80_FR_68687 80 FR 68473 - Kiwifruit Grown in California; Increased Assessment Rate

80 FR 68473 - Kiwifruit Grown in California; Increased Assessment Rate

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 80, Issue 214 (November 5, 2015)

Page Range68473-68475
FR Document2015-28142

This proposed rule would implement a recommendation from the Kiwifruit Administrative Committee (Committee) to increase the assessment rate established for the 2015-16 and subsequent fiscal periods from $0.025 to $0.040 per 9-kilo volume-fill container or equivalent of kiwifruit handled under the marketing order (order). The Committee locally administers the order and is comprised of growers of kiwifruit operating within the area of production. Assessments upon kiwifruit handlers are used by the Committee to fund reasonable and necessary expenses of the program. The fiscal period begins on August 1 and ends July 31. The assessment rate would remain in effect indefinitely unless modified, suspended, or terminated.

Federal Register, Volume 80 Issue 214 (Thursday, November 5, 2015)
[Federal Register Volume 80, Number 214 (Thursday, November 5, 2015)]
[Proposed Rules]
[Pages 68473-68475]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-28142]


========================================================================
Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

========================================================================


Federal Register / Vol. 80, No. 214 / Thursday, November 5, 2015 / 
Proposed Rules

[[Page 68473]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 920

[Doc. No. AMS-FV-15-0056; FV15-920-1 PR]


Kiwifruit Grown in California; Increased Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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

SUMMARY: This proposed rule would implement a recommendation from the 
Kiwifruit Administrative Committee (Committee) to increase the 
assessment rate established for the 2015-16 and subsequent fiscal 
periods from $0.025 to $0.040 per 9-kilo volume-fill container or 
equivalent of kiwifruit handled under the marketing order (order). The 
Committee locally administers the order and is comprised of growers of 
kiwifruit operating within the area of production. Assessments upon 
kiwifruit handlers are used by the Committee to fund reasonable and 
necessary expenses of the program. The fiscal period begins on 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 November 20, 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, Specialty Crops 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 document 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 comments will be made public on the internet at 
the address provided above.

FOR FURTHER INFORMATION CONTACT: Kathie Notoro, Marketing Specialist, 
or Martin Engeler, Regional Director, California Marketing Field 
Office, Marketing Order and Agreement Division, Specialty Crops 
Program, AMS, USDA; Telephone: (559) 487-5901, Fax: (559) 487-5906, or 
Email: Kathie.Notoro@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, Specialty Crops 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 
Order No. 920, as amended (7 CFR part 920), regulating the handling of 
kiwifruit 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 kiwifruit handlers are subject to assessments. Funds to 
administer the order are derived from such assessments. It is intended 
that the assessment rate as issued herein would be applicable to all 
assessable kiwifruit 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 
for the Committee for the 2015-16 and subsequent fiscal periods from 
$0.025 to $0.040 per 9-kilo volume-fill container or equivalent of 
kiwifruit.
    The California kiwifruit marketing order provides authority for the 
Committee, with the approval of USDA, to formulate an annual budget of 
expenses and collect assessments from handlers to administer the 
program. The members of the Committee are producers of California 
kiwifruit. 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 2013-14 and subsequent fiscal periods, the Committee 
recommended, and USDA approved, an assessment rate that would continue 
in effect from fiscal period to fiscal period 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 July 17 and September 16, 2015, and 
unanimously recommended 2015-16 fiscal year expenditures of $132,725 
and an assessment rate of $0.040 per 9-kilo volume-fill container or 
equivalent of kiwifruit handled to fund Committee expenses. In 
comparison, last year's budgeted expenditures were $120,925. The 
assessment rate of $0.040 is $0.015 more than the rate currently in 
effect. The Committee's recommended 2015-16 expenditures are $11,800 
higher than last year's budgeted expenditures. The

[[Page 68474]]

primary reason for the increase is to provide funding for research. 
When applied to the Committee's crop estimate for the 2015-16 fiscal 
year of 2,297,000 9-kilo volume-fill containers or equivalent, the 
current assessment rate of $0.025 would not generate sufficient 
assessment income to cover anticipated expenses. The proposed 
assessment rate of $0.040 per 9-kilo volume-fill container or its 
equivalent would generate assessment income of $91,880. Anticipated 
assessment income combined with financial reserve and interest income, 
would provide sufficient funds for the Committee to meet its budgeted 
expenses while maintaining its financial reserve within the limit 
authorized under the order. (Sec.  920.42)
    The major expenditures recommended by the Committee for the 2015-16 
fiscal period include $80,000 for management expenses, $14,000 for two 
financial audits, $14,330 for research, $7,500 for International 
Kiwifruit Organization (IKO) travel, $2,500 membership fee to Buy 
California, and $2,500 membership fee to the IKO. Major budgeted 
expenses for the 2014-15 fiscal period were $80,000 for management 
expenses, $7,500 for a financial audit, $5,000 for handler audits, 
$2,500 membership fee to Buy California, $2,500 for IKO membership, and 
$12,500 for IKO travel.
    The assessment rate recommended by the Committee was derived by 
considering the amount of revenue needed to meet anticipated expenses 
divided by expected shipments of California kiwifruit. As previously 
mentioned, kiwifruit shipments for the 2015-16 fiscal period are 
estimated at 2,297,000 9-kilo volume-fill containers, which should 
provide $91,880 in assessment income. Anticipated assessment income 
derived from handler assessments, along with interest income and 
$40,756 from the Committee's authorized financial reserve would provide 
sufficient funds for the Committee to meet its budgeted expenses. It is 
anticipated that $29,119 would remain in the financial reserve at the 
end of July 2016, which would be within the maximum amount permitted by 
the order of approximately one fiscal year's expenses (Sec.  920.42).
    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 
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 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 fiscal periods 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 178 kiwifruit growers in the production 
area and approximately 28 handlers subject to regulation under the 
marketing order. Small agricultural producers are defined by the Small 
Business Administration as those having annual receipts less than 
$750,000, and small agricultural service firms are defined as those 
whose annual receipts are less than $7,000,000 (13 CFR 121.201).
    The National Agricultural Statistical Service (NASS) reported total 
California kiwifruit production for the 2014 season at 27,400 tons, 
with an average price of $1,190 per ton. Based on the average price and 
shipment information provided by NASS and the Committee, it could be 
concluded that the majority of kiwifruit handlers would be considered 
small businesses under the SBA definition. Based on kiwifruit 
production and price information, as well as the total number of 
California kiwifruit growers, average annual grower revenue is less 
than $750,000. Thus, the majority of California kiwifruit growers may 
also be classified as small entities.
    This proposed rule would increase the assessment rate established 
by the Committee and collected from handlers for the 2015-16 and 
subsequent fiscal periods from $0.025 to $0.040 per 9-kilo volume-fill 
container or equivalent of kiwifruit. The Committee unanimously 
recommended 2015-16 expenditures of $132,725 and an assessment rate of 
$0.040 per 9-kilo volume-fill container. The proposed assessment rate 
of $0.040 is $0.015 higher than the 2014-15 rate. The quantity of 
assessable kiwifruit for the 2015-16 fiscal period is estimated at 
2,297,000 9-kilo volume-fill containers. Thus, the $0.040 rate should 
provide $91,880 in assessment income. Anticipated assessment income 
derived from handler assessments, along with financial reserve funds 
and interest income, would provide sufficient revenue for the Committee 
to meet its budgeted expenses, while maintaining its financial reserve 
within the maximum amount permitted by the order of approximately one 
fiscal year's expenses (Sec.  920.42).
    The major expenditures recommended by the Committee for the 2015-16 
fiscal period include $80,000 for management expenses, $14,000 for two 
financial audits, $14,330 for research, $7,500 for International 
Kiwifruit Organization (IKO) travel, $2,500 membership fee to Buy 
California, and $2,500 membership fee to the IKO. Major budgeted 
expenses for the 2014-15 fiscal period were $80,000 for management 
expenses, $7,500 for a financial audit, $5,000 for handler audits, 
$2,500 membership fee to Buy California, $2,500 for IKO membership, and 
$12,500 for IKO travel.
    Prior to arriving at this budget and assessment rate, the Committee 
considered alternative expenditure levels, to include maintaining the 
current assessment rate, but ultimately determined that the current 
assessment rate would generate insufficient revenue to meet its 
expenses.
    According to data from NASS, the season average producer price was 
$11.09 per 9-kilo volume-fill container in 2013 and $11.78 per 9-kilo 
volume-fill container in 2014. A review of historical information and 
preliminary information pertaining to the upcoming fiscal period 
indicates that the grower price for 2015-16 could range between $11.09 
and $11.78 per 9-kilo volume-fill container of assessable kiwifruit. 
Therefore, estimated assessment revenue for the 2015-16 fiscal year as 
a percentage of total producer revenue could be between 0.34 percent 
and 0.36 percent.
    This action would increase the assessment obligation imposed on

[[Page 68475]]

handlers. While assessments impose some additional costs on handlers, 
the costs are minimal and uniform on all handlers. However, these costs 
would be offset by the benefits derived by the operation of the 
marketing order. In addition, the Committee's meetings were widely 
publicized throughout the California kiwifruit industry and all 
interested persons were invited to attend the meeting and participate 
in Committee deliberations on all issues. Like all Committee meetings, 
the July 17 and September 16, 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. 0581-0189. No changes in those requirements are 
necessary as a result of this action. 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 
kiwifruit 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 15-day comment period is provided to allow interested persons to 
respond to this proposed rule. Fifteen days is deemed appropriate 
because: (1) The 2015-16 fiscal year began on August 1, 2015, handlers 
began shipping kiwifruit in September and the marketing order requires 
that the rate of assessment apply to all assessable kiwifruit handled 
during the 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.

List of Subjects in 7 CFR Part 920

    Kiwifruit, Marketing agreements, Reporting and record keeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 920 is 
proposed to be amended as follows:

PART 920--KIWIFRUIT GROWN IN CALIFORNIA

0
1. The authority citation for 7 CFR part 920 continues to read as 
follows:

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

0
2. Section 920.213 is revised to read as follows:


Sec.  920.213  Assessment rate.

    On and after August 1, 2015, an assessment rate of $0.040 per 9-
kilo volume-fill container or equivalent of kiwifruit is established 
for kiwifruit grown in California.

    Dated: October 30, 2015.
Rex A. Barnes,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2015-28142 Filed 11-4-15; 8:45 am]
 BILLING CODE 3410-02-P



                                                                                                                                                                                                    68473

                                                    Proposed Rules                                                                                                Federal Register
                                                                                                                                                                  Vol. 80, No. 214

                                                                                                                                                                  Thursday, November 5, 2015



                                                    This section of the FEDERAL REGISTER                    www.regulations.gov. All comments                     the order is not in accordance with law
                                                    contains notices to the public of the proposed          submitted in response to this proposed                and request a modification of the order
                                                    issuance of rules and regulations. The                  rule will be included in the record and               or to be exempted therefrom. Such
                                                    purpose of these notices is to give interested          will be made available to the public.                 handler is afforded the opportunity for
                                                    persons an opportunity to participate in the            Please be advised that the identity of the            a hearing on the petition. After the
                                                    rule making prior to the adoption of the final
                                                                                                            individuals or entities submitting                    hearing, USDA would rule on the
                                                    rules.
                                                                                                            comments will be made public on the                   petition. The Act provides that the
                                                                                                            internet at the address provided above.               district court of the United States in any
                                                    DEPARTMENT OF AGRICULTURE                               FOR FURTHER INFORMATION CONTACT:                      district in which the handler is an
                                                                                                            Kathie Notoro, Marketing Specialist, or               inhabitant, or has his or her principal
                                                    Agricultural Marketing Service                          Martin Engeler, Regional Director,                    place of business, has jurisdiction to
                                                                                                            California Marketing Field Office,                    review USDA’s ruling on the petition,
                                                    7 CFR Part 920                                          Marketing Order and Agreement                         provided an action is filed not later than
                                                    [Doc. No. AMS–FV–15–0056; FV15–920–1
                                                                                                            Division, Specialty Crops Program,                    20 days after the date of the entry of the
                                                    PR]                                                     AMS, USDA; Telephone: (559) 487–                      ruling.
                                                                                                            5901, Fax: (559) 487–5906, or Email:                    This proposed rule would increase
                                                    Kiwifruit Grown in California;                          Kathie.Notoro@ams.usda.gov, or                        the assessment rate established for the
                                                    Increased Assessment Rate                               Martin.Engeler@ams.usda.gov. Small                    Committee for the 2015–16 and
                                                                                                            businesses may request information on                 subsequent fiscal periods from $0.025 to
                                                    AGENCY:  Agricultural Marketing Service,                complying with this regulation by                     $0.040 per 9-kilo volume-fill container
                                                    USDA.                                                   contacting Jeffrey Smutny, Marketing                  or equivalent of kiwifruit.
                                                    ACTION: Proposed rule.                                  Order and Agreement Division,                           The California kiwifruit marketing
                                                                                                            Specialty Crops Program, AMS, USDA,                   order provides authority for the
                                                    SUMMARY:   This proposed rule would                     1400 Independence Avenue SW., STOP                    Committee, with the approval of USDA,
                                                    implement a recommendation from the                     0237, Washington, DC 20250–0237;                      to formulate an annual budget of
                                                    Kiwifruit Administrative Committee                      Telephone: (202) 720–2491, Fax: (202)                 expenses and collect assessments from
                                                    (Committee) to increase the assessment                  720–8938, or Email: Jeffrey.Smutny@                   handlers to administer the program. The
                                                    rate established for the 2015–16 and                    ams.usda.gov.                                         members of the Committee are
                                                    subsequent fiscal periods from $0.025 to                                                                      producers of California kiwifruit. They
                                                                                                            SUPPLEMENTARY INFORMATION: This
                                                    $0.040 per 9-kilo volume-fill container                                                                       are familiar with the Committee’s needs
                                                    or equivalent of kiwifruit handled under                proposed rule is issued under Marketing
                                                                                                            Order No. 920, as amended (7 CFR part                 and with the costs of goods and services
                                                    the marketing order (order). The                                                                              in their local area and are thus in a
                                                    Committee locally administers the order                 920), regulating the handling of
                                                                                                            kiwifruit grown in California,                        position to formulate an appropriate
                                                    and is comprised of growers of kiwifruit                                                                      budget and assessment rate. The
                                                    operating within the area of production.                hereinafter referred to as the ‘‘order.’’
                                                                                                            The order is effective under the                      assessment rate is formulated and
                                                    Assessments upon kiwifruit handlers                                                                           discussed in a public meeting. Thus, all
                                                    are used by the Committee to fund                       Agricultural Marketing Agreement Act
                                                                                                            of 1937, as amended (7 U.S.C. 601–674),               directly affected persons have an
                                                    reasonable and necessary expenses of                                                                          opportunity to participate and provide
                                                    the program. The fiscal period begins on                hereinafter referred to as the ‘‘Act.’’
                                                                                                               The Department of Agriculture                      input.
                                                    August 1 and ends July 31. The                                                                                  For the 2013–14 and subsequent fiscal
                                                                                                            (USDA) is issuing this proposed rule in
                                                    assessment rate would remain in effect                                                                        periods, the Committee recommended,
                                                                                                            conformance with Executive Orders
                                                    indefinitely unless modified,                                                                                 and USDA approved, an assessment rate
                                                                                                            12866, 13563, and 13175.
                                                    suspended, or terminated.                                                                                     that would continue in effect from fiscal
                                                                                                               This proposed rule has been reviewed
                                                    DATES: Comments must be received by                     under Executive Order 12988, Civil                    period to fiscal period unless modified,
                                                    November 20, 2015.                                      Justice Reform. Under the marketing                   suspended, or terminated by USDA
                                                    ADDRESSES: Interested persons are                       order now in effect, California kiwifruit             upon recommendation and information
                                                    invited to submit written comments                      handlers are subject to assessments.                  submitted by the Committee or other
                                                    concerning this proposed rule.                          Funds to administer the order are                     information available to USDA.
                                                    Comments must be sent to the Docket                     derived from such assessments. It is                    The Committee met on July 17 and
                                                    Clerk, Marketing Order and Agreement                    intended that the assessment rate as                  September 16, 2015, and unanimously
                                                    Division, Specialty Crops Program,                      issued herein would be applicable to all              recommended 2015–16 fiscal year
                                                    AMS, USDA, 1400 Independence                            assessable kiwifruit beginning on                     expenditures of $132,725 and an
                                                    Avenue SW., STOP 0237, Washington,                      August 1, 2015, and continue until                    assessment rate of $0.040 per 9-kilo
                                                    DC 20250–0237; Fax: (202) 720–8938, or                  amended, suspended, or terminated.                    volume-fill container or equivalent of
jstallworth on DSK7TPTVN1PROD with PROPOSALS




                                                    Internet: http://www.regulations.gov.                      The Act provides that administrative               kiwifruit handled to fund Committee
                                                    Comments should reference the                           proceedings must be exhausted before                  expenses. In comparison, last year’s
                                                    document number and the date and                        parties may file suit in court. Under                 budgeted expenditures were $120,925.
                                                    page number of this issue of the Federal                section 608c(15)(A) of the Act, any                   The assessment rate of $0.040 is $0.015
                                                    Register and will be available for public               handler subject to an order may file                  more than the rate currently in effect.
                                                    inspection in the Office of the Docket                  with USDA a petition stating that the                 The Committee’s recommended 2015–
                                                    Clerk during regular business hours, or                 order, any provision of the order, or any             16 expenditures are $11,800 higher than
                                                    can be viewed at: http://                               obligation imposed in connection with                 last year’s budgeted expenditures. The


                                               VerDate Sep<11>2014   14:36 Nov 04, 2015   Jkt 238001   PO 00000   Frm 00001   Fmt 4702   Sfmt 4702   E:\FR\FM\05NOP1.SGM   05NOP1


                                                    68474                Federal Register / Vol. 80, No. 214 / Thursday, November 5, 2015 / Proposed Rules

                                                    primary reason for the increase is to                   prior to or during each fiscal period to                 This proposed rule would increase
                                                    provide funding for research. When                      recommend a budget of expenses and                    the assessment rate established by the
                                                    applied to the Committee’s crop                         consider recommendations for                          Committee and collected from handlers
                                                    estimate for the 2015–16 fiscal year of                 modification of the assessment rate. The              for the 2015–16 and subsequent fiscal
                                                    2,297,000 9-kilo volume-fill containers                 dates and times of Committee meetings                 periods from $0.025 to $0.040 per 9-kilo
                                                    or equivalent, the current assessment                   are available from the Committee or                   volume-fill container or equivalent of
                                                    rate of $0.025 would not generate                       USDA. Committee meetings are open to                  kiwifruit. The Committee unanimously
                                                    sufficient assessment income to cover                   the public and interested persons may                 recommended 2015–16 expenditures of
                                                    anticipated expenses. The proposed                      express their views at these meetings.                $132,725 and an assessment rate of
                                                    assessment rate of $0.040 per 9-kilo                    USDA would evaluate Committee                         $0.040 per 9-kilo volume-fill container.
                                                    volume-fill container or its equivalent                 recommendations and other available                   The proposed assessment rate of $0.040
                                                    would generate assessment income of                     information to determine whether                      is $0.015 higher than the 2014–15 rate.
                                                    $91,880. Anticipated assessment income                  modification of the assessment rate is                The quantity of assessable kiwifruit for
                                                    combined with financial reserve and                     needed. Further rulemaking would be                   the 2015–16 fiscal period is estimated at
                                                    interest income, would provide                          undertaken as necessary. The                          2,297,000 9-kilo volume-fill containers.
                                                    sufficient funds for the Committee to                   Committee’s 2015–16 budget and those                  Thus, the $0.040 rate should provide
                                                    meet its budgeted expenses while                        for subsequent fiscal periods would be                $91,880 in assessment income.
                                                    maintaining its financial reserve within                reviewed and, as appropriate, approved                Anticipated assessment income derived
                                                    the limit authorized under the order.                   by USDA.                                              from handler assessments, along with
                                                    (§ 920.42)                                                                                                    financial reserve funds and interest
                                                       The major expenditures                               Initial Regulatory Flexibility Analysis
                                                                                                                                                                  income, would provide sufficient
                                                    recommended by the Committee for the                       Pursuant to requirements set forth in              revenue for the Committee to meet its
                                                    2015–16 fiscal period include $80,000                   the Regulatory Flexibility Act (RFA) (5               budgeted expenses, while maintaining
                                                    for management expenses, $14,000 for                    U.S.C. 601–612), the Agricultural                     its financial reserve within the
                                                    two financial audits, $14,330 for                       Marketing Service (AMS) has                           maximum amount permitted by the
                                                    research, $7,500 for International                      considered the economic impact of this                order of approximately one fiscal year’s
                                                    Kiwifruit Organization (IKO) travel,                    proposed rule on small entities.                      expenses (§ 920.42).
                                                    $2,500 membership fee to Buy                            Accordingly, AMS has prepared this                       The major expenditures
                                                    California, and $2,500 membership fee                   initial regulatory flexibility analysis.              recommended by the Committee for the
                                                    to the IKO. Major budgeted expenses for                    The purpose of the RFA is to fit                   2015–16 fiscal period include $80,000
                                                    the 2014–15 fiscal period were $80,000                  regulatory actions to the scale of                    for management expenses, $14,000 for
                                                    for management expenses, $7,500 for a                   businesses subject to such actions in                 two financial audits, $14,330 for
                                                    financial audit, $5,000 for handler                     order that small businesses will not be               research, $7,500 for International
                                                    audits, $2,500 membership fee to Buy                    unduly or disproportionately burdened.                Kiwifruit Organization (IKO) travel,
                                                    California, $2,500 for IKO membership,                  Marketing orders issued pursuant to the               $2,500 membership fee to Buy
                                                    and $12,500 for IKO travel.                             Act, and the rules issued thereunder, are             California, and $2,500 membership fee
                                                       The assessment rate recommended by                   unique in that they are brought about                 to the IKO. Major budgeted expenses for
                                                    the Committee was derived by                            through group action of essentially                   the 2014–15 fiscal period were $80,000
                                                    considering the amount of revenue                       small entities acting on their own                    for management expenses, $7,500 for a
                                                    needed to meet anticipated expenses                     behalf.                                               financial audit, $5,000 for handler
                                                    divided by expected shipments of                           There are approximately 178 kiwifruit              audits, $2,500 membership fee to Buy
                                                    California kiwifruit. As previously                     growers in the production area and                    California, $2,500 for IKO membership,
                                                    mentioned, kiwifruit shipments for the                  approximately 28 handlers subject to                  and $12,500 for IKO travel.
                                                    2015–16 fiscal period are estimated at                  regulation under the marketing order.                    Prior to arriving at this budget and
                                                    2,297,000 9-kilo volume-fill containers,                Small agricultural producers are defined              assessment rate, the Committee
                                                    which should provide $91,880 in                         by the Small Business Administration as               considered alternative expenditure
                                                    assessment income. Anticipated                          those having annual receipts less than                levels, to include maintaining the
                                                    assessment income derived from                          $750,000, and small agricultural service              current assessment rate, but ultimately
                                                    handler assessments, along with interest                firms are defined as those whose annual               determined that the current assessment
                                                    income and $40,756 from the                             receipts are less than $7,000,000 (13                 rate would generate insufficient revenue
                                                    Committee’s authorized financial                        CFR 121.201).                                         to meet its expenses.
                                                    reserve would provide sufficient funds                     The National Agricultural Statistical                 According to data from NASS, the
                                                    for the Committee to meet its budgeted                  Service (NASS) reported total California              season average producer price was
                                                    expenses. It is anticipated that $29,119                kiwifruit production for the 2014 season              $11.09 per 9-kilo volume-fill container
                                                    would remain in the financial reserve at                at 27,400 tons, with an average price of              in 2013 and $11.78 per 9-kilo volume-
                                                    the end of July 2016, which would be                    $1,190 per ton. Based on the average                  fill container in 2014. A review of
                                                    within the maximum amount permitted                     price and shipment information                        historical information and preliminary
                                                    by the order of approximately one fiscal                provided by NASS and the Committee,                   information pertaining to the upcoming
                                                    year’s expenses (§ 920.42).                             it could be concluded that the majority               fiscal period indicates that the grower
                                                       The proposed assessment rate would                   of kiwifruit handlers would be                        price for 2015–16 could range between
                                                    continue in effect indefinitely unless                  considered small businesses under the                 $11.09 and $11.78 per 9-kilo volume-fill
jstallworth on DSK7TPTVN1PROD with PROPOSALS




                                                    modified, suspended, or terminated by                   SBA definition. Based on kiwifruit                    container of assessable kiwifruit.
                                                    USDA upon recommendation and                            production and price information, as                  Therefore, estimated assessment
                                                    information submitted by the                            well as the total number of California                revenue for the 2015–16 fiscal year as a
                                                    Committee or other available                            kiwifruit growers, average annual                     percentage of total producer revenue
                                                    information.                                            grower revenue is less than $750,000.                 could be between 0.34 percent and 0.36
                                                       Although this assessment rate would                  Thus, the majority of California                      percent.
                                                    be in effect for an indefinite period, the              kiwifruit growers may also be classified                 This action would increase the
                                                    Committee would continue to meet                        as small entities.                                    assessment obligation imposed on


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                                                                         Federal Register / Vol. 80, No. 214 / Thursday, November 5, 2015 / Proposed Rules                                         68475

                                                    handlers. While assessments impose                      requires that the rate of assessment                  inspecting the TCB for correct resistance
                                                    some additional costs on handlers, the                  apply to all assessable kiwifruit handled             values and removing TCBs that fail
                                                    costs are minimal and uniform on all                    during the fiscal period; (2) the                     inspection before further flight. We are
                                                    handlers. However, these costs would                    Committee needs to have sufficient                    proposing this AD to prevent failure of
                                                    be offset by the benefits derived by the                funds to pay its expenses, which are                  the TCB which could lead to loss of
                                                    operation of the marketing order. In                    incurred on a continuous basis; and (3)               engine thrust control and damage to the
                                                    addition, the Committee’s meetings                      handlers are aware of this action which               aircraft.
                                                    were widely publicized throughout the                   was unanimously recommended by the                    DATES: We must receive comments on
                                                    California kiwifruit industry and all                   Committee at a public meeting and is                  this proposed AD by January 4, 2016.
                                                    interested persons were invited to                      similar to other assessment rate actions              ADDRESSES: You may send comments by
                                                    attend the meeting and participate in                   issued in past years.                                 any of the following methods:
                                                    Committee deliberations on all issues.                                                                          • Federal eRulemaking Portal: Go to
                                                    Like all Committee meetings, the July 17                List of Subjects in 7 CFR Part 920
                                                                                                                                                                  http://www.regulations.gov. Follow the
                                                    and September 16, 2015, meetings, were                    Kiwifruit, Marketing agreements,                    instructions for submitting comments.
                                                    public meetings and all entities, both                  Reporting and record keeping                            • Mail: Docket Management Facility,
                                                    large and small, were able to express                   requirements.                                         U.S. Department of Transportation, 1200
                                                    views on this issue. Finally, interested                  For the reasons set forth in the                    New Jersey Avenue SE., West Building
                                                    persons are invited to submit comments                  preamble, 7 CFR part 920 is proposed to               Ground Floor, Room W12–140,
                                                    on this proposed rule, including the                    be amended as follows:                                Washington, DC 20590–0001.
                                                    regulatory and informational impacts of                                                                         • Hand Delivery: Deliver to Mail
                                                    this action on small businesses.                        PART 920—KIWIFRUIT GROWN IN                           address above between 9 a.m. and 5
                                                       In accordance with the Paperwork                     CALIFORNIA                                            p.m., Monday through Friday, except
                                                    Reduction Act of 1995 (44 U.S.C
                                                                                                            ■ 1. The authority citation for 7 CFR                 Federal holidays.
                                                    Chapter 35), the order’s information
                                                                                                            part 920 continues to read as follows:                  • Fax: 202–493–2251.
                                                    collection requirements have been                                                                               For service information identified in
                                                    previously approved by the Office of                        Authority: 7 U.S.C. 601–674.                      this proposed AD, contact Turbomeca
                                                    Management and Budget (OMB) and                         ■ 2. Section 920.213 is revised to read               S.A., 40220 Tarnos, France; phone: 33
                                                    assigned OMB No. 0581–0189. No                          as follows:                                           (0)5 59 74 40 00; fax: 33 (0)5 59 74 45
                                                    changes in those requirements are
                                                                                                                                                                  15. You may view this service
                                                    necessary as a result of this action.                   § 920.213    Assessment rate.
                                                                                                                                                                  information at the FAA, Engine &
                                                    Should any changes become necessary,                      On and after August 1, 2015, an                     Propeller Directorate, 12 New England
                                                    they would be submitted to OMB for                      assessment rate of $0.040 per 9-kilo                  Executive Park, Burlington, MA. For
                                                    approval.                                               volume-fill container or equivalent of
                                                       This proposed rule would impose no                                                                         information on the availability of this
                                                                                                            kiwifruit is established for kiwifruit                material at the FAA, call 781–238–7125.
                                                    additional reporting or recordkeeping                   grown in California.
                                                    requirements on either small or large                                                                         Examining the AD Docket
                                                                                                              Dated: October 30, 2015.
                                                    California kiwifruit handlers. As with
                                                                                                            Rex A. Barnes,                                          You may examine the AD docket on
                                                    all Federal marketing order programs,
                                                                                                            Associate Administrator, Agricultural                 the Internet at http://
                                                    reports and forms are periodically
                                                                                                            Marketing Service.                                    www.regulations.gov by searching for
                                                    reviewed to reduce information
                                                                                                            [FR Doc. 2015–28142 Filed 11–4–15; 8:45 am]           and locating Docket No. FAA–2015–
                                                    requirements and duplication by
                                                                                                                                                                  3805; or in person at the Docket
                                                    industry and public sector agencies.                    BILLING CODE 3410–02–P
                                                       AMS is committed to complying with                                                                         Operations office between 9 a.m. and 5
                                                    the E-Government Act, to promote the                                                                          p.m., Monday through Friday, except
                                                    use of the internet and other                                                                                 Federal holidays. The AD docket
                                                                                                            DEPARTMENT OF TRANSPORTATION
                                                    information technologies to provide                                                                           contains this proposed AD, the
                                                    increased opportunities for citizen                     Federal Aviation Administration                       mandatory continuing airworthiness
                                                    access to Government information and                                                                          information (MCAI), the regulatory
                                                    services, and for other purposes.                       14 CFR Part 39                                        evaluation, any comments received, and
                                                       USDA has not identified any relevant                                                                       other information. The address for the
                                                                                                            [Docket No. FAA–2015–3805; Directorate                Docket Office (phone: 800–647–5527) is
                                                    Federal rules that duplicate, overlap, or               Identifier 2015–NE–28–AD]
                                                    conflict with this action.                                                                                    in the ADDRESSES section. Comments
                                                       A small business guide on complying                  RIN 2120–AA64                                         will be available in the AD docket
                                                    with fruit, vegetable, and specialty crop                                                                     shortly after receipt.
                                                                                                            Airworthiness Directives; Turbomeca                   FOR FURTHER INFORMATION CONTACT:
                                                    marketing agreements and orders may
                                                                                                            S.A. Turboshaft Engines                               Brian Kierstead, Aerospace Engineer,
                                                    be viewed at: http://www.ams.usda.gov/
                                                    MarketingOrdersSmallBusinessGuide.                      AGENCY: Federal Aviation                              Engine Certification Office, FAA, Engine
                                                    Any questions about the compliance                      Administration (FAA), DOT.                            & Propeller Directorate, 12 New England
                                                    guide should be sent to Jeffrey Smutny                  ACTION: Notice of proposed rulemaking                 Executive Park, Burlington, MA 01803;
                                                    at the previously mentioned address in                  (NPRM).                                               phone: 781–238–7772; fax: 781–238–
                                                    the FOR FURTHER INFORMATION CONTACT                                                                           7199; email: brian.kierstead@faa.gov.
jstallworth on DSK7TPTVN1PROD with PROPOSALS




                                                    section.                                                SUMMARY:  We propose to adopt a new                   SUPPLEMENTARY INFORMATION:
                                                       A 15-day comment period is provided                  airworthiness directive (AD) for all
                                                    to allow interested persons to respond                  Turbomeca S.A. ARRIEL 2C, 2C1, 2C2,                   Comments Invited
                                                    to this proposed rule. Fifteen days is                  2S1, and 2S2 turboshaft engines with                    We invite you to send any written
                                                    deemed appropriate because: (1) The                     modification TU34 or TU34A installed.                 relevant data, views, or arguments about
                                                    2015–16 fiscal year began on August 1,                  This proposed AD was prompted by                      this proposed AD. Send your comments
                                                    2015, handlers began shipping kiwifruit                 torque conformation box (TCB) failures.               to an address listed under the
                                                    in September and the marketing order                    This proposed AD would require                        ADDRESSES section. Include ‘‘Docket No.



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Document Created: 2015-12-14 15:02:54
Document Modified: 2015-12-14 15:02:54
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 November 20, 2015.
ContactKathie Notoro, Marketing Specialist, or Martin Engeler, Regional Director, California Marketing Field Office, Marketing Order and Agreement Division, Specialty Crops 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, Specialty Crops 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]
FR Citation80 FR 68473 
CFR AssociatedKiwifruit; Marketing Agreements and Reporting and Record Keeping Requirements

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