Cranberries Grown in the States of Massachusetts, Rhode Island, Connecticut, New Jersey, Wisconsin, Michigan, Minnesota, Oregon, Washington, and Long Island in the State of New York; Change in Reporting Requirements

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 929

[Docket No. FV-96-929-2FR]

Cranberries Grown in the States of Massachusetts, Rhode Island,

Connecticut, New Jersey, Wisconsin, Michigan, Minnesota, Oregon,

Washington, and Long Island in the State of New York; Change in

Reporting Requirements

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: This final rule changes the reporting requirements currently

prescribed under the cranberry marketing order. The marketing order

regulates the handling of cranberries grown in 10 States and is

administered locally by the Cranberry Marketing Committee (committee).

This rule allows the committee to collect receipt and inventory

information from handlers on a different species of cranberries. This

rule will provide more accurate information to the cranberry industry

to be used in making marketing decisions.

EFFECTIVE DATE: This final rule becomes effective February 6, 1997.

FOR FURTHER INFORMATION CONTACT: Patricia A. Petrella or Kathleen M.

Finn, Marketing Specialists, Marketing Order Administration Branch,

F&V, AMS, USDA, room 2530-S, P.O. Box 96456, Washington, DC 20090-6456:

telephone: (202) 720-1509, 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 final rule is issued under Marketing

Order No. 929 (7 CFR part 929), as amended, regulating the handling of

cranberries grown in 10 States, 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 final rule has been reviewed under Executive Order 12988,

Civil Justice Reform. This rule is not intended to have retroactive

effect. 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 request a modification of the order or to be exempted

therefrom. A 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 date of the entry of the ruling.

Pursuant to the requirements set forth in the Regulatory

Flexibility Act (RFA), the Agricultural Marketing Service (AMS) has

considered the economic impact of this final 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 25 handlers of cranberries who are subject

to regulation under the marketing order and approximately 1,400

producers of cranberries in the regulated area. Small agricultural

service firms, which includes handlers, have been defined by the Small

Business Administration (13 CFR 121.601) as those having annual

receipts of less than $5,000,000, and small agricultural producers are

defined as those having annual receipts of less than $500,000. The

majority of handlers and producers of cranberries may be classified as

small entities.

Handlers are already required to complete a form four times a year

reporting all regulated cranberries on hand for a specified period, all

cranberries acquired and sold, and the new balance of cranberries on

hand. This rule authorizes adding data to this form requiring

information on a new variety of cranberries not regulated under the

order. The form has an estimated burden time of two hours. No

additional burden time will be added to this form to acquire this

information. In addition, because the industry relies on the

comprehensive information provided by the committee, it is critical

that the committee obtain accurate information. This information will

be used in making marketing decisions and the additional burden on

handlers, if any, will not be significant.

Therefore, the AMS has determined that this action will not have a

significant economic impact on a substantial number of small entities.

This final rule changes the reporting requirements currently

prescribed under the cranberry marketing order. This rule allows the

committee to collect receipt and inventory information from handlers on

a different species of cranberries. This rule will provide more

accurate information to the cranberry industry to be used in making

marketing decisions. The committee unanimously recommended the above

change.

The request for this information will be incorporated on the

handler inventory report, a form already used by the committee. The

request of this information should not constitute a significant burden

on a business unit, large or small. Currently, the estimated reporting

burden per response for the handler inventory report is two hours. The

burden time will not change with the additional data request.

Section 929.62(e) of the cranberry marketing order provides

authority to require handlers to furnish to the committee information

with respect to acquisitions and dispositions of cranberries. This

section also provides authority to require handlers to file reports to

the committee as to the quantity of cranberries handled by such handler

during any designated period.

[[Page 916]]

Under the marketing order, cranberries are defined as all varieties

of the fruit Vaccinium macrocarpon grown in the production area. In

1995, the cranberry industry experienced a short crop coupled with

increased demand. To replace the shortage of Vaccinium macrocarpon,

handlers have supplemented their inventories with Vaccinium oxycoccus

which is a European species of cranberry, recognized by the Food and

Drug Administration as a cranberry. Because of the increase in volume

of this species of cranberry, it is important to the cranberry industry

to know the amount of Vaccinium oxycoccus that is being acquired and

utilized by handlers.

The order authorizes the committee to recommend limiting the

quantities of cranberries which may be handled during any fiscal

period. The Secretary would establish a volume regulation based on

information received from the committee if the Secretary found that

such regulation would effectuate the declared policy of the Act. The

committee is considered by the industry as the source for comprehensive

cranberry related data, primarily data relating to production,

supplies, utilization and inventories. Therefore, it is critical to the

committee to receive comprehensive information on cranberries.

The committee will be able to use this information on Vaccinium

oxycoccus when considering its decisions to implement volume regulation

within the industry. Since this species is not regulated under the

order, the committee needs to know the quantities and which handlers

have acquired Vaccinium oxycoccus in order to keep the data on the non-

regulated species separate and apart from the data on the regulated

species, Vaccinium macrocarpon.

Therefore, the committee recommended that section 929.105 be

revised by adding a new subparagraph (c) that requires that handlers

also report on the same form as currently filed with the committee, the

total quantity of Vaccinium oxycoccus cranberries the handler acquired

and the disposition of such cranberries. Also, the handler are required

to report the respective quantities of Vaccinium oxycoccus cranberries

and cranberry products held by the handler.

The committee and its staff are responsible for keeping information

on individual handlers' inventories and receipt confidential.

Information gathered by the committee, including information relating

to supplies of this non-regulated species of cranberries, will only be

reported in the aggregate, along with other pertinent cranberry data.

The proposed rule concerning this action was published in the

August 21, 1996, Federal Register (61 FR 43186), with a 30-day comment

period ending September 20, 1996. No comments were received. The

proposed rule also announced AMS's intention to request a revision to

the currently approved information collection requirements issued under

the marketing order. The information collection requirements contained

in the referenced sections have been approved by the Office of

Management and Budget (OMB) under the provisions of 44 U.S.C. Chapter

35 and have been assigned OMB number 0581-0103.

After consideration of all relevant matter presented, including the

information and recommendations 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.

List of Subjects in 7 CFR Part 929

Cranberries, Marketing agreements, Reporting and recordkeeping

requirements.

For the reasons set forth in the preamble, 7 CFR part 929 is

amended as follows:

1. The authority citation for 7 CFR part 929 continues to read as

follows:

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

PART 929--CRANBERRIES GROWN IN THE STATES OF MASSACHUSETTS, RHODE

ISLAND, CONNECTICUT, NEW JERSEY, WISCONSIN, MICHIGAN, MINNESOTA,

OREGON, WASHINGTON, AND LONG ISLAND IN THE STATE OF NEW YORK

Sec. 929.105 [Amended]

2. In Sec. 929.105, paragraphs (b) (1) and (2) are amended by

adding the words ``and Vaccinium oxycoccus cranberries'' after the word

``cranberries'' everywhere they appear and paragraph (b)(2) is amended

by adding the words ``and Vaccinium oxycoccus cranberry products''

after the words ``cranberry products''.

Dated: December 31, 1996.

Robert C. Keeney,

Director, Fruit and Vegetable Division.

[FR Doc. 97-276 Filed 1-6- 97; 8:45 am]

BILLING CODE 3410-02-P