[Federal Register Volume 59, Number 101 (Thursday, May 26, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-12884]


[[Page Unknown]]

[Federal Register: May 26, 1994]


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DEPARTMENT OF AGRICULTURE
7 CFR Part 989

[Docket No. FV94-989-21FR]

 

Raisins Produced From Grapes Grown in California; Reapportionment 
of Independent Handler Representation

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: This interim final rule revises the administrative rules and 
regulations established under the Federal marketing order for raisins 
produced from grapes grown in California. This rule reapportions the 
representation established for independent and small cooperative 
marketing association handlers on the Raisin Administrative Committee 
(Committee), to provide for more equitable representation. This rule is 
based on a unanimous recommendation of the Committee, which is 
responsible for local administration of the order.

EFFECTIVE DATE: The interim final rule is effective May 26, 1994. 
Comments which are received by June 27, 1994 will be considered prior 
to any finalization of this interim final rule.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this interim final rule. Comments must be sent in triplicate 
to the Docket Clerk, Marketing Order Administration Branch, F&V, AMS, 
USDA, Room 2523-S, P.O. Box 96456, Washington, DC 20090-6456, FAX 
number (202) 720-5698. Comments should reference this 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 or Peter I. 
Parks, Marketing Specialists, California Marketing Field Office, Fruit 
and Vegetable Division, AMS, USDA, 2202 Monterey Street, Suite 102B, 
Fresno, California 93721; telephone: (209) 487-5901, or FAX (209) 487-
5906; or Valerie L. Emmer, Marketing Specialist, Marketing Order 
Administration Branch, F&V, AMS, USDA, Room 2523-S, P.O. Box 96456, 
Washington, DC 20090-6456; Telephone: (202) 205-2829, or FAX (202) 720-
5698.

SUPPLEMENTARY INFORMATION: This interim final rule is issued under 
Marketing Agreement and Order No. 989 [7 CFR Part 989], both as 
amended, regulating the handling of raisins produced from grapes grown 
in California. 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 12778, Civil 
Justice Reform. It is not intended to have any retroactive effect. This 
action 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 8c(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. A handler is afforded the opportunity for a hearing on the 
petition. After a 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 entry of the ruling.
    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA), the Administrator of the Agricultural Marketing Service 
(AMS) has considered the economic impact of this action 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 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 5,000 producers in the regulated area. 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. A majority of producers and a 
minority of handlers of California raisins may be classified as small 
entities.
    This interim final rule reapportions the Committee representation 
established for independent and small cooperative marketing association 
handlers on the Committee. This interim rule provides for broader 
independent handler/small cooperative handler representation on the 
Committee to reflect the different handler segments in the raisin 
industry. The change will not impose any additional regulatory, 
informational, or cost requirements on handlers or producers.
    This action revises Section 989.126 of Subpart--Administrative 
Rules and Regulations and is based on a unanimous recommendation of the 
Committee and other available information.
    Section 989.26 of the order provides that the Committee shall 
consist of 47 members, of whom 35 shall represent producers, 10 shall 
represent handlers, 1 shall represent the cooperative bargaining 
association, and 1 shall be a public member. The 10 handler positions 
are allocated between: (1) Cooperative marketing associations, each of 
which acquired not less than 10 percent of the total raisin 
acquisitions during the preceding crop year (referred to as major 
cooperative handlers); and (2) independent handlers and small 
cooperative marketing associations; i.e., those who acquired less than 
10 percent of the total raisin acquisitions during the preceding crop 
year. Currently, there is one cooperative in group (1) engaged in 
handling raisins. That handler is allocated three positions on the 
Committee. Group (2) handlers are allocated seven positions. The 
allocation of members between the two handler groups is based on the 
provisions specified in paragraph (d) of Sec. 989.26.
    Section 989.126(b) of the Administrative Rules and Regulations 
currently provides for independent and small cooperative handler 
representation on the Committee as follows:
    (1) Two members selected from and representing the four handler(s) 
other than major cooperative handler(s) who acquired the largest 
percentage of the total raisin acquisitions during the preceding crop 
year;
    (2) Two members selected from and representing the six handlers 
other than major cooperative marketing association handler(s) who 
acquired the next largest percentage of the total raisin acquisitions 
during the preceding crop year; and
    (3) The remaining member(s) selected from and representing all 
other handlers, including small cooperative marketing association 
handler(s) and all processors.
    For the purposes of this interim final rule, category (1) is 
referred to as the ``large-sized handler'' group, category (2) is 
referred to as the ``medium-sized handler'' group, and category (3) is 
referred to as the ``all other handler'' group. The number of handlers 
in the ``all other handler'' group has decreased from 10 to 7 since the 
1990-91 crop year. Also, during the 1992-93 crop year, the ``medium-
sized handler'' group acquired more than four times the tonnage 
acquired by the ``all other handler'' group.
    On the basis of this information, the Committee unanimously 
recommended on March 9, 1994, that one handler position be moved from 
the ``all other handler'' group to the ``medium-sized handler'' group. 
The current and recommended independent handler/small cooperative 
handler representation, are shown as follows: 

------------------------------------------------------------------------
                                                       Representation   
   Independent handler/small cooperative handler   ---------------------
                     category                       Current             
                                                             Recommended
------------------------------------------------------------------------
Largest 4 Handlers................................        2          2  
Next Largest 6 Handlers...........................        2          3  
Remaining Handlers................................        3         2   
------------------------------------------------------------------------

    The shift in membership recognizes the relative importance of the 
``large-sized handler,'' ``medium-sized handler,'' and ``all other 
handler groups,'' and will provide an opportunity for the ten largest 
independent/small cooperative handlers to be represented on the 
Committee either as a member or as an alternate member. The ``all other 
handler'' group will be eligible to nominate two members and two 
alternate members.
    Based on the above, the Administrator of the AMS has determined 
that this interim final rule will not have a significant economic 
impact on a substantial number of small entities.
    After consideration of all relevant information presented, 
including the Committee's unanimous recommendation and other available 
information, it is found that this regulation, 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 that, 
upon good cause, 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 1994-96 term of office begins May 1, 
1994, and this action should be effective as soon as possible so that 
these positions can be filled as close to May 1, 1994, as possible; (2) 
this action does not impose additional regulatory requirements on 
handlers or producers and, therefore, neither handlers nor producers 
need additional time to comply; (3) the industry is aware of this 
action, which was unanimously recommended by the Committee at an open 
meeting; and (4) this rule provides a 30-day comment period and any 
comments received will be considered prior to finalization of this 
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.

    2. Section 989.126 is amended by revising paragraph (b) 
introductory text and (b)(2) to read as follows:


Sec. 989.126  Representation of the Committee.

    (a) * * *
    (b) Pursuant to section 989.26(d) and commencing with the term of 
office beginning May 1, 1994, apportionment of the independent and 
small cooperative marketing association handlers shall be:
    (1) * * *
    (2) Three members selected from and representing the six handlers 
other than major cooperative marketing association handler(s) who 
acquired the next largest percentage of the total raisin acquisitions 
during the preceding crop year; and
    (3) * * *

    Dated: May 20, 1994.
Eric M. Forman,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 94-12884 Filed 5-25-94; 8:45 am]
BILLING CODE 3410-02-P