[Federal Register Volume 69, Number 78 (Thursday, April 22, 2004)]
[Rules and Regulations]
[Pages 21689-21692]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-9097]



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 Rules and Regulations
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  Federal Register / Vol. 69, No. 78 / Thursday, April 22, 2004 / Rules 
and Regulations  

[[Page 21689]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 925

[Docket No. FV04-925-1 IFR]


Grapes Grown in a Designated Area of Southeastern California; 
Establishment of Reporting Requirements

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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

SUMMARY: This rule establishes end-of-season reporting requirements 
authorized under the California grape marketing order (order). The 
order regulates the handling of grapes grown in a designated area of 
Southeastern California and is administered locally by the California 
Desert Grape Administrative Committee (Committee). Requiring handlers 
to file end-of-season grape shipment reports with the Committee will 
enable the Committee to obtain accurate shipment data for assessment 
billing and for the next season's marketing decisions without incurring 
the expense of auditing every handler. Handler costs also are expected 
to be reduced because the submission of end-of-season grape shipment 
reports will be less costly and less time consuming than yearly handler 
audits.

DATES: Effective April 23, 2004; comments received by June 21, 2004, 
will be considered prior to issuance of a final rule. Pursuant to the 
Paperwork Reduction Act, comments on the information collection burden 
must be received by June 21, 2004.

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] 
or www.regulations.gov. 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: Rose Aguayo, 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, 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 Order 
No. 925 (7 CFR part 925), regulating the handling of 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 (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 establishes end-of-season reporting requirements 
authorized under the California grape order. Requiring handlers to file 
end-of-season grape shipment reports with the Committee will enable the 
Committee to obtain accurate shipment data for assessment billing and 
for the next season's marketing decisions without incurring the expense 
of auditing every handler each year. This action also is expected to 
reduce handler costs because submission of end-of-season grape shipment 
reports is expected to be less costly and less time consuming than 
yearly handler audits. This action is in the best interest of producers 
and handlers.
    Section 925.41 of the grape order provides authority to assess each 
person who first handles grapes a pro rata share of the expenses which 
are reasonable and likely to be incurred by the Committee during a 
fiscal period.
    Section 925.215 of the order's rules and regulations establishes an 
assessment rate of $0.015 per 18-pound lug for grapes grown in a 
designated area of southeastern California.
    Section 925.60(b) of the grape order provides authority for 
establishing reporting requirements. Under the marketing order, the 
Committee may, with the approval of the Secretary, establish reporting 
requirements to collect necessary information or data. The Committee 
needs data on grape shipments to provide an accurate basis for handler 
assessments and for the next season's marketing decisions.
    Currently, the Committee obtains data on grape shipments during 
handler audits at the end of the season. These

[[Page 21690]]

handler audits are time consuming and expensive for both the Committee 
staff and grape handlers. Detailed information follows on these burdens 
in the Initial Regulatory Flexibility Analysis section of this 
document.
    Therefore, at its January 15, 2004, meeting the Committee 
unanimously recommended establishing Sec.  925.160 under the order's 
rules and regulations and further clarified this recommendation at its 
February 5, 2004, meeting. Section 925.160 will read as follows: 
``Section 925.160 Reports. When requested by the California Desert 
Grape Administrative Committee, each shipper who ships grapes, shall 
furnish an end-of-season grape shipment report (CDGAC-3) to the 
Committee no later than 10 days after the last day of shipment for the 
season or such later time as the Committee deems appropriate. Such 
reports shall show the reporting period (the date of the handler's 
first shipment and the date of the handler's last shipment), the name 
and other identification of the shipper and grower, the invoice number, 
shipping date, varietal name, shipment destination (city and state or 
country), and the number of lugs shipped (pounds).''
    The end-of-season grape shipment reporting requirements recommended 
by the Committee are similar to those required by the California Table 
Grape Commission (Commission) under a State of California program under 
which grape research and promotion activities are implemented. Because 
the Commission is prohibited from sharing confidential handler 
information, the Committee recommended that an end-of-season grape 
shipment report be developed for Committee use. Grape shipment data 
already compiled by handlers for the Commission may be attached to the 
Committee form to meet the new reporting requirements. Thus, handlers 
will not be duplicating their efforts and both agencies will receive 
necessary shipment data for respective program purposes.
    The Committee estimates that this action will impact 20 handlers of 
grapes and further estimates that, on average, each handler will expend 
approximately 30 minutes per year to prepare and submit this report and 
accompanying information to the Committee. The Committee believes that 
this action will reduce handler costs, because the execution and 
submission of the end-of-season grape shipment report to the Committee 
is expected to be less costly and time consuming than yearly audits. 
The Committee vote was unanimous with 9 in favor, 0 opposed, and 0 
abstained. This change does not impact the grape import regulation.

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 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 20 handlers of California grapes who are 
subject to regulation under the order and about 50 producers of grapes 
in the production area. Small agricultural service 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 
$750,000. Eight of the 20 handlers subject to regulation have annual 
grape sales of at least $5,000,000. In addition, 10 of the 50 producers 
have annual sales of at least $750,000. Therefore, a majority of 
handlers and producers may be classified as small entities.
    This rule establishes end-of-season reporting requirements 
authorized under the California grape order. Requiring handlers to file 
end-of-season grape shipment reports with the Committee will enable the 
Committee to obtain accurate shipment data for assessment billing and 
for the next season's marketing decisions without incurring the expense 
of auditing every handler each season. This action also is expected to 
reduce handler costs, because the preparation and submission of end-of-
season grape shipment reports is expected to be less costly and less 
time consuming than yearly handler audits. This action is in the best 
interest of producers and handlers.
    Section 925.41 of the grape order provides authority to assess each 
person who first handles grapes a pro rata share of the expenses which 
are reasonable and likely to be incurred by the Committee during a 
fiscal period.
    Section 925.215 of the order's rules and regulations establishes an 
assessment rate of $0.015 per 18-pound lug for grapes grown in a 
designated area of southeastern California.
    Section 925.60(b) of the grape order provides authority for 
establishing reporting requirements. Under the marketing order, the 
Committee may, with the approval of the Secretary, establish reporting 
requirements to collect necessary information or data. The Committee 
needs data on grape shipments to provide an accurate basis for handler 
assessments and for the next season's marketing decisions.
    Currently, the Committee obtains data on grape shipments during 
handler audits at the end of the season. These handler audits are time 
consuming and expensive for both the Committee staff and grape 
handlers.
    Therefore, at its January 15, 2004, meeting the Committee 
unanimously recommended establishing Sec.  925.160 under the order's 
rules and regulations and further clarified this recommendation at its 
February 5, 2004, meeting. Section 925.160 will read as follows: 
``Section 925.160 Reports. When requested by the California Desert 
Grape Administrative Committee, each shipper who ships grapes, shall 
furnish an end-of-season grape shipment report (CDGAC-3) to the 
Committee no later than 10 days after the last day of shipment for the 
season or such later time as the Committee deems appropriate. Such 
reports shall show the reporting period (the date of the handler's 
first shipment and the date of the handler's last shipment), the name 
and other identification of the shipper and grower, the invoice number, 
shipping date, varietal name, shipment destination (city and state), 
and the number of lugs shipped (pounds).''
    The end-of-season reporting requirements recommended by the 
Committee are similar to those now required by the California Table 
Grape Commission (Commission). The Commission administers a State of 
California research and promotion program for grapes produced in 
California. Because the Commission is prohibited from sharing 
confidential handler information, the Committee recommended that an 
end-of-season grape shipment report be developed for Committee use. 
Shipment data currently compiled by handlers for the Commission will be 
able to be attached to the newly developed Committee form to meet the 
Committee's shipment information needs. Thus, handlers will not be 
duplicating their efforts and both agencies will receive necessary 
shipment data for program activities. The Committee estimates that 20 
grape handlers will be affected by this action with a total annual 
industry burden of

[[Page 21691]]

approximately 10 hours (20 handlers x 30 minutes = 10 hours).
    The Committee believes that this action will reduce handler costs 
because the preparation and submission of the end-of-season grape 
shipment report to the Committee is expected to be less costly and time 
consuming than yearly audits. Currently, the 20 grape handlers 
regulated under the order pay approximately $5,283 and expend 
approximately 126 man-hours annually for the yearly audits. 
Approximately \1/3\ of the handler audits will continue to be conducted 
by the Committee for order compliance purposes. Therefore, the 
Committee estimates that an annual savings of $3,698 and 88 man-hours 
for handlers will be realized through the use of the end-of-season 
shipment reports.
    Additionally, this rule is expected to reduce the number of hours 
of Committee staff time and administrative costs currently incurred by 
the Committee in conducting handler audits. In conducting audits of all 
industry handlers, the Committee annually spends about $3,600 and about 
300 man-hours. If only one-third of the handlers are audited each year, 
the Committee expects to save about $2,400 and about 200 hours of 
Committee time. Thus, actual Committee costs using the new shipment 
form should be about $1,200 and 100 man-hours.
    The Committee discussed alternatives to this change, including 
requiring handlers to submit the end-of-season grape shipment report 5 
days after the end of the season. The Committee rejected the 5-day 
requirement, as they believe handlers need at least 10 days to complete 
end-of-season handler activities. Additionally, the Committee 
considered not establishing an end-of-season grape shipment report, but 
concluded, as previously mentioned, that adding an end-of-season grape 
shipment reporting requirement will significantly reduce handler costs, 
as submission of this report will be less costly and less time 
consuming than yearly handler audits. The Committee vote was unanimous 
with 9 in favor, 0 opposed, and 0 abstained. This rule is in the 
interest of handlers and producers. These revisions do not impact the 
grape import regulation.
    Further, the Committee's meetings were widely publicized throughout 
the grape industry and all interested persons were invited to attend 
the meetings and participate in the Committee's deliberations. Like all 
Committee meetings, the January 15, 2004, and February 5, 2004, 
meetings were public meetings and all entities, both large and small, 
were able to express their views on these issues.
    Finally, interested persons are invited to submit information on 
the regulatory and informational impacts 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.
    As previously mentioned, this rule will impose some additional 
reporting and recordkeeping on both small and large grape handlers. 
This action requires one new Committee form. The information collection 
requirements are discussed later in this document. 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. In addition, USDA has not identified any 
relevant Federal rules that duplicate, overlap or conflict with this 
rule.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), this notice announces that AMS has requested and obtained 
emergency approval from the Office of Management and Budget (OMB) for a 
new information collection request for Marketing Order No. 925, 
regulating the handling of grapes grown in a designated area of 
Southeastern California. This emergency approval was assigned OMB No. 
0581-0220. The emergency request was necessary because insufficient 
time was available to follow normal clearance channels. Upon 
publication of the final rule, this collection will be merged with the 
forms currently approved for use under OMB No. 0581-0189 ``Generic OMB 
Fruit Crops.''
    Title: Grapes Grown in a Designated Area of Southeastern 
California; Marketing Order No. 925.
    OMB Number: 0581-0220.
    Type of Request: New collection.
    Abstract: These information collection requirements 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 Desert Grape 
marketing order program, which has been operating since 1980.
    On January 15, 2004, the Committee unanimously recommended the 
establishment of Sec.  925.160 under the order's rules and regulations 
and further clarified this recommendation at its February 5, 2004, 
meeting. Section 925.160 will require handlers to furnish an end-of-
season grape shipment report (CDGAC-3) to the Committee staff no later 
than 10 days after the last day of shipment for the season, or such 
later time, as the Committee deems appropriate. Any handler who ships 
grapes during the season will be required to report total shipments, 
and related information, to the Committee. The information requirements 
created by this action will be reported using one new Committee form, 
and by attaching shipment information required under the State of 
California research and promotion program to that form. The new 
reporting requirement will assist the Committee in obtaining accurate 
shipment data for assessment billing and for the next season's 
marketing decisions.
    The information collected will be used only by authorized 
representatives of the USDA, including AMS, Fruit and Vegetable 
Programs' regional and headquarters' staff, and authorized Committee 
employees. Authorized Committee employees are the primary users of the 
information and AMS is the secondary user.
    The request for approval of the new information collection under 
the order is as follows:

End of Season Shipment Report, CDGAC Form No. 3

    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 30 minutes per response.
    Respondents: Persons who ship California grapes from a designated 
area of Southeastern California.
    Estimated Number of Respondents: 20.
    Estimated Number of Responses per Respondent: 1.
    Estimated Total Annual Burden on Respondents: 10 hours.
    Comments: Comments are invited on: (1) Whether this collection of 
information is necessary for the proper 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

[[Page 21692]]

technological collection techniques or other forms of information 
technology.
    Comments should reference OMB No. 0581-0220 and the Marketing Order 
for Grapes Grown in a Designated Area of Southeastern California and be 
sent to the USDA in care of the Docket Clerk at the previously 
mentioned address. All comments timely 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 become a matter of public 
record. As mentioned before, because there was insufficient time for a 
normal clearance procedure and prompt implementation was needed, AMS 
has obtained emergency approval from OMB for the use of this form for 
the 2004 regulation period, which began April 2004. Upon publication of 
the final rule, this collection will be merged with the forms currently 
approved for use under OMB No. 0581-0189 ``Generic OMB Fruit Crops.''
    In summary, this rule establishes end-of-season reporting 
requirements authorized under the California grape order. Requiring 
handlers to file end-of-season grape shipment reports with the 
Committee will enable the Committee to obtain accurate shipment data 
for assessment billing and for the next season's marketing decisions 
without incurring the expense of auditing every handler. This action 
also is expected to reduce the handler costs, because the submission of 
end-of-season grape shipment reports should be less costly and less 
time consuming than yearly handler audits. Any comments received will 
be considered prior to finalization of this rule.
    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 action adds end-of-season grape shipment reporting 
requirements to facilitate handler and committee staff operations and 
to reduce costs; (2) the Committee unanimously recommended the end-of-
season reporting requirement at a public meeting and interested parties 
had an opportunity to provide input; (3) California grape shipments are 
expected to begin approximately April 20, 2004, and this rule should be 
in effect as soon as possible; (4) this rule provides for a 60-day 
comment period and any comments received will be considered prior to 
finalization of this rule.

List of Subjects in 7 CFR Part 925

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


0
For the reasons set forth in the preamble, 7 CFR part 925 is amended as 
follows:

PART 925--GRAPES GROWN IN A DESIGNATED AREA OF SOUTHEASTERN 
CALIFORNIA

0
1. The authority citation for 7 CFR part 925 continues to read as 
follows:

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


0
2. Section 925.160 is added to Subpart--Rules and Regulations to read 
as follows:


Sec.  925.160  Reports.

    When requested by the California Desert Grape Administrative 
Committee, each shipper who ships grapes, shall furnish an end-of-
season grape shipment report (CDGAC-3) to the Committee no later than 
10 days after the last day of shipment for the season or such later 
time the Committee deems appropriate. Such reports shall show the 
reporting period, the name and other identification of the shipper and 
grower, the invoice number, shipping date, varietal name, shipment 
destination (city and state), and the number of lugs shipped (pounds).

    Dated: April 16, 2004.
A.J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 04-9097 Filed 4-21-04; 8:45 am]
BILLING CODE 3410-02-P