[Federal Register: September 28, 2004 (Volume 69, Number 187)]
[Rules and Regulations]
[Page 57822-57824]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr28se04-4]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 989
[Docket No. FV04-989-3 FIR]
Raisins Produced From Grapes Grown in California; Change to
Reporting Requirements Regarding Other Seedless Raisins
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Department of Agriculture (USDA) is adopting, as a final
rule, without change, an interim final rule 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 varietal type is warranted.
DATES: Effective October 28, 2004.
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 continues in effect revisions to 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 continues to
require 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 decisionmaking. 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 from 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
[[Page 57823]]
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
started 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 continue to be revised. Paragraph
(g) in Sec. 989.173 regarding similar reports for organic raisins also
continues to be revised.
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 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 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 continues to revise 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 continues to slightly modify the reporting requirements
on small and large raisin handlers. All raisin handlers are required to
submit various reports to the RAC where the data collected are
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 continues to require 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 continue to 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
[[Page 57824]]
interested persons were invited to attend the meetings and participate
in the industry's deliberations.
An interim final rule concerning this action was published in the
Federal Register on July 9, 2004. Copies of the rule were mailed by RAC
staff to all RAC members and raisin handlers. In addition, the rule was
made available through the Internet by USDA and the Office of the
Federal Register. That rule provided for a 60-day comment period which
ended September 7, 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.
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 finalizing the interim
rule, without change, as published in the Federal Register (69 FR
41385, July 9, 2004) 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 69 FR 41385 on July 9, 2004, is adopted as a final rule
without change.
Dated: September 22, 2004.
A.J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 04-21629 Filed 9-27-04; 8:45 am]
BILLING CODE 3410-02-P