80_FR_73871 80 FR 73644 - Raisins Produced From Grapes Grown in California; Increased Assessment Rate

80 FR 73644 - Raisins Produced From Grapes Grown in California; Increased Assessment Rate

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 80, Issue 227 (November 25, 2015)

Page Range73644-73647
FR Document2015-30013

This rule implements a recommendation from the Raisin Administrative Committee (committee) for an increase of 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 will remain in effect indefinitely unless modified, suspended, or terminated.

Federal Register, Volume 80 Issue 227 (Wednesday, November 25, 2015)
[Federal Register Volume 80, Number 227 (Wednesday, November 25, 2015)]
[Rules and Regulations]
[Pages 73644-73647]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-30013]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 989

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


Raisins Produced From Grapes Grown in California; Increased 
Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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

SUMMARY: This rule implements a recommendation from the Raisin 
Administrative Committee (committee) for an increase of 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 will 
remain in effect indefinitely unless modified, suspended, or 
terminated.

DATES: Effective November 27, 2015.

FOR FURTHER INFORMATION CONTACT: Maria Stobbe, 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].

SUPPLEMENTARY INFORMATION: This 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 rule in 
conformance with Executive Orders 12866, 13563, and 13175.
    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. Under the marketing order now in effect, California 
raisin handlers are subject to assessments. Funds to administer the 
order are derived from assessments. It is intended that the assessment 
rate as issued herein will 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

[[Page 73645]]

a hearing on the petition. After the hearing, USDA would rule on the 
petition. The Act provides that the district court of the United States 
in any district in which the handler is an inhabitant, or has his or 
her principal place of business, has jurisdiction to review USDA's 
ruling on the petition, provided an action is filed not later than 20 
days after the date of the entry of the ruling.
    This rule increases the assessment rate established by the 
committee for the 2015-16 and subsequent crop years from $14.00 to 
$17.00 per ton of California raisins handled.
    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 assessment rate of $17.00 per ton is expected to 
generate assessment income of $5,832,496, which should be sufficient to 
fund the 2015-16 expenses.
    As previously stated, the committee's budget for the 2015-16 crop 
year is $5,832,496, and the 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 costs of 
$30,000; research and studies costs of $129,000; operation and 
maintenance costs 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 costs of $30,000; research and 
studies costs of $85,000; operation and maintenance costs 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 
costs increased from $85,000 for the 2014-15 crop year to $129,000 for 
the 2015-16 crop year; and operation and maintenance costs 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 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 assessment rate established in this rule will continue in 
effect indefinitely unless modified, suspended, or terminated by USDA 
upon recommendation and information submitted by the committee or other 
available information.
    Although this assessment rate will be in effect for an indefinite 
period, the committee will continue to meet prior to or during each 
crop year to recommend a budget of expenses and consider 
recommendations for modification of the assessment rate. The dates and 
times of committee meetings are available from the committee or USDA. 
Committee meetings are open to the public and interested persons may 
express their views at these meetings. USDA will evaluate committee 
recommendations and other available information to determine whether 
modification of the assessment rate is needed. Further rulemaking will 
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.

Final Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS) 
has considered the economic impact of this rule on small entities. 
Accordingly, AMS has prepared this final regulatory flexibility 
analysis.
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened. Marketing orders issued 
pursuant to the Act, and the rules issued thereunder, are unique in 
that they are brought about through group action of essentially small 
entities acting on their own behalf.
    There are approximately 3,000 producers of California raisins and 
approximately 20 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 rule increases 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 are 
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 expenditures to fund increased promotional programs

[[Page 73646]]

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 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.
    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 costs of 
$30,000; research costs of $129,000; operation and maintenance costs 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 costs of $30,000; research costs of 
$85,000; operation and maintenance costs 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 costs 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 costs have 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 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 is expected to remain at less than one percent 
of grower revenue.
    Regarding the impact of this action on affected entities, this 
action increases 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.
    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 are necessary as a result of this action. 
Should any changes become necessary, they would be submitted to OMB for 
approval.
    This rule imposes no additional reporting or recordkeeping 
requirements on either small or large California 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. As noted in the 
initial regulatory flexibility analysis, USDA has not identified any 
relevant Federal rules that duplicate, overlap, or conflict with this 
final rule.
    AMS is committed to complying with the E-Government Act, to promote 
the use of the internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services, and for other purposes.
    A proposed rule concerning this action was published in the Federal 
Register on September 2, 2015 (80 FR 53022). Copies of the proposed 
rule were mailed or sent via facsimile or email to all raisin handlers. 
Finally, the proposal was made available through the Internet by USDA 
and the office of the Federal Register. A 30-day comment period ending 
October 2, 2015, was provided for interested persons to respond to the 
proposal. Five comments were received: Four in support of the proposed 
rule and one opposed. The commenter in opposition questioned the use of 
funds for more committee travel and expressed concern that past trips 
have not increased sales. The commenter is also concerned that the 
increase would be at the expense of producers. This action increases 
the assessment obligation imposed on handlers. While some of these 
additional costs may be passed on to producers, the committee, which is 
comprised of producers and handlers, unanimously voted to increase the 
assessment rate. It is expected that the increase in costs would be 
offset by the benefits derived by the industry, as a whole. 
Accordingly, no change will be made to the rule as proposed.
    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/rules-regulations/moa/small-businesses. Any questions 
about the compliance guide should be sent to Jeffrey Smutny at the 
previously mentioned address in the FOR FURTHER INFORMATION CONTACT 
section.
    After consideration of all relevant material presented, including 
the information and recommendation submitted by the committee and other 
available information, it is hereby found that this rule, as 
hereinafter set forth, will tend to effectuate the declared policy of 
the Act.
    Pursuant to 5 U.S.C. 553, it is also found and determined that good 
cause exists for not postponing the effective date of this rule until 
30 days after publication in the Federal Register because handlers are 
already receiving 2015-16 raisin crop from growers, and the crop year 
began on August 1, 2015, and the marketing order requires that the 
assessment rate applies to all assessable raisins received during the 
2015-16 and subsequent seasons. Further, handlers are aware of this 
rule which was recommended at a public meeting. Also, a 30-day comment 
period was provided for in the proposed rule.

[[Page 73647]]

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 
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: November 20, 2015.
Rex A. Barnes,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2015-30013 Filed 11-24-15; 8:45 am]
BILLING CODE P



                                                73644        Federal Register / Vol. 80, No. 227 / Wednesday, November 25, 2015 / Rules and Regulations

                                                   In accordance with the Paperwork                     2015–16 fiscal period; (3) handlers are               Assessments upon raisin handlers are
                                                Reduction Act of 1995 (44 U.S.C.                        aware of this action which was                        used by the committee to fund
                                                Chapter 35), the order’s information                    unanimously recommended by the                        reasonable and necessary expenses of
                                                collection requirements have been                       Committee at a public meeting and is                  the program. The crop year begins
                                                previously approved by the Office of                    similar to other assessment rate actions              August 1 and ends July 31. The
                                                Management and Budget (OMB) and                         issued in past years; and (4) this interim            assessment rate will remain in effect
                                                assigned OMB No. 0581–0178 Vegetable                    rule provides a 60-day comment period,                indefinitely unless modified,
                                                and Specialty Crops. No changes in                      and all comments timely received will                 suspended, or terminated.
                                                those requirements are necessary as a                   be considered prior to finalization of                DATES: Effective November 27, 2015.
                                                result of this action. Should any changes               this rule.                                            FOR FURTHER INFORMATION CONTACT:
                                                become necessary, they would be                                                                               Maria Stobbe, Marketing Specialist, or
                                                submitted to OMB for approval.                          List of Subjects in 7 CFR Part 966
                                                                                                                                                              Martin Engeler, Regional Director,
                                                   This action imposes no additional                      Marketing agreements, Reporting and                 California Marketing Field Office,
                                                reporting or recordkeeping requirements                 recordkeeping requirements, Tomatoes.                 Marketing Order and Agreement
                                                on either small or large Florida tomato                   For the reasons set forth in the                    Division, Specialty Crops Program,
                                                handlers. As with all Federal marketing                 preamble, 7 CFR part 966 is amended as                AMS, USDA; Telephone: (559) 487–
                                                order programs, reports and forms are                   follows:                                              5901, Fax: (559) 487–5906; or Email:
                                                periodically reviewed to reduce
                                                                                                                                                              Maria.Stobbe@ams.usda.gov or
                                                information requirements and                            PART 966—TOMATOES GROWN IN                            Martin.Engeler@ams.usda.gov.
                                                duplication by industry and public                      FLORIDA                                                  Small businesses may request
                                                sector agencies.
                                                   AMS is committed to complying with                                                                         information on complying with this
                                                                                                        ■ 1. The authority citation for 7 CFR
                                                the E-Government Act, to promote the                                                                          regulation by contacting Jeffrey Smutny,
                                                                                                        part 966 continues to read as follows:
                                                use of the internet and other                                                                                 Marketing Order and Agreement
                                                                                                            Authority: 7 U.S.C. 601–674.                      Division, Specialty Crops Program,
                                                information technologies to provide
                                                increased opportunities for citizen                     ■ 2. Section 966.234 is revised to read               AMS, USDA, 1400 Independence
                                                access to Government information and                    as follows:                                           Avenue SW., STOP 0237, Washington,
                                                services, and for other purposes.                                                                             DC 20250–0237; Telephone: (202) 720–
                                                                                                        § 966.234    Assessment rate.                         2491, Fax: (202) 720–8938, or Email:
                                                   USDA has not identified any relevant
                                                Federal rules that duplicate, overlap, or                 On and after August 1, 2015, an                     Jeffrey.Smutny@ams.usda.gov.
                                                conflict with this rule.                                assessment rate of $0.03 per 25-pound                 SUPPLEMENTARY INFORMATION: This rule
                                                   A small business guide on complying                  container is established for Florida                  is issued under Marketing Agreement
                                                with fruit, vegetable, and specialty crop               tomatoes.                                             and Order No. 989, both as amended (7
                                                marketing agreements and orders may                       Dated: November 20, 2015.                           CFR part 989), regulating the handling
                                                be viewed at: http://www.ams.usda.gov/                  Rex A. Barnes,                                        of raisins produced from grapes grown
                                                rules-regulations/moa/small-businesses.                 Associate Administrator, Agricultural                 in California, hereinafter referred to as
                                                Any questions about the compliance                      Marketing Service.                                    the ‘‘order.’’ The order is effective under
                                                guide should be sent to Jeffery Smutny                  [FR Doc. 2015–30018 Filed 11–24–15; 8:45 am]          the Agricultural Marketing Agreement
                                                at the previously mentioned address in                  BILLING CODE P
                                                                                                                                                              Act of 1937, as amended (7 U.S.C. 601–
                                                the FOR FURTHER INFORMATION CONTACT                                                                           674), hereinafter referred to as the
                                                section.                                                                                                      ‘‘Act.’’
                                                   After consideration of all relevant                  DEPARTMENT OF AGRICULTURE                                The Department of Agriculture
                                                material presented, including the                                                                             (USDA) is issuing this rule in
                                                information and recommendation                          Agricultural Marketing Service                        conformance with Executive Orders
                                                submitted by the Committee and other                                                                          12866, 13563, and 13175.
                                                available information, it is hereby found               7 CFR Part 989                                           This rule has been reviewed under
                                                that this rule, as hereinafter set forth,                                                                     Executive Order 12988, Civil Justice
                                                will tend to effectuate the declared                    [Doc. No. AMS–FV–15–0032; FV15–989–2                  Reform. Under the marketing order now
                                                                                                        FR]                                                   in effect, California raisin handlers are
                                                policy of the Act.
                                                   Pursuant to 5 U.S.C. 553, it is also                                                                       subject to assessments. Funds to
                                                                                                        Raisins Produced From Grapes Grown
                                                found and determined upon good cause                                                                          administer the order are derived from
                                                                                                        in California; Increased Assessment
                                                that it is impracticable, unnecessary,                                                                        assessments. It is intended that the
                                                                                                        Rate
                                                and contrary to the public interest to                                                                        assessment rate as issued herein will be
                                                give preliminary notice prior to putting                AGENCY:  Agricultural Marketing Service,              applicable to all assessable raisins
                                                this rule into effect, and that good cause              USDA.                                                 beginning on August 1, 2015, and
                                                exists for not postponing the effective                 ACTION: Final rule.                                   continue until amended, suspended, or
                                                date of this rule until 30 days after                                                                         terminated.
                                                publication in the Federal Register                     SUMMARY:   This rule implements a                        The Act provides that administrative
                                                because: (1) The 2015–16 fiscal period                  recommendation from the Raisin                        proceedings must be exhausted before
                                                began on August 1, 2015, and the                        Administrative Committee (committee)                  parties may file suit in court. Under
                                                marketing order requires that the rate of               for an increase of the assessment rate                section 608c(15)(A) of the Act, any
                                                assessment for each fiscal period apply                 established for the 2015–16 and                       handler subject to an order may file
jstallworth on DSK7TPTVN1PROD with RULES




                                                to all assessable Florida tomatoes                      subsequent crop years from $14.00 to                  with USDA a petition stating that the
                                                handled during such fiscal period; (2)                  $17.00 per ton of California raisins                  order, any provision of the order, or any
                                                the Committee needs to have sufficient                  handled under the marketing order                     obligation imposed in connection with
                                                funds to pay its expenses which are                     (order). The committee locally                        the order is not in accordance with law
                                                incurred on a continuous basis and this                 administers the order, and is comprised               and request a modification of the order
                                                action decreases the assessment rate for                of producers and handlers of raisins                  or to be exempted therefrom. Such
                                                assessable tomatoes beginning with the                  operating within the area of production.              handler is afforded the opportunity for


                                           VerDate Sep<11>2014   15:12 Nov 24, 2015   Jkt 238001   PO 00000   Frm 00008   Fmt 4700   Sfmt 4700   E:\FR\FM\25NOR1.SGM   25NOR1


                                                             Federal Register / Vol. 80, No. 227 / Wednesday, November 25, 2015 / Rules and Regulations                                        73645

                                                a hearing on the petition. After the                    research and studies costs of $129,000;               from the committee or USDA.
                                                hearing, USDA would rule on the                         operation and maintenance costs of the                Committee meetings are open to the
                                                petition. The Act provides that the                     generic marketing programs of                         public and interested persons may
                                                district court of the United States in any              $3,520,178; and a contingency of                      express their views at these meetings.
                                                district in which the handler is an                     $355,503. Subtracted from these                       USDA will evaluate committee
                                                inhabitant, or has his or her principal                 expenses is $215,091, which represents                recommendations and other available
                                                place of business, has jurisdiction to                  reimbursable costs for the shared                     information to determine whether
                                                review USDA’s ruling on the petition,                   management of the State marketing                     modification of the assessment rate is
                                                provided an action is filed not later than              program.                                              needed. Further rulemaking will be
                                                20 days after the date of the entry of the                In comparison, last year’s approved                 undertaken as necessary. The
                                                ruling.                                                 budgeted expenditures included:                       committee’s 2015–16 budget and those
                                                   This rule increases the assessment                   Salaries and employee-related costs of                for subsequent crop years, would be
                                                rate established by the committee for the               $1,337,100; administration costs of                   reviewed and, as appropriate, approved
                                                2015–16 and subsequent crop years                       $493,500; compliance activities costs of              by USDA.
                                                from $14.00 to $17.00 per ton of                        $30,000; research and studies costs of
                                                California raisins handled.                             $85,000; operation and maintenance                    Final Regulatory Flexibility Analysis
                                                   Sections 989.79 and 989.80,                          costs of the generic marketing programs                  Pursuant to requirements set forth in
                                                respectively, of the order provide                      of $3,296,800; and a contingency of                   the Regulatory Flexibility Act (RFA) (5
                                                authority for the committee, with the                   $100,000. Reimbursable costs for the                  U.S.C. 601–612), the Agricultural
                                                approval of USDA, to formulate an                       shared management of the State                        Marketing Service (AMS) has
                                                annual budget of expenses, and to                       marketing program of $166,860 were                    considered the economic impact of this
                                                collect assessments from handlers to                    subtracted, resulting in a total approved             rule on small entities. Accordingly,
                                                administer the program. The members                     budget for the 2014–15 crop year of                   AMS has prepared this final regulatory
                                                of the committee are producers and                      $5,175,540.                                           flexibility analysis.
                                                handlers of California raisins. They are                  The committee believes that more                       The purpose of the RFA is to fit
                                                familiar with the committee’s needs and                 funds should be spent in promoting                    regulatory actions to the scale of
                                                with costs for goods and services in                    raisins internationally, including China.             businesses subject to such actions in
                                                their local area, and are, thus, in a                   For that reason, budgeted expenses in                 order that small businesses will not be
                                                position to formulate an appropriate                    those endeavors have been increased:                  unduly or disproportionately burdened.
                                                budget and assessment rate. The                         Research and studies costs increased                  Marketing orders issued pursuant to the
                                                assessment rate is formulated and                       from $85,000 for the 2014–15 crop year                Act, and the rules issued thereunder, are
                                                discussed in a public meeting. Thus, all                to $129,000 for the 2015–16 crop year;                unique in that they are brought about
                                                directly affected persons have an                       and operation and maintenance costs of                through group action of essentially
                                                opportunity to participate and provide                  generic marketing programs increased                  small entities acting on their own
                                                input.                                                  from $3,296,800 for the 2014–15 crop                  behalf.
                                                   For the 2010–11 and subsequent crop                  year to $3,520,178 for the 2015–16 crop                  There are approximately 3,000
                                                years, the committee recommended, and                   year. In addition, the committee                      producers of California raisins and
                                                USDA approved, an assessment rate that                  included a contingency fund for                       approximately 20 handlers subject to
                                                would continue in effect from crop year                 unexpected expenses and opportunities                 regulation under the marketing order.
                                                to crop year unless modified,                           that may occur during the year.                       The Small Business Administration
                                                suspended, or terminated by USDA                          The quantity of assessable raisins for              defines small agricultural producers as
                                                upon recommendation and information                     2015–16 crop year was estimated to be                 those having annual receipts less than
                                                submitted by the committee or other                     343,088 tons. At the assessment rate of               $750,000, and defines small agricultural
                                                information available to USDA.                          $17.00 per ton, the anticipated                       service firms as those whose annual
                                                   The committee met on June 11, 2015,                  assessment income would be                            receipts are less than $7,000,000. (13
                                                and recommended an assessment rate                      $5,832,496. Sufficient income should be               CFR 121.201.)
                                                increase from $14.00 per ton to $17.00                  generated at the higher assessment rate                  Based upon shipment data and other
                                                per ton by a unanimous vote. At this                    for the committee to meet its anticipated             information provided by the committee,
                                                meeting, the committee also                             expenses.                                             it may be concluded that a majority of
                                                recommended a budget for the 2015–16                      Pursuant to § 989.81(a) of the order,               producers and approximately 18
                                                crop year, with recommended expenses                    any unexpended assessment funds from                  handlers of California raisins may be
                                                and contingency reserve totaling                        the crop year must be credited or                     classified as small entities.
                                                $5,832,496. The vote on this                            refunded to the handlers from whom                       This rule increases the assessment
                                                recommendation was also unanimous.                      collected.                                            rate established for the committee and
                                                The assessment rate of $17.00 per ton is                  The assessment rate established in                  collected from handlers for the 2015–16
                                                expected to generate assessment income                  this rule will continue in effect                     and subsequent crop years from $14.00
                                                of $5,832,496, which should be                          indefinitely unless modified,                         to $17.00 per ton of assessable raisins
                                                sufficient to fund the 2015–16 expenses.                suspended, or terminated by USDA                      acquired by handlers.
                                                   As previously stated, the committee’s                upon recommendation and information                      The committee reviewed and
                                                budget for the 2015–16 crop year is                     submitted by the committee or other                   identified the expenses that are
                                                $5,832,496, and the assessment rate is                  available information.                                reasonable and necessary to continue
                                                $17.00 per ton, which is $3.00 per ton                    Although this assessment rate will be               program operations during the 2015–16
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                                                higher than the rate currently in effect.               in effect for an indefinite period, the               crop year. The resulting recommended
                                                   The major expenditures                               committee will continue to meet prior to              budget totals $5,832,496 for the 2015–16
                                                recommended by the committee for the                    or during each crop year to recommend                 crop year. This represents an overall
                                                2015–16 crop year include: Salaries and                 a budget of expenses and consider                     increase from the 2014–15 budget,
                                                employee-related costs of $1,402,906;                   recommendations for modification of                   which totaled $5,175,540. The 2015–16
                                                administration costs of $610,000;                       the assessment rate. The dates and times              budget includes additional expenditures
                                                compliance activities costs of $30,000;                 of committee meetings are available                   to fund increased promotional programs


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                                                73646        Federal Register / Vol. 80, No. 227 / Wednesday, November 25, 2015 / Rules and Regulations

                                                in export markets, and a contingency                    assessment rate were reasonable and                      A proposed rule concerning this
                                                fund of $355,503, which provides a                      necessary to properly administer the                  action was published in the Federal
                                                safety net to cover unexpected expenses                 order.                                                Register on September 2, 2015 (80 FR
                                                and opportunities that present                             A review of statistical data on the                53022). Copies of the proposed rule
                                                themselves during the 2015–16 crop                      California raisin industry indicates that             were mailed or sent via facsimile or
                                                year.                                                   assessment revenue has consistently                   email to all raisin handlers. Finally, the
                                                  The quantity of assessable raisins for                been less than one percent of grower                  proposal was made available through
                                                2015–16 crop year was estimated to be                   revenue in recent years. With a $17.00                the Internet by USDA and the office of
                                                343,088 tons. At the assessment rate of                 assessment rate, assessment revenue is                the Federal Register. A 30-day comment
                                                $17.00 per ton, the anticipated                         expected to remain at less than one                   period ending October 2, 2015, was
                                                assessment income would be                              percent of grower revenue.                            provided for interested persons to
                                                $5,832,496. Sufficient income should be                    Regarding the impact of this action on             respond to the proposal. Five comments
                                                generated at the higher assessment rate                 affected entities, this action increases              were received: Four in support of the
                                                for the committee to meet its anticipated               the assessment obligation imposed on                  proposed rule and one opposed. The
                                                expenses.                                               handlers. While increased assessments
                                                  The major expenditures                                                                                      commenter in opposition questioned the
                                                                                                        impose additional costs on handlers                   use of funds for more committee travel
                                                recommended by the committee for the                    regulated under the order, the rates are
                                                2015–16 crop year include: Salaries and                                                                       and expressed concern that past trips
                                                                                                        uniform on all handlers, and                          have not increased sales. The
                                                employee-related costs of $1,402,906;                   proportional to the size of their
                                                administration costs of $610,000;                                                                             commenter is also concerned that the
                                                                                                        businesses. It is expected that these                 increase would be at the expense of
                                                compliance activities costs of $30,000;                 costs would be offset by the benefits
                                                research costs of $129,000; operation                                                                         producers. This action increases the
                                                                                                        derived from the operation of the order.              assessment obligation imposed on
                                                and maintenance costs of generic
                                                                                                           In addition, the meetings of the Audit             handlers. While some of these
                                                marketing programs of $3,520,178; and
                                                                                                        and Marketing Subcommittees, and the                  additional costs may be passed on to
                                                a contingency of $355,503.
                                                  In comparison, last year’s approved                   full committee were widely publicized                 producers, the committee, which is
                                                budgeted expenditures included:                         throughout the California raisin                      comprised of producers and handlers,
                                                Salaries and employee-related costs of                  industry, and all interested persons                  unanimously voted to increase the
                                                $1,337,100; administration costs of                     were invited to attend the meetings and               assessment rate. It is expected that the
                                                $493,500; compliance activities costs of                encouraged to participate in committee                increase in costs would be offset by the
                                                $30,000; research costs of $85,000;                     deliberations on all issues. Like all
                                                                                                                                                              benefits derived by the industry, as a
                                                operation and maintenance costs of                      subcommittee and committee meetings,
                                                                                                                                                              whole. Accordingly, no change will be
                                                generic marketing programs of                           the June 8, 2015 and June 11, 2015,
                                                                                                                                                              made to the rule as proposed.
                                                $3,296,800; and a contingency of                        meetings were public meetings, and all
                                                                                                        entities, both large and small, were able                A small business guide on complying
                                                $100,000. The total budget approved for                                                                       with fruit, vegetable, and specialty crop
                                                the 2014–15 crop year was $5,175,540.                   to express views on this issue.
                                                                                                           In accordance with the Paperwork                   marketing agreements and orders may
                                                  The committee believes that more
                                                                                                        Reduction Act of 1995 (44 U.S.C.                      be viewed at: http://www.ams.usda.gov/
                                                funds should be spent in promoting
                                                raisins internationally, including China.               Chapter 35), the order’s information                  rules-regulations/moa/small-businesses.
                                                For that reason, expenses for research                  collection requirements have been                     Any questions about the compliance
                                                and promotion activities have been                      previously approved by the Office of                  guide should be sent to Jeffrey Smutny
                                                increased: Operation and maintenance                    Management and Budget (OMB) and                       at the previously mentioned address in
                                                costs of generic marketing programs                     assigned OMB No. 0581–0178,                           the FOR FURTHER INFORMATION CONTACT
                                                increased from $3,296,800 for the 2014–                 ‘‘Vegetable and Specialty Crops.’’ No                 section.
                                                15 crop year to $3,520,178 for the 2015–                changes in those requirements are                        After consideration of all relevant
                                                16 crop year, and research costs have                   necessary as a result of this action.                 material presented, including the
                                                increased from $85,000 for the 2014–15                  Should any changes become necessary,                  information and recommendation
                                                crop year to $129,000 for the 2015–16                   they would be submitted to OMB for                    submitted by the committee and other
                                                crop year. In order to fund these                       approval.                                             available information, it is hereby found
                                                additional expenditures, the committee                     This rule imposes no additional                    that this rule, as hereinafter set forth,
                                                recommended an increased assessment                     reporting or recordkeeping requirements               will tend to effectuate the declared
                                                rate.                                                   on either small or large California raisin            policy of the Act.
                                                  Pursuant to § 989.81(a) of the order,                 handlers. As with all Federal marketing
                                                                                                        order programs, reports and forms are                    Pursuant to 5 U.S.C. 553, it is also
                                                any unexpended assessment funds from
                                                the crop year must be credited or                       periodically reviewed to reduce                       found and determined that good cause
                                                refunded to the handlers from whom                      information requirements and                          exists for not postponing the effective
                                                collected.                                              duplication by industry and public                    date of this rule until 30 days after
                                                  Prior to arriving at this budget and                  sector agencies. As noted in the initial              publication in the Federal Register
                                                assessment rate, the committee                          regulatory flexibility analysis, USDA                 because handlers are already receiving
                                                considered information from various                     has not identified any relevant Federal               2015–16 raisin crop from growers, and
                                                sources, such as the committee’s Audit                  rules that duplicate, overlap, or conflict            the crop year began on August 1, 2015,
                                                and Marketing Subcommittees.                            with this final rule.                                 and the marketing order requires that
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                                                Alternative spending levels were                           AMS is committed to complying with                 the assessment rate applies to all
                                                discussed by the Marketing and Audit                    the E-Government Act, to promote the                  assessable raisins received during the
                                                Subcommittees, which met on June 8,                     use of the internet and other                         2015–16 and subsequent seasons.
                                                2015 and June 11, 2015, to review the                   information technologies to provide                   Further, handlers are aware of this rule
                                                committee’s financial operations.                       increased opportunities for citizen                   which was recommended at a public
                                                  The committee ultimately decided                      access to Government information and                  meeting. Also, a 30-day comment period
                                                that the recommended budget and                         services, and for other purposes.                     was provided for in the proposed rule.


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                                                             Federal Register / Vol. 80, No. 227 / Wednesday, November 25, 2015 / Rules and Regulations                                        73647

                                                List of Subjects in 7 CFR Part 989                      SUPPLEMENTARY INFORMATION:       In the rule          SUMMARY:   The Commission approves
                                                  Grapes, Marketing agreements,                         that is the subject of this correction, the           Reliability Standards and definitions of
                                                Raisins, Reporting and recordkeeping                    Agency revised 7 CFR 1956.101 as                      terms submitted in three related
                                                requirements.                                           intended, but the Agency inadvertently                petitions by the North American Electric
                                                                                                        did not make the correct conforming                   Reliability Corporation (NERC), the
                                                  For the reasons set forth in the                      change in 7 CFR 1956.147. To correct                  Commission-approved Electric
                                                preamble, 7 CFR part 989 is amended as                  this oversight, the Agency is ‘‘reserving’’           Reliability Organization. The
                                                follows:                                                7 CFR 1956.147 in its entirety. This                  Commission approves Reliability
                                                PART 989—RAISINS PRODUCED                               correction has no substantive effect on               Standards EOP–011–1 (Emergency
                                                FROM GRAPES GROWN IN                                    how debts are settled under this part.                Operations) and PRC–010–1
                                                CALIFORNIA                                                                                                    (Undervoltage Load Shedding). The
                                                                                                        Need for Correction
                                                                                                                                                              proposed Reliability Standards
                                                ■ 1. The authority citation for 7 CFR                     As published, the text that remains in              consolidate, streamline and clarify the
                                                part 989 continues to read as follows:                  7 CFR 1956.147 after the March 13,                    existing requirements of certain
                                                                                                        2015, rule may be misleading and cause                currently-effective Emergency
                                                    Authority: 7 U.S.C. 601–674.
                                                                                                        confusion as a result of the changes                  Preparedness and Operations (EOP) and
                                                ■ 2. Section 989.347 is revised to read                 made to 7 CFR 1956.101 in the March                   Protection and Control (PRC) standards.
                                                as follows:                                             13, 2015, rule.                                       The Commission also approves NERC’s
                                                                                                        List of Subjects in 7 CFR Part 1956                   revised definition of the term Remedial
                                                § 989.347    Assessment rate.
                                                                                                                                                              Action Scheme as set forth in the NERC
                                                  On and after August 1, 2015, an                         Loan programs—agriculture, Loan                     Glossary of Terms Used in Reliability
                                                assessment rate of $17.00 per ton is                    programs—housing and community                        Standards, and modifications of
                                                established for assessable raisins                      development.                                          specified Reliability Standards to
                                                produced from grapes grown in                             Accordingly, 7 CFR 1956.147 is                      incorporate the revised definition.
                                                California.                                             corrected by making the following                     Further, the Commission approves the
                                                  Dated: November 20, 2015.                             correcting amendment:                                 implementation plans, and the
                                                Rex A. Barnes,                                                                                                retirement of certain currently-effective
                                                Associate Administrator, Agricultural                   PART 1956—DEBT SETTLEMENT                             Reliability Standards.
                                                Marketing Service.                                                                                            DATES: This rule will become effective
                                                                                                        ■ 1. The authority citation for part 1956
                                                [FR Doc. 2015–30013 Filed 11–24–15; 8:45 am]                                                                  January 25, 2016.
                                                                                                        continues to read as follows:
                                                BILLING CODE P                                                                                                FOR FURTHER INFORMATION CONTACT:
                                                                                                          Authority: 5 U.S.C. 301; and 7 U.S.C.               Juan Villar (Technical Information),
                                                                                                        1989.                                                   Office of Electric Reliability, Federal
                                                DEPARTMENT OF AGRICULTURE                               § 1956.147    [Removed and Reserved]                    Energy Regulatory Commission, 888
                                                                                                                                                                First Street NE., Washington, DC
                                                Rural Housing Service                                   ■   2. Remove and reserve § 1956.147.                   20426, (772) 678–6496,
                                                                                                          Dated: November 12, 2015.                             Juan.Villar@ferc.gov.
                                                Rural Business-Cooperative Service                      Lisa Mensah,                                          Nick Henery (Technical Information),
                                                                                                        Under Secretary, Rural Development.                     Office of Electric Reliability, Federal
                                                Rural Utilities Service                                                                                         Energy Regulatory Commission, 888
                                                                                                          Dated: November 17, 2015.
                                                                                                                                                                First Street NE., Washington, DC
                                                Farm Service Agency                                     Michael Scuse,
                                                                                                                                                                20426, (202) 502–8636,
                                                                                                        Under Secretary, Farm and Foreign
                                                                                                                                                                Nick.Henery@ferc.gov.
                                                7 CFR Part 1956                                         Agricultural Services.
                                                                                                                                                              Mark Bennett (Legal Information), Office
                                                                                                        [FR Doc. 2015–29781 Filed 11–24–15; 8:45 am]
                                                RIN 0570–AA88                                                                                                   of the General Counsel, Federal
                                                                                                        BILLING CODE 3410–XY–P                                  Energy Regulatory Commission, 888
                                                Rural Development Loan Servicing;                                                                               First Street NE., Washington, DC
                                                Correction                                                                                                      20426, (202) 502–8524,
                                                                                                        DEPARTMENT OF ENERGY                                    Mark.Bennett@ferc.gov.
                                                AGENCY:   Rural Housing Service, Rural
                                                                                                        Federal Energy Regulatory                             SUPPLEMENTARY INFORMATION:
                                                Business-Cooperative Service, Rural
                                                Utilities Service, and Farm Service                     Commission                                            Order No. 818
                                                Agency USDA.                                                                                                  Final Rule
                                                ACTION: Direct final rule; correction.                  18 CFR Part 40
                                                                                                        [Docket Nos. RM15–7–000, RM15–12–000,                 (Issued November 19, 2015)
                                                SUMMARY:    This document contains                      and RM15–13–000 Order No. 818]                          1. Pursuant to section 215 of the
                                                corrections to the published rule in the
                                                Federal Register of March 13, 2015,                                                                           Federal Power Act (FPA),1 the
                                                                                                        Revisions to Emergency Operations                     Commission approves Reliability
                                                entitled ‘‘Rural Development Loan                       Reliability Standards; Revisions to
                                                Servicing.’’                                                                                                  Standards and definitions of terms
                                                                                                        Undervoltage Load Shedding                            submitted in three related petitions by
                                                DATES:   Effective November 25, 2015.                   Reliability Standards; Revisions to the               the North American Electric Reliability
jstallworth on DSK7TPTVN1PROD with RULES




                                                FOR FURTHER INFORMATION CONTACT:                        Definition of ‘‘Remedial Action                       Corporation (NERC), the Commission-
                                                Melvin Padgett, Rural Development,                      Scheme’’ and Related Reliability                      approved Electric Reliability
                                                Business Programs, U.S. Department of                   Standards                                             Organization (ERO). In particular, the
                                                Agriculture, 1400 Independence Avenue                   AGENCY:  Federal Energy Regulatory                    Commission approves Reliability
                                                SW., STOP 3226, Washington, DC                          Commission, Department of Energy.                     Standards EOP–011–1 (Emergency
                                                20250–3225; telephone (202) 720–1495;
                                                                                                        ACTION: Final rule.
                                                email melvin.padgett@wdc.usda./gov.                                                                             1 16   U.S.C. 824o.



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Document Created: 2018-03-01 11:16:04
Document Modified: 2018-03-01 11:16:04
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesEffective November 27, 2015.
ContactMaria Stobbe, 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]
FR Citation80 FR 73644 
CFR AssociatedGrapes; Marketing Agreements; Raisins and Reporting and Recordkeeping Requirements

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