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

41298 

Vol. 73, No. 139 

Friday, July 18, 2008 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 983 

[Docket No. AO–FV–08–0147; AMS–FV–08– 

0051; FV08–983–1] 

Pistachios Grown in California; 

Hearing on Proposed Amendment of 

Marketing Order No. 983 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Notice of hearing on proposed 

rulemaking. 

SUMMARY: Notice is hereby given of a 

public hearing to receive evidence on 

proposed amendments to Marketing 

Order No. 983 (order), which regulates 

the handling of pistachios grown in 

California. The amendments are 

proposed by the Administrative 

Committee for Pistachios (Committee), 

which is responsible for local 

administration of the order. The 

proposed amendments would: Expand 

the production area covered under the 

order to include Arizona and New 

Mexico in addition to California; 

authorize the Committee to reimburse 

handlers for a portion of their 

inspection and certification costs in 

certain situations; authorize the 

Committee to recommend research 

projects; modify existing order 

authorities concerning aflatoxin and 

quality regulations; modify the authority 

for interhandler transfers of order 

obligations; redesignate several sections 

of the order; remove previously 

suspended order provisions, and make 

other related changes. 

In addition, the Agricultural 

Marketing Service (AMS) proposes to 

make any such additional changes as 

may be necessary to the order to 

conform to any amendment that may 

result from the hearing. The proposals 

are intended to improve the operation 

and functioning of the marketing order 

program. 

DATES: The hearing will be held on July 

29, 2008, in Fresno, California, 

beginning at 8:30 a.m. and ending at 

4:30 p.m. The hearing will continue, if 

necessary, on July 30, 2008, at 8:30 a.m. 

ADDRESSES: The hearing location is: 

Fresno County Farm Bureau, 1247 West 

Hedges Avenue, Fresno, CA 93728, 

Telephone: (559) 237–0263. 

FOR FURTHER INFORMATION CONTACT: 

Martin Engeler, Marketing Order 

Administration Branch, Fruit and 

Vegetable Programs, AMS, USDA, 2202 

Monterey Street, Suite 102–B, Fresno, 

California 93721; Telephone: (559) 487– 

5110, Fax: (559) 487–5906, or e-mail: 

Martin.Engeler@usda.gov; or Kathleen 

M. Finn, 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: 

Kathy.Finn@usda.gov. 

Small businesses may request 

information on this proceeding 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 

administrative action is instituted 

pursuant to the Agricultural Marketing 

Agreement Act of 1937, as amended (7 

U.S.C. 601–674), hereinafter referred to 

as the ‘‘Act.’’ This action is governed by 

the provisions of sections 556 and 557 

of title 5 of the United States Code and, 

therefore, is excluded from the 

requirements of Executive Order 12866. 

The Regulatory Flexibility Act (5 

U.S.C. 601–612) seeks to ensure that 

within the statutory authority of a 

program, the regulatory and 

informational requirements are tailored 

to the size and nature of small 

businesses. Interested persons are 

invited to present evidence at the 

hearing on the possible regulatory and 

informational impacts of the proposals 

on small businesses. 

The amendments proposed herein 

have been reviewed under Executive 

Order 12988, Civil Justice Reform. They 

are not intended to have retroactive 

effect. If adopted, the proposed 

amendments would not preempt any 

State or local laws, regulations, or 

policies, unless they present an 

irreconcilable conflict with the 

proposals. 

The Act provides that administrative 

proceedings must be exhausted before 

parties may file suit in court. Under 

section 608c(15)(A) of the Act, any 

handler subject to an order may file 

with USDA a petition stating that the 

order, any provision of the order, or any 

obligation imposed in connection with 

the order is not in accordance with law 

and request a modification of the order 

or to be exempted therefrom. A handler 

is afforded the opportunity for a hearing 

on the petition. 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 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. 

The hearing is called pursuant to the 

provisions of the Act and the applicable 

rules of practice and procedure 

governing the formulation of marketing 

agreements and orders (7 CFR part 900). 

The proposed amendments were 

recommended by the Committee and 

submitted to USDA on June 10, 2008. 

After reviewing the proposals and other 

information submitted by the 

Committee, USDA made a 

determination to schedule this matter 

for hearing. 

The proposed amendments include 

addition of new sections to the order 

which would result in numerical 

redesignation of several sections of the 

order. The proposed amendments 

recommended by the Committee are 

summarized below. 

1. Amend the order to expand the 

production area to include the States of 

Arizona and New Mexico. The 

production area covered under the order 

is currently limited to the State of 

California. This proposal would revise 

existing § 983.26, Production area, and 

redesignate it as § 983.25. It would also 

result in conforming changes being 

made to existing § 983.11, Districts; 

§ 983.21, Part and subpart; and existing 

§ 983.32, Establishment and 

membership. Existing sections 983.21 

and 983.32 would also be redesignated 

as § 983.20 and § 983.41, respectively. 

2. Amend the order to authorize the 

Committee to reimburse handlers for 

travel and shipping costs related to 

aflatoxin inspection, under certain 


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Federal Register / Vol. 73, No. 139 / Friday, July 18, 2008 / Proposed Rules 41299 

circumstances. This proposal would 

amend existing § 983.44, Inspection, 

certification and identification, and 

redesignate it as § 983.56. 

3. Amend the order to add a new 

§ 983.46, Research, that would authorize 

the Committee to engage in research 

projects with the approval of USDA. 

This proposed amendment would also 

require conforming changes to existing 

§ 983.34, Procedure, to establish voting 

requirements for Committee 

recommendations concerning research. 

It would also require conforming 

changes to existing § 983.46, 

Modification or suspension of 

regulations, and § 983.54, Contributions. 

The existing § 983.34, § 983.46, and 

§ 983.54 would also be redesignated as 

§ 983.43, § 983.59, and § 983.72, 

respectively. 

4. This proposal would amend the 

order to provide broad authority for 

aflatoxin regulations by revising existing 

§ 983.38, Aflatoxin levels, and 

redesignating it as § 983.50. This 

proposal would also require conforming 

changes to existing § 983.40, and 

redesignating that section as § 983.52. It 

would also require conforming changes 

to § 983.1, Accredited laboratory. 

5. This proposal would amend the 

order to provide broad authority for 

quality regulations by revising existing 

§ 983.39, Minimum quality levels, and 

redesignating it as § 983.51. It would 

also remove provisions from that section 

concerning specific quality regulations 

that are currently suspended. This 

amendment would also require 

conforming changes by removing 

currently suspended language in 

§ 983.6, Assessed weight; revising 

§ 983.7, Certified pistachios; removing 

existing § 982.19, Minimum quality 

requirements and § 983.20, Minimum 

quality certificate; revising existing 

§ 983.31, Shelled pistachios; revising 

existing § 983.41, Testing of minimal 

quantities, and removing currently 

suspended language in that section; 

revising existing § 983.42, Commingling; 

and revising existing § 983.45, 

Substandard pistachios. Sections 

983.31, 983.41, 983.42, and 983.45 

would be redesignated as sections 

983.30, 983.53, 983.54, and 983.57, 

respectively. 

6. This proposal would also amend 

the order to add a new § 983.58, 

Interhandler Transfers. This proposal 

would modify existing authority under 

the order by expanding the range of 

marketing order obligations that may be 

transferred between handlers when 

pistachios are transferred between 

handlers. This proposal would require a 

conforming change to existing § 983.53, 

Assessments, and would redesignate 

§ 983.53 as § 983.71. 

7. As a result of the proposed 

amendments and conforming changes to 

the order summarized above, numerous 

administrative changes to the order 

would also be required. Such changes 

include numerical redesignations to 

several sections of the order, changes to 

cross references of section numbers in 

regulatory text as a result of the 

numerical redesignations, and removal 

of obsolete provisions. In addition, a 

change would be made to amend 

existing § 983.70 and redesignate it as 

§ 983.92. 

In addition to the proposed 

amendments to the order, AMS 

proposes to make any such additional 

changes as may be necessary to the 

order to conform to any amendment that 

may result from the hearing. 

The public hearing is held for the 

purpose of: (i) Receiving evidence about 

the economic and marketing conditions 

which relate to the proposed 

amendments of the order; (ii) 

determining whether there is a need for 

the proposed amendments to the order; 

and (iii) determining whether the 

proposed amendments or appropriate 

modifications thereof will tend to 

effectuate the declared policy of the Act. 

Testimony is invited at the hearing on 

all the proposals and recommendations 

contained in this notice, as well as any 

appropriate modifications or 

alternatives. 

All persons wishing to submit written 

material as evidence at the hearing 

should be prepared to submit four 

copies of such material at the hearing 

and should have prepared testimony 

available for presentation at the hearing. 

From the time the notice of hearing is 

issued and until the issuance of a final 

decision in this proceeding, USDA 

employees involved in the decisional 

process are prohibited from discussing 

the merits of the hearing issues on an ex 

parte basis with any person having an 

interest in the proceeding. The 

prohibition applies to employees in the 

following organizational units: Office of 

the Secretary of Agriculture; Office of 

the Administrator, AMS; Office of the 

General Counsel, except any designated 

employee of the General Counsel 

assigned to represent the Committee in 

this proceeding; and the Fruit and 

Vegetable Programs, AMS. 

Procedural matters are not subject to 

the above prohibition and may be 

discussed at any time. 

List of Subjects in 7 CFR Part 983 

Pistachios, Marketing agreements and 

orders, Reporting and recordkeeping 

requirements. 

PART 983—PISTACHIOS GROWN IN 

CALIFORNIA 

1. The authority citation for 7 CFR 

part 983 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

2. Testimony is invited on the 

following proposals or appropriate 

alternatives or modifications to such 

proposals. 

Proposals submitted by the 

Administrative Committee for 

Pistachios: 

Proposal Number 1 

3. Revise § 983.11 (a) by adding a 

paragraph (4) following paragraph (3): 

§ 983.11 Districts. 

(a) * * * 

(4) District 4 consists of the States of 

Arizona and New Mexico. 

* * * * * 

4. In § 983.20, lift the suspension of 

December 10, 2007, remove § 983.20, 

redesignate existing § 983.21 as 

§ 983.20, and revise it to read as follows: 

§ 983.20 Part and subpart. 

Part means the order regulating the 

handling of pistachios grown in the 

States of California, Arizona and New 

Mexico, and all the rules, regulations 

and supplementary orders issued 

thereunder. The aforesaid order 

regulating the handling of pistachios 

grown in California, Arizona and New 

Mexico shall be a subpart of such part. 

5. Redesignate § 983.26 as § 983.25 

and revise it to read as follows: 

§ 983.25 Production area. 

Production Area means the States of 

California, Arizona, and New Mexico. 

6. Redesignate § 983.32 as § 983.41, 

remove the words ‘‘eleven (11)’’ from 

the introductory paragraph and add in 

their place the words ‘‘twelve (12),’’ and 

revise paragraph (b) to read as follows: 

§ 983.41 Establishment and membership. 

(a) * * * 

(b) Producers. Nine members shall 

represent producers. Producers within 

the respective districts shall nominate 

four producers from District 1, three 

producers from District 2, one producer 

from District 3, and one producer from 

District 4. The Secretary, upon 

recommendation of the committee, may 

reapportion producer representation 

among the districts to ensure proper 

representation. 

* * * * * 

Proposal Number 2 

7. Redesignate § 983.44 as § 983.56 

and revise it to read as follows: 


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§ 983.56 Inspection, certification and 

identification. 

Upon recommendation of the 

committee and approval of the 

Secretary, all pistachios that are 

required to be inspected and certified in 

accordance with this part, shall be 

identified by appropriate seals, stamps, 

tags, or other identification to be affixed 

to the containers by the handler. All 

inspections shall be at the expense of 

the handler, Provided, That for handlers 

making shipments from facilities 

located in an area where inspection 

costs for inspector travel and shipment 

of samples for aflatoxin testing would 

otherwise exceed the average of those 

same inspection costs for comparable 

handling operations located in Districts 

1 and 2, such handlers may be 

compensated by the committee for the 

difference between their respective 

inspection costs and such average, or as 

otherwise recommended by the 

committee and approved by the 

Secretary. 

Proposal Number 3 

8. Redesignate § 983.34 as § 983.43 

and revise paragraph (a) to read as 

follows: 

§ 983.43 Procedure. 

(a) Quorum. A quorum of the 

committee shall be any seven voting 

committee members. The vote of a 

majority of members present at a 

meeting at which there is a quorum 

shall constitute the act of the committee: 

Provided, That actions of the committee 

with respect to the following issues 

shall require twelve (12) concurring 

votes of the voting members regarding 

any recommendation to the Secretary 

for adoption or change in: 

(1) Quality levels; 

(2) Aflatoxin levels; 

(3) Research under § 983.46; and 

Provided further, That actions of the 

committee with respect to the following 

issues shall require eight (8) concurring 

votes of the voting members regarding 

recommendation to the Secretary for 

adoption or change in: 

(4) Inspection programs; 

(5) The establishment of the 

committee. 

* * * * * 

9. Redesignate existing § 983.46 as 

§ 983.59, add a new § 983.46, and revise 

§ 983.59 to read as follows: 

§ 983.46 Research. 

The committee, with the approval of 

the Secretary, may establish or provide 

for the establishment of projects 

involving research designed to assist or 

improve the efficient production and 

postharvest handling of quality 

pistachios. The committee, with the 

approval of the Secretary, may also 

establish or provide for the 

establishment of projects designed to 

determine the effects of pistachio 

consumption on human health and 

nutrition. Pursuant to § 983.43(a), such 

research projects may only be 

established with 12 concurring votes of 

the voting members of the committee. 

The expenses of such projects shall be 

paid from funds collected pursuant to 

§§ 983.71 and 983.72. 

* * * * * 

§ 983.59 Modification or suspension of 

regulations. 

(a) In the event that the committee, at 

any time, finds that by reason of 

changed conditions, any regulations 

issued pursuant to §§ 983.50 through 

983.58 should be modified or 

suspended, it shall, pursuant to 

§ 983.43, so recommend to the 

Secretary. 

(b) Whenever the Secretary finds from 

the recommendations and information 

submitted by the committee or from 

other available information, that a 

regulation should be modified, 

suspended, or terminated with respect 

to any or all shipments of pistachios in 

order to effectuate the declared policy of 

the Act, the Secretary shall modify or 

suspend such provisions. If the 

Secretary finds that a regulation 

obstructs or does not tend to effectuate 

the declared policy of the Act, the 

Secretary shall suspend or terminate 

such regulation. 

(c) The committee, with the approval 

of the Secretary, may issue rules and 

regulations implementing §§ 983.50 

through 983.58. 

10. Redesignate § 983.54 as § 983.72 

and revise it to read as follows: 

§ 983.72 Contributions. 

The committee may accept voluntary 

contributions but these shall only be 

used to pay for committee expenses 

unless specified in support of research 

under § 983.46. Furthermore, research 

contributions shall be free of additional 

encumbrances by the donor and the 

committee shall retain complete control 

of their use. 

Proposal Number 4 

11. In § 983.1, remove the words ‘‘for 

testing aflatoxin.’’

12. In § 983.38, lift the suspension of 

December 10, 2007, redesignate § 983.38 

as § 983.50, and revise it to read as 

follows: 

§ 983.50 Aflatoxin regulations. 

The committee shall establish, with 

the approval of the Secretary, such 

aflatoxin sampling, analysis, and 

inspection requirements applicable to 

pistachios to be shipped for domestic 

human consumption as will contribute 

to orderly marketing or be in the public 

interest. No handler shall ship, for 

human consumption, pistachios that 

exceed an aflatoxin level established by 

the committee and approved by the 

Secretary. All domestic shipments must 

be covered by an aflatoxin inspection 

certificate. 

13. In § 983.40, lift the suspension of 

December 10, 2007, redesignate § 983.40 

as § 983.52, and revise it to read as 

follows: 

§ 983.52 Failed lots/rework procedure. 

(a) Substandard pistachios. Each lot 

of substandard pistachios may be 

reworked to meet aflatoxin or quality 

requirements. The committee shall 

designate, with the Secretary’s approval, 

appropriate rework procedures. 

(b) Failed lot reporting. If a lot fails to 

meet the aflatoxin and/or the quality 

requirements of this part, a failed lot 

notification report shall be completed 

and sent to the committee within 10 

working days of the test failure. This 

form must be completed and submitted 

to the committee each time a lot fails 

either aflatoxin or quality testing. The 

accredited laboratories shall send the 

failed lot notification reports for 

aflatoxin tests to the committee, and the 

handler, under the supervision of an 

inspector, shall send the failed lot 

notification reports for the lots that do 

not meet the quality requirements to the 

committee. 

Proposal Number 5 

14. In § 983.6, lift the suspension of 

December 10, 2007, and revise the 

section to read as follows: 

§ 983.6 Assessed weight. 

Assessed weight means pounds of 

inshell pistachios, with the weight 

computed at 5 percent moisture, 

received for processing by a handler 

within each production year: Provided, 

That for loose kernels, the actual weight 

shall be multiplied by two to obtain an 

inshell weight; Provided further, That 

the assessed weight may be based upon 

quality requirements for inshell 

pistachios that may be recommended by 

the committee and approved by the 

Secretary. 

15. In § 983.7, lift the suspension of 

December 10, 2007, and revise the 

section to read as follows: 

§ 983.7 Certified pistachios. 

Certified pistachios are those that 

meet the inspection and certification 

requirements under this part. 


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16. In § 983.19, lift the suspension of 

December 10, 2007, and remove the 

section. 

17. In § 983.31, remove the 

suspension of December 10, 2007, 

redesignate § 983.31 as § 983.30, and 

revise it to read as follows: 

§ 983.30 Substandard pistachios. 

Substandard pistachios means 

pistachios, inshell or shelled, which do 

not meet regulations established 

pursuant to §§ 983.50 and 983.51. 

18. In § 983.39, lift the suspension of 

December 10, 2007, redesignate § 983.39 

as § 983.51, and revise it to read as 

follows: 

§ 983.51 Quality regulations. 

For any production year, the 

committee may establish, with the 

approval of the Secretary, such quality 

and inspection requirements applicable 

to pistachios to be shipped for domestic 

human consumption as will contribute 

to orderly marketing or be in the public 

interest. In such production year, no 

handler shall ship pistachios for 

domestic human consumption unless 

they meet the applicable requirements 

as evidenced by certification acceptable 

to the committee. 

19. In § 983.41, lift the suspension of 

December 10, 2007, redesignate § 983.41 

as § 983.53, and revise it to read as 

follows: 

§ 983.53 Testing of minimal quantities. 

(a) Aflatoxin. Handlers who handle 

less than 1 million pounds of assessed 

weight per year, have the option of 

utilizing both of the following methods 

for testing for aflatoxin: 

(1) The handler may have an 

inspector sample and test his or her 

entire inventory of hulled and dried 

pistachios for the aflatoxin certification 

before further processing. 

(2) The handler may segregate receipts 

into various lots at the handler’s 

discretion and have an inspector sample 

and test each specific lot. Any lots that 

have less than 15 ppb aflatoxin can be 

certified by an inspector to be negative 

as to aflatoxin. Any lots that are found 

to be above 15 ppb may be tested after 

reworking in the same manner as 

specified in § 983.50. 

(b) Quality. The committee may, with 

the approval of the Secretary, establish 

regulations regarding the testing of 

minimal quantities of pistachios for 

quality. 

20. In § 983.42, lift the suspension of 

December 10, 2007, redesignate § 983.42 

as § 983.54, and revise it to read as 

follows: 

§ 983.54 Commingling. 

Certified lots may be commingled 

with other certified lots, but the 

commingling of certified and uncertified 

lots shall cause the loss of certification 

for the commingled lots. 

21. In § 983.45, lift the suspension of 

December 10, 2007, redesignate § 983.45 

as § 983.57, and revise it to read as 

follows: 

§ 983.57 Substandard pistachios. 

The committee shall, with the 

approval of the Secretary, establish such 

reporting and disposition procedures as 

it deems necessary to ensure that 

pistachios which do not meet the 

aflatoxin and quality requirements 

established pursuant to §§ 983.50 and 

983.51 shall not be shipped for domestic 

human consumption. 

Proposal Number 6 

22. Redesignate § 983.53 as § 983.71 

and revise paragraph (a) to read as 

follows: 

§ 983.71 Assessments. 

(a) Each handler who receives 

pistachios for processing in each 

production year, except as provided in 

§ 983.58, shall pay the committee on 

demand, an assessment based on the pro 

rata share of the expenses authorized by 

the Secretary for that year attributable to 

the assessed weight of pistachios 

received by that handler in that year. 

* * * * * 

23. Redesignate existing § 983.58 as 

§ 983.80 and add a new § 983.58 as 

follows: 

§ 983.58 Interhandler transfers. 

Within the production area, any 

handler may transfer pistachios to 

another handler for additional handling, 

and any assessments, inspection 

requirements, aflatoxin testing 

requirements, and any other marketing 

order requirements with respect to 

pistachios so transferred may be 

assumed by the receiving handler. The 

committee, with the approval of the 

Secretary, may establish methods and 

procedures, including necessary reports, 

to maintain accurate records for such 

transfers. 

Proposal Number 7—Administrative 

Changes 

24. § 983.8 is revised to read as 

follows: 

§ 983.8 Committee. 

Committee means the Administrative 

Committee for Pistachios established 

pursuant to § 983.41. 

25. Redesignate § 983.33 as § 983.42 

and revise it by removing the word 

‘‘grower’’ and adding in its place the 

word ‘‘producer’’ in paragraph (a), 

removing the reference to ‘‘§ 983.32’’

and adding in its place the ‘‘§ 983.41’’

in paragraph (j), and by removing the 

reference to ‘‘§§ 983.32, 983.33, and 

983.34’’ and adding in its place 

‘‘§§ 983.41, 983.42, and 983.43’’ in 

paragraph (n). 

26. Redesignate § 983.56 as § 983.74 

and revise it by removing the reference 

to ‘‘§ 983.53’’ and adding in its place 

‘‘§ 983.71’’ in paragraph (a)(1). 

27. Redesignate § 983.57 as § 983.75 

and revise it to read as follows: 

§ 983.75 Implementation and amendments. 

The Secretary, upon the 

recommendation of a majority of the 

committee, may issue rules and 

regulations implementing or modifying 

§§ 983.64 through 983.74 inclusive. 

28. Redesignate § 983.65 as § 983.87 

and revise it to read as follows: 

§ 983.87 Effective time. 

The provisions of this part, as well as 

any amendments, shall become effective 

at such time as the Secretary may 

declare, and shall continue in force 

until terminated or suspended in one of 

the ways specified in § 983.88 or 983.89. 

29. Redesignate § 983.70 as 983.92 

and revise it to read as follows: 

§ 983.92 Exemption. 

Any handler may handle pistachios 

within the production area free of the 

requirements in §§ 983.50 through 

983.58 and 983.71 if such pistachios are 

handled in quantities not exceeding 

5,000 dried pounds during any 

production year. This section may be 

changed as recommended by the 

committee and approved by the 

Secretary. 

30. Redesignate the following sections 

as follows: 

Old section New section 

983.22 983.21 

983.23 983.22 

983.24 983.23 

983.25 983.24 

983.27 983.26 

983.28 983.27 

983.29 983.28 

983.30 983.29 

983.35 983.44 

983.36 983.45 

983.37 983.47 

983.43 983.55 

983.47 983.64 

983.48 983.65 

983.49 983.66 

983.50 983.67 

983.51 983.68 

983.52 983.70 

983.55 983.73 

983.59 983.81 

983.60 983.82 


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41302 Federal Register / Vol. 73, No. 139 / Friday, July 18, 2008 / Proposed Rules 

Old section New section 

983.61 983.83 

983.62 983.84 

983.63 983.85 

983.64 983.86 

983.66 983.88 

983.67 983.89 

983.68 983.90 

983.69 983.91 

Proposal Number 8 

Make such changes as may be 

necessary to the order to conform with 

any amendment that may result from 

the hearing. 

Dated: July 15, 2008. 

Lloyd C. Day, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. 08–1445 Filed 7–15–08; 4:25 pm] 

BILLING CODE 3410–02–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 989 

[Docket No. AMS–FV–08–0042; FV08–989–

2 PR] 

Raisins Produced From Grapes Grown 

in California; Use of Estimated Trade 

Demand To Compute Volume 

Regulation Percentages 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Proposed rule. 

SUMMARY: This rule invites comments 

on using an estimated trade demand 

figure to compute volume regulation 

percentages for 2008–09 crop Natural 

(sun-dried) Seedless (NS) raisins 

covered under the Federal marketing 

order for California raisins (order). The 

order regulates the handling of raisins 

produced from grapes grown in 

California and is administered locally 

by the Raisin Administrative Committee 

(Committee). This rule would provide 

parameters for implementing volume 

regulation for 2008–09 crop NS raisins, 

if supplies are short, for the purposes of 

maintaining a portion of the industry’s 

export markets and stabilizing the 

domestic market. 

DATES: Comments must be received by 

August 4, 2008. 

ADDRESSES: Interested persons are 

invited to submit written comments 

concerning this proposal. Comments 

must be sent to the Docket Clerk, 

Marketing Order Administration 

Branch, Fruit and Vegetable Programs, 

AMS, USDA, 1400 Independence 

Avenue, SW., STOP 0237, Washington, 

DC 20250–0237; Fax: (202) 720–8938; or 

Internet: http://www.regulations.gov. All 

comments should reference the docket 

number and the date and page number 

of this issue of the Federal Register and 

will be made 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: Rose 

M. Aguayo, Marketing Specialist, or 

Kurt J. Kimmel, Regional Manager, 

California Marketing Field Office, 

Marketing Order Administration 

Branch, Fruit and Vegetable Programs, 

AMS, USDA; Telephone: (559) 487–

5901, Fax: (559) 487–5906, or e-mail: 

Rose.Aguayo@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 

proposal 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 

(USDA) is issuing this rule in 

conformance with Executive Order 

12866. 

This proposal has been reviewed 

under Executive Order 12988, Civil 

Justice Reform. This rule is not intended 

to have retroactive effect. This proposal 

will not preempt any State or local laws, 

regulations, or policies, unless they 

present an irreconcilable conflict with 

this rule. 

The Act provides that administrative 

proceedings must be exhausted before 

parties may file suit in court. Under 

section 608c(15)(A) of the Act, any 

handler subject to an order may file 

with USDA a petition stating that the 

order, any provision of the order, or any 

obligation imposed in connection with 

the order is not in accordance with law 

and request a modification of the order 

or to be exempted therefrom. A handler 

is afforded the opportunity for a hearing 

on the petition. After the hearing, USDA 

would rule on the petition. The Act 

provides that the district court of the 

United States in any district in which 

the handler is an inhabitant, or has his 

or her principal place of business, has 

jurisdiction to review USDA’s ruling on 

the petition, provided an action is filed 

not later than 20 days after the date of 

the entry of the ruling. 

This proposal invites comments on 

using an estimated trade demand figure 

to compute volume regulation 

percentages for 2008–09 crop NS raisins 

covered under the order. This rule 

would provide parameters for 

implementing volume regulation for 

2008–09 crop NS raisins, if supplies are 

short, for the purposes of maintaining a 

portion of the industry’s export markets 

and stabilizing the domestic market. 

This action was unanimously 

recommended by the Committee at a 

meeting on April 3, 2008. 

Volume Regulation Authority 

The order provides authority for 

volume regulation designed to promote 

orderly marketing conditions, stabilize 

prices and supplies, and improve 

producer returns. When volume 

regulation is in effect, a certain 

percentage of the California raisin crop 

may be sold by handlers to any market 

(free tonnage), while the remaining 

percentage must be held by handlers in 

a reserve pool (reserve) for the account 

of the Committee. Reserve raisins are 

disposed of through certain programs 

authorized under the order. For 

instance, reserve raisins may be sold by 

the Committee to handlers for free use 

or to replace part of the free tonnage 

raisins they exported; used in diversion 

programs; carried over as a hedge 

against a short crop the following year; 

or disposed of in other outlets not 

competitive with those for free tonnage 

raisins, such as government purchase, 

distilleries, or animal feed. Net proceeds 

from sales of reserve raisins are 

distributed to the reserve pool’s equity 

holders, primarily producers. 

Section 989.54 of the order prescribes 

procedures and time frames to be 

followed in establishing volume 

regulation for each crop year, which 

runs from August 1 through July 31. The 

Committee must meet by August 15 to 

review data regarding raisin supplies. At 

that time, the Committee computes a 

trade demand for each varietal type of 

raisins for which a free tonnage 

percentage might be recommended. 

Trade demand is equal to 90 percent of 

the prior year’s domestic and export 

shipments, adjusted by subtracting 

carryin inventory from the prior year 

and adding a desirable carryout 

inventory for the end of the current 

year. 


rwilkins on PROD1PC63 with PROPOSALS