81_FR_64968 81 FR 64785 - Cherries Grown in Designated Counties in Washington; Increased Assessment Rate

81 FR 64785 - Cherries Grown in Designated Counties in Washington; Increased Assessment Rate

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 81, Issue 183 (September 21, 2016)

Page Range64785-64787
FR Document2016-22740

This proposed rule would implement a recommendation from the Washington Cherry Marketing Committee (Committee) to increase the assessment rate established for the 2016-2017 and subsequent fiscal periods from $0.15 to $0.25 per ton of Washington cherries handled. The Committee locally administers the marketing order and is comprised of growers and handlers of cherries operating within the production area. Assessments upon cherry handlers are used by the Committee to fund reasonable and necessary expenses of the marketing order. The fiscal period begins April 1 and ends March 31. The assessment rate would remain in effect indefinitely unless modified, suspended or terminated.

Federal Register, Volume 81 Issue 183 (Wednesday, September 21, 2016)
[Federal Register Volume 81, Number 183 (Wednesday, September 21, 2016)]
[Proposed Rules]
[Pages 64785-64787]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-22740]


========================================================================
Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

========================================================================


Federal Register / Vol. 81, No. 183 / Wednesday, September 21, 2016 / 
Proposed Rules

[[Page 64785]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 923

[Doc. No. AMS-SC-16-0077; SC16-923-1 PR]


Cherries Grown in Designated Counties in Washington; Increased 
Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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

SUMMARY: This proposed rule would implement a recommendation from the 
Washington Cherry Marketing Committee (Committee) to increase the 
assessment rate established for the 2016-2017 and subsequent fiscal 
periods from $0.15 to $0.25 per ton of Washington cherries handled. The 
Committee locally administers the marketing order and is comprised of 
growers and handlers of cherries operating within the production area. 
Assessments upon cherry handlers are used by the Committee to fund 
reasonable and necessary expenses of the marketing order. The fiscal 
period begins April 1 and ends March 31. The assessment rate would 
remain in effect indefinitely unless modified, suspended or terminated.

DATES: Comments must be received by October 6, 2016.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposed rule. Comments must be sent to the Docket 
Clerk, Marketing Order and Agreement Division, Specialty Crops Program, 
AMS, USDA, 1400 Independence Avenue SW., STOP 0237, Washington, DC 
20250-0237; Fax: (202) 720-8938; or internet: http://www.regulations.gov. Comments should reference the document number and 
the date and page number of this issue of the Federal Register and will 
be made available for public inspection in the Office of the Docket 
Clerk during regular business hours, or can be viewed at: http://www.regulations.gov. All comments submitted in response to this 
proposed rule will be included in the record and will be made available 
to the public. Please be advised that the identity of the individuals 
or entities submitting the comments will be made public on the internet 
at the address provided above.

FOR FURTHER INFORMATION CONTACT: Teresa Hutchinson or Gary D. Olson, 
Northwest Marketing Field Office, Marketing Order and Agreement 
Division, Specialty Crops Program, AMS, USDA; Telephone: (503) 326-
2724, Fax: (503) 326-7440, or Email: [email protected] or 
[email protected].
    Small businesses may request information on complying with this 
regulation by contacting Richard Lower, Marketing Order and Agreement 
Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue 
SW., STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-2491, 
Fax: (202) 720-8938, or Email: [email protected].

SUPPLEMENTARY INFORMATION: This proposed rule is issued under Marketing 
Order No. 923, as amended (7 CFR part 923), regulating the handling of 
cherries grown in designated counties in Washington, hereinafter 
referred to as the ``order.'' The order is effective under the 
Agricultural Marketing Agreement Act of 1937, as amended (7 U.S.C. 601-
674), hereinafter referred to as the ``Act.''
    The Department of Agriculture (USDA) is issuing this proposed rule 
in conformance with Executive Orders 12866, 13563, and 13175.
    This proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. Under the order now in effect, Washington cherry 
handlers are subject to assessments. Funds to administer the order are 
derived from such assessments. It is intended that the assessment rate, 
as proposed herein, would be applicable to all assessable Washington 
cherries beginning April 1, 2016, and continue until amended, 
suspended, or terminated.
    The Act provides that administrative proceedings must be exhausted 
before parties may file suit in court. Under section 608c(15)(A) of the 
Act, any handler subject to an order may file with USDA a petition 
stating that the order, any provision of the order, or any obligation 
imposed in connection with the order is not in accordance with law and 
request a modification of the order or to be exempted therefrom. Such 
handler is afforded the opportunity for a hearing on the petition. 
After the hearing, USDA would rule on the petition. The Act provides 
that the district court of the United States in any district in which 
the handler is an inhabitant, or has his or her principal place of 
business, has jurisdiction to review USDA's ruling on the petition, 
provided an action is filed not later than 20 days after the date of 
the entry of the ruling.
    This proposed rule would increase the assessment rate for the 2016-
2017 and subsequent fiscal periods from $0.15 to $0.25 per ton of 
Washington cherries.
    The 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 growers and handlers of Washington cherries. They are 
familiar with the Committee's needs, and with the costs for goods and 
services in their local area, and are thus in a position to formulate 
an appropriate budget and assessment rate. The assessment rate is 
formulated and discussed in a public meeting. Thus, all directly 
affected persons have an opportunity to participate and provide input.
    For the 2013-2014 and subsequent fiscal periods, the Committee 
recommended, and the USDA approved, an assessment rate of $0.15 per ton 
of Washington cherries 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 May 18, 2016, and unanimously recommended 
expenditures of $57,150 for the 2016-2017 fiscal period. In comparison, 
the previous fiscal period's budgeted expenditures were $59,750. The 
Committee also unanimously recommended an assessment rate of $0.25 per 
ton of Washington cherries. The recommended assessment rate of $0.25 is 
$0.10 higher than the rate currently in effect.

[[Page 64786]]

    The expenditures recommended by the Committee for the 2016-2017 
fiscal period include $25,000 for the management fee; $7,000 for 
compliance; $5,000 for the data management fee; $5,000 for accounting 
administration; $5,000 for research; $4,000 for Committee travel; 
$3,000 for an audit; and $3,150 for miscellaneous other expenses. In 
comparison, expenditures for the 2015-2016 fiscal period were $25,000 
for the management fee; $7,000 for compliance; $5,000 for the data 
management fee; $7,000 for accounting administration; $5,000 for 
research; $4,000 for Committee travel; $4,000 for an audit; and $2,750 
for miscellaneous other expenses.
    Committee members estimated the 2016 fresh cherry production to be 
approximately 150,000 tons, which would be less than the 2015 
production of 165,358 tons by 15,358 tons. However, cherry production 
tends to fluctuate due to the effects of weather, pollination, and tree 
health. The Committee's recommended assessment rate was derived by 
dividing the 2016-2017 anticipated expenses by the expected shipments 
of Washington cherries, while also taking into account the Committee's 
monetary reserve. The recommended assessment rate of $0.25 per ton, 
when multiplied by the 150,000 tons of estimated 2016 Washington cherry 
shipments, is expected to generate $37,500 in handler assessments. The 
projected revenue from handler assessments, together with funds from 
the Committee's monetary reserve, would be adequate to cover the 2016-
2017 budgeted expenses of $57,150. The Committee expects its monetary 
reserve to decrease from $49,661 at the beginning of the 2016-2017 
fiscal period to approximately $30,011 at the end of the 2016-2017 
fiscal period. That amount would be within the provisions of the order 
and would provide the Committee with greater ability to absorb 
fluctuations in assessment income and expenses into the future.
    The proposed assessment rate would continue in effect indefinitely 
unless modified, suspended, or terminated by USDA upon recommendation 
and information submitted by the Committee or other available 
information.
    Although this assessment rate would be in effect for an indefinite 
period, the Committee would continue to meet prior to or during each 
fiscal period to recommend a budget of expenses and consider 
recommendations for modification of the assessment rate. The dates and 
times of the Committee meetings are available from the Committee and 
USDA. Committee meetings are open to the public and interested persons 
may express their views at these meetings. USDA would evaluate 
Committee recommendations and other available information to determine 
whether modification of the assessment rate is needed. Further 
rulemaking would be undertaken as necessary. The Committee's 2016-2017 
budget and those for subsequent fiscal periods would be reviewed and, 
as appropriate, approved by USDA.

Initial Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS) 
has considered the economic impact of this proposed rule on small 
entities. Accordingly, AMS has prepared this initial regulatory 
flexibility analysis.
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened. Marketing orders issued 
pursuant to the Act, and the rules issued thereunder, are unique in 
that they are brought about through group action of essentially small 
entities acting on their own behalf.
    There are 53 handlers of Washington sweet cherries subject to 
regulation under the order and approximately 1,500 growers in the 
regulated production area. Small agricultural service firms are defined 
by the Small Business Administration (13 CFR 121.201) as those having 
annual receipts of less than $7,500,000, and small agricultural growers 
are defined as those having annual receipts of less than $750,000.
    National Agricultural Statistics Service has prepared a preliminary 
report for the 2015 shipping season showing that prices for the 171,600 
tons of sweet cherries that entered the fresh market averaged $2,380 
per ton. Based on the number of growers in the production area (1,500), 
the average grower revenue from the sale of sweet cherries in 2015 can 
therefore be estimated at approximately $272,272 per year. In addition, 
the Committee reports that most of the industry's 53 handlers reported 
gross receipts of less than $7,500,000 from the sale of fresh sweet 
cherries last fiscal period. Thus, the majority of growers and handlers 
of Washington sweet cherries may be classified as small entities.
    This proposal would increase the assessment rate collected from 
handlers, for the 2016-2017 and subsequent fiscal periods from $0.15 to 
$0.25 per ton of Washington cherries handled. The Committee unanimously 
recommended 2016-2017 expenditures of $57,150 and an assessment rate of 
$0.25 per ton. The proposed assessment rate of $0.25 is $0.10 higher 
than the rate established for the 2013-2014 fiscal period.
    The 2016-2017 Washington cherry crop is estimated at 150,000 tons. 
At the proposed $0.25 per ton assessment rate, the Committee 
anticipates that assessment income of approximately $37,500, along with 
reserve funds, would be adequate to cover budgeted expenses for the 
2016-2017 fiscal period. With the proposed assessment rate and budgeted 
expense level, the Committee anticipates that $19,650 would need to be 
deducted from the monetary reserve. As such, reserve funds are 
estimated to be at $30,011 on March 31, 2017. That reserve level is 
within the maximum permitted by the order of approximately one fiscal 
period's operational expenses (Sec.  923.42(a)(2)).
    The expenditures recommended by the Committee for the 2016-2017 
fiscal period include $25,000 for the management fee; $7,000 for 
compliance; $5,000 for the data management fee; $5,000 for accounting 
administration; $5,000 for research; $4,000 for Committee travel; 
$3,000 for the audit; and $3,150 for miscellaneous other expenses.
    In comparison, expenditures for the 2015-2016 fiscal period were 
$25,000 for the management fee; $7,000 for compliance; $5,000 for the 
data management fee; $7,000 for accounting administration; $5,000 for 
research; $4,000 for Committee travel; $4,000 for the audit; and $2,750 
for miscellaneous other expenses.
    The Committee discussed alternatives to this action, including 
recommending alternative expenditure levels and assessment rates. 
Although lower assessment rates were considered, none were selected 
because they would not have generated sufficient income to administer 
the order.
    A review of historical data and preliminary information pertaining 
to the upcoming fiscal period indicates that the grower price for the 
2016-2017 fiscal period could average $2,380 per ton of sweet cherries. 
Therefore, the estimated assessment revenue for the 2016-2017 fiscal 
period, as a percentage of total grower revenue, is approximately 0.01 
percent.
    This action would increase the assessment obligation imposed on 
handlers. While assessments impose some additional costs on handlers, 
the costs are minimal and uniform on all handlers. Some of the 
additional costs

[[Page 64787]]

may be passed on to growers. However, these costs would be offset by 
the benefits derived by the operation of the order.
    In addition, the Committee's meeting was widely publicized 
throughout the Washington cherry industry and all interested persons 
were invited to attend the meeting and participate in Committee 
deliberations on all issues. Like all Committee meetings, the May 18, 
2016, meeting was a public meeting and all entities, both large and 
small, were able to express views on this issue. Finally, interested 
persons are invited to submit comments on this proposed rule, including 
the regulatory and informational impacts of this action on small 
businesses.
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the order's information collection requirements have been 
previously approved by the Office of Management and Budget (OMB) and 
assigned OMB No. 0581-0189. No changes in those requirements are 
necessary as a result of this action. Should any changes become 
necessary, they would be submitted to OMB for approval.
    This proposed rule would not impose any additional reporting or 
recordkeeping requirements on either small or large Washington cherry 
handlers. As with all Federal marketing order programs, reports and 
forms are periodically reviewed to reduce information requirements and 
duplication by industry and public sector agencies.
    AMS is committed to complying with the E-Government Act, to promote 
the use of the internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services, and for other purposes.
    USDA has not identified any relevant Federal rules that duplicate, 
overlap or conflict with this action.
    A small business guide on complying with fruit, vegetable, and 
specialty crop marketing agreements and orders may be viewed at: http://www.ams.usda.gov/rules-regulations/moa/small-businesses. Any questions 
about the compliance guide should be sent to Richard Lower at the 
previously mentioned address in the FOR FURTHER INFORMATION CONTACT 
section.
    A 15-day comment period is provided to allow interested persons to 
respond to this proposed rule. Fifteen days is deemed appropriate 
because: (1) The 2016-2017 fiscal period began on April 1, 2016, and 
the order requires that the assessment rate for each fiscal period 
apply to all assessable Washington cherries handled during such fiscal 
period; (2) the Committee needs to have sufficient funds to pay its 
expenses, which are incurred on a continuous basis; (3) handlers are 
already shipping Washington cherries from the 2016 crop; and (4) 
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.

List of Subjects in 7 CFR Part 923

    Cherries, Marketing agreements, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 923 is 
proposed to be amended as follows:

PART 923--CHERRIES GROWN IN DESIGNATED COUNTIES IN WASHINGTON

0
 1. The authority citation for 7 CFR part 923 continues to read as 
follows:

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

0
 2. Section 923.236 is revised to read as follows:


Sec.  923.236  Assessment rate.

    On and after April 1, 2016, an assessment rate of $0.25 per ton is 
established for the Washington Cherry Marketing Committee.

    Dated: September 16, 2016.
Elanor Starmer,
Administrator, Agricultural Marketing Service.
[FR Doc. 2016-22740 Filed 9-20-16; 8:45 am]
 BILLING CODE 3410-02-P



                                                                                                                                                                                               64785

                                               Proposed Rules                                                                                                Federal Register
                                                                                                                                                             Vol. 81, No. 183

                                                                                                                                                             Wednesday, September 21, 2016



                                               This section of the FEDERAL REGISTER                    hours, or can be viewed at: http://                   obligation imposed in connection with
                                               contains notices to the public of the proposed          www.regulations.gov. All comments                     the order is not in accordance with law
                                               issuance of rules and regulations. The                  submitted in response to this proposed                and request a modification of the order
                                               purpose of these notices is to give interested          rule will be included in the record and               or to be exempted therefrom. Such
                                               persons an opportunity to participate in the            will be made available to the public.                 handler is afforded the opportunity for
                                               rule making prior to the adoption of the final
                                               rules.
                                                                                                       Please be advised that the identity of the            a hearing on the petition. After the
                                                                                                       individuals or entities submitting the                hearing, USDA would rule on the
                                                                                                       comments will be made public on the                   petition. The Act provides that the
                                               DEPARTMENT OF AGRICULTURE                               internet at the address provided above.               district court of the United States in any
                                                                                                       FOR FURTHER INFORMATION CONTACT:                      district in which the handler is an
                                               Agricultural Marketing Service                          Teresa Hutchinson or Gary D. Olson,                   inhabitant, or has his or her principal
                                                                                                       Northwest Marketing Field Office,                     place of business, has jurisdiction to
                                               7 CFR Part 923                                          Marketing Order and Agreement                         review USDA’s ruling on the petition,
                                               [Doc. No. AMS–SC–16–0077; SC16–923–1                    Division, Specialty Crops Program,                    provided an action is filed not later than
                                               PR]                                                     AMS, USDA; Telephone: (503) 326–                      20 days after the date of the entry of the
                                                                                                       2724, Fax: (503) 326–7440, or Email:                  ruling.
                                               Cherries Grown in Designated                            Teresa.Hutchinson@ams.usda.gov or                        This proposed rule would increase
                                               Counties in Washington; Increased                       GaryD.Olson@ams.usda.gov.                             the assessment rate for the 2016–2017
                                               Assessment Rate                                            Small businesses may request                       and subsequent fiscal periods from
                                                                                                       information on complying with this                    $0.15 to $0.25 per ton of Washington
                                               AGENCY:  Agricultural Marketing Service,                regulation by contacting Richard Lower,               cherries.
                                               USDA.                                                   Marketing Order and Agreement
                                               ACTION: Proposed rule.
                                                                                                                                                                The order provides authority for the
                                                                                                       Division, Specialty Crops Program,                    Committee, with the approval of USDA,
                                                                                                       AMS, USDA, 1400 Independence                          to formulate an annual budget of
                                               SUMMARY:   This proposed rule would                     Avenue SW., STOP 0237, Washington,
                                               implement a recommendation from the                                                                           expenses and collect assessments from
                                                                                                       DC 20250–0237; Telephone: (202) 720–                  handlers to administer the program. The
                                               Washington Cherry Marketing                             2491, Fax: (202) 720–8938, or Email:
                                               Committee (Committee) to increase the                                                                         members of the Committee are growers
                                                                                                       Richard.Lower@ams.usda.gov.                           and handlers of Washington cherries.
                                               assessment rate established for the
                                                                                                       SUPPLEMENTARY INFORMATION: This                       They are familiar with the Committee’s
                                               2016–2017 and subsequent fiscal
                                               periods from $0.15 to $0.25 per ton of                  proposed rule is issued under Marketing               needs, and with the costs for goods and
                                               Washington cherries handled. The                        Order No. 923, as amended (7 CFR part                 services in their local area, and are thus
                                               Committee locally administers the                       923), regulating the handling of cherries             in a position to formulate an appropriate
                                               marketing order and is comprised of                     grown in designated counties in                       budget and assessment rate. The
                                               growers and handlers of cherries                        Washington, hereinafter referred to as                assessment rate is formulated and
                                               operating within the production area.                   the ‘‘order.’’ The order is effective under           discussed in a public meeting. Thus, all
                                               Assessments upon cherry handlers are                    the Agricultural Marketing Agreement                  directly affected persons have an
                                               used by the Committee to fund                           Act of 1937, as amended (7 U.S.C. 601–                opportunity to participate and provide
                                               reasonable and necessary expenses of                    674), hereinafter referred to as the                  input.
                                               the marketing order. The fiscal period                  ‘‘Act.’’
                                                                                                          The Department of Agriculture                         For the 2013–2014 and subsequent
                                               begins April 1 and ends March 31. The                                                                         fiscal periods, the Committee
                                                                                                       (USDA) is issuing this proposed rule in
                                               assessment rate would remain in effect                                                                        recommended, and the USDA approved,
                                                                                                       conformance with Executive Orders
                                               indefinitely unless modified, suspended                                                                       an assessment rate of $0.15 per ton of
                                                                                                       12866, 13563, and 13175.
                                               or terminated.                                             This proposed rule has been reviewed               Washington cherries that would
                                               DATES: Comments must be received by                     under Executive Order 12988, Civil                    continue in effect from fiscal period to
                                               October 6, 2016.                                        Justice Reform. Under the order now in                fiscal period unless modified,
                                               ADDRESSES: Interested persons are                       effect, Washington cherry handlers are                suspended, or terminated by USDA
                                               invited to submit written comments                      subject to assessments. Funds to                      upon recommendation and information
                                               concerning this proposed rule.                          administer the order are derived from                 submitted by the Committee or other
                                               Comments must be sent to the Docket                     such assessments. It is intended that the             information available to USDA.
                                               Clerk, Marketing Order and Agreement                    assessment rate, as proposed herein,                     The Committee met on May 18, 2016,
                                               Division, Specialty Crops Program,                      would be applicable to all assessable                 and unanimously recommended
                                               AMS, USDA, 1400 Independence                            Washington cherries beginning April 1,                expenditures of $57,150 for the 2016–
                                               Avenue SW., STOP 0237, Washington,                      2016, and continue until amended,                     2017 fiscal period. In comparison, the
                                               DC 20250–0237; Fax: (202) 720–8938; or                  suspended, or terminated.                             previous fiscal period’s budgeted
Lhorne on DSK30JT082PROD with PROPOSALS




                                               internet: http://www.regulations.gov.                      The Act provides that administrative               expenditures were $59,750. The
                                               Comments should reference the                           proceedings must be exhausted before                  Committee also unanimously
                                               document number and the date and                        parties may file suit in court. Under                 recommended an assessment rate of
                                               page number of this issue of the Federal                section 608c(15)(A) of the Act, any                   $0.25 per ton of Washington cherries.
                                               Register and will be made available for                 handler subject to an order may file                  The recommended assessment rate of
                                               public inspection in the Office of the                  with USDA a petition stating that the                 $0.25 is $0.10 higher than the rate
                                               Docket Clerk during regular business                    order, any provision of the order, or any             currently in effect.


                                          VerDate Sep<11>2014   13:24 Sep 20, 2016   Jkt 238001   PO 00000   Frm 00001   Fmt 4702   Sfmt 4702   E:\FR\FM\21SEP1.SGM   21SEP1


                                               64786             Federal Register / Vol. 81, No. 183 / Wednesday, September 21, 2016 / Proposed Rules

                                                  The expenditures recommended by                      Committee and USDA. Committee                         Washington cherries handled. The
                                               the Committee for the 2016–2017 fiscal                  meetings are open to the public and                   Committee unanimously recommended
                                               period include $25,000 for the                          interested persons may express their                  2016–2017 expenditures of $57,150 and
                                               management fee; $7,000 for compliance;                  views at these meetings. USDA would                   an assessment rate of $0.25 per ton. The
                                               $5,000 for the data management fee;                     evaluate Committee recommendations                    proposed assessment rate of $0.25 is
                                               $5,000 for accounting administration;                   and other available information to                    $0.10 higher than the rate established
                                               $5,000 for research; $4,000 for                         determine whether modification of the                 for the 2013–2014 fiscal period.
                                               Committee travel; $3,000 for an audit;                  assessment rate is needed. Further                       The 2016–2017 Washington cherry
                                               and $3,150 for miscellaneous other                      rulemaking would be undertaken as                     crop is estimated at 150,000 tons. At the
                                               expenses. In comparison, expenditures                   necessary. The Committee’s 2016–2017                  proposed $0.25 per ton assessment rate,
                                               for the 2015–2016 fiscal period were                    budget and those for subsequent fiscal                the Committee anticipates that
                                               $25,000 for the management fee; $7,000                  periods would be reviewed and, as                     assessment income of approximately
                                               for compliance; $5,000 for the data                     appropriate, approved by USDA.                        $37,500, along with reserve funds,
                                               management fee; $7,000 for accounting                                                                         would be adequate to cover budgeted
                                                                                                       Initial Regulatory Flexibility Analysis               expenses for the 2016–2017 fiscal
                                               administration; $5,000 for research;
                                               $4,000 for Committee travel; $4,000 for                   Pursuant to requirements set forth in               period. With the proposed assessment
                                               an audit; and $2,750 for miscellaneous                  the Regulatory Flexibility Act (RFA) (5               rate and budgeted expense level, the
                                               other expenses.                                         U.S.C. 601–612), the Agricultural                     Committee anticipates that $19,650
                                                  Committee members estimated the                      Marketing Service (AMS) has                           would need to be deducted from the
                                               2016 fresh cherry production to be                      considered the economic impact of this                monetary reserve. As such, reserve
                                               approximately 150,000 tons, which                       proposed rule on small entities.                      funds are estimated to be at $30,011 on
                                               would be less than the 2015 production                  Accordingly, AMS has prepared this                    March 31, 2017. That reserve level is
                                               of 165,358 tons by 15,358 tons.                         initial regulatory flexibility analysis.              within the maximum permitted by the
                                               However, cherry production tends to                       The purpose of the RFA is to fit                    order of approximately one fiscal
                                               fluctuate due to the effects of weather,                regulatory actions to the scale of                    period’s operational expenses
                                               pollination, and tree health. The                       businesses subject to such actions in                 (§ 923.42(a)(2)).
                                               Committee’s recommended assessment                      order that small businesses will not be                  The expenditures recommended by
                                               rate was derived by dividing the 2016–                  unduly or disproportionately burdened.                the Committee for the 2016–2017 fiscal
                                               2017 anticipated expenses by the                        Marketing orders issued pursuant to the               period include $25,000 for the
                                               expected shipments of Washington                        Act, and the rules issued thereunder, are             management fee; $7,000 for compliance;
                                               cherries, while also taking into account                unique in that they are brought about                 $5,000 for the data management fee;
                                               the Committee’s monetary reserve. The                   through group action of essentially                   $5,000 for accounting administration;
                                               recommended assessment rate of $0.25                    small entities acting on their own                    $5,000 for research; $4,000 for
                                               per ton, when multiplied by the 150,000                 behalf.                                               Committee travel; $3,000 for the audit;
                                               tons of estimated 2016 Washington                         There are 53 handlers of Washington                 and $3,150 for miscellaneous other
                                               cherry shipments, is expected to                        sweet cherries subject to regulation                  expenses.
                                               generate $37,500 in handler                             under the order and approximately                        In comparison, expenditures for the
                                               assessments. The projected revenue                      1,500 growers in the regulated                        2015–2016 fiscal period were $25,000
                                               from handler assessments, together with                 production area. Small agricultural                   for the management fee; $7,000 for
                                               funds from the Committee’s monetary                     service firms are defined by the Small                compliance; $5,000 for the data
                                               reserve, would be adequate to cover the                 Business Administration (13 CFR                       management fee; $7,000 for accounting
                                               2016–2017 budgeted expenses of                          121.201) as those having annual receipts              administration; $5,000 for research;
                                               $57,150. The Committee expects its                      of less than $7,500,000, and small                    $4,000 for Committee travel; $4,000 for
                                               monetary reserve to decrease from                       agricultural growers are defined as those             the audit; and $2,750 for miscellaneous
                                               $49,661 at the beginning of the 2016–                   having annual receipts of less than                   other expenses.
                                               2017 fiscal period to approximately                     $750,000.                                                The Committee discussed alternatives
                                               $30,011 at the end of the 2016–2017                       National Agricultural Statistics                    to this action, including recommending
                                               fiscal period. That amount would be                     Service has prepared a preliminary                    alternative expenditure levels and
                                               within the provisions of the order and                  report for the 2015 shipping season                   assessment rates. Although lower
                                               would provide the Committee with                        showing that prices for the 171,600 tons              assessment rates were considered, none
                                               greater ability to absorb fluctuations in               of sweet cherries that entered the fresh              were selected because they would not
                                               assessment income and expenses into                     market averaged $2,380 per ton. Based                 have generated sufficient income to
                                               the future.                                             on the number of growers in the                       administer the order.
                                                  The proposed assessment rate would                   production area (1,500), the average                     A review of historical data and
                                               continue in effect indefinitely unless                  grower revenue from the sale of sweet                 preliminary information pertaining to
                                               modified, suspended, or terminated by                   cherries in 2015 can therefore be                     the upcoming fiscal period indicates
                                               USDA upon recommendation and                            estimated at approximately $272,272                   that the grower price for the 2016–2017
                                               information submitted by the                            per year. In addition, the Committee                  fiscal period could average $2,380 per
                                               Committee or other available                            reports that most of the industry’s 53                ton of sweet cherries. Therefore, the
                                               information.                                            handlers reported gross receipts of less              estimated assessment revenue for the
                                                  Although this assessment rate would                  than $7,500,000 from the sale of fresh                2016–2017 fiscal period, as a percentage
                                               be in effect for an indefinite period, the              sweet cherries last fiscal period. Thus,              of total grower revenue, is
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                                               Committee would continue to meet                        the majority of growers and handlers of               approximately 0.01 percent.
                                               prior to or during each fiscal period to                Washington sweet cherries may be                         This action would increase the
                                               recommend a budget of expenses and                      classified as small entities.                         assessment obligation imposed on
                                               consider recommendations for                              This proposal would increase the                    handlers. While assessments impose
                                               modification of the assessment rate. The                assessment rate collected from handlers,              some additional costs on handlers, the
                                               dates and times of the Committee                        for the 2016–2017 and subsequent fiscal               costs are minimal and uniform on all
                                               meetings are available from the                         periods from $0.15 to $0.25 per ton of                handlers. Some of the additional costs


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                                                                 Federal Register / Vol. 81, No. 183 / Wednesday, September 21, 2016 / Proposed Rules                                         64787

                                               may be passed on to growers. However,                   cherries handled during such fiscal                   proposes and requests comments on the
                                               these costs would be offset by the                      period; (2) the Committee needs to have               Agency’s implementation of section 26
                                               benefits derived by the operation of the                sufficient funds to pay its expenses,                 of the Stevenson-Wydler Technology
                                               order.                                                  which are incurred on a continuous                    Innovation Act of 1980 (the ‘‘Stevenson-
                                                  In addition, the Committee’s meeting                 basis; (3) handlers are already shipping              Wydler Act’’), enacted as part of the
                                               was widely publicized throughout the                    Washington cherries from the 2016                     America COMPETES Reauthorization
                                               Washington cherry industry and all                      crop; and (4) handlers are aware of this              Act of 2010 (‘‘COMPETES Act’’). The
                                               interested persons were invited to                      action, which was unanimously                         Stevenson-Wydler Act authorizes EDA
                                               attend the meeting and participate in                   recommended by the Committee at a                     to provide loan guarantees for
                                               Committee deliberations on all issues.                  public meeting and is similar to other                obligations to small- and medium-sized
                                               Like all Committee meetings, the May                    assessment rate actions issued in past                manufacturers for the use or production
                                               18, 2016, meeting was a public meeting                  years.                                                of innovative technologies. These
                                               and all entities, both large and small,                                                                       guarantees will enable innovative
                                               were able to express views on this issue.               List of Subjects in 7 CFR Part 923
                                                                                                                                                             technology manufacturers to obtain
                                               Finally, interested persons are invited to                Cherries, Marketing agreements,                     capital otherwise unavailable to them.
                                               submit comments on this proposed rule,                  Reporting and recordkeeping                           DATES: Written comments on this NPRM
                                               including the regulatory and                            requirements.                                         must be received by EDA’s Office of the
                                               informational impacts of this action on                   For the reasons set forth in the                    Chief Counsel no later than 5 p.m.
                                               small businesses.                                       preamble, 7 CFR part 923 is proposed to               eastern time on December 20, 2016.
                                                  In accordance with the Paperwork                     be amended as follows:                                ADDRESSES: Comments on the NPRM
                                               Reduction Act of 1995 (44 U.S.C.
                                               Chapter 35), the order’s information                                                                          may be submitted through any of the
                                                                                                       PART 923—CHERRIES GROWN IN                            following methods:
                                               collection requirements have been                       DESIGNATED COUNTIES IN
                                               previously approved by the Office of                                                                             • Federal Rulemaking Portal: http://
                                                                                                       WASHINGTON                                            www.regulations.gov. Follow the
                                               Management and Budget (OMB) and
                                               assigned OMB No. 0581–0189. No                                                                                instructions for submitting comments.
                                                                                                       ■ 1. The authority citation for 7 CFR
                                               changes in those requirements are                                                                             EDA will accept anonymous comments
                                                                                                       part 923 continues to read as follows:
                                               necessary as a result of this action.                                                                         (enter ‘‘N/A’’ in the required fields if
                                                                                                           Authority: 7 U.S.C. 601–674.                      you wish to remain anonymous).
                                               Should any changes become necessary,
                                               they would be submitted to OMB for                      ■ 2. Section 923.236 is revised to read                  • Agency Web site: http://
                                               approval.                                               as follows:                                           www.eda.gov/. EDA has created an
                                                  This proposed rule would not impose                                                                        online feature for submitting comments.
                                                                                                       § 923.236    Assessment rate.                         Follow the instructions at http://
                                               any additional reporting or
                                               recordkeeping requirements on either                      On and after April 1, 2016, an                      www.eda.gov/.
                                               small or large Washington cherry                        assessment rate of $0.25 per ton is                      • Mail: Economic Development
                                               handlers. As with all Federal marketing                 established for the Washington Cherry                 Administration, Office of the Chief
                                               order programs, reports and forms are                   Marketing Committee.                                  Counsel, U.S. Department of Commerce,
                                               periodically reviewed to reduce                           Dated: September 16, 2016.
                                                                                                                                                             1401 Constitution Avenue NW., Suite
                                               information requirements and                                                                                  72023, Washington, DC 20230. Please
                                                                                                       Elanor Starmer,
                                               duplication by industry and public                                                                            indicate ‘‘Comments on EDA’s
                                                                                                       Administrator, Agricultural Marketing                 regulations’’ and Docket No.
                                               sector agencies.                                        Service.
                                                  AMS is committed to complying with                                                                         150826785–5785–01 on the envelope.
                                                                                                       [FR Doc. 2016–22740 Filed 9–20–16; 8:45 am]              All comments received are a part of
                                               the E-Government Act, to promote the                    BILLING CODE 3410–02–P
                                               use of the internet and other                                                                                 the public record and will generally be
                                               information technologies to provide                                                                           posted for public viewing on
                                               increased opportunities for citizen                                                                           www.regulations.gov without change.
                                               access to Government information and                    DEPARTMENT OF COMMERCE                                All personal identifying information
                                               services, and for other purposes.                                                                             (e.g., name, address, etc.), confidential
                                                                                                       Economic Development Administration                   business information, or otherwise
                                                  USDA has not identified any relevant
                                               Federal rules that duplicate, overlap or                                                                      sensitive information submitted
                                                                                                       13 CFR Part 311                                       voluntarily by the sender will be
                                               conflict with this action.
                                                  A small business guide on complying                  [Docket No.: 150826785–5785–01]                       publicly accessible.
                                               with fruit, vegetable, and specialty crop                                                                     FOR FURTHER INFORMATION CONTACT:
                                                                                                       RIN 0610–AA67                                         Rachel A. Wallace, Attorney-Advisor,
                                               marketing agreements and orders may
                                               be viewed at: http://www.ams.usda.gov/                                                                        Office of the Chief Counsel, Economic
                                                                                                       Innovative Technologies in
                                               rules-regulations/moa/small-businesses.                                                                       Development Administration, U.S.
                                                                                                       Manufacturing Loan Guarantee
                                               Any questions about the compliance                                                                            Department of Commerce, 1401
                                                                                                       Program
                                               guide should be sent to Richard Lower                                                                         Constitution Avenue NW., Suite 72023,
                                               at the previously mentioned address in                  AGENCY:  Economic Development                         Washington, DC 20230; telephone: (202)
                                               the FOR FURTHER INFORMATION CONTACT                     Administration, U.S. Department of                    482–5443.
                                               section.                                                Commerce.                                             SUPPLEMENTARY INFORMATION:
                                                  A 15-day comment period is provided
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                                                                                                       ACTION: Notice of proposed rulemaking;
                                               to allow interested persons to respond                                                                        Background
                                                                                                       request for public comment.
                                               to this proposed rule. Fifteen days is                                                                          Established under the Public Works
                                               deemed appropriate because: (1) The                     SUMMARY:   Through this notice of                     and Economic Development Act of
                                               2016–2017 fiscal period began on April                  proposed rulemaking (‘‘NPRM’’), the                   1965, as amended (42 U.S.C. 3121 et
                                               1, 2016, and the order requires that the                Economic Development Administration                   seq.) (‘‘PWEDA’’), EDA’s mission is to
                                               assessment rate for each fiscal period                  (‘‘EDA,’’ or ‘‘the Agency’’), U.S.                    lead the Federal economic development
                                               apply to all assessable Washington                      Department of Commerce (‘‘DOC’’),                     agenda by promoting innovation and


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Document Created: 2016-09-21 01:31:38
Document Modified: 2016-09-21 01:31:38
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule.
DatesComments must be received by October 6, 2016.
ContactTeresa Hutchinson or Gary D. Olson, Northwest Marketing Field Office, Marketing Order and Agreement Division, Specialty Crops Program, AMS, USDA; Telephone: (503) 326- 2724, Fax: (503) 326-7440, or Email: [email protected] or [email protected]
FR Citation81 FR 64785 
CFR AssociatedCherries; Marketing Agreements and Reporting and Recordkeeping Requirements

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