[Federal Register Volume 62, Number 250 (Wednesday, December 31, 1997)]
[Rules and Regulations]
[Pages 68150-68152]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-34094]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 925
[Docket No. FV98-925-1 IFR]
Grapes Grown in a Designated Area of Southeastern California;
Temporary Suspension of Continuing Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim final rule with request for comments.
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SUMMARY: This rule suspends the continuing assessment rate for the
California Desert Grape Administrative Committee (Committee) under
Marketing Order No. 925 for the 1998 fiscal period. The fiscal period
begins January 1 and ends December 31. The Committee is responsible for
local administration of the marketing order, and recommended that no
handler assessments be collected in 1998. It made this recommendation
because it has enough reserve funds to cover 1998 fiscal year expenses
and expenses expected during the first several months of fiscal year
1999, and to keep its operating reserve within the maximum permitted
under the marketing order. The assessment rate will apply again during
fiscal year 1999 to cover expenses and to replenish the Committee's
reserve funds. That rate will continue in effect indefinitely unless
modified, suspended, or terminated.
DATES: Effective January 2, 1998. Comments received by March 2, 1998
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 Programs, AMS, USDA, Room 2525-S, P.O. Box
96456, Washington, DC 20090-6456; Fax: (202) 205-6632. 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: Diane Purvis, Marketing Assistant, or
Rose Aguayo, Marketing Specialist, California Marketing Field Office,
Fruit and Vegetable Programs, AMS, USDA, 2202 Monterey Street, Suite
102B, Fresno, California 93721; telephone: (209) 487-5901, Fax: (209)
487-5906; or George Kelhart, Marketing Order
[[Page 68151]]
Administrative Branch, Fruit and Vegetable Programs, AMS, USDA, Room
2525-S, P.O. Box 96456, Washington, DC 20090-6456; telephone: (202)
720-2491, Fax: (202) 205-6632. Small businesses may request information
on compliance with this regulation by contacting Jay Guerber, Marketing
Order Administration Branch, Fruit and Vegetable Programs, AMS, USDA,
Room 2525-S, P.O. Box 96456, Washington, DC 20090-6456; telephone:
(202) 720-2491, Fax: (202) 205-6632.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement and Order No. 925 (7 CFR part 925) regulating the handling of
grapes grown in a designated area of southeastern 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 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
grape handlers are subject to assessments. Funds to administer the
order are derived from such assessments. In 1997, an assessment rate of
$.01 per lug of grapes was fixed by the Secretary to continue in effect
indefinitely unless modified, suspended, or terminated. This action
suspends that assessment rate for the 1998 fiscal year. The assessment
rate again will apply in fiscal year 1999, and it will be applicable to
all assessable grapes beginning January 1, 1999, and continue in effect
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 temporarily suspends Sec. 925.215 of the order's rules
and regulations. Section 925.215 established an assessment rate of
$0.01 per lug for fiscal period 1997 and subsequent fiscal periods.
Continuous assessment rates remain in effect from fiscal period to
fiscal period indefinitely unless modified, suspended, or terminated by
the Secretary. This rule suspends the $0.01 assessment rate for the
1998 fiscal period.
Section 925.41 of the grape 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. In addition, Sec. 925.42 authorizes the use of
reserve funds to cover program expenses. The members of the Committee
are producers and handlers of California grapes. 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. Recommendations concerning the assessment
rate are formulated and discussed in a public meeting. Thus, all
directly affected persons have an opportunity to participate and
provide input.
The Committee met on November 12, 1997, and unanimously recommended
to carry over the 1997 reserve fund of almost $190,000, to adopt a
budget of $160,619, and to suspend the assessment rate of $0.01 per lug
of grapes for the 1998 fiscal period. The Committee determined that
sufficient funds would be available to meet the expected 1998 fiscal
period expenses, and to cover anticipated expenses during the first few
months of fiscal year 1999, before handler assessments are collected.
The Committee discussed alternatives to this rule, including not
suspending the assessment rate, but concluded that an assessment rate
will not be necessary as there will be sufficient reserve funds and
interest income to meet the 1998 fiscal period expenses, and early
season expenses in 1999. Also, the Committee recommended that the major
expenditures for the 1998 fiscal period should include $100,000 for
research, $25,000 for the sheriff's patrol, and $9,109 for the
manager's salary. Budgeted expenses for these items in 1997 were
$100,000 for research, $25,000 for compliance purposes, and $8,675 for
the manager's salary. Funds in the reserve will be kept within the
maximum permitted by the order (approximately one fiscal period's
expenses).
Although this assessment rate suspension only is effective for the
1998 fiscal period, the Committee will continue to meet prior to or
during each fiscal period to recommend a budget of expenses and
consider recommendations for modification of the continuing 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 1998 budget has been approved; and those for subsequent
fiscal periods will be reviewed 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 action on small entities. Accordingly, AMS has
prepared this initial 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 27 handlers of California grapes subject to
regulation under the marketing order and approximately 80 producers in
the production area. Small agricultural producers are defined by the
Small Business Administration (13 CFR 121.601) as those whose annual
receipts are less than $500,000, and small agricultural service firms
are defined as those whose annual receipts are less than $5,000,000.
Ten of the 27 handlers subject to regulation have annual grape sales of
at least $5,000,000, excluding receipts from any other sources. The
remaining 17 handlers have annual receipts less than $5,000,000,
excluding receipts from other sources. In addition, 70 of the 80
producers subject to regulation have annual sales of at least $500,000.
The remaining 10 producers
[[Page 68152]]
have annual sales less than $500,000, excluding receipts from any other
sources. Therefore, a majority of handlers and a minority of producers
are classified as small entities.
This rule suspends Sec. 925.215 of the order's rules and
regulations, which established an assessment rate of $0.01 per lug for
fiscal period 1997 and subsequent fiscal periods. This suspension will
be in effect for the 1998 fiscal period.
The Committee discussed alternatives to this rule, including not
suspending the assessment rate, but concluded that no assessment rate
will be necessary as there will be sufficient funds in the reserve and
interest income to meet the 1998 fiscal period's expenses, and expenses
for the first several months of fiscal year 1999. Also, the Committee
recommended that the major expenditures for the 1998 fiscal period
should include $100,000 for research, $25,000 for the sheriff's patrol,
and $9,109 for the manager's salary. Budgeted expenses for these items
in 1997 were $100,000 for research, $25,000 for compliance purposes,
and $8,675 for the manager's salary. Funds in the reserve will be kept
within the maximum permitted by the order (approximately one fiscal
period's expenses).
Handler costs will be reduced during the 1998 fiscal year, as
assessments will not be collected. The Committee's meeting was widely
publicized throughout the grape industry and all interested persons
were invited to attend the meeting and participate in Committee
deliberations on all issues. Like all Committee meetings, the November
12, 1997, meeting was a public meeting and all entities, both large and
small, were able to express views on this issue. Finally, interested
persons are invited to submit information on the regulatory and
informational impacts of this action on small businesses.
This action will not impose any additional reporting or
recordkeeping requirements on either small or large grape 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 rule.
After consideration of all relevant matter presented, including the
information and recommendation submitted by the Committee and other
available information, it is hereby found that the continuing
assessment rate on handlers during the 1998 fiscal period no longer
tends to effectuate the declared policy of the Act. The suspension
shall continue only through December 31, 1998, at which time it shall
terminate and the suspended assessment rate specified in section
925.215 will apply again beginning January 1, 1999.
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 action relieves restrictions on handlers by
suspending the assessment rate on handlers during the 1998 fiscal
period; (2) the 1998 fiscal period begins on January 1, 1998, and this
action should be effective as soon as possible to inform handlers that
the Secretary concurs with the Committee's recommendation; (3) handlers
are aware of this action which was unanimously recommended by the
Committee at a public meeting; and (4) this interim final rule provides
a 60-day comment period, and all comments timely received will be
considered prior to finalization of this rule.
List of Subjects in 7 CFR Part 925
Grapes, Marketing agreements, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 925 is
amended as follows:
PART 925--GRAPES GROWN IN A DESIGNATED AREA OF SOUTHEASTERN
CALIFORNIA
1. The authority citation for 7 CFR part 925 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
Sec. 925.215 [Suspended]
2. In Part 925, Sec. 925.215 is suspended in its entirety effective
January 1, 1998, through December 31, 1998.
Dated: December 23, 1997.
Sharon Bomer Lauritsen,
Acting Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 97-34094 Filed 12-30-97; 8:45 am]
BILLING CODE 3410-02-P