80_FR_27335 80 FR 27243 - Grapes Grown in a Designated Area of Southeastern California; Increased Assessment Rate

80 FR 27243 - Grapes Grown in a Designated Area of Southeastern California; Increased Assessment Rate

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 80, Issue 92 (May 13, 2015)

Page Range27243-27245
FR Document2015-11468

This rule implements a recommendation from the California Desert Grape Administrative Committee for an increase of the assessment rate established for the 2015 and subsequent fiscal periods from $0.0200 to $0.0250 per 18-pound lug of grapes handled under the marketing order. The Committee locally administers the order and is comprised of producers and handlers of grapes grown and handled in a designated area of southeastern California. Assessments upon grape handlers are used by the Committee to fund reasonable and necessary expenses of the program. The fiscal period began on January 1 and ends December 31. The assessment rate will remain in effect indefinitely unless modified, suspended, or terminated.

Federal Register, Volume 80 Issue 92 (Wednesday, May 13, 2015)
[Federal Register Volume 80, Number 92 (Wednesday, May 13, 2015)]
[Rules and Regulations]
[Pages 27243-27245]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-11468]



========================================================================
Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 
Prices of new books are listed in the first FEDERAL REGISTER issue of each 
week.

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Federal Register / Vol. 80, No. 92 / Wednesday, May 13, 2015 / Rules 
and Regulations

[[Page 27243]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 925

[Doc. No. AMS-FV-14-0106; FV15-925-2 FR]


Grapes Grown in a Designated Area of Southeastern California; 
Increased Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This rule implements a recommendation from the California 
Desert Grape Administrative Committee for an increase of the assessment 
rate established for the 2015 and subsequent fiscal periods from 
$0.0200 to $0.0250 per 18-pound lug of grapes handled under the 
marketing order. The Committee locally administers the order and is 
comprised of producers and handlers of grapes grown and handled in a 
designated area of southeastern California. Assessments upon grape 
handlers are used by the Committee to fund reasonable and necessary 
expenses of the program. The fiscal period began on January 1 and ends 
December 31. The assessment rate will remain in effect indefinitely 
unless modified, suspended, or terminated.

DATES: Effective Date: May 14, 2015.

FOR FURTHER INFORMATION CONTACT: Kathie Notoro, Marketing Specialist, 
or Martin Engeler, Regional Director, California Marketing Field 
Office, Marketing Order and Agreement Division, Fruit and Vegetable 
Program, AMS, USDA; Telephone: (559) 487-5901, Fax: (559) 487-5906, or 
Email: [email protected] or [email protected].
    Small businesses may request information on complying with this 
regulation by contacting Jeffrey Smutny, Marketing Order and Agreement 
Division, Fruit and Vegetable Program, AMS, USDA, 1400 Independence 
Avenue SW., STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-
2491, Fax: (202) 720-8938, or Email: [email protected].

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing Order 
No. 925 (7 CFR part 925), regulating the handling of grapes grown in a 
designated area of southeastern California, hereinafter referred to as 
the ``order.'' The order is effective under the Agricultural Marketing 
Agreement Act of 1937, as amended (7 U.S.C. 601-674), hereinafter 
referred to as the ``Act.''
    The Department of Agriculture (USDA) is issuing this rule in 
conformance with Executive Orders 12866, 13563, and 13175.
    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. Under the marketing order now in effect, grape handlers 
in a designated area of southeastern California are subject to 
assessments. Funds to administer the order are derived from such 
assessments. It is intended that the assessment rate as issued herein 
would be applicable to all assessable grapes beginning on January 1, 
2015, and continue until amended, suspended, or terminated.
    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 increases the assessment rate established for the 
Committee for the 2015 and subsequent fiscal periods from $0.0200 to 
$0.0250 per 18-pound lug of grapes handled.
    The grape 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 grapes grown in a designated 
area of southeastern California. They are familiar with the Committee's 
needs and with the costs of goods and services in their local area and 
are thus in a position to formulate an appropriate budget and 
assessment rate. The assessment rate is formulated and discussed in a 
public meeting. Thus, all directly affected persons have an opportunity 
to participate and provide input.
    For the 2014 and subsequent fiscal periods, the Committee 
recommended, and the USDA approved, an assessment rate that would 
continue in effect from fiscal period to fiscal period unless modified, 
suspended, or terminated by USDA based upon recommendation and 
information submitted by the Committee or other information available 
to USDA.
    The Committee met on October 30, 2014, and unanimously recommended 
2015 expenditures of $135,500, a contingency reserve fund of $9,500, 
and an assessment rate of $0.0250 per 18-pound lug of grapes handled. 
In comparison, last year's budgeted expenditures were $110,000. The 
Committee recommended a crop estimate of 5,800,000 18-pound lugs, which 
is higher than the 5,500,000 18-pound lugs handled last year. The 
Committee also recommended carrying over a financial reserve of 
$40,000, which would increase to $49,500 if the contingency fund is not 
expended. The assessment rate of $0.0250 per 18-pound lug of grapes 
handled recommended by the Committee is $0.0050 higher than the $0.0200 
rate currently in effect. The higher assessment rate, applied to 
shipments of 5,800,000 18-pound lugs, is expected to generate $145,000 
in revenue and be sufficient to cover the anticipated expenses.
    The major expenditures recommended by the Committee for the 2015 
fiscal period include $15,500 for research, $17,000 for general office 
expenses, $62,750 for management and compliance expenses, $25,000 for 
consultation services, and $9,500 for a contingency reserve. The 
$15,500 research project is a continuation of a

[[Page 27244]]

vine study in progress by the University of California, Riverside. In 
comparison, major expenditures for the 2014 fiscal period included 
$15,500 for research, $22,000 for general office expenses, and $62,500 
for management and compliance expenses. Overall 2015 expenditures 
include an increase in management and compliance expenses and a 
decrease in general office expenses and additional funds for a 
contingency reserve.
    The assessment rate recommended by the Committee was derived by 
evaluating several factors, including estimated shipments for the 2015 
season, budgeted expenses, and the level of available financial 
reserves. The Committee determined that the $0.0250 assessment rate 
should generate $145,000 in revenue to cover the budgeted expenses of 
$135,500, and a contingency reserve fund of $9,500.
    Reserve funds by the end of 2015 are projected to be $40,000 if the 
$9,500 added to the contingency fund is expended or $49,500 if it is 
not expended. Both amounts are well within the amount authorized under 
the order. Section 925.41 of the order permits the Committee to 
maintain approximately one fiscal period's expenses in reserve.
    The assessment rate established in this rule will continue in 
effect indefinitely unless modified, suspended, or terminated by USDA 
based upon recommendation and information submitted by the Committee or 
other available information.
    Although this assessment rate will be in effect 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 USDA. 
Committee meetings are open to the public and interested persons may 
express their views at these meetings. USDA will evaluate the 
Committee's 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 
2015 budget and those for subsequent fiscal periods will be reviewed 
and, as appropriate, approved by USDA.

Final Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS) 
has considered the economic impact of this rule 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 
businesses 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.
    There are approximately 14 handlers of southeastern California 
grapes who are subject to regulation under the marketing order and 
about 41 grape producers in the production area. Small agricultural 
service firms are defined by the Small Business Administration (13 CFR 
121.201) as those having annual receipts of less than $7,000,000, and 
small agricultural producers are defined as those whose annual receipts 
are less than $750,000. Eleven of the 14 handlers subject to regulation 
have annual grape sales of less than $7,000,000, according to USDA 
Market News Service and Committee data. In addition, information from 
the Committee and USDA's Market News indicates that at least 10 of 41 
producers have annual receipts of less than $750,000. Thus, it may be 
concluded that a majority of the grape handlers regulated under the 
order and about 10 of the producers could be classified as small 
entities under the Small Business Administration's definitions.
    This rule increases the assessment rate established for the 
Committee and collected from handlers for the 2015 and subsequent 
fiscal periods from $0.0200 to $0.0250 per 18-pound lug of grapes. The 
Committee unanimously recommended 2015 expenditures of $135,500, a 
contingency reserve fund of $9,500, and an assessment rate of $0.0250 
per 18-pound lug of grapes handled. The assessment rate of $0.0250 is 
$0.0050 higher than the 2014 rate. The quantity of assessable grapes 
for the 2015 season is estimated at 5,800,000 18-pound lugs. Thus, the 
$0.0250 rate should generate $145,000 in income. In addition, reserve 
funds at the end of the year are projected to be $49,500, which is well 
within the order's limitation of approximately one fiscal period's 
expenses.
    The major expenditures recommended by the Committee for the 2015 
fiscal period include $15,500 for research, $17,000 for general office 
expenses, $62,750 for management and compliance expenses, $25,000 for 
consultation services and $9,500 for the contingency reserve. In 
comparison, major expenditures for the 2014 fiscal period included 
$15,500 for research, $22,000 for general office expenses, $62,500 for 
management and compliance expenses and $10,000 for the contingency 
reserve. Overall expenditures included an increase in management and 
compliance expenses, a decrease in general office expenses, and funding 
of a contingency reserve.
    Prior to arriving at this budget and assessment rate, the Committee 
considered alternative expenditures and assessment rates to include not 
increasing the $0.0200 assessment rate. Based on a crop estimate of 
5,800,000 18-pound lugs, the Committee ultimately determined that 
increasing the assessment rate to $0.0250 would generate sufficient 
funds to cover budgeted expenses. Reserve funds at the end of the 2015 
fiscal period are projected to be $40,000 if the $9,500 contingency 
fund is expended or $49,500 if it is not expended. These amounts are 
well within the amount authorized under the order.
    A review of historical crop and price information, as well as 
preliminary information pertaining to the upcoming fiscal period, 
indicates that the producer price for the 2014 season averaged about 
$22.00 per 18-pound lug of California grapes handled. If the 2015 
producer price is similar to the 2014 price, estimated assessment 
revenue as a percentage of total estimated producer revenue would be 
0.11 percent for the 2015 season ($0.0250 divided by $22.00 per 18-
pound lug).
    This action increases the assessment obligation imposed on 
handlers. While assessments impose some additional costs on handlers, 
the costs are minimal and uniform on all handlers. Some of the 
additional costs may be passed on to producers. However, these costs 
are offset by the benefits derived from the operation of the marketing 
order. In addition, the Executive Subcommittee and the Committee's 
meetings were widely publicized throughout the grape production area 
and all interested persons were invited to attend and participate in 
Committee deliberations on all issues. Like all Committee meetings, the 
October 30, 2014, meeting was a public meeting and all entities, both 
large and small, were able to express views on this issue.
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the order's information collection requirements have been 
previously approved by the Office of Management and Budget (OMB) and 
assigned OMB No. 0581-0189 Generic Fruit Crops. No changes in those

[[Page 27245]]

requirements as a result of this action are necessary. Should any 
changes become necessary, they would be submitted to OMB for approval.
    This rule imposes no additional reporting or recordkeeping 
requirements on either small or large California grape handlers. As 
with all Federal marketing order programs, reports and forms are 
periodically reviewed to reduce information requirements and 
duplication by industry and public sector agencies. As noted in the 
initial regulatory flexibility analysis, USDA has not identified any 
relevant Federal rules that duplicate, overlap, or conflict with this 
final rule.
    AMS is committed to complying with the E-Government Act to promote 
the use of the internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services, and for other purposes.
    A proposed rule concerning this action was published in the Federal 
Register on March 31, 2015 (80 FR 16998). Copies of the proposed rule 
were also mailed or sent via facsimile to all grape handlers. Finally, 
the proposal was made available through the internet by USDA and the 
Office of the Federal Register. A 15-day comment period ending April 
15, 2015, was provided for interested persons to respond to the 
proposal. No comments were received.
    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/MarketingOrdersSmallBusinessGuide. Any questions 
about the compliance guide should be sent to Jeffrey Smutny 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 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 2015 
fiscal period began on January 1, 2015, and the marketing order 
requires that the rate of assessment for each fiscal period apply to 
all assessable grapes handled during such fiscal period; (2) the 
Committee needs to have sufficient funds to pay its expenses, which are 
incurred on a continuous basis; and (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. Also, a 15-day comment period was provided for in the proposed 
rule and no comments were received.

List of Subjects in 7 CFR Part 925

    Grapes, Marketing agreements, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 925 is 
amended as follows:

PART 925--GRAPES GROWN IN A DESIGNATED AREA OF SOUTHEASTERN 
CALIFORNIA

0
1. The authority citation for 7 CFR part 925 continues to read as 
follows:

    Authority:  7 U.S.C. 601-674.

0
2. Section 925.215 is revised to read as follows:


Sec.  925.215  Assessment rate.

    On and after January 1, 2015, an assessment rate of $0.0250 per 18-
pound lug is established for grapes grown in a designated area of 
southeastern California.

    Dated: May 7, 2015.
Rex A. Barnes,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2015-11468 Filed 5-12-15; 8:45 am]
 BILLING CODE P



                                                                                                                                                                                                 27243

                                                  Rules and Regulations                                                                                         Federal Register
                                                                                                                                                                Vol. 80, No. 92

                                                                                                                                                                Wednesday, May 13, 2015



                                                  This section of the FEDERAL REGISTER                    Division, Fruit and Vegetable Program,                   The grape order provides authority for
                                                  contains regulatory documents having general            AMS, USDA, 1400 Independence                          the Committee, with the approval of
                                                  applicability and legal effect, most of which           Avenue SW., STOP 0237, Washington,                    USDA, to formulate an annual budget of
                                                  are keyed to and codified in the Code of                DC 20250–0237; Telephone: (202) 720–                  expenses and collect assessments from
                                                  Federal Regulations, which is published under           2491, Fax: (202) 720–8938, or Email:                  handlers to administer the program. The
                                                  50 titles pursuant to 44 U.S.C. 1510.
                                                                                                          Jeffrey.Smutny@ams.usda.gov.                          members of the Committee are
                                                  The Code of Federal Regulations is sold by              SUPPLEMENTARY INFORMATION:       This rule            producers and handlers of grapes grown
                                                  the Superintendent of Documents. Prices of              is issued under Marketing Order No.                   in a designated area of southeastern
                                                  new books are listed in the first FEDERAL               925 (7 CFR part 925), regulating the                  California. They are familiar with the
                                                  REGISTER issue of each week.
                                                                                                          handling of grapes grown in a                         Committee’s needs and with the costs of
                                                                                                          designated area of southeastern                       goods and services in their local area
                                                                                                          California, hereinafter referred to as the            and are thus in a position to formulate
                                                  DEPARTMENT OF AGRICULTURE                                                                                     an appropriate budget and assessment
                                                                                                          ‘‘order.’’ The order is effective under the
                                                                                                          Agricultural Marketing Agreement Act                  rate. The assessment rate is formulated
                                                  Agricultural Marketing Service                                                                                and discussed in a public meeting.
                                                                                                          of 1937, as amended (7 U.S.C. 601–674),
                                                                                                          hereinafter referred to as the ‘‘Act.’’               Thus, all directly affected persons have
                                                  7 CFR Part 925                                                                                                an opportunity to participate and
                                                                                                             The Department of Agriculture
                                                  [Doc. No. AMS–FV–14–0106; FV15–925–2                                                                          provide input.
                                                  FR]                                                     (USDA) is issuing this rule in
                                                                                                                                                                   For the 2014 and subsequent fiscal
                                                                                                          conformance with Executive Orders
                                                                                                                                                                periods, the Committee recommended,
                                                  Grapes Grown in a Designated Area of                    12866, 13563, and 13175.
                                                                                                                                                                and the USDA approved, an assessment
                                                  Southeastern California; Increased                         This rule has been reviewed under                  rate that would continue in effect from
                                                  Assessment Rate                                         Executive Order 12988, Civil Justice                  fiscal period to fiscal period unless
                                                                                                          Reform. Under the marketing order now                 modified, suspended, or terminated by
                                                  AGENCY:  Agricultural Marketing Service,
                                                                                                          in effect, grape handlers in a designated             USDA based upon recommendation and
                                                  USDA.
                                                                                                          area of southeastern California are                   information submitted by the
                                                  ACTION: Final rule.
                                                                                                          subject to assessments. Funds to                      Committee or other information
                                                  SUMMARY:   This rule implements a                       administer the order are derived from                 available to USDA.
                                                  recommendation from the California                      such assessments. It is intended that the                The Committee met on October 30,
                                                  Desert Grape Administrative Committee                   assessment rate as issued herein would                2014, and unanimously recommended
                                                  for an increase of the assessment rate                  be applicable to all assessable grapes                2015 expenditures of $135,500, a
                                                  established for the 2015 and subsequent                 beginning on January 1, 2015, and                     contingency reserve fund of $9,500, and
                                                  fiscal periods from $0.0200 to $0.0250                  continue until amended, suspended, or                 an assessment rate of $0.0250 per 18-
                                                  per 18-pound lug of grapes handled                      terminated.                                           pound lug of grapes handled. In
                                                  under the marketing order. The                             The Act provides that administrative               comparison, last year’s budgeted
                                                  Committee locally administers the order                 proceedings must be exhausted before                  expenditures were $110,000. The
                                                  and is comprised of producers and                       parties may file suit in court. Under                 Committee recommended a crop
                                                  handlers of grapes grown and handled                    section 608c(15)(A) of the Act, any                   estimate of 5,800,000 18-pound lugs,
                                                  in a designated area of southeastern                    handler subject to an order may file                  which is higher than the 5,500,000 18-
                                                  California. Assessments upon grape                      with USDA a petition stating that the                 pound lugs handled last year. The
                                                  handlers are used by the Committee to                   order, any provision of the order, or any             Committee also recommended carrying
                                                  fund reasonable and necessary expenses                  obligation imposed in connection with                 over a financial reserve of $40,000,
                                                  of the program. The fiscal period began                 the order is not in accordance with law               which would increase to $49,500 if the
                                                  on January 1 and ends December 31.                      and request a modification of the order               contingency fund is not expended. The
                                                  The assessment rate will remain in                      or to be exempted therefrom. Such                     assessment rate of $0.0250 per 18-pound
                                                  effect indefinitely unless modified,                    handler is afforded the opportunity for               lug of grapes handled recommended by
                                                  suspended, or terminated.                               a hearing on the petition. After the                  the Committee is $0.0050 higher than
                                                  DATES: Effective Date: May 14, 2015.                    hearing, USDA would rule on the                       the $0.0200 rate currently in effect. The
                                                  FOR FURTHER INFORMATION CONTACT:                        petition. The Act provides that the                   higher assessment rate, applied to
                                                  Kathie Notoro, Marketing Specialist, or                 district court of the United States in any            shipments of 5,800,000 18-pound lugs,
                                                  Martin Engeler, Regional Director,                      district in which the handler is an                   is expected to generate $145,000 in
                                                  California Marketing Field Office,                      inhabitant, or has his or her principal               revenue and be sufficient to cover the
                                                  Marketing Order and Agreement                           place of business, has jurisdiction to                anticipated expenses.
                                                  Division, Fruit and Vegetable Program,                  review USDA’s ruling on the petition,                    The major expenditures
asabaliauskas on DSK5VPTVN1PROD with RULES




                                                  AMS, USDA; Telephone: (559) 487–                        provided an action is filed not later than            recommended by the Committee for the
                                                  5901, Fax: (559) 487–5906, or Email:                    20 days after the date of the entry of the            2015 fiscal period include $15,500 for
                                                  Kathie.Notoro@ams.usda.gov or                           ruling.                                               research, $17,000 for general office
                                                  Martin.Engeler@ams.usda.gov.                               This rule increases the assessment                 expenses, $62,750 for management and
                                                     Small businesses may request                         rate established for the Committee for                compliance expenses, $25,000 for
                                                  information on complying with this                      the 2015 and subsequent fiscal periods                consultation services, and $9,500 for a
                                                  regulation by contacting Jeffrey Smutny,                from $0.0200 to $0.0250 per 18-pound                  contingency reserve. The $15,500
                                                  Marketing Order and Agreement                           lug of grapes handled.                                research project is a continuation of a


                                             VerDate Sep<11>2014   15:51 May 12, 2015   Jkt 235001   PO 00000   Frm 00001   Fmt 4700   Sfmt 4700   E:\FR\FM\13MYR1.SGM   13MYR1


                                                  27244             Federal Register / Vol. 80, No. 92 / Wednesday, May 13, 2015 / Rules and Regulations

                                                  vine study in progress by the University                considered the economic impact of this                contingency reserve. In comparison,
                                                  of California, Riverside. In comparison,                rule on small entities. Accordingly,                  major expenditures for the 2014 fiscal
                                                  major expenditures for the 2014 fiscal                  AMS has prepared this final regulatory                period included $15,500 for research,
                                                  period included $15,500 for research,                   flexibility analysis.                                 $22,000 for general office expenses,
                                                  $22,000 for general office expenses, and                   The purpose of the RFA is to fit                   $62,500 for management and
                                                  $62,500 for management and                              regulatory actions to the scale of                    compliance expenses and $10,000 for
                                                  compliance expenses. Overall 2015                       businesses subject to such actions in                 the contingency reserve. Overall
                                                  expenditures include an increase in                     order that small businesses will not be               expenditures included an increase in
                                                  management and compliance expenses                      unduly or disproportionately burdened.                management and compliance expenses,
                                                  and a decrease in general office                        Marketing orders issued pursuant to the               a decrease in general office expenses,
                                                  expenses and additional funds for a                     Act, and the rules issued thereunder, are             and funding of a contingency reserve.
                                                  contingency reserve.                                    unique in that they are brought about                    Prior to arriving at this budget and
                                                    The assessment rate recommended by                    through group action of essentially                   assessment rate, the Committee
                                                  the Committee was derived by                            small entities acting on their own                    considered alternative expenditures and
                                                  evaluating several factors, including                   behalf.                                               assessment rates to include not
                                                  estimated shipments for the 2015                           There are approximately 14 handlers                increasing the $0.0200 assessment rate.
                                                  season, budgeted expenses, and the                      of southeastern California grapes who                 Based on a crop estimate of 5,800,000
                                                  level of available financial reserves. The              are subject to regulation under the                   18-pound lugs, the Committee
                                                  Committee determined that the $0.0250                   marketing order and about 41 grape                    ultimately determined that increasing
                                                  assessment rate should generate                         producers in the production area. Small               the assessment rate to $0.0250 would
                                                  $145,000 in revenue to cover the                        agricultural service firms are defined by             generate sufficient funds to cover
                                                  budgeted expenses of $135,500, and a                    the Small Business Administration (13                 budgeted expenses. Reserve funds at the
                                                  contingency reserve fund of $9,500.                     CFR 121.201) as those having annual                   end of the 2015 fiscal period are
                                                    Reserve funds by the end of 2015 are                  receipts of less than $7,000,000, and                 projected to be $40,000 if the $9,500
                                                  projected to be $40,000 if the $9,500                   small agricultural producers are defined              contingency fund is expended or
                                                  added to the contingency fund is                        as those whose annual receipts are less               $49,500 if it is not expended. These
                                                  expended or $49,500 if it is not                        than $750,000. Eleven of the 14                       amounts are well within the amount
                                                  expended. Both amounts are well                         handlers subject to regulation have                   authorized under the order.
                                                  within the amount authorized under the                  annual grape sales of less than                          A review of historical crop and price
                                                  order. Section 925.41 of the order                      $7,000,000, according to USDA Market                  information, as well as preliminary
                                                  permits the Committee to maintain                       News Service and Committee data. In                   information pertaining to the upcoming
                                                  approximately one fiscal period’s                       addition, information from the                        fiscal period, indicates that the producer
                                                  expenses in reserve.                                    Committee and USDA’s Market News                      price for the 2014 season averaged about
                                                    The assessment rate established in                    indicates that at least 10 of 41 producers            $22.00 per 18-pound lug of California
                                                  this rule will continue in effect                       have annual receipts of less than                     grapes handled. If the 2015 producer
                                                  indefinitely unless modified,                           $750,000. Thus, it may be concluded                   price is similar to the 2014 price,
                                                  suspended, or terminated by USDA                        that a majority of the grape handlers                 estimated assessment revenue as a
                                                  based upon recommendation and                           regulated under the order and about 10                percentage of total estimated producer
                                                  information submitted by the                            of the producers could be classified as               revenue would be 0.11 percent for the
                                                  Committee or other available                            small entities under the Small Business               2015 season ($0.0250 divided by $22.00
                                                  information.                                            Administration’s definitions.                         per 18-pound lug).
                                                    Although this assessment rate will be                    This rule increases the assessment                    This action increases the assessment
                                                  in effect for an indefinite period, the                 rate established for the Committee and                obligation imposed on handlers. While
                                                  Committee will continue to meet prior                   collected from handlers for the 2015 and              assessments impose some additional
                                                  to or during each fiscal period to                      subsequent fiscal periods from $0.0200                costs on handlers, the costs are minimal
                                                  recommend a budget of expenses and                      to $0.0250 per 18-pound lug of grapes.                and uniform on all handlers. Some of
                                                  consider recommendations for                            The Committee unanimously                             the additional costs may be passed on
                                                  modification of the assessment rate. The                recommended 2015 expenditures of                      to producers. However, these costs are
                                                  dates and times of Committee meetings                   $135,500, a contingency reserve fund of               offset by the benefits derived from the
                                                  are available from the Committee or                     $9,500, and an assessment rate of                     operation of the marketing order. In
                                                  USDA. Committee meetings are open to                    $0.0250 per 18-pound lug of grapes                    addition, the Executive Subcommittee
                                                  the public and interested persons may                   handled. The assessment rate of $0.0250               and the Committee’s meetings were
                                                  express their views at these meetings.                  is $0.0050 higher than the 2014 rate.                 widely publicized throughout the grape
                                                  USDA will evaluate the Committee’s                      The quantity of assessable grapes for the             production area and all interested
                                                  recommendations and other available                     2015 season is estimated at 5,800,000                 persons were invited to attend and
                                                  information to determine whether                        18-pound lugs. Thus, the $0.0250 rate                 participate in Committee deliberations
                                                  modification of the assessment rate is                  should generate $145,000 in income. In                on all issues. Like all Committee
                                                  needed. Further rulemaking will be                      addition, reserve funds at the end of the             meetings, the October 30, 2014, meeting
                                                  undertaken as necessary. The                            year are projected to be $49,500, which               was a public meeting and all entities,
                                                  Committee’s 2015 budget and those for                   is well within the order’s limitation of              both large and small, were able to
                                                  subsequent fiscal periods will be                       approximately one fiscal period’s                     express views on this issue.
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                                                  reviewed and, as appropriate, approved                  expenses.                                                In accordance with the Paperwork
                                                  by USDA.                                                   The major expenditures                             Reduction Act of 1995 (44 U.S.C.
                                                                                                          recommended by the Committee for the                  Chapter 35), the order’s information
                                                  Final Regulatory Flexibility Analysis                   2015 fiscal period include $15,500 for                collection requirements have been
                                                    Pursuant to requirements set forth in                 research, $17,000 for general office                  previously approved by the Office of
                                                  the Regulatory Flexibility Act (RFA) (5                 expenses, $62,750 for management and                  Management and Budget (OMB) and
                                                  U.S.C. 601–612), the Agricultural                       compliance expenses, $25,000 for                      assigned OMB No. 0581–0189 Generic
                                                  Marketing Service (AMS) has                             consultation services and $9,500 for the              Fruit Crops. No changes in those


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                                                                    Federal Register / Vol. 80, No. 92 / Wednesday, May 13, 2015 / Rules and Regulations                                           27245

                                                  requirements as a result of this action                 unanimously recommended by the                        and is comprised of producers of
                                                  are necessary. Should any changes                       Committee at a public meeting and is                  spearmint oil operating in the Far West.
                                                  become necessary, they would be                         similar to other assessment rate actions              The Far West includes the states of
                                                  submitted to OMB for approval.                          issued in past years. Also, a 15-day                  Washington, Idaho, and Oregon, and
                                                     This rule imposes no additional                      comment period was provided for in the                designated parts of Nevada and Utah.
                                                  reporting or recordkeeping requirements                 proposed rule and no comments were                    This rule establishes salable quantities
                                                  on either small or large California grape               received.                                             and allotment percentages for Class 1
                                                  handlers. As with all Federal marketing                                                                       (Scotch) spearmint oil of 1,265,853
                                                  order programs, reports and forms are                   List of Subjects in 7 CFR Part 925
                                                                                                                                                                pounds and 60 percent, respectively,
                                                  periodically reviewed to reduce                           Grapes, Marketing agreements,                       and for Class 3 (Native) spearmint oil of
                                                  information requirements and                            Reporting and recordkeeping                           1,341,269 pounds and 56 percent,
                                                  duplication by industry and public                      requirements.                                         respectively. The Committee
                                                  sector agencies. As noted in the initial                  For the reasons set forth in the                    recommended these quantities to help
                                                  regulatory flexibility analysis, USDA                   preamble, 7 CFR part 925 is amended as                maintain stability in the spearmint oil
                                                  has not identified any relevant Federal                 follows:                                              market.
                                                  rules that duplicate, overlap, or conflict
                                                                                                                                                                DATES: Effective Date: May 14, 2015.
                                                  with this final rule.                                   PART 925—GRAPES GROWN IN A
                                                     AMS is committed to complying with                                                                         FOR FURTHER INFORMATION CONTACT:
                                                                                                          DESIGNATED AREA OF
                                                  the E-Government Act to promote the                     SOUTHEASTERN CALIFORNIA                               Barry Broadbent, Marketing Specialist,
                                                  use of the internet and other                                                                                 or Gary Olson, Regional Director,
                                                  information technologies to provide                     ■ 1. The authority citation for 7 CFR                 Northwest Marketing Field Office,
                                                  increased opportunities for citizen                     part 925 continues to read as follows:                Marketing Order and Agreement
                                                  access to Government information and                        Authority: 7 U.S.C. 601–674.
                                                                                                                                                                Division, Fruit and Vegetable Program,
                                                  services, and for other purposes.                                                                             AMS, USDA; Telephone: (503) 326–
                                                                                                          ■ 2. Section 925.215 is revised to read
                                                     A proposed rule concerning this                                                                            2724, Fax: (503) 326–7440, or Email:
                                                                                                          as follows:
                                                  action was published in the Federal                                                                           Barry.Broadbent@ams.usda.gov or
                                                  Register on March 31, 2015 (80 FR                       § 925.215    Assessment rate.                         GaryD.Olson@ams.usda.gov.
                                                  16998). Copies of the proposed rule                       On and after January 1, 2015, an                       Small businesses may request
                                                  were also mailed or sent via facsimile to               assessment rate of $0.0250 per 18-pound               information on complying with this
                                                  all grape handlers. Finally, the proposal               lug is established for grapes grown in a              regulation by contacting Jeffrey Smutny,
                                                  was made available through the internet                 designated area of southeastern                       Marketing Order and Agreement
                                                  by USDA and the Office of the Federal                   California.                                           Division, Fruit and Vegetable Program,
                                                  Register. A 15-day comment period                                                                             AMS, USDA, 1400 Independence
                                                                                                            Dated: May 7, 2015.                                 Avenue SW., STOP 0237, Washington,
                                                  ending April 15, 2015, was provided for
                                                                                                          Rex A. Barnes,                                        DC 20250–0237; Telephone: (202) 720–
                                                  interested persons to respond to the
                                                  proposal. No comments were received.                    Associate Administrator, Agricultural                 2491, Fax: (202) 720–8938, or Email:
                                                     A small business guide on complying                  Marketing Service.                                    Jeffrey.Smutny@ams.usda.gov.
                                                  with fruit, vegetable, and specialty crop               [FR Doc. 2015–11468 Filed 5–12–15; 8:45 am]           SUPPLEMENTARY INFORMATION: This final
                                                  marketing agreements and orders may                     BILLING CODE P                                        rule is issued under Marketing Order
                                                  be viewed at: http://www.ams.usda.gov/                                                                        No. 985 (7 CFR part 985), as amended,
                                                  MarketingOrdersSmallBusinessGuide.                                                                            regulating the handling of spearmint oil
                                                  Any questions about the compliance                      DEPARTMENT OF AGRICULTURE                             produced in the Far West (Washington,
                                                  guide should be sent to Jeffrey Smutny                                                                        Idaho, Oregon, and designated parts of
                                                                                                          Agricultural Marketing Service
                                                  at the previously-mentioned address in                                                                        Nevada and Utah), hereinafter referred
                                                  the FOR FURTHER INFORMATION CONTACT                     7 CFR Part 985                                        to as the ‘‘order.’’ The order is effective
                                                  section.                                                                                                      under the Agricultural Marketing
                                                     After consideration of all relevant                  [Doc. No. AMS–FV–14–0096; FV15–985–1                  Agreement Act of 1937, as amended (7
                                                  material presented, including the                       FR]                                                   U.S.C. 601–674), hereinafter referred to
                                                  information and recommendation                                                                                as the ‘‘Act.’’
                                                  submitted by the Committee and other                    Marketing Order Regulating the                           The Department of Agriculture
                                                  available information, it is hereby found               Handling of Spearmint Oil Produced in                 (USDA) is issuing this rule in
                                                  that this rule, as hereinafter set forth,               the Far West; Salable Quantities and                  conformance with Executive Orders
                                                  will tend to effectuate the declared                    Allotment Percentages for the 2015–                   12866, 13175, and 13563.
                                                  policy of the Act.                                      2016 Marketing Year                                      This final rule has been reviewed
                                                     Pursuant to 5 U.S.C. 553, it is also                 AGENCY:  Agricultural Marketing Service,              under Executive Order 12988, Civil
                                                  found and determined that good cause                    USDA.                                                 Justice Reform. This rule is not intended
                                                  exists for not postponing the effective                 ACTION: Final rule.                                   to have retroactive effect. Under the
                                                  date of this rule until 30 days after                                                                         order now in effect, salable quantities
                                                  publication in the Federal Register                     SUMMARY:   This rule implements a                     and allotment percentages may be
                                                  because: (1) The 2015 fiscal period                     recommendation from the Spearmint                     established for classes of spearmint oil
                                                  began on January 1, 2015, and the                       Oil Administrative Committee                          produced in the Far West. This rule will
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                                                  marketing order requires that the rate of               (Committee) to establish the quantity of              establish the quantity of spearmint oil
                                                  assessment for each fiscal period apply                 spearmint oil produced in the Far West,               produced in the Far West, by class,
                                                  to all assessable grapes handled during                 by class, that handlers may purchase                  which handlers may purchase from, or
                                                  such fiscal period; (2) the Committee                   from, or handle on behalf of, producers               handle on behalf of, producers during
                                                  needs to have sufficient funds to pay its               during the 2015–2016 marketing year,                  the 2015–2016 marketing year, which
                                                  expenses, which are incurred on a                       which begins on June 1, 2015. The                     begins on June 1, 2015.
                                                  continuous basis; and (3) handlers are                  Committee locally administers the Far                    The Act provides that administrative
                                                  aware of this action, which was                         West spearmint marketing order (order)                proceedings must be exhausted before


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Document Created: 2015-12-16 07:47:04
Document Modified: 2015-12-16 07:47:04
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
ContactKathie Notoro, Marketing Specialist, or Martin Engeler, Regional Director, California Marketing Field Office, Marketing Order and Agreement Division, Fruit and Vegetable Program, AMS, USDA; Telephone: (559) 487-5901, Fax: (559) 487-5906, or Email: [email protected] or [email protected]
FR Citation80 FR 27243 
CFR AssociatedGrapes; Marketing Agreements and Reporting and Recordkeeping Requirements

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