81_FR_23728 81 FR 23650 - Raisins Produced From Grapes Grown in California; Hearing on Proposed Amendment of Marketing Order No. 989

81 FR 23650 - Raisins Produced From Grapes Grown in California; Hearing on Proposed Amendment of Marketing Order No. 989

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 81, Issue 78 (April 22, 2016)

Page Range23650-23656
FR Document2016-09144

Notice is hereby given of a public hearing to receive evidence on proposed amendments to Marketing Order No. 989 (order) that regulates the handling of raisins grown in California. Five amendments are proposed by the Raisin Administrative Committee (Committee), which is responsible for local administration of the order. These proposed amendments would: Authorize production research; establish new nomination procedures for independent grower member and alternate member seats; add authority to regulate quality; add authority to establish different regulations for different markets; and add a continuance referenda requirement. In addition, the Agricultural Marketing Service (AMS) proposes two amendments. These amendments would remove order language pertaining to volume regulation and reserve pool authority and would establish term limits for Committee members. In addition, AMS proposes to make any such changes as may be necessary to the order to conform to any amendment that may result from the hearing. These proposed amendments are intended to update the order to reflect past changes in the industry and potential future changes, and to improve the operation and administration of the order.

Federal Register, Volume 81 Issue 78 (Friday, April 22, 2016)
[Federal Register Volume 81, Number 78 (Friday, April 22, 2016)]
[Proposed Rules]
[Pages 23650-23656]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-09144]


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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.

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Federal Register / Vol. 81, No. 78 / Friday, April 22, 2016 / 
Proposed Rules

[[Page 23650]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 989

[Doc. No. AO-FV-16-0016; AMS-SC-16-0011; SC16-989-1]


Raisins Produced From Grapes Grown in California; Hearing on 
Proposed Amendment of Marketing Order No. 989

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Notice of hearing on proposed rulemaking.

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

SUMMARY: Notice is hereby given of a public hearing to receive evidence 
on proposed amendments to Marketing Order No. 989 (order) that 
regulates the handling of raisins grown in California. Five amendments 
are proposed by the Raisin Administrative Committee (Committee), which 
is responsible for local administration of the order. These proposed 
amendments would: Authorize production research; establish new 
nomination procedures for independent grower member and alternate 
member seats; add authority to regulate quality; add authority to 
establish different regulations for different markets; and add a 
continuance referenda requirement.
    In addition, the Agricultural Marketing Service (AMS) proposes two 
amendments. These amendments would remove order language pertaining to 
volume regulation and reserve pool authority and would establish term 
limits for Committee members. In addition, AMS proposes to make any 
such changes as may be necessary to the order to conform to any 
amendment that may result from the hearing. These proposed amendments 
are intended to update the order to reflect past changes in the 
industry and potential future changes, and to improve the operation and 
administration of the order.

DATES: The hearing dates are May 3 and 4, 2016, 9:00 a.m. to 5:00 p.m.; 
and continuing on May 5, 2016, at 9:00 a.m., if necessary, in Clovis, 
California.

ADDRESSES: The hearing will be held at the Hilton Garden Inn Clovis, 
520 W Shaw Ave., Clovis, CA 93612.

FOR FURTHER INFORMATION CONTACT: Melissa Schmaedick, Marketing Order 
and Agreement Division, Specialty Crops Program, AMS, USDA, Post Office 
Box 952, Moab, UT 84532; Telephone: (202) 557-4783, Fax: (435) 259-
1502, or Michelle Sharrow, 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] or 
[email protected].
    Small businesses may request information on this proceeding 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 administrative action is instituted 
pursuant to the Agricultural Marketing Agreement Act of 1937, as 
amended (7 U.S.C. 601-674), hereinafter referred to as the ``Act.'' 
This action is governed by the provisions of sections 556 and 557 of 
title 5 of the United States Code and, therefore, is excluded from the 
requirements of Executive Order 12866.
    The Regulatory Flexibility Act (5 U.S.C. 601-612) seeks to ensure 
that within the statutory authority of a program, the regulatory and 
informational requirements are tailored to the size and nature of small 
businesses. Interested persons are invited to present evidence at the 
hearing on the possible regulatory and informational impacts of the 
proposals on small businesses.
    The amendments proposed herein have been reviewed under Executive 
Order 12988, Civil Justice Reform. They are not intended to have 
retroactive effect.
    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. A 
handler is afforded the opportunity for a hearing 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 the 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.
    The hearing is called pursuant to the provisions of the Act and the 
applicable rules of practice and procedure governing the formulation of 
marketing agreements and orders (7 CFR part 900).
    The proposed amendments were recommended by the Committee on 
January 27, 2016, and submitted to USDA on February 2, 2016. After 
reviewing the proposals and other information submitted by the 
Committee, USDA made a determination to schedule this matter for 
hearing.
    The proposed amendments to the order recommended by the Committee 
are summarized as follows:
    1. Amend Sec.  989.53 to authorize production research.
    2. Amend Sec. Sec.  989.29 and 989.129 to authorize separate 
nominations for independent grower member and independent grower 
alternate member seats.
    3. Amend Sec. Sec.  989.58, 989.59 and 989.61 to add authority to 
regulate quality. A corresponding change would also revise the heading 
prior to Sec.  989.58 to include quality.
    4. Amend Sec.  989.59 to add authority to establish different 
regulations for different markets.
    5. Amend Sec.  989.91 to require continuance referenda.
    6. Amend the order to remove volume regulation and reserve pool 
authority. This would include: Removing Sec. Sec.  989.55 and 989.56, 
Sec. Sec.  989.65 through 989.67, Sec. Sec.  989.71, 989.72, 989.82, 
989.154, 989.156, 989.166, 989.167, 989.221, 989.257 and 989.401; 
revising Sec. Sec.  989.11, 989.53, 989.54, 989.58, 989.59, 989.60, 
989.73, 989.79, 989.80, 989.84, 989.158, 989.173 and 989.210; and, 
redesignating Sec.  989.70 as Sec.  989.96. Corresponding changes would 
also remove the following headings:

[[Page 23651]]

``Volume Regulation'' prior to Sec. Sec.  989.65; ``Volume Regulation'' 
prior to Sec.  989.166; and, ``Subpart--Schedule of Payments'' prior to 
Sec.  989.401.
    7. Amend Sec.  989.28 to establish term limits.
    The Committee works with USDA in administering the order. These 
proposals submitted by the Committee have not received the approval of 
USDA. The Committee believes that its proposed amendments would update 
the order to address changes that have occurred in the industry and 
potential changes that could occur in the future. The amendments are 
intended to improve the operation and administration of the order.
    In addition to the proposed amendments to the order, AMS proposes 
to make any such changes as may be necessary to the order to conform to 
any amendment that may result from the hearing or to correct minor 
inconsistencies and typographical errors.
    The public hearing is held for the purpose of: (i) Receiving 
evidence about the economic and marketing conditions which relate to 
the proposed amendments of the order; (ii) determining whether there is 
a need for the proposed amendments to the order; and (iii) determining 
whether the proposed amendments or appropriate modifications thereof 
will tend to effectuate the declared policy of the Act.
    Testimony is invited at the hearing on all the proposals and 
recommendations contained in this notice, as well as any appropriate 
modifications or alternatives.
    All persons wishing to submit written material as evidence at the 
hearing should be prepared to submit four copies of such material at 
the hearing. Four copies of prepared testimony for presentation at the 
hearing should also be made available. To the extent practicable, eight 
additional copies of evidentiary exhibits and testimony prepared as an 
exhibit should be made available to USDA representatives on the day of 
appearance at the hearing. Any requests for preparation of USDA data 
for this rulemaking hearing should be made at least 10 days prior to 
the beginning of the hearing.
    From the time the notice of hearing is issued and until the 
issuance of a final decision in this proceeding, USDA employees 
involved in the decisional process are prohibited from discussing the 
merits of the hearing issues on an ex parte basis with any person 
having an interest in the proceeding. The prohibition applies to 
employees in the following organizational units: Office of the 
Secretary of Agriculture; Office of the Administrator, AMS; Office of 
the General Counsel; and the Specialty Crops Program, AMS.
    Procedural matters are not subject to the above prohibition and may 
be discussed at any time.

List of Subjects in 7 CFR Part 989

    Raisins, Marketing agreements, Reporting and recordkeeping 
requirements.

PART 989--RAISINS PRODUCED BY GRAPES GROWN IN CALIFORNIA

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

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

0
2. Testimony is invited on the following proposals or appropriate 
alternatives or modifications to such proposals.
    Proposals submitted by the Raisin Administrative Committee:

Proposal Number 1

0
3. In Sec.  989.53(a), revise the introductory text to read as follows:


Sec.  989.53  Research and development.

    (a) General. The Committee, with the approval of the Secretary, may 
establish or provide for the establishment of projects involving 
production research, market research and development, marketing 
promotion including paid advertising, designed to assist, improve, or 
promote the production, marketing, distribution, and consumption of 
raisins in domestic and foreign markets. These projects may include, 
but need not be limited to those designed to:
* * * * *

Proposal Number 2

0
4. In Sec.  989.29:
0
a. Revise paragraph (b)(2)(ii);
0
b. Redesignate paragraph (b)(2)(iii) as paragraph (b)(2)(iv);
0
c. Add a new paragraph (b)(2)(iii); and
0
d. Revise newly redesignated paragraph (b)(2)(iv).
    The revisions and addition read as follows:


Sec.  989.29  Initial members and nomination of successor members.

* * * * *
    (b) * * *
    (2) * * *
    (i) * * *
    (ii) Each such producer whose name is offered in nomination for 
producer member positions to represent on the committee independent 
producers or producers who are affiliated with cooperative marketing 
association(s) handling less than 10 percent of the total raisin 
acquisitions during the preceding crop year shall be given the 
opportunity to provide the committee a short statement outlining 
qualifications and desire to serve if selected. Similarly, each such 
producer whose name is offered in nomination for producer alternate 
member positions to represent on the committee independent producers or 
producers who are affiliated with cooperative marketing association(s) 
handling less than 10 percent of the total raisin acquisitions during 
the preceding crop year shall be given the opportunity to provide the 
committee a short statement outlining qualifications and desire to 
serve if selected. These brief statements, together with a ballot and 
voting instructions, shall be mailed to all independent producers and 
producers who are affiliated with cooperative marketing associations 
handling less than 10 percent of the total raisin acquisitions during 
the preceding crop year of record with the committee in each district. 
The producer member candidate receiving the highest number of votes 
shall be designated as the first member nominee, the second highest 
shall be designated as the second member nominee until nominees for all 
producer member positions have been filled. Similarly, the producer 
alternate member candidate receiving the highest number of votes shall 
be designated as the first alternate member nominee, the second highest 
shall be designated as the second alternate member nominee until 
nominees for all member positions have been filled.
    (iii) In the event that there are more producer member nominees 
than positions to be filled and not enough producer alternate member 
nominees to fill all positions, producer member nominees not nominated 
for a member seat may be nominated to fill vacant alternate member 
seats. Member seat nominees shall indicate, prior to the nomination 
vote, whether they are willing to accept nomination for an alternate 
seat in the event they are not nominated for a member seat and there 
are vacant alternate member seats. Member seat nominees that do not 
indicate willingness to be considered for vacant alternate member seats 
shall not be considered.
    (iv) Each independent producer or producer affiliated with 
cooperative marketing association(s) handling less than 10 percent of 
the total raisin acquisitions during the preceding crop year shall cast 
only one vote with respect to each position for which nominations are 
to be made. Write-in candidates shall be accepted. The person receiving 
the most votes with respect to each position to be filled, in

[[Page 23652]]

accordance with paragraph (b)(2)(ii) and (iii) of this section, shall 
be the person to be certified to the Secretary as the nominee. The 
committee may, subject to the approval of the Secretary, establish 
rules and regulations to effectuate this section.
* * * * *
0
5. Section 989.129 is revised to read as follows:


Sec.  989.129  Voting at nomination meetings.

    Any person (defined in Sec.  989.3 as an individual, partnership, 
corporation, association, or any other business unit) who is engaged, 
in a proprietary capacity, in the production of grapes which are sun-
dried or dehydrated by artificial means to produce raisins and who 
qualifies under the provisions of Sec.  989.29(b)(2) shall be eligible 
to cast one ballot for a nominee for each producer member position and 
one ballot for a nominee for each producer alternate member position on 
the committee which is to be filled for his district. Such person must 
be the one who or which: Owns and farms land resulting in his or its 
ownership of such grapes produced thereon; rents and farms land, 
resulting in his or its ownership of all or a portion of such grapes 
produced thereon; or owns land which he or it does not farm and, as 
rental for such land, obtains the ownership of a portion of such grapes 
or the raisins. In this connection, a partnership shall be deemed to 
include two or more persons (including a husband and wife) with respect 
to land the title to which, or leasehold interest in which, is vested 
in them as tenants in common, joint tenants, or under community 
property laws, as community property. In a landlord-tenant 
relationship, wherein each of the parties is a producer, each such 
producer shall be entitled to one vote for a nominee for each producer 
member position and one vote for each producer alternate member 
position. Hence, where two persons operate land as landlord and tenant 
on a share-crop basis, each person is entitled to one vote for each 
such position to be filled. Where land is leased on a cash rental 
basis, only the person who is the tenant or cash renter (producer) is 
entitled to vote. A partnership or corporation, when eligible, is 
entitled to cast only one vote for a nominee for each producer position 
to be filled in its district.

Proposal Number 3

0
6. In Sec.  989.58:
0
a. Revise the heading prior to this section, and
0
b. Revise paragraphs (a), (b), (d)(1) and (e)(1).
    The revisions read as follows:

Grade, Quality, and Condition Standards


Sec.  989.58  Natural condition raisins.

    (a) Regulation. No handler shall acquire or receive natural 
condition raisins which fail to meet such minimum grade, quality, and 
condition standards as the committee may establish, with the approval 
of the Secretary, in applicable rules and regulations: Provided, That a 
handler may receive raisins for inspection, may receive off-grade 
raisins for reconditioning and may receive or acquire off-grade raisins 
for use in eligible non-normal outlets: And provided further, That a 
handler may acquire natural condition raisins which exceed the 
tolerance established for maturity under a weight dockage system 
established pursuant to rules and regulations recommended by the 
committee and approved by the Secretary. Nothing contained in this 
paragraph shall apply to the acquisition or receipt of natural 
condition raisins of a particular varietal type for which minimum 
grade, quality, and condition standards are not applicable or then in 
effect pursuant to this part.
    (b) Changes in minimum grade, quality, and condition standards for 
natural condition raisins. The committee may recommend to the Secretary 
changes in the minimum grade, quality, and condition standards for 
natural condition raisins of any varietal type and may recommend to the 
Secretary that minimum grade, quality, and condition standards for any 
varietal type be added to or deleted. The committee shall submit with 
its recommendation all data and information upon which it acted in 
making its recommendation, and such other information as the Secretary 
may request. The Secretary shall approve any such change if he finds, 
upon the basis of data submitted to him by the committee or from other 
pertinent information available to him, that to do so would tend to 
effectuate the declared policy of the act.
* * * * *
    (d) * * *
    (1) Each handler shall cause an inspection and certification to be 
made of all natural condition raisins acquired or received by him, 
except with respect to:
    (i) An interplant or interhandler transfer of offgrade raisins as 
described in paragraph (e)(2) of this section, unless such inspection 
and certification are required by rules and procedures made effective 
pursuant to this amended subpart;
    (ii) An interplant or interhandler transfer of free tonnage raisins 
as described in Sec.  989.59(e);
    (iii) Raisins received from a dehydrator which have been previously 
inspected pursuant to paragraph (d)(2) of this section;
    (iv) Any raisins for which minimum grade, quality, and condition 
standards are not then in effect;
    (v) Raisins received from a cooperative bargaining association 
which have been inspected and are in compliance with requirements 
established pursuant to paragraph (d)(3) of this section; and
    (vi) Any raisins, if permitted in accordance with such rules and 
procedures as the committee may establish with the approval of the 
Secretary, acquired or received for disposition in eligible nonnormal 
outlets. The handler shall be reimbursed by the committee for 
inspection costs incurred by him and applicable to pool tonnage held 
for the account of the committee. Except as otherwise provided in this 
section, prior to blending raisins, acquiring raisins, storing raisins, 
reconditioning raisins, or acquiring raisins which have been 
reconditioned, each handler shall obtain an inspection certification 
showing whether or not the raisins meet the applicable grade, quality, 
and condition standards: Provided, That the initial inspection for 
infestation shall not be required if the raisins are fumigated in 
accordance with such rules and procedures as the committee shall 
establish with the approval of the Secretary. The handler shall submit 
or cause to be submitted to the committee a copy of such certification, 
together with such other documents or records as the committee may 
require. Such certification shall be issued by inspectors of the 
Processed Products Standardization and Inspection Branch of the U.S. 
Department of Agriculture, unless the committee determines, and the 
Secretary concurs in such determination, that inspection by another 
agency would improve the administration of this amended subpart. The 
committee may require that raisins held on memorandum receipt be 
reinspected and certified as a condition for their acquisition by a 
handler.
* * * * *
    (e) * * *
    (1) Any natural condition raisins tendered to a handler which fail 
to meet the applicable minimum grade, quality, and condition standards 
may:

[[Page 23653]]

    (i) Be received or acquired by the handler for disposition, without 
further inspection, in eligible non-normal outlets;
    (ii) Be returned unstemmed to the person tendering the raisins; or
    (iii) Be received by the handler for reconditioning. Off-grade 
raisins received by a handler under any one of the three described 
categories may be changed to any other of the categories under such 
rules and procedures as the committee, with the approval of the 
Secretary, shall establish. No handler shall ship or otherwise dispose 
of off-grade raisins which he does not return to the tenderer, transfer 
to another handler as provided in paragraph (e)(2) of this section, or 
recondition so that they at least meet the minimum standards prescribed 
in or pursuant to this amended subpart, except into eligible non-normal 
outlets.
* * * * *
0
7. In Sec.  989.59, revise paragraphs (a), (b), (d), (e), and (g) to 
read as follows:


Sec.  989.59  Regulation of the handling of raisins subsequent to their 
acquisition by handlers.

    (a) Regulation. Unless otherwise provided in this part, no handler 
shall:
    (1) Ship or otherwise make final disposition of natural condition 
raisins unless they at least meet the effective and applicable minimum 
grade, quality, and condition standards for natural condition raisins; 
or
    (2) Ship or otherwise make final disposition of packed raisins 
unless they at least meet such minimum grade, quality, and condition 
standards established by the committee, with the approval of the 
Secretary, in applicable rules and regulations or as later changed or 
prescribed pursuant to the provisions of paragraph (b) of this section: 
Provided, That nothing contained in this paragraph shall prohibit the 
shipment or final disposition of any raisins of a particular varietal 
type for which minimum standards are not applicable or then in effect 
pursuant to this part. And provided further, That a handler may grind 
raisins, which do not meet the minimum grade, quality, and condition 
standards for packed raisins because of mechanical damage or sugaring, 
into a raisin paste.
    (b) The committee may recommend changes in the minimum grade, 
quality, or condition standards for packed raisins of any varietal type 
and may recommend to the Secretary that minimum grade, quality, or 
condition standards for any varietal type be added or deleted. The 
committee shall submit with its recommendation all data and information 
upon which it acted in making its recommendation, and such other 
information as the Secretary may request. The Secretary shall approve 
any such change if he finds, upon the basis of data submitted to him by 
the committee or from other pertinent information available to him, 
that to do so would tend to effectuate the declared policy of the act.
* * * * *
    (d) Inspection and certification. Unless otherwise provided in this 
section, each handler shall, at his own expense, before shipping or 
otherwise making final disposition of raisins, cause and inspection to 
be made of such raisins to determine whether they meet the then 
applicable minimum grade, quality, and condition standards for natural 
condition raisins or the then applicable minimum standards for packed 
raisins. Such handler shall obtain a certificate that such raisins meet 
the aforementioned applicable minimum standards and shall submit or 
cause to be submitted to the committee a copy of such certificate 
together with such other documents or records as the committee may 
require. The certificate shall be issued by the Processed Products 
Standardization and Inspection Branch of the United States Department 
of Agriculture, unless the committee determines, and the Secretary 
concurs in such determination, that inspection by another agency will 
improve the administration of this amended subpart. Any certificate 
issued pursuant to this paragraph shall be valid only for such period 
of time as the committee may specify, with the approval of the 
Secretary, in appropriate rules and regulations.
    (e) Inter-plant and inter-handler transfers. Any handler may 
transfer from his plant to his own or another handler's plant within 
the State of California free tonnage any raisins without having had 
such raisins inspected as provided in paragraph (d) of this section. 
The transferring handler shall transmit promptly to the committee a 
report of such transfer, except that transfers between plants owned or 
operated by the same handler need not be reported. Before shipping or 
otherwise making final disposition of such raisins, the receiving 
handler shall comply with the requirements of this section.
* * * * *
    (g) Exemption of experimental and specialty packs. The committee 
may establish, with the approval of the Secretary, rules and procedures 
providing for the exemption of raisins in experimental and specialty 
packs from one or more of the requirements of the minimum grade, 
quality, or condition standards of this section, together with the 
inspection and certification requirements if applicable.
0
8. Section 989.61 is revised to read as follows:


Sec.  989.61  Above parity situations.

    The provisions of this part relating to minimum grade, quality, and 
condition standards and inspection requirements, within the meaning of 
section 2(3) of the Act, and any other provisions pertaining to the 
administration and enforcement of the order, shall continue in effect 
irrespective of whether the estimated season average price to producers 
for raisins is in excess of the parity level specified in section 2(1) 
of the act.

Proposal Number 4

0
9. Section 989.59 is further amended by revising paragraph (a) to read 
as follows:


Sec.  989.59  Regulation of the handling of raisins subsequent to their 
acquisition by handlers.

    (a) Regulation. Unless otherwise provided in this part, no handler 
shall:
    (1) Ship or otherwise make final disposition of natural condition 
raisins unless they at least meet the effective and applicable minimum 
grade, quality, and condition standards for natural condition raisins; 
or
    (2) Ship or otherwise make final disposition of packed raisins 
unless they at least meet such minimum grade, quality, and condition 
standards established by the committee, with the approval of the 
Secretary, in applicable rules and regulations or as later changed or 
prescribed pursuant to the provisions of paragraph (b) of this section: 
Provided, That nothing contained in this paragraph shall prohibit the 
shipment or final disposition of any raisins of a particular varietal 
type for which minimum standards are not applicable or then in effect 
pursuant to this part. And provided further, That a handler may grind 
raisins, which do not meet the minimum grade, quality, and condition 
standards for packed raisins because of mechanical damage or sugaring, 
into a raisin paste. The Committee may establish, with approval of the 
Secretary, different grade, quality, and condition regulations for 
different markets.
* * * * *

Proposal Number 5

0
10. In Sec.  989.91:
0
a. Redesignate paragraphs (c) and (d) as paragraphs (d) and (e), 
respectively, and;

[[Page 23654]]

0
b. Add a new paragraph (c).
    The addition to read as follows:


Sec.  989.91  Suspension or termination.

* * * * *
    (c) No less than two crop years and no later than six crop years 
after the effective date of this amendment, the Secretary shall conduct 
a referendum to ascertain whether continuance of this part is favored 
by producers. Subsequent referenda to ascertain continuance shall be 
conducted every six crop years thereafter. The Secretary may terminate 
the provisions of this part at the end of any crop year in which the 
Secretary has found that continuance of this part is not favored by a 
two-thirds majority of voting producers, or a two-thirds majority of 
volume represented thereby, who, during a representative period 
determined by the Secretary, have been engaged in the production for 
market of grapes used in the production of raisins in the State of 
California. Such termination shall be announced on or before the end of 
the crop year.
* * * * *
    Proposals submitted by USDA:

Proposal Number 6

0
11. Remove Sec. Sec.  989.55 and 989.56, Sec. Sec.  989.65 through 
989.67, Sec. Sec.  989.71, 989.72, 989.82, 989.154, 989.156, 989.166, 
989.167, 989.221, 989.257 and 989.401. Remove the headings ``Volume 
Regulation'' prior to Sec. Sec.  989.65, ``Volume Regulation'' prior to 
Sec.  989.166, and ``Subpart--Schedule of Payments'' prior to Sec.  
989.401.
0
12. Section 989.11 is revised to read as follows:


Sec.  989.11  Producer.

    Producer means any person engaged in a proprietary capacity in the 
production of grapes which are sun-dried or dehydrated by artificial 
means until they become raisins.
0
13. In Sec.  989.53(a), remove the text that follows paragraph (a)(5).
0
14. In Sec.  989.54:
0
a. Remove paragraphs (a) through (d) and (g);
0
b. Remove paragraph (e)(4);
0
c. Redesignate paragraphs (e)(5) through (e)(10) as (e)(4) through 
(e)(9), respectively;
0
d. Redesignate paragraphs (e), (f), and (h) as paragraphs (a), (b), and 
(c), respectively; and
0
e. Revise newly redesignated paragraphs (a) introductory text, (a)(1), 
(a)(4), (a)(5) and (c).
    The revisions read as follows:


Sec.  989.54  Marketing policy.

    (a) Each crop year, the Committee shall prepare and submit to the 
Secretary a report setting forth its recommended marketing policy, 
including quality regulations for the pending crop. In developing the 
marketing policy, the Committee may give consideration to the 
production, harvesting, processing, and storage conditions of that 
crop, as well as the following factors:
    (1) The estimated tonnage held by producers and handlers at the 
beginning of the crop year;
* * * * *
    (4) An estimated desirable carryout at the end of the crop year;
    (5) The estimated market demand for raisins, considering the 
estimated world raisin supply and demand situation;
* * * * *
    (c) Publicity. The Committee shall promptly give reasonable 
publicity to producers, dehydrators, handlers, and the cooperative 
bargaining association(s) of each meeting to consider a marketing 
policy or any modification thereof, and each such meeting shall be open 
to them. Similar publicity shall be given to producers, dehydrators, 
handlers, and the cooperative bargaining association(s) of each 
marketing policy report or modification thereof, filed with the 
Secretary and of the Secretary's action thereon. Copies of all 
marketing policy reports shall be maintained in the office of the 
Committee, where they shall be made available for examination by any 
producer, dehydrator, handler, or cooperative bargaining association 
representative. The Committee shall notify handlers, dehydrators and 
the cooperative bargaining association(s), and give reasonable 
publicity to producers of its computation.
0
15. In Sec.  989.58, further revise paragraphs (d)(1), and (e)(4) to 
read as follows:


Sec.  989.58  Natural condition raisins.

* * * * *
    (d) * * *
    (1) Each handler shall cause an inspection and certification to be 
made of all natural condition raisins acquired or received by him, 
except with respect to:
    (i) An interplant or interhandler transfer of offgrade raisins as 
described in paragraph (e)(2) of this section, unless such inspection 
and certification are required by rules and procedures made effective 
pursuant to this amended subpart;
    (ii) An interplant or interhandler transfer of natural condition 
raisins as described in Sec.  989.59(e);
    (iii) Raisins received from a dehydrator which have been previously 
inspected pursuant to paragraph (d)(2) of this section;
    (iv) Any raisins for which minimum grade, quality, and condition 
standards are not then in effect;
    (v) Raisins received from a cooperative bargaining association 
which have been inspected and are in compliance with requirements 
established pursuant to paragraph (d)(3) of this section; and
    (vi) Any raisins, if permitted in accordance with such rules and 
procedures as the committee may establish with the approval of the 
Secretary, acquired or received for disposition in eligible nonnormal 
outlets. Except as otherwise provided in this section, prior to 
blending raisins, acquiring raisins, storing raisins, reconditioning 
raisins, or acquiring raisins which have been reconditioned, each 
handler shall obtain an inspection certification showing whether or not 
the raisins meet the applicable grade, quality, and condition 
standards: Provided, That the initial inspection for infestation shall 
not be required if the raisins are fumigated in accordance with such 
rules and procedures as the committee shall establish with the approval 
of the Secretary. The handler shall submit or cause to be submitted to 
the committee a copy of such certification, together with such other 
documents or records as the committee may require. Such certification 
shall be issued by inspectors of the Processed Products Standardization 
and Inspection Branch of the U.S. Department of Agriculture, unless the 
committee determines, and the Secretary concurs in such determination, 
that inspection by another agency would improve the administration of 
this amended subpart. The committee may require that raisins held on 
memorandum receipt be reinspected and certified as a condition for 
their acquisition by a handler.
* * * * *
    (e) * * *
    (4) If the handler is to acquire the raisins after they are 
reconditioned, his obligation with respect to such raisins shall be 
based on the weight of the raisins (if stemmed, adjusted to natural 
condition weight) after they have been reconditioned.
* * * * *
0
16. In Sec.  989.59, further revise paragraph (e) to read as follows:


Sec.  989.59  Regulation of the handling of raisins subsequent to their 
acquisition by handlers.

* * * * *
    (e) Inter-plant and inter-handler transfers. Any handler may 
transfer from his plant to his own or another handler's plant within 
the State of

[[Page 23655]]

California any raisins without having had such raisins inspected as 
provided in paragraph (d) of this section. The transferring handler 
shall transmit promptly to the committee a report of such transfer, 
except that transfers between plants owned or operated by the same 
handler need not be reported. Before shipping or otherwise making final 
disposition of such raisins, the receiving handler shall comply with 
the requirements of this section.
* * * * *
0
17. Section 989.60(a) is revised to read as follows:


Sec.  989.60  Exemption.

    (a) Notwithstanding any other provisions of this amended subpart, 
the committee may establish, with the approval of the Secretary, such 
rules and procedures as may be necessary to permit the acquisition and 
disposition of any off-grade raisins, free from any or all regulations, 
for uses in non-normal outlets.
* * * * *
0
18. Redesignate Sec.  989.70 as Sec.  989.96.
0
19. Section 989.73 (b) is revised to read as follows:


Sec.  989.73  Reports.

* * * * *
    (b) Acquisition reports. Each handler shall submit to the committee 
in accordance with such rules and procedures as are prescribed by the 
committee, with the approval of the Secretary, certified reports, for 
such periods as the committee may require, with respect to his 
acquisitions of each varietal type of raisins during the particular 
period covered by such report, which report shall include, but not be 
limited to:
    (1) The total quantity of standard raisins acquired;
    (2) The total quantity of off-grade raisins acquired pursuant to 
Sec.  989.58(e)(1)(i); and
    (3) Cumulative totals of such acquisitions from the beginning of 
the then current crop year to and including the end of the period for 
which the report is made. Upon written application made to the 
committee, a handler may be relieved of submitting such reports after 
completing his packing operations for the season. Upon request of the 
committee, each handler shall furnish to the committee, in such manner 
and at such times as it may require, the name and address of each 
person from whom he acquired raisins and the quantity of each varietal 
type of raisins acquired from each such person.
* * * * *
0
20. Section 989.79 is revised to read as follows:


Sec.  989.79  Expenses.

    The committee is authorized to incur such expenses as the Secretary 
finds are reasonable and likely to be incurred by it during each crop 
year, for the maintenance and functioning of the committee and for such 
purposes as he may, pursuant to this subpart, determine to be 
appropriate. The funds to cover such expenses shall be obtained levying 
assessments as provided in Sec.  989.80. The committee shall file with 
the Secretary for each crop year a proposed budget of these expenses 
and a proposal as to the assessment rate to be fixed pursuant to Sec.  
989.80, together with a report thereon. Such filing shall be not later 
than October 5 of the crop year, but this date may be extended by the 
committee not more than 5 days if warranted by a late crop.
0
21. In Sec.  989.80, revise paragraphs (a) through (c) to read as 
follows:


Sec.  989.80  Assessments.

    (a) Each handler shall pay to the committee, upon demand, his pro 
rata share of the expenses which the Secretary finds will be incurred, 
as aforesaid, by the committee during each crop year less any amounts 
credited pursuant to Sec.  989.53. Such handler's pro rata share of 
such expenses shall be equal to the ratio between the total raisin 
tonnage acquired by such handler during the applicable crop year and 
the total raisin tonnage acquired by all handlers during the same crop 
year.
    (b) Each handler who reconditions off-grade raisins but does not 
acquire the standard raisins recovered therefrom shall, with respect to 
his assessable portion of all such standard raisins, pay to the 
committee, upon demand, his pro rata share of the expenses which the 
Secretary finds will be incurred by the committee each crop year. Such 
handler's pro rata share of such expenses shall be equal to the ratio 
between the handler's assessable portion (which shall be a quantity 
equal to such handler's standard raisins which are acquired by some 
other handler or handlers) during the applicable crop year and the 
total raisin tonnage acquired by all handlers.
    (c) The Secretary shall fix the rate of assessment to be paid by 
all handlers on the basis of a specified rate per ton. At any time 
during or after a crop year, the Secretary may increase the rate of 
assessment to obtain sufficient funds to cover any later finding by the 
Secretary relative to the expenses of the committee. Each handler shall 
pay such additional assessment to the committee upon demand. In order 
to provide funds to carry out the functions of the committee, the 
committee may accept advance payments from any handler to be credited 
toward such assessments as may be levied pursuant to this section 
against such handler during the crop year. The payment of assessments 
for the maintenance and functioning of the committee, and for such 
purposes as the Secretary may pursuant to this subpart determine to be 
appropriate, may be required under this part throughout the period it 
is in effect, irrespective of whether particular provisions thereof are 
suspended or become inoperative.
* * * * *
0
22. Section 989.84 is revised to read as follows:


Sec.  989.84  Disposition limitation.

    No handler shall dispose of standard raisins, off-grade raisins, or 
other failing raisins, except in accordance with the provisions of this 
subpart or pursuant to regulations issued by the committee.
0
23. Section 989.158(c)(4)(i) is revised to read as follows:


Sec.  989.158  Natural condition raisins.

* * * * *
    (c) * * *
    (4) * * *
    (i) The handler shall notify the inspection service at least one 
business day in advance of the time such handler plans to begin 
reconditioning each lot of raisins, unless a shorter period is 
acceptable to the inspection service. Such notification shall be 
provided verbally or by other means of communication, including email. 
Natural condition raisins which have been reconditioned shall continue 
to be considered natural condition raisins for purposes of reinspection 
(inspection pursuant to Sec.  989.58(d)) after such reconditioning has 
been completed, if no water or moisture has been added; otherwise, such 
raisins shall be considered as packed raisins. The weight of the 
raisins reconditioned successfully shall be determined by reweighing, 
except where a lot, before reconditioning, failed due to excess 
moisture only. The weight of such raisins resulting from reconditioning 
a lot failing account excess moisture may be determined by deducting 
1.2 percent of the weight for each percent of moisture in excess of the 
allowable tolerance. When necessary due to the presence of sand, as 
determined by the inspection service, the requirement for deducting 
sand tare and the manner of its determination, as prescribed in 
paragraph (a)(1) of this section, shall apply in computing the net 
weight of any such successfully reconditioned natural condition 
raisins. The weight of the reconditioned raisins acquired as packed 
raisins shall be adjusted to

[[Page 23656]]

natural condition weight by the use of factors applicable to the 
various degrees of processing accomplished. The applicable factor shall 
be that selected by the inspector of the reconditioned raisins from 
among factors established by the Committee with the approval of the 
Secretary.
* * * * *
0
24. In Sec.  989.173:
0
a. Remove paragraphs (b)(2)(ii), (f) and (g)(1)(ii);
0
b. Redesignate paragraphs (b)(2)(iii), (g) and (g)(1)(iii) as 
paragraphs (b)(2)(ii), and (f)(1)(ii), respectively; and
0
c. Revise paragraphs (a), (b)(2)(i), newly redesignated paragraph 
(b)(2)(ii), (c)(1), (d)(1), (d)(1)(v), and newly redesignated paragraph 
(f).
    The revisions read as follows:


Sec.  989.173  Reports.

    (a) Inventory reports. Each handler shall submit to the Committee 
as of the close of business on July 31 of each crop year, and not later 
than the following August 6, an inventory report which shall show, with 
respect to each varietal type of raisins held by such handler, the 
quantity of off-grade raisins segregated as to those for reconditioning 
and those for disposition as such. Provided, That, for the Other 
Seedless varietal type, handlers shall report the information required 
in this paragraph separately for the different types of Other Seedless 
raisins. Upon request by the Committee, each handler shall file at 
other times, and as of other dates, any of the said information which 
may reasonably be necessary and which the Committee shall specify in 
its request.
    (b) * * *
    (2) * * *
    (i) The total net weight of the standard raisins acquired during 
the reporting period; and
    (ii) The cumulative totals of such acquisitions from the beginning 
of the then current crop year.
* * * * *
    (c) * * *
    (1) Each month each handler who is not a processor shall furnish to 
the Committee, on an appropriate form provided by the Committee and so 
that it is received by the Committee not later than the seventh day of 
the month, a report showing the aggregate quantity of each varietal 
type of packed raisins and standard natural condition raisins which 
were shipped or otherwise disposed of by such handler during the 
preceding month (exclusive of transfers within the State of California 
between plants of any such handler and from such handler to other 
handlers): Provided, That, for the Other Seedless varietal type, 
handlers shall report such information for the different types of Other 
Seedless raisins. Such required information shall be segregated as to:
* * * * *
    (d) * * *
    (1) Any handler who transfers raisins to another handler within the 
State of California shall submit to the Committee not later than five 
calendar days following such transfer a report showing:
* * * * *
    (v) If packed, the transferring handler shall certify that such 
handler is transferring only acquired raisins that meet all applicable 
marketing order requirements, including reporting, incoming inspection, 
and assessments.
* * * * *
    (f) * * *
    (1) * * *
    (i) The quantity of raisins, segregated as to locations where they 
are stored and whether they are natural condition or packed;
    (ii) * * *
    (2) * * *
    (i) The total net weight of the standard raisins acquired during 
the reporting period; and
* * * * *
    (3) Disposition report of organically-produced raisins. No later 
than the seventh day of each month, handlers who are not processors 
shall submit to the Committee, on an appropriate form provided by the 
Committee, a report showing the aggregate quantity of packed raisins 
and standard natural condition raisins which were shipped or otherwise 
disposed of by such handler during the preceding month (exclusive of 
transfer within the State of California between the plants of any such 
handler and from such handler to other handlers). Such information 
shall include:
* * * * *
0
25. In Sec.  989.210:
0
a. Remove paragraphs (b), (c) and (e);
0
b. Redesignate paragraph (d) as (b), paragraph (f) as (c), and 
paragraph (g) as (d); and
0
c. Revise newly redesignated paragraph (b).
    The revisions read as follows:


Sec.  989.210  Handling of varietal types of raisins acquired pursuant 
to a weight dockage system.

* * * * *
    (b) Assessments. Assessments on any lot of raisins of the varietal 
types specified in paragraph (a) of this section acquired by a handler 
pursuant to a weight dockage system shall be applicable to the 
creditable weight of such lot.
* * * * *

Proposal Number 7

0
26. In Sec.  989.28:
0
a. Redesignate the introductory text as paragraph (a);
0
b. Revise newly redesignated paragraph (a); and
0
c. Add paragraph (b).
    The revisions and addition read as follows:


Sec.  989.28  Term of office.

    (a) The term of office of all representatives serving on the 
Committee shall be for two years and shall end on April 30 of even 
numbered calendar years; Provided, That each such member and alternate 
member shall continue to serve until their successor is selected and 
has qualified.
    (b) Representatives may serve up to four consecutive, two-year 
terms of office. In no event shall any representative serve more than 
eight consecutive years on the Committee. For purposes of determining 
when a representative has served four consecutive terms, the accrual of 
terms shall begin following any period of at least twelve consecutive 
months out of office. This limitation on tenure shall not include 
service on the Committee prior to implementation of this amendment.

Proposal Number 8

    Make other such changes as may be necessary to the order to conform 
with any amendment thereto that may result from the hearing.

    Dated: April 14, 2016.
Elanor Starmer,
Administrator, Agricultural Marketing Service.
[FR Doc. 2016-09144 Filed 4-21-16; 8:45 am]
 BILLING CODE P



                                                    23650

                                                    Proposed Rules                                                                                                 Federal Register
                                                                                                                                                                   Vol. 81, No. 78

                                                                                                                                                                   Friday, April 22, 2016



                                                    This section of the FEDERAL REGISTER                    continuing on May 5, 2016, at 9:00 a.m.,               order, any provision of the order, or any
                                                    contains notices to the public of the proposed          if necessary, in Clovis, California.                   obligation imposed in connection with
                                                    issuance of rules and regulations. The                  ADDRESSES: The hearing will be held at                 the order is not in accordance with law
                                                    purpose of these notices is to give interested          the Hilton Garden Inn Clovis, 520 W                    and request a modification of the order
                                                    persons an opportunity to participate in the                                                                   or to be exempted therefrom. A handler
                                                    rule making prior to the adoption of the final
                                                                                                            Shaw Ave., Clovis, CA 93612.
                                                    rules.                                                  FOR FURTHER INFORMATION CONTACT:                       is afforded the opportunity for a hearing
                                                                                                            Melissa Schmaedick, Marketing Order                    on the petition. The Act provides that
                                                                                                            and Agreement Division, Specialty                      the district court of the United States in
                                                    DEPARTMENT OF AGRICULTURE                               Crops Program, AMS, USDA, Post Office                  any district in which the handler is an
                                                                                                            Box 952, Moab, UT 84532; Telephone:                    inhabitant, or has his or her principal
                                                    Agricultural Marketing Service                          (202) 557–4783, Fax: (435) 259–1502, or                place of business, has jurisdiction to
                                                                                                            Michelle Sharrow, Marketing Order and                  review the USDA’s ruling on the
                                                    7 CFR Part 989                                          Agreement Division, Specialty Crops                    petition, provided an action is filed not
                                                                                                            Program, AMS, USDA, 1400                               later than 20 days after the date of the
                                                    [Doc. No. AO–FV–16–0016; AMS–SC–16–
                                                                                                            Independence Avenue SW., Stop 0237,                    entry of the ruling.
                                                    0011; SC16–989–1]
                                                                                                            Washington, DC 20250–0237;                                The hearing is called pursuant to the
                                                    Raisins Produced From Grapes Grown                      Telephone: (202) 720–2491, Fax: (202)                  provisions of the Act and the applicable
                                                    in California; Hearing on Proposed                      720–8938, or Email: Melissa.                           rules of practice and procedure
                                                    Amendment of Marketing Order No.                        Schmaedick@ams.usda.gov or                             governing the formulation of marketing
                                                    989                                                     Michelle.Sharrow@ams.usda.gov.                         agreements and orders (7 CFR part 900).
                                                                                                               Small businesses may request                           The proposed amendments were
                                                    AGENCY: Agricultural Marketing Service,                 information on this proceeding by                      recommended by the Committee on
                                                    USDA.                                                   contacting Antoinette Carter, Marketing                January 27, 2016, and submitted to
                                                    ACTION: Notice of hearing on proposed                   Order and Agreement Division,                          USDA on February 2, 2016. After
                                                    rulemaking.                                             Specialty Crops Program, AMS, USDA,                    reviewing the proposals and other
                                                                                                            1400 Independence Avenue SW., Stop                     information submitted by the
                                                    SUMMARY:   Notice is hereby given of a                  0237, Washington, DC 20250–0237;                       Committee, USDA made a
                                                    public hearing to receive evidence on                   Telephone: (202) 720–2491, Fax: (202)                  determination to schedule this matter
                                                    proposed amendments to Marketing                        720–8938, or Email: Antoinette.                        for hearing.
                                                    Order No. 989 (order) that regulates the                Carter@ams.usda.gov.                                      The proposed amendments to the
                                                    handling of raisins grown in California.                SUPPLEMENTARY INFORMATION: This                        order recommended by the Committee
                                                    Five amendments are proposed by the                     administrative action is instituted                    are summarized as follows:
                                                    Raisin Administrative Committee                         pursuant to the Agricultural Marketing                    1. Amend § 989.53 to authorize
                                                    (Committee), which is responsible for                   Agreement Act of 1937, as amended (7                   production research.
                                                    local administration of the order. These                U.S.C. 601–674), hereinafter referred to                  2. Amend §§ 989.29 and 989.129 to
                                                    proposed amendments would:                              as the ‘‘Act.’’ This action is governed by             authorize separate nominations for
                                                    Authorize production research;                          the provisions of sections 556 and 557                 independent grower member and
                                                    establish new nomination procedures                     of title 5 of the United States Code and,              independent grower alternate member
                                                    for independent grower member and                       therefore, is excluded from the                        seats.
                                                    alternate member seats; add authority to                requirements of Executive Order 12866.                    3. Amend §§ 989.58, 989.59 and
                                                    regulate quality; add authority to                         The Regulatory Flexibility Act (5                   989.61 to add authority to regulate
                                                    establish different regulations for                     U.S.C. 601–612) seeks to ensure that                   quality. A corresponding change would
                                                    different markets; and add a                            within the statutory authority of a                    also revise the heading prior to § 989.58
                                                    continuance referenda requirement.                      program, the regulatory and                            to include quality.
                                                       In addition, the Agricultural                        informational requirements are tailored                   4. Amend § 989.59 to add authority to
                                                    Marketing Service (AMS) proposes two                    to the size and nature of small                        establish different regulations for
                                                    amendments. These amendments would                      businesses. Interested persons are                     different markets.
                                                    remove order language pertaining to                     invited to present evidence at the                        5. Amend § 989.91 to require
                                                    volume regulation and reserve pool                      hearing on the possible regulatory and                 continuance referenda.
                                                    authority and would establish term                      informational impacts of the proposals                    6. Amend the order to remove volume
                                                    limits for Committee members. In                        on small businesses.                                   regulation and reserve pool authority.
                                                    addition, AMS proposes to make any                         The amendments proposed herein                      This would include: Removing
                                                    such changes as may be necessary to the                 have been reviewed under Executive                     §§ 989.55 and 989.56, §§ 989.65 through
                                                    order to conform to any amendment that                  Order 12988, Civil Justice Reform. They                989.67, §§ 989.71, 989.72, 989.82,
mstockstill on DSK4VPTVN1PROD with PROPOSALS




                                                    may result from the hearing. These                      are not intended to have retroactive                   989.154, 989.156, 989.166, 989.167,
                                                    proposed amendments are intended to                     effect.                                                989.221, 989.257 and 989.401; revising
                                                    update the order to reflect past changes                   The Act provides that administrative                §§ 989.11, 989.53, 989.54, 989.58,
                                                    in the industry and potential future                    proceedings must be exhausted before                   989.59, 989.60, 989.73, 989.79, 989.80,
                                                    changes, and to improve the operation                   parties may file suit in court. Under                  989.84, 989.158, 989.173 and 989.210;
                                                    and administration of the order.                        section 608c(15)(A) of the Act, any                    and, redesignating § 989.70 as § 989.96.
                                                    DATES: The hearing dates are May 3 and                  handler subject to an order may file                   Corresponding changes would also
                                                    4, 2016, 9:00 a.m. to 5:00 p.m.; and                    with USDA a petition stating that the                  remove the following headings:


                                               VerDate Sep<11>2014   17:53 Apr 21, 2016   Jkt 238001   PO 00000   Frm 00001   Fmt 4702   Sfmt 4702   E:\FR\FM\22APP1.SGM   22APP1


                                                                              Federal Register / Vol. 81, No. 78 / Friday, April 22, 2016 / Proposed Rules                                            23651

                                                    ‘‘Volume Regulation’’ prior to §§ 989.65;               the Administrator, AMS; Office of the                  preceding crop year shall be given the
                                                    ‘‘Volume Regulation’’ prior to § 989.166;               General Counsel; and the Specialty                     opportunity to provide the committee a
                                                    and, ‘‘Subpart—Schedule of Payments’’                   Crops Program, AMS.                                    short statement outlining qualifications
                                                    prior to § 989.401.                                       Procedural matters are not subject to                and desire to serve if selected. Similarly,
                                                       7. Amend § 989.28 to establish term                  the above prohibition and may be                       each such producer whose name is
                                                    limits.                                                 discussed at any time.                                 offered in nomination for producer
                                                       The Committee works with USDA in                                                                            alternate member positions to represent
                                                    administering the order. These                          List of Subjects in 7 CFR Part 989
                                                                                                                                                                   on the committee independent
                                                    proposals submitted by the Committee                      Raisins, Marketing agreements,                       producers or producers who are
                                                    have not received the approval of                       Reporting and recordkeeping                            affiliated with cooperative marketing
                                                    USDA. The Committee believes that its                   requirements.                                          association(s) handling less than 10
                                                    proposed amendments would update                                                                               percent of the total raisin acquisitions
                                                    the order to address changes that have                  PART 989—RAISINS PRODUCED BY                           during the preceding crop year shall be
                                                    occurred in the industry and potential                  GRAPES GROWN IN CALIFORNIA                             given the opportunity to provide the
                                                    changes that could occur in the future.                                                                        committee a short statement outlining
                                                    The amendments are intended to                          ■ 1. The authority citation for part 989               qualifications and desire to serve if
                                                    improve the operation and                               continues to read as follows:                          selected. These brief statements,
                                                    administration of the order.                                Authority: 7 U.S.C. 601–674.                       together with a ballot and voting
                                                       In addition to the proposed                                                                                 instructions, shall be mailed to all
                                                                                                            ■ 2. Testimony is invited on the
                                                    amendments to the order, AMS                                                                                   independent producers and producers
                                                                                                            following proposals or appropriate
                                                    proposes to make any such changes as                                                                           who are affiliated with cooperative
                                                                                                            alternatives or modifications to such
                                                    may be necessary to the order to                                                                               marketing associations handling less
                                                                                                            proposals.
                                                    conform to any amendment that may                                                                              than 10 percent of the total raisin
                                                                                                               Proposals submitted by the Raisin
                                                    result from the hearing or to correct                                                                          acquisitions during the preceding crop
                                                                                                            Administrative Committee:
                                                    minor inconsistencies and                                                                                      year of record with the committee in
                                                    typographical errors.                                   Proposal Number 1                                      each district. The producer member
                                                       The public hearing is held for the                                                                          candidate receiving the highest number
                                                                                                            ■ 3. In § 989.53(a), revise the
                                                    purpose of: (i) Receiving evidence about                                                                       of votes shall be designated as the first
                                                                                                            introductory text to read as follows:
                                                    the economic and marketing conditions                                                                          member nominee, the second highest
                                                    which relate to the proposed                            § 989.53    Research and development.                  shall be designated as the second
                                                    amendments of the order; (ii)                             (a) General. The Committee, with the                 member nominee until nominees for all
                                                    determining whether there is a need for                 approval of the Secretary, may establish               producer member positions have been
                                                    the proposed amendments to the order;                   or provide for the establishment of                    filled. Similarly, the producer alternate
                                                    and (iii) determining whether the                       projects involving production research,                member candidate receiving the highest
                                                    proposed amendments or appropriate                      market research and development,                       number of votes shall be designated as
                                                    modifications thereof will tend to                      marketing promotion including paid                     the first alternate member nominee, the
                                                    effectuate the declared policy of the Act.              advertising, designed to assist, improve,              second highest shall be designated as
                                                       Testimony is invited at the hearing on               or promote the production, marketing,                  the second alternate member nominee
                                                    all the proposals and recommendations                   distribution, and consumption of raisins               until nominees for all member positions
                                                    contained in this notice, as well as any                in domestic and foreign markets. These                 have been filled.
                                                    appropriate modifications or                            projects may include, but need not be                     (iii) In the event that there are more
                                                    alternatives.                                           limited to those designed to:                          producer member nominees than
                                                       All persons wishing to submit written                                                                       positions to be filled and not enough
                                                    material as evidence at the hearing                     *     *     *    *     *
                                                                                                                                                                   producer alternate member nominees to
                                                    should be prepared to submit four                       Proposal Number 2                                      fill all positions, producer member
                                                    copies of such material at the hearing.                                                                        nominees not nominated for a member
                                                                                                            ■ 4. In § 989.29:
                                                    Four copies of prepared testimony for                                                                          seat may be nominated to fill vacant
                                                                                                            ■ a. Revise paragraph (b)(2)(ii);
                                                    presentation at the hearing should also                 ■ b. Redesignate paragraph (b)(2)(iii) as              alternate member seats. Member seat
                                                    be made available. To the extent                        paragraph (b)(2)(iv);                                  nominees shall indicate, prior to the
                                                    practicable, eight additional copies of                 ■ c. Add a new paragraph (b)(2)(iii); and              nomination vote, whether they are
                                                    evidentiary exhibits and testimony                      ■ d. Revise newly redesignated                         willing to accept nomination for an
                                                    prepared as an exhibit should be made                   paragraph (b)(2)(iv).                                  alternate seat in the event they are not
                                                    available to USDA representatives on                      The revisions and addition read as                   nominated for a member seat and there
                                                    the day of appearance at the hearing.                   follows:                                               are vacant alternate member seats.
                                                    Any requests for preparation of USDA                                                                           Member seat nominees that do not
                                                    data for this rulemaking hearing should                 § 989.29 Initial members and nomination                indicate willingness to be considered for
                                                    be made at least 10 days prior to the                   of successor members.                                  vacant alternate member seats shall not
                                                    beginning of the hearing.                               *       *    *    *     *                              be considered.
                                                       From the time the notice of hearing is                  (b) * * *                                              (iv) Each independent producer or
                                                    issued and until the issuance of a final                   (2) * * *                                           producer affiliated with cooperative
                                                    decision in this proceeding, USDA                          (i) * * *                                           marketing association(s) handling less
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                                                    employees involved in the decisional                       (ii) Each such producer whose name                  than 10 percent of the total raisin
                                                    process are prohibited from discussing                  is offered in nomination for producer                  acquisitions during the preceding crop
                                                    the merits of the hearing issues on an ex               member positions to represent on the                   year shall cast only one vote with
                                                    parte basis with any person having an                   committee independent producers or                     respect to each position for which
                                                    interest in the proceeding. The                         producers who are affiliated with                      nominations are to be made. Write-in
                                                    prohibition applies to employees in the                 cooperative marketing association(s)                   candidates shall be accepted. The
                                                    following organizational units: Office of               handling less than 10 percent of the                   person receiving the most votes with
                                                    the Secretary of Agriculture; Office of                 total raisin acquisitions during the                   respect to each position to be filled, in


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                                                    23652                     Federal Register / Vol. 81, No. 78 / Friday, April 22, 2016 / Proposed Rules

                                                    accordance with paragraph (b)(2)(ii) and                ■ b. Revise paragraphs (a), (b), (d)(1) and            are required by rules and procedures
                                                    (iii) of this section, shall be the person              (e)(1).                                                made effective pursuant to this
                                                    to be certified to the Secretary as the                    The revisions read as follows:                      amended subpart;
                                                    nominee. The committee may, subject to                                                                            (ii) An interplant or interhandler
                                                                                                            Grade, Quality, and Condition
                                                    the approval of the Secretary, establish                                                                       transfer of free tonnage raisins as
                                                                                                            Standards
                                                    rules and regulations to effectuate this                                                                       described in § 989.59(e);
                                                    section.                                                § 989.58    Natural condition raisins.                    (iii) Raisins received from a
                                                    *      *      *     *    *                                 (a) Regulation. No handler shall                    dehydrator which have been previously
                                                    ■ 5. Section 989.129 is revised to read                 acquire or receive natural condition                   inspected pursuant to paragraph (d)(2)
                                                    as follows:                                             raisins which fail to meet such                        of this section;
                                                                                                            minimum grade, quality, and condition                     (iv) Any raisins for which minimum
                                                    § 989.129   Voting at nomination meetings.              standards as the committee may                         grade, quality, and condition standards
                                                       Any person (defined in § 989.3 as an                 establish, with the approval of the                    are not then in effect;
                                                    individual, partnership, corporation,                   Secretary, in applicable rules and                        (v) Raisins received from a
                                                    association, or any other business unit)                regulations: Provided, That a handler                  cooperative bargaining association
                                                    who is engaged, in a proprietary                        may receive raisins for inspection, may                which have been inspected and are in
                                                    capacity, in the production of grapes                   receive off-grade raisins for                          compliance with requirements
                                                    which are sun-dried or dehydrated by                    reconditioning and may receive or                      established pursuant to paragraph (d)(3)
                                                    artificial means to produce raisins and                 acquire off-grade raisins for use in                   of this section; and
                                                    who qualifies under the provisions of                   eligible non-normal outlets: And                          (vi) Any raisins, if permitted in
                                                    § 989.29(b)(2) shall be eligible to cast                provided further, That a handler may                   accordance with such rules and
                                                    one ballot for a nominee for each                       acquire natural condition raisins which                procedures as the committee may
                                                    producer member position and one                        exceed the tolerance established for                   establish with the approval of the
                                                    ballot for a nominee for each producer                  maturity under a weight dockage system                 Secretary, acquired or received for
                                                    alternate member position on the                        established pursuant to rules and                      disposition in eligible nonnormal
                                                    committee which is to be filled for his                 regulations recommended by the                         outlets. The handler shall be reimbursed
                                                    district. Such person must be the one                   committee and approved by the                          by the committee for inspection costs
                                                    who or which: Owns and farms land                       Secretary. Nothing contained in this                   incurred by him and applicable to pool
                                                    resulting in his or its ownership of such               paragraph shall apply to the acquisition               tonnage held for the account of the
                                                    grapes produced thereon; rents and                      or receipt of natural condition raisins of             committee. Except as otherwise
                                                    farms land, resulting in his or its                     a particular varietal type for which                   provided in this section, prior to
                                                    ownership of all or a portion of such                   minimum grade, quality, and condition                  blending raisins, acquiring raisins,
                                                    grapes produced thereon; or owns land                   standards are not applicable or then in                storing raisins, reconditioning raisins, or
                                                    which he or it does not farm and, as                    effect pursuant to this part.                          acquiring raisins which have been
                                                    rental for such land, obtains the                          (b) Changes in minimum grade,                       reconditioned, each handler shall obtain
                                                    ownership of a portion of such grapes or                quality, and condition standards for                   an inspection certification showing
                                                    the raisins. In this connection, a                      natural condition raisins. The                         whether or not the raisins meet the
                                                    partnership shall be deemed to include                  committee may recommend to the                         applicable grade, quality, and condition
                                                    two or more persons (including a                        Secretary changes in the minimum                       standards: Provided, That the initial
                                                    husband and wife) with respect to land                  grade, quality, and condition standards                inspection for infestation shall not be
                                                    the title to which, or leasehold interest               for natural condition raisins of any                   required if the raisins are fumigated in
                                                    in which, is vested in them as tenants                  varietal type and may recommend to the                 accordance with such rules and
                                                    in common, joint tenants, or under                      Secretary that minimum grade, quality,                 procedures as the committee shall
                                                    community property laws, as                             and condition standards for any varietal               establish with the approval of the
                                                    community property. In a landlord-                      type be added to or deleted. The                       Secretary. The handler shall submit or
                                                    tenant relationship, wherein each of the                committee shall submit with its                        cause to be submitted to the committee
                                                    parties is a producer, each such                        recommendation all data and                            a copy of such certification, together
                                                    producer shall be entitled to one vote                  information upon which it acted in                     with such other documents or records as
                                                    for a nominee for each producer                         making its recommendation, and such                    the committee may require. Such
                                                    member position and one vote for each                   other information as the Secretary may                 certification shall be issued by
                                                    producer alternate member position.                     request. The Secretary shall approve any               inspectors of the Processed Products
                                                    Hence, where two persons operate land                   such change if he finds, upon the basis                Standardization and Inspection Branch
                                                    as landlord and tenant on a share-crop                  of data submitted to him by the                        of the U.S. Department of Agriculture,
                                                    basis, each person is entitled to one vote              committee or from other pertinent                      unless the committee determines, and
                                                    for each such position to be filled.                    information available to him, that to do               the Secretary concurs in such
                                                    Where land is leased on a cash rental                   so would tend to effectuate the declared               determination, that inspection by
                                                    basis, only the person who is the tenant                policy of the act.                                     another agency would improve the
                                                    or cash renter (producer) is entitled to                *      *     *    *     *                              administration of this amended subpart.
                                                    vote. A partnership or corporation,                        (d) * * *                                           The committee may require that raisins
                                                    when eligible, is entitled to cast only                    (1) Each handler shall cause an                     held on memorandum receipt be
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                                                    one vote for a nominee for each                         inspection and certification to be made                reinspected and certified as a condition
                                                    producer position to be filled in its                   of all natural condition raisins acquired              for their acquisition by a handler.
                                                    district.                                               or received by him, except with respect                *       *     *    *     *
                                                                                                            to:                                                       (e) * * *
                                                    Proposal Number 3
                                                                                                               (i) An interplant or interhandler                      (1) Any natural condition raisins
                                                    ■ 6. In § 989.58:                                       transfer of offgrade raisins as described              tendered to a handler which fail to meet
                                                    ■ a. Revise the heading prior to this                   in paragraph (e)(2) of this section,                   the applicable minimum grade, quality,
                                                    section, and                                            unless such inspection and certification               and condition standards may:


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                                                                              Federal Register / Vol. 81, No. 78 / Friday, April 22, 2016 / Proposed Rules                                               23653

                                                       (i) Be received or acquired by the                   making its recommendation, and such                    one or more of the requirements of the
                                                    handler for disposition, without further                other information as the Secretary may                 minimum grade, quality, or condition
                                                    inspection, in eligible non-normal                      request. The Secretary shall approve any               standards of this section, together with
                                                    outlets;                                                such change if he finds, upon the basis                the inspection and certification
                                                       (ii) Be returned unstemmed to the                    of data submitted to him by the                        requirements if applicable.
                                                    person tendering the raisins; or                        committee or from other pertinent                      ■ 8. Section 989.61 is revised to read as
                                                       (iii) Be received by the handler for                 information available to him, that to do               follows:
                                                    reconditioning. Off-grade raisins                       so would tend to effectuate the declared
                                                    received by a handler under any one of                                                                         § 989.61   Above parity situations.
                                                                                                            policy of the act.
                                                    the three described categories may be                                                                             The provisions of this part relating to
                                                                                                            *      *     *     *    *
                                                    changed to any other of the categories                     (d) Inspection and certification.                   minimum grade, quality, and condition
                                                    under such rules and procedures as the                  Unless otherwise provided in this                      standards and inspection requirements,
                                                    committee, with the approval of the                     section, each handler shall, at his own                within the meaning of section 2(3) of the
                                                    Secretary, shall establish. No handler                  expense, before shipping or otherwise                  Act, and any other provisions pertaining
                                                    shall ship or otherwise dispose of off-                 making final disposition of raisins,                   to the administration and enforcement
                                                    grade raisins which he does not return                  cause and inspection to be made of such                of the order, shall continue in effect
                                                    to the tenderer, transfer to another                    raisins to determine whether they meet                 irrespective of whether the estimated
                                                    handler as provided in paragraph (e)(2)                 the then applicable minimum grade,                     season average price to producers for
                                                    of this section, or recondition so that                 quality, and condition standards for                   raisins is in excess of the parity level
                                                    they at least meet the minimum                          natural condition raisins or the then                  specified in section 2(1) of the act.
                                                    standards prescribed in or pursuant to                  applicable minimum standards for                       Proposal Number 4
                                                    this amended subpart, except into                       packed raisins. Such handler shall
                                                    eligible non-normal outlets.                                                                                   ■ 9. Section 989.59 is further amended
                                                                                                            obtain a certificate that such raisins
                                                    *       *     *     *      *                                                                                   by revising paragraph (a) to read as
                                                                                                            meet the aforementioned applicable
                                                    ■ 7. In § 989.59, revise paragraphs (a),                                                                       follows:
                                                                                                            minimum standards and shall submit or
                                                    (b), (d), (e), and (g) to read as follows:              cause to be submitted to the committee                 § 989.59 Regulation of the handling of
                                                    § 989.59 Regulation of the handling of                  a copy of such certificate together with               raisins subsequent to their acquisition by
                                                                                                            such other documents or records as the                 handlers.
                                                    raisins subsequent to their acquisition by
                                                    handlers.                                               committee may require. The certificate                    (a) Regulation. Unless otherwise
                                                       (a) Regulation. Unless otherwise                     shall be issued by the Processed                       provided in this part, no handler shall:
                                                    provided in this part, no handler shall:                Products Standardization and                              (1) Ship or otherwise make final
                                                       (1) Ship or otherwise make final                     Inspection Branch of the United States                 disposition of natural condition raisins
                                                    disposition of natural condition raisins                Department of Agriculture, unless the                  unless they at least meet the effective
                                                    unless they at least meet the effective                 committee determines, and the                          and applicable minimum grade, quality,
                                                    and applicable minimum grade, quality,                  Secretary concurs in such                              and condition standards for natural
                                                    and condition standards for natural                     determination, that inspection by                      condition raisins; or
                                                    condition raisins; or                                   another agency will improve the                           (2) Ship or otherwise make final
                                                       (2) Ship or otherwise make final                     administration of this amended subpart.                disposition of packed raisins unless
                                                    disposition of packed raisins unless                    Any certificate issued pursuant to this                they at least meet such minimum grade,
                                                    they at least meet such minimum grade,                  paragraph shall be valid only for such                 quality, and condition standards
                                                    quality, and condition standards                        period of time as the committee may                    established by the committee, with the
                                                    established by the committee, with the                  specify, with the approval of the                      approval of the Secretary, in applicable
                                                    approval of the Secretary, in applicable                Secretary, in appropriate rules and                    rules and regulations or as later changed
                                                    rules and regulations or as later changed               regulations.                                           or prescribed pursuant to the provisions
                                                    or prescribed pursuant to the provisions                   (e) Inter-plant and inter-handler                   of paragraph (b) of this section:
                                                    of paragraph (b) of this section:                       transfers. Any handler may transfer                    Provided, That nothing contained in this
                                                    Provided, That nothing contained in this                from his plant to his own or another                   paragraph shall prohibit the shipment or
                                                    paragraph shall prohibit the shipment or                handler’s plant within the State of                    final disposition of any raisins of a
                                                    final disposition of any raisins of a                   California free tonnage any raisins                    particular varietal type for which
                                                    particular varietal type for which                      without having had such raisins                        minimum standards are not applicable
                                                    minimum standards are not applicable                    inspected as provided in paragraph (d)                 or then in effect pursuant to this part.
                                                    or then in effect pursuant to this part.                of this section. The transferring handler              And provided further, That a handler
                                                    And provided further, That a handler                    shall transmit promptly to the                         may grind raisins, which do not meet
                                                    may grind raisins, which do not meet                    committee a report of such transfer,                   the minimum grade, quality, and
                                                    the minimum grade, quality, and                         except that transfers between plants                   condition standards for packed raisins
                                                    condition standards for packed raisins                  owned or operated by the same handler                  because of mechanical damage or
                                                    because of mechanical damage or                         need not be reported. Before shipping or               sugaring, into a raisin paste. The
                                                    sugaring, into a raisin paste.                          otherwise making final disposition of                  Committee may establish, with approval
                                                       (b) The committee may recommend                      such raisins, the receiving handler shall              of the Secretary, different grade, quality,
                                                    changes in the minimum grade, quality,                  comply with the requirements of this                   and condition regulations for different
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                                                    or condition standards for packed                       section.                                               markets.
                                                    raisins of any varietal type and may                    *      *     *     *    *                              *      *    *     *     *
                                                    recommend to the Secretary that                            (g) Exemption of experimental and
                                                    minimum grade, quality, or condition                    specialty packs. The committee may                     Proposal Number 5
                                                    standards for any varietal type be added                establish, with the approval of the                    ■ 10. In § 989.91:
                                                    or deleted. The committee shall submit                  Secretary, rules and procedures                        ■ a. Redesignate paragraphs (c) and (d)
                                                    with its recommendation all data and                    providing for the exemption of raisins in              as paragraphs (d) and (e), respectively,
                                                    information upon which it acted in                      experimental and specialty packs from                  and;


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                                                    23654                     Federal Register / Vol. 81, No. 78 / Friday, April 22, 2016 / Proposed Rules

                                                    ■   b. Add a new paragraph (c).                         Secretary a report setting forth its                      (iv) Any raisins for which minimum
                                                        The addition to read as follows:                    recommended marketing policy,                          grade, quality, and condition standards
                                                                                                            including quality regulations for the                  are not then in effect;
                                                    § 989.91   Suspension or termination.                                                                             (v) Raisins received from a
                                                                                                            pending crop. In developing the
                                                    *      *    *     *     *                               marketing policy, the Committee may                    cooperative bargaining association
                                                       (c) No less than two crop years and no               give consideration to the production,                  which have been inspected and are in
                                                    later than six crop years after the                     harvesting, processing, and storage                    compliance with requirements
                                                    effective date of this amendment, the                   conditions of that crop, as well as the                established pursuant to paragraph (d)(3)
                                                    Secretary shall conduct a referendum to                 following factors:                                     of this section; and
                                                    ascertain whether continuance of this                     (1) The estimated tonnage held by                       (vi) Any raisins, if permitted in
                                                    part is favored by producers.                           producers and handlers at the beginning                accordance with such rules and
                                                    Subsequent referenda to ascertain                       of the crop year;                                      procedures as the committee may
                                                    continuance shall be conducted every                    *     *     *     *     *                              establish with the approval of the
                                                    six crop years thereafter. The Secretary                  (4) An estimated desirable carryout at               Secretary, acquired or received for
                                                    may terminate the provisions of this                    the end of the crop year;                              disposition in eligible nonnormal
                                                    part at the end of any crop year in                       (5) The estimated market demand for                  outlets. Except as otherwise provided in
                                                    which the Secretary has found that                      raisins, considering the estimated world               this section, prior to blending raisins,
                                                    continuance of this part is not favored                 raisin supply and demand situation;                    acquiring raisins, storing raisins,
                                                    by a two-thirds majority of voting                      *     *     *     *     *                              reconditioning raisins, or acquiring
                                                    producers, or a two-thirds majority of                    (c) Publicity. The Committee shall                   raisins which have been reconditioned,
                                                    volume represented thereby, who,                        promptly give reasonable publicity to                  each handler shall obtain an inspection
                                                    during a representative period                          producers, dehydrators, handlers, and                  certification showing whether or not the
                                                    determined by the Secretary, have been                  the cooperative bargaining association(s)              raisins meet the applicable grade,
                                                    engaged in the production for market of                 of each meeting to consider a marketing                quality, and condition standards:
                                                    grapes used in the production of raisins                policy or any modification thereof, and                Provided, That the initial inspection for
                                                    in the State of California. Such                        each such meeting shall be open to                     infestation shall not be required if the
                                                    termination shall be announced on or                    them. Similar publicity shall be given to              raisins are fumigated in accordance with
                                                    before the end of the crop year.                        producers, dehydrators, handlers, and                  such rules and procedures as the
                                                    *      *    *     *     *                               the cooperative bargaining association(s)              committee shall establish with the
                                                       Proposals submitted by USDA:                         of each marketing policy report or                     approval of the Secretary. The handler
                                                                                                            modification thereof, filed with the                   shall submit or cause to be submitted to
                                                    Proposal Number 6                                                                                              the committee a copy of such
                                                                                                            Secretary and of the Secretary’s action
                                                    ■ 11. Remove §§ 989.55 and 989.56,                                                                             certification, together with such other
                                                                                                            thereon. Copies of all marketing policy
                                                    §§ 989.65 through 989.67, §§ 989.71,                    reports shall be maintained in the office              documents or records as the committee
                                                    989.72, 989.82, 989.154, 989.156,                       of the Committee, where they shall be                  may require. Such certification shall be
                                                    989.166, 989.167, 989.221, 989.257 and                  made available for examination by any                  issued by inspectors of the Processed
                                                    989.401. Remove the headings ‘‘Volume                   producer, dehydrator, handler, or                      Products Standardization and
                                                    Regulation’’ prior to §§ 989.65, ‘‘Volume               cooperative bargaining association                     Inspection Branch of the U.S.
                                                    Regulation’’ prior to § 989.166, and                    representative. The Committee shall                    Department of Agriculture, unless the
                                                    ‘‘Subpart—Schedule of Payments’’ prior                  notify handlers, dehydrators and the                   committee determines, and the
                                                    to § 989.401.                                           cooperative bargaining association(s),                 Secretary concurs in such
                                                    ■ 12. Section 989.11 is revised to read                                                                        determination, that inspection by
                                                                                                            and give reasonable publicity to
                                                    as follows:                                                                                                    another agency would improve the
                                                                                                            producers of its computation.
                                                    § 989.11   Producer.                                    ■ 15. In § 989.58, further revise                      administration of this amended subpart.
                                                                                                            paragraphs (d)(1), and (e)(4) to read as               The committee may require that raisins
                                                       Producer means any person engaged
                                                                                                            follows:                                               held on memorandum receipt be
                                                    in a proprietary capacity in the
                                                                                                                                                                   reinspected and certified as a condition
                                                    production of grapes which are sun-                     § 989.58    Natural condition raisins.                 for their acquisition by a handler.
                                                    dried or dehydrated by artificial means
                                                                                                            *       *     *    *     *                             *      *      *   *      *
                                                    until they become raisins.                                 (d) * * *
                                                    ■ 13. In § 989.53(a), remove the text that
                                                                                                                                                                      (e) * * *
                                                                                                               (1) Each handler shall cause an                        (4) If the handler is to acquire the
                                                    follows paragraph (a)(5).                               inspection and certification to be made
                                                    ■ 14. In § 989.54:
                                                                                                                                                                   raisins after they are reconditioned, his
                                                                                                            of all natural condition raisins acquired              obligation with respect to such raisins
                                                    ■ a. Remove paragraphs (a) through (d)
                                                                                                            or received by him, except with respect                shall be based on the weight of the
                                                    and (g);
                                                    ■ b. Remove paragraph (e)(4);
                                                                                                            to:                                                    raisins (if stemmed, adjusted to natural
                                                    ■ c. Redesignate paragraphs (e)(5)
                                                                                                               (i) An interplant or interhandler                   condition weight) after they have been
                                                    through (e)(10) as (e)(4) through (e)(9),               transfer of offgrade raisins as described              reconditioned.
                                                    respectively;                                           in paragraph (e)(2) of this section,                   *      *      *   *      *
                                                    ■ d. Redesignate paragraphs (e), (f), and               unless such inspection and certification               ■ 16. In § 989.59, further revise
                                                    (h) as paragraphs (a), (b), and (c),                    are required by rules and procedures                   paragraph (e) to read as follows:
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                                                    respectively; and                                       made effective pursuant to this
                                                    ■ e. Revise newly redesignated                          amended subpart;                                       § 989.59 Regulation of the handling of
                                                    paragraphs (a) introductory text, (a)(1),                  (ii) An interplant or interhandler                  raisins subsequent to their acquisition by
                                                                                                            transfer of natural condition raisins as               handlers.
                                                    (a)(4), (a)(5) and (c).
                                                       The revisions read as follows:                       described in § 989.59(e);                              *      *     *     *    *
                                                                                                               (iii) Raisins received from a                          (e) Inter-plant and inter-handler
                                                    § 989.54   Marketing policy.                            dehydrator which have been previously                  transfers. Any handler may transfer
                                                      (a) Each crop year, the Committee                     inspected pursuant to paragraph (d)(2)                 from his plant to his own or another
                                                    shall prepare and submit to the                         of this section;                                       handler’s plant within the State of


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                                                                              Federal Register / Vol. 81, No. 78 / Friday, April 22, 2016 / Proposed Rules                                               23655

                                                    California any raisins without having                   § 989.79    Expenses.                                  advance payments from any handler to
                                                    had such raisins inspected as provided                     The committee is authorized to incur                be credited toward such assessments as
                                                    in paragraph (d) of this section. The                   such expenses as the Secretary finds are               may be levied pursuant to this section
                                                    transferring handler shall transmit                     reasonable and likely to be incurred by                against such handler during the crop
                                                    promptly to the committee a report of                   it during each crop year, for the                      year. The payment of assessments for
                                                    such transfer, except that transfers                    maintenance and functioning of the                     the maintenance and functioning of the
                                                    between plants owned or operated by                     committee and for such purposes as he                  committee, and for such purposes as the
                                                    the same handler need not be reported.                  may, pursuant to this subpart,                         Secretary may pursuant to this subpart
                                                    Before shipping or otherwise making                     determine to be appropriate. The funds                 determine to be appropriate, may be
                                                    final disposition of such raisins, the                  to cover such expenses shall be obtained               required under this part throughout the
                                                    receiving handler shall comply with the                 levying assessments as provided in                     period it is in effect, irrespective of
                                                    requirements of this section.                           § 989.80. The committee shall file with                whether particular provisions thereof
                                                    *     *     *    *     *                                the Secretary for each crop year a                     are suspended or become inoperative.
                                                    ■ 17. Section 989.60(a) is revised to read              proposed budget of these expenses and                  *     *     *      *      *
                                                    as follows:                                             a proposal as to the assessment rate to                ■ 22. Section 989.84 is revised to read
                                                                                                            be fixed pursuant to § 989.80, together                as follows:
                                                    § 989.60   Exemption.                                   with a report thereon. Such filing shall
                                                       (a) Notwithstanding any other                        be not later than October 5 of the crop                § 989.84    Disposition limitation.
                                                    provisions of this amended subpart, the                 year, but this date may be extended by                   No handler shall dispose of standard
                                                    committee may establish, with the                       the committee not more than 5 days if                  raisins, off-grade raisins, or other failing
                                                    approval of the Secretary, such rules                   warranted by a late crop.                              raisins, except in accordance with the
                                                    and procedures as may be necessary to                   ■ 21. In § 989.80, revise paragraphs (a)               provisions of this subpart or pursuant to
                                                    permit the acquisition and disposition                  through (c) to read as follows:                        regulations issued by the committee.
                                                    of any off-grade raisins, free from any or                                                                     ■ 23. Section 989.158(c)(4)(i) is revised
                                                    all regulations, for uses in non-normal                 § 989.80    Assessments.                               to read as follows:
                                                    outlets.                                                  (a) Each handler shall pay to the
                                                                                                            committee, upon demand, his pro rata                   § 989.158    Natural condition raisins.
                                                    *      *    *     *     *
                                                    ■ 18. Redesignate § 989.70 as § 989.96.                 share of the expenses which the                        *      *     *    *    *
                                                    ■ 19. Section 989.73 (b) is revised to                  Secretary finds will be incurred, as                      (c) * * *
                                                    read as follows:                                        aforesaid, by the committee during each                   (4) * * *
                                                                                                            crop year less any amounts credited                       (i) The handler shall notify the
                                                    § 989.73   Reports.                                     pursuant to § 989.53. Such handler’s pro               inspection service at least one business
                                                    *     *     *      *    *                               rata share of such expenses shall be                   day in advance of the time such handler
                                                      (b) Acquisition reports. Each handler                 equal to the ratio between the total                   plans to begin reconditioning each lot of
                                                    shall submit to the committee in                        raisin tonnage acquired by such handler                raisins, unless a shorter period is
                                                    accordance with such rules and                          during the applicable crop year and the                acceptable to the inspection service.
                                                    procedures as are prescribed by the                     total raisin tonnage acquired by all                   Such notification shall be provided
                                                    committee, with the approval of the                     handlers during the same crop year.                    verbally or by other means of
                                                    Secretary, certified reports, for such                    (b) Each handler who reconditions                    communication, including email.
                                                    periods as the committee may require,                   off-grade raisins but does not acquire                 Natural condition raisins which have
                                                    with respect to his acquisitions of each                the standard raisins recovered therefrom               been reconditioned shall continue to be
                                                    varietal type of raisins during the                     shall, with respect to his assessable                  considered natural condition raisins for
                                                    particular period covered by such                       portion of all such standard raisins, pay              purposes of reinspection (inspection
                                                    report, which report shall include, but                 to the committee, upon demand, his pro                 pursuant to § 989.58(d)) after such
                                                    not be limited to:                                      rata share of the expenses which the                   reconditioning has been completed, if
                                                      (1) The total quantity of standard                    Secretary finds will be incurred by the                no water or moisture has been added;
                                                    raisins acquired;                                       committee each crop year. Such                         otherwise, such raisins shall be
                                                      (2) The total quantity of off-grade                   handler’s pro rata share of such                       considered as packed raisins. The
                                                    raisins acquired pursuant to                            expenses shall be equal to the ratio                   weight of the raisins reconditioned
                                                    § 989.58(e)(1)(i); and                                  between the handler’s assessable                       successfully shall be determined by
                                                      (3) Cumulative totals of such                         portion (which shall be a quantity equal               reweighing, except where a lot, before
                                                    acquisitions from the beginning of the                  to such handler’s standard raisins which               reconditioning, failed due to excess
                                                    then current crop year to and including                 are acquired by some other handler or                  moisture only. The weight of such
                                                    the end of the period for which the                     handlers) during the applicable crop                   raisins resulting from reconditioning a
                                                    report is made. Upon written                            year and the total raisin tonnage                      lot failing account excess moisture may
                                                    application made to the committee, a                    acquired by all handlers.                              be determined by deducting 1.2 percent
                                                    handler may be relieved of submitting                     (c) The Secretary shall fix the rate of              of the weight for each percent of
                                                    such reports after completing his                       assessment to be paid by all handlers on               moisture in excess of the allowable
                                                    packing operations for the season. Upon                 the basis of a specified rate per ton. At              tolerance. When necessary due to the
                                                    request of the committee, each handler                  any time during or after a crop year, the              presence of sand, as determined by the
                                                    shall furnish to the committee, in such                 Secretary may increase the rate of                     inspection service, the requirement for
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                                                    manner and at such times as it may                      assessment to obtain sufficient funds to               deducting sand tare and the manner of
                                                    require, the name and address of each                   cover any later finding by the Secretary               its determination, as prescribed in
                                                    person from whom he acquired raisins                    relative to the expenses of the                        paragraph (a)(1) of this section, shall
                                                    and the quantity of each varietal type of               committee. Each handler shall pay such                 apply in computing the net weight of
                                                    raisins acquired from each such person.                 additional assessment to the committee                 any such successfully reconditioned
                                                    *     *     *      *    *                               upon demand. In order to provide funds                 natural condition raisins. The weight of
                                                    ■ 20. Section 989.79 is revised to read                 to carry out the functions of the                      the reconditioned raisins acquired as
                                                    as follows:                                             committee, the committee may accept                    packed raisins shall be adjusted to


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                                                    23656                     Federal Register / Vol. 81, No. 78 / Friday, April 22, 2016 / Proposed Rules

                                                    natural condition weight by the use of                  varietal type, handlers shall report such              applicable to the creditable weight of
                                                    factors applicable to the various degrees               information for the different types of                 such lot.
                                                    of processing accomplished. The                         Other Seedless raisins. Such required                  *    *     *     *     *
                                                    applicable factor shall be that selected                information shall be segregated as to:
                                                    by the inspector of the reconditioned                                                                          Proposal Number 7
                                                                                                            *       *    *     *     *
                                                    raisins from among factors established                     (d) * * *                                           ■ 26. In § 989.28:
                                                    by the Committee with the approval of                                                                          ■ a. Redesignate the introductory text as
                                                                                                               (1) Any handler who transfers raisins
                                                    the Secretary.                                          to another handler within the State of                 paragraph (a);
                                                                                                                                                                   ■ b. Revise newly redesignated
                                                    *      *     *      *      *                            California shall submit to the Committee
                                                    ■ 24. In § 989.173:
                                                                                                                                                                   paragraph (a); and
                                                                                                            not later than five calendar days
                                                                                                                                                                   ■ c. Add paragraph (b).
                                                    ■ a. Remove paragraphs (b)(2)(ii), (f) and              following such transfer a report                         The revisions and addition read as
                                                    (g)(1)(ii);                                             showing:                                               follows:
                                                    ■ b. Redesignate paragraphs (b)(2)(iii),                *       *    *     *     *
                                                    (g) and (g)(1)(iii) as paragraphs (b)(2)(ii),              (v) If packed, the transferring handler             § 989.28   Term of office.
                                                    and (f)(1)(ii), respectively; and                       shall certify that such handler is                       (a) The term of office of all
                                                    ■ c. Revise paragraphs (a), (b)(2)(i),                  transferring only acquired raisins that                representatives serving on the
                                                    newly redesignated paragraph (b)(2)(ii),                meet all applicable marketing order                    Committee shall be for two years and
                                                    (c)(1), (d)(1), (d)(1)(v), and newly                    requirements, including reporting,                     shall end on April 30 of even numbered
                                                    redesignated paragraph (f).                             incoming inspection, and assessments.                  calendar years; Provided, That each
                                                       The revisions read as follows:                                                                              such member and alternate member
                                                                                                            *       *    *     *     *
                                                    § 989.173   Reports.                                       (f) * * *                                           shall continue to serve until their
                                                                                                               (1) * * *                                           successor is selected and has qualified.
                                                       (a) Inventory reports. Each handler                                                                           (b) Representatives may serve up to
                                                    shall submit to the Committee as of the                    (i) The quantity of raisins, segregated             four consecutive, two-year terms of
                                                    close of business on July 31 of each crop               as to locations where they are stored                  office. In no event shall any
                                                    year, and not later than the following                  and whether they are natural condition                 representative serve more than eight
                                                    August 6, an inventory report which                     or packed;                                             consecutive years on the Committee. For
                                                    shall show, with respect to each varietal                  (ii) * * *                                          purposes of determining when a
                                                    type of raisins held by such handler, the                  (2) * * *                                           representative has served four
                                                    quantity of off-grade raisins segregated                   (i) The total net weight of the standard            consecutive terms, the accrual of terms
                                                    as to those for reconditioning and those                raisins acquired during the reporting                  shall begin following any period of at
                                                    for disposition as such. Provided, That,                period; and                                            least twelve consecutive months out of
                                                    for the Other Seedless varietal type,                   *       *    *     *     *                             office. This limitation on tenure shall
                                                    handlers shall report the information                      (3) Disposition report of organically-              not include service on the Committee
                                                    required in this paragraph separately for               produced raisins. No later than the                    prior to implementation of this
                                                    the different types of Other Seedless                   seventh day of each month, handlers                    amendment.
                                                    raisins. Upon request by the Committee,                 who are not processors shall submit to
                                                    each handler shall file at other times,                 the Committee, on an appropriate form                  Proposal Number 8
                                                    and as of other dates, any of the said                  provided by the Committee, a report                       Make other such changes as may be
                                                    information which may reasonably be                     showing the aggregate quantity of                      necessary to the order to conform with
                                                    necessary and which the Committee                       packed raisins and standard natural                    any amendment thereto that may result
                                                    shall specify in its request.                           condition raisins which were shipped or                from the hearing.
                                                       (b) * * *                                            otherwise disposed of by such handler                    Dated: April 14, 2016.
                                                       (2) * * *                                            during the preceding month (exclusive                  Elanor Starmer,
                                                       (i) The total net weight of the standard             of transfer within the State of California             Administrator, Agricultural Marketing
                                                    raisins acquired during the reporting                   between the plants of any such handler                 Service.
                                                    period; and                                             and from such handler to other                         [FR Doc. 2016–09144 Filed 4–21–16; 8:45 am]
                                                       (ii) The cumulative totals of such                   handlers). Such information shall                      BILLING CODE P
                                                    acquisitions from the beginning of the                  include:
                                                    then current crop year.                                 *       *    *     *     *
                                                    *       *    *     *    *                               ■ 25. In § 989.210:                                    DEPARTMENT OF TRANSPORTATION
                                                       (c) * * *                                            ■ a. Remove paragraphs (b), (c) and (e);
                                                       (1) Each month each handler who is                   ■ b. Redesignate paragraph (d) as (b),                 Federal Aviation Administration
                                                    not a processor shall furnish to the                    paragraph (f) as (c), and paragraph (g) as
                                                    Committee, on an appropriate form                       (d); and                                               14 CFR Part 39
                                                    provided by the Committee and so that                   ■ c. Revise newly redesignated
                                                    it is received by the Committee not later                                                                      [Docket No. FAA–2016–5306; Directorate
                                                                                                            paragraph (b).                                         Identifier 2015–SW–010–AD]
                                                    than the seventh day of the month, a                       The revisions read as follows:
                                                    report showing the aggregate quantity of                                                                       RIN 2120–AA64
                                                    each varietal type of packed raisins and                § 989.210 Handling of varietal types of
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                                                    standard natural condition raisins                      raisins acquired pursuant to a weight                  Airworthiness Directives; Airbus
                                                    which were shipped or otherwise                         dockage system.                                        Helicopters Deutschland GmbH
                                                    disposed of by such handler during the                  *      *     *     *     *                             Helicopters
                                                    preceding month (exclusive of transfers                   (b) Assessments. Assessments on any                  AGENCY: Federal Aviation
                                                    within the State of California between                  lot of raisins of the varietal types                   Administration (FAA), DOT.
                                                    plants of any such handler and from                     specified in paragraph (a) of this section
                                                                                                                                                                   ACTION: Notice of proposed rulemaking
                                                    such handler to other handlers):                        acquired by a handler pursuant to a
                                                                                                                                                                   (NPRM).
                                                    Provided, That, for the Other Seedless                  weight dockage system shall be


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Document Created: 2017-08-22 23:36:28
Document Modified: 2017-08-22 23:36:28
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
ActionNotice of hearing on proposed rulemaking.
DatesThe hearing dates are May 3 and 4, 2016, 9:00 a.m. to 5:00 p.m.; and continuing on May 5, 2016, at 9:00 a.m., if necessary, in Clovis, California.
ContactMelissa Schmaedick, Marketing Order and Agreement Division, Specialty Crops Program, AMS, USDA, Post Office Box 952, Moab, UT 84532; Telephone: (202) 557-4783, Fax: (435) 259- 1502, or Michelle Sharrow, 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: Melissa. [email protected] or [email protected]
FR Citation81 FR 23650 
CFR AssociatedRaisins; Marketing Agreements and Reporting and Recordkeeping Requirements

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