[Federal Register: November 17, 2006 (Volume 71, Number 222)]
[Rules and Regulations]
[Page 66837-66839]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr17no06-7]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 993
[Docket No. FV06-993-1 FR]
Dried Prunes Produced in California; Decreased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: This rule decreases the assessment rate established for the
Prune Marketing Committee (committee) under Marketing Order No. 993 for
the 2006-07 and subsequent crop years from $0.65 to $0.40 per ton of
salable dried prunes. The committee locally administers the marketing
order which regulates the handling of dried prunes produced in
California. Assessments upon dried prune handlers are used by the
committee to fund reasonable and necessary expenses of the program. The
crop year begins August 1 and ends July 31. The assessment rate will
remain in effect indefinitely unless modified, suspended, or
terminated.
DATES: Effective Date: November 20, 2006.
FOR FURTHER INFORMATION CONTACT: Toni Sasselli, Program Analyst, Terry
Vawter, Marketing Specialist, or Kurt Kimmel, Regional Manager,
California Marketing Field Office, Fruit and Vegetable Programs, AMS,
USDA; Telephone: (559) 487-5901; Fax (559) 487-5906, or E-mail:
Toni.Sasselli@usda.gov, Terry.Vawter@usda.gov, or Kurt.Kimmel@usda.gov.
Small businesses may request information on complying with this
regulation by contacting Jay Guerber,
[[Page 66838]]
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 No. 110 and Marketing Order No. 993, both as amended (7 CFR
part 993), regulating the handling of dried prunes 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. Under the marketing order now in effect, California
dried prune handlers are subject to assessments. Funds to administer
the order are derived from such assessments. It is intended that the
assessment rate as issued herein will be applicable to all assessable
dried prunes beginning August 1, 2006, and continue until amended,
suspended, or terminated. 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 decreases the assessment rate established for the
committee for the 2006-07 and subsequent crop years from $0.65 to $0.40
per ton of salable dried prunes handled.
The California dried prune marketing order provides authority for
the committee, with the approval of USDA, to formulate an annual budget
of expenses and collect assessments from handlers to administer the
program. The members of the committee are producers and handlers of
California dried prunes. They are familiar with the committee's needs
and with the costs for goods and services in their local area and are
thus in a position to formulate an appropriate budget and assessment
rate. The assessment rate is formulated and discussed in at least one
public meeting. Thus, all directly affected persons have an opportunity
to participate and provide input.
For the 2005-06 and subsequent crop years, the committee
recommended, and USDA approved, an assessment rate that would continue
in effect from crop year to crop year unless modified, suspended, or
terminated by USDA upon recommendation and information submitted by the
committee or other information available to USDA.
The committee met on June 29, 2006, and unanimously recommended a
decreased assessment rate of $0.40 per ton of salable dried prunes and
expenditures totaling $77,215 for the 2006-07 crop year. In comparison,
last year's approved expenditures were $89,090. The $0.40 per ton
assessment rate is $0.25 lower than the 2005-06 rate.
The committee recommended a lower assessment rate based on an
estimated production of 145,000 tons of salable dried prunes. At the
decreased assessment rate, the assessment income for the 2006-07 crop
year should be $58,000. The committee has $19,215 of excess assessment
income available and those funds plus assessment income should be
adequate to cover its estimated expenses of $77,215.
The major expenditures recommended by the committee for the 2006-07
crop year include $48,405 for personnel salaries, $15,645 for operating
expenses, and $13,165 for contingencies. For the 2005-06 crop year, the
committee's budgeted expenses for these items were $45,945, $16,755,
and $26,390, respectively.
The assessment rate recommended by the committee was derived by
dividing the handler assessment revenue needed to meet expenses by the
estimated salable tons of California dried prunes. Dried prune
production for the year is estimated to be 145,000 salable tons, which
should provide $58,000 in assessment income. Income derived from
handler assessments plus excess funds from the 2005-06 crop year should
be adequate to cover budgeted expenses.
The committee is authorized under Sec. 993.81(c) of the order to
use excess assessment funds from the 2005-06 crop year (estimated at
$19,215) for up to 5 months beyond the end of the crop year to meet
2006-07 crop year expenses. At the end of the 5 months, the committee
must either refund or credit excess funds to handlers.
The assessment rate will continue in effect indefinitely unless
modified, suspended, or terminated by USDA upon recommendation and
information submitted by the committee or other available information.
Although this assessment rate will be in effect for an indefinite
period, the committee will continue to meet prior to or during each
crop year to recommend a budget of expenses and consider
recommendations for modification of the assessment rate. The dates and
times of committee meetings are available from the committee or USDA.
Committee meetings are open to the public and interested persons may
express their views at these meetings. USDA will evaluate committee
recommendations and other available information to determine whether
modification of the assessment rate is needed. Further rulemaking will
be undertaken as necessary. The committee's 2006-07 budget and those
for subsequent crop years will be reviewed and, as appropriate,
approved by USDA.
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. Thus, both statutes have small
entity orientation and compatibility.
There are approximately 1,100 producers of dried prunes in the
production area and approximately 22 handlers subject to regulation
under the marketing order. The Small Business Administration (13 CFR
121.201) defines small agricultural producers as those having annual
receipts less than $750,000, and small agricultural service
[[Page 66839]]
firms as those whose annual receipts are less than $6,500,000.
An estimated 1,068 of the 1,100 producers (97.1 percent) have
incomes of less than $750,000 and would be considered small producers.
Fourteen of the 22 handlers (63.6 percent) have incomes from handling
prunes of less than $6,500,000 and could be considered small handlers.
Therefore, the majority of handlers and producers of California dried
prunes may be classified as small entities.
This rule decreases the assessment rate established for the
committee and collected from handlers for the 2006-07 and subsequent
crop years from $0.65 to $0.40 per ton of salable dried prunes.
The committee met on June 29, 2006, and unanimously recommended a
2006-07 total budget of $77,215 and a decreased assessment rate of
$0.40 per ton of salable dried prunes. The recommended budget of
$77,215 for the 2006-07 crop year is smaller than the budgets in
previous crop years. The $0.40 per ton assessment rate is $0.25 lower
than the 2005-06 rate. The quantity of salable dried prunes for the
2006-07 crop year is estimated at 145,000 tons, compared to 94,402 tons
for the 2005-06 crop year.
Prior to arriving at its budget of $77,215, the committee
considered information from various sources, including the committee's
Executive Subcommittee. Alternative assessment rates, including the
rate currently in effect, and different expenditure levels were
discussed by the subcommittee and the committee. An alternative to this
action would be to continue with the $0.65 per ton assessment rate.
However, an assessment rate of $0.40 per ton of salable dried prunes
and excess funds from the 2005-06 crop year will provide enough income
to fund the committee's operations.
Therefore, the committee agreed that $0.40 per ton of salable dried
prunes is an acceptable assessment rate. Section 993.81(c) of the order
provides the committee the authority to use excess assessment funds
from the 2005-06 crop year (estimated at $19,215) for up to 5 months
beyond the end of the crop year to meet 2005-06 crop year expenses. At
the end of the 5 months, the committee must either refund or credit
excess funds to handlers.
A review of historical information and preliminary data pertaining
to the 2006-07 crop year indicates that the producer price for the
2006-07 crop year is expected to average between $1,500 and $1,600 per
ton of salable dried prunes. Based on an estimated 145,000 salable tons
of dried prunes, assessment revenue as a percentage of producer revenue
during the 2006-07 crop year is expected to be between .025 and .027
percent.
This action decreases the assessment obligation imposed on
handlers. Assessments are applied uniformly on all handlers, and some
of the costs may be passed on to producers. However, decreasing the
assessment rate reduces the burden on handlers, and may reduce the
burden on producers. In addition, the committee's meeting was widely
publicized throughout the California dried prune industry and all
interested persons were invited to attend the meeting and participate
in committee deliberations on all issues. Like all committee meetings,
the June 29, 2006, meeting was public and all entities, both large and
small, were encouraged to express views on this issue.
This rule imposes no additional reporting or recordkeeping
requirements on either small or large California dried prune handlers.
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.
The 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.
USDA has not identified any relevant Federal rules that duplicate,
overlap, or conflict with this rule.
A proposed rule concerning this action was published in the Federal
Register on September 22, 2006. Copies of the proposed rule were also
mailed or sent via facsimile to all dried prune handlers. Finally, the
proposal was made available through the Internet by USDA and the Office
of the Federal Register. A 30-day comment period ending October 23,
2006, was provided for interested persons to respond to the proposal.
One comment was received. The commenter was of the view that the rule
was confusing. We disagree. This action is similar to previous actions
published in the Federal Register concerning assessments on handlers
under marketing order programs. Accordingly, no changes will be made to
the proposed rule based on the comment 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 committee 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 that good
cause exists for not postponing the effective date of this rule until
30 days after publication in the Federal Register because the crop year
began on August 1, 2006, and handlers are already receiving 2006-07
crop dried prunes from growers. The decreased assessment rate applies
to all dried prunes received during the 2006-07 year and subsequent
seasons, and this action reduces the assessment rate. Further, handlers
are aware of this rule which was unanimously recommended at a public
meeting. Also, a 30-day comment period was provided for in the proposed
rule.
List of Subjects in 7 CFR Part 993
Marketing agreements, Plums, Prunes, Reporting and recordkeeping
requirements.
0
For the reasons set forth in the preamble, 7 CFR part 993 is amended as
follows:
PART 993--DRIED PRUNES PRODUCED IN CALIFORNIA
0
1. The authority citation for 7 CFR part 993 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. Section 993.347 is revised to read as follows:
Sec. 993.347 Assessment rate.
On and after August 1, 2006, an assessment rate of $0.40 per ton of
salable dried prunes is established for California dried prunes.
Dated: November 14, 2006.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. E6-19463 Filed 11-16-06; 8:45 am]
BILLING CODE 3410-02-P