[Federal Register Volume 62, Number 185 (Wednesday, September 24, 1997)]
[Rules and Regulations]
[Pages 49905-49907]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-25275]



 ========================================================================
 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. 62, No. 185 / Wednesday, September 24, 1997 / 
Rules and Regulations  

[[Page 49905]]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 993

[Docket No. FV97-993-1 FIR]


Dried Prunes Produced in California; Increased 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 
which increased the assessment rate for the Prune Marketing Committee 
(Committee) under Marketing Order No. 993 for the 1997-98 and 
subsequent crop years. The Committee is responsible for local 
administration of the marketing order which regulates the handling of 
dried prunes grown in California. Authorization to assess dried prune 
handlers enables the Committee to incur expenses that are reasonable 
and necessary to administer the program. The 1997-98 crop year covers 
the period August 1 through July 31. The assessment rate will continue 
in effect indefinitely unless modified, suspended, or terminated.

EFFECTIVE DATE: October 24, 1997.

FOR FURTHER INFORMATION CONTACT: Richard P. Van Diest, Marketing 
Specialist, or Diane Purvis, Marketing Assistant, California Marketing 
Field Office, Fruit and Vegetable Division, AMS, USDA, 2202 Monterey 
Street, Suite 102B, Fresno, California 93721; telephone: (209) 487-
5901, Fax: (209) 487-5906; or George Kelhart, Marketing Order 
Administration Branch, Fruit and Vegetable Division, AMS, USDA, Room 
2525-S, P.O. Box 96456, Washington, DC 20090-6456; telephone: (202) 
720-2491, 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, 
Room 2525-S, P.O. Box 96456, 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 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 is issuing this rule in conformance with Executive 
Order 12866.
    This final rule was reviewed under Executive Order 12988, Civil 
Justice Reform. Under the marketing order now in effect, California 
dried 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 be applicable to all assessable dried 
prunes beginning August 1, 1997, 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.
    This rule continues in effect the assessment rate of $1.60 per 
salable ton of dried prunes established for the Committee for the 1997-
98 and subsequent crop years. The assessment rate had been $1.50 per 
ton of salable dried prunes.
    The California dried 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 for 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.
    For the 1996-97 and subsequent crop years, the Committee 
recommended, and the Department approved, an assessment rate that would 
continue in effect from crop year to crop year indefinitely unless 
modified, suspended, or terminated by the Secretary upon recommendation 
and information submitted by the Committee or other information 
available to the Secretary.
    The Committee met on June 24, 1997, and unanimously recommended 
1997-98 expenditures of $331,960 and an assessment rate of $1.60 per 
salable ton of dried prunes. In comparison, last year's budgeted 
expenditures were $283,500; and the assessment rate was $1.50 per 
salable ton. The 1997-98 crop year assessment rate is increased $0.10. 
The primary reason for the higher budget is a comprehensive acreage 
survey of all California's producing counties. This acreage survey will 
help the industry estimate dried prune production and fulfill marketing 
plans.
    The major expenditures recommended by the Committee for the 1997-98 
crop year include: $176,300 for salaries, wages, and benefits; $30,000 
for research and development; $23,000 for office rent; $21,000 for 
travel; $20,000 for acreage survey; $8,060 for the reserve for 
contingency; $5,000 for office supplies; $9,000 for rental of 
equipment; and $8,000 for data processing. Budgeted expenses for major 
items in 1996-97 were $142,120,

[[Page 49906]]

$30,000, $22,000, $20,000, $11,000, $8,430, $6,500, $3,800, and $6,500, 
respectively.
    The assessment rate recommended by the Committee was derived by 
dividing anticipated expenses by its estimate of assessable California 
dried prunes for 1997-98. Assessable tonnage for the year is estimated 
at 207,475 salable tons which should provide $331,960 in assessment 
income. Income derived from handler assessments and interest income 
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.
    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 
1997-98 budget was approved by the Department on August 4, 1997, and 
those for subsequent crop years will be reviewed each year and, as 
appropriate, approved by the Department.
    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. Accordingly, AMS has 
prepared this final regulatory flexibility analysis.
    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 
California 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.
    Currently, as a percentage, about 34 percent of the handlers 
shipped over $5,000,000 worth of dried prunes and 66 percent of the 
handlers shipped under $5,000,000 worth of prunes. In addition, based 
on acreage, production, producer prices provided by the Committee, and 
the total number of dried prune producers, the average annual producer 
revenue is approximately $136,000. The majority of handlers and 
producers of California dried prunes may be classified as small 
entities.
    This rule continues the assessment rate of $1.60 per salable ton 
for the 1997-98 and subsequent crop years. The Committee unanimously 
recommended 1997-98 expenditures of $331,960 and an assessment rate of 
$1.60 per salable ton of California dried prunes. The assessment rate 
of $1.60 is $0.10 more than the 1996-97 rate. The Committee estimated 
assessable dried prunes in 1997-98 at 207,475 salable tons. Thus, the 
prior crop year assessment rate of $1.50 would only have provided 
$311,212 in revenue, which would not have been adequate to meet the 
Committee's 1997-98 budgeted expenses. The $1.60 rate should provide 
$331,960 in assessment income and be adequate to meet this year's 
expenses.
    The Committee's increase from $283,500 to $331,960 in budgeted 
expenses for 1997-98 results primarily from increases in the following 
line item categories--total personnel (salaries, wages, and benefits), 
rental of equipment, data processing, and acreage survey. Expenses for 
these items for 1997-98, with last year's budgeted expenses in 
parenthesis, are: total personnel--$176,300 ($142,120); rental of 
equipment--$9,000 ($3,800); data processing--$8,000 ($6,500); and 
acreage survey--$20,000 ($11,000). The increase will provide wage and 
benefit increases for the staff. The increase in acreage survey will 
allow the Committee to conduct a more comprehensive dried prune acreage 
survey than last year. The Committee considered the alternative of 
conducting a smaller scale survey at less cost, but decided that a 
survey of all California's producing counties was needed to help the 
industry make production and marketing plans. The Committee feels that 
all of the expense levels are appropriate and reasonable.
    Recent price information indicates that the grower price for the 
1997-98 season should average $800 per salable ton of dried prunes. 
Based on estimated shipments of 207,475 salable tons, the estimated 
assessment revenue for the 1997-98 crop year is less than 1 percent of 
the total expected grower revenue.
    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.
    While this rule imposes some additional costs on handlers, the 
costs are minimal and 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. In addition, the Committee's meeting 
was widely publicized throughout the California dried prune industry 
and all interested persons were invited to attend the meeting and 
participate in Committee deliberations on all issues. Like all 
Committee meetings, the June 24, 1997, meeting was a public meeting and 
all entities, both large and small, were able to express views on this 
issue.
    This rule does not impose any additional reporting or recordkeeping 
requirements on either small or large California dried prune handlers. 
As with all Federal marketing order programs, reports and forms are 
periodically reviewed to reduce information requirements and 
duplication by industry and public sector agencies.
    The Department has not identified any relevant Federal rules that 
duplicate, overlap, or conflict with this final rule.
    An interim final rule concerning this action was issued by the 
Department on July 29, 1997, put on display at the Office of the 
Federal Register on August 3, 1997, and published in the Federal 
Register on August 4, 1997 (62 FR 41808). Copies of the rule were 
mailed or sent via facsimile to all Committee members and dried prune 
handlers. Finally, the rule was made available through the Internet by 
the Office of the Federal Register. A 30-day comment period was 
provided. No comments on the interim rule were received.
    After consideration of all relevant material presented, including 
the information and recommendation submitted by the Committee and other

[[Page 49907]]

available information, it is hereby found that this rule, as 
hereinafter set forth, will tend to effectuate the declared policy of 
the Act.

List of Subjects in 7 CFR Part 993

    Dried prunes, Marketing agreements, Reporting and recordkeeping 
requirements.

PART 993--DRIED PRUNES PRODUCED IN CALIFORNIA

    Accordingly, the interim final rule amending 7 CFR part 993 which 
was published at 62 FR 41808 on August 4, 1997, is adopted as a final 
rule without change.

    Dated: September 17, 1997.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 97-25275 Filed 9-23-97; 8:45 am]
BILLING CODE 3410-02-P