[Federal Register Volume 67, Number 7 (Thursday, January 10, 2002)]
[Rules and Regulations]
[Pages 1275-1277]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-580]



 ========================================================================
 Rules and Regulations
                                                 Federal Register
 ________________________________________________________________________
 
 This section of the FEDERAL REGISTER contains regulatory documents 
 having general applicability and legal effect, most of which are keyed 
 to and codified in the Code of Federal Regulations, which is published 
 under 50 titles pursuant to 44 U.S.C. 1510.
 
 The Code of Federal Regulations is sold by the Superintendent of Documents. 
 Prices of new books are listed in the first FEDERAL REGISTER issue of each 
 week.
 
 ========================================================================
 

  Federal Register / Vol. 67, No. 7 / Thursday, January 10, 2002 / 
Rules and Regulations  

[[Page 1275]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 987

[Docket No. FV01-987-1 FR]


Domestic Dates Produced or Packed in Riverside County, 
California; Increased Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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

SUMMARY: This rule increases the assessment rate established for the 
California Date Administrative Committee (Committee) for the 2001-02 
and subsequent crops years from $0.10 to $0.25 per hundredweight of 
dates handled. The Committee locally administers the marketing order 
that regulates the handling of dates produced or packed in Riverside 
County, California. Authorization to assess date handlers enables the 
Committee to incur expenses that are reasonable and necessary to 
administer the program. The fiscal period begins October 1 and ends 
September 30. The assessment rate will remain in effect indefinitely 
unless modified, suspended, or terminated.

EFFECTIVE DATE: January 11, 2002.

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 St., 
suite 102B, Fresno, CA 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) 720-8938.
    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) 720-8938, or E-mail: [email protected].

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing 
Agreement and Order No. 987, both as amended (7 CFR part 987), 
regulating the handling of domestic dates produced or packed in 
Riverside County, 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 (USDA) 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 
date 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 dates 
beginning on October 1, 2001, 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 USDA 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 USDA 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 USDA'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 increases the assessment rate established for the 
Committee for the 2001-02 and subsequent crop years from $0.10 per 
hundredweight to $0.25 per hundredweight of assessable dates handled.
    The California date marketing order provides authority for the 
Committee, with the approval of USDA, to formulate an annual budget of 
expenses and collect assessments from handlers to administer the 
program. The members of the Committee are producers and producer-
handlers of California dates. 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 USDA approved, an assessment rate that would continue 
in effect from crop year to crop year unless modified, suspended, or 
terminated by the USDA upon recommendation and information submitted by 
the Committee or other information available to the USDA.
    The Committee met on August 16, 2001, and unanimously recommended 
2001-02 expenditures of $90,800 and an assessment rate of $0.25 per 
hundredweight of dates handled. In comparison, last year's budgeted 
expenditures were $116,800. The recommended assessment rate of $0.25 is 
$0.15 higher than the rate currently in effect. The higher assessment 
rate is needed to offset a reduction in the Committee's reserve funds 
and a reduction in surplus funds available to the Committee from the 
sale of cull dates. Proceeds from the sales of cull dates are deposited 
into the surplus account for subsequent use by the Committee in 
covering the surplus pool share of the Committee's expenses. Handlers 
may also dispose of cull dates of their own production within their own 
livestock-feeding operation; otherwise, such cull dates must be shipped 
or delivered to the Committee for sale to non-human food product 
outlets.
    Last year, the Committee applied $15,000 of surplus account monies 
to cover surplus pool expenses. Based on

[[Page 1276]]

a recent trend of declining sales of cull dates over the past few 
years, the Committee expects the surplus pool share of expenses during 
2001-02 to be $5,000, or $10,000 less than expected during 2000-01. 
Hence, the revenue available from the surplus pool to cover Committee 
expenses during 2001-02 is expected to be less than last year. To 
offset this reduction in income, the Committee recommended increasing 
the assessment rate, using $20,550 from its administrative reserves, 
and $250 in interest income to fund the 2001-02 budget.
    The major expenditures recommended by the Committee for the 2001-02 
year include $54,700 in salaries and benefits, $3,900 in office 
administration, $30,200 in office expenses, and $2,000 for 
contingencies. Budgeted expenses for these items in 2000-01 were 
$54,100 in salaries and benefits, $18,000 in office administration, 
$39,700 in office expenses, and $5,000 for contingencies.
    The assessment rate recommended by the Committee was derived from 
applying the following formula where:

A = 2001-02 surplus account ($5,000);
B = amount taken from administrative reserves ($20,550);
C = 2001-02 interest income ($250);
D = 2001-02 expenses ($90,800);
E = 2001-02 expected shipments (260,000 hundredweight);
(D -(A + B + C)  E = $0.25 per hundredweight.

    Estimated shipments should provide $65,000 in assessment income. 
Income derived from handler assessments, the surplus account (which 
contains money from cull date sales), and the administrative reserves 
should be adequate to cover budgeted expenses. Funds in the reserve are 
expected to total about $20,800 by September 30, 2001, and therefore 
will be less than the maximum permitted by the order (not to exceed 50% 
of the average of expenses incurred during the most recent five 
preceding crop years; Sec. 987.72(c)).
    The assessment rate established in this rule will continue in 
effect indefinitely unless modified, suspended, or terminated by USDA 
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 USDA. 
Committee meetings are open to the public and interested persons may 
express their views at these meetings. USDA 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 2001-02 budget and those 
for subsequent crop years would be reviewed and, as appropriate, 
approved by USDA.

Final 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 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 100 producers of dates in the production 
area and approximately 10 handlers subject to regulation under the 
marketing order. Small agricultural producers are defined by the Small 
Business Administration (13 CFR 121.201) as those having annual 
receipts of less than $750,000, and small agricultural service firms 
are defined as those having annual receipts are less than $5,000,000. 
Five of the 10 handlers (50%) shipped over $5,000,000 of dates and 
could be considered large handlers by the Small Business 
Administration. Five of the 10 handlers shipped under $5,000,000 of 
dates and could be considered small handlers. The majority of 
California date producers may be classified as small entities.
    This rule increases the assessment rate established for the 
Committee and collected from handlers for the 2001-02 and subsequent 
crop years from $0.10 per hundredweight to $0.25 per hundredweight of 
assessable dates handled. The Committee unanimously recommended 2001-02 
expenditures of $90,800 and an assessment rate of $0.25 per 
hundredweight. The assessment rate of $0.25 is $0.15 higher than the 
rate currently in effect. The quantity of assessable dates for the 
2001-02 crop year is estimated at 260,000 hundredweight. Thus, the 
$0.25 per hundredweight rate should provide $65,000 in assessment 
income and, in conjunction with other funds available to the Committee, 
be adequate to meet this year's expenses. Funds available to the 
Committee include income derived from assessments, the surplus account 
(which contains money from cull date sales), and the administrative 
reserves.
    The higher assessment rate is needed to offset a reduction in the 
Committee's reserve funds and an expected reduction in surplus funds 
available to the Committee from the sale of cull dates. Proceeds from 
the sales of cull dates are deposited into the surplus account for 
subsequent use by the Committee. Last year the Committee applied 
$15,000 of surplus account monies to cover surplus pool expenses. Based 
on a recent trend of declining sales of cull dates over the past few 
years, this year the Committee expects to apply $5,000 to the budget 
from the sale of cull dates.
    The major expenditures recommended by the Committee for the 2001-02 
year include $54,700 in salaries and benefits, $3,900 in office 
administration, $30,200 in office expenses, and $2,000 for 
contingencies. Budgeted expenses for these items in 2000-01 were 
$54,100 in salaries and benefits, $18,000 in office administration, 
$39,700 in office expenses, and $5,000 for contingencies.
    The Committee reviewed and unanimously recommended 2001-02 
expenditures of $90,800 which included increases in salaries and 
benefits and administrative expenses. Prior to arriving at this budget, 
the Committee considered alternative expenditure levels, including a 
proposal to not fund a compliance officer position, but determined that 
expenditures for the position were necessary to promote compliance with 
program requirements. The assessment rate of $0.25 per hundredweight of 
assessable dates was then determined by applying the following formula 
where:

A = 2001-02 surplus account ($5,000);
B = amount taken from administrative reserves ($20,550);
C = 2001-02 interest income ($250);
D = 2001-02 expenses ($90,800);
E = 2001-02 expected shipments (260,000 hundredweight);
(D -(A + B + C))  E = $0.25 per hundredweight.

Estimated shipments should provide $65,000 in assessment income.
    A review of historical information and preliminary information 
pertaining to the upcoming crop year indicates that the grower price 
for the 2001-02 season could range between $30 and $75 per 
hundredweight of dates. Therefore, the

[[Page 1277]]

estimated assessment revenue for the 2001-02 crop year as a percentage 
of total grower revenue will be less than one percent.
    This action increases the assessment obligation imposed on 
handlers. While assessments impose some additional costs on handlers, 
the costs are minimal and uniform on all handlers. Some of the 
additional costs may be passed on to producers. However, these costs 
are offset by the benefits derived by the operation of the marketing 
order. In addition, the Committee's meeting was widely publicized 
throughout the California date industry, and all interested persons 
were invited to attend the meeting and participate in Committee 
deliberations on all issues. Like all Committee meetings, the August 
16, 2001, 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 date 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.
    USDA 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 October 15, 2001 (66 FR 52363). Copies of the proposed rule 
were also mailed or sent via facsimile to all date handlers. Finally, 
the proposal was made available through the Internet by the Office of 
the Federal Register. A 30-day comment period ending November 14, 2001, 
was provided for interested persons to respond to the proposal. No 
comments were received.
    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 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 handlers are 
already receiving 2001-02 crop commodity from growers, the fiscal 
period began October 1, and the rate applies to all dates received 
during the 2001-02 and subsequent seasons. Further, handlers are aware 
of this rule which was recommended at a public meeting. Also, a 30-day 
comment period was provided for in the proposed rule.

List of Subjects in 7 CFR Part 987

    Dates, Marketing agreements, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 987 is 
amended as follows:

PART 987--DOMESTIC DATES PRODUCED OR PACKED IN RIVERSIDE COUNTY, 
CALIFORNIA

    1. The authority citation for 7 CFR part 987 continues to read as 
follows:

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


    2. Section 987.339 is revised to read as follows:


Sec. 987.339  Assessment rate.

    On and after October 1, 2001, an assessment rate of $0.25 per 
hundredweight is established for California dates.

    Dated: January 3, 2002.
A.J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 02-580 Filed 1-9-02; 8:45 am]
BILLING CODE 3410-02-P