[Federal Register Volume 65, Number 244 (Tuesday, December 19, 2000)]
[Rules and Regulations]
[Pages 79307-79309]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-32296]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 989
[Docket No. FV00-989-5 FIR]
Raisins Produced from Grapes Grown in California; Decreased
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
which decreased the assessment rate established for the Raisin
Administrative Committee (Committee) for the 2000-01 and subsequent
crop years from $8.50 to $6.50 per ton of free tonnage raisins acquired
by handlers, and reserve tonnage raisins released or sold to handlers
for use in any market. The Committee locally administers the Federal
marketing order which regulates the handling of raisins produced from
grapes grown in California (order). Authorization to assess raisin
handlers enables the Committee to incur expenses that are reasonable
and necessary to administer the program. The crop year runs from August
1 through July 31. The assessment rate will remain in effect
indefinitely unless modified, suspended, or terminated.
EFFECTIVE DATE: January 18, 2001.
FOR FURTHER INFORMATION CONTACT: Maureen T. Pello, Marketing
Specialist, California Marketing Field Office, Marketing Order
Administration Branch, 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, 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: [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 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 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 on August 1, 2000, and continue 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.
This rule continues to decrease the assessment rate established for
the Committee for the 2000-01 and subsequent crop years from $8.50 to
$6.50 per ton of free tonnage raisins acquired by handlers, and reserve
tonnage raisins released or sold to handlers for use in any market. The
order authorizes volume control provisions that establish free and
reserve percentages of raisins acquired by handlers. Free tonnage
raisins may be sold by handlers to any outlet, and reserve tonnage
raisins are held by handlers for the account of the Committee or
released or sold to handlers for sale to any market. With projected
assessable tonnage about 23,300 tons higher than last year's assessable
tonnage, sufficient income should be generated at the lower assessment
rate for the Committee to meet its anticipated expenses. This action
was unanimously recommended by the Committee at a meeting on August 15,
2000.
Sections 989.79 and 989.80, respectively, of the order provide
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
[[Page 79308]]
an opportunity to participate and provide input.
A continuous assessment rate of $5.00 per ton was in effect for the
1996-97 and 1997-98 crop years. Due to short crops in 1998-99 and 1999-
2000, the assessment rate for those years was raised to $8.50 per ton.
Regarding the 2000-01 crop year, the Committee recommended
decreasing the assessment rate to $6.50 per ton of assessable raisins
to cover recommended administrative expenditures of $2,145,000. This
compares to budgeted expenses of $2,482,000 for the 1999-2000 crop
year. Major expenditures include $660,500 for export program
administration and related activities, $477,700 for salaries, $476,300
for contingencies, and $160,000 for compliance activities. Budgeted
expenses for these items in 1999-2000 were $549,500, $425,000,
$506,250, and $200,000, respectively.
The recommended $6.50 per ton assessment rate was derived by
dividing the $2,145,000 in anticipated expenses by an estimated 330,000
tons of assessable raisins. The Committee recommended decreasing its
assessment rate because the projected 2000-01 assessable tonnage of
330,000 tons is about 23,300 tons higher than last year's actual
assessed tonnage. Thus, sufficient income should be generated at the
lower assessment rate for the Committee to meet its anticipated
expenses. Pursuant to Sec. 989.81(a) of the order, any unexpended
assessment funds from the crop year must be credited or refunded to the
handlers from whom collected.
The assessment rate established in this rule will continue in
effect indefinitely unless modified, suspended, or terminated by the
Secretary upon recommendation and other 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
2000-01 budget and those for subsequent crop years will be reviewed
and, as appropriate, approved by the Department.
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. Accordingly, AMS has
prepared this final 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 firms are defined
by the Small Business Administration (13 CFR 121.201) as those having
annual receipts of less that $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, excluding
receipts from other sources.
This rule continues to decrease the assessment rate established for
the Committee and collected from handlers for the 2000-01 and
subsequent crop years from $8.50 to $6.50 per ton of assessable raisins
acquired by handlers. The Committee unanimously recommended 2000-01
expenses of $2,145,000. Major expenditures include $660,500 for export
program administration and related activities, $477,700 for salaries,
$476,300 for contingencies, and $160,000 for compliance activities.
Budgeted expenses for these items in 1999-2000 were $549,500, $425,000,
$506,250, and $200,000, respectively. With anticipated assessable
tonnage at 330,000 tons, about 23,300 tons higher than last year's
actual assessed tonnage, sufficient income should be generated at the
$6.50 per ton assessment rate to meet expenses. Pursuant to
Sec. 989.81(a) of the order, any unexpended assessment funds from the
crop year must be credited or refunded to the handlers from whom
collected.
The industry considered various alternative assessment rates prior
to arriving at the $6.50 per ton recommendation. The Committee's Audit
Subcommittee met on August 8, 2000, to review preliminary budget
information. The subcommittee considered keeping the assessment rate at
$8.50 per ton. However, this would have generated a projected $1
million in excess funds. The subcommittee considered reducing the rate
to $7.50 per ton and ultimately recommended that rate to the Committee
at its meeting on August 15, 2000. Other options were discussed at the
Committee meeting, including decreasing the rate to $5.00 per ton.
After much deliberation, the Committee voted to decrease the assessment
rate to $6.50 per ton.
A review of statistical data on the California raisin industry
indicates that assessment revenue has consistently been less than 1
percent of grower revenue in recent years. Although no official
estimates or data are available for the upcoming season, it is
anticipated that assessment revenue will likely continue to be less
than 1 percent of grower revenue in the 2000-2001 crop year, especially
with the 24 percent decrease in the assessment rate.
Regarding the impact of this action on affected entities, this
action decreases the assessment rate imposed on handlers. Assessments
are applied uniformly on all handlers, and some of the costs may be
passed on to producers. However, decreasing the assessment rate reduces
the burden on handlers, and may reduce the burden on producers.
In addition, the Audit Subcommittee's meeting on August 8, 2000,
and the Committee's meeting on August 15, 2000, where this action was
deliberated, 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.
This action imposes no additional reporting or recordkeeping
requirements on either small or large raisin handlers. As with all
Federal marketing order programs, reports and forms are periodically
reviewed to reduce information requirements and duplication by industry
and public sector agencies. The Department has not identified any
relevant Federal rules that duplicate, overlap, or conflict with this
rule.
Further, Committee and subcommittee meetings are widely publicized
in advance and are held in a location central to the production area.
The meetings are open to all industry members, including small business
[[Page 79309]]
entities, and other interested persons who are encouraged to
participate in the deliberations and voice their opinions on topics
under discussion.
An interim final rule concerning this action was published in the
Federal Register on September 27, 2000 (65 FR 57941). Copies of the
rule were mailed by the Committee staff to all Committee members and
alternates, the Raisin Bargaining Association, handlers and
dehydrators. In addition, the rule was made available through the
Internet by the Office of the Federal Register. A 60-day comment period
was provided for interested persons which ended November 27, 2000. No
comments were received.
A small business guide on complying with fruit, vegetable, and
specialty crop marketing agreements and orders may be viewed at: 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.
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.
List of Subjects in 7 CFR Part 989
Grapes, Marketing agreements, Raisins, Reporting and recordkeeping
requirements.
PART 989--RAISINS PRODUCED FROM GRAPES GROWN IN CALIFORNIA
Accordingly, the interim final rule amending 7 CFR part 989 which
was published at 65 FR 57941 on September 27, 2000, is adopted as a
final rule without change.
Dated: December 13, 2000.
Robert C. Keeney,
Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 00-32296 Filed 12-18-00; 8:45 am]
BILLING CODE 3410-02-P