Dried Prunes Produced in California; Assessment Rate

DEPARTMENT OF AGRICULTURE

7 CFR Part 993

[Docket No. FV96-993-1 IFR]

Dried Prunes Produced in California; Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: This interim final rule establishes an assessment rate for the

Prune Marketing Committee (Committee) under Marketing Order No. 993 for

the 1996-97 and subsequent crop years. The Committee is responsible for

local administration of the marketing order which regulates the

handling of dried prunes produced in California. Authorization to

assess prune handlers enables the Committee to incur expenses that are

reasonable and necessary to administer the program.

DATES: Effective on August 1, 1996. Comments received by August 30,

1996, will be considered prior to issuance of a final rule.

ADDRESSES: Interested persons are invited to submit written comments

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concerning this rule. Comments must be sent in triplicate to the Docket

Clerk, Fruit and Vegetable Division, AMS, USDA, P.O. Box 96456, room

2523-S, Washington, DC 20090-6456, FAX 202-720-5698. Comments should

reference the docket number and the date and page number of this issue

of the Federal Register and will be available for public inspection in

the Office of the Docket Clerk during regular business hours.

FOR FURTHER INFORMATION CONTACT: Mary Kate Nelson, Marketing Assistant,

Marketing Order Administration Branch, California Marketing Field

Office, Fruit and Vegetable Division, AMS, USDA, suite 102B, 2202

Monterey Street, Fresno, California 93721, telephone 209-487-5901, FAX

209-487-5906, or Martha Sue Clark, Program Assistant, Marketing Order

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

Box 96456, room 2523-S, Washington, DC 20090-6456, telephone 202-720-

9918, FAX 202-720-5698. Small businesses may request information on

compliance with this regulation by contacting: Jay Guerber, Marketing

Order Administration Branch, Fruit and Vegetable Division, AMS, USDA,

P.O. Box 96456, room 2523-S, Washington, DC 20090-6456, telephone 202-

720-2491, FAX 202-720-5698.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing

Agreement and Order No. 993, both as amended (7 CFR part 993),

regulating the handling of dried prunes produced 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 (Department) is issuing this rule in

conformance with Executive Order 12866.

This rule has been reviewed under Executive Order 12988, Civil

Justice Reform. Under the marketing order now in effect, California

prune handlers are subject to assessments. Funds to administer the

order are derived from such assessments. It is intended that the

assessment rate as issued herein will be applicable to all assessable

prunes beginning August 1, 1996, and continuing until amended,

suspended, or terminated. 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 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 request 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 to review the

Secretary's ruling on the petition, provided an action is filed not

later than 20 days after the date of the entry of the ruling.

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.

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 1,400 producers of dried prunes in the

production area and approximately 21 handlers subject to regulation

under the marketing order. Small agricultural producers have been

defined by the Small Business Administration (13 CFR 121.601) as those

having annual receipts 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 California dried prune producers and

handlers may be classified as small entities.

The California prune marketing order provides authority for the

Committee, with the approval of the Department, to formulate an annual

budget of expenses and collect assessments from handlers to administer

the program. The members of the Committee are producers and handlers of

California dried prunes. They are familiar with the Committee's needs

and with the costs of goods and services in their local area and are

thus in a position to formulate an appropriate budget and assessment

rate. The assessment rate is formulated and discussed in a public

meeting. Thus, all directly affected persons have an opportunity to

participate and provide input.

The Committee met on June 27, 1996, and unanimously recommended

1996-97 expenditures of $283,500 and an assessment rate of $1.50 per

salable ton of dried prunes. In comparison, last year's budgeted

expenditures were $275,280. The assessment rate of $1.50 per salable

ton is $0.05 lower than last year's established rate. Major

expenditures recommended by the Committee for the 1996-97 crop year

include $142,120 for salaries and wages, $30,000 for research and

development, $22,000 for office rent, $20,000 for travel, $11,000 for

an acreage survey, $8,430 for the reserve for contingency, and $6,500

each for office supplies and data processing. Budgeted expenses for

these items in 1995-96 were $131,320, $30,000, $22,000, $20,000,

$10,500, $19,310, $5,000, and $3,500, respectively.

The assessment rate recommended by the Committee was derived by

dividing anticipated expenses by expected shipments of California dried

prunes. Dried prune shipments for the year are estimated at 189,000

salable tons which should provide $283,500 in assessment income. Income

derived from handler assessments will be adequate to cover budgeted

expenses. Any funds not expended by the Committee during a crop year

may be used, pursuant to Sec. 993.81(c), for a period of five months

subsequent to that crop year. At the end of such period, the excess

funds are returned or credited to handlers.

This action will reduce the assessment obligation imposed on

handlers. While this rule will impose some additional costs on

handlers, the costs are in the form of uniform assessments on all

handlers. Some of the additional costs may be passed on to producers.

However, these costs will be offset by the benefits derived from the

operation of the marketing order. Therefore, the AMS has determined

that this rule will not have a significant economic impact on a

substantial number of small entities. Interested persons are invited to

submit information on the regulatory and informational impacts of this

action on small businesses.

The assessment rate established in this rule will continue in

effect indefinitely unless modified, suspended, or terminated by the

Secretary upon recommendation and information submitted by the

Committee or other available information.

Although this assessment rate is effective for an indefinite

period, the Committee will continue to meet prior to or during each

crop year to recommend a budget of expenses and

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consider recommendations for modification of the assessment rate. The

dates and times of Committee meetings are available from the Committee

or the Department. Committee meetings are open to the public and

interested persons may express their views at these meetings. The

Department will evaluate Committee recommendations and other available

information to determine whether modification of the assessment rate is

needed. Further rulemaking will be undertaken as necessary. The

Committee's 1996-97 budget and those for subsequent crop years will be

reviewed and, as appropriate, approved by the Department.

After consideration of all relevant material 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.

Pursuant to 5 U.S.C. 553, it is also found and determined upon good

cause that it is impracticable, unnecessary, and contrary to the public

interest to give preliminary notice prior to putting this rule into

effect, and that good cause exists for not postponing the effective

date of this rule until 30 days after publication in the Federal

Register because: (1) The Committee needs to have sufficient funds to

pay its expenses which are incurred on a continuous basis; (2) the

1996-97 crop year begins on August 1, 1996, and the marketing order

requires that the rate of assessment for each crop year apply to all

assessable dried prunes handled during such crop year; (3) handlers are

aware of this action which was unanimously recommended by the Committee

at a public meeting and is similar to other assessment rate actions

issued in past years; and (4) this interim final rule provides a 30-day

comment period, and all comments timely received will be considered

prior to finalization of this rule.

List of Subjects in 7 CFR Part 993

Marketing agreements, Plums, Prunes, Reporting and recordkeeping

requirements.

For the reasons set forth in the preamble, 7 CFR part 993 is

amended as follows:

PART 993--DRIED PRUNES PRODUCED IN CALIFORNIA

1. The authority citation for 7 CFR part 993 continues to read as

follows:

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

Note: This section will appear in the Code of Federal

Regulations.

2. A new Subpart--Assessment Rates and a new Sec. 993.347 are added

to read as follows:

Subpart--Assessment Rates

Sec. 993.347 Assessment rate.

On and after August 1, 1996, an assessment rate of $1.50 per

salable ton is established for California dried prunes.

Dated: July 25, 1996.

Sharon Bomer Lauritsen,

Acting Director, Fruit and Vegetable Division.

[FR Doc. 96-19376 Filed 7-30-96; 8:45 am]

BILLING CODE 3410-02-P