Dried Prunes Produced in California; Assessment Rate

DEPARTMENT OF AGRICULTURE

7 CFR Part 993

[Docket No. FV96-993-1 FIR]

Dried Prunes Produced in California; Assessment Rate

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 an interim final rule

establishing 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.

EFFECTIVE DATE: August 1, 1996.

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 2525-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 2525-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 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 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 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.

An interim final rule regarding this action was published in the

July 31, 1996, issue of the Federal Register (61 FR 39842). That

interim final rule added Sec. 993.347 to establish an assessment rate

for the Committee. That rule provided

[[Page 51357]]

that interested persons could file comments through August 30, 1996. No

comments were received.

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.

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 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 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 began 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)

an interim final rule was published on this action which provided a 30-

day comment period, and no comments were received.

List of Subjects in 7 CFR Part 993

Marketing agreements, Plums, Prunes, Reporting and recordkeeping

requirements.

Note: This section will appear in the Code of Federal

Regulations.

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

amended as follows:

PART 993--DRIED PRUNES PRODUCED IN CALIFORNIA

Accordingly, the interim final rule amending 7 CFR part 993 which

was published at 61 FR 39842 on July 31, 1996, is adopted as a final

rule without change.

Dated: September 25, 1996.

Sharon Bomer Lauritsen,

Acting Director, Fruit and Vegetable Division.

[FR Doc. 96-25102 Filed 10-01-96; 8:45 am]

BILLING CODE 3410-02-P