80_FR_53192 80 FR 53022 - Raisins Produced From Grapes Grown in California; Increased Assessment Rate

80 FR 53022 - Raisins Produced From Grapes Grown in California; Increased Assessment Rate

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 80, Issue 170 (September 2, 2015)

Page Range53022-53024
FR Document2015-21850

This proposed rule would implement a recommendation from the Raisin Administrative Committee (committee) to increase the assessment rate established for the 2015-16 and subsequent crop years from $14.00 to $17.00 per ton of California raisins handled under the marketing order (order). The committee locally administers the order and is comprised of producers and handlers of raisins operating within the area of production. Assessments upon raisin handlers are used by the committee to fund reasonable and necessary expenses of the program. The crop year begins August 1 and ends July 31. The assessment rate would remain in effect indefinitely unless modified, suspended, or terminated.

Federal Register, Volume 80 Issue 170 (Wednesday, September 2, 2015)
[Federal Register Volume 80, Number 170 (Wednesday, September 2, 2015)]
[Proposed Rules]
[Pages 53022-53024]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-21850]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 989

[Doc. No. AMS-FV-15-0032; FV15-989-2 PR]


Raisins Produced From Grapes Grown in California; Increased 
Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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

SUMMARY: This proposed rule would implement a recommendation from the 
Raisin Administrative Committee (committee) to increase the assessment 
rate established for the 2015-16 and subsequent crop years from $14.00 
to $17.00 per ton of California raisins handled under the marketing 
order (order). The committee locally administers the order and is 
comprised of producers and handlers of raisins operating within the 
area of production. Assessments upon raisin handlers are used by the 
committee to fund reasonable and necessary expenses of the program. The 
crop year begins August 1 and ends July 31. The assessment rate would 
remain in effect indefinitely unless modified, suspended, or 
terminated.

DATES: Comments must be received by October 2, 2015.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposed rule. Comments must be sent to the Docket 
Clerk, Marketing Order and Agreement Division, Fruit and Vegetable 
Program, AMS, USDA, 1400 Independence Avenue SW., STOP 0237, 
Washington, DC 20250-0237; Fax: (202) 720-8938, or Internet: http://www.regulations.gov. Comments should reference the docket number and 
the date and page number of this issue of the Federal Register and will 
be available for public inspection in the Office of the Docket Clerk 
during regular business hours, or can be viewed at: http://www.regulations.gov. All comments submitted in response to this 
proposed rule will be included in the record and will be made available 
to the public. Please be advised that the identity of the individuals 
or entities submitting the comments will be made public on the Internet 
at the address provided above.

FOR FURTHER INFORMATION CONTACT: Maria Stobbe, 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: 
Maria.Stobbe@ams.usda.gov or Martin.Engeler@ams.usda.gov.
    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: Jeffrey.Smutny@ams.usda.gov.

SUPPLEMENTARY INFORMATION: This proposed rule is issued under Marketing 
Agreement and Order No. 989, both as amended (7 CFR part 989), 
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 proposed rule 
in conformance with Executive Orders 12866, 13563, and 13175.
    This proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. Under the marketing order now in effect, 
California raisin handlers are subject to assessments. Funds to 
administer the order are derived from assessments. It is intended that 
the assessment rate as proposed herein would be applicable to all 
assessable raisins beginning on August 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 proposed rule would increase the assessment rate established 
by the committee for the 2015-16 and

[[Page 53023]]

subsequent crop years from $14.00 to $17.00 per ton of California 
raisins acquired by handlers.
    Sections 989.79 and 989.80, respectively, of the order provide 
authority for the committee, with the approval of USDA, to formulate an 
annual budget of expenses, and to collect assessments from handlers to 
administer the program. The members of the committee are producers and 
handlers of California raisins. They are familiar with the committee's 
needs and with costs for goods and services in their local area, and 
are, thus, in a position to formulate an appropriate budget and 
assessment rate. The assessment rate is formulated and discussed in a 
public meeting. Thus, all directly affected persons have an opportunity 
to participate and provide input.
    For the 2010-11 and subsequent crop years, the committee 
recommended, and USDA approved, an assessment rate that would continue 
in effect from crop year to crop year unless modified, suspended, or 
terminated by USDA upon recommendation and information submitted by the 
committee or other information available to USDA.
    The committee met on June 11, 2015, and recommended an assessment 
rate increase from $14.00 per ton to $17.00 per ton by a unanimous 
vote. At this meeting, the committee also recommended a budget for the 
2015-16 crop year, with recommended expenses and contingency reserve 
totaling $5,832,496. The vote on this recommendation was also 
unanimous. The proposed assessment rate of $17.00 per ton is expected 
to generate assessment income of $5,832,496, which would be sufficient 
to fund the recommended 2015-16 expenses.
    As previously stated, the committee's recommended budget for the 
2015-16 crop year is $5,832,496, and the recommended assessment rate is 
$17.00 per ton, which is $3.00 per ton higher than the rate currently 
in effect.
    The major expenditures recommended by the committee for the 2015-16 
crop year include: Salaries and employee-related costs of $1,402,906; 
administration costs of $610,000; compliance activities of $30,000; 
research and studies of $129,000; operation and maintenance of the 
generic marketing programs of $3,520,178; and a contingency of 
$355,503. Subtracted from these expenses is $215,091, which represents 
reimbursable costs for the shared management of the State marketing 
program.
    In comparison, last year's approved budgeted expenditures included: 
Salaries and employee-related costs of $1,337,100; administration costs 
of $493,500; compliance activities of $30,000; research and studies of 
$85,000; operation and maintenance of the generic marketing programs of 
$3,296,800; and a contingency of $100,000. Reimbursable costs for the 
shared management of the State marketing program of $166,860 were 
subtracted, resulting in a total approved budget for the 2014-15 crop 
year of $5,175,540.
    The committee believes that more funds should be spent in promoting 
raisins internationally, including China. For that reason, budgeted 
expenses in those endeavors have been increased: Research and studies 
increased from $85,000 for the 2014-15 crop year to $129,000 for the 
2015-16 crop year; and operation and maintenance of generic marketing 
programs increased from $3,296,800 for the 2014-15 crop year to 
$3,520,178 for the 2015-16 crop year. In addition, the committee 
included a contingency fund for unexpected expenses and opportunities 
that may occur during the year.
    The quantity of assessable raisins for 2015-16 crop year was 
estimated to be 343,088 tons. At the recommended assessment rate of 
$17.00 per ton, the anticipated assessment income would be $5,832,496. 
Sufficient income should be generated at the higher assessment rate for 
the committee to meet its anticipated expenses.
    Pursuant to Sec.  989.81(a) of the order, any unexpended assessment 
funds from the crop year must be credited or refunded to the handlers 
from whom collected.
    The proposed assessment rate would continue in effect indefinitely 
unless modified, suspended, or terminated by USDA upon recommendation 
and information submitted by the committee or other available 
information.
    Although this assessment rate would be in effect for an indefinite 
period, the committee would continue to meet prior to or during each 
crop year to recommend a budget of expenses and consider 
recommendations for modification of the assessment rate. The dates and 
times of committee meetings are available from the committee or USDA. 
Committee meetings are open to the public and interested persons may 
express their views at these meetings. USDA would evaluate committee 
recommendations and other available information to determine whether 
modification of the assessment rate is needed. Further rulemaking would 
be undertaken as necessary. The committee's 2015-16 budget, and those 
for subsequent crop years, would be reviewed and, as appropriate, 
approved by USDA.

Initial Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS) 
has considered the economic impact of this proposed rule on small 
entities. Accordingly, AMS has prepared this initial regulatory 
flexibility analysis.
    The purpose of the RFA is to fit regulatory actions to the scale of 
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 3,000 producers of California raisins and 
approximately 28 handlers subject to regulation under the marketing 
order. The Small Business Administration defines small agricultural 
producers as those having annual receipts less than $750,000, and 
defines small agricultural service firms as those whose annual receipts 
are less than $7,000,000. (13 CFR 121.201.)
    Based upon shipment data and other information provided by the 
committee, it may be concluded that a majority of producers and 
approximately 18 handlers of California raisins may be classified as 
small entities.
    This proposed rule would increase the assessment rate established 
for the committee and collected from handlers for the 2015-16 and 
subsequent crop years from $14.00 to $17.00 per ton of assessable 
raisins acquired by handlers.
    The committee reviewed and identified the expenses that would be 
reasonable and necessary to continue program operations during the 
2015-16 crop year. The resulting recommended budget totals $5,832,496 
for the 2015-16 crop year. This represents an overall increase from the 
2014-15 budget, which totaled $5,175,540. The 2015-16 budget includes 
additional proposed expenditures to fund increased promotional programs 
in export markets, and a contingency fund of $355,503, which provides a 
safety net to cover unexpected expenses and opportunities that present 
themselves during the 2015-16 crop year.
    The quantity of assessable raisins for 2015-16 crop year was 
estimated to be 343,088 tons. At the recommended assessment rate of 
$17.00 per ton, the anticipated assessment income would be $5,832,496. 
Sufficient income should

[[Page 53024]]

be generated at the higher assessment rate for the committee to meet 
its anticipated expenses.
    The major expenditures recommended by the committee for the 2015-16 
crop year include: Salaries and employee-related costs of $1,402,906; 
administration costs of $610,000; compliance activities of $30,000; 
research of $129,000; operation and maintenance of generic marketing 
programs of $3,520,178; and a contingency of $355,503.
    In comparison, last year's approved budgeted expenditures included: 
Salaries and employee-related costs of $1,337,100; administration costs 
of $493,500; compliance activities of $30,000; research of $85,000; 
operation and maintenance of generic marketing programs of $3,296,800; 
and a contingency of $100,000. The total budget approved for the 2014-
15 crop year was $5,175,540.
    The committee believes that more funds should be spent in promoting 
raisins internationally, including China. For that reason, expenses for 
research and promotion activities have been increased: Operation and 
maintenance of generic marketing programs increased from $3,296,800 for 
the 2014-15 crop year to $3,520,178 for the 2015-16 crop year, and 
research has increased from $85,000 for the 2014-15 crop year to 
$129,000 for the 2015-16 crop year. In order to fund these additional 
proposed expenditures, the committee recommended an increased 
assessment rate.
    Pursuant to Sec.  989.81(a) of the order, any unexpended assessment 
funds from the crop year must be credited or refunded to the handlers 
from whom collected.
    Prior to arriving at this budget and assessment rate, the committee 
considered information from various sources, such as the committee's 
Audit and Marketing Subcommittees. Alternative spending levels were 
discussed by the Marketing and Audit Subcommittees, which met on June 
8, 2015 and June 11, 2015, to review the committee's financial 
operations.
    The committee ultimately decided that the recommended budget and 
assessment rate were reasonable and necessary to properly administer 
the order.
    A review of statistical data on the California raisin industry 
indicates that assessment revenue has consistently been less than one 
percent of grower revenue in recent years. With a $17.00 assessment 
rate, assessment revenue would be expected to remain at less than one 
percent of grower revenue.
    Regarding the impact of this action on affected entities, this 
action would increase the assessment obligation imposed on handlers. 
While increased assessments impose additional costs on handlers 
regulated under the order, the rates are uniform on all handlers, and 
proportional to the size of their businesses. It is expected that these 
costs would be offset by the benefits derived from the operation of the 
order.
    In addition, the meetings of the Audit and Marketing Subcommittees, 
and the full committee were widely publicized throughout the California 
raisin industry, and all interested persons were invited to attend the 
meetings and encouraged to participate in committee deliberations on 
all issues. Like all subcommittee and committee meetings, the June 8, 
2015 and June 11, 2015, meetings were public meetings, and all 
entities, both large and small, were able to express views on this 
issue. Finally, interested persons are invited to submit comments on 
this proposed rule, including the regulatory and informational impacts 
of this action on small businesses.
    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. 0581-0178, ``Vegetable and Specialty Crops.'' No 
changes in those requirements as a result of this action are necessary. 
Should any changes become necessary, they would be submitted to OMB for 
approval.
    This proposed rule would impose no additional reporting or 
recordkeeping requirements on either small or large California raisin 
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.
    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.
    USDA has not identified any relevant Federal rules that duplicate, 
overlap, or conflict with this action.
    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.
    A 30-day comment period is provided to allow interested persons to 
respond to this proposed rule. Thirty days is deemed appropriate 
because: (1) The 2015-16 crop year begins on August 1, 2015, and the 
order requires the rate of assessment for each crop year to apply to 
all assessable raisins handled during the crop year; (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.

List of subjects in 7 CFR Part 989

    Grapes, Marketing agreements, Raisins, Reporting and recordkeeping 
requirements.
    For the reasons set forth in the preamble, 7 CFR part 989 is 
proposed to be amended as follows:

PART 989--RAISINS PRODUCED FROM GRAPES GROWN IN CALIFORNIA

0
1. The authority citation for 7 CFR part 989 continues to read as 
follows:

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

0
2. Section 989.347 is revised to read as follows:


Sec.  989.347  Assessment rate.

    On and after August 1, 2015, an assessment rate of $17.00 per ton 
is established for assessable raisins produced from grapes grown in 
California.

    Dated: August 28, 2015.
Rex A. Barnes,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2015-21850 Filed 9-1-15; 8:45 am]
BILLING CODE P



                                                      53022              Federal Register / Vol. 80, No. 170 / Wednesday, September 2, 2015 / Proposed Rules

                                                      SUPPLEMENTARY INFORMATION:      Microbial-              DEPARTMENT OF AGRICULTURE                             Division, Fruit and Vegetable Program,
                                                      based agriculture and biotechnology                                                                           AMS, USDA; Telephone: (559) 487–
                                                      rely on superior production strains, new                Agricultural Marketing Service                        5901, Fax: (559) 487–5906; or Email:
                                                      strains with novel characteristics, and                                                                       Maria.Stobbe@ams.usda.gov or
                                                      reference strains for comparative                       7 CFR Part 989                                        Martin.Engeler@ams.usda.gov.
                                                      purposes. Such strains are often difficult              [Doc. No. AMS–FV–15–0032; FV15–989–2                     Small businesses may request
                                                      to acquire or are cost prohibitive for                  PR]                                                   information on complying with this
                                                      many researchers. ARS has a staff                                                                             regulation by contacting Jeffrey Smutny,
                                                      dedicated to the acquisition and                        Raisins Produced From Grapes Grown                    Marketing Order and Agreement
                                                      distribution of microbial germplasm in                  in California; Increased Assessment                   Division, Fruit and Vegetable Program,
                                                      which patented strains can be deposited                 Rate                                                  AMS, USDA, 1400 Independence
                                                      in and distributed from its Patent                                                                            Avenue SW., STOP 0237, Washington,
                                                                                                              AGENCY:  Agricultural Marketing Service,              DC 20250–0237; Telephone: (202) 720–
                                                      Culture Collection for a one-time fee to                USDA.                                                 2491, Fax: (202) 720–8938, or Email:
                                                      cover maintenance and distribution                      ACTION: Proposed rule.                                Jeffrey.Smutny@ams.usda.gov.
                                                      costs.
                                                                                                                                                                    SUPPLEMENTARY INFORMATION: This
                                                         ARS’ Patent Culture Collection                       SUMMARY:    This proposed rule would
                                                                                                              implement a recommendation from the                   proposed rule is issued under Marketing
                                                      receives about 120 patent deposits per                                                                        Agreement and Order No. 989, both as
                                                      year, and distributes about 450 cultures                Raisin Administrative Committee
                                                                                                              (committee) to increase the assessment                amended (7 CFR part 989), regulating
                                                      per year. Nearly all of the accessions                                                                        the handling of raisins produced from
                                                      and distributions are requested by                      rate established for the 2015–16 and
                                                                                                              subsequent crop years from $14.00 to                  grapes grown in California, hereinafter
                                                      companies, universities, or Government                                                                        referred to as the ‘‘order.’’ The order is
                                                                                                              $17.00 per ton of California raisins
                                                      agencies. Currently, ARS charges $500                                                                         effective under the Agricultural
                                                                                                              handled under the marketing order
                                                      for each microbial culture deposit, as set              (order). The committee locally                        Marketing Agreement Act of 1937, as
                                                      forth in 7 CFR 504.2(a). For each                       administers the order and is comprised                amended (7 U.S.C. 601–674), hereinafter
                                                      microbial culture distribution ARS                      of producers and handlers of raisins                  referred to as the ‘‘Act.’’
                                                      charges $20, as set forth in 7 CFR                      operating within the area of production.                 The Department of Agriculture
                                                      504.2(b). The current fees, which were                  Assessments upon raisin handlers are                  (USDA) is issuing this proposed rule in
                                                      established in 1985, do not reflect the                 used by the committee to fund                         conformance with Executive Orders
                                                      actual costs of providing materials and                 reasonable and necessary expenses of                  12866, 13563, and 13175.
                                                      services as set forth in the regulation.                the program. The crop year begins                        This proposed rule has been reviewed
                                                      ARS proposes to increase these fees to                  August 1 and ends July 31. The                        under Executive Order 12988, Civil
                                                      reflect their actual costs of $670 and                  assessment rate would remain in effect                Justice Reform. Under the marketing
                                                      $40, respectively, and to apply the                     indefinitely unless modified,                         order now in effect, California raisin
                                                      distribution fee to all patent deposits                 suspended, or terminated.                             handlers are subject to assessments.
                                                                                                                                                                    Funds to administer the order are
                                                      regardless of the date of the deposit.                  DATES: Comments must be received by
                                                                                                                                                                    derived from assessments. It is intended
                                                      This will not include back billing for                  October 2, 2015.                                      that the assessment rate as proposed
                                                      deposits.                                               ADDRESSES: Interested persons are                     herein would be applicable to all
                                                         ARS also requests to add pay.gov as                  invited to submit written comments                    assessable raisins beginning on August
                                                      a method of paying deposit and                          concerning this proposed rule.                        1, 2015, and continue until amended,
                                                      distributions fees. Currently, payment to               Comments must be sent to the Docket                   suspended, or terminated.
                                                      the Department of Agriculture can only                  Clerk, Marketing Order and Agreement                     The Act provides that administrative
                                                      be made by check, draft, or money order                 Division, Fruit and Vegetable Program,                proceedings must be exhausted before
                                                      (7 CFR 504.3(b)).                                       AMS, USDA, 1400 Independence                          parties may file suit in court. Under
                                                                                                              Avenue SW., STOP 0237, Washington,                    section 608c(15)(A) of the Act, any
                                                         The proposed increased fees will                     DC 20250–0237; Fax: (202) 720–8938, or
                                                      enable ARS’ Patent Culture Collection to                                                                      handler subject to an order may file
                                                                                                              Internet: http://www.regulations.gov.                 with USDA a petition stating that the
                                                      continue its mission of supporting                      Comments should reference the docket                  order, any provision of the order, or any
                                                      microbiological research and                            number and the date and page number                   obligation imposed in connection with
                                                      biotechnological innovation, and serve                  of this issue of the Federal Register and             the order is not in accordance with law
                                                      as a repository where patented                          will be available for public inspection in            and request a modification of the order
                                                      microbial strains can be deposited and                  the Office of the Docket Clerk during                 or to be exempted therefrom. Such
                                                      distributed to the scientific community.                regular business hours, or can be viewed              handler is afforded the opportunity for
                                                         The proposed new fee structure and                   at: http://www.regulations.gov. All                   a hearing on the petition. After the
                                                      method of receiving payments will                       comments submitted in response to this                hearing, USDA would rule on the
                                                      require 7 CFR 504.2(a) and (b) and                      proposed rule will be included in the                 petition. The Act provides that the
                                                      504.3(b) to be amended.                                 record and will be made available to the              district court of the United States in any
                                                                                                              public. Please be advised that the                    district in which the handler is an
asabaliauskas on DSK5VPTVN1PROD with PROPOSALS




                                                        Dated: August 11, 2015.                               identity of the individuals or entities               inhabitant, or has his or her principal
                                                      Simon Y. Liu,                                           submitting the comments will be made                  place of business, has jurisdiction to
                                                      Associate Administrator, ARS.                           public on the Internet at the address                 review USDA’s ruling on the petition,
                                                      [FR Doc. 2015–20844 Filed 9–1–15; 8:45 am]              provided above.                                       provided an action is filed not later than
                                                      BILLING CODE 3410–03–P                                  FOR FURTHER INFORMATION CONTACT:                      20 days after the date of the entry of the
                                                                                                              Maria Stobbe, Marketing Specialist, or                ruling.
                                                                                                              Martin Engeler, Regional Director,                       This proposed rule would increase
                                                                                                              California Marketing Field Office,                    the assessment rate established by the
                                                                                                              Marketing Order and Agreement                         committee for the 2015–16 and


                                                 VerDate Sep<11>2014   18:00 Sep 01, 2015   Jkt 235001   PO 00000   Frm 00004   Fmt 4702   Sfmt 4702   E:\FR\FM\02SEP1.SGM   02SEP1


                                                                         Federal Register / Vol. 80, No. 170 / Wednesday, September 2, 2015 / Proposed Rules                                         53023

                                                      subsequent crop years from $14.00 to                    Salaries and employee-related costs of                reviewed and, as appropriate, approved
                                                      $17.00 per ton of California raisins                    $1,337,100; administration costs of                   by USDA.
                                                      acquired by handlers.                                   $493,500; compliance activities of
                                                        Sections 989.79 and 989.80,                                                                                 Initial Regulatory Flexibility Analysis
                                                                                                              $30,000; research and studies of
                                                      respectively, of the order provide                      $85,000; operation and maintenance of                    Pursuant to requirements set forth in
                                                      authority for the committee, with the                   the generic marketing programs of                     the Regulatory Flexibility Act (RFA) (5
                                                      approval of USDA, to formulate an                       $3,296,800; and a contingency of                      U.S.C. 601–612), the Agricultural
                                                      annual budget of expenses, and to                       $100,000. Reimbursable costs for the                  Marketing Service (AMS) has
                                                      collect assessments from handlers to                    shared management of the State                        considered the economic impact of this
                                                      administer the program. The members                     marketing program of $166,860 were                    proposed rule on small entities.
                                                      of the committee are producers and                      subtracted, resulting in a total approved             Accordingly, AMS has prepared this
                                                      handlers of California raisins. They are                budget for the 2014–15 crop year of                   initial regulatory flexibility analysis.
                                                      familiar with the committee’s needs and                 $5,175,540.                                              The purpose of the RFA is to fit
                                                      with costs for goods and services in                      The committee believes that more                    regulatory actions to the scale of
                                                      their local area, and are, thus, in a                   funds should be spent in promoting                    businesses subject to such actions in
                                                      position to formulate an appropriate                    raisins internationally, including China.             order that small businesses will not be
                                                      budget and assessment rate. The                         For that reason, budgeted expenses in                 unduly or disproportionately burdened.
                                                      assessment rate is formulated and                       those endeavors have been increased:                  Marketing orders issued pursuant to the
                                                      discussed in a public meeting. Thus, all                Research and studies increased from                   Act, and the rules issued thereunder, are
                                                      directly affected persons have an                       $85,000 for the 2014–15 crop year to                  unique in that they are brought about
                                                      opportunity to participate and provide                  $129,000 for the 2015–16 crop year; and               through group action of essentially
                                                      input.                                                  operation and maintenance of generic                  small entities acting on their own
                                                        For the 2010–11 and subsequent crop                   marketing programs increased from                     behalf.
                                                      years, the committee recommended, and                   $3,296,800 for the 2014–15 crop year to                  There are approximately 3,000
                                                      USDA approved, an assessment rate that                  $3,520,178 for the 2015–16 crop year. In              producers of California raisins and
                                                      would continue in effect from crop year                 addition, the committee included a                    approximately 28 handlers subject to
                                                      to crop year unless modified,                           contingency fund for unexpected                       regulation under the marketing order.
                                                      suspended, or terminated by USDA                        expenses and opportunities that may                   The Small Business Administration
                                                      upon recommendation and information                     occur during the year.                                defines small agricultural producers as
                                                      submitted by the committee or other                       The quantity of assessable raisins for              those having annual receipts less than
                                                      information available to USDA.                          2015–16 crop year was estimated to be                 $750,000, and defines small agricultural
                                                        The committee met on June 11, 2015,                   343,088 tons. At the recommended                      service firms as those whose annual
                                                      and recommended an assessment rate                      assessment rate of $17.00 per ton, the                receipts are less than $7,000,000. (13
                                                      increase from $14.00 per ton to $17.00                  anticipated assessment income would                   CFR 121.201.)
                                                      per ton by a unanimous vote. At this                    be $5,832,496. Sufficient income should                  Based upon shipment data and other
                                                      meeting, the committee also                             be generated at the higher assessment                 information provided by the committee,
                                                      recommended a budget for the 2015–16                    rate for the committee to meet its                    it may be concluded that a majority of
                                                      crop year, with recommended expenses                    anticipated expenses.                                 producers and approximately 18
                                                      and contingency reserve totaling                          Pursuant to § 989.81(a) of the order,               handlers of California raisins may be
                                                      $5,832,496. The vote on this                            any unexpended assessment funds from                  classified as small entities.
                                                      recommendation was also unanimous.                      the crop year must be credited or                        This proposed rule would increase
                                                      The proposed assessment rate of $17.00                  refunded to the handlers from whom                    the assessment rate established for the
                                                      per ton is expected to generate                         collected.                                            committee and collected from handlers
                                                      assessment income of $5,832,496, which                    The proposed assessment rate would                  for the 2015–16 and subsequent crop
                                                      would be sufficient to fund the                         continue in effect indefinitely unless                years from $14.00 to $17.00 per ton of
                                                      recommended 2015–16 expenses.                           modified, suspended, or terminated by                 assessable raisins acquired by handlers.
                                                        As previously stated, the committee’s                 USDA upon recommendation and                             The committee reviewed and
                                                      recommended budget for the 2015–16                      information submitted by the committee                identified the expenses that would be
                                                      crop year is $5,832,496, and the                        or other available information.                       reasonable and necessary to continue
                                                      recommended assessment rate is $17.00                     Although this assessment rate would                 program operations during the 2015–16
                                                      per ton, which is $3.00 per ton higher                  be in effect for an indefinite period, the            crop year. The resulting recommended
                                                      than the rate currently in effect.                      committee would continue to meet prior                budget totals $5,832,496 for the 2015–16
                                                        The major expenditures                                to or during each crop year to                        crop year. This represents an overall
                                                      recommended by the committee for the                    recommend a budget of expenses and                    increase from the 2014–15 budget,
                                                      2015–16 crop year include: Salaries and                 consider recommendations for                          which totaled $5,175,540. The 2015–16
                                                      employee-related costs of $1,402,906;                   modification of the assessment rate. The              budget includes additional proposed
                                                      administration costs of $610,000;                       dates and times of committee meetings                 expenditures to fund increased
                                                      compliance activities of $30,000;                       are available from the committee or                   promotional programs in export
                                                      research and studies of $129,000;                       USDA. Committee meetings are open to                  markets, and a contingency fund of
                                                      operation and maintenance of the                        the public and interested persons may                 $355,503, which provides a safety net to
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                                                      generic marketing programs of                           express their views at these meetings.                cover unexpected expenses and
                                                      $3,520,178; and a contingency of                        USDA would evaluate committee                         opportunities that present themselves
                                                      $355,503. Subtracted from these                         recommendations and other available                   during the 2015–16 crop year.
                                                      expenses is $215,091, which represents                  information to determine whether                         The quantity of assessable raisins for
                                                      reimbursable costs for the shared                       modification of the assessment rate is                2015–16 crop year was estimated to be
                                                      management of the State marketing                       needed. Further rulemaking would be                   343,088 tons. At the recommended
                                                      program.                                                undertaken as necessary. The                          assessment rate of $17.00 per ton, the
                                                        In comparison, last year’s approved                   committee’s 2015–16 budget, and those                 anticipated assessment income would
                                                      budgeted expenditures included:                         for subsequent crop years, would be                   be $5,832,496. Sufficient income should


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                                                      53024              Federal Register / Vol. 80, No. 170 / Wednesday, September 2, 2015 / Proposed Rules

                                                      be generated at the higher assessment                      Regarding the impact of this action on             the FOR FURTHER INFORMATION CONTACT
                                                      rate for the committee to meet its                      affected entities, this action would                  section.
                                                      anticipated expenses.                                   increase the assessment obligation                      A 30-day comment period is provided
                                                         The major expenditures                               imposed on handlers. While increased                  to allow interested persons to respond
                                                      recommended by the committee for the                    assessments impose additional costs on                to this proposed rule. Thirty days is
                                                      2015–16 crop year include: Salaries and                 handlers regulated under the order, the               deemed appropriate because: (1) The
                                                      employee-related costs of $1,402,906;                   rates are uniform on all handlers, and                2015–16 crop year begins on August 1,
                                                      administration costs of $610,000;                       proportional to the size of their                     2015, and the order requires the rate of
                                                      compliance activities of $30,000;                       businesses. It is expected that these                 assessment for each crop year to apply
                                                      research of $129,000; operation and                     costs would be offset by the benefits                 to all assessable raisins handled during
                                                      maintenance of generic marketing                        derived from the operation of the order.              the crop year; (2) the committee needs
                                                      programs of $3,520,178; and a                              In addition, the meetings of the Audit             to have sufficient funds to pay its
                                                      contingency of $355,503.                                and Marketing Subcommittees, and the                  expenses, which are incurred on a
                                                         In comparison, last year’s approved                  full committee were widely publicized                 continuous basis; and (3) handlers are
                                                      budgeted expenditures included:                         throughout the California raisin                      aware of this action, which was
                                                      Salaries and employee-related costs of                  industry, and all interested persons                  unanimously recommended by the
                                                      $1,337,100; administration costs of                     were invited to attend the meetings and               committee at a public meeting.
                                                      $493,500; compliance activities of                      encouraged to participate in committee
                                                                                                              deliberations on all issues. Like all                 List of subjects in 7 CFR Part 989
                                                      $30,000; research of $85,000; operation
                                                      and maintenance of generic marketing                    subcommittee and committee meetings,                    Grapes, Marketing agreements,
                                                      programs of $3,296,800; and a                           the June 8, 2015 and June 11, 2015,                   Raisins, Reporting and recordkeeping
                                                      contingency of $100,000. The total                      meetings were public meetings, and all                requirements.
                                                      budget approved for the 2014–15 crop                    entities, both large and small, were able               For the reasons set forth in the
                                                      year was $5,175,540.                                    to express views on this issue. Finally,              preamble, 7 CFR part 989 is proposed to
                                                         The committee believes that more                     interested persons are invited to submit              be amended as follows:
                                                      funds should be spent in promoting                      comments on this proposed rule,
                                                                                                              including the regulatory and                          PART 989—RAISINS PRODUCED
                                                      raisins internationally, including China.
                                                                                                              informational impacts of this action on               FROM GRAPES GROWN IN
                                                      For that reason, expenses for research
                                                                                                              small businesses.                                     CALIFORNIA
                                                      and promotion activities have been
                                                                                                                 In accordance with the Paperwork
                                                      increased: Operation and maintenance                                                                          ■ 1. The authority citation for 7 CFR
                                                                                                              Reduction Act of 1995 (44 U.S.C.
                                                      of generic marketing programs increased                                                                       part 989 continues to read as follows:
                                                                                                              Chapter 35), the order’s information
                                                      from $3,296,800 for the 2014–15 crop                    collection requirements have been                         Authority: 7 U.S.C. 601–674.
                                                      year to $3,520,178 for the 2015–16 crop                 previously approved by the Office of
                                                      year, and research has increased from                                                                         ■ 2. Section 989.347 is revised to read
                                                                                                              Management and Budget (OMB) and
                                                      $85,000 for the 2014–15 crop year to                                                                          as follows:
                                                                                                              assigned OMB No. 0581–0178,
                                                      $129,000 for the 2015–16 crop year. In                  ‘‘Vegetable and Specialty Crops.’’ No                 § 989.347    Assessment rate.
                                                      order to fund these additional proposed                 changes in those requirements as a
                                                      expenditures, the committee                                                                                     On and after August 1, 2015, an
                                                                                                              result of this action are necessary.                  assessment rate of $17.00 per ton is
                                                      recommended an increased assessment                     Should any changes become necessary,
                                                      rate.                                                                                                         established for assessable raisins
                                                                                                              they would be submitted to OMB for                    produced from grapes grown in
                                                         Pursuant to § 989.81(a) of the order,                approval.
                                                      any unexpended assessment funds from                                                                          California.
                                                                                                                 This proposed rule would impose no
                                                      the crop year must be credited or                       additional reporting or recordkeeping                   Dated: August 28, 2015.
                                                      refunded to the handlers from whom                      requirements on either small or large                 Rex A. Barnes,
                                                      collected.                                              California raisin handlers. As with all               Associate Administrator, Agricultural
                                                         Prior to arriving at this budget and                 Federal marketing order programs,                     Marketing Service.
                                                      assessment rate, the committee                          reports and forms are periodically                    [FR Doc. 2015–21850 Filed 9–1–15; 8:45 am]
                                                      considered information from various                     reviewed to reduce information                        BILLING CODE P
                                                      sources, such as the committee’s Audit                  requirements and duplication by
                                                      and Marketing Subcommittees.                            industry and public sector agencies.
                                                      Alternative spending levels were                           AMS is committed to complying with                 DEPARTMENT OF TRANSPORTATION
                                                      discussed by the Marketing and Audit                    the E-Government Act, to promote the
                                                      Subcommittees, which met on June 8,                     use of the internet and other                         Federal Aviation Administration
                                                      2015 and June 11, 2015, to review the                   information technologies to provide
                                                      committee’s financial operations.                       increased opportunities for citizen                   14 CFR Part 39
                                                         The committee ultimately decided                     access to Government information and                  [Docket No. FAA–2015–3657; Directorate
                                                      that the recommended budget and                         services, and for other purposes.                     Identifier 2012–SW–069–AD]
                                                      assessment rate were reasonable and                        USDA has not identified any relevant
                                                      necessary to properly administer the                    Federal rules that duplicate, overlap, or             RIN 2120–AA64
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                                                      order.                                                  conflict with this action.
                                                         A review of statistical data on the                     A small business guide on complying                Airworthiness Directives; Airbus
                                                      California raisin industry indicates that               with fruit, vegetable, and specialty crop             Helicopters (Previously Eurocopter
                                                      assessment revenue has consistently                     marketing agreements and orders may                   France (Eurocopter) Helicopters)
                                                      been less than one percent of grower                    be viewed at: http://www.ams.usda.gov/                AGENCY: Federal Aviation
                                                      revenue in recent years. With a $17.00                  MarketingOrdersSmallBusinessGuide.                    Administration (FAA), DOT.
                                                      assessment rate, assessment revenue                     Any questions about the compliance
                                                                                                                                                                    ACTION: Notice of proposed rulemaking
                                                      would be expected to remain at less                     guide should be sent to Jeffrey Smutny
                                                                                                                                                                    (NPRM).
                                                      than one percent of grower revenue.                     at the previously mentioned address in


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Document Created: 2018-02-26 10:11:05
Document Modified: 2018-02-26 10:11:05
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule.
DatesComments must be received by October 2, 2015.
ContactMaria Stobbe, 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 53022 
CFR AssociatedGrapes; Marketing Agreements; Raisins and Reporting and Recordkeeping Requirements

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