[Federal Register Volume 61, Number 193 (Thursday, October 3, 1996)]
[Rules and Regulations]
[Pages 51575-51577]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-25280]



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 Rules and Regulations
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  Federal Register / Vol. 61, No. 193 / Thursday, October 3, 1996 / 
Rules and Regulations  

[[Page 51575]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 920

[Docket No. FV96-920-3 IFR]


Kiwifruit Grown in California; Reduction of Reporting 
Requirements

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: This interim final rule reduces the reporting requirements for 
California kiwifruit handlers who ship less than 10,000 trays or tray 
equivalents per fiscal year. The changes in reporting requirements were 
unanimously recommended by the Kiwifruit Administrative Committee 
(Committee), the agency responsible for the local administration of the 
Federal marketing order for kiwifruit grown in California. This interim 
final rule decreases the reporting burden on such handlers while 
maintaining the information collection necessary for the efficient 
operation of the program.

DATES: Effective October 4, 1996; comments received by November 4, 1996 
will be considered prior to issuance of a final rule.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this rule. Comments must be sent in triplicate to the Docket 
Clerk, Fruit and Vegetable Division, AMS, USDA, room 2525-S, P.O. Box 
96456, Washington, DC 20090-6456, Fax # (202) 720-5698. All comments 
should reference the docket number and the date and page number of this 
issue of the Federal Register and will be made available for public 
inspection in the Office of the Docket Clerk during regular business 
hours. 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.

FOR FURTHER INFORMATION CONTACT: Kurt J. Kimmel, California Marketing 
Field Office, Marketing Order Administration Branch, F&V, AMS, USDA, 
2202 Monterey Street, suite 102B, Fresno, California 93721; telephone: 
(209) 487-5901, Fax # (209) 487-5906; or Charles L. Rush, Marketing 
Specialist, Marketing Order Administration Branch, F&V, AMS, USDA, room 
2522-S, P.O. Box 96456, Washington, DC 20090-6456; telephone: (202) 
720-5127, Fax # (202) 720-5698.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing Order 
No. 920 (7 CFR part 920), as amended, regulating the handling of 
kiwifruit grown in California, hereinafter referred to as the 
``order.'' This 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. This rule is not intended to have retroactive effect. 
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. A 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 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 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 65 handlers of kiwifruit who are subject to 
regulation under the marketing order and approximately 500 producers of 
kiwifruit in the regulated area. Small agricultural service firms have 
been defined by the Small Business Administration (13 CFR 121.601) as 
those having annual receipts of less than $5,000,000, and small 
agricultural producers are defined as those whose annual receipts are 
less than $500,000. The majority of kiwifruit handlers and producers 
may be classified as small entities. Interested persons are invited to 
submit information on the regulatory and informational impacts of this 
action on small businesses.
    This rule reduces the number of reports required to be filed by 
small kiwifruit handlers (those who handle less than 10,000 tray 
equivalents per year). The decrease in the number of reports required 
to be filed does not inhibit the effective operation of the order. It 
is estimated that less than 100,000 tray equivalents would be shipped 
by those eligible for the reduced reporting requirement, or 
approximately one percent of California kiwifruit production. A 
majority of these small volume handlers, eligible for the reduced 
reporting requirement, sell fruit for two to five growers. Generally, 
kiwifruit shipments are small and may consist of less than 50 trays at 
a time. Shipment information from these small volume handlers will be 
added into the total shipments at the end of each fiscal year. The lack 
of shipment information that will be provided by these handlers on a 
monthly basis is insignificant. The Committee is still able to levy

[[Page 51576]]

assessments on those handlers eligible for the reduced reporting 
requirement based on the information in the shipment reports that is 
still required twice per season.
    This rule directly benefits small kiwifruit handlers. It is 
anticipated that approximately 20 of the 65 handlers are eligible for 
the reduced reporting burden authorized by this rule. The range of 
volume of kiwifruit handled by kiwifruit handlers is extremely broad 
with some handlers handling as few as 50 tray equivalents and others 
over 1 million tray equivalents. The majority of handlers fall in the 
middle and on average ship between 100,000 and 800,000 tray 
equivalents.
    Based on available information, the AMS has determined that this 
action will not have a significant economic impact on a substantial 
number of small entities.
    Under the terms of the order, fresh market shipments of California 
kiwifruit are required to be inspected and are subject to grade, size, 
maturity, and pack and container requirements. In addition, the order 
authorizes the Committee to collect information from kiwifruit handlers 
in order to efficiently operate the program.
    The Committee met on June 12, 1996, and unanimously recommended 
reducing the reporting burden for handlers who ship less than 10,000 
tray equivalents per season. Such handlers, if they qualified with the 
committee, will no longer be required to complete biweekly inventory 
reports and will only be required to fill out a monthly shipment report 
twice per year.
    Section 920.60 of the order authorizes the Committee, subject to 
the approval of the Secretary, to request information from handlers 
necessary to perform its duties under the order. Section 920.160(a) of 
the order's rules and regulations requires a report of shipments to be 
filed with the Committee by the fifth day of the month following such 
shipment, or such other later time established by the Committee. This 
report is used to compile statistical information on shipments and to 
calculate assessments owed under the marketing order. Pursuant to 
Sec. 920.160(b) each handler must file a Kiwifruit Inventory Shipment 
System (KISS) report on the fifth and twentieth day of each month. The 
information collected in the KISS report is used to track inventories 
of California kiwifruit and provide inventory statistics, in aggregate, 
to the industry. Both of these reports are also required under the 
authority of the California Kiwifruit Commission (State Commission), 
which administers a State program.
    Prior to the 1995-96 season, the State Commission determined that 
the reporting burden of the KISS report and the shipment report was 
disproportionately impacting small volume handlers. As a result, the 
State Commission created an alternate reporting system, known as 
``Reporting EZ.'' It allows handlers who ship less than 10,000 tray 
equivalents per season to file the shipment report twice per season 
instead of monthly and exempts handlers from filing the KISS report.
    Similarly, this rule reduces the frequency that the shipment report 
is filed and eliminates the filing of a KISS report for those handlers 
that ship less than 10,000 trays or tray equivalents per fiscal year so 
that the ``Reporting EZ'' program is authorized under both the State 
program and the Federal order. Handlers shipping under 10,000 trays or 
tray equivalents per season will only have to fill out the shipment 
report twice per year. The first report is due January 5 or such other 
later time established by the Committee and includes information on 
fresh shipments from the beginning of the fiscal year (August 1 through 
December 31). The second shipment report is due the fifth day of the 
month following each handler's last shipment for the season and 
includes shipments from January 1 until the end of shipping season.
    In order for a handler to qualify for the ``Reporting EZ'' program, 
the Committee must make a determination prior to October 31 (near the 
beginning of the shipping season). The information that the Committee 
will use to determine whether a handler is qualified is available from 
the State Commission. The State Commission already requires handlers to 
submit information in order to determine whether a handler intends to 
ship under 10,000 tray equivalents per year. Thus, the Committee will 
not need to place any additional reporting burden on kiwifruit handlers 
in order to determine handler eligibility for the ``Reporting EZ'' 
program. The State Commission and the Committee have a written 
memorandum of understanding that provides for the sharing of 
information while keeping proprietary information confidential. Once 
the handler has qualified, the Committee will then notify handlers that 
they are eligible for the ``Reporting EZ'' program.
    The information collection requirements contained in the referenced 
sections have been previously approved by the Office of Management and 
Budget (OMB) under the provisions of the Paperwork Reduction Act (Pub. 
L. 104-13) and have been assigned OMB number 0581-0149.
    This rule reduces the reporting burden on approximately 20 handlers 
of kiwifruit who have been spending approximately 240 hours completing 
the shipment reports and the KISS reports.
    This rule invites comments on a reduction in the reporting 
requirements currently prescribed under the California kiwifruit 
marketing order. Any comments received will be considered prior to 
finalization of this rule.
    After consideration of all relevant material presented, the 
information and recommendation submitted by the Committee, and other 
information, it is found that this interim final rule 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) This rule relaxes the reporting requirements under the 
marketing order and should be implemented prior to the shipping season 
which begins October 1; (2) the Committee unanimously recommended these 
changes at a public meeting and interested parties had an opportunity 
to provide input; and (3) 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 920

    Kiwifruit, Marketing agreements, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 920 is 
amended as follows:

PART 920--KIWIFRUIT GROWN IN CALIFORNIA

    1. The authority citation for 7 CFR part 920 continues to read as 
follows:

    Authority: 7 U.S.C. 601-674.
    2. In Sec. 920.160 paragraphs (a) and (b) introductory text are 
revised to read as follows:


Sec. 920.160  Reports.

    (a) When requested by the Kiwifruit Administrative Committee, each 
shipper who ships kiwifruit, shall furnish a report of shipment and 
inventory data to the committee no later than the fifth day of the 
month following such shipment, or such other later time established by

[[Page 51577]]

the committee: Provided, That each shipper who ships less than 10,000 
trays, or the equivalent thereof, per fiscal year and has qualified 
with the committee shall furnish such report of shipment and inventory 
data to the committee twice per fiscal year. The first report shall be 
due no later than January 5 and the final report no later than the 
fifth day of the following month after such shipment is completed for 
the season, or such other later times established by the committee. 
Such report shall show:
    (1) The reporting period;
    (2) the name and other identification of the shipper;
    (3) the number of containers by type and weight by shipment 
destination category;
    (4) inventory at the end of the reporting period by container, and 
with respect to flats, the size of the kiwifruit;
    (5) the amount of kiwifruit lost in repack; and
    (6) the amount of fruit set aside for processing.
    (b) Kiwifruit Inventory Shipping System (KISS) form. Each handler, 
except such handlers that ship less than 10,000 trays, or the 
equivalent thereof, per season and have qualified with the committee, 
shall file with the committee the initial Kiwifruit Inventory Shipment 
System (KISS) form, which consists of three sections ``KISS/Add 
Inventory,'' ``KISS/Deduct Inventory,'' and ``KISS/Shipment,'' on or 
before December 5th, or such other later time as the committee may 
establish.
* * * * *
    Dated: September 27, 1996.
Sharon Bomer Lauritsen,
Acting Director, Fruit and Vegetable Division.
[FR Doc. 96-25280 Filed 10-2-96; 8:45 am]
BILLING CODE 3410-02-P