[Federal Register: August 16, 2004 (Volume 69, Number 157)]
[Rules and Regulations]
[Page 50283-50286]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr16au04-6]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 925
[Docket No. FV04-925-1 FIR]
Grapes Grown in a Designated Area of Southeastern California;
Establishment of Reporting Requirements
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: The Department of Agriculture is adopting, as a final rule,
without change, an interim final rule which established end-of-season
reporting requirements authorized under the California grape marketing
order (order). The order regulates the handling of grapes grown in a
designated area of Southeastern California and is administered locally
by the California Desert Grape Administrative Committee (Committee).
Requiring handlers to file end-of-season grape shipment reports with
the Committee enables the Committee to obtain accurate shipment data
for assessment billing and for the next season's marketing decisions
without incurring the expense of auditing every handler. Handler costs
will continue to be reduced because the submission of end-of-season
grape shipment reports is expected to be less costly and less time
consuming than yearly handler audits.
DATES: Effective Date: September 15, 2004.
FOR FURTHER INFORMATION CONTACT: Rose Aguayo, 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 Order
No. 925 (7 CFR part 925), regulating the handling of 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.''
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 end-of-season reporting requirements
authorized under the California grape order. Requiring handlers to file
end-of-season grape shipment reports with the Committee enables the
Committee to obtain accurate shipment data for assessment billing and
for the next season's marketing decisions without incurring the expense
of auditing every handler each year. Handler costs will continue to be
reduced because the preparation and submission of end-of-season grape
shipment reports is expected to be less costly and less time consuming
than yearly handler audits. This action is in the best interest of
producers and handlers.
Section 925.41 of the grape order provides authority to assess each
person who first handles grapes a pro rata share of the expenses which
are reasonable and likely to be incurred by the Committee during a
fiscal period.
Section 925.215 of the order's rules and regulations establishes an
assessment rate of $0.015 per 18-pound lug for grapes grown in a
designated area of southeastern California.
Section 925.60(b) of the grape order provides authority for
establishing reporting requirements. Under the marketing order, the
Committee may, with the approval of the Secretary, establish reporting
requirements to collect necessary information or data. The Committee
needs data on grape shipments to provide an accurate basis for handler
assessments and for the next season's marketing decisions.
Prior to publication of the interim final rule (69 FR 21689, April
22, 2004), the Committee obtained data on grape shipments during
handler audits at the end of the season. These handler audits were time
consuming and expensive for both the Committee staff and grape
handlers. Detailed information follows on these burdens in the Final
Regulatory Flexibility Analysis section of this document.
Therefore, at its January 15, 2004, meeting and as clarified at its
February 5, 2004, meeting, the Committee unanimously recommended and
USDA subsequently approved establishment of Sec. 925.160 under the
order's rules and regulations. Section 925.160 reads as follows:
``Section 925.160 Reports. When requested by the California Desert
Grape Administrative Committee, each shipper who ships grapes, shall
furnish an end-of-season grape shipment report
[[Page 50284]]
(CDGAC-3) to the Committee no later than 10 days after the last day of
shipment for the season or such later time as the Committee deems
appropriate. Such reports shall show the reporting period (the date of
the handler's first shipment and the date of the handler's last
shipment), the name and other identification of the shipper and grower,
the invoice number, shipping date, varietal name, shipment destination
(city and state or country), and the number of lugs shipped (pounds).''
The end-of-season grape shipment reporting requirements recommended
by the Committee and subsequently approved by the USDA are similar to
those required by the California Table Grape Commission (Commission)
under a State of California program under which grape research and
promotion activities are implemented. Because the Commission is
prohibited from sharing confidential handler information, the Committee
recommended that an end-of-season grape shipment report be developed
for Committee use. Grape shipment data already compiled by handlers for
the Commission will be attached to the Committee form to meet the new
reporting requirements. Thus, handlers will not be duplicating their
efforts and both agencies will receive necessary shipment data for
respective program purposes.
The Committee estimates that this action will continue to impact 20
handlers of grapes and further estimates that, on average, each handler
will expend approximately 30 minutes per year to prepare and submit
this report and accompanying information to the Committee. The
Committee believes that this action will continue to reduce handler
costs, because the execution and submission of the end-of-season grape
shipment report to the Committee is expected to be less costly and time
consuming than yearly audits. The Committee vote was unanimous with
nine in favor, zero opposed, and zero abstained. This revision does not
impact the grape import regulation.
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 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 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 20 handlers of California grapes who are
subject to regulation under the order and about 50 producers of grapes
in the production area. Small agricultural service 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. Eight of the 20 handlers subject to regulation have annual
grape sales of at least $5,000,000. In addition, 10 of the 50 producers
have annual sales of at least $750,000. Therefore, a majority of
handlers and producers may be classified as small entities.
This rule continues in effect end-of-season reporting requirements
authorized under the California grape order. Requiring handlers to file
end-of-season grape shipment reports with the Committee enables the
Committee to obtain accurate shipment data for assessment billing and
for the next season's marketing decisions without incurring the expense
of auditing every handler each season. Handler costs will continue to
be reduced because the preparation and submission of end-of-season
grape shipment reports is expected to be less costly and less time
consuming than yearly handler audits. This action is in the best
interest of producers and handlers.
Section 925.41 of the grape order provides authority to assess each
person who first handles grapes a pro rata share of the expenses which
are reasonable and likely to be incurred by the Committee during a
fiscal period.
Section 925.60(b) of the grape order provides authority for
establishing reporting requirements. Under the marketing order, the
Committee may, with the approval of the Secretary, establish reporting
requirements to collect necessary information or data. The Committee
needs data on grape shipments to provide an accurate basis for handler
assessments and for the next season's marketing decisions.
Prior to issuance of the interim final rule, the Committee obtained
data on grape shipments during handler audits at the end of the season.
These handler audits are time consuming and expensive for both the
Committee staff and grape handlers.
Therefore, at its January 15, 2004, meeting and as further
clarified at the Committee's February 5, 2004, meeting, the Committee
unanimously recommended and USDA subsequently approved establishing
Sec. 925.160 under the order's rules and regulations. Section 925.160
reads as follows: ``Section 925.160 Reports. When requested by the
California Desert Grape Administrative Committee, each shipper who
ships grapes, shall furnish an end-of-season grape shipment report
(CDGAC-3) to the Committee no later than 10 days after the last day of
shipment for the season or such later time as the Committee deems
appropriate. Such reports shall show the reporting period (the date of
the handler's first shipment and the date of the handler's last
shipment), the name and other identification of the shipper and grower,
the invoice number, shipping date, varietal name, shipment destination
(city and state), and the number of lugs shipped (pounds).''
The end-of-season reporting requirements recommended by the
Committee and subsequently approved by the USDA are similar to those
now required by the California Table Grape Commission (Commission). The
Commission administers a State of California research and promotion
program for grapes produced in California. Because the Commission is
prohibited from sharing confidential handler information, the Committee
recommended that an end-of-season grape shipment report be developed
for Committee use. Shipment data currently compiled by handlers for the
Commission will be able to be attached to the newly developed Committee
form to meet the Committee's shipment information needs. Thus, handlers
will not be duplicating their efforts and both agencies will receive
necessary shipment data for program activities. The Committee estimates
that 20 grape handlers will be affected by this action with a total
annual industry burden of approximately 10 hours (20 handlers x 30
minutes = 10 hours).
The Committee believes that handler costs will continue to be
reduced because the preparation and submission of the end-of-season
grape shipment report to the Committee is expected to be less costly
and time consuming than yearly audits. Prior to issuance of the interim
final rule, the 20 grape handlers regulated under the order paid
approximately $5,283 and expended approximately 126 man-hours annually
for the yearly audits. Approximately \1/3\ of the handler audits will
continue to be conducted by the Committee for order compliance purposes
each year. Therefore, the Committee continues to estimate that an
annual savings of $3,698 and 88 man-hours for handlers
[[Page 50285]]
will be realized through the use of the end-of-season shipment reports.
Additionally, this rule is expected to continue to affect the
reduction in the number of hours of Committee staff time and
administrative costs incurred by the Committee in conducting handler
audits. Prior to issuance of the interim final rule, the Committee, in
conducting audits of all industry handlers, annually spent about $3,600
and about 300 man-hours. If only one-third of the handlers are audited
each year, the Committee expects to save about $2,400 and about 200
hours of Committee time. Thus, actual Committee costs using the new
shipment form should be about $1,200 and 100 man-hours.
The Committee discussed alternatives to this change, including
requiring handlers to submit the end-of-season grape shipment report 5
days after the end of the season. The Committee rejected the 5-day
requirement, as they believe handlers need at least 10 days to complete
end-of-season handler activities. Additionally, the Committee
considered not establishing an end-of-season grape shipment report, but
concluded, as previously mentioned, that adding an end-of-season grape
shipment reporting requirement will significantly reduce handler costs,
as submission of this report will be less costly and less time
consuming than yearly handler audits. The Committee vote was unanimous
with nine in favor, zero opposed, and zero abstained. This rule is in
the interest of handlers and producers. These revisions do not impact
the grape import regulation.
Further, the Committee's meetings were widely publicized throughout
the grape industry and all interested persons were invited to attend
the meetings and participate in the Committee's deliberations. Like all
Committee meetings, the January 15, 2004, and February 5, 2004,
meetings were public meetings and all entities, both large and small,
were able to express their views on these issues.
An interim final rule concerning this action was published in the
Federal Register on April 22, 2004. Copies of the rule were mailed, e-
mailed or faxed by the Committee staff to all Committee members and
grape handlers. 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 June 21, 2004. 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.
As previously mentioned, this rule continues to impose some
additional reporting and recordkeeping on both small and large grape
handlers. This action continues to require one new Committee form. The
information collection requirements are discussed below. 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, USDA has not identified any
relevant Federal rules that duplicate, overlap or conflict with this
rule.
Paperwork Reduction Act
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
chapter 35), this notice announces that AMS has requested and obtained
emergency approval from the Office of Management and Budget (OMB) for a
new information collection request for Marketing Order No. 925,
regulating the handling of grapes grown in a designated area of
Southeastern California. This emergency approval was assigned OMB No.
0581-0220. The emergency request was necessary because insufficient
time was available to follow normal clearance channels. Upon final
approval by OMB, this collection will be merged with the forms
currently approved for use under OMB No. 0581-0189 ``Generic OMB Fruit
Crops.''
Title: Grapes Grown in a Designated Area of Southeastern
California; Marketing Order No. 925.
OMB Number: 0581-0220.
Type of Request: New collection.
Abstract: These information collection requirements are essential
to carry out the intent of the Act, to provide the respondents the type
of service they request, and to administer the California Desert Grape
marketing order program, which has been operating since 1980.
On January 15, 2004, the Committee unanimously recommended and the
USDA subsequently approved the establishment of Sec. 925.160 under the
order's rules and regulations, as further clarified by the Committee at
its February 5, 2004, meeting. Section 925.160 requires handlers to
furnish an end-of-season grape shipment report (CDGAC-3) to the
Committee staff no later than 10 days after the last day of shipment
for the season, or such later time, as the Committee deems appropriate.
Any handler who ships grapes during the season will be required to
report total shipments, and related information, to the Committee. The
information requirements created by this action will be reported using
one new Committee form, and by attaching shipment information required
under the State of California research and promotion program to that
form. The new reporting requirement assists the Committee in obtaining
accurate shipment data for assessment billing and for the next season's
marketing decisions.
The information collected will be used only by authorized
representatives of the USDA, including AMS, Fruit and Vegetable
Programs' regional and headquarters' staff, and authorized Committee
employees. Authorized Committee employees are the primary users of the
information and AMS is the secondary user.
The request for approval of the new information collection under
the order is as follows:
End of Season Shipment Report, CDGAC Form No. 3
Estimate of Burden: Public reporting burden for this collection of
information is estimated to average 30 minutes per response.
Respondents: Persons who ship California grapes from a designated
area of Southeastern California.
Estimated Number of Respondents: 20.
Estimated Number of Responses per Respondent: 1.
Estimated Total Annual Burden on Respondents: 10 hours.
No comments were submitted on this information collection. As
mentioned before, because there was insufficient time for a normal
clearance procedure and prompt implementation was needed, AMS has
obtained emergency approval from OMB for the use of this form for the
2004 regulation period, which began April 2004. Upon final approval by
OMB, this collection will be merged with the forms currently approved
for use under OMB No. 0581-0189 ``Generic OMB Fruit Crops.''
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 (69 FR 21689, April 22, 2004) will tend to effectuate
the declared policy of the Act.
List of Subjects in 7 CFR Part 925
Grapes, Marketing agreements and orders, Reporting and
recordkeeping requirements.
[[Page 50286]]
PART 925--GRAPES GROWN IN A DESIGNATED AREA OF SOUTHEASTERN
CALIFORNIA
0
Accordingly, the interim final rule amending 7 CFR part 925 which was
published at 69 FR 21689 on April 22, 2004, is adopted as a final rule
without change.
Dated: August 10, 2004.
A.J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 04-18609 Filed 8-13-04; 8:45 am]
BILLING CODE 3410-02-P