[Federal Register Volume 68, Number 121 (Tuesday, June 24, 2003)]
[Rules and Regulations]
[Pages 37391-37393]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-15832]



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  Federal Register / Vol. 68, No. 121 / Tuesday, June 24, 2003 / Rules 
and Regulations  

[[Page 37391]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 993

[Docket No. FV03-993-1 IFR]


Dried Prunes Produced in California; Changes in Reporting 
Requirements

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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

SUMMARY: This rule changes the reporting requirements specified under 
the administrative rules and regulations of the Federal marketing order 
for California dried prunes (order). The order regulates the handling 
of dried prunes produced in California and is administered locally by 
the Prune Marketing Committee (Committee). This rule allows California 
prune handlers to report their shipments less frequently and submit 
less detailed information than is currently required. Handlers will 
report shipments once every three months (quarterly), rather than 
monthly, and will no longer report export shipment destination 
countries. Also, the reporting of type of pack will be changed from 
``carton, visipak, and other'' to ``bulk and consumer pack'' to reveal 
less marketing information. This action will reduce the information 
collection burden upon handlers, while still enabling the Committee to 
collect information necessary for program administration.

DATES: Effective June 25, 2003. Comments must be received by August 25, 
2003 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, 1400 Independence Avenue SW., Stop 0237, Washington, DC 
20250-0237; Fax: (202) 720-8938; 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: Richard P. Van Diest, 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, 1400 Independence Avenue SW., STOP 0237, Washington, DC 
20250-0237; telephone: (202) 720-2491, or 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, 1400 Independence 
Avenue SW., STOP 0237, Washington, DC 20250-0237; 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. 993 (7 CFR part 993), both as amended, 
regulating the handling of dried prunes produced 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 (USDA) 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 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. A 
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 modifies language in the order's administrative rules and 
regulations to allow California prune handlers to report their 
shipments quarterly, rather than monthly. Also, handlers will only be 
required to report their export market shipments to the Committee by 
region, rather than by country. The amount of information disseminated 
by the Committee is also reduced. The Committee will no longer report 
the export shipments to the industry by country, and the regions that 
handlers ship into will only be reported once a year, when the 
marketing policy is prepared. Also, the reporting of type of pack is 
changed from ``carton, visipak, and other'' to ``bulk and consumer 
pack''. These changes will reduce the information collection burden 
upon handlers and the Committee's administrative costs because of the 
switch to quarterly distribution. This action was unanimously 
recommended by the Committee at a meeting on April 3, 2003.

Marketing Order Authority

    Section 993.72 of the order provides authority for the Committee to 
require handlers to file such reports of acquisitions, sales, uses, and 
shipments of prunes, as may be requested by the Committee. Also, 
pursuant to Sec.  993.36(c), one the Committee's duties is to assemble 
data on the producing, handling, shipping, and marketing conditions 
relative to prunes in connection with the performance of its official 
duties. To prevent the release of proprietary business information, the

[[Page 37392]]

information from all of the handlers is totaled and then distributed.

Administrative Rules and Regulations

    Section 993.172 requires handlers to report each month on their 
holdings, receipts, and shipments of prunes produced in California.
    Paragraph (d) of Sec.  993.172 requires handlers to report 
shipments of dried prunes produced in California. This information is 
reported on PMC Form 12.1, ``Report of Shipments,'' and an addendum to 
that form referred to as PMC Form 12.1A, ``Cumulative Prune Export 
Shipments.''
    Prior to the implementation of this rule, each handler was required 
to file with the Committee for each month, not later than the 5th 
working day of the next succeeding month, Forms PMC 12.1 and 12.1A, 
reporting shipments (including cumulative exports by country) of prunes 
during the crop year through the last day of the immediately preceding 
month. PMC Form 12.1 was required to contain at least the following 
information:
    (1) The date, the name, and address of the handler, and the period 
covered by the report;
    (2) The pounds of prunes shipped or otherwise disposed of, other 
than shipments to or for the account of other handlers as follows: (i) 
Domestic outlets segregated by uses (including Federal Government 
agencies); (ii) export markets segregated by countries; (iii) both 
domestic and export totals segregated by type of pack (carton, visipak, 
and other); and (iv) pitted prunes (pitted weight) segregated as to 
total to domestic outlets and total to export markets;
    (3) The total pounds shipped to or for the account of other 
handlers, including interhandler transfers; and
    (4) The total pounds of prunes not covered by, or excluded from, 
the definition of the term ``prunes'' (Sec.  993.5) shipped.
    PMC Form 12.1A included a listing of the quantities of whole and 
pitted prunes exported together with the countries to which the exports 
were made.

Proposed Action

    Based upon competition concerns, the Committee unanimously 
recommended changing the frequency and amount of information that is 
required to be reported by handlers. While this rule would still allow 
the Committee to obtain the information it needs for program purposes, 
this rule allows California prune handlers to file their Shipment 
Reports on a quarterly, rather than monthly basis, as currently 
required.
    Handlers will no longer be reporting their export shipment 
destination countries to the Committee. Instead handlers will only 
report the regions into which they ship. The amount of information 
disseminated by the Committee will also be reduced. The Committee will 
no longer report the countries to which the industry exports, but only 
the total export shipments (except that total export shipments into 
regions would be reported annually for marketing policy purposes). The 
reporting of type of pack would be changed from ``carton, visipak, and 
other'' to ``bulk and consumer pack'' to reveal less marketing 
information.
    By distributing the Shipment Report quarterly, instead of monthly, 
and revising the report's format to provide less detailed information, 
the Committee is reducing the amount of marketing information it is 
releasing. However, this information still satisfies the Committee's 
need for information to prepare the marketing policy, verify 
compliance, monitor the accuracy of handler reports, justify government 
purchases or supply control recommendations, and to help the industry 
develop their marketing programs and evaluate USDA Market Access 
Program applications. At least once a year, export shipments by region 
will be reported for the entire crop year. During the remainder of the 
year, the Committee may only report total export shipments.
    These recommendations by the Committee will reduce the reporting 
burden on California prune handlers as well as help address some of the 
marketing concerns of the industry and Committee. These changes will 
also reduce some of the Committee's administrative costs in 
disseminating this information quarterly, rather than monthly. 
Accordingly, appropriate changes are made to paragraph (d) of Sec.  
993.172.

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.

Industry Profile

    There are approximately 1,205 producers of dried prunes in the 
production area and approximately 21 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 of less than 
$5,000,000.
    Currently 8 of the 21 handlers (38 percent) shipped over $5,000,000 
worth of dried prunes and could be considered large handlers by the 
Small Business Administration. Thirteen of the 21 handlers (62 percent) 
shipped less than $5,000,000 worth of dried prunes and could be 
considered small handlers. An estimated 32 producers, or less than 3 
percent of the 1,205 total producers, would be considered large growers 
with annual incomes over $750,000. The majority of handlers and 
producers of California dried prunes may be classified as small 
entities.

Summary of Rule Change

    This rule changes the reporting requirements specified in Sec.  
993.172(d) of the administrative rules and regulations regarding the 
reporting of dried prune shipments by handlers. This rule allows the 
California prune handlers to file their Shipment Reports quarterly, 
rather than monthly, as required currently. Also handlers will no 
longer report their export market shipments to the Committee by 
country, but by region. The amount of information disseminated by the 
Committee will also be reduced. The Committee will no longer be 
reporting export shipments by country, but only in total (except that 
total export shipments into regions would be reported annually to 
enable the Committee to prepare its marketing policy). The reporting of 
type of pack also would be changed from ``carton, visipak, and other'' 
to ``bulk and consumer pack''.

Impact of Regulation

    Regarding the impact of this rule on affected entities, this action 
would reduce the reporting and recordkeeping burden on California prune 
handlers and reduce the Committee's administrative costs. The Committee 
estimates that 21 California prune

[[Page 37393]]

handlers are required to file the Supply and Disposition reports each 
month. It is estimated that it will take each handler about 20 minutes 
to complete each revised PMC Form 12.1, and about 20 minutes to 
complete each revised PMC Form 12.1A. In comparison it is estimated 
that currently it takes each handler about 30 minutes to complete each 
PMC Form 12.1, and about 35 minutes to complete each PMC Form 12.1A. 
Thus, completion of the revised reports will take 10 minutes less, and 
15 minutes less, respectively, than that required for each of the 
current reports. The total annual industry reporting burden for the 
current PMC Form 12.1 is 120 hours, and for the PMC Form 12.1A is 139 
hours, for a combined total of 259 hours. The total burden hours for 
the revised PMC Forms 12.1 and 12.1A is 28 hours each, for a combined 
total of 55 hours. These changes will thereby reduce the annual 
industry information collection burden by 204 hours. Committee costs 
would be reduced because the report will be compiled and distributed 
quarterly, rather than monthly.
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the information collection burden reduction contained in 
this rule has been submitted to the Office of Management and Budget. 
This action reduces existing approved burden requirements which 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.

Alternatives Considered

    The Committee considered alternatives to this action at meetings on 
March 11, April 2, and April 3, 2003. The Executive Subcommittee and 
Committee discussed the possibility of eliminating all reporting, but 
determined that this was not viable because it needs certain 
information to prepare its marketing policy and for other decision-
making. Some industry leaders also felt that the statistics are 
important for grower, handler, and bargaining association decisions 
that need to be made each year. Finally, the Executive Subcommittee and 
Committee discussed disseminating the information only to members and 
alternates of the Committee, its subcommittees, and to California prune 
handlers. Ultimately, the Executive Subcommittee and Committee decided 
to proceed with the changes in shipment reporting requirements to 
reduce the frequency of the reports, and to reduce the amount of 
information reported to and disseminated by the Committee.
    The Executive Subcommittee's March 11 and April 2, 2003, meetings 
and the Committee's April 3, 2003, meeting where this issue was 
deliberated were public and widely publicized throughout the prune 
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: 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 rule. All written comments timely received will be 
considered before a final determination is made on this matter.
    After consideration of all relevant material presented, including 
the Committee's recommendation, and other information, it is found that 
this interim final 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) This rule needs to be implemented as soon as possible 
because the 2003-2004 crop year begins August 1, 2003; (2) this rule 
relaxes handler reporting requirements; (3) the Committee unanimously 
recommended these changes at a public meeting and interested parties 
had an opportunity to provide input; and (4) a 60-day comment period is 
provided and all comments received will be considered in finalizing 
this rule.

List of Subjects in 7 CFR Part 993

    Marketing agreements, Plums, Prunes, Reporting and recordkeeping 
requirements.


0
For the reasons set forth in the preamble, 7 CFR part 993 is amended as 
follows:

PART 993--DRIED PRUNES IN CALIFORNIA

0
1. The authority citation for 7 CFR part 993 continues to read as 
follows:


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


0
2. In Sec.  993.172, the section heading and paragraph (d) are revised 
to read as follows:


Sec.  993.172  Reports of holdings, receipts, uses, and shipments.

* * * * *
    (d) Shipments by handlers. Each handler shall file with the 
Committee for each quarter, not later than the 5th working day of the 
months of November, February, May and August, signed reports on Form 
PMC 12.1, ``Reports of Shipments,'' and Form 12.1A, ``Cumulative Prune 
Export Shipments'' reporting shipments of prunes during the crop year 
through the last day of the immediately preceding quarter. Such reports 
shall contain at least the following information:
    (1) The date, the name, and address of the handler, and the period 
covered by the report;
    (2) The pounds of prunes shipped or otherwise disposed of, other 
than shipments to or for the account of other handlers as follows: 
Domestic outlets segregated by uses (including Federal Government 
agencies); export markets segregated by regions; both domestic and 
export totals segregated by type of pack (bulk and consumer pack); and 
pitted prunes (pitted weight) segregated as to total to domestic 
outlets and total to export markets segregated by regions;
    (3) The total pounds shipped to or for the account of other 
handlers, including interhandler transfers; and
    (4) The total pounds of prunes not covered by, or excluded from, 
the definition of the term ``prunes'' (Sec.  993.5) shipped.
* * * * *

    Dated: June 18, 2003.
Kenneth C. Clayton,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 03-15832 Filed 6-23-03; 8:45 am]
BILLING CODE 3410-02-P