81_FR_44893 81 FR 44761 - Raisins Produced From Grapes Grown in California; Order Amending Marketing Order 989

81 FR 44761 - Raisins Produced From Grapes Grown in California; Order Amending Marketing Order 989

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 81, Issue 132 (July 11, 2016)

Page Range44761-44764
FR Document2016-16335

This final rule amends Marketing Order No. 989 (order), which regulates the handling of raisins produced from grapes grown in California. The amendments approved by producers in the referendum were proposed by the Raisin Administrative Committee (Committee) which is comprised of producers and handlers of raisins and responsible for the local administration of the order. The changes will allow the Committee to borrow from a commercial lending institution and authorize the establishment of a monetary reserve equal to up to one year's budgeted expenses. Allowing the Committee to utilize these customary business practices will help improve administration of the order.

Federal Register, Volume 81 Issue 132 (Monday, July 11, 2016)
[Federal Register Volume 81, Number 132 (Monday, July 11, 2016)]
[Rules and Regulations]
[Pages 44761-44764]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-16335]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 989

[Doc. No. AMS-FV-14-0069; FV-14-989-2 FR]


Raisins Produced From Grapes Grown in California; Order Amending 
Marketing Order 989

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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

SUMMARY: This final rule amends Marketing Order No. 989 (order), which 
regulates the handling of raisins produced from grapes grown in 
California. The amendments approved by producers in the referendum were 
proposed by the Raisin Administrative Committee (Committee) which is 
comprised of producers and handlers of raisins and responsible for the 
local administration of the order. The changes will allow the Committee 
to borrow from a commercial lending institution and authorize the 
establishment of a monetary reserve equal to up to one year's budgeted 
expenses. Allowing the Committee to utilize these customary business 
practices will help improve administration of the order.

DATES: This rule is effective July 12, 2016.

FOR FURTHER INFORMATION CONTACT: Geronimo Quinones, Marketing 
Specialist, or Michelle P. Sharrow, Rulemaking Branch Chief, 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 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 
Agreement and Order No. 989, both as amended (7 CFR part 989), 
regulating the handling of raisins produced from grapes grown in 
California, hereinafter referred to as the ``order.'' The order is 
effective under the Agricultural Marketing Agreement Act of 1937, as 
amended (7 U.S.C. 601-

[[Page 44762]]

674), hereinafter referred to as the ``Act.'' The applicable rules of 
practice and procedure governing the formulation of marketing 
agreements and orders (7 CFR part 900) authorize amendment of the order 
through this informal rulemaking action.
    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. This rule is not intended to have retroactive effect. 
This rule shall not be deemed to preclude, preempt, or supersede any 
State program covering raisins produced in California.
    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. 
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.
    Section 1504 of the Food, Conservation, and Energy Act of 2008 
(2008 Farm Bill) (Pub. L. 110-246) amended section 18c(17) of the Act, 
which in turn required the addition of supplemental rules of practice 
to 7 CFR part 900 (73 FR 49307; August 21, 2008). The amendment of 
section 18c(17) of the Act and additional supplemental rules of 
practice authorize the use of informal rulemaking (5 U.S.C. 553) to 
amend Federal fruit, vegetable, and nut marketing agreements and 
orders. USDA may use informal rulemaking to amend marketing orders 
based on the nature and complexity of the proposed amendments, the 
potential regulatory and economic impacts on affected entities, and any 
other relevant matters.
    AMS considered the nature and complexity of the proposed 
amendments, the potential regulatory and economic impacts on affected 
entities, and other relevant matters, and determined that amending the 
order as proposed by the Committee could appropriately be accomplished 
through informal rulemaking.
    The proposed amendments were unanimously recommended by the 
Committee following deliberations at a public meeting held on October 
2, 2014.
    A proposed rule soliciting comments on the proposed amendments was 
issued on October 13, 2015, and published in the Federal Register on 
October 16, 2015 (80 FR 62506). Two comments were received. One comment 
was in support of the amendments. The second comment asked questions 
about one of the proposals, which were addressed in the proposed rule 
and referendum order which was issued on February 22, 2016, and 
published in the Federal Register on March 7, 2016 (81 FR 11678). This 
document also directed that a referendum among raisin producers be 
conducted during the period of March 9, 2016 through March 23, 2016, to 
determine whether they favored the proposed amendments to the order. To 
become effective, the amendments had to be approved by at least two-
thirds of the producers voting, or two-thirds of the volume of raisins 
represented by voters in the referendum. Both of the amendments were 
passed by 94 percent of the producers voting and by 93 percent of the 
volume represented, which exceeds the required two-thirds approval of 
the producers voting in the referendum or two-thirds of the volume 
represented in the referendum.
    The amendments included in this final rule will authorize the 
Committee to: (1) Borrow from a commercial lending institution; and (2) 
Establish a monetary reserve fund equal to up to one year's fiscal 
expenses.

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 action 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 
business subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened. Marketing orders issued 
pursuant to the Act, and rules issued thereunder, are unique in that 
they are brought about through group action of essentially small 
entities acting on their own behalf.
    There are approximately 3,000 producers of California raisins and 
approximately 28 handlers subject to regulation under the marketing 
order. The Small Business Administration defines small agricultural 
producers as those having annual receipts of less than $750,000 and 
defines small agricultural service firms as those whose annual receipts 
are less than $7,500,000 (13 CFR 121.201). Based upon information 
provided by the Committee, it may be concluded that a majority of 
producers and approximately 18 California raisin handlers may be 
classified as small entities.
    The amendments will authorize the Committee to borrow from 
commercial lending institutions and establish a monetary reserve fund 
equal to one year's budgeted expenses. This will help to ensure proper 
management and funding of the program.
    The Committee's proposed amendments were unanimously recommended at 
a public meeting on October 2, 2014.
    The Committee reviewed and identified a yearly budget that would be 
necessary to continue program operations in the absence of a reserve 
pool. Based on this budget, the Committee believes a monetary reserve 
of approximately $2 million will be sufficient to continue operations. 
The anticipated $2 million to be accumulated in a monetary reserve will 
not be accrued in one crop year. It will be spread over several years, 
depending on expenses, assessment revenue, and excess handler 
assessments accrued in each crop year. For example: If excess annual 
handler assessments amount to $400,000, it would take five years to 
accrue $2 million. Currently, the average excess handler assessments 
paid yearly over the last six years has been $861,622. During the time 
in which the monetary reserve fund would be accumulated, the Committee 
will seek funding from a commercial lending institution.
    While this action will result in a temporary increase in handler 
costs, these costs will be uniform on all handlers and proportional to 
the size of their businesses. However, these costs are expected to be 
offset by the benefits derived from operation of the order. 
Additionally, these costs will help to ensure that the Committee has 
sufficient funds to meet its financial obligations. Such stability is 
expected to allow the Committee to conduct programs that will benefit 
all entities, regardless of size. California raisin producers should 
see an improved business environment and a more sustainable business 
model because of the improved business efficiency.
    Alternatives were considered to these proposals, including making 
no changes at this time. However, the Committee believes it is 
beneficial to have the

[[Page 44763]]

means and funds necessary to effectively administer the program.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the order's information collection requirements have been 
previously approved by the Office of Management and Budget (OMB) and 
assigned OMB No. 0581-0178, ``Vegetable and Specialty Crops.'' No 
changes in those requirements as a result of this action are necessary. 
Should any changes become necessary, they would be submitted to OMB for 
approval.
    These amendments will not impose any additional reporting or 
recordkeeping requirements on either small or large California raisin 
handlers.
    As with all Federal marketing order programs, reports and forms are 
periodically reviewed to reduce information requirements and 
duplication by industry and public sector agencies. In addition, USDA 
has not identified any relevant Federal rules that duplicate, overlap, 
or conflict with this 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.
    The Committee's meeting was widely publicized throughout the 
California raisin production area. All interested persons were invited 
to attend the meeting and encouraged to participate in Committee 
deliberations on all issues. Like all Committee meetings, the October 
2, 2014, meeting was public, and all entities, both large and small, 
were encouraged to express their views on these proposals.
    A proposed rule concerning this action was published in the Federal 
Register on October 16, 2015 (80 FR 62506). Copies of the rule were 
mailed or sent via facsimile to all committee members and raisin 
handlers. Finally, the rule was made available through the Internet by 
USDA and the Office of the Federal Register. A 60-day comment period 
ending December 15, 2015, was provided to allow interested persons to 
respond to the proposals. Two comments were received. One comment was 
in support of the proposal. The second comment stated that the term 
``commercial lending institution'' is vague and asked for the name of 
the institution and clarification regarding what constitutes a 
shortage. The comment also stated that the lending arrangement should 
be discussed openly. To clarify, as used in the proposal, a shortage 
would exist when the Committee's cash flow needs exceed the amount of 
cash available from handler assessments. Regarding open discussion, the 
Committee establishes a budget and assessment rate annually in meetings 
that are open to the public. During these meetings, the Committee would 
discuss any shortages and any available commercial lending 
opportunities. No changes were made to the proposed amendments as a 
result of the comments received.
    A proposed rule and referendum order was then issued on February 
22, 2016, and published in the Federal Register on March 7, 2016 (81 FR 
11678). This document directed that a referendum among raisin producers 
be conducted during the period of March 9, 2016, through March 23, 
2016, to determine whether they favored the proposed amendments to the 
order. To become effective, the amendments had to be approved by at 
least two-thirds of the producers voting, or two-thirds of the volume 
of raisins represented by voters in the referendum. Both of the 
amendments were passed by 94 percent of the producers voting and by 93 
percent of the volume represented, which exceeds the required two-
thirds approval of the producers voting in the referendum or two-thirds 
of the volume represented in the referendum.
    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/MarketingOrdersSmallBusinessGuide. Any questions 
about the compliance guide should be sent to Antoinette Carter at the 
previously mentioned address in the FOR FURTHER INFORMATION CONTACT 
section.

Order Amending the Order Regulating the Handling of Raisins Produced 
From Grapes Grown in California

(a) Findings and Determinations Upon the Basis of the Rulemaking Record

    The findings hereinafter set forth are supplementary to the 
findings and determinations which were previously made in connection 
with the issuance of the marketing order; and all said previous 
findings and determinations are hereby ratified and affirmed, except 
insofar as such findings and determinations may be in conflict with the 
findings and determinations set forth herein.
    1. The marketing order, as amended, and all of the terms and 
conditions thereof, will tend to effectuate the declared policy of the 
Act;
    2. The marketing order, as amended, and as hereby further amended, 
regulates the handling of raisins produced from grapes grown in 
California in the same manner as, and is applicable only to, persons in 
the respective classes of commercial and industrial activity specified 
in the marketing order;
    3. The marketing order, as amended, is limited in application to 
the smallest regional production area which is practicable, consistent 
with carrying out the declared policy of the Act, and the issuance of 
several orders applicable to subdivisions of the production area would 
not effectively carry out the declared policy of the Act;
    4. The marketing order, as amended, prescribes, insofar as 
practicable, such different terms applicable to different parts of the 
production area as are necessary to give due recognition to the 
differences in the production and marketing of raisins produced or 
packed in the production area; and
    5. All handling of raisins produced in the production area as 
defined in the marketing order is in the current of interstate or 
foreign commerce or directly burdens, obstructs, or affects such 
commerce.

(b) Additional Findings

    It is necessary and in the public interest to make these amendments 
effective not later than one day after publication in the Federal 
Register. A later effective date would unnecessarily delay 
implementation of the amendments. These amendments should be in place 
as soon as possible so the Committee may begin the process of 
identifying a commercial lending institution if cash flow shortages are 
identified during their annual budget meeting which will occur prior to 
the start of their next crop year (August 1, 2016). In view of the 
foregoing, it is hereby found and determined that good cause exists for 
making these amendments effective one day after publication in the 
Federal Register and that it would be contrary to the public interest 
to delay the effective date for 30 days after publication in the 
Federal Register. (Sec. 553(d), Administrative Procedure Act; 5 U.S.C. 
551-559.)

(c) Determinations

    It is hereby determined that:
    1. Handlers (excluding cooperative associations of producers who 
are not engaged in processing, distributing, or shipping of raisins 
covered under the order) who during the period August 1, 2014, through 
July 31, 2015, handled not less than 50 percent of the volume of such 
raisins covered by said order, as

[[Page 44764]]

hereby amended, have signed an amended marketing agreement; and
    2. The issuance of this amendatory order, amending the aforesaid 
order, is favored or approved by at least two-thirds of the producers 
who participated in a referendum on the question of approval and who, 
during the period of August 31, 2014, through July 31, 2015, have been 
engaged within the production area in the production of such raisins, 
such producers having also produced for market at least two-thirds of 
the volume of such commodity represented in the referendum.
    3. The issuance of this amendatory order together with a signed 
marketing agreement advances the interests of growers of raisins in the 
production area pursuant to the declared policy of the Act.

Order Relative to Handling

    It is therefore ordered, That on and after the effective date 
hereof, all handling of raisins produced from grapes grown in 
California shall be in conformity to, and in compliance with, the terms 
and conditions of the said order as hereby amended as follows:
    The provisions of the proposed marketing order amending the order 
contained in the proposed rule issued by the Associate Administrator on 
October 13, 2015, and published in the Federal Register on October 16, 
2015 (80 FR 62506), shall be and are the terms and provisions of this 
order amending the order and are set forth in full herein.

List of Subjects in 7 CFR Part 989

    Raisins, Marketing agreements, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 989 is 
amended as follows:

PART 989--RAISINS PRODUCED FROM GRAPES GROWN IN CALIFORNIA

0
1. The authority citation for 7 CFR part 989 continues to read as 
follows:

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

0
2. Revise paragraph (c) of Sec.  989.80 to read as follows:


Sec.  989.80  Assessments.

* * * * *
    (c) During any crop year or any portion of a crop year for which 
volume percentages are not effective for a varietal type, all standard 
raisins of that varietal type acquired by handlers during such period 
shall be free tonnage for purposes of levying assessments pursuant to 
this section. 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. In the event cash flow needs 
of the committee are above cash available generated by handler 
assessments, the committee may borrow from a commercial lending 
institution. 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
3. Revise paragraph (a) of Sec.  989.81 to read as follows:


Sec.  989.81  Accounting.

    (a) If, at the end of the crop year, the assessments collected are 
in excess of expenses incurred, such excess shall be accounted for in 
accordance with one of the following:
    (1) If such excess is not retained in a reserve, as provided in 
paragraph (a)(2) of this section, it shall be refunded proportionately 
to the persons from whom collected in accordance with Sec.  989.80; 
Provided, That any sum paid by a person in excess of his or her pro 
rata share of expenses during any crop year may be applied by the 
committee at the end of such crop year as credit for such person, 
toward the committee's administrative operations for the following crop 
year; Provided further, That the committee may credit the excess to any 
outstanding obligations due the committee from such person.
    (2) The committee may carry over such excess funds into subsequent 
crop years as a reserve; Provided, That funds already in the reserve do 
not exceed one crop year's budgeted expenses as averaged over the past 
six years. In the event that funds exceed one crop year's expenses, 
funds in excess of one crop year's budgeted expenses shall be 
distributed in accordance with paragraph (a)(1) of this section. Such 
funds may be used:
    (i) To defray essential administrative expenses (i.e., staff wages/
salaries and related benefits, office rent, utilities, postage, 
insurance, legal expenses, audit costs, consulting, Web site operation 
and maintenance, office supplies, repairs and maintenance, equipment 
leases, domestic staff travel and committee mileage reimbursement, 
international committee travel, international staff travel, bank 
charges, computer software and programming, costs of compliance 
activities, and other similar essential administrative expenses) 
exclusive of promotional expenses during any crop year, prior to the 
time assessment income is sufficient to cover such expenses;
    (ii) To cover deficits incurred during any period when assessment 
income is less than expenses;
    (iii) To defray expenses incurred during any period when any or all 
provisions of this part are suspended;
    (iv) To meet any other such expenses recommended by the committee 
and approved by the Secretary; and
    (v) To cover the necessary expenses of liquidation in the event of 
termination of this part. Upon such termination, any funds not required 
to defray the necessary expenses of liquidation shall be disposed of in 
such manner as the Secretary may determine to be appropriate; Provided, 
That to the extent practicable, such funds shall be returned pro rata 
to the persons from whom such funds were collected.
* * * * *

    Dated: July 5, 2016.
Elanor Starmer,
Administrator, Agricultural Marketing Service.
[FR Doc. 2016-16335 Filed 7-8-16; 8:45 am]
 BILLING CODE P



                                                               Federal Register / Vol. 81, No. 132 / Monday, July 11, 2016 / Rules and Regulations                                            44761

                                           the findings and determinations set                      commodity represented in the                           DEPARTMENT OF AGRICULTURE
                                           forth herein.                                            referendum.
                                              1. The marketing order, as amended,                     3. The issuance of this amendatory                   Agricultural Marketing Service
                                           and all of the terms and conditions                      order together with a signed marketing
                                           thereof, will tend to effectuate the                     agreement advances the interests of                    7 CFR Part 989
                                           declared policy of the Act;                              growers of table grapes in the                         [Doc. No. AMS–FV–14–0069; FV–14–989–2
                                              2. The marketing order, as amended,                   production area pursuant to the                        FR]
                                           and as hereby further amended,                           declared policy of the Act.
                                           regulates the handling of table grapes                                                                          Raisins Produced From Grapes Grown
                                           grown in a Designated Area of                            Order Relative to Handling                             in California; Order Amending
                                           Southeastern California in the same                         It is therefore ordered, That on and                Marketing Order 989
                                           manner as, and is applicable only to,                    after the effective date hereof, all
                                           persons in the respective classes of                                                                            AGENCY:  Agricultural Marketing Service,
                                                                                                    handling of table grapes grown in a                    USDA.
                                           commercial and industrial activity                       designated area of southeastern
                                           specified in the marketing order;                                                                               ACTION: Final rule.
                                                                                                    California shall be in conformity to, and
                                              3. The marketing order, as amended,                   in compliance with, the terms and                      SUMMARY:   This final rule amends
                                           is limited in application to the smallest                conditions of the said order as hereby                 Marketing Order No. 989 (order), which
                                           regional production area which is                        amended as follows:                                    regulates the handling of raisins
                                           practicable, consistent with carrying out                   The provisions of the proposed                      produced from grapes grown in
                                           the declared policy of the Act, and the                  marketing order amending the order                     California. The amendments approved
                                           issuance of several orders applicable to                 contained in the proposed rule issued                  by producers in the referendum were
                                           subdivisions of the production area                      by the Associate Administrator on June                 proposed by the Raisin Administrative
                                           would not effectively carry out the                      1, 2015, and published in the Federal                  Committee (Committee) which is
                                           declared policy of the Act;                              Register on June 5, 2015 (80 FR 32043),                comprised of producers and handlers of
                                              4. The marketing order, as amended,                   shall be and are the terms and                         raisins and responsible for the local
                                           prescribes, insofar as practicable, such                 provisions of this order amending the                  administration of the order. The changes
                                           different terms applicable to different                  order and are set forth in full herein.                will allow the Committee to borrow
                                           parts of the production area as are                                                                             from a commercial lending institution
                                           necessary to give due recognition to the                 List of Subjects in 7 CFR Part 925
                                                                                                                                                           and authorize the establishment of a
                                           differences in the production and                          Grapes, Marketing agreements,                        monetary reserve equal to up to one
                                           marketing of table grapes produced or                    Reporting and recordkeeping                            year’s budgeted expenses. Allowing the
                                           packed in the production area; and                       requirements.                                          Committee to utilize these customary
                                              5. All handling of table grapes                                                                              business practices will help improve
                                           produced in the production area as                         For the reasons set forth in the
                                                                                                    preamble, 7 CFR part 925 is amended as                 administration of the order.
                                           defined in the marketing order is in the
                                                                                                    follows:                                               DATES: This rule is effective July 12,
                                           current of interstate or foreign
                                           commerce or directly burdens,                                                                                   2016.
                                                                                                    PART 925—GRAPES GROWN IN A
                                           obstructs, or affects such commerce.                                                                            FOR FURTHER INFORMATION CONTACT:
                                                                                                    DESIGNATED AREA OF
                                              (b) Additional Findings.                                                                                     Geronimo Quinones, Marketing
                                                                                                    SOUTHEASTERN CALIFORNIA
                                              The effective date for the amendments                                                                        Specialist, or Michelle P. Sharrow,
                                           shall be 30 days after publication in the                                                                       Rulemaking Branch Chief, Marketing
                                                                                                    ■ 1. The authority citation for part 925
                                           Federal Register.                                                                                               Order and Agreement Division,
                                                                                                    continues to read as follows:
                                              (c) Determinations. It is hereby                                                                             Specialty Crops Program, AMS, USDA,
                                           determined that:                                              Authority: 7 U.S.C. 601–674.                      1400 Independence Avenue SW., Stop
                                              1. Handlers (excluding cooperative                    ■ 2. Revise the first sentence of § 925.21             0237, Washington, DC 20250–0237;
                                           associations of producers who are not                    to read as follows:                                    Telephone: (202) 720–2491, Fax: (202)
                                           engaged in processing, distributing, or                                                                         720–8938, or Email:
                                           shipping of table grapes covered under                   § 925.21    Term of office.                            Geronimo.Quinones@ams.usda.gov or
                                           the order) who during the period                            The term of office of the members and               Michelle.Sharrow@ams.usda.gov.
                                           January 1, 2015, through December 31,                    alternates shall be four fiscal periods.                  Small businesses may request
                                           2015, handled not less than 50 percent                   * * *                                                  information on complying with this
                                           of the volume of such table grapes                                                                              regulation by contacting Antoinette
                                                                                                    ■    3. Revise § 925.25 to read as follows:            Carter, Marketing Order and Agreement
                                           covered by said order, as hereby
                                           amended, have executed Marketing                         § 925.25    Qualification and acceptance.              Division, Specialty Crops Program,
                                           Agreements in support of Marketing                                                                              AMS, USDA, 1400 Independence
                                                                                                       Any person selected as a member or                  Avenue SW., STOP 0237, Washington,
                                           Order 925, as amended.                                   alternate member of the Committee
                                              2. The issuance of this amendatory                                                                           DC 20250–0237; Telephone: (202) 720–
                                                                                                    shall, prior to such selection, qualify by             2491, Fax: (202) 720–8938, or Email:
                                           order, amending the aforesaid order, is                  filing a qualifications questionnaire
                                           favored or approved by at least two-                                                                            Antoinette.Carter@ams.usda.gov.
                                                                                                    advising the Secretary that he or she
                                           thirds of the producers who participated                 agrees to serve in the position for which              SUPPLEMENTARY INFORMATION: This rule
                                           in a referendum on the question of                       nominated.                                             is issued under Marketing Agreement
                                           approval and who, during the period of                                                                          and Order No. 989, both as amended (7
ehiers on DSK5VPTVN1PROD with RULES




                                           January 1, 2015, through December 31,                      Dated: July 5, 2016.                                 CFR part 989), regulating the handling
                                           2015, have been engaged within the                       Elanor Starmer,                                        of raisins produced from grapes grown
                                           production area in the production of                     Administrator, Agricultural Marketing                  in California, hereinafter referred to as
                                           such table grapes, such producers                        Service.                                               the ‘‘order.’’ The order is effective under
                                           having also produced for market at least                 [FR Doc. 2016–16330 Filed 7–8–16; 8:45 am]             the Agricultural Marketing Agreement
                                           two-thirds of the volume of such                         BILLING CODE P                                         Act of 1937, as amended (7 U.S.C. 601–


                                      VerDate Sep<11>2014   13:54 Jul 08, 2016   Jkt 238001   PO 00000    Frm 00003   Fmt 4700   Sfmt 4700   E:\FR\FM\11JYR1.SGM   11JYR1


                                           44762               Federal Register / Vol. 81, No. 132 / Monday, July 11, 2016 / Rules and Regulations

                                           674), hereinafter referred to as the                        The proposed amendments were                       those having annual receipts of less than
                                           ‘‘Act.’’ The applicable rules of practice                unanimously recommended by the                        $750,000 and defines small agricultural
                                           and procedure governing the                              Committee following deliberations at a                service firms as those whose annual
                                           formulation of marketing agreements                      public meeting held on October 2, 2014.               receipts are less than $7,500,000 (13
                                           and orders (7 CFR part 900) authorize                       A proposed rule soliciting comments                CFR 121.201). Based upon information
                                           amendment of the order through this                      on the proposed amendments was                        provided by the Committee, it may be
                                           informal rulemaking action.                              issued on October 13, 2015, and                       concluded that a majority of producers
                                              The Department of Agriculture                         published in the Federal Register on                  and approximately 18 California raisin
                                           (USDA) is issuing this rule in                           October 16, 2015 (80 FR 62506). Two                   handlers may be classified as small
                                           conformance with Executive Orders                        comments were received. One comment                   entities.
                                           12866, 13563, and 13175.                                 was in support of the amendments. The                    The amendments will authorize the
                                              This rule has been reviewed under                     second comment asked questions about                  Committee to borrow from commercial
                                           Executive Order 12988, Civil Justice                     one of the proposals, which were                      lending institutions and establish a
                                           Reform. This rule is not intended to                     addressed in the proposed rule and                    monetary reserve fund equal to one
                                           have retroactive effect. This rule shall                 referendum order which was issued on                  year’s budgeted expenses. This will help
                                           not be deemed to preclude, preempt, or                   February 22, 2016, and published in the               to ensure proper management and
                                           supersede any State program covering                     Federal Register on March 7, 2016 (81                 funding of the program.
                                           raisins produced in California.                          FR 11678). This document also directed                   The Committee’s proposed
                                              The Act provides that administrative                  that a referendum among raisin                        amendments were unanimously
                                           proceedings must be exhausted before                     producers be conducted during the                     recommended at a public meeting on
                                           parties may file suit in court. Under                    period of March 9, 2016 through March                 October 2, 2014.
                                           section 608c(15)(A) of the Act, any                      23, 2016, to determine whether they                      The Committee reviewed and
                                           handler subject to an order may file                     favored the proposed amendments to
                                           with USDA a petition stating that the                                                                          identified a yearly budget that would be
                                                                                                    the order. To become effective, the                   necessary to continue program
                                           order, any provision of the order, or any                amendments had to be approved by at
                                           obligation imposed in connection with                                                                          operations in the absence of a reserve
                                                                                                    least two-thirds of the producers voting,             pool. Based on this budget, the
                                           the order is not in accordance with law                  or two-thirds of the volume of raisins
                                           and request a modification of the order                                                                        Committee believes a monetary reserve
                                                                                                    represented by voters in the referendum.
                                           or to be exempted therefrom. A handler                                                                         of approximately $2 million will be
                                                                                                    Both of the amendments were passed by
                                           is afforded the opportunity for a hearing                                                                      sufficient to continue operations. The
                                                                                                    94 percent of the producers voting and
                                           on the petition. After the hearing, USDA                                                                       anticipated $2 million to be
                                                                                                    by 93 percent of the volume
                                           would rule on the petition. The Act                                                                            accumulated in a monetary reserve will
                                                                                                    represented, which exceeds the required
                                           provides that the district court of the                                                                        not be accrued in one crop year. It will
                                                                                                    two-thirds approval of the producers
                                           United States in any district in which                                                                         be spread over several years, depending
                                                                                                    voting in the referendum or two-thirds
                                           the handler is an inhabitant, or has his                                                                       on expenses, assessment revenue, and
                                                                                                    of the volume represented in the
                                           or her principal place of business, has                                                                        excess handler assessments accrued in
                                                                                                    referendum.
                                           jurisdiction to review USDA’s ruling on                     The amendments included in this                    each crop year. For example: If excess
                                           the petition, provided an action is filed                final rule will authorize the Committee               annual handler assessments amount to
                                           not later than 20 days after the date of                 to: (1) Borrow from a commercial                      $400,000, it would take five years to
                                           the entry of the ruling.                                 lending institution; and (2) Establish a              accrue $2 million. Currently, the
                                              Section 1504 of the Food,                             monetary reserve fund equal to up to                  average excess handler assessments paid
                                           Conservation, and Energy Act of 2008                     one year’s fiscal expenses.                           yearly over the last six years has been
                                           (2008 Farm Bill) (Pub. L. 110–246)                                                                             $861,622. During the time in which the
                                           amended section 18c(17) of the Act,                      Final Regulatory Flexibility Analysis                 monetary reserve fund would be
                                           which in turn required the addition of                      Pursuant to requirements set forth in              accumulated, the Committee will seek
                                           supplemental rules of practice to 7 CFR                  the Regulatory Flexibility Act (RFA) (5               funding from a commercial lending
                                           part 900 (73 FR 49307; August 21,                        U.S.C. 601–612), the Agricultural                     institution.
                                           2008). The amendment of section                          Marketing Service (AMS) has                              While this action will result in a
                                           18c(17) of the Act and additional                        considered the economic impact of this                temporary increase in handler costs,
                                           supplemental rules of practice authorize                 action on small entities. Accordingly,                these costs will be uniform on all
                                           the use of informal rulemaking (5 U.S.C.                 AMS has prepared this final regulatory                handlers and proportional to the size of
                                           553) to amend Federal fruit, vegetable,                  flexibility analysis.                                 their businesses. However, these costs
                                           and nut marketing agreements and                            The purpose of the RFA is to fit                   are expected to be offset by the benefits
                                           orders. USDA may use informal                            regulatory actions to the scale of                    derived from operation of the order.
                                           rulemaking to amend marketing orders                     business subject to such actions in order             Additionally, these costs will help to
                                           based on the nature and complexity of                    that small businesses will not be unduly              ensure that the Committee has sufficient
                                           the proposed amendments, the potential                   or disproportionately burdened.                       funds to meet its financial obligations.
                                           regulatory and economic impacts on                       Marketing orders issued pursuant to the               Such stability is expected to allow the
                                           affected entities, and any other relevant                Act, and rules issued thereunder, are                 Committee to conduct programs that
                                           matters.                                                 unique in that they are brought about                 will benefit all entities, regardless of
                                              AMS considered the nature and                         through group action of essentially                   size. California raisin producers should
                                           complexity of the proposed                               small entities acting on their own                    see an improved business environment
                                           amendments, the potential regulatory                     behalf.                                               and a more sustainable business model
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                                           and economic impacts on affected                            There are approximately 3,000                      because of the improved business
                                           entities, and other relevant matters, and                producers of California raisins and                   efficiency.
                                           determined that amending the order as                    approximately 28 handlers subject to                     Alternatives were considered to these
                                           proposed by the Committee could                          regulation under the marketing order.                 proposals, including making no changes
                                           appropriately be accomplished through                    The Small Business Administration                     at this time. However, the Committee
                                           informal rulemaking.                                     defines small agricultural producers as               believes it is beneficial to have the


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                                                               Federal Register / Vol. 81, No. 132 / Monday, July 11, 2016 / Rules and Regulations                                           44763

                                           means and funds necessary to                             openly. To clarify, as used in the                       2. The marketing order, as amended,
                                           effectively administer the program.                      proposal, a shortage would exist when                 and as hereby further amended,
                                                                                                    the Committee’s cash flow needs exceed                regulates the handling of raisins
                                           Paperwork Reduction Act
                                                                                                    the amount of cash available from                     produced from grapes grown in
                                              In accordance with the Paperwork                      handler assessments. Regarding open                   California in the same manner as, and
                                           Reduction Act of 1995 (44 U.S.C.                         discussion, the Committee establishes a               is applicable only to, persons in the
                                           Chapter 35), the order’s information                     budget and assessment rate annually in                respective classes of commercial and
                                           collection requirements have been                        meetings that are open to the public.                 industrial activity specified in the
                                           previously approved by the Office of                     During these meetings, the Committee                  marketing order;
                                           Management and Budget (OMB) and                          would discuss any shortages and any                      3. The marketing order, as amended,
                                           assigned OMB No. 0581–0178,                              available commercial lending                          is limited in application to the smallest
                                           ‘‘Vegetable and Specialty Crops.’’ No                    opportunities. No changes were made to                regional production area which is
                                           changes in those requirements as a                       the proposed amendments as a result of                practicable, consistent with carrying out
                                           result of this action are necessary.                     the comments received.                                the declared policy of the Act, and the
                                           Should any changes become necessary,                                                                           issuance of several orders applicable to
                                                                                                      A proposed rule and referendum
                                           they would be submitted to OMB for                                                                             subdivisions of the production area
                                                                                                    order was then issued on February 22,
                                           approval.                                                                                                      would not effectively carry out the
                                              These amendments will not impose                      2016, and published in the Federal
                                                                                                    Register on March 7, 2016 (81 FR                      declared policy of the Act;
                                           any additional reporting or                                                                                       4. The marketing order, as amended,
                                           recordkeeping requirements on either                     11678). This document directed that a
                                                                                                    referendum among raisin producers be                  prescribes, insofar as practicable, such
                                           small or large California raisin handlers.                                                                     different terms applicable to different
                                              As with all Federal marketing order                   conducted during the period of March 9,
                                                                                                    2016, through March 23, 2016, to                      parts of the production area as are
                                           programs, reports and forms are                                                                                necessary to give due recognition to the
                                           periodically reviewed to reduce                          determine whether they favored the
                                                                                                    proposed amendments to the order. To                  differences in the production and
                                           information requirements and                                                                                   marketing of raisins produced or packed
                                           duplication by industry and public                       become effective, the amendments had
                                                                                                    to be approved by at least two-thirds of              in the production area; and
                                           sector agencies. In addition, USDA has                                                                            5. All handling of raisins produced in
                                           not identified any relevant Federal rules                the producers voting, or two-thirds of
                                                                                                                                                          the production area as defined in the
                                           that duplicate, overlap, or conflict with                the volume of raisins represented by
                                                                                                                                                          marketing order is in the current of
                                           this rule.                                               voters in the referendum. Both of the
                                                                                                                                                          interstate or foreign commerce or
                                              AMS is committed to complying with                    amendments were passed by 94 percent
                                                                                                                                                          directly burdens, obstructs, or affects
                                           the E-Government Act, to promote the                     of the producers voting and by 93
                                                                                                                                                          such commerce.
                                           use of the internet and other                            percent of the volume represented,
                                           information technologies to provide                      which exceeds the required two-thirds                 (b) Additional Findings
                                           increased opportunities for citizen                      approval of the producers voting in the                  It is necessary and in the public
                                           access to Government information and                     referendum or two-thirds of the volume                interest to make these amendments
                                           services, and for other purposes.                        represented in the referendum.                        effective not later than one day after
                                              The Committee’s meeting was widely                      A small business guide on complying                 publication in the Federal Register. A
                                           publicized throughout the California                     with fruit, vegetable, and specialty crop             later effective date would unnecessarily
                                           raisin production area. All interested                   marketing agreements and orders may                   delay implementation of the
                                           persons were invited to attend the                       be viewed at: http://www.ams.usda.gov/                amendments. These amendments
                                           meeting and encouraged to participate                    MarketingOrdersSmallBusinessGuide.                    should be in place as soon as possible
                                           in Committee deliberations on all                        Any questions about the compliance                    so the Committee may begin the process
                                           issues. Like all Committee meetings, the                 guide should be sent to Antoinette                    of identifying a commercial lending
                                           October 2, 2014, meeting was public,                     Carter at the previously mentioned                    institution if cash flow shortages are
                                           and all entities, both large and small,                  address in the FOR FURTHER INFORMATION                identified during their annual budget
                                           were encouraged to express their views                   CONTACT section.                                      meeting which will occur prior to the
                                           on these proposals.                                                                                            start of their next crop year (August 1,
                                              A proposed rule concerning this                       Order Amending the Order Regulating
                                                                                                    the Handling of Raisins Produced From                 2016). In view of the foregoing, it is
                                           action was published in the Federal                                                                            hereby found and determined that good
                                           Register on October 16, 2015 (80 FR                      Grapes Grown in California
                                                                                                                                                          cause exists for making these
                                           62506). Copies of the rule were mailed                   (a) Findings and Determinations Upon                  amendments effective one day after
                                           or sent via facsimile to all committee                   the Basis of the Rulemaking Record                    publication in the Federal Register and
                                           members and raisin handlers. Finally,                                                                          that it would be contrary to the public
                                           the rule was made available through the                    The findings hereinafter set forth are
                                                                                                                                                          interest to delay the effective date for 30
                                           Internet by USDA and the Office of the                   supplementary to the findings and
                                                                                                                                                          days after publication in the Federal
                                           Federal Register. A 60-day comment                       determinations which were previously
                                                                                                                                                          Register. (Sec. 553(d), Administrative
                                           period ending December 15, 2015, was                     made in connection with the issuance of
                                                                                                                                                          Procedure Act; 5 U.S.C. 551–559.)
                                           provided to allow interested persons to                  the marketing order; and all said
                                           respond to the proposals. Two                            previous findings and determinations                  (c) Determinations
                                           comments were received. One comment                      are hereby ratified and affirmed, except                 It is hereby determined that:
                                           was in support of the proposal. The                      insofar as such findings and                             1. Handlers (excluding cooperative
                                           second comment stated that the term                      determinations may be in conflict with                associations of producers who are not
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                                           ‘‘commercial lending institution’’ is                    the findings and determinations set                   engaged in processing, distributing, or
                                           vague and asked for the name of the                      forth herein.                                         shipping of raisins covered under the
                                           institution and clarification regarding                    1. The marketing order, as amended,                 order) who during the period August 1,
                                           what constitutes a shortage. The                         and all of the terms and conditions                   2014, through July 31, 2015, handled
                                           comment also stated that the lending                     thereof, will tend to effectuate the                  not less than 50 percent of the volume
                                           arrangement should be discussed                          declared policy of the Act;                           of such raisins covered by said order, as


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                                           44764               Federal Register / Vol. 81, No. 132 / Monday, July 11, 2016 / Rules and Regulations

                                           hereby amended, have signed an                           shall fix the rate of assessment to be                paragraph (a)(1) of this section. Such
                                           amended marketing agreement; and                         paid by all handlers on the basis of a                funds may be used:
                                             2. The issuance of this amendatory                     specified rate per ton. At any time                      (i) To defray essential administrative
                                           order, amending the aforesaid order, is                  during or after a crop year, the Secretary            expenses (i.e., staff wages/salaries and
                                           favored or approved by at least two-                     may increase the rate of assessment to                related benefits, office rent, utilities,
                                           thirds of the producers who participated                 obtain sufficient funds to cover any later            postage, insurance, legal expenses, audit
                                           in a referendum on the question of                       finding by the Secretary relative to the              costs, consulting, Web site operation
                                           approval and who, during the period of                   expenses of the committee. Each                       and maintenance, office supplies,
                                           August 31, 2014, through July 31, 2015,                  handler shall pay such additional                     repairs and maintenance, equipment
                                           have been engaged within the                             assessment to the committee upon                      leases, domestic staff travel and
                                           production area in the production of                     demand. In order to provide funds to                  committee mileage reimbursement,
                                           such raisins, such producers having also                 carry out the functions of the                        international committee travel,
                                           produced for market at least two-thirds                  committee, the committee may accept                   international staff travel, bank charges,
                                           of the volume of such commodity                          advance payments from any handler to                  computer software and programming,
                                           represented in the referendum.                           be credited toward such assessments as                costs of compliance activities, and other
                                             3. The issuance of this amendatory                     may be levied pursuant to this section                similar essential administrative
                                           order together with a signed marketing                   against such handler during the crop                  expenses) exclusive of promotional
                                           agreement advances the interests of                      year. In the event cash flow needs of the             expenses during any crop year, prior to
                                           growers of raisins in the production area                committee are above cash available                    the time assessment income is sufficient
                                           pursuant to the declared policy of the                   generated by handler assessments, the                 to cover such expenses;
                                           Act.                                                     committee may borrow from a                              (ii) To cover deficits incurred during
                                           Order Relative to Handling                               commercial lending institution. The                   any period when assessment income is
                                                                                                    payment of assessments for the                        less than expenses;
                                              It is therefore ordered, That on and                  maintenance and functioning of the                       (iii) To defray expenses incurred
                                           after the effective date hereof, all                     committee, and for such purposes as the               during any period when any or all
                                           handling of raisins produced from                        Secretary may pursuant to this subpart                provisions of this part are suspended;
                                           grapes grown in California shall be in                   determine to be appropriate, may be                      (iv) To meet any other such expenses
                                           conformity to, and in compliance with,                   required under this part throughout the               recommended by the committee and
                                           the terms and conditions of the said                     period it is in effect, irrespective of               approved by the Secretary; and
                                           order as hereby amended as follows:                      whether particular provisions thereof                    (v) To cover the necessary expenses of
                                              The provisions of the proposed                        are suspended or become inoperative.                  liquidation in the event of termination
                                           marketing order amending the order                                                                             of this part. Upon such termination, any
                                           contained in the proposed rule issued                    *     *     *      *      *
                                                                                                                                                          funds not required to defray the
                                           by the Associate Administrator on                        ■ 3. Revise paragraph (a) of § 989.81 to              necessary expenses of liquidation shall
                                           October 13, 2015, and published in the                   read as follows:                                      be disposed of in such manner as the
                                           Federal Register on October 16, 2015                                                                           Secretary may determine to be
                                           (80 FR 62506), shall be and are the                      § 989.81   Accounting.
                                                                                                                                                          appropriate; Provided, That to the
                                           terms and provisions of this order                          (a) If, at the end of the crop year, the           extent practicable, such funds shall be
                                           amending the order and are set forth in                  assessments collected are in excess of                returned pro rata to the persons from
                                           full herein.                                             expenses incurred, such excess shall be               whom such funds were collected.
                                           List of Subjects in 7 CFR Part 989                       accounted for in accordance with one of
                                                                                                                                                          *       *    *     *     *
                                                                                                    the following:
                                             Raisins, Marketing agreements,                                                                                 Dated: July 5, 2016.
                                           Reporting and recordkeeping                                 (1) If such excess is not retained in a
                                                                                                    reserve, as provided in paragraph (a)(2)              Elanor Starmer,
                                           requirements.                                                                                                  Administrator, Agricultural Marketing
                                                                                                    of this section, it shall be refunded
                                             For the reasons set forth in the                       proportionately to the persons from                   Service.
                                           preamble, 7 CFR part 989 is amended as                   whom collected in accordance with                     [FR Doc. 2016–16335 Filed 7–8–16; 8:45 am]
                                           follows:                                                 § 989.80; Provided, That any sum paid                 BILLING CODE P

                                           PART 989—RAISINS PRODUCED                                by a person in excess of his or her pro
                                           FROM GRAPES GROWN IN                                     rata share of expenses during any crop
                                           CALIFORNIA                                               year may be applied by the committee                  BUREAU OF CONSUMER FINANCIAL
                                                                                                    at the end of such crop year as credit for            PROTECTION
                                           ■ 1. The authority citation for 7 CFR                    such person, toward the committee’s
                                           part 989 continues to read as follows:                   administrative operations for the                     12 CFR Part 1002
                                               Authority: 7 U.S.C. 601–674.                         following crop year; Provided further,
                                                                                                    That the committee may credit the                     Equal Credit Opportunity Act
                                           ■ 2. Revise paragraph (c) of § 989.80 to                                                                       (Regulation B)
                                                                                                    excess to any outstanding obligations
                                           read as follows:
                                                                                                    due the committee from such person.
                                                                                                                                                          CFR Correction
                                           § 989.80   Assessments.                                     (2) The committee may carry over
                                           *     *     *      *    *                                such excess funds into subsequent crop                   In Title 12 of the Code of Federal
                                             (c) During any crop year or any                        years as a reserve; Provided, That funds              Regulations, Parts 900 to 1025, revised
                                           portion of a crop year for which volume                  already in the reserve do not exceed one              as of January 1, 2016, on page 86, in
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                                           percentages are not effective for a                      crop year’s budgeted expenses as                      supplement 1 to part 1002, under
                                           varietal type, all standard raisins of that              averaged over the past six years. In the              ‘‘Section 1002.14—Rules on Providing
                                           varietal type acquired by handlers                       event that funds exceed one crop year’s               Appraisals and Valuations’’, remove
                                           during such period shall be free tonnage                 expenses, funds in excess of one crop                 subsection 14(c).
                                           for purposes of levying assessments                      year’s budgeted expenses shall be                     [FR Doc. 2016–16301 Filed 7–8–16; 8:45 am]
                                           pursuant to this section. The Secretary                  distributed in accordance with                        BILLING CODE 1505–01–D




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Document Created: 2016-07-09 00:21:40
Document Modified: 2016-07-09 00:21:40
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.
DatesThis rule is effective July 12, 2016.
ContactGeronimo Quinones, Marketing Specialist, or Michelle P. Sharrow, Rulemaking Branch Chief, 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]
FR Citation81 FR 44761 
CFR AssociatedRaisins; Marketing Agreements and Reporting and Recordkeeping Requirements

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