Raisins Produced From Grapes Grown in California; Change in Requirements for Interhandler Transfers of Raisins, 44029-44031 [07-3856]

Agencies

• Agricultural Marketing Service
• DEPARTMENT OF AGRICULTURE

[Federal Register Volume 72, Number 151 (Tuesday, August 7, 2007)]
[Rules and Regulations]
[Pages 44029-44031]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 07-3856]



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Federal Register / Vol. 72, No. 151 / Tuesday, August 7, 2007 / Rules 
and Regulations

[[Page 44029]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 989

[Docket No. AMS-FV-07-0083; FV07-989-3 IFR]


Raisins Produced From Grapes Grown in California; Change in 
Requirements for Interhandler Transfers of Raisins

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: This rule revises 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). 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 to receiving handlers. This action 
should help maintain the integrity of the order by ensuring that 
handlers only transfer acquired, free-tonnage raisins that meet 
applicable order requirements.

DATES: Effective August 1, 2007; comments received by August 22, 2007 
will be considered prior to issuance of a final rule.

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 Internet: https://
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.regulations.gov.

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.''
    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 revises 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 should help 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

[[Page 44030]]

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 
later than five calendar days following such transfer.
    Such information includes the transfer date; the names and 
addresses of the transferring parties; the variety, 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 at its April, 12, 2007, meeting that the 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 modifies 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 current RAC Form No. 6, ``Interhandler Transfer of Free-Tonnage 
Raisins'' will be 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 reporting handlers.

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 rule 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.
    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 121.601) 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, excluding receipts from any other sources.
    This rule revises 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 
should help maintain the integrity of the order.
    Section 989.173(d)(1) is modified by deleting the word ``and'' from 
paragraph (iii); by changing the period to a semi-colon and adding the 
word ``and'' to paragraph (iv); and by adding a new subparagraph (v) 
that requires handlers to certify that the raisins being transferred 
are acquired and meet all order requirements, including proper 
reporting, incoming inspection, assessments, and volume regulation, if 
applicable. 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 
requires 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 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, 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 adds 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.
    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

[[Page 44031]]

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 proposed rule.
    Further, the 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. Finally, interested persons are invited to submit comments 
on this interim final rule, including 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.
    This rule invites comments on a change to the handler reporting 
requirements currently prescribed under the California raisin marketing 
order. Any comments received will be considered prior to finalization 
of this rule.
    After consideration of all relevant materials 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) The Committee unanimously recommended this change 
at a public meeting after a recommendation by one of its subcommittees, 
and all interested parties had the opportunity to provide input; (2) 
handlers are aware of this change, which was discussed at four public 
meetings; and (3) the crop year begins August 1, 2007, and this change 
should be in place by that date.

List of Subjects in 7 CFR Part 989

    Grapes, Marketing agreements, Raisins, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 989 is 
amended as follows:

PART 989--RAISINS PRODUCED FROM GRAPES GROWN IN CALIFORNIA

0
1. The authority citation for 7 CFR part 989 continues to read as 
follows:

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

0
2. In Sec.  989.173, paragraph (d) is revised to read as follows:


Sec.  989.173  Reports.

* * * * *
    (d) Reports of interhandler transfers--(1) Free-tonnage. Any 
handler who transfers free-tonnage raisins to another handler within 
the State of California shall submit to the Committee not later than 
five calendar days following such transfer a report showing:
    (i) The date of transfer;
    (ii) The name(s) and address(es) of the handler or handlers and the 
locations of the plants;
    (iii) The varietal type of raisin, with organically produced 
raisins as specified in paragraph (g) of this section separated out, 
net weight, and condition of the raisins transferred: Provided, That, 
for the Other Seedless varietal type, handlers shall report such 
information for the different types of Other Seedless raisins;
    (iv) If packed, the inspection certificate number in the event such 
raisins have been inspected prior to such transfer and a certificate 
issued. Two copies of such report shall be forwarded to the receiving 
handler at the time the report is submitted to the Committee, on one of 
which the receiving handler shall certify to the receipt of such 
raisins and submit it to the Committee within five calendar days after 
the raisins or the copies of such report have been received by him, 
whichever is later; and
    (v) If packed, the transferring handler shall certify that such 
handler is transferring only acquired, free-tonnage raisins that meet 
all applicable marketing order requirements, including reporting, 
incoming inspection, assessments, and volume regulation.
    (2) Off-grade and other failing raisins. Any handler who transfers 
off-grade raisins or other failing raisins including off-grade raisins 
unsuccessfully reconditioned, to another handler, other than a 
processor within the State of California, shall submit to the Committee 
(on forms furnished by it) no later than Wednesday following the week 
of the transfer:
    (i) The date of transfer;
    (ii) The name and address of the receiving handler and the location 
of his plant;
    (iii) The name and address of the tenderer of each lot included in 
the transfer and the inspection certificate numbers applicable to the 
lot; and
    (iv) The varietal type, net weight, and condition of the raisins.
* * * * *

    Dated: August 2, 2007.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. 07-3856 Filed 8-3-07; 9:12 am]
BILLING CODE 3410-02-P