[Federal Register Volume 60, Number 221 (Thursday, November 16, 1995)]
[Rules and Regulations]
[Pages 57533-57534]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-28323]



 ========================================================================
 Rules and Regulations
                                                 Federal Register
 ________________________________________________________________________
 
 This section of the FEDERAL REGISTER contains regulatory documents 
 having general applicability and legal effect, most of which are keyed 
 to and codified in the Code of Federal Regulations, which is published 
 under 50 titles pursuant to 44 U.S.C. 1510.
 
 The Code of Federal Regulations is sold by the Superintendent of Documents. 
 Prices of new books are listed in the first FEDERAL REGISTER issue of each 
 week.
 
 ========================================================================
 

  Federal Register / Vol. 60, No. 221 / Thursday, November 16, 1995 / 
Rules and Regulations  

[[Page 57533]]


DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 989

[Docket No. FV95-989-4FIR]


Raisins Produced From Grapes Grown in California; Expenses and 
Assessment Rate

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 
that authorized expenses and established an assessment rate that will 
generate funds to pay those expenses. 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, 1995, through July 31, 1996.

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), both as amended (7 CFR 
part 989), regulating the handling of raisins produced from grapes 
grown in California, hereinafter referred to as the ``order.'' 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 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 1995-96 crop year, which began 
August 1, 1995, and ends July 31, 1996. This 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. 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 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 

[[Page 57534]]
($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.
    An interim final rule was published in the Federal Register on 
September 15, 1995 (60 FR 47860). That interim final rule added 
Sec. 989.346 to authorize expenses and establish an assessment rate for 
the Committee. That rule provided that interested persons could file 
comments through October 16, 1995. No comments were received.
    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.
    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 1995-96 crop year began on August 1, 1995. The marketing 
order requires that the rate of assessment for the crop year apply to 
all assessable raisins handled during the crop year. In addition, 
handlers are aware of this action which was unanimously 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

    Accordingly, the interim final rule amending 7 CFR part 989 which 
was published at 60 FR 47860 on September 15, 1995, is adopted as a 
final rule without change.

    Dated: November 8, 1995.
Sharon Bomer Lauritsen,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 95-28323 Filed 11-15-95; 8:45 am]
BILLING CODE 3410-02-P