[Federal Register Volume 66, Number 59 (Tuesday, March 27, 2001)]
[Proposed Rules]
[Pages 16621-16624]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-7528]


 ========================================================================
 Proposed Rules
                                                 Federal Register
 ________________________________________________________________________
 
 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. 66, No. 59 / Tuesday, March 27, 2001 / 
Proposed Rules  

[[Page 16621]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 989

[Docket No. FV01-989-2 PR]


Raisins Produced From Grapes Grown in California; Reporting on 
Organic Raisins

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This rule invites comments on adding additional reporting 
requirements for handlers covered under 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 (RAC). This rule would require 
handlers to report to the RAC information on acquisitions, shipments, 
and inventories of organic raisins. This action would provide the RAC 
with accurate data on organic raisins. The RAC would evaluate this data 
to determine whether organic raisins should be subject to the order's 
volume regulation requirements. This rule also announces the 
Agricultural Marketing Service's intention to request approval of the 
new information collection requirements by the Office of Management and 
Budget.

DATES: Comments must be received by May 29, 2001.

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, Senior 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 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. This rule is not intended to have retroactive effect. 
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 proposal invites comments on adding additional reporting 
requirements for handlers covered under the order. This rule would 
require handlers to report to the RAC information on acquisitions, 
shipments, and inventories of organic raisins. This action would 
provide the RAC with accurate data on organic raisins. The RAC would 
evaluate this data to determine whether organic raisins should be 
subject to the order's volume regulation requirements. This action was 
unanimously recommended by the RAC at a meeting on November 29, 2000.
    Section 989.73 of the order provides authority for the RAC to 
collect reports from handlers. Paragraph (d) of that section provides 
that, upon request of the RAC, with approval by the Secretary, handlers 
shall furnish to the RAC other information as may be necessary to 
enable it to exercise its powers and perform its duties. The RAC meets 
routinely to make decisions on various programs authorized under the 
order such as volume regulation and quality control. The RAC utilizes 
information collected under the order in its decision-making. Section 
989.173 of the order's administrative rules and regulations specifies 
certain reports that handlers are currently required to submit to the 
RAC.
    The RAC would like to collect information on organic raisins. Some 
organic raisin growers have expressed concern to the RAC and the 
Department with the application of the order's volume regulation 
provisions to organic raisins. In response, the RAC formed a working-
group to review this issue and possible avenues of relief for such 
organic growers. One option considered by the RAC was to establish 
separate varietal types for organic raisins covered under the order. 
This would permit the RAC to consider the application of volume 
regulation for organic raisins

[[Page 16622]]

separate from traditionally grown raisins. However, during this 
process, it was determined that reliable data on the production, 
shipment, and marketing of organic raisins does not exist. Thus, the 
RAC does not have sufficient information at this time to make an 
informed decision.
    Therefore, the RAC recommended requiring handlers to report 
information to the RAC on organic raisins. Such information would 
include reports on acquisitions, shipments (dispositions), and 
inventories of organic raisins. Information regarding transfers between 
handlers of organic raisins would also be needed to provide the RAC 
with accurate shipment data. The RAC recommended that this rule become 
effective on July 31, 2001, the last day of the 2000-01 crop year, so 
that the RAC could collect year-end inventory information on 2000-01 
crop organic raisins. During the following weeks, handlers would begin 
reporting weekly acquisitions and monthly shipments of 2001-02 crop 
organic raisins.
    Finally, for purposes of this rule, organically produced raisins 
would mean California raisins that have been certified as organic by an 
organic certification organization currently registered with the 
California Department of Food and Agriculture. Section 989.173 of the 
order's administrative rules and regulation is proposed to be revised 
accordingly. Paragraph (d) of that section regarding an interhandler 
transfer report would be revised, and a new paragraph (g) would be 
added to require handlers of organic raisins to report information 
regarding inventories, acquisitions, and dispositions of organic 
raisins. This information would enable the RAC to make an informed 
decision on whether organic raisins should be subject to the order's 
volume regulation requirements.

Initial Regulatory Flexibility Analysis

    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 firms are defined 
by the Small Business Administration (13 CFR 121.201) as those having 
annual receipts of less that $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 would revise paragraph (d) in Sec. 989.173 and add a new 
paragraph (g) to that section to require handlers of organic raisins to 
submit reports to the RAC regarding acquisitions, shipments, and 
inventories of such raisins. This action is needed so that the RAC can 
collect accurate data on organic raisins and evaluate this information 
to determine whether organic raisins should be categorized as separate 
varietal types under the order. This would permit the RAC to consider 
application of the order's volume regulation provisions to organic 
raisins separate from traditionally grown raisins. Authority for this 
action is provided in Sec. 989.73 of the order.
    Regarding the impact of this action on affected entities, this 
action would impose some additional burden on handlers who handle 
organic raisins. Such handlers would be required to submit a weekly 
acquisition report for organic raisins, a monthly shipment 
(disposition) report, a monthly report of exports by country of 
destination, and an annual inventory report. Handlers would also be 
required to report transfers of organic raisins between handlers; 
however, those transfers would be captured on the same interhandler 
transfer report as handlers are currently using.
    It is estimated that it would take each handler of organic raisins 
about 5 minutes to complete each weekly acquisition report (4 hours and 
20 minutes annually per handler), 5 minutes to complete each monthly 
shipment report (1 hour annually per handler), 5 minutes to complete 
each report of exports by country of destination (1 hour annually per 
handler), and 5 minutes to complete an annual inventory report (5 
minutes annually per handler). If all handlers handle organic raisins, 
it is estimated that the total additional annual burden would be 6 
hours and 25 minutes for each handler, or a total of 128 hours for the 
industry. In addition, handlers would be required to provide copies of 
organic certificates at the request of the Committee. The reporting 
burden for this activity is accounted for in the new weekly organic 
acquisition report. The four new reports, the organic inspection 
certificate requests, and underlying recordkeeping burden for organic 
acquisitions, shipments, and inventories are being submitted to the 
Office of Management and Budget (OMB) for approval under OMB Control 
No. 0581-NEW. At a later time, the new collection would be added to the 
currently approved collection for use under OMB No. 0581-0178. The 
burden for the interhandler transfer report (RAC-6) has already been 
approved by the OMB.
    The Department has identified four comparable reports required to 
be submitted by handlers to the RAC under Sec. 989.173. That section 
requires handlers to report to the RAC for all California raisins 
weekly acquisitions, monthly dispositions, monthly exports by country 
of destination, and annual inventories. This rule proposes that 
handlers continue to report such information for all California 
raisins, but that similar information regarding organically produced 
raisins be captured separately. Although this would be an additional 
reporting burden on handlers, the RAC has determined that this action 
is necessary to collect accurate information on organic raisins. In 
addition, several handlers are represented on the RAC and voted for 
this action.
    Several alternatives were considered by RAC's work-group to address 
concerns of organic raisin growers. The group considered recommending 
informal rulemaking to establish separate varietal types for organic 
raisins. However, as discussed in this proposal, the RAC determined 
that sufficient data does not exist on production and shipments of 
organic raisins to warrant such action at this time.
    Another option considered was to recommend informal rulemaking 
under authority provided in Sec. 989.60(c). Under that authority, the 
RAC may designate such raisins as it deems appropriate for production, 
processing, and marketing and development projects. For each project, 
the volume of tonnage that can be acquired by all handlers cannot 
exceed 500 tons annually. Such raisins can be exempt from certain order 
regulations such as volume control. The 500-ton limit can be increased 
through informal rulemaking. The working-

[[Page 16623]]

group considered increasing the 500-ton limit and recommending a 
marketing develop project for all organic Natural (sun-dried) Seedless 
raisins. Such raisins would be exempt from volume regulation.
    Also, there was some discussion about exempting organic raisins 
from the order's volume control requirements through a formal 
rulemaking proceeding. However, the working-group and ultimately the 
RAC decided that, at this time, the most appropriate action would be to 
collect the necessary production and shipment data on organic raisins. 
The RAC would evaluate this information and determine whether 
additional action on organic raisins would be warranted, including 
establishing separate varietal types for organic raisins.
    Further, the RAC's meetings of its organic working-group on August 
29 and October 17, 2000, and Administrative Issues Subcommittee and RAC 
meetings held on November 29, 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.
    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.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
chapter 35), the AMS announces its intention to request a approval of a 
new information collection for the California raisin marketing order.
    Title: Raisins Produced from Grapes Grown in California.
    OMB Number: 0581-NEW.
    Expiration Date of Approval: To be assigned by OMB.
    Type of Request: Intent to revise a currently approved information 
collection.
    Abstract: The information collection requirements in this request 
are essential to carry out the intent of the Act, to provide the 
respondents the type of service they request, and to administer the 
California raisin marketing order program, which has been operating 
since 1949.
    On November 29, 2000, the RAC unanimously recommended revising the 
order's administrative rules and regulations to require handlers to 
report to the RAC information on organically produced raisins. This 
information would be reported on four new RAC forms, RAC-1 CO for 
weekly acquisitions of organic raisins, RAC-20 CO for monthly 
dispositions of organic raisins, RAC-21 CO for monthly exports of 
organic raisins by country of destination, and RAC-50 CO for annual 
inventories of organic raisins. This notice concerns these four reports 
and the proposed requirement that handlers provide copies of organic 
certificates at the request of the Committee. The burden regarding the 
submission of organic certificates is accounted for in the new 
acquisition report. The information and recordkeeping burdens for the 
new forms and submission of organic certificates by handlers has been 
submitted to OMB for approval. Section 989.176 requires handlers to 
maintain complete, accurate, and current records of all of their 
business affairs concerning the reports required to be submitted to the 
Committee. The records must be maintained for at least two years after 
the termination of the crop year for which the transactions occurred. 
The collection of information on the interhandler transfer of organic 
raisins would be captured on the same interhandler transfer report 
(RAC-6) handlers currently are using for traditionally produced 
raisins. The burdens associated with the collection of interhandler 
transfer information have been approved previously by OMB.
    The new reports are needed so that the RAC can collect accurate 
information on organic raisins. The RAC would evaluate this information 
and determine whether organic raisins should be categorized as a 
separate varietal type under the order. This would permit the RAC to 
consider application of the order's volume regulation provisions to 
organic raisins separate from traditionally grown raisins.
    The information collected would be used only by authorized 
representatives of USDA, including AMS, Fruit and Vegetable Programs 
regional and headquarter's staff, and authorized RAC employees. 
Authorized RAC employees and the industry would be the primary users of 
the information and AMS would be the secondary user.
    The proposed request for approval of the new information 
collections under the order are as follows:

RAC-1 CO--Weekly Report of Standard Organic Raisin Acquisitions

    Estimate of Burden: Public reporting burden for this collection of 
information (including the copying of organic certificates) is 
estimated to average 5 minutes per response.
    Respondents: California raisin handlers who acquire organically 
produced California raisins.
    Estimated Number of Respondents: 20.
    Estimated Number of Responses per Respondent: 52.
    Estimated Total Annual Burden on Respondents: 86.7 hours.

RAC-20 CO--Monthly Disposition Report of Free Tonnage Organic Raisin 
Dispositions

    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 5 minutes per response.
    Respondents: California raisin handlers who dispose of organically 
produced California raisins.
    Estimated Number of Respondents: 20.
    Estimated Number of Responses per Respondent: 12.
    Estimated Total Annual Burden on Respondents: 20 hours.

RAC-21 CO--Monthly Free Organic Tonnage Exports by Country of 
Destination

    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 5 minutes per response.
    Respondents: California raisin handlers who dispose of organically 
produced California raisins.
    Estimated Number of Respondents: 20.
    Estimated Number of Responses per Respondent: 12.
    Estimated Total Annual Burden on Respondents: 20 hours.

RAC-50 CO--Inventory of Free Tonnage Standard Quality Organic Raisins

    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 5 minutes per response.
    Respondents: California raisin handlers who acquire organically 
produced California raisins.
    Estimated Number of Respondents: 20.
    Estimated Number of Responses per Respondent: 1.
    Estimated Total Annual Burden on Respondents: 1.7 hours.
    Comments: Comments are invited on: (1) Whether the proposed 
collection of information is necessary for the proper

[[Page 16624]]

performance of the functions of the agency, including whether the 
information will have practical utility; (2) the accuracy of the 
agency's estimate of the burden of the proposed collection of 
information, including the validity of the methodology and assumptions 
used; (3) ways to enhance the quality, utility, and clarity of the 
information to be collected; and (4) ways to minimize the burden of the 
collection of information on those who are to respond, including the 
use of appropriate automated, electronic, mechanical, or other 
technological collection techniques or other forms of information 
technology.
    Comments should reference OMB No. 0581-NEW and the California 
raisin marketing order, and be sent to USDA in care of the Docket Clerk 
at the previously mentioned address. All comments received will be 
available for public inspection during regular business hours at the 
same address.
    All responses to this notice will be summarized and included in the 
request for OMB approval. All comments will also become a matter of 
public record.
    A 60-day comment period is provided to allow interested persons to 
respond to this proposal.

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, paragraph (d)(1)(iii) is revised, paragraphs 
(g), (h), and (i) are redesignated as paragraphs (h), (i), and (j), and 
a new paragraph (g) is added to read as follows:


Sec. 989.173  Reports.

* * * * *
    (d) * * *
    (1) * * *
    (iii) The varietal type of raisin, with organically produced 
raisins as specified in paragraph (g) of this section separated out, 
net weight, and condition of the raisins transferred; and
* * * * *
    (g) Organically produced raisins. For purposes of this section, 
organically produced raisins means raisins that have been certified by 
an organic certification organization currently registered with the 
California Department of Food and Agriculture. Handlers of such raisins 
shall submit the following reports to the Committee.
    (1) Inventory report of organically produced raisins. Each handler 
shall submit to the Committee by the close of business on July 31 of 
each crop year, and not later than the following August 6, on an 
appropriate form provided by the Committee, a report showing, with 
respect to the organically produced raisins held by such handler:
    (i) The quantity of free tonnage raisins, segregated as to 
locations where they are stored and whether they are natural condition 
or packed;
    (ii) The quantity of reserve tonnage raisins held for the account 
of the Committee;
    (iii) The quantity of off-grade raisins segregated as to those for 
reconditioning and those for disposition as such.
    (2) Acquisition report of organically produced standard raisins. 
Each handler shall submit to the Committee for each week (Sunday 
through Saturday or such other 7-day period for which the handler has 
submitted a proposal to and received approval from the Committee) and 
not later than the following Wednesday, on an appropriate form provided 
by the Committee, a report showing the following:
    (i) The total net weight of the standard raisins acquired during 
the reporting period, segregated when appropriate, as to free tonnage 
and reserve tonnage;
    (ii) The location of the reserve tonnage; and
    (iii) The cumulative totals of such acquisitions (as so segregated) 
from the beginning of the current crop year.
    (iv) Upon request of the Committee, each handler shall provide 
copies of the organic certificate(s) applicable to the quantity of 
raisins reported as acquired.
    (3) Disposition report of organically produced raisins. No later 
than the seventh day of each month, handlers who are not processors 
shall submit to the Committee, on an appropriate form provided by the 
Committee, a report showing the aggregate quantity of free tonnage 
packed raisins and standard natural condition raisins which were 
shipped or otherwise disposed of by such handler during the preceding 
month (exclusive of transfer within the State of California between the 
plants of any such handler and from such handler to other handlers). 
Such information shall include:
    (i) Domestic outlets (exclusive of Federal government purchases) 
according to the quantity shipped in consumer cartons, the quantity of 
bags having a net weight content of 4 pounds or less, and the quantity 
shipped in bulk packs (including, but not limited to those in bags 
having a net weight content of more than 4 pounds);
    (ii) Federal government purchases;
    (iii) Export outlets according to quantity shipped in consumer 
cartons, the quantity shipped in bags having a net weight of 4 pounds 
or less, and the quantity shipped in bulk packs (including, but not 
limited to, those in bags having a net weight content of more than 4 
pounds);
    (iv) Export outlets, by countries of destination; and
    (v) Each of any other outlets in which the handler disposed of such 
raisins other than by any transfer which is excluded by the preceding 
sentence.
* * * * *

    Dated: March 21, 2001.
Kenneth C. Clayton,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 01-7528 Filed 3-26-01; 8:45 am]
BILLING CODE 3410-02-P