[Federal Register Volume 69, Number 131 (Friday, July 9, 2004)]
[Rules and Regulations]
[Pages 41385-41388]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-15583]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 989

[Docket No. FV04-989-3 IFR]


Raisins Produced From Grapes Grown in California; Change to 
Reporting Requirements Regarding Other Seedless Raisins

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule.

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SUMMARY: This rule invites comments on changing the reporting 
requirements regarding Other Seedless (OS) raisins 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). The 
order provides authority for volume and quality regulations and 
reporting requirements by varietal type of raisin. The OS varietal type 
includes raisins produced from Flame Seedless (Flames) and other red 
grapes. This rule requires handlers to report to the RAC information on 
acquisitions, shipments, inventories, and inter-handler transfers of 
the different types of OS raisins, including Flames. The RAC will 
evaluate this data to determine whether segregating Flames into a 
separate varital type is warranted.

DATES: Effective July 12, 2004; comments received by September 7, 2004, 
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

[[Page 41386]]

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, e-mail: 
[email protected], or http://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: 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, 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 
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 (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. 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 invites comments on revising the reporting requirements 
regarding OS raisins under the order. The order provides authority for 
volume and quality regulations and reporting requirements by varietal 
type of raisin. The OS varietal type includes raisins produced from 
Flames and other red grapes. This rule requires handlers to report to 
the RAC information on acquisitions, shipments, inventories, and inter-
handler transfers of the different types of OS raisins, including 
Flames. The RAC will evaluate this data to determine whether 
segregating Flames into a separate varietal type is warranted. This 
action was unanimously recommended by the RAC at a meeting on April 13, 
2004.
    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.
    Many of the reports submitted by handlers under the order require 
information to be segregated by varietal type of raisin. Section 989.10 
defines varietal type to mean raisins generally recognized as 
possessing characteristics differing form other raisins in a degree 
sufficient enough to warrant separate identification and 
classification. Section 989.110 of the order's administrative rules and 
regulations contains a list and description of the nine varietal types 
currently segregated under the order.
    One of these varietal types, OS raisins, includes raisins produced 
from Flames and other similar seedless red grapes. There has been some 
discussion in recent years regarding whether Flames should be 
segregated into a separate varietal type. Between the 1995-96 and 2000-
01 crop years, volume regulation had not been implemented for OS 
raisins, and handlers were able to market all of the OS raisins they 
acquired. During this period, some handlers had expanded their market 
for Flames. When volume regulation was in effect for OS raisins for the 
2001-02 crop year, some Flame handlers had difficulty meeting their 
market needs.
    Thus, the RAC recommended revising the order's regulations to 
require handlers to report data on acquisitions, shipments 
(dispositions), inventories, and inter-handler transfers of Flames and 
other OS raisins to the RAC beginning with the 2004-05 crop year which 
starts on August 1, 2004. The RAC will review this information and 
determine whether segregating Flames into a separate varietal type is 
warranted. A separate varietal type would allow the RAC to consider the 
application of the order's volume regulation provisions for Flames 
separate from the other types of OS raisins. Accordingly, paragraphs 
(a) (inventory), (b) (acquisitions), (c) dispositions, and (d) inter-
handler transfers in Sec.  989.173 are revised. Paragraph (g) in Sec.  
989.173 regarding similar reports for organic raisins is also revised.

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

[[Page 41387]]

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 $750,000. 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. No more than 7 handlers, and a majority of producers, 
of California raisins may be classified as small entities.
    This rule revises Sec.  989.173 to require handlers to report 
acquisitions, shipments, inventories, and inter-handler transfers of 
the different types of raisins within the OS varietal type. This action 
is needed so that the RAC can collect accurate data on Flames, a 
particular type of OS raisin, and evaluate this information to 
determine whether Flames should be segregated into a separate varietal 
type under the order. This would permit the RAC to consider application 
of the order's volume regulation provisions to Flames separate from the 
other types of OS 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 imposes no measurable burden on OS raisin handlers. OS handlers 
will be required to separate out different types of OS raisins on 
reports that they are already submitting to the RAC. Most handlers have 
been doing this voluntarily in recent years. This action has no impact 
on raisin producers.
    The RAC considered alternatives to the recommended action. The RAC 
formed a work group to review the concerns raised by Flame handlers. 
One alternative considered was to proceed with informal rulemaking to 
establish a separate varietal type for Flames. Another alternative 
considered was to try to have all handlers voluntarily separate Flames 
from the other OS raisins on certain reports. After much discussion, 
the work group determined that the best course of action would be to 
collect data on Flames, evaluate the data, and then determine whether 
segregating Flames into a separate varietal type was warranted.
    This rule slightly modifies the reporting requirements on small and 
large raisin handlers. All raisin handlers are currently required to 
submit various reports to the RAC where the data collected is 
segregated by varietal type of raisin. These reports include:

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             Form nos.                                                                       Form
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RAC-1..............................  Weekly Report of Standard Raisin Acquisitions.
RAC-3..............................  Weekly Report of Standard Raisins Received for Memorandum Receipt or Warehousing.
RAC-20.............................  Monthly Report of Free Tonnage Raisin Disposition.
RAC-30.............................  Weekly Off-Grade Summary.
RAC-50.............................  Inventory of Free Tonnage Standard Quality Raisins on Hand.
RAC-51.............................  Inventory of Off-Grade Raisins on Hand.
RAC-1 CO...........................  Weekly Report of Organic Raisin Acquisitions.
RAC-20 CO..........................  Monthly Report of Free Tonnage Organic Raisin Disposition.
RAC-50 CO..........................  Inventory of Free Tonnage Standard Quality Organic Raisins on Hand.
RAC-51 CO..........................  Inventory of Off-Grade Raisins on Hand.
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    This rule requires that an extra line item be added to these 10 
forms so that handlers can separate out Flames from the other types of 
OS raisins. Handlers will also be required to indicate the type of OS 
raisin on the Inter-Handler Transfers of Free Tonnage Raisins (RAC-6), 
the Monthly Free Tonnage Exports by Country of Destination (RAC-21), 
and the Monthly Free Organic Tonnage Exports by Country of Destination 
(RAC-21 CO); no change to these forms is needed. The current total 
annual burden for all 13 of these forms is 873.48 hours. This rule will 
not add to this burden on handlers.
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
chapter 35), the information collection requirements referenced above 
have been approved by the Office of Management and Budget (OMB) under 
OMB Control No. 0581-0178, Vegetable and Specialty Crops. 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. Finally, USDA has not identified any 
relevant Federal rules that duplicate, overlap or conflict with this 
rule.
    Further, the RAC's work group meetings on February 12 and March 4, 
2004, the Administrative Issues Subcommittee and RAC meetings on April 
13, 2004, and the RAC's Executive Committee meeting on May 4, 2004, 
where this action was deliberated were all 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 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.
    Comments are invited concerning this rule. A 60-day comment period 
is provided to allow interested persons to respond. All comments 
received will be considered prior to finalization of this rule.
    After consideration of all relevant material presented, including 
the information and recommendation submitted by the RAC 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 RAC recommended that this action be in effect 
beginning with the 2004-05 crop year which begins on August 1, 2004; 
(2) this action was unanimously recommended by the RAC at a public 
meeting; (3) this action imposes no additional burden on California 
raisin handlers; and (4) this interim final rule provides a 60-day 
period for written comments, and all comments timely received will be 
considered prior to finalization of this rule.

[[Page 41388]]

List of Subjects in 7 CFR Part 989

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


0
For the reasons set forth in the preamble, 7 CFR part 989 is amended as 
follows:

PART 989--RAISINS PRODUCED FROM GRAPES GROWN IN CALIFORNIA

0
1. The authority citation for 7 CFR part 989 continues to read as 
follows:

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

0
2. Section 989.173 is amended by:
0
A. Revising paragraph (a) introductory text;
0
B. Revising the first sentence of paragraph (b)(1)(ii);
0
C. Revising paragraph (c)(1) introductory text;
0
D. Revising paragraph (d)(1)(iii); and
0
E. Revising paragraph (g) to read as follows:


Sec.  989.173  Reports.

    (a) Inventory reports. Each handler shall submit to the Committee 
as of the close of business on July 31 of each crop year, and not later 
than the following August 6, an inventory report which shall show, with 
respect to each varietal type of raisins held by such handler: 
Provided, That, for the Other Seedless varietal type, handlers shall 
report the information required in this paragraph separately for the 
different types of Other Seedless raisins:
* * * * *
    (b) * * *
    (ii) For each report required to be submitted pursuant to this 
paragraph, the required information shall be shown separately for each 
varietal type: Provided, That, for the Other Seedless varietal type, 
the required information shall be shown separately for the different 
types of Other Seedless raisins. * * *
* * * * *
    (c) Reports of disposition--(1) Free tonnage raisins.
    Each month each handler who is not a processor shall furnish to the 
Committee, on an appropriate form provided by the Committee and so that 
it is received by the Committee not later than the seventh day of the 
month, a report showing the aggregate quantity of each varietal type 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 transfers within the State of California 
between plants of any such handler and from such handler to other 
handlers): Provided, That, for the Other Seedless varietal type, 
handlers shall report such information for the different types of Other 
Seedless raisins. Such required information shall be segregated as to:
* * * * *
    (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: Provided, That, 
for the Other Seedless varietal type, handlers shall report such 
information for the different types of Other Seedless raisins; 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 or such certifying 
organization accredited under the National Organic Program. Handlers of 
such raisins shall submit the following reports to the Committee by 
varietal type: Provided: That, for the Other Seedless varietal type, 
handlers shall report such information for the different types of Other 
Seedless raisins.
* * * * *

    Dated: July 1, 2004.
A.J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 04-15583 Filed 7-8-04; 8:45 am]
BILLING CODE 3410-02-P