[Federal Register: November 21, 2002 (Volume 67, Number 225)]
[Rules and Regulations]
[Page 70148-70150]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr21no02-6]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 993
[Docket No. FV02-993-4 FIR]
Dried Prunes Produced in California; Decreased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Department of Agriculture (USDA) is adopting, as a final
rule, without change, an interim final rule which decreased the
assessment rate established for the Prune Marketing Committee
(Committee) under Marketing Order No. 993 for the 2002-03 and
subsequent crop years from $2.80 to $2.60 per ton of salable dried
prunes. The Committee locally administers the marketing order which
regulates the handling of dried prunes grown in California.
Authorization to assess dried prune handlers enables the Committee to
incur expenses that are reasonable and necessary to administer the
program. The crop year begins August 1 and ends July 31. The assessment
rate will remain in effect indefinitely unless modified, suspended, or
terminated.
EFFECTIVE DATE: December 23, 2002.
FOR FURTHER INFORMATION CONTACT: Toni Sasselli, Program Assistant, or
Richard P. Van Diest, 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, 1400
Independence Avenue SW., STOP 0237, Washington, DC 20250-0237;
telephone: (202) 720-2491, Fax: (202) 720-8938.
Small businesses may request information on complying with this
regulation by contacting Jay Guerber, Marketing Order Administration
Branch, Fruit and Vegetable Programs, AMS, USDA, 1400 Independence
Avenue SW., STOP 0237, Washington, DC 20250-0237; telephone: (202) 720-
2491, Fax: (202) 720-8938, or E-mail: Jay.Guerber@usda.gov.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement and Order No. 993, both as amended (7 CFR part 993),
regulating the handling of dried prunes 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.''
USDA 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
dried prune 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
dried prunes beginning on August 1, 2002, 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 USDA 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 USDA 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
[[Page 70149]]
review USDA'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 2002-03 and subsequent crop years from $2.80 per
ton to $2.60 per ton of salable dried prunes.
The California dried prune marketing order provides authority for
the Committee, with the approval of USDA, 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 dried prunes. 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.
For the 2001-02 and subsequent crop years, the Committee
recommended, and USDA approved, an assessment rate that would continue
in effect from crop year to crop year unless modified, suspended, or
terminated by USDA upon recommendation and information submitted by the
Committee or other information available to USDA.
The Committee met on June 27, 2002, and unanimously recommended
2002-03 expenditures of $386,880 and an assessment rate of $2.60 per
ton of salable dried prunes. In comparison, last year's budgeted
expenditures were $384,370. The assessment rate of $2.60 per ton is
$0.20 lower than the rate currently in effect. The $0.20 per ton
decrease in the assessment rate will allow the Committee to meet its
2002-03 expenses. The Committee was able to recommend a lower
assessment rate this year because salable prune production this year is
expected to be 148,800 tons, 16,750 tons higher than production last
year. Although 2002-03 recommended expenses are slightly higher than
2001-02 expenses, an assessment rate of $2.60 per ton will provide
sufficient funds for Committee operations this year.
The following table compares major budget expenditures recommended
by the Committee on June 27, 2002, and major budget expenditures in the
revised 2001-02 budget.
------------------------------------------------------------------------
2001-02
Budget expense categories (Revised) 2002-03
------------------------------------------------------------------------
Total Personnel Salaries...................... $226,315 $232,575
Total Operating Expenses...................... 123,700 136,850
Reserve for Contingencies..................... 34,355 17,455
------------------------------------------------------------------------
The assessment rate recommended by the Committee was derived by
dividing anticipated expenses by the estimated salable tons of
California dried prunes. Production of dried prunes for the year is
estimated at 148,800 salable tons, which should provide $386,880 in
assessment income. Income derived from handler assessments will be
adequate to cover budgeted expenses. Interest income also will be
available if assessment income is reduced for some reason. The
Committee is authorized to use excess assessment funds from the 2001-02
crop year (currently estimated at $76,878) for up to 5 months beyond
the end of the crop year to meet 2001-02 crop year expenses. At the end
of the 5 months, the Committee refunds or credits excess funds to
handlers (Sec. 993.81(c)).
The assessment rate will continue in effect indefinitely unless
modified, suspended, or terminated by USDA 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 USDA.
Committee meetings are open to the public and interested persons may
express their views at these meetings. USDA 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 2002-03 budget and those
for subsequent crop years will be reviewed and, as appropriate,
approved by USDA.
Final Regulatory Flexibility Analysis
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 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 1,205 producers of dried prunes in the
production area and approximately 24 handlers subject to regulation
under the marketing order. Small agricultural producers are defined by
the Small Business Administration (13 CFR 121.201) as those having
annual receipts less than $750,000, and small agricultural service
firms are defined as those whose annual receipts are less than
$5,000,000.
An updated prune industry profile shows that 9 of the 24 handlers
(37.5%) shipped over $5,000,000 of dried prunes and could be considered
large handlers by the Small Business Administration. Fifteen of the 24
handlers (62.5%) shipped under $5,000,000 of dried prunes and could be
considered small handlers. An estimated 32 producers, or less than 3%
of the 1,205 total producers, will be considered large growers with
annual income over $500,000. The majority of handlers and producers of
California dried prunes may be classified as small entities.
This rule continues to decrease the assessment rate established for
the Committee and collected from handlers for the 2002-03 and
subsequent crop years from $2.80 per ton to $2.60 per ton of salable
dried prunes. The Committee unanimously recommended 2002-03
expenditures of $386,880 and an assessment rate of $2.60 per ton of
salable dried prunes. The assessment rate is $0.20 lower than the
previous rate. The quantity of assessable dried prunes for the 2002-03
crop year is now estimated at 148,800 salable tons. Thus, the $2.60
rate should provide $386,880 in assessment income and be adequate to
meet this year's expenses. Interest income also will be available to
cover budgeted expenses if the 2002-03 expected assessment income falls
short.
The following table compares major budget expenditures recommended
by the Committee on June 27, 2002, and major budget expenditures in the
revised 2001-02 budget.
------------------------------------------------------------------------
2001-02
Major budget expense categories (Revised) 2002-03
------------------------------------------------------------------------
Total Personnel Salaries...................... $226,315 $232,575
Total Operating Expenses...................... 123,700 136,850
[[Page 70150]]
Reserve for Contingencies..................... 34,355 17,455
------------------------------------------------------------------------
The Committee reviewed and unanimously recommended 2002-03
expenditures of $386,880. Prior to arriving at this budget, the
Committee considered information from various sources, such as the
Committee's Executive Subcommittee. An alternative to this action would
be to continue with the $2.80 per ton assessment rate, but the
anticipated larger crop, with an assessment rate of $2.80 per ton,
would generate monies in excess of that needed to fund all the budget
items. The assessment rate of $2.60 per ton of salable dried prunes was
determined by dividing the total recommended budget by the estimated
salable dried prunes. The Committee is authorized to use excess
assessment funds from the 2001-02 crop year (currently estimated at
$76,878) for up to 5 months beyond the end of the crop year to fund
2002-03 crop year expenses. At the end of the 5 months, the Committee
refunds or credits excess funds to handlers (Sec. 993.81(c)).
Anticipated assessment income and interest income during 2002-03 will
be adequate to cover authorized expenses.
The grower price for the 2002-03 season is expected to average
above the estimated 2001-02 average grower price of about $750 per
salable ton of dried prunes. Based on estimated shipments of 148,800
salable tons, assessment revenue during the 2002-03 crop year is
expected to be less than 1 percent of the total expected grower
revenue.
This action continues to decrease the assessment obligation 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 Committee's meeting was widely
publicized throughout the California dried prune industry and all
interested persons were invited to attend the meeting and participate
in Committee deliberations on all issues. Like all Committee meetings,
the June 27, 2002, meeting was a public meeting and all entities, both
large and small, were able to express views on this issue.
This action imposes no additional reporting or recordkeeping
requirements on either small or large California dried prune 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.
USDA has not identified any relevant Federal rules that duplicate,
overlap, or conflict with this rule.
An interim final rule concerning this action was published in the
Federal Register on August 15, 2002 (67 FR 53293). Copies of that rule
were also mailed or sent via facsimile to all prune handlers. Finally,
the interim final rule was made available through the Internet by the
Office of the Federal Register and USDA. A 60-day comment period was
provided for interested persons to respond to the interim final rule.
The comment period ended on October 15, 2002, and 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 993
Marketing agreements, Plums, Prunes, Reporting and Recordkeeping
requirements.
Accordingly, the interim final rule amending 7 CFR part 993 which
was published at 67 FR 53293 on August 15, 2002, is adopted as a final
rule without change.
Dated: November 13, 2002.
A.J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 02-29532 Filed 11-20-02; 8:45 am]
BILLING CODE 3410-02-P