[Federal Register Volume 72, Number 103 (Wednesday, May 30, 2007)]
[Rules and Regulations]
[Pages 29839-29840]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-10280]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 925

[Docket No. AMS-FV-07-0028; FV07-925-1 FR]


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

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: This rule revises the reporting requirements established under 
the California desert grape marketing order, which regulates the 
handling of grapes grown in a designated area of Southeastern 
California. The marketing order is administered locally by the 
California Desert Grape Administrative Committee (CDGAC or committee). 
This rule requires handlers to provide an annual report to the 
committee which lists the acreages devoted to grapes for fresh 
shipment, the owners and locations of the acreages, and varieties 
produced thereon that the handler will be handling during the upcoming 
season. This change allows the committee to collect information on the 
acreage and varieties of desert grapes regulated under the marketing 
order, thus improving data collection and the efficient operation of 
the program.

EFFECTIVE DATES: May 31, 2007.

FOR FURTHER INFORMATION CONTACT: Terry Vawter, Marketing Specialist, or 
Kurt J. Kimmel, Regional Manager, California Marketing Field Office, 
Marketing Order Administration Branch, Fruit and Vegetable Programs, 
AMS, USDA; Telephone: (559) 487-5901, Fax: (559) 487-5906, or E-mail: 
[email protected] or [email protected].
    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 final rule is issued under Marketing 
Agreement and Order No. 925, both as amended (7 CFR part 925), 
regulating the handling of grapes grown in a designated area of 
southeastern 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 final rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. This rule is not intended to have retroactive 
effect. This final 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 final rule changes the reporting requirements under the order 
by requiring handlers to file an annual acreage survey which lists the 
acreages devoted to grapes, the locations and owners of the acreage, 
and varieties produced thereon for fresh shipment that the handler will 
be handling during the upcoming season. The form provides information 
necessary for the committee to estimate annual production, determine 
the necessary assessment rate, and establish an annual budget of 
expenses. This change was unanimously recommended by the committee at a 
meeting on February 6, 2007.
    Section 925.60 provides authority for the committee, with the 
approval of USDA, to require handlers to furnish information to the 
committee. Currently, Sec.  925.60(a) requires handlers to file reports 
of shipments of grapes. Under Sec.  925.60(b), the committee is 
authorized, with the approval of USDA, to require handlers to furnish 
such other information as it may prescribe and may be necessary to 
enable the committee to perform its duties under the order.
    The acreage survey is currently an approved form authorized for use 
by the committee. The form was initially included so that the committee 
could, at some future time, recommend requiring handlers to use the 
form if it were determined that aggregating information on grape 
acreage would provide a benefit to the industry.
    The committee met on February 6, 2007, and discussed the grape 
acreage survey. At this time, the committee believes the report would 
provide valuable information and unanimously recommended that it be a 
mandatory report, such as those authorized under Sec.  925.60. This 
change is intended to enhance the efficient operation of the program by 
permitting the committee to collect production data, which, in turn, 
would allow them to have more accurate information for establishing a 
crop estimate, determining an

[[Page 29840]]

assessment rate, and developing an annual budget of expenses.

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 action 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 50 producers of grapes in the production 
area and approximately 20 handlers subject to regulation under the 
marketing order. The Small Business Administration (13 CFR 121.201) 
defines small agricultural producers as those having annual receipts 
less than $750,000 and defines small agricultural service firms as 
those whose annual receipts are less than $6,500,000.
    Last year, six of the 20 handlers subject to regulation had annual 
grape sales of at least $6,500,000. In addition, 10 of the 50 producers 
had annual sales of at least $750,000. Therefore, a majority of 
handlers and producers may be classified as small entities.
    This final rule revises Sec.  925.160 of the order's rules and 
regulations to include the requirement that handlers file an annual 
grape acreage survey.
    This final rule imposes minimal additional costs on handlers 
regulated under the order. The benefits of this proposed rule are not 
expected to be disproportionately greater or less for small handlers 
than for large entities.
    At the meeting, the committee discussed an alternative to this 
change, which would be to ask handlers to voluntarily report grape 
acreage. However, under voluntary reporting it is possible that all 
handlers would not report the information, making it difficult for the 
committee to aggregate accurate information for the committee's crop 
estimate, assessment rate, and budget of expenses. The committee agreed 
that this alternative would not be in the best interest of the 
committee and the industry, and unanimously recommended mandating the 
report.
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the information collection requirements that are contained 
in this rule are currently approved by the Office of Management and 
Budget (OMB), under OMB No. 0581-0189, Generic OMB Fruit Crops.
    USDA has not identified any relevant Federal rules that duplicate, 
overlap or conflict with this rule. 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.
    The AMS is committed to complying with the E-Government Act, to 
promote the use of the Internet and other information technologies to 
provide increased opportunities for citizen access to Government 
information and services, and for other purposes.
    Further, the committee's meeting on February 6, 2007, was widely 
publicized throughout the desert grape industry and all interested 
persons were encouraged to attend the meeting and participate in 
committee deliberations. Like all committee meetings, the February 6, 
2007, meeting was a public meeting; and all entities, both large and 
small, were encouraged to express their views on this issue. All 
interested persons were invited to attend this meeting and encouraged 
to participate in the industry's deliberations.
    A proposed rule concerning this action was published in the Federal 
Register on April 16, 2007 (72 FR 18922). Copies of the rule were 
provided to all committee members and regulated handlers. Finally, the 
rule was made available through the Internet by USDA and the Office of 
the Federal Register. A 15-day comment period ending May 1, 2007, was 
provided to allow interested persons to respond to the proposal. No 
comments were received. Accordingly, no changes will be made to the 
rule as proposed.
    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 matters 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.
    It is further found that good cause exists for not postponing the 
effective date of this rule until 30 days after publication in the 
Federal Register (5 U.S.C. 553) because the order regulations went into 
effect on April 20, 2007, and the committee needs to have the 
information during this crop year. Further, handlers are aware of this 
rule, which was recommended at a public meeting. Also, a 15-day comment 
period was provided in the proposed rule.

List of Subjects in 7 CFR Part 925

    Grapes, Marketing agreements, 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. In Sec.  925.160, the current paragraph is redesignated as paragraph 
(a), and a new paragraph (b) is added to read as follows:


Sec.  925.160  Reports.

    (a) * * *
    (b) When requested by the California Desert Grape Administrative 
Committee (CDGAC), each shipper who ships grapes shall furnish to the 
committee at such time as the committee shall require, an annual grape 
acreage survey (CDGAC Form 7), which shall include, but is not limited 
to, the following: The applicable year in which the report is 
requested; the names of the shipper (handler) who will handle the 
grapes and the grower who produces them; the location of each vineyard; 
the variety or varieties grown in each vineyard; and the bearing, non-
bearing, and total acres of each vineyard.

    Dated: May 23, 2007.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
 [FR Doc. E7-10280 Filed 5-29-07; 8:45 am]
BILLING CODE 3410-02-P