[Federal Register Volume 72, Number 72 (Monday, April 16, 2007)]
[Proposed Rules]
[Pages 18922-18923]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-7179]


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Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

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Federal Register / Vol. 72, No. 72 / Monday, April 16, 2007 / 
Proposed Rules

[[Page 18922]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 925

[Docket No. AMS-FV-07-0028; FV07-925-1 PR]


Grapes Grown in a Designated Area of Southeastern California; 
Change in Reporting Requirements

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This rule invites comments on a revision to the reporting 
requirements established under the California desert grape marketing 
order, which regulates the handling of grapes grown in a designated 
area of Southeastern California. The marketing order is administered 
locally by the California Desert Grape Administrative Committee (CDGAC 
or committee). This rule would require handlers to provide an annual 
report to the committee which lists the acreages devoted to grapes for 
fresh shipment, the owners and locations of the acreages, and varieties 
produced thereon that the handler will be handling during the upcoming 
season. This change would allow the committee to collect information on 
the acreage and varieties of desert grapes regulated under the 
marketing order, thus improving data collection and the efficient 
operation of the program.

DATES: Comments must be received by May 1, 2007.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposal. 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: http://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 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: Terry Vawter, 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: 
<a href="/cdn-cgi/l/email-protection#a0f4c5d2d2d98ef6c1d7d4c5d2e0d5d3c4c18ec7cfd6"><span class="__cf_email__" data-cfemail="c094a5b2b2b9ee96a1b7b4a5b280b5b3a4a1eea7afb6">[email protected]</span></a> or <a href="/cdn-cgi/l/email-protection#d19aa4a3a5ff9ab8bcbcb4bd91a4a2b5b0ffb6bea7"><span class="__cf_email__" data-cfemail="fcb7898e88d2b79591919990bc898f989dd29b938a">[email protected]</span></a>.
    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: <a href="/cdn-cgi/l/email-protection#d09ab1a9fe97a5b5a2b2b5a290a5a3b4b1feb7bfa6"><span class="__cf_email__" data-cfemail="e2a8839bcca5978790808790a297918683cc858d94">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION: This proposal is issued under Marketing 
Agreement and Order No. 925, both as amended (7 CFR part 925), 
regulating the handling of grapes grown in a designated area of 
southeastern 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 proposal 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 would change the reporting requirement under the order by 
requiring handlers to file an annual acreage survey which lists the 
acreages devoted to grapes, the locations and owners of the acreage, 
and varieties produced thereon for fresh shipment that the handler will 
be handling during the upcoming season. The form would provide 
information necessary for the committee to estimate annual production, 
determine the necessary assessment rate, and establish an annual budget 
of expenses. This change was unanimously recommended by the committee 
at a meeting on February 6, 2007.
    Section 925.60 provides authority for the committee, with the 
approval of USDA, to require handlers to furnish information to the 
committee. Currently, Sec.  925.60(a) requires handlers to file reports 
of shipments of grapes. Under Sec.  925.60(b), the committee is 
authorized, with the approval of USDA, to require handlers to furnish 
such other information as it may prescribe and may be necessary to 
enable the committee to perform its duties under the order.
    The acreage survey is currently an approved form authorized for use 
by the committee. The form was initially included so that the committee 
could, at some future time, recommend requiring handlers to use the 
form if it was determined that aggregating information on grape acreage 
would provide a benefit to the industry.
    The committee met on February 6, 2007, and discussed the grape 
acreage survey. At this time, the committee believes the report would 
provide valuable information and unanimously recommended that it be a 
mandatory report, such as those authorized under Sec.  925.60. This 
change is intended to enhance the efficient operation of the program by 
permitting the committee to collect production data, which, in turn, 
would allow them to have more accurate information for establishing a 
crop estimate, determining an assessment rate, and developing an annual 
budget of expenses.

[[Page 18923]]

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 action 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. Thus, both statutes have small 
entity orientation and compatibility.
    There are approximately 50 producers of grapes in the production 
area and approximately 20 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 defines small agricultural service firms as 
those whose annual receipts are less than $6,500,000.
    Last year, six of the 20 handlers subject to regulation had annual 
grape sales of at least $6,500,000. In addition, 10 of the 50 producers 
had annual sales of at least $750,000. Therefore, a majority of 
handlers and producers may be classified as small entities.
    This rule would revise Sec.  925.160 of the order's rules and 
regulations to include the requirement that handlers file an annual 
grape acreage survey.
    This rule would impose minimal additional costs on handlers 
regulated under the order. The benefits of this proposed rule are not 
expected to be disproportionately greater or less for small handlers 
than for large entities.
    At the meeting, the committee discussed an alternative to this 
change, which would be to ask handlers to voluntarily report grape 
acreage. However, under voluntary reporting, it is possible that all 
handlers would not report the information, making it difficult for the 
committee to aggregate accurate information used in determining the 
committee's crop estimate, assessment rate, and budget of expenses. The 
committee agreed that this alternative would not be in the best 
interest of the committee and the industry, and unanimously recommended 
mandating the report.
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the information collection requirements that are contained 
in this rule are currently approved by the Office of Management and 
Budget (OMB), under OMB No. 0581-0189, Generic OMB Fruit Crops. This 
rule would impose minimal additional reporting or recordkeeping 
requirements, deemed to be insignificant, on both small and large grape 
handlers.
    USDA has not identified any relevant Federal rules that duplicate, 
overlap or conflict with this rule. As with other similar 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.
    Further, the committee's meeting on February 6, 2007, was widely 
publicized throughout the desert grape industry and all interested 
persons were encouraged to attend the meeting and participate in 
committee deliberations. Like all committee meetings, the February 6, 
2007, meeting was a public meeting; and all entities, both large and 
small, were encouraged to express their views on this issue. All 
interested persons were invited to attend this meeting and encouraged 
to participate in the industry's deliberations.
    Finally, interested persons are invited to submit information on 
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.
    A 15-day comment period is provided to allow interested persons to 
respond to this proposal. Fifteen days is deemed appropriate because 
this rule would need to be in place as soon as possible since the 
shipping season begins April 20. All written comments timely received 
will be considered before a final determination is made on this matter.

List of Subjects in 7 CFR Part 925

    Grapes, Marketing agreements, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 925 is 
proposed to be amended as follows:

PART 925--GRAPES GROWN IN A DESIGNATED AREA OF SOUTHEASTERN 
CALIFORNIA

    1. The authority citation for 7 CFR part 925 continues to read as 
follows:

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

    2. In Sec.  925.160, the current paragraph is redesignated as 
paragraph (a), and a new paragraph (b) is added to read as follows:


Sec.  925.160  Reports.

    (a) * * *
    (b) When requested by the California Desert Grape Administrative 
Committee (CDGAC), each shipper who ships grapes shall furnish to the 
committee at such time as the committee shall require, an annual grape 
acreage survey (CDGAC Form 7), which shall include, but is not limited 
to, the following: the applicable year in which the report is 
requested; the names of the shipper (handler) who will handle the 
grapes and the grower who produces them; the location of each vineyard; 
the variety or varieties grown in each vineyard; and the bearing, non-
bearing, and total acres of each vineyard.

    Dated: April 11, 2007.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. E7-7179 Filed 4-13-07; 8:45 am]
BILLING CODE 3410-02-P


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