81_FR_84733 81 FR 84507 - Tomatoes Grown in Florida; Increased Assessment Rate

81 FR 84507 - Tomatoes Grown in Florida; Increased Assessment Rate

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 81, Issue 226 (November 23, 2016)

Page Range84507-84510
FR Document2016-28259

This proposed rule would implement a recommendation from the Florida Tomato Committee (Committee) to increase the assessment rate established for the 2016-17 and subsequent fiscal periods from $0.03 to $0.035 per 25-pound carton of tomatoes handled under the marketing order (order). The Committee locally administers the order and is comprised of producers of tomatoes operating within the area of production. Assessments upon Florida tomato handlers are used by the Committee to fund reasonable and necessary expenses of the program. The fiscal period begins August 1 and ends July 31. The assessment rate would remain in effect indefinitely unless modified, suspended, or terminated.

Federal Register, Volume 81 Issue 226 (Wednesday, November 23, 2016)
[Federal Register Volume 81, Number 226 (Wednesday, November 23, 2016)]
[Proposed Rules]
[Pages 84507-84510]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-28259]


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

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 966

[Doc. No. AMS-SC-16-0088; SC16-966-1 PR]


Tomatoes Grown in Florida; Increased Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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

SUMMARY: This proposed rule would implement a recommendation from the 
Florida Tomato Committee (Committee) to increase the assessment rate 
established for the 2016-17 and subsequent fiscal periods from $0.03 to 
$0.035 per 25-pound carton of tomatoes handled under the marketing 
order (order). The Committee locally administers the order and is 
comprised of producers of tomatoes operating within the area of 
production. Assessments upon Florida tomato handlers are used by the 
Committee to fund reasonable and necessary expenses of the program. The 
fiscal period begins August 1 and ends July 31. The assessment rate 
would remain in effect indefinitely unless modified, suspended, or 
terminated.

DATES: Comments must be received by December 8, 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 available for public

[[Page 84508]]

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: Steven W. Kauffman, Marketing 
Specialist, or Christian D. Nissen, Regional Director, Southeast 
Marketing Field Office, Marketing Order and Agreement Division, 
Specialty Crops Program, AMS, USDA; Telephone: (863) 324-3375, Fax: 
(863) 291-8614, or Email: Steven.Kauffman@ams.usda.gov or 
Christian.Nissen@ams.usda.gov.
    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: Richard.Lower@ams.usda.gov.

SUPPLEMENTARY INFORMATION: This proposed rule is issued under Marketing 
Agreement No. 125 and Order No. 966, both as amended (7 CFR part 966), 
regulating the handling of tomatoes grown in Florida, 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 marketing order now in effect, Florida 
tomato 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 Florida tomatoes beginning on August 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 established 
for the Committee for the 2016-17 and subsequent fiscal periods from 
$0.03 to $0.035 per 25-pound carton of tomatoes.
    The Florida tomato 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 Florida 
tomatoes. They are familiar with the Committee's needs and with the 
costs of goods and services in their local area and are thus in a 
position to formulate an appropriate budget and assessment rate. The 
assessment rate is formulated and discussed in a public meeting. Thus, 
all directly affected persons have an opportunity to participate and 
provide input.
    For the 2015-16 and subsequent fiscal periods, the Committee 
recommended, and USDA approved, an assessment rate of $0.03 per 25-
pound carton of tomatoes 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 August 16, 2016, and unanimously recommended 
2016-17 expenditures of $1,494,600 and an assessment rate of $0.035 per 
25-pound carton of tomatoes. In comparison, last year's budgeted 
expenditures were $1,513,177. The assessment rate of $0.035 is $0.005 
higher than the rate currently in effect. At the current assessment 
rate, assessment income would equal only $990,000, an amount 
insufficient to cover the Committee's anticipated expenditures of 
$1,494,600. The Committee considered the proposed expenses and 
recommended increasing the assessment rate.
    The major expenditures recommended by the Committee for the 2016-17 
year include $450,000 for salaries, $400,000 for research, and $400,000 
for education and promotion. Budgeted expenses for these items in 2015-
16 were $435,377, $400,000, and $400,000, respectively.
    The assessment rate recommended by the Committee was derived by 
dividing anticipated expenses by expected shipments of Florida 
tomatoes. Florida tomato shipments for the 2016-17 year are estimated 
at 33 million 25-pound cartons, which should provide $1,155,000 in 
assessment income. Income derived from handler assessments, along with 
interest income, block grants, and funds from the Committee's 
authorized reserve, would be adequate to cover budgeted expenses. Funds 
in the reserve (approximately $999,361) would be kept within the 
maximum permitted by the order of no more than approximately one fiscal 
period's expenses as stated in Sec.  966.44.
    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 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 2016-17 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

[[Page 84509]]

small entities acting on their own behalf.
    There are approximately 100 producers of tomatoes in the production 
area and approximately 80 handlers subject to regulation under the 
marketing order. Small agricultural producers are defined by the Small 
Business Administration (SBA) as those having annual receipts less than 
$750,000, and small agricultural service firms are defined as those 
whose annual receipts are less than $7,500,000 (13 CFR 121.201).
    Based on industry and Committee data, the average annual price for 
fresh Florida tomatoes during the 2015-16 season was approximately 
$11.27 per 25-pound carton, and total fresh shipments were 
approximately 28.2 million cartons. Using the average price and 
shipment information, number of handlers, and assuming a normal 
distribution, the majority of handlers have average annual receipts 
below $7,500,000. In addition, based on production data, an estimated 
grower price of $6.25, and the total number of Florida tomato growers, 
the average annual grower revenue is above $750,000. Thus, a majority 
of the handlers of Florida tomatoes may be classified as small entities 
while a majority of the producers may be classified as large entities.
    This proposal would increase the assessment rate established for 
the Committee and collected from handlers for the 2016-17 and 
subsequent fiscal periods from $0.03 to $0.035 per 25-pound carton of 
tomatoes. The Committee unanimously recommended 2016-17 expenditures of 
$1,494,600 and an assessment rate of $0.035 per 25-pound carton 
handled. The proposed assessment rate of $0.035 is $.005 higher than 
the 2015-16 rate. The quantity of assessable tomatoes for the 2016-17 
season is estimated at 33 million 25-pound cartons. Thus, the $0.035 
rate should provide $1,155,000 in assessment income. Income derived 
from handler assessments, along with funds from interest income, MAP 
funds, and block grants, should provide sufficient funds to meet this 
year's anticipated expenses.
    The major expenditures recommended by the Committee for the 2016-17 
year include $450,000 for salaries, $400,000 for research, and $400,000 
for education and promotion. Budgeted expenses for these items in 2015-
16 were $435,377, $400,000, and $400,000, respectively.
    At the current assessment rate, assessment income would equal only 
$990,000, an amount insufficient to cover the Committee's anticipated 
expenditures of $1,494,600. The Committee considered the proposed 
expenses and recommended increasing the assessment rate.
    Prior to arriving at this budget and assessment rate, the Committee 
considered information from various sources, such as the Committee's 
Executive Subcommittee, Research Subcommittee, and Education and 
Promotion Subcommittee. Alternative expenditure levels were discussed 
by these groups, based upon the relative value of various activities to 
the tomato industry. The Committee determined that 2016-17 expenditures 
of $1,494,600 were appropriate, and the recommended assessment rate, 
along with funds from interest income, block grants, and funds from 
reserves, would be adequate to cover budgeted expenses.
    A review of historical information and preliminary information 
pertaining to the upcoming crop year indicates that the average grower 
price for the 2016-17 season could be approximately $6.50 per 25-pound 
carton of tomatoes. Therefore, the estimated assessment revenue for the 
2016-17 crop year as a percentage of total grower revenue would be 
approximately 0.5 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 may be passed on to producers. However, these costs 
would be offset by the benefits derived by the operation of the 
marketing order.
    The Committee's meeting was widely publicized throughout the 
Florida tomato industry, and all interested persons were invited to 
attend the meeting and participate in Committee deliberations on all 
issues. Like all Committee meetings, the August 16, 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. 0581-0178 Vegetable and Specialty Crops. 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 impose no additional reporting or 
recordkeeping requirements on either small or large Florida tomato 
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 2016-17 fiscal period began on August 1, 2016, and the 
marketing order requires that the rate of assessment for each fiscal 
period apply to all assessable Florida tomatoes handled during such 
fiscal period; (2) the Committee needs to have sufficient funds to pay 
its expenses, which are incurred on a continuous basis; and (3) 
handlers are aware of this action, which was unanimously recommended by 
the Committee at a public meeting and is similar to other assessment 
rate actions issued in past years.

List of Subjects in 7 CFR Part 966

    Marketing agreements, Reporting and recordkeeping requirements, 
Tomatoes.

    For the reasons set forth in the preamble, 7 CFR part 966 is 
proposed to be amended as follows:

PART 966--TOMATOES GROWN IN FLORIDA

0
1. The authority citation for 7 CFR part 966 continues to read as 
follows:

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


0
2. Section 966.234 is revised to read as follows:


Sec.  966.234   Assessment rate.

    On and after August 1, 2016, an assessment rate of $0.035 per 25-
pound carton is established for Florida tomatoes.


[[Page 84510]]


    Dated: November 18, 2016.
Elanor Starmer,
Administrator, Agricultural Marketing Service.
[FR Doc. 2016-28259 Filed 11-22-16; 8:45 am]
 BILLING CODE 3410-02-P



                                                                      Federal Register / Vol. 81, No. 226 / Wednesday, November 23, 2016 / Proposed Rules                                                84507

                                                    per hundred units to align it with                      standards. The AFFI member, a major                   Other Processed Food Products (7 CFR
                                                    current industry practices, based on the                processor and distributor of strips and               52.1 to 52.83).
                                                    AFFI request.                                           diced styles of frozen onions, agreed                    AMS is publishing this notice with a
                                                       7. AMS did not modify use of 450                     with most of the proposal, but provided               60-day comment period that will
                                                    gram samples in response to AFFI                        additional suggestions concerning                     provide a sufficient amount of time for
                                                    questioning why we used 450 grams for                   whole, strips, diced, and other styles                interested persons to comment on the
                                                    the individual sample sizes for styles                  containing crown material defects in its              proposed new grade standards for
                                                    other than whole instead of 454 grams,                  comments. The member also suggested                   frozen onions.
                                                    which equals one pound. AMS                             additional provisions for defects, such                 Authority: 7 U.S.C. 1621–1627
                                                    responded that AQLs are based on                        as core material, sprouts, seed stems,
                                                    increments of 50 units so rounding to                                                                           Dated: November 18, 2016.
                                                                                                            and root material; and, suggested that
                                                    the nearest AQL results in using 450                    portions of root crown exceeding 3⁄8                  Elanor Starmer,
                                                    grams per sample unit or approximately                  inch (10 mm) in diameter be listed in a               Administrator, Agricultural Marketing
                                                    one pound. AFFI concurred with use of                   separate category. AMS agreed and                     Service.
                                                    450 gram samples.                                       revised Defect Tables I (whole style) and             [FR Doc. 2016–28255 Filed 11–22–16; 8:45 am]
                                                       8. In response to a request to revise                II (strips, diced, and other styles) of the           BILLING CODE 3410–02–P
                                                    the definitions of ‘‘good appearance’’                  proposed grade standards and
                                                    and ‘‘reasonably good appearance’’                      definitions to include major and minor
                                                    because they were too similar, AMS                      defects in core material, to include root             DEPARTMENT OF AGRICULTURE
                                                    added flowability, brightness, and                      crown, with dimensions listed
                                                    overall appearance to the description of                                                                      Agricultural Marketing Service
                                                                                                            accordingly.
                                                    ‘‘reasonably good appearance,’’ and also                   AMS sent a discussion draft of the
                                                    added the classification and definition                                                                       7 CFR Part 966
                                                                                                            proposed standards to AFFI members
                                                    for ‘‘poor appearance.’’ AFFI agreed to                 for concurrence. AMS received                         [Doc. No. AMS–SC–16–0088; SC16–966–1
                                                    the new terminology and additional                      confirmation in November 2015 that                    PR]
                                                    classification.                                         AFFI members agreed with the changes,
                                                       9. In response to a comment received,                                                                      Tomatoes Grown in Florida; Increased
                                                                                                            and had no additional comments.
                                                    AMS did not include a requirement for                                                                         Assessment Rate
                                                    heat treatment but added that option in                 Conclusions
                                                                                                                                                                  AGENCY:  Agricultural Marketing Service,
                                                    the product description, by means of                       These proposed standards would                     USDA.
                                                    blanching. The revised statement is:                    establish the grade levels ‘‘A,’’ ‘‘B,’’ and          ACTION: Proposed rule.
                                                    ‘‘have been properly prepared, washed,                  ‘‘Substandard,’’ as well as proposed
                                                    blanched or unblanched, and then                        AQL tolerances and acceptance                         SUMMARY:   This proposed rule would
                                                    frozen in accordance with good                          numbers for each quality factor as                    implement a recommendation from the
                                                    commercial practice and maintained at                   defined for each grade level.                         Florida Tomato Committee (Committee)
                                                    temperatures necessary to preserve the                     AMS used the standard format for                   to increase the assessment rate
                                                    product.’’ AFFI concurred with the                      U.S. standards for grades using                       established for the 2016–17 and
                                                    revised product description.                            ‘‘individual attributes.’’ Specifically, the          subsequent fiscal periods from $0.03 to
                                                       10. In response to AFFI comments,                                                                          $0.035 per 25-pound carton of tomatoes
                                                                                                            proposed grade standards would
                                                    AMS agreed to limit the product                                                                               handled under the marketing order
                                                                                                            provide for tolerance limits for defects;
                                                    description to ‘‘individually quick                                                                           (order). The Committee locally
                                                                                                            acceptance numbers of allowable
                                                    frozen’’ onions.                                                                                              administers the order and is comprised
                                                       11. In accordance with AMS’ policy                   defects with single letter grade
                                                                                                            designation based on a specified                      of producers of tomatoes operating
                                                    requiring commodities covered by U.S.                                                                         within the area of production.
                                                    grade standards to comply with all                      number or weight of sample units; a
                                                                                                            product description for frozen onions;                Assessments upon Florida tomato
                                                    federal, state, and local laws, AMS did                                                                       handlers are used by the Committee to
                                                    not include microbiological                             and, style designations for ‘‘whole,’’
                                                                                                            ‘‘strips,’’ ‘‘diced,’’ and ‘‘other’’ styles.          fund reasonable and necessary expenses
                                                    requirements, storage temperatures,                                                                           of the program. The fiscal period begins
                                                    shelf life requirements, and limits for                 The proposal also would define quality
                                                                                                            factors, AQLs, and tolerances for defects             August 1 and ends July 31. The
                                                    chemical and pesticide residues to the                                                                        assessment rate would remain in effect
                                                    proposed frozen onion grade standards.                  in frozen onions, and determine sample
                                                                                                            unit sizes for this commodity. The grade              indefinitely unless modified,
                                                    Such requirements are not typically                                                                           suspended, or terminated.
                                                    included in the voluntary U.S. grade                    of a sample unit of frozen onions would
                                                                                                            be ascertained considering the factors of             DATES: Comments must be received by
                                                    standards. AFFI concurred.
                                                       12. In response to a request from AFFI               varietal characteristics, color, flavor and           December 8, 2016.
                                                    members, AMS changed the proposed                       odor, appearance, absence of grit or dirt,            ADDRESSES: Interested persons are
                                                    size descriptions for ‘‘whole’’ styles as               defects, and character.                               invited to submit written comments
                                                    follows:                                                   These voluntary grade standards                    concerning this proposed rule.
                                                       Type I from 3⁄4 inch (19mm) to 17⁄8                  would provide a common language for                   Comments must be sent to the Docket
                                                    inch (48mm) changed to 7⁄8 inch (22mm)                  trade, a means of measuring value in                  Clerk, Marketing Order and Agreement
                                                    to 17⁄8 inch (48mm).                                    marketing, and guidance in the effective              Division, Specialty Crops Program,
mstockstill on DSK3G9T082PROD with PROPOSALS




                                                       Type II (Pearl) from 1⁄4 inch (6mm) to               use of frozen onions.                                 AMS, USDA, 1400 Independence
                                                    7⁄8 inch (22mm) changed to 3⁄8 inch                        The official grade of a lot of frozen              Avenue SW., STOP 0237, Washington,
                                                    (10mm) to 7⁄8 inch (22mm).                              onions covered by these standards                     DC 20250–0237; Fax: (202) 720–8938; or
                                                       13. In reponse to an AFFI member’s                   would be determined by the procedures                 Internet: http://www.regulations.gov.
                                                    comment to the AMS’ Federal Register                    set forth in the Regulations Governing                Comments should reference the
                                                    notice published on June 1, 2011 (76 FR                 Inspection and Certification of                       document number and the date and
                                                    31575), AMS revised the Defect Tables                   Processed Fruits and Vegetables,                      page number of this issue of the Federal
                                                    and Definitions of the proposed                         Processed Products Thereof, and Certain               Register and will be available for public


                                               VerDate Sep<11>2014   16:51 Nov 22, 2016   Jkt 241001   PO 00000   Frm 00002   Fmt 4702   Sfmt 4702   E:\FR\FM\23NOP1.SGM   23NOP1


                                                    84508             Federal Register / Vol. 81, No. 226 / Wednesday, November 23, 2016 / Proposed Rules

                                                    inspection in the Office of the Docket                  and request a modification of the order               Budgeted expenses for these items in
                                                    Clerk during regular business hours, or                 or to be exempted therefrom. Such                     2015–16 were $435,377, $400,000, and
                                                    can be viewed at: http://                               handler is afforded the opportunity for               $400,000, respectively.
                                                    www.regulations.gov. All comments                       a hearing on the petition. After the                    The assessment rate recommended by
                                                    submitted in response to this proposed                  hearing, USDA would rule on the                       the Committee was derived by dividing
                                                    rule will be included in the record and                 petition. The Act provides that the                   anticipated expenses by expected
                                                    will be made available to the public.                   district court of the United States in any            shipments of Florida tomatoes. Florida
                                                    Please be advised that the identity of the              district in which the handler is an                   tomato shipments for the 2016–17 year
                                                    individuals or entities submitting the                  inhabitant, or has his or her principal               are estimated at 33 million 25-pound
                                                    comments will be made public on the                     place of business, has jurisdiction to                cartons, which should provide
                                                    Internet at the address provided above.                 review USDA’s ruling on the petition,                 $1,155,000 in assessment income.
                                                    FOR FURTHER INFORMATION CONTACT:                        provided an action is filed not later than            Income derived from handler
                                                    Steven W. Kauffman, Marketing                           20 days after the date of the entry of the            assessments, along with interest income,
                                                    Specialist, or Christian D. Nissen,                     ruling.                                               block grants, and funds from the
                                                    Regional Director, Southeast Marketing                     This proposed rule would increase                  Committee’s authorized reserve, would
                                                    Field Office, Marketing Order and                       the assessment rate established for the               be adequate to cover budgeted expenses.
                                                    Agreement Division, Specialty Crops                     Committee for the 2016–17 and                         Funds in the reserve (approximately
                                                    Program, AMS, USDA; Telephone: (863)                    subsequent fiscal periods from $0.03 to               $999,361) would be kept within the
                                                    324–3375, Fax: (863) 291–8614, or                       $0.035 per 25-pound carton of tomatoes.               maximum permitted by the order of no
                                                                                                               The Florida tomato marketing order                 more than approximately one fiscal
                                                    Email: Steven.Kauffman@ams.usda.gov
                                                                                                            provides authority for the Committee,                 period’s expenses as stated in § 966.44.
                                                    or Christian.Nissen@ams.usda.gov.
                                                                                                            with the approval of USDA, to formulate                 The proposed assessment rate would
                                                       Small businesses may request
                                                                                                            an annual budget of expenses and                      continue in effect indefinitely unless
                                                    information on complying with this
                                                                                                            collect assessments from handlers to                  modified, suspended, or terminated by
                                                    regulation by contacting Richard Lower,
                                                                                                            administer the program. The members                   USDA upon recommendation and
                                                    Marketing Order and Agreement
                                                                                                            of the Committee are producers of                     information submitted by the
                                                    Division, Specialty Crops Program,
                                                                                                            Florida tomatoes. They are familiar with              Committee or other available
                                                    AMS, USDA, 1400 Independence
                                                                                                            the Committee’s needs and with the                    information.
                                                    Avenue SW., STOP 0237, Washington,                                                                              Although this assessment rate would
                                                                                                            costs of goods and services in their local
                                                    DC 20250–0237; Telephone: (202) 720–                    area and are thus in a position to                    be in effect for an indefinite period, the
                                                    2491, Fax: (202)720–8938, or Email:                     formulate an appropriate budget and                   Committee would continue to meet
                                                    Richard.Lower@ams.usda.gov.                             assessment rate. The assessment rate is               prior to or during each fiscal period to
                                                    SUPPLEMENTARY INFORMATION: This                         formulated and discussed in a public                  recommend a budget of expenses and
                                                    proposed rule is issued under Marketing                 meeting. Thus, all directly affected                  consider recommendations for
                                                    Agreement No. 125 and Order No. 966,                    persons have an opportunity to                        modification of the assessment rate. The
                                                    both as amended (7 CFR part 966),                       participate and provide input.                        dates and times of Committee meetings
                                                    regulating the handling of tomatoes                        For the 2015–16 and subsequent fiscal              are available from the Committee or
                                                    grown in Florida, hereinafter referred to               periods, the Committee recommended,                   USDA. Committee meetings are open to
                                                    as the ‘‘order.’’ The order is effective                and USDA approved, an assessment rate                 the public, and interested persons may
                                                    under the Agricultural Marketing                        of $0.03 per 25-pound carton of                       express their views at these meetings.
                                                    Agreement Act of 1937, as amended (7                    tomatoes that would continue in effect                USDA would evaluate Committee
                                                    U.S.C. 601–674), hereinafter referred to                from fiscal period to fiscal period unless            recommendations and other available
                                                    as the ‘‘Act.’’                                         modified, suspended, or terminated by                 information to determine whether
                                                       The Department of Agriculture                        USDA upon recommendation and                          modification of the assessment rate is
                                                    (USDA) is issuing this proposed rule in                 information submitted by the                          needed. Further rulemaking would be
                                                    conformance with Executive Orders                       Committee or other information                        undertaken as necessary. The
                                                    12866, 13563, and 13175.                                available to USDA.                                    Committee’s 2016–17 budget and those
                                                       This proposed rule has been reviewed                    The Committee met on August 16,                    for subsequent fiscal periods would be
                                                    under Executive Order 12988, Civil                      2016, and unanimously recommended                     reviewed and, as appropriate, approved
                                                    Justice Reform. Under the marketing                     2016–17 expenditures of $1,494,600 and                by USDA.
                                                    order now in effect, Florida tomato                     an assessment rate of $0.035 per 25-
                                                    handlers are subject to assessments.                    pound carton of tomatoes. In                          Initial Regulatory Flexibility Analysis
                                                    Funds to administer the order are                       comparison, last year’s budgeted                        Pursuant to requirements set forth in
                                                    derived from such assessments. It is                    expenditures were $1,513,177. The                     the Regulatory Flexibility Act (RFA) (5
                                                    intended that the assessment rate as                    assessment rate of $0.035 is $0.005                   U.S.C. 601–612), the Agricultural
                                                    proposed herein would be applicable to                  higher than the rate currently in effect.             Marketing Service (AMS) has
                                                    all assessable Florida tomatoes                         At the current assessment rate,                       considered the economic impact of this
                                                    beginning on August 1, 2016, and                        assessment income would equal only                    proposed rule on small entities.
                                                    continue until amended, suspended, or                   $990,000, an amount insufficient to                   Accordingly, AMS has prepared this
                                                    terminated.                                             cover the Committee’s anticipated                     initial regulatory flexibility analysis.
                                                       The Act provides that administrative                 expenditures of $1,494,600. The                         The purpose of the RFA is to fit
mstockstill on DSK3G9T082PROD with PROPOSALS




                                                    proceedings must be exhausted before                    Committee considered the proposed                     regulatory actions to the scale of
                                                    parties may file suit in court. Under                   expenses and recommended increasing                   businesses subject to such actions in
                                                    section 608c(15)(A) of the Act, any                     the assessment rate.                                  order that small businesses will not be
                                                    handler subject to an order may file                       The major expenditures                             unduly or disproportionately burdened.
                                                    with USDA a petition stating that the                   recommended by the Committee for the                  Marketing orders issued pursuant to the
                                                    order, any provision of the order, or any               2016–17 year include $450,000 for                     Act, and the rules issued thereunder, are
                                                    obligation imposed in connection with                   salaries, $400,000 for research, and                  unique in that they are brought about
                                                    the order is not in accordance with law                 $400,000 for education and promotion.                 through group action of essentially


                                               VerDate Sep<11>2014   16:51 Nov 22, 2016   Jkt 241001   PO 00000   Frm 00003   Fmt 4702   Sfmt 4702   E:\FR\FM\23NOP1.SGM   23NOP1


                                                                      Federal Register / Vol. 81, No. 226 / Wednesday, November 23, 2016 / Proposed Rules                                            84509

                                                    small entities acting on their own                      expenditures of $1,494,600. The                          This proposed rule would impose no
                                                    behalf.                                                 Committee considered the proposed                     additional reporting or recordkeeping
                                                       There are approximately 100                          expenses and recommended increasing                   requirements on either small or large
                                                    producers of tomatoes in the production                 the assessment rate.                                  Florida tomato handlers. As with all
                                                    area and approximately 80 handlers                        Prior to arriving at this budget and                Federal marketing order programs,
                                                    subject to regulation under the                         assessment rate, the Committee                        reports and forms are periodically
                                                    marketing order. Small agricultural                     considered information from various                   reviewed to reduce information
                                                    producers are defined by the Small                      sources, such as the Committee’s                      requirements and duplication by
                                                    Business Administration (SBA) as those                  Executive Subcommittee, Research                      industry and public sector agencies.
                                                    having annual receipts less than                        Subcommittee, and Education and                          AMS is committed to complying with
                                                    $750,000, and small agricultural service                Promotion Subcommittee. Alternative                   the E-Government Act, to promote the
                                                    firms are defined as those whose annual                 expenditure levels were discussed by                  use of the Internet and other
                                                    receipts are less than $7,500,000 (13                   these groups, based upon the relative                 information technologies to provide
                                                    CFR 121.201).                                           value of various activities to the tomato             increased opportunities for citizen
                                                       Based on industry and Committee                      industry. The Committee determined                    access to Government information and
                                                    data, the average annual price for fresh                that 2016–17 expenditures of $1,494,600               services, and for other purposes.
                                                    Florida tomatoes during the 2015–16                     were appropriate, and the recommended                    USDA has not identified any relevant
                                                    season was approximately $11.27 per                     assessment rate, along with funds from                Federal rules that duplicate, overlap, or
                                                    25-pound carton, and total fresh                        interest income, block grants, and funds              conflict with this action.
                                                    shipments were approximately 28.2                       from reserves, would be adequate to                      A small business guide on complying
                                                    million cartons. Using the average price                                                                      with fruit, vegetable, and specialty crop
                                                                                                            cover budgeted expenses.
                                                    and shipment information, number of                                                                           marketing agreements and orders may
                                                                                                              A review of historical information and
                                                    handlers, and assuming a normal                                                                               be viewed at: http://www.ams.usda.gov/
                                                                                                            preliminary information pertaining to
                                                    distribution, the majority of handlers                                                                        rules-regulations/moa/small-businesses.
                                                                                                            the upcoming crop year indicates that
                                                    have average annual receipts below                                                                            Any questions about the compliance
                                                                                                            the average grower price for the 2016–
                                                    $7,500,000. In addition, based on                                                                             guide should be sent to Richard Lower
                                                                                                            17 season could be approximately $6.50
                                                    production data, an estimated grower                                                                          at the previously mentioned address in
                                                                                                            per 25-pound carton of tomatoes.
                                                    price of $6.25, and the total number of                                                                       the FOR FURTHER INFORMATION CONTACT
                                                                                                            Therefore, the estimated assessment
                                                    Florida tomato growers, the average                                                                           section.
                                                                                                            revenue for the 2016–17 crop year as a                   A 15-day comment period is provided
                                                    annual grower revenue is above
                                                                                                            percentage of total grower revenue                    to allow interested persons to respond
                                                    $750,000. Thus, a majority of the
                                                                                                            would be approximately 0.5 percent.                   to this proposed rule. Fifteen days is
                                                    handlers of Florida tomatoes may be
                                                    classified as small entities while a                      This action would increase the                      deemed appropriate because: (1) The
                                                    majority of the producers may be                        assessment obligation imposed on                      2016–17 fiscal period began on August
                                                    classified as large entities.                           handlers. While assessments impose                    1, 2016, and the marketing order
                                                       This proposal would increase the                     some additional costs on handlers, the                requires that the rate of assessment for
                                                    assessment rate established for the                     costs are minimal and uniform on all                  each fiscal period apply to all assessable
                                                    Committee and collected from handlers                   handlers. Some of the additional costs                Florida tomatoes handled during such
                                                    for the 2016–17 and subsequent fiscal                   may be passed on to producers.                        fiscal period; (2) the Committee needs to
                                                    periods from $0.03 to $0.035 per 25-                    However, these costs would be offset by               have sufficient funds to pay its
                                                    pound carton of tomatoes. The                           the benefits derived by the operation of              expenses, which are incurred on a
                                                    Committee unanimously recommended                       the marketing order.                                  continuous basis; and (3) handlers are
                                                    2016–17 expenditures of $1,494,600 and                    The Committee’s meeting was widely                  aware of this action, which was
                                                    an assessment rate of $0.035 per 25-                    publicized throughout the Florida                     unanimously recommended by the
                                                    pound carton handled. The proposed                      tomato industry, and all interested                   Committee at a public meeting and is
                                                    assessment rate of $0.035 is $.005 higher               persons were invited to attend the                    similar to other assessment rate actions
                                                    than the 2015–16 rate. The quantity of                  meeting and participate in Committee                  issued in past years.
                                                    assessable tomatoes for the 2016–17                     deliberations on all issues. Like all
                                                    season is estimated at 33 million 25-                   Committee meetings, the August 16,                    List of Subjects in 7 CFR Part 966
                                                    pound cartons. Thus, the $0.035 rate                    2016, meeting was a public meeting,                     Marketing agreements, Reporting and
                                                    should provide $1,155,000 in                            and all entities, both large and small,               recordkeeping requirements, Tomatoes.
                                                    assessment income. Income derived                       were able to express views on this issue.               For the reasons set forth in the
                                                    from handler assessments, along with                    Finally, interested persons are invited to            preamble, 7 CFR part 966 is proposed to
                                                    funds from interest income, MAP funds,                  submit comments on this proposed rule,                be amended as follows:
                                                    and block grants, should provide                        including the regulatory and
                                                    sufficient funds to meet this year’s                    informational impacts of this action on               PART 966—TOMATOES GROWN IN
                                                    anticipated expenses.                                   small businesses.                                     FLORIDA
                                                       The major expenditures                                 In accordance with the Paperwork
                                                    recommended by the Committee for the                    Reduction Act of 1995 (44 U.S.C.                      ■ 1. The authority citation for 7 CFR
                                                    2016–17 year include $450,000 for                       Chapter 35), the order’s information                  part 966 continues to read as follows:
                                                    salaries, $400,000 for research, and                    collection requirements have been                         Authority: 7 U.S.C. 601–674.
mstockstill on DSK3G9T082PROD with PROPOSALS




                                                    $400,000 for education and promotion.                   previously approved by the Office of                  ■ 2. Section 966.234 is revised to read
                                                    Budgeted expenses for these items in                    Management and Budget (OMB) and                       as follows:
                                                    2015–16 were $435,377, $400,000, and                    assigned OMB No. 0581–0178 Vegetable
                                                    $400,000, respectively.                                 and Specialty Crops. No changes in                    § 966.234    Assessment rate.
                                                       At the current assessment rate,                      those requirements are necessary as a                   On and after August 1, 2016, an
                                                    assessment income would equal only                      result of this action. Should any changes             assessment rate of $0.035 per 25-pound
                                                    $990,000, an amount insufficient to                     become necessary, they would be                       carton is established for Florida
                                                    cover the Committee’s anticipated                       submitted to OMB for approval.                        tomatoes.


                                               VerDate Sep<11>2014   16:51 Nov 22, 2016   Jkt 241001   PO 00000   Frm 00004   Fmt 4702   Sfmt 4702   E:\FR\FM\23NOP1.SGM   23NOP1


                                                    84510             Federal Register / Vol. 81, No. 226 / Wednesday, November 23, 2016 / Proposed Rules

                                                      Dated: November 18, 2016.                             be made public on the internet at the                 challenge to the provision of the Beef
                                                    Elanor Starmer,                                         address provided above.                               Promotion and Research Act of 1985.
                                                    Administrator, Agricultural Marketing                   FOR FURTHER INFORMATION CONTACT:
                                                    Service.                                                                                                      Executive Order 12866 and Executive
                                                                                                            Laurel L. May, Senior Marketing                       Order 13563
                                                    [FR Doc. 2016–28259 Filed 11–22–16; 8:45 am]
                                                                                                            Specialist, USDA/AMS/Dairy Program,
                                                    BILLING CODE 3410–02–P                                  telephone 202–690–1366, or email                         USDA is issuing this proposed rule in
                                                                                                            Laurel.May@ams.usda.gov; or Whitney                   conformance with Executive Orders
                                                                                                            Rick, Director; Promotion, Research, and              12866 and 13563. Executive Orders
                                                    DEPARTMENT OF AGRICULTURE                               Planning Division; USDA/AMS/Dairy                     12866 and 13563 direct agencies to
                                                    Agricultural Marketing Service                          Program; telephone 202–720–6961; or                   assess all costs and benefits of available
                                                                                                            email Whitney.Rick@ams.usda.gov.                      regulatory alternatives and, if regulation
                                                    7 CFR Parts 1150, 1160, 1205, 1206,                     SUPPLEMENTARY INFORMATION:      This                  is necessary, to select regulatory
                                                    1207, 1208, 1209, 1210, 1212, 1214,                     proposed rule is issued under 19 of the               approaches that maximize net benefits
                                                    1215, 1216, 1217, 1218, 1219, 1222,                     commodity research and promotion                      (including potential economic,
                                                    1230, 1250, and 1260                                    orders established under the following                environmental, public health, and safety
                                                                                                            acts: Beef Promotion and Research Act                 effects, distributive impacts, and
                                                    [Document Number AMS–DA–16–0101]                                                                              equity). Executive Order 13563
                                                                                                            of 1985 (7 U.S.C. 2901–2911);
                                                                                                            Commodity Promotion, Research, and                    emphasizes the importance of
                                                    Provisions for Removing Commodity
                                                                                                            Information Act of 1996 (7 U.S.C. 7411–               quantifying both costs and benefits,
                                                    Research and Promotion Board
                                                                                                            7425); Cotton Research and Promotion                  reducing costs, harmonizing rules, and
                                                    Members and Staff
                                                                                                            Act of 1966 (7 U.S.C. 2101–2118); Dairy               promoting flexibility. This action has
                                                    AGENCY:  Agricultural Marketing Service,                Production Stabilization Act of 1983 (7               been designated as a ‘‘non-significant
                                                    USDA.                                                   U.S.C. 4501–4514); Egg Research and                   regulatory action’’ under section 3(f) of
                                                    ACTION: Proposed rule.                                  Consumer Information Act of 1974 (7                   Executive Order 12866. Accordingly,
                                                                                                            U.S.C. 2701–2718); Fluid Milk                         the Office of Management and Budget
                                                    SUMMARY:   This proposal would amend                    Promotion Act of 1990 (7 U.S.C. 6401–                 has waived the review process.
                                                    the research and promotion orders—or                    6417); Hass Avocado Promotion,
                                                    the regulations under the orders—                       Research, and Information Act of 2000                 Executive Order 13175
                                                    overseen by the Agricultural Marketing                  (U.S.C. 7801–7813); Mushroom                            This proposed rule has been reviewed
                                                    Service (AMS) to provide uniform                        Promotion, Research, and Consumer                     in accordance with the requirements of
                                                    authority for the removal of board                      Information Act of 1990 (7 U.S.C. 6101–               Executive Order 13175, Consultation
                                                    members and staff who fail to perform                   6112); Popcorn Promotion, Research,                   and Coordination with Indian Tribal
                                                    their duties or who engage in dishonest                 and Consumer Information Act of 1996
                                                    actions or willful misconduct. The                                                                            Governments. The review reveals that
                                                                                                            (7 U.S.C. 7481–7491); Pork Promotion,
                                                    removal provisions in 13 of the orders                                                                        this regulation would not have
                                                                                                            Research, and Consumer Information
                                                    would be modified to allow the U.S.                                                                           substantial and direct effects on Tribal
                                                                                                            Act of 1985 (7 U.S.C. 4801–4819); Potato
                                                    Department of Agriculture (USDA) to                                                                           governments and would not have
                                                                                                            Research and Promotion Act of 1971 (7
                                                    take action necessary to ensure the                                                                           significant Tribal implications.
                                                                                                            U.S.C. 2611–2627); and Watermelon
                                                    boards can continue to fulfill their                    Research and Promotion Act (7 U.S.C.                  Executive Order 12988
                                                    intended purposes with minimal                          4901–4916). These acts are collectively
                                                    disruption. Removal provisions would                    referred to as ‘‘commodity research and               Beef Promotion and Research Act of
                                                    be added to the six orders that do not                  promotion laws’’ or ‘‘acts.’’                         1985
                                                    currently provide for such action.                         The preceding acts provide that                      This proposed rule has been reviewed
                                                    DATES: Comments must be received by                     administrative proceedings must be                    under Executive Order 12988, Civil
                                                    December 8, 2016.                                       exhausted before parties may file suit in             Justice Reform. It is not intended to
                                                    ADDRESSES: Interested persons are                       court. Under those acts, any person                   have retroactive effect. Section 11 of the
                                                    invited to submit written comments                      subject to an order may file a petition               Beef Promotion and Research Act of
                                                    concerning this proposed rule.                          with the Secretary of Agriculture                     1985 (7 U.S.C. 2910) provides that it
                                                    Comments may be submitted on the                        (Secretary) stating that the order, any               shall not preempt or supersede any
                                                    internet at: http://www.regulations.gov.                provision of the order, or any obligation             other program relating to beef
                                                    Written comments may also be sent to                    imposed in connection with the order is               promotion organized and operated
                                                    Laurel L. May, Senior Marketing                         not in accordance with laws and request
                                                                                                                                                                  under the laws of the United States or
                                                    Specialist, Order Formulation and                       a modification of the order or to be
                                                                                                                                                                  any State.
                                                    Enforcement Division, USDA/AMS/                         exempted therefrom. The petitioner is
                                                    Dairy Program, 1400 Independence                        afforded the opportunity for a hearing                Commodity Promotion, Research, and
                                                    Avenue SW., Room 2967–S—Stop 0231,                      on the petition. After the hearing, the               Information Act of 1996
                                                    Washington, DC 20250–0231; facsimile:                   Secretary will make a ruling on the
                                                    202–690–0552. All comments should                       petition. The acts provide that the                     This proposed rule has been reviewed
                                                    reference the document number and the                   district courts of the United States in               under Executive Order 12988, Civil
mstockstill on DSK3G9T082PROD with PROPOSALS




                                                    date and page number of this issue of                   any district in which the person is an                Justice Reform. It is not intended to
                                                    the Federal Register, and will be made                  inhabitant, or has his or her principal               have retroactive effect. Section 524 of
                                                    available for public inspection in the                  place of business, has the jurisdiction to            the Commodity Promotion, Research,
                                                    above office during regular business                    review the Secretary’s rule, provided a               and Information Act of 1996 (7 U.S.C.
                                                    hours, or may be viewed at: http://                     complaint is filed within 20 days from                7423) provides that it shall not affect or
                                                    www.regluations.gov. Please be advised                  the date of the entry of the ruling. There            preempt any other Federal or State law
                                                    that the identity of the individuals or                 are no administrative proceedings that                authorizing promotion or research
                                                    entities submitting the comments will                   must be exhausted prior to any judicial               relating to an agricultural commodity.


                                               VerDate Sep<11>2014   16:51 Nov 22, 2016   Jkt 241001   PO 00000   Frm 00005   Fmt 4702   Sfmt 4702   E:\FR\FM\23NOP1.SGM   23NOP1



Document Created: 2016-11-23 05:30:40
Document Modified: 2016-11-23 05:30:40
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule.
DatesComments must be received by December 8, 2016.
ContactSteven W. Kauffman, Marketing Specialist, or Christian D. Nissen, Regional Director, Southeast Marketing Field Office, Marketing Order and Agreement Division, Specialty Crops Program, AMS, USDA; Telephone: (863) 324-3375, Fax: (863) 291-8614, or Email: [email protected] or [email protected]
FR Citation81 FR 84507 
CFR AssociatedMarketing Agreements; Reporting and Recordkeeping Requirements and Tomatoes

2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR