82_FR_57395 82 FR 57164 - Oranges and Grapefruit Grown in the Lower Rio Grande Valley in Texas; Decreased Assessment Rate

82 FR 57164 - Oranges and Grapefruit Grown in the Lower Rio Grande Valley in Texas; Decreased Assessment Rate

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 82, Issue 231 (December 4, 2017)

Page Range57164-57166
FR Document2017-25737

This proposed rule would implement a recommendation from the Texas Valley Citrus Committee (Committee) to decrease the assessment rate established for the 2017-18 and subsequent fiscal periods from $0.09 to $0.02 per 7/10-bushel carton or equivalent of oranges and grapefruit handled under the Marketing Order (Order). The assessment rate would remain in effect indefinitely unless modified, suspended, or terminated. This proposed rule also makes administrative revisions to the subpart headings to bring the language into conformance with the Office of Federal Register requirements.

Federal Register, Volume 82 Issue 231 (Monday, December 4, 2017)
[Federal Register Volume 82, Number 231 (Monday, December 4, 2017)]
[Proposed Rules]
[Pages 57164-57166]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-25737]


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

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

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


Federal Register / Vol. 82, No. 231 / Monday, December 4, 2017 / 
Proposed Rules

[[Page 57164]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 906

[Doc. No. AMS-SC-17-0037; SC17-906-1 PR]


Oranges and Grapefruit Grown in the Lower Rio Grande Valley in 
Texas; Decreased Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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

SUMMARY: This proposed rule would implement a recommendation from the 
Texas Valley Citrus Committee (Committee) to decrease the assessment 
rate established for the 2017-18 and subsequent fiscal periods from 
$0.09 to $0.02 per 7/10-bushel carton or equivalent of oranges and 
grapefruit handled under the Marketing Order (Order). The assessment 
rate would remain in effect indefinitely unless modified, suspended, or 
terminated. This proposed rule also makes administrative revisions to 
the subpart headings to bring the language into conformance with the 
Office of Federal Register requirements.

DATES: Comments must be received by January 3, 2018.

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 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: Doris Jamieson, 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].
    Small businesses may request information on complying with this 
regulation by contacting Richard Lower, Marketing Order and Agreement 
Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue 
SW., STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-2491, 
Fax: (202) 720-8938, or Email: [email protected].

SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553, 
proposes an amendment to regulations issued to carry out a marketing 
order as defined in 7 CFR 900.2(j). This proposal is issued under 
Marketing Agreement and Order No. 906, as amended (7 CFR part 906), 
regulating the handling of oranges and grapefruit grown in the Lower 
Rio Grande Valley in Texas. Part 906, (hereinafter referred to as 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 Committee locally administers the Order and is comprised 
of producers and handlers of oranges and grapefruit operating within 
the production area.
    The Department of Agriculture (USDA) is issuing this proposed rule 
in conformance with Executive Orders 13563 and 13175. This action falls 
within a category of regulatory actions that the Office of Management 
and Budget (OMB) exempted from Executive Order 12866 review. 
Additionally, because this proposal does not meet the definition of a 
significant regulatory action, it does not trigger the requirements 
contained in Executive Order 13771. See OMB's Memorandum titled 
``Interim Guidance Implementing Section 2 of the Executive Order of 
January 30, 2017, titled `Reducing Regulation and Controlling 
Regulatory Costs'[thinsp]'' (February 2, 2017).
    This proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. Under the Marketing Order now in effect, Texas 
orange and grapefruit handlers are subject to assessments. Funds to 
administer the Order are derived from such assessments. It is intended 
that the assessment rate will be applicable to all assessable oranges 
and grapefruit beginning on August 1, 2017, 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 decrease the assessment rate for the 2017-
18 and subsequent fiscal periods from $0.09 to $0.02 per 7/10-bushel 
carton or equivalent of oranges and grapefruit handled.
    The Texas orange and grapefruit 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 
Texas oranges and grapefruit. 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

[[Page 57165]]

opportunity to participate and provide input.
    For the 2016-17 and subsequent fiscal periods, the Committee 
recommended, and USDA approved, an assessment rate that would continue 
in effect from fiscal period to fiscal period unless modified, 
suspended, or terminated by USDA upon recommendation and information 
submitted by the Committee or other information available to USDA.
    The Committee met on August 8, 2017, and unanimously recommended 
2017-18 expenditures of $152,920 and an assessment rate of $0.02 per 7/
10-bushel carton or equivalent of oranges and grapefruit. In 
comparison, last year's budgeted expenditures were $751,148. The 
assessment rate of $0.02 is $0.07 lower than the rate currently in 
effect. The Committee recommended decreasing the assessment rate to 
reflect that they would not be funding the Mexican fruit fly control 
program, reducing their budget by more than $595,000.
    The major expenditures recommended by the Committee for the 2017-18 
year include $79,220 for management, $50,000 for compliance, and 
$23,700 for operating expenses. Budgeted expenses for these items in 
2016-17 were $77,200, $50,000, and $23,700, respectively.
    The assessment rate recommended by the Committee was derived by 
considering anticipated expenses, expected shipments of 7.5 million 7/
10-bushel cartons, and the amount of funds available in the authorized 
reserve. Income derived from handler assessments calculated at $150,000 
(7.5 million x $0.02), along with interest income and funds from the 
Committee's authorized reserve, would be adequate to cover budgeted 
expenses of $152,920. Funds in the reserve (currently $282,572) would 
be kept within the maximum permitted by the Order (approximately one 
fiscal period's expenses as stated in Sec.  906.35).
    The assessment rate recommended in this proposed rule 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 effective for an indefinite 
period, the Committee will continue to meet prior to or during each 
fiscal period to recommend a budget of expenses and consider 
recommendations for modification of the assessment rate. The dates and 
times of Committee meetings are available from the Committee or USDA. 
Committee meetings are open to the public and interested persons may 
express their views at these meetings. USDA would evaluate Committee 
recommendations and other available information to determine whether 
modification of the assessment rate is needed. Further rulemaking will 
be undertaken as necessary. The Committee's 2017-18 budget and those 
for subsequent fiscal periods will be reviewed and, as appropriate, 
approved by USDA.
    This proposed rule also makes administrative revisions to the 
subpart headings of the regulations.

Initial Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS) 
has considered the economic impact of this proposed rule on small 
entities. Accordingly, AMS has prepared this initial regulatory 
flexibility analysis.
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened. Marketing orders issued 
pursuant to the Act, and the rules issued thereunder, are unique in 
that they are brought about through group action of essentially small 
entities acting on their own behalf.
    There are approximately 170 producers of oranges and grapefruit in 
the production area and 13 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).
    According to Committee data, the average price for Texas citrus 
during the 2015-16 season was approximately $17.48 per box and total 
shipments were 7.5 million boxes. Using the average price and shipment 
information, the number of handlers (13), and assuming a normal 
distribution, the majority of handlers would have average annual 
receipts of greater than $7,500,000. Thus, the majority of Texas citrus 
handlers may be classified as large business entities.
    In addition, based on information from the National Agricultural 
Statistics Service, the weighted grower price for Texas citrus during 
the 2015-16 season was approximately $14.64 per box. Using the weighted 
average price and shipment information, and assuming a normal 
distribution, the majority of producers would have annual receipts of 
less than $750,000. Thus, the majority of Texas citrus producers may be 
classified as small business entities.
    This proposal would decrease the assessment rate collected from 
handlers for the 2017-18 and subsequent fiscal periods from $0.09 to 
$0.02 per 7/10-bushel carton or equivalent of Texas citrus. The 
Committee unanimously recommended 2017-18 expenditures of $152,920 and 
an assessment rate of $0.02 per 7/10-bushel carton or equivalent 
handled. The assessment rate of $0.02 is $0.07 lower than the 2016-17 
rate. The quantity of assessable oranges and grapefruit for the 2017-18 
fiscal period is estimated at 7.5 million 7/10-bushel cartons. Thus, 
the $0.02 rate should provide $150,000 in assessment income (7.5 
million x $0.02). Income derived from handler assessments, along with 
interest income and funds from the Committee's authorized reserve 
(currently $282,572), would be adequate to cover budgeted expenses.
    The major expenditures recommended by the Committee for the 2017-18 
year include $79,220 for management, $50,000 for compliance, and 
$23,700 for operating expenses. Budgeted expenses for these items in 
2016-17 were $77,200, $50,000, and $23,700, respectively.
    The Committee recommended decreasing the assessment rate to reflect 
that it would not be funding the Mexican fruit fly control program, 
reducing its budget by more than $595,000.
    Prior to arriving at this budget and assessment rate, the Committee 
considered information from various sources, such as the Committee's 
Budget and Personnel Committee, and the Research Committee. Alternative 
expenditure levels were discussed by these committees who reviewed the 
relative value of various activities to the Texas citrus industry. 
These committees determined that all program activities were adequately 
funded and essential to the functionality of the Order, thus no 
alternate expenditure levels were deemed appropriate. Additionally, 
alternate assessment rates of $0.01 and $0.015 per 7/10 bushel-carton 
were discussed. However, it was determined that these lower assessment 
rates would draw too heavily from reserves, roughly $78,000 and 
$43,000, respectively. The proposed rate of $0.02 per 7/10 bushel-
carton would draw an anticipated $2,800 from reserves, thereby leaving 
reserves intact for future needs.
    Based on these discussions and estimated shipments, the recommended 
assessment rate of $0.02 would provide $150,000 in assessment income. 
The

[[Page 57166]]

Committee determined that assessment revenue, along with funds from 
reserves and interest income, would be adequate to cover budgeted 
expenses for the 2017-18 fiscal period.
    A review of historical information and preliminary information 
pertaining to the upcoming fiscal period indicates that the average 
grower price for the 2017-18 season should be approximately $15.50 per 
7/10-bushel carton or equivalent of oranges and grapefruit. Therefore, 
the estimated assessment revenue for the 2017-18 crop year as a 
percentage of total grower revenue would be about 0.1 percent.
    This proposed rule would decrease the assessment obligation imposed 
on handlers. Assessments are applied uniformly on all handlers, and 
some of the costs may be passed on to producers. However, decreasing 
the assessment rate reduces the burden on handlers and may also reduce 
the burden on producers.
    The Committee's meeting was widely publicized throughout the Texas 
citrus industry. All interested persons were invited to attend the 
meeting and participate in Committee deliberations on all issues. Like 
all Committee meetings, the August 8, 2017, 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 OMB and assigned OMB No. 0581-0189, Fruit 
Crops. No changes in those requirements would be necessary as a result 
of this proposed rule. Should any changes become necessary, they would 
be submitted to OMB for approval.
    This proposed rule would not impose any additional reporting or 
recordkeeping requirements on either small or large Texas orange and 
grapefruit 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 rule.
    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 30-day comment period is provided to allow interested persons to 
respond to this proposal. Thirty days is deemed appropriate since the 
fiscal period began August 1, 2017, and the Order requires that the 
rate of assessment apply to all assessable oranges and grapefruit 
handled during such fiscal period. All written comments timely received 
will be considered before a final determination is made on this rule.

List of Subjects in 7 CFR Part 906

    Grapefruit, Marketing agreements, Oranges, Reporting and 
recordkeeping requirements.

    For the reasons set forth in the preamble, 7 CFR part 906 is 
amended as follows:

PART 906--ORANGES AND GRAPEFRUIT GROWN IN LOWER RIO GRANDE VALLEY 
IN TEXAS

0
1. The authority citation for 7 CFR part 906 continues to read as 
follows:

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

[Subpart Redesignated as Subpart A]

0
2. Redesignate ``Subpart--Order Regulating Handling'' as ``Subpart A--
Order Regulating Handling.''

[Subpart Redesignated as Subpart B and Amended]

0
 3. Redesignate ``Subpart--Rules and Regulations'' as Subpart B and 
revise heading to read as follows:

Subpart B--Administrative Requirements

0
4. Section 906.235 is revised to read as follows:


Sec.  906.235  Assessment rate.

    On and after August 1, 2017, an assessment rate of $0.02 per 7/10-
bushel carton or equivalent is established for oranges and grapefruit 
grown in the Lower Rio Grande Valley in Texas.

[Subpart Redesignated as Subpart C]

0
5. Redesignate ``Subpart--Container and Pack Requirements'' as 
``Subpart C--Container and Pack Requirements.''

    Dated: November 22, 2017.
Bruce Summers,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2017-25737 Filed 12-1-17; 8:45 am]
 BILLING CODE 3410-02-P



                                                 57164

                                                 Proposed Rules                                                                                                Federal Register
                                                                                                                                                               Vol. 82, No. 231

                                                                                                                                                               Monday, December 4, 2017



                                                 This section of the FEDERAL REGISTER                    rule will be included in the record and               Regulation and Controlling Regulatory
                                                 contains notices to the public of the proposed          will be made available to the public.                 Costs’ ’’ (February 2, 2017).
                                                 issuance of rules and regulations. The                  Please be advised that the identity of the              This proposed rule has been reviewed
                                                 purpose of these notices is to give interested          individuals or entities submitting the
                                                 persons an opportunity to participate in the                                                                  under Executive Order 12988, Civil
                                                                                                         comments will be made public on the                   Justice Reform. Under the Marketing
                                                 rule making prior to the adoption of the final
                                                 rules.
                                                                                                         Internet at the address provided above.               Order now in effect, Texas orange and
                                                                                                         FOR FURTHER INFORMATION CONTACT:                      grapefruit handlers are subject to
                                                                                                         Doris Jamieson, Marketing Specialist, or              assessments. Funds to administer the
                                                 DEPARTMENT OF AGRICULTURE                               Christian D. Nissen, Regional Director,               Order are derived from such
                                                                                                         Southeast Marketing Field Office,                     assessments. It is intended that the
                                                 Agricultural Marketing Service                          Marketing Order and Agreement                         assessment rate will be applicable to all
                                                                                                         Division, Specialty Crops Program,                    assessable oranges and grapefruit
                                                 7 CFR Part 906                                          AMS, USDA; Telephone: (863) 324–                      beginning on August 1, 2017, and
                                                 [Doc. No. AMS–SC–17–0037; SC17–906–1                    3375, Fax: (863) 291–8614, or Email:                  continue until amended, suspended, or
                                                 PR]                                                     Doris.Jamieson@ams.usda.gov or                        terminated.
                                                                                                         Christian.Nissen@ams.usda.gov.                          The Act provides that administrative
                                                 Oranges and Grapefruit Grown in the                       Small businesses may request                        proceedings must be exhausted before
                                                 Lower Rio Grande Valley in Texas;                       information on complying with this                    parties may file suit in court. Under
                                                 Decreased Assessment Rate                               regulation by contacting Richard Lower,               section 608c(15)(A) of the Act, any
                                                 AGENCY:  Agricultural Marketing Service,                Marketing Order and Agreement                         handler subject to an order may file
                                                 USDA.                                                   Division, Specialty Crops Program,                    with USDA a petition stating that the
                                                 ACTION: Proposed rule.
                                                                                                         AMS, USDA, 1400 Independence                          order, any provision of the order, or any
                                                                                                         Avenue SW., STOP 0237, Washington,                    obligation imposed in connection with
                                                 SUMMARY:   This proposed rule would                     DC 20250–0237; Telephone: (202) 720–                  the order is not in accordance with law
                                                 implement a recommendation from the                     2491, Fax: (202) 720–8938, or Email:                  and request a modification of the order
                                                 Texas Valley Citrus Committee                           Richard.Lower@ams.usda.gov.                           or to be exempted therefrom. Such
                                                 (Committee) to decrease the assessment                  SUPPLEMENTARY INFORMATION:       This                 handler is afforded the opportunity for
                                                 rate established for the 2017–18 and                    action, pursuant to 5 U.S.C. 553,                     a hearing on the petition. After the
                                                 subsequent fiscal periods from $0.09 to                 proposes an amendment to regulations                  hearing, USDA would rule on the
                                                 $0.02 per 7/10-bushel carton or                         issued to carry out a marketing order as              petition. The Act provides that the
                                                 equivalent of oranges and grapefruit                    defined in 7 CFR 900.2(j). This proposal              district court of the United States in any
                                                 handled under the Marketing Order                       is issued under Marketing Agreement                   district in which the handler is an
                                                 (Order). The assessment rate would                      and Order No. 906, as amended (7 CFR                  inhabitant, or has his or her principal
                                                 remain in effect indefinitely unless                    part 906), regulating the handling of                 place of business, has jurisdiction to
                                                 modified, suspended, or terminated.                     oranges and grapefruit grown in the                   review USDA’s ruling on the petition,
                                                 This proposed rule also makes                           Lower Rio Grande Valley in Texas. Part                provided an action is filed not later than
                                                 administrative revisions to the subpart                 906, (hereinafter referred to as the                  20 days after the date of the entry of the
                                                 headings to bring the language into                     ‘‘Order’’), is effective under the                    ruling.
                                                 conformance with the Office of Federal                  Agricultural Marketing Agreement Act                    This proposed rule would decrease
                                                 Register requirements.                                  of 1937, as amended (7 U.S.C. 601–674),               the assessment rate for the 2017–18 and
                                                 DATES: Comments must be received by                     hereinafter referred to as the ‘‘Act.’’ The           subsequent fiscal periods from $0.09 to
                                                 January 3, 2018.                                        Committee locally administers the                     $0.02 per 7/10-bushel carton or
                                                 ADDRESSES: Interested persons are                       Order and is comprised of producers                   equivalent of oranges and grapefruit
                                                 invited to submit written comments                      and handlers of oranges and grapefruit                handled.
                                                 concerning this proposed rule.                          operating within the production area.                   The Texas orange and grapefruit
                                                 Comments must be sent to the Docket                        The Department of Agriculture                      Marketing Order provides authority for
                                                 Clerk, Marketing Order and Agreement                    (USDA) is issuing this proposed rule in               the Committee, with the approval of
                                                 Division, Specialty Crops Program,                      conformance with Executive Orders                     USDA, to formulate an annual budget of
                                                 AMS, USDA, 1400 Independence                            13563 and 13175. This action falls                    expenses and collect assessments from
                                                 Avenue SW., STOP 0237, Washington,                      within a category of regulatory actions               handlers to administer the program. The
                                                 DC 20250–0237; Fax: (202) 720–8938; or                  that the Office of Management and                     members of the Committee are
                                                 Internet: http://www.regulations.gov.                   Budget (OMB) exempted from Executive                  producers and handlers of Texas
                                                 Comments should reference the                           Order 12866 review. Additionally,                     oranges and grapefruit. They are
ethrower on DSK3G9T082PROD with PROPOSALS




                                                 document number and the date and                        because this proposal does not meet the               familiar with the Committee’s needs and
                                                 page number of this issue of the Federal                definition of a significant regulatory                with the costs of goods and services in
                                                 Register and will be available for public               action, it does not trigger the                       their local area and are thus in a
                                                 inspection in the Office of the Docket                  requirements contained in Executive                   position to formulate an appropriate
                                                 Clerk during regular business hours, or                 Order 13771. See OMB’s Memorandum                     budget and assessment rate. The
                                                 can be viewed at: http://                               titled ‘‘Interim Guidance Implementing                assessment rate is formulated and
                                                 www.regulations.gov. All comments                       Section 2 of the Executive Order of                   discussed in a public meeting. Thus, all
                                                 submitted in response to this proposed                  January 30, 2017, titled ‘Reducing                    directly affected persons have an


                                            VerDate Sep<11>2014   16:46 Dec 01, 2017   Jkt 244001   PO 00000   Frm 00001   Fmt 4702   Sfmt 4702   E:\FR\FM\04DEP1.SGM   04DEP1


                                                                       Federal Register / Vol. 82, No. 231 / Monday, December 4, 2017 / Proposed Rules                                            57165

                                                 opportunity to participate and provide                  express their views at these meetings.                of less than $750,000. Thus, the majority
                                                 input.                                                  USDA would evaluate Committee                         of Texas citrus producers may be
                                                    For the 2016–17 and subsequent fiscal                recommendations and other available                   classified as small business entities.
                                                 periods, the Committee recommended,                     information to determine whether                         This proposal would decrease the
                                                 and USDA approved, an assessment rate                   modification of the assessment rate is                assessment rate collected from handlers
                                                 that would continue in effect from fiscal               needed. Further rulemaking will be                    for the 2017–18 and subsequent fiscal
                                                 period to fiscal period unless modified,                undertaken as necessary. The                          periods from $0.09 to $0.02 per 7/10-
                                                 suspended, or terminated by USDA                        Committee’s 2017–18 budget and those                  bushel carton or equivalent of Texas
                                                 upon recommendation and information                     for subsequent fiscal periods will be                 citrus. The Committee unanimously
                                                 submitted by the Committee or other                     reviewed and, as appropriate, approved                recommended 2017–18 expenditures of
                                                 information available to USDA.                          by USDA.                                              $152,920 and an assessment rate of
                                                    The Committee met on August 8,                         This proposed rule also makes                       $0.02 per 7/10-bushel carton or
                                                 2017, and unanimously recommended                       administrative revisions to the subpart               equivalent handled. The assessment rate
                                                 2017–18 expenditures of $152,920 and                    headings of the regulations.                          of $0.02 is $0.07 lower than the 2016–
                                                 an assessment rate of $0.02 per 7/10-                                                                         17 rate. The quantity of assessable
                                                 bushel carton or equivalent of oranges                  Initial Regulatory Flexibility Analysis
                                                                                                                                                               oranges and grapefruit for the 2017–18
                                                 and grapefruit. In comparison, last                        Pursuant to requirements set forth in              fiscal period is estimated at 7.5 million
                                                 year’s budgeted expenditures were                       the Regulatory Flexibility Act (RFA) (5               7/10-bushel cartons. Thus, the $0.02
                                                 $751,148. The assessment rate of $0.02                  U.S.C. 601–612), the Agricultural                     rate should provide $150,000 in
                                                 is $0.07 lower than the rate currently in               Marketing Service (AMS) has                           assessment income (7.5 million × $0.02).
                                                 effect. The Committee recommended                       considered the economic impact of this                Income derived from handler
                                                 decreasing the assessment rate to reflect               proposed rule on small entities.                      assessments, along with interest income
                                                 that they would not be funding the                      Accordingly, AMS has prepared this                    and funds from the Committee’s
                                                 Mexican fruit fly control program,                      initial regulatory flexibility analysis.              authorized reserve (currently $282,572),
                                                 reducing their budget by more than                         The purpose of the RFA is to fit                   would be adequate to cover budgeted
                                                 $595,000.                                               regulatory actions to the scale of                    expenses.
                                                    The major expenditures                               businesses subject to such actions in                    The major expenditures
                                                 recommended by the Committee for the                    order that small businesses will not be               recommended by the Committee for the
                                                 2017–18 year include $79,220 for                        unduly or disproportionately burdened.                2017–18 year include $79,220 for
                                                 management, $50,000 for compliance,                     Marketing orders issued pursuant to the               management, $50,000 for compliance,
                                                 and $23,700 for operating expenses.                     Act, and the rules issued thereunder, are             and $23,700 for operating expenses.
                                                 Budgeted expenses for these items in                    unique in that they are brought about                 Budgeted expenses for these items in
                                                 2016–17 were $77,200, $50,000, and                      through group action of essentially                   2016–17 were $77,200, $50,000, and
                                                 $23,700, respectively.                                  small entities acting on their own                    $23,700, respectively.
                                                    The assessment rate recommended by                   behalf.                                                  The Committee recommended
                                                 the Committee was derived by                               There are approximately 170                        decreasing the assessment rate to reflect
                                                 considering anticipated expenses,                       producers of oranges and grapefruit in                that it would not be funding the
                                                 expected shipments of 7.5 million 7/10-                 the production area and 13 handlers                   Mexican fruit fly control program,
                                                 bushel cartons, and the amount of funds                 subject to regulation under the                       reducing its budget by more than
                                                 available in the authorized reserve.                    Marketing Order. Small agricultural                   $595,000.
                                                 Income derived from handler                             producers are defined by the Small                       Prior to arriving at this budget and
                                                 assessments calculated at $150,000 (7.5                 Business Administration (SBA) as those                assessment rate, the Committee
                                                 million × $0.02), along with interest                   having annual receipts less than                      considered information from various
                                                 income and funds from the Committee’s                   $750,000, and small agricultural service              sources, such as the Committee’s Budget
                                                 authorized reserve, would be adequate                   firms are defined as those whose annual               and Personnel Committee, and the
                                                 to cover budgeted expenses of $152,920.                 receipts are less than $7,500,000 (13                 Research Committee. Alternative
                                                 Funds in the reserve (currently                         CFR 121.201).                                         expenditure levels were discussed by
                                                 $282,572) would be kept within the                         According to Committee data, the                   these committees who reviewed the
                                                 maximum permitted by the Order                          average price for Texas citrus during the             relative value of various activities to the
                                                 (approximately one fiscal period’s                      2015–16 season was approximately                      Texas citrus industry. These committees
                                                 expenses as stated in § 906.35).                        $17.48 per box and total shipments were               determined that all program activities
                                                    The assessment rate recommended in                   7.5 million boxes. Using the average                  were adequately funded and essential to
                                                 this proposed rule would continue in                    price and shipment information, the                   the functionality of the Order, thus no
                                                 effect indefinitely unless modified,                    number of handlers (13), and assuming                 alternate expenditure levels were
                                                 suspended, or terminated by USDA                        a normal distribution, the majority of                deemed appropriate. Additionally,
                                                 upon recommendation and information                     handlers would have average annual                    alternate assessment rates of $0.01 and
                                                 submitted by the Committee or other                     receipts of greater than $7,500,000.                  $0.015 per 7/10 bushel-carton were
                                                 available information.                                  Thus, the majority of Texas citrus                    discussed. However, it was determined
                                                    Although this assessment rate would                  handlers may be classified as large                   that these lower assessment rates would
                                                 be effective for an indefinite period, the              business entities.                                    draw too heavily from reserves, roughly
                                                 Committee will continue to meet prior                      In addition, based on information                  $78,000 and $43,000, respectively. The
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                                                 to or during each fiscal period to                      from the National Agricultural Statistics             proposed rate of $0.02 per 7/10 bushel-
                                                 recommend a budget of expenses and                      Service, the weighted grower price for                carton would draw an anticipated
                                                 consider recommendations for                            Texas citrus during the 2015–16 season                $2,800 from reserves, thereby leaving
                                                 modification of the assessment rate. The                was approximately $14.64 per box.                     reserves intact for future needs.
                                                 dates and times of Committee meetings                   Using the weighted average price and                     Based on these discussions and
                                                 are available from the Committee or                     shipment information, and assuming a                  estimated shipments, the recommended
                                                 USDA. Committee meetings are open to                    normal distribution, the majority of                  assessment rate of $0.02 would provide
                                                 the public and interested persons may                   producers would have annual receipts                  $150,000 in assessment income. The


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                                                 57166                 Federal Register / Vol. 82, No. 231 / Monday, December 4, 2017 / Proposed Rules

                                                 Committee determined that assessment                       USDA has not identified any relevant                 Dated: November 22, 2017.
                                                 revenue, along with funds from reserves                 Federal rules that duplicate, overlap, or             Bruce Summers,
                                                 and interest income, would be adequate                  conflict with this rule.                              Acting Administrator, Agricultural Marketing
                                                 to cover budgeted expenses for the                         A small business guide on complying                Service.
                                                 2017–18 fiscal period.                                  with fruit, vegetable, and specialty crop             [FR Doc. 2017–25737 Filed 12–1–17; 8:45 am]
                                                   A review of historical information and                marketing agreements and orders may                   BILLING CODE 3410–02–P
                                                 preliminary information pertaining to                   be viewed at: http://www.ams.usda.gov/
                                                 the upcoming fiscal period indicates                    rules-regulations/moa/small-businesses.
                                                 that the average grower price for the                   Any questions about the compliance                    DEPARTMENT OF AGRICULTURE
                                                 2017–18 season should be                                guide should be sent to Richard Lower
                                                 approximately $15.50 per 7/10-bushel                    at the previously mentioned address in                Agricultural Marketing Service
                                                 carton or equivalent of oranges and                     the FOR FURTHER INFORMATION CONTACT
                                                 grapefruit. Therefore, the estimated                    section.                                              7 CFR Part 986
                                                 assessment revenue for the 2017–18                         A 30-day comment period is provided
                                                                                                         to allow interested persons to respond                [Doc. No. AMS–SC–17–0039; SC17–986–3
                                                 crop year as a percentage of total grower                                                                     PR]
                                                 revenue would be about 0.1 percent.                     to this proposal. Thirty days is deemed
                                                   This proposed rule would decrease                     appropriate since the fiscal period began             Pecans Grown in the States of
                                                 the assessment obligation imposed on                    August 1, 2017, and the Order requires                Alabama, Arkansas, Arizona,
                                                 handlers. Assessments are applied                       that the rate of assessment apply to all              California, Florida, Georgia, Kansas,
                                                 uniformly on all handlers, and some of                  assessable oranges and grapefruit                     Louisiana, Missouri, Mississippi, North
                                                 the costs may be passed on to                           handled during such fiscal period. All                Carolina, New Mexico, Oklahoma,
                                                 producers. However, decreasing the                      written comments timely received will                 South Carolina, and Texas;
                                                 assessment rate reduces the burden on                   be considered before a final                          Establishment of Reporting
                                                 handlers and may also reduce the                        determination is made on this rule.                   Requirements and New Information
                                                 burden on producers.                                    List of Subjects in 7 CFR Part 906                    Collection
                                                   The Committee’s meeting was widely                      Grapefruit, Marketing agreements,
                                                 publicized throughout the Texas citrus                                                                        AGENCY:  Agricultural Marketing Service,
                                                                                                         Oranges, Reporting and recordkeeping                  USDA.
                                                 industry. All interested persons were                   requirements.
                                                 invited to attend the meeting and                                                                             ACTION: Proposed rule.
                                                                                                           For the reasons set forth in the
                                                 participate in Committee deliberations                  preamble, 7 CFR part 906 is amended as                SUMMARY:   This proposed rule invites
                                                 on all issues. Like all Committee                       follows:                                              comments on the establishment of
                                                 meetings, the August 8, 2017, meeting
                                                                                                                                                               reporting requirements under the
                                                 was a public meeting and all entities,                  PART 906—ORANGES AND                                  Federal marketing order for pecans
                                                 both large and small, were able to                      GRAPEFRUIT GROWN IN LOWER RIO                         (Order). These reporting requirements
                                                 express views on this issue. Finally,                   GRANDE VALLEY IN TEXAS                                would enable collection of information
                                                 interested persons are invited to submit
                                                                                                           1. The authority citation for 7 CFR                 from handlers on: Pecans received;
                                                 comments on this proposed rule,                         ■
                                                                                                         part 906 continues to read as follows:                pecans purchased outside the United
                                                 including the regulatory and
                                                                                                                                                               States; shipments and inventory of
                                                 informational impacts of this action on                     Authority: 7 U.S.C. 601–674.                      pecans; pecans exported by country of
                                                 small businesses.
                                                                                                                                                               destination; and pecans exported for
                                                   In accordance with the Paperwork                      [Subpart Redesignated as Subpart A]
                                                                                                                                                               shelling and returned to the United
                                                 Reduction Act of 1995 (44 U.S.C.
                                                                                                         ■ 2. Redesignate ‘‘Subpart—Order                      States. This information would be used
                                                 Chapter 35), the Order’s information
                                                                                                         Regulating Handling’’ as ‘‘Subpart A—                 to provide important statistical reports
                                                 collection requirements have been
                                                                                                         Order Regulating Handling.’’                          to the industry, meet requirements
                                                 previously approved by the OMB and
                                                                                                                                                               under the Order, and to help guide
                                                 assigned OMB No. 0581–0189, Fruit                       [Subpart Redesignated as Subpart B                    future marketing efforts. This proposal
                                                 Crops. No changes in those                              and Amended]                                          also announces the Agricultural
                                                 requirements would be necessary as a
                                                                                                         ■ 3. Redesignate ‘‘Subpart—Rules and                  Marketing Service’s intention to request
                                                 result of this proposed rule. Should any
                                                                                                         Regulations’’ as Subpart B and revise                 approval from the Office of Management
                                                 changes become necessary, they would
                                                                                                         heading to read as follows:                           and Budget of a new information
                                                 be submitted to OMB for approval.
                                                                                                                                                               collection.
                                                   This proposed rule would not impose
                                                                                                         Subpart B—Administrative                              DATES:  Comments must be received by
                                                 any additional reporting or
                                                                                                         Requirements                                          February 2, 2018. Pursuant to the
                                                 recordkeeping requirements on either
                                                 small or large Texas orange and                         ■ 4. Section 906.235 is revised to read               Paperwork Reduction Act, comments on
                                                 grapefruit handlers. As with all Federal                as follows:                                           the information collection burden must
                                                 marketing order programs, reports and                                                                         be received by February 2, 2018.
                                                 forms are periodically reviewed to                      § 906.235    Assessment rate.
                                                                                                                                                               ADDRESSES: Interested persons are
                                                 reduce information requirements and                       On and after August 1, 2017, an                     invited to submit written comments
                                                 duplication by industry and public                      assessment rate of $0.02 per 7/10-bushel              concerning this proposal. Comments
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                                                 sector agencies.                                        carton or equivalent is established for               must be sent to the Docket Clerk,
                                                   AMS is committed to complying with                    oranges and grapefruit grown in the                   Marketing Order and Agreement
                                                 the E-Government Act, to promote the                    Lower Rio Grande Valley in Texas.                     Division, Specialty Crops Program,
                                                 use of the Internet and other                                                                                 AMS, USDA, 1400 Independence
                                                                                                         [Subpart Redesignated as Subpart C]
                                                 information technologies to provide                                                                           Avenue SW., STOP 0237, Washington,
                                                 increased opportunities for citizen                     ■ 5. Redesignate ‘‘Subpart—Container                  DC 20250–0237; Fax: (202) 720–8938; or
                                                 access to Government information and                    and Pack Requirements’’ as ‘‘Subpart                  Internet: http://www.regulations.gov. All
                                                 services, and for other purposes.                       C—Container and Pack Requirements.’’                  comments should reference the


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Document Created: 2017-12-02 00:40:41
Document Modified: 2017-12-02 00:40:41
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 January 3, 2018.
ContactDoris Jamieson, 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 Citation82 FR 57164 
CFR AssociatedGrapefruit; Marketing Agreements; Oranges and Reporting and Recordkeeping Requirements

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