[Federal Register Volume 60, Number 179 (Friday, September 15, 1995)]
[Rules and Regulations]
[Pages 47860-47861]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-22946]
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DEPARTMENT OF AGRICULTURE
7 CFR Part 989
[Docket No. FV95-989-4IFR]
Raisins Produced From Grapes Grown in California; Expenses and
Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim final rule with request for comments.
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SUMMARY: This interim final rule authorizes expenditures and
establishes an assessment rate under Marketing Order No. 989 for the
1995-96 crop year. Authorization of this budget enables the Raisin
Administrative Committee (Committee) to incur expenses that are
reasonable and necessary to administer the program. Funds to administer
this program are derived from assessments on handlers.
DATES: Effective August 1, 1995, through July 31, 1996. Comments
received by October 16, 1995, will be considered prior to issuance of a
final rule.
ADDRESSES: Interested persons are invited to submit written comments
concerning this action. 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: Martha Sue Clark, 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, or Richard P. Van Diest, California Marketing Field Office, Fruit
and Vegetable Division, AMS, USDA, suite 102B, 2202 Monterey Street,
Fresno, CA 93721, telephone 209-487-5901.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement and Order No. 989 (7 CFR part 989), regulating the handling
of raisins produced from grapes grown in California. 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 interim final rule has been reviewed under Executive Order
12778, Civil Justice Reform. Under the provisions of the marketing
order now in effect, California raisins are subject to assessments. It
is intended that the assessment rate as issued herein will be
applicable to all assessable raisins handled during the 1995-96 crop
year, which began August 1, 1995, and ends July 31, 1996. This interim
final 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
[[Page 47861]]
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 in equity to review the Secretary's ruling
on the petition, provided a bill in equity is filed not later than 20
days after the date of the entry of the ruling.
Pursuant to the requirements set forth in the Regulatory
Flexibility Act (RFA), the Administrator of 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 20 handlers of California raisins who are
subject to regulation under the raisin marketing order, and
approximately 4,500 producers in the regulated area. Small agricultural
service firms have been defined by the Small Business Administration
(13 CFR 121.601) as those whose annual receipts (from all sources) are
less than $5,000,000, and small agricultural producers are defined as
those having annual receipts of less than $500,000. No more than eight
handlers, and a majority of producers, of California raisins may be
classified as small entities. Twelve of the 20 handlers subject to
regulation have annual sales estimated to be at least $5,000,000, and
the remaining eight handlers have sales less than $5,000,000, excluding
receipts from any other sources.
The budget of expenses for the 1995-96 crop year was prepared by
the Committee, the agency responsible for local administration of the
marketing order, and submitted to the Department for approval. The
members of the Committee are producers and handlers of California
raisins. 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. The budget was formulated
and discussed in a public meeting. Thus, all directly affected persons
have had an opportunity to participate and provide input.
The assessment rate recommended by the Committee was derived by
dividing anticipated expenses by expected acquisitions of California
raisins. Because that rate will be applied to actual acquisitions, it
must be established at a rate that will provide sufficient income to
pay the Committee's expenses.
The Committee met August 15, 1995, and unanimously recommended a
1995-96 budget of $1,500,000, which is $176,000 more than the previous
year. Budget items for 1995-96 which have increased compared to those
budgeted for 1994-95 (in parentheses) are: Office salaries, $226,000
($123,000), field and compliance salaries, $75,000 ($44,000), Payroll
taxes, $32,000 ($30,000), group retirement, $23,000 ($20,000), employee
benefit expense, $6,000 ($2,500), general insurance, $16,000 ($8,000),
group medical insurance, $48,000 ($40,000), Committee members
insurance, $385 ($350), equipment expense, $20,000 ($10,000), office
travel, $20,000 ($14,000), objective measurement survey, $15,500
($14,750), and export program foreign administration, $385,000
($357,000). The Committee also recommended $35,000 for export program
trade activities and $23,000 for research and communications, for which
no funding was recommended last year. Items which have decreased
compared to those budgeted for 1994-95 (in parentheses) are: Executive
salaries, $170,000 ($230,000), Committee travel, $50,000 ($75,000), and
reserve for contingencies, $142,115 ($142,400).
The Committee unanimously recommended an assessment rate of $5.00
per ton, which is $1.00 more than last year. This rate, when applied to
anticipated acquisitions of 300,000 tons, will yield $1,500,000 in
assessment income, which will be adequate to cover anticipated
administrative expenses. Any unexpended assessment funds from the crop
year are required to be credited or refunded to the handlers from whom
collected.
While this rule will impose some additional costs on handlers, the
costs are in the form of uniform assessments on 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 Administrator of the AMS has determined
that this action will not have a significant economic impact on a
substantial number of small entities.
After consideration of all relevant matter presented, including the
information and recommendations 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 action 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 crop year
began on August 1, 1995, and the marketing order requires that the rate
of assessment for the crop year apply to all assessable raisins handled
during the crop year; (3) handlers are aware of this action which was
unanimously recommended by the Committee at a public meeting and it is
similar to other budget 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
action.
List of Subjects in 7 CFR Part 989
Grapes, Marketing agreements, Raisins, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 989 is
amended as follows:
PART 989--RAISINS PRODUCED FROM GRAPES GROWN IN CALIFORNIA
1. The authority citation for 7 CFR part 989 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
2. A new Sec. 989.346 is added to read as follows:
Note: This section will not appear in the Code of Federal
Regulations.
Sec. 989.346 Expenses and assessment rate.
Expenses of $1,500,000 by the Raisin Administrative Committee are
authorized, and an assessment rate of $5.00 per ton of assessable
California raisins is established for the crop year ending July 31,
1996. Any unexpended funds from that crop year shall be credited or
refunded to the handler from whom collected.
Dated: September 11, 1995.
Sharon Bomer Lauritsen,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 95-22946 Filed 9-14-95; 8:45 am]
BILLING CODE 3410-02-P
