83_FR_8843 83 FR 8802 - Grapes Grown in a Designated Area of Southeastern California; Decreased Assessment Rate

83 FR 8802 - Grapes Grown in a Designated Area of Southeastern California; Decreased Assessment Rate

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 83, Issue 41 (March 1, 2018)

Page Range8802-8804
FR Document2018-04010

This proposed rule would implement a recommendation from the California Desert Grape Administrative Committee (Committee) to decrease the assessment rate established for the 2018 fiscal period and subsequent fiscal periods. This proposed rule also makes administrative revisions to the subpart headings to bring the language into conformance with the Office of Federal Register requirements.

Federal Register, Volume 83 Issue 41 (Thursday, March 1, 2018)
[Federal Register Volume 83, Number 41 (Thursday, March 1, 2018)]
[Proposed Rules]
[Pages 8802-8804]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-04010]


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

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

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


Federal Register / Vol. 83, No. 41 / Thursday, March 1, 2018 / 
Proposed Rules

[[Page 8802]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 925

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


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

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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

SUMMARY: This proposed rule would implement a recommendation from the 
California Desert Grape Administrative Committee (Committee) to 
decrease the assessment rate established for the 2018 fiscal period and 
subsequent fiscal periods. This proposed rule also makes administrative 
revisions to the subpart headings to bring the language into 
conformance with the Office of Federal Register requirements.

DATES: Comments must be received by April 2, 2018.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposed rule. Comments must be sent to the Docket 
Clerk, Marketing Order and Agreement Division, Specialty Crops Program, 
AMS, USDA, 1400 Independence Avenue SW, STOP 0237, Washington, DC 
20250-0237; Fax: (202) 720-8938; or internet: http://www.regulations.gov. Comments should reference the document number and 
the date and page number of this issue of the Federal Register and will 
be available for public inspection in the Office of the Docket Clerk 
during regular business hours, or can be viewed at: http://www.regulations.gov. All comments submitted in response to this 
proposed rule will be included in the record and will be made available 
to the public. Please be advised that the identity of the individuals 
or entities submitting the comments will be made public on the internet 
at the address provided above.

FOR FURTHER INFORMATION CONTACT: Maria Stobbe, Marketing Specialist or 
Jeffrey Smutny, Regional Director, California Marketing Field Office, 
Marketing Order and Agreement Division, Specialty Crops Program, AMS, 
USDA; Telephone: (559) 487-5901, Fax: (559) 487-5906, or Email: 
[email protected] or [email protected].
    Small businesses may request information on complying with this 
regulation by contacting Richard Lower, Marketing Order and Agreement 
Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue 
SW, STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-2491, 
Fax: (202) 720-8938, or Email: [email protected].

SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553, 
proposes an amendment to regulations issued to carry out a marketing 
order as defined in 7 CFR 900.2(j). This proposed rule is issued under 
Marketing Agreement No. 925 and Order No. 925, as amended (7 CFR part 
925), regulating the handling of grapes grown in a designated area of 
southeastern California. Part 925 (referred to as the ``Order'') is 
effective under the Agricultural Marketing Agreement Act of 1937, as 
amended (7 U.S.C. 601-674), hereinafter referred to as the ``Act.'' The 
Committee locally administers the Order and is comprised of producers 
and handlers of grapes operating within the area of production, and a 
member of the public.
    The Department of Agriculture (USDA) is issuing this rule in 
conformance with Executive Orders 13563 and 13175. This action falls 
within a category of regulatory actions that the Office of Management 
and Budget (OMB) exempted from Executive Order 12866 review. 
Additionally, because this rule does not meet the definition of a 
significant regulatory action, it does not trigger the requirements 
contained in Executive Order 13771. See OMB's Memorandum titled 
``Interim Guidance Implementing Section 2 of the Executive Order of 
January 30, 2017, titled `Reducing Regulation and Controlling 
Regulatory Costs'[thinsp]'' (February 2, 2017).
    This proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. Under the Order now in effect, grape handlers in 
a designated area of southeastern California are subject to 
assessments. Funds to administer the Order are derived from such 
assessments. Assessment fees charged to grape handlers are used by the 
Committee to fund reasonable and necessary expenses of the program. It 
is intended that the assessment rate as proposed herein would be 
applicable to all assessable grapes beginning on January 1, 2018, and 
continue until amended, suspended, or terminated.
    The Act provides that administrative proceedings must be exhausted 
before parties may file suit in court. Under section 608c(15)(A) of the 
Act, any handler subject to an order may file with USDA a petition 
stating that the order, any provision of the order, or any obligation 
imposed in connection with the order is not in accordance with law and 
request a modification of the order or to be exempted therefrom. Such 
handler is afforded the opportunity for a hearing on the petition. 
After the hearing, USDA would rule on the petition. The Act provides 
that the district court of the United States in any district in which 
the handler is an inhabitant, or has his or her principal place of 
business, has jurisdiction to review USDA's ruling on the petition, 
provided an action is filed not later than 20 days after the date of 
the entry of the ruling.
    This proposed rule would decrease the assessment rate for the 2018 
and subsequent fiscal periods from $0.030 to $0.020 per 18-pound lug of 
grapes handled.
    The Order provides authority for the Committee, with the approval 
of USDA, to formulate an annual budget of expenses and collect 
assessments from handlers to administer the program. The members of the 
Committee are producers and handlers of grapes grown in a designated 
area of southeastern California, and a member of the public. They are 
familiar with the Committee's needs and with the costs for goods and 
services in their local area and are thus in a position to formulate an 
appropriate budget and assessment rate. The assessment rate is 
formulated and discussed in a public meeting. Thus, all directly 
affected persons have an opportunity to participate and provide input.
    For the 2016 and subsequent fiscal periods the Committee 
recommended, and USDA approved, an assessment rate

[[Page 8803]]

of $0.030 per 18-pound lug of grapes. That rate would continue in 
effect unless modified, suspended, or terminated by USDA upon 
recommendation and information submitted by the Committee or other 
information available to USDA.
    The Committee met on November 30, 2017 and unanimously recommended 
2018 fiscal year expenditures of $119,000, with an estimated cash 
reserve of $115,000, and an assessment rate of $0.020 per 18-pound lug 
of grapes. In comparison, last fiscal year's budgeted expenditures were 
$108,500. The assessment rate of $.020 is $0.010 lower than the rate 
currently in effect. The 2017 crop, at the higher assessment rate 
currently in effect, provided more income than required to cover 
expenses, resulting in an estimated cash reserve of $140,000. The cash 
reserves are sufficient to supplement this fiscal year's revenues at an 
assessment rate of $0.020 per 18-pound lug of grapes to fully fund the 
recommended 2018 budgeted expenditures.
    The major expenditures recommended by the Committee for the 2018 
fiscal year include $65,000 for management and compliance services, 
$25,500 in office expenditures, and $28,500 for research. Budgeted 
expenses for these items in fiscal year 2017 were $50,000 for 
management and compliance services, $28,330 in office expenditures, and 
$28,500 for research.
    The assessment rate recommended by the Committee was derived by 
considering anticipated expenses, expected shipments of grapes in the 
production area, and the level of funds in the authorized reserve. 
Grape shipments for fiscal year 2018 are estimated at 4,700,000 18-
pound lugs, which should provide $94,000 in assessment income. Income 
derived from handler assessments, along with interest income and funds 
from the Committee's authorized reserve, would be adequate to cover 
budgeted expenses. Funds in the reserve (currently $140,000) would be 
reduced by $25,000 and would be within the maximum permitted by the 
Order. Section 925.42(a)(2) authorizes the Committee to carry over 
excess funds into subsequent fiscal years provided that funds in the 
reserve not exceed approximately one fiscal period's expenses. The 
Committee may utilize the reserve funds to defray expenses during any 
fiscal period. The Committee proposes to utilize approximately $25,000 
of its carry-over reserve funds to fully fund the fiscal year 2018 
proposed budget, while assessing the new fiscal year 2018 crop at the 
proposed lower rate; thereby maintaining the carry-over reserve fund 
within the authorized limit allowed by the Order.
    The proposed assessment rate would continue in effect indefinitely 
unless modified, suspended, or terminated by USDA upon recommendation 
and information submitted by the Committee or other available 
information.
    Although this assessment rate would be in effect for an indefinite 
period, the Committee would continue to meet prior to or during each 
fiscal period to recommend a budget of expenses and consider 
recommendations for modification of the assessment rate. The dates and 
times of Committee meetings are available from the Committee or USDA. 
Committee meetings are open to the public and interested persons may 
express their views at these meetings. USDA would evaluate Committee 
recommendations and other available information to determine whether 
modification of the assessment rate is needed. Further rulemaking would 
be undertaken as necessary. The Committee's budget for fiscal year 2018 
and those for subsequent fiscal periods would be reviewed and, as 
appropriate, approved by USDA.

Initial Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS) 
has considered the economic impact of this proposed rule on small 
entities. Accordingly, AMS has prepared this initial regulatory 
flexibility analysis.
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened. Marketing orders issued 
pursuant to the Act, and the rules issued thereunder, are unique in 
that they are brought about through group action of essentially small 
entities acting on their own behalf.
    There are approximately 38 producers of grapes in the production 
area and approximately 14 handlers subject to regulation under the 
Order. Small agricultural producers are defined by the Small Business 
Administration (SBA) as those having annual receipts less than 
$750,000, and small agricultural service firms are defined as those 
whose annual receipts are less than $7,500,000 (13 CFR 121.201).
    Eleven of the 14 handlers subject to the Order have annual grape 
sales of less than $7,500,000, according to USDA Market News Service 
and Committee data. In addition, information from the Committee and 
USDA's Market News indicates that at least ten of 38 producers have 
annual receipts of less than $750,000. Thus, it may be concluded that a 
majority of the grape handlers regulated under the Order and about ten 
of the producers could be classified as small entities under the SBA's 
definitions.
    This proposal would decrease the assessment rate collected from 
handlers for the 2018 and subsequent fiscal periods from $0.030 to 
$0.020 per 18-pound lug of grapes. The Committee unanimously 
recommended fiscal year 2018 expenditures of $119,000 and an assessment 
rate of $0.020 per 18-pound lug. The proposed assessment rate of $0.020 
is $0.010 lower than the 2017 rate. The quantity of assessable 
commodity for the 2018 fiscal year is estimated at 4,700,000 18-pound 
lugs. Thus, the $0.020 rate should provide $94,000 in assessment 
income. That amount plus the use of reserve funds of $25,000 should be 
adequate to meet this 2018 fiscal year's expenses. Income derived from 
handler assessments, along with interest income and funds from the 
Committee's authorized reserve, would be adequate to cover budgeted 
expenses.
    The major expenditures recommended by the Committee for the 2018 
fiscal year include $65,000 for management and compliance services, 
$25,500 in office expenditures, and $28,500 for research. Budgeted 
expenses for these items in 2017 were $50,000 for management and 
compliance services, $28,330 in office expenditures, and $28,500 for 
research.
    Funds in the reserve (currently $140,000) would be reduced by 
$25,000 to be within the maximum permitted by the Order. Section 925.42 
provides the Committee authority to carry over excess funds into 
subsequent fiscal years provided that funds in the reserve do not 
exceed approximately one fiscal period's expenses. The Committee is 
authorized to utilize the excess funds to defray expenses during any 
fiscal period. The Committee proposes to utilize approximately $25,000 
of its carry-over reserve funds to fully fund the 2018 proposed budget, 
while assessing the new 2018 crop at the proposed lower rate; thereby 
maintaining the carry-over reserve fund within the authorized limit 
stated in the Order, approximately one fiscal period's expenses.
    Prior to arriving at this budget and assessment rate, the Committee 
considered various options, such as maintaining the current assessment 
rate and expenditure levels. Alternative expenditure levels were 
discussed by the Committee, based upon the relative value of various 
activities to the grape

[[Page 8804]]

industry. The Committee ultimately determined that 2018 expenditures of 
$119,000 were appropriate, and the recommended assessment rate and the 
use of $25,000 from the carry-over financial reserves would provide 
sufficient revenue to meet its expenses.
    A review of historical crop and price information, as well as 
preliminary information pertaining to the upcoming fiscal period, 
indicates that the shipping point price for the 2017 season averaged 
about $21.62 per 18-pound lug of California desert grapes handled. If 
the 2018 price is similar to the 2017 price, estimated assessment 
revenue as a percentage of total estimated handler revenue would be 
0.09 percent for the 2018 season ($0.020 divided by $21.62 per 18-pound 
lug).
    This action would decrease the assessment obligation imposed on 
handlers. Assessments are applied uniformly on all handlers, and some 
of the costs may be passed on to producers. However, decreasing the 
assessment rate would reduce the burden on handlers, and may reduce the 
burden on producers. In addition, the Committee's meeting was widely 
publicized throughout the production area. The grape industry and all 
interested persons were invited to attend the meeting and participate 
in Committee deliberations on all issues. Like all Committee meetings, 
the November 30, 2017, meeting was a public meeting and all entities, 
both large and small, were able to express views on this issue. 
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.
    In accordance with the Paperwork Reduction Act of 1995, (44 U.S.C. 
Chapter 35), the Order's information collection requirements have been 
previously approved by OMB and assigned OMB No. 0581-0189. No changes 
in those requirements are necessary as a result of this action. Should 
any changes become necessary, they would be submitted to OMB for 
approval.
    This proposed rule would impose no additional reporting or 
recordkeeping requirements on either small or large southeastern 
California grape handlers. As with all Federal marketing order 
programs, reports and forms are periodically reviewed to reduce 
information requirements and duplication by industry and public sector 
agencies.
    AMS is committed to complying with the E-Government Act, to promote 
the use of the internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services, and for other purposes.
    USDA has not identified any relevant Federal rules that duplicate, 
overlap, or conflict with this action.
    A small business guide on complying with fruit, vegetable, and 
specialty crop marketing agreements and orders may be viewed at: http://www.ams.usda.gov/rules-regulations/moa/small-businesses. Any questions 
about the compliance guide should be sent to Richard Lower at the 
previously-mentioned address in the FOR FURTHER INFORMATION CONTACT 
section.
    A 30-day comment period is provided to allow interested persons to 
respond to this proposed rule. All written comments timely received 
will be considered before a final determination is made on this rule.

List of Subjects in 7 CFR Part 925

    Grapes, Marketing agreements, Reporting and recordkeeping 
requirements.

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

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

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

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

0
2. Sections 925.1 through 925.69 are designated as subpart A under a 
heading to read as follows:

Subpart A--Order Regulating Handling [Subpart Redesignated as 
Subpart B and Amended]

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

Subpart B--Administrative Requirements [Subpart Redesignated as 
Subpart C]

0
4. Redesignate ``Subpart--Assessment Rates'' as ``Subpart C Assessment 
Rates''.
0
5. Section 925.215 is revised to read as follows:


Sec.  925.215   Assessment rate.

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

    Dated: February 22, 2018.
Bruce Summers,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2018-04010 Filed 2-28-18; 8:45 am]
 BILLING CODE 3410-02-P



                                               8802

                                               Proposed Rules                                                                                                Federal Register
                                                                                                                                                             Vol. 83, No. 41

                                                                                                                                                             Thursday, March 1, 2018



                                               This section of the FEDERAL REGISTER                    FOR FURTHER INFORMATION CONTACT:                      area of southeastern California are
                                               contains notices to the public of the proposed          Maria Stobbe, Marketing Specialist or                 subject to assessments. Funds to
                                               issuance of rules and regulations. The                  Jeffrey Smutny, Regional Director,                    administer the Order are derived from
                                               purpose of these notices is to give interested          California Marketing Field Office,                    such assessments. Assessment fees
                                               persons an opportunity to participate in the            Marketing Order and Agreement                         charged to grape handlers are used by
                                               rule making prior to the adoption of the final
                                               rules.
                                                                                                       Division, Specialty Crops Program,                    the Committee to fund reasonable and
                                                                                                       AMS, USDA; Telephone: (559) 487–                      necessary expenses of the program. It is
                                                                                                       5901, Fax: (559) 487–5906, or Email:                  intended that the assessment rate as
                                               DEPARTMENT OF AGRICULTURE                               Maria.Stobbe@ams.usda.gov or                          proposed herein would be applicable to
                                                                                                       Jeffrey.Smutny@ams.usda.gov.                          all assessable grapes beginning on
                                               Agricultural Marketing Service                             Small businesses may request                       January 1, 2018, and continue until
                                                                                                       information on complying with this                    amended, suspended, or terminated.
                                               7 CFR Part 925                                          regulation by contacting Richard Lower,                  The Act provides that administrative
                                                                                                       Marketing Order and Agreement                         proceedings must be exhausted before
                                               [Doc. No. AMS–SC–17–0082; SC18–925–1
                                               PR]                                                     Division, Specialty Crops Program,                    parties may file suit in court. Under
                                                                                                       AMS, USDA, 1400 Independence                          section 608c(15)(A) of the Act, any
                                               Grapes Grown in a Designated Area of                    Avenue SW, STOP 0237, Washington,                     handler subject to an order may file
                                               Southeastern California; Decreased                      DC 20250–0237; Telephone: (202) 720–                  with USDA a petition stating that the
                                               Assessment Rate                                         2491, Fax: (202) 720–8938, or Email:                  order, any provision of the order, or any
                                                                                                       Richard.Lower@ams.usda.gov.                           obligation imposed in connection with
                                               AGENCY:  Agricultural Marketing Service,                SUPPLEMENTARY INFORMATION: This                       the order is not in accordance with law
                                               USDA.                                                   action, pursuant to 5 U.S.C. 553,                     and request a modification of the order
                                               ACTION: Proposed rule.                                  proposes an amendment to regulations                  or to be exempted therefrom. Such
                                                                                                       issued to carry out a marketing order as              handler is afforded the opportunity for
                                               SUMMARY:   This proposed rule would                                                                           a hearing on the petition. After the
                                                                                                       defined in 7 CFR 900.2(j). This proposed
                                               implement a recommendation from the                                                                           hearing, USDA would rule on the
                                                                                                       rule is issued under Marketing
                                               California Desert Grape Administrative                                                                        petition. The Act provides that the
                                                                                                       Agreement No. 925 and Order No. 925,
                                               Committee (Committee) to decrease the                                                                         district court of the United States in any
                                                                                                       as amended (7 CFR part 925), regulating
                                               assessment rate established for the 2018                                                                      district in which the handler is an
                                                                                                       the handling of grapes grown in a
                                               fiscal period and subsequent fiscal                                                                           inhabitant, or has his or her principal
                                                                                                       designated area of southeastern
                                               periods. This proposed rule also makes                                                                        place of business, has jurisdiction to
                                                                                                       California. Part 925 (referred to as the
                                               administrative revisions to the subpart                                                                       review USDA’s ruling on the petition,
                                                                                                       ‘‘Order’’) is effective under the
                                               headings to bring the language into                                                                           provided an action is filed not later than
                                                                                                       Agricultural Marketing Agreement Act
                                               conformance with the Office of Federal                                                                        20 days after the date of the entry of the
                                                                                                       of 1937, as amended (7 U.S.C. 601–674),
                                               Register requirements.                                                                                        ruling.
                                                                                                       hereinafter referred to as the ‘‘Act.’’ The
                                               DATES: Comments must be received by                     Committee locally administers the                        This proposed rule would decrease
                                               April 2, 2018.                                          Order and is comprised of producers                   the assessment rate for the 2018 and
                                               ADDRESSES: Interested persons are                       and handlers of grapes operating within               subsequent fiscal periods from $0.030 to
                                               invited to submit written comments                      the area of production, and a member of               $0.020 per 18-pound lug of grapes
                                               concerning this proposed rule.                          the public.                                           handled.
                                               Comments must be sent to the Docket                        The Department of Agriculture                         The Order provides authority for the
                                               Clerk, Marketing Order and Agreement                    (USDA) is issuing this rule in                        Committee, with the approval of USDA,
                                               Division, Specialty Crops Program,                      conformance with Executive Orders                     to formulate an annual budget of
                                               AMS, USDA, 1400 Independence                            13563 and 13175. This action falls                    expenses and collect assessments from
                                               Avenue SW, STOP 0237, Washington,                       within a category of regulatory actions               handlers to administer the program. The
                                               DC 20250–0237; Fax: (202) 720–8938; or                  that the Office of Management and                     members of the Committee are
                                               internet: http://www.regulations.gov.                   Budget (OMB) exempted from Executive                  producers and handlers of grapes grown
                                               Comments should reference the                           Order 12866 review. Additionally,                     in a designated area of southeastern
                                               document number and the date and                        because this rule does not meet the                   California, and a member of the public.
                                               page number of this issue of the Federal                definition of a significant regulatory                They are familiar with the Committee’s
                                               Register and will be available for public               action, it does not trigger the                       needs and with the costs for goods and
                                               inspection in the Office of the Docket                  requirements contained in Executive                   services in their local area and are thus
                                               Clerk during regular business hours, or                 Order 13771. See OMB’s Memorandum                     in a position to formulate an appropriate
                                               can be viewed at: http://                               titled ‘‘Interim Guidance Implementing                budget and assessment rate. The
amozie on DSK30RV082PROD with PROPOSALS




                                               www.regulations.gov. All comments                       Section 2 of the Executive Order of                   assessment rate is formulated and
                                               submitted in response to this proposed                  January 30, 2017, titled ‘Reducing                    discussed in a public meeting. Thus, all
                                               rule will be included in the record and                 Regulation and Controlling Regulatory                 directly affected persons have an
                                               will be made available to the public.                   Costs’ ’’ (February 2, 2017).                         opportunity to participate and provide
                                               Please be advised that the identity of the                 This proposed rule has been reviewed               input.
                                               individuals or entities submitting the                  under Executive Order 12988, Civil                       For the 2016 and subsequent fiscal
                                               comments will be made public on the                     Justice Reform. Under the Order now in                periods the Committee recommended,
                                               internet at the address provided above.                 effect, grape handlers in a designated                and USDA approved, an assessment rate


                                          VerDate Sep<11>2014   16:26 Feb 28, 2018   Jkt 244001   PO 00000   Frm 00001   Fmt 4702   Sfmt 4702   E:\FR\FM\01MRP1.SGM   01MRP1


                                                                       Federal Register / Vol. 83, No. 41 / Thursday, March 1, 2018 / Proposed Rules                                            8803

                                               of $0.030 per 18-pound lug of grapes.                   within the authorized limit allowed by                USDA’s Market News indicates that at
                                               That rate would continue in effect                      the Order.                                            least ten of 38 producers have annual
                                               unless modified, suspended, or                            The proposed assessment rate would                  receipts of less than $750,000. Thus, it
                                               terminated by USDA upon                                 continue in effect indefinitely unless                may be concluded that a majority of the
                                               recommendation and information                          modified, suspended, or terminated by                 grape handlers regulated under the
                                               submitted by the Committee or other                     USDA upon recommendation and                          Order and about ten of the producers
                                               information available to USDA.                          information submitted by the                          could be classified as small entities
                                                  The Committee met on November 30,                    Committee or other available                          under the SBA’s definitions.
                                               2017 and unanimously recommended                        information.                                            This proposal would decrease the
                                               2018 fiscal year expenditures of                          Although this assessment rate would                 assessment rate collected from handlers
                                               $119,000, with an estimated cash                        be in effect for an indefinite period, the            for the 2018 and subsequent fiscal
                                               reserve of $115,000, and an assessment                  Committee would continue to meet                      periods from $0.030 to $0.020 per 18-
                                               rate of $0.020 per 18-pound lug of                      prior to or during each fiscal period to              pound lug of grapes. The Committee
                                               grapes. In comparison, last fiscal year’s               recommend a budget of expenses and                    unanimously recommended fiscal year
                                               budgeted expenditures were $108,500.                    consider recommendations for                          2018 expenditures of $119,000 and an
                                               The assessment rate of $.020 is $0.010                  modification of the assessment rate. The              assessment rate of $0.020 per 18-pound
                                               lower than the rate currently in effect.                dates and times of Committee meetings                 lug. The proposed assessment rate of
                                               The 2017 crop, at the higher assessment                 are available from the Committee or                   $0.020 is $0.010 lower than the 2017
                                               rate currently in effect, provided more                 USDA. Committee meetings are open to                  rate. The quantity of assessable
                                               income than required to cover expenses,                 the public and interested persons may                 commodity for the 2018 fiscal year is
                                               resulting in an estimated cash reserve of               express their views at these meetings.                estimated at 4,700,000 18-pound lugs.
                                               $140,000. The cash reserves are                         USDA would evaluate Committee                         Thus, the $0.020 rate should provide
                                               sufficient to supplement this fiscal                    recommendations and other available                   $94,000 in assessment income. That
                                               year’s revenues at an assessment rate of                information to determine whether                      amount plus the use of reserve funds of
                                               $0.020 per 18-pound lug of grapes to                    modification of the assessment rate is                $25,000 should be adequate to meet this
                                               fully fund the recommended 2018                         needed. Further rulemaking would be                   2018 fiscal year’s expenses. Income
                                               budgeted expenditures.                                  undertaken as necessary. The                          derived from handler assessments, along
                                                  The major expenditures                               Committee’s budget for fiscal year 2018               with interest income and funds from the
                                               recommended by the Committee for the                    and those for subsequent fiscal periods               Committee’s authorized reserve, would
                                               2018 fiscal year include $65,000 for                    would be reviewed and, as appropriate,                be adequate to cover budgeted expenses.
                                               management and compliance services,                     approved by USDA.                                       The major expenditures
                                               $25,500 in office expenditures, and                                                                           recommended by the Committee for the
                                               $28,500 for research. Budgeted expenses                 Initial Regulatory Flexibility Analysis               2018 fiscal year include $65,000 for
                                               for these items in fiscal year 2017 were                  Pursuant to requirements set forth in               management and compliance services,
                                               $50,000 for management and                              the Regulatory Flexibility Act (RFA) (5               $25,500 in office expenditures, and
                                               compliance services, $28,330 in office                  U.S.C. 601–612), the Agricultural                     $28,500 for research. Budgeted expenses
                                               expenditures, and $28,500 for research.                 Marketing Service (AMS) has                           for these items in 2017 were $50,000 for
                                                  The assessment rate recommended by                   considered the economic impact of this                management and compliance services,
                                               the Committee was derived by                            proposed rule on small entities.                      $28,330 in office expenditures, and
                                               considering anticipated expenses,                       Accordingly, AMS has prepared this                    $28,500 for research.
                                               expected shipments of grapes in the                     initial regulatory flexibility analysis.                Funds in the reserve (currently
                                               production area, and the level of funds                   The purpose of the RFA is to fit                    $140,000) would be reduced by $25,000
                                               in the authorized reserve. Grape                        regulatory actions to the scale of                    to be within the maximum permitted by
                                               shipments for fiscal year 2018 are                      businesses subject to such actions in                 the Order. Section 925.42 provides the
                                               estimated at 4,700,000 18-pound lugs,                   order that small businesses will not be               Committee authority to carry over
                                               which should provide $94,000 in                         unduly or disproportionately burdened.                excess funds into subsequent fiscal
                                               assessment income. Income derived                       Marketing orders issued pursuant to the               years provided that funds in the reserve
                                               from handler assessments, along with                    Act, and the rules issued thereunder, are             do not exceed approximately one fiscal
                                               interest income and funds from the                      unique in that they are brought about                 period’s expenses. The Committee is
                                               Committee’s authorized reserve, would                   through group action of essentially                   authorized to utilize the excess funds to
                                               be adequate to cover budgeted expenses.                 small entities acting on their own                    defray expenses during any fiscal
                                               Funds in the reserve (currently                         behalf.                                               period. The Committee proposes to
                                               $140,000) would be reduced by $25,000                     There are approximately 38 producers                utilize approximately $25,000 of its
                                               and would be within the maximum                         of grapes in the production area and                  carry-over reserve funds to fully fund
                                               permitted by the Order. Section                         approximately 14 handlers subject to                  the 2018 proposed budget, while
                                               925.42(a)(2) authorizes the Committee to                regulation under the Order. Small                     assessing the new 2018 crop at the
                                               carry over excess funds into subsequent                 agricultural producers are defined by                 proposed lower rate; thereby
                                               fiscal years provided that funds in the                 the Small Business Administration                     maintaining the carry-over reserve fund
                                               reserve not exceed approximately one                    (SBA) as those having annual receipts                 within the authorized limit stated in the
                                               fiscal period’s expenses. The Committee                 less than $750,000, and small                         Order, approximately one fiscal period’s
                                               may utilize the reserve funds to defray                 agricultural service firms are defined as             expenses.
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                                               expenses during any fiscal period. The                  those whose annual receipts are less                    Prior to arriving at this budget and
                                               Committee proposes to utilize                           than $7,500,000 (13 CFR 121.201).                     assessment rate, the Committee
                                               approximately $25,000 of its carry-over                   Eleven of the 14 handlers subject to                considered various options, such as
                                               reserve funds to fully fund the fiscal                  the Order have annual grape sales of                  maintaining the current assessment rate
                                               year 2018 proposed budget, while                        less than $7,500,000, according to                    and expenditure levels. Alternative
                                               assessing the new fiscal year 2018 crop                 USDA Market News Service and                          expenditure levels were discussed by
                                               at the proposed lower rate; thereby                     Committee data. In addition,                          the Committee, based upon the relative
                                               maintaining the carry-over reserve fund                 information from the Committee and                    value of various activities to the grape


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                                               8804                    Federal Register / Vol. 83, No. 41 / Thursday, March 1, 2018 / Proposed Rules

                                               industry. The Committee ultimately                      information technologies to provide                     Dated: February 22, 2018.
                                               determined that 2018 expenditures of                    increased opportunities for citizen                   Bruce Summers,
                                               $119,000 were appropriate, and the                      access to Government information and                  Acting Administrator, Agricultural Marketing
                                               recommended assessment rate and the                     services, and for other purposes.                     Service.
                                               use of $25,000 from the carry-over                         USDA has not identified any relevant               [FR Doc. 2018–04010 Filed 2–28–18; 8:45 am]
                                               financial reserves would provide                        Federal rules that duplicate, overlap, or             BILLING CODE 3410–02–P
                                               sufficient revenue to meet its expenses.                conflict with this action.
                                                  A review of historical crop and price
                                                                                                          A small business guide on complying
                                               information, as well as preliminary                                                                           DEPARTMENT OF AGRICULTURE
                                               information pertaining to the upcoming                  with fruit, vegetable, and specialty crop
                                               fiscal period, indicates that the shipping              marketing agreements and orders may                   Agricultural Marketing Service
                                               point price for the 2017 season averaged                be viewed at: http://www.ams.usda.gov/
                                               about $21.62 per 18-pound lug of                        rules-regulations/moa/small-businesses.               7 CFR Part 959
                                               California desert grapes handled. If the                Any questions about the compliance
                                                                                                       guide should be sent to Richard Lower                 [AMS–SC–17–0067; SC17–959–4]
                                               2018 price is similar to the 2017 price,
                                               estimated assessment revenue as a                       at the previously-mentioned address in
                                                                                                       the FOR FURTHER INFORMATION CONTACT                   Onions Grown in South Texas;
                                               percentage of total estimated handler                                                                         Proposed Amendment to Marketing
                                               revenue would be 0.09 percent for the                   section.
                                                                                                                                                             Order 959
                                               2018 season ($0.020 divided by $21.62                      A 30-day comment period is provided
                                               per 18-pound lug).                                      to allow interested persons to respond                AGENCY:  Agricultural Marketing Service,
                                                  This action would decrease the                       to this proposed rule. All written                    USDA.
                                               assessment obligation imposed on                        comments timely received will be                      ACTION: Proposed rule.
                                               handlers. Assessments are applied                       considered before a final determination
                                               uniformly on all handlers, and some of                  is made on this rule.                                 SUMMARY:   This proposed rule invites
                                               the costs may be passed on to                                                                                 comments on a proposed amendment to
                                                                                                       List of Subjects in 7 CFR Part 925
                                               producers. However, decreasing the                                                                            Marketing Order No. 959, which
                                               assessment rate would reduce the                          Grapes, Marketing agreements,                       regulates the handling of onions grown
                                               burden on handlers, and may reduce the                  Reporting and recordkeeping                           in south Texas. The proposed
                                               burden on producers. In addition, the                   requirements.                                         amendment would reduce the size of
                                               Committee’s meeting was widely                                                                                the South Texas Onion Committee
                                                                                                         For the reasons set forth in the
                                               publicized throughout the production                                                                          (Committee) and make conforming and
                                               area. The grape industry and all                        preamble, 7 CFR part 925 is proposed to
                                                                                                                                                             clarifying amendments as needed. The
                                               interested persons were invited to                      be amended as follows:
                                                                                                                                                             amendment would adjust the number of
                                               attend the meeting and participate in                   PART 925—GRAPES GROWN IN A                            handlers and producers on the
                                               Committee deliberations on all issues.                  DESIGNATED AREA OF                                    Committee to reflect a decrease in the
                                               Like all Committee meetings, the                        SOUTHEASTERN CALIFORNIA                               number of onion producers and
                                               November 30, 2017, meeting was a                                                                              handlers in recent years.
                                               public meeting and all entities, both                   ■ 1. The authority citation for part 925              DATES: Comments must be received by
                                               large and small, were able to express                   continues to read as follows:                         April 30, 2018.
                                               views on this issue. Finally, interested
                                                                                                           Authority: 7 U.S.C. 601–674.                      ADDRESSES: Interested persons are
                                               persons are invited to submit comments
                                               on this proposed rule, including the                                                                          invited to submit written comments
                                                                                                       ■ 2. Sections 925.1 through 925.69 are                concerning this proposed rule.
                                               regulatory and information collection                   designated as subpart A under a heading
                                               impacts of this action on small                                                                               Comments must be sent to the Docket
                                                                                                       to read as follows:                                   Clerk, Marketing Order and Agreement
                                               businesses.
                                                  In accordance with the Paperwork                                                                           Division, Specialty Crops Program,
                                                                                                       Subpart A—Order Regulating Handling                   AMS, USDA, 1400 Independence
                                               Reduction Act of 1995, (44 U.S.C.                       [Subpart Redesignated as Subpart B
                                               Chapter 35), the Order’s information                                                                          Avenue SW, STOP 0237, Washington,
                                                                                                       and Amended]                                          DC 20250–0237; Fax: (202) 720–8938; or
                                               collection requirements have been
                                               previously approved by OMB and                          ■ 3. Redesignate ‘‘Subpart—Rules and                  internet: http://www.regulations.gov. All
                                               assigned OMB No. 0581–0189. No                          Regulations’’ as subpart B and revise the             comments should reference the
                                               changes in those requirements are                       heading to read as follows:                           document number and the date and
                                               necessary as a result of this action.                                                                         page number of this issue of the Federal
                                               Should any changes become necessary,                    Subpart B—Administrative                              Register and will be made available for
                                               they would be submitted to OMB for                      Requirements [Subpart Redesignated                    public inspection in the Office of the
                                               approval.                                               as Subpart C]                                         Docket Clerk during regular business
                                                  This proposed rule would impose no                                                                         hours, or can be viewed at: http://
                                               additional reporting or recordkeeping                   ■ 4. Redesignate ‘‘Subpart—Assessment                 www.regulations.gov. All comments
                                               requirements on either small or large                   Rates’’ as ‘‘Subpart C Assessment                     submitted in response to this proposed
                                               southeastern California grape handlers.                 Rates’’.                                              rule will be included in the record and
                                               As with all Federal marketing order                     ■ 5. Section 925.215 is revised to read               will be made available to the public.
                                                                                                                                                             Please be advised that the identity of the
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                                               programs, reports and forms are                         as follows:
                                               periodically reviewed to reduce                                                                               individuals or entities submitting the
                                                                                                       § 925.215    Assessment rate.                         comments will be made public on the
                                               information requirements and
                                               duplication by industry and public                        On and after January 1, 2018, an                    internet at the address provided above.
                                               sector agencies.                                        assessment rate of $0.020 per 18-pound                FOR FURTHER INFORMATION CONTACT:
                                                  AMS is committed to complying with                   lug is established for grapes grown in a              Geronimo Quinones, Marketing
                                               the E-Government Act, to promote the                    designated area of southeastern                       Specialist, or Julie Santoboni,
                                               use of the internet and other                           California.                                           Rulemaking Branch Chief, Marketing


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Document Created: 2018-02-28 23:58:17
Document Modified: 2018-02-28 23:58:17
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 2, 2018.
ContactMaria Stobbe, Marketing Specialist or Jeffrey Smutny, Regional Director, California Marketing Field Office, Marketing Order and Agreement Division, Specialty Crops Program, AMS, USDA; Telephone: (559) 487-5901, Fax: (559) 487-5906, or Email: [email protected] or [email protected]
FR Citation83 FR 8802 
CFR AssociatedGrapes; Marketing Agreements and Reporting and Recordkeeping Requirements

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