[Federal Register Volume 65, Number 188 (Wednesday, September 27, 2000)]
[Rules and Regulations]
[Pages 57941-57943]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-24776]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 989

[Docket No. FV00-989-5 IFR]


Raisins Produced From Grapes Grown in California; Decreased 
Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: This rule decreases the assessment rate established for the 
Raisin Administrative Committee (Committee) for the 2000-01 and 
subsequent crop years from $8.50 to $6.50 per ton of free tonnage 
raisins acquired by handlers, and reserve tonnage raisins released or 
sold to handlers for use in free tonnage outlets. The Committee locally 
administers the Federal marketing order which regulates the handling of 
raisins produced from grapes grown in California (order). Authorization 
to assess raisin handlers enables the Committee to incur expenses that 
are reasonable and necessary to administer the program. The crop year 
runs from August 1 through July 31. The assessment rate will remain in 
effect indefinitely unless modified, suspended, or terminated.

DATES: Effective September 28, 2000. Comments received by November 27, 
2000, will be considered prior to issuance of a final rule.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this rule. Comments must be sent to the Docket Clerk, 
Marketing Order Administration Branch, 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, or can be viewed at: http://www.ams.usda.gov/fv/moab.html.

FOR FURTHER INFORMATION CONTACT: Maureen T. Pello, Marketing 
Specialist, California Marketing Field Office, Marketing Order 
Administration Branch, 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

[[Page 57942]]

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: [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 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 
raisin 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 
raisins beginning on August 1, 2000, and continue until amended, 
suspended, or terminated. This rule will not preempt any State or local 
laws, 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 2000-01 and subsequent crop years from $8.50 to $6.50 
per ton of free tonnage raisins acquired by handlers, and reserve 
tonnage raisins released or sold to handlers for use in free tonnage 
outlets. The order authorizes volume control provisions that establish 
free and reserve percentages of raisins acquired by handlers. Free 
tonnage raisins may be sold by handlers to any outlet, and reserve 
tonnage raisins are held by handlers for the account of the Committee 
or released or sold to handlers for sale to free tonnage outlets. 
Reserve raisins held for the account of the Committee are not 
assessable. With projected assessable tonnage about 23,300 tons higher 
than last year's assessable tonnage, sufficient income should be 
generated at the lower assessment rate for the Committee to meet its 
anticipated expenses. This action was unanimously recommended by the 
Committee at a meeting on August 15, 2000.
    Sections 989.79 and 989.80, respectively, of the order provide 
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 raisins. They are familiar with 
the Committee's needs and with the costs of 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.
    A continuous assessment rate of $5.00 per ton was in effect for the 
1996-97 and 1997-98 crop years. Due to short crops in 1998-99 and 1999-
2000, the assessment rate for those years was raised to $8.50 per ton.
    Regarding the 2000-01 crop year, the Committee recommended 
decreasing the assessment rate to $6.50 per ton of assessable raisins 
to cover recommended administrative expenditures of $2,145,000. This 
compares to budgeted expenses of $2,482,000 for the 1999-2000 crop 
year. Major expenditures include $660,500 for export program 
administration and related activities, $477,700 for salaries, $476,300 
for contingencies, and $160,000 for compliance activities. Budgeted 
expenses for these items in 1999-2000 were $549,500, $425,000, 
$506,250, and $200,000, respectively.
    The recommended $6.50 per ton assessment rate was derived by 
dividing the $2,145,000 in anticipated expenses by an estimated 330,000 
tons of assessable raisins. The Committee recommended decreasing its 
assessment rate because the projected 2000-01 assessable tonnage of 
330,000 tons is about 23,300 tons higher than last year's actual 
assessed tonnage. Thus, sufficient income should be generated at the 
lower assessment rate for the Committee to meet its anticipated 
expenses. Pursuant to Sec. 989.81(a) of the order, any unexpended 
assessment funds from the crop year must be credited or refunded to the 
handlers from whom collected.
    The assessment rate established in this rule will continue in 
effect indefinitely unless modified, suspended, or terminated by the 
Secretary upon recommendation and other information submitted by the 
Committee or other available information.
    Although this assessment rate is effective 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 
2000-01 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 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.

[[Page 57943]]

    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 firms are defined 
by the Small Business Administration (13 CFR 121.201) 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, excluding 
receipts from other sources.
    This rule decreases the assessment rate established for the 
Committee and collected from handlers for the 2000-01 and subsequent 
crop years from $8.50 to $6.50 per ton of assessable raisins acquired 
by handlers. The Committee unanimously recommended 2000-01 expenses of 
$2,145,000. Major expenditures include $660,500 for export program 
administration and related activities, $477,700 for salaries, $476,300 
for contingencies, and $160,000 for compliance activities. Budgeted 
expenses for these items in 1999-2000 were $549,500, $425,000, 
$506,250, and $200,000, respectively. With anticipated assessable 
tonnage at 330,000 tons, about 23,300 tons higher than last year's 
actual assessed tonnage, sufficient income should be generated at the 
$6.50 per ton assessment rate to meet expenses. Pursuant to 
Sec. 989.81(a) of the order, any unexpended assessment funds from the 
crop year must be credited or refunded to the handlers from whom 
collected.
    The industry considered various alternative assessment rates prior 
to arriving at the $6.50 per ton recommendation. The Committee's Audit 
Subcommittee met on August 8, 2000, to review preliminary budget 
information. The subcommittee considered keeping the assessment rate at 
$8.50 per ton. However, this would have generated a projected $1 
million in excess funds. The subcommittee considered reducing the rate 
to $7.50 per ton and ultimately recommended that rate to the Committee 
at its meeting on August 15, 2000. Other options were discussed at the 
Committee meeting, including decreasing the rate to $5.00 per ton. 
After much deliberation, the Committee voted to decrease the assessment 
rate to $6.50 per ton.
    A review of statistical data on the California raisin industry 
indicates that assessment revenue has consistently been less than one 
percent of grower revenue in recent years. Although no official 
estimates or data are available for the upcoming season, it is 
anticipated that assessment revenue will likely continue to be less 
than one percent of grower revenue in the 2000-2001 crop year, 
especially with the 24 percent decrease in the assessment rate.
    Regarding the impact of this action on affected entities, this 
action decreases the assessment rate 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 Audit Subcommittee's meeting on August 8, 2000, 
and the Committee's meeting on August 15, 2000, where this action was 
deliberated 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, all 
interested persons are invited to submit information on the regulatory 
and information impact of this action on small businesses.
    This rule imposes no additional reporting or recordkeeping 
requirements on either small or large raisin handlers. As with all 
Federal marketing order programs, reports and forms are periodically 
reviewed to reduce information requirements and duplication by industry 
and public sectors agencies. Finally, the Department has not identified 
any relevant Federal rules that duplicate, overlap, or conflict with 
this rule.
    A small business guide on complying with fruit, vegetable, and 
specialty crop marketing agreements and orders may be viewed at: 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 is also found and determined upon good 
cause that it is impracticable, unnecessary, and contrary to the public 
interest to give preliminary notice prior to putting this rule into 
effect, and 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 2000-01 crop year began on August 1, 2000, 
and the order requires that the rate of assessment for each crop year 
apply to all assessable raisins acquired during the year; (2) this 
action decreases the assessment rate; (3) handlers are aware of this 
action which was unanimously recommended at a public meeting and is 
similar to other assessment rate actions issued in past years; and (4) 
this rule provides a 60-day comment period, and all comments timely 
received will be considered prior to finalization of this rule.

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 
amended as followed:

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. Section 989.347 is revised to read as follows:


Sec. 989.347  Assessment rate.

    On and after August 1, 2000, an assessment rate of $6.50 per ton is 
established for assessable raisins produced from grapes grown in 
California.

    Dated: September 21, 2000.
Eric M. Forman,
Acting Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 00-24776 Filed 9-26-00; 8:45 am]
BILLING CODE 3410-02-P