[Federal Register Volume 59, Number 143 (Wednesday, July 27, 1994)] [Unknown Section] [Page 0] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 94-18216] [[Page Unknown]] [Federal Register: July 27, 1994] ----------------------------------------------------------------------- DEPARTMENT OF AGRICULTURE 7 CFR Part 989 [Docket No. FV94-989-2FIR] Raisins Produced From Grapes Grown in California; Reapportionment of Independent Handler Representation AGENCY: Agricultural Marketing Service, USDA. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: The Department of Agriculture (Department) is adopting as a final rule, without change, the provisions of an interim final rule which revised the administrative rules and regulations established under the Federal marketing order for raisins produced from grapes grown in California. The interim final rule reapportioned the representation established for independent and small cooperative marketing association handlers on the Raisin Administrative Committee (Committee), to provide 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: August 26, 1994. FOR FURTHER INFORMATION CONTACT: Richard P. Van Diest, Marketing Specialist, 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, D.C. 20090-6456; Telephone: (202) 205-2829, or FAX (202) 720-5698. SUPPLEMENTARY INFORMATION: This 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 $5,000,000. A majority of producers and a minority of handlers of California raisins may be classified as small entities. This rule finalizes an interim final rule which revised Section 989.126 of Subpart--Administrative Rules and Regulations [7 CFR 989.102-989.176] and is based on a unanimous recommendation of the Committee and other available information. The interim final rule, published in the Federal Register on May 26, 1994, [59 FR 27225], reapportioned the Committee representation established for independent and small cooperative marketing association handlers on the Committee. The interim rule provided for broader independent handler/small cooperative handler representation on the Committee to reflect the different handler segments in the raisin industry. The change did not impose any additional regulatory, informational, or cost requirements on handlers or producers. 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 had previously provided 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 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. In addition, 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. Based on this information, the Committee met on March 9, 1994, and unanimously recommended to move one handler position from the ``all other handler'' group to the ``medium-sized handler'' group. The interim final rule amended Sec. 989.126(b) of the Administrative Rules and Regulations by changing the 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) 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) The remaining member(s) selected from and representing all other handlers, including small cooperative marketing association handler(s) and all processors. The previous and current independent handler/small cooperative handler representation are shown as follows: ------------------------------------------------------------------------ Representation Independent handler/small cooperative handler --------------------- category Previous Current ------------------------------------------------------------------------ Largest 4 Handlers................................ 2 2 Next Largest 6 Handlers........................... 2 3 Remaining Handlers................................ 3 2 ------------------------------------------------------------------------ The shift in membership recognized the relative importance of the ``large-sized handler,'' ``medium-sized handler,'' and ``all other handler groups,'' and provides 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 is eligible to nominate two members and two alternate members. The interim final rule provided a 30-day comment period which ended June 27, 1994. No comments were received. Based on the above, the Administrator of the AMS has determined that this 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 finalizing the interim final rule, without change, as published in the Federal Register on May 26, 1994, [59 FR 27225], will tend to effectuate the declared policy of the Act. 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. Accordingly, the interim final rule amending Sec. 989.126, which was published at 59 FR 27225 on May 26, 1994, is adopted as a final rule without change. Dated: July 21, 1994. Terry C. Long, Acting Deputy Director, Fruit and Vegetable Division. [FR Doc. 94-18216 Filed 7-26-94; 8:45 am] BILLING CODE 3410-02-P