83_FR_55324 83 FR 55111 - Domestic Dates Produced or Packed in Riverside County, California; Increased Assessment Rate

83 FR 55111 - Domestic Dates Produced or Packed in Riverside County, California; Increased Assessment Rate

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 83, Issue 213 (November 2, 2018)

Page Range55111-55113
FR Document2018-23917

This proposed rule would implement a recommendation from the California Date Administrative Committee (Committee) to increase the assessment rate for the 2018-19 and subsequent crop years for California dates handled under Marketing Order 987. The assessment rate would remain in effect indefinitely unless modified, suspended, or terminated.

Federal Register, Volume 83 Issue 213 (Friday, November 2, 2018)
[Federal Register Volume 83, Number 213 (Friday, November 2, 2018)]
[Proposed Rules]
[Pages 55111-55113]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-23917]


========================================================================
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. 213 / Friday, November 2, 2018 / 
Proposed Rules

[[Page 55111]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 987

[Doc. No. AMS-SC-18-0058; SC18-987-1 PR]


Domestic Dates Produced or Packed in Riverside County, 
California; Increased Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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

SUMMARY: This proposed rule would implement a recommendation from the 
California Date Administrative Committee (Committee) to increase the 
assessment rate for the 2018-19 and subsequent crop years for 
California dates handled under Marketing Order 987. The assessment rate 
would remain in effect indefinitely unless modified, suspended, or 
terminated.

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

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposed rule. Comments must be sent to the Docket 
Clerk, Marketing Order and Agreement Division, Specialty Crops Program, 
AMS, USDA, 1400 Independence Avenue SW, STOP 0237, Washington, DC 
20250-0237; Fax: (202) 720-8938; or internet: http://www.regulations.gov. Comments should reference the document number and 
the date and page number of this issue of the Federal Register and will 
be available for public inspection in the Office of the Docket Clerk 
during regular business hours, or can be viewed at: http://www.regulations.gov. All comments submitted in response to this 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: 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].
    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 Order No. 987, as amended (7 CFR part 987), regulating the 
handling of domestic dates produced or packed in Riverside County, 
California. Part 987, (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 producer-
handlers operating within the area of production.
    The Department of Agriculture (USDA) is issuing this proposed rule 
in conformance with Executive Orders 13563 and 13175. This proposed 
rule falls within a category of regulatory actions that the Office of 
Management and Budget (OMB) exempted from Executive Order 12866 review. 
Additionally, because this proposed 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'[thinsp]'' (February 2, 2017).
    This proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. Under the Order now in effect, California date 
handlers 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 dates for the 2018-19 crop year, 
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 are 
familiar with the Committee's needs and with the costs of goods and 
services in their local area and are thus in a position to formulate an 
appropriate budget and assessment rate. The assessment rate is 
formulated and discussed in a public meeting. Thus, all directly 
affected persons have an opportunity to participate and provide input.
    This proposed rule would increase the assessment rate from $0.05 
per hundredweight, the rate that was established for the 2016-17 and 
subsequent crop years, to $0.15 per hundredweight of dates handled for 
the 2018-19 and subsequent crop years. The proposed higher rate is 
necessary in order to provide sufficient funds to cover the 2018-19 
anticipated expenses. As a result of three consecutive assessment 
decreases, a smaller crop, anticipated increases in the cost of the 
annual financial audit, and increased costs for dues and subscriptions, 
the Committee recommended an increased assessment rate. The 2018-19 
crop is estimated to be approximately 29,000,000 pounds, down from 
36,000,000 pounds for the 2017-18 crop year.

[[Page 55112]]

    The Committee's operating reserve is low enough that an increase in 
the assessment rate is necessary to ensure that there are sufficient 
funds to pay for all the Committee's proposed expenses, while also 
ensuring that the Committee has an operating reserve to carry into the 
2019-20 crop year.
    The Committee met on June 28, 2018, and unanimously recommended 
increasing the assessment rate from the current $0.05 per hundredweight 
to $0.15 per hundredweight in order to maintain expenses at a level 
consistent with recent crop years' expenses, draw a portion of the 
expenses from the existing operating reserve, and provide a sufficient 
operating reserve to carry forward. The assessment rate increase, along 
with the funds from the reserve and other income, should provide 
sufficient funds to cover anticipated expenses.
    The Committee estimates the 2018-19 domestic date crop to be 
29,000,000 pounds (290,000 hundredweight), which, at the proposed $0.15 
rate, should generate $43,500 in assessment income. Other income, which 
includes items such as interest income, is expected to be approximately 
$5,000. Combined with the anticipated $50,000 in beginning year 
operating reserve funds, the total funds available for the 2018-19 crop 
year are expected to be $98,500.
    The Committee's expenses for the 2018-19 crop year are estimated at 
$83,740. The Committee's expenses are entirely operational, since it 
conducts its research and promotion programs through its sister 
organization, the California Date Commission, a California State 
marketing program. The major administrative expenses include $58,000 
for salaries and $25,740 for office and Committee expenses such as 
rent, insurance, postage, website and email, utilities, meeting costs, 
and other miscellaneous administrative expenses.
    The previous crop year's budget was $67,800, and budgeted expenses 
for salaries and for office and Committee expenses were $50,000 and 
$17,800, respectively. Increases in the cost of the annual audit, 
personnel, and in dues and subscriptions account for some of the 
increased expenses in the 2018-19 crop year.
    The increased cost for the annual audit reflects the Committee's 
need to conduct a comprehensive, government-mandated ``single-audit 
(Yellow Book audit).'' Dues and subscriptions have increased due to the 
Committee's use of an import reporting subscription service, which 
provides detailed data on date imports.
    The assessment rate recommended by the Committee was derived by 
considering anticipated expenses, expected volume of dates handled, and 
the amount of funds available in the operating reserve. Income derived 
from handler assessments of $43,500 (290,000 hundredweight assessed at 
the proposed rate of $0.15), along with other income and funds from the 
Committee's operating reserve, would be adequate to cover budgeted 
expenses of $83,790. Funds in the operating reserve (currently $50,000) 
would not exceed the average of the annual expenses of the preceding 
five years, as mandated by Sec.  987.72(d).
    The assessment rate proposed in this rule would continue in effect 
indefinitely unless modified, suspended, or terminated by USDA upon 
recommendation and information submitted by the Committee or other 
available information.
    Although this assessment rate would be in effect for an indefinite 
period, the Committee would continue to meet prior to or during each 
crop year to recommend a budget of expenses and consider 
recommendations for modification of the assessment rate. The dates and 
times of Committee meetings are available from the Committee or USDA. 
Committee meetings are open to the public and interested persons may 
express their views at these meetings. USDA 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 crop 
years 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 70 date producers in the production area 
and 11 date handlers subject to regulation under the Order. The Small 
Business Administration defines small agricultural producers as those 
having annual receipts of less than $750,000, and small agricultural 
service firms as those whose annual receipts are less than $7,500,000. 
(13 CFR 121.201)
    According to the National Agricultural Statistics Service (NASS), 
data for the most-recently completed crop year (2017) shows that about 
3.23 tons, or 6,460 pounds, of dates were produced per acre. The 2017 
producer price published by NASS was $2,840 per ton. Thus, the value of 
date production per acre averaged about $9,173 (3.23 tons times $2,840 
per ton). At that average price, a producer would have to farm nearly 
82 acres to receive an annual income from dates of $750,000 ($750,000 
divided by $9,173 per acre equals 81.76 acres). According to Committee 
staff, the majority of California date producers farm less than 81 
acres during the 2017-18 crop year. Thus, it can be concluded that the 
majority of date producers could be considered small entities. 
Furthermore, based on a reported average price of $1.25 per pound for 
packaged dates handled, a handler would have to handle at least 
6,000,000 pounds to have $7,500,000 in annual receipts (6,000,000 
multiplied by $1.25 per pound). According to information from the 
Committee on handler utilization of dates, only three of the regulated 
handlers handled less than 6,000,000 pounds during the 2017-18 crop 
year. Thus, most of the handlers could be considered large entities.
    This proposed rule would increase the assessment rate collected 
from handlers for the 2018-19 and subsequent crop years from $0.05 to 
$0.15 per hundredweight of dates handled. The Committee unanimously 
recommended 2018-19 expenditures of $83,790 and an assessment rate of 
$0.15 per hundredweight of dates, which is $0.10 higher than the 2016-
17 rate currently in effect. The quantity of assessable dates for the 
2018-19 crop year is estimated at 29,000,000 pounds (290,000 
hundredweight). Thus, the proposed $0.15 rate should provide $43,500 in 
assessment income. Income derived from handler's assessments, funds 
from the Committee's authorized reserve, and other income should be 
adequate to cover expenses for the 2018-19 crop year.
    The total expenditure recommended by the Committee for the 2018-19 
crop year is $83,790, compared to $67,800 for the 2017-18 crop year. 
The Committee recommended a higher assessment rate because its 
operating reserve would otherwise be too small to fund program

[[Page 55113]]

operations when combined with other income. In addition, the crop 
estimate for the 2018-19 crop year is expected to be 29,000,000 pounds, 
compared to 36,000,000 pounds for the 2017-18 crop year.
    The income generated from the proposed higher assessment rate 
applied to the estimated crop, combined with carry-in funds from the 
2017-18 crop year and income from other sources, should be sufficient 
to cover anticipated 2018-19 expenses and to maintain a financial 
reserve within the limit specified by the Order.
    Section 987.72(d) states that the Committee may maintain an 
operating monetary reserve not to exceed the average of one year's 
expenses incurred during the most recent five preceding crop years, 
except that an established reserve need not be reduced to conform to 
any recomputed average. The Committee estimated a $50,000 reserve 
carry-in for the 2018-19 crop year. It expects to utilize $35,290 of 
the reserve during the year, leaving a reserve of approximately $14,710 
at the end of the 2018-19 crop year, which is within the limit 
specified in the Order.
    The Committee reviewed and unanimously recommended 2018-19 crop 
year expenditures of $83,790. Prior to arriving at this budget, the 
Committee considered information from its Budget Subcommittee 
(Subcommittee), which met on June 7, 2018. The Subcommittee discussed 
alternative expenditure levels and assessment rates, including not 
changing the assessment rate or adjusting expenses. Ultimately, the 
Subcommittee and the Committee recommended an assessment rate of $0.15 
per hundredweight of dates handled after considering several factors 
including the anticipated 2018-19 crop, the Committee's estimated 2018-
19 reserve carry-in and other income, and its anticipated expenses.
    A review of historical and preliminary information pertaining to 
the upcoming crop year indicates that the producer price for the 2017-
18 crop year was approximately $142.00 per hundredweight of dates. 
Utilizing that price, the estimated crop size, and the proposed 
assessment rate of $0.15 per hundredweight, the estimated assessment 
revenue for the 2018-19 crop year as a percentage of total producer 
revenue will be approximately 0.1 percent ($0.15 per hundredweight 
divided by $142 per hundredweight).
    This proposed action would increase the assessment obligation 
imposed on handlers. While assessments impose some additional costs on 
handlers, the costs are minimal and uniform on all handlers. Some of 
the additional costs may be passed on to producers. However, these 
costs would be offset by the benefits derived by the operation of the 
Order. In addition, the Committee's and the Subcommittee's meetings 
were widely publicized throughout the California date industry. All 
interested persons were invited to attend the meetings and encouraged 
to participate in Committee deliberations on all issues. Like all 
Committee meetings, the June 28, 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 the Office of Management and Budget (OMB) and 
assigned OMB No. 0581-0178 Vegetable and Specialty Crops. No changes in 
those requirements would be necessary as a result of this action. 
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 date 
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 proposed rule.
    A small business guide on complying with fruit, vegetable, and 
specialty crop marketing agreements and orders may be viewed at: http://www.ams.usda.gov/rules-regulations/moa/small-businesses. Any questions 
about the compliance guide should be sent to Richard Lower at the 
previously mentioned address in the FOR FURTHER INFORMATION CONTACT 
section.

List of Subjects in 7 CFR Part 987

    Dates, Marketing agreements, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 987 is 
proposed to be amended as follows:

PART 987--DOMESTIC DATES PRODUCED OR PACKED IN RIVERSIDE, 
CALIFORNIA

0
1. The authority citation for part 987 continues to read as follows:

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

0
2. Section 987.339 is revised to read as follows:


Sec.  987.339  Assessment rate.

    On and after October 1, 2018, an assessment rate of $0.15 per 
hundredweight is established for dates produced or packed in Riverside 
County, California.

    Dated: October 29, 2018.
Bruce Summers,
Administrator, Agricultural Marketing Service.
[FR Doc. 2018-23917 Filed 11-1-18; 8:45 am]
 BILLING CODE 3410-02-P



                                                                                                                                                     55111

     Proposed Rules                                                                                                Federal Register
                                                                                                                   Vol. 83, No. 213

                                                                                                                   Friday, November 2, 2018



     This section of the FEDERAL REGISTER                    FOR FURTHER INFORMATION CONTACT:                      all assessable dates for the 2018–19 crop
     contains notices to the public of the proposed          Terry Vawter, Senior Marketing                        year, and continue until amended,
     issuance of rules and regulations. The                  Specialist, California Marketing Field                suspended, or terminated.
     purpose of these notices is to give interested          Office, Marketing Order and Agreement                    The Act provides that administrative
     persons an opportunity to participate in the            Division, Specialty Crops Program,                    proceedings must be exhausted before
     rule making prior to the adoption of the final
     rules.
                                                             AMS, USDA; Telephone: (559) 487–                      parties may file suit in court. Under
                                                             5901, Fax: (559) 487–5906, or Email:                  section 608c(15)(A) of the Act, any
                                                             Terry.Vawter@ams.usda.gov.                            handler subject to an order may file
     DEPARTMENT OF AGRICULTURE                                  Small businesses may request                       with USDA a petition stating that the
                                                             information on complying with this                    order, any provision of the order, or any
     Agricultural Marketing Service                          regulation by contacting Richard Lower,               obligation imposed in connection with
                                                             Marketing Order and Agreement                         the order is not in accordance with law
     7 CFR Part 987                                          Division, Specialty Crops Program,                    and request a modification of the order
                                                             AMS, USDA, 1400 Independence                          or to be exempted therefrom. Such
     [Doc. No. AMS–SC–18–0058; SC18–987–1                    Avenue SW, STOP 0237, Washington,                     handler is afforded the opportunity for
     PR]                                                     DC 20250–0237; Telephone: (202) 720–                  a hearing on the petition. After the
                                                             2491, Fax: (202)720–8938, or Email:                   hearing, USDA would rule on the
     Domestic Dates Produced or Packed in                    Richard.Lower@ams.usda.gov.                           petition. The Act provides that the
     Riverside County, California; Increased                 SUPPLEMENTARY INFORMATION: This                       district court of the United States in any
     Assessment Rate                                         action, pursuant to 5 U.S.C. 553,                     district in which the handler is an
                                                             proposes an amendment to regulations                  inhabitant, or has his or her principal
     AGENCY:  Agricultural Marketing Service,                                                                      place of business, has jurisdiction to
                                                             issued to carry out a marketing order as
     USDA.                                                                                                         review USDA’s ruling on the petition,
                                                             defined in 7 CFR 900.2(j). This proposed
     ACTION: Proposed rule.                                  rule is issued under Marketing Order                  provided an action is filed not later than
                                                             No. 987, as amended (7 CFR part 987),                 20 days after the date of the entry of the
     SUMMARY:    This proposed rule would                                                                          ruling.
                                                             regulating the handling of domestic
     implement a recommendation from the                                                                              The Order provides authority for the
                                                             dates produced or packed in Riverside
     California Date Administrative                                                                                Committee, with the approval of USDA,
                                                             County, California. Part 987, (referred to
     Committee (Committee) to increase the                                                                         to formulate an annual budget of
                                                             as the ‘‘Order’’) is effective under the
     assessment rate for the 2018–19 and                                                                           expenses and collect assessments from
                                                             Agricultural Marketing Agreement Act
     subsequent crop years for California                                                                          handlers to administer the program. The
                                                             of 1937, as amended (7 U.S.C. 601–674),
     dates handled under Marketing Order                                                                           members are familiar with the
                                                             hereinafter referred to as the ‘‘Act.’’ The
     987. The assessment rate would remain                                                                         Committee’s needs and with the costs of
                                                             Committee locally administers the
     in effect indefinitely unless modified,                                                                       goods and services in their local area
                                                             Order and is comprised of producers
     suspended, or terminated.                                                                                     and are thus in a position to formulate
                                                             and producer-handlers operating within
     DATES: Comments must be received by                     the area of production.                               an appropriate budget and assessment
     December 3, 2018.                                          The Department of Agriculture                      rate. The assessment rate is formulated
     ADDRESSES: Interested persons are                       (USDA) is issuing this proposed rule in               and discussed in a public meeting.
     invited to submit written comments                      conformance with Executive Orders                     Thus, all directly affected persons have
     concerning this proposed rule.                          13563 and 13175. This proposed rule                   an opportunity to participate and
     Comments must be sent to the Docket                     falls within a category of regulatory                 provide input.
     Clerk, Marketing Order and Agreement                    actions that the Office of Management                    This proposed rule would increase
     Division, Specialty Crops Program,                      and Budget (OMB) exempted from                        the assessment rate from $0.05 per
     AMS, USDA, 1400 Independence                            Executive Order 12866 review.                         hundredweight, the rate that was
     Avenue SW, STOP 0237, Washington,                       Additionally, because this proposed                   established for the 2016–17 and
     DC 20250–0237; Fax: (202) 720–8938; or                  rule does not meet the definition of a                subsequent crop years, to $0.15 per
     internet: http://www.regulations.gov.                   significant regulatory action, it does not            hundredweight of dates handled for the
     Comments should reference the                           trigger the requirements contained in                 2018–19 and subsequent crop years. The
     document number and the date and                        Executive Order 13771. See OMB’s                      proposed higher rate is necessary in
     page number of this issue of the Federal                Memorandum titled ‘‘Interim Guidance                  order to provide sufficient funds to
     Register and will be available for public               Implementing Section 2 of the Executive               cover the 2018–19 anticipated expenses.
     inspection in the Office of the Docket                  Order of January 30, 2017, titled                     As a result of three consecutive
     Clerk during regular business hours, or                 ‘Reducing Regulation and Controlling                  assessment decreases, a smaller crop,
     can be viewed at: http://                               Regulatory Costs’ ’’ (February 2, 2017).              anticipated increases in the cost of the
     www.regulations.gov. All comments                          This proposed rule has been reviewed               annual financial audit, and increased
     submitted in response to this rule will                 under Executive Order 12988, Civil                    costs for dues and subscriptions, the
     be included in the record and will be                   Justice Reform. Under the Order now in                Committee recommended an increased
     made available to the public. Please be                 effect, California date handlers are                  assessment rate. The 2018–19 crop is
     advised that the identity of the                        subject to assessments. Funds to                      estimated to be approximately
     individuals or entities submitting the                  administer the Order are derived from                 29,000,000 pounds, down from
     comments will be made public on the                     such assessments. It is intended that the             36,000,000 pounds for the 2017–18 crop
     internet at the address provided above.                 assessment rate would be applicable to                year.


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     55112                  Federal Register / Vol. 83, No. 213 / Friday, November 2, 2018 / Proposed Rules

        The Committee’s operating reserve is                   The assessment rate recommended by                  under the Order. The Small Business
     low enough that an increase in the                      the Committee was derived by                          Administration defines small
     assessment rate is necessary to ensure                  considering anticipated expenses,                     agricultural producers as those having
     that there are sufficient funds to pay for              expected volume of dates handled, and                 annual receipts of less than $750,000,
     all the Committee’s proposed expenses,                  the amount of funds available in the                  and small agricultural service firms as
     while also ensuring that the Committee                  operating reserve. Income derived from                those whose annual receipts are less
     has an operating reserve to carry into                  handler assessments of $43,500 (290,000               than $7,500,000. (13 CFR 121.201)
     the 2019–20 crop year.                                  hundredweight assessed at the proposed                  According to the National
        The Committee met on June 28, 2018,                  rate of $0.15), along with other income               Agricultural Statistics Service (NASS),
     and unanimously recommended                             and funds from the Committee’s                        data for the most-recently completed
     increasing the assessment rate from the                 operating reserve, would be adequate to               crop year (2017) shows that about 3.23
     current $0.05 per hundredweight to                      cover budgeted expenses of $83,790.                   tons, or 6,460 pounds, of dates were
     $0.15 per hundredweight in order to                     Funds in the operating reserve                        produced per acre. The 2017 producer
     maintain expenses at a level consistent                 (currently $50,000) would not exceed                  price published by NASS was $2,840
     with recent crop years’ expenses, draw                  the average of the annual expenses of                 per ton. Thus, the value of date
     a portion of the expenses from the                      the preceding five years, as mandated by              production per acre averaged about
     existing operating reserve, and provide                 § 987.72(d).                                          $9,173 (3.23 tons times $2,840 per ton).
     a sufficient operating reserve to carry                   The assessment rate proposed in this                At that average price, a producer would
     forward. The assessment rate increase,                  rule would continue in effect                         have to farm nearly 82 acres to receive
     along with the funds from the reserve                   indefinitely unless modified,                         an annual income from dates of
     and other income, should provide                        suspended, or terminated by USDA                      $750,000 ($750,000 divided by $9,173
     sufficient funds to cover anticipated                   upon recommendation and information                   per acre equals 81.76 acres). According
     expenses.                                               submitted by the Committee or other                   to Committee staff, the majority of
        The Committee estimates the 2018–19                  available information.                                California date producers farm less than
                                                               Although this assessment rate would                 81 acres during the 2017–18 crop year.
     domestic date crop to be 29,000,000
                                                             be in effect for an indefinite period, the            Thus, it can be concluded that the
     pounds (290,000 hundredweight),
                                                             Committee would continue to meet                      majority of date producers could be
     which, at the proposed $0.15 rate,
                                                             prior to or during each crop year to                  considered small entities. Furthermore,
     should generate $43,500 in assessment
                                                             recommend a budget of expenses and                    based on a reported average price of
     income. Other income, which includes
                                                             consider recommendations for                          $1.25 per pound for packaged dates
     items such as interest income, is
                                                             modification of the assessment rate. The              handled, a handler would have to
     expected to be approximately $5,000.
                                                             dates and times of Committee meetings                 handle at least 6,000,000 pounds to
     Combined with the anticipated $50,000
                                                             are available from the Committee or                   have $7,500,000 in annual receipts
     in beginning year operating reserve
                                                             USDA. Committee meetings are open to                  (6,000,000 multiplied by $1.25 per
     funds, the total funds available for the
                                                             the public and interested persons may                 pound). According to information from
     2018–19 crop year are expected to be
                                                             express their views at these meetings.                the Committee on handler utilization of
     $98,500.
                                                             USDA would evaluate Committee                         dates, only three of the regulated
        The Committee’s expenses for the                     recommendations and other available                   handlers handled less than 6,000,000
     2018–19 crop year are estimated at                      information to determine whether                      pounds during the 2017–18 crop year.
     $83,740. The Committee’s expenses are                   modification of the assessment rate is                Thus, most of the handlers could be
     entirely operational, since it conducts                 needed. Further rulemaking would be                   considered large entities.
     its research and promotion programs                     undertaken as necessary. The                            This proposed rule would increase
     through its sister organization, the                    Committee’s budget for subsequent crop                the assessment rate collected from
     California Date Commission, a                           years would be reviewed and, as                       handlers for the 2018–19 and
     California State marketing program. The                 appropriate, approved by USDA.                        subsequent crop years from $0.05 to
     major administrative expenses include                                                                         $0.15 per hundredweight of dates
     $58,000 for salaries and $25,740 for                    Initial Regulatory Flexibility Analysis               handled. The Committee unanimously
     office and Committee expenses such as                     Pursuant to requirements set forth in               recommended 2018–19 expenditures of
     rent, insurance, postage, website and                   the Regulatory Flexibility Act (RFA) (5               $83,790 and an assessment rate of $0.15
     email, utilities, meeting costs, and other              U.S.C. 601–612), the Agricultural                     per hundredweight of dates, which is
     miscellaneous administrative expenses.                  Marketing Service (AMS) has                           $0.10 higher than the 2016–17 rate
        The previous crop year’s budget was                  considered the economic impact of this                currently in effect. The quantity of
     $67,800, and budgeted expenses for                      proposed rule on small entities.                      assessable dates for the 2018–19 crop
     salaries and for office and Committee                   Accordingly, AMS has prepared this                    year is estimated at 29,000,000 pounds
     expenses were $50,000 and $17,800,                      initial regulatory flexibility analysis.              (290,000 hundredweight). Thus, the
     respectively. Increases in the cost of the                The purpose of the RFA is to fit                    proposed $0.15 rate should provide
     annual audit, personnel, and in dues                    regulatory actions to the scale of                    $43,500 in assessment income. Income
     and subscriptions account for some of                   businesses subject to such actions in                 derived from handler’s assessments,
     the increased expenses in the 2018–19                   order that small businesses will not be               funds from the Committee’s authorized
     crop year.                                              unduly or disproportionately burdened.                reserve, and other income should be
        The increased cost for the annual                    Marketing orders issued pursuant to the               adequate to cover expenses for the
     audit reflects the Committee’s need to                  Act, and the rules issued thereunder, are             2018–19 crop year.
     conduct a comprehensive, government-                    unique in that they are brought about                   The total expenditure recommended
     mandated ‘‘single-audit (Yellow Book                    through group action of essentially                   by the Committee for the 2018–19 crop
     audit).’’ Dues and subscriptions have                   small entities acting on their own                    year is $83,790, compared to $67,800 for
     increased due to the Committee’s use of                 behalf.                                               the 2017–18 crop year. The Committee
     an import reporting subscription                          There are approximately 70 date                     recommended a higher assessment rate
     service, which provides detailed data on                producers in the production area and 11               because its operating reserve would
     date imports.                                           date handlers subject to regulation                   otherwise be too small to fund program


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                            Federal Register / Vol. 83, No. 213 / Friday, November 2, 2018 / Proposed Rules                                                55113

     operations when combined with other                     may be passed on to producers.                        PART 987—DOMESTIC DATES
     income. In addition, the crop estimate                  However, these costs would be offset by               PRODUCED OR PACKED IN
     for the 2018–19 crop year is expected to                the benefits derived by the operation of              RIVERSIDE, CALIFORNIA
     be 29,000,000 pounds, compared to                       the Order. In addition, the Committee’s
     36,000,000 pounds for the 2017–18 crop                  and the Subcommittee’s meetings were                  ■ 1. The authority citation for part 987
     year.                                                   widely publicized throughout the                      continues to read as follows:
        The income generated from the                        California date industry. All interested                  Authority: 7 U.S.C. 601–674.
     proposed higher assessment rate applied                 persons were invited to attend the
     to the estimated crop, combined with                    meetings and encouraged to participate                ■ 2. Section 987.339 is revised to read
     carry-in funds from the 2017–18 crop                    in Committee deliberations on all                     as follows:
     year and income from other sources,                     issues. Like all Committee meetings, the              § 987.339    Assessment rate.
     should be sufficient to cover anticipated               June 28, 2018, meeting was a public
     2018–19 expenses and to maintain a                                                                              On and after October 1, 2018, an
                                                             meeting, and all entities, both large and
     financial reserve within the limit                                                                            assessment rate of $0.15 per
                                                             small, were able to express views on
     specified by the Order.                                                                                       hundredweight is established for dates
                                                             this issue. Interested persons are invited
        Section 987.72(d) states that the                    to submit comments on this proposed                   produced or packed in Riverside
     Committee may maintain an operating                     rule, including the regulatory and                    County, California.
     monetary reserve not to exceed the                      information collection impacts of this                  Dated: October 29, 2018.
     average of one year’s expenses incurred                 action on small businesses.                           Bruce Summers,
     during the most recent five preceding                      In accordance with the Paperwork                   Administrator, Agricultural Marketing
     crop years, except that an established                  Reduction Act of 1995 (44 U.S.C.                      Service.
     reserve need not be reduced to conform                  chapter 35), the Order’s information                  [FR Doc. 2018–23917 Filed 11–1–18; 8:45 am]
     to any recomputed average. The                          collection requirements have been                     BILLING CODE 3410–02–P
     Committee estimated a $50,000 reserve                   previously approved by the Office of
     carry-in for the 2018–19 crop year. It                  Management and Budget (OMB) and
     expects to utilize $35,290 of the reserve               assigned OMB No. 0581–0178 Vegetable
     during the year, leaving a reserve of                                                                         NUCLEAR REGULATORY
                                                             and Specialty Crops. No changes in
     approximately $14,710 at the end of the                                                                       COMMISSION
                                                             those requirements would be necessary
     2018–19 crop year, which is within the                  as a result of this action. Should any                10 CFR Parts 170 and 171
     limit specified in the Order.                           changes become necessary, they would
        The Committee reviewed and                           be submitted to OMB for approval.                     [Docket No. PRM–170–7; NRC–2018–0172]
     unanimously recommended 2018–19                            This proposed rule would not impose
     crop year expenditures of $83,790. Prior                any additional reporting or                           Categorization of the Licensee Fee
     to arriving at this budget, the Committee               recordkeeping requirements on either                  Category for Full-Cost Recovery
     considered information from its Budget                  small or large California date handlers.              AGENCY:  Nuclear Regulatory
     Subcommittee (Subcommittee), which                      As with all Federal marketing order                   Commission.
     met on June 7, 2018. The Subcommittee                   programs, reports and forms are
     discussed alternative expenditure levels                                                                      ACTION: Petition for rulemaking; notice
                                                             periodically reviewed to reduce
     and assessment rates, including not                     information requirements and                          of docketing.
     changing the assessment rate or                         duplication by industry and public                    SUMMARY:    The U.S. Nuclear Regulatory
     adjusting expenses. Ultimately, the                     sector agencies.                                      Commission (NRC) has received a
     Subcommittee and the Committee                             AMS is committed to complying with                 petition for rulemaking (PRM) from Mr.
     recommended an assessment rate of                       the E-Government Act, to promote the                  Christopher S. Pugsley, Esq. (the
     $0.15 per hundredweight of dates                        use of the internet and other                         petitioner), on behalf of Water
     handled after considering several factors               information technologies to provide                   Remediation Technology (WRT), LLC,
     including the anticipated 2018–19 crop,                 increased opportunities for citizen                   dated July 3, 2018, requesting that the
     the Committee’s estimated 2018–19                       access to Government information and                  NRC amend its regulations regarding
     reserve carry-in and other income, and                  services, and for other purposes.                     full-cost recovery of licensee fees. The
     its anticipated expenses.                                  USDA has not identified any relevant               petition was docketed by the NRC on
        A review of historical and preliminary               Federal rules that duplicate, overlap, or             August 2, 2018, and has been assigned
     information pertaining to the upcoming                  conflict with this proposed rule.                     Docket No. PRM–170–7. The NRC is
     crop year indicates that the producer                      A small business guide on complying
                                                                                                                   examining the issues raised in PRM–
     price for the 2017–18 crop year was                     with fruit, vegetable, and specialty crop
                                                                                                                   170–7 to determine whether they should
     approximately $142.00 per                               marketing agreements and orders may
                                                                                                                   be considered in rulemaking. The NRC
     hundredweight of dates. Utilizing that                  be viewed at: http://www.ams.usda.gov/
                                                                                                                   is not instituting a public comment
     price, the estimated crop size, and the                 rules-regulations/moa/small-businesses.
                                                                                                                   period for this PRM as the staff
     proposed assessment rate of $0.15 per                   Any questions about the compliance
                                                                                                                   anticipates considering the issues raised
     hundredweight, the estimated                            guide should be sent to Richard Lower
                                                                                                                   in the petition in the upcoming fiscal
     assessment revenue for the 2018–19                      at the previously mentioned address in
                                                                                                                   year 2019 proposed fee rule, and the
     crop year as a percentage of total                      the FOR FURTHER INFORMATION CONTACT
                                                                                                                   public will have an opportunity to
     producer revenue will be approximately                  section.
                                                                                                                   comment at that time.
     0.1 percent ($0.15 per hundredweight
                                                             List of Subjects in 7 CFR Part 987                    DATES: The PRM is available on
     divided by $142 per hundredweight).
        This proposed action would increase                    Dates, Marketing agreements,                        November 2, 2018.
     the assessment obligation imposed on                    Reporting and recordkeeping                           ADDRESSES: Please refer to Docket ID
     handlers. While assessments impose                      requirements.                                         NRC–2018–0172 when contacting the
     some additional costs on handlers, the                    For the reasons set forth in the                    NRC about the availability of
     costs are minimal and uniform on all                    preamble, 7 CFR part 987 is proposed to               information for this petition. You may
     handlers. Some of the additional costs                  be amended as follows:                                obtain publicly-available information


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Document Created: 2018-11-02 01:10:36
Document Modified: 2018-11-02 01:10:36
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule.
DatesComments must be received by December 3, 2018.
ContactTerry 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]
FR Citation83 FR 55111 
CFR AssociatedDates; Marketing Agreements and Reporting and Recordkeeping Requirements

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