[Federal Register: July 9, 2004 (Volume 69, Number 131)]
[Rules and Regulations]
[Page 41385-41388]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr09jy04-3]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 989
[Docket No. FV04-989-3 IFR]
Raisins Produced From Grapes Grown in California; Change to
Reporting Requirements Regarding Other Seedless Raisins
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim final rule.
-----------------------------------------------------------------------
SUMMARY: This rule invites comments on changing the reporting
requirements regarding Other Seedless (OS) raisins under 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 (RAC). The
order provides authority for volume and quality regulations and
reporting requirements by varietal type of raisin. The OS varietal type
includes raisins produced from Flame Seedless (Flames) and other red
grapes. This rule requires handlers to report to the RAC information on
acquisitions, shipments, inventories, and inter-handler transfers of
the different types of OS raisins, including Flames. The RAC will
evaluate this data to determine whether segregating Flames into a
separate varital type is warranted.
DATES: Effective July 12, 2004; comments received by September 7, 2004,
will be considered prior to issuance of a final rule.
ADDRESSES: Interested persons are invited to submit written comments
concerning this rule. Comments must be
[[Page 41386]]
sent to the Docket Clerk, Marketing Order Administration Branch, Fruit
and Vegetable Programs, AMS, USDA, 1400 Independence Avenue, SW., STOP
0237, Washington, DC 20250-0237; fax: (202) 720-8938, e-mail:
moab.docketclerk@usda.gov, or http://www.regulations.gov. 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, or can be viewed at: http://www.ams.usda.gov/fv/moab.html.
FOR FURTHER INFORMATION CONTACT: Maureen T. Pello, Senior 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, 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. 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 of Agriculture (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. 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 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 invites comments on revising the reporting requirements
regarding OS raisins under the order. The order provides authority for
volume and quality regulations and reporting requirements by varietal
type of raisin. The OS varietal type includes raisins produced from
Flames and other red grapes. This rule requires handlers to report to
the RAC information on acquisitions, shipments, inventories, and inter-
handler transfers of the different types of OS raisins, including
Flames. The RAC will evaluate this data to determine whether
segregating Flames into a separate varietal type is warranted. This
action was unanimously recommended by the RAC at a meeting on April 13,
2004.
Section 989.73 of the order provides authority for the RAC to
collect reports from handlers. Paragraph (d) of that section provides
that, upon request of the RAC, with approval by the Secretary, handlers
shall furnish to the RAC other information as may be necessary to
enable it to exercise its powers and perform its duties. The RAC meets
routinely to make decisions on various programs authorized under the
order such as volume regulation and quality control. The RAC utilizes
information collected under the order in its decision-making. Section
989.173 of the order's administrative rules and regulations specifies
certain reports that handlers are currently required to submit to the
RAC.
Many of the reports submitted by handlers under the order require
information to be segregated by varietal type of raisin. Section 989.10
defines varietal type to mean raisins generally recognized as
possessing characteristics differing form other raisins in a degree
sufficient enough to warrant separate identification and
classification. Section 989.110 of the order's administrative rules and
regulations contains a list and description of the nine varietal types
currently segregated under the order.
One of these varietal types, OS raisins, includes raisins produced
from Flames and other similar seedless red grapes. There has been some
discussion in recent years regarding whether Flames should be
segregated into a separate varietal type. Between the 1995-96 and 2000-
01 crop years, volume regulation had not been implemented for OS
raisins, and handlers were able to market all of the OS raisins they
acquired. During this period, some handlers had expanded their market
for Flames. When volume regulation was in effect for OS raisins for the
2001-02 crop year, some Flame handlers had difficulty meeting their
market needs.
Thus, the RAC recommended revising the order's regulations to
require handlers to report data on acquisitions, shipments
(dispositions), inventories, and inter-handler transfers of Flames and
other OS raisins to the RAC beginning with the 2004-05 crop year which
starts on August 1, 2004. The RAC will review this information and
determine whether segregating Flames into a separate varietal type is
warranted. A separate varietal type would allow the RAC to consider the
application of the order's volume regulation provisions for Flames
separate from the other types of OS raisins. Accordingly, paragraphs
(a) (inventory), (b) (acquisitions), (c) dispositions, and (d) inter-
handler transfers in Sec. 989.173 are revised. Paragraph (g) in Sec.
989.173 regarding similar reports for organic raisins is also revised.
Initial 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 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
[[Page 41387]]
the regulated area. Small agricultural firms are defined by the Small
Business Administration (13 CFR 121.201) 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 $750,000. 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. No more than 7 handlers, and a majority of producers,
of California raisins may be classified as small entities.
This rule revises Sec. 989.173 to require handlers to report
acquisitions, shipments, inventories, and inter-handler transfers of
the different types of raisins within the OS varietal type. This action
is needed so that the RAC can collect accurate data on Flames, a
particular type of OS raisin, and evaluate this information to
determine whether Flames should be segregated into a separate varietal
type under the order. This would permit the RAC to consider application
of the order's volume regulation provisions to Flames separate from the
other types of OS raisins. Authority for this action is provided in
Sec. 989.73 of the order.
Regarding the impact of this action on affected entities, this
action imposes no measurable burden on OS raisin handlers. OS handlers
will be required to separate out different types of OS raisins on
reports that they are already submitting to the RAC. Most handlers have
been doing this voluntarily in recent years. This action has no impact
on raisin producers.
The RAC considered alternatives to the recommended action. The RAC
formed a work group to review the concerns raised by Flame handlers.
One alternative considered was to proceed with informal rulemaking to
establish a separate varietal type for Flames. Another alternative
considered was to try to have all handlers voluntarily separate Flames
from the other OS raisins on certain reports. After much discussion,
the work group determined that the best course of action would be to
collect data on Flames, evaluate the data, and then determine whether
segregating Flames into a separate varietal type was warranted.
This rule slightly modifies the reporting requirements on small and
large raisin handlers. All raisin handlers are currently required to
submit various reports to the RAC where the data collected is
segregated by varietal type of raisin. These reports include:
--------------------------------------------------------------------------------------------------------------------------------------------------------
Form nos. Form
--------------------------------------------------------------------------------------------------------------------------------------------------------
RAC-1.............................. Weekly Report of Standard Raisin Acquisitions.
RAC-3.............................. Weekly Report of Standard Raisins Received for Memorandum Receipt or Warehousing.
RAC-20............................. Monthly Report of Free Tonnage Raisin Disposition.
RAC-30............................. Weekly Off-Grade Summary.
RAC-50............................. Inventory of Free Tonnage Standard Quality Raisins on Hand.
RAC-51............................. Inventory of Off-Grade Raisins on Hand.
RAC-1 CO........................... Weekly Report of Organic Raisin Acquisitions.
RAC-20 CO.......................... Monthly Report of Free Tonnage Organic Raisin Disposition.
RAC-50 CO.......................... Inventory of Free Tonnage Standard Quality Organic Raisins on Hand.
RAC-51 CO.......................... Inventory of Off-Grade Raisins on Hand.
--------------------------------------------------------------------------------------------------------------------------------------------------------
This rule requires that an extra line item be added to these 10
forms so that handlers can separate out Flames from the other types of
OS raisins. Handlers will also be required to indicate the type of OS
raisin on the Inter-Handler Transfers of Free Tonnage Raisins (RAC-6),
the Monthly Free Tonnage Exports by Country of Destination (RAC-21),
and the Monthly Free Organic Tonnage Exports by Country of Destination
(RAC-21 CO); no change to these forms is needed. The current total
annual burden for all 13 of these forms is 873.48 hours. This rule will
not add to this burden on handlers.
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
chapter 35), the information collection requirements referenced above
have been approved by the Office of Management and Budget (OMB) under
OMB Control No. 0581-0178, Vegetable and Specialty Crops. 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. Finally, USDA has not identified any
relevant Federal rules that duplicate, overlap or conflict with this
rule.
Further, the RAC's work group meetings on February 12 and March 4,
2004, the Administrative Issues Subcommittee and RAC meetings on April
13, 2004, and the RAC's Executive Committee meeting on May 4, 2004,
where this action was deliberated were all 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, all interested persons are invited to submit
information on the regulatory and informational impacts of this action
on small businesses.
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.
Comments are invited concerning this rule. A 60-day comment period
is provided to allow interested persons to respond. All comments
received will be considered prior to finalization of this rule.
After consideration of all relevant material presented, including
the information and recommendation submitted by the RAC 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.
Pursuant to 5 U.S.C. 553, it is also found and determined upon good
cause that it is impracticable, unnecessary, and contrary to the public
interest to give preliminary notice prior to putting this rule into
effect, and that good cause exists for not postponing the effective
date of this rule until 30 days after publication in the Federal
Register because: (1) The RAC recommended that this action be in effect
beginning with the 2004-05 crop year which begins on August 1, 2004;
(2) this action was unanimously recommended by the RAC at a public
meeting; (3) this action imposes no additional burden on California
raisin handlers; and (4) this interim final rule provides a 60-day
period for written comments, and all comments timely received will be
considered prior to finalization of this rule.
[[Page 41388]]
List of Subjects in 7 CFR Part 989
Grapes, Marketing agreements, Raisins, Reporting and recordkeeping
requirements.
0
For the reasons set forth in the preamble, 7 CFR part 989 is amended as
follows:
PART 989--RAISINS PRODUCED FROM GRAPES GROWN IN CALIFORNIA
0
1. The authority citation for 7 CFR part 989 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. Section 989.173 is amended by:
0
A. Revising paragraph (a) introductory text;
0
B. Revising the first sentence of paragraph (b)(1)(ii);
0
C. Revising paragraph (c)(1) introductory text;
0
D. Revising paragraph (d)(1)(iii); and
0
E. Revising paragraph (g) to read as follows:
Sec. 989.173 Reports.
(a) Inventory reports. Each handler shall submit to the Committee
as of the close of business on July 31 of each crop year, and not later
than the following August 6, an inventory report which shall show, with
respect to each varietal type of raisins held by such handler:
Provided, That, for the Other Seedless varietal type, handlers shall
report the information required in this paragraph separately for the
different types of Other Seedless raisins:
* * * * *
(b) * * *
(ii) For each report required to be submitted pursuant to this
paragraph, the required information shall be shown separately for each
varietal type: Provided, That, for the Other Seedless varietal type,
the required information shall be shown separately for the different
types of Other Seedless raisins. * * *
* * * * *
(c) Reports of disposition--(1) Free tonnage raisins.
Each month each handler who is not a processor shall furnish to the
Committee, on an appropriate form provided by the Committee and so that
it is received by the Committee not later than the seventh day of the
month, a report showing the aggregate quantity of each varietal type of
free tonnage packed raisins and standard natural condition raisins
which were shipped or otherwise disposed of by such handler during the
preceding month (exclusive of transfers within the State of California
between plants of any such handler and from such handler to other
handlers): Provided, That, for the Other Seedless varietal type,
handlers shall report such information for the different types of Other
Seedless raisins. Such required information shall be segregated as to:
* * * * *
(d) * * *
(1) * * *
(iii) The varietal type of raisin, with organically produced
raisins as specified in paragraph (g) of this section separated out,
net weight, and condition of the raisins transferred: Provided, That,
for the Other Seedless varietal type, handlers shall report such
information for the different types of Other Seedless raisins; and
* * * * *
(g) Organically produced raisins. For purposes of this section,
organically produced raisins means raisins that have been certified by
an organic certification organization currently registered with the
California Department of Food and Agriculture or such certifying
organization accredited under the National Organic Program. Handlers of
such raisins shall submit the following reports to the Committee by
varietal type: Provided: That, for the Other Seedless varietal type,
handlers shall report such information for the different types of Other
Seedless raisins.
* * * * *
Dated: July 1, 2004.
A.J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 04-15583 Filed 7-8-04; 8:45 am]
BILLING CODE 3410-02-P