[Federal Register Volume 61, Number 148 (Wednesday, July 31, 1996)]
[Rules and Regulations]
[Pages 39842-39844]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-19376]


-----------------------------------------------------------------------


DEPARTMENT OF AGRICULTURE
7 CFR Part 993

[Docket No. FV96-993-1 IFR]


Dried Prunes Produced in California; Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

-----------------------------------------------------------------------

SUMMARY: This interim final rule establishes an assessment rate for the 
Prune Marketing Committee (Committee) under Marketing Order No. 993 for 
the 1996-97 and subsequent crop years. The Committee is responsible for 
local administration of the marketing order which regulates the 
handling of dried prunes produced in California. Authorization to 
assess prune handlers enables the Committee to incur expenses that are 
reasonable and necessary to administer the program.

DATES: Effective on August 1, 1996. Comments received by August 30, 
1996, will be considered prior to issuance of a final rule.

ADDRESSES: Interested persons are invited to submit written comments

[[Page 39843]]

concerning this rule. 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: Mary Kate Nelson, Marketing Assistant, 
Marketing Order Administration Branch, California Marketing Field 
Office, Fruit and Vegetable Division, AMS, USDA, suite 102B, 2202 
Monterey Street, Fresno, California 93721, telephone 209-487-5901, FAX 
209-487-5906, or Martha Sue Clark, Program Assistant, 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, FAX 202-720-5698. Small businesses may request information on 
compliance with this regulation by contacting: Jay Guerber, Marketing 
Order Administration Branch, Fruit and Vegetable Division, AMS, USDA, 
P.O. Box 96456, room 2523-S, Washington, DC 20090-6456, telephone 202-
720-2491, FAX 202-720-5698.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing 
Agreement and Order No. 993, both as amended (7 CFR part 993), 
regulating the handling of dried prunes produced in California, 
hereinafter referred to as the ``order.'' 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 12988, Civil 
Justice Reform. Under the marketing order now in effect, California 
prune handlers are subject to assessments. Funds to administer the 
order are derived from such assessments. It is intended that the 
assessment rate as issued herein will be applicable to all assessable 
prunes beginning August 1, 1996, and continuing until amended, 
suspended, or terminated. 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 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 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 to review the 
Secretary's ruling on the petition, provided an action is filed not 
later than 20 days after the date of the entry of the ruling.
    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA), 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 1,400 producers of dried prunes in the 
production area and approximately 21 handlers subject to regulation 
under the marketing order. Small agricultural producers have been 
defined by the Small Business Administration (13 CFR 121.601) as those 
having annual receipts less than $500,000, and small agricultural 
service firms are defined as those whose annual receipts are less than 
$5,000,000. The majority of California dried prune producers and 
handlers may be classified as small entities.
    The California prune marketing order provides authority for the 
Committee, with the approval of the Department, to formulate an annual 
budget of expenses and collect assessments from handlers to administer 
the program. The members of the Committee are producers and handlers of 
California dried prunes. 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 and assessment 
rate. The assessment rate is formulated and discussed in a public 
meeting. Thus, all directly affected persons have an opportunity to 
participate and provide input.
    The Committee met on June 27, 1996, and unanimously recommended 
1996-97 expenditures of $283,500 and an assessment rate of $1.50 per 
salable ton of dried prunes. In comparison, last year's budgeted 
expenditures were $275,280. The assessment rate of $1.50 per salable 
ton is $0.05 lower than last year's established rate. Major 
expenditures recommended by the Committee for the 1996-97 crop year 
include $142,120 for salaries and wages, $30,000 for research and 
development, $22,000 for office rent, $20,000 for travel, $11,000 for 
an acreage survey, $8,430 for the reserve for contingency, and $6,500 
each for office supplies and data processing. Budgeted expenses for 
these items in 1995-96 were $131,320, $30,000, $22,000, $20,000, 
$10,500, $19,310, $5,000, and $3,500, respectively.
    The assessment rate recommended by the Committee was derived by 
dividing anticipated expenses by expected shipments of California dried 
prunes. Dried prune shipments for the year are estimated at 189,000 
salable tons which should provide $283,500 in assessment income. Income 
derived from handler assessments will be adequate to cover budgeted 
expenses. Any funds not expended by the Committee during a crop year 
may be used, pursuant to Sec. 993.81(c), for a period of five months 
subsequent to that crop year. At the end of such period, the excess 
funds are returned or credited to handlers.
    This action will reduce the assessment obligation imposed on 
handlers. While this rule will impose some additional costs on 
handlers, the costs are in the form of uniform assessments on all 
handlers. Some of the additional costs may be passed on to producers. 
However, these costs will be offset by the benefits derived from the 
operation of the marketing order. Therefore, the AMS has determined 
that this rule will not have a significant economic impact on a 
substantial number of small entities. Interested persons are invited to 
submit information on the regulatory and informational impacts of this 
action on small businesses.
    The assessment rate established in this rule will continue in 
effect indefinitely unless modified, suspended, or terminated by the 
Secretary upon recommendation and information submitted by the 
Committee or other available information.
    Although this assessment rate is effective for an indefinite 
period, the Committee will continue to meet prior to or during each 
crop year to recommend a budget of expenses and

[[Page 39844]]

consider recommendations for modification of the assessment rate. The 
dates and times of Committee meetings are available from the Committee 
or the Department. Committee meetings are open to the public and 
interested persons may express their views at these meetings. The 
Department will evaluate Committee recommendations and other available 
information to determine whether modification of the assessment rate is 
needed. Further rulemaking will be undertaken as necessary. The 
Committee's 1996-97 budget and those for subsequent crop years will be 
reviewed and, as appropriate, approved by the Department.
    After consideration of all relevant material presented, including 
the information and recommendation 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 rule 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 
1996-97 crop year begins on August 1, 1996, and the marketing order 
requires that the rate of assessment for each crop year apply to all 
assessable dried prunes handled during such crop year; (3) handlers are 
aware of this action which was unanimously recommended by the Committee 
at a public meeting and is similar to other assessment rate 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 rule.

List of Subjects in 7 CFR Part 993

    Marketing agreements, Plums, Prunes, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 993 is 
amended as follows:

PART 993--DRIED PRUNES PRODUCED IN CALIFORNIA

    1. The authority citation for 7 CFR part 993 continues to read as 
follows:

    Authority: 7 U.S.C. 601-674.

    Note: This section will appear in the Code of Federal 
Regulations.
    2. A new Subpart--Assessment Rates and a new Sec. 993.347 are added 
to read as follows:

Subpart--Assessment Rates


Sec. 993.347  Assessment rate.

    On and after August 1, 1996, an assessment rate of $1.50 per 
salable ton is established for California dried prunes.

    Dated: July 25, 1996.
Sharon Bomer Lauritsen,
Acting Director, Fruit and Vegetable Division.
[FR Doc. 96-19376 Filed 7-30-96; 8:45 am]
BILLING CODE 3410-02-P