[Federal Register: September 25, 2007 (Volume 72, Number 185)]
[Rules and Regulations]
[Page 54341-54343]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr25se07-1]
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Rules and Regulations
Federal Register
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[[Page 54341]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 989
[Docket No. AMS-FV-07-0083; FV07-989-3 FIR]
Raisins Produced From Grapes Grown in California; Change in
Requirements for Interhandler Transfers of Raisins
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 requirements
for interhandler transfers of raisins under the administrative rules
and regulations of the California raisin marketing order (order). The
order regulates the handling of raisins produced from grapes grown in
California and is administered locally by the Raisin Administrative
California (Committee or RAC). This rule continues in effect the action
that requires handlers who transfer raisins to other handlers within
the State of California to certify to the Committee that only acquired,
free-tonnage raisins that meet all applicable order requirements are
being transferred to receiving handlers. This action helps maintain the
integrity of the order by ensuring that handlers only transfer
acquired, free-tonnage raisins that meet applicable order requirements.
EFFECTIVE DATE: October 25, 2007.
FOR FURTHER INFORMATION CONTACT: Rose M. Aguayo, Marketing Specialist,
or Kurt J. Kimmel, Regional Manager, California Marketing Field Office,
Marketing Order Administration Branch, Fruit and Vegetable Programs,
AMS, USDA, Telephone: (559) 487-5901, Fax: (559) 487-5906, or E-mail:
Rose.Aguayo@usda.gov, or Kurt.Kimmel@usda.gov.
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 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 revisions to the requirements for
interhandler transfers of raisins under the administrative rules and
regulations of the California raisin order. This rule requires handlers
who transfer raisins to other handlers within the State of California
to certify to the Committee that only acquired, free-tonnage raisins
that meet all applicable order requirements are being transferred.
Pursuant to Sec. 989.17, ``acquire means to have or obtain
physical possession of raisins by a handler at his packing or
processing plant or at any other established receiving station operated
by him.'' However, handlers are not deemed to acquire raisins if they
are being stored for another, being reconditioned, or held for
inspection. Also the term only applies to the handler who first obtains
possession of the raisins. Free tonnage raisins are those raisins which
have been acquired, not placed in the reserve pool, and for which
producers receive payment for 100 percent of handler purchases. This
change helps maintain the integrity of the order and was unanimously
recommended by the Committee at a public meeting on April 12, 2007.
Section 989.59(e) of the order provides authority for handlers who
acquire free-tonnage raisins to transfer such raisins to other handlers
within the State of California. It also specifies that transferring
handlers shall promptly report such transfers to the Committee, unless
transfers are between plants owned or operated by the same handler.
Further, it specifies that receiving handlers shall comply with all
applicable order requirements before shipping or otherwise making final
disposition of such raisins.
Section 989.73 of the order provides authority for the RAC to
collect reports from handlers and specifies that, upon request by the
RAC, with the approval of 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
interhandler transfers. 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. Under Sec. 989.173(d)(1) of the order's rules and
regulations any handler who transfers free-tonnage raisins to another
handler within the State of California shall submit a report to the
Committee showing information regarding the interhandler transfer not
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later than five calendar days following such transfer.
Such information includes the transfer date; the names and
addresses of the transferring parties; the varietal type, net weight,
and condition of the raisins transferred; and the inspection
certificate number, if the raisins have already been packed.
Transferring handlers are required to forward two copies of the RAC
Form No. 6, ``Interhandler Transfers of Free-Tonnage Raisins,'' to the
receiving handler at the same time the report is submitted to the
Committee. The receiving handler is required to certify receiving the
raisins and to submit one copy of the certification report to the
Committee within five calendar days of receiving the raisins or the
copies of RAC Form No. 6, whichever is later.
The Committee is concerned that some handlers may be transferring
California raisins which are not acquired or which do not meet all
applicable order requirements. Such requirements include proper
reporting, inspection, assessments, and volume regulation. To help
ensure that handlers only transfer acquired, free-tonnage raisins that
meet all applicable order requirements, the Committee unanimously
recommended that transferring handlers certify on RAC Form No. 6,
``Interhandler Transfer of Free-Tonnage Raisins,'' that only acquired,
free-tonnage raisins that meet all applicable order requirements are
being transferred. The Committee expects that requiring this
certification should help maintain the integrity of the order.
This rule continues to modify Sec. 989.173(d)(1) by deleting the
word ``and'' from paragraph (iii); by changing the period to a semi-
colon and adding the word ``and'' at end of paragraph (iv); and by
adding a new subparagraph (v), which requires handlers to certify that
the raisins being transferred are acquired, free-tonnage raisins that
meet all applicable order requirements including proper reporting,
incoming inspection, assessments, and volume regulation.
The RAC Form No. 6, ``Interhandler Transfer of Free-Tonnage
Raisins'' has been modified by the addition of the following paragraph:
``To Be Completed by Transferring Handler: The undersigned certifies
that the raisins being transferred have met all Federal order
requirements, including proper reporting, incoming inspection,
assessments, and volume regulations, if applicable.'' No additional
reporting burden is placed upon handlers.
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.
There are approximately 23 handlers of California raisins who are
subject to regulation under the order and approximately 4,000 raisin
producers in the regulated area. Small agricultural service firms are
defined by the Small Business Administration (SBA) (13 CFR 121.201) as
those having annual receipts of less than $6,500,000, and small
agricultural producers are defined as those having annual receipts of
less than $750,000. No more than 10 handlers, and a majority of
producers, of California raisins may be classified as small entities.
Thirteen of the 23 handlers subject to regulation have annual sales
estimated to be at least $6,500,000, and the remaining 10 handlers have
sales less than $6,500,000.
This rule continues to revise Sec. 989.173(d)(1) of the order's
administrative rules and regulations and requires handlers who transfer
raisins to other handlers to certify on RAC Form No. 6, ``Interhandler
Transfer of Free-Tonnage Raisins,'' that only acquired, free-tonnage
raisins that meet all applicable order requirements are being
transferred. This helps maintain the integrity of the order. Authority
for interhandler transfers is provided in Sec. 989.59, and authority
to recommend this change is provided in Sec. 989.73 of the order.
Regarding the impact of this action on affected entities, it
continues to require handlers who transfer raisins to other handlers to
certify on RAC Form No. 6, ``Interhandler Transfer of Free-Tonnage
Raisins,'' that such raisins are acquired, free-tonnage raisins that
meet all applicable order requirements.
The Committee considered not requiring handlers to certify that
their transferred raisins are acquired free-tonnage raisins and that
they meet all applicable order requirements. However, the Committee was
concerned that some handlers may be transferring California raisins
which are not acquired or which do not meet all applicable order
requirements. Such requirements include proper reporting, incoming
inspection, assessments, and volume regulation. As receiving handlers
want additional assurance that they are receiving raisins which have
been acquired and which meet applicable order requirements, the
Committee unanimously recommended revising the requirements regarding
interhandler transfers of free-tonnage raisins.
All handlers must currently report their interhandler transfers to
the Committee on RAC Form No. 6, ``Interhandler Transfer of Free-
Tonnage Raisins.'' This form is currently approved by the Office of
Management and Budget (OMB) under OMB No. 0581-0178, Vegetable and
Specialty Crops. This rule continues to add a certifying statement
above the transferring handler's signature block to this form.
This rule will not impose any additional reporting or recordkeeping
requirements on either small or large raisin handlers. As with all
Federal marketing order programs, reports and forms are periodically
reviewed to reduce information requirements and duplication by the
industry and public sector agencies. In addition, as noted in the final
regulatory flexibility analysis, USDA has not identified any relevant
Federal rules that duplicate, overlap or conflict with this rule.
AMS is committed to complying with the E-Government Act, to promote
the use of the Internet and other information technologies to provide
increased opportunities for citizen access to Government information
and services, and for other purposes.
Further, the Committee's meetings were widely publicized throughout
the California raisin industry and all interested persons were invited
to attend the meetings and participate in deliberations on all issues.
The Committee's Administrative Issues Work Group discussed this issue
at length during meetings on January 23, and February 1, 2007. The
Administrative Issues Subcommittee thus recommended the change to the
Committee on April 12, 2007. All of these meetings were public meetings
and all entities, both large and small, were able to express views on
this issue.
An interim final rule concerning this action was published in the
Federal Register on August 7, 2007. Copies of the rule were also mailed
to Committee members and alternates and all raisin handlers. In
addition, the rule was made
[[Page 54343]]
available through the Internet by USDA and the Office of the Federal
Register. That rule provided for a 15-day comment period which ended on
August 22, 2007. One comment supporting the rule was received. The
commenter concurred that this action helps to maintain the integrity of
the order.
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 materials presented, including
the Committee's recommendation, and other information, it is found that
finalizing this interim final rule, without change, as published in the
Federal Register (72 FR 44029, August 7, 2007), will tend to effectuate
the declared policy of the Act.
List of Subjects in 7 CFR Part 989
Grapes, Marketing agreements, Raisins, Reporting and recordkeeping
requirements.
PART 989--RAISINS PRODUCED FROM GRAPES GROWN IN CALIFORNIA
0
Accordingly, the interim final rule amending 7 CFR part 989 which was
published at 72 FR 44029 on August 7, 2007, is adopted as a final rule
without change.
Dated: September 19, 2007.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. E7-18794 Filed 9-24-07; 8:45 am]
BILLING CODE 3410-02-P