81_FR_9779 81 FR 9741 - Pistachios Grown in California, Arizona, and New Mexico; Increased Assessment Rate

81 FR 9741 - Pistachios Grown in California, Arizona, and New Mexico; Increased Assessment Rate

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 81, Issue 38 (February 26, 2016)

Page Range9741-9743
FR Document2016-04049

This rule implements a recommendation from the Administrative Committee for Pistachios (Committee) for an increase of the assessment rate established for the 2015-16 and subsequent production years from $0.0005 to $0.0035 per pound of assessed weight pistachios handled under the marketing order for pistachios grown in California, Arizona, and New Mexico. The Committee locally administers the order and is comprised of producers and handlers of pistachios operating within the area of production. Assessments upon pistachio handlers are used by the Committee to fund reasonable and necessary expenses of the program. The production year begins on September 1 and ends August 31. The assessment rate would remain in effect indefinitely unless modified, suspended, or terminated.

Federal Register, Volume 81 Issue 38 (Friday, February 26, 2016)
[Federal Register Volume 81, Number 38 (Friday, February 26, 2016)]
[Rules and Regulations]
[Pages 9741-9743]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-04049]



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Rules and Regulations
                                                Federal Register
________________________________________________________________________

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

The Code of Federal Regulations is sold by the Superintendent of Documents. 
Prices of new books are listed in the first FEDERAL REGISTER issue of each 
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Federal Register / Vol. 81, No. 38 / Friday, February 26, 2016 / 
Rules and Regulations

[[Page 9741]]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 983

[Doc. No. AMS-FV-15-0038; FV15-983-1 FR]


Pistachios Grown in California, Arizona, and New Mexico; 
Increased Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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

SUMMARY: This rule implements a recommendation from the Administrative 
Committee for Pistachios (Committee) for an increase of the assessment 
rate established for the 2015-16 and subsequent production years from 
$0.0005 to $0.0035 per pound of assessed weight pistachios handled 
under the marketing order for pistachios grown in California, Arizona, 
and New Mexico. The Committee locally administers the order and is 
comprised of producers and handlers of pistachios operating within the 
area of production. Assessments upon pistachio handlers are used by the 
Committee to fund reasonable and necessary expenses of the program. The 
production year begins on September 1 and ends August 31. The 
assessment rate would remain in effect indefinitely unless modified, 
suspended, or terminated.

DATES: Effective February 29, 2016.

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

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing 
Agreement and Order No. 983, as amended (7 CFR part 983), regulating 
the handling of pistachios grown in California, Arizona, and New 
Mexico, 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 rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. Under the marketing order now in effect, California, 
Arizona, and New Mexico pistachio handlers are subject to assessments. 
Funds to administer the order are derived from such assessments. It is 
intended that the assessment rate as issued herein will be applicable 
to all assessable pistachios beginning on September 1, 2015, and 
continue until amended, suspended, or terminated.
    The Act provides that administrative proceedings must be exhausted 
before parties may file suit in court. Under section 608c(15)(A) of the 
Act, any handler subject to an order may file with USDA a petition 
stating that the order, any provision of the order, or any obligation 
imposed in connection with the order is not in accordance with law and 
request a modification of the order or to be exempted therefrom. Such 
handler is afforded the opportunity for a hearing on the petition. 
After the hearing, USDA would rule on the petition. The Act provides 
that the district court of the United States in any district in which 
the handler is an inhabitant, or has his or her principal place of 
business, has jurisdiction to review USDA's ruling on the petition, 
provided an action is filed not later than 20 days after the date of 
the entry of the ruling.
    This rule increases the assessment rate established for the 
Committee for the 2015-16 and subsequent production years from $0.0005 
to $0.0035 per pound of assessed weight pistachios handled.
    The California, Arizona, and New Mexico pistachio marketing order 
provides authority for the Committee, with the approval of USDA, to 
formulate an annual budget of expenses and collect assessments from 
handlers to administer the program. The members of the Committee are 
producers and handlers of California, Arizona, and New Mexico 
pistachios. 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 2011-12 and subsequent production years, the Committee 
recommended, and the USDA approved, an assessment rate that would 
continue in effect from production year to production year unless 
modified, suspended, or terminated by USDA upon recommendation and 
information submitted by the Committee or other information available 
to USDA.
    The Committee met on July 9, 2015, and October 20, 2015, and 
unanimously recommended 2015-16 production year expenditures of 
$1,056,402 and an assessment rate of $0.0035 per pound of assessed 
weight pistachios handled to fund Committee expenses. This represents 
an increase over the prior year's budget and assessment rate. In 
comparison, last year's budgeted expenditures were $1,001,400. The 
assessment rate of $0.0035 is $0.0030 higher than the rate currently in 
effect. The Committee's recommended 2015-16 expenditures are $55,002 
higher than last year's budgeted expenditures. The primary reason for 
the increase is to provide $560,000 in funding for Sterile Insect 
Technology/Navel Orange Worm (SIT/NOW) research. When applied to the 
Committee's crop estimate for the 2015-16 production year of 265 
million pounds, the current assessment rate of $0.0005 would not 
generate sufficient income to cover anticipated expenses. The 
assessment rate of $0.0035 per pound of assessed weight pistachios 
would generate assessment income of $927,500. Anticipated assessment

[[Page 9742]]

income combined with financial reserves and other income would provide 
sufficient revenue for the Committee to meet its budgeted expenses 
while maintaining its financial reserve within the limit authorized 
under the order.
    The major expenditures recommended by the Committee for the 2015-16 
production year include $560,000 for SIT/NOW research, $92,401 for 
administrative expenses, $314,000 for salary and related employee 
expenses, $10,000 for compliance expenses, and $80,000 for a 
contingency fund. Budgeted expenses in 2014-15 were $360,000 for 
Technical Assistance Specialty Crop (TASC) Program research, $125,000 
for other research, $117,400 for administrative expenses, $314,000 for 
salary and related employee expenses, $10,000 for compliance expenses, 
and $75,000 for a contingency fund. Actual expenses in 2014-15 were 
significantly lower, at $547,199, as the TASC research was not funded.
    The assessment rate recommended by the Committee was derived by 
considering anticipated expenses and production levels of California, 
Arizona, and New Mexico pistachios, and other pertinent factors. As 
mentioned earlier, pistachio production levels are estimated at 265 
million pounds, which should generate $927,500 in assessment income. 
Income derived from handler assessments, along with other income and 
financial reserves would provide sufficient revenue for the Committee 
to meet its budgeted expenses while maintaining its financial reserve 
within the limit authorized under the order.
    The assessment rate established in this rule will continue in 
effect indefinitely unless modified, suspended, or terminated by USDA 
based upon a recommendation and information submitted by the Committee 
or other available information.
    Although this assessment rate will be in effect for an indefinite 
period, the Committee will continue to meet prior to or during each 
production year to recommend a budget of expenses and consider 
recommendations for modification of the assessment rate. The dates and 
times of Committee meetings are available from the Committee or USDA. 
Committee meetings are open to the public, and interested persons may 
express their views at these meetings. USDA will evaluate Committee 
recommendations and other available information to determine whether 
modification of the assessment rate is needed. Further rulemaking would 
be undertaken as necessary. The Committee's 2015-16 budget and those 
for subsequent production years would be reviewed and, as appropriate, 
approved by USDA.

Final Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS) 
has considered the economic impact of this rule on small entities. 
Accordingly, AMS has prepared this final regulatory flexibility 
analysis.
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened. Marketing orders issued 
pursuant to the Act, and the rules issued thereunder, are unique in 
that they are brought about through group action of essentially small 
entities acting on their own behalf.
    There are approximately 1,152 producers of pistachios in the 
production area and approximately 19 handlers subject to regulation 
under the marketing order. Small agricultural producers are defined by 
the Small Business Administration as those having annual receipts of 
less than $750,000, and small agricultural service firms are defined as 
those whose annual receipts are less than $7,000,000 (13 CFR 121.201).
    Based on Committee data, it is estimated that about 47 percent of 
the handlers annually ship less than $7,000,000 worth of pistachios, 
and it is also estimated that 68 percent of the producers have annual 
receipts less than $750,000. Thus, the majority of handlers in the 
production area may be classified as large entities, and the majority 
of the producers may be classified as small entities.
    This rule increases the assessment rate established for the 
Committee and collected from handlers for the 2015-16 and subsequent 
production years from $0.0005 to $0.0035 per pound of assessed weight 
pistachios. The Committee unanimously recommended 2015-16 expenditures 
of $1,056,402 and an assessment rate of $0.0035 per pound of assessed 
weight pistachios. The assessment rate of $0.0035 is $0.0030 higher 
than the 2014-15 rate. The quantity of assessable pistachios for the 
2015-16 production year is estimated at 265 million pounds. Thus, the 
$0.0035 rate should provide $927,500 in assessment income. Income 
derived from handler assessments, along with other income and financial 
reserves would provide sufficient revenue for the Committee to meet its 
budgeted expenses while maintaining its financial reserve within the 
limit authorized under the order.
    The major expenditures recommended by the Committee for the 2015-16 
production year include $560,000 for SIT/NOW research, $92,401 for 
administrative expenses, $314,000 for salary and related employee 
expenses, $10,000 for compliance expenses, and $80,000 for a 
contingency fund. Budgeted expenses in 2014-15 were $360,000 for TASC 
Program research, $125,000 for other research, $117,400 for 
administrative expenses, $314,000 for salary and related employee 
expenses, $10,000 for compliance expenses, and $75,000 for a 
contingency fund. The reasons for the proposed increase include a 
significant increase in budgeted expenses in 2015 over actual expenses 
in 2014, a significantly smaller crop estimate in 2015, and allocation 
of funds for Sterile Insect Technology/Navel Orange Worm (SIT/NOW) 
research.
    Prior to arriving at this budget and assessment rate, the Committee 
considered alternative expenditure levels but ultimately determined 
that 2015-16 expenditures of $1,056,402 were appropriate and that the 
current assessment rate would generate insufficient revenue to meet its 
expenses.
    According to data from the National Agricultural Statistics 
Service, the season average producer price was $3.48 per pound of 
assessed weight pistachios in 2013 and $3.10 per pound in 2014. A 
review of historical information and preliminary information pertaining 
to the upcoming production year indicates that the producer price for 
the 2015-16 production year could range between $3.48 and $3.10 per 
pound of assessed weight pistachios. Therefore, the estimated 
assessment revenue for the 2015-16 production year as a percentage of 
total producer revenue could range between 0.10 and 0.11 percent.
    This action increases the assessment obligation imposed on 
handlers. While assessments impose some additional costs on handlers, 
the costs are minimal and uniform on all handlers. These costs are 
offset by the benefits derived from the operation of the marketing 
order. In addition, the Committee's meeting was widely publicized 
throughout the California, Arizona, and New Mexico pistachio industry, 
and all interested persons were invited to attend the meeting and 
participate in Committee deliberations on all issues. Like all 
Committee meetings, the July 9, 2015, and October 20, 2015, meetings 
were public and all entities, both large

[[Page 9743]]

and small, were able to express views on this issue.
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the order's information collection requirements have been 
previously approved by the Office of Management and Budget (OMB) and 
assigned OMB No. 0581-0215. No changes in those requirements as a 
result of this action are necessary. Should any changes become 
necessary, they would be submitted to OMB for approval.
    This rule imposes no additional reporting or recordkeeping 
requirements on either small or large California, Arizona, and New 
Mexico pistachio handlers. As with all Federal marketing order 
programs, reports and forms are periodically reviewed to reduce 
information requirements and duplication by industry and public sector 
agencies. As noted in the initial regulatory flexibility analysis, USDA 
has not identified any relevant Federal rules that duplicate, overlap, 
or conflict with this final rule.
    AMS is committed to complying with the E-Government Act, to promote 
the use of the Internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services, and for other purposes.
    A proposed rule concerning this action was published in the Federal 
Register on December 14, 2015. Copies of the proposed rule were also 
mailed or sent via facsimile to all California, Arizona, and New Mexico 
pistachio handlers. Finally, the proposal was made available through 
the Internet by USDA and the Office of the Federal Register. A 15-day 
comment period ending December 29, 2015, was provided for interested 
persons to respond to the proposal. No comments were received. A small 
business guide on complying with fruit, vegetable, and specialty crop 
marketing agreements and orders may be viewed at: http://www.ams.usda.gov/rules-regulations/moa/small-businesses. Any questions 
about the compliance guide should be sent to Antoinette Carter at the 
previously mentioned address in the FOR FURTHER INFORMATION CONTACT 
section.
    After consideration of all relevant material presented, including 
the information and recommendation submitted by the Committee and other 
available information, it is hereby found that this rule, as 
hereinafter set forth, will tend to effectuate the declared policy of 
the Act.
    Pursuant to 5 U.S.C. 553, it also found and determined that good 
cause exists for not postponing the effective date of this rule until 
30 days after publication in the Federal Register because: (1) The 
2015-16 production year began on September 1, 2015 and the marketing 
order requires that the rate of assessment for each production year 
apply to all assessable pistachios handled during such production year; 
(2) the Committee needs to have sufficient funds to pay its expenses, 
which are incurred on a continuous basis; (3) handlers are aware of 
this rule which was recommended at a public meeting and is similar to 
assessment rate actions issued in past years. Also, a 15-day comment 
period was provided in the proposed rule, and no comments were 
received.

List of Subjects in 7 CFR Part 983

    Marketing agreements, Pistachios, Reporting and recordkeeping 
requirements.
    For the reasons set forth in the preamble, 7 CFR part 983 is 
amended as follows:

PART 983--PISTACHIOS GROWN IN CALIFORNIA, ARIZONA, and NEW MEXICO

0
1. The authority citation for 7 CFR part 983 continues to read as 
follows:

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


0
2. In Sec.  983.253, paragraph (a) is revised to read as follows:


Sec.  983.253  Assessment rate.

    (a) On and after September 1, 2015, an assessment rate of $0.0035 
per pound is established for California, Arizona, and New Mexico 
pistachios.
* * * * *

    Dated: February 22, 2016.
Elanor Starmer,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2016-04049 Filed 2-25-16; 8:45 am]
 BILLING CODE P



                                                                                                                                                                                                 9741

                                                Rules and Regulations                                                                                         Federal Register
                                                                                                                                                              Vol. 81, No. 38

                                                                                                                                                              Friday, February 26, 2016



                                                This section of the FEDERAL REGISTER                    regulation by contacting Antoinette                   years from $0.0005 to $0.0035 per
                                                contains regulatory documents having general            Carter, Marketing Order and Agreement                 pound of assessed weight pistachios
                                                applicability and legal effect, most of which           Division, Specialty Crops Program,                    handled.
                                                are keyed to and codified in the Code of                AMS, USDA, 1400 Independence                            The California, Arizona, and New
                                                Federal Regulations, which is published under           Avenue SW., STOP 0237, Washington,                    Mexico pistachio marketing order
                                                50 titles pursuant to 44 U.S.C. 1510.
                                                                                                        DC 20250–0237; Telephone: (202) 720–                  provides authority for the Committee,
                                                The Code of Federal Regulations is sold by              2491, Fax: (202) 720–8938, or Email:                  with the approval of USDA, to formulate
                                                the Superintendent of Documents. Prices of              Antoinette.Carter@ams.usda.gov.                       an annual budget of expenses and
                                                new books are listed in the first FEDERAL               SUPPLEMENTARY INFORMATION: This rule                  collect assessments from handlers to
                                                REGISTER issue of each week.                            is issued under Marketing Agreement                   administer the program. The members
                                                                                                        and Order No. 983, as amended (7 CFR                  of the Committee are producers and
                                                                                                        part 983), regulating the handling of                 handlers of California, Arizona, and
                                                DEPARTMENT OF AGRICULTURE                               pistachios grown in California, Arizona,              New Mexico pistachios. They are
                                                                                                        and New Mexico, hereinafter referred to               familiar with the Committee’s needs and
                                                Agricultural Marketing Service                                                                                with the costs for goods and services in
                                                                                                        as the ‘‘order.’’ The order is effective
                                                                                                        under the Agricultural Marketing                      their local area and are thus in a
                                                7 CFR Part 983                                                                                                position to formulate an appropriate
                                                                                                        Agreement Act of 1937, as amended (7
                                                [Doc. No. AMS–FV–15–0038; FV15–983–1                    U.S.C. 601–674), hereinafter referred to              budget and assessment rate. The
                                                FR]                                                     as the ‘‘Act.’’                                       assessment rate is formulated and
                                                                                                           The Department of Agriculture                      discussed in a public meeting. Thus, all
                                                Pistachios Grown in California,                                                                               directly affected persons have an
                                                                                                        (USDA) is issuing this proposed rule in
                                                Arizona, and New Mexico; Increased                                                                            opportunity to participate and provide
                                                                                                        conformance with Executive Orders
                                                Assessment Rate                                                                                               input.
                                                                                                        12866, 13563, and 13175.
                                                AGENCY:  Agricultural Marketing Service,                   This rule has been reviewed under                    For the 2011–12 and subsequent
                                                USDA.                                                   Executive Order 12988, Civil Justice                  production years, the Committee
                                                ACTION: Final rule.                                     Reform. Under the marketing order now                 recommended, and the USDA approved,
                                                                                                        in effect, California, Arizona, and New               an assessment rate that would continue
                                                SUMMARY:    This rule implements a                      Mexico pistachio handlers are subject to              in effect from production year to
                                                recommendation from the                                 assessments. Funds to administer the                  production year unless modified,
                                                Administrative Committee for                            order are derived from such                           suspended, or terminated by USDA
                                                Pistachios (Committee) for an increase                  assessments. It is intended that the                  upon recommendation and information
                                                of the assessment rate established for                  assessment rate as issued herein will be              submitted by the Committee or other
                                                the 2015–16 and subsequent production                   applicable to all assessable pistachios               information available to USDA.
                                                years from $0.0005 to $0.0035 per                       beginning on September 1, 2015, and                     The Committee met on July 9, 2015,
                                                pound of assessed weight pistachios                     continue until amended, suspended, or                 and October 20, 2015, and unanimously
                                                handled under the marketing order for                   terminated.                                           recommended 2015–16 production year
                                                pistachios grown in California, Arizona,                   The Act provides that administrative               expenditures of $1,056,402 and an
                                                and New Mexico. The Committee                           proceedings must be exhausted before                  assessment rate of $0.0035 per pound of
                                                locally administers the order and is                    parties may file suit in court. Under                 assessed weight pistachios handled to
                                                comprised of producers and handlers of                  section 608c(15)(A) of the Act, any                   fund Committee expenses. This
                                                pistachios operating within the area of                 handler subject to an order may file                  represents an increase over the prior
                                                production. Assessments upon pistachio                  with USDA a petition stating that the                 year’s budget and assessment rate. In
                                                handlers are used by the Committee to                   order, any provision of the order, or any             comparison, last year’s budgeted
                                                fund reasonable and necessary expenses                  obligation imposed in connection with                 expenditures were $1,001,400. The
                                                of the program. The production year                     the order is not in accordance with law               assessment rate of $0.0035 is $0.0030
                                                begins on September 1 and ends August                   and request a modification of the order               higher than the rate currently in effect.
                                                31. The assessment rate would remain                    or to be exempted therefrom. Such                     The Committee’s recommended 2015–
                                                in effect indefinitely unless modified,                 handler is afforded the opportunity for               16 expenditures are $55,002 higher than
                                                suspended, or terminated.                               a hearing on the petition. After the                  last year’s budgeted expenditures. The
                                                DATES: Effective February 29, 2016.                     hearing, USDA would rule on the                       primary reason for the increase is to
                                                FOR FURTHER INFORMATION CONTACT:                        petition. The Act provides that the                   provide $560,000 in funding for Sterile
                                                Peter Sommers, Marketing Specialist, or                 district court of the United States in any            Insect Technology/Navel Orange Worm
                                                Jeffrey Smutny, Regional Director,                      district in which the handler is an                   (SIT/NOW) research. When applied to
                                                California Marketing Field Office,                      inhabitant, or has his or her principal               the Committee’s crop estimate for the
                                                Marketing Order and Agreement                           place of business, has jurisdiction to                2015–16 production year of 265 million
mstockstill on DSK4VPTVN1PROD with RULES




                                                Division, Specialty Crops Program,                      review USDA’s ruling on the petition,                 pounds, the current assessment rate of
                                                AMS, USDA; Telephone: (559) 487–                        provided an action is filed not later than            $0.0005 would not generate sufficient
                                                5901, Fax: (559) 487–5906, or Email:                    20 days after the date of the entry of the            income to cover anticipated expenses.
                                                PeterR.Sommers@ams.usda.gov or                          ruling.                                               The assessment rate of $0.0035 per
                                                Jeffrey.Smutney@ams.usda.gov.                              This rule increases the assessment                 pound of assessed weight pistachios
                                                   Small businesses may request                         rate established for the Committee for                would generate assessment income of
                                                information on complying with this                      the 2015–16 and subsequent production                 $927,500. Anticipated assessment


                                           VerDate Sep<11>2014   17:33 Feb 25, 2016   Jkt 238001   PO 00000   Frm 00001   Fmt 4700   Sfmt 4700   E:\FR\FM\26FER1.SGM   26FER1


                                                9742              Federal Register / Vol. 81, No. 38 / Friday, February 26, 2016 / Rules and Regulations

                                                income combined with financial                          Committee’s 2015–16 budget and those                  expenses while maintaining its financial
                                                reserves and other income would                         for subsequent production years would                 reserve within the limit authorized
                                                provide sufficient revenue for the                      be reviewed and, as appropriate,                      under the order.
                                                Committee to meet its budgeted                          approved by USDA.                                        The major expenditures
                                                expenses while maintaining its financial                                                                      recommended by the Committee for the
                                                                                                        Final Regulatory Flexibility Analysis                 2015–16 production year include
                                                reserve within the limit authorized
                                                under the order.                                           Pursuant to requirements set forth in              $560,000 for SIT/NOW research,
                                                  The major expenditures                                the Regulatory Flexibility Act (RFA) (5               $92,401 for administrative expenses,
                                                recommended by the Committee for the                    U.S.C. 601–612), the Agricultural                     $314,000 for salary and related
                                                2015–16 production year include                         Marketing Service (AMS) has                           employee expenses, $10,000 for
                                                $560,000 for SIT/NOW research,                          considered the economic impact of this                compliance expenses, and $80,000 for a
                                                $92,401 for administrative expenses,                    rule on small entities. Accordingly,                  contingency fund. Budgeted expenses in
                                                $314,000 for salary and related                         AMS has prepared this final regulatory                2014–15 were $360,000 for TASC
                                                employee expenses, $10,000 for                          flexibility analysis.                                 Program research, $125,000 for other
                                                compliance expenses, and $80,000 for a                     The purpose of the RFA is to fit                   research, $117,400 for administrative
                                                contingency fund. Budgeted expenses in                  regulatory actions to the scale of                    expenses, $314,000 for salary and
                                                2014–15 were $360,000 for Technical                     businesses subject to such actions in                 related employee expenses, $10,000 for
                                                Assistance Specialty Crop (TASC)                        order that small businesses will not be               compliance expenses, and $75,000 for a
                                                Program research, $125,000 for other                    unduly or disproportionately burdened.                contingency fund. The reasons for the
                                                research, $117,400 for administrative                   Marketing orders issued pursuant to the               proposed increase include a significant
                                                expenses, $314,000 for salary and                       Act, and the rules issued thereunder, are             increase in budgeted expenses in 2015
                                                related employee expenses, $10,000 for                  unique in that they are brought about                 over actual expenses in 2014, a
                                                compliance expenses, and $75,000 for a                  through group action of essentially                   significantly smaller crop estimate in
                                                contingency fund. Actual expenses in                    small entities acting on their own                    2015, and allocation of funds for Sterile
                                                2014–15 were significantly lower, at                    behalf.                                               Insect Technology/Navel Orange Worm
                                                $547,199, as the TASC research was not                     There are approximately 1,152                      (SIT/NOW) research.
                                                funded.                                                 producers of pistachios in the                           Prior to arriving at this budget and
                                                  The assessment rate recommended by                    production area and approximately 19                  assessment rate, the Committee
                                                the Committee was derived by                            handlers subject to regulation under the              considered alternative expenditure
                                                considering anticipated expenses and                    marketing order. Small agricultural                   levels but ultimately determined that
                                                production levels of California, Arizona,               producers are defined by the Small                    2015–16 expenditures of $1,056,402
                                                and New Mexico pistachios, and other                    Business Administration as those                      were appropriate and that the current
                                                pertinent factors. As mentioned earlier,                having annual receipts of less than                   assessment rate would generate
                                                pistachio production levels are                         $750,000, and small agricultural service              insufficient revenue to meet its
                                                estimated at 265 million pounds, which                  firms are defined as those whose annual               expenses.
                                                should generate $927,500 in assessment                  receipts are less than $7,000,000 (13                    According to data from the National
                                                income. Income derived from handler                     CFR 121.201).                                         Agricultural Statistics Service, the
                                                assessments, along with other income                       Based on Committee data, it is                     season average producer price was $3.48
                                                and financial reserves would provide                    estimated that about 47 percent of the                per pound of assessed weight pistachios
                                                sufficient revenue for the Committee to                 handlers annually ship less than                      in 2013 and $3.10 per pound in 2014.
                                                meet its budgeted expenses while                        $7,000,000 worth of pistachios, and it is             A review of historical information and
                                                maintaining its financial reserve within                also estimated that 68 percent of the                 preliminary information pertaining to
                                                the limit authorized under the order.                   producers have annual receipts less                   the upcoming production year indicates
                                                  The assessment rate established in                    than $750,000. Thus, the majority of                  that the producer price for the 2015–16
                                                this rule will continue in effect                       handlers in the production area may be                production year could range between
                                                indefinitely unless modified,                           classified as large entities, and the                 $3.48 and $3.10 per pound of assessed
                                                suspended, or terminated by USDA                        majority of the producers may be                      weight pistachios. Therefore, the
                                                based upon a recommendation and                         classified as small entities.                         estimated assessment revenue for the
                                                information submitted by the                               This rule increases the assessment                 2015–16 production year as a
                                                Committee or other available                            rate established for the Committee and                percentage of total producer revenue
                                                information.                                            collected from handlers for the 2015–16               could range between 0.10 and 0.11
                                                  Although this assessment rate will be                 and subsequent production years from                  percent.
                                                in effect for an indefinite period, the                 $0.0005 to $0.0035 per pound of                          This action increases the assessment
                                                Committee will continue to meet prior                   assessed weight pistachios. The                       obligation imposed on handlers. While
                                                to or during each production year to                    Committee unanimously recommended                     assessments impose some additional
                                                recommend a budget of expenses and                      2015–16 expenditures of $1,056,402 and                costs on handlers, the costs are minimal
                                                consider recommendations for                            an assessment rate of $0.0035 per pound               and uniform on all handlers. These
                                                modification of the assessment rate. The                of assessed weight pistachios. The                    costs are offset by the benefits derived
                                                dates and times of Committee meetings                   assessment rate of $0.0035 is $0.0030                 from the operation of the marketing
                                                are available from the Committee or                     higher than the 2014–15 rate. The                     order. In addition, the Committee’s
                                                USDA. Committee meetings are open to                    quantity of assessable pistachios for the             meeting was widely publicized
                                                the public, and interested persons may                  2015–16 production year is estimated at               throughout the California, Arizona, and
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                                                express their views at these meetings.                  265 million pounds. Thus, the $0.0035                 New Mexico pistachio industry, and all
                                                USDA will evaluate Committee                            rate should provide $927,500 in                       interested persons were invited to
                                                recommendations and other available                     assessment income. Income derived                     attend the meeting and participate in
                                                information to determine whether                        from handler assessments, along with                  Committee deliberations on all issues.
                                                modification of the assessment rate is                  other income and financial reserves                   Like all Committee meetings, the July 9,
                                                needed. Further rulemaking would be                     would provide sufficient revenue for the              2015, and October 20, 2015, meetings
                                                undertaken as necessary. The                            Committee to meet its budgeted                        were public and all entities, both large


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                                                                  Federal Register / Vol. 81, No. 38 / Friday, February 26, 2016 / Rules and Regulations                                          9743

                                                and small, were able to express views                   for not postponing the effective date of              SUMMARY:    The Department of
                                                on this issue.                                          this rule until 30 days after publication             Agriculture (USDA) is adopting, as a
                                                  In accordance with the Paperwork                      in the Federal Register because: (1) The              final rule, without change, an interim
                                                Reduction Act of 1995 (44 U.S.C.                        2015–16 production year began on                      rule that implemented a
                                                Chapter 35), the order’s information                    September 1, 2015 and the marketing                   recommendation from the California
                                                collection requirements have been                       order requires that the rate of                       Date Administrative Committee
                                                previously approved by the Office of                    assessment for each production year                   (committee) to decrease the assessment
                                                Management and Budget (OMB) and                         apply to all assessable pistachios                    rate established for the 2015–16 and
                                                assigned OMB No. 0581–0215. No                          handled during such production year;                  subsequent crop years from $0.20 to
                                                changes in those requirements as a                      (2) the Committee needs to have                       $0.10 per hundredweight of dates
                                                result of this action are necessary.                    sufficient funds to pay its expenses,                 handled under the marketing order
                                                Should any changes become necessary,                    which are incurred on a continuous                    (order). The committee locally
                                                they would be submitted to OMB for                      basis; (3) handlers are aware of this rule            administers the marketing order and is
                                                approval.                                               which was recommended at a public                     comprised of producers and handlers of
                                                  This rule imposes no additional                       meeting and is similar to assessment                  dates grown or packed in Riverside
                                                reporting or recordkeeping requirements                 rate actions issued in past years. Also,              County, California. The interim rule to
                                                on either small or large California,                    a 15-day comment period was provided                  decrease the assessment rate was
                                                Arizona, and New Mexico pistachio                       in the proposed rule, and no comments                 necessary to allow the Committee to
                                                handlers. As with all Federal marketing                 were received.                                        reduce its financial reserve while still
                                                order programs, reports and forms are                                                                         providing adequate funding to meet
                                                periodically reviewed to reduce                         List of Subjects in 7 CFR Part 983
                                                                                                                                                              program expenses.
                                                information requirements and                              Marketing agreements, Pistachios,                   DATES: Effective February 29, 2016.
                                                duplication by industry and public                      Reporting and recordkeeping
                                                sector agencies. As noted in the initial                                                                      FOR FURTHER INFORMATION CONTACT:
                                                                                                        requirements.
                                                regulatory flexibility analysis, USDA                                                                         Terry Vawter, Senior Marketing
                                                                                                          For the reasons set forth in the
                                                has not identified any relevant Federal                                                                       Specialist, or Jeff Smutny, Regional
                                                                                                        preamble, 7 CFR part 983 is amended as
                                                rules that duplicate, overlap, or conflict                                                                    Director, California Marketing Field
                                                                                                        follows:
                                                with this final rule.                                                                                         Office, Marketing Order and Agreement
                                                  AMS is committed to complying with                    PART 983—PISTACHIOS GROWN IN                          Division, Specialty Crops Program,
                                                the E-Government Act, to promote the                    CALIFORNIA, ARIZONA, and NEW                          AMS, USDA; Telephone: (559) 487–
                                                use of the Internet and other                           MEXICO                                                5901, Fax: (559) 487–5906, or Email:
                                                information technologies to provide                                                                           Terry.Vawter@ams.usda.gov or
                                                increased opportunities for citizen                     ■ 1. The authority citation for 7 CFR                 Jeffrey.Smutny@ams.usda.gov.
                                                access to Government information and                    part 983 continues to read as follows:                   Small businesses may obtain
                                                services, and for other purposes.                           Authority: 7 U.S.C. 601–674.                      information on complying with this and
                                                  A proposed rule concerning this                                                                             other marketing order regulations by
                                                                                                        ■ 2. In § 983.253, paragraph (a) is                   viewing a guide at the following Web
                                                action was published in the Federal
                                                                                                        revised to read as follows:                           site: http://www.ams.usda.gov/rules-
                                                Register on December 14, 2015. Copies
                                                of the proposed rule were also mailed or                § 983.253    Assessment rate.                         regulations/moa/small-businesses; or by
                                                sent via facsimile to all California,                     (a) On and after September 1, 2015, an              contacting Antoinette Carter, Marketing
                                                Arizona, and New Mexico pistachio                       assessment rate of $0.0035 per pound is               Order and Agreement Division,
                                                handlers. Finally, the proposal was                     established for California, Arizona, and              Specialty Crops Program, AMS, USDA,
                                                made available through the Internet by                  New Mexico pistachios.                                1400 Independence Avenue SW., STOP
                                                USDA and the Office of the Federal                                                                            0237, Washington, DC 20250–0237;
                                                                                                        *     *    *     *     *                              Telephone: (202) 720–2491, Fax: (202)
                                                Register. A 15-day comment period
                                                ending December 29, 2015, was                             Dated: February 22, 2016.                           720–8938, or Email: Antoinette.Carter@
                                                provided for interested persons to                      Elanor Starmer,                                       ams.usda.gov.
                                                respond to the proposal. No comments                    Acting Administrator, Agricultural Marketing          SUPPLEMENTARY INFORMATION: This rule
                                                were received. A small business guide                   Service.                                              is issued under Marketing Agreement
                                                on complying with fruit, vegetable, and                 [FR Doc. 2016–04049 Filed 2–25–16; 8:45 am]           and Order No. 987, both as amended (7
                                                specialty crop marketing agreements                     BILLING CODE P                                        CFR part 987), regulating the handling
                                                and orders may be viewed at: http://                                                                          of dates produced or packed in
                                                www.ams.usda.gov/rules-regulations/                                                                           Riverside County, California, hereinafter
                                                moa/small-businesses. Any questions                     DEPARTMENT OF AGRICULTURE                             referred to as the ‘‘order.’’ The order is
                                                about the compliance guide should be                                                                          effective under the Agricultural
                                                sent to Antoinette Carter at the                        Agricultural Marketing Service                        Marketing Agreement Act of 1937, as
                                                previously mentioned address in the                                                                           amended (7 U.S.C. 601–674), hereinafter
                                                                                                        7 CFR Part 987                                        referred to as the ‘‘Act.’’
                                                FOR FURTHER INFORMATION CONTACT
                                                section.                                                [Docket No. AMS–FV–15–0034; FV15–987–                    The Department of Agriculture
                                                  After consideration of all relevant                   1 FIR]                                                (USDA) is issuing this rule in
                                                material presented, including the                                                                             conformance with Executive Orders
                                                information and recommendation                          Domestic Dates Produced or Packed in                  12866, 13563, and 13175.
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                                                submitted by the Committee and other                    Riverside County, California;                            Under the order, Riverside County,
                                                available information, it is hereby found               Decreased Assessment Rate                             California, date handlers are subject to
                                                that this rule, as hereinafter set forth,               AGENCY:   Agricultural Marketing Service,             assessments, which provide funds to
                                                will tend to effectuate the declared                    USDA.                                                 administer the order. Assessment rates
                                                policy of the Act.                                                                                            issued under the order are intended to
                                                                                                        ACTION: Affirmation of interim rule as
                                                  Pursuant to 5 U.S.C. 553, it also found                                                                     be applicable to all assessable dates for
                                                                                                        final rule.
                                                and determined that good cause exists                                                                         the entire crop year and continue


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Document Created: 2018-02-02 14:37:06
Document Modified: 2018-02-02 14:37:06
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesEffective February 29, 2016.
ContactPeter Sommers, Marketing Specialist, or Jeffrey Smutny, Regional Director, California Marketing Field Office, Marketing Order and Agreement Division, Specialty Crops Program, AMS, USDA; Telephone: (559) 487-5901, Fax: (559) 487-5906, or Email: [email protected] or [email protected]
FR Citation81 FR 9741 
CFR AssociatedMarketing Agreements; Pistachios and Reporting and Recordkeeping Requirements

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