[Federal Register Volume 61, Number 196 (Tuesday, October 8, 1996)]
[Rules and Regulations]
[Pages 52684-52686]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-25708]


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DEPARTMENT OF AGRICULTURE
7 CFR Part 989

[Docket No. FV96-989-3 IFR]


Raisins Produced From Grapes Grown in California; Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: This interim final rule establishes an assessment rate for the 
Raisin Administrative Committee (Committee) under Marketing Order No. 
989 for the 1996-97 and subsequent crop years. The Committee is 
responsible for local administration of the marketing order which 
regulates the handling of raisins produced from grapes grown in 
California. Authorization to assess raisin 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 November 7, 
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, P.O. Box 96456, room 
2525-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 2525-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 2525-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. 989, both as amended (7

[[Page 52685]]

CFR part 989), regulating the handling of raisins produced from grapes 
grown 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 
raisin 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 
raisins 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 4,500 producers of raisins in the 
production area and approximately 20 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 of less than $500,000, and small agricultural 
service firms are defined as those whose annual receipts (from all 
sources) are less than $5,000,000. 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 California raisin 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 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 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 August 15, 1996, and unanimously recommended 
1996-97 expenditures of $1,463,000 and an assessment rate of $5.00 per 
ton of California raisins. In comparison, last year's budgeted 
expenditures were $1,500,000. The assessment rate of $5.00 is the same 
as last year's established rate. Major expenditures recommended by the 
Committee for the 1996-97 year compared to those budgeted for 1995-96 
(in parentheses) include: $485,000 for export program administration 
and related activities ($470,000); $412,000 for salaries and wages 
($471,000); $95,000 for Committee and office staff travel ($70,000); 
$80,000 reserve for contingencies ($142,115); $54,000 for general, 
medical, and Committee member insurance ($64,385); $49,500 for rent 
($43,000); $41,200 for group retirement ($23,000); $37,500 for 
membership dues/surveys ($15,500); $30,000 for office supplies 
($30,000); $28,000 for equipment ($20,000); $28,000 for payroll taxes 
($32,000); $22,000 for postage ($20,000); $15,000 for telephone 
($15,000); $15,000 for miscellaneous expenses ($15,000); $12,000 for 
repairs and maintenance ($10,000); $12,000 for Committee meeting 
expense ($7,500); $10,000 for research and communications ($23,000); 
and $5,000 for audit fees ($20,000). The Committee also recommended 
$15,000 for printing and $10,000 for software and programming for which 
no funding was recommended last year.
    The assessment rate recommended by the Committee was derived by 
dividing anticipated expenses by the expected quantity of assessable 
California raisins for the crop year. This rate, when applied to 
anticipated acquisitions of 292,600 tons, will yield $1,463,000 in 
assessment income, which should 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 all 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 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 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

[[Page 52686]]

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 began on August 1, 1996, and the marketing order 
requires that the rate of assessment for each crop year apply to all 
assessable raisins 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 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 subpart titled ``Assessment Rates'' consisting of 
Sec. 989.347 is added immediately following Sec. 989.221 to read as 
follows:

    Note: This section will appear in the Code of Federal 
Regulations.

Subpart--Assessment Rates


Sec. 989.347  Assessment rate.

    On and after August 1, 1996, an assessment rate of $5.00 per ton is 
established for assessable California raisins.

    Dated: October 1, 1996.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 96-25708 Filed 10-7-96; 8:45 am]
BILLING CODE 3410-02-P