Raisins Produced From Grapes Grown in California; Changes in Reporting Requirements

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 989

[Docket No. FV00-989-1 PR]

Raisins Produced From Grapes Grown in California; Changes in

Reporting Requirements

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This proposal invites comments on changes to the reporting

requirements specified under the administrative rules and regulations

of the Federal marketing order for California raisins (order). The

order regulates the handling of raisins produced from grapes grown in

California and is administered locally by the Raisin Administrative

Committee (Committee). This rule would make minor changes to two

reports submitted by handlers regarding the receipt and disposition of

non-California raisins (raisins produced from grapes grown outside

California). The Committee uses these reports to track non-California

raisins and help ensure that only California raisins are used in

programs authorized under the order. These changes would reduce the

reporting burden on handlers and provide the Committee with better

information on non-California raisins.

DATES: Comments must be received by February 8, 2000.

ADDRESSES: Interested persons are invited to submit written comments

concerning this proposal. Comments must be sent to the Docket Clerk,

Fruit and Vegetable Programs, AMS, USDA, room 2525-S, P.O. Box 96456,

Washington, DC 20090-6456; Fax: (202) 720-5698; or E-mail:

[email protected]. All comments should reference the docket

number and the date and page number of this issue of the Federal

Register and will be made available for public inspection in the Office

of the Docket Clerk during regular business hours.

FOR FURTHER INFORMATION CONTACT: Maureen T. Pello, Marketing

Specialist, California Marketing Field Office, Fruit and Vegetable

Programs, AMS, USDA, 2202 Monterey Street, suite 102B, Fresno,

California 93721; telephone: (559) 487-5901, Fax: (559) 487-5906; or

George Kelhart, Technical Advisor, Marketing Order Administration

Branch, Fruit and Vegetable Programs, AMS, USDA, room 2525-S, P.O. Box

96456, Washington, DC 20090-6456; telephone: (202) 720-2491, or Fax:

(202) 720-5698.

Small businesses may request information on complying with this

regulation by contacting Jay Guerber, Marketing Order Administration

Branch, Fruit and Vegetable Programs, AMS, USDA, P.O. Box 96456, room

2525-S, Washington, DC 20090-6456; telephone (202) 720-2491, Fax: (202)

720-5698, or E-mail: Jay.G[email protected].

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing

Agreement and Order No. 989 (7 CFR part 989), both as amended,

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. This rule is not intended to have retroactive effect.

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. 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 in equity 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.

This proposal invites comments on changes to the reporting

requirements specified under the order. This rule would make minor

modifications to two reports submitted by handlers regarding the

receipt and disposition of non-California raisins. The Committee

collects these reports to track non-California raisins and help ensure

that only California raisins are used in programs authorized under the

order. These changes would reduce the reporting burden on handlers and

provide the Committee with better information on non-California

raisins. This action was unanimously recommended by the Committee at a

meeting on November 10, 1999.

Section 989.73(d) of the order provides authority for the

Committee, with the approval of the Secretary, to request handlers to

furnish to the Committee such other information as may be necessary to

enable it to exercise its powers and perform its duties. Handlers are

required to submit various reports regarding California raisins,

including receipts, disposition, transfers to other handlers, and the

like. This information is used by the Committee in making various

program decisions such as those regarding volume regulation and the

handler assessment rate for funding program activities.

In addition, Sec. 989.173 requires handlers to report to the

Committee their receipt and disposition of raisins produced from grapes

grown outside the State of California. Authority to collect information

on raisins other than those produced in California was added to the

regulations in 1990 to help ensure that only California raisins are

used in various programs operated under the order.

For example, an export program is authorized under the order to

promote the sale of California raisins in export markets. This program

is usually in effect when volume regulation is implemented under the

order. When volume regulation is in effect, a certain

[[Page 69205]]

percentage of the crop may be sold by handlers to any market (free

tonnage) while the remaining percentage must be held by handlers in a

reserve pool (or reserve) for the account of the Committee. Under the

export program, handlers may receive raisins, at a reduced price, or

cash back from the reserve pool to blend down the cost of the exported

raisins, allowing handlers to be price competitive in export markets

(prices in export markets are generally lower than the domestic

market). The Committee wants to ensure that only California raisins are

utilized in this program.

Paragraph (b)(7) of Sec. 989.173 requires handlers to report

receipts of non-California raisins. This information is reported on

Form No. 500 and is due to the Committee on the eighth day of each

month. Currently, handlers must categorize the net weight (pounds) of

such raisins received as either natural condition (raw product) or

packed (processed raisins) for the current month as well as a

cumulative quantity from August 1, the beginning of the crop year.

The Committee recommended that such receipts not be categorized as

natural condition or packed. This information is contained within other

supporting documentation that handlers must also submit with their

receipt report. Thus, the Committee would like to eliminate this

duplication.

Paragraph (c)(3) of Sec. 989.173 requires handlers to report the

disposition of non-California raisins. This information is reported on

Form No. 501 and is also due to the Committee on the eighth day of each

month. Currently, handlers must report whether such raisins were

disposed of in cartons, bags, or as bulk raisins. However, Committee

staff has not found these categories useful in tracking non-California

raisins. Thus, the Committee recommended eliminating this requirement.

In addition, the Committee recommended adding the requirement that

handlers report the area of origin (country or state) of non-California

raisins on the disposition report. Area of origin would help Committee

staff match the disposition reports with the receipt reports, which

already ask for area of origin. The Committee would thus be better able

to track the inventory of non-California raisins.

These minor changes recommended by the Committee would reduce the

reporting burden on handlers receiving and disposing of non-California

raisins. Requiring handlers to report on their disposition form the

origin of non-California raisins would allow the Committee to better

track the inventory of such raisins. Accordingly, appropriate changes

are proposed to paragraphs (b)(7) and (c)(3)(iv) of Sec. 989.173.

Initial Regulatory Flexibility Analysis and the Paperwork Reduction

Act

Pursuant to requirements set forth in the Regulatory Flexibility

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

economic impact of this action on small entities. Accordingly, AMS has

prepared this initial regulatory flexibility analysis.

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 20 handlers of California raisins who are

subject to regulation under the order and approximately 4,500 raisin

producers in the regulated area. Small agricultural service firms 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. Thirteen of the 20 handlers subject to regulation

have annual sales estimated to be at least $5,000,000, and the

remaining 7 handlers have sales less than $5,000,000, excluding

receipts from any other sources. No more than 7 handlers, and a

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

entities.

This rule would change the reporting requirements specified in

paragraphs (b) and (c) of Sec. 989.173 regarding the receipt and

disposition, respectively, of raisins produced from grapes grown

outside the State of California. Handlers would no longer have to

report to the Committee whether such raisins were received as natural

condition or packed raisins, nor would handlers have to report whether

such raisins were disposed of in cartons, bags or as bulk raisins.

Handlers would have to report additional information, specifically, the

area of origin (country or state) of such raisins on their disposition

reports. Authority for these changes is provided in Sec. 989.73(d) of

the order.

Regarding the impact of the proposed action on affected entities,

this action would reduce, in the aggregate, the reporting and

recordkeeping burden on handlers who receive and dispose of non-

California raisins. The Committee estimates that 11 handlers receive

and dispose of non-California raisins each year. It is estimated that

it would take each handler about 4 minutes to complete each revised

receipt report (1 minute less than that required for the current

receipt report). The total annual burden for such receipt reports would

be reduced from 11 hours to about 8.8 hours. Furthermore, it is

estimated that it would take each handler about 5 minutes to complete

each revised disposition report (the same as required for the current

disposition report). The total annual burden for such disposition

reports would remain at about 11 hours.

In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.

Chapter 35), the information collection requirements contained in this

rule are being submitted to the Office of Management and Budget.

Existing requirements have been assigned OMB No. 0581-0178. As with

other similar marketing order programs, reports and forms are

periodically reviewed to reduce information requirements and

duplication by industry and public sector agencies. Finally, the

Department has not identified any relevant Federal rules that

duplicate, overlap or conflict with this rule.

An alternative to this action would be to not make the recommended

reporting changes. However, the Committee determined that it would be

best to proceed with its recommendation to reduce the reporting burden

on handlers and obtain better information on tracking non-California

raisins.

In addition, the Committee held an Administrative Issues

Subcommittee meeting on November 9, 1999, where this issue was

deliberated. This meeting and the Committee's meeting on November 10,

1999, were public meetings widely publicized throughout the raisin

industry. All interested persons were invited to attend the meetings

and participate in the industry's deliberations. Finally, interested

persons are invited to submit information on the regulatory and

informational impacts of these changes on small businesses.

A small business guide on complying with fruit, vegetable, and

specialty crop marketing agreements and orders may be viewed at the

following web site: http://www.ams.usda.gov/fv/moab.html. Any questions

about the compliance guide should be sent to Jay Guerber at the

previously mentioned address in the FOR FURTHER INFORMATION CONTACT

section.

A 60-day comment period is provided to allow interested persons to

respond to this proposal. All written comments

[[Page 69206]]

timely received will be considered before a final determination is made

on this matter.

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

proposed to be 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. In Sec. 989.173, the second sentence in paragraph (b)(7) and

paragraph (c)(3)(iv) are revised to read as follows:

Sec. 989.173 Reports.

* * * * *

(b) * * *

(7) * * * This report shall include: The varietal type of raisins

received; the net weight (pounds) of raisins received for the current

month as well as a cumulative quantity from August 1; and the state or

country where the raisins were produced. * * *

(c) * * *

(3) * * *

(iv) The area of origin (state or country) of the raisins shipped.

* * * * *

Dated: December 6, 1999.

Robert C. Keeney,

Deputy Administrator, Fruit and Vegetable Programs.

[FR Doc. 99-32011 Filed 12-9-99; 8:45 am]

BILLING CODE 3410-02-P