[Federal Register Volume 64, Number 237 (Friday, December 10, 1999)]
[Proposed Rules]
[Pages 69204-69206]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-32011]


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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. 237 / Friday, December 10, 1999 / 
Proposed Rules  

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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 989

[Docket No. FV00-989-1 PR]


Raisins Produced From Grapes Grown in California; Changes in 
Reporting Requirements

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This proposal invites comments on changes to the reporting 
requirements specified under the administrative rules and regulations 
of the Federal marketing order for California raisins (order). The 
order regulates the handling of raisins produced from grapes grown in 
California and is administered locally by the Raisin Administrative 
Committee (Committee). This rule would make minor changes to two 
reports submitted by handlers regarding the receipt and disposition of 
non-California raisins (raisins produced from grapes grown outside 
California). The Committee uses these reports to track non-California 
raisins and help ensure that only California raisins are used in 
programs authorized under the order. These changes would reduce the 
reporting burden on handlers and provide the Committee with better 
information on non-California raisins.

DATES: Comments must be received by February 8, 2000.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposal. 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]. All comments should reference the docket 
number and the date and page number of this issue of the Federal 
Register and will be made available for public inspection in the Office 
of the Docket Clerk during regular business hours.

FOR FURTHER INFORMATION CONTACT: Maureen T. Pello, 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, or 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. 989 (7 CFR part 989), both as amended, 
regulating the handling of raisins produced from grapes grown in 
California, hereinafter referred to as the ``order.'' The order is 
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. This rule is not intended to have retroactive effect. 
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. A 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 in equity 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 proposal invites comments on changes to the reporting 
requirements specified under the order. This rule would make minor 
modifications to two reports submitted by handlers regarding the 
receipt and disposition of non-California raisins. The Committee 
collects these reports to track non-California raisins and help ensure 
that only California raisins are used in programs authorized under the 
order. These changes would reduce the reporting burden on handlers and 
provide the Committee with better information on non-California 
raisins. This action was unanimously recommended by the Committee at a 
meeting on November 10, 1999.
    Section 989.73(d) of the order provides authority for the 
Committee, with the approval of the Secretary, to request handlers to 
furnish to the Committee such other information as may be necessary to 
enable it to exercise its powers and perform its duties. Handlers are 
required to submit various reports regarding California raisins, 
including receipts, disposition, transfers to other handlers, and the 
like. This information is used by the Committee in making various 
program decisions such as those regarding volume regulation and the 
handler assessment rate for funding program activities.
    In addition, Sec. 989.173 requires handlers to report to the 
Committee their receipt and disposition of raisins produced from grapes 
grown outside the State of California. Authority to collect information 
on raisins other than those produced in California was added to the 
regulations in 1990 to help ensure that only California raisins are 
used in various programs operated under the order.
    For example, an export program is authorized under the order to 
promote the sale of California raisins in export markets. This program 
is usually in effect when volume regulation is implemented under the 
order. When volume regulation is in effect, a certain

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percentage of the crop may be sold by handlers to any market (free 
tonnage) while the remaining percentage must be held by handlers in a 
reserve pool (or reserve) for the account of the Committee. Under the 
export program, handlers may receive raisins, at a reduced price, or 
cash back from the reserve pool to blend down the cost of the exported 
raisins, allowing handlers to be price competitive in export markets 
(prices in export markets are generally lower than the domestic 
market). The Committee wants to ensure that only California raisins are 
utilized in this program.
    Paragraph (b)(7) of Sec. 989.173 requires handlers to report 
receipts of non-California raisins. This information is reported on 
Form No. 500 and is due to the Committee on the eighth day of each 
month. Currently, handlers must categorize the net weight (pounds) of 
such raisins received as either natural condition (raw product) or 
packed (processed raisins) for the current month as well as a 
cumulative quantity from August 1, the beginning of the crop year.
    The Committee recommended that such receipts not be categorized as 
natural condition or packed. This information is contained within other 
supporting documentation that handlers must also submit with their 
receipt report. Thus, the Committee would like to eliminate this 
duplication.
    Paragraph (c)(3) of Sec. 989.173 requires handlers to report the 
disposition of non-California raisins. This information is reported on 
Form No. 501 and is also due to the Committee on the eighth day of each 
month. Currently, handlers must report whether such raisins were 
disposed of in cartons, bags, or as bulk raisins. However, Committee 
staff has not found these categories useful in tracking non-California 
raisins. Thus, the Committee recommended eliminating this requirement.
    In addition, the Committee recommended adding the requirement that 
handlers report the area of origin (country or state) of non-California 
raisins on the disposition report. Area of origin would help Committee 
staff match the disposition reports with the receipt reports, which 
already ask for area of origin. The Committee would thus be better able 
to track the inventory of non-California raisins.
    These minor changes recommended by the Committee would reduce the 
reporting burden on handlers receiving and disposing of non-California 
raisins. Requiring handlers to report on their disposition form the 
origin of non-California raisins would allow the Committee to better 
track the inventory of such raisins. Accordingly, appropriate changes 
are proposed to paragraphs (b)(7) and (c)(3)(iv) of Sec. 989.173.

Initial Regulatory Flexibility Analysis and the Paperwork Reduction 
Act

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA), the Agricultural Marketing Service (AMS) has considered the 
economic impact of this action 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 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 20 handlers of California raisins who are 
subject to regulation under the order and approximately 4,500 raisin 
producers in the regulated area. Small agricultural service firms have 
been defined by the Small Business Administration (13 CFR 121.601) as 
those having annual receipts of less than $5,000,000, and small 
agricultural producers are defined as those having annual receipts of 
less than $500,000. Thirteen of the 20 handlers subject to regulation 
have annual sales estimated to be at least $5,000,000, and the 
remaining 7 handlers have sales less than $5,000,000, excluding 
receipts from any other sources. No more than 7 handlers, and a 
majority of producers, of California raisins may be classified as small 
entities.
    This rule would change the reporting requirements specified in 
paragraphs (b) and (c) of Sec. 989.173 regarding the receipt and 
disposition, respectively, of raisins produced from grapes grown 
outside the State of California. Handlers would no longer have to 
report to the Committee whether such raisins were received as natural 
condition or packed raisins, nor would handlers have to report whether 
such raisins were disposed of in cartons, bags or as bulk raisins. 
Handlers would have to report additional information, specifically, the 
area of origin (country or state) of such raisins on their disposition 
reports. Authority for these changes is provided in Sec. 989.73(d) of 
the order.
    Regarding the impact of the proposed action on affected entities, 
this action would reduce, in the aggregate, the reporting and 
recordkeeping burden on handlers who receive and dispose of non-
California raisins. The Committee estimates that 11 handlers receive 
and dispose of non-California raisins each year. It is estimated that 
it would take each handler about 4 minutes to complete each revised 
receipt report (1 minute less than that required for the current 
receipt report). The total annual burden for such receipt reports would 
be reduced from 11 hours to about 8.8 hours. Furthermore, it is 
estimated that it would take each handler about 5 minutes to complete 
each revised disposition report (the same as required for the current 
disposition report). The total annual burden for such disposition 
reports would remain at about 11 hours.
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the information collection requirements contained in this 
rule are being submitted to the Office of Management and Budget. 
Existing requirements have been assigned OMB No. 0581-0178. As with 
other similar marketing order programs, reports and forms are 
periodically reviewed to reduce information requirements and 
duplication by industry and public sector agencies. Finally, the 
Department has not identified any relevant Federal rules that 
duplicate, overlap or conflict with this rule.
    An alternative to this action would be to not make the recommended 
reporting changes. However, the Committee determined that it would be 
best to proceed with its recommendation to reduce the reporting burden 
on handlers and obtain better information on tracking non-California 
raisins.
    In addition, the Committee held an Administrative Issues 
Subcommittee meeting on November 9, 1999, where this issue was 
deliberated. This meeting and the Committee's meeting on November 10, 
1999, were public meetings widely publicized throughout the raisin 
industry. All interested persons were invited to attend the meetings 
and participate in the industry's deliberations. Finally, interested 
persons are invited to submit information on the regulatory and 
informational impacts of these changes on small businesses.
    A small business guide on complying with fruit, vegetable, and 
specialty 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.
    A 60-day comment period is provided to allow interested persons to 
respond to this proposal. All written comments

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timely received will be considered before a final determination is made 
on this matter.

List of Subjects in 7 CFR Part 989

    Grapes, Marketing agreements, Raisins, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 989 is 
proposed to be amended as follows:

PART 989--RAISINS PRODUCED FROM GRAPES GROWN IN CALIFORNIA

    1. The authority citation for 7 CFR part 989 continues to read as 
follows:

    Authority: 7 U.S.C. 601-674.

    2. In Sec. 989.173, the second sentence in paragraph (b)(7) and 
paragraph (c)(3)(iv) are revised to read as follows:


Sec. 989.173  Reports.

* * * * *
    (b) * * *
    (7) * * * This report shall include: The varietal type of raisins 
received; the net weight (pounds) of raisins received for the current 
month as well as a cumulative quantity from August 1; and the state or 
country where the raisins were produced. * * *
    (c) * * *
    (3) * * *
    (iv) The area of origin (state or country) of the raisins shipped.
* * * * *
    Dated: December 6, 1999.
Robert C. Keeney,
Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 99-32011 Filed 12-9-99; 8:45 am]
BILLING CODE 3410-02-P