Domestic Dates Produced or Packed in Riverside County, CA; Modification of the Qualification Requirements for Approved Manufacturers of Date Products, 11117-11120 [05-4448]

Download as PDF Federal Register / Vol. 70, No. 44 / Tuesday, March 8, 2005 / Rules and Regulations 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 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) The 2005 fiscal period began on January 1, 2005, and the marketing order requires that the rate of assessment for each fiscal period apply to all assessable Vidalia onions handled during such fiscal period; (2) this action changes the assessable carton size from a 50-pound bag or equivalent to the current industry standard 40-pound carton size; (3) the Committee needs to have sufficient funds to pay its expenses, which are incurred on a continuous basis; (4) handlers are aware of this action which was unanimously recommended by the Committee at a public meeting and is similar to other assessment rate actions issued in past years; and (5) this interim final rule provides a 60-day comment period, and all comments timely received will be considered prior to finalization of this rule. List of Subjects in 7 CFR Part 955 Onions, Marketing agreements, Reporting and recordkeeping requirements. For the reasons set forth in the preamble, 7 CFR part 955 is amended as follows: I PART 955—VIDALIA ONIONS GROWN IN GEORGIA 1. The authority citation for 7 CFR part 955 continues to read as follows: I Authority: 7 U.S.C. 601–674. 2. Section 955.209 is revised to read as follows: I § 955.209 Assessment rate. On and after January 1, 2005, an assessment rate of $0.10 per 40-pound carton or equivalent is established for Vidalia onions. Dated: March 2, 2005. Kenneth C. Clayton, Acting Administrator, Agricultural Marketing Service. [FR Doc. 05–4447 Filed 3–7–05; 8:45 am] BILLING CODE 3410–02–P VerDate jul<14>2003 11:16 Mar 07, 2005 Jkt 205001 DEPARTMENT OF AGRICULTURE Agricultural Marketing Service [Docket No. FV04–987–1 FR] Domestic Dates Produced or Packed in Riverside County, CA; Modification of the Qualification Requirements for Approved Manufacturers of Date Products Agricultural Marketing Service, USDA. ACTION: Final rule. AGENCY: SUMMARY: This rule modifies the requirements for approved manufacturers of date products under the marketing order regulating the handling of domestic dates produced or packed in Riverside County, California. The marketing order is administered locally by the California Date Administrative Committee (committee). The committee’s approved product manufacturer program helps assure that only high quality whole and pitted dates are shipped within the United States and exported to Canada. This rule clarifies the application procedures and qualification requirements for an approved manufacturer of date products. This rule also specifies that a regulated date handler must be in compliance with the marketing order to be an approved manufacturer of date products. These modifications will help safeguard the integrity of the approved date product manufacturer program, as well as the quality of whole and pitted dates marketed both domestically and in Canada. EFFECTIVE DATE: This final rule becomes effective March 9, 2005. FOR FURTHER INFORMATION CONTACT: Terry Vawter, 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, Frm 00007 Fmt 4700 DC 20250–0237; telephone: (202) 720– 2491, Fax: (202) 720–8938, or E-mail: Jay.Guerber@usda.gov. This final rule is issued under Marketing Agreement and Order No. 987, as amended (7 CFR part 987), regulating the handling of domestic dates produced or packed in Riverside County, 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 final 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. SUPPLEMENTARY INFORMATION: 7 CFR Part 987 PO 00000 11117 Sfmt 4700 Summary of the Rule Change This final rule modifies the requirements for approved manufacturers of date products in § 987.157 of the order’s administrative rules and regulations. This rule clarifies the application procedures and qualification requirements for approved manufacturers of date products. This rule also specifies that, to be an approved manufacturer of date products, a regulated date handler must be in compliance with the order. These modifications will help safeguard the integrity of the approved date product manufacturer program, as well as the quality of whole and pitted dates marketed both domestically and in E:\FR\FM\08MRR1.SGM 08MRR1 11118 Federal Register / Vol. 70, No. 44 / Tuesday, March 8, 2005 / Rules and Regulations Canada. These changes were recommended unanimously by the committee at a meeting on April 23, 2004. Authority for Approved Manufacturers Section 987.57 of the order provides the authority for the approved date product manufacturer program. Section 987.57 states in part: ‘‘Diversion of dates pursuant to § 987.55 or § 987.56 shall be accomplished only by such persons (which may include handlers) as are approved manufacturers or feeders * * * The application and approval shall be in accordance with such rules, regulations and safeguards as may be prescribed pursuant to § 987.59.’’ Further, § 987.59 states: ‘‘The Committee may prescribe, with the approval of the Secretary, such rules, regulations and safeguards as are necessary to prevent dates covered by §§ 987.55 and 987.56 from interfering with the objectives of this part.’’ Finally, § 987.157 of the order’s administrative rules and regulations prescribes the application procedure and qualification requirements to become an approved manufacturer of date products. Background Information and Committee Action Taken At its public meeting on April 23, 2004, the committee unanimously recommended modifying the application procedures and qualification requirements for approved manufacturers of date products. The committee’s approved date product manufacturer program helps assure that high quality whole and pitted dates are marketed in the United States and Canada. Whole and pitted dates shipped within the United States and to Canada must at least meet the requirements of U.S. Grade B, whereas dates for manufacture into products must meet the lower quality requirements of U.S. Grade C. Only firms on the committee’s list of approved date product manufacturers are allowed to receive dates for conversion into date products. These entities agree to alter the form and appearance of the lower quality dates so they cannot be marketed in competition with higher quality whole and pitted dates in the United States and Canada. Based on the committee’s recommendation, the procedures used to qualify an applicant as an approved manufacturer of date products have been revised in this final rule to help ensure that each applicant is treated similarly, and that an approved date product manufacturer remains qualified VerDate jul<14>2003 11:16 Mar 07, 2005 Jkt 205001 to receive dates for conversion into products. Within the regulated production area (Riverside County, California), all approved manufacturers are also date handlers regulated under the order. Conversely, approved manufacturers outside the regulated area are not regulated date handlers. This rule also helps safeguard the integrity of the approved manufacturer program by requiring that regulated handlers be in compliance with the order—including the assessment and reporting requirements of the order—for approval as date product manufacturers. Once approved as a date product manufacturer, handlers must stay in compliance with the requirements of the order to remain on the committee’s approved date product manufacturers’ list. Prior to revoking a handler’s approved manufacturer status for noncompliance with the requirements of the order, the committee staff will consult with USDA. If, after consultation with USDA and notification of the handler, the approved product manufacturer continues to be in noncompliance with order requirements, the committee staff will announce the revocation of such handler’s approved manufacturer status by mailing or faxing a revised approved manufacturer list to all date handlers in the regulated area. Further, the approved manufacturers will be required to maintain accurate records regarding date product information and provide these records to the committee staff. This will enable the committee to verify that each approved date product manufacturer is operating as required. To ensure that approved manufacturers continue to be qualified, each will be required to reapply for approved manufacturer status once a year. The procedures for reapplication are the same as the procedures used for initial approval as a date product manufacturer. 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 PO 00000 Frm 00008 Fmt 4700 Sfmt 4700 small entities acting on their own behalf. Thus, both statutes have small entity orientation and compatibility. Industry Profile There are approximately 124 date producers in the production area and 10 handlers subject to regulation under the order. The Small Business Administration (SBA) (13 CFR 121.201) defines small agricultural producers as those with annual receipts of less than $750,000, and small agricultural service firms as those with annual receipts of less than $5,000,000. The committee estimates approximately 7 producers (approximately 6 percent) had receipts over $750,000 and that 4 handlers (40 percent) shipped over $5,000,000 worth of California dates. Based on this information, a majority of handlers and producers of California dates may be classified as small entities. Within the regulated production area all approved manufacturers are also date handlers regulated under the order. Conversely, approved manufacturers outside the regulated area are not regulated date handlers. Currently, there are three approved manufacturers outside the regulated area. We do not have information on their size, but believe most of them are small entities. Summary of Rule Change This final rule modifies the requirements for approved date product manufactures under § 987.157 of the order’s administrative rules and regulations. This rule clarifies both the application procedures and qualification requirements for approval as a manufacturer of date products. This final rule also requires an applicant who is a date handler regulated under the order to be in compliance with the order to continue to manufacture date products. These changes help safeguard the integrity of the approved manufacturer program and help assure the quality of whole and pitted dates marketed in the United States and Canada. These changes were recommended unanimously by the committee at a meeting on April 23, 2004. Impact of Regulation At the meeting, the committee discussed the impact of this change on handlers and approved manufacturers. By clarifying the date product manufacturer application procedure and qualification requirements, the modifications help ensure that applicants are treated similarly. In addition, the committee believes the modifications will help safeguard the E:\FR\FM\08MRR1.SGM 08MRR1 Federal Register / Vol. 70, No. 44 / Tuesday, March 8, 2005 / Rules and Regulations integrity of the approved manufacturer program by requiring that participating handlers are in compliance with the order. As such, the committee believes that the impact of this rule on handlers and date product manufactures will be negligible and greatly outweighed by the improvement in the overall integrity and efficiency of the program. Furthermore, the benefits of this rule are not expected to be disproportionately greater or less for small entities than for large entities. Alternatives Considered The committee discussed alternatives to these changes, including not making any changes to the requirements to become an approved date product manufacturer. The committee, however, decided that lack of action on its part could negatively impact the effectiveness of the safeguards that help ensure the quality of whole and pitted dates marketed in the United States and Canada. A second alternative debated by the committee would have required an applicant to pay all the costs for repeated inspections to verify that the applicant can, indeed, meet the requirements of an approved manufacturer. There was some discussion about whether the committee should continue to pay for the committee staff’s time for verification inspections beyond the initial visit. There is no authority to charge applicants for verification inspections under this program, thus this alternative was deemed unacceptable. Recordkeeping and Reporting Requirements These changes clarify the application procedures and qualification requirements to become or maintain an approved manufacturer status of date products under the date marketing order. Accordingly, this final rule does not impose any additional reporting or recordkeeping requirements on small or large California date handlers. This information collection burden has been approved by the Office of Management and Budget (OMB) under OMB No. 0581–0178. 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. As noted in the initial regulatory flexibility analysis, USDA has not identified any relevant Federal rules that duplicate, overlap, or conflict with this final rule. In addition, the committee’s meeting was widely publicized throughout the VerDate jul<14>2003 11:16 Mar 07, 2005 Jkt 205001 California date industry and all interested persons were invited to attend the meeting and participate in committee deliberations on all issues. Like all committee meetings, the April 23, 2004, meeting was a public meeting and all entities, both large and small, were able to express views on this issue. A proposed rule concerning this action was published in the Federal Register on January 24, 2005 (70 FR 3315). Copies of the rule were provided to all committee members and date handlers. The rule was also made available through the Internet by USDA and the Office of the Federal Register. A 15-day comment period ending on February 3, 2005, was provided to allow interested persons to responds to the proposal. No comments were received. Accordingly, no changes will be made to the rule as proposed. A small business guide on complying with fruit, vegetable, and specialty crop marketing agreements and orders may be viewed at: https://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 matter 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. It is further found that good cause exists for not postponing the effective date of this rule until 30 days after publication in the Federal Register (5 U.S.C. 553). Handlers are already shipping dates from the 2004–2005 crop. This action clarifies the application procedures and qualification requirements for approved manufacturers of date products. Further, handlers and approved manufacturers are aware of this rule, which was recommended at a public meeting. Also, a 15-day comment period was provided for in the proposed rule and no comments were received. List of Subjects in 7 CFR Part 987 Dates, Marketing agreements, Reporting and recordkeeping requirements. For the reasons set forth in the preamble, 7 CFR part 987 is amended as follows: I PO 00000 Frm 00009 Fmt 4700 Sfmt 4700 11119 PART 987—DOMESTIC DATES PRODUCED OR PACKED IN RIVERSIDE COUNTY, CALIFORNIA 1. The authority citation for 7 CFR part 987 continues to read as follows: I Authority: 7 U.S.C. 601–674. 2. Section 987.157 is revised to read as follows: I § 987.157 Approved date product manufacturers. Any person, including date handlers, with facilities for converting dates into products may apply to the committee, by filing CDAC Form No. 3, for listing as an approved date product manufacturer. (a) The applicant shall indicate on such form: The products he/she intends to make; the quantity of dates he/she may use; the location of his/her facilities; and agree that all dates obtained for manufacturing into products shall be used for that purpose, none shall be resold or disposed of as whole or pitted dates. (b) As a condition to become an approved date product manufacturer: Each applicant is subject to an inspection of his/her manufacturing plant to verify that proper equipment to convert dates into products is in place and that the plant meets appropriate sanitation requirements; the applicant also shall agree to file a report of the disposition of each lot of dates on the Committee’s CDAC Form No. 8 within 24 hours of the transaction, and to file an annual usage and inventory report on CDAC Form No. 4 by October 10 of each year; and an applicant who is also a handler under the order shall be in compliance with the order, including the assessment payment and reporting requirements. (c) The committee shall approve each such application on the basis of information furnished or its own investigation, and may revoke any approval for cause. The name and address of all approved manufacturers shall be placed on a list and made available to each date handler in Riverside County. (d) If an application is disapproved, the committee shall notify the applicant in writing of the reasons for disapproval, and allow the applicant an opportunity to respond to the disapproval. When the applicant has complied with all the qualification requirements to become an approved manufacturer, the committee shall notify the applicant in writing of such approval. The applicant’s name shall be added to the list of approved manufacturers, which shall be made E:\FR\FM\08MRR1.SGM 08MRR1 11120 Federal Register / Vol. 70, No. 44 / Tuesday, March 8, 2005 / Rules and Regulations available to each date handler in Riverside County. (e) Each approved manufacturer of date products is required to renew their approved manufacturer status with the committee by submitting an updated CDAC Form No. 3 at the end of a crop year, but no later than October 10 of the new crop year. In addition, the approved manufacturer must continue to meet the other approved manufacturer qualification requirements. (f) In the event an approved date product manufacturer who is also a regulated date handler within the area of production does not remain in compliance with the order, or fails or refuses to submit reports or to pay assessments required by the committee, such date product manufacturer shall become ineligible to continue as an approved date product manufacturer. Prior to making a determination to remove a date product manufacturer from the approved date product manufacturer list, the committee shall notify such manufacturer in writing of its intention and the reasons for removal. The committee shall allow the date product manufacturer an opportunity to respond. In the event that a date product manufacturer’s name has been removed from the list of approved date product manufacturers, a new application must be submitted to the committee and the applicant must await approval. Dated: March 2, 2005. Kenneth C. Clayton, Acting Administrator, Agricultural Marketing Service. [FR Doc. 05–4448 Filed 3–7–05; 8:45 am] BILLING CODE 3410–02–P DEPARTMENT OF HEALTH AND HUMAN SERVICES List of Subjects in 21 CFR Part 510 Food and Drug Administration 21 CFR Part 510 New Animal Drugs; Change of Sponsor’s Address AGENCY: Food and Drug Administration, HHS. ACTION: Final rule. SUMMARY: The Food and Drug Administration (FDA) is amending the animal drug regulations to reflect a change of sponsor’s address for Wellmark International. DATES: This rule is effective March 8, 2005. FOR FURTHER INFORMATION CONTACT: David R. Newkirk, Center for Veterinary Medicine (HFV–100), Food and Drug Administration, 7500 Standish Pl., Rockville, MD 20855, 301–827–6967, email: david.newkirk@fda.gov. SUPPLEMENTARY INFORMATION: Wellmark International, 1100 East Woodfield Rd., suite 500, Schaumburg, IL 60173 has informed FDA of a change of address to 1501 East Woodfield Rd., suite 200 West, Schaumburg, IL 60173. * * * Wellmark International, 1501 East Woodfield Rd., suite 200 West, Schaumburg, IL 60173 * * Administrative practice and procedure, Animal drugs, Labeling, Reporting and recordkeeping requirements. I Therefore, under the Federal Food, Drug, and Cosmetic Act and under authority delegated to the Commissioner of Food and Drugs and redelegated to the Center for Veterinary Medicine, 21 CFR part 510 is amended as follows: PART 510—NEW ANIMAL DRUGS 1. The authority citation for 21 CFR part 510 continues to read as follows: I Authority: 21 U.S.C. 321, 331, 351, 352, 353, 360b, 371, 379e. 2. Section 510.600 is amended in the table in paragraph (c)(1) by revising the entry for ‘‘Wellmark International’’; and in the table in paragraph (c)(2) by revising the entry for ‘‘011536’’ to read as follows: I § 510.600 Names, addresses, and drug labeler codes of sponsors of approved applications. * * * (c) * * * (1) * * * Drug labeler code Firm name and address * Accordingly, the agency is amending the regulations in 21 CFR 510.600(c) to reflect the change. This rule does not meet the definition of ‘‘rule’’ in 5 U.S.C. 804(3)(A) because it is a rule of ‘‘particular applicability.’’ Therefore, it is not subject to the congressional review requirements in 5 U.S.C. 801–808. * * 011536 * * (2) * * * Drug labeler code * Firm name and address * * 011536 * VerDate jul<14>2003 11:16 Mar 07, 2005 Jkt 205001 PO 00000 Frm 00010 * * Wellmark International, 1501 East Woodfield Rd., suite 200 West, Schaumburg, IL 60173 * Fmt 4700 * Sfmt 4700 * * E:\FR\FM\08MRR1.SGM 08MRR1 * *

Agencies

[Federal Register Volume 70, Number 44 (Tuesday, March 8, 2005)]
[Rules and Regulations]
[Pages 11117-11120]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-4448]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 987

[Docket No. FV04-987-1 FR]


Domestic Dates Produced or Packed in Riverside County, CA; 
Modification of the Qualification Requirements for Approved 
Manufacturers of Date Products

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This rule modifies the requirements for approved manufacturers 
of date products under the marketing order regulating the handling of 
domestic dates produced or packed in Riverside County, California. The 
marketing order is administered locally by the California Date 
Administrative Committee (committee). The committee's approved product 
manufacturer program helps assure that only high quality whole and 
pitted dates are shipped within the United States and exported to 
Canada. This rule clarifies the application procedures and 
qualification requirements for an approved manufacturer of date 
products. This rule also specifies that a regulated date handler must 
be in compliance with the marketing order to be an approved 
manufacturer of date products. These modifications will help safeguard 
the integrity of the approved date product manufacturer program, as 
well as the quality of whole and pitted dates marketed both 
domestically and in Canada.

EFFECTIVE DATE: This final rule becomes effective March 9, 2005.

FOR FURTHER INFORMATION CONTACT: Terry Vawter, 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 final rule is issued under Marketing 
Agreement and Order No. 987, as amended (7 CFR part 987), regulating 
the handling of domestic dates produced or packed in Riverside County, 
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 final 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.

Summary of the Rule Change

    This final rule modifies the requirements for approved 
manufacturers of date products in Sec.  987.157 of the order's 
administrative rules and regulations. This rule clarifies the 
application procedures and qualification requirements for approved 
manufacturers of date products. This rule also specifies that, to be an 
approved manufacturer of date products, a regulated date handler must 
be in compliance with the order. These modifications will help 
safeguard the integrity of the approved date product manufacturer 
program, as well as the quality of whole and pitted dates marketed both 
domestically and in

[[Page 11118]]

Canada. These changes were recommended unanimously by the committee at 
a meeting on April 23, 2004.

Authority for Approved Manufacturers

    Section 987.57 of the order provides the authority for the approved 
date product manufacturer program. Section 987.57 states in part: 
``Diversion of dates pursuant to Sec.  987.55 or Sec.  987.56 shall be 
accomplished only by such persons (which may include handlers) as are 
approved manufacturers or feeders * * * The application and approval 
shall be in accordance with such rules, regulations and safeguards as 
may be prescribed pursuant to Sec.  987.59.'' Further, Sec.  987.59 
states: ``The Committee may prescribe, with the approval of the 
Secretary, such rules, regulations and safeguards as are necessary to 
prevent dates covered by Sec. Sec.  987.55 and 987.56 from interfering 
with the objectives of this part.''
    Finally, Sec.  987.157 of the order's administrative rules and 
regulations prescribes the application procedure and qualification 
requirements to become an approved manufacturer of date products.

Background Information and Committee Action Taken

    At its public meeting on April 23, 2004, the committee unanimously 
recommended modifying the application procedures and qualification 
requirements for approved manufacturers of date products. The 
committee's approved date product manufacturer program helps assure 
that high quality whole and pitted dates are marketed in the United 
States and Canada. Whole and pitted dates shipped within the United 
States and to Canada must at least meet the requirements of U.S. Grade 
B, whereas dates for manufacture into products must meet the lower 
quality requirements of U.S. Grade C.
    Only firms on the committee's list of approved date product 
manufacturers are allowed to receive dates for conversion into date 
products. These entities agree to alter the form and appearance of the 
lower quality dates so they cannot be marketed in competition with 
higher quality whole and pitted dates in the United States and Canada.
    Based on the committee's recommendation, the procedures used to 
qualify an applicant as an approved manufacturer of date products have 
been revised in this final rule to help ensure that each applicant is 
treated similarly, and that an approved date product manufacturer 
remains qualified to receive dates for conversion into products.
    Within the regulated production area (Riverside County, 
California), all approved manufacturers are also date handlers 
regulated under the order. Conversely, approved manufacturers outside 
the regulated area are not regulated date handlers.
    This rule also helps safeguard the integrity of the approved 
manufacturer program by requiring that regulated handlers be in 
compliance with the order--including the assessment and reporting 
requirements of the order--for approval as date product manufacturers. 
Once approved as a date product manufacturer, handlers must stay in 
compliance with the requirements of the order to remain on the 
committee's approved date product manufacturers' list.
    Prior to revoking a handler's approved manufacturer status for 
noncompliance with the requirements of the order, the committee staff 
will consult with USDA. If, after consultation with USDA and 
notification of the handler, the approved product manufacturer 
continues to be in noncompliance with order requirements, the committee 
staff will announce the revocation of such handler's approved 
manufacturer status by mailing or faxing a revised approved 
manufacturer list to all date handlers in the regulated area.
    Further, the approved manufacturers will be required to maintain 
accurate records regarding date product information and provide these 
records to the committee staff. This will enable the committee to 
verify that each approved date product manufacturer is operating as 
required. To ensure that approved manufacturers continue to be 
qualified, each will be required to reapply for approved manufacturer 
status once a year. The procedures for reapplication are the same as 
the procedures used for initial approval as a date product 
manufacturer.

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.

Industry Profile

    There are approximately 124 date producers in the production area 
and 10 handlers subject to regulation under the order. The Small 
Business Administration (SBA) (13 CFR 121.201) defines small 
agricultural producers as those with annual receipts of less than 
$750,000, and small agricultural service firms as those with annual 
receipts of less than $5,000,000.
    The committee estimates approximately 7 producers (approximately 6 
percent) had receipts over $750,000 and that 4 handlers (40 percent) 
shipped over $5,000,000 worth of California dates. Based on this 
information, a majority of handlers and producers of California dates 
may be classified as small entities.
    Within the regulated production area all approved manufacturers are 
also date handlers regulated under the order. Conversely, approved 
manufacturers outside the regulated area are not regulated date 
handlers. Currently, there are three approved manufacturers outside the 
regulated area. We do not have information on their size, but believe 
most of them are small entities.

Summary of Rule Change

    This final rule modifies the requirements for approved date product 
manufactures under Sec.  987.157 of the order's administrative rules 
and regulations. This rule clarifies both the application procedures 
and qualification requirements for approval as a manufacturer of date 
products. This final rule also requires an applicant who is a date 
handler regulated under the order to be in compliance with the order to 
continue to manufacture date products. These changes help safeguard the 
integrity of the approved manufacturer program and help assure the 
quality of whole and pitted dates marketed in the United States and 
Canada. These changes were recommended unanimously by the committee at 
a meeting on April 23, 2004.

Impact of Regulation

    At the meeting, the committee discussed the impact of this change 
on handlers and approved manufacturers. By clarifying the date product 
manufacturer application procedure and qualification requirements, the 
modifications help ensure that applicants are treated similarly. In 
addition, the committee believes the modifications will help safeguard 
the

[[Page 11119]]

integrity of the approved manufacturer program by requiring that 
participating handlers are in compliance with the order. As such, the 
committee believes that the impact of this rule on handlers and date 
product manufactures will be negligible and greatly outweighed by the 
improvement in the overall integrity and efficiency of the program.
    Furthermore, the benefits of this rule are not expected to be 
disproportionately greater or less for small entities than for large 
entities.

Alternatives Considered

    The committee discussed alternatives to these changes, including 
not making any changes to the requirements to become an approved date 
product manufacturer. The committee, however, decided that lack of 
action on its part could negatively impact the effectiveness of the 
safeguards that help ensure the quality of whole and pitted dates 
marketed in the United States and Canada.
    A second alternative debated by the committee would have required 
an applicant to pay all the costs for repeated inspections to verify 
that the applicant can, indeed, meet the requirements of an approved 
manufacturer. There was some discussion about whether the committee 
should continue to pay for the committee staff's time for verification 
inspections beyond the initial visit. There is no authority to charge 
applicants for verification inspections under this program, thus this 
alternative was deemed unacceptable.

Recordkeeping and Reporting Requirements

    These changes clarify the application procedures and qualification 
requirements to become or maintain an approved manufacturer status of 
date products under the date marketing order. Accordingly, this final 
rule does not impose any additional reporting or recordkeeping 
requirements on small or large California date handlers. This 
information collection burden has been approved by the Office of 
Management and Budget (OMB) under OMB No. 0581-0178. 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.
    As noted in the initial regulatory flexibility analysis, USDA has 
not identified any relevant Federal rules that duplicate, overlap, or 
conflict with this final rule.
    In addition, the committee's meeting was widely publicized 
throughout the California date industry and all interested persons were 
invited to attend the meeting and participate in committee 
deliberations on all issues. Like all committee meetings, the April 23, 
2004, meeting was a public meeting and all entities, both large and 
small, were able to express views on this issue.
    A proposed rule concerning this action was published in the Federal 
Register on January 24, 2005 (70 FR 3315). Copies of the rule were 
provided to all committee members and date handlers. The rule was also 
made available through the Internet by USDA and the Office of the 
Federal Register. A 15-day comment period ending on February 3, 2005, 
was provided to allow interested persons to responds to the proposal. 
No comments were received.
    Accordingly, no changes will be made to the rule as proposed.
    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 matter 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.
    It is further found that good cause exists for not postponing the 
effective date of this rule until 30 days after publication in the 
Federal Register (5 U.S.C. 553). Handlers are already shipping dates 
from the 2004-2005 crop. This action clarifies the application 
procedures and qualification requirements for approved manufacturers of 
date products. Further, handlers and approved manufacturers are aware 
of this rule, which was recommended at a public meeting. Also, a 15-day 
comment period was provided for in the proposed rule and no comments 
were received.

List of Subjects in 7 CFR Part 987

    Dates, Marketing agreements, Reporting and recordkeeping 
requirements.

0
For the reasons set forth in the preamble, 7 CFR part 987 is amended as 
follows:

PART 987--DOMESTIC DATES PRODUCED OR PACKED IN RIVERSIDE COUNTY, 
CALIFORNIA

0
1. The authority citation for 7 CFR part 987 continues to read as 
follows:

    Authority: 7 U.S.C. 601-674.


0
2. Section 987.157 is revised to read as follows:


Sec.  987.157  Approved date product manufacturers.

    Any person, including date handlers, with facilities for converting 
dates into products may apply to the committee, by filing CDAC Form No. 
3, for listing as an approved date product manufacturer.
    (a) The applicant shall indicate on such form: The products he/she 
intends to make; the quantity of dates he/she may use; the location of 
his/her facilities; and agree that all dates obtained for manufacturing 
into products shall be used for that purpose, none shall be resold or 
disposed of as whole or pitted dates.
    (b) As a condition to become an approved date product manufacturer: 
Each applicant is subject to an inspection of his/her manufacturing 
plant to verify that proper equipment to convert dates into products is 
in place and that the plant meets appropriate sanitation requirements; 
the applicant also shall agree to file a report of the disposition of 
each lot of dates on the Committee's CDAC Form No. 8 within 24 hours of 
the transaction, and to file an annual usage and inventory report on 
CDAC Form No. 4 by October 10 of each year; and an applicant who is 
also a handler under the order shall be in compliance with the order, 
including the assessment payment and reporting requirements.
    (c) The committee shall approve each such application on the basis 
of information furnished or its own investigation, and may revoke any 
approval for cause. The name and address of all approved manufacturers 
shall be placed on a list and made available to each date handler in 
Riverside County.
    (d) If an application is disapproved, the committee shall notify 
the applicant in writing of the reasons for disapproval, and allow the 
applicant an opportunity to respond to the disapproval. When the 
applicant has complied with all the qualification requirements to 
become an approved manufacturer, the committee shall notify the 
applicant in writing of such approval. The applicant's name shall be 
added to the list of approved manufacturers, which shall be made

[[Page 11120]]

available to each date handler in Riverside County.
    (e) Each approved manufacturer of date products is required to 
renew their approved manufacturer status with the committee by 
submitting an updated CDAC Form No. 3 at the end of a crop year, but no 
later than October 10 of the new crop year. In addition, the approved 
manufacturer must continue to meet the other approved manufacturer 
qualification requirements.
    (f) In the event an approved date product manufacturer who is also 
a regulated date handler within the area of production does not remain 
in compliance with the order, or fails or refuses to submit reports or 
to pay assessments required by the committee, such date product 
manufacturer shall become ineligible to continue as an approved date 
product manufacturer. Prior to making a determination to remove a date 
product manufacturer from the approved date product manufacturer list, 
the committee shall notify such manufacturer in writing of its 
intention and the reasons for removal. The committee shall allow the 
date product manufacturer an opportunity to respond. In the event that 
a date product manufacturer's name has been removed from the list of 
approved date product manufacturers, a new application must be 
submitted to the committee and the applicant must await approval.

    Dated: March 2, 2005.
Kenneth C. Clayton,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 05-4448 Filed 3-7-05; 8:45 am]
BILLING CODE 3410-02-P
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