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contains regulatory documents having general

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are keyed to and codified in the Code of

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Rules and Regulations Federal Register

60947

Vol. 69, No. 198

Thursday, October 14, 2004

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 987 

[Docket No. FV04–987–2 FR] 

Domestic Dates Produced or Packed in 

Riverside County, CA; Increased 

Assessment Rate

AGENCY: Agricultural Marketing Service, 

USDA.

ACTION: Final rule.

SUMMARY: This rule increases the 

assessment rate established for the 

California Date Administrative 

Committee (committee) for the 2004–05 

and subsequent crop years from $0.75 to 

$0.85 per hundredweight of dates 

handled. The committee locally 

administers the marketing order which 

regulates the handling of dates 

produced or packed in Riverside 

County, California. Authorization to 

assess date handlers enables the 

committee to incur expenses that are 

reasonable and necessary to administer 

the program. The committee 

recommended increasing the assessment 

rate because additional revenues are 

needed to fund program operations. The 

crop year begins October 1 and ends 

September 30. The assessment rate will 

remain in effect indefinitely unless 

modified, suspended, or terminated.

DATES: Effective Date: October 15, 2004.

FOR FURTHER INFORMATION CONTACT: Toni 

Sasselli, Program Analyst, California 

Marketing Field Office, Fruit and 

Vegetable Programs, AMS, USDA, 2202 

Monterey St., suite 102B, Fresno, CA 

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 

No. 127 and Marketing Order No. 987, 

both 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 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 date 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 dates 

beginning on October 1, 2004, 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 increases the assessment 

rate established for the committee for 

the 2004–05 and subsequent crop years 

from $0.75 to $0.85 per hundredweight 

of assessable dates handled. 

The California date 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 

producer-handlers of California dates in 

the production area and are familiar 

with the committee’s needs and with 

the costs for goods and services in their 

local area. As such, they are in a 

position to formulate an appropriate 

budget and assessment rate. The 

assessment rate is formulated and 

discussed at a public meeting, and all 

directly affected persons have an 

opportunity to participate in the 

deliberations and provide input. 

For the 2003–04 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 30, 2004, 

and unanimously recommended 2004–

05 crop year expenditures of $223,000 

and an assessment rate of $0.85 per 

hundredweight of dates handled. In 

comparison, last year’s budgeted 

expenditures were $225,365. The 

recommended assessment rate of $0.85 

is $0.10 higher than the rate currently in 

effect. The increase in the assessment 

rate is needed to fund the committee’s 

current budget, and maintain its 

financial operating reserve at about 

$36,000, a level which the committee 

deems satisfactory. 

The budgeted administrative expenses 

for the 2004–05 crop year include 

$90,427 for labor and office expenses. 

This compares to $123,710 in budgeted 

expenses in 2003–04. In addition, 

$112,499 has been budgeted for 

marketing and promotion under the 

program for the 2004–05 crop year. This 

compares to $101,655 in budgeted 

marketing and promotion expenses for 

the 2003–04 crop year. A total of 

60948 Federal Register / Vol. 69, No. 198 / Thursday, October 14, 2004 / Rules and Regulations 

$20,074 is budgeted as a contingency 

reserve for 2004–05. A contingency 

reserve of $10,000 was included in the 

budget for 2003–04. 

The committee administers a surplus 

account wherein the proceeds from 

sales of cull dates are deposited for 

subsequent use by the committee in 

covering the surplus pool share of the 

committee’s expenses. Handlers may 

also dispose of cull dates of their own 

production within their own livestockfeeding operation; otherwise, such cull 

dates must be shipped or delivered to 

the committee for sale to non-human 

food product outlets. For the 2004–05 

crop year, the committee voted to use 

$2,000 from the surplus account to help 

fund the committee’s budget of 

$223,000. 

The assessment rate of $0.85 per 

hundredweight of assessable dates was 

derived by applying the following 

formula where:

A = Cull Surplus Fund ($2,000); 

B = 2004–05 expected shipments 

(260,000 hundredweight); 

C = 2004–05 expenses ($223,000); 

(C¥A) B = $0.85 per hundredweight.

Estimated shipments should provide 

$221,000 in assessment income. Income 

derived from handler assessments and 

$2,000 from the cull surplus fund would 

be adequate to cover budgeted expenses. 

Funds in the financial operating reserve 

are expected to total about $35,700 by 

September 30, 2005, and therefore will 

be less than the maximum permitted by 

the order (not to exceed 50 percent of 

the average of expenses incurred during 

the most recent five preceding crop 

years as required under § 987.72(c)).

The assessment rate established in 

this rule 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 2004–05 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 124 

producers of dates in the production 

area and approximately 10 handlers 

subject to regulation under the 

marketing order. The Small Business 

Administration (13 CFR 121.201) 

defines small agricultural service firms 

as those having annual receipts of less 

than $5,000,000, and defines small 

agricultural producers as those having 

annual receipts of less than $750,000. 

An industry profile shows that four of 

the 10 handlers (40 percent) shipped 

over $5,000,000 of dates and could be 

considered large handlers by the Small 

Business Administration. Six of the 10 

handlers (60 percent) shipped under 

$5,000,000 of dates and could be 

considered small handlers. An 

estimated 7 producers, or less than 6 

percent, of the 124 total producers, 

would be considered large producers 

with annual incomes over $750,000. 

The majority of handlers and producers 

of California dates may be classified as 

small entities. 

This rule increases the assessment 

rate established for the committee and 

collected from handlers for the 2004–05 

and subsequent crop years from $0.75 to 

$0.85 per hundredweight of assessable 

dates handled. The committee 

unanimously recommended 2004–05 

expenditures of $223,000 and the $0.85 

per hundredweight assessment rate at 

their meeting on June 30, 2004. The 

assessment rate of $0.85 is $0.10 higher 

than the rate currently in effect. The 

quantity of assessable dates for the 

2004–05 crop year is estimated at 

260,000 hundredweight. Thus, the $0.85 

per hundredweight rate should provide 

$221,000 in assessment income. This, 

along with approximately $2,000 from 

the surplus account, would be adequate 

to meet the committee’s 2004–05 crop 

year expenses. 

The budgeted administrative expenses 

for the 2004–05 crop year include 

$90,427 for labor and office expenses. 

This compares to $123,710 in budgeted 

expenses in 2003–04. In addition, 

$112,499 has been budgeted for 

marketing and promotion under the 

marketing order for the 2004–05 crop 

year. This compares to $101,655 in 

budgeted marketing and promotion 

expenses for the 2003–04 crop year. A 

total of $20,074 is budgeted as a 

contingency reserve. A contingency 

reserve totaling $10,000 was budgeted 

last year.

The committee administers a surplus 

account wherein the proceeds from 

sales of cull dates are deposited for 

subsequent use by the committee in 

covering the surplus pool share of the 

committee’s expenses. For the 2004–05 

crop year, the committee voted to use 

$2,000 from the surplus account to help 

fund the committee’s budget of 

$223,000. 

The committee reviewed and 

unanimously recommended 2004–05 

expenditures of $223,000 which include 

marketing and promotion programs. 

Prior to arriving at this budget, the 

committee considered alternative 

expenditure levels and alternative 

assessment levels. The committee 

agreed that the increased assessment 

rate was appropriate to cover expenses 

and maintain its financial operating 

reserve at a satisfactory level ($35,700). 

The assessment rate of $0.85 per 

hundredweight of assessable dates was 

then determined by applying the 

following formula where:

A = Cull Surplus Fund ($2,000); 

B = 2004–05 expected shipments 

(260,000 hundredweight); 

C = 2004–05 expenses ($223,000); 

(C ¥ A) B = $0.85 per hundredweight.

Estimated shipments should provide 

$221,000 in assessment income. Income 

derived from handler assessments and 

$2,000 from the cull surplus fund would 

be adequate to cover budgeted expenses. 

Funds in the financial operating reserve 

are expected to total about $35,700 by 

September 30, 2005, and therefore will 

be less than the maximum permitted by 

the order (not to exceed 50 percent of 

the average of expenses incurred during 

the most recent five preceding crop 

years as required under § 987.72(c)). 

A review of historical information and 

preliminary information pertaining to 

the upcoming crop year indicates that 

the grower price for the 2004–05 season 

could range between $40 and $120 per 

hundredweight of dates. Therefore, the 

estimated assessment revenue for the 

Federal Register / Vol. 69, No. 198 / Thursday, October 14, 2004 / Rules and Regulations 60949

2004–05 crop year as a percentage of 

total grower revenue could range 

between .7 and 2.1 percent. 

This action increases the assessment 

obligation imposed on handlers under 

the Federal marketing order. While 

assessments impose some additional 

costs on handlers, the costs are minimal 

and uniform on all handlers. Some of 

the additional costs may be passed on 

to producers. However, these costs 

would be offset by the benefits derived 

by the operation of the marketing order. 

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 June 

30, 2004, meeting was a public meeting 

and all entities, both large and small, 

were able to express views on this issue. 

This rule imposes no additional 

reporting or recordkeeping requirements 

on either small or large California date 

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. 

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 August 16, 2004 (69 FR 

50339). Copies of the proposed rule 

were also mailed or sent via facsimile to 

all date 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 September 15, 2004, was 

provided for interested persons to 

respond to the proposal. 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 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 also found 

and determined that good cause exists 

for not postponing the effective date of 

the rule until 30 days after publication 

in the Federal Register because the 

2004–05 crop year begins October 1, 

2004, and the marketing order requires 

that the rate of assessment for each crop 

year apply to assessable dates handled 

during such period. The committee 

needs to have sufficient funds to pay its 

expenses which are incurred on a 

continuous basis. 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, 

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:

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:

Authority: 7 U.S.C. 601–674.

■ 2. Section 987.339 is revised to read as 

follows:

§ 987.339 Assessment rate. 

On and after October 1, 2004, an 

assessment rate of $0.85 per 

hundredweight is established for 

California dates.

Dated: October 7, 2004. 

Kenneth C. Clayton, 

Associate Administrator, Agricultural 

Marketing Service.

[FR Doc. 04–23042 Filed 10–13–04; 8:45 am] 

BILLING CODE 3410–02–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. 2003–CE–56–AD; Amendment 

39–13815; AD 2004–20–10] 

RIN 2120–AA64 

Airworthiness Directives; Valentin 

GmbH & Co. Taifun 17E Sailplanes

AGENCY: Federal Aviation 

Administration (FAA), DOT.

ACTION: Final rule.

SUMMARY: The FAA adopts a new 

airworthiness directive (AD) for all 

Valentin GmbH & Co. Taifun 17E 

sailplanes. This AD requires you to do 

an operational check of the front winglocking mechanism left and right, 

inspect stop key movement, inspect 

wing and fuselage side root ribs, inspect 

the wing side shear force fittings, and 

take any corrective actions that may be 

required. This AD is the result of 

mandatory continuing airworthiness 

information (MCAI) issued by the 

airworthiness authority for Germany. 

We are issuing this AD to detect and 

correct malfunction of wing-locking 

mechanism, which could result in 

failure of the wing-locking mechanism 

disengagement. This failure could lead 

to unlocking of wing in flight and 

consequent loss of control of the 

sailplane.

DATES: This AD becomes effective on 

November 24, 2004. 

As of November 24, 2004, the Director 

of the Federal Register approved the 

incorporation by reference of certain 

publications listed in the regulation.

ADDRESSES: You may get the service 

information identified in this AD from 

KORFF + CO.KG, Dieselstrasse 5, D–

63128 Dietzenbach, Germany. 

You may view the AD docket at FAA, 

Central Region, Office of the Regional 

Counsel, Attention: Rules Docket No. 

2003–CE–56–AD, 901 Locust, Room 

506, Kansas City, Missouri 64106. Office 

hours are 8 a.m. to 4 p.m., Monday 

through Friday, except Federal holidays.

FOR FURTHER INFORMATION CONTACT:

Gregory M. Davison, Aerospace 

Engineer, Small Airplane Directorate, 

ACE–112, 901 Locust, Room 301, 

Kansas City, Missouri 64106; telephone: 

816–329–4130; facsimile: 816–329–

4090.

SUPPLEMENTARY INFORMATION: 

Discussion 

What events have caused this AD?

The Luftfahrt-Bundesamt (LBA), which 

is the airworthiness authority for 

Germany, recently notified FAA that an 

unsafe condition may exist on all 

Valentin GmbH & Co. Taifun 17E 

sailplanes. The LBA reports that during 

an investigation, an incorrect locked 

shear force fitting was found. 

What is the potential impact if FAA 

took no action? Malfunction of winglocking mechanism could result in 

failure of the wing attachment assembly. 

This failure could lead to unlocking of 

wing in flight and consequent loss of 

control of the sailplane. 

Has FAA taken any action to this 

point? We issued a proposal to amend 

part 39 of the Federal Aviation 

Regulations (14 CFR part 39) to include 

an AD that would apply to all Valentin 

GmbH & Co. Taifun 17E sailplanes. This 

proposal was published in the Federal 

Register as a notice of proposed