83_FR_6832 83 FR 6800 - Cranberries Grown in States of Massachusetts, et al.; Establishment of Handler Diversion and Reporting Requirements and New Information Collection

83 FR 6800 - Cranberries Grown in States of Massachusetts, et al.; Establishment of Handler Diversion and Reporting Requirements and New Information Collection

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 83, Issue 32 (February 15, 2018)

Page Range6800-6806
FR Document2018-02441

This proposed rule invites comments on the establishment of handler diversion and reporting requirements as recommended by the Cranberry Marketing Committee (Committee). This proposal would establish the procedures handlers would use to divert fruit through disposal or into noncompetitive outlets. The reporting requirements would support the diversion procedures by providing the necessary documentation to help ensure compliance when a volume regulation is established. This proposal also announces the Agricultural Marketing Service's (AMS) intention to request approval from the Office of Management and Budget (OMB) of a new information collection.

Federal Register, Volume 83 Issue 32 (Thursday, February 15, 2018)
[Federal Register Volume 83, Number 32 (Thursday, February 15, 2018)]
[Proposed Rules]
[Pages 6800-6806]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-02441]


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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.

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Federal Register / Vol. 83, No. 32 / Thursday, February 15, 2018 / 
Proposed Rules

[[Page 6800]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 929

[Doc. No. AMS-SC-17-0066; SC17-929-3 PR]


Cranberries Grown in States of Massachusetts, et al.; 
Establishment of Handler Diversion and Reporting Requirements and New 
Information Collection

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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

SUMMARY: This proposed rule invites comments on the establishment of 
handler diversion and reporting requirements as recommended by the 
Cranberry Marketing Committee (Committee). This proposal would 
establish the procedures handlers would use to divert fruit through 
disposal or into noncompetitive outlets. The reporting requirements 
would support the diversion procedures by providing the necessary 
documentation to help ensure compliance when a volume regulation is 
established. This proposal also announces the Agricultural Marketing 
Service's (AMS) intention to request approval from the Office of 
Management and Budget (OMB) of a new information collection.

DATES: Comments must be received by April 16, 2018. Pursuant to the 
Paperwork Reduction Act, comments on the information collection burden 
must be received by April 16, 2018.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposal. 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. All 
comments should reference the document number and the date and page 
number of this issue of the Federal Register and will be made 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 proposal will be included in the 
record and will be made available to the public. Please be advised that 
the identity of the individuals or entities submitting the comments 
will be made public on the internet at the address provided above.

FOR FURTHER INFORMATION CONTACT: Doris Jamieson, Marketing Specialist, 
or Christian D. Nissen, Regional Director, Southeast Marketing Field 
Office, Marketing Order and Agreement Division, Specialty Crops 
Program, AMS, USDA; Telephone: (863) 324-3375, Fax: (863) 291-8614, or 
Email: Doris.Jamieson@ams.usda.gov or Christian.Nissen@ams.usda.gov.
    Small businesses may request information on complying with this 
regulation by contacting Richard Lower, Marketing Order and Agreement 
Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue 
SW, STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-2491, 
Fax: (202) 720-8938, or Email: Richard.Lower@ams.usda.gov.

SUPPLEMENTARY INFORMATION: This proposed rule, pursuant to 5 U.S.C. 
553, proposes an amendment to regulations used to carry out a marketing 
order as defined in 7 CFR 900.2(j). This proposal is issued under 
Marketing Agreement and Order No. 929, as amended (7 CFR part 929), 
regulating the handling of cranberries grown in the states of 
Massachusetts, Rhode Island, Connecticut, New Jersey, Wisconsin, 
Michigan, Minnesota, Oregon, Washington, and Long Island in the State 
of New York. Part 929 (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 growers and handlers of 
cranberries operating within the production area, and a public member.
    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 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 proposal has been reviewed under Executive Order 12988, Civil 
Justice Reform. This proposed rule is not intended to have retroactive 
effect.
    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. A 
handler is afforded the opportunity for a hearing on the petition. 
After the hearing, USDA would rule on the petition. The Act provides 
that the district court of the United States in any district in which 
the handler is an inhabitant, or has his or her principal place of 
business, has jurisdiction to review USDA's ruling on the petition, 
provided an action is filed not later than 20 days after the date of 
the entry of the ruling.
    This proposal would establish handler diversion and reporting 
requirements under the Order. This proposal would establish procedures 
handlers would use to divert fruit through disposal or into 
noncompetitive outlets. The reporting requirements would support the 
diversion procedures by providing the necessary documentation to help 
ensure compliance when a volume regulation is established. This 
proposed rule was recommended by the Committee at its August 31, 2017, 
September 15, 2017, and October 13, 2017, meetings.
    The Order provides for the use of volume regulation to stabilize 
prices and improve grower returns during periods of oversupply. Section 
929.51(a)(2) specifies that a handler withholding program must be 
recommended by the Committee no later than August 31 and that such 
recommendation shall include the free and restricted percentages for 
the crop

[[Page 6801]]

year. On August 31, 2017, the Committee met and recommended free and 
restricted percentages of 85 percent free and 15 percent restricted. 
Handler diversion is one method that handlers can utilize to meet 
restricted percentage requirements.
    Section 929.54 provides, in part, that whenever the Secretary of 
Agriculture (Secretary) has fixed the free and restricted percentages 
for any fiscal period, each handler shall withhold from handling a 
portion of the cranberries acquired during such period. This section 
also provides the authority for the Committee to establish, with the 
approval of the Secretary, rules and regulations necessary to 
administer this section. Section 929.56 provides special provisions 
relating to withheld (restricted) cranberries, and Sec.  929.57 
provides authority for the Committee to establish, with the approval of 
the Secretary, outlets for withheld cranberries which are 
noncompetitive with outlets for unrestricted (free percentage) 
cranberries.
    Section 929.62 provides, in part, authority to require handlers to 
submit reports of cranberries acquired, held in inventory, quantity 
handled, total cranberries withheld from handling, the portion of such 
withheld cranberries on hand, and the quantity and manner of 
disposition of any such withheld cranberries diverted. Section 
929.62(f) further provides authority for the Committee, with the 
approval of the Secretary, to collect other reports and information 
from handlers needed to perform its duties.
    This proposal would use these authorities to establish new 
Sec. Sec.  929.157 and 929.162. Section 929.157 would establish the 
procedures to be used for handler diversion when free and restricted 
percentages are instituted. Section 929.162 would require handlers of 
cranberries, during years when free and restricted percentages are 
applied, to report to the Committee diversion plans and year-end 
reports, information on cranberries diverted and cranberries shipped to 
noncompetitive outlets, and other information to verify compliance with 
the program, using six specific Committee forms. Detailed information 
on the reporting burden that would be created by these new forms is 
discussed later in this document.
    The Committee recommended establishing free and restricted 
percentages under a handler withholding volume regulation for the 2017-
18 season in response to historically high inventory levels for 
cranberries. As this is the first time the Committee has used this 
volume regulation provision under the Order, it recognized the need to 
establish procedures outlining the diversion requirements for 
restricted fruit.
    Free percentage cranberries can be used to supply any available 
market, including juice, sweetened dried cranberries, sauce, and frozen 
cranberries. Restricted percentage cranberries can be diverted through 
disposal or utilized in markets that are noncompetitive with free 
cranberries. Possible outlets for restricted cranberries include, in 
part, for fresh export, except to Canada; charity; research and 
development projects; and any nonhuman food use. Handlers also have the 
option to divert processed products in lieu of fresh fruit to meet up 
to 50 percent of their restricted obligation.
    At the 2017 meetings in August, September, and October, the 
Committee discussed the handler diversion procedures and the associated 
reporting requirements that would be necessary to help ensure 
compliance with a free and restricted percentage volume regulation. As 
a result, the Committee developed and approved six specific forms and 
related procedures to be used during seasons when free and restricted 
percentages are established for volume regulation.
    Committee members discussed the need for Committee staff to know 
how handlers plan to meet their restricted percentage obligation and 
if, at the end of the season, they met their diversion requirement. As 
a result, the Committee developed two specific forms to be added to the 
reporting requirements under the Order.
    With the first form, the Handler Withholding Report (CMC-JUN), 
handlers would provide information on how they plan to meet their 
restricted percentage obligation. The form would be submitted to the 
Committee by June 1 during years with established free and restricted 
percentages and would require the following information: The name and 
address of the handler, the amount of cranberries to be acquired, the 
amount of cranberries to be diverted by disposal, the amount of 
cranberries to be diverted to noncompetitive outlets, and the types of 
cranberry products to be withheld. The Committee would use this 
information to estimate the amount of fruit that would be taken off the 
market, the proposed disposition of the fruit, and as a starting point 
for tracking handler compliance.
    The second form, the Final Handler Withholding Report (CMC-AUG), 
would be submitted by the end of the crop year. The report would 
require the same information as the Handler Withholding Report but 
would provide the Committee with the actual year-end seasonal totals. 
This form would be due by August 31. The final report would be used to 
verify that handlers met their restricted percentage obligation.
    Handlers would have several diversion options available to meet 
their restricted percentage obligation. One method of diversion 
available to handlers would be the disposal of fresh cranberries or 
cranberry products. In its discussions, Committee members expressed 
concern regarding verifying the accuracy of the amount of fruit or 
processed product diverted using this method. The Committee recommended 
that all disposals should take place under the supervision of a non-
industry-related third party who would review the handler's disposal 
documentation, witness the disposal whenever possible, and certify as 
to the completion of the disposal process. The Committee initially 
agreed to hire two inspectors to supervise and verify handler 
compliance. However, due to the size of the production area, the 
Committee hired four inspectors, one from each of the primary growing 
regions, who would perform these tasks. The inspection and verification 
costs would be paid by the handler.
    To facilitate this process, the Committee recommended establishing 
another form. This form, the Handler Disposal Certification (CMC-DISP), 
would be the primary form used to initiate, track, and certify this 
method of diversion during years in which a free and restricted 
percentage volume regulation has been established. The form would be 
used to notify the Committee of the handler's intent to dispose of 
cranberries or cranberry products. Information required on the form 
would include the handler's name and address; the amount of fruit to be 
diverted; the type of cranberry product to be diverted; the amount of 
processed fruit diverted, if any; and the lot identification 
information.
    Upon receipt of the form, the Committee office would notify the 
inspector in the handler's growing region. The inspector would contact 
the handler to schedule a date for the disposal to take place, usually 
within a week of receipt of the notification. The inspector would meet 
with the handler on that date to verify the documentation provided and, 
when possible, witness the disposal.
    The Committee recognized that, due to scheduling conflicts, the 
inspector may not be available to visually witness each disposal of 
restricted cranberries. Therefore, the Committee agreed that, should 
the inspector not be available to witness the diversion within seven

[[Page 6802]]

days, the handler may proceed with the disposal. The inspector would 
then verify and complete the certification upon the inspector's next 
visit to the handler's facility. If the cranberries or cranberry 
product were disposed of at a landfill, through composting, 
incineration, at a wastewater treatment facility, or any other site, 
the inspector may request receipts, visual proof, or any other 
additional information needed to support the disposal as reported on 
the form. Once the verification process is completed, the inspector 
would sign the certification section of the form, and return it to the 
Committee.
    Another method of diversion available would be to divert 
cranberries or cranberry products to noncompetitive outlets. Section 
929.57 specifies that cranberries withheld from handling may be 
disposed of only through diversion to such outlets as the Committee, 
with the approval of the Secretary, finds are noncompetitive to outlets 
for unrestricted (free percentage) cranberries. The Committee discussed 
various outlets and recommended the following: Foreign countries, 
except Canada; charitable institutions; any nonhuman food use; and 
research and development projects approved by the Committee dealing 
with the development of foreign and domestic markets, including but not 
limited to dehydration, radiation, freeze drying, or freezing of 
cranberries. The Committee further recommended that cranberries may not 
be converted into canned, frozen, or dehydrated cranberries or other 
cranberry products by any commercial process when being diverted to 
foreign countries. The specific outlets are being considered under a 
separate rulemaking action.
    AMS submitted and received OMB's approval on the five initial 
forms. Handlers would complete the forms and submit them to the 
Committee for purposes of tracking compliance with the proposed handler 
withholding requirement. OMB approved the forms on October 16, 2017, 
and assigned them OMB No. 0581-0304. Upon full completion of the forms-
approval process, AMS will seek to merge the five forms into the OMB-
approved 0581-0189 Fruit Crops containing other forms related to the 
Federal marketing order for cranberries.
    Two specific reporting requirements relating to the diversion of 
fruit to noncompetitive outlets would be added to part 929: A Handler 
Application for Outlets for Withheld Fruit (CMC-OUT) and a Third-Party 
Confirmation of Receipt of Withheld Fruit (CMC-CONF). Should a handler 
elect to divert cranberries or cranberry products to noncompetitive 
outlets, the handler must first request Committee approval of the 
outlet or research project using the Handler Application for Outlets 
for Withheld Fruit prior to each disposal activity of this type. 
Information requested on the form would include, among other things, 
the handler's name and address, information identifying the 
noncompetitive outlet, the amount and type of cranberry products to be 
diverted, and how the cranberries would be utilized. The Committee 
would review the information and approve or disapprove the diversion 
request.
    If the request is approved and the product is delivered, the 
receiving outlet would need to acknowledge receipt of the product by 
completing the Third-Party Confirmation of Receipt of Withheld Fruit 
form, and the handler would then return the completed form to the 
Committee.
    The two above-described reporting requirements would help track the 
disposition of withheld cranberries in noncompetitive outlets and would 
facilitate the compliance process under the recommended handler 
withholding.
    The last form approved by the Committee would provide handlers a 
method for appealing any decision made by the Committee relating to the 
diversion process. Should a handler disagree with a Committee decision, 
such as denying the request for approval of a noncompetitive outlet, or 
a determination that diversion could not be verified, the handler could 
appeal the decision by submitting a Handler Withholding Appeal form 
(CMC-APPL). The handler making the appeal would be required to submit 
the form within 30 days of receiving the determination from the 
Committee. This form would include information about why the handler is 
making the appeal and would provide additional information to support 
the appeal. The appeal request would be reviewed by an Appeals 
Subcommittee (Subcommittee) for re-consideration. The Subcommittee 
would consist of two independent growers, two members from the major 
cooperative, and one public member. The handler would be notified of 
the Subcommittee's determination within 30 days. If the appeal is 
denied by the Subcommittee, the handler would have the option of 
appealing the decision to the Secretary within 15 days after the 
notification of the Subcommittee's findings.
    In order to enable the Committee to inform the industry of the 
information needed for handlers to manage their inventories in a way 
that complies with the industry-supported handler withholding program, 
the five initial forms were previously submitted to OMB for approval. 
These five forms (CMC-JUN, CMC-DISP, CMC-OUT, CMC-CONF and CMC-APPL) 
were approved by OMB on October 16, 2017, for use for a six-month 
period, beginning the date of approval. This proposed rule is necessary 
for the industry to use the forms beyond the six-month period.
    Establishing these handler diversion and reporting requirements 
would facilitate the implementation of, and ensure compliance with, 
free and restricted percentages when recommended by the Committee.
    The Committee also recommended establishing free and restricted 
percentages under handler withholding for the 2017-18 crop year, as 
well as specifying the noncompetitive outlets available for diversion. 
These recommendations are being considered under a separate action.

Initial Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), AMS has considered the economic impact of 
this action 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 rules issued thereunder, are unique in that 
they are brought about through group action of essentially small 
entities acting on their own behalf.
    There are approximately 1,100 cranberry growers in the regulated 
area and approximately 65 cranberry handlers subject to regulation 
under the Order. Small agricultural producers are defined by the Small 
Business Administration (SBA) as those having annual receipts of less 
than $750,000, and small agricultural service firms are defined as 
those whose annual receipts are less than $7,500,000 (13 CFR 121.201).
    According to industry and Committee data, the average grower price 
for cranberries during the 2016-17 crop year was $23.50 per barrel, and 
total sales were around 9.5 million barrels. The value for cranberries 
that crop year totaled $223,250,000 ($23.50 per barrel multiplied by 
9.5 million barrels). Taking the total value of production for 
cranberries and dividing it by the total number of cranberry growers 
(1,100) provides an average return per grower of

[[Page 6803]]

$202,955. Based on USDA's Market News reports, the average free on 
board (f.o.b.) price for cranberries was around $30.00 per barrel. 
Multiplying the f.o.b. price by total utilization of 9.5 million 
barrels results in an estimated handler-level cranberry value of $285 
million. Dividing this figure by the number of handlers (65) yields an 
estimated average annual handler receipt of $4.3 million, which is 
below the SBA threshold for small agricultural service firms. 
Therefore, the majority of growers and handlers of cranberries may be 
classified as small entities.
    This proposed rule would establish handler diversion and reporting 
requirements under the Order. This proposed rule would establish 
procedures handlers would use to divert fruit through disposal or into 
noncompetitive outlets. The reporting requirements would support the 
diversion procedures by providing the necessary documentation to help 
ensure compliance when a volume regulation is established. This rule 
would establish new Sec. Sec.  929.157 and 929.162. The authority for 
this action is provided for in Sec. Sec.  929.54, 929.56, 929.57, and 
929.62.
    These actions could result in some additional costs to the 
industry. Specifically, handlers would incur some additional costs as a 
result of inspector verification and certification of the diversion 
process. In addition, requiring reports of cranberries acquired, 
handled, and withheld would impose an increase in the reporting burden 
on all cranberry handlers. However, the benefits are expected to 
outweigh the costs and increase in reporting burden. The provisions 
considered in this action would help facilitate the implementation of 
any recommended handler withholding volume regulation and help ensure 
compliance with the recommended regulation. Consequently, these changes 
would help provide important guidance during times when market 
conditions would support the need for establishing volume regulation.
    The impact of this rule would be beneficial to growers and 
handlers. Establishing diversion procedures would benefit the entire 
industry by ensuring handler diversion is conducted consistently and 
accurately by all handlers, which would also help ensure compliance 
with the handler withholding program. Authorizing various diversion 
outlets means handlers would not be required to divert cranberries only 
through destruction. Instead, fruit could be utilized in noncompetitive 
outlets, such as for charitable purposes. The benefits of this rule are 
expected to be equally available to all cranberry growers and handlers, 
regardless of their size, and are greater than any associated costs.
    The Committee discussed other alternatives to this proposal, 
including using different methods of ensuring accurate diversion of 
restricted fruit. One method considered was allowing handlers to self-
report their diversion of restricted fruit without a formal 
verification process. However, the Committee deemed this insufficient 
verification to ensure compliance with the program. Members were 
concerned that fruit could be re-routed to a different handling 
facility for processing, and without established verification 
procedures, the industry would not have confidence that restricted 
fruit was being properly diverted. The Committee also considered the 
value and importance of each of the forms and whether all were 
required. However, the Committee agreed each of the recommended forms 
would provide important information for the industry and for 
administering the Order. Therefore, these alternatives were rejected.
    This proposal would establish six new reporting requirements and 
six new Committee forms. Therefore, this proposed rule would impose an 
increase in the reporting burden for all handlers, which is discussed 
in the Paperwork Reduction Act section of this document.
    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. USDA has not 
identified any relevant Federal rules that duplicate, overlap, or 
conflict with this rule.
    AMS is committed to complying with the E-Government Act, to promote 
the use of the internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services, and for other purposes.
    Further, the Committee's meetings were widely publicized throughout 
the cranberry industry, and all interested persons were invited to 
attend the meetings and participate in Committee deliberations on all 
issues. Additionally, the Committee's meetings held August 31, 
September 15, and October 13, 2017, were public meetings, and all 
entities, both large and small, were able to express views on this 
issue. Finally, interested persons are invited to submit comments on 
this proposed rule, including the regulatory and information collection 
impacts of this action on small businesses.
    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 60-day comment period is provided to allow interested persons to 
respond to this proposal. All written comments timely received will be 
considered before a final determination is made on this matter.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
chapter 35), this notice announces AMS's intent to request approval 
from OMB for a new information collection under OMB No. 0581--NEW. The 
five currently approved forms in 0581-0304 and one additional form will 
be merged with the forms currently approved under OMB No. 0581-0189, 
Fruit Crops.
    Title: Cranberries Grown in States of Massachusetts, Rhode Island, 
Connecticut, New Jersey, Wisconsin, Michigan, Minnesota, Oregon, 
Washington, and Long Island in the State of New York; Marketing Order 
No. 929.
    OMB Number: 0581--NEW.
    Type of Request: New collection.
    Abstract: The information requirements in this request are 
essential to carry out the intent of the Act to provide the respondents 
the type of service they request, and to administer the Cranberry 
Marketing Order Program. USDA is responsible for overseeing the Order 
regulating the handling of cranberries grown in the states of 
Massachusetts, Rhode Island, Connecticut, New Jersey, Wisconsin, 
Michigan, Minnesota, Oregon, Washington, and Long Island in the State 
of New York. The Order is effective under the Act.
    On September 15, 2017, the Committee unanimously recommended that 
cranberry handlers subject to the Order provide the Committee with a 
report indicating the anticipated total quantity of cranberries 
acquired by the handler, the amount withheld from handling, and the 
disposition of such withheld cranberries during the crop year. This 
form, titled ``Handler Withholding Report (CMC-JUN),'' would be 
submitted directly to the Committee by handlers by June 1 in crop years 
when a handler withholding regulation has been established. This report 
would give the Committee background data on how each handler plans to 
meet the requirements of the handler withholding volume regulation.

[[Page 6804]]

    The Committee also recommended that cranberry handlers submit a 
final year-end report indicating the actual total quantity of 
cranberries acquired by the handler, the amount withheld from handling, 
and the disposition of such withheld cranberries during the crop year. 
This form, titled ``Final Handler Withholding Report (CMC-AUG),'' would 
be submitted directly to the Committee by handlers by August 31. This 
report would give the Committee actual data on how each handler met the 
requirements of the handler withholding volume regulation.
    The Committee also recommended that handlers subject to the Order 
submit a report certifying whenever a disposal of withheld cranberries 
is to be made. This report would contain information regarding the 
volume, the form of disposed cranberries, and information on the 
container type. This form, titled ``Handler Disposal Certification 
(CMC-DISP),'' would be submitted directly to the Committee by handlers 
preceding each disposal activity. This information collection would 
provide the Committee with data regarding the amount of cranberries 
diverted and the information needed to help track handler compliance 
with the recommended handler withholding requirements.
    The Committee also recommended that handlers provide the Committee 
with a record of withheld cranberries disposed of in non-commercial 
outlets. This form, titled ``Handler Application for Outlets for 
Withheld Fruit (CMC-OUT),'' would be submitted directly to the 
Committee by handlers to provide information regarding the type, form, 
and volume of cranberries disposed of in noncompetitive outlets. 
Handlers would submit this form prior to each disposal activity of this 
type to provide the Committee with the opportunity to review and 
approve the requested outlet. This information collection would provide 
the Committee with information on the noncompetitive outlets used to 
meet the requirements for withheld cranberries and would be necessary 
for the Committee to track compliance with an established handler 
withholding requirement.
    The Committee also recommended that handlers submit a report 
confirming the third-party receipt of withheld fruit. This form, titled 
``Third-Party Confirmation of Receipt of Withheld Fruit (CMC-CONF),'' 
would include certification by outlets receiving withheld cranberries 
for use in a noncompetitive outlet. This form would need to be 
submitted after each shipment of withheld fruit received by 
noncompetitive outlets, such as charities. This report contains 
information on the type, form, and volume of withheld fruit received. 
This reporting requirement would help track the disposition of withheld 
cranberries and facilitate compliance with the recommended handler 
withholding requirements.
    The Committee also recommended establishing a form for handlers to 
use to appeal any denial of a request made for disposing of cranberries 
in a noncompetitive outlet. This form, titled ``Handler Withholding 
Appeal (CMC-APPL),'' would need to be submitted by the handler making 
the appeal within 30 days of the denial. This form would include 
information about why the handler is making the appeal and would 
provide additional information to support the appeal.
    The Order authorizes the Committee to collect certain information 
as required. The information collected would only be used by authorized 
representatives of the USDA, including the AMS Specialty Crops Program 
regional and headquarters staff, and authorized employees of the 
Committee. All proprietary information would be kept confidential in 
accordance with the Act and the Order.
    The Committee developed these forms to effectively carry out a 
handler withholding volume regulation for the 2017-18 crop year and for 
future years when a handler withholding regulation has been 
established. The purpose of these forms would be to ensure compliance 
with the recommended handler withholding requirement.
    Upon OMB approval of the new forms and the information collection 
package, AMS will request OMB approval to merge the new forms and this 
information collection in the currently approved information collection 
OMB control number 0581-0189, Fruit Crops.
    The proposed request for new information collection under the Order 
is as follows:

Handler Withholding Report (CMC-JUN)

    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to be an average of 0.08 hours per response.
    Respondents: Handlers of cranberries grown in the states of 
Massachusetts, Rhode Island, Connecticut, New Jersey, Wisconsin, 
Michigan, Minnesota, Oregon, Washington, and Long Island in the State 
of New York.
    Estimated Number of Respondents: 10.
    Estimated Number of Responses per Respondent: 1.
    Estimated Total Annual Burden on Respondents: 0.8 hours.

Handler Disposal Certification (CMC-DISP)

    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to be an average of 0.17 hours per response.
    Respondents: Handlers of cranberries grown in the states of 
Massachusetts, Rhode Island, Connecticut, New Jersey, Wisconsin, 
Michigan, Minnesota, Oregon, Washington, and Long Island in the State 
of New York.
    Estimated Number of Respondents: 10.
    Estimated Number of Responses per Respondent: 12.
    Estimated Total Annual Burden on Respondents: 20.4 hours.

Handler Application for Outlets for Withheld Fruit (CMC-OUT)

    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to be an average of 0.08 hours per response.
    Respondents: Handlers of cranberries grown in the states of 
Massachusetts, Rhode Island, Connecticut, New Jersey, Wisconsin, 
Michigan, Minnesota, Oregon, Washington, and Long Island in the State 
of New York.
    Estimated Number of Respondents: 10.
    Estimated Number of Responses per Respondent: 12.
    Estimated Total Annual Burden on Respondents: 9.6 hours.

Third-Party Confirmation of Receipt of Withheld Fruit (CMC-CONF)

    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to be an average of 0.05 hours per response.
    Respondents: Handlers of cranberries grown in the states of 
Massachusetts, Rhode Island, Connecticut, New Jersey, Wisconsin, 
Michigan, Minnesota, Oregon, Washington, and Long Island in the State 
of New York.
    Estimated Number of Respondents: 10.
    Estimated Number of Responses per Respondent: 12.
    Estimated Total Annual Burden on Respondents: 6 hours.

Handler Withholding Appeal (CMC-APPL)

    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to be an average of 0.08 hours per response.
    Respondents: Handlers of cranberries grown in the states of 
Massachusetts, Rhode Island, Connecticut, New Jersey,

[[Page 6805]]

Wisconsin, Michigan, Minnesota, Oregon, Washington, and Long Island in 
the State of New York.
    Estimated Number of Respondents: 5.
    Estimated Number of Responses per Respondent: 2.
    Estimated Total Annual Burden on Respondents: 0.8 hours.

Final Handler Withholding Report (CMC-AUG)

    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to be an average of 0.08 hours per response.
    Respondents: Handlers of cranberries grown in the states of 
Massachusetts, Rhode Island, Connecticut, New Jersey, Wisconsin, 
Michigan, Minnesota, Oregon, Washington, and Long Island in the State 
of New York.
    Estimated Number of Respondents: 10.
    Estimated Number of Responses per Respondent: 1.
    Estimated Total Annual Burden on Respondents: 0.8 hours.
    Comments are invited on: (1) Whether the proposed collection of 
information is necessary for the proper performance of the functions of 
the Agency, including whether the information will have practical 
utility; (2) the accuracy of the Agency's estimate of the burden of the 
proposed collection of information, including the validity of the 
methodology and assumptions used; (3) ways to enhance the quality, 
utility, and clarity of the information to be collected; and (4) ways 
to minimize the burden of the collection of information on those who 
are to respond, including the use of appropriate automated, electronic, 
mechanical, or other technological collection techniques or other forms 
of information technology.
    Comments should reference OMB No. 0581--NEW and the Marketing Order 
for Cranberries Grown in States of Massachusetts, Rhode Island, 
Connecticut, New Jersey, Wisconsin, Michigan, Minnesota, Oregon, 
Washington, and Long Island in the State of New York, and should be 
sent to the USDA in care of the Docket Clerk at the previously 
mentioned address or at http://www.regulations.gov.
    All responses to this notice will be summarized and included in the 
request for OMB approval. All comments received will become a matter of 
public record and will be available for public inspection during 
regular business hours at the address of the Docket Clerk or at http://www.regulations.gov.
    If this proposed rule is finalized, this information collection 
will be merged with the forms currently approved under OMB No. 0581-
0189, Fruit Crops.

List of Subjects in 7 CFR Part 929

    Cranberries, Marketing agreements, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 929 is 
proposed to be amended as follows:

PART 929--CRANBERRIES GROWN IN STATES OF MASSACHUSETTS, RHODE 
ISLAND, CONNECTICUT, NEW JERSEY, WISCONSIN, MICHIGAN, MINNESOTA, 
OREGON, WASHINGTON, AND LONG ISLAND IN THE STATE OF NEW YORK

0
1. The authority citation for 7 CFR part 929 continues to read as 
follows:

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

[Subpart Redesignated as Subpart A]

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

[Subpart Redesignated as Subpart B and Amended]

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

Subpart B--Administrative Requirements

0
4. Add Sec.  929.157 to read as follows:


Sec.  929.157  Handler diversion.

    (a) Methods of diversion. Handlers may divert cranberries by 
disposing of cranberries or cranberry products. Diversion by disposal 
may take place prior to placing the cranberries into the processing 
line or after processing. Handlers may also divert cranberries or 
cranberry products to approved, noncompetitive outlets for withheld 
fruit. Whole berries or processed products diverted must come from the 
current crop year. Any information collected of a confidential and/or 
proprietary nature would be held in confidence pursuant to Sec.  
929.65.
    (1) Diversion through disposal. This type of diversion is to be 
carried out under the supervision of the Committee, and the cost of 
such supervision is to be paid by the handler. Handlers shall notify 
the Committee of their intent to dispose of cranberries or cranberry 
products using Form CMC-DISP as specified in Sec.  929.162(c). 
Following notification, a Committee inspector will meet with the 
handler to verify the documentation provided and, when possible, 
witness the destruction. The Committee inspector may request receipts, 
visual proof, or any other information needed to support the disposal 
as reported. Once the verification process has been completed, the 
Committee inspector will sign the certification section of Form CMC-
DISP and return it to the Committee.
    (2) Diversion through noncompetitive outlets. To divert cranberries 
or cranberry products to a noncompetitive outlet, handlers must apply 
to the Committee using Form CMC-OUT as specified in Sec.  929.162(d) 
prior to each disposal activity of this type. The Committee will review 
the information and approve or disapprove the diversion request. Once 
the cranberries or cranberry products are delivered to the approved 
noncompetitive outlets, the Committee must receive satisfactory 
documentation of the transaction using Form CMC-CONF as specified in 
Sec.  929.162(e).
    (b) Committee notification and handler plan. Any handler intending 
to divert cranberries or cranberry products pursuant to Sec.  929.54 
must notify the Committee of such intent and provide a plan by June 1 
that shows how the handler intends to meet the restricted percentage 
obligation. The handler shall submit this plan using Form CMC-JUNE as 
specified in the reporting requirements under Sec.  929.162(a). The 
handler will have until August 31 to fulfill the plan, by which time 
the handler shall submit a final report detailing how the restricted 
percentage obligation was met using Form CMC-AUG as specified in Sec.  
929.162(b).
    (c) Request for review. (1) If a handler is dissatisfied with a 
determination made by the Committee which affects such handler, the 
handler may submit to the Committee within 30 days after receipt of the 
Committee's determination, a request for a review by an appeals 
subcommittee composed of two independent growers and two cooperative 
representatives, as well as a public member. The appeals subcommittee 
shall be appointed by the Committee chairperson. The handler may 
forward with the request any pertinent materials for consideration of 
the appeal.
    (2) The subcommittee shall review the information submitted by the 
handler and render a decision within 30 days of receipt of such appeal. 
The subcommittee shall notify the handler of its decision, accompanied 
by the reasons for its conclusions and findings.
    (3) The handler may further appeal to the Secretary, within 15 days 
after notification of the subcommittee's findings, if such handler is 
not satisfied with the appeals subcommittee's decision. The Committee 
shall forward a file to the Secretary with all pertinent

[[Page 6806]]

information related to the handler's appeal. The Secretary shall inform 
the handler and all interested parties of the Secretary's decision. All 
decisions by the Secretary are final.
0
5. Add Sec.  929.162 to read as follows:


Sec.  929.162  Handler diversion reports.

    (a) Handler withholding report. Handlers shall submit to the 
Committee, by June 1, a handler withholding report. The report shall be 
submitted using Form CMC-JUN and contain the following information:
    (1) The name and address of the handler;
    (2) The amount of cranberries acquired;
    (3) The amount of cranberries withheld by disposal;
    (4) The amount of cranberries diverted to noncompetitive outlets;
    (5) The form of cranberry products withheld; and
    (6) The total withholding obligation.
    (b) Handler Withholding Final Report. Handlers shall submit to the 
Committee, by August 31, a final handler withholding report. The final 
report shall be submitted using Form CMC-AUG and contain the following 
information:
    (1) The name and address of the handler;
    (2) The seasonal total of cranberries acquired;
    (3) The seasonal total of cranberries withheld by disposal;
    (4) The seasonal total of cranberries diverted to noncompetitive 
outlets;
    (5) The form of cranberry products withheld during the season; and
    (6) The total withholding obligation.
    (c) Handler disposal certification. Handlers shall submit to the 
Committee Form CMC-DISP for each lot of cranberries or cranberry 
products to be diverted through disposal. The form shall contain the 
following information:
    (1) Name and address of the handler;
    (2) Marketable cranberries in whole fruit or processed cranberries 
converted to whole fruit equivalent disposed of in this lot;
    (3) Form of cranberries;
    (4) Volume if in processed form;
    (5) Lot details;
    (6) Disposal site and method; and
    (7) Inspector certification of the completion of the disposal.
    (d) Handler application for outlets for withheld fruit. Handlers 
shall submit to the Committee Form CMC-OUT for approval for each lot of 
cranberries or cranberry products to be diverted to noncompetitive 
outlets in accordance with Sec.  929.57. The form shall contain the 
following information:
    (1) Name and address of the handler;
    (2) Project type;
    (3) Product form;
    (4) Quantity of cranberries in whole fruit or processed cranberries 
converted to whole fruit equivalent diverted;
    (5) A description of the project and how the cranberries will be 
used.
    (e) Third-party confirmation of receipt of withheld fruit. Handlers 
shall submit to the Committee Form CMC-CONF for each diversion to a 
noncompetitive outlet to verify the receipt of the cranberries or 
cranberry product by the approved outlet. The form shall contain the 
following information:
    (1) Name and address of the handler;
    (2) Project type;
    (3) Product form;
    (4) Quantity of cranberries in whole fruit or processed cranberries 
converted to whole fruit equivalent utilized; and
    (5) Confirmation or documentation of receipt from the receiving 
outlet.
    (f) Handler withholding appeal. Handlers may appeal a determination 
made by the Committee relating to a handler withholding regulation 
using the appeals process outlined in Sec.  929.157(c) and Form CMC-
APPL, which shall contain the following information:
    (1) Name and address of the handler;
    (2) Reason for appeal; and
    (3) Information in support of appeal.

[Subpart Redesignated as Subpart C]

0
6. Redesignate ``Subpart--Assessment Rate'' as ``Subpart C--Assessment 
Rate''.

    Dated: February 2, 2018.
Bruce Summers,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2018-02441 Filed 2-14-18; 8:45 am]
BILLING CODE 3410-02-P



                                                  6800

                                                  Proposed Rules                                                                                                Federal Register
                                                                                                                                                                Vol. 83, No. 32

                                                                                                                                                                Thursday, February 15, 2018



                                                  This section of the FEDERAL REGISTER                    page number of this issue of the Federal              Executive Order 12866 review.
                                                  contains notices to the public of the proposed          Register and will be made available for               Additionally, because this proposed
                                                  issuance of rules and regulations. The                  public inspection in the Office of the                rule does not meet the definition of a
                                                  purpose of these notices is to give interested          Docket Clerk during regular business                  significant regulatory action, it does not
                                                  persons an opportunity to participate in the            hours, or can be viewed at: http://                   trigger the requirements contained in
                                                  rule making prior to the adoption of the final
                                                                                                          www.regulations.gov. All comments                     Executive Order 13771. See OMB’s
                                                  rules.
                                                                                                          submitted in response to this proposal                Memorandum titled ‘‘Interim Guidance
                                                                                                          will be included in the record and will               Implementing Section 2 of the Executive
                                                  DEPARTMENT OF AGRICULTURE                               be made available to the public. Please               Order of January 30, 2017, titled
                                                                                                          be advised that the identity of the                   ‘Reducing Regulation and Controlling
                                                  Agricultural Marketing Service                          individuals or entities submitting the                Regulatory Costs’ ’’ (February 2, 2017).
                                                                                                          comments will be made public on the                      This proposal has been reviewed
                                                  7 CFR Part 929                                          internet at the address provided above.               under Executive Order 12988, Civil
                                                  [Doc. No. AMS–SC–17–0066; SC17–929–3                    FOR FURTHER INFORMATION CONTACT:                      Justice Reform. This proposed rule is
                                                  PR]                                                     Doris Jamieson, Marketing Specialist, or              not intended to have retroactive effect.
                                                                                                          Christian D. Nissen, Regional Director,                  The Act provides that administrative
                                                  Cranberries Grown in States of                          Southeast Marketing Field Office,                     proceedings must be exhausted before
                                                  Massachusetts, et al.; Establishment of                 Marketing Order and Agreement                         parties may file suit in court. Under
                                                  Handler Diversion and Reporting                         Division, Specialty Crops Program,                    section 608c(15)(A) of the Act, any
                                                  Requirements and New Information                        AMS, USDA; Telephone: (863) 324–                      handler subject to an order may file
                                                  Collection                                              3375, Fax: (863) 291–8614, or Email:                  with USDA a petition stating that the
                                                                                                          Doris.Jamieson@ams.usda.gov or                        order, any provision of the order, or any
                                                  AGENCY:  Agricultural Marketing Service,                Christian.Nissen@ams.usda.gov.                        obligation imposed in connection with
                                                  USDA.                                                      Small businesses may request                       the order is not in accordance with law
                                                  ACTION: Proposed rule.                                  information on complying with this                    and request a modification of the order
                                                                                                          regulation by contacting Richard Lower,               or to be exempted therefrom. A handler
                                                  SUMMARY:   This proposed rule invites                   Marketing Order and Agreement                         is afforded the opportunity for a hearing
                                                  comments on the establishment of                        Division, Specialty Crops Program,                    on the petition. After the hearing, USDA
                                                  handler diversion and reporting                         AMS, USDA, 1400 Independence                          would rule on the petition. The Act
                                                  requirements as recommended by the                      Avenue SW, STOP 0237, Washington,                     provides that the district court of the
                                                  Cranberry Marketing Committee                           DC 20250–0237; Telephone: (202) 720–                  United States in any district in which
                                                  (Committee). This proposal would                        2491, Fax: (202) 720–8938, or Email:                  the handler is an inhabitant, or has his
                                                  establish the procedures handlers would                 Richard.Lower@ams.usda.gov.                           or her principal place of business, has
                                                  use to divert fruit through disposal or                                                                       jurisdiction to review USDA’s ruling on
                                                                                                          SUPPLEMENTARY INFORMATION: This
                                                  into noncompetitive outlets. The                                                                              the petition, provided an action is filed
                                                                                                          proposed rule, pursuant to 5 U.S.C. 553,
                                                  reporting requirements would support                                                                          not later than 20 days after the date of
                                                                                                          proposes an amendment to regulations
                                                  the diversion procedures by providing                                                                         the entry of the ruling.
                                                                                                          used to carry out a marketing order as
                                                  the necessary documentation to help                                                                              This proposal would establish
                                                                                                          defined in 7 CFR 900.2(j). This proposal
                                                  ensure compliance when a volume                                                                               handler diversion and reporting
                                                                                                          is issued under Marketing Agreement
                                                  regulation is established. This proposal                                                                      requirements under the Order. This
                                                                                                          and Order No. 929, as amended (7 CFR
                                                  also announces the Agricultural                                                                               proposal would establish procedures
                                                                                                          part 929), regulating the handling of
                                                  Marketing Service’s (AMS) intention to                                                                        handlers would use to divert fruit
                                                                                                          cranberries grown in the states of
                                                  request approval from the Office of                                                                           through disposal or into noncompetitive
                                                                                                          Massachusetts, Rhode Island,
                                                  Management and Budget (OMB) of a                                                                              outlets. The reporting requirements
                                                                                                          Connecticut, New Jersey, Wisconsin,
                                                  new information collection.                                                                                   would support the diversion procedures
                                                                                                          Michigan, Minnesota, Oregon,
                                                  DATES: Comments must be received by                     Washington, and Long Island in the                    by providing the necessary
                                                  April 16, 2018. Pursuant to the                         State of New York. Part 929 (referred to              documentation to help ensure
                                                  Paperwork Reduction Act, comments on                    as the ‘‘Order’’) is effective under the              compliance when a volume regulation is
                                                  the information collection burden must                  Agricultural Marketing Agreement Act                  established. This proposed rule was
                                                  be received by April 16, 2018.                          of 1937, as amended (7 U.S.C. 601–674),               recommended by the Committee at its
                                                  ADDRESSES: Interested persons are                       hereinafter referred to as the ‘‘Act.’’ The           August 31, 2017, September 15, 2017,
                                                  invited to submit written comments                      Committee locally administers the                     and October 13, 2017, meetings.
                                                  concerning this proposal. Comments                      Order and is comprised of growers and                    The Order provides for the use of
                                                  must be sent to the Docket Clerk,                       handlers of cranberries operating within              volume regulation to stabilize prices
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                                                  Marketing Order and Agreement                           the production area, and a public                     and improve grower returns during
                                                  Division, Specialty Crops Program,                      member.                                               periods of oversupply. Section
                                                  AMS, USDA, 1400 Independence                               The Department of Agriculture                      929.51(a)(2) specifies that a handler
                                                  Avenue SW, STOP 0237, Washington,                       (USDA) is issuing this proposed rule in               withholding program must be
                                                  DC 20250–0237; Fax: (202) 720–8938; or                  conformance with Executive Orders                     recommended by the Committee no
                                                  internet: http://www.regulations.gov. All               13563 and 13175. This proposed rule                   later than August 31 and that such
                                                  comments should reference the                           falls within a category of regulatory                 recommendation shall include the free
                                                  document number and the date and                        actions that OMB exempted from                        and restricted percentages for the crop


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                                                                        Federal Register / Vol. 83, No. 32 / Thursday, February 15, 2018 / Proposed Rules                                           6801

                                                  year. On August 31, 2017, the                           recognized the need to establish                      the Committee with the actual year-end
                                                  Committee met and recommended free                      procedures outlining the diversion                    seasonal totals. This form would be due
                                                  and restricted percentages of 85 percent                requirements for restricted fruit.                    by August 31. The final report would be
                                                  free and 15 percent restricted. Handler                   Free percentage cranberries can be                  used to verify that handlers met their
                                                  diversion is one method that handlers                   used to supply any available market,                  restricted percentage obligation.
                                                  can utilize to meet restricted percentage               including juice, sweetened dried                        Handlers would have several
                                                  requirements.                                           cranberries, sauce, and frozen                        diversion options available to meet their
                                                     Section 929.54 provides, in part, that               cranberries. Restricted percentage                    restricted percentage obligation. One
                                                  whenever the Secretary of Agriculture                   cranberries can be diverted through                   method of diversion available to
                                                  (Secretary) has fixed the free and                      disposal or utilized in markets that are              handlers would be the disposal of fresh
                                                  restricted percentages for any fiscal                   noncompetitive with free cranberries.                 cranberries or cranberry products. In its
                                                  period, each handler shall withhold                     Possible outlets for restricted                       discussions, Committee members
                                                  from handling a portion of the                          cranberries include, in part, for fresh               expressed concern regarding verifying
                                                  cranberries acquired during such                        export, except to Canada; charity;                    the accuracy of the amount of fruit or
                                                  period. This section also provides the                  research and development projects; and                processed product diverted using this
                                                  authority for the Committee to establish,               any nonhuman food use. Handlers also                  method. The Committee recommended
                                                  with the approval of the Secretary, rules               have the option to divert processed                   that all disposals should take place
                                                  and regulations necessary to administer                 products in lieu of fresh fruit to meet up            under the supervision of a non-industry-
                                                  this section. Section 929.56 provides                   to 50 percent of their restricted                     related third party who would review
                                                  special provisions relating to withheld                 obligation.                                           the handler’s disposal documentation,
                                                  (restricted) cranberries, and § 929.57                    At the 2017 meetings in August,                     witness the disposal whenever possible,
                                                  provides authority for the Committee to                 September, and October, the Committee                 and certify as to the completion of the
                                                  establish, with the approval of the                     discussed the handler diversion                       disposal process. The Committee
                                                  Secretary, outlets for withheld                         procedures and the associated reporting               initially agreed to hire two inspectors to
                                                  cranberries which are noncompetitive                    requirements that would be necessary to               supervise and verify handler
                                                  with outlets for unrestricted (free                     help ensure compliance with a free and                compliance. However, due to the size of
                                                  percentage) cranberries.                                restricted percentage volume regulation.              the production area, the Committee
                                                     Section 929.62 provides, in part,                    As a result, the Committee developed                  hired four inspectors, one from each of
                                                  authority to require handlers to submit                 and approved six specific forms and                   the primary growing regions, who
                                                  reports of cranberries acquired, held in                related procedures to be used during                  would perform these tasks. The
                                                  inventory, quantity handled, total                      seasons when free and restricted                      inspection and verification costs would
                                                  cranberries withheld from handling, the                 percentages are established for volume                be paid by the handler.
                                                  portion of such withheld cranberries on                 regulation.                                             To facilitate this process, the
                                                  hand, and the quantity and manner of                      Committee members discussed the                     Committee recommended establishing
                                                  disposition of any such withheld                        need for Committee staff to know how                  another form. This form, the Handler
                                                  cranberries diverted. Section 929.62(f)                 handlers plan to meet their restricted                Disposal Certification (CMC–DISP),
                                                  further provides authority for the                      percentage obligation and if, at the end              would be the primary form used to
                                                  Committee, with the approval of the                     of the season, they met their diversion               initiate, track, and certify this method of
                                                  Secretary, to collect other reports and                 requirement. As a result, the Committee               diversion during years in which a free
                                                  information from handlers needed to                     developed two specific forms to be                    and restricted percentage volume
                                                  perform its duties.                                     added to the reporting requirements                   regulation has been established. The
                                                     This proposal would use these                        under the Order.                                      form would be used to notify the
                                                  authorities to establish new §§ 929.157                   With the first form, the Handler                    Committee of the handler’s intent to
                                                  and 929.162. Section 929.157 would                      Withholding Report (CMC–JUN),                         dispose of cranberries or cranberry
                                                  establish the procedures to be used for                 handlers would provide information on                 products. Information required on the
                                                  handler diversion when free and                         how they plan to meet their restricted                form would include the handler’s name
                                                  restricted percentages are instituted.                  percentage obligation. The form would                 and address; the amount of fruit to be
                                                  Section 929.162 would require handlers                  be submitted to the Committee by June                 diverted; the type of cranberry product
                                                  of cranberries, during years when free                  1 during years with established free and              to be diverted; the amount of processed
                                                  and restricted percentages are applied,                 restricted percentages and would                      fruit diverted, if any; and the lot
                                                  to report to the Committee diversion                    require the following information: The                identification information.
                                                  plans and year-end reports, information                 name and address of the handler, the                    Upon receipt of the form, the
                                                  on cranberries diverted and cranberries                 amount of cranberries to be acquired,                 Committee office would notify the
                                                  shipped to noncompetitive outlets, and                  the amount of cranberries to be diverted              inspector in the handler’s growing
                                                  other information to verify compliance                  by disposal, the amount of cranberries                region. The inspector would contact the
                                                  with the program, using six specific                    to be diverted to noncompetitive outlets,             handler to schedule a date for the
                                                  Committee forms. Detailed information                   and the types of cranberry products to                disposal to take place, usually within a
                                                  on the reporting burden that would be                   be withheld. The Committee would use                  week of receipt of the notification. The
                                                  created by these new forms is discussed                 this information to estimate the amount               inspector would meet with the handler
                                                  later in this document.                                 of fruit that would be taken off the                  on that date to verify the documentation
                                                     The Committee recommended                            market, the proposed disposition of the               provided and, when possible, witness
sradovich on DSK3GMQ082PROD with PROPOSALS




                                                  establishing free and restricted                        fruit, and as a starting point for tracking           the disposal.
                                                  percentages under a handler                             handler compliance.                                     The Committee recognized that, due
                                                  withholding volume regulation for the                     The second form, the Final Handler                  to scheduling conflicts, the inspector
                                                  2017–18 season in response to                           Withholding Report (CMC–AUG),                         may not be available to visually witness
                                                  historically high inventory levels for                  would be submitted by the end of the                  each disposal of restricted cranberries.
                                                  cranberries. As this is the first time the              crop year. The report would require the               Therefore, the Committee agreed that,
                                                  Committee has used this volume                          same information as the Handler                       should the inspector not be available to
                                                  regulation provision under the Order, it                Withholding Report but would provide                  witness the diversion within seven


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                                                  6802                  Federal Register / Vol. 83, No. 32 / Thursday, February 15, 2018 / Proposed Rules

                                                  days, the handler may proceed with the                  noncompetitive outlets, the handler                   withholding program, the five initial
                                                  disposal. The inspector would then                      must first request Committee approval                 forms were previously submitted to
                                                  verify and complete the certification                   of the outlet or research project using               OMB for approval. These five forms
                                                  upon the inspector’s next visit to the                  the Handler Application for Outlets for               (CMC–JUN, CMC–DISP, CMC–OUT,
                                                  handler’s facility. If the cranberries or               Withheld Fruit prior to each disposal                 CMC–CONF and CMC–APPL) were
                                                  cranberry product were disposed of at a                 activity of this type. Information                    approved by OMB on October 16, 2017,
                                                  landfill, through composting,                           requested on the form would include,                  for use for a six-month period,
                                                  incineration, at a wastewater treatment                 among other things, the handler’s name                beginning the date of approval. This
                                                  facility, or any other site, the inspector              and address, information identifying the              proposed rule is necessary for the
                                                  may request receipts, visual proof, or                  noncompetitive outlet, the amount and                 industry to use the forms beyond the
                                                  any other additional information needed                 type of cranberry products to be                      six-month period.
                                                  to support the disposal as reported on                  diverted, and how the cranberries                       Establishing these handler diversion
                                                  the form. Once the verification process                 would be utilized. The Committee                      and reporting requirements would
                                                  is completed, the inspector would sign                  would review the information and                      facilitate the implementation of, and
                                                  the certification section of the form, and              approve or disapprove the diversion                   ensure compliance with, free and
                                                  return it to the Committee.                             request.                                              restricted percentages when
                                                     Another method of diversion                             If the request is approved and the                 recommended by the Committee.
                                                  available would be to divert cranberries                product is delivered, the receiving                     The Committee also recommended
                                                  or cranberry products to noncompetitive                 outlet would need to acknowledge                      establishing free and restricted
                                                  outlets. Section 929.57 specifies that                  receipt of the product by completing the              percentages under handler withholding
                                                  cranberries withheld from handling may                  Third-Party Confirmation of Receipt of                for the 2017–18 crop year, as well as
                                                  be disposed of only through diversion to                Withheld Fruit form, and the handler                  specifying the noncompetitive outlets
                                                  such outlets as the Committee, with the                 would then return the completed form                  available for diversion. These
                                                  approval of the Secretary, finds are                    to the Committee.                                     recommendations are being considered
                                                  noncompetitive to outlets for                              The two above-described reporting                  under a separate action.
                                                  unrestricted (free percentage)                          requirements would help track the
                                                                                                                                                                Initial Regulatory Flexibility Analysis
                                                  cranberries. The Committee discussed                    disposition of withheld cranberries in
                                                  various outlets and recommended the                     noncompetitive outlets and would                         Pursuant to requirements set forth in
                                                  following: Foreign countries, except                    facilitate the compliance process under               the Regulatory Flexibility Act (RFA) (5
                                                  Canada; charitable institutions; any                    the recommended handler withholding.                  U.S.C. 601–612), AMS has considered
                                                  nonhuman food use; and research and                        The last form approved by the                      the economic impact of this action on
                                                  development projects approved by the                    Committee would provide handlers a                    small entities. Accordingly, AMS has
                                                  Committee dealing with the                              method for appealing any decision                     prepared this initial regulatory
                                                  development of foreign and domestic                     made by the Committee relating to the                 flexibility analysis.
                                                  markets, including but not limited to                   diversion process. Should a handler                      The purpose of the RFA is to fit
                                                  dehydration, radiation, freeze drying, or               disagree with a Committee decision,                   regulatory actions to the scale of
                                                  freezing of cranberries. The Committee                  such as denying the request for approval              businesses subject to such actions in
                                                  further recommended that cranberries                    of a noncompetitive outlet, or a                      order that small businesses will not be
                                                  may not be converted into canned,                       determination that diversion could not                unduly or disproportionately burdened.
                                                  frozen, or dehydrated cranberries or                    be verified, the handler could appeal the             Marketing orders issued pursuant to the
                                                  other cranberry products by any                         decision by submitting a Handler                      Act, and rules issued thereunder, are
                                                  commercial process when being                           Withholding Appeal form (CMC–APPL).                   unique in that they are brought about
                                                  diverted to foreign countries. The                      The handler making the appeal would                   through group action of essentially
                                                  specific outlets are being considered                   be required to submit the form within                 small entities acting on their own
                                                  under a separate rulemaking action.                     30 days of receiving the determination                behalf.
                                                     AMS submitted and received OMB’s                     from the Committee. This form would                      There are approximately 1,100
                                                  approval on the five initial forms.                     include information about why the                     cranberry growers in the regulated area
                                                  Handlers would complete the forms and                   handler is making the appeal and would                and approximately 65 cranberry
                                                  submit them to the Committee for                        provide additional information to                     handlers subject to regulation under the
                                                  purposes of tracking compliance with                    support the appeal. The appeal request                Order. Small agricultural producers are
                                                  the proposed handler withholding                        would be reviewed by an Appeals                       defined by the Small Business
                                                  requirement. OMB approved the forms                     Subcommittee (Subcommittee) for re-                   Administration (SBA) as those having
                                                  on October 16, 2017, and assigned them                  consideration. The Subcommittee                       annual receipts of less than $750,000,
                                                  OMB No. 0581–0304. Upon full                            would consist of two independent                      and small agricultural service firms are
                                                  completion of the forms-approval                        growers, two members from the major                   defined as those whose annual receipts
                                                  process, AMS will seek to merge the five                cooperative, and one public member.                   are less than $7,500,000 (13 CFR
                                                  forms into the OMB-approved 0581–                       The handler would be notified of the                  121.201).
                                                  0189 Fruit Crops containing other forms                 Subcommittee’s determination within                      According to industry and Committee
                                                  related to the Federal marketing order                  30 days. If the appeal is denied by the               data, the average grower price for
                                                  for cranberries.                                        Subcommittee, the handler would have                  cranberries during the 2016–17 crop
                                                     Two specific reporting requirements                  the option of appealing the decision to               year was $23.50 per barrel, and total
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                                                  relating to the diversion of fruit to                   the Secretary within 15 days after the                sales were around 9.5 million barrels.
                                                  noncompetitive outlets would be added                   notification of the Subcommittee’s                    The value for cranberries that crop year
                                                  to part 929: A Handler Application for                  findings.                                             totaled $223,250,000 ($23.50 per barrel
                                                  Outlets for Withheld Fruit (CMC–OUT)                       In order to enable the Committee to                multiplied by 9.5 million barrels).
                                                  and a Third-Party Confirmation of                       inform the industry of the information                Taking the total value of production for
                                                  Receipt of Withheld Fruit (CMC–CONF).                   needed for handlers to manage their                   cranberries and dividing it by the total
                                                  Should a handler elect to divert                        inventories in a way that complies with               number of cranberry growers (1,100)
                                                  cranberries or cranberry products to                    the industry-supported handler                        provides an average return per grower of


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                                                                        Federal Register / Vol. 83, No. 32 / Thursday, February 15, 2018 / Proposed Rules                                         6803

                                                  $202,955. Based on USDA’s Market                        regardless of their size, and are greater             marketing agreements and orders may
                                                  News reports, the average free on board                 than any associated costs.                            be viewed at: http://www.ams.usda.gov/
                                                  (f.o.b.) price for cranberries was around                  The Committee discussed other                      rules-regulations/moa/small-businesses.
                                                  $30.00 per barrel. Multiplying the f.o.b.               alternatives to this proposal, including              Any questions about the compliance
                                                  price by total utilization of 9.5 million               using different methods of ensuring                   guide should be sent to Richard Lower
                                                  barrels results in an estimated handler-                accurate diversion of restricted fruit.               at the previously mentioned address in
                                                  level cranberry value of $285 million.                  One method considered was allowing                    the FOR FURTHER INFORMATION CONTACT
                                                  Dividing this figure by the number of                   handlers to self-report their diversion of            section.
                                                  handlers (65) yields an estimated                       restricted fruit without a formal                        A 60-day comment period is provided
                                                  average annual handler receipt of $4.3                  verification process. However, the                    to allow interested persons to respond
                                                  million, which is below the SBA                         Committee deemed this insufficient                    to this proposal. All written comments
                                                  threshold for small agricultural service                verification to ensure compliance with                timely received will be considered
                                                  firms. Therefore, the majority of growers               the program. Members were concerned                   before a final determination is made on
                                                  and handlers of cranberries may be                      that fruit could be re-routed to a                    this matter.
                                                  classified as small entities.                           different handling facility for
                                                                                                                                                                Paperwork Reduction Act
                                                     This proposed rule would establish                   processing, and without established
                                                  handler diversion and reporting                         verification procedures, the industry                    In accordance with the Paperwork
                                                  requirements under the Order. This                      would not have confidence that                        Reduction Act of 1995 (44 U.S.C.
                                                  proposed rule would establish                           restricted fruit was being properly                   chapter 35), this notice announces
                                                  procedures handlers would use to divert                 diverted. The Committee also                          AMS’s intent to request approval from
                                                  fruit through disposal or into                          considered the value and importance of                OMB for a new information collection
                                                  noncompetitive outlets. The reporting                   each of the forms and whether all were                under OMB No. 0581—NEW. The five
                                                  requirements would support the                          required. However, the Committee                      currently approved forms in 0581–0304
                                                  diversion procedures by providing the                   agreed each of the recommended forms                  and one additional form will be merged
                                                  necessary documentation to help ensure                  would provide important information                   with the forms currently approved
                                                  compliance when a volume regulation is                  for the industry and for administering                under OMB No. 0581–0189, Fruit Crops.
                                                  established. This rule would establish                  the Order. Therefore, these alternatives                 Title: Cranberries Grown in States of
                                                  new §§ 929.157 and 929.162. The                         were rejected.                                        Massachusetts, Rhode Island,
                                                  authority for this action is provided for                  This proposal would establish six                  Connecticut, New Jersey, Wisconsin,
                                                  in §§ 929.54, 929.56, 929.57, and 929.62.               new reporting requirements and six new                Michigan, Minnesota, Oregon,
                                                     These actions could result in some                   Committee forms. Therefore, this                      Washington, and Long Island in the
                                                  additional costs to the industry.                       proposed rule would impose an increase                State of New York; Marketing Order No.
                                                  Specifically, handlers would incur some                 in the reporting burden for all handlers,             929.
                                                  additional costs as a result of inspector               which is discussed in the Paperwork                      OMB Number: 0581—NEW.
                                                  verification and certification of the                   Reduction Act section of this document.                  Type of Request: New collection.
                                                  diversion process. In addition, requiring                  As with all Federal marketing order                   Abstract: The information
                                                  reports of cranberries acquired, handled,               programs, reports and forms are                       requirements in this request are
                                                  and withheld would impose an increase                   periodically reviewed to reduce                       essential to carry out the intent of the
                                                  in the reporting burden on all cranberry                information requirements and                          Act to provide the respondents the type
                                                  handlers. However, the benefits are                     duplication by industry and public                    of service they request, and to
                                                  expected to outweigh the costs and                      sector agencies. USDA has not                         administer the Cranberry Marketing
                                                  increase in reporting burden. The                       identified any relevant Federal rules                 Order Program. USDA is responsible for
                                                  provisions considered in this action                    that duplicate, overlap, or conflict with             overseeing the Order regulating the
                                                  would help facilitate the                               this rule.                                            handling of cranberries grown in the
                                                  implementation of any recommended                          AMS is committed to complying with                 states of Massachusetts, Rhode Island,
                                                  handler withholding volume regulation                   the E-Government Act, to promote the                  Connecticut, New Jersey, Wisconsin,
                                                  and help ensure compliance with the                     use of the internet and other                         Michigan, Minnesota, Oregon,
                                                  recommended regulation. Consequently,                   information technologies to provide                   Washington, and Long Island in the
                                                  these changes would help provide                        increased opportunities for citizen                   State of New York. The Order is
                                                  important guidance during times when                    access to Government information and                  effective under the Act.
                                                  market conditions would support the                     services, and for other purposes.                        On September 15, 2017, the
                                                  need for establishing volume regulation.                   Further, the Committee’s meetings                  Committee unanimously recommended
                                                     The impact of this rule would be                     were widely publicized throughout the                 that cranberry handlers subject to the
                                                  beneficial to growers and handlers.                     cranberry industry, and all interested                Order provide the Committee with a
                                                  Establishing diversion procedures                       persons were invited to attend the                    report indicating the anticipated total
                                                  would benefit the entire industry by                    meetings and participate in Committee                 quantity of cranberries acquired by the
                                                  ensuring handler diversion is conducted                 deliberations on all issues. Additionally,            handler, the amount withheld from
                                                  consistently and accurately by all                      the Committee’s meetings held August                  handling, and the disposition of such
                                                  handlers, which would also help ensure                  31, September 15, and October 13, 2017,               withheld cranberries during the crop
                                                  compliance with the handler                             were public meetings, and all entities,               year. This form, titled ‘‘Handler
                                                  withholding program. Authorizing                        both large and small, were able to                    Withholding Report (CMC–JUN),’’
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                                                  various diversion outlets means                         express views on this issue. Finally,                 would be submitted directly to the
                                                  handlers would not be required to divert                interested persons are invited to submit              Committee by handlers by June 1 in
                                                  cranberries only through destruction.                   comments on this proposed rule,                       crop years when a handler withholding
                                                  Instead, fruit could be utilized in                     including the regulatory and                          regulation has been established. This
                                                  noncompetitive outlets, such as for                     information collection impacts of this                report would give the Committee
                                                  charitable purposes. The benefits of this               action on small businesses.                           background data on how each handler
                                                  rule are expected to be equally available                  A small business guide on complying                plans to meet the requirements of the
                                                  to all cranberry growers and handlers,                  with fruit, vegetable, and specialty crop             handler withholding volume regulation.


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                                                  6804                  Federal Register / Vol. 83, No. 32 / Thursday, February 15, 2018 / Proposed Rules

                                                    The Committee also recommended                        charities. This report contains                         Estimated Total Annual Burden on
                                                  that cranberry handlers submit a final                  information on the type, form, and                    Respondents: 0.8 hours.
                                                  year-end report indicating the actual                   volume of withheld fruit received. This
                                                                                                                                                                Handler Disposal Certification (CMC–
                                                  total quantity of cranberries acquired by               reporting requirement would help track
                                                                                                                                                                DISP)
                                                  the handler, the amount withheld from                   the disposition of withheld cranberries
                                                  handling, and the disposition of such                   and facilitate compliance with the                       Estimate of Burden: Public reporting
                                                  withheld cranberries during the crop                    recommended handler withholding                       burden for this collection of information
                                                  year. This form, titled ‘‘Final Handler                 requirements.                                         is estimated to be an average of 0.17
                                                  Withholding Report (CMC–AUG),’’                            The Committee also recommended                     hours per response.
                                                  would be submitted directly to the                      establishing a form for handlers to use                  Respondents: Handlers of cranberries
                                                  Committee by handlers by August 31.                     to appeal any denial of a request made                grown in the states of Massachusetts,
                                                  This report would give the Committee                    for disposing of cranberries in a                     Rhode Island, Connecticut, New Jersey,
                                                  actual data on how each handler met the                 noncompetitive outlet. This form, titled              Wisconsin, Michigan, Minnesota,
                                                  requirements of the handler                             ‘‘Handler Withholding Appeal (CMC–                    Oregon, Washington, and Long Island in
                                                  withholding volume regulation.                          APPL),’’ would need to be submitted by                the State of New York.
                                                    The Committee also recommended                        the handler making the appeal within                     Estimated Number of Respondents:
                                                  that handlers subject to the Order                      30 days of the denial. This form would                10.
                                                  submit a report certifying whenever a                   include information about why the                        Estimated Number of Responses per
                                                  disposal of withheld cranberries is to be               handler is making the appeal and would                Respondent: 12.
                                                  made. This report would contain                         provide additional information to                        Estimated Total Annual Burden on
                                                  information regarding the volume, the                   support the appeal.                                   Respondents: 20.4 hours.
                                                  form of disposed cranberries, and                          The Order authorizes the Committee                 Handler Application for Outlets for
                                                  information on the container type. This                 to collect certain information as                     Withheld Fruit (CMC–OUT)
                                                  form, titled ‘‘Handler Disposal                         required. The information collected
                                                  Certification (CMC–DISP),’’ would be                                                                             Estimate of Burden: Public reporting
                                                                                                          would only be used by authorized
                                                  submitted directly to the Committee by                                                                        burden for this collection of information
                                                                                                          representatives of the USDA, including
                                                  handlers preceding each disposal                                                                              is estimated to be an average of 0.08
                                                                                                          the AMS Specialty Crops Program
                                                  activity. This information collection                                                                         hours per response.
                                                                                                          regional and headquarters staff, and
                                                  would provide the Committee with data                                                                            Respondents: Handlers of cranberries
                                                                                                          authorized employees of the Committee.
                                                  regarding the amount of cranberries                                                                           grown in the states of Massachusetts,
                                                                                                          All proprietary information would be
                                                  diverted and the information needed to                                                                        Rhode Island, Connecticut, New Jersey,
                                                                                                          kept confidential in accordance with the
                                                  help track handler compliance with the                                                                        Wisconsin, Michigan, Minnesota,
                                                                                                          Act and the Order.
                                                  recommended handler withholding                                                                               Oregon, Washington, and Long Island in
                                                                                                             The Committee developed these forms
                                                  requirements.                                                                                                 the State of New York.
                                                    The Committee also recommended                        to effectively carry out a handler
                                                                                                                                                                   Estimated Number of Respondents:
                                                  that handlers provide the Committee                     withholding volume regulation for the
                                                                                                                                                                10.
                                                  with a record of withheld cranberries                   2017–18 crop year and for future years                   Estimated Number of Responses per
                                                  disposed of in non-commercial outlets.                  when a handler withholding regulation                 Respondent: 12.
                                                  This form, titled ‘‘Handler Application                 has been established. The purpose of                     Estimated Total Annual Burden on
                                                  for Outlets for Withheld Fruit (CMC–                    these forms would be to ensure                        Respondents: 9.6 hours.
                                                  OUT),’’ would be submitted directly to                  compliance with the recommended
                                                  the Committee by handlers to provide                    handler withholding requirement.                      Third-Party Confirmation of Receipt of
                                                  information regarding the type, form,                      Upon OMB approval of the new forms                 Withheld Fruit (CMC–CONF)
                                                  and volume of cranberries disposed of                   and the information collection package,                  Estimate of Burden: Public reporting
                                                  in noncompetitive outlets. Handlers                     AMS will request OMB approval to                      burden for this collection of information
                                                  would submit this form prior to each                    merge the new forms and this                          is estimated to be an average of 0.05
                                                  disposal activity of this type to provide               information collection in the currently               hours per response.
                                                  the Committee with the opportunity to                   approved information collection OMB                      Respondents: Handlers of cranberries
                                                  review and approve the requested                        control number 0581–0189, Fruit Crops.                grown in the states of Massachusetts,
                                                  outlet. This information collection                        The proposed request for new                       Rhode Island, Connecticut, New Jersey,
                                                  would provide the Committee with                        information collection under the Order                Wisconsin, Michigan, Minnesota,
                                                  information on the noncompetitive                       is as follows:                                        Oregon, Washington, and Long Island in
                                                  outlets used to meet the requirements                   Handler Withholding Report (CMC–                      the State of New York.
                                                  for withheld cranberries and would be                   JUN)                                                     Estimated Number of Respondents:
                                                  necessary for the Committee to track                                                                          10.
                                                  compliance with an established handler                     Estimate of Burden: Public reporting                  Estimated Number of Responses per
                                                  withholding requirement.                                burden for this collection of information             Respondent: 12.
                                                    The Committee also recommended                        is estimated to be an average of 0.08                    Estimated Total Annual Burden on
                                                  that handlers submit a report confirming                hours per response.                                   Respondents: 6 hours.
                                                  the third-party receipt of withheld fruit.                 Respondents: Handlers of cranberries
                                                  This form, titled ‘‘Third-Party                         grown in the states of Massachusetts,                 Handler Withholding Appeal (CMC–
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                                                  Confirmation of Receipt of Withheld                     Rhode Island, Connecticut, New Jersey,                APPL)
                                                  Fruit (CMC–CONF),’’ would include                       Wisconsin, Michigan, Minnesota,                          Estimate of Burden: Public reporting
                                                  certification by outlets receiving                      Oregon, Washington, and Long Island in                burden for this collection of information
                                                  withheld cranberries for use in a                       the State of New York.                                is estimated to be an average of 0.08
                                                  noncompetitive outlet. This form would                     Estimated Number of Respondents:                   hours per response.
                                                  need to be submitted after each                         10.                                                      Respondents: Handlers of cranberries
                                                  shipment of withheld fruit received by                     Estimated Number of Responses per                  grown in the states of Massachusetts,
                                                  noncompetitive outlets, such as                         Respondent: 1.                                        Rhode Island, Connecticut, New Jersey,


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                                                                        Federal Register / Vol. 83, No. 32 / Thursday, February 15, 2018 / Proposed Rules                                           6805

                                                  Wisconsin, Michigan, Minnesota,                         List of Subjects in 7 CFR Part 929                    information needed to support the
                                                  Oregon, Washington, and Long Island in                    Cranberries, Marketing agreements,                  disposal as reported. Once the
                                                  the State of New York.                                  Reporting and recordkeeping                           verification process has been completed,
                                                    Estimated Number of Respondents: 5.                   requirements.                                         the Committee inspector will sign the
                                                    Estimated Number of Responses per                                                                           certification section of Form CMC–DISP
                                                  Respondent: 2.                                            For the reasons set forth in the                    and return it to the Committee.
                                                    Estimated Total Annual Burden on                      preamble, 7 CFR part 929 is proposed to                  (2) Diversion through noncompetitive
                                                  Respondents: 0.8 hours.                                 be amended as follows:                                outlets. To divert cranberries or
                                                                                                                                                                cranberry products to a noncompetitive
                                                  Final Handler Withholding Report                        PART 929—CRANBERRIES GROWN IN
                                                                                                                                                                outlet, handlers must apply to the
                                                  (CMC–AUG)                                               STATES OF MASSACHUSETTS,
                                                                                                                                                                Committee using Form CMC–OUT as
                                                     Estimate of Burden: Public reporting                 RHODE ISLAND, CONNECTICUT, NEW
                                                                                                                                                                specified in § 929.162(d) prior to each
                                                  burden for this collection of information               JERSEY, WISCONSIN, MICHIGAN,
                                                                                                                                                                disposal activity of this type. The
                                                  is estimated to be an average of 0.08                   MINNESOTA, OREGON,
                                                                                                                                                                Committee will review the information
                                                  hours per response.                                     WASHINGTON, AND LONG ISLAND IN
                                                                                                                                                                and approve or disapprove the diversion
                                                     Respondents: Handlers of cranberries                 THE STATE OF NEW YORK
                                                                                                                                                                request. Once the cranberries or
                                                  grown in the states of Massachusetts,                                                                         cranberry products are delivered to the
                                                                                                          ■ 1. The authority citation for 7 CFR
                                                  Rhode Island, Connecticut, New Jersey,                                                                        approved noncompetitive outlets, the
                                                                                                          part 929 continues to read as follows:
                                                  Wisconsin, Michigan, Minnesota,                                                                               Committee must receive satisfactory
                                                  Oregon, Washington, and Long Island in                      Authority: 7 U.S.C. 601–674.                      documentation of the transaction using
                                                  the State of New York.                                                                                        Form CMC–CONF as specified in
                                                     Estimated Number of Respondents:                     [Subpart Redesignated as Subpart A]
                                                                                                                                                                § 929.162(e).
                                                  10.                                                     ■ 2. Redesignate ‘‘Subpart—Order                         (b) Committee notification and
                                                     Estimated Number of Responses per                    Regulating Handling’’ as ‘‘Subpart A—                 handler plan. Any handler intending to
                                                  Respondent: 1.                                          Order Regulating Handling’’.                          divert cranberries or cranberry products
                                                     Estimated Total Annual Burden on                                                                           pursuant to § 929.54 must notify the
                                                  Respondents: 0.8 hours.                                 [Subpart Redesignated as Subpart B                    Committee of such intent and provide a
                                                     Comments are invited on: (1) Whether                 and Amended]                                          plan by June 1 that shows how the
                                                  the proposed collection of information                                                                        handler intends to meet the restricted
                                                  is necessary for the proper performance                 ■ 3. Redesignate ‘‘Subpart—
                                                                                                                                                                percentage obligation. The handler shall
                                                  of the functions of the Agency,                         Administrative Rules and Regulations’’
                                                                                                                                                                submit this plan using Form CMC–JUNE
                                                  including whether the information will                  as subpart B and revise the heading to                as specified in the reporting
                                                  have practical utility; (2) the accuracy of             read as follows:                                      requirements under § 929.162(a). The
                                                  the Agency’s estimate of the burden of                                                                        handler will have until August 31 to
                                                                                                          Subpart B—Administrative
                                                  the proposed collection of information,                                                                       fulfill the plan, by which time the
                                                                                                          Requirements
                                                  including the validity of the                                                                                 handler shall submit a final report
                                                  methodology and assumptions used; (3)                   ■   4. Add § 929.157 to read as follows:              detailing how the restricted percentage
                                                  ways to enhance the quality, utility, and                                                                     obligation was met using Form CMC–
                                                  clarity of the information to be                        § 929.157    Handler diversion.
                                                                                                                                                                AUG as specified in § 929.162(b).
                                                  collected; and (4) ways to minimize the                   (a) Methods of diversion. Handlers                     (c) Request for review. (1) If a handler
                                                  burden of the collection of information                 may divert cranberries by disposing of                is dissatisfied with a determination
                                                  on those who are to respond, including                  cranberries or cranberry products.                    made by the Committee which affects
                                                  the use of appropriate automated,                       Diversion by disposal may take place                  such handler, the handler may submit to
                                                  electronic, mechanical, or other                        prior to placing the cranberries into the             the Committee within 30 days after
                                                  technological collection techniques or                  processing line or after processing.                  receipt of the Committee’s
                                                  other forms of information technology.                  Handlers may also divert cranberries or               determination, a request for a review by
                                                     Comments should reference OMB No.                    cranberry products to approved,                       an appeals subcommittee composed of
                                                  0581—NEW and the Marketing Order                        noncompetitive outlets for withheld                   two independent growers and two
                                                  for Cranberries Grown in States of                      fruit. Whole berries or processed                     cooperative representatives, as well as a
                                                  Massachusetts, Rhode Island,                            products diverted must come from the                  public member. The appeals
                                                  Connecticut, New Jersey, Wisconsin,                     current crop year. Any information                    subcommittee shall be appointed by the
                                                  Michigan, Minnesota, Oregon,                            collected of a confidential and/or                    Committee chairperson. The handler
                                                  Washington, and Long Island in the                      proprietary nature would be held in                   may forward with the request any
                                                  State of New York, and should be sent                   confidence pursuant to § 929.65.                      pertinent materials for consideration of
                                                  to the USDA in care of the Docket Clerk                   (1) Diversion through disposal. This                the appeal.
                                                  at the previously mentioned address or                  type of diversion is to be carried out                   (2) The subcommittee shall review the
                                                  at http://www.regulations.gov.                          under the supervision of the Committee,               information submitted by the handler
                                                     All responses to this notice will be                 and the cost of such supervision is to be             and render a decision within 30 days of
                                                  summarized and included in the request                  paid by the handler. Handlers shall                   receipt of such appeal. The
                                                  for OMB approval. All comments                          notify the Committee of their intent to               subcommittee shall notify the handler of
                                                  received will become a matter of public                 dispose of cranberries or cranberry                   its decision, accompanied by the
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                                                  record and will be available for public                 products using Form CMC–DISP as                       reasons for its conclusions and findings.
                                                  inspection during regular business                      specified in § 929.162(c). Following                     (3) The handler may further appeal to
                                                  hours at the address of the Docket Clerk                notification, a Committee inspector will              the Secretary, within 15 days after
                                                  or at http://www.regulations.gov.                       meet with the handler to verify the                   notification of the subcommittee’s
                                                     If this proposed rule is finalized, this             documentation provided and, when                      findings, if such handler is not satisfied
                                                  information collection will be merged                   possible, witness the destruction. The                with the appeals subcommittee’s
                                                  with the forms currently approved                       Committee inspector may request                       decision. The Committee shall forward
                                                  under OMB No. 0581–0189, Fruit Crops.                   receipts, visual proof, or any other                  a file to the Secretary with all pertinent


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                                                  6806                  Federal Register / Vol. 83, No. 32 / Thursday, February 15, 2018 / Proposed Rules

                                                  information related to the handler’s                      (2) Project type;                                   review of existing regulations, with the
                                                  appeal. The Secretary shall inform the                    (3) Product form;                                   goal of reducing regulatory burden for
                                                  handler and all interested parties of the                 (4) Quantity of cranberries in whole                taxpayers by revoking or revising
                                                  Secretary’s decision. All decisions by                  fruit or processed cranberries converted              existing tax regulations that meet the
                                                  the Secretary are final.                                to whole fruit equivalent diverted;                   criteria set forth in the executive orders.
                                                  ■ 5. Add § 929.162 to read as follows:                    (5) A description of the project and                This notice of proposed rulemaking
                                                                                                          how the cranberries will be used.                     proposes to streamline IRS regulations
                                                  § 929.162   Handler diversion reports.                                                                        by removing 298 regulations that are no
                                                                                                            (e) Third-party confirmation of receipt
                                                    (a) Handler withholding report.                       of withheld fruit. Handlers shall submit              longer necessary because they do not
                                                  Handlers shall submit to the Committee,                 to the Committee Form CMC–CONF for                    have any current or future applicability
                                                  by June 1, a handler withholding report.                each diversion to a noncompetitive                    under the Internal Revenue Code (Code)
                                                  The report shall be submitted using                     outlet to verify the receipt of the                   and by amending 79 regulations to
                                                  Form CMC–JUN and contain the                            cranberries or cranberry product by the               reflect the proposed removal of the 298
                                                  following information:                                  approved outlet. The form shall contain               regulations. The proposed removal and
                                                    (1) The name and address of the                       the following information:                            amendment of these regulations may
                                                  handler;                                                  (1) Name and address of the handler;                affect various categories of taxpayers.
                                                    (2) The amount of cranberries                           (2) Project type;                                   DATES: Written or electronic comments
                                                  acquired;                                                 (3) Product form;                                   and requests for a public hearing must
                                                    (3) The amount of cranberries                           (4) Quantity of cranberries in whole                be received by May 14, 2018.
                                                  withheld by disposal;                                   fruit or processed cranberries converted              ADDRESSES: Send submissions to:
                                                    (4) The amount of cranberries                         to whole fruit equivalent utilized; and               CC:PA:LPD:PR (REG–132197–17), Room
                                                  diverted to noncompetitive outlets;                       (5) Confirmation or documentation of
                                                    (5) The form of cranberry products                                                                          5203, Internal Revenue Service, P.O.
                                                                                                          receipt from the receiving outlet.                    Box 7604, Ben Franklin Station,
                                                  withheld; and                                             (f) Handler withholding appeal.
                                                    (6) The total withholding obligation.                                                                       Washington, DC 20044. Submissions
                                                                                                          Handlers may appeal a determination                   may be hand-delivered between the
                                                    (b) Handler Withholding Final Report.
                                                                                                          made by the Committee relating to a                   hours of 8 a.m. and 4 p.m. to
                                                  Handlers shall submit to the Committee,
                                                                                                          handler withholding regulation using                  CC:PA:LPD:PR (REG–132197–17),
                                                  by August 31, a final handler
                                                                                                          the appeals process outlined in                       Courier’s Desk, Internal Revenue
                                                  withholding report. The final report
                                                                                                          § 929.157(c) and Form CMC–APPL,                       Service, 1111 Constitution Avenue NW,
                                                  shall be submitted using Form CMC–
                                                                                                          which shall contain the following                     Washington, DC, or sent via the Federal
                                                  AUG and contain the following
                                                                                                          information:                                          eRulemaking Portal at
                                                  information:
                                                                                                            (1) Name and address of the handler;                www.regulations.gov (REG–132197–17).
                                                    (1) The name and address of the
                                                                                                            (2) Reason for appeal; and                          FOR FURTHER INFORMATION CONTACT:
                                                  handler;
                                                                                                            (3) Information in support of appeal.               Concerning the proposed regulations
                                                    (2) The seasonal total of cranberries
                                                  acquired;                                                                                                     Mark A. Bond of the Office of Associate
                                                                                                          [Subpart Redesignated as Subpart C]
                                                    (3) The seasonal total of cranberries                                                                       Chief Counsel (Procedure and
                                                  withheld by disposal;                                   ■ 6. Redesignate ‘‘Subpart—Assessment                 Administration), (202) 317–6844;
                                                    (4) The seasonal total of cranberries                 Rate’’ as ‘‘Subpart C—Assessment Rate’’.              concerning the submission of comments
                                                  diverted to noncompetitive outlets;                       Dated: February 2, 2018.
                                                                                                                                                                and a request for a public hearing,
                                                    (5) The form of cranberry products                                                                          Regina Johnson, (202) 317–6901 (not
                                                                                                          Bruce Summers,
                                                  withheld during the season; and                                                                               toll-free numbers).
                                                                                                          Acting Administrator, Agricultural Marketing
                                                    (6) The total withholding obligation.                 Service.                                              SUPPLEMENTARY INFORMATION:
                                                    (c) Handler disposal certification.
                                                                                                          [FR Doc. 2018–02441 Filed 2–14–18; 8:45 am]           Background
                                                  Handlers shall submit to the Committee
                                                  Form CMC–DISP for each lot of                           BILLING CODE 3410–02–P                                   On February 24, 2017, the President
                                                  cranberries or cranberry products to be                                                                       issued Executive Order 13777,
                                                  diverted through disposal. The form                                                                           Enforcing the Regulatory Reform
                                                  shall contain the following information:                DEPARTMENT OF THE TREASURY                            Agenda (82 FR 12285). E.O. 13777
                                                    (1) Name and address of the handler;                                                                        directed each agency to establish a
                                                    (2) Marketable cranberries in whole                   Internal Revenue Service                              Regulatory Reform Task Force. Each
                                                  fruit or processed cranberries converted                                                                      Regulatory Reform Task Force was
                                                  to whole fruit equivalent disposed of in                26 CFR Parts 1, 5, 5c, 5f, 7, 11, 13, 16,             directed to review existing regulations
                                                  this lot;                                               19, 20, 25, 31, 48, 49, 54, 55, 148, 301,             for regulations that: (i) Eliminate jobs, or
                                                    (3) Form of cranberries;                              404, 601, and 602                                     inhibit job creation; (ii) are outdated,
                                                    (4) Volume if in processed form;                      [REG–132197–17]                                       unnecessary, or ineffective; (iii) impose
                                                    (5) Lot details;                                                                                            costs that exceed benefits; (iv) create a
                                                    (6) Disposal site and method; and                     RIN 1545–BO17                                         serious inconsistency or otherwise
                                                    (7) Inspector certification of the                                                                          interfere with regulatory reform
                                                                                                          Eliminating Unnecessary Tax
                                                  completion of the disposal.                                                                                   initiatives and policies; (v) are
                                                                                                          Regulations
                                                    (d) Handler application for outlets for                                                                     inconsistent with the requirements of
sradovich on DSK3GMQ082PROD with PROPOSALS




                                                  withheld fruit. Handlers shall submit to                AGENCY: Internal Revenue Service (IRS),               the Information Quality Act (section 515
                                                  the Committee Form CMC–OUT for                          Treasury.                                             of the Treasury and General
                                                  approval for each lot of cranberries or                 ACTION: Notice of proposed rulemaking.                Government Appropriations Act of
                                                  cranberry products to be diverted to                                                                          2001) or OMB Information Quality
                                                  noncompetitive outlets in accordance                    SUMMARY:  Pursuant to the policies stated             Guidance issued pursuant to that
                                                  with § 929.57. The form shall contain                   in Executive Orders 13777 and 13789                   provision; or (vi) derive from or
                                                  the following information:                              (the executive orders), the Treasury                  implement Executive Orders or other
                                                    (1) Name and address of the handler;                  Department and the IRS conducted a                    Presidential directives that have been


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Document Created: 2018-02-15 00:20:51
Document Modified: 2018-02-15 00:20:51
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 April 16, 2018. Pursuant to the Paperwork Reduction Act, comments on the information collection burden must be received by April 16, 2018.
ContactDoris Jamieson, Marketing Specialist, or Christian D. Nissen, Regional Director, Southeast Marketing Field Office, Marketing Order and Agreement Division, Specialty Crops Program, AMS, USDA; Telephone: (863) 324-3375, Fax: (863) 291-8614, or Email: [email protected] or [email protected]
FR Citation83 FR 6800 
CFR AssociatedCranberries; Marketing Agreements and Reporting and Recordkeeping Requirements

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