Grapes Grown in a Designated Area of Southeastern California; Expenses for the 1995 Fiscal Year

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 925

[Docket No. FV94-925-1-FIR]

Grapes Grown in a Designated Area of Southeastern California;

Expenses for the 1995 Fiscal Year

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: The Department of Agriculture (Department) is adopting as a

final rule, without change, the provisions of the interim final rule

that authorized expenses for the California Desert Grape Administrative

Committee (Committee) under Marketing Order No. 925 for the 1995 fiscal

year. Authorization of this budget enables the Committee to incur

expenses that are reasonable and necessary to administer its program.

[[Page 16766]] EFFECTIVE DATE: January 1, 1995, through December 31,

1995.

FOR FURTHER INFORMATION CONTACT: Charles L. Rush, Marketing Order

Administration Branch, Fruit and Vegetable Division, AMS, USDA, P.O.

Box 96456, Room 2523-S, Washington, D.C. 20090-6456, telephone: (202)

690-3670; or Rose Aguayo, California Marketing Field Office, Fruit and

Vegetable Division, AMS, USDA, 2202 Monterey Street, Suite 102 B,

Fresno, California 93721, telephone: (209) 487-5901.

SUPPLEMENTARY INFORMATION: This final rule is issued under Marketing

Agreement and Order No. 925 (7 CFR Part 925) regulating the handling of

table grapes grown in a designated area of California. 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 is issuing this rule in conformance with Executive

Order 12866.

This final rule has been reviewed under Executive Order 12778,

Civil Justice Reform. This rule authorizes expenditures for the 1995

fiscal year, beginning January 1, 1995, through December 31, 1995. 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 the Secretary 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 requesting 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 the Secretary 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 in equity to review

the Secretary's ruling on the petition, provided a bill in equity is

filed not later than 20 days after date of the entry of the ruling.

Pursuant to the requirements set forth in the Regulatory

Flexibility Act (RFA), the Administrator of the Agricultural Marketing

Service (AMS) has considered the economic impact of this rule on small

entities.

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 grapes regulated under the

marketing order each season and approximately 90 grape producers in

California. Small agricultural producers have been defined by the Small

Business Administration [13 CFR 121.601] as those having annual

receipts of less than $500,000, and small agricultural service firms

are defined as those whose annual receipts are less than $5,000,000.

The majority of these handlers and producers may be classified as small

entities.

The table grape marketing order, administered by the Department,

requires that the assessment rate for a particular fiscal year apply to

all assessable grapes handled from the beginning of such year. Annual

budgets of expenses are prepared by the Committee, the agency

responsible for local administration of this marketing order, and

submitted to the Department for approval. The members of the Committee

are handlers and producers of California table grapes. They are

familiar with the Committee's needs and with the costs for goods,

services, and personnel in their local area, and are thus in a position

to formulate appropriate budgets. The Committee's budget is formulated

and discussed in a public meeting. Thus, all directly affected persons

have an opportunity to participate and provide input.

The assessment rate recommended by the Committee is derived by

dividing the anticipated expenses by expected shipments of table

grapes. Because that rate is applied to actual shipments, it must be

established at a rate which will provide sufficient income to pay the

Committee's expected expenses.

The Committee met on October 20, 1994, and unanimously recommended

expenses of $54,427 and an assessment rate of $0.005 per lug. However,

the reserve fund was in excess of the amount of expenses for one year.

Section 925.42 of the order specifies that the reserve fund may not

exceed approximately one fiscal year's expenses. Accordingly, the

Department returned the recommendation to the Committee for

reconsideration.

The Committee conducted a telephone vote on November 21, 1994, and

approved by a majority vote a revised budget with an additional $20,000

for salaries. There were two Committee members who were unavailable to

vote. The Committee's recommended revised total expense is $74,427,

which is $29,117 less in expenses than the previous year.

The Committee also recommended not to have an assessment rate for

the 1995 fiscal year. The $2,500 in interest income and $71,927 from

the Committee's authorized reserves will adequately cover estimated

expenses.

Major expense categories for the 1995 fiscal year include $24,000

for the Western Grape Leaf Skeletonizer project, $12,487 for salaries,

$20,000 for salaries of Los Angeles Market inspectors and $4,440 for

rent. Funds in the reserve at the end of the 1995 fiscal year are

estimated at $93,431.

This action will not impose additional costs on handlers. The

Administrator of the AMS has determined that this action will not have

a significant economic impact on a substantial number of small

entities.

This action was issued as an interim final rule on January 12,

1995, and published in the Federal Register (60 FR 3725, January 19,

1995). A 30-day comment period was provided for interested persons. No

comments were received.

It is found that the specified expenses for the marketing order

covered in this rule are reasonable and likely to be incurred and that

such expenses 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 action until 30 days after publication in the

Federal Register (5 U.S.C. 553) because the Committee needs to have

sufficient funds to pay its expenses which are incurred on a continuous

basis. In addition, handlers are aware of this action which was

originally recommended by the Committee at a public meeting and

reconsidered and approved by the Committee through a telephone vote and

published in the Federal Register as an interim final rule. No comments

were received concerning the interim final rule that is adopted in this

action as a final rule without change.

List of Subjects in 7 CFR Part 925

Grapes, Marketing agreements and orders, Reporting and

recordkeeping requirements.

For the reasons set forth in the preamble, 7 CFR part 925 is

amended as follows: [[Page 16767]]

PART 925--GRAPES GROWN IN A DESIGNATED AREA OF SOUTHEASTERN

CALIFORNIA

Accordingly, the interim final rule amending 7 CFR part 925 which

was published at 60 FR 3725 on January 19, 1995, is adopted as a final

rule without change.

Dated: March 28, 1995.

Sharon Bomer Lauritsen,

Deputy Director, Fruit and Vegetable Division.

[FR Doc. 95-8097 Filed 3-31-95; 8:45 am]

BILLING CODE 3410-02-P