[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