81_FR_40902 81 FR 40781 - Grapes Grown in a Designated Area of Southeastern California; Increased Assessment Rate

81 FR 40781 - Grapes Grown in a Designated Area of Southeastern California; Increased Assessment Rate

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 81, Issue 121 (June 23, 2016)

Page Range40781-40783
FR Document2016-14824

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

Federal Register, Volume 81 Issue 121 (Thursday, June 23, 2016)
[Federal Register Volume 81, Number 121 (Thursday, June 23, 2016)]
[Rules and Regulations]
[Pages 40781-40783]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-14824]



[[Page 40781]]

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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 925

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


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

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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

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

DATES: Effective June 24, 2016.

FOR FURTHER INFORMATION CONTACT: Kathie Notoro, Marketing Specialist, 
or Jeffrey Smutny, Regional Director, California Marketing Field 
Office, Marketing Order and Agreement Division, Specialty Crops 
Program, AMS, USDA; Telephone: (559) 487-5901, Fax: (559) 487-5906, or 
Email: [email protected] or [email protected].
    Small businesses may request information on complying with this 
regulation by contacting Antoinette Carter, Marketing Order and 
Agreement Division, Specialty Crops Program, AMS, USDA, 1400 
Independence Avenue SW., STOP 0237, Washington, DC 20250-0237; 
Telephone: (202) 720-2491, Fax: (202) 720-8938, or Email: 
[email protected].

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing Order 
No. 925, as amended (7 CFR part 925), regulating the handling of grapes 
grown in a designated area of southeastern California, hereinafter 
referred to as the ``order.'' The order is effective under the 
Agricultural Marketing Agreement Act of 1937, as amended (7 U.S.C. 601-
674), hereinafter referred to as the ``Act.''
    The Department of Agriculture (USDA) is issuing this rule in 
conformance with Executive Orders 12866, 13563, and 13175.
    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. Under the marketing order now in effect, grape handlers 
in a designated area of southeastern California are subject to 
assessments. Funds to administer the order are derived from such 
assessments. It is intended that the assessment rate as issued herein 
will be applicable to all assessable grapes beginning on January 1, 
2016, and continue until amended, suspended, or terminated.
    The Act provides that administrative proceedings must be exhausted 
before parties may file suit in court. Under section 608c(15)(A) of the 
Act, any handler subject to an order may file with USDA a petition 
stating that the order, any provision of the order, or any obligation 
imposed in connection with the order is not in accordance with law and 
request a modification of the order or to be exempted therefrom. Such 
handler is afforded the opportunity for a hearing on the petition. 
After the hearing, USDA would rule on the petition. The Act provides 
that the district court of the United States in any district in which 
the handler is an inhabitant, or has his or her principal place of 
business, has jurisdiction to review USDA's ruling on the petition, 
provided an action is filed not later than 20 days after the date of 
the entry of the ruling.
    This rule increases the assessment rate established for the 
Committee for the 2016 and subsequent fiscal periods from $0.0250 to 
$0.0300 per 18-pound lug of grapes handled.
    The grape marketing order provides authority for the Committee, 
with the approval of USDA, to formulate an annual budget of expenses 
and collect assessments from handlers to administer the program. The 
members of the Committee are producers and handlers of grapes grown in 
a designated area of southeastern California. They are familiar with 
the Committee's needs and with the costs of goods and services in their 
local area and are thus in a position to formulate an appropriate 
budget and assessment rate. The assessment rate is formulated and 
discussed in a public meeting. Thus, all directly affected persons have 
an opportunity to participate and provide input.
    For the 2015 and subsequent fiscal periods, the Committee 
recommended, and the USDA approved, an assessment rate that would 
continue in effect from fiscal period to fiscal period unless modified, 
suspended, or terminated by USDA based upon recommendation and 
information submitted by the Committee or other information available 
to USDA.
    The Committee met on November 12, 2015, and unanimously recommended 
2016 expenditures of $143,500, a contingency reserve fund of $6,500, 
and an assessment rate of $0.0300 per 18-pound lug of grapes handled. 
In comparison, last year's budgeted expenditures were $135,500. The 
Committee recommended a crop estimate of 5 million, 18-pound lugs, 
which is lower than the 5.8 million, 18-pound lugs handled last year. 
The Committee also recommended carrying over a financial reserve of 
$47,500, which would increase to $54,000, at the end of the fiscal 
period. The assessment rate of $0.0300 per 18-pound lug of grapes 
handled recommended by the Committee is $0.0050 higher than the $0.0250 
rate currently in effect. The higher assessment rate, applied to 
shipments of 5 million, 18-pound lugs, is expected to generate $150,000 
in revenue and be sufficient to cover anticipated expenses.
    The major expenditures recommended by the Committee for the 2016 
fiscal period include $28,500 for research, $20,080 for office 
expenses, $56,500 for management and compliance expenses, $25,000 for 
consultation services, and $6,500 for a contingency reserve. The 
$28,500 research project is a continuation of a vine study in progress 
by the University of California, Riverside.
    In comparison, major expenditures for the 2015 fiscal period 
included $15,500 for research, $17,000 for general office expenses, 
$62,750 for management and compliance expenses, $25,000 for 
consultation services, and $9,500 for a contingency reserve. Overall 
2016 expenditures include a decrease in management and compliance 
expenses, and increases in office and research expenses.
    The assessment rate recommended by the Committee was derived by 
evaluating several factors, including estimated shipments for the 2016 
season, proposed expenses, and the level of available financial 
reserves. The Committee determined that the $0.0300 assessment rate 
should generate $150,000 in revenue to cover the budgeted expenses of 
$143,500, and a contingency reserve fund of $6,500.
    Reserve funds by the end of 2016 are projected to be $54,000. The 
reserve would be well within the reserve amount authorized under the 
order. Section 925.41 of the order permits the Committee to maintain 
approximately one fiscal period's expenses in reserve.

[[Page 40782]]

    The assessment rate established in this rule will continue in 
effect indefinitely unless modified, suspended, or terminated by USDA 
based upon a recommendation and information submitted by the Committee 
or other available information.
    Although this assessment rate will be in effect for an indefinite 
period, the Committee will continue to meet prior to or during each 
fiscal period to recommend a budget of expenses and consider 
recommendations for modification of the assessment rate. The dates and 
times of Committee meetings are available from the Committee or USDA. 
Committee meetings are open to the public and interested persons may 
express their views at these meetings. USDA will evaluate the 
Committee's recommendations and other available information to 
determine whether modification of the assessment rate is needed. 
Further rulemaking will be undertaken as necessary. The Committee's 
2016 budget and those for subsequent fiscal periods will be reviewed 
and, as appropriate, approved by USDA.

Final Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS) 
has considered the economic impact of this rule on small entities. 
Accordingly, AMS has prepared this final regulatory flexibility 
analysis.
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened. Marketing orders issued 
pursuant to the Act, and the rules issued thereunder, are unique in 
that they are brought about through group action of essentially small 
entities acting on their own behalf.
    There are approximately 12 handlers of southeastern California 
grapes who are subject to regulation under the marketing order and 
about 38 grape producers in the production area. Small agricultural 
service firms are defined by the Small Business Administration as those 
having annual receipts of less than $7,500,000, and small agricultural 
producers are defined as those whose annual receipts are less than 
$750,000(13 CFR 121.201).
    Seven of the 12 handlers subject to regulation have annual grape 
sales of less than $7,500,000, according to USDA Market News Service 
and Committee data. In addition, information from the Committee and 
USDA's Market News indicates that at least nine of the 38 producers 
have annual receipts of less than $750,000. Based on the foregoing, it 
may be concluded that slightly more than half of the grape handlers and 
a minority of the grape producers could be classified as small 
entities.
    This rule increases the assessment rate established for the 
Committee and collected from handlers for the 2016 and subsequent 
fiscal periods from $0.0250 to $0.0300 per 18-pound lug of grapes. The 
Committee unanimously recommended 2016 expenditures of $143,500, a 
contingency reserve fund of $6,500, and an assessment rate of $0.0300 
per 18-pound lug of grapes handled. The assessment rate of $0.0300 is 
$0.0050 higher than the 2015 rate. The quantity of assessable grapes 
for the 2016 season is estimated at 5 million, 18-pound lugs. Thus, the 
$0.0300 rate should generate $150,000 in income. In addition, reserve 
funds at the end of the year are projected to be $54,000, which is well 
within the order's limitation of approximately one fiscal period's 
expenses.
    The major expenditures recommended by the Committee for the 2016 
fiscal period include $28,500 for research, $20,080 for general office 
expenses, $56,500 for management and compliance expenses, $25,000 for 
consultation services and $6,500 for the contingency reserve.
    In comparison, major expenditures for the 2015 fiscal period 
included $15,500 for research, $17,000 for general office expenses, 
$62,750 for management and compliance expenses, $25,000 for 
consultation services, and $9,500 for a contingency reserve. Overall 
2016 expenditures include a decrease in management and compliance 
expenses, and increases in general office expenses, and research 
expenses.
    Prior to arriving at this budget and assessment rate, a 
subcommittee met to discuss this matter for the purpose of making a 
recommendation to the Committee. The Committee considered alternative 
expenditures and assessment rates, to include not increasing the 
$0.0250 assessment rate. Based on a crop estimate of 5 million, 18-
pound lugs, the Committee ultimately determined that increasing the 
assessment rate to $0.0300 would generate sufficient funds to cover 
budgeted expenses. Reserve funds at the end of the 2016 fiscal period 
are projected to be $54,000. This amount is well within the amount 
authorized under the order.
    A review of historical crop and price information, as well as 
preliminary information pertaining to the upcoming fiscal period, 
indicates that the shipping point price for the 2015 season averaged 
about $22.75 per 18-pound lug of California desert grapes handled. If 
the 2016 price is similar to the 2015 price, estimated assessment 
revenue as a percentage of total estimated handler revenue will be 0.13 
percent for the 2016 season ($0.0300 divided by $22.75 per 18-pound 
lug).
    This action increases the assessment obligation imposed on 
handlers. While assessments impose some additional costs on handlers, 
the costs are minimal and uniform on all handlers. However, these costs 
are offset by the benefits derived from the operation of the marketing 
order. In addition, the Committee's meeting was widely publicized 
throughout the grape production area and all interested persons were 
invited to attend and participate in Committee deliberations on all 
issues. Like all Committee meetings, the November 12, 2015, meeting was 
a public meeting and all entities, both large and small, were able to 
express views on this issue.
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the order's information collection requirements have been 
previously approved by the Office of Management and Budget (OMB) and 
assigned OMB No. 0581-0189, Generic Fruit Crops. No changes in those 
requirements as a result of this action are necessary. Should any 
changes become necessary, they would be submitted to OMB for approval.
    This rule imposes no additional reporting or recordkeeping 
requirements on either small or large California grape handlers. As 
with all Federal marketing order programs, reports and forms are 
periodically reviewed to reduce information requirements and 
duplication by industry and public sector agencies. As noted in the 
initial regulatory flexibility analysis, USDA has not identified any 
relevant Federal rules that duplicate, overlap, or conflict with this 
final rule.
    AMS is committed to complying with the E-Government Act, to promote 
the use of the internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services, and for other purposes.
    A proposed rule concerning this action was published in the Federal 
Register on March 10, 2016 (81 FR 12605). Copies of the proposed rule 
were also provided to all grape handlers. Finally, the proposal was 
made available through the internet by USDA and the office of the 
Federal Register. A 15-day comment period

[[Page 40783]]

ending March 25, 2016, was provided for interested persons to respond 
to the proposal. No comments were received.
    A small business guide on complying with fruit, vegetable, and 
specialty crop marketing agreements and orders may be viewed at: http://www.ams.usda.gov/rules-regulations/moa/small-businesses. Any questions 
about the compliance guide should be sent to Antoinette Carter at the 
previously-mentioned address in the FOR FURTHER INFORMATION CONTACT 
section.
    After consideration of all relevant material presented, including 
the information and recommendation submitted by the Committee and other 
available information, it is hereby found that this rule, as herein set 
forth, will tend to effectuate the declared policy of the Act.
    Pursuant to 5 U.S.C. 553, it is also found and determined that good 
cause exists for not postponing the effective date of this rule until 
30 days after publication in the Federal Register because: (1) The 2016 
fiscal period began on January 1, 2016, and the marketing order 
requires that the rate of assessment for each fiscal period apply to 
all assessable grapes handled during such fiscal period; (2) the 
Committee needs to have sufficient funds to pay its expenses, which are 
incurred on a continuous basis; and (3) handlers are aware of this 
action, which was unanimously recommended by the Committee at a public 
meeting and is similar to other assessment rate actions issued in past 
years. Also, a 15-day comment period was provided for in the proposed 
rule and no comments were received.

List of Subjects in 7 CFR Part 925

    Grapes, Marketing agreements, Reporting and recordkeeping 
requirements.

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

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

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

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

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


Sec.  925.215  Assessment rate.

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

    Dated: June 17, 2016.
Elanor Starmer,
Administrator, Agricultural Marketing Service.
[FR Doc. 2016-14824 Filed 6-22-16; 8:45 am]
 BILLING CODE P



                                                                     Federal Register / Vol. 81, No. 121 / Thursday, June 23, 2016 / Rules and Regulations                                         40781

                                                  DEPARTMENT OF AGRICULTURE                               conformance with Executive Orders                      information submitted by the
                                                                                                          12866, 13563, and 13175.                               Committee or other information
                                                  Agricultural Marketing Service                             This rule has been reviewed under                   available to USDA.
                                                                                                          Executive Order 12988, Civil Justice                      The Committee met on November 12,
                                                  7 CFR Part 925                                          Reform. Under the marketing order now                  2015, and unanimously recommended
                                                  [Doc. No. AMS–SC–15–0077; SC16–925–1
                                                                                                          in effect, grape handlers in a designated              2016 expenditures of $143,500, a
                                                  FR]                                                     area of southeastern California are                    contingency reserve fund of $6,500, and
                                                                                                          subject to assessments. Funds to                       an assessment rate of $0.0300 per 18-
                                                  Grapes Grown in a Designated Area of                    administer the order are derived from                  pound lug of grapes handled. In
                                                  Southeastern California; Increased                      such assessments. It is intended that the              comparison, last year’s budgeted
                                                  Assessment Rate                                         assessment rate as issued herein will be               expenditures were $135,500. The
                                                                                                          applicable to all assessable grapes                    Committee recommended a crop
                                                  AGENCY:  Agricultural Marketing Service,                beginning on January 1, 2016, and
                                                  USDA.                                                                                                          estimate of 5 million, 18-pound lugs,
                                                                                                          continue until amended, suspended, or                  which is lower than the 5.8 million, 18-
                                                  ACTION: Final rule.                                     terminated.                                            pound lugs handled last year. The
                                                                                                             The Act provides that administrative                Committee also recommended carrying
                                                  SUMMARY:    This rule implements a
                                                                                                          proceedings must be exhausted before                   over a financial reserve of $47,500,
                                                  recommendation from the California
                                                                                                          parties may file suit in court. Under                  which would increase to $54,000, at the
                                                  Desert Grape Administrative Committee
                                                                                                          section 608c(15)(A) of the Act, any                    end of the fiscal period. The assessment
                                                  (Committee) for an increase of the
                                                                                                          handler subject to an order may file                   rate of $0.0300 per 18-pound lug of
                                                  assessment rate established for the 2016
                                                                                                          with USDA a petition stating that the                  grapes handled recommended by the
                                                  and subsequent fiscal periods from
                                                                                                          order, any provision of the order, or any              Committee is $0.0050 higher than the
                                                  $0.0250 to $0.0300 per 18-pound lug of
                                                                                                          obligation imposed in connection with                  $0.0250 rate currently in effect. The
                                                  grapes handled under the marketing
                                                                                                          the order is not in accordance with law                higher assessment rate, applied to
                                                  order (order). The Committee locally
                                                                                                          and request a modification of the order                shipments of 5 million, 18-pound lugs,
                                                  administers the order, and is comprised
                                                                                                          or to be exempted therefrom. Such                      is expected to generate $150,000 in
                                                  of producers and handlers of grapes
                                                                                                          handler is afforded the opportunity for                revenue and be sufficient to cover
                                                  grown and handled in a designated area
                                                                                                          a hearing on the petition. After the                   anticipated expenses.
                                                  of southeastern California. Assessments
                                                                                                          hearing, USDA would rule on the
                                                  upon grape handlers are used by the                                                                               The major expenditures
                                                                                                          petition. The Act provides that the
                                                  Committee to fund reasonable and                                                                               recommended by the Committee for the
                                                                                                          district court of the United States in any
                                                  necessary expenses of the program. The                                                                         2016 fiscal period include $28,500 for
                                                                                                          district in which the handler is an
                                                  fiscal period began on January 1 and                                                                           research, $20,080 for office expenses,
                                                                                                          inhabitant, or has his or her principal
                                                  ends December 31. The assessment rate                                                                          $56,500 for management and
                                                                                                          place of business, has jurisdiction to
                                                  will remain in effect indefinitely unless                                                                      compliance expenses, $25,000 for
                                                                                                          review USDA’s ruling on the petition,
                                                  modified, suspended, or terminated.                                                                            consultation services, and $6,500 for a
                                                                                                          provided an action is filed not later than
                                                  DATES: Effective June 24, 2016.                         20 days after the date of the entry of the             contingency reserve. The $28,500
                                                  FOR FURTHER INFORMATION CONTACT:                        ruling.                                                research project is a continuation of a
                                                  Kathie Notoro, Marketing Specialist, or                    This rule increases the assessment                  vine study in progress by the University
                                                  Jeffrey Smutny, Regional Director,                      rate established for the Committee for                 of California, Riverside.
                                                  California Marketing Field Office,                      the 2016 and subsequent fiscal periods                    In comparison, major expenditures for
                                                  Marketing Order and Agreement                           from $0.0250 to $0.0300 per 18-pound                   the 2015 fiscal period included $15,500
                                                  Division, Specialty Crops Program,                      lug of grapes handled.                                 for research, $17,000 for general office
                                                  AMS, USDA; Telephone: (559) 487–                           The grape marketing order provides                  expenses, $62,750 for management and
                                                  5901, Fax: (559) 487–5906, or Email:                    authority for the Committee, with the                  compliance expenses, $25,000 for
                                                  Kathie.Notoro@ams.usda.gov or                           approval of USDA, to formulate an                      consultation services, and $9,500 for a
                                                  Jeffrey.Smutny@ams.usda.gov.                            annual budget of expenses and collect                  contingency reserve. Overall 2016
                                                     Small businesses may request                         assessments from handlers to administer                expenditures include a decrease in
                                                  information on complying with this                      the program. The members of the                        management and compliance expenses,
                                                  regulation by contacting Antoinette                     Committee are producers and handlers                   and increases in office and research
                                                  Carter, Marketing Order and Agreement                   of grapes grown in a designated area of                expenses.
                                                  Division, Specialty Crops Program,                      southeastern California. They are                         The assessment rate recommended by
                                                  AMS, USDA, 1400 Independence                            familiar with the Committee’s needs and                the Committee was derived by
                                                  Avenue SW., STOP 0237, Washington,                      with the costs of goods and services in                evaluating several factors, including
                                                  DC 20250–0237; Telephone: (202) 720–                    their local area and are thus in a                     estimated shipments for the 2016
                                                  2491, Fax: (202) 720–8938, or Email:                    position to formulate an appropriate                   season, proposed expenses, and the
                                                  Antoinette.Carter@ams.usda.gov.                         budget and assessment rate. The                        level of available financial reserves. The
                                                  SUPPLEMENTARY INFORMATION: This rule                    assessment rate is formulated and                      Committee determined that the $0.0300
                                                  is issued under Marketing Order No.                     discussed in a public meeting. Thus, all               assessment rate should generate
                                                  925, as amended (7 CFR part 925),                       directly affected persons have an                      $150,000 in revenue to cover the
                                                  regulating the handling of grapes grown                 opportunity to participate and provide                 budgeted expenses of $143,500, and a
asabaliauskas on DSK3SPTVN1PROD with RULES




                                                  in a designated area of southeastern                    input.                                                 contingency reserve fund of $6,500.
                                                  California, hereinafter referred to as the                 For the 2015 and subsequent fiscal                     Reserve funds by the end of 2016 are
                                                  ‘‘order.’’ The order is effective under the             periods, the Committee recommended,                    projected to be $54,000. The reserve
                                                  Agricultural Marketing Agreement Act                    and the USDA approved, an assessment                   would be well within the reserve
                                                  of 1937, as amended (7 U.S.C. 601–674),                 rate that would continue in effect from                amount authorized under the order.
                                                  hereinafter referred to as the ‘‘Act.’’                 fiscal period to fiscal period unless                  Section 925.41 of the order permits the
                                                     The Department of Agriculture                        modified, suspended, or terminated by                  Committee to maintain approximately
                                                  (USDA) is issuing this rule in                          USDA based upon recommendation and                     one fiscal period’s expenses in reserve.


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                                                  40782              Federal Register / Vol. 81, No. 121 / Thursday, June 23, 2016 / Rules and Regulations

                                                    The assessment rate established in                    USDA’s Market News indicates that at                   fiscal period, indicates that the shipping
                                                  this rule will continue in effect                       least nine of the 38 producers have                    point price for the 2015 season averaged
                                                  indefinitely unless modified,                           annual receipts of less than $750,000.                 about $22.75 per 18-pound lug of
                                                  suspended, or terminated by USDA                        Based on the foregoing, it may be                      California desert grapes handled. If the
                                                  based upon a recommendation and                         concluded that slightly more than half                 2016 price is similar to the 2015 price,
                                                  information submitted by the                            of the grape handlers and a minority of                estimated assessment revenue as a
                                                  Committee or other available                            the grape producers could be classified                percentage of total estimated handler
                                                  information.                                            as small entities.                                     revenue will be 0.13 percent for the
                                                    Although this assessment rate will be                    This rule increases the assessment                  2016 season ($0.0300 divided by $22.75
                                                  in effect for an indefinite period, the                 rate established for the Committee and                 per 18-pound lug).
                                                  Committee will continue to meet prior                   collected from handlers for the 2016 and                  This action increases the assessment
                                                  to or during each fiscal period to                      subsequent fiscal periods from $0.0250                 obligation imposed on handlers. While
                                                  recommend a budget of expenses and                      to $0.0300 per 18-pound lug of grapes.                 assessments impose some additional
                                                  consider recommendations for                            The Committee unanimously                              costs on handlers, the costs are minimal
                                                  modification of the assessment rate. The                recommended 2016 expenditures of                       and uniform on all handlers. However,
                                                  dates and times of Committee meetings                   $143,500, a contingency reserve fund of                these costs are offset by the benefits
                                                  are available from the Committee or                     $6,500, and an assessment rate of                      derived from the operation of the
                                                  USDA. Committee meetings are open to                    $0.0300 per 18-pound lug of grapes                     marketing order. In addition, the
                                                  the public and interested persons may                   handled. The assessment rate of $0.0300                Committee’s meeting was widely
                                                  express their views at these meetings.                  is $0.0050 higher than the 2015 rate.                  publicized throughout the grape
                                                  USDA will evaluate the Committee’s                      The quantity of assessable grapes for the              production area and all interested
                                                  recommendations and other available                     2016 season is estimated at 5 million,                 persons were invited to attend and
                                                  information to determine whether                        18-pound lugs. Thus, the $0.0300 rate                  participate in Committee deliberations
                                                  modification of the assessment rate is                  should generate $150,000 in income. In                 on all issues. Like all Committee
                                                  needed. Further rulemaking will be                      addition, reserve funds at the end of the              meetings, the November 12, 2015,
                                                  undertaken as necessary. The                            year are projected to be $54,000, which                meeting was a public meeting and all
                                                  Committee’s 2016 budget and those for                   is well within the order’s limitation of               entities, both large and small, were able
                                                  subsequent fiscal periods will be                       approximately one fiscal period’s                      to express views on this issue.
                                                  reviewed and, as appropriate, approved                  expenses.                                                 In accordance with the Paperwork
                                                  by USDA.                                                   The major expenditures                              Reduction Act of 1995 (44 U.S.C.
                                                                                                          recommended by the Committee for the                   Chapter 35), the order’s information
                                                  Final Regulatory Flexibility Analysis                   2016 fiscal period include $28,500 for                 collection requirements have been
                                                     Pursuant to requirements set forth in                research, $20,080 for general office                   previously approved by the Office of
                                                  the Regulatory Flexibility Act (RFA) (5                 expenses, $56,500 for management and                   Management and Budget (OMB) and
                                                  U.S.C. 601–612), the Agricultural                       compliance expenses, $25,000 for                       assigned OMB No. 0581–0189, Generic
                                                  Marketing Service (AMS) has                             consultation services and $6,500 for the               Fruit Crops. No changes in those
                                                  considered the economic impact of this                  contingency reserve.                                   requirements as a result of this action
                                                  rule on small entities. Accordingly,                       In comparison, major expenditures for               are necessary. Should any changes
                                                  AMS has prepared this final regulatory                  the 2015 fiscal period included $15,500                become necessary, they would be
                                                  flexibility analysis.                                   for research, $17,000 for general office               submitted to OMB for approval.
                                                     The purpose of the RFA is to fit                     expenses, $62,750 for management and                      This rule imposes no additional
                                                  regulatory actions to the scale of                      compliance expenses, $25,000 for                       reporting or recordkeeping requirements
                                                  businesses subject to such actions in                   consultation services, and $9,500 for a                on either small or large California grape
                                                  order that small businesses will not be                 contingency reserve. Overall 2016                      handlers. As with all Federal marketing
                                                  unduly or disproportionately burdened.                  expenditures include a decrease in                     order programs, reports and forms are
                                                  Marketing orders issued pursuant to the                 management and compliance expenses,                    periodically reviewed to reduce
                                                  Act, and the rules issued thereunder, are               and increases in general office expenses,              information requirements and
                                                  unique in that they are brought about                   and research expenses.                                 duplication by industry and public
                                                  through group action of essentially                        Prior to arriving at this budget and                sector agencies. As noted in the initial
                                                  small entities acting on their own                      assessment rate, a subcommittee met to                 regulatory flexibility analysis, USDA
                                                  behalf.                                                 discuss this matter for the purpose of                 has not identified any relevant Federal
                                                     There are approximately 12 handlers                  making a recommendation to the                         rules that duplicate, overlap, or conflict
                                                  of southeastern California grapes who                   Committee. The Committee considered                    with this final rule.
                                                  are subject to regulation under the                     alternative expenditures and assessment                   AMS is committed to complying with
                                                  marketing order and about 38 grape                      rates, to include not increasing the                   the E-Government Act, to promote the
                                                  producers in the production area. Small                 $0.0250 assessment rate. Based on a                    use of the internet and other
                                                  agricultural service firms are defined by               crop estimate of 5 million, 18-pound                   information technologies to provide
                                                  the Small Business Administration as                    lugs, the Committee ultimately                         increased opportunities for citizen
                                                  those having annual receipts of less than               determined that increasing the                         access to Government information and
                                                  $7,500,000, and small agricultural                      assessment rate to $0.0300 would                       services, and for other purposes.
                                                  producers are defined as those whose                    generate sufficient funds to cover                        A proposed rule concerning this
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                                                  annual receipts are less than                           budgeted expenses. Reserve funds at the                action was published in the Federal
                                                  $750,000(13 CFR 121.201).                               end of the 2016 fiscal period are                      Register on March 10, 2016 (81 FR
                                                     Seven of the 12 handlers subject to                  projected to be $54,000. This amount is                12605). Copies of the proposed rule
                                                  regulation have annual grape sales of                   well within the amount authorized                      were also provided to all grape
                                                  less than $7,500,000, according to                      under the order.                                       handlers. Finally, the proposal was
                                                  USDA Market News Service and                               A review of historical crop and price               made available through the internet by
                                                  Committee data. In addition,                            information, as well as preliminary                    USDA and the office of the Federal
                                                  information from the Committee and                      information pertaining to the upcoming                 Register. A 15-day comment period


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                                                                     Federal Register / Vol. 81, No. 121 / Thursday, June 23, 2016 / Rules and Regulations                                           40783

                                                  ending March 25, 2016, was provided                       Dated: June 17, 2016.                                Supplement No. 7 to part 748 of the
                                                  for interested persons to respond to the                Elanor Starmer,                                        EAR. Under the terms described in that
                                                  proposal. No comments were received.                    Administrator, Agricultural Marketing                  supplement, VEUs may obtain eligible
                                                     A small business guide on complying                  Service.                                               items without an export license from
                                                  with fruit, vegetable, and specialty crop               [FR Doc. 2016–14824 Filed 6–22–16; 8:45 am]            BIS, in conformity with section 748.15
                                                  marketing agreements and orders may                     BILLING CODE P                                         of the EAR. Eligible items vary between
                                                  be viewed at: http://www.ams.usda.gov/                                                                         VEUs and may include commodities,
                                                  rules-regulations/moa/small-businesses.                                                                        software, and technology, except those
                                                  Any questions about the compliance                      DEPARTMENT OF COMMERCE                                 controlled for missile technology or
                                                  guide should be sent to Antoinette                                                                             crime control reasons on the Commerce
                                                  Carter at the previously-mentioned                      Bureau of Industry and Security                        Control List (CCL) (part 774 of the EAR).
                                                  address in the FOR FURTHER INFORMATION
                                                  CONTACT section.
                                                                                                                                                                    VEUs are reviewed and approved by
                                                                                                          15 CFR Part 748
                                                     After consideration of all relevant                                                                         the U.S. Government in accordance with
                                                                                                          [Docket No. 160303186–6186–01]                         the provisions of section 748.15 and
                                                  material presented, including the
                                                  information and recommendation                          RIN 0694–AG91                                          Supplement Nos. 8 and 9 to part 748 of
                                                  submitted by the Committee and other                                                                           the EAR. The End-User Review
                                                  available information, it is hereby found               Amendments to Existing Validated                       Committee (ERC), composed of
                                                  that this rule, as herein set forth, will               End-User Authorization in the People’s                 representatives from the Departments of
                                                  tend to effectuate the declared policy of               Republic of China: Advanced Micro                      State, Defense, Energy, Commerce, and
                                                  the Act.                                                Devices, Inc.                                          other agencies as appropriate, is
                                                     Pursuant to 5 U.S.C. 553, it is also                 AGENCY:  Bureau of Industry and                        responsible for administering the VEU
                                                  found and determined that good cause                    Security, Commerce.                                    program. BIS amended the EAR in a
                                                  exists for not postponing the effective                                                                        final rule published on June 19, 2007
                                                                                                          ACTION: Final rule.
                                                  date of this rule until 30 days after                                                                          (72 FR 33646), to create Authorization
                                                  publication in the Federal Register                     SUMMARY:    In this rule, the Bureau of                VEU.
                                                  because: (1) The 2016 fiscal period                     Industry and Security (BIS) amends the
                                                                                                                                                                 Amendments to Existing VEU
                                                  began on January 1, 2016, and the                       Export Administration Regulations
                                                                                                          (EAR) to revise the existing Validated                 Authorization for Advanced Micro
                                                  marketing order requires that the rate of
                                                  assessment for each fiscal period apply                 End-User (VEU) list for the People’s                   Devices, Inc. (AMD) in the People’s
                                                  to all assessable grapes handled during                 Republic of China by updating the list                 Republic of China
                                                  such fiscal period; (2) the Committee                   of eligible items and destinations                     Revision to the List of ‘‘Eligible
                                                  needs to have sufficient funds to pay its               (facilities) for VEU Advanced Micro                    Destinations’’ and ‘‘Eligible Items’’ for
                                                  expenses, which are incurred on a                       Devices, Inc. (AMD). Specifically, BIS                 AMD
                                                  continuous basis; and (3) handlers are                  amends Supplement No. 7 to part 748
                                                  aware of this action, which was                         of the EAR to remove an existing                          In this final rule, BIS amends
                                                  unanimously recommended by the                          ‘‘eligible destination’’ (facility); add a             Supplement No. 7 to part 748 to revise
                                                  Committee at a public meeting and is                    building to an existing address at one of              AMD’s VEU authorization. Specifically,
                                                  similar to other assessment rate actions                AMD’s already approved facilities to                   in this rule BIS removes one of AMD’s
                                                  issued in past years. Also, a 15-day                    which eligible items may be exported,                  existing eligible destinations (facilities).
                                                  comment period was provided for in the                  reexported or transferred (in-country);                Also, in this rule, BIS adds a building
                                                  proposed rule and no comments were                      and reflect the recent removal of an                   to an existing address at one of AMD’s
                                                  received.                                               existing ‘‘eligible item’’ from the                    facilities already approved under
                                                                                                          Commerce Control List (CCL).                           Authorization VEU, to which the
                                                  List of Subjects in 7 CFR Part 925
                                                                                                          DATES: This rule is effective June 23,                 company’s eligible items may be
                                                    Grapes, Marketing agreements,                         2016.                                                  exported, reexported or transferred (in-
                                                  Reporting and recordkeeping                                                                                    country) in the People’s Republic of
                                                                                                          FOR FURTHER INFORMATION CONTACT:
                                                  requirements.                                                                                                  China (PRC) under the authorization.
                                                                                                          Chair, End-User Review Committee,
                                                    For the reasons set forth in the                      Office of the Assistant Secretary, Export              Finally, in this rule, BIS removes Export
                                                  preamble, 7 CFR part 925 is amended as                  Administration, Bureau of Industry and                 Control Classification Number (ECCN)
                                                  follows:                                                Security, U.S. Department of Commerce,                 4D002 from the list of AMD’s eligible
                                                                                                          Phone: 202–482–5991; Email: ERC@                       items to reflect the removal of that item
                                                  PART 925—GRAPES GROWN IN A
                                                                                                          bis.doc.gov.                                           from the CCL by 80 FR 29432 (May 21,
                                                  DESIGNATED AREA OF
                                                                                                          SUPPLEMENTARY INFORMATION:                             2015). The amendments to the eligible
                                                  SOUTHEASTERN CALIFORNIA
                                                                                                                                                                 destinations (facilities) are in response
                                                                                                          Background                                             to a request from AMD, while the
                                                  ■ 1. The authority citation for 7 CFR
                                                  part 925 continues to read as follows:                  Authorization Validated End-User                       amendment to the eligible items list
                                                                                                                                                                 reflects the recent removal of that ECCN
                                                      Authority: 7 U.S.C. 601–674.                           Validated End-Users (VEUs) are
                                                                                                                                                                 from the CCL. All amendments were
                                                  ■ 2. Section 925.215 is revised to read                 designated entities located in eligible
                                                                                                                                                                 approved by the ERC. The revisions are
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                                                  as follows:                                             destinations to which eligible items may
                                                                                                          be exported, reexported, or transferred                as follows:
                                                  § 925.215    Assessment rate.                           (in-country) under a general                           Removal of AMD’s Eligible Destination
                                                    On and after January 1, 2016, an                      authorization instead of a license. The                (Facility)
                                                  assessment rate of $0.0300 per 18-pound                 names of the VEUs, as well as the dates
                                                  lug is established for grapes grown in a                they were so designated, and their                       AMD Technologies (China) Co., Ltd.,
                                                  designated area of southeastern                         respective eligible destinations                       No. 88, Su Tong Road, Suzhou, China
                                                  California.                                             (facilities) and items are identified in               215021.


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Document Created: 2018-02-08 07:41:17
Document Modified: 2018-02-08 07:41:17
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesEffective June 24, 2016.
ContactKathie Notoro, Marketing Specialist, or Jeffrey Smutny, Regional Director, California Marketing Field Office, Marketing Order and Agreement Division, Specialty Crops Program, AMS, USDA; Telephone: (559) 487-5901, Fax: (559) 487-5906, or Email: [email protected] or [email protected]
FR Citation81 FR 40781 
CFR AssociatedGrapes; Marketing Agreements and Reporting and Recordkeeping Requirements

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