[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
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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
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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.
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($1,000)
Budget expense categories -------------------------------
1998-99 1999-2000
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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
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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.
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------------------------------------------------------------------------
($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