate is 
    needed to cover increases in costs for the Committee's acreage survey 
    and staff salaries.
        The major expenditures recommended by the Committee for the 1997-98 
    crop year include $176,300 for salaries, wages, and benefits, $30,000 
    for research and development, $23,000 for office rent, $21,000 for 
    travel, $20,000 for acreage survey, $8,060 for the reserve for 
    contingency, $5,000 for office supplies, $9,000 for rental of 
    equipment, and $8,000 for data processing. Budgeted expenses for these 
    items in 1996-97 were $142,120, $30,000, $22,000, $20,000, $11,000, 
    $8,430, $6,500, $3,800, and $6,500, respectively.
        The assessment rate recommended by the Committee was derived by 
    dividing anticipated expenses by its estimate of assessable California 
    dried prunes for 1997-98. Assessable tonnage for the year is estimated 
    at 207,475 salable tons which should provide $331,960 in assessment 
    income. Income derived from handler assessments and interest income 
    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.
    
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        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 period to recommend a budget of expenses and consider 
    recommendations for modification of the assessment rate. The dates and 
    times of 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 
    1997-98 budget 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 initial 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 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.
        Last year, as a percentage, about 29 percent of the handlers 
    shipped over $5,000,000 worth of dried prunes and 71 percent of the 
    handlers shipped under $5,000,000 worth of prunes. In addition, based 
    on acreage, production, producer prices provided by the Committee, and 
    the total number of dried prune producers, the average annual producer 
    revenue is approximately $136,000. The majority of handlers and 
    producers of California dried prunes may be classified as small 
    entities.
        This rule increases the assessment rate established for the 
    Committee and collected from handlers for the 1997-98 and subsequent 
    crop years from $1.50 to $1.60 per salable ton. The Committee 
    unanimously recommended 1997-98 expenditures of $331,960 and an 
    assessment rate of $1.60 per salable ton of California dried prunes. 
    The assessment rate of $1.60 is $0.10 more than the rate currently in 
    effect. The Committee estimated assessable dried prunes in 1997-98 at 
    207,475 salable tons. Thus, the current $1.50 rate of assessment would 
    only provide $311,212 in revenue, which would not be adequate to meet 
    the Committee's 1997-98 budgeted espenses. The $1.60 rate should 
    provide $331,960 in assessment income and be adequate to meet this 
    year's expenses.
        The Committee's increase from $283,500 to $331,960 in budgeted 
    expenses for 1997-98 results primarily from increases in the following 
    line item categories--total personnel (salaries, wages, and benefits), 
    rental of equipment, data processing, and acreage survey. Expenses for 
    these items for 1997-98, with last year's budgeted expenses in 
    parenthesis, are: Total personnel--$176,300 ($142,120); rental of 
    equipment--$9,000 ($3,800); data processing--$8,000 ($6,500); and 
    acreage survey--$20,000 ($11,000). The increase is needed to provide 
    wage and benefit increases for the staff. The increase in acreage 
    survey is necessary to allow the Committee to conduct a more 
    comprehensive dried prune acreage survey than conducted last year. The 
    Committee considered the alternative of conducting a smaller scale 
    survey at less cost, but decided that a survey of all California's 
    producing counties was needed to help the industry make production and 
    marketing plans. In making its budget recommendation, the Committee 
    felt that all of the expense levels were appropriate and reasonable.
        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.
        California dried prune price information is not yet available for 
    the 1997-98 crop year. Producer prices averaged $940 per ton in the 
    previous crop year. The proposed $1.60 per ton assessment rate for the 
    1997-98 crop year is insignificant when compared to the average prices 
    received the previous year and what is expected for the 1997-98 crop 
    year.
        This action will increase the assessment obligation imposed on 
    handlers. While this rule will impose some additional costs on 
    handlers, the costs are minimal and 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. In addition, the Committee's 
    meeting was widely publicized throughout the California dried prune 
    industry and all interested persons were invited to attend the meeting 
    and participate in Committee deliberations on all issues. Like all 
    Committee meetings, the June 24, 1997, meeting was a public meeting and 
    all entities, both large and small, were able to express views on this 
    issue. Finally, interested persons are invited to submit information on 
    the regulatory and informational impacts of this action on small 
    businesses.
        This action will not impose any additional reporting or 
    recordkeeping requirements on either small or large California dried 
    prune 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.
        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 
    1997-98 crop year begins on August 1, 1997, and the marketing order 
    requires that the rate of assessment for each crop year apply to
    
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    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
    
        Dried prunes, Marketing agreements, 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.
    
    
    Sec. 993.347  [Amended]
    
        2. Section 993.347 is amended by removing ``August 1, 1996,'' and 
    adding in its place ``August 1, 1997,'', and by removing ``$1.50'' and 
    adding in its place ``$1.60.''
    
        Dated: July 29, 1997.
    Ronald L. Cioffi,
    Acting Director, Fruit and Vegetable Division.
    [FR Doc. 97-20457 Filed 8-1-97; 8:45 am]
    BILLING CODE 3410-02-U
    
    
    

Document Information

Effective Date:
8/1/1997
Published:
08/04/1997
Department:
Agricultural Marketing Service
Entry Type:
Rule
Action:
Interim final rule with request for comments.
Document Number:
97-20457
Dates:
Effective August 1, 1997. Comments received by September 3, 1997 will be considered prior to issuance of a final rule.
Pages:
41808-41810 (3 pages)
Docket Numbers:
Docket No. FV97-993-1 IFR
PDF File:
97-20457.pdf
CFR: (2)
7 CFR 993.81(c)
7 CFR 993.347