[Federal Register Volume 72, Number 185 (Tuesday, September 25, 2007)]
[Rules and Regulations]
[Pages 54341-54343]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-18794]



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  Federal Register / Vol. 72, No. 185 / Tuesday, September 25, 2007 / 
Rules and Regulations  

[[Page 54341]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 989

[Docket No. AMS-FV-07-0083; FV07-989-3 FIR]


Raisins Produced From Grapes Grown in California; Change in 
Requirements for Interhandler Transfers of Raisins

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: The Department of Agriculture (USDA) is adopting, as a final 
rule, without change, an interim final rule changing the requirements 
for interhandler transfers of raisins under the administrative rules 
and regulations of the California raisin marketing order (order). The 
order regulates the handling of raisins produced from grapes grown in 
California and is administered locally by the Raisin Administrative 
California (Committee or RAC). This rule continues in effect the action 
that requires handlers who transfer raisins to other handlers within 
the State of California to certify to the Committee that only acquired, 
free-tonnage raisins that meet all applicable order requirements are 
being transferred to receiving handlers. This action helps maintain the 
integrity of the order by ensuring that handlers only transfer 
acquired, free-tonnage raisins that meet applicable order requirements.

EFFECTIVE DATE: October 25, 2007.

FOR FURTHER INFORMATION CONTACT: Rose M. Aguayo, 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 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 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.''
    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 continues in effect revisions to the requirements for 
interhandler transfers of raisins under the administrative rules and 
regulations of the California raisin order. This rule requires handlers 
who transfer raisins to other handlers within the State of California 
to certify to the Committee that only acquired, free-tonnage raisins 
that meet all applicable order requirements are being transferred.
    Pursuant to Sec.  989.17, ``acquire means to have or obtain 
physical possession of raisins by a handler at his packing or 
processing plant or at any other established receiving station operated 
by him.'' However, handlers are not deemed to acquire raisins if they 
are being stored for another, being reconditioned, or held for 
inspection. Also the term only applies to the handler who first obtains 
possession of the raisins. Free tonnage raisins are those raisins which 
have been acquired, not placed in the reserve pool, and for which 
producers receive payment for 100 percent of handler purchases. This 
change helps maintain the integrity of the order and was unanimously 
recommended by the Committee at a public meeting on April 12, 2007.
    Section 989.59(e) of the order provides authority for handlers who 
acquire free-tonnage raisins to transfer such raisins to other handlers 
within the State of California. It also specifies that transferring 
handlers shall promptly report such transfers to the Committee, unless 
transfers are between plants owned or operated by the same handler. 
Further, it specifies that receiving handlers shall comply with all 
applicable order requirements before shipping or otherwise making final 
disposition of such raisins.
    Section 989.73 of the order provides authority for the RAC to 
collect reports from handlers and specifies that, upon request by the 
RAC, with the approval of 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 
interhandler transfers. 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. Under Sec.  989.173(d)(1) of the order's rules and 
regulations any handler who transfers free-tonnage raisins to another 
handler within the State of California shall submit a report to the 
Committee showing information regarding the interhandler transfer not

[[Page 54342]]

later than five calendar days following such transfer.
    Such information includes the transfer date; the names and 
addresses of the transferring parties; the varietal type, net weight, 
and condition of the raisins transferred; and the inspection 
certificate number, if the raisins have already been packed. 
Transferring handlers are required to forward two copies of the RAC 
Form No. 6, ``Interhandler Transfers of Free-Tonnage Raisins,'' to the 
receiving handler at the same time the report is submitted to the 
Committee. The receiving handler is required to certify receiving the 
raisins and to submit one copy of the certification report to the 
Committee within five calendar days of receiving the raisins or the 
copies of RAC Form No. 6, whichever is later.
    The Committee is concerned that some handlers may be transferring 
California raisins which are not acquired or which do not meet all 
applicable order requirements. Such requirements include proper 
reporting, inspection, assessments, and volume regulation. To help 
ensure that handlers only transfer acquired, free-tonnage raisins that 
meet all applicable order requirements, the Committee unanimously 
recommended that transferring handlers certify on RAC Form No. 6, 
``Interhandler Transfer of Free-Tonnage Raisins,'' that only acquired, 
free-tonnage raisins that meet all applicable order requirements are 
being transferred. The Committee expects that requiring this 
certification should help maintain the integrity of the order.
    This rule continues to modify Sec.  989.173(d)(1) by deleting the 
word ``and'' from paragraph (iii); by changing the period to a semi-
colon and adding the word ``and'' at end of paragraph (iv); and by 
adding a new subparagraph (v), which requires handlers to certify that 
the raisins being transferred are acquired, free-tonnage raisins that 
meet all applicable order requirements including proper reporting, 
incoming inspection, assessments, and volume regulation.
    The RAC Form No. 6, ``Interhandler Transfer of Free-Tonnage 
Raisins'' has been modified by the addition of the following paragraph: 
``To Be Completed by Transferring Handler: The undersigned certifies 
that the raisins being transferred have met all Federal order 
requirements, including proper reporting, incoming inspection, 
assessments, and volume regulations, if applicable.'' No additional 
reporting burden is placed upon handlers.

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.
    There are approximately 23 handlers of California raisins who are 
subject to regulation under the order and approximately 4,000 raisin 
producers in the regulated area. Small agricultural service firms are 
defined by the Small Business Administration (SBA) (13 CFR 121.201) as 
those having annual receipts of less than $6,500,000, and small 
agricultural producers are defined as those having annual receipts of 
less than $750,000. No more than 10 handlers, and a majority of 
producers, of California raisins may be classified as small entities. 
Thirteen of the 23 handlers subject to regulation have annual sales 
estimated to be at least $6,500,000, and the remaining 10 handlers have 
sales less than $6,500,000.
    This rule continues to revise Sec.  989.173(d)(1) of the order's 
administrative rules and regulations and requires handlers who transfer 
raisins to other handlers to certify on RAC Form No. 6, ``Interhandler 
Transfer of Free-Tonnage Raisins,'' that only acquired, free-tonnage 
raisins that meet all applicable order requirements are being 
transferred. This helps maintain the integrity of the order. Authority 
for interhandler transfers is provided in Sec.  989.59, and authority 
to recommend this change is provided in Sec.  989.73 of the order.
    Regarding the impact of this action on affected entities, it 
continues to require handlers who transfer raisins to other handlers to 
certify on RAC Form No. 6, ``Interhandler Transfer of Free-Tonnage 
Raisins,'' that such raisins are acquired, free-tonnage raisins that 
meet all applicable order requirements.
    The Committee considered not requiring handlers to certify that 
their transferred raisins are acquired free-tonnage raisins and that 
they meet all applicable order requirements. However, the Committee was 
concerned that some handlers may be transferring California raisins 
which are not acquired or which do not meet all applicable order 
requirements. Such requirements include proper reporting, incoming 
inspection, assessments, and volume regulation. As receiving handlers 
want additional assurance that they are receiving raisins which have 
been acquired and which meet applicable order requirements, the 
Committee unanimously recommended revising the requirements regarding 
interhandler transfers of free-tonnage raisins.
    All handlers must currently report their interhandler transfers to 
the Committee on RAC Form No. 6, ``Interhandler Transfer of Free-
Tonnage Raisins.'' This form is currently approved by the Office of 
Management and Budget (OMB) under OMB No. 0581-0178, Vegetable and 
Specialty Crops. This rule continues to add a certifying statement 
above the transferring handler's signature block to this form.
    This rule will not impose any additional reporting or recordkeeping 
requirements on either small or large raisin handlers. As with all 
Federal marketing order programs, reports and forms are periodically 
reviewed to reduce information requirements and duplication by the 
industry and public sector agencies. In addition, as noted in the final 
regulatory flexibility analysis, USDA has not identified any relevant 
Federal rules that duplicate, overlap or conflict with this rule.
    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 meetings were widely publicized throughout 
the California raisin industry and all interested persons were invited 
to attend the meetings and participate in deliberations on all issues. 
The Committee's Administrative Issues Work Group discussed this issue 
at length during meetings on January 23, and February 1, 2007. The 
Administrative Issues Subcommittee thus recommended the change to the 
Committee on April 12, 2007. All of these meetings were public meetings 
and all entities, both large and small, were able to express views on 
this issue.
    An interim final rule concerning this action was published in the 
Federal Register on August 7, 2007. Copies of the rule were also mailed 
to Committee members and alternates and all raisin handlers. In 
addition, the rule was made

[[Page 54343]]

available through the Internet by USDA and the Office of the Federal 
Register. That rule provided for a 15-day comment period which ended on 
August 22, 2007. One comment supporting the rule was received. The 
commenter concurred that this action helps to maintain the integrity of 
the order.
    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 materials presented, including 
the Committee's recommendation, and other information, it is found that 
finalizing this interim final rule, without change, as published in the 
Federal Register (72 FR 44029, August 7, 2007), will tend to effectuate 
the declared policy of the Act.

List of Subjects in 7 CFR Part 989

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

PART 989--RAISINS PRODUCED FROM GRAPES GROWN IN CALIFORNIA

0
Accordingly, the interim final rule amending 7 CFR part 989 which was 
published at 72 FR 44029 on August 7, 2007, is adopted as a final rule 
without change.

    Dated: September 19, 2007.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
 [FR Doc. E7-18794 Filed 9-24-07; 8:45 am]
BILLING CODE 3410-02-P