[Federal Register Volume 61, Number 238 (Tuesday, December 10, 1996)]
[Rules and Regulations]
[Pages 64959-64960]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-31350]



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 Rules and Regulations
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  Federal Register / Vol. 61, No. 238 / Tuesday, December 10, 1996 / 
Rules and Regulations  

[[Page 64959]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 920

[Docket No. FV96-920-3 FIR]


Kiwifruit Grown in California; Reduction of Reporting 
Requirements

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: The Department of Agriculture (Department) is adopting as a 
final rule, without change, the provisions of an interim final rule 
reducing 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 final rule decreases the 
reporting burden on such handlers while maintaining the information 
collection necessary for the efficient operation of the program.

EFFECTIVE DATE: January 9, 1997.

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. 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 final 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.
    This rule finalizes a reduction in 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 should not inhibit the effective operation 
of the order. It is estimated that less than 100,000 tray equivalents 
will 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 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. These handlers 
will not be required to file biweekly inventory reports and will be 
required to file shipment reports less frequently. It is estimated that 
the reporting burden for each of these 20 handlers will decrease by an 
average of 12 hours per year, for a total reduction of 240 hours.

[[Page 64960]]

    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.
    Therefore, the AMS has determined that this action will not have a 
significant economic impact on a substantial number of small entities.
    An interim final rule was issued on September 27, 1996, and 
published in the Federal Register (61 FR 51575, October 3, 1996), with 
an effective date of October 4, 1996. That rule amended Sec. 920.160 
(a) and (b), of the rules and regulations in effect under the order. 
That rule provided a 30-day comment period which ended November 4, 
1996. No comments were received.
    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. Prior to the effective 
date of the interim final rule, section 920.160(a) of the order's rules 
and regulations required 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 had to 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 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 does 
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 final 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.
    After consideration of all relevant material presented, the 
information and recommendation submitted by the Committee, and other 
information, it is found that finalizing the interim final rule, 
without change, as published in the Federal Register (61 51575, October 
3, 1996) will tend to effectuate the declared policy of the Act.

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

    Accordingly, the interim final rule amending 7 CFR part 920 which 
was published at 61 FR 51575 on October 3, 1996, is adopted as a final 
rule without change.

    Dated: December 4, 1996.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 96-31350 Filed 12-9-96; 8:45 am]
BILLING CODE 3410-02-P