7660 Federal Register / Vol. 62, No. 34 / Thursday, February 20, 1997 / Rules and Regulations

Thus, all directly affected persons have

an opportunity to participate and

provide input.

The Committee, in a telephone vote

on September 25, 1996, unanimously

recommended 1996–97 administrative

expenses of $100,000 for personnel,

office and the travel portion of the

compliance budget. These expenses

were approved by the Department in

October 1996. The assessment rate and

funding for the research projects and the

road guard station maintenance portion

of the compliance budget were to be

recommended at a later Committee

meeting.

The Committee subsequently met on

December 17, 1996, and unanimously

recommended 1996–97 expenditures of

$308,000 and an assessment rate of

$0.07 per carton of melons. In

comparison, last year’s budgeted

expenditures were $395,159. The

assessment rate of $0.07 is the same as

last year’s established rate. Major

expenditures recommended by the

Committee for the 1996–97 fiscal period

include $84,500 for personnel and

administrative expenses, $115,500 for

compliance, $64,000 for a melon disease

management program, $33,125 for

breeding and variety development, and

$10,875 for melon variety evaluation.

Budgeted expenses for these items in

1995–96 were $95,544, $139,500,

$86,716, $32,674, and $10,875,

respectively.

The assessment rate recommended by

the Committee was derived by dividing

anticipated expenses by expected

shipments of South Texas melons.

Melon shipments for the year are

estimated at 3,870,000 cartons, which

should provide $270,900 in assessment

income. Income derived from handler

assessments, along with interest income

and funds from the Committee’s

authorized reserve, will be adequate to

cover budget expenses. Funds in the

reserve will be kept within the

maximum permitted by the order.

While this rule will impose some

additional costs on handlers, the costs

are in the form of uniform assessments

on all handlers. Some of the additional

costs may be passed on to producers.

However, these costs will be offset by

the benefits derived by the operation of

the marketing order. Therefore, the AMS

has determined that this rule will not

have a significant economic impact on

a substantial number of small entities.

Interested persons are invited to submit

information on the regulatory and

informational impacts of this action on

small businesses.

The assessment rate established in

this rule will continue in effect

indefinitely unless modified,

suspended, or terminated by the

Secretary upon recommendation and

information submitted by the

Committee or other available

information.

Although this assessment rate is

effective for an indefinite period, the

Committee will 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 the

Department. Committee meetings are

open to the public and interested

persons may express their views at these

meetings. The Department 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 1996–97 budget and those

for subsequent fiscal periods will be

reviewed and, as appropriate, approved

by the Department.

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 Committee needs to

have sufficient funds to pay its expenses

which are incurred on a continuous

basis; (2) the 1996–97 fiscal period

began on October 1, 1996, and the

marketing order requires that the rate of

assessment for each fiscal period apply

to all assessable melons handled during

such fiscal period; (3) 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 (4) this interim

final rule provides a 30-day comment

period, and all comments timely

received will be considered prior to

finalization of this rule.

List of Subjects in 7 CFR Part 959

Marketing agreements, Melons,

Reporting and recordkeeping

requirements.

For the reasons set forth in the

preamble, 7 CFR part 979 is amended as

follows:

PART 979—MELONS GROWN IN

SOUTH TEXAS

1. The authority citation for 7 CFR

part 979 continues to read as follows:

Authority: 7 U.S.C. 601–674.

2. A new subpart titled ‘‘Assessment

Rates’’ consisting of a new § 979.219

and a new subpart heading titled

‘‘Handling Regulations’’ are added

immediately preceding § 979.304, to

read as follows:

Note: This section will appear in the Code

of Federal Regulations.

Subpart—Assessment Rates

§ 979.219 Assessment rate.

On and after October 1, 1996, an

assessment rate of $0.07 per carton is

established for South Texas melons.

Dated: February 13, 1997.

Robert C. Keeney,

Director, Fruit and Vegetable Division.

[FR Doc. 97–4112 Filed 2–19–97; 8:45 am]

BILLING CODE 3410–02–P

7 CFR Part 987

[Docket No. FV–96–987–3 FR]

Domestic Dates Produced or Packed in

Riverside County, California;

Temporary Relaxation of Size

Requirements for Deglet Noor Dates

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Final rule.

SUMMARY: This final rule revises the size

requirements currently prescribed for

the Deglet Noor variety of dates under

the California date marketing order. The

marketing order regulates the handling

of domestic dates produced or packed in

Riverside County, California, and is

administered locally by the California

Date Administrative Committee

(committee). This rule will increase the

current tolerance for individual, whole

Deglet Noor dates weighing less than 6.5

grams (the prescribed minimum) from

10 to 15 percent and will be in effect

through October 31, 1997. The

relaxation is necessary because dates

from the 1996–97 crop are smaller in

size and weight than normal. The

decrease in size and weight is due to

extremely high temperatures

experienced last spring in the

production area. This relaxation was

recommended by the committee to make

a larger quantity of the 1996–97 crop
Federal Register / Vol. 62, No. 34 / Thursday, February 20, 1997 / Rules and Regulations 7661

available for sale domestically and in

Canada and is expected to benefit

producers, handlers, and consumers.

EFFECTIVE DATE: This final rule becomes

effective February 21, 1997.

FOR FURTHER INFORMATION CONTACT:

Maureen Pello, California Marketing

Field Office, Marketing Order

Administration Branch, F&V, AMS,

USDA, 2202 Monterey Street, Suite

102B, Fresno, California 93721;

telephone: (209) 487–5901, Fax # (209)

487–5906; or Valerie L. Emmer,

Marketing Specialist, Marketing Order

Administration Branch, F&V, AMS,

USDA, room 2536-S, P.O. Box 96456,

Washington, DC 20090–6456: telephone:

(202) 205–2829, Fax # (202) 720–5698.

Small businesses may request

information on compliance with this

regulation by contacting: Jay Guerber,

Marketing Order Administration

Branch, Fruit and Vegetable Division,

AMS, USDA, P.O. Box 96456, Room

2525–S, Washington, DC 20090–6456:

telephone (202) 720–2491; Fax # (202)

720–5698.

SUPPLEMENTARY INFORMATION: This final

rule is issued under Marketing

Agreement and Order No. 987 (7 CFR

part 987), both as amended, 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

(Department) 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 the Secretary 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 the Secretary 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 the Secretary’s ruling on the

petition, provided an action is filed not

later than 20 days after date of the entry

of the ruling.

This final rule revises the size

requirements currently prescribed for

the Deglet Noor variety of dates under

the California date marketing order.

This rule will increase the current

tolerance for individual, whole Deglet

Noor dates weighing less than 6.5 grams

(the prescribed minimum) from 10 to 15

percent. The rule will be in effect

through October 31, 1997, and was

recommended by the committee.

Section 987.39 of the date marketing

order provides authority for the

establishment of minimum quality

requirements for varieties of California

dates to be handled in designated

outlets. Section 987.40 of the order also

provides authority for the committee to

recommend to the Secretary additional

grade or size requirements for any

variety of dates to be handled in any

designated outlet when it deems

advisable. Pursuant to § 987.12, there

are four designated outlet categories for

California dates—‘‘DAC’’ dates, ‘‘dates

for further processing’’ (FP dates),

‘‘export’’ dates, and ‘‘product’’ dates.

Section 987.112a of the order’s

administrative rules prescribes grade,

size, and container requirements for

each of the four outlet categories of

dates. Paragraph (b)(2) of that section

prescribes such requirements for DAC

dates. DAC dates are marketable whole

or pitted dates that are inspected and

certified as meeting the grade, size,

container, and applicable identification

requirements for handling in the United

States and Canada. Currently, DAC

dates must meet the requirements for

U.S. Grade B, as specified in the U.S.

Standards for Grades of Dates

(Standards) issued by the Department.

In addition, with respect to whole dates

of the Deglet Noor variety, the

individual dates in a sample from a lot

must weigh at least 6.5 grams, with a

tolerance of 10 percent per lot for dates

weighing less than 6.5 grams.

Paragraph (c)(2) of § 987.112a

provides similar requirements for FP

dates. FP dates are marketable whole

dates acquired by one handler from

another handler that are certified as

meeting the same grade and size

requirements as for DAC dates, with the

exception of moisture requirements and

applicable identification requirements.

Currently, FP dates must also meet the

requirements for U.S. Grade B as

specified in the Standards, except for

moisture.

Section 987.112a also specifies

requirements for the remaining two

outlet categories of dates—export and

product. Except for some minor

differences stated in the section, export

and product dates must meet the

requirements for U.S. Grade C as

specified in the Standards.

At its meeting on October 31, 1996,

the committee recommended increasing

the current tolerance for individual,

whole Deglet Noor dates weighing less

than 6.5 grams from 10 to 15 percent to

be handled in the DAC and FP outlet

categories. The committee also

recommended that this relaxation be in

effect through October 31, 1997. This

will allow the rule to be in effect for the

remainder of the 1996–97 season, which

ends on September 30, plus an

additional month. By the end of October

1997, as prescribed under the order, the

committee is required to meet and

review its marketing policy for the next

season. Five committee members voted

for this change, three voted against, and

one abstained.

In its deliberations, the committee

commented that the average fruit size

for the 1996–97 crop is expected to be

much smaller this season than in recent

years, primarily due to the hot, dry

spring. Increasing the tolerance from 10

to 15 percent for dates weighing less

than 6.5 grams should allow a greater

quantity of Deglet Noor dates which are

of good quality but weigh less than 6.5

grams to meet the requirements for DAC

and FP dates. Currently, the industry

average of the number of dates packed

per pound is 60. The additional five

percent tolerance for undersize dates

will allow handlers to include

approximately two additional smaller

dates per pound. Thus, more of the crop

would be utilized as whole dates

domestically and in Canada. The

committee estimates total 1996–97

marketable date shipments at 33.5

million pounds. Of that amount, Deglet

Noor shipments are estimated at

approximately 32.4 million pounds,

with about 15 million pounds likely to

meet the current requirements for DAC

and FP dates. According to the

committee, increasing the tolerance

from 10 to 15 percent should allow

about three to five percent more Deglet

Noor dates to meet the DAC and FP

requirements, or between 450,000 and

750,000 pounds. Making more Deglet

Noor dates of satisfactory quality

available for sale domestically and in

Canada should provide for maximum

utilization of the 1996–97 crop, thereby

benefiting producers, handlers, and

consumers.

The three committee members who

opposed the recommendation believe
7662 Federal Register / Vol. 62, No. 34 / Thursday, February 20, 1997 / Rules and Regulations

that the overall quality of dates packed

will be decreased if smaller fruit is

allowed to meet the requirements for

DAC and FP dates. However, other

committee members commented that

the smaller size dates will still have to

meet all of the other characteristics DAC

and FP dates must already meet. Thus,

consumers should continue to receive

good quality whole dates with only a

slight increase in the number of smaller

size dates. In addition, the majority of

committee members believe that this

change will only affect about three to

five percent of the Deglet Noor

shipments that are expected to meet

DAC and FP requirements.

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.

There are approximately 15 handlers

of California dates who are subject to

regulation under the marketing order

and approximately 135 date producers

in the regulated area. Small agricultural

service firms have been defined by the

Small Business Administration (13 CFR

121.601) as those having annual receipts

of less than $5,000,000, and small

agricultural producers are defined as

those having annual receipts of less than

$500,000.

Last year, as a percentage, about 75

percent of the handlers shipped under

4 million pounds of dates and 25

percent shipped over 4 million. Using

an average f.o.b. price of $1.12 per

pound, about 75 percent of date

handlers could be considered small

businesses under SBA’s definition and

about 25 percent of the handlers could

be considered large businesses. The

majority of handlers and producers of

California dates may be classified as

small entities.

This final rule revises the size

requirements currently prescribed for

the Deglet Noor variety of dates under

§ 987.112a of the California date

marketing order. Deglet Noor dates from

the 1996–97 crop are smaller in size and

weight than normal, due to extremely

high temperatures experienced last

spring in the production area. The

committee recommended increasing the

current tolerance for individual, whole

Deglet Noor dates weighing less than 6.5

grams (the prescribed minimum) from

10 to 15 percent, to make a larger

quantity of the 1996–97 crop available

for sale domestically and in Canada,

thereby benefitting producers, handlers,

and consumers. This rule will be in

effect through October 31, 1997.

At the meeting, the committee

discussed the impact of this change on

handlers and producers in terms of cost.

Handlers and producers receive higher

returns for dates that meet DAC and FP

requirements. As previously mentioned,

dates sold as DAC or FP must meet the

requirements for U.S. Grade B dates

(with the exception of moisture for FP

dates) as specified in the Standards and

dates sold in other outlet categories

such as product and export must meet

requirements specified for U.S. Grade C

dates. According to industry members,

handlers receive about $.50 per pound

more for U.S. Grade B dates than U.S.

Grade C, and growers receive about $.30

more per pound more for U.S. Grade B

dates.

In addition, as previously mentioned,

1996–97 marketable Deglet Noor

shipments are estimated to be

approximately 32.4 million pounds, of

which about 15 million pounds should

meet DAC and FP requirements. If, as

the committee anticipates, increasing

the tolerance for smaller size fruit will

impact about three to five percent of the

crop, this change should allow between

about 450,000 and 750,000 pounds more

Deglet Noor dates to be sold as DAC and

FP dates. With a net increase to

handlers and producers of about $.50

per pound and $.30 per pound,

respectively, for U.S. Grade B dates, this

change could mean an increase in total

net returns of $225,000–$375,000 for all

handlers and $135,000–$225,000 for all

producers. The benefits for this rule are

not expected to be disproportionately

greater or less for small handlers or

producers than for larger entities.

The committee discussed alternatives

to this change, including not increasing

the tolerance at all, as well as increasing

the tolerance by 10 percent rather than

five percent. While only a small amount

of the crop is expected to be affected by

increasing the tolerance, the committee

believes that an increase should benefit

producers and handlers with smaller

fruit this season. The committee

considered increasing the tolerance

from 10 to 20 percent but believed that

this could put too much smaller size

fruit on the market. In addition,

committee members commented that

the tolerance was increased by five

percent during the 1992–93 season and

in prior seasons because of similar

problems of an abundance of small size

fruit due to hot temperatures, and that

the five percent increase was

satisfactory. Thus, the majority of

committee members agreed that the

tolerance for the size of Deglet Noor

dates should be increased from 10 to 15

percent through October 31, 1997.

This final rule will relax size

requirements under the date marketing

order. Accordingly, this action will not

impose any additional reporting or

recordkeeping requirements on either

small or large 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.

As noted in the initial regulatory

flexibility analysis, the Department has

not identified any relevant Federal rules

that duplicate, overlap or conflict with

this final rule. However, as previously

stated, DAC and FP dates must meet the

requirements for U.S. Grade B, as

specified in the U.S. Standards for

Grades of Dates (7 CFR 52.1001 through

52.1011) issued under the Agricultural

Marketing Act of 1946 (7 U.S.C. 1621

through 1627). Standards issued under

the Agricultural Marketing Agreement

Act of 1946 are voluntary. Further, the

public comments received concerning

the proposal did not address the initial

regulatory flexibility analysis.

In addition, the committee’s meeting

was widely publicized throughout the

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 October 31, 1996, meeting

was a public meeting and all entities,

both large and small, were able to

express views on this issue. The

committee itself is composed of nine

members, of which six are handlers/

producers and three are producers only,

the majority of whom are small entities.

A proposed rule concerning this

action was issued by the Department on

December 2, 1996, put on public display

at the Office of the Federal Register on

December 5, 1996, and published in the

Federal Register on Friday, December 6,

1996 (61 FR 64638). Copies of the rule

were made available to industry

members on December 5, 1996, at a

meeting of the California Date

Commission (Commission), a State

organization that conducts promotional

activities for the date industry. Many of

the committee members also sit on the

Commission. Copies of the rule were

also mailed or sent via facsimile to all

committee members and date handlers.
Federal Register / Vol. 62, No. 34 / Thursday, February 20, 1997 / Rules and Regulations 7663

Finally, the rule was made available

through the Internet by the Office of the

Federal Register.

A 15-day comment period was

provided to allow interested persons to

respond to the proposal. Fifteen days

was deemed appropriate because a rule

finalizing the action would need to be

in place as soon as possible since

handlers are already shipping dates

from the 1996–97 crop.

Two comments were received during

the comment period in response to the

proposal. The commenters, both

representing the same producer

operation, opposed the proposed

relaxation. The points made by the

commenters were thoroughly discussed

prior to the committee vote.

The commenters disagreed with the

statement in the proposed rule that the

relaxation would benefit both producers

and handlers. They claimed that the

increased returns to the handlers would

not be passed down to the producers.

While this may differ between and

among individual handlers and

producers, it is the Department’s

understanding that growers are paid for

their dates by handlers either on a

weight basis (so much money per pound

of dates delivered) or on a packout basis

(so much money per pound of U.S.

Grade B or U.S. Grade C dates).

Committee members indicated at the

meeting that, when growers are paid

based on packout, such growers receive

about $.30 more per pound for U.S.

Grade B dates than U.S. Grade C dates.

As previously mentioned, the

committee anticipates that increasing

the tolerance for smaller size fruit will

allow more dates to meet U.S. Grade B

and be sold as DAC and FP dates and

thus, will benefit handlers and

producers in the industry.

The commenters also contend that the

proposed relaxation will lower industry

quality standards at a time when the

industry should be striving for higher

standards. However, as discussed by the

committee and specified in the

proposed rule, the 5 percent increase in

the number of smaller size dates should

result in an average of only 2 additional

smaller sized dates in each package of

approximately 60 dates. The majority of

the committee members felt such a

relaxation would not significantly affect

the overall quality of each date package.

One commenter claimed that the

estimate of 450,000 to 750,000 pounds

of additional dates made available by

the proposed rule is not accurate

because the industry’s carryin inventory

was 14 million pounds. While the total

inventory is, indeed, estimated at 14.7

million pounds, the inventory of DAC

dates—those dates affected by the

relaxation—is only 5.7 million pounds,

which is less than normal. The

committee’s estimate of an additional

450,000 to 750,000 pounds of DAC dates

is accurate.

The commenter also suggested that

smaller dates would not necessarily

come only from the 1996 crop. The

commenter stated that the rule’s

expiration date of October 31, 1997,

overlaps the 1997 crop harvest. The

commenter contends that smaller dates

from the 1997 crop could be packed

with the 1996 crop. However, harvest

usually begins in mid to late October

and only a small amount of dates are

harvested and processed before the end

of the month. Also, it is common

industry practice to store dates for up to

10 months prior to processing,

packaging and shipment. Therefore, the

October 1997 time period would allow

stored 1996 crop dates to be used.

The commenter also claimed that the

relaxation is a short term solution and

questioned whether other commodities

lower quality standards because of

adverse weather conditions. Such action

has been recommended by other

marketing order committees and

approved by the Secretary for some

commodities. Such recommendations

have helped marketing order industries

to fully utilize available production

when harvests are diminished by

adverse weather or other disasters.

Accordingly, no changes will be made

to the rule as proposed, based on the

comments received.

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) because handlers are already

shipping dates from the 1996–97 crop

and handlers want to take advantage of

the relaxation as soon as possible.

Further, handlers 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.

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:

1. The authority citation for 7 CFR

part 987 continues to read as follows:

Authority: 7 U.S.C. 601–674.

PART 987—DOMESTIC DATES

PRODUCED OR PACKED IN

RIVERSIDE COUNTY, CALIFORNIA

§ 987.112a [Amended]

2. In § 987.112a, paragraphs (b)(2) and

(c)(2), the words ‘‘December 29, 1992,

and ending October 31, 1993,’’ are

removed and the words ‘‘February 21,

1997, and ending October 31, 1997,’’ are

added in their place.

Dated: February 14, 1997.

Robert C. Keeney,

Director, Fruit and Vegetable Division.

[FR Doc. 97–4335 Filed 2–18–97; 2:02 pm]

BILLING CODE 3410–02–P

Rural Utilities Service

7 CFR Part 1710

RIN 0572–AB30

Pre-Loan Procedures for Electric

Loans

AGENCY: Rural Utilities Service, USDA.

ACTION: Direct final rule.

SUMMARY: The Rural Utilities Service

(RUS) is issuing a minor amendment to

its pre-loan procedures that will clarify

that use of a conventional utility

indenture as a security instrument for

loans to power supply borrowers is

permissible. This amendment will give

these borrowers and RUS the flexibility

to address the complex issues

surrounding power supply loans in the

rapidly changing electric industry. The

rule will also enhance loan security and,

by conforming more closely to private

lending practice, allow easier access to

private sector financing.

In the proposed rules section of this

Federal Register, RUS is proposing

approval of and soliciting comments on

this action. If adverse comments are

received on this action, RUS will

withdraw this final rule prior to its

effective date and address the comments

recieved in response to this action in a

final rule on the related proposed rule,

which is published in the proposed

rules section of this Federal Register. A

second public comment period will not

be held. Parties interested in

commenting on this action should do so

at this time.

DATES: This rule will become effective

on April 7, 1997, unless we receive

written adverse comments or notice of

intent to submit adverse comments on

or before March 24, 1997. If the effective

date is delayed, timely notice will be

published in the Federal Register.