[Federal Register Volume 59, Number 51 (Wednesday, March 16, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-6137]
[[Page Unknown]]
[Federal Register: March 16, 1994]
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DEPARTMENT OF AGRICULTURE
7 CFR Part 989
[Docket No. FV93-989-4FIR]
Raisins Produced From Grapes Grown in California; Expenses and
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
that authorized expenditures and established an assessment rate under
Marketing Order No. 989 for the 1993-94 fiscal period. 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.
EFFECTIVE DATE: August 1, 1993, through July 31, 1994.
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 is issuing this rule in conformance with Executive
Order 12866.
This 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 1993-94 crop year, from August 1,
1993, through July 31, 1994. 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 requesting 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 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 5,000 producers of California raisins under
this marketing order, and approximately 25 handlers. Small agricultural
producers have been defined by the Small Business Administration (13
CFR 121.601) as those having annual receipts of less than $500,000, and
small agricultural service firms are defined as those whose annual
receipts are less than $3,500,000. The majority of California raisin
producers and handlers may be classified as small entities.
The budget of expenses for the 1993-94 fiscal period 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 October 5, 1993, and unanimously recommended a
1993-94 budget of $579,060, which is $11,940 less than the previous
year. Increases of $9,200 for executive salaries, $1,100 for fieldman
salaries, $2,500 for payroll taxes, $200 for group retirement, $4,000
for group medical insurance, $1,900 for rent, $100 for audit fees, $800
for objective measurement survey, $9,760 in reserve for contingencies,
and the addition of a $2,500 category for Valley weather service will
be offset by decreases of $5,000 for office salaries, $2,000 for
general insurance, $2,000 for Committee meeting expenses, and $30,000
for research and study for which no funding was recommended this year,
and an increase of $5,000 in the amount of income paid to the Committee
by the California Raisin Advisory Board (Board).
The Board is the administrative agency for the State marketing
order under which the California raisin industry conducts its marketing
promotion and paid advertising. Some of the Committee's employees also
perform services for the Board. Pursuant to an agreement between the
Committee and Board, the Board reimburses the Committee for the
services Committee employees perform for the Board.
Major expense items include $230,000 for executive salaries,
$90,000 for office salaries, $42,600 for fieldmen salaries, and $75,000
for Committee travel. Also, $55,810 is budgeted for contingencies.
The Committee also unanimously recommended an assessment rate of
$1.80 per ton, which is $0.20 less than last year. This rate, when
applied to anticipated acquisitions of 321,700 tons, will yield
$579,060 in assessment income, which will be adequate to cover
anticipated expenses. Any unexpended funds from the crop year are
required to be credited or refunded to the handlers from whom
collected.
An interim final rule was published in the Federal Register on
December 6, 1993 (58 FR 64107). That interim final rule added
Sec. 989.344 which authorized expenses and established the assessment
rate for the Committee. That rule provided that interested persons
could file comments through January 5, 1994. No comments were received.
While this action 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.
It is further found that good cause exists for not postponing the
effective date of this action until 30 days after publication in the
Federal Register (5 U.S.C. 553) because the Committee needs to have
sufficient funds to pay its expenses which are incurred on a continuous
basis. The 1993-94 crop year began on August 1, 1993. The marketing
order requires that the rate of assessment for the crop year apply to
assessable raisins handled during the crop year. In addition, handlers
are aware of this action which was recommended by the Committee at a
public meeting and published in the Federal Register as an interim
final rule.
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.
Note: This section will not appear in the annual Code of Federal
Regulations.
Accordingly, the interim rule adding Sec. 989.344 which was
published at 58 FR 64107 on December 6, 1993, is adopted as a final
rule without change.
Dated: March 8, 1994.
Martha B. Ransom,
Acting Deputy Director, Fruit and Vegetable Division.
[FR Doc. 94-6137 Filed 3-15-94; 8:45 am]
BILLING CODE 3410-02-P