[Federal Register Volume 64, Number 180 (Friday, September 17, 1999)]
[Rules and Regulations]
[Pages 50426-50428]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-24239]



[[Page 50426]]

-----------------------------------------------------------------------

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 993

[Docket No. FV99-993-3 FR]


Dried Prunes Produced in California; Decreased Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This rule decreases the 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 will allow the Committee to meet its 1999-2000 
expenses. The crop year began August 1 and ends July 31. The assessment 
rate will remain in effect indefinitely unless modified, suspended, or 
terminated.

EFFECTIVE DATES: September 20, 1999.

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 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].

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, 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 decreases 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 
increasing its 1999-2000 budget from $327,180 to $347,400 and 
decreasing 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 allowed 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 1998-99 budget recommended on December 1, 1998.

------------------------------------------------------------------------
                                                       ($1,000)
          Budget expense categories          ---------------------------
                                                 1998-99      1999-2000
------------------------------------------------------------------------
Salaries, Wages & Benefits..................        189.7        201.265
Research & 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 & Printing.......................          5            5.5
Office Supplies.............................          5            5
Postage & Messenger.........................          5            7
------------------------------------------------------------------------

    The assessment rate recommended by the Committee was derived by 
dividing

[[Page 50427]]

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 will be adequate to cover budgeted 
expenses. Interest income also will 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 assessment rate established in this rule will 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 will be in effect for an indefinite 
period, the Committee will 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 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 
1999-2000 budget and those for subsequent crop years 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 1,250 producers of dried prunes in the 
production area and approximately 20 handlers subject to regulation 
under the marketing order. Small agricultural producers are 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, could 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 decreases the 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 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 will 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.

------------------------------------------------------------------------
                                                       ($1,000)
          Budget expense categories          ---------------------------
                                                 1998-99      1999-2000
------------------------------------------------------------------------
Salaries, Wages & Benefits..................        189.7        201.265
Research & 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 & Printing.......................          5            5.5
Office Supplies.............................          5            5
Postage & 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 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 will 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 decreases 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 reduces 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.
    This rule imposes 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

[[Page 50428]]

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 proposed rule concerning this action was published in the Federal 
Register on July 29, 1999 (64 FR 41045). Copies of the proposed rule 
were also mailed or sent via facsimile to all prune handlers. Finally, 
the proposal was made available through the Internet by the Office of 
the Federal Register. A 30-day comment period ending August 30, 1999, 
was provided for interested persons to respond to the proposal. No 
comments were received.
    A small business guide on complying with fruit, vegetable, and 
speciality crop marketing agreements and orders may be viewed at the 
following web site: http://www.ams.usda.gov/fv/moab.html. Any questions 
about the compliance guide should be sent to Jay Guerber at the 
previously mentioned address in the FOR FURTHER INFORMATION CONTACT 
section.
    After consideration of all relevant material presented, including 
the information and recommendation submitted by the Committee and other 
available information, it is hereby found that this rule, as 
hereinafter set forth, will tend to effectuate the declared policy of 
the Act.
    Pursuant to 5 U.S.C. 553, it also found and determined that good 
cause exists for not postponing the effective date of this rule until 
30 days after publication in the Federal Register because: (1) The 
Committee needs to collect assessments from handlers based on the lower 
rate as soon as possible to pay its expenses which are incurred on a 
continuous basis; (2) the 1999-2000 crop year began 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 
year; (3) handlers are aware of this rule which was recommended 
unanimously at a public meeting; and (4) a 30-day comment period was 
provided for in the proposed rule, and no comments were received.

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 
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: September 13, 1999.
Robert C. Keeney,
Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 99-24239 Filed 9-16-99; 8:45 am]
BILLING CODE 3410-02-P