[Federal Register: September 22, 2003 (Volume 68, Number 183)]
[Rules and Regulations]
[Page 54979-54981]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr22se03-1]
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Rules and Regulations
Federal Register
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[[Page 54979]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 993
[Docket No. FV03-993-1 FIR]
Dried Prunes Produced in California; Changes in Reporting
Requirements
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: The Department of Agriculture (USDA) is adopting, as a final
rule, without change, an interim final rule changing the reporting
requirements currently prescribed under the California dried prune
marketing order (order). The order regulates the handling of dried
prunes produced in California and is administered locally by the Prune
Marketing Committee (Committee). This rule continues to allow
California prune handlers to report their shipments quarterly, rather
than monthly, and to no longer report export shipment destination
countries. Also, handlers will continue to report type of pack as
``bulk and consumer pack'' to reveal less marketing information. This
action will continue the reduced information collection burden upon
handlers, while still enabling the Committee to collect information
necessary for program administration.
EFFECTIVE DATE: October 22, 2003.
FOR FURTHER INFORMATION CONTACT: Richard P. Van Diest, 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, 1400 Independence Avenue, SW., STOP 0237, Washington, DC
20250-0237; telephone: (202) 720-2491, or 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 (7 CFR part 993), both as amended,
regulating the handling of dried prunes produced 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.''
USDA 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 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. A
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 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 in effect modifications to language in the
order's administrative rules and regulations to allow California prune
handlers to report their shipments quarterly, rather than monthly.
Also, handlers will continue to report their export market shipments to
the Committee by region, rather than by country. The amount of
information disseminated by the Committee is also reduced. The
Committee is no longer reporting the export shipments to the industry
by country, and the regions that handlers ship into is only reported
once a year, when the marketing policy is prepared. Also, the reporting
of type of pack is changed from ``carton, visipak, and other'' to
``bulk and consumer pack''. These changes reduce the information
collection burden upon handlers and the Committee's administrative
costs because of the switch to quarterly distribution. This action was
unanimously recommended by the Committee at a meeting on April 3, 2003.
Marketing Order Authority
Section 993.72 of the order provides authority for the Committee to
require handlers to file such reports of acquisitions, sales, uses, and
shipments of prunes, as may be requested by the Committee. Also,
pursuant to Sec. 93.36(c), one of the Committee's duties is to
assemble data on the producing, handling, shipping, and marketing
conditions relative to prunes in connection with the performance of its
official duties. To prevent the release of proprietary business
information, the information from all of the handlers is totaled and
then distributed.
Administrative Rules and Regulations
Prior to implementation of the interim final rule, Sec. 993.172
required handlers to report each month on their holdings, receipts,
uses, and shipments of prunes produced in California.
Paragraph (d) of Sec. 993.172 requires handlers to report
shipments of dried prunes produced in California. This information is
reported on PMC Form 12.1, ``Report of Shipments,'' and an addendum to
that form referred to as PMC Form 12.1A, ``Cumulative Prune Export
Shipments.''
Prior to the implementation of the interim final rule, each handler
was required to file with the Committee for each month, not later than
the 5th working day of the next succeeding month, Forms PMC 12.1 and
12.1A, reporting shipments (including cumulative exports by country) of
[[Page 54980]]
prunes during the crop year through the last day of the immediately
preceding month. PMC Form 12.1 was required to contain at least the
following information:
(1) The date, the name, and address of the handler, and the period
covered by the report;
(2) The pounds of prunes shipped or otherwise disposed of, other
than shipments to or for the account of other handlers as follows: (i)
Domestic outlets segregated by uses (including Federal Government
agencies); (ii) export markets segregated by countries; (iii) both
domestic and export totals segregated by type of pack (carton, visipak,
and other); and (iv) pitted prunes (pitted weight) segregated as to
total to domestic outlets and total to export markets;
(3) The total pounds shipped to or for the account of other
handlers, including interhandler transfers; and
(4) The total pounds of prunes not covered by, or excluded from,
the definition of the term ``prunes'' (Sec. 993.5) shipped.
PMC Form 12.1A included a listing of the quantities of whole and
pitted prunes exported together with the countries to which the exports
were made.
Recommended Action
Based upon competition concerns, the Committee unanimously
recommended changing the frequency and amount of information that is
required to be reported by handlers. This rule continues to allow the
Committee to obtain the information it needs for program purposes, and
continues to permit California prune handlers to file their Shipment
Reports on a quarterly, rather than monthly basis.
Handlers are no longer reporting their export shipment destination
countries to the Committee. Instead handlers are reporting the regions
into which they ship. The amount of information disseminated by the
Committee continues to be reduced. The Committee is no longer reporting
the countries to which the industry exports, but only the total export
shipments (except that total export shipments into regions is reported
annually for marketing policy purposes). The reporting of type of pack
is changed from ``carton, visipak, and other'' to ``bulk and consumer
pack'' to reveal less marketing information.
By distributing the Shipment Report quarterly, instead of monthly,
and revising the report's format to provide less detailed information,
the Committee reduces the amount of marketing information it is
releasing. However, this information still satisfies the Committee's
need for information to prepare the marketing policy, verify
compliance, monitor the accuracy of handler reports, justify government
purchases or supply control recommendations, and to help the industry
develop their marketing programs and evaluate USDA Market Access
Program applications. At least once a year, export shipments by region
are reported for the entire crop year. During the remainder of the
year, the Committee may only report total export shipments.
These recommendations by the Committee reduce the reporting burden
on California prune handlers as well as help address some of the
marketing concerns of the industry and Committee. These changes also
reduce some of the Committee's administrative costs in disseminating
this information quarterly, rather than monthly. Accordingly,
appropriate changes are continued in paragraph (d) of Sec. 993.172.
Final 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 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.
Industry Profile
There are approximately 1,205 producers of dried prunes in the
production area and approximately 21 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 of less than $750,000 and small agricultural service
firms are defined as those having annual receipts of less than
$5,000,000.
Currently 8 of the 21 handlers (38 percent) shipped over $5,000,000
worth of dried prunes and could be considered large handlers by the
Small Business Administration. Thirteen of the 21 handlers (62 percent)
shipped less than $5,000,000 worth of dried prunes and could be
considered small handlers. An estimated 32 producers, or less than 3
percent of the 1,205 total producers, will be considered large growers
with annual incomes over $750,000. The majority of handlers and
producers of California dried prunes may be classified as small
entities.
Summary of Rule Change
This rule continues to change the reporting requirements specified
in Sec. 993.172(d) of the administrative rules and regulations
regarding the reporting of dried prune shipments by handlers. This rule
continues to allow the California prune handlers to file their Shipment
Reports quarterly, rather than monthly. Also handlers are no longer
reporting their export market shipments to the Committee by country,
but by region. The amount of information disseminated by the Committee
continues to be reduced. The Committee is no longer reporting export
shipments by country, but only in total (except that total export
shipments into regions are reported annually to enable the Committee to
prepare its marketing policy). The reporting of type of pack is changed
from ``carton, visipak, and other'' to ``bulk and consumer pack''.
Impact of Regulation
Regarding the impact of this rule on affected entities, this action
continues the reduced reporting and recordkeeping burden on California
prune handlers and continues the reduction in the Committee's
administrative costs. The Committee estimates that 21 California prune
handlers are required to file the Supply and Disposition reports each
month. It is estimated that it takes each handler about 20 minutes to
complete each revised PMC Form 12.1, and about 20 minutes to complete
each revised PMC Form 12.1A. In comparison it is estimated that
previously each handler needed about 30 minutes to complete each PMC
Form 12.1, and about 35 minutes to complete each PMC Form 12.1A. Thus,
completion of the revised reports takes 10 minutes less, and 15 minutes
less, respectively, than was required for each of the reports
previously. The total annual industry reporting burden for the current
PMC Form 12.1 was 120 hours, and for the PMC Form 12.1A was 139 hours,
for a combined total of 259 hours. The total burden hours for the
revised PMC Forms 12.1 and 12.1A is 28 hours each, for a combined total
of 55 hours. These changes thereby reduce the annual industry
information collection burden by 204 hours. Committee costs are also
reduced because the report is compiled
[[Page 54981]]
and distributed quarterly, rather than monthly.
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
Chapter 35), the information collection burden reduction contained in
this rule has been submitted to the Office of Management and Budget.
This action reduces existing approved burden requirements which have
been assigned OMB No. 0581-0178. 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. In addition, as noted in the initial regulatory flexibility
analysis, USDA has not identified any relevant Federal rules that
duplicate, overlap or conflict with this rule.
Alternatives Considered
The Committee considered alternatives to this action at meetings on
March 11, April 2, and April 3, 2003. The Executive Subcommittee and
Committee discussed the possibility of eliminating all reporting, but
determined that this was not viable because it needs certain
information to prepare its marketing policy and for other decision-
making. Some industry leaders also felt that the statistics are
important for grower, handler, and bargaining association decisions
that need to be made each year. Finally, the Executive Subcommittee and
Committee discussed disseminating the information only to members and
alternates of the Committee, its subcommittees, and to California prune
handlers. Ultimately, the Executive Subcommittee and Committee decided
to proceed with the changes in shipment reporting requirements to
reduce the frequency of the reports, and to reduce the amount of
information reported to and disseminated by the Committee.
The Executive Subcommittee's March 11 and April 2, 2003, meetings
and the Committee's April 3, 2003, meeting where this issue was
deliberated were public and widely publicized throughout the prune
industry. All interested persons were invited to attend the meetings
and participate in the industry's deliberations. All entities, both
large and small, were able to express their views on this issue at the
meetings.
An interim final rule concerning this action was published in the
Federal Register on June 24, 2003. Copies of the rule were provided by
the Committee's staff to all who attended a June 26, 2003, Committee
meeting. In addition, the rule was made available through the Internet
by the Office of the Federal Register and USDA. That rule provided for
a 60-day comment period, which ended August 25, 2003. 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 Committee's recommendation, and other information, it is found that
finalizing the interim final rule, without change, as published in the
Federal Register (68 FR 37391, June 24, 2003) 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.
PART 993--DRIED PRUNES IN CALIFORNIA
0
Accordingly, the interim final rule amending 7 CFR part 993 which was
published in the Federal Register at 68 FR 37391 on June 24, 2003, is
adopted as a final rule without change.
Dated: September 16, 2003.
Kenneth C. Clayton,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 03-24099 Filed 9-18-03; 12:01 pm]
BILLING CODE 3410-02-U