83_FR_21255 83 FR 21165 - Grapes Grown in a Designated Area of Southeastern California; Decreased Assessment Rate

83 FR 21165 - Grapes Grown in a Designated Area of Southeastern California; Decreased Assessment Rate

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 83, Issue 90 (May 9, 2018)

Page Range21165-21167
FR Document2018-09817

This rule implements a recommendation from the California Desert Grape Administrative Committee (Committee) to decrease the assessment rate established for the 2018 fiscal period for grapes grown in a designated area of southeastern California. The assessment rate will remain in effect indefinitely unless modified, suspended, or terminated.

Federal Register, Volume 83 Issue 90 (Wednesday, May 9, 2018)
[Federal Register Volume 83, Number 90 (Wednesday, May 9, 2018)]
[Rules and Regulations]
[Pages 21165-21167]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-09817]



========================================================================
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. 

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


Federal Register / Vol. 83, No. 90 / Wednesday, May 9, 2018 / Rules 
and Regulations

[[Page 21165]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 925

[Doc. No. AMS-SC-17-0082; SC18-925-1 FR]


Grapes Grown in a Designated Area of Southeastern California; 
Decreased Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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

SUMMARY: This rule implements a recommendation from the California 
Desert Grape Administrative Committee (Committee) to decrease the 
assessment rate established for the 2018 fiscal period for grapes grown 
in a designated area of southeastern California. The assessment rate 
will remain in effect indefinitely unless modified, suspended, or 
terminated.

DATES: Effective June 8, 2018.

FOR FURTHER INFORMATION CONTACT: Maria Stobbe, 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: 
Maria.Stobbe@ams.usda.gov or Jeffrey.Smutny@ams.usda.gov.
    Small businesses may request information on complying with this 
regulation by contacting Richard Lower, Marketing Order and Agreement 
Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue 
SW, STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-2491, 
Fax: (202) 720-8938, or Email: Richard.Lower@ams.usda.gov.

SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553, 
amends regulations issued to carry out a marketing order as defined in 
7 CFR 900.2(j). This rule is issued under Marketing Agreement and Order 
No. 925, as amended (7 CFR part 925), regulating the handling of grapes 
grown in a designated area of southeastern California. Part 925 
(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 
grapes operating within the area of production, and a member of the 
public.
    The Department of Agriculture (USDA) is issuing this 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 rule 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' '' (February 2, 2017).
    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. Under the Order now in effect, grape handlers in a 
designated area of southeastern California are subject to assessments. 
Funds to administer the Order are derived from such assessments. It is 
intended that the assessment rate as established herein would be 
applicable to all assessable grapes beginning on January 1, 2018, 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 decreases the assessment rate established for the 2018 
and subsequent fiscal periods from $0.030 to $0.020 per 18-pound lug of 
grapes handled.
    The Order provides authority for the Committee, with the approval 
of USDA, to formulate an annual budget of expenses and collect 
assessments from handlers to administer the program. The members of the 
Committee are producers and handlers of grapes grown in a designated 
area of southeastern California, and a member of the public. 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 2016 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 November 30, 2017, and unanimously recommended 
2018 fiscal year expenditures of $119,000, with an estimated cash 
reserve of $115,000, and an assessment rate of $0.020 per 18-pound lug 
of grapes. In comparison, last fiscal year's budgeted expenditures were 
$108,500. The assessment rate of $0.020 is $0.010 lower than the rate 
currently in effect. The 2017 crop, at the higher assessment rate 
currently in effect, provided more income than required to cover 
expenses, resulting in an estimated financial reserve of $140,000. The 
financial reserves are sufficient to supplement this fiscal year's 
revenues at an assessment rate of $0.020 per 18-pound lug of grapes to 
fully fund the recommended 2018 budgeted expenditures.
    The major expenditures recommended by the Committee for the

[[Page 21166]]

2018 fiscal year include $65,000 for management and compliance 
services, $25,500 in office expenditures, and $28,500 for research. 
Budgeted expenses for these items in fiscal year 2017 were $50,000 for 
management and compliance services, $28,330 in office expenditures, and 
$28,500 for research.
    The assessment rate recommended by the Committee was derived by 
considering anticipated expenses, expected shipments of grapes in the 
production area, and the level of funds in the authorized reserve. 
Grape shipments for the year are estimated at 4.7 million 18-pound 
lugs, which should provide $94,000 in assessment income. Income derived 
from handler assessments, along with interest income and funds from the 
Committee's authorized reserve, should be adequate to cover budgeted 
expenses. Funds in the reserve (currently $140,000) would be kept 
within the maximum permitted by the Order (approximately one fiscal 
period's expenses as stated in Sec.  925.42(a)(2)). The Committee would 
utilize approximately $25,000 of its reserve funds to fully fund the 
recommended 2018 fiscal year budget, while assessing the new 2018 
fiscal year crop at the lower rate.
    The assessment rate established in this rule will continue in 
effect indefinitely unless modified, suspended, or terminated by USDA 
upon recommendation and information submitted by the Committee or other 
available information.
    Although this assessment rate will be 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 will 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 budget for fiscal year 2018 
and those for subsequent fiscal periods will 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 38 producers of grapes in the production 
area and approximately 14 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).
    Eleven of the 14 handlers subject to the Marketing Order have 
annual grape sales of less than $7,500,000, according to USDA Market 
News Service and Committee data. In addition, information from the 
Committee and USDA's Market News shipping point pricing data indicates 
that at least ten of the 38 producers have annual receipts of less than 
$750,000. Thus, it may be concluded that a majority of the grape 
handlers regulated under the Marketing Order and at least ten of the 
producers could be classified as small entities under the SBA's 
definitions.
    This rule decreases the assessment rate collected from handlers for 
the 2018 and subsequent fiscal periods from $0.030 to $0.020 per 18-
pound lug of grapes. The Committee unanimously recommended fiscal year 
2018 expenditures of $119,000 and an assessment rate of $0.020 per 18-
pound lug. The assessment rate of $0.020 is $0.010 lower than the 2017 
rate. The quantity of assessable commodity for the 2018 fiscal year is 
estimated at 4.7 million 18-pound lugs. Thus, the $0.020 rate should 
provide $94,000 in assessment income. Assessment income, interest 
income, plus the use of $25,000 in reserve funds, should be adequate to 
meet this 2018 fiscal year's expenses.
    The major expenditures recommended by the Committee for the 2018 
fiscal year include $65,000 for management and compliance services, 
$25,500 in office expenditures, and $28,500 for research. Budgeted 
expenses for these items in 2017 were $50,000 for management and 
compliance services, $28,330 in office expenditures, and $28,500 for 
research.
    Prior to arriving at this budget and assessment rate, the Committee 
considered various options, such as maintaining the current assessment 
rate and expenditure levels. Alternative expenditure levels were 
discussed by the Committee, based upon the relative value of various 
activities to the grape industry. The Committee ultimately determined 
that 2018 expenditures of $119,000 were appropriate, and the 
recommended assessment rate and the use of $25,000 from the carry over 
financial reserves should provide sufficient revenue to meet its 
expenses.
    A review of historical crop and price information, indicates that 
the shipping point price for the 2017 season averaged about $21.62 per 
18-pound lug of California desert grapes handled. If the 2018 price is 
similar to the 2017 price, estimated assessment revenue as a percentage 
of total estimated handler revenue would be 0.09 percent for the 2018 
season ($0.020 divided by $21.62 per 18-pound lug).
    This action decreases 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 reduce the 
burden on producers. In addition, the Committee's meeting was widely 
publicized throughout the production area. The grape industry and all 
interested persons were invited to attend the meeting and participate 
in Committee deliberations on all issues. Like all Committee meetings, 
the November 30, 2017, meeting was a public meeting and all entities, 
both large and small, were able to express views on this issue.
    In accordance with the Paperwork Reduction Act of 1995, (44 U.S.C. 
Chapter 35), the Order's information collection requirements have been 
previously approved by OMB and assigned OMB No. 0581-0189, Generic 
Fruit Crops. No changes in those requirements are necessary as a result 
of this action. Should any changes become necessary, they would be 
submitted to OMB for approval.
    This rule imposes no additional reporting or recordkeeping 
requirements on either small or large southeastern California grape 
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 mentioned in the 
initial regulatory flexibility analysis, USDA has not identified any 
relevant Federal rules that duplicate, overlap, or conflict with this 
final rule.

[[Page 21167]]

    AMS is committed to complying with the E-Government Act, to promote 
the use of the internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services, and for other purposes.
    USDA has not identified any relevant Federal rules that duplicate, 
overlap, or conflict with this action.
    A proposed rule concerning this action was published in the Federal 
Register on March 1, 2018 (83 FR 8802). Copies of the proposed rule 
were also mailed or sent via facsimile to all grape handlers. Finally, 
the proposal was made available through the internet by USDA and the 
Office of the Federal Register. A 30-day comment period ending April 2, 
2018, was provided for interested persons to respond to the proposal. 
One comment was received in support of the decreased assessment rate. 
The commenter stated that a decreased assessment rate should result in 
lower costs to the industry and ultimately to the consumer. No changes 
will be made to the rule as proposed based on the comments received. 
The proposal contained administrative revisions to the Order's subpart 
headings to bring the language into conformance with the Office of 
Federal Register requirements. These revisions are not included in this 
rule as they were included in a technical amendment final rule 
published in the Federal Register on April 6, 2018 (83 FR 14736).
    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.
    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 will tend to 
effectuate the declared policy of the Act.

List of Subjects in 7 CFR Part 925

    Grapes, Marketing agreements, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 925 is 
amended as follows:

PART 925--GRAPES GROWN IN A DESIGNATED AREA OF SOUTHEASTERN 
CALIFORNIA

0
1. The authority citation for part 925 continues to read as follows:

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

0
2. Section 925.215 is revised to read as follows:


Sec.  925.215   Assessment rate.

    On and after January 1, 2018, an assessment rate of $0.020 per 18-
pound lug is established for grapes grown in a designated area of 
southeastern California.

    Dated: May 3, 2018
Bruce Summers,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2018-09817 Filed 5-8-18; 8:45 am]
 BILLING CODE 3410-02-P



                                                                                                                                                                                           21165

                                           Rules and Regulations                                                                                         Federal Register
                                                                                                                                                         Vol. 83, No. 90

                                                                                                                                                         Wednesday, May 9, 2018



                                           This section of the FEDERAL REGISTER                    Marketing Agreement and Order No.                     inhabitant, or has his or her principal
                                           contains regulatory documents having general            925, as amended (7 CFR part 925),                     place of business, has jurisdiction to
                                           applicability and legal effect, most of which           regulating the handling of grapes grown               review USDA’s ruling on the petition,
                                           are keyed to and codified in the Code of                in a designated area of southeastern                  provided an action is filed not later than
                                           Federal Regulations, which is published under           California. Part 925 (referred to as the              20 days after the date of the entry of the
                                           50 titles pursuant to 44 U.S.C. 1510.
                                                                                                   ‘‘Order’’) is effective under the                     ruling.
                                           The Code of Federal Regulations is sold by              Agricultural Marketing Agreement Act                    This rule decreases the assessment
                                           the Superintendent of Documents.                        of 1937, as amended (7 U.S.C. 601–674),               rate established for the 2018 and
                                                                                                   hereinafter referred to as the ‘‘Act.’’ The           subsequent fiscal periods from $0.030 to
                                                                                                   Committee locally administers the                     $0.020 per 18-pound lug of grapes
                                           DEPARTMENT OF AGRICULTURE                               Order and is comprised of producers                   handled.
                                                                                                   and handlers of grapes operating within                 The Order provides authority for the
                                           Agricultural Marketing Service                          the area of production, and a member of               Committee, with the approval of USDA,
                                                                                                   the public.                                           to formulate an annual budget of
                                           7 CFR Part 925                                             The Department of Agriculture                      expenses and collect assessments from
                                           [Doc. No. AMS–SC–17–0082; SC18–925–1                    (USDA) is issuing this rule in                        handlers to administer the program. The
                                           FR]                                                     conformance with Executive Orders                     members of the Committee are
                                                                                                   13563 and 13175. This action falls                    producers and handlers of grapes grown
                                           Grapes Grown in a Designated Area of                    within a category of regulatory actions               in a designated area of southeastern
                                           Southeastern California; Decreased                      that the Office of Management and                     California, and a member of the public.
                                           Assessment Rate                                         Budget (OMB) exempted from Executive                  They are familiar with the Committee’s
                                                                                                   Order 12866 review. Additionally,                     needs and with the costs for goods and
                                           AGENCY:  Agricultural Marketing Service,
                                                                                                   because this rule does not meet the                   services in their local area and are thus
                                           USDA.
                                                                                                   definition of a significant regulatory                in a position to formulate an appropriate
                                           ACTION: Final rule.                                     action, it does not trigger the                       budget and assessment rate. The
                                           SUMMARY:   This rule implements a                       requirements contained in Executive                   assessment rate is formulated and
                                           recommendation from the California                      Order 13771. See OMB’s Memorandum                     discussed in a public meeting. Thus, all
                                           Desert Grape Administrative Committee                   titled ‘‘Interim Guidance Implementing                directly affected persons have an
                                           (Committee) to decrease the assessment                  Section 2 of the Executive Order of                   opportunity to participate and provide
                                           rate established for the 2018 fiscal                    January 30, 2017, titled ‘Reducing                    input.
                                           period for grapes grown in a designated                 Regulation and Controlling Regulatory                   For the 2016 and subsequent fiscal
                                           area of southeastern California. The                    Costs’ ’’ (February 2, 2017).                         periods, the Committee recommended,
                                           assessment rate will remain in effect                      This rule has been reviewed under                  and USDA approved, an assessment rate
                                           indefinitely unless modified,                           Executive Order 12988, Civil Justice                  that would continue in effect from fiscal
                                           suspended, or terminated.                               Reform. Under the Order now in effect,                period to fiscal period unless modified,
                                                                                                   grape handlers in a designated area of                suspended, or terminated by USDA
                                           DATES: Effective June 8, 2018.
                                                                                                   southeastern California are subject to                upon recommendation and information
                                           FOR FURTHER INFORMATION CONTACT:                        assessments. Funds to administer the                  submitted by the Committee or other
                                           Maria Stobbe, Marketing Specialist or                   Order are derived from such                           information available to USDA.
                                           Jeffrey Smutny, Regional Director,                      assessments. It is intended that the                    The Committee met on November 30,
                                           California Marketing Field Office,                      assessment rate as established herein                 2017, and unanimously recommended
                                           Marketing Order and Agreement                           would be applicable to all assessable                 2018 fiscal year expenditures of
                                           Division, Specialty Crops Program,                      grapes beginning on January 1, 2018,                  $119,000, with an estimated cash
                                           AMS, USDA; Telephone: (559) 487–                        and continue until amended,                           reserve of $115,000, and an assessment
                                           5901, Fax: (559) 487–5906, or Email:                    suspended, or terminated.                             rate of $0.020 per 18-pound lug of
                                           Maria.Stobbe@ams.usda.gov or                               The Act provides that administrative               grapes. In comparison, last fiscal year’s
                                           Jeffrey.Smutny@ams.usda.gov.                            proceedings must be exhausted before                  budgeted expenditures were $108,500.
                                              Small businesses may request                         parties may file suit in court. Under                 The assessment rate of $0.020 is $0.010
                                           information on complying with this                      section 608c(15)(A) of the Act, any                   lower than the rate currently in effect.
                                           regulation by contacting Richard Lower,                 handler subject to an order may file                  The 2017 crop, at the higher assessment
                                           Marketing Order and Agreement                           with USDA a petition stating that the                 rate currently in effect, provided more
                                           Division, Specialty Crops Program,                      order, any provision of the order, or any             income than required to cover expenses,
                                           AMS, USDA, 1400 Independence                            obligation imposed in connection with                 resulting in an estimated financial
                                           Avenue SW, STOP 0237, Washington,                       the order is not in accordance with law               reserve of $140,000. The financial
                                           DC 20250–0237; Telephone: (202) 720–                    and request a modification of the order               reserves are sufficient to supplement
                                           2491, Fax: (202) 720–8938, or Email:                    or to be exempted therefrom. Such                     this fiscal year’s revenues at an
amozie on DSK3GDR082PROD with RULES




                                           Richard.Lower@ams.usda.gov.                             handler is afforded the opportunity for               assessment rate of $0.020 per 18-pound
                                           SUPPLEMENTARY INFORMATION: This                         a hearing on the petition. After the                  lug of grapes to fully fund the
                                           action, pursuant to 5 U.S.C. 553,                       hearing, USDA would rule on the                       recommended 2018 budgeted
                                           amends regulations issued to carry out                  petition. The Act provides that the                   expenditures.
                                           a marketing order as defined in 7 CFR                   district court of the United States in any              The major expenditures
                                           900.2(j). This rule is issued under                     district in which the handler is an                   recommended by the Committee for the


                                      VerDate Sep<11>2014   16:12 May 08, 2018   Jkt 244001   PO 00000   Frm 00001   Fmt 4700   Sfmt 4700   E:\FR\FM\09MYR1.SGM   09MYR1


                                           21166              Federal Register / Vol. 83, No. 90 / Wednesday, May 9, 2018 / Rules and Regulations

                                           2018 fiscal year include $65,000 for                    AMS has prepared this final regulatory                considered various options, such as
                                           management and compliance services,                     flexibility analysis.                                 maintaining the current assessment rate
                                           $25,500 in office expenditures, and                        The purpose of the RFA is to fit                   and expenditure levels. Alternative
                                           $28,500 for research. Budgeted expenses                 regulatory actions to the scale of                    expenditure levels were discussed by
                                           for these items in fiscal year 2017 were                businesses subject to such actions in                 the Committee, based upon the relative
                                           $50,000 for management and                              order that small businesses will not be               value of various activities to the grape
                                           compliance services, $28,330 in office                  unduly or disproportionately burdened.                industry. The Committee ultimately
                                           expenditures, and $28,500 for research.                 Marketing orders issued pursuant to the               determined that 2018 expenditures of
                                              The assessment rate recommended by                   Act, and the rules issued thereunder, are             $119,000 were appropriate, and the
                                           the Committee was derived by                            unique in that they are brought about                 recommended assessment rate and the
                                           considering anticipated expenses,                       through group action of essentially                   use of $25,000 from the carry over
                                           expected shipments of grapes in the                     small entities acting on their own                    financial reserves should provide
                                           production area, and the level of funds                 behalf.                                               sufficient revenue to meet its expenses.
                                           in the authorized reserve. Grape                           There are approximately 38 producers                  A review of historical crop and price
                                           shipments for the year are estimated at                 of grapes in the production area and                  information, indicates that the shipping
                                           4.7 million 18-pound lugs, which                        approximately 14 handlers subject to                  point price for the 2017 season averaged
                                           should provide $94,000 in assessment                    regulation under the Marketing Order.                 about $21.62 per 18-pound lug of
                                           income. Income derived from handler                     Small agricultural producers are defined              California desert grapes handled. If the
                                           assessments, along with interest income                 by the Small Business Administration                  2018 price is similar to the 2017 price,
                                           and funds from the Committee’s                          (SBA) as those having annual receipts                 estimated assessment revenue as a
                                           authorized reserve, should be adequate                  less than $750,000, and small                         percentage of total estimated handler
                                           to cover budgeted expenses. Funds in                    agricultural service firms are defined as             revenue would be 0.09 percent for the
                                           the reserve (currently $140,000) would                  those whose annual receipts are less                  2018 season ($0.020 divided by $21.62
                                           be kept within the maximum permitted                    than $7,500,000 (13 CFR 121.201).                     per 18-pound lug).
                                           by the Order (approximately one fiscal                     Eleven of the 14 handlers subject to
                                                                                                   the Marketing Order have annual grape                    This action decreases the assessment
                                           period’s expenses as stated in                                                                                obligation imposed on handlers.
                                           § 925.42(a)(2)). The Committee would                    sales of less than $7,500,000, according
                                                                                                   to USDA Market News Service and                       Assessments are applied uniformly on
                                           utilize approximately $25,000 of its                                                                          all handlers, and some of the costs may
                                           reserve funds to fully fund the                         Committee data. In addition,
                                                                                                   information from the Committee and                    be passed on to producers. However,
                                           recommended 2018 fiscal year budget,                                                                          decreasing the assessment rate reduces
                                           while assessing the new 2018 fiscal year                USDA’s Market News shipping point
                                                                                                   pricing data indicates that at least ten of           the burden on handlers, and may reduce
                                           crop at the lower rate.
                                                                                                   the 38 producers have annual receipts of              the burden on producers. In addition,
                                              The assessment rate established in
                                           this rule will continue in effect                       less than $750,000. Thus, it may be                   the Committee’s meeting was widely
                                           indefinitely unless modified,                           concluded that a majority of the grape                publicized throughout the production
                                           suspended, or terminated by USDA                        handlers regulated under the Marketing                area. The grape industry and all
                                           upon recommendation and information                     Order and at least ten of the producers               interested persons were invited to
                                           submitted by the Committee or other                     could be classified as small entities                 attend the meeting and participate in
                                           available information.                                  under the SBA’s definitions.                          Committee deliberations on all issues.
                                              Although this assessment rate will be                   This rule decreases the assessment                 Like all Committee meetings, the
                                           effective for an indefinite period, the                 rate collected from handlers for the 2018             November 30, 2017, meeting was a
                                           Committee will continue to meet prior                   and subsequent fiscal periods from                    public meeting and all entities, both
                                           to or during each fiscal period to                      $0.030 to $0.020 per 18-pound lug of                  large and small, were able to express
                                           recommend a budget of expenses and                      grapes. The Committee unanimously                     views on this issue.
                                           consider recommendations for                            recommended fiscal year 2018                             In accordance with the Paperwork
                                           modification of the assessment rate. The                expenditures of $119,000 and an                       Reduction Act of 1995, (44 U.S.C.
                                           dates and times of Committee meetings                   assessment rate of $0.020 per 18-pound                Chapter 35), the Order’s information
                                           are available from the Committee or                     lug. The assessment rate of $0.020 is                 collection requirements have been
                                           USDA. Committee meetings are open to                    $0.010 lower than the 2017 rate. The                  previously approved by OMB and
                                           the public, and interested persons may                  quantity of assessable commodity for                  assigned OMB No. 0581–0189, Generic
                                           express their views at these meetings.                  the 2018 fiscal year is estimated at 4.7              Fruit Crops. No changes in those
                                           USDA will evaluate Committee                            million 18-pound lugs. Thus, the $0.020               requirements are necessary as a result of
                                           recommendations and other available                     rate should provide $94,000 in                        this action. Should any changes become
                                           information to determine whether                        assessment income. Assessment income,                 necessary, they would be submitted to
                                           modification of the assessment rate is                  interest income, plus the use of $25,000              OMB for approval.
                                           needed. Further rulemaking will be                      in reserve funds, should be adequate to                  This rule imposes no additional
                                           undertaken as necessary. The                            meet this 2018 fiscal year’s expenses.                reporting or recordkeeping requirements
                                           Committee’s budget for fiscal year 2018                    The major expenditures                             on either small or large southeastern
                                           and those for subsequent fiscal periods                 recommended by the Committee for the                  California grape handlers. As with all
                                           will be reviewed and, as appropriate,                   2018 fiscal year include $65,000 for                  Federal marketing order programs,
                                           approved by USDA.                                       management and compliance services,                   reports and forms are periodically
                                                                                                   $25,500 in office expenditures, and                   reviewed to reduce information
                                           Final Regulatory Flexibility Analysis                   $28,500 for research. Budgeted expenses               requirements and duplication by
amozie on DSK3GDR082PROD with RULES




                                             Pursuant to requirements set forth in                 for these items in 2017 were $50,000 for              industry and public sector agencies. As
                                           the Regulatory Flexibility Act (RFA)                    management and compliance services,                   mentioned in the initial regulatory
                                           (5 U.S.C. 601–612), the Agricultural                    $28,330 in office expenditures, and                   flexibility analysis, USDA has not
                                           Marketing Service (AMS) has                             $28,500 for research.                                 identified any relevant Federal rules
                                           considered the economic impact of this                     Prior to arriving at this budget and               that duplicate, overlap, or conflict with
                                           rule on small entities. Accordingly,                    assessment rate, the Committee                        this final rule.


                                      VerDate Sep<11>2014   16:12 May 08, 2018   Jkt 244001   PO 00000   Frm 00002   Fmt 4700   Sfmt 4700   E:\FR\FM\09MYR1.SGM   09MYR1


                                                              Federal Register / Vol. 83, No. 90 / Wednesday, May 9, 2018 / Rules and Regulations                                                 21167

                                              AMS is committed to complying with                   PART 925—GRAPES GROWN IN A                            SUPPLEMENTARY INFORMATION:      The
                                           the E-Government Act, to promote the                    DESIGNATED AREA OF                                    Federal Reserve Banks make primary,
                                           use of the internet and other                           SOUTHEASTERN CALIFORNIA                               secondary, and seasonal credit available
                                           information technologies to provide                                                                           to depository institutions subject to
                                           increased opportunities for citizen                     ■ 1. The authority citation for part 925              rules and regulations prescribed by the
                                           access to Government information and                    continues to read as follows:                         Board. The primary, secondary, and
                                           services, and for other purposes.                           Authority: 7 U.S.C. 601–674.                      seasonal credit rates are the interest
                                              USDA has not identified any relevant                 ■ 2. Section 925.215 is revised to read               rates that the twelve Federal Reserve
                                           Federal rules that duplicate, overlap, or               as follows:                                           Banks charge for extensions of credit
                                           conflict with this action.                              § 925.215    Assessment rate.
                                                                                                                                                         under these programs. Under the
                                                                                                                                                         primary credit program, Federal Reserve
                                              A proposed rule concerning this                        On and after January 1, 2018, an
                                                                                                                                                         Banks may extend credit on a very
                                           action was published in the Federal                     assessment rate of $0.020 per 18-pound
                                                                                                   lug is established for grapes grown in a              short-term basis, typically overnight, to
                                           Register on March 1, 2018 (83 FR 8802).
                                                                                                   designated area of southeastern                       depository institutions that are in
                                           Copies of the proposed rule were also
                                                                                                   California.                                           generally sound condition in the
                                           mailed or sent via facsimile to all grape
                                                                                                                                                         judgment of the Federal Reserve Bank.
                                           handlers. Finally, the proposal was                       Dated: May 3, 2018
                                                                                                                                                         In accordance with the Federal Reserve
                                           made available through the internet by                  Bruce Summers,
                                                                                                                                                         Act, the primary credit rate is
                                           USDA and the Office of the Federal                      Acting Administrator, Agricultural Marketing          established by the boards of directors of
                                           Register. A 30-day comment period                       Service.
                                                                                                                                                         the Federal Reserve Banks, subject to
                                           ending April 2, 2018, was provided for                  [FR Doc. 2018–09817 Filed 5–8–18; 8:45 am]
                                                                                                                                                         review and determination of the Board.
                                           interested persons to respond to the                    BILLING CODE 3410–02–P
                                                                                                                                                         The primary credit rate is set forth in
                                           proposal. One comment was received in
                                                                                                                                                         § 201.51(a) of Regulation A.
                                           support of the decreased assessment
                                           rate. The commenter stated that a                       FEDERAL RESERVE SYSTEM                                   Section 201.3(e) of Regulation A,
                                           decreased assessment rate should result                                                                       adopted in December 2009, established
                                           in lower costs to the industry and                      12 CFR Part 201                                       criteria and procedures governing the
                                           ultimately to the consumer. No changes                  [Docket No. R–1585; RIN 7100–AE 90]                   acceptance by the Federal Reserve Bank
                                           will be made to the rule as proposed                                                                          of New York (FRBNY) of credit ratings
                                           based on the comments received. The                     Regulation A: Extensions of Credit by                 issued by credit rating agencies in
                                           proposal contained administrative                       Federal Reserve Banks                                 connection with extensions of credit
                                           revisions to the Order’s subpart                                                                              under the former TALF. On June 30,
                                                                                                   AGENCY:  Board of Governors of the
                                           headings to bring the language into                                                                           2010, the TALF was closed for new loan
                                                                                                   Federal Reserve System.
                                           conformance with the Office of Federal                                                                        extensions, and the final outstanding
                                                                                                   ACTION: Final rule.
                                           Register requirements. These revisions                                                                        TALF loan was repaid in full in October
                                           are not included in this rule as they                   SUMMARY:    The Board of Governors of the             2014.1
                                           were included in a technical                            Federal Reserve System (Board) is
                                                                                                                                                         I. Notice of Proposed Rulemaking
                                           amendment final rule published in the                   adopting final amendments to its
                                           Federal Register on April 6, 2018 (83 FR                Regulation A to revise the provisions                   On December 8, 2017, the Board
                                           14736).                                                 regarding the establishment of the                    published a notice of proposed
                                                                                                   primary credit rate in a financial                    rulemaking in the Federal Register
                                              A small business guide on complying                  emergency and to delete the provisions
                                           with fruit, vegetable, and specialty crop                                                                     proposing amendments to Regulation A
                                                                                                   relating to the use of credit ratings for             that would (1) revise the regulatory
                                           marketing agreements and orders may                     collateral for extensions of credit under
                                           be viewed at: http://www.ams.usda.gov/                                                                        procedures for establishing the primary
                                                                                                   the former Term Asset-Backed                          credit rate in a financial emergency; and
                                           rules-regulations/moa/small-businesses.                 Securities Loan Facility (TALF). The
                                           Any questions about the compliance                                                                            (2) delete the provisions relating to the
                                                                                                   final amendments are intended to allow
                                           guide should be sent to Richard Lower                                                                         use of credit ratings for collateral for
                                                                                                   the regulation to address circumstances
                                           at the previously-mentioned address in                                                                        extensions of credit under the former
                                                                                                   in which the Federal Open Market
                                           the FOR FURTHER INFORMATION CONTACT                     Committee (FOMC) has established a                    TALF.2 Specifically, the Board proposed
                                           section.                                                target range for the federal funds rate               to amend § 201.51(d)(1) of Regulation A
                                                                                                   rather than a single target rate, and to              to provide that, in a financial
                                              After consideration of all relevant                                                                        emergency, the primary credit rate is the
                                           material presented, including the                       reflect the expiration of the TALF
                                                                                                   program.                                              target federal funds rate or, if the FOMC
                                           information and recommendation                                                                                has established a target range for the
                                           submitted by the Committee and other                    DATES: The final rule is effective June 8,
                                                                                                                                                         federal funds rate, a rate corresponding
                                           available information, it is hereby found               2018.
                                                                                                                                                         to the top of the target range. In
                                           that this rule will tend to effectuate the              FOR FURTHER INFORMATION CONTACT:
                                                                                                                                                         addition, the Board proposed to delete
                                           declared policy of the Act.                             Sophia H. Allison, Special Counsel,
                                                                                                                                                         § 201.3(e) of Regulation A as
                                                                                                   (202–452–3565), Legal Division, or Lyle
                                           List of Subjects in 7 CFR Part 925                                                                            unnecessary given the expiration of the
                                                                                                   Kumasaka, Senior Financial
                                                                                                   Analyst, (202–452–2382), Division of                  TALF program. The comment period on
amozie on DSK3GDR082PROD with RULES




                                             Grapes, Marketing agreements,                                                                               the proposed rule closed on January 8,
                                           Reporting and recordkeeping                             Monetary Affairs; for users of
                                                                                                   Telecommunications Device for the Deaf                2018.
                                           requirements.
                                                                                                   (TDD) only, contact 202–263–4869;
                                             For the reasons set forth in the                      Board of Governors of the Federal                       1 https://www.federalreserve.gov/monetarypolicy/
                                           preamble, 7 CFR part 925 is amended as                  Reserve System, 20th and C Streets NW,                talf.htm.
                                           follows:                                                Washington, DC 20551.                                   2 82 FR 57886 (Dec. 8, 2017).




                                      VerDate Sep<11>2014   16:12 May 08, 2018   Jkt 244001   PO 00000   Frm 00003   Fmt 4700   Sfmt 4700   E:\FR\FM\09MYR1.SGM   09MYR1



Document Created: 2018-05-09 03:17:45
Document Modified: 2018-05-09 03:17:45
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 June 8, 2018.
ContactMaria Stobbe, 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 Citation83 FR 21165 
CFR AssociatedGrapes; Marketing Agreements and Reporting and Recordkeeping Requirements

2024 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR