81_FR_14070 81 FR 14019 - Avocados Grown in South Florida; Increased Assessment Rate

81 FR 14019 - Avocados Grown in South Florida; Increased Assessment Rate

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 81, Issue 51 (March 16, 2016)

Page Range14019-14021
FR Document2016-05834

This proposed rule would implement a recommendation from the Avocado Administrative Committee (Committee) to increase the assessment rate established for the 2016-17 and subsequent fiscal periods from $0.30 to $0.35 per 55-pound bushel container of Florida avocados handled under the marketing order (order). The Committee locally administers the order and is comprised of growers and handlers of avocados operating within the area of production. Assessments upon Florida avocado handlers are used by the Committee to fund reasonable and necessary expenses of the program. The fiscal period begins April 1 and ends March 31. The assessment rate would remain in effect indefinitely unless modified, suspended, or terminated.

Federal Register, Volume 81 Issue 51 (Wednesday, March 16, 2016)
[Federal Register Volume 81, Number 51 (Wednesday, March 16, 2016)]
[Proposed Rules]
[Pages 14019-14021]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-05834]


========================================================================
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. 51 / Wednesday, March 16, 2016 / 
Proposed Rules

[[Page 14019]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 915

[Doc. No. AMS-SC-15-0083; SC16-915-2 PR]


Avocados Grown in South Florida; Increased Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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

SUMMARY: This proposed rule would implement a recommendation from the 
Avocado Administrative Committee (Committee) to increase the assessment 
rate established for the 2016-17 and subsequent fiscal periods from 
$0.30 to $0.35 per 55-pound bushel container of Florida avocados 
handled under the marketing order (order). The Committee locally 
administers the order and is comprised of growers and handlers of 
avocados operating within the area of production. Assessments upon 
Florida avocado handlers are used by the Committee to fund reasonable 
and necessary expenses of the program. The fiscal period begins April 1 
and ends March 31. The assessment rate would remain in effect 
indefinitely unless modified, suspended, or terminated.

DATES: Comments must be received by April 15, 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 document number and 
the date and page number of this issue of the Federal Register and will 
be available for public inspection in the Office of the Docket Clerk 
during regular business hours, or can be viewed at: http://www.regulations.gov. All comments submitted in response to this 
proposed rule will be included in the record and will be made available 
to the public. Please be advised that the identity of the individuals 
or entities submitting the comments will be made public on the internet 
at the address provided above.

FOR FURTHER INFORMATION CONTACT: Doris Jamieson, Marketing Specialist, 
or Christian D. Nissen, Regional Director, Southeast Marketing Field 
Office, Marketing Order and Agreement Division, Specialty Crops 
Program, AMS, USDA; Telephone: (863) 324-3375, Fax: (863) 291-8614, 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. 915, as amended (7 CFR part 915), regulating the handling of 
avocados grown in South Florida, hereinafter referred to as the 
``order.'' The order is effective under the Agricultural Marketing 
Agreement Act of 1937, as amended (7 U.S.C. 601-674), hereinafter 
referred to as the ``Act.''
    The Department of Agriculture (USDA) is issuing this proposed rule 
in conformance with Executive Orders 12866, 13563, and 13175.
    This proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. Under the marketing order now in effect, Florida 
avocado handlers 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 Florida avocados beginning on April 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 2016-17 and subsequent fiscal periods from 
$0.30 to $0.35 per 55-pound bushel container of avocados.
    The Florida avocado marketing order provides authority for the 
Committee, with the approval of USDA, to formulate an annual budget of 
expenses and collect assessments from handlers to administer the 
program. The members of the Committee are producers and handlers of 
Florida avocados. They are familiar with the Committee's needs and with 
the 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 2013-14 and subsequent fiscal periods, the Committee 
recommended, and USDA approved, an assessment rate that would continue 
in effect from fiscal period to fiscal period unless modified, 
suspended, or terminated by USDA upon recommendation and information 
submitted by the Committee or other information available to USDA.
    The Committee met on December 9, 2015, and recommended 2016-17 
expenditures of $302,553 and an assessment rate of $0.35 per 55-pound 
bushel container of avocados. In comparison, last year's budgeted 
expenditures were $602,553. The assessment rate of $0.35 is $0.05 
higher than the rate currently in effect. During the 2015-16 season, 
the Committee used its authorized reserves to fund several large 
research projects to address the Laurel Wilt fungus, which can infect

[[Page 14020]]

and kill avocado trees. This substantially reduced the funds in the 
Committee's reserves to $214,733. Further, at the current assessment 
rate, assessment income would equal only $300,000, an amount 
insufficient to cover the Committee's anticipated expenditures of 
$302,553. By increasing the assessment rate by $0.05, assessment income 
would be approximately $350,000. This amount should provide sufficient 
funds to meet 2016-2017 anticipated expenses and add money back into 
the Committee's authorized reserves.
    The major expenditures recommended by the Committee for the 2016-17 
year include $119,483 for salaries, $51,500 for employee benefits, and 
$25,500 for insurance and bonds. Budgeted expenses for these items in 
2015-16 were $119,483, $51,500, and $25,500, respectively.
    The assessment rate recommended by the Committee was derived by 
reviewing anticipated expenses, expected shipments of Florida avocados, 
and the level of funds in reserve. As mentioned earlier, avocado 
shipments for the year are estimated at one million 55-pound bushel 
containers which should provide $350,000 in assessment income. Income 
derived from handler assessments at the proposed rate, along with 
interest income, would be adequate to cover budgeted expenses. Funds in 
the reserve (currently $214,733) would be kept within the maximum 
permitted by the order (approximately three fiscal periods' expenses as 
authorized in Sec.  915.42).
    The proposed assessment rate would continue in effect indefinitely 
unless modified, suspended, or terminated by USDA upon recommendation 
and information submitted by the Committee or other available 
information.
    Although this assessment rate would be in effect for an indefinite 
period, the Committee would continue to meet prior to or during each 
fiscal period to recommend a budget of expenses and consider 
recommendations for modification of the assessment rate. The dates and 
times of Committee meetings are available from the Committee or USDA. 
Committee meetings are open to the public and interested persons may 
express their views at these meetings. USDA would evaluate Committee 
recommendations and other available information to determine whether 
modification of the assessment rate is needed. Further rulemaking would 
be undertaken as necessary. The Committee's 2016-17 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 400 producers of Florida avocados in the 
production area and approximately 25 handlers subject to regulation 
under the marketing order. Small agricultural producers are defined by 
the Small Business Administration (SBA) as those having annual receipts 
less than $750,000, and small agricultural service firms are defined as 
those whose annual receipts are less than $7,500,000 (13 CFR 121.201).
    According to the National Agricultural Statistical Service (NASS), 
the average grower price paid for Florida avocados during the 2014-15 
season was approximately $18.00 per 55-pound bushel container and total 
shipments were slightly higher than 1.2 million 55-pound bushels. Based 
on this information, the majority of avocado producers would have 
annual receipts less than $750,000. In addition, based on Committee 
information, the majority of Florida avocado handlers could be 
considered small business under SBA's definition. Thus, the majority of 
Florida avocado producers and handlers may be classified as small 
entities.
    This proposal would increase the assessment rate established for 
the Committee and collected from handlers for the 2016-17 and 
subsequent fiscal periods from $0.30 to $0.35 per 55-pound bushel 
container of avocados. The Committee recommended 2016-17 expenditures 
of $302,553 and an assessment rate of $0.35 per 55-pound bushel 
container. The proposed assessment rate of $0.35 is $0.05 higher than 
the previous rate. The quantity of assessable avocados for the 2016-17 
season is estimated at one million 55-pound bushel containers. Thus, 
the $0.35 rate should provide $350,000 in assessment income and be 
adequate to meet this year's expenses.
    The major expenditures recommended by the Committee for the 2016-17 
fiscal period include $119,483 for salaries, $51,500 for employee 
benefits, and $25,500 for insurance and bonds. Budgeted expenses for 
these items in 2015-16 were $119,483, $51,500, and $25,500, 
respectively.
    During the 2015-16 season, the Committee used its authorized 
reserves to fund several large research projects to address the Laurel 
Wilt fungus. This substantially reduced the funds in the Committee's 
reserves. Further, at the current assessment rate and with the 2016-17 
crop estimated to be one million 55-pound bushel containers, assessment 
income would equal only $300,000, an amount insufficient to cover the 
Committee's anticipated expenditures of $302,553. By increasing the 
assessment rate by $0.05, assessment income would be approximately 
$350,000. This amount should provide sufficient funds to meet 2016-2017 
anticipated expenses and add money back into the Committee's authorized 
reserves. Consequently, the Committee recommended increasing the 
assessment rate.
    Prior to arriving at this budget and assessment rate, the Committee 
considered information from various sources, such as the Committee's 
Budget and Personnel Committee. Alternative expenditure levels were 
discussed by this group, based upon the relative value of various 
activities to the South Florida avocado industry. The Committee 
ultimately determined that 2016-17 expenditures of $302,553 were 
appropriate, and the recommended assessment rate, along with interest 
income, would generate sufficient revenue to meet its expenses.
    A review of historical information and preliminary information 
pertaining to the upcoming season indicates that the grower price for 
the 2016-17 season should be around $18 per 55-pound bushel container 
of avocados. Therefore, the estimated assessment revenue for the 2016-
17 fiscal period as a percentage of total grower revenue would be 
approximately two percent.
    This action would increase the assessment obligation imposed on 
handlers. While assessments impose some additional costs on handlers, 
the costs are minimal and uniform on all handlers. Additionally, these 
costs would be offset by the benefits derived by the operation of the 
marketing order. In addition, the Committee's meeting was widely 
publicized throughout the Florida avocado industry and all interested 
persons were invited to

[[Page 14021]]

attend the meeting and participate in Committee deliberations on all 
issues. Like all Committee meetings, the December 9, 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 (Generic Fruit Crops). No changes in those 
requirements as a result of this action are necessary. Should any 
changes become necessary, they would be submitted to OMB for approval.
    This proposed rule would impose no additional reporting or 
recordkeeping requirements on either small or large Florida avocado 
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 30-day comment period is provided to allow interested persons to 
respond to this proposed rule. Thirty days is deemed appropriate 
because: (1) The 2016-17 fiscal period begins on April 1, 2016, and the 
marketing order requires that the rate of assessment for each fiscal 
period apply to all assessable avocados 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 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 915

    Avocados, Marketing agreements, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 915 is 
proposed to be amended as follows:

PART 915--AVOCADOS GROWN IN SOUTH FLORIDA

0
1. The authority citation for 7 CFR part 915 continues to read as 
follows:

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

0
2. Section 915.235 is revised to read as follows:


Sec.  915.235  Assessment rate.

    On and after April 1, 2016, an assessment rate of $0.35 per 55-
pound container or equivalent is established for avocados grown in 
South Florida.

    Dated: March 10, 2016.
Elanor Starmer,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2016-05834 Filed 3-15-16; 8:45 am]
 BILLING CODE 3410-02-P



                                                                                                                                                                                                    14019

                                                    Proposed Rules                                                                                                Federal Register
                                                                                                                                                                  Vol. 81, No. 51

                                                                                                                                                                  Wednesday, March 16, 2016



                                                    This section of the FEDERAL REGISTER                    www.regulations.gov. All comments                     obligation imposed in connection with
                                                    contains notices to the public of the proposed          submitted in response to this proposed                the order is not in accordance with law
                                                    issuance of rules and regulations. The                  rule will be included in the record and               and request a modification of the order
                                                    purpose of these notices is to give interested          will be made available to the public.                 or to be exempted therefrom. Such
                                                    persons an opportunity to participate in the            Please be advised that the identity of the            handler is afforded the opportunity for
                                                    rule making prior to the adoption of the final
                                                    rules.
                                                                                                            individuals or entities submitting the                a hearing on the petition. After the
                                                                                                            comments will be made public on the                   hearing, USDA would rule on the
                                                                                                            internet at the address provided above.               petition. The Act provides that the
                                                    DEPARTMENT OF AGRICULTURE                               FOR FURTHER INFORMATION CONTACT:                      district court of the United States in any
                                                                                                            Doris Jamieson, Marketing Specialist, or              district in which the handler is an
                                                    Agricultural Marketing Service                          Christian D. Nissen, Regional Director,               inhabitant, or has his or her principal
                                                                                                            Southeast Marketing Field Office,                     place of business, has jurisdiction to
                                                    7 CFR Part 915                                          Marketing Order and Agreement                         review USDA’s ruling on the petition,
                                                    [Doc. No. AMS–SC–15–0083; SC16–915–2                    Division, Specialty Crops Program,                    provided an action is filed not later than
                                                    PR]                                                     AMS, USDA; Telephone: (863) 324–                      20 days after the date of the entry of the
                                                                                                            3375, Fax: (863) 291–8614, or Email:                  ruling.
                                                    Avocados Grown in South Florida;                        Doris.Jamieson@ams.usda.gov or                           This proposed rule would increase
                                                    Increased Assessment Rate                               Christian.Nissen@ams.usda.gov.                        the assessment rate established for the
                                                                                                               Small businesses may request                       Committee for the 2016–17 and
                                                    AGENCY:  Agricultural Marketing Service,                information on complying with this                    subsequent fiscal periods from $0.30 to
                                                    USDA.                                                   regulation by contacting Antoinette                   $0.35 per 55-pound bushel container of
                                                    ACTION: Proposed rule.                                  Carter, Marketing Order and Agreement                 avocados.
                                                                                                            Division, Specialty Crops Program,                       The Florida avocado marketing order
                                                    SUMMARY:   This proposed rule would                     AMS, USDA, 1400 Independence                          provides authority for the Committee,
                                                    implement a recommendation from the                     Avenue SW., STOP 0237, Washington,                    with the approval of USDA, to formulate
                                                    Avocado Administrative Committee                        DC 20250–0237; Telephone: (202) 720–                  an annual budget of expenses and
                                                    (Committee) to increase the assessment                  2491, Fax: (202) 720–8938, or Email:                  collect assessments from handlers to
                                                    rate established for the 2016–17 and                    Antoinette.Carter@ams.usda.gov.                       administer the program. The members
                                                    subsequent fiscal periods from $0.30 to                                                                       of the Committee are producers and
                                                                                                            SUPPLEMENTARY INFORMATION: This
                                                    $0.35 per 55-pound bushel container of                                                                        handlers of Florida avocados. They are
                                                    Florida avocados handled under the                      proposed rule is issued under Marketing
                                                                                                            Order No. 915, as amended (7 CFR part                 familiar with the Committee’s needs and
                                                    marketing order (order). The Committee                                                                        with the costs for goods and services in
                                                    locally administers the order and is                    915), regulating the handling of
                                                                                                            avocados grown in South Florida,                      their local area, and are thus in a
                                                    comprised of growers and handlers of                                                                          position to formulate an appropriate
                                                    avocados operating within the area of                   hereinafter referred to as the ‘‘order.’’
                                                                                                            The order is effective under the                      budget and assessment rate. The
                                                    production. Assessments upon Florida                                                                          assessment rate is formulated and
                                                    avocado handlers are used by the                        Agricultural Marketing Agreement Act
                                                                                                            of 1937, as amended (7 U.S.C. 601–674),               discussed in a public meeting. Thus, all
                                                    Committee to fund reasonable and                                                                              directly affected persons have an
                                                    necessary expenses of the program. The                  hereinafter referred to as the ‘‘Act.’’
                                                                                                               The Department of Agriculture                      opportunity to participate and provide
                                                    fiscal period begins April 1 and ends                                                                         input.
                                                                                                            (USDA) is issuing this proposed rule in
                                                    March 31. The assessment rate would                                                                              For the 2013–14 and subsequent fiscal
                                                                                                            conformance with Executive Orders
                                                    remain in effect indefinitely unless                                                                          periods, the Committee recommended,
                                                                                                            12866, 13563, and 13175.
                                                    modified, suspended, or terminated.                        This proposed rule has been reviewed               and USDA approved, an assessment rate
                                                    DATES: Comments must be received by                     under Executive Order 12988, Civil                    that would continue in effect from fiscal
                                                    April 15, 2016.                                         Justice Reform. Under the marketing                   period to fiscal period unless modified,
                                                    ADDRESSES: Interested persons are                       order now in effect, Florida avocado                  suspended, or terminated by USDA
                                                    invited to submit written comments                      handlers are subject to assessments.                  upon recommendation and information
                                                    concerning this proposed rule.                          Funds to administer the order are                     submitted by the Committee or other
                                                    Comments must be sent to the Docket                     derived from such assessments. It is                  information available to USDA.
                                                    Clerk, Marketing Order and Agreement                    intended that the assessment rate as                     The Committee met on December 9,
                                                    Division, Specialty Crops Program,                      proposed herein would be applicable to                2015, and recommended 2016–17
                                                    AMS, USDA, 1400 Independence                            all assessable Florida avocados                       expenditures of $302,553 and an
                                                    Avenue SW., STOP 0237, Washington,                      beginning on April 1, 2016, and                       assessment rate of $0.35 per 55-pound
                                                    DC 20250–0237; Fax: (202) 720–8938; or                  continue until amended, suspended, or                 bushel container of avocados. In
mstockstill on DSK4VPTVN1PROD with PROPOSALS




                                                    Internet: http://www.regulations.gov.                   terminated.                                           comparison, last year’s budgeted
                                                    Comments should reference the                              The Act provides that administrative               expenditures were $602,553. The
                                                    document number and the date and                        proceedings must be exhausted before                  assessment rate of $0.35 is $0.05 higher
                                                    page number of this issue of the Federal                parties may file suit in court. Under                 than the rate currently in effect. During
                                                    Register and will be available for public               section 608c(15)(A) of the Act, any                   the 2015–16 season, the Committee used
                                                    inspection in the Office of the Docket                  handler subject to an order may file                  its authorized reserves to fund several
                                                    Clerk during regular business hours, or                 with USDA a petition stating that the                 large research projects to address the
                                                    can be viewed at: http://                               order, any provision of the order, or any             Laurel Wilt fungus, which can infect


                                               VerDate Sep<11>2014   16:39 Mar 15, 2016   Jkt 238001   PO 00000   Frm 00001   Fmt 4702   Sfmt 4702   E:\FR\FM\16MRP1.SGM   16MRP1


                                                    14020                 Federal Register / Vol. 81, No. 51 / Wednesday, March 16, 2016 / Proposed Rules

                                                    and kill avocado trees. This                            reviewed and, as appropriate, approved                assessment income and be adequate to
                                                    substantially reduced the funds in the                  by USDA.                                              meet this year’s expenses.
                                                    Committee’s reserves to $214,733.                                                                                The major expenditures
                                                                                                            Initial Regulatory Flexibility Analysis               recommended by the Committee for the
                                                    Further, at the current assessment rate,
                                                    assessment income would equal only                         Pursuant to requirements set forth in              2016–17 fiscal period include $119,483
                                                    $300,000, an amount insufficient to                     the Regulatory Flexibility Act (RFA) (5               for salaries, $51,500 for employee
                                                    cover the Committee’s anticipated                       U.S.C. 601–612), the Agricultural                     benefits, and $25,500 for insurance and
                                                    expenditures of $302,553. By increasing                 Marketing Service (AMS) has                           bonds. Budgeted expenses for these
                                                    the assessment rate by $0.05, assessment                considered the economic impact of this                items in 2015–16 were $119,483,
                                                    income would be approximately                           proposed rule on small entities.                      $51,500, and $25,500, respectively.
                                                    $350,000. This amount should provide                    Accordingly, AMS has prepared this                       During the 2015–16 season, the
                                                    sufficient funds to meet 2016–2017                      initial regulatory flexibility analysis.              Committee used its authorized reserves
                                                    anticipated expenses and add money                         The purpose of the RFA is to fit                   to fund several large research projects to
                                                    back into the Committee’s authorized                    regulatory actions to the scale of                    address the Laurel Wilt fungus. This
                                                    reserves.                                               businesses subject to such actions in                 substantially reduced the funds in the
                                                       The major expenditures                               order that small businesses will not be               Committee’s reserves. Further, at the
                                                    recommended by the Committee for the                    unduly or disproportionately burdened.                current assessment rate and with the
                                                    2016–17 year include $119,483 for                       Marketing orders issued pursuant to the               2016–17 crop estimated to be one
                                                    salaries, $51,500 for employee benefits,                Act, and the rules issued thereunder, are             million 55-pound bushel containers,
                                                    and $25,500 for insurance and bonds.                    unique in that they are brought about                 assessment income would equal only
                                                    Budgeted expenses for these items in                    through group action of essentially                   $300,000, an amount insufficient to
                                                    2015–16 were $119,483, $51,500, and                     small entities acting on their own                    cover the Committee’s anticipated
                                                    $25,500, respectively.                                  behalf.                                               expenditures of $302,553. By increasing
                                                       The assessment rate recommended by                                                                         the assessment rate by $0.05, assessment
                                                                                                               There are approximately 400
                                                    the Committee was derived by                                                                                  income would be approximately
                                                                                                            producers of Florida avocados in the
                                                    reviewing anticipated expenses,                                                                               $350,000. This amount should provide
                                                                                                            production area and approximately 25
                                                    expected shipments of Florida                                                                                 sufficient funds to meet 2016–2017
                                                                                                            handlers subject to regulation under the
                                                    avocados, and the level of funds in                                                                           anticipated expenses and add money
                                                                                                            marketing order. Small agricultural
                                                    reserve. As mentioned earlier, avocado                                                                        back into the Committee’s authorized
                                                                                                            producers are defined by the Small
                                                    shipments for the year are estimated at                                                                       reserves. Consequently, the Committee
                                                                                                            Business Administration (SBA) as those
                                                    one million 55-pound bushel containers                                                                        recommended increasing the assessment
                                                                                                            having annual receipts less than
                                                    which should provide $350,000 in                                                                              rate.
                                                                                                            $750,000, and small agricultural service                 Prior to arriving at this budget and
                                                    assessment income. Income derived
                                                                                                            firms are defined as those whose annual               assessment rate, the Committee
                                                    from handler assessments at the
                                                    proposed rate, along with interest                      receipts are less than $7,500,000 (13                 considered information from various
                                                    income, would be adequate to cover                      CFR 121.201).                                         sources, such as the Committee’s Budget
                                                    budgeted expenses. Funds in the reserve                    According to the National                          and Personnel Committee. Alternative
                                                    (currently $214,733) would be kept                      Agricultural Statistical Service (NASS),              expenditure levels were discussed by
                                                    within the maximum permitted by the                     the average grower price paid for                     this group, based upon the relative
                                                    order (approximately three fiscal                       Florida avocados during the 2014–15                   value of various activities to the South
                                                    periods’ expenses as authorized in                      season was approximately $18.00 per                   Florida avocado industry. The
                                                    § 915.42).                                              55-pound bushel container and total                   Committee ultimately determined that
                                                       The proposed assessment rate would                   shipments were slightly higher than 1.2               2016–17 expenditures of $302,553 were
                                                    continue in effect indefinitely unless                  million 55-pound bushels. Based on this               appropriate, and the recommended
                                                    modified, suspended, or terminated by                   information, the majority of avocado                  assessment rate, along with interest
                                                    USDA upon recommendation and                            producers would have annual receipts                  income, would generate sufficient
                                                    information submitted by the                            less than $750,000. In addition, based                revenue to meet its expenses.
                                                    Committee or other available                            on Committee information, the majority                   A review of historical information and
                                                    information.                                            of Florida avocado handlers could be                  preliminary information pertaining to
                                                       Although this assessment rate would                  considered small business under SBA’s                 the upcoming season indicates that the
                                                    be in effect for an indefinite period, the              definition. Thus, the majority of Florida             grower price for the 2016–17 season
                                                    Committee would continue to meet                        avocado producers and handlers may be                 should be around $18 per 55-pound
                                                    prior to or during each fiscal period to                classified as small entities.                         bushel container of avocados. Therefore,
                                                    recommend a budget of expenses and                         This proposal would increase the                   the estimated assessment revenue for
                                                    consider recommendations for                            assessment rate established for the                   the 2016–17 fiscal period as a
                                                    modification of the assessment rate. The                Committee and collected from handlers                 percentage of total grower revenue
                                                    dates and times of Committee meetings                   for the 2016–17 and subsequent fiscal                 would be approximately two percent.
                                                    are available from the Committee or                     periods from $0.30 to $0.35 per 55-                      This action would increase the
                                                    USDA. Committee meetings are open to                    pound bushel container of avocados.                   assessment obligation imposed on
                                                    the public and interested persons may                   The Committee recommended 2016–17                     handlers. While assessments impose
                                                    express their views at these meetings.                  expenditures of $302,553 and an                       some additional costs on handlers, the
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                                                    USDA would evaluate Committee                           assessment rate of $0.35 per 55-pound                 costs are minimal and uniform on all
                                                    recommendations and other available                     bushel container. The proposed                        handlers. Additionally, these costs
                                                    information to determine whether                        assessment rate of $0.35 is $0.05 higher              would be offset by the benefits derived
                                                    modification of the assessment rate is                  than the previous rate. The quantity of               by the operation of the marketing order.
                                                    needed. Further rulemaking would be                     assessable avocados for the 2016–17                   In addition, the Committee’s meeting
                                                    undertaken as necessary. The                            season is estimated at one million 55-                was widely publicized throughout the
                                                    Committee’s 2016–17 budget and those                    pound bushel containers. Thus, the                    Florida avocado industry and all
                                                    for subsequent fiscal periods would be                  $0.35 rate should provide $350,000 in                 interested persons were invited to


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                                                                          Federal Register / Vol. 81, No. 51 / Wednesday, March 16, 2016 / Proposed Rules                                           14021

                                                    attend the meeting and participate in                   List of Subjects in 7 CFR Part 915                    Executive Order 12866
                                                    Committee deliberations on all issues.                    Avocados, Marketing agreements,                       The Office of Management and Budget
                                                    Like all Committee meetings, the                        Reporting and recordkeeping                           (OMB) has waived the review process
                                                    December 9, 2015, meeting was a public                  requirements.                                         required by Executive Order 12866 for
                                                    meeting and all entities, both large and                                                                      this action.
                                                    small, were able to express views on                      For the reasons set forth in the
                                                    this issue. Finally, interested persons                 preamble, 7 CFR part 915 is proposed to               Executive Order 12988
                                                    are invited to submit comments on this                  be amended as follows:
                                                                                                                                                                    This proposed rule was reviewed
                                                    proposed rule, including the regulatory                                                                       under Executive Order 12988, Civil
                                                    and informational impacts of this action                PART 915—AVOCADOS GROWN IN
                                                                                                            SOUTH FLORIDA                                         Justice Reform. It is not intended to
                                                    on small businesses.                                                                                          have a retroactive effect. This action
                                                       In accordance with the Paperwork                       1. The authority citation for 7 CFR
                                                                                                            ■                                                     would not preempt any State or local
                                                    Reduction Act of 1995 (44 U.S.C.                        part 915 continues to read as follows:                laws, regulations, or policies unless they
                                                    Chapter 35), the order’s information
                                                                                                                Authority: 7 U.S.C. 601–674.                      present an irreconcilable conflict with
                                                    collection requirements have been
                                                                                                                                                                  this proposed rule. The Egg Research
                                                    previously approved by the Office of                    ■ 2. Section 915.235 is revised to read               and Consumer Information Act (Act), 7
                                                    Management and Budget (OMB) and                         as follows:                                           U.S.C. 2701 et seq., provides that
                                                    assigned OMB No. 0581–0189 (Generic
                                                                                                            § 915.235    Assessment rate.                         administrative proceedings be filed
                                                    Fruit Crops). No changes in those
                                                    requirements as a result of this action                   On and after April 1, 2016, an                      before parties may consider suit in
                                                    are necessary. Should any changes                       assessment rate of $0.35 per 55-pound                 court. Under section 14 of the Act, 7
                                                    become necessary, they would be                         container or equivalent is established                U.S.C. 2713, a person subject to the Egg
                                                    submitted to OMB for approval.                          for avocados grown in South Florida.                  Promotion and Research Order (Order)
                                                       This proposed rule would impose no                                                                         may file a petition with the U.S.
                                                                                                              Dated: March 10, 2016.                              Department of Agriculture (USDA)
                                                    additional reporting or recordkeeping                   Elanor Starmer,
                                                    requirements on either small or large                                                                         stating that the Order, any provision of
                                                                                                            Acting Administrator, Agricultural Marketing          the Order, or any obligation imposed in
                                                    Florida avocado handlers. As with all
                                                                                                            Service.                                              connection with the Order, is not in
                                                    Federal marketing order programs,
                                                                                                            [FR Doc. 2016–05834 Filed 3–15–16; 8:45 am]           accordance with the law and request a
                                                    reports and forms are periodically
                                                    reviewed to reduce information                          BILLING CODE 3410–02–P                                modification of the Order or an
                                                    requirements and duplication by                                                                               exemption from the Order. The
                                                    industry and public sector agencies.                                                                          petitioner is afforded the opportunity
                                                       AMS is committed to complying with                   DEPARTMENT OF AGRICULTURE                             for a hearing on the petition. After a
                                                    the E-Government Act, to promote the                                                                          hearing, USDA would rule on the
                                                                                                            Agricultural Marketing Service                        petition. The Act provides that district
                                                    use of the Internet and other
                                                    information technologies to provide                                                                           courts of the United States in any
                                                                                                            7 CFR Part 1250                                       district in which such person is an
                                                    increased opportunities for citizen
                                                    access to Government information and                    [Doc. No. AMS–LPS–15–0042]                            inhabitant, or has their principal place
                                                    services, and for other purposes.                                                                             of business, has jurisdiction to review
                                                       USDA has not identified any relevant                 Egg Research and Promotion: Updates                   USDA’s ruling on the petition, if a
                                                    Federal rules that duplicate, overlap, or               to Patents, Copyrights, Trademarks,                   complaint for this purpose is filed
                                                    conflict with this action.                              and Information Provisions                            within 20 days after the date of the entry
                                                       A small business guide on complying                  AGENCY:  Agricultural Marketing Service,              of the ruling.
                                                    with fruit, vegetable, and specialty crop               USDA.                                                 Regulatory Flexibility Act
                                                    marketing agreements and orders may
                                                                                                            ACTION: Proposed rule.                                   In accordance with the Regulatory
                                                    be viewed at: http://www.ams.usda.gov/
                                                    rules-regulations/moa/small-businesses.                 SUMMARY:    This proposed rule would                  Flexibility Act (RFA) [5 U.S.C. 601–
                                                    Any questions about the compliance                      update the Patents, Copyrights,                       612], the Agricultural Marketing Service
                                                    guide should be sent to Antoinette                      Trademarks, and Information Language                  (AMS) has determined that this rule will
                                                    Carter at the previously-mentioned                      (IP) of the Egg Research and Promotion                not have a significant economic impact
                                                    address in the FOR FURTHER INFORMATION                  Rules and Regulations (Regulations).                  on a substantial number of small entities
                                                    CONTACT section.                                        The proposed amendment would model                    as defined by RFA. The purpose of RFA
                                                       A 30-day comment period is provided                  current commodity research and                        is to fit regulatory action to scale on
                                                    to allow interested persons to respond                  promotion program orders created                      businesses subject to such action so that
                                                    to this proposed rule. Thirty days is                   under the Commodity Promotion,                        small businesses will not be
                                                    deemed appropriate because: (1) The                     Research, and Information Act of 1996.                disproportionately burdened. As such,
                                                    2016–17 fiscal period begins on April 1,                                                                      these changes will not impose a
                                                                                                            DATES: Comments must be received by
                                                    2016, and the marketing order requires                                                                        significant impact on persons subject to
                                                                                                            May 16, 2016.
                                                    that the rate of assessment for each                                                                          the program.
                                                    fiscal period apply to all assessable                   FOR FURTHER INFORMATION CONTACT:                         According to the American Egg Board
                                                    avocados handled during such fiscal                     Kenneth R. Payne, Research and                        (Board), around 181 producers are
mstockstill on DSK4VPTVN1PROD with PROPOSALS




                                                    period; (2) the Committee needs to have                 Promotion Division; Livestock, Poultry,               subject to the provisions of the Order,
                                                    sufficient funds to pay its expenses                    and Seed Program; AMS, USDA; 1400                     including paying assessments. Under
                                                    which are incurred on a continuous                      Independence Avenue SW., Room                         the current Order, producers in the 48
                                                    basis; and (3) handlers are aware of this               2096–S; Washington, DC 20250;                         contiguous United States and the
                                                    action which was recommended by the                     telephone: (202) 720–5705; fax (202)                  District of Columbia who own more
                                                    Committee at a public meeting and is                    720–1125; or email: Kenneth.Payne@                    than 75,000 laying hens each currently
                                                    similar to other assessment rate actions                ams.usda.gov.                                         pay a mandatory assessment of 10 cents
                                                    issued in past years.                                   SUPPLEMENTARY INFORMATION:                            per 30-dozen case of eggs. Handlers are


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Document Created: 2016-03-15 23:44:17
Document Modified: 2016-03-15 23:44:17
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 April 15, 2016.
ContactDoris Jamieson, Marketing Specialist, or Christian D. Nissen, Regional Director, Southeast Marketing Field Office, Marketing Order and Agreement Division, Specialty Crops Program, AMS, USDA; Telephone: (863) 324-3375, Fax: (863) 291-8614, or Email: [email protected] or [email protected]
FR Citation81 FR 14019 
CFR AssociatedAvocados; Marketing Agreements and Reporting and Recordkeeping Requirements

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