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Rules and Regulations Federal Register

54469 

Vol. 70, No. 178 

Thursday, September 15, 2005 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 993 

[Docket No. FV05–993–5 IFR] 

Dried Prunes Produced in California; 

Decreased Assessment Rate 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Interim final rule with request 

for comments. 

SUMMARY: This rule decreases the 

assessment rate established for the 

Prune Marketing Committee 

(committee) under Marketing Order No. 

993 for the 2005–06 and subsequent 

crop years from $6.00 to $0.65 per ton 

of salable dried prunes. The committee 

locally administers the marketing order 

which regulates the handling of dried 

prunes grown in California. 

Authorization to assess dried prune 

handlers enables the committee to incur 

expenses that are reasonable and 

necessary to administer the program. 

The crop year began August 1 and ends 

July 31. The assessment rate will remain 

in effect indefinitely unless modified, 

suspended, or terminated. 

DATES: September 16, 2005. Comments 

received by November 14, 2005, will be 

considered prior to issuance of a final 

rule. 

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 E-mail: 

moab.docketclerk@usda.gov, 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.ams.usda.gov/fv/moab.html. 

FOR FURTHER INFORMATION CONTACT: Toni 

Sasselli, Program Analyst, or Terry 

Vawter, Marketing Specialist, California 

Marketing Field Office, Fruit and 

Vegetable Programs, AMS, USDA; 

Telephone: (559) 487–5901; Fax (559) 

487–5906; or George Kelhart, Technical 

Advisor, Marketing Order 

Administration Branch, Fruit and 

Vegetable Programs, AMS, USDA, 1400 

Independence Avenue, SW., STOP 

0237, Washington, DC 20250–0237; 

Telephone: (202) 720–2491, Fax: (202) 

720–8938. 

Small businesses may request 

information on complying with this 

regulation by contacting Jay Guerber, 

Marketing Order Administration 

Branch, Fruit and Vegetable Programs, 

AMS, USDA, 1400 Independence 

Avenue, SW., STOP 0237, Washington, 

DC 20250–0237; Telephone: (202) 720– 

2491, Fax: (202) 720–8938, or E-mail: 

Jay.Guerber@usda.gov. 

SUPPLEMENTARY INFORMATION: This rule 

is issued under Marketing Agreement 

No. 110 and Marketing Order No. 993, 

both as amended (7 CFR part 993), 

regulating the handling of dried prunes 

grown in California, hereinafter referred 

to as the ‘‘order.’’ The marketing 

agreement and order are effective under 

the Agricultural Marketing Agreement 

Act of 1937, as amended (7 U.S.C. 601– 

674), hereinafter referred to as the 

‘‘Act.’’ 

The Department of Agriculture 

(USDA) is issuing this rule in 

conformance with Executive Order 

12866. 

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. Under the marketing order now 

in effect, California dried prune 

handlers are subject to assessments. 

Funds to administer the order are 

derived from such assessments. It is 

intended that the assessment rate as 

issued herein will be applicable to all 

assessable dried prunes beginning 

August 1, 2005, 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 decreases the assessment 

rate established for the committee for 

the 2005–06 and subsequent crop years 

from $6.00 to $0.65 per ton of salable 

dried prunes handled. 

The California dried prune 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 

dried prunes. 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 at least one 

public meeting. Thus, all directly 

affected persons have an opportunity to 

participate and provide input. 

For the 2004–05 and subsequent crop 

years the committee recommended, and 

USDA approved, an assessment rate that 

would continue in effect from crop year 

to crop year unless modified, 

suspended, or terminate by USDA upon 

recommendation and information 

submitted by the committee or other 

information available to USDA. 

The committee met on June 30, 2005, 

and unanimously recommended a 

decreased assessment rate of $0.65 per 

ton of salable dried prunes and a 

decreased level of expenses for the 

2005–06 crop year. The committee 

recommended a total budget of $89,090. 

54470 Federal Register / Vol. 70, No. 178 / Thursday, September 15, 2005 / Rules and Regulations 

The proposed assessment rate of $0.65 

per ton of salable dried prunes is $5.35 

lower than the rate currently in effect. 

The committee recommended a lower 

assessment rate based on an estimated 

production of 104,500 tons of salable 

dried prunes. The committee’s expenses 

are being reduced significantly from the 

2004–05 budget as the result of the 

August 1, 2005, suspension of the 

reporting and handling requirements 

under the order. The assessment rate of 

$0.65 per ton of salable dried prunes 

plus excess funds from the 2004–2005 

crop year are expected to provide 

sufficient funds for the committee’s 

reduced activities. 

In comparison, the actual 

expenditures for the 2004–05 crop year 

were $284,000 and the assessment rate 

was $6.00 per ton of salable prunes, 

based upon 47,203 salable tons. 

The following table compares the 

proposed major budget expenditures 

recommended by the committee on June 

30, 2005, and major budget 

expenditures in the 2004–05 budget. 

Budget expense categories 2004–05 2005–06 

Total Personnel Salaries ................................................................................................................................................. $208,335 $45,945 

Total Operating Expenses ............................................................................................................................................... 54,500 16,755 

Reserve for Contingencies .............................................................................................................................................. 21,165 26,390 

The assessment rate recommended by 

the committee was derived by dividing 

anticipated expenses by the estimated 

salable tons of California dried prunes. 

Production of dried prunes for the year 

is estimated to be 104,500 salable tons, 

which should provide $67,925 in 

assessment income. Income derived 

from handler assessments plus excess 

funds from the 2004–2005 crop year 

should be adequate to cover budgeted 

expenses. The committee is authorized 

to use excess assessment funds from the 

2004–05 crop year (currently estimated 

at $21,165) for up to 5 months beyond 

the end of the crop year to meet 2005–

06 crop year expenses. At the end of the 

5 months, the committee either refunds 

or credits excess funds to handlers 

(§ 993.81(c)). 

The assessment rate established in 

this rule will continue in effect 

indefinitely unless modified, 

suspended, or terminated by USDA 

upon recommendation and information 

submitted by the committee or other 

available information. 

Although this assessment rate is 

effective for an indefinite period, the 

committee will continue to meet prior to 

or during each crop year to recommend 

a budget of expenses and consider 

recommendations for modification of 

the assessment rate. The dates and times 

of committee meetings are available 

from the committee or USDA. 

Committee meetings are open to the 

public and interested persons may 

express their views at these meetings. 

USDA will evaluate committee 

recommendations and other available 

information to determine whether 

modification of the assessment rate is 

needed. Further rulemaking would be 

undertaken as necessary. The 

committee’s 2005–06 budget and those 

for subsequent crop years 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 1,100 

producers of dried prunes in the 

production area and approximately 22 

handlers subject to regulation under the 

marketing order. The Small Business 

Administration (13 CFR 121.201) 

defines small agricultural producers as 

those whose annual receipts are less 

than $750,000, and small agricultural 

service firms as those whose annual 

receipts are less than $6,000,000. 

Eight of the 22 handlers (36.4 percent) 

shipped over $6,000,000 of dried prunes 

and could be considered large handlers 

by the Small Business Administration. 

Fourteen of the 22 handlers (63.6 

percent) shipped under $6,000,000 of 

dried prunes and could be considered 

small handlers. An estimated 32 

producers, or less than 3 percent of the 

1,100 total producers, would be 

considered large producers with annual 

incomes over $750,000. The majority of 

handlers and producers of California 

dried prunes may be classified as small 

entities. 

The producer price for the 2005–06 

crop year is expected to average 

between $1,500 and $1,600 per ton of 

salable dried prunes. Based on an 

estimated 104,500 salable tons of dried 

prunes, assessment revenue as a 

percentage of producer prices during the 

2005–06 crop year is expected to be 

between .041 and .043 percent. 

This rule decreases the assessment 

rate established for the committee and 

collected from handlers for the 2005–06 

and subsequent crop years from $6.00 to 

$0.65 per ton of salable dried prunes. 

The committee unanimously 

recommended a 2005–06 total budget of 

$89,090 and a decreased assessment rate 

of $0.65 per ton of salable dried prunes 

at the meeting on June 30, 2005. The 

proposed recommended budget of 

$89,090 is significantly reduced for the 

2005–06 crop year as compared to 

previous crop years. The assessment 

rate of $0.65 per ton of salable dried 

prunes is $5.35 lower than the current 

rate. The quantity of salable dried 

prunes for the 2005–06 crop year is now 

estimated at 104,500 salable tons. 

The following table compares the 

proposed major budget expenditures 

recommended by the committee on June 

30, 2005, and major budget 

expenditures in the 2004–05 budget. 

Budget expense categories 2004–05 2005–06 

Total Personnel Salaries ..................................................................................................................................................... $208,335 $45,945 

Total Operating Expenses ................................................................................................................................................... 54,500 16,755 

Reserve for Contingencies .................................................................................................................................................. 21,165 26,390 

Federal Register / Vol. 70, No. 178 / Thursday, September 15, 2005 / Rules and Regulations 54471 

Prior to arriving at its budget of 

$89,090, the committee considered 

information from various sources, such 

as the committee’s Executive 

Subcommittee. An alternative to this 

action would be to continue with the 

$6.00 per ton assessment rate. However, 

an assessment rate of $0.65 per ton of 

salable dried prunes and excess funds 

from the 2004–2005 crop year will 

provide enough income to fund the 

committee’s reduced activities. 

Therefore, the Executive 

Subcommittee and committee agreed 

that $0.65 per ton of salable dried 

prunes is an acceptable assessment rate. 

The committee is authorized to use 

excess assessment funds from the 2004–

05 crop year (currently estimated at 

$21,165) for up to 5 months beyond the 

end of the crop year to meet 2003–04 

crop year expenses. At the end of the 5 

months, the committee either refunds or 

credits excess funds to handlers 

(§ 993.81(c)). 

This action decreases the assessment 

obligation imposed on handlers. 

Assessments are applied uniformly on 

all handlers, and some of the costs may 

be passed on to producers. However, 

decreasing the assessment rate reduces 

the burden on handlers, and may reduce 

the burden on producers. In addition, 

the committee’s meeting was widely 

publicized throughout the California 

dried prune industry and all interested 

persons were invited to attend the 

meeting and participate in committee 

deliberations on all issues. Like all 

committee meetings, the June 30, 2005, 

meeting was a public meeting and all 

entities, both large and small, were 

encouraged 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. 

This action imposes no additional 

reporting or recordkeeping requirements 

on either small or large California dried 

prune handlers. As with all Federal 

marketing order programs, reports and 

forms are periodically reviewed to 

reduce information requirements and 

duplication by industry and public 

sector agencies. 

USDA has not identified any relevant 

Federal rules that duplicate, overlap, or 

conflict with this rule. 

A small business guide on complying 

with fruit, vegetable, and specialty crop 

marketing agreements and orders may 

be viewed at: http://www.ams.usda.gov/ 

fv/moab/html. Any questions about the 

compliance guide should be sent to Jay 

Guerber at the previously mentioned 

address in the FOR FURTHER INFORMATION

CONTACT section. 

After consideration of all relevant 

material presented, including the 

information and recommendation 

submitted by the committee and other 

available information, it is hereby found 

that this rule, as hereinafter set forth, 

will tend to effectuate the declared 

policy of the Act. 

Pursuant to 5 U.S.C. 553, it 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 60 days after 

publication in the Federal Register 

because: (1) The 2005–06 crop year 

began on August 1, 2005, and the 

marketing order requires that the rate of 

assessment for each crop year apply to 

all assessable prunes handled during 

such crop year; (2) the assessment rate 

is considerably lower than that which is 

currently in effect; and (3) handlers are 

aware of this action, which was 

unanimously recommended by the 

committee at a public meeting; and (4) 

this interim final rule provides a 60-day 

comment period, and all comments 

timely received will be considered prior 

to finalization of this rule. 

List of Subjects in 7 CFR Part 993 

Marketing agreements, Plums, Prunes, 

Reporting and Recordkeeping 

requirements. 

■ For the reasons set forth in the 

preamble, 7 CFR part 993 is amended as 

follows: 

PART 993—DRIED PRUNES 

PRODUCED IN CALIFORNIA 

■ 1. The authority citation for 7 CFR 

part 993 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

■ 2. Section 993.347 is revised to read 

as follows: 

§ 993.347 Assessment rate. 

On and after August 1, 2005, an 

assessment rate of $0.65 per ton of 

salable dried prunes is established for 

California dried prunes. 

Dated: September 9, 2005. 

Lloyd C. Day, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. 05–18284 Filed 9–14–05; 8:45 am] 

BILLING CODE 3410–02–P 

FARM CREDIT ADMINISTRATION 

12 CFR Parts 607, 614, 615, and 620 

RIN 3052–AC09 

Assessment and Apportionment of 

Administrative Expenses; Loan 

Policies and Operations; Funding and 

Fiscal Affairs, Loan Policies and 

Operations; and Funding Operations; 

Disclosure to Shareholders; Capital 

Adequacy Risk-Weighting Revisions; 

Effective Date 

AGENCY: Farm Credit Administration. 

ACTION: Notice of effective date. 

SUMMARY: The Farm Credit 

Administration (FCA) published a final 

rule under parts 607, 614, 615, and 620 

on June 17, 2005 (70 FR 35336). This 

final rule changed our regulatory capital 

standards on recourse obligations, direct 

credit substitutes, residual interests, 

asset- and mortgage-backed securities, 

claims on securities firms, and certain 

residential loans. In accordance with 12 

U.S.C. 2252, the effective date of the 

final rule is 30 days from the date of 

publication in the Federal Register 

during which either or both Houses of 

Congress are in session. Based on the 

records of the sessions of Congress, the 

effective date of the regulation is 

September 8, 2005. 

EFFECTIVE DATE: The regulation 

amending 12 CFR parts 607, 614, 615, 

and 620 published on June 17, 2005 (70 

FR 35336) is effective September 8, 

2005. 

FOR FURTHER INFORMATION CONTACT: 

Robert Donnelly, Senior Accountant, 

Office of Regulatory Policy, Farm Credit 

Administration, McLean, VA 22102–

5090, (703) 883–4498, TTY (703) 883–

4434; or 

Jennifer A. Cohn, Senior Attorney, 

Office of General Counsel, Farm Credit 

Administration, McLean, VA 22102–

5090, (703) 883–4020, TTY (703) 883–

4020. 

(12 U.S.C. 2252(a)(9) and (10)) 

Dated: September 8, 2005. 

Jeanette C. Brinkley, 

Secretary, Farm Credit Administration Board. 

[FR Doc. 05–18285 Filed 9–14–05; 8:45 am] 

BILLING CODE 6705–01–P