[Federal Register: April 22, 2004 (Volume 69, Number 78)]
[Rules and Regulations]
[Page 21689-21692]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr22ap04-1]
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Rules and Regulations
Federal Register
________________________________________________________________________
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[[Page 21689]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 925
[Docket No. FV04-925-1 IFR]
Grapes Grown in a Designated Area of Southeastern California;
Establishment of Reporting Requirements
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim final rule with request for comments.
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SUMMARY: This rule establishes 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 will
enable 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 also are expected
to be reduced because the submission of end-of-season grape shipment
reports will be less costly and less time consuming than yearly handler
audits.
DATES: Effective April 23, 2004; comments received by June 21, 2004,
will be considered prior to issuance of a final rule. Pursuant to the
Paperwork Reduction Act, comments on the information collection burden
must be received by June 21, 2004.
ADDRESSES: Interested persons are invited to submit written comments
concerning this rule. Comments must be 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, or 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: 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.''
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. 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 establishes end-of-season reporting requirements
authorized under the California grape order. Requiring handlers to file
end-of-season grape shipment reports with the Committee will enable 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. This action also is expected to
reduce handler costs because 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.
Currently, the Committee obtains data on grape shipments during
handler audits at the end of the season. These
[[Page 21690]]
handler audits are time consuming and expensive for both the Committee
staff and grape handlers. Detailed information follows on these burdens
in the Initial Regulatory Flexibility Analysis section of this
document.
Therefore, at its January 15, 2004, meeting the Committee
unanimously recommended establishing Sec. 925.160 under the order's
rules and regulations and further clarified this recommendation at its
February 5, 2004, meeting. Section 925.160 will read 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 or
country), and the number of lugs shipped (pounds).''
The end-of-season grape shipment reporting requirements recommended
by the Committee 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 may 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 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 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 9 in favor, 0 opposed, and 0
abstained. This change does not impact the grape import regulation.
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 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 establishes end-of-season reporting requirements
authorized under the California grape order. Requiring handlers to file
end-of-season grape shipment reports with the Committee will enable 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. This action also is expected to
reduce handler costs, 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.
Currently, the Committee obtains 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 the Committee
unanimously recommended establishing Sec. 925.160 under the order's
rules and regulations and further clarified this recommendation at its
February 5, 2004, meeting. Section 925.160 will read 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 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
[[Page 21691]]
approximately 10 hours (20 handlers x 30 minutes = 10 hours).
The Committee believes that this action will reduce handler costs
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. Currently, the 20 grape handlers
regulated under the order pay approximately $5,283 and expend
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. Therefore, the
Committee estimates that an annual savings of $3,698 and 88 man-hours
for handlers will be realized through the use of the end-of-season
shipment reports.
Additionally, this rule is expected to reduce the number of hours
of Committee staff time and administrative costs currently incurred by
the Committee in conducting handler audits. In conducting audits of all
industry handlers, the Committee annually spends 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 9 in favor, 0 opposed, and 0 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.
Finally, 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.
As previously mentioned, this rule will impose some additional
reporting and recordkeeping on both small and large grape handlers.
This action requires one new Committee form. The information collection
requirements are discussed later in this document. 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
publication of the final rule, 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 the
establishment of Sec. 925.160 under the order's rules and regulations
and further clarified this recommendation at its February 5, 2004,
meeting. Section 925.160 will require 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 will assist 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.
Comments: Comments are invited on: (1) Whether this collection of
information is necessary for the proper performance of the functions of
the agency, including whether the information will have practical
utility; (2) the accuracy of the agency's estimate of the burden of the
proposed collection of information, including the validity of the
methodology and assumptions used; (3) ways to enhance the quality,
utility, and clarity of the information to be collected; and (4) ways
to minimize the burden of the collection of information on those who
are to respond, including the use of appropriate automated, electronic,
mechanical, or other
[[Page 21692]]
technological collection techniques or other forms of information
technology.
Comments should reference OMB No. 0581-0220 and the Marketing Order
for Grapes Grown in a Designated Area of Southeastern California and be
sent to the USDA in care of the Docket Clerk at the previously
mentioned address. All comments timely received will be available for
public inspection during regular business hours at the same address.
All responses to this notice will be summarized and included in the
request for OMB approval. All comments will become a matter of public
record. 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 publication of
the final rule, this collection will be merged with the forms currently
approved for use under OMB No. 0581-0189 ``Generic OMB Fruit Crops.''
In summary, this rule establishes end-of-season reporting
requirements authorized under the California grape order. Requiring
handlers to file end-of-season grape shipment reports with the
Committee will enable 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. This action
also is expected to reduce the handler costs, because the submission of
end-of-season grape shipment reports should be less costly and less
time consuming than yearly handler audits. Any comments received will
be considered prior to finalization of this rule.
After consideration of all relevant material presented, including
the Committee's recommendation and other information, it is found that
this interim final 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) This action adds end-of-season grape shipment reporting
requirements to facilitate handler and committee staff operations and
to reduce costs; (2) the Committee unanimously recommended the end-of-
season reporting requirement at a public meeting and interested parties
had an opportunity to provide input; (3) California grape shipments are
expected to begin approximately April 20, 2004, and this rule should be
in effect as soon as possible; (4) this rule provides for a 60-day
comment period and any comments received will be considered prior to
finalization of this rule.
List of Subjects in 7 CFR Part 925
Grapes, Marketing agreements and orders, Reporting and
recordkeeping requirements.
0
For the reasons set forth in the preamble, 7 CFR part 925 is amended as
follows:
PART 925--GRAPES GROWN IN A DESIGNATED AREA OF SOUTHEASTERN
CALIFORNIA
0
1. The authority citation for 7 CFR part 925 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. Section 925.160 is added to Subpart--Rules and Regulations to read
as follows:
Sec. 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 the Committee deems appropriate. Such reports shall show the
reporting period, 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).
Dated: April 16, 2004.
A.J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 04-9097 Filed 4-21-04; 8:45 am]
BILLING CODE 3410-02-P