[Federal Register Volume 73, Number 140 (Monday, July 21, 2008)]
[Rules and Regulations]
[Pages 42257-42259]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-16605]



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 Rules and Regulations
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  Federal Register / Vol. 73, No. 140 / Monday, July 21, 2008 / Rules 
and Regulations  

[[Page 42257]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 989

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


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

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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

SUMMARY: This rule revises 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 rule revises 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 rule also removes the requirement that handlers 
submit reports to the Committee regarding transfers of off-grade and 
other failing raisins. This action brings the order's administrative 
rules and regulations in line with current industry practices.

EFFECTIVE DATE: August 20, 2008.

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 final 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.''
    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 revises requirements regarding off-grade raisins 
under the order. This rule revises 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 also removes the requirement that handlers submit 
reports to the Committee regarding transfers of off-grade and other 
failing raisins. This action brings 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 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

[[Page 42258]]

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 1990s, the inspection service began computerizing much 
of the information regarding raisin inspections, including data 
regarding off-grade raisins. These computerized data are 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 are 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.

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 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 21 handlers of California raisins who are 
subject to regulation under the order and approximately 3,000 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 final rule revises 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 also revises Sec.  989.173(d) by removing 
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 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 will not impact producers, and will remove requirements 
on handlers that are not necessary. It brings the administrative rules 
and regulations in line with current industry practices.
    As an alternative, the Committee considered maintaining the status 
quo. However, this is not 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.
    This action revises 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 brings 
the regulations in line with current industry practices. Data regarding 
off-grade raisins have been computerized since the early 1990s. 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

[[Page 42259]]

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.
    As noted in the initial regulatory flexibility analysis, USDA has 
not identified any relevant Federal rules that duplicate, overlap or 
conflict with this final 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.
    A proposed rule concerning this action was published in the Federal 
Register on April 22, 2008 (72 FR 21551). Copies of the rule were 
mailed or sent via facsimile to all Committee members and raisin 
handlers. Finally, the rule was made available through the Internet by 
USDA and the Office of the Federal Register. A 30-day comment period 
ending May 22, 2008, was provided to allow interested persons to 
respond to the proposal. No comments were received.
    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/AMSv1.0/ams.fetchTemplateData.do?template=TemplateN&page=MarketingOrdersSmallBusinessGuide. 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.

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 989.158 is amended as follows:
0
a. In paragraph (c)(2), the second sentence is revised, and a new 
sentence is added after it;
0
b. In paragraph (c)(3), the fourth sentence is revised, and a new 
sentence is added after it;
0
c. In paragraph (c)(4)(i), the first sentence is revised, and a new 
sentence is added after it; and
0
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]

0
3. In Sec.  989.173, paragraph (d)(2) is removed and reserved.

    Dated: July 16, 2008.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. E8-16605 Filed 7-18-08; 8:45 am]
BILLING CODE 3410-02-P