Raisins Produced From Grapes Grown in California; Assessment Rate

DEPARTMENT OF AGRICULTURE

7 CFR Part 989

[Docket No. FV96-989-3 IFR]

Raisins Produced From Grapes Grown 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

Raisin Administrative Committee (Committee) under Marketing Order No.

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

responsible for local administration of the marketing order which

regulates the handling of raisins produced from grapes grown in

California. Authorization to assess raisin 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 November 7,

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

ADDRESSES: Interested persons are invited to submit written comments

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

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

2525-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 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. 989, both as amended (7

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CFR part 989), 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 (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

raisin 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

raisins 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 4,500 producers of raisins in the

production area and approximately 20 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 (from all

sources) are less than $5,000,000. No more than eight handlers, and a

majority of producers, of California raisins may be classified as small

entities. Twelve of the 20 handlers subject to regulation have annual

sales estimated to be at least $5,000,000, and the remaining eight

handlers have sales less than $5,000,000, excluding receipts from any

other sources.

The California raisin 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 raisins. 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 August 15, 1996, and unanimously recommended

1996-97 expenditures of $1,463,000 and an assessment rate of $5.00 per

ton of California raisins. In comparison, last year's budgeted

expenditures were $1,500,000. The assessment rate of $5.00 is the same

as last year's established rate. Major expenditures recommended by the

Committee for the 1996-97 year compared to those budgeted for 1995-96

(in parentheses) include: $485,000 for export program administration

and related activities ($470,000); $412,000 for salaries and wages

($471,000); $95,000 for Committee and office staff travel ($70,000);

$80,000 reserve for contingencies ($142,115); $54,000 for general,

medical, and Committee member insurance ($64,385); $49,500 for rent

($43,000); $41,200 for group retirement ($23,000); $37,500 for

membership dues/surveys ($15,500); $30,000 for office supplies

($30,000); $28,000 for equipment ($20,000); $28,000 for payroll taxes

($32,000); $22,000 for postage ($20,000); $15,000 for telephone

($15,000); $15,000 for miscellaneous expenses ($15,000); $12,000 for

repairs and maintenance ($10,000); $12,000 for Committee meeting

expense ($7,500); $10,000 for research and communications ($23,000);

and $5,000 for audit fees ($20,000). The Committee also recommended

$15,000 for printing and $10,000 for software and programming for which

no funding was recommended last year.

The assessment rate recommended by the Committee was derived by

dividing anticipated expenses by the expected quantity of assessable

California raisins for the crop year. This rate, when applied to

anticipated acquisitions of 292,600 tons, will yield $1,463,000 in

assessment income, which should be adequate to cover anticipated

administrative expenses. Any unexpended assessment funds from the crop

year are required to be credited or refunded to the handlers from whom

collected.

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 by 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 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

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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 began on August 1, 1996, and the marketing order

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

assessable raisins 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 989

Grapes, Marketing agreements, Raisins, Reporting and recordkeeping

requirements.

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

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

follows:

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

2. A new subpart titled ``Assessment Rates'' consisting of

Sec. 989.347 is added immediately following Sec. 989.221 to read as

follows:

Note: This section will appear in the Code of Federal

Regulations.

Subpart--Assessment Rates

Sec. 989.347 Assessment rate.

On and after August 1, 1996, an assessment rate of $5.00 per ton is

established for assessable California raisins.

Dated: October 1, 1996.

Robert C. Keeney,

Director, Fruit and Vegetable Division.

[FR Doc. 96-25708 Filed 10-7-96; 8:45 am]

BILLING CODE 3410-02-P