81_FR_5595 81 FR 5573 - Kiwifruit Grown in California; Increased Assessment Rate

81 FR 5573 - Kiwifruit Grown in California; Increased Assessment Rate

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 81, Issue 22 (February 3, 2016)

Page Range5573-5575
FR Document2016-02067

This rule implements a recommendation from the Kiwifruit Administrative Committee (Committee) for an increase of the assessment rate established for the 2015-16 and subsequent fiscal periods from $0.025 to $0.040 per 9-kilo volume-fill container or equivalent of kiwifruit handled under the marketing order (order). The Committee locally administers the order, and is comprised of growers of kiwifruit operating within the area of production. Assessments upon kiwifruit handlers are used by the Committee to fund reasonable and necessary expenses of the program. The fiscal period begins on August 1 and ends July 31. The assessment rate will remain in effect indefinitely unless modified, suspended, or terminated.

Federal Register, Volume 81 Issue 22 (Wednesday, February 3, 2016)
[Federal Register Volume 81, Number 22 (Wednesday, February 3, 2016)]
[Rules and Regulations]
[Pages 5573-5575]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-02067]



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Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 
Prices of new books are listed in the first FEDERAL REGISTER issue of each 
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Federal Register / Vol. 81, No. 22 / Wednesday, February 3, 2016 / 
Rules and Regulations

[[Page 5573]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 920

[Doc. No. AMS-FV-15-0056; FV15-920-1 FR]


Kiwifruit Grown in California; Increased Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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

SUMMARY: This rule implements a recommendation from the Kiwifruit 
Administrative Committee (Committee) for an increase of the assessment 
rate established for the 2015-16 and subsequent fiscal periods from 
$0.025 to $0.040 per 9-kilo volume-fill container or equivalent of 
kiwifruit handled under the marketing order (order). The Committee 
locally administers the order, and is comprised of growers of kiwifruit 
operating within the area of production. Assessments upon kiwifruit 
handlers are used by the Committee to fund reasonable and necessary 
expenses of the program. The fiscal period begins on August 1 and ends 
July 31. The assessment rate will remain in effect indefinitely unless 
modified, suspended, or terminated.

DATES: Effective February 4, 2016.

FOR FURTHER INFORMATION CONTACT: Kathie Notoro, Marketing Specialist, 
or Martin Engeler, 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 Jeffrey Smutny, 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. 920, as amended (7 CFR part 920), regulating the handling of 
kiwifruit 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. 601-674), 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, California 
kiwifruit handlers are subject to assessments. Funds to administer the 
order are derived from such assessments. It is intended that the 
assessment rate as issued herein would be applicable to all assessable 
kiwifruit beginning on August 1, 2015, 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 for the 2015-16 and 
subsequent fiscal periods from $0.025 to $0.040 per 9-kilo volume-fill 
container or equivalent of kiwifruit.
    The California kiwifruit 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 of California 
kiwifruit. 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 2013-14 and subsequent fiscal periods, the Committee 
recommended, and USDA approved, an assessment rate that would continue 
in effect from fiscal period to fiscal period unless modified, 
suspended, or terminated by USDA upon recommendation and information 
submitted by the Committee or other information available to USDA.
    The Committee met on July 17 and September 16, 2015, and 
unanimously recommended 2015-16 fiscal year expenditures of $132,725 
and an assessment rate of $0.040 per 9-kilo volume-fill container or 
equivalent of kiwifruit handled to fund Committee expenses. In 
comparison, last year's budgeted expenditures were $120,925. The 
assessment rate of $0.040 is $0.015 more than the rate currently in 
effect. The Committee's recommended 2015-16 expenditures are $11,800 
higher than last year's budgeted expenditures. The primary reason for 
the increase is to provide funding for research. When applied to the 
Committee's crop estimate for the 2015-16 fiscal year of 2,297,000 9-
kilo volume-fill containers or equivalent, the current assessment rate 
of $0.025 would not generate sufficient assessment income to 
anticipated expenses. The assessment rate of $0.040 per 9-kilo volume-
fill container or its equivalent should generate assessment income of 
$91,880. Anticipated assessment income combined with financial reserve 
and interest income, should provide sufficient funds for the Committee 
to meet its budgeted expenses while maintaining its financial reserve 
within the limit authorized under the order. (Sec.  920.42)
    The major expenditures recommended by the Committee for the 2015-16 
fiscal period include $80,000 for management expenses; $14,000 for

[[Page 5574]]

two financial audits, $14,330 for research; $7,500 for International 
Kiwifruit Organization (IKO) travel; $2,500 for a membership fee to Buy 
California; and $2,500 for a membership fee to the IKO. Major budgeted 
expenses for the 2014-15 fiscal period were $80,000 for management 
expenses; $7,500 for a financial audit, $5,000 for handler audits; 
$2,500 for a membership fee to Buy California; $2,500 for IKO 
membership; and $12,500 for IKO travel.
    The assessment rate recommended by the Committee was derived by 
considering the amount of revenue needed to meet anticipated expenses 
divided by expected shipments of California kiwifruit. As previously 
mentioned, kiwifruit shipments for the 2015-16 fiscal period are 
estimated at 2,297,000 9-kilo volume-fill containers, which should 
provide $91,880 in assessment income. Anticipated assessment income 
derived from handler assessments, along with interest income and 
$40,756 from the Committee's authorized financial reserve, should 
provide sufficient funds for the Committee to meet its budgeted 
expenses. It is anticipated that $29,119 would remain in the financial 
reserve at the end of July 2016, which would be within the maximum 
amount permitted by the order of approximately one fiscal year's 
expenses (Sec.  920.42).
    The assessment rate established in this rule will continue in 
effect indefinitely unless modified, suspended, or terminated by USDA 
upon recommendation and information submitted by the Committee or other 
available information.
    Although this assessment rate 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 would evaluate Committee 
recommendations and other available information to determine whether 
modification of the assessment rate is needed. Further rulemaking would 
be undertaken as necessary. The Committee's 2015-16 budget and those 
for subsequent fiscal periods would 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 178 kiwifruit growers in the production 
area and approximately 28 handlers subject to regulation under the 
marketing order. Small agricultural producers are defined by the Small 
Business Administration as those having annual receipts of less than 
$750,000, and small agricultural service firms are defined as those 
whose annual receipts are less than $7,000,000 (13 CFR 121.201).
    The National Agricultural Statistical Service (NASS) reported total 
California kiwifruit production for the 2014 season at 27,400 tons, 
with an average price of $1,190 per ton. Based on the average price and 
shipment information provided by NASS and the Committee, it could be 
concluded that the majority of kiwifruit handlers would be considered 
small businesses under the SBA definition. Based on kiwifruit 
production and price information, as well as the total number of 
California kiwifruit growers, average annual grower revenue is less 
than $750,000. Thus, the majority of California kiwifruit growers may 
also be classified as small entities.
    This rule increases the assessment rate collected from handlers for 
the 2015-16 and subsequent fiscal periods from $0.025 to $0.040 per 9-
kilo volume-fill container or equivalent of kiwifruit. The Committee 
unanimously recommended 2015-16 expenditures of $132,725 and an 
assessment rate of $0.040 per 9-kilo volume-fill container. The 
assessment rate of $0.040 is $0.015 higher than the 2014-15 rate. The 
quantity of assessable kiwifruit for the 2015-16 fiscal period is 
estimated at 2,297,000 9-kilo volume-fill containers. Thus, the $0.040 
rate should provide $91,880 in assessment income. Anticipated 
assessment income derived from handler assessments, along with 
financial reserve funds and interest income, should provide sufficient 
revenue for the Committee to meet its budgeted expenses, while 
maintaining its financial reserve within the maximum amount permitted 
by the order of approximately one fiscal year's expenses (Sec.  
920.42).
    The major expenditures recommended by the Committee for the 2015-16 
fiscal period include: $80,000 for management expenses; $14,000 for two 
financial audits; $14,330 for research; $7,500 for IKO travel; $2,500 
for a membership fee to Buy California; and $2,500 for IKO membership. 
Major budgeted expenses for the 2014-15 fiscal period were: $80,000 for 
management expenses; $7,500 for a financial audit; $5,000 for handler 
audits; $2,500 for a membership fee to Buy California; $2,500 for IKO 
membership; and $12,500 for IKO travel.
    Prior to arriving at this budget and assessment rate, the Committee 
considered alternative expenditure levels, to include maintaining the 
current assessment rate, but ultimately determined that the current 
assessment rate would generate insufficient revenue to meet its 
expenses.
    According to data from NASS, the seasonal average producer price 
was $11.09 per 9-kilo volume-fill container in 2013 and $11.78 per 9-
kilo volume-fill container in 2014. A review of historical information 
and preliminary information pertaining to the upcoming fiscal period 
indicates that the grower price for 2015-16 could range between $11.09 
and $11.78 per 9-kilo volume-fill container of assessable kiwifruit. 
Therefore, estimated assessment revenue for the 2015-16 fiscal year as 
a percentage of total producer revenue could be between 0.34 percent 
and 0.36 percent.
    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 
would be offset by the benefits derived by the operation of the 
marketing order. In addition, the Committee's meetings were widely 
publicized throughout the California kiwifruit industry and all 
interested persons were invited to attend the meetings and participate 
in Committee deliberations on all issues. The July 17 and September 16, 
2015, meetings were public meetings. 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. No changes in those requirements are

[[Page 5575]]

necessary as a result of this action. 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 kiwifruit 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 November 5, 2015 (80 FR 68473). Copies of the proposed rule 
were also mailed or sent via facsimile to all California kiwifruit 
handlers. Finally, the proposal was made available through the internet 
by USDA and the Office of the Federal Register. A 15-day comment period 
ending November 20, 2015, was provided for interested persons to 
respond to the proposal. One comment in support of the rule was 
received, with the commenter requesting more information on the type of 
research the committee was conducting. The research the Committee 
recommended involves two field trials during the first year of a 
research proposal to study the beneficial effects of Nimitz nematicide 
on the Root-knot nematode. This type of production research is 
authorized under Sec.  920.47 of the marketing order and will benefit 
growers. Accordingly, no changes will be made to the rule as proposed, 
based on the comment 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 Jeffrey Smutny 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 
hereinafter set forth, will tend to effectuate the declared policy of 
the Act.
    Pursuant to 5 U.S.C. 553, it 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 
2015-16 fiscal year began on August 1, 2015. Handlers began shipping 
kiwifruit in September and the marketing order requires that the rate 
of assessment apply to all assessable kiwifruit handled during the 
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 one supportive comment was 
received.

List of Subjects in 7 CFR Part 920

    Kiwifruit, Marketing agreements, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 920 is 
amended as follows:

PART 920--KIWIFRUIT GROWN IN CALIFORNIA

0
1. The authority citation for 7 CFR part 920 continues to read as 
follows:

    Authority:  7 U.S.C. 601-674.
0
2. Section 920.213 is revised to read as follows:

Sec.  920.213  Assessment rate.

    On and after August 1, 2015, an assessment rate of $0.040 per 9-
kilo volume-fill container or equivalent of kiwifruit is established 
for kiwifruit grown in California.

    Dated: January 29, 2016.
Erin Morris,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2016-02067 Filed 2-2-16; 8:45 am]
BILLING CODE 3410-02-P



                                                                                                                                                                                             5573

                                            Rules and Regulations                                                                                         Federal Register
                                                                                                                                                          Vol. 81, No. 22

                                                                                                                                                          Wednesday, February 3, 2016



                                            This section of the FEDERAL REGISTER                    1400 Independence Avenue SW., STOP                    to formulate an annual budget of
                                            contains regulatory documents having general            0237, Washington, DC 20250–0237;                      expenses and collect assessments from
                                            applicability and legal effect, most of which           Telephone: (202) 720–2491, Fax: (202)                 handlers to administer the program. The
                                            are keyed to and codified in the Code of                720–8938, or Email: Jeffrey.Smutny@                   members of the Committee are
                                            Federal Regulations, which is published under           ams.usda.gov.                                         producers of California kiwifruit. They
                                            50 titles pursuant to 44 U.S.C. 1510.
                                                                                                    SUPPLEMENTARY INFORMATION: This rule                  are familiar with the Committee’s needs
                                            The Code of Federal Regulations is sold by              is issued under Marketing Order No.                   and with the costs of goods and services
                                            the Superintendent of Documents. Prices of              920, as amended (7 CFR part 920),                     in their local area and are thus in a
                                            new books are listed in the first FEDERAL               regulating the handling of kiwifruit                  position to formulate an appropriate
                                            REGISTER issue of each week.
                                                                                                    grown in California, hereinafter referred             budget and assessment rate. The
                                                                                                    to as the ‘‘order.’’ The order is effective           assessment rate is formulated and
                                                                                                    under the Agricultural Marketing                      discussed in a public meeting. Thus, all
                                            DEPARTMENT OF AGRICULTURE                                                                                     directly affected persons have an
                                                                                                    Agreement Act of 1937, as amended (7
                                                                                                    U.S.C. 601–674), hereinafter referred to              opportunity to participate and provide
                                            Agricultural Marketing Service                                                                                input.
                                                                                                    as the ‘‘Act.’’
                                                                                                       The Department of Agriculture                         For the 2013–14 and subsequent fiscal
                                            7 CFR Part 920                                                                                                periods, the Committee recommended,
                                                                                                    (USDA) is issuing this rule in
                                            [Doc. No. AMS–FV–15–0056; FV15–920–1                    conformance with Executive Orders                     and USDA approved, an assessment rate
                                            FR]                                                     12866, 13563, and 13175.                              that would continue in effect from fiscal
                                                                                                       This rule has been reviewed under                  period to fiscal period unless modified,
                                            Kiwifruit Grown in California;                                                                                suspended, or terminated by USDA
                                                                                                    Executive Order 12988, Civil Justice
                                            Increased Assessment Rate                                                                                     upon recommendation and information
                                                                                                    Reform. Under the marketing order now
                                            AGENCY:  Agricultural Marketing Service,                in effect, California kiwifruit handlers              submitted by the Committee or other
                                            USDA.                                                   are subject to assessments. Funds to                  information available to USDA.
                                            ACTION: Final rule.                                     administer the order are derived from                    The Committee met on July 17 and
                                                                                                    such assessments. It is intended that the             September 16, 2015, and unanimously
                                            SUMMARY:   This rule implements a                       assessment rate as issued herein would                recommended 2015–16 fiscal year
                                            recommendation from the Kiwifruit                       be applicable to all assessable kiwifruit             expenditures of $132,725 and an
                                            Administrative Committee (Committee)                    beginning on August 1, 2015, and                      assessment rate of $0.040 per 9-kilo
                                            for an increase of the assessment rate                  continue until amended, suspended, or                 volume-fill container or equivalent of
                                            established for the 2015–16 and                         terminated.                                           kiwifruit handled to fund Committee
                                            subsequent fiscal periods from $0.025 to                   The Act provides that administrative               expenses. In comparison, last year’s
                                            $0.040 per 9-kilo volume-fill container                 proceedings must be exhausted before                  budgeted expenditures were $120,925.
                                            or equivalent of kiwifruit handled under                parties may file suit in court. Under                 The assessment rate of $0.040 is $0.015
                                            the marketing order (order). The                        section 608c(15)(A) of the Act, any                   more than the rate currently in effect.
                                            Committee locally administers the                       handler subject to an order may file                  The Committee’s recommended 2015–
                                            order, and is comprised of growers of                   with USDA a petition stating that the                 16 expenditures are $11,800 higher than
                                            kiwifruit operating within the area of                  order, any provision of the order, or any             last year’s budgeted expenditures. The
                                            production. Assessments upon kiwifruit                  obligation imposed in connection with                 primary reason for the increase is to
                                            handlers are used by the Committee to                   the order is not in accordance with law               provide funding for research. When
                                            fund reasonable and necessary expenses                  and request a modification of the order               applied to the Committee’s crop
                                            of the program. The fiscal period begins                or to be exempted therefrom. Such                     estimate for the 2015–16 fiscal year of
                                            on August 1 and ends July 31. The                       handler is afforded the opportunity for               2,297,000 9-kilo volume-fill containers
                                            assessment rate will remain in effect                   a hearing on the petition. After the                  or equivalent, the current assessment
                                            indefinitely unless modified,                           hearing, USDA would rule on the                       rate of $0.025 would not generate
                                            suspended, or terminated.                               petition. The Act provides that the                   sufficient assessment income to
                                            DATES: Effective February 4, 2016.                      district court of the United States in any            anticipated expenses. The assessment
                                            FOR FURTHER INFORMATION CONTACT:                        district in which the handler is an                   rate of $0.040 per 9-kilo volume-fill
                                            Kathie Notoro, Marketing Specialist, or                 inhabitant, or has his or her principal               container or its equivalent should
                                            Martin Engeler, Regional Director,                      place of business, has jurisdiction to                generate assessment income of $91,880.
                                            California Marketing Field Office,                      review USDA’s ruling on the petition,                 Anticipated assessment income
                                            Marketing Order and Agreement                           provided an action is filed not later than            combined with financial reserve and
                                            Division, Specialty Crops Program,                      20 days after the date of the entry of the            interest income, should provide
                                            AMS, USDA; Telephone: (559) 487–                        ruling.                                               sufficient funds for the Committee to
                                            5901, Fax: (559) 487–5906, or Email:                       This rule increases the assessment                 meet its budgeted expenses while
                                            Kathie.Notoro@ams.usda.gov, or                          rate for the 2015–16 and subsequent                   maintaining its financial reserve within
tkelley on DSK3SPTVN1PROD with RULES




                                            Martin.Engeler@ams.usda.gov. Small                      fiscal periods from $0.025 to $0.040 per              the limit authorized under the order.
                                            businesses may request information on                   9-kilo volume-fill container or                       (§ 920.42)
                                            complying with this regulation by                       equivalent of kiwifruit.                                 The major expenditures
                                            contacting Jeffrey Smutny, Marketing                       The California kiwifruit marketing                 recommended by the Committee for the
                                            Order and Agreement Division,                           order provides authority for the                      2015–16 fiscal period include $80,000
                                            Specialty Crops Program, AMS, USDA,                     Committee, with the approval of USDA,                 for management expenses; $14,000 for


                                       VerDate Sep<11>2014   17:35 Feb 02, 2016   Jkt 238001   PO 00000   Frm 00001   Fmt 4700   Sfmt 4700   E:\FR\FM\03FER1.SGM   03FER1


                                            5574             Federal Register / Vol. 81, No. 22 / Wednesday, February 3, 2016 / Rules and Regulations

                                            two financial audits, $14,330 for                       U.S.C. 601–612), the Agricultural                     maximum amount permitted by the
                                            research; $7,500 for International                      Marketing Service (AMS) has                           order of approximately one fiscal year’s
                                            Kiwifruit Organization (IKO) travel;                    considered the economic impact of this                expenses (§ 920.42).
                                            $2,500 for a membership fee to Buy                      rule on small entities. Accordingly,                     The major expenditures
                                            California; and $2,500 for a membership                 AMS has prepared this final regulatory                recommended by the Committee for the
                                            fee to the IKO. Major budgeted expenses                 flexibility analysis.                                 2015–16 fiscal period include: $80,000
                                            for the 2014–15 fiscal period were                         The purpose of the RFA is to fit                   for management expenses; $14,000 for
                                            $80,000 for management expenses;                        regulatory actions to the scale of                    two financial audits; $14,330 for
                                            $7,500 for a financial audit, $5,000 for                businesses subject to such actions in                 research; $7,500 for IKO travel; $2,500
                                            handler audits; $2,500 for a membership                 order that small businesses will not be               for a membership fee to Buy California;
                                            fee to Buy California; $2,500 for IKO                   unduly or disproportionately burdened.                and $2,500 for IKO membership. Major
                                            membership; and $12,500 for IKO                         Marketing orders issued pursuant to the               budgeted expenses for the 2014–15
                                            travel.                                                 Act, and the rules issued thereunder, are             fiscal period were: $80,000 for
                                               The assessment rate recommended by                   unique in that they are brought about                 management expenses; $7,500 for a
                                            the Committee was derived by                            through group action of essentially                   financial audit; $5,000 for handler
                                            considering the amount of revenue                       small entities acting on their own                    audits; $2,500 for a membership fee to
                                            needed to meet anticipated expenses                     behalf.                                               Buy California; $2,500 for IKO
                                            divided by expected shipments of                           There are approximately 178 kiwifruit              membership; and $12,500 for IKO
                                            California kiwifruit. As previously                     growers in the production area and                    travel.
                                            mentioned, kiwifruit shipments for the                  approximately 28 handlers subject to                     Prior to arriving at this budget and
                                            2015–16 fiscal period are estimated at                  regulation under the marketing order.                 assessment rate, the Committee
                                            2,297,000 9-kilo volume-fill containers,                Small agricultural producers are defined              considered alternative expenditure
                                            which should provide $91,880 in                         by the Small Business Administration as               levels, to include maintaining the
                                            assessment income. Anticipated                          those having annual receipts of less than             current assessment rate, but ultimately
                                            assessment income derived from                          $750,000, and small agricultural service              determined that the current assessment
                                            handler assessments, along with interest                firms are defined as those whose annual               rate would generate insufficient revenue
                                            income and $40,756 from the                             receipts are less than $7,000,000 (13                 to meet its expenses.
                                            Committee’s authorized financial                        CFR 121.201).                                            According to data from NASS, the
                                            reserve, should provide sufficient funds                   The National Agricultural Statistical              seasonal average producer price was
                                            for the Committee to meet its budgeted                  Service (NASS) reported total California              $11.09 per 9-kilo volume-fill container
                                            expenses. It is anticipated that $29,119                kiwifruit production for the 2014 season              in 2013 and $11.78 per 9-kilo volume-
                                            would remain in the financial reserve at                at 27,400 tons, with an average price of              fill container in 2014. A review of
                                            the end of July 2016, which would be                    $1,190 per ton. Based on the average                  historical information and preliminary
                                            within the maximum amount permitted                     price and shipment information                        information pertaining to the upcoming
                                            by the order of approximately one fiscal                provided by NASS and the Committee,                   fiscal period indicates that the grower
                                            year’s expenses (§ 920.42).                             it could be concluded that the majority               price for 2015–16 could range between
                                               The assessment rate established in                   of kiwifruit handlers would be                        $11.09 and $11.78 per 9-kilo volume-fill
                                            this rule will continue in effect                       considered small businesses under the                 container of assessable kiwifruit.
                                            indefinitely unless modified,                           SBA definition. Based on kiwifruit                    Therefore, estimated assessment
                                            suspended, or terminated by USDA                        production and price information, as                  revenue for the 2015–16 fiscal year as a
                                            upon recommendation and information                     well as the total number of California                percentage of total producer revenue
                                            submitted by the Committee or other                     kiwifruit growers, average annual                     could be between 0.34 percent and 0.36
                                            available information.                                  grower revenue is less than $750,000.                 percent.
                                               Although this assessment rate will be                Thus, the majority of California                         This action increases the assessment
                                            in effect for an indefinite period, the                 kiwifruit growers may also be classified              obligation imposed on handlers. While
                                            Committee will continue to meet prior                   as small entities.                                    assessments impose some additional
                                            to or during each fiscal period to                         This rule increases the assessment                 costs on handlers, the costs are minimal
                                            recommend a budget of expenses and                      rate collected from handlers for the                  and uniform on all handlers. However,
                                            consider recommendations for                            2015–16 and subsequent fiscal periods                 these costs would be offset by the
                                            modification of the assessment rate. The                from $0.025 to $0.040 per 9-kilo                      benefits derived by the operation of the
                                            dates and times of Committee meetings                   volume-fill container or equivalent of                marketing order. In addition, the
                                            are available from the Committee or                     kiwifruit. The Committee unanimously                  Committee’s meetings were widely
                                            USDA. Committee meetings are open to                    recommended 2015–16 expenditures of                   publicized throughout the California
                                            the public and interested persons may                   $132,725 and an assessment rate of                    kiwifruit industry and all interested
                                            express their views at these meetings.                  $0.040 per 9-kilo volume-fill container.              persons were invited to attend the
                                            USDA would evaluate Committee                           The assessment rate of $0.040 is $0.015               meetings and participate in Committee
                                            recommendations and other available                     higher than the 2014–15 rate. The                     deliberations on all issues. The July 17
                                            information to determine whether                        quantity of assessable kiwifruit for the              and September 16, 2015, meetings were
                                            modification of the assessment rate is                  2015–16 fiscal period is estimated at                 public meetings. All entities, both large
                                            needed. Further rulemaking would be                     2,297,000 9-kilo volume-fill containers.              and small, were able to express views
                                            undertaken as necessary. The                            Thus, the $0.040 rate should provide                  on this issue.
                                            Committee’s 2015–16 budget and those                    $91,880 in assessment income.                            In accordance with the Paperwork
                                            for subsequent fiscal periods would be                  Anticipated assessment income derived                 Reduction Act of 1995 (44 U.S.C.
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                                            reviewed and, as appropriate, approved                  from handler assessments, along with                  Chapter 35), the order’s information
                                            by USDA.                                                financial reserve funds and interest                  collection requirements have been
                                                                                                    income, should provide sufficient                     previously approved by the Office of
                                            Final Regulatory Flexibility Analysis                   revenue for the Committee to meet its                 Management and Budget (OMB) and
                                              Pursuant to requirements set forth in                 budgeted expenses, while maintaining                  assigned OMB No. 0581–0189. No
                                            the Regulatory Flexibility Act (RFA) (5                 its financial reserve within the                      changes in those requirements are


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                                                             Federal Register / Vol. 81, No. 22 / Wednesday, February 3, 2016 / Rules and Regulations                                         5575

                                            necessary as a result of this action.                   will tend to effectuate the declared                  ACTION:   Final rule.
                                            Should any changes become necessary,                    policy of the Act.
                                            they would be submitted to OMB for                         Pursuant to 5 U.S.C. 553, it also found            SUMMARY:    This rule updates the list of
                                            approval.                                               and determined that good cause exists                 institutions that are granted HSACU
                                               This rule imposes no additional                      for not postponing the effective date of              certification by the Secretary and are
                                            reporting or recordkeeping requirements                 this rule until 30 days after publication             eligible for HSACU programs for the
                                            on either small or large California                     in the Federal Register because: (1) The              period starting October 1, 2015, and
                                                                                                    2015–16 fiscal year began on August 1,                ending September 30, 2016.
                                            kiwifruit handlers. As with all Federal
                                            marketing order programs, reports and                   2015. Handlers began shipping kiwifruit               DATES: This rule is effective February 3,
                                            forms are periodically reviewed to                      in September and the marketing order                  2016 and applicable October 1, 2015.
                                            reduce information requirements and                     requires that the rate of assessment                  FOR FURTHER INFORMATION CONTACT: Lisa
                                            duplication by industry and public                      apply to all assessable kiwifruit handled             DePaolo; Policy Analyst; National
                                            sector agencies. As noted in the initial                during the fiscal period; (2) the                     Institute of Food and Agriculture; U.S.
                                            regulatory flexibility analysis, USDA                   Committee needs to have sufficient                    Department of Agriculture; STOP 2272;
                                            has not identified any relevant Federal                 funds to pay its expenses, which are                  1400 Independence Avenue SW.;
                                            rules that duplicate, overlap, or conflict              incurred on a continuous basis; and (3)               Washington, DC 20250–2272; Voice:
                                            with this final rule.                                   handlers are aware of this action which               202–401–5061; Fax: 202–401–7752;
                                               AMS is committed to complying with                   was unanimously recommended by the                    Email: ldepaolo@nifa.usda.gov.
                                            the E-Government Act, to promote the                    Committee at a public meeting and is                  SUPPLEMENTARY INFORMATION:
                                            use of the internet and other                           similar to other assessment rate actions
                                                                                                    issued in past years. Also, a 15-day                  HSACU Institutions for Fiscal Year
                                            information technologies to provide                                                                           2016
                                            increased opportunities for citizen                     comment period was provided for in the
                                            access to Government information and                    proposed rule, and one supportive                        This rule makes changes to the
                                            services, and for other purposes.                       comment was received.                                 existing list of institutions in Appendix
                                                                                                                                                          B of 7 CFR part 3434. The list of
                                               A proposed rule concerning this                      List of Subjects in 7 CFR Part 920                    institutions is amended to reflect the
                                            action was published in the Federal                       Kiwifruit, Marketing agreements,                    institutions that are granted HSACU
                                            Register on November 5, 2015 (80 FR                     Reporting and recordkeeping                           certification by the Secretary and are
                                            68473). Copies of the proposed rule                     requirements.                                         eligible for HSACU programs for the
                                            were also mailed or sent via facsimile to
                                                                                                      For the reasons set forth in the                    period starting October 1, 2015, and
                                            all California kiwifruit handlers.
                                                                                                    preamble, 7 CFR part 920 is amended as                ending September 30, 2016.
                                            Finally, the proposal was made
                                                                                                    follows:
                                            available through the internet by USDA                                                                        Certification Process
                                            and the Office of the Federal Register. A               PART 920—KIWIFRUIT GROWN IN                              As stated in 7 CFR 3434.4, an
                                            15-day comment period ending                            CALIFORNIA                                            institution must meet the following
                                            November 20, 2015, was provided for                                                                           criteria to receive HSACU certification:
                                            interested persons to respond to the                    ■ 1. The authority citation for 7 CFR                 (1) Be a Hispanic-Serving Institution
                                            proposal. One comment in support of                     part 920 continues to read as follows:                (HSI), (2) offer agriculture-related
                                            the rule was received, with the                             Authority: 7 U.S.C. 601–674.                      degrees, (3) not appear on the Excluded
                                            commenter requesting more information                   ■ 2. Section 920.213 is revised to read               Parties List System (EPLS), (4) be
                                            on the type of research the committee                   as follows:                                           accredited, and (5) award at least 15%
                                            was conducting. The research the                                                                              of agriculture-related degrees to
                                            Committee recommended involves two                      § 920.213    Assessment rate.                         Hispanic students over the two most
                                            field trials during the first year of a                   On and after August 1, 2015, an                     recent academic years.
                                            research proposal to study the beneficial               assessment rate of $0.040 per 9-kilo                     NIFA obtained the latest report from
                                            effects of Nimitz nematicide on the                     volume-fill container or equivalent of                the U.S. Department of Education’s
                                            Root-knot nematode. This type of                        kiwifruit is established for kiwifruit                National Center for Education Statistics
                                            production research is authorized under                 grown in California.                                  that lists all HSIs and the degrees
                                            § 920.47 of the marketing order and will                                                                      conferred by these institutions
                                                                                                      Dated: January 29, 2016.
                                            benefit growers. Accordingly, no                                                                              (completion data) during the 2013–14
                                            changes will be made to the rule as                     Erin Morris,
                                                                                                                                                          academic year. NIFA used this report to
                                            proposed, based on the comment                          Associate Administrator, Agricultural
                                                                                                    Marketing Service.
                                                                                                                                                          identify HSIs that conferred a degree in
                                            received.                                                                                                     an instructional program that appears in
                                               A small business guide on complying                  [FR Doc. 2016–02067 Filed 2–2–16; 8:45 am]
                                                                                                                                                          Appendix A of 7 CFR part 3434 and to
                                            with fruit, vegetable, and specialty crop               BILLING CODE 3410–02–P
                                                                                                                                                          confirm that over the 2012–13 and
                                            marketing agreements and orders may                                                                           2013–14 academic years at least 15% of
                                            be viewed at: http://www.ams.usda.gov/                                                                        the degrees in agriculture-related fields
                                                                                                    DEPARTMENT OF AGRICULTURE
                                            rules-regulations/moa/small-businesses.                                                                       were awarded to Hispanic students.
                                            Any questions about the compliance                      National Institute of Food and                        NIFA further confirmed that these
                                            guide should be sent to Jeffrey Smutny                  Agriculture                                           institutions were nationally accredited
                                            at the previously mentioned address in                                                                        and were not listed in the System for
                                            the FOR FURTHER INFORMATION CONTACT                     7 CFR Part 3434                                       Award Management (https://
                                            section.                                                                                                      www.sam.gov) with exclusions.
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                                               After consideration of all relevant                  RIN 0524–AA39                                            The updated list of HSACUs is based
                                            material presented, including the                                                                             on (1) completions data from 2012–13
                                                                                                    Hispanic-Serving Agricultural Colleges
                                            information and recommendation                                                                                and 2013–14, and (2) enrollment data
                                                                                                    and Universities (HSACU)
                                            submitted by the Committee and other                                                                          from Fall 2014. NIFA identified 101
                                            available information, it is hereby found               AGENCY: National Institute of Food and                institutions that met the eligibility
                                            that this rule, as hereinafter set forth,               Agriculture (NIFA), USDA.                             criteria to receive HSACU certification


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Document Created: 2016-02-03 00:39:59
Document Modified: 2016-02-03 00:39:59
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 February 4, 2016.
ContactKathie Notoro, Marketing Specialist, or Martin Engeler, 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 Jeffrey Smutny, 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]
FR Citation81 FR 5573 
CFR AssociatedKiwifruit; Marketing Agreements and Reporting and Recordkeeping Requirements

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