[Federal Register Volume 63, Number 58 (Thursday, March 26, 1998)]
[Rules and Regulations]
[Pages 14601-14603]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-7941]



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 Rules and Regulations
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  Federal Register / Vol. 63, No. 58 / Thursday, March 26, 1998 / Rules 
and Regulations  

[[Page 14601]]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 925

[Docket No. FV98-925-1 FIR]


Grapes Grown in a Designated Area of Southeastern California; 
Temporary Suspension of Continuing Assessment Rate

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 
which suspended the continuing assessment rate for the Desert Grape 
Administrative Committee (Committee) under Marketing Order No. 925 for 
the 1998 fiscal period. 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.

EFFECTIVE DATE: April 27, 1998.

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, Technical Advisor, 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. 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, both as amended (7 CFR part 925), 
regulating the handling of grapes grown in 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 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 
continues to suspend 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 continues to temporarily suspend 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 continues to suspend 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 were formulated and discussed in a public meeting. Thus, all 
directly affected persons had an opportunity to participate and provide 
input.
    The Committee met on November 12, 1997, and unanimously recommended 
carrying over the 1997 reserve fund of almost $190,000, adopting a 
budget of $160,619, and suspending 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 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

[[Page 14602]]

suspending the assessment rate, but concluded that an assessment rate 
for 1998 would not be necessary because sufficient reserve funds and 
interest income would be available to meet 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; Sec. 925.42).
    The temporary suspension of the continuing assessment rate is 
effective only for the 1998 fiscal period. The assessment rate of $0.01 
per lug will apply again during the 1999 fiscal period, unless 
subsequent action to suspend or revise this rate is taken by the 
Department.
    Prior to the 1999 fiscal period, and prior to or during each 
successive fiscal period, the Committee will continue to meet 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 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 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 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 any other sources. In addition, 70 of the 80 
producers subject to regulation have annual sales of at least $500,000, 
excluding receipts from any other sources. The remaining 10 producers 
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 continues to suspend 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 
is 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 
is necessary for 1998 because funds in the reserve and interest income 
would be adequate to meet 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 
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; Sec. 925.42).
    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 were invited to submit information on the regulatory and 
informational impacts of this action on small businesses.
    This action imposes no additional reporting or recordkeeping 
requirements on either small or large California 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.
    An interim final rule concerning this action was published in the 
Federal Register on December 31, 1997 (62 FR 68150). Copies of that 
rule were also mailed or sent via facsimile to all grape handlers. 
Finally, the interim final rule was made available through the Internet 
by the Office of the Federal Register. A 60-day comment period was 
provided for interested persons to respond to the interim final rule. 
The comment period ended on March 2, 1998, and no comments were 
received.
    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 a 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 Sec. 925.215 
will apply again beginning January 1, 1999.

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

    Accordingly, the interim final rule amending 7 CFR part 925 which 
was published at 62 FR 68150 on December 31, 1997, is adopted as a 
final rule without change.


[[Page 14603]]


    Dated: March 20, 1998.
Robert C. Keeney,
Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 98-7941 Filed 3-25-98; 8:45 am]
BILLING CODE 3410-02-P