Federal Register / Vol. 62, No. 71 / Monday, April 14, 1997 / Rules and Regulations 18029

preliminary, interim final, and final

quantities of hazelnuts to be released to

the free and restricted markets each

marketing year. The program results in

plentiful supplies for consumers and for

market expansion while retaining the

mechanism for dealing with oversupply

situations.

The marketing order authority for

regulating the quantity of hazelnuts

marketed is intended to stabilize

markets, in the interest of producers,

handlers, and consumers. The restricted

percentage limits the amount of the crop

that goes into the primary market

(domestic inshell market) so that this

market is adequately supplied. Inshell

hazelnuts sold to the domestic market

provide higher returns to the industry

than are obtained from shelling. The

domestic inshell market is quite small

and prone to oversupply in the absence

of volume regulation. The excess that is

not needed for the primary market is set

aside and sold into noncompetitive

market channels where such sales will

not depress primary market prices. The

quantity control authority provides the

industry with a framework for softening

the extremes in supply and prices that

can occur with agricultural

commodities, like hazelnuts, subject to

the vagaries of nature.

Currently, U.S. hazelnut production

can be successfully allocated between

the inshell domestic and secondary

markets. One of the best secondary

markets for hazelnuts is the export

market. Inshell hazelnuts produced

under the marketing order compete well

in export markets because of the high

quality of U.S. hazelnuts. Europe, and

Germany in particular, is the major

export market for U.S. produced inshell

hazelnuts. A third market is for shelled

hazelnuts sold domestically.

Domestically produced kernels

generally command a higher price in the

domestic market than imported kernels.

The industry is continuing its efforts to

develop and expand secondary markets,

especially the domestic kernel (shelled)

market. Small business entities, both

producers and handlers, benefit from

the expansion efforts resulting from this

program.

The critical marketing problem

confronting the hazelnut industry is that

the available supply for the 1996–97

marketing year far exceeds domestic

inshell market needs. The quantity

needed for the domestic inshell market

during the 1996–97 marketing year

(4,724 tons) is less than one-fourth of

the supply subject to regulation (20,306

tons). Hence, the Board determined that

volume regulation was needed to

stabilize supplies and prices. Without

the supply correction fostered by

regulation in 1996–97, the Board

believed that weak marketing conditions

and price cutting would cause the

industry’s economic condition to

deteriorate.

In considering quantity control for the

1996–97 marketing year, the Board

considered the estimated tonnage of

merchantable hazelnuts expected to be

produced during the 1996–97 marketing

year, the estimated tonnage of inshell

hazelnuts carried in from the previous

marketing year available for marketing

as inshell hazelnuts during 1996–97, all

available information on possible

markets for the crop taking into

consideration anticipated imports,

inventory in marketing channels, prices,

competing nut supplies, and other

economic conditions which could

impact the marketing of the 1996–97

inshell hazelnut crop. This all resulted

in the Board’s recommendation to limit

the amount of the 1996–97 crop going

into the domestic inshell market and the

marketing percentage computation table

set forth earlier in this document.

No change has occurred in the

relationship between supply and

demand since the interim final rule was

issued, and that rule made a sufficient

volume of free hazelnuts available for

the domestic inshell market. Hence, a

release of additional supplies at this

time of the season would make more

hazelnuts available for this market than

are needed, resulting in disorderly

marketing conditions. Also, the

additional supplies could adversely

impact the marketing of the upcoming

crop.

It is the Department’s view that the

marketing percentages recommended by

the Board, and established by the

Department, for the 1996–97 marketing

year have provided all members of the

industry, both large and small, with a

means for stabilizing supplies and

prices, and for maintaining and

expanding markets for hazelnuts.

There are some reporting,

recordkeeping and other compliance

requirements under the marketing order.

The reporting and recordkeeping

burdens are the minimum necessary for

compliance purposes and for

developing statistical data for

maintenance of the program. The forms

require information which is readily

available from handler records and

which can be provided without data

processing equipment or trained

statistical staff. As with other, similar

marketing order programs, reports and

forms are periodically studied to reduce

or eliminate duplicate information

collection burdens by industry and

public sector agencies. This final rule

does not change those requirements.

As noted in the initial regulatory

flexibility analysis, the Department has

not identified any relevant Federal rules

that duplicate, overlap or conflict with

this regulation.

The interim final rule was issued by

the Department on December 31, 1996;

put on public display at the Office of the

Federal Register on January 7, 1997; and

published in the Federal Register (62

FR 1035, January 8, 1997), with an

effective date of January 9, 1997. The

Board manager mailed information

concerning that action to all known

industry members, and it was also made

available through the Internet by the

Office of the Federal Register. That rule

provided a 30-day comment period

which ended February 7, 1997. No

comments were received concerning

either the interim final rule or the initial

regulatory flexibility analysis.

After consideration of all relevant

material presented, including the

Board’s recommendation, and other

information, it is found that finalizing

the interim final rule, without change,

as published in the Federal Register (62

FR 1035, January 8, 1997), will tend to

effectuate the declared policy of the Act.

List of Subjects in 7 CFR Part 982

Filberts, Hazelnuts, Marketing

agreements, Nuts, Reporting and

recordkeeping requirements.

For the reasons set forth in the

preamble, 7 CFR part 982 is amended as

follows:

PART 982—HAZELNUTS GROWN IN

OREGON AND WASHINGTON

Accordingly, the interim final rule

amending 7 CFR part 982 which was

published at 62 FR 1035 on January 8,

1997, is adopted as a final rule without

change.

Dated: April 8, 1997.

Sharon Bomer Lauritsen,

Acting Director, Fruit and Vegetable Division.

[FR Doc. 97–9568 Filed 4–11–97; 8:45 am]

BILLING CODE 3410–02–P

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 989

[FV97–989–1IFR]

Raisins Produced From Grapes Grown

In California; Final Free and Reserve

Percentages for the 1996–97 Crop Year

for Natural (Sun-Dried) Seedless

Raisins

AGENCY: Agricultural Marketing Service,

USDA.
18030 Federal Register / Vol. 62, No. 71 / Monday, April 14, 1997 / Rules and Regulations

ACTION: Interim final rule with request

for comments.

SUMMARY: This interim final rule

establishes final free and reserve

percentages for 1996–97 crop Natural

(sun-dried) Seedless raisins. The

percentages are 86 percent free and 14

percent reserve. These percentages are

intended to stabilize supplies and

prices, and strengthen market

conditions. This rule was recommended

by the Raisin Administrative Committee

(Committee), the body which locally

administers the marketing order.

DATES: This interim final rule becomes

effective April 15, 1997, and applies to

all Natural (sun-dried) Seedless raisins

acquired from the beginning of the

1996–97 crop year. Comments received

by May 14, 1997 will be considered

prior to any finalization of this interim

final rule.

ADDRESSES: Interested persons are

invited to submit written comments

concerning this action. Comments must

be sent in triplicate to the Docket Clerk,

Fruit and Vegetable Division, AMS,

USDA, room 2525–S, P.O. Box 96456,

Washington, DC 20090–6456, or faxed

to 202–720–5698. 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.

FOR FURTHER INFORMATION CONTACT:

Richard P. Van Diest, Marketing

Specialist, California Marketing Field

Office, Fruit and Vegetable Division,

AMS, USDA, 2202 Monterey Street,

suite 102B, Fresno, California 93721;

telephone: 209–487–5901 or Mark A.

Slupek, Marketing Specialist, Marketing

Order Administration Branch, Fruit and

Vegetable Division, AMS, USDA, room

2523–S, P.O. Box 96456, Washington,

DC 20090–6456; telephone: 202–205–

2830. 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 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

(Department) 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

provisions now in effect, final free and

reserve percentages may be established

for raisins acquired by handlers during

the crop year. This rule establishes final

free and reserve percentages for Natural

(sun-dried) Seedless raisins for the

1996–97 crop year, beginning August 1,

1996, through July 31, 1997. 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 requesting a modification of the

order or to be exempt therefrom. Such

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 in

equity to review the Secretary’s ruling

on the petition, provided an action is

filed not later than 20 days after the date

of the entry of the ruling.

The order prescribes procedures for

computing trade demands and

preliminary and final percentages that

establish the amount of raisins that can

be marketed throughout the season. The

regulations apply to all handlers of

California raisins. Raisins in the free

percentage category may be shipped

immediately to any market, while

reserve raisins must be held by handlers

in a reserve pool for the account of the

Committee, which is responsible for

local administration of the order. Under

the order, reserve raisins may be: Sold

at a later date by the Committee to

handlers for free use or to replace part

of the free raisins they exported; used in

diversion programs; exported to

authorized countries; carried over as a

hedge against a short crop the following

year; or disposed of in other outlets

noncompetitive with those for free

tonnage raisins.

While this rule may restrict the

amount of Natural (sun-dried) Seedless

raisins that enter domestic markets,

final free and reserve percentages are

intended to promote stronger marketing

conditions, to stabilize prices and

supplies, and to improve grower

returns. In addition to the quantity of

raisins released under the preliminary

percentages and the final percentages,

the order specifies methods to make

available additional raisins to handlers

by requiring sales of reserve pool raisins

for use as free tonnage raisins under ‘‘10

plus 10’’ offers, and authorizing sales of

reserve raisins under certain conditions,

such as a national emergency, crop

failure, change of economic or

marketing conditions, or if free tonnage

shipments during the current crop year

exceed shipments of the prior crop year

by more than 5 percent.

The Department’s ‘‘Guidelines for

Fruit, Vegetable, and Specialty Crop

Marketing Orders’’ specify that 110

percent of recent years’ sales should be

made available to primary markets each

season before recommendations for

volume regulation are approved. This

goal is met by the establishment of a

final percentage which releases 100

percent of the computed trade demand

and the additional release of reserve

raisins to handlers under ‘‘10 plus 10’’

offers. The ‘‘10 plus 10’’ offers are two

simultaneous offers of reserve pool

raisins which are made available to

handlers each season. For each such

offer, a quantity of raisins equal to 10

percent of the prior year’s shipments is

made available for free use.

Approximately 59,000 tons of Natural

(sun-dried) Seedless were purchased by

handlers for free use pursuant to these

offers. The quantity available for

primary market under this rule would

be about 406,000 tons natural condition

raisins or 381,000 tons packed raisins.

This is 129 percent of the quantity

shipped in 1995.

Pursuant to section 989.54(a) of the

order, the Committee met on August 15,

1996, to review shipment data,

inventory data, and the 1995 crop

conditions for raisins of all varietal

types. The Committee computed a trade

demand for each varietal type for which

a free tonnage percentage might be

recommended. The trade demand is 90

percent of the prior year’s shipments of

free tonnage and reserve tonnage raisins

sold for free use for each varietal type

into all market outlets, adjusted by

subtracting the carrying of each varietal

type on August 1 of the current crop

year and by adding to the trade demand

the desirable carryout for each varietal

type at the end of that crop year. As

specified in section 989.154, the

desirable carryout for each varietal type

shall be equal to the shipments of free
Federal Register / Vol. 62, No. 71 / Monday, April 14, 1997 / Rules and Regulations 18031

tonnage raisins of the prior crop year

during the months of August and

September. If the prior year’s shipments

are limited because of crop conditions,

the total shipments during that period of

time during one of the three years

preceding the prior crop year may be

used. In accordance with these

provisions, the Committee computed

and announced a 1996–97 trade demand

of 232,765 tons for Natural (sun-dried)

Seedless raisins.

As required under section 989.54(b) of

the order, the Committee met on

October 3, 1996, and computed and

announced a preliminary crop estimate

and preliminary free and reserve

percentages for Natural (sun-dried)

Seedless raisins which released 85

percent of the trade demand. On

October 3, 1996, the Committee’s crop

estimate and preliminary free and

reserve percentages were as follows:

272,034 tons, and 73 percent free and 27

percent reserve.

Also at that meeting, the Committee

computed and announced preliminary

crop estimates and preliminary free and

reserve percentages for Dipped Seedless,

Oleate and Related Seedless, Golden

Seedless, Zante Currant, Sultana,

Muscat, Monukka, and Other Seedless

raisins. The Committee determined,

however, that volume control

percentages only were warranted for

Natural (sun-dried) Seedless raisins. It

determined that the supplies of the

other varietal types would be less than

or close enough to the computed trade

demands for each of these varietal types.

These varietal types are produced in

much smaller quantities than Natural

(sun-dried) Seedless raisins. In view of

these factors, volume control

percentages either would not be

necessary to maintain market stability or

would not be economically practical for

the other variety types.

Pursuant to section 989.54(c), the

Committee may adopt interim free and

reserve percentages. Interim percentages

may release less than the computed

trade demand for each varietal type.

Interim percentages for Natural (sundried) Seedless raisins of 85.75 percent

free and 14.25 percent reserve were

announced by the Committee on

February 3, 1997. The Committee

considered its final estimate of 270,999

tons of 1966–97 production of Natural

(sun-dried) Seedless raisins when it

established the interim percentages.

That action released most, but not all, of

the computed trade demand for Natural

(sun-dried) Seedless raisins.

In addition, under section 989.54(d)

of the order, the Committee is required

to recommend to the Secretary, no later

than February 15 of each crop year, final

free and reserve percentages which,

when applied to the final production

estimate of a varietal type, will tend to

release the full trade demand for any

varietal type. The Committee met on

February 3, 1997, for this purpose.

The computed trade demand (232,765

tons) is 90 percent of the prior year’s

shipments of free tonnage and reserve

tonnage raisins sold for free use into all

market outlets (282,289 tons), adjusted

by subtracting the carrying of each

varietal type on August 1 of the current

crop year (113,697 tons) and by adding

to the trade demand the desirable

carryout for each varietal type at the end

of that crop year (64,173 tons). No

information was presented between the

August 15, 1996, meeting and the

February 3, 1997, meeting to cause the

Committee to make any change to the

computed trade demand. Thus, the

Committee divided the computed trade

demand of 232,765 tons by the final

production estimate (270,999 tons) and

recommended a final free percentage of

86 percent and a final reserve

percentage of 14 percent.

The free and reserve percentages

established by this interim final rule

will apply uniformly to all handlers in

the industry, whether small or large,

and there are no known additional costs

incurred by small handlers. Although

raisin markets are limited, they are

available to all handlers, regardless of

size. The stabilizing effects of the

percentages impact both small and large

handlers positively by helping them

maintain and expand markets.

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 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 20 handlers

of California raisins who are subject to

regulation under the raisin marketing

order and approximately 4,500

producers of raisins in the regulated

area. Small agricultural service firms,

which includes handlers, have been

denied 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.

No more than 8 handlers, and a majority

of producers, of California raisins may

be classified as small entities. Twelve of

the 20 handlers subject to regulation

have annual sales estimated to be at

least $5,000,000, and the remaining 8

handlers have sales less than

$5,000,000, excluding receipts from any

other sources.

Committee and subcommittee

meetings are widely publicized in

advance and are held in a location

central to the production area. The

meetings are open to all industry

members (including small business

entities) and other interested persons—

who are encouraged to participate in the

deliberations and voice their opinions

on topics under discussion. Thus,

Committee recommendations can be

considered to represent the interests of

small business entities in the industry.

Many years of marketing experience

led to the development of the current

volume control procedures. These

procedures have helped the industry

address its marketing problems by

keeping supplies in balance with

domestic and export market needs, and

strengthening market conditions. The

current volume control procedures fully

supply the domestic and export

markets, provide for market expansion,

and help prevent oversupplies in the

domestic market.

In discussing the possibility of

marketing percentages for the 1996–97

crop year, the Committee considered: (1)

The estimated tonnage held by

producers, handlers, and for the account

of the Committee at the beginning of the

crop year (113,697 tons); (2) the

estimated tonnage of standard raisins

which will be produced in 1996–97

(270,999 tons); (3) the trade demand for

raisins in free tonnage outlets in 1996–

97 (232,765 tons); (4) the estimated

desirable carryout at the end of the

1996–97 crop year for free tonnage

(64,173 tons); (5) the estimated world

raisin supply and demand situation; (6)

the current prices being received and

the probable level of prices to be

received for raisins by producers and

handlers; and (7) the trend and level of

consumer income.

The Committee’s review of the factors

resulted in the computation and

announcement in October 1997 of

preliminary free and reserve percentages

for Natural (sun-dried) Seedless raisins.

This varietal type is the major

commercial varietal type produced in

California. Although the 1996–97 crop

was estimated to be down from previous

crop years, the total supply available for
18032 Federal Register / Vol. 62, No. 71 / Monday, April 14, 1997 / Rules and Regulations

marketing (270,999 tons) exceeded the

computed trade demand (232,765 tons)

by a large enough quantity (38,234 tons)

to support limiting the quantity

available for sale in free tonnage

markets by placing a portion of the crop

aside to be sold when demand improved

in the current or subsequent season.

This rule establishes free and reserve

percentages for Natural (sun-dried)

Seedless raisins in accordance with the

volume control provisions in section

989.54. Raisins in the free percentage

category may be shipped immediately to

any market, while reserve raisins must

be held by handlers in a reserve pool for

the account of the Committee, which is

responsible for local administration of

the order. Under the order, reserve

raisins may be: Sold at a later date by

the Committee to handlers for free use

or to replace part of the free use raisins

they exported: used in diversion

programs; exported to authorized

countries; carried over as a hedge

against a short crop the following year;

or disposed of in other outlets

noncompetitive with those for free

tonnage raisins. The percentage releases

provide all handlers with the

opportunity to benefit from the most

profitable domestic market. That market

is available to all handlers, regardless of

handler size.

Raisin variety grapes can be marketed

as fresh grapes, crushed for use in the

production of wine or juice concentrate,

or dried into raisins. Annual

fluctuations in the fresh grape, wine,

and concentrate markets cause

fluctuations in raisin supply. These

supply fluctuations can cause producer

price instability and disorderly market

conditions. Volume control is helpful to

the raisin industry because it lessens the

impact of such fluctuations and

contributes to orderly marketing.

Industry statistics show that Natural

(sun-dried) Seedless raisin receipts have

varied widely over the last ten years,

from a low of 325,911 tons in 1995 to

a high of 395,501 tons in 1989. Average

receipts for the last 10 years have been

around 365,000 tons. As crop size has

fluctuated, volume regulations have

contributed toward orderly marketing

and market stability, and have helped

moderate the variation in returns for all

growers and handlers, both large and

small. For instance, handler receipts in

the shortest crop year (1995) were 89

percent of the ten-year average (1986–

1995). Handler receipts in the biggest

crop year (1989) were 108 percent of the

ten-year average.

Free and reserve percentages are

established by variety, and only in years

when the supply exceeds the trade

demand by a large enough margin that

the Committee believes volume control

is necessary to maintain market

stability. Accordingly, in assessing

whether to apply volume control

regulation or, as an alternative, not to

apply such regulation, the Committee

recommended only one of the 9 raisin

varietal types defined under the

marketing order for volume control

regulation this season.

As mentioned earlier, the

Department’s ‘‘Guidelines for Fruit,

Vegetable, and Speciality Crop

Marketing Orders’’ specify that 110

percent of recent years’ sales should be

made available to primary markets each

season before recommendations for

volume regulation are approved. The

quantity available under this rule is 129

percent of the quantity shipped in 1995.

The free and reserve percentages

established by this rule release the full

trade demand and apply uniformly to

all handlers in the industry, regardless

of size. There are no known additional

costs incurred by small handlers that are

not incurred by large handlers. The

stabilizing effects of the percentages

impact all handlers positively by

helping them maintain and expand

markets, despite seasonal supply

fluctuations. Likewise, price stability

positively impacts all producers by

allowing them to better anticipate the

revenues their raisins will generate.

While the level of benefits of this

rulemaking are difficult to quantify, the

stabilizing effects of the volume

regulations impact both small and large

handlers positively by helping them

maintain markets even though raisin

supplies fluctuate widely from season to

season.

There are some reporting,

recordkeeping and other compliance

requirements under the marketing order.

The reporting and recordkeeping

burdens are necessary for compliance

purposes and for developing statistical

data for maintenance of the program.

The forms require information which is

readily available from handler records

and which can be provided without data

processing equipment or trained

statistical staff. As with other, similar

marketing order programs, reports and

forms are periodically studied to reduce

or eliminate duplicate information

collection burdens by industry and

public sector agencies. This interim

final rule does not change those

requirements.

The Department has not identified

any relevant Federal rules that

duplicate, overlap, or conflict with this

regulation.

A 30-day comment period is provided

to allow interested persons to respond

to this rule. All written comments

received within the comment period

regarding this action or its effect on

small business entities will be

considered prior to finalization of this

rule.

After consideration of all relevant

material 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 relevant provisions of

this part require that the percentages

designated herein for the 1996–97 crop

year apply to all Natural (sun-dried)

Seedless raisins acquired from the

beginning of that crop year; (2) handlers

are currently marketing 1996–97 crop

raisins of the Natural (sun-dried)

Seedless varietal type and this action

should be taken promptly to achieve the

intended purpose of making the full

trade demand quantity computed by the

Committee available to handlers; (3)

handlers are aware of this action, which

the Committee unanimously

recommended at an open meeting, and

need no additional time to comply with

these percentages; and (4) this interim

final rule provides a 30-day comment

period and any comments received will

be considered prior to finalization of

this interim final rule.

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 to

read as follows:

PART 989—RAISINS PRODUCED

FROM GRAPES GROWN IN

CALIFORNIA

1. The authority citation for 7 CFR

part 989 continues to read as follows:

Authority: 7 U.S.C. 601–674.

2. Section 989.250 is added to

Subpart—Supplementary Regulations to

read as follows:

Note: This section will not appear in the

Code of Federal Regulations.

§ 989.250 Final free and reserve

percentages for the 1996–97 crop year.

The final percentages for standard

Natural (sun-dried) Seedless raisins
Federal Register / Vol. 62, No. 71 / Monday, April 14, 1997 / Rules and Regulations 18033

acquired by handlers during the crop

year beginning on August 1, 1996,

which shall be free tonnage and reserve

tonnage, respectively, are designated as

follows:

Varietal type

Free

percentage

Reserve

percentage

Natural (sun-dried) Seedless ................................ 86 14

Dated: April 7, 1997.

Robert C. Keeney,

Director, Fruit and Vegetable Division.

[FR Doc. 97–9476 Filed 4–11–97; 8:45 am]

BILLING CODE 3410–02–M

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1208

[FV–97–701FR]

Fresh Cut Flowers and Fresh Cut

Greens Promotion and Information

Order; Referendum Procedures

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Final rule.

SUMMARY: This rule provides procedures

that the Department of Agriculture

(Department) will use in conducting the

referendum to determine whether to

continue the Fresh Cut Flowers and

Fresh Cut Greens Promotion and

Information Order (Order). In order to

continue, the program must be approved

by a simple majority of the qualified

handlers voting in the referendum.

EFFECTIVE DATE: This rule is effective

from May 14, 1997 through August 15,

1997.

FOR FURTHER INFORMATION CONTACT:

Sonia N. Jimenez, Research and

Promotion Branch, Fruit and Vegetable

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

Room 2535–S, Washington, DC 20090–

6456, telephone (202) 720–9916 or (888)

720–9917.

SUPPLEMENTARY INFORMATION: This rule

is issued under the Fresh Cut Flowers

and Fresh Cut Greens Promotion and

Information Act of 1993 (7 U.S.C. 6801

et seq.), hereinafter referred to as the

Act, and the Order.

This rule provides the procedures

under which the referendum will be

conducted.

Executive Order 12988

This rule has been reviewed under

Executive Order 12988, Civil Justice

Reform. It 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 8 of the Act, after an Order is

implemented, a person subject to the

Order may file a petition with the

Secretary stating that the Order or any

provision of the Order, or any obligation

imposed in connection with the Order,

is not in accordance with law and

requesting a modification of the Order

or an exemption from the Order. The

petitioner is afforded the opportunity

for a hearing on the petition. After such

hearing, the Secretary will make a ruling

on the petition. The Act provides that

the district courts of the United States

in any district in which a person who

is a petitioner resides or carries on

business are vested with jurisdiction to

review the Secretary’s ruling on the

petition, if a complaint for that purpose

is filed within 20 days after the date of

the entry of the ruling.

Executive Order 12866 and Regulatory

Flexibility Act

This rule has been determined not

significant for purposes of Executive

Order 12866, and therefore has not been

reviewed by the Office of Management

and Budget.

In accordance with the Regulatory

Flexibility Act (5 U.S.C. 601 et seq.), the

Agency has examined the impact of this

rule on small entities. Accordingly, we

have performed this Final Regulatory

Flexibility Analysis.

The Act, which authorizes the

creation of a generic program of

promotion and information for fresh cut

flowers and greens, became effective on

December 14, 1993.

Section 7 of the Act provides that the

Secretary of Agriculture (Secretary)

shall conduct a referendum not later

than 3 years after the issuance of an

order to ascertain whether the order

then in effect shall be continued. The

Order was issued on December 29, 1994.

Paragraph (a)(2) of section 7 of the Act

requires that the Order be approved by

a simple majority of all votes cast in the

referendum. In addition, paragraph (b)

of section 7 of the Act specifies that

each qualified handler eligible to vote in

the referendum shall be entitled to cast

one vote for each separate facility of the

person that is an eligible separate

facility. Eligible separate facility is

defined in paragraph (b)(2) of section 7

of the Act as a handling or marketing

facility of a qualified handler that is

physically located away from other

facilities of the qualified handler or that

the business function of the separate

facility is substantially different from

the functions of other facilities owned

or operated by the qualified handler and

the annual sales of cut flowers and cut

greens to retailers and exempt handlers

from the facility are $750,000 or more

annually.

Only those wholesale handlers

(including but not limited to, wholesale

jobbers, bouquet and floral article

manufacturers, auction houses that clear

the sale of cut flowers and greens, and

retail distribution centers), producers

and importers who have annual sales of

$750,000 or more of fresh cut flowers

and greens and who sell those products

to exempt handlers, retailers, or

consumers are considered qualified

handlers and assessed under the Order.

The referendum procedures provide

definitions of who is eligible to vote and

instructions for referendum agents

regarding subagents, publicity for the

referendum and the results, ballots,

voting, ballot handling and tabulation,

reporting, and confidentiality of

referendum materials. The

representative period for establishing

voter eligibility for the referendum will

be announced by the Secretary in a

separate referendum order published

later in the Federal Register.

There are approximately 525

wholesale handlers, 84 importers, and

83 producers who are qualified

handlers. Small agricultural service

firms, which include the qualified

handlers covered under the Order, have

been defined by the Small Business

Administration (SBA) (13 CFR 121.601)

as those whose annual receipts are less

than $5 million. Only 127 qualified

handlers have been identified to have $5

million in annual sales.

It is concluded that the majority of

qualified handlers may be classified as

small entities.

Statistics reported by the National

Agricultural Statistics Service show that

in 1995 sales of domestic cut flowers

and cut greens totaled approximately

$521.3 million at the wholesale level.

The leading producing states by

wholesale value are California, with

about 49 percent of the total of flower

and cut green production, followed by

Florida, Colorado and Hawaii. Sales

information for 1996 will not be

available until after publication of this

rule.

Exports in 1996 of U.S. cut flowers

were valued at $29.4 million, with about

52 percent of the value from exports to

Canada, and 16 percent from exports to

the Netherlands, about 14 percent from

exports to Germany, and 13 percent