Grapes Grown in a Designated Area of Southeastern California; Assessment Rate

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 925

[Docket No. FV96-925-1 IFR]

Grapes Grown in a Designated Area of Southeastern 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

California Desert Grape Administrative Committee (Committee) under

Marketing Order No. 925 for the 1997 and subsequent fiscal years. The

Committee is responsible for local administration of the marketing

order which regulates the handling of table grapes grown in a

designated area of southeastern California. Authorization to assess

grape handlers enables the Committee to incur expenses that are

reasonable and necessary to administer the program.

DATES: Effective on January 1, 1997. Comments received by February 18,

1997, 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: Tershirra T. Yeager, 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) 720-5127, FAX (202) 720-5698 or Rose Aguayo,

Marketing Specialist, California Marketing Field Office, Fruit and

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

Fresno, California 93721, telephone (209) 487-5901, FAX (209) 487-5906.

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. 925 (7 CFR part 925) regulating the handling of

table grapes grown in a designated area of southeastern California,

hereinafter referred to as the ``order.'' 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 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 order now in effect, California table grape

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 grapes beginning

January 1, 1997, and continuing until amended, suspended, or

terminated. This rule will not preempt any State or local laws,

regulations, or policies, unless they

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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. Interested persons are invited to

submit information on the regulatory and informational impacts of this

action on small businesses.

There are approximately 80 producers of table grapes 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 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 table grape producers and handlers are not

classified as small entities.

The 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

desert grapes. They are familiar with the Committee's needs and with

the costs for 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 December 3, 1996, and unanimously recommended

1997 expenditures of $156,865 and an assessment rate of $0.01 per lug

of table grapes. In comparison, last year's budgeted expenditures were

$114,827. The Committee recommended not to have an assessment rate for

the 1996 fiscal year because there was adequate money in the reserve to

cover estimated expenses. Major expenditures recommended by the

Committee for the 1997 year include $100,000 for research, $25,000 for

compliance purposes, and $8,675 for the manager's salary. Budgeted

expenses for these items in 1996 were $60,000 for research, $25,000 for

the sheriff's patrol and $7,887 for the manager's salary.

The assessment rate recommended by the Committee was derived by

dividing anticipated expenses by expected shipments of California table

grapes. Table grape shipments for the year are estimated at 8,000,000

lugs which should provide $80,000 in assessment income. Income derived

from handler assessments, along with interest income and funds from the

Committee's authorized reserve, will be adequate to cover budgeted

expenses. Funds in the reserve will be kept within the maximum

permitted by the order.

While this rule will impose 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.

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

fiscal 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

1997 budget and those for subsequent fiscal 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 1997

fiscal year begins on January 1, 1997, and the marketing order requires

that the rate of assessment for each fiscal year apply to all

assessable table grapes handled during such fiscal 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 925

Grapes, Marketing agreements, Reporting and recordkeeping

requirements.

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

amended as follows:

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

CALIFORNIA

1. The authority citation for 7 CFR part 925 continues to read as

follows:

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

2. A new subpart--Assessment Rates and a new Sec. 925.215 are added

to read as follows:

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Note: This section will appear in the Code of Federal

Regulations.

Subpart--Assessment Rates

Sec. 925.215 Assessment rate.

On and after January 1, 1997, an assessment rate of $0.01 per lug

is established for grapes grown in a designated area of southeastern

California.

Dated: January 10, 1997.

Robert C. Keeney,

Director, Fruit and Vegetable Division.

[FR Doc. 97-1162 Filed 1-16-97; 8:45 am]

BILLING CODE 3410-02-P