[Federal Register Volume 63, Number 243 (Friday, December 18, 1998)]
[Proposed Rules]
[Pages 70063-70065]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-33573]
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Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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Federal Register / Vol. 63, No. 243 / Friday, December 18, 1998 /
Proposed Rules
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 993
[Docket No. FV99-993-1 PR]
Dried Prunes Produced in California; Increased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
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SUMMARY: This rule would increase the current assessment rate from
$2.16 to $3.28 per ton of salable dried prunes for the Prune Marketing
Committee (Committee) under Marketing Order No. 993 for the 1998-99 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 increased assessment rate
is needed because the assessable tonnage is expected to be 99,750
salable tons, or 38 percent less than the Committee's initial estimate
for 1998-99. Increasing the assessment rate to $3.28 per ton of salable
dried prunes would allow the Committee to meet its 1998-99 expenses and
to operate for the first three months of the 1999-2000 crop year before
monies become available from that year's assessments. The higher
assessment rate would apply for the entire 1998-99 crop year, which
began August 1 and ends July 31. The assessment rate would remain in
effect indefinitely unless modified, suspended, or terminated.
DATES: Comments must be received by December 28, 1998.
ADDRESSES: Interested persons are invited to submit written comments
concerning this rule. Comments must be sent 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; or E-mail:
[email protected]. 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
Richard P. Van Diest, Marketing Specialist, California Marketing Field
Office, Fruit and Vegetable Programs, AMS, USDA, 2202 Monterey Street,
suite 102B, Fresno, California 93721; telephone (559) 487-5901; Fax
(559) 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, or obtain a guide on complying with
fruit, vegetable, and specialty crop marketing agreements and orders 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, or E-mail: Jay__N__G[email protected]. You may view the marketing
agreement and order small business compliance guide at the following
web site: http://www.ams.usda.gov/fv/moab.html.
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 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
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 will be applicable to all assessable
dried prunes beginning on August 1, 1998, and continue 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 would increase the assessment rate established for the
Committee for the 1998-99 and subsequent crop years from $2.16 per ton
to $3.28 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 1998-99 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 unless modified,
suspended, or terminated by
[[Page 70064]]
the Secretary upon recommendation and information submitted by the
Committee or other information available to the Secretary.
The Committee met on December 1, 1998, and unanimously recommended
to reduce its 1998-99 budget from $348,840 to $327,180 and increase the
current assessment rate from $2.16 to $3.28 per ton of salable dried
prunes. The assessment rate of $2.16 per ton was approved by the
Department in a final rule published in the Federal Register on October
2, 1998 (63 FR 52959). The $1.22 per ton increase in the assessment
rate to $3.28 per ton is needed to allow the Committee to meet its
1998-99 expenses and to operate for the first three months of the 1999-
2000 crop year before monies become available from next year's
assessments. The California Agricultural Statistical Service originally
estimated a 170,000 ton crop (161,500 salable tons) for the 1998-99
crop year. Due to unusually cool and wet weather conditions caused by
the El Nino this season, the 1998-99 crop harvest is about four weeks
late, of poor quality, and approximately 50 percent less than normal
size. The Committee now expects the salable prune tonnage to be 99,750
salable tons, or 38 percent less than the Committee's initial estimate
for 1998-99.
The following table compares major budget expenditures recommended
by the Committee on June 25, 1998, and major budget expenditures in the
revised budget recommended on December 1, 1998.
------------------------------------------------------------------------
($1,000)
Budget expense categories -----------------------
6/25/98 12/1/98
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Salaries, Wages & Benefits...................... 191.5 189.7
Research & Development.......................... 30 0
Office Rent..................................... 23 23
Travel.......................................... 21 18.5
Acreage Survey.................................. 21 0
Reserve (Contingencies)......................... 9.14 50.93
Equipment Rental................................ 9 9
Data Processing................................. 8 3.85
Stationary & Printing........................... 5.5 5
Office Supplies................................. 5 5
Postage & Messenger............................. 5 5
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The assessment rate recommended by the Committee was derived by
dividing the reduced expenses by its reduced estimate of salable
California dried prunes. Production of dried prunes for the year is
estimated at 99,750 salable tons which should provide $327,180 in
assessment income. Interest income also will be available to cover
anticipated expenses. The Committee is authorized to use excess
assessment funds from the 1997-98 crop year (currently estimated at
$58,088) for up to five months beyond the end of the crop year to meet
1998-99 crop year expenses. At the end of the five months, the
Committee refunds or credits excess funds to handlers (Sec. 993.81(c)).
Income derived from handler assessments, along with interest income,
would be adequate to cover budgeted expenses.
The proposed assessment rate would 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 would be in effect for an indefinite
period, the Committee would 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 would
evaluate Committee recommendations and other available information to
determine whether modification of the assessment rate is needed.
Further rulemaking would be undertaken as necessary. The Committee's
1998-99 budget and those for subsequent crop years would 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 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 1,250 producers of dried prunes 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 less than $500,000, and small agricultural
service firms are defined as those whose annual receipts are less than
$5,000,000.
An updated prune industry profile shows that 8 of the 20 handlers
(40 percent) shipped over $5,000,000 of dried prunes and could be
considered large handlers by the Small Business Administration. Twelve
of the 20 handlers (60 percent) shipped under $5,000,000 of dried
prunes and could be considered small handlers. An estimated 90
producers, or about 7 percent of the 1,250 total producers, would be
considered large growers with annual income over $500,000. The majority
of handlers and producers of California dried prunes may be classified
as small entities.
This rule would increase the current assessment rate established
for the Committee and collected from handlers for the 1998-99 and
subsequent crop years from $2.16 per ton to $3.28 per ton of salable
dried prunes. The Committee unanimously recommended 1998-99
expenditures of $327,180 and an assessment rate of $3.28 per ton of
salable dried prunes. The proposed assessment rate of $3.28 is $1.22
higher than the current 1998-99 rate (63 FR 52959, October 2, 1998).
The quantity of assessable dried prunes for the 1998-99 crop year is
now estimated at 99,750 salable tons. Thus, the $3.28 rate should
provide $327,180 in assessment income and be adequate to meet this
year's expenses. Interest income also would be available to cover
budgeted expenses if the 1998-99 expected assessment income falls
short.
The following table compares major budget expenditures recommended
by the Committee on June 25, 1998, with major budget expenditures in
the revised budget recommended on December 1, 1998.
------------------------------------------------------------------------
($1,000)
Budget expense categories -----------------------
6/25/98 12/1/98
------------------------------------------------------------------------
Salaries, Wages & Benefits...................... 191.5 189.7
Research & Development.......................... 30 0
Office Rent..................................... 23 23
Travel.......................................... 21 18.5
Acreage Survey.................................. 21 0
Reserve (Contingencies)......................... 9.14 50.93
Equipment Rental................................ 9 9
Data Processing................................. 8 3.85
Stationary & Printing........................... 5.5 5
Office Supplies................................. 5 5
Postage & Messenger............................. 5 5
------------------------------------------------------------------------
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Due to unusually cool and wet weather conditions caused by the El
Nino this season, the 1998-99 crop harvest is about four weeks late, of
poor quality, and approximately 50 percent less than normal size. At
its December 1, 1998, meeting, the Committee reduced the California
Agricultural Statistical Service's dried prune crop estimate for 1998-
99 from 170,000 tons (161,500 salable tons) to 103,000 tons (99,750
salable tons).
The Committee reviewed and unanimously recommended 1998-99
expenditures of $327,180. The assessment rate of $3.28 per ton of
salable dried prunes was then determined by dividing the total
recommended budget by the reduced estimate for salable dried prunes.
The Committee is authorized to use excess assessment funds from the
1997-98 crop year (currently estimated at $58,088) for up to five
months beyond the end of the crop year to fund 1998-99 crop year
expenses. At the end of the five months, the Committee refunds or
credits excess funds to handlers (Sec. 993.81(c)). Anticipated
assessment income and interest income during 1998-99 would be adequate
to cover authorized expenses.
Recent price information indicates that the grower price for the
1998-99 season should average about $800 per salable ton of dried
prunes. Based on estimated shipments of 99,750 salable tons, assessment
revenue during the 1998-99 crop year is expected to be less than 1
percent of the total expected grower revenue.
This action would increase the assessment obligation imposed on
handlers. While assessments impose some additional costs on handlers,
the costs are minimal and uniform on all handlers. Some of the
additional costs may be passed on to producers. However, these costs
would 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 December 1, 1998, 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 proposed rule would impose no 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 rule.
A 10-day comment period is provided to allow interested persons to
respond to this proposed rule. Ten days is deemed appropriate because:
(1) The 1998-99 crop year began on August 1, 1998, and the marketing
order requires that the rate of assessment for each crop year apply to
all assessable dried prunes handled during such crop year; (2) the
Committee needs to have sufficient funds to pay its expenses which are
incurred on a continuous basis; (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) the Committee's excess funds are nearly exhausted and the
assessment increase must be implemented promptly so the Committee can
collect assessments based on the higher rate and meet its financial
obligations.
List of Subjects in 7 CFR Part 993
Marketing agreements, Plums, Prunes, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 993 is
proposed to be amended as follows:
PART 993--DRIED PRUNES PRODUCED IN CALIFORNIA
1. The authority citation for 7 CFR part 993 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
2. Section 993.347 is proposed to be revised to read as follows:
Sec. 993.347 Assessment rate.
On and after August 1, 1998, an assessment rate of $3.28 per ton is
established for California dried prunes.
Dated: December 14, 1998.
Robert C. Keeney,
Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 98-33573 Filed 12-17-98; 8:45 am]
BILLING CODE 3410-02-P