[Federal Register Volume 73, Number 78 (Tuesday, April 22, 2008)]
[Proposed Rules]
[Pages 21551-21553]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-8639]


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 Proposed Rules
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
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  Federal Register / Vol. 73, No. 78 / Tuesday, April 22, 2008 / 
Proposed Rules  

[[Page 21551]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 989

[Docket No. AMS-FV-07-0117; FV07-989-4 PR]


Raisins Produced From Grapes Grown in California; Revisions to 
Requirements Regarding Off-Grade Raisins

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This proposed rule invites comments on revising the 
requirements regarding off-grade 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 (Committee). This 
proposed rule would revise the requirement that notification handlers 
must provide to the inspection service and the Committee when they 
perform certain functions on off-grade raisins be in writing, thereby 
allowing them to use other means of communication, including e-mail. 
This proposed rule would also remove the requirement that handlers 
submit reports to the Committee regarding transfers of off-grade and 
other failing raisins. This action would bring the order's 
administrative rules and regulations in line with current industry 
practices.

DATES: Comments must be received by May 22, 2008.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposal. 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 Internet: 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.regulations.gov.

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 proposal 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.''
    The Department of Agriculture (USDA) is issuing this rule in 
conformance with Executive Order 12866.
    This proposal has been reviewed under Executive Order 12988, Civil 
Justice Reform. This rule is not intended to have retroactive effect. 
This proposal 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 proposal invites comments on revising the requirements 
regarding off-grade raisins under the order. This rule would revise the 
requirement that notification handlers must provide to the Processed 
Products Branch, Fruit and Vegetable Programs, Agricultural Marketing 
Service (AMS), USDA (hereinafter referred to as the inspection service) 
and the Committee when they perform certain functions on off-grade 
raisins be in writing, thereby allowing them to use other means of 
communication, including e-mail. This rule would also remove the 
requirement that handlers submit reports to the Committee regarding 
transfers of off-grade and other failing raisins. This action would 
bring the order's administrative rules and regulations in line with 
current industry practices and was unanimously recommended by the 
Committee at a meeting on July 11, 2007.
    The order provides authority for quality control whereby handlers 
must have their raisins inspected upon receipt from producers and prior 
to shipment. Handlers may receive raisins that do not meet minimum 
standards. Section 989.24(b) specifies that off-grade raisins are 
raisins which do not meet the then effective minimum grade and 
condition standards for natural condition raisins (or raisins that have 
not been processed). Off-grade raisins that cannot be successfully 
reconditioned to meet the applicable minimum grade standards for 
processed raisins become other failing raisins.
    Section 989.58(e) provides requirements for off-grade raisins. 
Paragraph (1) of that section specifies that off-grade raisins may be 
received or acquired by the handler, without further inspection, in 
eligible non-normal outlets (such as animal feed); be returned 
unstemmed to the person tendering the raisins (usually the producer); 
or be received by the handler for reconditioning. Off-grade raisins 
received by handlers under any one of

[[Page 21552]]

these three categories may be changed to any of the other categories 
under such rules and procedures recommended by the Committee and 
approved by the Secretary of Agriculture (Secretary). Paragraph (2) of 
that section specifies that off-grade raisins may be transferred from a 
receiving handler's plant to another plant of his/hers or to that of 
another handler within the State of California.
    Section 989.158(c) specifies rules and procedures for off-grade 
raisins. Paragraph (2) of that section requires that handlers notify 
the inspection service in writing prior to making any changes in off-
grade raisin categories as described above. Paragraph (3) of that 
section requires handlers to notify the inspection service in advance 
and in writing on a form provided by the Committee, of the time they 
plan to transfer lots of off-grade raisins for reconditioning. They 
must also provide the Committee this form. Paragraph (4) of that 
section specifies that handlers must notify the inspection service in 
writing prior to reconditioning off-grade raisins. Paragraph (6) of 
that section requires handlers to notify the inspection service in 
writing before transferring stemmed raisins to another handler for 
reconditioning, and to obtain from the receiving handler a statement 
that he or she will receive such raisins for reconditioning. Copies of 
the inspection notification and receiving handler statement must be 
forwarded by the transferring handler to the Committee.
    Section 989.73(d) of the order provides authority for the 
Committee, with approval of the Secretary, to request other information 
from handlers that may be necessary for the Committee to perform its 
duties. Section 989.173(d)(2) specifies that handlers must report to 
the Committee information regarding transfers of off-grade raisins and 
other failing raisins, including the date of the transfer, the name and 
address of the receiving handler and location of his or her plant, the 
name and address of the tenderer of each lot included in the transfer 
and the inspection certificate numbers applicable to the lot, and the 
varietal type, net weight, and condition of the raisins.
    In the early 1990's, the inspection service began computerizing 
much of the information regarding raisin inspections, including data 
regarding off-grade raisins. This computerized data is shared with 
Committee staff. The inspection service generates reports from this 
database as needed and provides the information to handlers. Handlers 
now notify the inspection service verbally or by other means of 
communication, including e-mail, before they change off-grade raisin 
categories, transfer off-grade raisins for reconditioning, recondition 
off-grade raisins, or transfer off-grade raisins that have been stemmed 
to another handler for reconditioning. Thus, it is no longer necessary 
for handlers to provide such notification in writing, too.
    Likewise, it is not necessary for handlers to submit reports to the 
Committee on transfers of off-grade or other failing raisins. As stated 
above, the computerized data regarding off-grade raisins generated by 
the inspection service is shared with Committee staff. Additionally, 
handlers submit other weekly and monthly reports to the Committee 
regarding off-grade and other failing raisins that allows Committee 
staff to track such raisins. These include the RAC-28, Processor's 
Report of Acquisition of Off-Grade Raisins; RAC-28A, Processor's Report 
of Disposition of Off-Grade Raisins and Raisin Residual Material; the 
RAC-30, Weekly Off-Grade Summary; the RAC-32, Monthly Report of 
Dispositions of Off-Grade Raisins, Other Failing Raisins and Raisin 
Residual Material; the RAC-33, Weekly Report of Disposition of Standard 
Raisins Recovered from Reconditioning of Off-Grade Raisins, and the 
RAC-51 CO, Inventory of Off-Grade Raisins on Hand (for organically 
produced raisins). These forms will continue to be used and are 
currently approved by the Office of Management and Budget (OMB) under 
OMB No. 0581-0178, Vegetable and Specialty Crops.
    Thus, the Committee recommended revising the order's administrative 
rules and regulations to remove these requirements and reflect current 
industry practices. Accordingly, this rule would revise paragraphs (2), 
(3), (4)(i), and (6)(ii) in Sec.  989.158(c) and remove paragraph 
(d)(2) in Sec.  989.173.

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.
    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 have 
been defined by the Small Business Administration (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.
    This rule would revise Sec.  989.158(c) regarding the requirement 
that notification handlers must provide to the inspection service and 
the Committee when they perform certain functions on off-grade raisins 
be in writing, therefore, allowing them to use other means of 
communication, including e-mail. Handlers now provide such notification 
verbally or by other means of communication; written notification is no 
longer necessary. This rule would also revise Sec.  989.173(d) to 
remove the requirement that handlers must submit reports to the 
Committee on transfers of off-grade and other failing raisins. Handlers 
submit other weekly and monthly reports to the Committee regarding off-
grade and other failing raisins that allows Committee staff to track 
such raisins. These changes would bring the order's administrative 
rules and regulations in line with current industry practices. 
Authority for these changes is provided in Sec. Sec.  989.58(e) and 
989.73(d) of the order, respectively.
    Regarding the impact of this action on producers and handlers, 
these changes would not impact producers, and would remove requirements 
on handlers that are not necessary. It would bring the administrative 
rules and regulations in line with current industry practices.
    An alternative to this action would be to maintain the status quo. 
However, this would not be practical since the requirements are no 
longer necessary. Handlers now notify the inspection service and the 
Committee verbally or by other means of communication before they 
perform certain functions on off-grade raisins. Additionally, handlers 
submit other weekly and monthly reports to the Committee regarding off-
grade and other failing raisins that allows Committee staff to track 
such raisins. Thus, the Committee recommended revising the regulations 
to bring them in line with current industry practices.

[[Page 21553]]

    This action would revise the reporting and recordkeeping 
requirements specified in the order's administrative rules and 
regulations for all California raisin handlers. These requirements were 
approved under OMB No. 0581-0178, Vegetable and Specialty Crops. No 
change to this approval is warranted as a result of this action. This 
action would bring the regulations in line with current industry 
practices. Data regarding off-grade raisins has been computerized since 
the early 1990's. It is no longer necessary for handlers to advise the 
inspection service nor the Committee in writing when they perform 
certain functions regarding off-grade raisins. Handlers provide such 
notification verbally or by other means of communication, including e-
mail. The time it takes to provide such information is minimal. 
Likewise, it is no longer necessary for handlers to submit reports to 
the Committee regarding transfers of off-grade for reconditioning or 
other failing raisins. Handlers submit other weekly and monthly reports 
to the Committee regarding off-grade and other failing raisins that 
allows Committee staff to track such raisins.
    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.
    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.
    USDA has not identified any relevant Federal rules that duplicate, 
overlap or conflict with this proposed rule.
    In addition, the Committee's July 11, 2007, meeting and the 
Administrative Issues Subcommittee meeting held earlier that day were 
widely publicized throughout the raisin industry. All interested 
persons were invited to attend the meetings and participate in 
Committee deliberations on all issues. Like all Committee meetings, 
both were public meetings and all entities, both large and small, were 
able to express views on this issue. Finally, interested persons are 
invited to submit comments on this proposed rule, including 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.
    A 30-day comment period is provided to allow interested persons to 
respond to this proposal. Thirty days is deemed appropriate because 
this action removes requirements upon handlers that are no longer 
necessary. All written comments timely received will be considered 
before a final determination is made on this matter.

List of Subjects in 7 CFR Part 989

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

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

PART 989--RAISINS PRODUCED FROM GRAPES GROWN IN CALIFORNIA

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

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

    2. Section 989.158 is amended as follows:
    a. In paragraph (c)(2), the second sentence is revised, and a new 
sentence is added after it;
    b. In paragraph (c)(3), the fourth sentence is revised, and a new 
sentence is added after it;
    c. In paragraph (c)(4)(i), the first sentence is revised, and a new 
sentence is added after it; and
    d. Paragraph (C)(6)(ii) is revised.
    The revised and added text reads as follows:


Sec.  989.158  Natural condition raisins.

* * * * *
    (c) * * *
    (2) * * * Prior to making such change, the handler shall notify the 
inspection service at least one business day in advance of the time 
such handler plans to begin such change. Such notification shall be 
provided verbally or by other means of communication, including e-mail. 
* * *
    (3) * * * The handler shall notify the inspection service in 
advance of the time such handler plans to transfer each lot. Such 
notification shall be provided verbally or by other means of 
communication, including e-mail. * * *
    (4) * * *
    (i) The handler shall notify the inspection service at least one 
business day in advance of the time such handler plans to begin 
reconditioning each lot of raisins, unless a shorter period is 
acceptable to the inspection service. Such notification shall be 
provided verbally or by other means of communication, including e-mail. 
* * *
* * * * *
    (6) * * *
    (ii) Any packer may arrange for or permit the tenderer to remove 
the stemmed raisins (described in paragraph (c)(6)(i) of this section), 
but not the residual, directly to the premises, within California, of 
another packer for further reconditioning of the raisins at the 
latter's premises. Such removal and transfer shall be made under the 
surveillance of the inspection service. The packer shall notify the 
inspection service as required in paragraph (c)(3) of this section. 
Such raisins may be received by the other packer without inspection. On 
and after such receipt of the raisins for further reconditioning, all 
applicable provisions of this part shall apply with respect to such 
raisins and the packer so receiving them.
* * * * *


Sec.  989.173  [Amended]

    3. In Sec.  989.173, paragraph (d)(2) is removed and reserved.

    Dated: April 16, 2008.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. E8-8639 Filed 4-21-08; 8:45 am]
BILLING CODE 3410-02-P