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.

Proposed Rules Federal Register

24551 

Vol. 72, No. 85 

Thursday, May 3, 2007 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 925 

[Docket No. AMS–FV–07–0029; FV07–925– 

2 PR] 

Grapes Grown in a Designated Area of 

Southeastern California; Increased 

Assessment Rate 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Proposed rule. 

SUMMARY: This rule would increase the 

assessment rate established for the 

California Desert Grape Administrative 

Committee (committee) for the 2007 and 

subsequent fiscal periods from $0.0175 

to $0.0200 per 18-pound lug of grapes 

handled. The committee locally 

administers the marketing order, which 

regulates the handling of grapes grown 

in a designated area of southeastern 

California. Assessments upon desert 

grape handlers are used by the 

committee to fund reasonable and 

necessary expenses of the program. The 

fiscal period began January 1 and ends 

December 31. The assessment rate 

would remain in effect indefinitely 

unless modified, suspended, or 

terminated. 

DATES: Comments must be received by 

June 4, 2007. 

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: http:// 

www.regulations.gov. 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: Toni 

Sasselli, Program Analyst, or Kurt J. 

Kimmel, Regional Manager, California 

Marketing Field Office, Fruit and 

Vegetable Programs, AMS, USDA; 

Telephone: (559) 487–5901, Fax: (559) 

487–5906, or E-mail: 

Toni.Sasselli@usda.gov 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. 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. Under the marketing order now 

in effect, California grape handlers are 

subject to assessments. Funds to 

administer the order are derived from 

such assessments. It is intended that the 

assessment rate as proposed herein 

would be applicable to all assessable 

grapes beginning on January 1, 2007, 

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 would increase the 

assessment rate established for the 

committee for the 2007 and subsequent 

fiscal periods from $0.0175 to $0.0200 

per 18-pound lug of grapes. 

The California grape marketing order 

provides authority for the committee, 

with the approval of USDA, to formulate 

an annual budget of expenses and 

collect assessments from handlers to 

administer the program. The members 

of the committee are producers and 

handlers of California grapes. They are 

familiar with the committee’s needs and 

with the costs for goods and services in 

their local area and are thus in a 

position to formulate an appropriate 

budget and assessment rate. The 

assessment rate is formulated and 

discussed in a public meeting. Thus, all 

directly affected persons have an 

opportunity to participate and provide 

input. 

For the 2005 and subsequent fiscal 

periods, the committee recommended, 

and USDA approved, an assessment rate 

that would continue in effect from fiscal 

period to fiscal period 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 February 6, 

2007, and unanimously recommended 

expenditures of $160,768 and an 

assessment rate of $0.0200 per 18-pound 

lug of grapes for the 2007 fiscal period. 

In comparison, last year’s budgeted 

expenditures were $131,318. The 

assessment rate of $0.0200 is $0.0025 

higher than the rate currently in effect. 

The increased assessment rate is needed 

to permit the committee to fund a 

research project on Vineyard Mealy 

Bugs and to ensure that an adequate 

carryover of reserve funds is available 

for the 2008 fiscal year. 

The major expenditures 

recommended by the committee for the 

2007 fiscal period include $18,000 for 

research, $5,000 for compliance 

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24552 Federal Register / Vol. 72, No. 85 / Thursday, May 3, 2007 / Proposed Rules 

activities, $109,068 for salaries and 

payroll expenses, and $28,700 for other 

expenses. In comparison, budgeted 

expenses for these items in 2006 were 

$5,000 for compliance activities, 

$103,668 for salaries and payroll 

expenses, and $22,650 for other 

expenses. The committee did not budget 

for research projects in 2006. 

The assessment rate recommended by 

the committee was derived by 

subtracting the committee’s total 

available funds from their anticipated 

2007 expenses and dividing the 

remainder by the estimated 2007 

shipments. The total anticipated 2007 

expenses are $160,768, and the desired 

ending reserve is $39,432. The available 

carry-in funds are $70,000, and the 

anticipated interest income is $200. The 

2007 estimated shipments are 6.5 

million 18-pound lugs. 

Based on this calculation, (($160,768 

+ $39,432) - ($70,000 + $200)) / ( 6.5 

million = $0.0200, the $0.0200 

assessment rate would provide 

sufficient funds to meet anticipated 

expenses of $160,768 and would allow 

for an adequate December 2007 ending 

reserve of $39,432. Thus, the December 

2007 ending reserve would be kept 

within the maximum permitted by the 

order, approximately one fiscal period’s 

expenses, as required under § 925.41 of 

the order. It would also be adequate to 

cover early-season (2008) expenses 

before assessment income is received. 

The proposed assessment rate would 

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 would 

be in effect for an indefinite period, the 

committee would continue to meet prior 

to or during each fiscal period 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 would evaluate committee 

recommendations and other available 

information to determine whether 

modification of the assessment rate is 

needed. Further rulemaking would be 

undertaken as necessary. The 

committee’s 2007 budget and those for 

subsequent fiscal periods would be 

reviewed and, as appropriate, approved 

by USDA. 

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. 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 small 

agricultural service firms are defined 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 increase the 

assessment rate established for the 

committee and collected from handlers 

for the 2007 and subsequent fiscal 

periods from $0.0175 to $0.0200 per 18- 

pound lug of grapes. The committee 

unanimously recommended 

expenditures of $160,768 and an 

assessment rate of $0.0200 per 18-pound 

lug of grapes for the 2007 fiscal period. 

The proposed assessment rate of 

$0.0200 is $0.0025 higher than the 2006 

rate. The number of assessable grapes is 

estimated at 6.5 million 18-pound lugs. 

Thus, the $0.0200 rate should provide 

$130,000 in assessment income. Income 

derived from handler assessments, along 

with interest income and funds from the 

committee’s authorized carry-in reserve 

should be adequate to cover budgeted 

expenses. 

The major expenditures 

recommended by the committee for the 

2007 fiscal period include $18,000 for 

research, $5,000 for compliance 

activities, $109,068 for salaries and 

payroll expenses, and $28,700 for other 

expenses. In comparison, budgeted 

expenses for these items in 2006 were 

$5,000 for compliance activities, 

$103,668 for salaries and payroll 

expenses, and $22,650 for other 

expenses. The committee did not budget 

for research projects in 2006. 

The committee reviewed and 

unanimously recommended 2007 

expenditures of $160,768, which 

included an increase due to a new 

research project. Prior to arriving at this 

budget, the committee considered 

alternative expenditure and assessment 

rate levels, but ultimately decided that 

the recommended levels were 

reasonable to properly administer the 

order. 

The assessment rate recommended by 

the committee was derived by the 

following formula: Anticipated 

expenses ($160,768) plus desired 2007 

ending reserve ($39,432), minus the 

2007 beginning reserve ($70,000) and 

the anticipated interest income ($200), 

divided by total shipments (6.5 million 

18-pound lugs), equals the 

recommended assessment rate ($0.0200 

per 18-pound lug). 

This rate would provide sufficient 

funds in combination with interest and 

reserve funds to meet the anticipated 

expenses of $160,768 and result in a 

December 2007 ending reserve of 

$39,432, which is acceptable to the 

committee. Thus, the December 2007 

ending reserve would be kept within the 

maximum permitted by the order, 

approximately one fiscal period’s 

expense, as required under § 925.41 of 

the order. 

A review of historical information and 

preliminary information pertaining to 

the 2007 fiscal period indicates that the 

on-vine grower price for the season 

could range between $5.00 and $9.00 

per 18-pound lug of grapes. Therefore, 

the estimated assessment revenue for 

the 2007 fiscal period as a percentage of 

total grower revenue could range 

between 0.2 and 0.4 percent. 

This action would increase the 

assessment obligation imposed on 

handlers. 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 

grape production area and all interested 

persons were invited to attend the 

meeting and participate in committee 

deliberations on all issues. Like all 

committee meetings, the February 6, 

2007, meeting was a public meeting and 

all entities, both large and small, were 

able to express views on this issue. 

Finally, interested persons are invited to 

submit information on the regulatory 

and informational impacts of this action 

on small businesses. 

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Federal Register / Vol. 72, No. 85 / Thursday, May 3, 2007 / Proposed Rules 24553 

This proposed rule would impose no 

additional reporting or recordkeeping 

requirements on either small or large 

California grape handlers. As with all 

Federal marketing order programs, 

reports and forms are periodically 

reviewed to reduce information 

requirements and duplication by 

industry and public sector agencies. 

The AMS is committed to complying 

with the E-Government Act, to promote 

the use of the Internet and other 

technologies to provide increased 

opportunities for citizen access to 

Government information and services, 

and for other purposes. 

USDA has not identified any relevant 

Federal rules that duplicate, overlap, or 

conflict with this rule. 

A 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 30-day comment period is provided 

to allow interested persons to respond 

to this proposed rule. Thirty days is 

deemed appropriate because: (1) The 

2007 fiscal period began on January 1, 

2007, and the marketing order requires 

that the rate of assessment for each 

fiscal period apply to all assessable 

grapes handled during such period; (2) 

the industry could be shipping grapes 

beginning April 20, 2007; (3) the 

committee needs to have sufficient 

funds to pay its expenses which are 

incurred on a continuous basis; and (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. 

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. Section 925.215 is revised to read 

as follows: 

§ 925.215 Assessment rate. 

On and after January 1, 2007, an 

assessment rate of $0.0200 per 18-pound 

lug is established for grapes grown in a 

designated area of southeastern 

California. 

Dated: April 27, 2007. 

Lloyd C. Day, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. E7–8458 Filed 5–2–07; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 930 

[Docket No. AMS–FV–06–0186; FV06–930– 

610 REVIEW] 

Tart Cherries Grown in the States of 

Michigan, et al.; Section 610 Review 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Confirmation of regulations. 

SUMMARY: This action summarizes the 

results under the criteria contained in 

section 610 of the Regulatory Flexibility 

Act (RFA), of an Agricultural Marketing 

Service (AMS) review of Marketing 

Order No. 930 regulating the handling of 

tart cherries grown in the States of 

Michigan, New York, Pennsylvania, 

Oregon, Utah, Washington, and 

Wisconsin. 

ADDRESSES: Interested persons may 

obtain a copy of the review. Requests for 

copies should 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 

e-mail: moab.docketclerk@usda.gov. 

The review may also be viewed online 

at: http://www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT: 

Patricia A. Petrella or Kenneth G. 

Johnson, Marketing Order 

Administration Branch, Fruit and 

Vegetable Programs, AMS, USDA, Unit 

155, 4700 River Road, Riverdale, MD 

20737; Telephone: (301) 734–5243, Fax: 

(301) 734–5275; or E-mail: 

Patricia.Petrella@usda.gov or 

Kenneth.Johnson@usda.gov. 

SUPPLEMENTARY INFORMATION: Marketing 

Order 930, as amended (7 CFR part 930), 

regulates the handling of tart cherries 

grown in the States of Michigan, New 

York, Pennsylvania, Oregon, Utah, 

Washington, and Wisconsin. The 

marketing order is effective under the 

Agricultural Marketing Agreement Act 

of 1937 (Act), as amended (7 U.S.C. 

601–674). 

The tart cherry marketing order 

establishes the Cherry Industry 

Administrative Board (Board) as the 

administrative body charged with 

overseeing program operations. Staff is 

hired to conduct the daily 

administration of the program. The 

Board consists of 18 producer and 

handler members, plus one member 

who represents the public. There are 

seven grower members and seven 

handler members, and four members 

that can be either growers or handlers. 

Each member has an alternate. Members 

and alternate members are elected 

through a mail balloting process. 

Currently, there are approximately 

900 tart cherry growers and 

approximately 40 handlers. The 

majority of the growers and handlers 

may be classified as small entities. The 

regulations implemented under the 

order are applied uniformly to all size 

entities, and are designed to benefit all 

entities, regardless of size. 

AMS published in the Federal 

Register (64 FR 8014; February 18, 

1999), its plan to review certain 

regulations, including Marketing Order 

930, under criteria contained in section 

610 of the RFA (5 U.S.C. 601–612). 

Updated plans were published in the 

Federal Register on January 4, 2002 (67 

FR 525), August 14, 2003 (68 FR 48574), 

and again on March 24, 2006 (71 FR 

14827). Accordingly, AMS published a 

notice of review and request for written 

comments on the tart cherry marketing 

order in the February 21, 2006, issue of 

the Federal Register (71 FR 8810). The 

deadline for comments ended April 24, 

2006. No comments were received. 

The review was undertaken to 

determine whether the tart cherry 

marketing order should be continued 

without change, amended, or rescinded 

to minimize the impacts on small 

entities. In conducting this review, AMS 

considered the following factors: (1) The 

continued need for the marketing order; 

(2) the nature of complaints or 

comments received from the public 

concerning the marketing order; (3) the 

complexity of the marketing order; (4) 

the extent to which the marketing order 

overlaps, duplicates, or conflicts with 

other Federal rules, and, to the extent 

feasible, with State and local 

governmental rules; and (5) the length of 

time since the marketing order has been 

evaluated or the degree to which 

technology, economic conditions, or 

other factors have changed in the area 

affected by the marketing order. 

The marketing order authorizes the 

following activities: Volume control in 

the form of free and restricted 

percentages and establishment of a 

reserve pool; production and processing 

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