[Federal Register Volume 64, Number 145 (Thursday, July 29, 1999)]
[Proposed Rules]
[Pages 41045-41047]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-19352]


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 Proposed Rules
                                                 Federal Register
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 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. 64, No. 145 / Thursday, July 29, 1999 / 
Proposed Rules  

[[Page 41045]]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 993

[Docket No. FV99-993-3 PR]


Dried Prunes Produced in California; Decreased Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This rule would decrease the current assessment rate from 
$3.28 to $2.00 per ton of salable dried prunes established for the 
Prune Marketing Committee (Committee) under Marketing Order No. 993 for 
the 1999-2000 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 assessment rate 
decrease is possible because the 1999-2000 assessable tonnage is 
expected to total 173,700 salable tons (74 percent higher than last 
crop year). The $2.00 assessment rate would allow the Committee to meet 
its 1999-2000 expenses. The crop year begins 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 August 30, 1999.

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) 720-5698; 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: Toni Sasselli, 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) 720-5698. Small businesses may request information 
on complying 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, P.O. Box 96456, room 2525-S, 
Washington, DC 20090-6456; telephone: (202) 720-2491, Fax: (202) 720-
5698, or E-mail: Jay.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 proposed herein would be applicable to all 
assessable dried prunes beginning on August 1, 1999, 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 decrease the assessment rate established for the 
Committee for the 1999-2000 and subsequent crop years from $3.28 per 
ton to $2.00 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 the Secretary upon recommendation and 
information submitted by the Committee or other information available 
to the Secretary.
    The Committee met on June 29, 1999, and unanimously recommended to

[[Page 41046]]

increase its 1999-2000 budget from $327,180 to $347,400 and decrease 
the current assessment rate from $3.28 to $2.00 per ton of salable 
dried prunes. Even with the increased budget, the $1.28 per ton 
decrease in the assessment rate to $2.00 per ton would allow the 
Committee to meet its 1999-2000 expenses. The California Agricultural 
Statistical Service estimates a 180,000 ton crop during the 1999-2000 
crop year, of which 6,300 tons are not expected to be salable because 
of size or quality, leaving a balance of 173,700 salable tons. This is 
a 74 percent increase in salable tonnage from last year and allows the 
Committee to recommend lowering its assessment rate.
    The following table compares major budget expenditures recommended 
by the Committee on June 29, 1999, and major budget expenditures in the 
revised budget recommended on December 1, 1998.

------------------------------------------------------------------------
                                                     ($1,000)
        Budget expense categories        -------------------------------
                                              1998-99        1999-2000
------------------------------------------------------------------------
Salaries, Wages and Benefits............          189.7          201.265
Research and Development................            0             30
Office Rent.............................           23             24
Travel..................................           18.5           21
Reserve (Contingencies).................           50.93          16.735
Equipment Rental........................            9              9.5
Data Processing.........................            3.85           5
Stationary and Printing.................            5              5.5
Office Supplies.........................            5              5
Postage and Messenger...................            5              7
------------------------------------------------------------------------

    The assessment rate recommended by the Committee was derived by 
dividing anticipated expenses by the estimated salable tons of 
California dried prunes. Production of dried prunes for the year is 
estimated at 173,700 salable tons which should provide $347,400 in 
assessment income. Income derived from handler assessments would be 
adequate to cover budgeted expenses. Interest income also would be 
available if assessment income is reduced for some reason. The 
Committee is authorized to use excess assessment funds from the 1998-99 
crop year (currently estimated at $51,857) for up to 5 months beyond 
the end of the crop year to meet 1999-2000 crop year expenses. At the 
end of the 5 months, the Committee refunds or credits excess funds to 
handlers (Sec. 993.81(c)).
    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 
1999-2000 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.
    Currently the 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 decrease the current assessment rate established 
for the Committee and collected from handlers for the 1999-2000 and 
subsequent crop years from $3.28 per ton to $2.00 per ton of salable 
dried prunes. The Committee unanimously recommended 1999-2000 
expenditures of $347,400 and an assessment rate of $2.00 per ton of 
salable dried prunes. The proposed assessment rate of $2.00 is $1.28 
lower than the current 1998-99 rate (64 FR 3621, January 25, 1999). The 
quantity of assessable dried prunes for the 1999-2000 crop year is now 
estimated at 173,700 salable tons. Thus, the $2.00 rate should provide 
$347,400 in assessment income and be adequate to meet this year's 
expenses. Interest income also would be available to cover budgeted 
expenses if the 1999-2000 expected assessment income falls short.
    The following table compares major budget expenditures recommended 
by the Committee on June 29, 1999, with major budget expenditures in 
the revised budget recommended on December 1, 1998.

[[Page 41047]]



------------------------------------------------------------------------
                                                     ($1,000)
        Budget expense categories        -------------------------------
                                              1998-99        1999-2000
------------------------------------------------------------------------
Salaries, Wages and Benefits............          189.7          201.265
Research and Development................            0             30
Office Rent.............................           23             24
Travel..................................           18.5           21
Reserve (Contingencies).................           50.93          16.735
Equipment Rental........................            9              9.5
Data Processing.........................            3.85           5
Stationery and Printing.................            5              5.5
Office Supplies.........................            5              5
Postage and Messenger...................            5              7
------------------------------------------------------------------------

    The Committee reviewed and unanimously recommended 1999-2000 
expenditures of $347,400. The assessment rate of $2.00 per ton of 
salable dried prunes was then determined by dividing the total 
recommended budget by the estimated salable dried prunes. The Committee 
is authorized to use excess assessment funds from the 1998-99 crop year 
(currently estimated at $51,857) for up to 5 months beyond the end of 
the crop year to fund 1999-2000 crop year expenses. At the end of the 5 
months, the Committee refunds or credits excess funds to handlers 
(Sec. 993.81(c)). Anticipated assessment income and interest income 
during 1999-2000 would be adequate to cover authorized expenses.
    Recent price information indicates that the grower price for the 
1999-2000 season should average above $850 per salable ton of dried 
prunes. Based on estimated shipments of 173,700 salable tons, 
assessment revenue during the 1999-2000 crop year is expected to be 
less than 1 percent of the total expected grower revenue.
    This action would decrease the assessment obligation imposed on 
handlers. Assessments are applied uniformly on all handlers, and some 
of the costs may be passed on to producers. However, decreasing the 
assessment rate would reduce the burden on handlers, and may reduce the 
burden on producers. 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 29, 1999, 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 30-day comment period is provided to allow interested persons to 
respond to this proposed rule. Thirty days is deemed appropriate 
because: (1) The 1999-2000 crop year begins on August 1, 1999, 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 proposed rule would decrease the assessment rate for assessable 
prunes beginning with the 1999-2000 crop year; and (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.

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 revised to read as follows:


Sec. 993.347  Assessment rate.

    On and after August 1, 1999, an assessment rate of $2.00 per ton is 
established for California dried prunes.

    Dated: July 23, 1999.
Robert C. Keeney,
Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 99-19352 Filed 7-28-99; 8:45 am]
BILLING CODE 3410-02-P