[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