81_FR_12652 81 FR 12605 - Grapes Grown in a Designated Area of Southeastern California; Increased Assessment Rate

81 FR 12605 - Grapes Grown in a Designated Area of Southeastern California; Increased Assessment Rate

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 81, Issue 47 (March 10, 2016)

Page Range12605-12607
FR Document2016-05420

This proposed rule would implement a recommendation from the California Desert Grape Administrative Committee (Committee) to increase the assessment rate established for the 2016 and subsequent fiscal periods from $0.0250 to $0.0300 per 18-pound lug of grapes handled under the marketing order (order). The Committee locally administers the order, and is comprised of producers and handlers of grapes grown in a designated area of southeastern California. Assessments upon grape handlers are used by the Committee to fund reasonable and necessary expenses of the program. The fiscal period began on January 1 and ends December 31. The assessment rate would remain in effect indefinitely unless modified, suspended, or terminated.

Federal Register, Volume 81 Issue 47 (Thursday, March 10, 2016)
[Federal Register Volume 81, Number 47 (Thursday, March 10, 2016)]
[Proposed Rules]
[Pages 12605-12607]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-05420]


========================================================================
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. 81, No. 47 / Thursday, March 10, 2016 / 
Proposed Rules

[[Page 12605]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 925

[Doc. No. AMS-SC-15-0077; SC16-925-1 PR]


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

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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

SUMMARY: This proposed rule would implement a recommendation from the 
California Desert Grape Administrative Committee (Committee) to 
increase the assessment rate established for the 2016 and subsequent 
fiscal periods from $0.0250 to $0.0300 per 18-pound lug of grapes 
handled under the marketing order (order). The Committee locally 
administers the order, and is comprised of producers and handlers of 
grapes grown in a designated area of southeastern California. 
Assessments upon grape handlers are used by the Committee to fund 
reasonable and necessary expenses of the program. The fiscal period 
began on January 1 and ends December 31. The assessment rate would 
remain in effect indefinitely unless modified, suspended, or 
terminated.

DATES: Comments must be received by March 25, 2016.

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 docket number and 
the date and page number of this issue of the Federal Register and will 
be available for public inspection in the Office of the Docket Clerk 
during regular business hours, or can be viewed at: http://www.regulations.gov. All comments submitted in response to this 
proposed rule will be included in the record and will be made available 
to the public. Please be advised that the identity of the individuals 
or entities submitting the comments will be made public on the internet 
at the address provided above.

FOR FURTHER INFORMATION CONTACT: Kathie Notoro, Marketing Specialist, 
or Jeffrey Smutny, 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 Antoinette Carter, 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 proposed rule is issued under Marketing 
Order No. 925, as amended (7 CFR part 925), regulating the handling of 
grapes grown in a designated area of southeastern California. 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, grape 
handlers in a designated area of southeastern California are subject to 
assessments. Funds to administer the order are derived from such 
assessments. It is intended that the assessment rate as proposed herein 
would be applicable to all assessable grapes beginning on January 1, 
2016, 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 2016 and subsequent fiscal periods from 
$0.0250 to $0.0300 per 18-pound lug of grapes handled.
    The grape order provides authority for the Committee, with the 
approval of USDA, to formulate an annual budget of expenses and collect 
assessments from handlers to administer the program. The members of the 
Committee are producers and handlers of grapes grown in a designated 
area of southeastern California. They are familiar with the Committee's 
needs and with the costs of goods and services in their local area and 
are thus in a position to formulate an appropriate budget and 
assessment rate. The assessment rate is formulated and discussed in a 
public meeting. Thus, all directly affected persons have an opportunity 
to participate and provide input.
    For the 2015 and subsequent fiscal periods, the Committee 
recommended, and the USDA approved, an assessment rate that would 
continue in effect from fiscal period to fiscal period unless modified, 
suspended, or terminated by USDA based upon recommendation and 
information submitted by the Committee or other information available 
to USDA.
    The Committee met on November 12, 2015, and unanimously recommended 
2016 expenditures of $143,500, a contingency reserve fund of $6,500, 
and an assessment rate of $0.0300 per 18-pound lug of grapes handled. 
In comparison, last year's budgeted expenditures were $135,500. The 
Committee recommended a crop estimate of 5,000,000 18-pound lugs, which 
is lower than the 5,800,000 18-

[[Page 12606]]

pound lugs handled last year. The Committee also recommended carrying 
over a financial reserve of $47,500, which would increase to $54,000 if 
the contingency fund is not expended. The assessment rate of $0.0300 
per 18-pound lug of grapes handled recommended by the Committee is 
$0.0050 higher than the $0.0250 rate currently in effect. The higher 
assessment rate, applied to shipments of 5,000,000 18-pound lugs, would 
generate $150,000 in revenue and be sufficient to cover anticipated 
expenses.
    The major expenditures recommended by the Committee for the 2016 
fiscal period include $28,500 for research, $20,080 for office 
expenses, $56,500 for management and compliance expenses, $25,000 for 
consultation services, and $6,500 for a contingency reserve. The 
$28,500 research project is a continuation of a vine study in progress 
by the University of California, Riverside. In comparison, major 
expenditures for the 2015 fiscal period included $15,500 for research, 
$17,000 for general office expenses, $62,750 for management and 
compliance expenses, $25,000 for consultation services, and $9,500 for 
a contingency reserve. Overall 2016 expenditures include a decrease in 
management and compliance expenses, and increases in office expenses, 
and research expenses.
    The assessment rate recommended by the Committee was derived by 
evaluating several factors, including estimated shipments for the 2016 
season, budgeted expenses, and the level of available financial 
reserves. The Committee determined that the $0.0300 assessment rate 
would generate $150,000 in revenue to cover the budgeted expenses of 
$143,500, and a contingency reserve fund of $6,500.
    Reserve funds by the end of 2016 are projected to be $47,500 if the 
$6,500 added to the contingency fund is expended or $54,000 if it is 
not expended. Both amounts are well within the amount authorized under 
the order. Section 925.41 of the order permits the Committee to 
maintain approximately one fiscal period's expenses in reserve.
    The proposed assessment rate would continue in effect indefinitely 
unless modified, suspended, or terminated by USDA based upon a 
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 the 
Committee's 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 
2016 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 13 handlers of southeastern California 
grapes who are subject to regulation under the marketing order and 
about 41 grape producers in the production area. Small agricultural 
service firms are defined by the Small Business Administration (13 CFR 
121.201) as those having annual receipts of less than $7,500,000, and 
small agricultural producers are defined as those whose annual receipts 
are less than $750,000. Ten of the 13 handlers subject to regulation 
have annual grape sales of less than $7,500,000, according to USDA 
Market News Service and Committee data. In addition, information from 
the Committee and USDA's Market News indicates that at least 10 of 41 
producers have annual receipts of less than $750,000. Thus, it may be 
concluded that a majority of the grape handlers regulated under the 
order and about 10 of the producers could be classified as small 
entities under the Small Business Administration's definitions.
    This proposed rule would increase the assessment rate established 
for the Committee and collected from handlers for the 2016 and 
subsequent fiscal periods from $0.0250 to $0.0300 per 18-pound lug of 
grapes. The Committee unanimously recommended 2016 expenditures of 
$143,500, a contingency reserve fund of $6,500, and an assessment rate 
of $0.0300 per 18-pound lug of grapes handled. The proposed assessment 
rate of $0.0300 is $0.0050 higher than the 2015 rate currently in 
effect. The quantity of assessable grapes for the 2016 season is 
estimated at 5,000,000 18-pound lugs. Thus, the $0.0300 rate should 
generate $150,000 in income. In addition, reserve funds at the end of 
the year are projected to be $54,000, which is well within the order's 
limitation of approximately one fiscal period's expenses.
    The major expenditures recommended by the Committee for the 2016 
fiscal period include $28,500 for research, $20,080 for general office 
expenses, $56,500 for management and compliance expenses, $25,000 for 
consultation services and $6,500 for the contingency reserve. In 
comparison, major expenditures for the 2015 fiscal period included 
$15,500 for research, $17,000 for general office expenses, $62,750 for 
management and compliance expenses, $25,000 for consultation services, 
and $9,500 for a contingency reserve. Overall 2016 expenditures include 
a decrease in management and compliance expenses, and increases in 
general office expenses, and research expenses.
    Prior to arriving at this budget, the Committee considered 
alternative expenditures and assessment rates, to include not 
increasing the $0.0250 assessment rate currently in effect. Based on a 
crop estimate of 5,000,000 18-pound lugs, the Committee ultimately 
determined that increasing the assessment rate to $0.0300 would 
generate sufficient funds to cover budgeted expenses. Reserve funds at 
the end of the 2016 fiscal period are projected to be $47,500 if the 
$6,500 contingency fund is expended or $54,000 if it is not expended. 
These amounts are well within the amount authorized under the order.
    A review of historical crop and price information, as well as 
preliminary information pertaining to the upcoming fiscal period, 
indicates that the shipping point price for the 2015 season averaged 
about $22.75 per 18-pound lug of California desert grapes handled. If 
the 2016 price is similar to the 2015 price, estimated assessment 
revenue as a percentage of total estimated handler revenue would be 
0.13 percent for the 2016 season ($0.0300 divided by $22.75 per 18-
pound lug).
    This action would increase the assessment obligation imposed on 
handlers. While assessments impose

[[Page 12607]]

some additional costs on handlers, the costs are minimal and uniform on 
all handlers. However, these costs would be offset by the benefits 
derived from the operation of the marketing order. In addition, the 
Committee's meeting was widely publicized throughout the grape 
production area and all interested persons were invited to attend and 
participate in Committee deliberations on all issues. Like all 
Committee meetings, the November 12, 2015, meeting was a public meeting 
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 as a 
result of this action are necessary. Should any changes become 
necessary, they would be submitted to OMB for approval.
    This proposed rule would impose no additional reporting or 
recordkeeping requirements on either small or large California grape 
handlers. As with all Federal marketing order programs, reports and 
forms are periodically reviewed to reduce information requirements and 
duplication by industry and public sector agencies.
    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/rules-regulations/moa/small-businesses. Any questions 
about the compliance guide should be sent to Antoinette Carter 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 2016 fiscal period begins on January 1, 2016, and the 
order requires that the rate of assessment for each fiscal period apply 
to all assessable grapes handled during such fiscal period; (2) the 
Committee needs to have sufficient funds to pay its expenses, which are 
incurred on a continuous basis; and (3) handlers are aware of this 
action, which was unanimously recommended by the Committee at a public 
meeting and is similar to other assessment rate actions issued in past 
years.

List of Subjects in 7 CFR Part 925

    Grapes, Marketing agreements, Reporting and recordkeeping 
requirements.

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

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

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

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

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


Sec.  925.215  Assessment rate.

    On and after January 1, 2016, an assessment rate of $0.0300 per 18-
pound lug is established for grapes grown in a designated area of 
southeastern California.

    Dated: March 3, 2016.
Elanor Starmer,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2016-05420 Filed 3-9-16; 8:45 am]
 BILLING CODE P



                                                                                                                                                                                                    12605

                                                    Proposed Rules                                                                                                Federal Register
                                                                                                                                                                  Vol. 81, No. 47

                                                                                                                                                                  Thursday, March 10, 2016



                                                    This section of the FEDERAL REGISTER                    regular business hours, or can be viewed              with USDA a petition stating that the
                                                    contains notices to the public of the proposed          at: http://www.regulations.gov. All                   order, any provision of the order, or any
                                                    issuance of rules and regulations. The                  comments submitted in response to this                obligation imposed in connection with
                                                    purpose of these notices is to give interested          proposed rule will be included in the                 the order is not in accordance with law
                                                    persons an opportunity to participate in the            record and will be made available to the              and request a modification of the order
                                                    rule making prior to the adoption of the final
                                                    rules.
                                                                                                            public. Please be advised that the                    or to be exempted therefrom. Such
                                                                                                            identity of the individuals or entities               handler is afforded the opportunity for
                                                                                                            submitting the comments will be made                  a hearing on the petition. After the
                                                    DEPARTMENT OF AGRICULTURE                               public on the internet at the address                 hearing, USDA would rule on the
                                                                                                            provided above.                                       petition. The Act provides that the
                                                    Agricultural Marketing Service                          FOR FURTHER INFORMATION CONTACT:                      district court of the United States in any
                                                                                                            Kathie Notoro, Marketing Specialist, or               district in which the handler is an
                                                    7 CFR Part 925                                          Jeffrey Smutny, Regional Director,                    inhabitant, or has his or her principal
                                                    [Doc. No. AMS–SC–15–0077; SC16–925–1                    California Marketing Field Office,                    place of business, has jurisdiction to
                                                    PR]                                                     Marketing Order and Agreement                         review USDA’s ruling on the petition,
                                                                                                            Division, Specialty Crops Program,                    provided an action is filed not later than
                                                    Grapes Grown in a Designated Area of                    AMS, USDA; Telephone: (559) 487–                      20 days after the date of the entry of the
                                                    Southeastern California; Increased                      5901, Fax: (559) 487–5906, or Email:                  ruling.
                                                    Assessment Rate                                         Kathie.Notoro@ams.usda.gov or                            This proposed rule would increase
                                                                                                            Jeffrey.Smutny@ams.usda.gov.                          the assessment rate established for the
                                                    AGENCY:  Agricultural Marketing Service,                   Small businesses may request                       Committee for the 2016 and subsequent
                                                    USDA.                                                   information on complying with this                    fiscal periods from $0.0250 to $0.0300
                                                    ACTION: Proposed rule.                                  regulation by contacting Antoinette                   per 18-pound lug of grapes handled.
                                                                                                            Carter, Marketing Order and Agreement                    The grape order provides authority for
                                                    SUMMARY:   This proposed rule would
                                                                                                            Division, Specialty Crops Program,                    the Committee, with the approval of
                                                    implement a recommendation from the
                                                                                                            AMS, USDA, 1400 Independence                          USDA, to formulate an annual budget of
                                                    California Desert Grape Administrative
                                                                                                            Avenue SW., STOP 0237, Washington,                    expenses and collect assessments from
                                                    Committee (Committee) to increase the
                                                                                                            DC 20250–0237; Telephone: (202) 720–                  handlers to administer the program. The
                                                    assessment rate established for the 2016
                                                                                                            2491, Fax: (202) 720–8938, or Email:                  members of the Committee are
                                                    and subsequent fiscal periods from
                                                                                                            Antoinette.Carter@ams.usda.gov.                       producers and handlers of grapes grown
                                                    $0.0250 to $0.0300 per 18-pound lug of
                                                                                                            SUPPLEMENTARY INFORMATION: This                       in a designated area of southeastern
                                                    grapes handled under the marketing
                                                                                                            proposed rule is issued under Marketing               California. They are familiar with the
                                                    order (order). The Committee locally
                                                                                                            Order No. 925, as amended (7 CFR part                 Committee’s needs and with the costs of
                                                    administers the order, and is comprised
                                                                                                            925), regulating the handling of grapes               goods and services in their local area
                                                    of producers and handlers of grapes
                                                                                                            grown in a designated area of                         and are thus in a position to formulate
                                                    grown in a designated area of
                                                                                                            southeastern California. The order is                 an appropriate budget and assessment
                                                    southeastern California. Assessments
                                                                                                            effective under the Agricultural                      rate. The assessment rate is formulated
                                                    upon grape handlers are used by the
                                                                                                            Marketing Agreement Act of 1937, as                   and discussed in a public meeting.
                                                    Committee to fund reasonable and
                                                                                                            amended (7 U.S.C. 601–674), hereinafter               Thus, all directly affected persons have
                                                    necessary expenses of the program. The
                                                                                                            referred to as the ‘‘Act.’’                           an opportunity to participate and
                                                    fiscal period began on January 1 and
                                                                                                               The Department of Agriculture                      provide input.
                                                    ends December 31. The assessment rate
                                                                                                            (USDA) is issuing this proposed rule in                  For the 2015 and subsequent fiscal
                                                    would remain in effect indefinitely
                                                                                                            conformance with Executive Orders                     periods, the Committee recommended,
                                                    unless modified, suspended, or
                                                                                                            12866, 13563, and 13175.                              and the USDA approved, an assessment
                                                    terminated.
                                                                                                               This proposed rule has been reviewed               rate that would continue in effect from
                                                    DATES:  Comments must be received by                    under Executive Order 12988, Civil                    fiscal period to fiscal period unless
                                                    March 25, 2016.                                         Justice Reform. Under the marketing                   modified, suspended, or terminated by
                                                    ADDRESSES: Interested persons are                       order now in effect, grape handlers in a              USDA based upon recommendation and
                                                    invited to submit written comments                      designated area of southeastern                       information submitted by the
                                                    concerning this proposed rule.                          California are subject to assessments.                Committee or other information
                                                    Comments must be sent to the Docket                     Funds to administer the order are                     available to USDA.
                                                    Clerk, Marketing Order and Agreement                    derived from such assessments. It is                     The Committee met on November 12,
                                                    Division, Specialty Crops Program,                      intended that the assessment rate as                  2015, and unanimously recommended
                                                    AMS, USDA, 1400 Independence                            proposed herein would be applicable to                2016 expenditures of $143,500, a
mstockstill on DSK4VPTVN1PROD with PROPOSALS




                                                    Avenue SW., STOP 0237, Washington,                      all assessable grapes beginning on                    contingency reserve fund of $6,500, and
                                                    DC 20250–0237; Fax: (202) 720–8938; or                  January 1, 2016, and continue until                   an assessment rate of $0.0300 per 18-
                                                    Internet: http://www.regulations.gov.                   amended, suspended, or terminated.                    pound lug of grapes handled. In
                                                    Comments should reference the docket                       The Act provides that administrative               comparison, last year’s budgeted
                                                    number and the date and page number                     proceedings must be exhausted before                  expenditures were $135,500. The
                                                    of this issue of the Federal Register and               parties may file suit in court. Under                 Committee recommended a crop
                                                    will be available for public inspection in              section 608c(15)(A) of the Act, any                   estimate of 5,000,000 18-pound lugs,
                                                    the Office of the Docket Clerk during                   handler subject to an order may file                  which is lower than the 5,800,000 18-


                                               VerDate Sep<11>2014   18:18 Mar 09, 2016   Jkt 238001   PO 00000   Frm 00001   Fmt 4702   Sfmt 4702   E:\FR\FM\10MRP1.SGM   10MRP1


                                                    12606                  Federal Register / Vol. 81, No. 47 / Thursday, March 10, 2016 / Proposed Rules

                                                    pound lugs handled last year. The                       consider recommendations for                          pound lug of grapes. The Committee
                                                    Committee also recommended carrying                     modification of the assessment rate. The              unanimously recommended 2016
                                                    over a financial reserve of $47,500,                    dates and times of Committee meetings                 expenditures of $143,500, a contingency
                                                    which would increase to $54,000 if the                  are available from the Committee or                   reserve fund of $6,500, and an
                                                    contingency fund is not expended. The                   USDA. Committee meetings are open to                  assessment rate of $0.0300 per 18-pound
                                                    assessment rate of $0.0300 per 18-pound                 the public and interested persons may                 lug of grapes handled. The proposed
                                                    lug of grapes handled recommended by                    express their views at these meetings.                assessment rate of $0.0300 is $0.0050
                                                    the Committee is $0.0050 higher than                    USDA would evaluate the Committee’s                   higher than the 2015 rate currently in
                                                    the $0.0250 rate currently in effect. The               recommendations and other available                   effect. The quantity of assessable grapes
                                                    higher assessment rate, applied to                      information to determine whether                      for the 2016 season is estimated at
                                                    shipments of 5,000,000 18-pound lugs,                   modification of the assessment rate is                5,000,000 18-pound lugs. Thus, the
                                                    would generate $150,000 in revenue and                  needed. Further rulemaking would be                   $0.0300 rate should generate $150,000
                                                    be sufficient to cover anticipated                      undertaken as necessary. The                          in income. In addition, reserve funds at
                                                    expenses.                                               Committee’s 2016 budget and those for                 the end of the year are projected to be
                                                      The major expenditures                                subsequent fiscal periods would be                    $54,000, which is well within the
                                                    recommended by the Committee for the                    reviewed and, as appropriate, approved                order’s limitation of approximately one
                                                    2016 fiscal period include $28,500 for                  by USDA.                                              fiscal period’s expenses.
                                                    research, $20,080 for office expenses,                                                                           The major expenditures
                                                    $56,500 for management and                              Initial Regulatory Flexibility Analysis               recommended by the Committee for the
                                                    compliance expenses, $25,000 for                          Pursuant to requirements set forth in               2016 fiscal period include $28,500 for
                                                    consultation services, and $6,500 for a                 the Regulatory Flexibility Act (RFA) (5               research, $20,080 for general office
                                                    contingency reserve. The $28,500                        U.S.C. 601–612), the Agricultural                     expenses, $56,500 for management and
                                                    research project is a continuation of a                 Marketing Service (AMS) has                           compliance expenses, $25,000 for
                                                    vine study in progress by the University                considered the economic impact of this                consultation services and $6,500 for the
                                                    of California, Riverside. In comparison,                proposed rule on small entities.                      contingency reserve. In comparison,
                                                    major expenditures for the 2015 fiscal                  Accordingly, AMS has prepared this                    major expenditures for the 2015 fiscal
                                                    period included $15,500 for research,                   initial regulatory flexibility analysis.              period included $15,500 for research,
                                                    $17,000 for general office expenses,                      The purpose of the RFA is to fit                    $17,000 for general office expenses,
                                                    $62,750 for management and                              regulatory actions to the scale of                    $62,750 for management and
                                                    compliance expenses, $25,000 for                        businesses subject to such actions in                 compliance expenses, $25,000 for
                                                    consultation services, and $9,500 for a                 order that small businesses will not be               consultation services, and $9,500 for a
                                                    contingency reserve. Overall 2016                       unduly or disproportionately burdened.                contingency reserve. Overall 2016
                                                    expenditures include a decrease in                      Marketing orders issued pursuant to the               expenditures include a decrease in
                                                    management and compliance expenses,                     Act, and the rules issued thereunder, are             management and compliance expenses,
                                                    and increases in office expenses, and                   unique in that they are brought about                 and increases in general office expenses,
                                                    research expenses.                                      through group action of essentially                   and research expenses.
                                                      The assessment rate recommended by                    small entities acting on their own                       Prior to arriving at this budget, the
                                                    the Committee was derived by                            behalf.                                               Committee considered alternative
                                                    evaluating several factors, including                     There are approximately 13 handlers                 expenditures and assessment rates, to
                                                    estimated shipments for the 2016                        of southeastern California grapes who                 include not increasing the $0.0250
                                                    season, budgeted expenses, and the                      are subject to regulation under the                   assessment rate currently in effect.
                                                    level of available financial reserves. The              marketing order and about 41 grape                    Based on a crop estimate of 5,000,000
                                                    Committee determined that the $0.0300                   producers in the production area. Small               18-pound lugs, the Committee
                                                    assessment rate would generate                          agricultural service firms are defined by             ultimately determined that increasing
                                                    $150,000 in revenue to cover the                        the Small Business Administration (13                 the assessment rate to $0.0300 would
                                                    budgeted expenses of $143,500, and a                    CFR 121.201) as those having annual                   generate sufficient funds to cover
                                                    contingency reserve fund of $6,500.                     receipts of less than $7,500,000, and                 budgeted expenses. Reserve funds at the
                                                      Reserve funds by the end of 2016 are                  small agricultural producers are defined              end of the 2016 fiscal period are
                                                    projected to be $47,500 if the $6,500                   as those whose annual receipts are less               projected to be $47,500 if the $6,500
                                                    added to the contingency fund is                        than $750,000. Ten of the 13 handlers                 contingency fund is expended or
                                                    expended or $54,000 if it is not                        subject to regulation have annual grape               $54,000 if it is not expended. These
                                                    expended. Both amounts are well                         sales of less than $7,500,000, according              amounts are well within the amount
                                                    within the amount authorized under the                  to USDA Market News Service and                       authorized under the order.
                                                    order. Section 925.41 of the order                      Committee data. In addition,                             A review of historical crop and price
                                                    permits the Committee to maintain                       information from the Committee and                    information, as well as preliminary
                                                    approximately one fiscal period’s                       USDA’s Market News indicates that at                  information pertaining to the upcoming
                                                    expenses in reserve.                                    least 10 of 41 producers have annual                  fiscal period, indicates that the shipping
                                                      The proposed assessment rate would                    receipts of less than $750,000. Thus, it              point price for the 2015 season averaged
                                                    continue in effect indefinitely unless                  may be concluded that a majority of the               about $22.75 per 18-pound lug of
                                                    modified, suspended, or terminated by                   grape handlers regulated under the                    California desert grapes handled. If the
                                                    USDA based upon a recommendation                        order and about 10 of the producers                   2016 price is similar to the 2015 price,
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                                                    and information submitted by the                        could be classified as small entities                 estimated assessment revenue as a
                                                    Committee or other available                            under the Small Business                              percentage of total estimated handler
                                                    information.                                            Administration’s definitions.                         revenue would be 0.13 percent for the
                                                      Although this assessment rate would                     This proposed rule would increase                   2016 season ($0.0300 divided by $22.75
                                                    be in effect for an indefinite period, the              the assessment rate established for the               per 18-pound lug).
                                                    Committee would continue to meet                        Committee and collected from handlers                    This action would increase the
                                                    prior to or during each fiscal period to                for the 2016 and subsequent fiscal                    assessment obligation imposed on
                                                    recommend a budget of expenses and                      periods from $0.0250 to $0.0300 per 18-               handlers. While assessments impose


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                                                                           Federal Register / Vol. 81, No. 47 / Thursday, March 10, 2016 / Proposed Rules                                           12607

                                                    some additional costs on handlers, the                  during such fiscal period; (2) the                    and stabilization in the cervical spine as
                                                    costs are minimal and uniform on all                    Committee needs to have sufficient                    an adjunct to spinal fusion surgery. The
                                                    handlers. However, these costs would                    funds to pay its expenses, which are                  term ‘‘posterior cervical screw systems’’
                                                    be offset by the benefits derived from                  incurred on a continuous basis; and (3)               is used to distinguish these devices from
                                                    the operation of the marketing order. In                handlers are aware of this action, which              currently classified pedicle screw spinal
                                                    addition, the Committee’s meeting was                   was unanimously recommended by the                    systems cleared for use in other spinal
                                                    widely publicized throughout the grape                  Committee at a public meeting and is                  regions.
                                                    production area and all interested                      similar to other assessment rate actions              DATES: Submit either electronic or
                                                    persons were invited to attend and                      issued in past years.                                 written comments by June 8, 2016. See
                                                    participate in Committee deliberations                                                                        section IV of this document for the
                                                    on all issues. Like all Committee                       List of Subjects in 7 CFR Part 925
                                                                                                                                                                  proposed effective date of a final rule
                                                    meetings, the November 12, 2015,                          Grapes, Marketing agreements,                       that may issue based on this proposal.
                                                    meeting was a public meeting and all                    Reporting and recordkeeping
                                                                                                                                                                  ADDRESSES: You may submit comments
                                                    entities, both large and small, were able               requirements.
                                                                                                                                                                  as follows:
                                                    to express views on this issue. Finally,                  For the reasons set forth in the
                                                    interested persons are invited to submit                preamble, 7 CFR part 925 is proposed to               Electronic Submissions
                                                    comments on this proposed rule,                         be amended as follows:                                  Submit electronic comments in the
                                                    including the regulatory and
                                                                                                                                                                  following way:
                                                    informational impacts of this action on                 PART 925—GRAPES GROWN IN A                              • Federal eRulemaking Portal: http://
                                                    small businesses.                                       DESIGNATED AREA OF
                                                      In accordance with the Paperwork                                                                            www.regulations.gov. Follow the
                                                                                                            SOUTHEASTERN CALIFORNIA                               instructions for submitting comments.
                                                    Reduction Act of 1995 (44 U.S.C.
                                                    Chapter 35), the order’s information                    ■ 1. The authority citation for 7 CFR                 Comments submitted electronically,
                                                    collection requirements have been                       part 925 continues to read as follows:                including attachments, to http://
                                                    previously approved by the Office of                                                                          www.regulations.gov will be posted to
                                                                                                                Authority: 7 U.S.C. 601–674.                      the docket unchanged. Because your
                                                    Management and Budget (OMB) and
                                                                                                            ■ 2. Section 925.215 is revised to read               comment will be made public, you are
                                                    assigned OMB No. 0581–0189. No
                                                                                                            as follows:                                           solely responsible for ensuring that your
                                                    changes in those requirements as a
                                                    result of this action are necessary.                                                                          comment does not include any
                                                                                                            § 925.215    Assessment rate.
                                                    Should any changes become necessary,                                                                          confidential information that you or a
                                                                                                              On and after January 1, 2016, an                    third party may not wish to be posted,
                                                    they would be submitted to OMB for                      assessment rate of $0.0300 per 18-pound
                                                    approval.                                                                                                     such as medical information, your or
                                                                                                            lug is established for grapes grown in a              anyone else’s Social Security number, or
                                                      This proposed rule would impose no                    designated area of southeastern
                                                    additional reporting or recordkeeping                                                                         confidential business information, such
                                                                                                            California.                                           as a manufacturing process. Please note
                                                    requirements on either small or large
                                                    California grape handlers. As with all                    Dated: March 3, 2016.                               that if you include your name, contact
                                                    Federal marketing order programs,                       Elanor Starmer,                                       information, or other information that
                                                    reports and forms are periodically                      Acting Administrator, Agricultural Marketing          identifies you in the body of your
                                                    reviewed to reduce information                          Service.                                              comments, that information will be
                                                    requirements and duplication by                         [FR Doc. 2016–05420 Filed 3–9–16; 8:45 am]            posted on http://www.regulations.gov.
                                                    industry and public sector agencies.                    BILLING CODE P                                          • If you want to submit a comment
                                                      AMS is committed to complying with                                                                          with confidential information that you
                                                    the E-Government Act, to promote the                                                                          do not wish to be made available to the
                                                    use of the internet and other                           DEPARTMENT OF HEALTH AND                              public, submit the comment as a
                                                    information technologies to provide                     HUMAN SERVICES                                        written/paper submission and in the
                                                    increased opportunities for citizen                                                                           manner detailed (see ‘‘Written/Paper
                                                    access to Government information and                    Food and Drug Administration                          Submissions’’ and ‘‘Instructions’’).
                                                    services, and for other purposes.                                                                             Written/Paper Submissions
                                                      USDA has not identified any relevant                  21 CFR Part 888
                                                    Federal rules that duplicate, overlap, or                                                                        Submit written/paper submissions as
                                                                                                            [Docket No. FDA–2015–N–3785]                          follows:
                                                    conflict with this action.
                                                      A small business guide on complying                                                                            • Mail/Hand delivery/Courier (for
                                                                                                            Medical Devices; Orthopedic Devices;
                                                    with fruit, vegetable, and specialty crop                                                                     written/paper submissions): Division of
                                                                                                            Classification of Posterior Cervical
                                                    marketing agreements and orders may                                                                           Dockets Management (HFA–305), Food
                                                                                                            Screw Systems
                                                    be viewed at: http://www.ams.usda.gov/                                                                        and Drug Administration, 5630 Fishers
                                                    rules-regulations/moa/small-businesses.                 AGENCY:     Food and Drug Administration,             Lane, Rm. 1061, Rockville, MD 20852.
                                                    Any questions about the compliance                      HHS.                                                     • For written/paper comments
                                                    guide should be sent to Antoinette                      ACTION:   Proposed rule.                              submitted to the Division of Dockets
                                                    Carter at the previously-mentioned                                                                            Management, FDA will post your
                                                    address in the FOR FURTHER INFORMATION                  SUMMARY:   The Food and Drug                          comment, as well as any attachments,
                                                    CONTACT section.                                        Administration (FDA or Agency) is                     except for information submitted,
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                                                      A 15-day comment period is provided                   proposing to classify posterior cervical              marked and identified, as confidential,
                                                    to allow interested persons to respond                  screw systems into class II (special                  if submitted as detailed in
                                                    to this proposed rule. Fifteen days is                  controls) and to continue to require                  ‘‘Instructions.’’
                                                    deemed appropriate because: (1) The                     premarket notification to provide a                      Instructions: All submissions received
                                                    2016 fiscal period begins on January 1,                 reasonable assurance of safety and                    must include the Docket No. FDA–
                                                    2016, and the order requires that the                   effectiveness of the device. A posterior              2015–N–3785 for ‘‘Medical Devices;
                                                    rate of assessment for each fiscal period               cervical screw system is a prescription               Orthopedic Devices; Classification of
                                                    apply to all assessable grapes handled                  device used to provide immobilization                 Posterior Cervical Screw Systems.’’


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Document Created: 2018-02-02 15:11:51
Document Modified: 2018-02-02 15:11:51
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 March 25, 2016.
ContactKathie Notoro, Marketing Specialist, or Jeffrey Smutny, 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 Citation81 FR 12605 
CFR AssociatedGrapes; Marketing Agreements and Reporting and Recordkeeping Requirements

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