83_FR_49502 83 FR 49312 - Kiwifruit Grown California; Decreased Assessment Rate

83 FR 49312 - Kiwifruit Grown California; Decreased Assessment Rate

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 83, Issue 190 (October 1, 2018)

Page Range49312-49314
FR Document2018-21264

This proposed rule would implement a recommendation from the Kiwifruit Administrative Committee (Committee) to decrease the assessment rate established for the 2018-2019 and subsequent fiscal periods. The assessment rate would remain in effect indefinitely unless modified, suspended, or terminated.

Federal Register, Volume 83 Issue 190 (Monday, October 1, 2018)
[Federal Register Volume 83, Number 190 (Monday, October 1, 2018)]
[Proposed Rules]
[Pages 49312-49314]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-21264]


========================================================================
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. 83, No. 190 / Monday, October 1, 2018 / 
Proposed Rules

[[Page 49312]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 920

[Doc. No. AMS-SC-18-0060; SC18-920-1 PR]


Kiwifruit Grown California; Decreased Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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

SUMMARY: This proposed rule would implement a recommendation from the 
Kiwifruit Administrative Committee (Committee) to decrease the 
assessment rate established for the 2018-2019 and subsequent fiscal 
periods. The assessment rate would remain in effect indefinitely unless 
modified, suspended, or terminated.

DATES: Comments must be received by October 31, 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: Maria Stobbe, Marketing Specialist or 
Terry Vawter, Senior Marketing Specialist, California Marketing Field 
Office, Marketing Order and Agreement Division, Specialty Crops 
Program, AMS, USDA; Telephone: (559) 487-5901, Fax: (559) 487-5906, or 
email: [email protected] or [email protected].
    Small businesses may request information on complying with this 
regulation by contacting 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 proposed rule is issued under 
Marketing Agreement and Order No. 920, as amended (7 CFR part 920), 
regulating the handling of kiwifruit grown in California. Part 920 
(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 of kiwifruit 
operating within the area of production, and one member of the public.
    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' '' (February 2, 2017).
    This proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. Under the Order now in effect, kiwifruit handlers 
in California are subject to assessments. Funds to administer the Order 
are derived from such assessments. It is intended that the assessment 
rate would be applicable to all assessable kiwifruit for the 2018-2019 
fiscal period, 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.
    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 of kiwifruit grown in California, and one 
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.
    This proposed rule would decrease the assessment rate for the 2018-
2019 and subsequent fiscal periods from $0.040 to $0.025 per 9-kilo 
volume-fill container or equivalent of kiwifruit handled.
    The Committee met on July 19, 2018, and unanimously recommended 
2018-19 expenditures of $119,000, and an assessment rate of $0.025 per 
9-kilo volume-fill of kiwifruit. In comparison, last year's budgeted 
expenditures were $114,383. The assessment rate of $.025 is $0.015 
lower than the rate currently in effect. The Committee currently has a 
cash reserve of approximately $52,056. The proposed decreased 
assessment rate, plus the cash reserve are sufficient

[[Page 49313]]

to fund the 2018-2019 budgeted expenses.
    The major expenditures recommended by the Committee for 2018-2019 
include $80,000 for management services, $29,000 in office 
expenditures, and $10,000 for research. Budgeted expenses for these 
items in 2017-2018 were $80,000 for management services, $24,383 in 
office expenditures, and $10,000 for research.
    The assessment rate recommended by the Committee was derived by 
considering anticipated expenses, expected shipments of kiwifruit in 
the production area, and the level of funds in the authorized reserve. 
Kiwifruit shipments for the 2018-2019 season are estimated at 4,207,071 
9-kilo volume-fill containers, which should provide $105,177 in 
assessment income (4,207,071 9-kilo volume-fill containers times $0.025 
per container equals $105,177). Income derived from handler 
assessments, along with interest income and funds from the Committee's 
authorized reserve, would be adequate to cover budgeted expenses. Funds 
in the reserve (currently $52,056) would be kept within the maximum 
permitted by the Order (approximately one fiscal period's expenses).
    The assessment rate recommended in this proposal would continue in 
effect indefinitely unless modified, suspended, or terminated by USDA 
upon recommendation and information submitted by the Committee and 
other available information.
    Although this assessment rate would be in effect for an indefinite 
period, the Committee would continue to meet prior to or during each 
fiscal period to recommend a budget of expenses and consider 
recommendations for modification of the assessment rate. The dates and 
times of Committee meetings are available from the Committee or USDA. 
Committee meetings are open to the public and interested persons may 
express their views at these meetings. USDA would evaluate Committee 
recommendations and other available information to determine whether 
modification of the assessment rate is needed. Further rulemaking would 
be undertaken as necessary. The Committee's budget for subsequent 
fiscal periods would be reviewed and, as appropriate, approved by USDA.

Initial Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS) 
has considered the economic impact of this proposed rule on small 
entities. Accordingly, AMS has prepared this initial regulatory 
flexibility analysis.
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened. Marketing orders issued 
pursuant to the Act, and the rules issued thereunder, are unique in 
that they are brought about through group action of essentially small 
entities acting on their own behalf.
    There are approximately 140 producers of kiwifruit in the 
production area and approximately 20 handlers subject to regulation 
under the 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, USDA Market News, and National Agricultural 
Statics Service (NASS) data, the average price of kiwifruit for the 
2016-17 season was approximately $0.92 per pound, and the total crop 
was approximately 9.0 million tray equivalents, or 63 million pounds. 
Based on the average price and handler-specific annual kiwifruit sales 
data provided by the Committee, nineteen of the twenty handlers have 
average annual receipts less than $7,500,000. Thus, the majority of 
kiwifruit handlers may be classified as small business entities.
    In addition, based on information from the NASS, the average grower 
price for kiwifruit during the 2016-17 season was approximately $0.525 
cents per pound. The Committee analyzed grower-specific production data 
and determined that growers with production over 204,081 9-kilo volume-
fill containers would be classified as large entities (204,081 9-kilo 
volume-fill containers time 7 pounds per container times $0.525 per 
pound = $749,998). Using the NASS average grower price and the 
Committee's specific grower production information, at least 130 of 140 
producers have annual receipts of less than $750,000. Thus, the 
majority of the kiwifruit producers may be classified as small 
entities.
    This proposal would decrease the assessment rate collected from 
handlers for the 2018-2019 and subsequent fiscal periods from $0.040 to 
$0.025 per 9-kilo volume-fill container of kiwifruit. The Committee 
unanimously recommended 2018-2019 expenditures of $119,000, and an 
assessment rate of $0.025 per 9-kilo volume-fill container. The 
proposed assessment rate of $0.025 is $0.015 lower than the 2017-2018 
rate. The quantity of assessable commodity for the 2018-2019 fiscal 
year is estimated at 4,207,071 9-kilo volume-fill container. Thus, the 
$0.025 rate should provide $105,177 in assessment income (4,207,071 x 
$0.025). Income derived from handler assessments, along with interest 
income and funds from the Committee's authorized reserve (currently, 
$52,056), would be adequate to cover budgeted expenses.
    The major expenditures recommended by the Committee for the 2018-
2019 fiscal year include $80,000 for management services, $29,000 in 
office expenditures, and $10,000 for research. Budgeted expenses for 
these items in 2017-2018 were $80,000 for management services, $24,383 
in office expenditures, and $10,000 for research. The Committee 
estimates that the funds in the reserve (currently $52,056) would be 
reduced by $13,303 to ensure the reserve remains within the maximum 
permitted by the Order (approximately one fiscal period's expenses).
    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 kiwifruit industry. The Committee ultimately 
determined that 2018-2019 expenditures of $119,000 were appropriate, 
the recommended $0.025 assessment rate, and the use of $13,303 from the 
financial reserve, would be sufficient to meet its expenses.
    A review of historical crop and price information, as well as 
preliminary information pertaining to the upcoming fiscal period, 
indicates that the shipping point price for the 2017-2018 season 
averaged about $17.32 per 9-kilo volume-fill container of California 
kiwifruit handled. If the 2018-2019 price is similar to the 2017-2018 
price, estimated assessment revenue as a percentage of total estimated 
handler revenue would be 0.14 percent for the 2018-2019 season ($0.025 
divided by $17.32 per 9-kilo volume-fill container).
    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 would reduce the burden on handlers, and may reduce 
the burden on producers. This proposal would not have a significant 
economic impact on a substantial number of small entities.
    The Committee's meeting was widely publicized throughout the 
production

[[Page 49314]]

area. All interested persons were invited to attend the meeting and 
participate in Committee deliberations on all issues. Like all 
Committee meetings, the July 19, 2018, meeting was a public meeting and 
all entities, both large and small, were able to express views on this 
issue. Interested persons are invited to submit comments on this 
proposed rule, including the regulatory and information collection 
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 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 California 
kiwifruit handlers. As with all Federal marketing order programs, 
reports and forms are periodically reviewed to reduce information 
requirements and duplication by industry and public sector agencies.
    AMS is committed to complying with the E-Government Act, to promote 
the use of the internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services, and for other purposes.
    USDA has not identified any relevant Federal rules that duplicate, 
overlap, or conflict with this action.
    A small business guide on complying with fruit, vegetable, and 
specialty crop marketing agreements and orders may be viewed at: http://www.ams.usda.gov/rules-regulations/moa/small-businesses. Any questions 
about the compliance guide should be sent to Richard Lower at the 
previously-mentioned address in the FOR FURTHER INFORMATION CONTACT 
section.
    A 30-day comment period is provided to allow interested persons to 
respond to this proposed rule. All written comments timely received 
will be considered before a final determination is made on this rule.

List of Subjects in 7 CFR Part 920

    Kiwifruit, Marketing agreements, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 920 is 
proposed to be amended as follows:

PART 920--KIWIFRUIT GROWN IN CALIFORNIA

0
1. The authority citation for part 920 continues to read as follows:

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

0
2. Section 920.213 is revised to read as follows:


Sec.  920.213   Assessment rate.

    On and after August 1, 2018, an assessment rate of $0.025 per 9-
kilo volume-fill container or equivalent of kiwifruit is established 
for kiwifruit grown in California.

    Dated: September 26, 2018.
Bruce Summers,
Administrator, Agricultural Marketing Service.
[FR Doc. 2018-21264 Filed 9-28-18; 8:45 am]
 BILLING CODE 3410-02-P



                                                49312

                                                Proposed Rules                                                                                                Federal Register
                                                                                                                                                              Vol. 83, No. 190

                                                                                                                                                              Monday, October 1, 2018



                                                This section of the FEDERAL REGISTER                    Specialist, California Marketing Field                all assessable kiwifruit for the 2018–
                                                contains notices to the public of the proposed          Office, Marketing Order and Agreement                 2019 fiscal period, and continue until
                                                issuance of rules and regulations. The                  Division, Specialty Crops Program,                    amended, suspended, or terminated.
                                                purpose of these notices is to give interested          AMS, USDA; Telephone: (559) 487–                         The Act provides that administrative
                                                persons an opportunity to participate in the            5901, Fax: (559) 487–5906, or email:                  proceedings must be exhausted before
                                                rule making prior to the adoption of the final
                                                rules.
                                                                                                        Maria.Stobbe@ams.usda.gov or                          parties may file suit in court. Under
                                                                                                        Terry.Vawter@ams.usda.gov.                            section 608c(15)(A) of the Act, any
                                                                                                           Small businesses may request                       handler subject to an order may file
                                                DEPARTMENT OF AGRICULTURE                               information on complying with this                    with USDA a petition stating that the
                                                                                                        regulation by contacting Richard Lower,               order, any provision of the order, or any
                                                Agricultural Marketing Service                          Marketing Order and Agreement                         obligation imposed in connection with
                                                                                                        Division, Specialty Crops Program,                    the order is not in accordance with law
                                                7 CFR Part 920                                          AMS, USDA, 1400 Independence                          and request a modification of the order
                                                                                                        Avenue SW, STOP 0237, Washington,                     or to be exempted therefrom. Such
                                                [Doc. No. AMS–SC–18–0060; SC18–920–1
                                                PR]                                                     DC 20250–0237; Telephone: (202) 720–                  handler is afforded the opportunity for
                                                                                                        2491, Fax: (202)720–8938, or email:                   a hearing on the petition. After the
                                                Kiwifruit Grown California; Decreased                   Richard.Lower@ams.usda.gov.                           hearing, USDA would rule on the
                                                Assessment Rate                                         SUPPLEMENTARY INFORMATION: This                       petition. The Act provides that the
                                                                                                        action, pursuant to 5 U.S.C. 553,                     district court of the United States in any
                                                AGENCY:  Agricultural Marketing Service,                proposes an amendment to regulations                  district in which the handler is an
                                                USDA.                                                   issued to carry out a marketing order as              inhabitant, or has his or her principal
                                                ACTION: Proposed rule.                                  defined in 7 CFR 900.2(j). This proposed              place of business, has jurisdiction to
                                                                                                        rule is issued under Marketing                        review USDA’s ruling on the petition,
                                                SUMMARY:   This proposed rule would
                                                                                                        Agreement and Order No. 920, as                       provided an action is filed not later than
                                                implement a recommendation from the
                                                                                                        amended (7 CFR part 920), regulating                  20 days after the date of the entry of the
                                                Kiwifruit Administrative Committee
                                                                                                        the handling of kiwifruit grown in                    ruling.
                                                (Committee) to decrease the assessment
                                                                                                        California. Part 920 (referred to as the                 The Order provides authority for the
                                                rate established for the 2018–2019 and
                                                                                                        ‘‘Order’’) is effective under the                     Committee, with the approval of USDA,
                                                subsequent fiscal periods. The
                                                                                                        Agricultural Marketing Agreement Act                  to formulate an annual budget of
                                                assessment rate would remain in effect
                                                                                                        of 1937, as amended (7 U.S.C. 601–674),               expenses and collect assessments from
                                                indefinitely unless modified,
                                                                                                        hereinafter referred to as the ‘‘Act.’’ The           handlers to administer the program. The
                                                suspended, or terminated.
                                                                                                        Committee locally administers the                     members of the Committee are
                                                DATES: Comments must be received by                                                                           producers of kiwifruit grown in
                                                                                                        Order and is comprised of producers of
                                                October 31, 2018.                                       kiwifruit operating within the area of                California, and one member of the
                                                ADDRESSES: Interested persons are                       production, and one member of the                     public. They are familiar with the
                                                invited to submit written comments                      public.                                               Committee’s needs and with the costs
                                                concerning this proposed rule.                             The Department of Agriculture                      for goods and services in their local area
                                                Comments must be sent to the Docket                     (USDA) is issuing this proposed rule in               and are thus in a position to formulate
                                                Clerk, Marketing Order and Agreement                    conformance with Executive Orders                     an appropriate budget and assessment
                                                Division, Specialty Crops Program,                      13563 and 13175. This action falls                    rate. The assessment rate is formulated
                                                AMS, USDA, 1400 Independence                            within a category of regulatory actions               and discussed in a public meeting.
                                                Avenue SW, STOP 0237, Washington,                       that the Office of Management and                     Thus, all directly affected persons have
                                                DC 20250–0237; Fax: (202) 720–8938; or                  Budget (OMB) exempted from Executive                  an opportunity to participate and
                                                internet: http://www.regulations.gov.                   Order 12866 review. Additionally,                     provide input.
                                                Comments should reference the                           because this proposal does not meet the                  This proposed rule would decrease
                                                document number and the date and                        definition of a significant regulatory                the assessment rate for the 2018–2019
                                                page number of this issue of the Federal                action, it does not trigger the                       and subsequent fiscal periods from
                                                Register and will be available for public               requirements contained in Executive                   $0.040 to $0.025 per 9-kilo volume-fill
                                                inspection in the Office of the Docket                  Order 13771. See OMB’s Memorandum                     container or equivalent of kiwifruit
                                                Clerk during regular business hours, or                 titled ‘‘Interim Guidance Implementing                handled.
                                                can be viewed at: http://                               Section 2 of the Executive Order of                      The Committee met on July 19, 2018,
                                                www.regulations.gov. All comments                       January 30, 2017, titled ‘Reducing                    and unanimously recommended 2018–
                                                submitted in response to this proposed                  Regulation and Controlling Regulatory                 19 expenditures of $119,000, and an
                                                rule will be included in the record and                 Costs’ ’’ (February 2, 2017).                         assessment rate of $0.025 per 9-kilo
amozie on DSK3GDR082PROD with PROPOSALS1




                                                will be made available to the public.                      This proposed rule has been reviewed               volume-fill of kiwifruit. In comparison,
                                                Please be advised that the identity of the              under Executive Order 12988, Civil                    last year’s budgeted expenditures were
                                                individuals or entities submitting the                  Justice Reform. Under the Order now in                $114,383. The assessment rate of $.025
                                                comments will be made public on the                     effect, kiwifruit handlers in California              is $0.015 lower than the rate currently
                                                internet at the address provided above.                 are subject to assessments. Funds to                  in effect. The Committee currently has
                                                FOR FURTHER INFORMATION CONTACT:                        administer the Order are derived from                 a cash reserve of approximately $52,056.
                                                Maria Stobbe, Marketing Specialist or                   such assessments. It is intended that the             The proposed decreased assessment
                                                Terry Vawter, Senior Marketing                          assessment rate would be applicable to                rate, plus the cash reserve are sufficient


                                           VerDate Sep<11>2014   17:05 Sep 28, 2018   Jkt 247001   PO 00000   Frm 00001   Fmt 4702   Sfmt 4702   E:\FR\FM\01OCP1.SGM   01OCP1


                                                                       Federal Register / Vol. 83, No. 190 / Monday, October 1, 2018 / Proposed Rules                                           49313

                                                to fund the 2018–2019 budgeted                          Accordingly, AMS has prepared this                    quantity of assessable commodity for
                                                expenses.                                               initial regulatory flexibility analysis.              the 2018–2019 fiscal year is estimated at
                                                   The major expenditures                                  The purpose of the RFA is to fit                   4,207,071 9-kilo volume-fill container.
                                                recommended by the Committee for                        regulatory actions to the scale of                    Thus, the $0.025 rate should provide
                                                2018–2019 include $80,000 for                           businesses subject to such actions in                 $105,177 in assessment income
                                                management services, $29,000 in office                  order that small businesses will not be               (4,207,071 × $0.025). Income derived
                                                expenditures, and $10,000 for research.                 unduly or disproportionately burdened.                from handler assessments, along with
                                                Budgeted expenses for these items in                    Marketing orders issued pursuant to the               interest income and funds from the
                                                2017–2018 were $80,000 for                              Act, and the rules issued thereunder, are             Committee’s authorized reserve
                                                management services, $24,383 in office                  unique in that they are brought about                 (currently, $52,056), would be adequate
                                                expenditures, and $10,000 for research.                 through group action of essentially                   to cover budgeted expenses.
                                                   The assessment rate recommended by                   small entities acting on their own                       The major expenditures
                                                the Committee was derived by                            behalf.                                               recommended by the Committee for the
                                                considering anticipated expenses,                          There are approximately 140                        2018–2019 fiscal year include $80,000
                                                expected shipments of kiwifruit in the                  producers of kiwifruit in the production              for management services, $29,000 in
                                                production area, and the level of funds                 area and approximately 20 handlers                    office expenditures, and $10,000 for
                                                in the authorized reserve. Kiwifruit                    subject to regulation under the Order.                research. Budgeted expenses for these
                                                shipments for the 2018–2019 season are                  Small agricultural producers are defined              items in 2017–2018 were $80,000 for
                                                estimated at 4,207,071 9-kilo volume-fill               by the Small Business Administration                  management services, $24,383 in office
                                                                                                        (SBA) as those having annual receipts                 expenditures, and $10,000 for research.
                                                containers, which should provide
                                                                                                        less than $750,000, and small                         The Committee estimates that the funds
                                                $105,177 in assessment income
                                                                                                        agricultural service firms are defined as             in the reserve (currently $52,056) would
                                                (4,207,071 9-kilo volume-fill containers
                                                                                                        those whose annual receipts are less                  be reduced by $13,303 to ensure the
                                                times $0.025 per container equals
                                                                                                        than $7,500,000 (13 CFR 121.201).                     reserve remains within the maximum
                                                $105,177). Income derived from handler                     According to Committee, USDA
                                                assessments, along with interest income                                                                       permitted by the Order (approximately
                                                                                                        Market News, and National Agricultural                one fiscal period’s expenses).
                                                and funds from the Committee’s                          Statics Service (NASS) data, the average                 Prior to arriving at this budget and
                                                authorized reserve, would be adequate                   price of kiwifruit for the 2016–17 season             assessment rate, the Committee
                                                to cover budgeted expenses. Funds in                    was approximately $0.92 per pound,                    considered various options, such as
                                                the reserve (currently $52,056) would be                and the total crop was approximately                  maintaining the current assessment rate
                                                kept within the maximum permitted by                    9.0 million tray equivalents, or 63                   and expenditure levels. Alternative
                                                the Order (approximately one fiscal                     million pounds. Based on the average                  expenditure levels were discussed by
                                                period’s expenses).                                     price and handler-specific annual                     the Committee, based upon the relative
                                                   The assessment rate recommended in                   kiwifruit sales data provided by the                  value of various activities to the
                                                this proposal would continue in effect                  Committee, nineteen of the twenty                     kiwifruit industry. The Committee
                                                indefinitely unless modified,                           handlers have average annual receipts                 ultimately determined that 2018–2019
                                                suspended, or terminated by USDA                        less than $7,500,000. Thus, the majority              expenditures of $119,000 were
                                                upon recommendation and information                     of kiwifruit handlers may be classified               appropriate, the recommended $0.025
                                                submitted by the Committee and other                    as small business entities.                           assessment rate, and the use of $13,303
                                                available information.                                     In addition, based on information                  from the financial reserve, would be
                                                   Although this assessment rate would                  from the NASS, the average grower                     sufficient to meet its expenses.
                                                be in effect for an indefinite period, the              price for kiwifruit during the 2016–17                   A review of historical crop and price
                                                Committee would continue to meet                        season was approximately $0.525 cents                 information, as well as preliminary
                                                prior to or during each fiscal period to                per pound. The Committee analyzed                     information pertaining to the upcoming
                                                recommend a budget of expenses and                      grower-specific production data and                   fiscal period, indicates that the shipping
                                                consider recommendations for                            determined that growers with                          point price for the 2017–2018 season
                                                modification of the assessment rate. The                production over 204,081 9-kilo volume-                averaged about $17.32 per 9-kilo
                                                dates and times of Committee meetings                   fill containers would be classified as                volume-fill container of California
                                                are available from the Committee or                     large entities (204,081 9-kilo volume-fill            kiwifruit handled. If the 2018–2019
                                                USDA. Committee meetings are open to                    containers time 7 pounds per container                price is similar to the 2017–2018 price,
                                                the public and interested persons may                   times $0.525 per pound = $749,998).                   estimated assessment revenue as a
                                                express their views at these meetings.                  Using the NASS average grower price                   percentage of total estimated handler
                                                USDA would evaluate Committee                           and the Committee’s specific grower                   revenue would be 0.14 percent for the
                                                recommendations and other available                     production information, at least 130 of               2018–2019 season ($0.025 divided by
                                                information to determine whether                        140 producers have annual receipts of                 $17.32 per 9-kilo volume-fill container).
                                                modification of the assessment rate is                  less than $750,000. Thus, the majority of                This proposed rule would decrease
                                                needed. Further rulemaking would be                     the kiwifruit producers may be                        the assessment obligation imposed on
                                                undertaken as necessary. The                            classified as small entities.                         handlers. Assessments are applied
                                                Committee’s budget for subsequent                          This proposal would decrease the                   uniformly on all handlers, and some of
                                                fiscal periods would be reviewed and,                   assessment rate collected from handlers               the costs may be passed on to
                                                as appropriate, approved by USDA.                       for the 2018–2019 and subsequent fiscal               producers. However, decreasing the
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                                                                                                        periods from $0.040 to $0.025 per 9-kilo              assessment rate would reduce the
                                                Initial Regulatory Flexibility Analysis
                                                                                                        volume-fill container of kiwifruit. The               burden on handlers, and may reduce the
                                                  Pursuant to requirements set forth in                 Committee unanimously recommended                     burden on producers. This proposal
                                                the Regulatory Flexibility Act (RFA) (5                 2018–2019 expenditures of $119,000,                   would not have a significant economic
                                                U.S.C. 601–612), the Agricultural                       and an assessment rate of $0.025 per 9-               impact on a substantial number of small
                                                Marketing Service (AMS) has                             kilo volume-fill container. The proposed              entities.
                                                considered the economic impact of this                  assessment rate of $0.025 is $0.015                      The Committee’s meeting was widely
                                                proposed rule on small entities.                        lower than the 2017–2018 rate. The                    publicized throughout the production


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                                                49314                  Federal Register / Vol. 83, No. 190 / Monday, October 1, 2018 / Proposed Rules

                                                area. All interested persons were invited               PART 920—KIWIFRUIT GROWN IN                           document number and the date and
                                                to attend the meeting and participate in                CALIFORNIA                                            page number of this issue of the Federal
                                                Committee deliberations on all issues.                                                                        Register and will be made available for
                                                Like all Committee meetings, the July                   ■ 1. The authority citation for part 920              public inspection, including name and
                                                19, 2018, meeting was a public meeting                  continues to read as follows:                         address, if provided, in the above office
                                                and all entities, both large and small,                     Authority: 7 U.S.C. 601–674.                      during regular business hours or it can
                                                were able to express views on this issue.               ■ 2. Section 920.213 is revised to read               be viewed at http://
                                                Interested persons are invited to submit                as follows:                                           www.regulations.gov.
                                                comments on this proposed rule,                                                                               FOR FURTHER INFORMATION CONTACT:     Sue
                                                including the regulatory and                            § 920.213    Assessment rate.                         Coleman, Marketing Specialist,
                                                information collection impacts of this                    On and after August 1, 2018, an                     Promotion and Economics Division,
                                                action on small businesses.                             assessment rate of $0.025 per 9-kilo                  Specialty Crops Program, AMS, USDA,
                                                   In accordance with the Paperwork                     volume-fill container or equivalent of                1400 Independence Avenue SW, Room
                                                Reduction Act of 1995, (44 U.S.C.                       kiwifruit is established for kiwifruit                1406–S, Stop 0244, Washington, DC
                                                chapter 35), the Order’s information                    grown in California.                                  20250–0244; telephone: (202) 378–2569;
                                                collection requirements have been                         Dated: September 26, 2018.                          facsimile: (202) 205–2800; or electronic
                                                previously approved by OMB and                          Bruce Summers,                                        mail: Sue.Coleman@ams.usda.gov.
                                                assigned OMB No. 0581–0189, Fruit                       Administrator, Agricultural Marketing                 SUPPLEMENTARY INFORMATION: This
                                                Crops. No changes in those                              Service.                                              proposal affecting 7 CFR part 1212 is
                                                requirements would be necessary as a                    [FR Doc. 2018–21264 Filed 9–28–18; 8:45 am]           authorized under the Commodity
                                                result of this proposed rule. Should any                                                                      Promotion, Research, and Information
                                                                                                        BILLING CODE 3410–02–P
                                                changes become necessary, they would                                                                          Act of 1996 (1996 Act) (7 U.S.C. 7411–
                                                be submitted to OMB for approval.                                                                             7425).
                                                   This proposed rule would not impose                  DEPARTMENT OF AGRICULTURE
                                                any additional reporting or                                                                                   Executive Orders 12866, 13563, and
                                                recordkeeping requirements on either                    Agricultural Marketing Service                        13771
                                                small or large California kiwifruit                                                                              Executive Orders 12866 and 13563
                                                handlers. As with all Federal marketing                 7 CFR Part 1212                                       direct agencies to assess all costs and
                                                order programs, reports and forms are                   [Document Number AMS–SC–18–0016]                      benefits of available regulatory
                                                periodically reviewed to reduce                                                                               alternatives and, if regulation is
                                                information requirements and                            Honey Packers and Importers                           necessary, to select regulatory
                                                duplication by industry and public                      Research, Promotion, Consumer                         approaches that maximize net benefits
                                                sector agencies.                                        Education and Industry Information                    (including potential economic,
                                                   AMS is committed to complying with                   Order; Change in Membership                           environmental, public health and safety
                                                the E-Government Act, to promote the                                                                          effects, distributive impacts and equity).
                                                use of the internet and other                           AGENCY:  Agricultural Marketing Service,              Executive Order 13563 emphasizes the
                                                information technologies to provide                     USDA.                                                 importance of quantifying both costs
                                                increased opportunities for citizen                     ACTION: Proposed rule.                                and benefits, reducing costs,
                                                access to Government information and                    SUMMARY:   This proposal invites                      harmonizing rules and promoting
                                                services, and for other purposes.                       comments on changing the National                     flexibility. This action falls within a
                                                   USDA has not identified any relevant                 Honey Board (Board) importer-handler                  category of regulatory actions that the
                                                Federal rules that duplicate, overlap, or               member and alternate to an importer                   Office of Management and Budget
                                                conflict with this action.                              member and alternate. The Honey                       (OMB) exempted from Executive Order
                                                   A small business guide on complying                  Packers and Importers Research,                       12866 review. Additionally, because
                                                with fruit, vegetable, and specialty crop               Promotion, Consumer Education and                     this rule does not meet the definition of
                                                marketing agreements and orders may                     Industry Information Order (Order) is                 a significant regulatory action it does
                                                be viewed at: http://www.ams.usda.gov/                  administered by the Board with                        not trigger the requirements contained
                                                rules-regulations/moa/small-businesses.                 oversight by the U.S. Department of                   in Executive Order 13771. See OMB’s
                                                Any questions about the compliance                      Agriculture (USDA). This proposal                     Memorandum titled ‘‘Interim Guidance
                                                guide should be sent to Richard Lower                   would also update the definition for the              Implementing Section 2 of the Executive
                                                at the previously-mentioned address in                  term Board to reflect current practices,              Order of January 30, 2017, titled
                                                the FOR FURTHER INFORMATION CONTACT                     and make clarifying and conforming                    ‘Reducing Regulation and Controlling
                                                section.                                                changes to other provisions of the                    Regulatory Costs’ ’’ (February 2, 2017).
                                                   A 30-day comment period is provided                  program.                                              Executive Order 13175
                                                to allow interested persons to respond                  DATES: Comments must be received by                     This action has been reviewed in
                                                to this proposed rule. All written                      October 31, 2018.                                     accordance with the requirements of
                                                comments timely received will be                        ADDRESSES: Interested persons are                     Executive Order 13175, Consultation
                                                considered before a final determination                 invited to submit written comments                    and Coordination with Indian Tribal
                                                is made on this rule.                                   concerning this proposal. Comments                    Governments. The review reveals that
amozie on DSK3GDR082PROD with PROPOSALS1




                                                List of Subjects in 7 CFR Part 920                      may be submitted on the internet at:                  this regulation would not have
                                                                                                        http://www.regulations.gov or to the                  substantial and direct effects on Tribal
                                                  Kiwifruit, Marketing agreements,                      Promotion and Economics Division,                     governments and would not have
                                                Reporting and recordkeeping                             Specialty Crops Program, AMS, USDA,                   significant Tribal implications.
                                                requirements.                                           1400 Independence Avenue SW, Room
                                                  For the reasons set forth in the                      1406–S, Stop 0244, Washington, DC                     Executive Order 12988
                                                preamble, 7 CFR part 920 is proposed to                 20250–0244; facsimile: (202) 205–2800.                  This proposal has been reviewed
                                                be amended as follows:                                  All comments should reference the                     under Executive Order 12988, Civil


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Document Created: 2018-09-29 04:25:59
Document Modified: 2018-09-29 04:25:59
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule.
DatesComments must be received by October 31, 2018.
ContactMaria Stobbe, Marketing Specialist or Terry Vawter, Senior Marketing Specialist, 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 49312 
CFR AssociatedKiwifruit; Marketing Agreements and Reporting and Recordkeeping Requirements

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