Proposed Processed Raspberry Promotion, Research, and Information Order, 16266-16289 [E9-7981]
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Federal Register / Vol. 74, No. 67 / Thursday, April 9, 2009 / Proposed Rules
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1208
[Doc. No. AMS–FV–07–0077; FV–07–705–
PR–1A]
RIN 0581–AC37
Proposed Processed Raspberry
Promotion, Research, and Information
Order
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AGENCY: Agricultural Marketing Service,
USDA.
ACTION: Proposed rule with request for
comments.
SUMMARY: This rule proposes the
establishment of an industry-funded
promotion, research, and information
program for processed raspberries. The
proposed program, Processed Raspberry
Promotion, Research, and Information
Order (Proposed Order), was submitted
to the Department of Agriculture
(Department) by the Washington Red
Raspberry Commission (WRRC). Under
the Proposed Order, producers of
raspberries for processing and importers
of processed raspberries would pay an
assessment of up to one cent per pound,
with the initial assessment rate being
one cent per pound, which would be
paid to the proposed National Processed
Raspberry Council (Council). Producers
and importers of less than 20,000
pounds annually of raspberries for
processing and processed raspberries
respectively would be exempt from the
assessment. The proposed program
would be implemented under the
Commodity Promotion, Research, and
Information Act of 1996 (1996 Act). An
initial referendum would be conducted
among eligible producers of raspberries
for processing and importers of
processed raspberries to determine
whether they favor the implementation
of the program prior to it going into
effect. This rule also announces the
Agricultural Marketing Service’s (AMS)
intention to request approval of new
processed raspberries information
collection requirements by the Office of
Management and Budget (OMB) for the
Proposed Order.
DATES: Comments must be received by
June 8, 2009. Pursuant to the Paperwork
Reduction Act (PRA), comments on the
information collection burden that
would result from this proposal must be
received by June 8, 2009.
ADDRESSES: Interested persons are
invited to submit written comments on
the Internet at https://
www.regulations.gov or to the Research
and Promotion Branch, Fruit and
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Vegetable Programs, AMS, USDA, 1400
Independence Avenue, SW., Stop 0244,
Room 0632–S, Washington, DC 20250–
0244; fax: (202) 205–2800. All
comments should reference the docket
number and the date and page number
of this issue of the Federal Register and
will be made available for public
inspection in the above office during
regular business hours or can be viewed
at https://www.regulations.gov.
Pursuant to PRA, comments regarding
the accuracy of the burden estimate,
ways to minimize the burden, including
the use of automated collection
techniques or other forms of information
technology, or any other aspect of this
collection of information, should be sent
to the above address. In addition,
comments concerning the information
collection should also be sent to the
Desk Office for Agriculture, Office of
Information and Regulatory Affairs,
Office of Management and Budget, New
Executive Office Building, 725 17th
Street, NW., Room 725, Washington, DC
20503.
FOR FURTHER INFORMATION CONTACT:
Kimberly Coy, Marketing Specialist,
Research and Promotion Branch, Fruit
and Vegetable Programs, AMS, USDA,
1400 Independence Avenue, SW., Room
0632, Stop 0244, Washington, DC
20250–0244; telephone: (202) 720–9915
or (888) 720–9917 (toll free); or
facsimile: (202) 205–2800; or e-mail:
Kimberly.Coy@usda.gov.
This rule
is issued pursuant to the Commodity
Promotion, Research, and Information
Act of 1996 (1996 Act) (7 U.S.C. 7411–
7425).
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This rule has been determined not
significant for purposes of Executive
Order 12866 and therefore has not been
reviewed by the Office of Management
and Budget (OMB).
Executive Order 12988
This rule has been reviewed under
Executive Order 12988, Civil Justice
Reform. It is not intended to have
retroactive effect. This rule will not
preempt any state or local laws,
regulations, or policies, unless they
represent an irreconcilable conflict with
this rule. Section 524 of the 1996 Act
provides that it shall not affect or
preempt any other Federal or state law
authorizing promotion or research
relating to an agricultural commodity.
Under section 519 of the 1996 Act, a
person subject to an order may file a
written petition with the Department
stating that an order, any provision of an
order, or any obligation imposed in
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connection with an order, is not
established in accordance with the law,
and requesting a modification of an
order or an exemption from an order.
Any petition filed challenging an order,
any provision of an order, or any
obligation imposed in connection with
an order, shall be filed within two years
after the effective date of an order,
provision, or obligation subject to
challenge in the petition. The petitioner
will have the opportunity for a hearing
on the petition. Thereafter, the
Department will issue a ruling on the
petition. The 1996 Act provides that the
district court of the United States for
any district in which the petitioner
resides or conducts business shall have
the jurisdiction to review a final ruling
on the petition, if the petitioner files a
complaint for that purpose not later
than 20 days after the date of the entry
of the Department’s final ruling.
Executive Order 13132
This proposed rule has been reviewed
under Executive Order 13132,
Federalism. This Executive Order
directs agencies to construe, in
regulations and otherwise, a Federal
Statute to preempt State law only when
the statute contains an express
preemption provision. Section 524 of
the 1996 Act provides that the Act shall
not affect or preempt any other Federal
or State law authorizing promotion or
research relating to an agricultural
commodity.
The WRRC and the Oregon Raspberry
and Blackberry Commission (ORBC), the
principal producers of processed
raspberries, both administer State
marketing orders, which require all
producers of raspberries to pay
assessments to support the health of
their respective industries. Both the
WRRC and ORBC invest funds into
research programs at their land-grant
universities and other research
institutions to study disease, pest
control, and varietal development. In
addition to developing and funding
production research, they also fund
marketing and promotion programs and
seek to foster education and
communication between producers.
However, according to the WRRC,
WRRC, ORBC and international
raspberry organizations have not been
able to generate the funds necessary to
support the marketing efforts needed to
help expand processed raspberry
consumption and increase the demand
for processed raspberries. In order to
manage increased production, increased
competition, and changing consumer
habits, the WRRC believes that a more
extensive marketing program is needed.
The WRRC and ORBC believe that a
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national research and promotion
program would fund the promotional
aspect necessary to stay competitive and
would place all domestic producers and
importers on an equal playing field with
each investing a fair share in promoting
processed raspberries. If a national
processed raspberry program is
established, the WRRC and ORBC will
continue to fund processed raspberry
research in areas not likely to be the
focus of the national program.
In accordance with the 1996 Act, this
proposed rule would not preempt any of
these State-legislated programs. Further,
section 1208.52(h) of the Proposed
Order provides for credit of assessments
for those individuals who contribute to
local, regional, or State organizations
that engage in similar generic research,
promotion, and information programs as
partial fulfillment of assessments due to
the Council subject to approval of the
Secretary, for expenditure on generic
research, promotion and information
programs conducted within the United
States.
The proposed program is not intended
to duplicate any State program.
Considerable attention is being made to
involve producers in discussions
regarding future program development
and administration and what the State
commissions would look like prior to
the initial referendum. It is expected
that farm related activities, such as
production research, would continue to
be funded by the State organizations
and market development functions,
such as nutritional research and
marketing programs, would shift to the
Proposed Order.
Not only were the States informed
throughout the development of the
national program, they were
instrumental in the processed raspberry
industry’s decision to institute a
national program.
In 2007, representatives from the
WRRC were among other raspberry
industry representatives who met with
AMS representatives to discuss the
possibility of implementing a national
processed raspberry promotion,
research, and information program.
WRRC representatives participated in
the development of the provisions of the
Proposed Order during these meetings
and with direct communication with the
Oregon Raspberry and Blackberry
Commission (ORBC).
Initial Regulatory Flexibility Act
Analysis
In accordance with the Regulatory
Flexibility Act (RFA) [5 U.S.C. 601–
612], AMS is required to examine the
impact of the proposed rule on small
entities. The purpose of the RFA is to
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fit regulatory actions to the scale of
businesses subject to such actions so
that small businesses will not be
disproportionately burdened.
The Small Business Administration
defines, in 13 CFR Part 121, small
agricultural producers as those having
annual receipts of no more than
$750,000 and small agricultural service
firms (handlers and importers) as those
having annual receipts of no more than
$7.0 million. Under these criteria, the
majority of the producers and handlers
that would be affected by this Proposed
Order would be considered small
entities, while most importers would
not. Future, qualified organizations
certified by the Secretary for nomination
purposes, would be expected to
generally consist of entities reflecting
such sizes also. Producers and importers
of less than 20,000 pounds per year of
raspberries for processing and processed
raspberries respectively would be
exempt under this Proposed Order. Five
organic producers and importers are
also expected to be exempt from
assessments. The number of entities
assessed under the program would be
around 245. Estimated revenue is
expected at $1.2 million of which 43
percent is expected from imported
product and 57 percent from domestic
product.
According to the WRRC, in 2006,
there were approximately 195 producers
of raspberries for processing and 34
processors (first handlers) of processed
raspberries in Oregon and Washington
States, which are the principal growing
areas in the United States for raspberries
destined for processing. Approximately
95 percent of the producers and 100
percent of the raspberry processors
qualified under the definition for small
business owners. Although California is
a significant producer of raspberries,
virtually all harvested product is
destined for the fresh market. In 2006,
there were approximately 50 importers.
Based on the U.S. Department of
Commerce, U.S. Census Bureau, Foreign
Trade Statistics, in 2006 two countries
accounted for 96 percent of the
processed raspberries imported into the
United States. These countries and their
share of the imports are: Chile (78
percent) and Canada (18 percent).
The 1996 Act authorizes generic
programs of promotion, research, and
information for agricultural
commodities. Congress found that it is
in the national public interest and vital
to the welfare of the agricultural
economy of the United States to
maintain and expand existing markets
and develop new markets and uses for
agricultural commodities through
industry-funded, government-
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supervised, generic commodity
promotion programs.
The WRRC submitted this Proposed
Order to: (1) Develop and finance an
effective and coordinated program of
research, promotion, industry
information, and consumer education
regarding processed raspberries; (2)
strengthen the position of the processed
raspberry industry; and (3) maintain,
develop, and expand existing markets
for processed raspberries.
While the Proposed Order would
impose certain recordkeeping
requirements on first handlers, this
information could be compiled from
records currently maintained. First
handlers would collect and remit the
assessments on domestic processed
raspberries to the Council. First handler
responsibilities would include accurate
recordkeeping and accounting on all
raspberries purchased or contracted for
processing including the number of
pounds handled, the names of their
producers, and the dates raspberries
were purchased. The forms require the
minimum information necessary to
effectively carry out the requirements of
the program, and their use is necessary
to fulfill the intent of the 1996 Act. Such
records must be retained for at least two
years. This information is already
maintained as a normal business
practice. In addition, as these entities
currently remit assessments under
either the Washington or Oregon State
programs, the additional recordkeeping
and submission impact would be
minimal.
There is also a minimal paperwork
burden on producers. The Proposed
Order would require producers to keep
records and to provide information to
the Council or the Department when
requested. However, it is not anticipated
that producers would be required to
submit forms to the Council other than
for nomination to the Council. If, for
example, the Council needs information
from a producer as part of the Council’s
compliance program, the information
would need to be obtained through an
audit of the producer’s records instead
of having the producer complete and
submit paperwork.
In addition, there is a minimal burden
on importers. The import assessments
would be collected by U.S. Customs and
Border Protection (Customs) at time of
entry into the United States. Importers
would be required to keep records and
to provide information to the Council or
the Secretary of Agriculture (Secretary)
when requested. However, it is not
anticipated that importers would be
required to submit forms to the Council
for assessment collection because
Customs conducts recordkeeping and
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assessment remittance at the time of
product entry into the United States.
Importers who seek nomination to serve
on the Council would be required to
complete a background form which
would be submitted to the Secretary.
Foreign producers from countries
exporting a minimum of three million
pounds of raspberries for processing
based on a three-year average to the U.S.
and at-large members seeking
nomination to serve on the Council
would be required to complete a
background form which would be
submitted to the Secretary.
The estimated annual cost of
providing the information to the
Council by an estimated 297
respondents (195 producers, 50
importers, 34 first handlers/processors,
2 foreign producers, 5 organic producers
and importers, 10 certified organizations
(for nomination purposes), and 1 atlarge member) would be $9,141.
Section 518 of the 1996 Act provides
for referenda to ascertain approval of the
Proposed Order to be conducted either
prior to its going into effect or within
three years after assessments first begin
under the Proposed Order. An initial
referendum would be conducted prior
to putting this Proposed Order in effect.
The Proposed Order also provides for
approval in a referendum to be based
upon approval by a majority of those
persons voting in the referendum. Every
seven years, the Department shall
conduct a referendum to determine
whether producers and importers of
processed raspberries favor the
continuation, suspension, or
termination of the Proposed Order. In
addition, the Department could conduct
a referendum at any time; at the request
of 10 percent or more of all eligible
producers of raspberries for processing
and processed raspberries importers
required to pay assessments; or if the
Council requests that the Secretary hold
a referendum.
The United States is among the
leading producers of raspberries.
Raspberries are grown in 46 states and
are harvested late June to mid August.
The 2002 Census of Agriculture
indicates that about 80 percent of the
U.S. raspberry acreage was in California,
Oregon, and Washington.
According to the United States
Department of Agriculture’s National
Agricultural Statistics Service (NASS)
and the Foreign Agricultural Service, in
2005, 178,300 million pounds of
raspberries (fresh) with a combined
value approaching $246 million (value
at point of first sale) were produced in
California, Oregon, and Washington, the
three most productive States for growing
raspberries in the United States. In
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2006, 179,850 million pounds were
produced and utilized, at a value of
almost $275 million. California’s crop is
predominately delivered to the fresh
market, while Oregon and Washington
are the principal producers of processed
raspberries.
Domestic production varies from year
to year due to climatic conditions and
field health. Over the last fifteen years,
total domestic production of raspberries
delivered to processors in the United
States (i.e., production utilized for
processing) has increased from 47.5
million pounds in 1991 to almost 75
million pounds in 2005 with most
recent years averaging approximately 65
million pounds. Washington continues
to be the major supplier of processed
raspberries to the domestic market,
although its market share declined from
72 percent to 51 percent between 2001
and 2006. In comparison, imported
raspberries have surged from 7.5 to 53.8
million pounds from 1991 to 2005 and
decreased to 48.9 million pounds in
2006. Chile, which is the predominate
importer of processed raspberries to the
United States, supplied just over 30
percent of the market in 2005 and 2006.
Domestic uses of processed
raspberries include further processing
into juices, jellies, baked goods, and
consumer retailer packs. After averaging
approximately 100 million pounds for
the period 1999 to 2004, approximately
128 million pounds of processed
raspberries were produced and/or
imported into the United States in 2005
and 111 million pounds in 2006. These
totals were calculated by using imports
of frozen raspberries (from USDA’s
Foreign Agricultural Service) and NASS
reports of production utilized for
processing in Oregon and Washington.
Because of the way imports are
currently reported, and because of the
way NASS reports raspberry data, the
totals represent the best information
currently available.
The following countries are major
exporters of raspberries to the United
States: Canada, Chile, China, France,
and Poland. Canada and Chile
represented 91.5 percent share of total
import tonnage in the domestic United
States market from 2002 to 2006, with
26 and 65.5 percent respectively.
The same growing conditions and
harvesting period apply to the Pacific
Northwest and British Columbia, the
major raspberry growing region in
Canada. Exports of processed frozen
raspberries from British Colombia to the
United States ranged from 2.9 million
metric tons to 5.7 million metric tons
over the past five years.
Contra-season raspberry production in
the southern hemisphere is primarily
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located in Chile, with a harvest season
beginning in December and continuing
into February. However, processed
raspberries are imported into the United
States throughout the year.
The Proposed Order would authorize
a fixed assessment paid by producers of
raspberries for processing and importers
of processed raspberries at a rate of up
to one cent per pound, with the initial
assessment rate being one cent per
pound. The assessment rate will be
reviewed, and increased or decreased as
recommended by the Council and
approved by the Secretary after the first
referendum is conducted as stated in
§ 1208.71 (a). Such an increase or
decrease may occur not more than once
annually. Any change in the assessment
rate shall be subject to rulemaking by
the Department, and will be reviewed,
and increased or decreased by the
Secretary through rulemaking as
recommended by the Council. Any
change in the assessment rate shall be
announced by the Council at least 30
days prior to going into effect. The
maximum assessment rate authorized is
one cent per pound.
At the proposed rate of assessment of
up to one cent per pound, with the
initial assessment rate being one cent
per pound, the Council would collect
approximately $1.2 million annually
based on an estimated 120 million
pound supply from domestic raspberries
for processing and imports of processed
raspberries. The domestic supply
represents approximately 57 percent of
the total and imports represent 43
percent.
The Proposed Order would exempt
producers and importers of less than
20,000 pounds annually of raspberries
for processing and processed raspberries
respectively. A review of producer
delivery statistics from Oregon and
Washington States indicate that around
15 percent of all producers would have
been exempted from assessment in 2006
from the proposed research and
promotion program based on a 20,000
pounds exemption threshold. Also,
organic producers and importers would
be exempt from assessment. Section 515
of the 1996 Act provides for the
establishment of a board or council
consisting of producers, importers, and
others in the marketing chain as
appropriate. The Proposed Order would
provide for the establishment of the
National Processed Raspberry Council
to administer the Proposed Order under
AMS oversight. The Secretary would
appoint members to the Council from
nominees submitted in accordance with
the Proposed Order. The WRRC
proposed that the Council be composed
of 13 members and their alternates. The
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proposed Council membership is as
follows: six producer members of
raspberries for processing from States
producing a minimum of three million
pounds of raspberries delivered for
processing; one producer member of
raspberries for processing representing
all other States that produce less than
the minimum of three million pounds of
raspberries delivered for processing;
three processed raspberry importer
members; two foreign producers from
countries exporting a minimum of three
million pounds of raspberries for
processing to the U.S. based on a threeyear average; and one at-large member
recommended by the Council. The
distribution of producer member of
raspberries for processing positions
among the States producing a minimum
of three million pounds of raspberries
would be proportional to the average of
the total pounds delivered to the
processor for processing over the
previous three years. The States that
provide less than three million pounds
will be combined into one region and
will have one producer representative.
Under the Proposed Order, the
Council members and alternates will
serve for a term of three years and be
able to serve a maximum of two
consecutive terms. When the Council is
first established, four producer
members, two importers, one of the two
foreign producers, and the at-large
member and their respective alternates
will be assigned initial terms of three
years; and, three producer members, one
importer member, and the second
foreign producer and their respective
alternates will serve an initial term of
two years. Thereafter, each of these
positions will carry a full three-year
term. Members serving an initial term of
two years will be eligible to serve a
second three-year term to complete their
eligibility. Council nominations and
appointments will take place in two out
of every three years. Each term of office
will end on December 31, and a new
term will begin on January 1.
Producers and importers would
represent those entities in the United
States. The United States would be
defined to include collectively the 50
States, the District of Columbia, the
Commonwealth of Puerto Rico and the
territories and possessions of the United
States.
The nominations for the six producer
and alternate members from States
producing a minimum three-year
average of three million pounds of
raspberries delivered for processing will
be submitted to the Council in the
following manner: (1) For those States
that have a State raspberry commission
or State marketing order, the State
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commission or committee will nominate
producers and their alternates to serve;
or (2) for those States that do not have
a State commission or State marketing
order, the Council will seek
nominations from the State Departments
of Agriculture for members and
alternates from the specific States.
For those States producing a
minimum three-year average of three
million pounds of raspberries delivered
for processing that have a State
raspberry commission or State
marketing order, the State commission
or committee nominations will be
returned to the Council and placed on
a ballot which will then be sent to
producers in the State for a vote. The
nominee for member will have received
the highest number of votes cast. The
person with the second highest number
of votes cast will be the nominee for
alternate. The persons with the third
and fourth place highest number of
votes cast will be designated as
additional nominees for consideration
by the Secretary. Once the Council has
received all of the nominations from
commissions or committees, the
information will be submitted to the
Secretary for appointment. Nominations
for the initial Council will be handled
by the Department. Subsequent
nominations will be handled by the
Council staff and shall be submitted to
the Secretary not less than 90 days prior
to the expiration of the term of office.
If the Department determines that
there are no State raspberry
commissions or State marketing orders
from States producing a minimum
three-year average of three million
pounds of raspberries delivered for
processing, the Council will seek
nominations from the State Departments
of Agriculture for members and
alternates from the specific States who
may directly submit nominations to the
Department for the initial Council.
Subsequent nominations shall be
submitted to the Council and will be
handled by the Council staff who in
turn shall submit those nominations to
the Secretary not less than 90 days prior
to the expiration of the term of office.
The distribution of the six producer
and alternate seats will be proportional
to the percentage determined by the
average of the total pounds produced
and delivered to processors for
processing over the previous three years
divided by the average total pounds
produced over the previous three years.
For example, if Washington State and
Oregon are the only two States
producing a minimum of 3 million
pounds each, and Washington’s
previous three-year average is 62.4
million pounds and Oregon’s previous
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three-year average is 6.7 million pounds
with the average total pounds for the
previous three years being 69.1 million
pounds, Washington would have 90
percent of the production and Oregon
would have 10 percent of the
production. Therefore, Washington
would obtain five out of the six seats
and Oregon would receive one seat.
The nomination for the one raspberry
producer of raspberries for processing
and alternate member, who represents
all other States producing less than a
minimum three-year average of three
million pounds of raspberries delivered
for processing, will constitute a region
and the nominations will be submitted
to the Council in the following manner:
(1) For those States that have a State
raspberry commission or State
marketing order, the State commission
or committee will nominate producers
and their alternates to serve; or (2) for
those States that do not have a State
commission or State marketing order,
the Council will seek nominations from
the State Departments of Agriculture for
the member and alternate from the
specific States.
For those States producing less than
a minimum three-year average of three
million pounds of raspberries delivered
for processing that have a State
raspberry commission or State
marketing order, the State commission
or committee nominations will be
returned to the Council and placed on
a ballot which will then be sent to
producers in the Region for a vote. The
nominee for member will have received
the highest number of votes cast. The
person with the second highest number
of votes cast will be the nominee for
alternate. The persons with the third
and fourth place highest number of
votes cast will be designated as
additional nominees for consideration
by the Secretary. Once the Council has
received all of the nominations from
commissions or committees, the
information will be submitted to the
Secretary for appointment. Nominations
for the initial Council will be handled
by the Department. Subsequent
nominations will be handled by the
Council staff and shall be submitted to
the Secretary not less than 90 days prior
to the expiration of the term of office.
If the Department determines that
there are no State raspberry
commissions or State marketing orders
from States producing less than a
minimum three-year average of three
million pounds of raspberries delivered
for processing, the Council will seek
nominations from the State Departments
of Agriculture for members and
alternates from the specific States. The
State Departments of Agriculture would
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have the opportunity to participate in
nomination caucuses and will directly
submit as a group a single slate of
nominations to the Department for the
producer position and the producer
alternate position on the Council for the
initial Council. Subsequent nominations
shall be submitted to the Council and
will be handled by the Council staff
who in turn shall submit those
nominations to the Secretary not less
than 90 days prior to the expiration of
the term of office.
Only producers from States that
deliver raspberries for processing and
pay assessments under the program are
eligible for nomination and election to
the Council. Average production will be
based upon Department production data
for the initial nomination and
production figures generated by either
the Council or the Department
thereafter.
Nominations for the three processed
raspberry importer member positions
and their alternates will be made by
qualified national organizations
representing importers. Two nominees
for each member and each alternate
position will be submitted to the
Secretary for consideration.
All qualified national organizations
representing importers would have the
opportunity to participate in
nomination caucuses and will submit as
a group a single slate of nominations to
the Secretary for the importer positions
and the importer alternate positions on
the Council.
Eligible organizations must submit
nominations to the Department not less
than 90 days prior to the expiration of
the term of office. To become a qualified
national organization representing
importers under the Proposed Order,
each such organization would be
required to meet the following criteria:
(1) Any organization representing
importers must represent a substantial
number of importers who market a
substantial volume of raspberries for
processing; (2) it must have a history of
stability and permanency and have been
in existence for more than one year; (3)
it must promote processed raspberry
importers’ welfare; and (4) it must
derive a portion of its operating funds
from importers.
If the Department determines that
there are no qualified national
organizations representing importers,
individuals who have paid their
assessments to the Council in the most
recent fiscal year or for the initial
Council, those that imported processed
raspberries into the U.S. in the most
recent fiscal year, could directly submit
nominations to the Department for the
initial Council. Subsequent nominations
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shall be submitted to the Council and
will be handled by the Council staff
who in turn shall submit those
nominations to the Secretary not less
than 90 days prior to the expiration of
the term of office.
Nominations for the two foreign
producer member positions and their
alternates will be made by qualified
organizations representing foreign
producers. Two nominees for each
member and each alternate position will
be submitted to the Secretary for
consideration.
All qualified organizations
representing foreign producers would
have the opportunity to participate in
nomination caucuses and will submit as
a group a single slate of nominations per
country to the Secretary for foreign
producer positions and the foreign
producer alternate positions on the
Council.
Eligible organizations must submit
nominations to the Department not less
than 90 days prior to the expiration of
the term of office. To become a qualified
organization representing foreign
producers under the Proposed Order,
each such organization would be
required to meet the following criteria:
(1) Any organization representing
foreign producers must represent a
substantial number of foreign producers
who market or produce a substantial
volume of raspberries for processing; (2)
it must have a history of stability and
permanency and have been in existence
for more than one year; (3) it must
promote processed raspberry foreign
producers’ welfare; (4) it must derive a
portion of its operating funds from
foreign producers; and (5) must be from
a country exporting a minimum of three
million pounds of raspberries for
processing to the U.S. based on a threeyear average.
If the Department determines that
there are no qualified organizations
representing foreign producer interest,
individual foreign producers may
directly submit nominations to the
Department for the initial Council.
Subsequent nominations shall be
submitted to the Council and will be
handled by the Council staff who in
turn shall submit those nominations to
the Secretary not less than 90 days prior
to the expiration of the term of office.
In recommending the at-large member
and alternate, the Council can give
consideration to nutrition health
professionals and others interested in
the raspberry industry. Nominations for
the at-large member and alternate will
be conducted at a Council meeting by
the Council staff and shall be submitted
by the Council to the Secretary for
approval not less than 90 days prior to
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the expiration of the term of office.
Nominations for the initial Council will
be handled by the Department.
The 1996 Act provides that to ensure
fair and equitable representation, the
composition of a board or council shall
reflect the geographic distribution of the
production of the agriculture
commodity in the United States and the
quantity or value of the agriculture
commodity imported into the United
States. The Proposed Order states that at
least once every five years, but not more
frequently than once every three years,
the Council will review the geographic
distribution of United States production
of processed raspberries and the
quantity and source of processed
raspberry imports. If warranted, the
Council will recommend to the
Secretary that membership on the
Council be altered to reflect any changes
in geographic distribution of domestic
raspberry production and the quantity
of imports. Also, if the level of imports
increases or decreases, importer
members and alternates may be added
or reduced on the Council. However, the
foreign producer seats will remain the
same regardless of the volume of
imports from importing countries.
The Proposed Order provides that all
officers, employees, and agents of the
Department and of the Council are
required to keep confidential all
information obtained from persons
subject to the Proposed Order. This
information would be disclosed only if
the Department considers the
information relevant, and the
information is revealed in a judicial
proceeding or administrative hearing
brought at the direction or on the
request of the Department or to which
the Department or any officer of the
Department is a party. However, the
issuance of general statements based on
reports or on information relating to a
number of persons subject to the
Proposed Order would be permitted, if
the statements do not identify the
information furnished by any person.
Finally, the publication, by direction of
the Department, of the name of any
person violating the Proposed Order and
a statement of the particular provisions
of the Proposed Order violated by the
person would be allowed.
Proposed recordkeeping and reporting
requirements for the raspberry
promotion, research, and information
program would be designed to minimize
the burden on the raspberry industry.
The estimated total cost of providing
information to the Council by all
respondents would be $9,141. This total
has been estimated by multiplying 277
total hours required for reporting and
recordkeeping by $33, the average mean
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hourly earnings of various occupations
involved in keeping this information.
Data for computation of this hourly rate
was obtained from the U.S. Department
of Labor Statistics.
With regard to alternatives to this
proposed rule, the 1996 Act itself does
provide for authority to tailor a program
according to the individual needs of an
industry. Provision is made for
permissive terms in an order in section
516 of the 1996 Act, and other sections
provide for alternatives. Section 514 of
the 1996 Act provides for orders
applicable to (1) producers, (2) first
handlers and other persons in the
marketing chain as appropriate, and (3)
importers (if imports are subject to
assessment). Section 516 states that an
order may include an exemption of de
minimis quantities of an agricultural
commodity; different payment and
reporting schedules; coverage of
research, promotion, and information
activities to expand, improve, or make
more efficient the marketing or use of an
agricultural commodity in both
domestic and foreign markets; provision
for reserve funds; provision for credits
for generic activities for those
individuals who contribute to other
similar generic research, promotion, and
information programs at State, regional
or local level; and assessment of
imports. In addition, section 518 of the
1996 Act provides for referenda to
ascertain approval of an order to be
conducted either prior to its going into
effect or within three years after
assessments first begin under the order.
An order also may provide for its
approval in a referendum to be based
upon (1) a majority of those persons
voting; (2) persons voting for approval
who represent a majority of the volume
of the agricultural commodity; or (3) a
majority of those persons voting for
approval who also represent a majority
of the volume of the agricultural
commodity. Section 515 of the 1996 Act
provides for establishment of a council
from among producers, first handlers,
and others in the marketing chain as
appropriate and importers, if importers
are subject to assessment.
This proposal includes provisions for
both domestic and foreign market
expansion and improvement; reserve
funds; credits for generic activities;
assessments on imports; and an initial
referendum to be conducted prior to the
Proposed Order going into effect.
Approval would be determined by a
majority of producers and importers
voting for approval.
Similar to WRRC, Oregon also has a
state raspberry commission, the Oregon
Raspberry and Blackberry Commission
(ORBC). The WRRC and ORBC both
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administer State marketing orders,
which require all producers of
raspberries to pay assessments to
support the health of their respective
industries. According to WRRC, the two
commissions have developed a good
working relationship with each other
over the years. Both the WRRC and
ORBC invest funds into research
programs at their land-grant universities
and other research institutions to study
disease, pest control, and varietal
development. In addition to developing
and funding production research, they
also fund marketing and promotion
programs and seek to foster education
and communication between producers.
However, according to the WRRC,
WRRC, ORBC and international
raspberry organizations have not been
able to generate the funds necessary to
support the marketing efforts needed to
help expand processed raspberry
consumption and increase the demand
for processed raspberries. In order to
manage increased production, increased
competition, and changing consumer
habits, the WRRC believes that a more
extensive marketing program is needed.
The WRRC and ORBC believe that a
national research and promotion
program would fund the promotional
aspect necessary to stay competitive and
would place all domestic producers and
importers on an equal playing field with
each investing a fair share in promoting
processed raspberries. The Council may
provide credits of assessments for those
individuals who contribute to local,
regional, or State organizations engaged
in similar generic research, promotion,
and information programs as applied to
assessment due to the Council subject to
approval of the Secretary, for
expenditure on generic research,
promotion and information programs
conducted within the United States. If a
national processed raspberry program is
established, the WRRC and ORBC will
continue to fund processed raspberry
research in areas not likely to be the
focus of the national program.
The WRRC and ORBC programs are
not able to engage raspberry production
in other States or countries in a
meaningful way. The proposed program
is not intended to duplicate any State
program. Considerable attention is being
made to involve producers in
discussions regarding future program
development and administration and
what the State commissions would look
like prior to the initial referendum. It is
expected that farm related activities,
such as production research, would
continue to be funded by the State
organizations and market development
functions, such as nutritional research
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and marketing programs, would shift to
the Proposed Order.
The WRRC proposed that producers
and importers of less than 20,000
pounds annually of raspberries for
processing and processed raspberries
respectively, be exempt from
assessments. In addition, WRRC
proposed that a producer who operates
under an approved National Organic
Program (NOP) system plan, produces
only products eligible to be labeled as
100 percent organic under the NOP, and
is not a split operation, be exempt from
paying assessments under the Proposed
Order. An importer who imports only
products eligible to be labeled as 100
percent organic under the NOP, and is
not a split operation, would also be
exempt from paying assessments.
While the Department has performed
this Initial Regulatory Flexibility
Analysis regarding the impact of the
proposed rule on small entities, in order
to have as much data as possible for a
more comprehensive analysis of the
effects of this rule on small entities, we
are inviting comments concerning
potential effects. The Department is also
requesting comments regarding the
number and size of entities covered
under the Proposed Order.
Paperwork Reduction Act
In accordance with the Paperwork
Reduction Act of 1995 [44 U.S.C.
Chapter 35], AMS announces its
intention to request an approval of a
new information collection and
recordkeeping requirements for the
proposed Processed Raspberry Program.
Title: Advisory Committee or
Research and Promotion Background
Information.
OMB Number for background form
AD–755: (Approved under OMB No.
0505–0001).
Expiration Date of Approval: March
31, 2009.
Title: National Research, Promotion,
and Consumer Information Programs.
OMB Number: 0581–NEW.
Expiration Date of Approval: 3 years
from approval date.
Type of Request: New information
collection for research and promotion
programs.
Abstract: The information collection
requirements in the request are essential
to carry out the intent of the 1996 Act.
There will also be the additional
burden on producers and importers
voting in referenda. The referendum
ballot, which represents the information
collection requirement relating to
referenda, is addressed in a proposed
rule on referendum procedures which is
published separately in this issue of the
Federal Register.
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Under the proposed program, first
handlers would be required to collect
assessments from producers and file
reports with and submit assessments to
the Council. While the Proposed Order
would impose certain recordkeeping
requirements on first handlers,
information required under the
Proposed Order could be compiled from
records currently maintained. Such
records shall be retained for at least two
years beyond the marketing year of their
applicability.
Under the Proposed Order, importers
are responsible to pay assessments.
Importers must report the total quantity
of produce imported during the
reporting period and a record of each
importation of such product during
such period, giving quantity, date, and
port of entry. Under the Proposed Order,
Customs would collect assessments on
imported processed raspberries and
remit the funds to the Council.
An estimated 297 respondents would
provide information to the Council.
They would be 195 producers, 50
importers, 34 first handlers/processors,
5 organic producers and importers (for
exemption purposes), 2 foreign
producers, 10 certified organizations
(for nomination purposes), and 1 atlarge member. The estimated cost of
providing the information to the
Council by respondents would be
$9,141. This total has been estimated by
multiplying 277 total hours required for
reporting and recordkeeping by $33, the
average mean hourly earnings of various
occupations involved in keeping this
information. Data for computation of
this hourly rate was obtained from the
U.S. Department of Labor Statistics.
The Proposed Order’s provisions have
been carefully reviewed, and every
effort has been made to minimize any
unnecessary recordkeeping costs or
requirements, including efforts to utilize
information already submitted under
other raspberry programs administered
by the Department and other state
programs.
The proposed forms would require
the minimum information necessary to
effectively carry out the requirements of
the program, and their use is necessary
to fulfill the intent of the 1996 Act. Such
information can be supplied without
data processing equipment or outside
technical expertise. In addition, there
are no additional training requirements
for individuals filling out reports and
remitting assessments to the Council.
The forms would be simple, easy to
understand, and place as small a burden
as possible on the person required to file
the information.
Collecting information yearly would
coincide with normal industry business
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practices. The timing and frequency of
collecting information are intended to
meet the needs of the industry while
minimizing the amount of work
necessary to fill out the required reports.
The requirement to keep records for two
years is consistent with normal industry
practices. In addition, the information to
be included on these forms is not
available from other sources because
such information relates specifically to
individual producers, first handlers,
processors, foreign producers, and
importers who are subject to the
provisions of the 1996 Act.
Therefore, there is no practical
method for collecting the required
information without the use of these
forms.
Information collection requirements
that are included in this proposal
include:
(1) A Background Information Form
AD–755 (OMB Form No. 0505–0001).
Estimate of Burden: Public reporting
for this collection of information is
estimated to average 0.5 hours per
response for each Council nominee.
Respondents: Producers, importers,
foreign producers, and at-large nominee.
Estimated Number of Respondents: 26
(52 for initial nominations to the
Council, 26 in subsequent years).
Estimated Number of Responses per
Respondent: 1 every 3 years. (0.3)
Estimated Total Annual Burden on
Respondents: 26 hours for the initial
nominations to the Council and 3.9
hours annually thereafter.
(2) An Annual Report by Each First
Handler of Processed Raspberries.
Estimate of Burden: Public reporting
burden for this collection of information
is estimated to average 0.5 hours per
first handler reporting on processed
raspberries handled.
Respondents: First handlers.
Estimated Number of Respondents:
34.
Estimated Number of Responses per
Respondent: 1.
Estimated Total Annual Burden on
Respondents: 17 hours.
(3) An Exemption Application for
Producers and Importers Who Would Be
Exempt from Assessments.
Estimate of Burden: Public reporting
burden for this collection of information
is estimated to average 0.25 hours per
producers, or importer reporting on
processed raspberries produced or
imported. Upon approval of an
application, producers and importers
will receive exemption certification.
Respondents: Exempt producers and
importers.
Estimated Number of Respondents:
40.
Estimated Number of Responses per
Respondent: 1.
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Estimated Total Annual Burden on
Respondents: 10 hours.
(4) Application for Reimbursement of
Assessment.
Estimate of Burden: Public reporting
burden for this collection of information
is estimated to average 0.25 hours per
request for reimbursement.
Respondents: Importers.
Estimated Number of Respondents:
10.
Estimated Number of Responses per
Respondent: 1.
Estimated Total Annual Burden on
Respondents: 2.5 hours.
(5) A Requirement To Maintain
Records Sufficient To Verify Reports
Submitted Under the Order.
Estimate of Burden: Public
recordkeeping burden for keeping this
information is estimated to average 0.5
hours per record keeper maintaining
such records.
Recordkeepers: Producers, first
handlers, and importers.
Estimated Number of Recordkeepers:
297.
Estimated Total Recordkeeping
Hours: 148.5 hours.
(6) Application for Certification of
Organizations.
Estimate of Burden: Public
recordkeeping burden for this collection
of information is estimated to average
0.5 hours per application.
Respondents: Importers and foreign
producer organizations.
Estimated Number of Respondents:
10.
Estimated Number of Responses per
Respondent: 1.
Estimated Total Annual Burden on
Respondents: 5 hours.
(7) Nomination Appointment Form.
Estimate of Burden: Public
recordkeeping burden for this collection
of information is estimated to average
0.25 hours per application.
Respondents: Producers, importers,
and foreign producers.
Estimated Number of Respondents:
150.
Estimated Number of Responses per
Respondent: 1.
Estimated Total Annual Burden on
Respondents: 37.5 hours.
(8) Nomination Appointment Ballot.
Estimate of Burden: Public
recordkeeping burden for this collection
of information is estimated to average
0.25 hours per application.
Respondents: Producers and
importers.
Estimated Number of Respondents:
150.
Estimated Number of Responses per
Respondent: 1.
Estimated Total Annual Burden on
Respondents: 37.5 hours.
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(9) Application for Assessments
Credit.
Estimate of Burden: Public
recordkeeping burden for this collection
of information is estimated to average
0.25 hours per application.
Respondents: Producers.
Estimated Number of Respondents:
50.
Estimated Number of Responses per
Respondent: 1.
Estimated Total Annual Burden on
Respondents: 12.5 hours.
(10) Organic Exemption Form.
Estimate of Burden: Public
recordkeeping burden for this collection
of information is estimated to average
0.5 hours per exemption form.
Respondents: Producers and
importers.
Estimated Number of Respondents: 5.
Estimated Number of Responses per
Respondent: 1.
Estimated Total Annual Burden on
Respondents: 2.5 hours.
Request for Public Comment Under the
Paperwork Reduction Act
Comments are invited on: (a) Whether
the proposed collection of information
is necessary for the proper performance
of functions of the Proposed Order and
the Department’s oversight of the
Proposed Order, including whether the
information would have practical
utility; (b) the accuracy of the
Department’s estimate of the burden of
the proposed collection of information,
including the validity of the
methodology and assumptions used; (c)
the accuracy of the Department’s
estimate of the principal growing areas
in the United States for raspberries
destined for processing; (d) the accuracy
of the Department’s estimate of the
number of producers and first handlers
of processed raspberries that would be
covered under the program; (e) ways to
enhance the quality, utility, and clarity
of the information to be collected; and
(f) 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 concerning the
information collection requirements
contained in this action should
reference OMB No. 0581–NEW. In
addition, the docket number, date, and
page number of this issue of the Federal
Register also should be referenced.
Comments should be sent to the USDA
Docket Clerk, Research and Promotion
Branch, Fruit and Vegetable Programs,
AMS, USDA, 1400 Independence
Avenue, SW., Stop 0244, Room 0632–S,
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Washington, DC 20250–0244.
Comments may also be sent by facsimile
to (202) 205–2800 or electronically to
https://www.regulations.gov. All
comments received will be available for
public inspection during regular
business hours at the same address.
Comments regarding information
collection should also be sent to the
Office of Management and Budget at:
Desk Office for Agriculture, Office of
Information and Regulatory Affairs,
Office of Management and Budget, New
Executive Office Building, 725 17th
Street, NW., Room 725, Washington, DC
20503.
OMB is required to make a decision
concerning the collection of information
contained in this rule between 30 and
60 days after publication. Therefore, a
comment to OMB is best assured of
having its full effect if OMB receives it
within 30 days of publication.
Background
This rule proposes the
implementation of a Processed
Raspberry Promotion, Research, and
Information Order (Proposed Order).
The Department received the proposal
for a new Order from the Washington
Red Raspberry Commission (WRRC).
The Proposed Order is authorized
under the 1996 Act which authorizes
the Department to establish agricultural
commodity research and promotion
orders which may include a
combination of promotion, research,
industry information, and consumer
information activities funded by
mandatory assessments. These programs
are designed to maintain and expand
market and uses for agricultural
commodities. The Proposed Order
would provide for the continued
development and financing of a
coordinated program of research,
promotion, and information for
processed raspberries.
The 1996 Act provides for a number
of optional provisions that allow the
tailoring of orders for different
commodities. Section 516 of the 1996
Act provides permissive terms for
orders, and other sections provide for
alternatives. For example, section 514 of
the 1996 Act provides for orders
applicable to (1) producers (if producers
are subject to assessment), (2) first
handlers and others in the marketing
chain as appropriate, and (3) importers.
Section 516 states that an order may
include an exemption of de minimis
quantities of an agricultural commodity;
different payment and reporting
schedules; coverage of research,
promotion, and information activities to
expand, improve, or make more efficient
the marketing or use of an agricultural
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commodity in both domestic and
foreign markets; provision for reserve
funds; provision for credits for generic
and branded activities; and assessment
of imports.
In addition, section 518 of the 1996
Act provides for referenda to ascertain
approval of an order to be conducted
either prior to its going into effect or
within three years after assessments first
begin under the order. An order also
may provide for its approval in a
referendum based upon different voting
patterns. Section 515 provides for
establishment of a board or council from
among producers, first handlers and
others in the marketing chain as
appropriate, and importers, if imports
are subject to assessment.
This Proposed Order includes
provisions for both domestic and foreign
market expansion and improvement,
reserve funds, credit for generic
activities, and an initial referendum to
be conducted prior to the Proposed
Order going into effect. Approval would
be determined by a majority of
producers and importers voting for
approval. Specific procedures to be
followed in the referendum will be
published in a separate Federal Register
publication.
In accordance with the 1996 Act, the
Department would oversee the
program’s operations. In addition, the
1996 Act requires the Secretary to
conduct subsequent referenda: (1) Not
later than seven years after assessments
first begin under the Proposed Order; or
(2) at the request of the Council
established under the Proposed Order;
or (3) at the request of 10 percent or
more of the number of persons eligible
to vote. In addition to these criteria, the
1996 Act provides that the Secretary
may conduct a referendum at any time
to determine whether the continuation,
suspension, or termination of an order
or a provision of that order is favored by
persons eligible to vote.
The WRRC has requested that a
referendum be conducted every five
years to determine if producers and
importers want the program to continue.
However, the Department has increased
the time period to seven years to make
the Proposed Order consistent with
other programs. In addition, the
Proposed Order allows for the Secretary
to conduct a subsequent referendum if
10 percent or more of all eligible
producers of raspberries for processing
and importers of processed raspberries
request it; or if the Council requests a
referendum to be held; or the Secretary
may hold one at any time.
A national research and promotion
program for processed raspberries
would help the industry to address the
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many market problems it currently
faces. According to the WRRC, three
main factors currently affecting
processed raspberry sales, both here in
the domestic market and abroad, are
increasing production, increased
competition, and changing consumer
habits.
U.S. per capita consumption of
processed raspberries has inched
upward during the period 1991 to 2004,
reaching a high of 0.3 pounds per
person in 2003 and 2005. Over this
period, consumption has ranged from
0.1 to 0.3 pounds per capita. This
fluctuation is due to the effects of
population growth, demographics of
consumers, and the availability of
substitute or competitive products.
Profitability for producers of raspberries
for processing depends on maintaining
and increasing processed raspberry
consumption. With crop value flat over
this period, an organized market
development program that grew market
demand and increased per capita
consumption could improve the farm
gate value for all suppliers of processed
raspberries. The WRRC believes a
generic research and promotion program
would provide an equitable manner for
producers to share in the costs of
product development, nutrition and
marketing research, and processed
raspberry promotion.
According to the Department’s
Foreign Agricultural Service statistics,
from 2002–2006, imports of processed
raspberries have increased market share
in the U.S. The statistics also suggests
that the total market demand in the U.S.
is continuing to grow, albeit at a rate
slower than supply. The industry
believes that the proposed processed
raspberry program would increase
demand, grow the market in the
aggregate for all suppliers, and increase
the value of processed raspberries at the
grower level.
The processed raspberry industry is
facing strong competition in the
marketplace from both indirect and
direct competitors. Like all food
products, processed raspberries must
compete for a share of the consumer
dollar. As competition in the
supermarket increases, the processed
raspberry industry must work harder to
gain its share of consumer attention at
a time when the industry’s competitors
expand their promotional activities.
The WRRC was established in 1976 as
a State-government entity authorized by
a State marketing order which requires
producers of all varieties of raspberries
pay assessments to promote raspberry
awareness, consumption, and to
conduct research programs to study pest
control and varietals development.
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There are over 40 different suppliers of
raspberry products who make up the
WRRC. These members pay the
mandatory one-half cent per pound to
fund promotion efforts directed to both
consumer and industrial users.
Similar to WRRC, Oregon also has a
state raspberry commission, the Oregon
Raspberry and Blackberry Commission
(ORBC). The WRRC and ORBC both
administer State marketing orders,
which require all producers of
raspberries to pay assessments to
support the health of their respective
industries. According to WRRC, the two
commissions have developed a good
working relationship with each other
over the years. Both the WRRC and
ORBC invest funds into research
programs at their land grant universities
and other research institutions to study
disease, pest control, and varietal
development. In addition to developing
and funding production research, they
also fund marketing and promotion
programs and seek to foster education
and communication between producers.
However, according to the WRRC,
WRRC, ORBC and international
raspberry organizations have not been
able to generate the funds necessary to
support the marketing efforts needed to
help expand processed raspberry
consumption and increase the demand
for processed raspberries. In order to
manage increased production, increased
competition, and changing consumer
habits, the WRRC believes that a more
extensive marketing program is needed.
The WRRC and ORBC believe that a
national research and promotion
program would fund the promotional
aspect necessary to stay competitive and
would place all domestic producers and
importers on an equal playing field with
each investing a fair share in promoting
processed raspberries. The Council may
provide credits of assessments for those
individuals who contribute to local,
regional, or State organizations engaged
in similar generic research, promotion,
and information programs as applied to
assessment due to the Council subject to
approval of the Secretary, for
expenditure on generic research,
promotion and information programs
conducted within the United States. If a
national processed raspberry program is
established, the WRRC and ORBC will
continue to fund processed raspberry
research in areas not likely to be the
focus of the national program.
In 2006, an informal strategic review
was conducted by the WRRC and the
Raspberry Industry Development
Council, who represents raspberry
growers in British Columbia, Canada.
During the strategic review, public and
private sector industry representatives
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and food processors were interviewed
seeking answers to the challenging
dynamics facing the raspberry industry.
The participants in the raspberry
industry concluded that demand and
market growth could best be
accomplished by: (1) Analyzing existing
nutritional research and conducting
new research on the positive nutritional
qualities of raspberries; (2)
communicating raspberries nutritional
advantages to consumers, food
processors, and food industry in simple
terms; and (3) increasing the number of
new raspberry products and the use of
raspberries in existing products.
The raspberry industry recognizes
that there currently exists a strong
scientific basis to support the health
benefits of raspberries, including
processed raspberries, but the current
data has not been effectively
communicated to food processors or
consumers.
According to the WRRC, market
growth for processed raspberries has
been impeded by disorganized and
fractured marketing with no clear and
consistent message, and by a dearth of
merchandising and new product
development. Additionally,
scientifically validated health-based
research could have important
marketing ramifications, but unless the
findings are accompanied by a clear
consistent marketing message to
communicate significant results, there
will be little or no impact on increasing
processed raspberry consumption.
In addition, the raspberry industry
understands that consumers need to
know about foods that are good for their
health. According to the WRRC, it is
widely accepted that North Americans
are increasingly concerned with
improving their quality of life, and
raspberries are positioned to respond to
this trend. Consumers will not sacrifice
flavor or enjoyment, and they are
increasingly making food choices based
on how they affect their future health.
Aging demographics are creating
demand for nutraceutical, health
maintenance, and disease prevention
attributes in food products. Consumers
want to maintain health and vitality as
they age. Foods such as raspberries can
be positively linked to achieving this
desire.
WRRC stated that given processed
raspberries low profile and stagnant
market, the raspberry industry must
increase awareness of the possible
health attributes of raspberries, explore
new product applications, become
established in new domestic market
niches, and develop new products if it
is to realize its potential for market
development. WRRC believes that these
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challenges facing the processed
raspberry industry to grow the market
are not insurmountable. Through a
generic research and promotion
program, the raspberry industry would
be able to: Capitalize more effectively on
the possible health benefits of
raspberries; improve demand and
strengthen their position in the
marketplace; maintain and expand
existing domestic and foreign markets;
and develop new markets and uses for
processed raspberries.
Additional funds generated through a
national program would allow the
processed raspberry industry to take
advantage of a wide range of
promotional opportunities. At a
minimum, increased funding would
allow the industry to expand its current
consumer, food service, and food
manufacturer promotion efforts.
Section 516(f) of the 1996 Act allows
an order to authorize the levying of
assessments on imports of the
commodity covered by the program or
on products containing that commodity,
at a rate comparable to the rate
determined for the domestic agricultural
commodity covered by the order. WRRC
has proposed to assess imports as well
as domestic product.
The assessment levied on
domestically-produced and imported
processed raspberries would be used to
pay for promotion, research, and
consumer and industry information as
well as administration, maintenance,
and functioning of the Council.
Expenses incurred by the Secretary in
implementing and administering the
Proposed Order, including referenda
costs, also would be paid from
assessments. Assessments would be
paid by producers and importers of
20,000 or more pounds of raspberries for
processing or processed raspberries
respectively. The number of entities
assessed under the program would be
around 245. Estimated revenue is
expected at $1.2 million of which 43
percent is expected from imported
product and 57 percent from domestic
product.
Section 516(e)(1) and (2) of the 1996
Act allows the Secretary to provide
credits of assessments for generic and
branded activities. The WRRC has
elected to propose credits for generic
activities. The Proposed Order gives the
Council authority to provide credits of
assessments for those individuals who
contribute to other similar generic
research, promotion, and information
programs at the State, regional, or local
level subject to the approval of the
Secretary. The activities must be generic
in nature and may not promote a
particular State or region’s product. No
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credit will be given for funds expended
for administrative purposes.
Under the Proposed Order ‘‘first
handler’’ would be defined as any
person (excluding a common or contract
carrier) receiving raspberries for
processing from producers in a calendar
year and who, as owner or agent, ships
or causes processed raspberries to be
shipped as specified in the Proposed
Order. This definition includes those
engaged in the business of buying,
selling and/or offering for sale,
receiving, packing, grading, marketing,
or distributing raspberries in
commercial quantities. This definition
excludes a retailer, except a retailer who
purchases or acquires from, or handles
on behalf of, any producer of raspberries
for processing. The term first handler
includes a producer who handles or
markets raspberries of the producer’s
own production. In addition, ‘‘handle’’
would be defined to mean to process,
package, sell, transport, purchase or in
any other way place processed
raspberries, or cause them to be placed,
in the current of commerce. This term
includes selling processed raspberries
imported into the United States. This
term does not include the transportation
of fresh raspberries by the producer to
a handler or transportation by a
commercial carrier of fresh raspberries
and organic raspberries, whether
processed or unprocessed for the
account of the first handler or producer.
First handlers would be responsible
for the collection of assessments from
producers of raspberries for processing.
In the case of the producer acting as its
own first handler, the producer would
be required to collect and remit its
individual assessments. Such
assessments would be levied at a rate of
up to one cent per pound, with the
initial assessment rate being one cent
per pound, from the producer and
payment would be remitted by the
collecting first handler to the Council.
First handlers would be required to
maintain records for each producer for
whom raspberries for processing are
handled, including raspberries
produced by the first handler. In
addition, first handlers would be
required to file reports regarding the
collection, payment, or remittance of the
assessments to the Council.
The Proposed Order would define
importer as any person importing
20,000 or more pounds of processed
raspberries into the United States in a
calendar year as a principal or as an
agent, broker, or consignee of any
person who produces or handles
processed raspberries outside of the
United States for sale in the United
States, and who is listed in the import
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records as the importer of record for
such processed raspberries.
Assessments on imported processed
raspberries would be collected by
Customs at the time of entry into the
United States and remitted to the
Council. If Customs does not collect an
assessment from an importer, the
importer would be responsible for
paying the assessment directly to the
Council. Section 516 (f) of the 1996 Act
allows assessments on imported product
comparable to the assessment on
domestic product. Accordingly, the
assessment rate for imported processed
raspberries would be up to one cent per
pound, with the initial rate being one
cent per pound.
Persons failing to remit assessments
due in a timely manner may also be
subject to actions under the Federal debt
collection procedures as set forth in 7
CFR 3.1 through 3.36 for all research
and promotion programs administered
by the Department [60 FR 12533].
Interest and late payment are also
provided for in this Proposed Order.
The Proposed Order allows the
Council to recommend to the Secretary
an increase or decrease to the
assessment rate, if it deems appropriate
and if approved by at least one vote
more than 50 percent of the total votes
of members present at a meeting of the
Council. The initial assessment will be
levied at a rate of one cent per pound
on all processed raspberries. Thereafter,
the assessment rate will be levied at a
rate of up to one cent per pound on all
processed raspberries. The assessment
rate will be reviewed, and increased or
decreased as recommended by the
Council and approved by the Secretary
after the first referendum is conducted
as stated in § 1208.71 (b). Such an
increase or decrease may occur not more
than once annually. Any change in the
assessment rate shall be subject to
rulemaking by the Department, and will
be reviewed, and increased or decreased
by the Secretary through rulemaking as
recommended by the Council. Any
change in the assessment rate shall be
announced by the Council at least 30
days prior to going into effect. The
maximum assessment rate authorized is
one cent per pound.
All information obtained from
persons subject to this Proposed Order
as a result of recordkeeping and
reporting requirements would be kept
confidential by all officers, employees,
and agents of the Department and of the
Council. This information may be
disclosed only if the Secretary considers
the information relevant, and the
information is revealed in a judicial
proceeding or administrative hearing
brought at the direction or on the
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request of the Secretary or to which the
Secretary or any officer of the
Department is a party. Other exceptions
for disclosure of confidential
information would include the issuance
of general statements based on reports
or on information relating to a number
of persons subject to an order, if the
statements do not identify the
information furnished by any person or
the publication; and by direction of the
Secretary of the name of any person
violating the Proposed Order and a
statement of the particular provisions of
the Proposed Order violated by the
person.
Under the Proposed Order producers
and importers of less than 20,000
pounds a year of raspberries for
processing and processed raspberries
respectively, are exempt from paying
assessments. In addition, a producer
who operates under an approved
National Organic Program (NOP) system
plan, produces only products eligible to
be labeled as 100 percent organic under
the NOP, and is not a split operation, is
exempt from the paying assessments
under the Proposed Order. An importer
who imports only products eligible to be
labeled as 100 percent organic under the
NOP, and is not a split operation, also
is exempt from paying assessments.
As the Proposed Order provides,
producers and importers will be
responsible for paying assessments,
however, the collection of assessments
will be the responsibility of the first
handler receiving the raspberries for
processing or Customs for imported
product. The Proposed Order states that
producers, handlers, and importers will
also be responsible for filing reports and
maintaining records regarding the
amount of raspberries that were
delivered for processing and the
assessments collected.
First handlers would be required to
file reports and maintain records on the
total raspberries that were delivered for
processing from producers or the
handling for their own product, on the
total number of pounds handled;
number of pounds on which an
assessment was collected; name and
address of the persons from whom the
first handler collected assessments on
each pound handled; and the date the
collection of assessments was made on
each pound handled. In addition,
producers would be required to provide
the Council periodically such
information as may be required by the
Council. The Council would
recommend to the Department specific
reporting periods and dates when such
reports are due to the Council.
Unless otherwise provided by
Customs, importers would be required
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to report the total amount of processed
raspberries imported during such
period, including the quantity, date,
country of origin, and port of entry.
Under the Proposed Order, Customs
would collect assessments on imported
processed raspberries and remit the
funds to the Council.
Each first handler, producer, and
importer of processed raspberries,
including those who would be exempt
from paying assessments under the
Proposed Order, would be required to
maintain any books and records
necessary to carry out the provisions of
the Proposed Order for two years
beyond the fiscal period to which they
apply. This would include the books
and records necessary to verify any
required reports. These books and
records would be made available to the
Council’s or Department’s employees or
agents during normal business hours for
inspection if necessary.
Section 515 of the 1996 Act provides
for the establishment of a board or
council consisting of producers, first
handlers, and others in the marketing
chain, as appropriate. The Department
would appoint members to the Council
from nominees submitted in accordance
with a Proposed Order. The Proposed
Order would provide for the
establishment of the Processed
Raspberry Promotion, Research, and
Information Order, under AMS
oversight. The WRRC proposed that the
Council be composed of thirteen
members and their alternates. The
Department made a slight revision to the
distribution of members originally
proposed by the WRRC to comply with
geographical distribution of the
production as required under the 1996
Act. The proposed Council membership
is as follows: Six processed raspberry
producer members from States
producing a minimum of three million
pounds of raspberries delivered for
processing; one processed raspberry
producer member representing all other
States that produce less than the
minimum of three million pounds of
raspberries delivered for processing;
three processed raspberry importer
members; two foreign producers from
countries exporting a minimum of three
million pounds of raspberries for
processing to the U.S. based on a threeyear average; and one at-large member
recommended by the Council.
Under the Proposed Order, the
Council members and alternates will
serve for a term of three years and be
able to serve a maximum of two
consecutive terms. When the Council is
first established, four producer
members, two importers, one at-large
member, and one foreign producer and
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their respective alternates will be
assigned initial terms of three years;
and, three producer members, one
importer members, and one foreign
producer member and their respective
alternates will serve an initial term of
two years. Thereafter, each of these
positions will carry a full three-year
term. Members serving an initial term of
two years will be eligible to serve a
second three year term to complete their
eligibility. Council nominations and
appointments will take place in two out
of every three years. Each term of office
will end on December 31, with new
terms of office beginning on January 1.
Producers and importers would
represent those entities in the United
States. The United States would be
defined to include collectively the 50
States, the District of Columbia, the
Commonwealth of Puerto Rico and the
territories and possessions of the United
States.
The nominations for the six producer
and alternate members from States
producing a minimum three-year
average of three million pounds of
raspberries delivered for processing will
be submitted to the Council in the
following manner: (1) For those States
that have a State raspberry commission
or State marketing order, the State
commission or committee will nominate
producers and their alternates to serve;
or (2) for those States that do not have
a State commission or State marketing
order, the Council will seek
nominations from the State Departments
of Agriculture for members and
alternates from the specific States.
For those States producing a
minimum three-year average of three
million pounds of raspberries delivered
for processing that have a State
raspberry commission or State
marketing order, the State commission
or committee nominations will be
returned to the Council and placed on
a ballot which will then be sent to
producers in the State for a vote. The
nominee for member will have received
the highest number of votes cast. The
person with the second highest number
of votes cast will be the nominee for
alternate. The persons with the third
and fourth place highest number of
votes cast will be designated as
additional nominees for consideration
by the Secretary. Once the Council has
received all of the nominations from
commissions or committees, the
information will be submitted to the
Secretary for appointment. Nominations
for the initial Council will be handled
by the Department. Subsequent
nominations will be handled by the
Council staff and shall be submitted to
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the Secretary not less than 90 days prior
to the expiration of the term of office.
If the Department determines that
there are no State raspberry
commissions or State marketing orders
from States producing a minimum
three-year average of three million
pounds of raspberries delivered for
processing, the Council will seek
nominations from the State Departments
of Agriculture for members and
alternates from the specific States who
may directly submit nominations to the
Department for the initial Council.
Subsequent nominations shall be
submitted to the Council and will be
handled by the Council staff who in
turn shall submit those nominations to
the Secretary not less than 90 days prior
to the expiration of the term of office.
The distribution of the six producer
and alternate seats will be proportional
to the percentage determined by the
average of the total pounds produced
and delivered to processors for
processing over the previous three years
divided by the average total pounds
produced over the previous three years.
For example, if Washington State and
Oregon are the only two States
producing a minimum of 3 million
pounds each, and Washington’s
previous three year average is 62.4
million pounds and Oregon’s previous
three year average is 6.7 million pounds
with the average total pounds for the
previous three years being 69.1 million
pounds, Washington would have 90
percent of the production and Oregon
would have 10 percent of the
production. Therefore, Washington
would obtain five out of the six seats
and Oregon would receive one seat.
The nomination for the one raspberry
producer of raspberries for processing
and alternate member, who represents
all other States producing less than a
minimum three year average of three
million pounds of raspberries delivered
for processing, will constitute a region
and the nominations will be submitted
to the Council in the following manner:
(1) For those States that have a State
raspberry commission or State
marketing order, the State commission
or committee will nominate producers
and their alternates to serve; or (2) for
those States that do not have a State
commission or State marketing order,
the Council will seek nominations from
the State Departments of Agriculture for
the member and alternate from the
specific States.
For those States producing less than
a minimum three year average of three
million pounds of raspberries delivered
for processing that have a State
raspberry commission or State
marketing order, the State commission
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or committee nominations will be
returned to the Council and placed on
a ballot which will then be sent to
producers in the Region for a vote. The
nominee for member will have received
the highest number of votes cast. The
person with the second highest number
of votes cast will be the nominee for
alternate. The persons with the third
and fourth place highest number of
votes cast will be designated as
additional nominees for consideration
by the Secretary. Once the Council has
received all of the nominations from
commissions or committees, the
information will be submitted to the
Secretary for appointment. Nominations
for the initial Council will be handled
by the Department. Subsequent
nominations will be handled by the
Council staff and shall be submitted to
the Secretary not less than 90 days prior
to the expiration of the term of office.
If the Department determines that
there are no State raspberry
commissions or State marketing orders
from States producing less than a
minimum three year average of three
million pounds of raspberries delivered
for processing, the Council will seek
nominations from the State Departments
of Agriculture for members and
alternates from the specific States. The
State Departments of Agriculture would
have the opportunity to participate in
nomination caucuses and will directly
submit as a group a single slate of
nominations to the Department for the
producer position and the producer
alternate position on the Council for the
initial Council. Subsequent nominations
shall be submitted to the Council and
will be handled by the Council staff
who in turn shall submit those
nominations to the Secretary not less
than 90 days prior to the expiration of
the term of office.
Only producers from States that
deliver raspberries for processing and
pay assessments under the program are
eligible for nomination and election to
the Council. Average production will be
based upon Department production data
for the initial nomination and
production figures generated by either
the Council or the Department
thereafter.
Nominations for the three processed
raspberry importer member positions
and their alternates will be made by
qualified national organizations
representing importers. Two nominees
for each member and each alternate
position will be submitted to the
Secretary for consideration.
All qualified national organizations
representing importers would have the
opportunity to participate in
nomination caucuses and will submit as
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a group a single slate of nominations to
the Secretary for the importer positions
and the importer alternate positions on
the Council.
Eligible organizations must submit
nominations to the Department not less
than 90 days prior to the expiration of
the term of office. To become a qualified
national organization representing
importers under the Proposed Order,
each such organization would be
required to meet the following criteria:
(1) Any organization representing
importers must represent a substantial
number of importers who market a
substantial volume of raspberries for
processing; (2) it must have a history of
stability and permanency and have been
in existence for more than one year; (3)
it must promote processed raspberry
importers’ welfare; and (4) it must
derive a portion of its operating funds
from importers.
If the Department determines that
there are no qualified national
organizations representing importers,
individuals who have paid their
assessments to the Council in the most
recent fiscal year or for the initial
Council those that importers processed
raspberries into the U.S. could directly
submit nominations to the Department
for the initial Council. Subsequent
nominations shall be submitted to the
Council and will be handled by the
Council staff who in turn shall submit
those nominations to the Secretary not
less than 90 days prior to the expiration
of the term of office.
Nominations for the two foreign
producer member positions and their
alternates will be made by qualified
organizations representing foreign
producers. Two nominees for each
member and each alternate position will
be submitted to the Secretary for
consideration.
All qualified organizations
representing foreign producers would
have the opportunity to participate in
nomination caucuses and will submit as
a group a single slate of nominations per
country to the Secretary for foreign
producer positions and the foreign
producer alternate positions on the
Council.
Eligible organizations must submit
nominations to the Department not less
than 90 days prior to the expiration of
the term of office. To become a qualified
organization representing foreign
producers under the Proposed Order,
each such organization would be
required to meet the following criteria:
(1) Any organization representing
foreign producers must represent a
substantial number of foreign producers
who market or produce a substantial
volume of raspberries for processing; (2)
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it must have a history of stability and
permanency and have been in existence
for more than one year; (3) it must
promote processed raspberry foreign
producers’ welfare; (4) it must derive a
portion of its operating funds from
foreign producers; and (5) it must be
from a country exporting a minimum of
three million pounds of raspberries for
processing to the U.S. based on a threeyear average.
If the Department determines that
they are no qualified organizations
representing foreign producer interest,
individual foreign producers may
directly submit nominations to the
Department for the initial Council.
Subsequent nominations shall be
submitted to the Council and will be
handled by the Council staff who in
turn shall submit those nominations to
the Secretary not less than 90 days prior
to the expiration of the term of office.
In recommending the at-large member
and alternate, the Council can give
consideration to nutrition health
professionals and others interested in
the raspberry industry. Nominations for
the at-large member and alternate will
be conducted at a Council meeting by
the Council staff and shall be submitted
by the Council to the Secretary for
approval. Nominations for the initial
Council will be handled by the
Department. Subsequent nominations
will be handled by the Council staff and
shall be submitted to the Secretary not
less than 90 days prior to the expiration
of the term of office.
The 1996 Act provides that to ensure
fair and equitable representation, the
composition of a board or council shall
reflect the geographic distribution of the
production of the agriculture
commodity in the United States and the
quantity or value of the agriculture
commodity imported into the United
States. The Order states that at least
once every five years, but not more
frequently than once every three years,
the Council will review the geographic
distribution of United States production
of raspberries for processing and the
quantity and source of processed
raspberry imports. If warranted, the
Council will recommend to the
Secretary that membership on the
Council be altered to reflect any changes
in geographic distribution of domestic
raspberry production and the quantity
of imports. Also, if the level of imports
increases, importer members and
alternates may be added to the Council.
However, the foreign producer seats will
remain the same regardless of the
volume of imports from importing
countries.
Upon implementation of the Proposed
Order and pursuant to the 1996 Act, the
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Council would at least once in each
five-year period, but not more
frequently than once in each three-year
period review the geographical
distribution of processed raspberries in
the United States and the quantity of
processed raspberries imported into the
United States and make a
recommendation to the Secretary after
considering the results of its review and
other information it deems relevant
regarding the reapportionment of the
Council.
The Proposed Order indicates the
Council may recommend to the
Department that a member be removed
from office if the member consistently
refuses to perform his or her duties or
engages in dishonest acts or willful
misconduct. The Department may
remove the member if the Department
finds that the Council’s
recommendation demonstrates cause.
In the event any member or alternate
of the Council ceases to be a member of
the category from which the member
was appointed to the Council, such
position will automatically become
vacant. Should any member position
become vacant the alternate of that
member shall automatically assume the
position of member.
Under the Proposed Order, a quorum
is met when a majority (one more than
half) of the Council members is present.
An alternate will be counted for the
purpose of determining a quorum only
if the members for whom the person is
the alternate is absent or disqualified
from participating. Also, under the
Proposed Order, a change for any matter
put to the Council will carry if
supported by one vote more than 50
percent of the total votes represented by
the Council members present.
Under the Proposed Order, the
chairperson of the Council must reside
in the United States and the Council
will be located in the United States.
The Proposed Order states that the
Council may not expend for
administration, maintenance, and
functioning of the Council in any fiscal
year an amount that exceeds 15 percent
of the assessments and other income
received by the Council for that fiscal
year.
The Department modified the WRRC’s
proposal to make it consistent with the
1996 Act and to provide clarity,
consistency, and correctness with
respect to word usage and terminology.
The Department also changed the
proposal to make it consistent with
other similar national research and
promotion programs. Changes made by
the Department to the WRRC’s proposal
include: (1) To add the term processor
which is presented in WRRC’s proposal;
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(2) to specify the initial terms of office
for the Council and to stagger the terms
for future years; (3) to modify the
criteria under nominations if a member
or alternate is no longer affiliated with
the organization he or she was
nominated to represent; (4) to modify
the four harmonized tariff codes that
were presented and reduce it to one
harmonized tariff code; (5) to clarify the
nomination process for obtaining
nominees for both States with State
commissions or committees and those
that do not have State commissions; (6)
to clarify the nomination process for
obtaining nominees from the minor
States and/or region in which the
Council will handle instead of the
WRRC; (7) to add reports that may be
required by producers and importers; (8)
to add the provision under subsequent
referenda that the Council may request
a referendum be held as stated in the
1996 Act; (9) to clarify the staggered
terms of office and that members serving
a two year term will only be eligible to
serve a second term; (10) to clarify
under the procedures that a quorum at
a Council meeting will be a majority of
the Council members and alternates
participating in the meeting; (11) to
clarify that any funds borrowed by the
Council shall be expended for startup
costs and capital outlays and they are
limited to the first year of operation of
the Council as stated in the 1996 Act;
(12) to add language concerning the
exemption procedures for organic
processed raspberries; (13) to add
language concerning the reports that the
Council may require of producers and
importers; (14) to eliminate the word
red from raspberries to conform with the
harmonized tariff code; (15) to eliminate
voting by proxy; (16) to add language
under the procedures requiring that the
chairperson and the treasurer reside in
the United States; (17) to add language
under the procedures requiring all
Council meetings to be held in the
United States; (18) to add language
under the procedures requiring the
Council office to be located in the
United States; (19) to change the
Council’s name from United States
Raspberry Council to the National
Processed Raspberry Council; (20) to
add language under the subsequent
referendum that complies with the 1996
Act concerning the Council requesting
the Secretary to conduct a referendum;
(21) to add that importer nominations
will be handled by qualified national
organizations; (22) to add that foreign
producer nominations will be handled
by qualified organizations; (23) to add
nomination procedures for States
producing a minimum of three million
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pounds of raspberries delivered for
processing, and whose State does not
have a State commission or State
marketing order; (24) to add nomination
procedures for States producing less
than a minimum three year average of
three million pounds of raspberries
delivered for processing, and whose
State does not have a State commission
or State marketing order; (25) to add the
qualification process to become a
qualified organization representing
importer or foreign producer interests;
and (26) to make a slight revision to the
distribution of members originally
proposed by the WRRC to comply with
geographical distribution of the
production as required under the 1996
Act.
The Proposed Order is summarized as
follows: 1208.1 through 1208.29 of the
Proposed Order define certain terms,
such as processed raspberries, first
handler, and importer, which are used
in the Proposed Order.
Sections 1208.40 through 1208.48
include provisions relating to the
Council. These provisions cover
establishment and membership,
nominations and appointments, term of
office, vacancies, alternate members,
and procedures for conducting Council
business, compensation and
reimbursement, and powers and duties
of the Council, and prohibited activities.
The Council is the governing body
authorized to administer the Proposed
Order through the implementation of
programs, plans, projects, budgets, and
contracts to promote and disseminate
information about processed
raspberries, subject to oversight of the
Secretary.
Sections 1208.50 through 1208.56
cover budget review and approval;
financial statements; authorize the
collection of assessments; specify how
assessments would be used, including
reimbursement of necessary expenses
incurred by the Council for the
performance of its duties and expenses
incurred for the Department’s oversight
responsibilities; specify who pays the
assessment and how; authorize the
imposition of a late-payment charge on
past-due assessments; outline
exemption procedures; address
programs, plans, and projects; require
the Council to periodically conduct an
independent review of its overall
program; and address patents,
copyrights, trademarks, information,
publications, and product formulations
developed through the use of
assessment funds.
The proposed assessment rate is up to
one cent per pound for domestic
processed raspberries and imported
processed raspberries, with the initial
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assessment rate being one cent per
pound. The assessment rate will be
reviewed, and increased or decreased as
recommended by the Council and
approved by the Secretary after the first
referendum is conducted as stated in
§ 1208.71 (a). Such an increase or
decrease may occur not more than once
annually and may not exceed the initial
assessment rate of one cent per pound.
Any change in the assessment rate shall
be subject to rulemaking by the
Department, and will be reviewed, and
increased or decreased by the Secretary
through rulemaking as recommended by
the Council. Any change in the
assessment rate shall be announced by
the Council at least 30 days prior to
going into effect. The maximum
assessment rate authorized is one cent
per pound.
The assessment rate may be raised or
lowered at a rate greater than one cent
after the initial continuance referendum
which would be conducted after the
program has been in operation five
years. A referendum to approve the new
assessment rate or for any other change
is not required.
Sections 1208.60 through 1208.62
concerns reporting and recordkeeping
requirements for persons subject to the
Proposed Order and protect the
confidentiality of information from such
books, records, or reports.
Sections 1208.70 through 1208.78
describe the rights of the Secretary;
address referenda; authorize the
Secretary to suspend or terminate the
Proposed Order when deemed
appropriate; prescribe proceedings after
termination; address personal liability,
separability, and amendments; and
provide OMB control numbers.
While the proposal set forth below
has not received the approval of the
Department, it is determined that this
Proposed Order is consistent with and
will effectuate the purposes of the 1996
Act.
For the Proposed Order to become
effective, it must be approved by a
majority of producers and importers
voting for approval in the referendum.
Referendum procedures will be
published separately in this issue of the
Federal Register.
A 60-day comment period is provided
to allow interested persons to respond
to this proposal. All written comments
received in response to this rule by the
date specified would be considered
prior to finalizing this action.
List of Subjects in 7 CFR Part 1208
Administrative practice and
procedure, Advertising, Consumer
information, Marketing agreements,
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Raspberry promotion, Reporting and
recordkeeping requirements.
For the reasons set forth in the
preamble, it is proposed that Title 7,
Chapter XI of the Code of Federal
Regulations be amended by adding part
1208 to read as follows:
PART 1208—PROCESSED
RASPBERRY PROMOTION,
RESEARCH, AND INFORMATION
ORDER
Subpart A—Processed Raspberry
Promotion, Research, and Information
Order
Definitions
Sec.
1208.1 Act.
1208.2 Conflict of interest.
1208.3 Crop year.
1208.4 Customs.
1208.5 Department.
1208.6 First handler.
1208.7 Fiscal period.
1208.8 Foreign producer.
1208.9 Handle.
1208.10 Importer.
1208.11 Information.
1208.12 Market or marketing.
1208.13 National Processed Raspberry
Council.
1208.14 Order.
1208.15 Part and subpart.
1208.16 Person.
1208.17 Processed raspberries.
1208.18 Processor.
1208.19 Producer.
1208.20 Promotion.
1208.21 Qualified national organization
representing importer interests.
1208.22 Qualified organization representing
foreign producer interests.
1208.23 Raspberries.
1208.24 Research.
1208.25 Secretary.
1208.26 State.
1208.27 Suspend.
1208.28 Terminate.
1208.29 United States.
National Processed Raspberry Council
1208.40
1208.41
1208.42
1208.43
1208.44
1208.45
1208.46
1208.47
1208.48
Establishment and membership.
Nominations and appointments.
Term of office.
Vacancies.
Alternate members.
Procedure.
Compensation and reimbursement.
Powers and duties.
Prohibited activities.
Expenses and Assessments
1208.50 Budget and expenses.
1208.51 Financial statements.
1208.52 Assessments.
1208.53 Exemption and reimbursement
procedures.
1208.54 Programs, plans, and projects.
1208.55 Independent evaluation.
1208.56 Patents, copyrights, trademarks,
information, publications, and product
formulations.
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Reports, Books, and Records
1208.60 Reports.
1208.61 Books and records.
1208.62 Confidential treatment.
business of buying, selling and/or
offering for sale, receiving, packing,
grading, marketing, or distributing
processed raspberries in commercial
quantities. This definition excludes a
retailer, except a retailer who purchases
or acquires from, or handles on behalf
of, any producer of raspberries for
processing. The term first handler
includes a producer who handles or
markets raspberries for processing of the
producer’s own production.
Miscellaneous
1208.70 Right of the Secretary.
1208.71 Referenda.
1208.72 Suspension and termination.
1208.73 Proceedings after termination.
1208.74 Effect of termination or
amendment.
1208.75 Personal liability.
1208.76 Separability.
1208.77 Amendments.
1208.78 OMB control numbers.
§ 1208.7
Subpart B—[Reserved]
Authority: 7 U.S.C. 7411–7425; 7 U.S.C.
7401.
§ 1208.8
Subpart A—Processed Raspberry
Promotion, Research, and Information
Order
Definitions
§ 1208.1
Act.
Act means the Commodity Promotion,
Research, and Information Act of 1996
(7 U.S.C. 7411–7425), and any
amendments thereto.
§ 1208.2
Conflict of interest.
Conflict of interest means a situation
in which a member or employee of the
Council has a direct or indirect financial
interest in a person who performs a
service for, or enters into a contract
with, the Council for anything of
economic value.
§ 1208.3
Crop year.
Crop year means the 12-month period
from April 1 to March 31 of the
following year or such other period
approved by the Secretary.
§ 1208.4
Customs.
Customs means the United States
Customs and Border Protection or U.S.
Customs Service, an agency of the
United States Department of Homeland
Security.
§ 1208.5
Department.
Department means the United States
Department of Agriculture or any officer
or employee of the Department to whom
authority has heretofore been delegated,
or to whom authority may hereafter be
delegated, to act in the Secretary’s stead.
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§ 1208.6
First handler.
First handler means any person
(excluding a common or contract
carrier) receiving raspberries for
processing from producers in a calendar
year and who as owner or agent, ships
or causes processed raspberries to be
shipped as specified in the Order. This
definition includes those engaged in the
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Fiscal period.
Fiscal period means a calendar year
from April 1 through March 31 both
dates inclusive, or such other period as
approved by the Secretary.
Foreign producer.
Foreign producer means any person:
(a) Who is engaged in the production
and sale of raspberries for processing
outside of the United States and who
owns, or shares the ownership and risk
of loss of raspberries for processing for
sale in the U.S. market; or
(b) Who is engaged, outside of the
United States, in the business of
producing, or causing to be produced,
processed raspberries beyond the
person’s own family use and having
value at first point of sale.
§ 1208.9
Handle.
Handle means to pack, process, sell,
transport, purchase, or in any other way
to place or cause processed raspberries
to which one has title or possession to
be placed in the current of commerce.
Such term shall not include the
transportation or delivery of raspberries
for processing by the producer thereof to
a handler.
§ 1208.10
Importer.
Information.
Information means information and
programs that are designed to increase
efficiency in processing and to develop
new markets, marketing strategies,
increase market efficiency, and
activities that are designed to enhance
the image of raspberries on a national
basis. These include:
(a) Consumer information, which
means any action taken to provide
information to, and broaden the
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Market or marketing.
(a) Marketing means the sale or other
disposition of processed raspberries in
interstate, foreign or intrastate
commerce.
(b) To market means to sell or
otherwise dispose of processed
raspberries in any channel of commerce.
§ 1208.13
Council.
National Processed Raspberry
National Processed Raspberry Council
or such other name as recommended by
the Council and approved by the
Department means the administrative
body established pursuant to § 1208.40.
§ 1208.14
Order.
Order means an order issued by the
Secretary under section 514 of the Act
that provides for a program of generic
promotion, research, and information
regarding agricultural commodities
authorized under the Act.
§ 1208.15
Importer means any person importing
20,000 pounds or more of processed
raspberries into the United States in a
calendar year as a principal or as an
agent, broker, or consignee of any
person who produces or handles
processed raspberries outside of the
United States for sale in the United
States, and who is listed in the import
records as the importer of record for
such processed raspberries.
§ 1208.11
understanding of, the general public
regarding the consumption, use,
nutritional attributes, and care of
processed raspberries.
(b) Food industry information, which
means any action taken to provide
information to, and broaden the
understanding of, the food industry
regarding the consumption, use,
nutritional attributes, and care of
processed raspberries.
(c) Industry information, which
means any action taken to provide
information to or collect information
from, and broaden the underestimating
of, the raspberry industry regarding the
production, consumption, use,
nutritional attributes, and care of
processed raspberries.
Part and subpart.
Part means the Processed Raspberry
Promotion, Research, and Information
Order and all rules, regulations, and
supplemental orders issued pursuant to
the Act and the Order. The Order shall
be a subpart of such part.
§ 1208.16
Person.
Person means any individual, group
of individuals, partnership, corporation,
association, cooperative, or any other
legal entity.
§ 1208.17
Processed raspberries.
Processed raspberries means
raspberries which have been frozen,
dried, pureed, made into juice, or
delivered in any other form altered by
mechanical processes other than fresh.
§ 1208.18
Processor.
Processor means a person engaged in
the preparation of raspberries for
processing for market who owns or who
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shares the ownership and risk of loss of
such raspberries.
§ 1208.19
Producer.
Producer means any person who
grows 20,000 pounds or more of
raspberries for processing in the United
States for sale in commerce, or a person
who is engaged in the business of
producing, or causing to be produced
for any market, raspberries for
processing beyond the person’s own
family use and having value at first
point of sale.
§ 1208.20
Promotion.
Promotion means any action taken to
present a favorable image of processed
raspberries to the general public and the
food industry for the purpose of
improving the competitive position of
processed raspberries both in the United
States and abroad and stimulating the
sale of processed raspberries including
paid advertising and public relations.
§ 1208.21 Qualified national organization
representing importer interests.
Qualified national organization
representing importer interests means
an organization that the Secretary
certifies as being eligible to nominate
importer and alternate importer
members to the Council.
Qualified organization representing
foreign producer interests means an
organization that the Secretary certifies
as being eligible to nominate foreign
producer and alternate foreign producer
members to the Council.
Raspberries.
Raspberries mean and include all
kinds, varieties, and hybrids of
cultivated raspberries of the genus
‘‘Rubus’’ grown in or imported into the
United States.
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§ 1208.24
Research.
Research means any type of test,
study, or analysis designed to advance
the image, desirability, use,
marketability, production, product
development, or quality of raspberries,
including but not limited to research
relating to nutritional value, cost of
production, new product development,
health research, and marketing of
processed raspberries.
§ 1208.25
Secretary.
Secretary means the Secretary of
Agriculture of the United States, or any
officer or employee of the Department to
whom authority has been delegated, or
to whom authority may be delegated, to
act in the Secretary’s stead.
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State.
State means any of the several 50
States of the United States, the District
of Columbia, the Commonwealth of
Puerto Rico, and the territories and
possessions of the United States.
§ 1208.27
Suspend.
Suspend means to issue a rule under
section 553 of title 5 U.S.C., to
temporarily prevent the operation of an
order or part thereof during a particular
period of time specified in the rule.
§ 1208.28
Terminate.
Terminate means to issue a rule under
section 553 of title 5 U.S.C., to cancel
permanently the operation of an order
or part thereof beginning on a certain
date specified in the rule.
§ 1208.29
United States.
United States means collectively the
50 states, the District of Columbia, the
Commonwealth of Puerto Rico, and the
territories and possessions of the United
States.
National Processed Raspberry Council
§ 1208.40
§ 1208.22 Qualified organization
representing foreign producer interests.
§ 1208.23
§ 1208.26
Establishment and membership.
(a) Establishment of the National
Processed Raspberry Council. There is
hereby established a National Processed
Raspberry Council, or such other name
as recommended by the Council and
approved by the Department, hereinafter
called Council, composed of thirteen
(13) members and thirteen (13) alternate
members, appointed by the Secretary
from nominations as follows:
(1) Six (6) processed raspberry
producer members and alternate
members from States producing a
minimum of three (3) million pounds of
raspberries delivered for processing.
Distribution of the seats among the
eligible States shall be proportional to
the percent determined by the average
of the total pounds produced and
delivered to processors for processing
over the previous three years divided by
the average total pounds by all of the
eligible States for the previous three
years. Only States whose producers
deliver raspberries for processing and
pay assessments are eligible for
nomination and election to the Council.
Average production will be based upon
either State production figures or the
Department data for the initial election,
and production figures generated by
either the Council or the Department
thereafter;
(2) One (1) processed raspberry
producer member and alternate member
representing all other States producing
less than a three (3) million pounds of
raspberries delivered for processing. All
States producing less than three million
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pounds of raspberries delivered for
processing will constitute a region from
which one producer member and
alternate will be nominated to the
Council. Only States whose producers
deliver raspberries for processing and
pay assessments are eligible for
nomination and election to the Council.
Average production will be based upon
either State production figures or the
Department data for the initial election,
and production figures generated by
either the Council or the Department
thereafter;
(3) Three (3) processed raspberry
importer members and alternate
members;
(4) Two (2) foreign producers and
their alternate members from countries
exporting a minimum of three million
pounds of raspberries for processing to
the U.S., based on a three-year average;
and
(5) One (1) at-large member and an
alternate recommended by the Council
and shall be submitted by the Council
to the Secretary for approval. In
recommending the at-large member and
alternate, the Council shall give
consideration to nutrition health
professionals and others interested in
raspberry industry. Nominations for the
initial Council will be handled by the
Department.
(b) Adjustment of membership. At
least once every five years, but not more
frequently than once every three years,
the Council will review the geographic
distribution of United States production
of processed raspberries and the
quantity and source of processed
raspberry imports. The review will be
conducted through an audit of State
crop production figures and Council
assessment receipts. If warranted, the
Council will recommend to the
Secretary that membership on the
Council be altered to reflect any changes
in geographic distribution of domestic
raspberry production for processing and
the quantity of imports. If the level of
imports increases or decreases, importer
members and alternates may be added
or reduced on the Council, subject to
recommendation by the Council and
approval of the Secretary. However, the
foreign producer seats will remain the
same regardless of the volume of
imports from importing countries.
§ 1208.41
Nominations and appointments.
(a) Voting for regional and State
producer representatives will be made
by mail ballot.
(b) Nominations for the initial Council
will be handled by the Department.
Subsequent nominations will be
handled by the Council.
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(c) The nominations for the six
producer and alternate members from
States producing a minimum three year
average of three million pounds of
raspberries delivered for processing will
be submitted to the Council in the
following manner:
(1) For those States that have a State
raspberry commission or State
marketing order, the State commission
or committee will nominate producers
and their alternates to serve.
Nominations will be returned to the
Council and placed on a ballot which
will then be sent to producers in the
State for a vote. The nominee for
member will have received the highest
number of votes cast. The person with
the second highest number of votes cast
will be the nominee for alternate. The
persons with the third and fourth place
highest number of votes cast will be
designated as additional nominees for
consideration by the Secretary. Once the
Council has received all of the
nominations from commissions or
committees, the information will be
submitted to the Secretary for
appointment. Nominations for the
initial Council will be handled by the
Department. Subsequent nominations
will be handled by the Council staff and
shall be submitted to the Secretary not
less than 90 days prior to the expiration
of the term of office; or
(2) For those States that do not have
a State commission or State marketing
order, the Council will seek
nominations from the State Departments
of Agriculture for members and
alternates from the specific States who
may directly submit nominations to the
Department for the initial Council.
Subsequent nominations shall be
submitted to the Council and will be
handled by the Council staff who in
turn shall submit those nominations to
the Secretary not less than 90 days prior
to the expiration of the term of office.
(3) The distribution of the six
producer and alternate seats will be
proportional to the percentage
determined by the average of the total
pounds produced and delivered to
processors for processing over the
previous three years divided by the
average total pounds produced over the
previous three years.
(d) The nomination for the one
raspberry producer of raspberries for
processing and alternate member, who
represents all other States producing
less than a minimum three year average
of three million pounds of raspberries
delivered for processing, will constitute
a region and the nominations will be
submitted to the Council in the
following manner:
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(1) For those States that have a State
raspberry commission or State
marketing order, the State commission
or committee will nominate producers
and their alternates to serve. The State
commission or committee nominations
will be returned to the Council and
placed on a ballot which will then be
sent to producers in the Region for a
vote. The nominee for member will have
received the highest number of votes
cast. The person with the second
highest number of votes cast will be the
nominee for alternate. The persons with
the third and fourth place highest
number of votes cast will be designated
as additional nominees for
consideration by the Secretary. Once the
Council has received all of the
nominations from commissions or
committees, the information will be
submitted to the Secretary for
appointment. Nominations for the
initial Council will be handled by the
Department. Subsequent nominations
will be handled by the Council staff and
shall be submitted to the Secretary not
less than 90 days prior to the expiration
of the term of office; or
(2) For those States that do not have
a State commission or State marketing
order, the Council will seek
nominations from the State Departments
of Agriculture for the member and
alternate from the specific States. The
State Departments of Agriculture would
have the opportunity to participate in
nomination caucuses and will directly
submit as a group a single slate of
nominations to the Department for the
producer position and the producer
alternate position on the Council for the
initial Council. Subsequent nominations
shall be submitted to the Council and
will be handled by the Council staff
who in turn shall submit those
nominations to the Secretary not less
than 90 days prior to the expiration of
the term of office.
(e) Only producers from States that
deliver raspberries for processing and
are covered under the program are
eligible for nomination and election to
the Council. Average production will be
based upon Department production data
for the initial nomination and
production figures generated by either
the Council or the Department
thereafter.
(f) Nominations for the importer
positions and their alternates will be
made by qualified national
organizations representing importers as
follows:
(1) All qualified national
organizations representing importers
would have the opportunity to
participate in nomination caucuses and
will submit as a group a single slate of
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nominations to the Secretary for the
importer positions and the importer
alternate positions on the Council.
Eligible organizations must submit
nominations to the Department not less
than 90 days prior to the expiration of
the term of office. Two nominees for
each member and each alternate
position will be submitted to the
Secretary for consideration.
(2) If the Department determines that
there are no qualified national
organizations representing importers,
individuals who have paid their
assessments to the Council in the most
recent fiscal year or for the initial
Council, those that imported processed
raspberries into the U.S., could directly
submit nominations to the Department
for the initial Council. Subsequent
nominations shall be submitted to the
Council and will be handled by the
Council staff who in turn shall submit
those nominations to the Secretary not
less than 90 days prior to the expiration
of the term of office.
(g) Nominations for the foreign
producer positions and their alternates
will be made by qualified organizations
representing foreign producers as
follows:
(1) All qualified organizations
representing foreign producer interests
will have the opportunity to participate
in nomination caucuses and will submit
as a group a single slate of nominations
to the Secretary for the foreign producer
positions and the foreign producer
alternate positions on the Council.
(2) If the Department determines that
there are no qualified organizations
representing foreign producer interests,
individual foreign producers may
directly submit nominations to the
Department for the initial Council.
Subsequent nominations shall be
submitted to the Council and will be
handled by the Council staff who in
turn shall submit those nominations to
the Secretary not less than 90 days prior
to the expiration of the term of office.
For the initial Council, persons that
meet the definition of foreign producer
as defined in this subpart will certify
such qualification and upon
certification, if qualified, may submit
nominations. Two nominees for each
member and each alternate position will
be submitted to the Secretary for
consideration.
(h) Nominations for the at-large
member and alternate will be conducted
at a Council meeting by the Council and
shall be submitted by the Council to the
Secretary for approval. Nominations for
the initial Council will be handled by
the Department. Subsequent
nominations will be handled by the
Council and shall be submitted to the
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Secretary not less than 90 days prior to
the expiration of the term of office.
(i) From the nominations, the
Secretary shall select the members of
the Council and alternates for each
position on the Council. Members will
serve until their replacements have been
appointed by the Secretary.
(j) If there is an insufficient number of
nominees from whom to appoint
members to the Council, the Secretary
may appoint members in such a manner
as the Secretary determines appropriate.
(k) Qualified national organization
representing importer interests. To be
certified as a qualified national
organization representing importer
interests, an organization must meet the
following criteria, as evidenced by a
report submitted by the organization to
the Secretary:
(1) The organization must represent a
substantial number of importers who
market or produce a substantial volume
of raspberries for processing;
(2) The organization has a history of
stability and permanency and has been
in existence for more than one year;
(3) The organization must promote
processed raspberries importers’
welfare; and
(4) The organization must derive a
portion of its operating funds from
importers.
(l) Qualified organization representing
foreign producer interests. To be
certified by the Secretary as a qualified
organization representing foreign
producer interests, an organization must
meet the following criteria, as evidenced
by a report submitted by the
organization to the Secretary:
(1) The organization must represent a
substantial number of foreign producers
who produce a substantial volume of
raspberries for processing;
(2) The organization has a history of
stability and permanency and has been
in existence for more than one year;
(3) The organization must promote
processed raspberry foreign producers’
welfare;
(4) The organization must derive a
portion of its operating funds from
foreign producers; and
(5) The organization must be from a
country exporting a minimum of three
million pounds of raspberries for
processing to the U.S. based on a threeyear average.
(m) Eligible organizations, foreign
producers, or importers must submit
nominations to the Secretary not less
than 90 days prior to the expiration of
the term of office. At least two nominees
for each position to be filled must be
submitted.
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§ 1208.42
Term of office.
Council members and alternates will
serve for a term of three years and be
able to serve a maximum of two
consecutive terms. A Council member
may serve as an alternate during the
years the member is ineligible for a
member position. When the Council is
first established, four producer
members, two importers, one of the two
foreign producers, and the at-large
member and their respective alternates
will be assigned initial terms of three
years. The remaining three producer
members, one importer member, and the
second foreign producer and their
alternates will serve an initial term of
two years. Members serving an initial
term of two years will be eligible to
serve a second term of three years.
Thereafter, each of these positions will
carry a full three-year term. Council
nominations and appointments will take
place in two out of every three years.
Council members shall serve during the
term of office for which they are
appointed and have qualified, and until
their successors are appointed and have
qualified. Each term of office will end
on December 31, with new terms of
office beginning on January 1.
§ 1208.43
Vacancies.
(a) In the event that any member of
the Council ceases to be a member of the
category of membership from which the
member was appointed to the Council,
such position shall automatically
become vacant.
(b) If a member of the Council
consistently refuses to perform the
duties of a member of the Council, or if
a member of the Council engages in acts
of dishonesty or willful misconduct, the
Council may recommend to the
Secretary that the member be removed
from office. If the Secretary finds the
recommendation of the Council shows
adequate cause, the Secretary may
remove such member from office.
(c) Should any member position
become vacant, the alternate of that
member shall automatically assume the
position of said member. Should the
positions of both a member and such
member’s alternate become vacant,
successors for the unexpired terms of
such member and alternate shall be
appointed in the manner specified in
§ 1208.40 and § 1208.41, except that
said nomination and replacement shall
not be required if said unexpired terms
are less than six months.
§ 1208.44
Alternate members.
An alternate member of the Council,
during the absence of the member for
whom the person is the alternate, shall
act in the place and stead of such
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member and perform such duties as
assigned. In the event of death, removal,
resignation, or disqualification of any
member, the alternate for that member
shall automatically assume the position
of said member. In the event that a
producer, importer, foreign producer, or
at-large member of the Council and their
alternate are unable to attend a meeting,
the Council may not designate any other
alternate to serve in such member’s or
alternate’s place and stead for such a
meeting.
§ 1208.45
Procedure.
(a) At a Council meeting, it will be
considered a quorum when a majority
(one more than half) of the Council
members is present. An alternate will be
counted for the purpose of determining
a quorum only if the member for whom
the person is the alternate is absent or
disqualified from participating.
(b) At the start of each fiscal period,
the Council will select a chairperson,
vice chairperson, and other officers as
appropriate, who will conduct meetings
throughout that period.
(c) The chairperson and the treasurer
shall reside in the United States, and the
Council office shall also be located in
the United States.
(d) All Council meetings shall be held
in the United States.
(e) All Council members and
alternates will receive a minimum of 20
days advance notice of all Council and
committee meetings.
(f) Each member of the Council will
be entitled to one vote on any matter put
to the Council, and the motion will
carry if supported by one (1) vote more
than 50 percent of the total votes
represented by the Council members
present.
(g) It will be considered a quorum at
a Council committee meeting when at
least one more than half of those
assigned to the Council committee are
present. Alternates may also be assigned
to Council committees as necessary.
Council committees may consist of
persons other than Council members
and such persons may vote in Council
committee meetings.
(h) In lieu of voting at a properly
convened meeting and, when in the
opinion of the chairperson of the
Council such action is considered
necessary, the Council may take action
if supported by one vote more than 50
percent of the members present, by
mail, telephone, electronic mail,
facsimile, or any other means of
communication, and all telephone votes
shall be confirmed promptly in writing.
In that event, all members must be
notified and provided the opportunity
to vote. Any action so taken shall have
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the same force and effect as though such
action had been taken at a properly
convened meeting of the Council. All
votes shall be recorded in Council
minutes.
(i) There shall be no voting by proxy.
(j) The chairperson shall be a voting
member.
(k) The organization of the Council
and the procedures for the conducting
of meetings of the Council shall be in
accordance with its bylaws, which shall
be established by the Council and
approved by the Secretary.
§ 1208.46 Compensation and
reimbursement.
The members of the Council, and
alternates when acting as members,
shall serve without compensation but
shall be reimbursed for reasonable travel
expenses, as approved by the Council,
incurred by them in the performance of
their duties as Council members.
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§ 1208.47
Powers and duties.
The Council shall have the following
powers and duties:
(a) To administer the Order in
accordance with its terms and
conditions and to collect assessments;
(b) To develop and recommend to the
Secretary for approval such bylaws as
may be necessary for the functioning of
the Council, and such rules as may be
necessary to administer the Order,
including activities authorized to be
carried out under the Order;
(c) To meet, organize, and select from
among the members of the Council a
chairperson, other officers, committees,
and subcommittees, as the Council
determines to be appropriate;
(d) To employ persons, other than
members, as the Council considers
necessary to assist the Council in
carrying out its duties and to determine
the compensation and specify the duties
of such persons;
(e) To develop and carry our generic
promotion, research, and information
activities relating to processed
raspberries;
(f) To develop programs and projects,
and enter into contracts or agreements,
which must be approved by the
Secretary before becoming effective, for
the development and carrying out of
programs or projects of research,
information, or promotion, and the
payment of costs thereof with funds
collected pursuant to this subpart. Each
contract or agreement shall provide that
any person who enters into a contract or
agreement with the Council shall
develop and submit to the Council a
proposed activity; keep accurate records
of all of its transactions relating to the
contract or agreement; account for funds
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received and expended in connection
with the contract or agreement; make
periodic reports to the Council of
activities conducted under the contract
or agreement; and make such other
reports available as the Council or the
Secretary considers necessary. Any
contract or agreement shall provide that:
(1) The contractor or agreeing party
shall develop and submit to the Council
a program, plan, or project together with
a budget or budgets that shall show the
estimated cost to be incurred for such
program, plan, or project;
(2) The contractor or agreeing party
shall keep accurate records of all its
transactions and make periodic reports
to the Council of activities conducted,
submit accounting for funds received
and expended, and make such other
reports as the Secretary or the Council
may require;
(3) The Secretary may audit the
records of the contracting or agreeing
party periodically;
(4) Any subcontractor who enters into
a contract with a Council contractor and
who receives or otherwise uses funds
allocated by the Council shall be subject
to the same provisions as the contractor;
(g) To prepare and submit for
approval of the Secretary, before the
beginning of each fiscal year, rates of
assessment and a fiscal year budget of
the anticipated expenses to be incurred
in the administration of the Order,
including the probably cost of each
promotion, research, and information
activity proposed to be developed or
carried out by the Council in accordance
with § 1208.50;
(h) To borrow funds necessary for the
startup expenses of the order;
(i) To maintain such records and
books and prepare and submit such
reports and records from time to time to
the Secretary as the Secretary may
require and to make the records
available to the Secretary for inspection
and audit; to make appropriate
accounting with respect to the receipt
and disbursement of all funds entrusted
to it; and to keep records that accurately
reflect the actions and transactions of
the Council;
(j) To cause its books to be audited by
a independent auditor at the end of each
fiscal year and at such other times as the
Secretary may request, and to submit a
report of the audit directly to the
Secretary;
(k) To give the Secretary the same
notice of meetings of the Council as is
given to members in order that the
Secretary’s representative(s) may attend
such meetings, and to keep and report
minutes of each meeting of the Council
to the Secretary;
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(l) To act as intermediary between the
Secretary and any producer, first
handler, processor, importer, or foreign
producer;
(m) To furnish to the Secretary any
information or records that the Secretary
may request;
(n) To receive, investigate, and report
to the Secretary complaints of violations
of the Order;
(o) To recommend to the Secretary
such amendments to the Order as the
Council considers appropriate;
(p) To work to achieve an effective,
continuous, and coordinated program of
promotion, research, consumer
information, evaluation, and industry
information designed to strengthen the
processed raspberry industry’s position
in the marketplace; maintain and
expand existing markets and uses for
processed raspberries; and to carry out
programs, plans, and projects designed
to provide maximum benefits to the
processed raspberry industry; and
(q) To pay the cost of the activities
with assessments collected under
§ 1208.52.
§ 1208.48
Prohibited activities.
The Council may not engage in, and
shall prohibit the employees and agents
of the Council from engaging in:
(a) Any action that would be a conflict
of interest;
(b) Using funds collected by the
Council under the Order to undertake
any action for the purpose of
influencing legislation or governmental
action or policy, by local, state, national,
and foreign governments, other than
recommending to the Secretary
amendments to the Order; and
(c) Any advertising, including
promotion, research, and information
activities authorized to be carried out
under the Order that may be false or
misleading or disparaging to another
agricultural commodity.
Expenses and Assessments
§ 1208.50
Budget and expenses.
(a) At least 60 days prior to the
beginning of each fiscal year, and as
may be necessary thereafter, the Council
shall prepare and submit to the
Secretary a budget for the fiscal year
covering its anticipated expenses and
disbursements in administering this
subpart. The budget for research,
promotion, or information may not be
implemented prior to approval of the
budget by the Secretary. No later than
forty-five (45) days after the receipt of
such budget, the Secretary shall notify
the Council whether the Secretary
approves or disapproves the budget.
Each budget shall include:
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(1) A statement of objectives and
strategy for each program, plan, or
project;
(2) A summary of anticipated revenue,
with comparative data or at least one
preceding year (except for the initial
budget); and
(3) A summary of proposed
expenditures for each program, plan, or
project;
(4) Staff and administrative expense
breakdowns, with comparative data for
at least one preceding year (except for
the initial budget).
(b) Each budget shall provide
adequate funds to defray its proposed
expenditures and to provide for a
reserve as set forth in this subpart.
(c) Subject to this section, any
amendment or addition to an approved
budget must be approved by the
Secretary, including shifting funds from
one program, plan, or project to another.
Shifts in funds which do not cause an
increase in the Council’s approved
budget, and which are consistent with
by laws, need not have prior approval
by the Department.
(d) The Council is authorized to incur
such expenses, including provision for
a reasonable reserve, as the Secretary
finds are reasonable and likely to be
incurred by the Council for its
maintenance and functioning, and to
enable it to exercise its powers and
perform its duties in accordance with
the provisions of this subpart. Such
expenses shall be paid from funds
received by the Council.
(e) With approval of the Secretary, the
Council may borrow money for the
payment of administrative expenses,
subject to the same fiscal, budget, and
audit controls as other funds of the
Council. Any funds borrowed by the
Council shall be expended for startup
costs and capital outlays and are limited
to the first year of operation of the
Council.
(f) The Council is authorized to repay
startup costs associated with
establishing a program and an initial
referendum. If approved, these costs
would be amortized and repaid over a
maximum three (3) year period.
(g) The Council may accept voluntary
contributions, but these shall only be
used to pay expenses incurred in the
conduct of programs, plans, and projects
approved by the Secretary. Such
contributions shall be free from any
encumbrance by the donor and the
Council shall retain complete control of
their use.
(h) The Council may also receive
funds provided through the
Department’s Foreign Agricultural
Service or from other sources, with the
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approval of the Secretary, for authorized
activities.
(i) The Council shall reimburse the
Secretary for all expenses incurred by
the Secretary in the implementation,
administration, enforcement, and
supervision of the Order, including all
referendum costs in connection with the
Order.
(j) The Council may not expend for
administration, maintenance, and
functioning of the Council in any fiscal
year an amount that exceeds 15 percent
of the assessments and other income
received by the Council for that fiscal
year. Reimbursements to the Secretary
required under paragraph (i) of this
section are excluded from this
limitation on spending.
(k) The Council may establish an
operating monetary reserve and may
carry over to subsequent fiscal periods
excess funds in any reserve so
established: Provided that the funds in
the reserve do not exceed one fiscal
period’s budget. Subject to approval by
the Secretary, such reserve funds may
be used to defray any expenses
authorized under this part.
(l) Pending disbursement of
assessments and all other revenue under
a budget approved by the Secretary, the
Council may invest assessments and all
other revenues collected under this
section in:
(1) Obligations of the United States or
any agency of the United States;
(2) General obligations of any State or
any political subdivision of a State;
(3) Interest bearing accounts or
certificates of deposit of financial
institutions that are members of the
Federal Reserve System; or
(4) Obligations fully guaranteed as to
principal interest by the United States.
§ 1208.51
Financial statements.
(a) As requested by the Secretary, the
Council shall prepare and submit
financial statements to the Secretary on
a periodic basis. Each such financial
statement shall include, but not be
limited to, a balance sheet, income
statement, and expense budget. The
expense budget shall show expenditures
during the time period covered by the
report, year-to-date expenditures, and
the unexpended budget.
(b) Each financial statement shall be
submitted to the Secretary within 30
days after the end of the time period to
which it applies.
(c) The Council shall submit annually
to the Secretary an annual financial
statement within 90 days after the end
of the fiscal year to which it applies.
§ 1208.52
Assessments.
(a) The funds to cover the Council’s
expenses shall be paid from assessments
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on producers and importers at a rate not
to exceed one cent per pound; the initial
rate is one cent per pound, donations
from any person not subject to
assessments under this Order, and other
funds available to the Council including
those collected pursuant to § 1208.56
and subject to the limitations contained
therein.
(b) The collection of assessments on
domestic processed raspberries will be
the responsibility of the first handler
receiving the raspberries for processing.
In the case of the producer acting as its
own first handler, the producer will be
required to collect and remit its
individual assessments. The rate of
assessments shall be prescribed in
regulations issued by the Secretary.
(c) The Council may recommend to
the Secretary an increase or decrease to
the assessment rate. Such an increase or
decrease may occur not more than once
annually. Any change in the assessment
rate shall be subject to rulemaking by
the Department.
(d) Each importer of processed
raspberries shall pay an assessment to
the Council on processed raspberries
imported for marketing in the United
States, through Customs. If Customs
does not collect an assessment from an
importer, the importer would be
responsible for paying the assessment
directly to the Council. The assessment
rate for imported processed raspberries
would be up to one cent per pound,
with the initial rate being one cent per
pound.
(1) The assessment rate for imported
processed raspberries shall be the same
or equivalent to the rate for processed
raspberries produced in the United
States.
(2) The import assessment shall be
uniformly applied to imported
processed raspberries that are identified
by the numbers 0811.20.20.20, in the
Harmonized Tariff Schedule of the
United States or any other numbers
used to identify processed raspberries.
(3) The assessments due on imported
processed raspberries shall be paid
when they enter into the United States
or are withdrawn for consumption in
the United States.
(e) All assessment payments will be
submitted to the office of the Council.
All final payments for a crop year are to
be received no later than October 30 of
that year for producers of processed
raspberries within the United States. A
late payment charge shall be imposed
on any handler or importer who fails to
remit to the Council, the total amount
for which any such first handler or
importer is liable on or before the due
date established by the Council. In
addition to the late payment charge, an
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interest charge shall be imposed on the
outstanding amount for which the first
handler or importer is liable. The rate of
interest shall be prescribed in
regulations issued by the Secretary.
(f) Persons failing to remit total
assessments due in a timely manner
may also be subject to actions under
federal debt collection procedures.
(g) The Council may authorize other
organizations to collect assessments on
its behalf with the approval of the
Secretary.
(h) Council may provide credits of
assessments for those individuals who
contribute to local, regional, or State
organizations engaged in similar generic
research, promotion, and information
programs as partial fulfillment of
assessment due to the Council subject to
approval of the Secretary, for
expenditure on generic research,
promotion and information programs
conducted within the United States.
(1) No credit will be given for funds
expended for administrative purposes.
(2) No credit shall be given for
research, promotion, and information
program activity conducted outside of
the United States.
(3) Credit shall only be given for
generic research, promotion, and
information program activities.
(4) Credit of assessment may be
obtained only by following the
procedures prescribed in this section
and any regulations recommended by
the Council and prescribed by the
Secretary. An individual owing
assessments shall make a written
request to the Council and the request
shall contain the assessment paying
individual’s signature and shall show:
(i) The name and address of the
assessment paying individual;
(ii) The name and address of the
person who collected the assessment;
(iii) The quantity of processed
raspberries on which a credit is
requested;
(iv) The total amount of credit
requested;
(v) The date or dates on which the
assessments were paid;
(vi) A certification that the assessment
was not collected from another producer
or documentation of assessments
collected from local, State, or regional
organizations; and
(vii) The individual’s signature or
properly witnessed mark.
(5) The evidence of payment as
required under § 1208.61, or a copy
thereof, or such other evidence deemed
necessary to the Council shall
accompany the individual’s credit of
assessment request.
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§ 1208.53
Exemption procedures.
(a) Any producer who produces less
than 20,000 pounds of raspberries for
processing annually who desires to
claim an exemption from assessments
during a fiscal year as provided in
§ 1208.52 shall apply to the Council, on
a form provided by the Council, for a
certificate of exemption. Such producer
shall certify that the producer’s
production of raspberries for processing
shall be less than 20,000 pounds for the
fiscal year for which the exemption is
claimed. Any importer who imports less
than 20,000 pounds of processed
raspberries annually who desires to
claim an exemption from assessments
during a fiscal year as provided in
§ 1208.52 shall apply to the Council, on
a form provided by the Council, for a
certificate of exemption. Such importer
shall certify that the importer’s
importation of processed raspberries
shall not exceed 20,000 pounds, for the
fiscal year for which the exemption is
claimed. If a producer or importer
determines at the end of the year that
they did not meet the 20,000 pounds
minimum, the producer or importers
can request a reimbursement on the
assessments paid to the Council by 60
days of the end of the fiscal year. If, after
a person has been exempt from paying
assessments for any year pursuant to
this section, and the person no longer
meets the requirements of paragraph of
this section for an exemption, the
person shall file a report with the
Council in the form and manner
prescribed by the Council and pay an
assessment on or before March 15 of the
subsequent year on all raspberries for
processing produced or processed
raspberries importers by such persons
during the year for which the person
claimed the exemption.
(b) On receipt of an application, the
Council shall determine whether an
exemption may be granted. The Council
will then issue, if deemed appropriate,
a certificate of exemption to the
producer or importer which is eligible
to receive one. Each producer who is
exempt from assessment must provide
an exemption number as supplied by
the Council to the first handler in order
to be exempt from the collection of an
assessment on processed raspberries.
First handlers shall maintain records
showing the exemptee’s name and
address along with the exemption
number assigned by the Council.
(c) Importers who are exempt from
assessment shall be eligible for
reimbursement of assessments collected
by Customs and shall apply to the
Council for reimbursement of such
assessments paid. No interest will be
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paid on assessments collected by
Customs. Requests for reimbursement
shall be submitted within 90 days of the
last day of the year the processed
raspberries were actually imported. Any
claim for reimbursement submitted after
ninety (90) days will be considered null
and void.
(d) Any person who desires an
exemption from assessments for a
subsequent fiscal year shall reapply to
the Council, on a form provided by the
Council, for a certificate of exemption.
(e) The Council, with the Secretary’s
approval, may request that persons
claiming an exemption from
assessments under § 1208.53 must
provide it with any information it
deems necessary about the exemption,
including, without limitation, the
disposition of the exempted commodity.
(f) A first handler who purchases
raspberries for processing from a
producer who operates under an
approved National Organic Program
(NOP) (7 CFR part 205) system plan,
produces only products that are eligible
to be labeled as 100 percent organic
under the NOP, and is not a split
operation shall be exempt from the
payment of assessments.
(g) To obtain this exemption, an
eligible first handler shall submit a
request for exemption to the Council—
on a form provided by the Council—at
any time initially and annually
thereafter on or before the beginning of
the fiscal period as long as the first
handler continues to be eligible for the
exemption.
(h) The request shall include the
following: The first handler’s name and
address, a copy of the organic farm or
organic handling operation certificate
provided by a USDA-accredited
certifying agent as defined in the
Organic Act, a signed certification that
the applicant meets all of the
requirements specified for an
assessment exemption, and such other
information as may be required by the
Council and with the approval of the
Secretary.
(i) If the first handler complies with
the requirements of paragraph (f) of this
section, the Council will grant an
assessment exemption and shall issue a
Certificate of Exemption to the first
handler. For exemption requests
received on or before August 15 of the
fiscal year, the Council will have 60
days to approve the exemption request;
after August 15 of the fiscal year, the
Council will have 30 days to approve
the exemption request. If the application
is disapproved, the Council will notify
the applicant of the reason(s) for
disapproval within the same timeframe.
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(j) An importer who imports only
products that are eligible to be labeled
as 100 percent organic under the NOP
(7 CFR part 205) and who is not a split
operation shall be exempt from the
payment of assessments. That importer
may submit documentation to the
Council and request an exemption from
assessment on 100 percent organic
processed raspberries—on a form
provided by the Council—at any time
initially and annually thereafter on or
before the beginning of the fiscal period
as long as the importer continues to be
eligible for the exemption. This
documentation shall include the same
information required of first handlers in
paragraph (c) of this section. If the
importer complies with the
requirements of this section, the Council
will grant the exemption and issue a
Certificate of Exemption to the importer
within the applicable timeframe. The
Council will also issue the importer a 9digit alphanumeric Harmonized Tariff
Schedule (HTS) classification valid for 1
year from the date of issue. This HTS
classification should be entered by the
importer on the Customs entry
documentation. Any line item entry of
100 percent organic processed
raspberries bearing this HTS
classification assigned by the Council
will not be subject to assessments.
(k) The exemption will apply
immediately following the issuance of
the certificate of exemption.
dwashington3 on PROD1PC60 with PROPOSALS2
§ 1208.54
Programs, plans, and projects.
(a) The Council shall receive and
evaluate, or on its own initiative,
develop and submit to the Secretary for
approval any program, plan, or project
authorized under this subpart. Such
programs, plans, or projects shall
provide for:
(1) The establishment, issuance,
effectuation, and administration of
appropriate programs for promotion,
research, and information, including
producer and consumer industry
information, with respect to processed
raspberries; and
(2) The establishment and conduct of
research with respect to the use,
nutritional value, production, health,
sale, distribution, and marketing of
processed raspberries, and the creation
of new products or product
development, thereof, to the end that
the marketing and use of processed
raspberries may be encouraged,
expanded, improved, or made more
acceptable and to advance the image,
desirability, or quality of processed
raspberries.
(b) A program, plan, or project may
not be implemented prior to approval of
the program, plan, or project by the
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Secretary. No later than forty-five (45)
days after the receipt of such program,
plan, or project, the Secretary shall
notify the Council whether the Secretary
approves or disapproves the program,
plan, or project. Once a program, plan,
or project is so approved, the Council
shall take appropriate steps to
implement it.
(c) Each program, plan, or project
implemented under this subpart shall be
reviewed or evaluated periodically by
the Council to ensure that it contributes
to an effective program of promotion,
research, or information. If it is found by
the Council that any such program,
plan, or project does not contribute to
an effective program of promotion,
research, or information, then the
Council shall terminate such program,
plan, or project.
(d) No program, plan, or project
including advertising shall be false or
misleading, or disparage another
agricultural commodity. Processed
raspberries of all origins shall be treated
equally.
§ 1208.55
Independent evaluation.
The Council shall, not less often than
once every five years, authorize and
fund, from funds otherwise available to
the Council, an independent evaluation
of the effectiveness of the Order and
programs conducted by the Council
pursuant to the Act. The Council shall
submit to the Secretary, and make
available to the public, the results of
each periodic independent evaluation
conducted under this paragraph.
§ 1208.56 Patents, copyrights, trademarks,
information, publications, and product
formulations.
Patents, copyrights, trademarks,
information, publications, and product
formulations developed through the use
of funds received by the Council under
this subpart shall be the property of the
U.S. Government as represented by the
Council and shall, along with any rents,
royalties, residual payments, or other
income from the rental, sales, leasing,
franchising, or other uses of such
patents, copyrights, trademarks,
information, publications, or product
formulations, inure to the benefit of the
Council, shall be considered income
subject to the same fiscal, budget, and
audit controls as other funds of the
Council, and may be licensed subject to
approval by the Secretary. Upon
termination of this subpart, § 1208.73
shall apply to determine disposition of
all such property.
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Reports, Books, and Records
§ 1208.60
Reports.
(a) Each first handler subject to this
subpart may be required to provide to
the Council periodically such
information as may be required by the
Council, with the approval of the
Secretary, which may include but not be
limited to the following:
(1) Number of pounds handled;
(2) Number of pounds on which an
assessment was collected;
(3) Name and address of person from
whom the first handler has collected the
assessments on each pound handled;
and
(4) Date collection was made on each
pound handled. All reports are due to
the Council 30 days after the end of the
crop year.
(b) Each importer subject to this
subpart may be required to provide to
the Council periodically such
information as may be required by the
Council, with the approval of the
Secretary, which may include but not be
limited to the following:
(1) Number of pounds of processed
raspberries imported;
(2) Number of pounds which an
assessment was paid;
(3) Name and address of the importer;
(4) Date collection was made on each
pound of processed raspberries
imported. All reports are due to the
Council 30 days after the end of the crop
year.
§ 1208.61
Books and records.
Each first handler, producer, and
importer subject to this subpart shall
maintain and make available for
inspection by the Secretary such books
and records as are necessary to carry out
the provisions of this subpart and the
regulations issued thereunder, including
such records as are necessary to verify
any reports required. Such records shall
be retained for at least two (2) years
beyond the fiscal period of their
applicability.
§ 1208.62
Confidential treatment.
All information obtained from books,
records, or reports under the Act, this
subpart, and the regulations issued
thereunder shall be kept confidential by
all persons, including all employees and
former employees of the Council, all
officers and employees and former
officers and employees of contracting
and subcontracting agencies or agreeing
parties having access to such
information. Such information shall not
be available to Council members,
producers, importers, exporters, foreign
producers, or first handlers. Only those
persons having a specific need for such
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information to effectively administer the
provisions of this subpart shall have
access to such information. Only such
information so obtained as the Secretary
deems relevant shall be disclosed by
them, and then only in a judicial
proceeding or administrative hearing
brought at the direction, or on the
request, of the Secretary, or to which the
Secretary or any officer of the United
States is a party, and involving this
subpart. Nothing in this section shall be
deemed to prohibit:
(a) The issuance of general statements
based upon the reports of the number of
persons subject to this subpart or
statistical data collected therefrom,
which statements do not identify the
information furnished by any person;
and
(b) The publication, by direction of
the Secretary, of the name of any person
who has been adjudged to have violated
this subpart, together with a statement
of the particular provisions of this
subpart violated by such person.
§ 1208.72
Suspension and termination.
All fiscal matters, programs, plans, or
projects, rules or regulations, reports, or
other substantive actions proposed or
prepared by the Council shall be
submitted to the Secretary for approval.
(a) The Secretary shall suspend or
terminate this part or subpart or a
provision thereof if the Secretary finds
that the subpart or a provision thereof
obstructs or does not tend to effectuate
the purposes of the Act, or if the
Secretary determines that this subpart or
a provision thereof is not favored by
persons voting in a referendum
conducted pursuant to the Act.
(b) The Secretary shall suspend or
terminate this subpart at the end of the
marketing year whenever the Secretary
determines that its suspension or
termination is approved or favored by a
majority of producers and importers
voting for approval who, during a
representative period determined by the
Secretary, have been engaged in the
production or importation of processed
raspberries.
(c) If, as a result of a referendum the
Secretary determines that this subpart is
not approved, the Secretary shall:
(1) Not later than one hundred and
eighty (180) days after making the
determination, suspend or terminate, as
the case may be, collection of
assessments under this subpart.
(2) As soon as practical, suspend or
terminate, as the case may be, activities
under this subpart in an orderly
manner.
§ 1208.71
§ 1208.73
Miscellaneous
dwashington3 on PROD1PC60 with PROPOSALS2
§ 1208.70
Right of the Secretary.
Referenda.
(a) Initial referendum. The Order shall
not become effective unless the Order is
approved by a majority of producers and
importers voting for approval in the
initial referendum who, during a
representative period determined by the
Secretary, have been engaged in the
production or importation of processed
raspberries.
(b) Subsequent referenda. Every seven
years, the Secretary shall hold a
referendum to determine whether
producers of raspberry delivered for
processing and importers of processed
raspberries favor the continuation of the
Order. The Order shall continue if it is
favored by a majority of producers and
importers voting for approval in the
referendum who, during a
representative period determined by the
Secretary, have been engaged in the
production or importation of processed
raspberries. The Secretary will also
conduct a subsequent referendum if 10
percent or more of all eligible producers
of raspberries for processing and
importers of processed raspberries
request the Secretary to hold a
referendum or if the Council established
under § 1208.40 requests that the
Secretary hold a referendum. In
addition, the Secretary may hold a
referendum at any time.
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Proceedings after termination.
(a) Upon the termination of this
subpart, the Council shall recommend
not more than three of its members to
the Secretary to serve as trustees for the
purpose of liquidating the affairs of the
Council. Such persons, upon
designation by the Secretary, shall
become trustees of all of the funds and
property then in the possession or under
control of the Council, including claims
for any funds unpaid or property not
delivered, or any other claim existing at
the time of such termination.
(b) The said trustees shall:
(1) Continue in such capacity until
discharged by the Secretary.
(2) Carry out the obligations of the
Council under any contracts or
agreements entered into pursuant to the
Order.
(3) From time to time account for all
receipts and disbursements and deliver
all property on hand, together with all
books and records of the Council and
the trustees, to such person or persons
as the Secretary may direct.
(4) Upon request of the Secretary
execute such assignments or other
instruments necessary and appropriate
to vest in such persons title and right to
all funds, property and claims vested in
the Council or the trustees pursuant to
the Order.
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(c) Any person to whom funds,
property or claims have been transferred
or delivered pursuant to the Order shall
be subject to the same obligations
imposed upon the Council and upon the
trustees.
(d) Any residual funds not required to
defray the necessary expenses of
liquidation shall be turned over to the
Secretary to be disposed of, to the extent
practical, to one or more domestic
raspberry industry organizations in the
interest of continuing processed
raspberry promotion, research, and
information programs.
§ 1208.74 Effect of termination or
amendment.
Unless otherwise expressly provided
by the Secretary, the termination of this
subpart or of any regulation issued
pursuant thereto, or the issuance of any
amendment to either thereof, shall not:
(a) Affect or waive any right, duty,
obligation or liability which shall have
arisen or which may thereafter arise in
connection with any provision of this
subpart or any regulation issued
thereunder.
(b) Release or extinguish any violation
of this subpart or any regulation issued
thereunder.
(c) Affect or impair any rights or
remedies of the United States, or of the
Secretary or of any other persons, with
respect to any such violation.
§ 1208.75
Personal liability.
No member, alternate member, or
employee of the Council shall be held
personally responsible, either
individually or jointly with others, in
any way whatsoever, to any person for
errors in judgment, mistakes, or other
acts, either of commission or omission,
as such member, alternate, or employee,
except for acts of dishonesty or willful
misconduct.
§ 1208.76
Separability.
If any provision of this subpart is
declared invalid or the applicability
thereof to any person or circumstances
is held invalid, the validity of the
remainder of this subpart or the
applicability thereof to other persons or
circumstances shall not be affected
thereby.
§ 1208.77
Amendments.
Amendments to this subpart may be
proposed from time to time by the
Council or by any interested person
affected by the provisions of the Act,
including the Secretary.
§ 1208.78
OMB control numbers.
The control number assigned to the
information collection requirements by
the Office of Management and Budget
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pursuant to the Paperwork Reduction
Act of 1995, 44 U.S.C. Chapter 35, is
OMB control number 0505–0001, OMB
control number 0581–0093, and OMB
control number 0581–NEW.
Subpart B—[Reserved]
Dated: April 3, 2009.
Robert C. Keeney,
Acting Associate Administrator.
[FR Doc. E9–7981 Filed 4–8–09; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1208
[Docket No. AMS–FV–07–0077; FV–07–705–
PR]
RIN 0581–AC37
Proposed Processed Raspberry
Promotion, Research, and Information
Order; Referendum Procedures
dwashington3 on PROD1PC60 with PROPOSALS2
AGENCY: Agricultural Marketing Service,
Agriculture, USDA.
ACTION: Proposed rule with request for
comments.
SUMMARY: The purpose of this rule is to
establish procedures which the
Department of Agriculture (USDA or the
Department) will use in conducting a
referendum to determine whether the
issuance of the proposed Processed
Raspberry Promotion, Research, and
Information Order (Proposed Order) is
favored by producers of raspberries for
processing and importers of processed
raspberries. The Order will be
implemented if it is approved by a
simple majority of the eligible producers
and importers voting in the referendum.
These procedures would also be used
for any subsequent referendum under
the Proposed Order, if it is approved in
the initial referendum. The Proposed
Order is being published separately in
this issue of the Federal Register. This
proposed program would be
implemented under the Commodity
Promotion, Research, and Information
Act of 1996 (1996 Act).
DATES: Comments must be received by
June 8, 2009. Pursuant to the Paperwork
Reduction Act, comments on the
information collection burden that
would result from this proposal must be
received by June 8, 2009.
ADDRESSES: Interested persons are
invited to submit written comments
concerning this rule. Comments can be
made on the Internet at https://
www.regulations.gov or to the Research
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Jkt 217001
and Promotion Branch, Fruit and
Vegetable Programs, Agricultural
Marketing Service, USDA, Stop 0244,
Room 0634–S, 1400 Independence
Avenue, SW., Washington, DC 20250–
0244; Fax (202) 205–2800; Toll Free
(888) 720–9917. Comments should
reference the docket number, title of
action, date, and page number of this
issue of the Federal Register and will be
made available for public inspection at
the above address during regular
business hours or at https://
www.regulations.gov.
Pursuant to the Paperwork Reduction
Act (PRA), send comments regarding the
accuracy of the burden estimate, ways to
minimize the burden, including the use
of automated collection techniques or
other forms of information technology,
or any other aspect of this collection of
information, to the above address and to
the Desk Office for Agriculture, Office of
Information and Regulatory Affairs,
Office of Management and Budget, New
Executive Office Building, 725 17th
Street, NW., Room 725, Washington, DC
20503.
FOR FURTHER INFORMATION CONTACT:
Kimberly Coy, Marketing Specialist,
Research and Promotion Branch, FV,
AMS, USDA, Stop 0244, Room 0634–S,
1400 Independence Avenue, SW.,
Washington, DC 20250–0244; telephone
202–720–9915 or (888) 720–9917 (toll
free) or e-mail kimberly.coy@usda.gov.
A
referendum will be conducted among
eligible producers of raspberries for
processing and importers of processed
raspberries to determine whether they
favor issuance of the proposed
Processed Raspberry Promotion,
Research, and Information Order
(Proposed Order), 7 CFR part 1208. The
program will be implemented if it is
approved by a simple majority of the
producers and importers voting in the
referendum. The Proposed Order is
authorized under the Commodity
Promotion, Research, and Information
Act of 1996 (1996 Act), 7 U.S.C. 7411–
7425. It would cover domestic
producers of raspberries for processing
and importers of processed raspberries
of 20,000 pounds or more. The Proposed
Order is being published separately in
this issue of the Federal Register.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This proposed rule has been
determined to be not significant for
purposes of Executive Order 12866 and,
therefore, has not been reviewed by the
Office of Management and Budget
(OMB).
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16289
Executive Order 12988
This proposed rule has been reviewed
under Executive Order 12988, Civil
Justice Reform. It is not intended to
have retroactive effect.
Section 524 of the 1996 Act provides
that the Act shall not affect or preempt
any other Federal or State law
authorizing promotion or research
relating to an agricultural commodity.
Under Section 519 of the 1996 Act, a
person subject to an order may file a
petition with the Department stating
that an order, any provision of an order,
or any obligation imposed in connection
with an order, is not established in
accordance with the law. In the petition,
the person may request a modification
of an order or an exemption from an
order. Any petition filed challenging an
order, any provision of an order, or any
obligation imposed in connection with
an order, shall be filed within two years
after the effective date of an order,
provision or obligation subject to
challenge in the petition. The petitioner
will have the opportunity for a hearing
on the petition. Thereafter, the
Department will issue a ruling on the
petition. The 1996 Act provides that the
district court of the United States for
any district in which the petitioner
resides or conducts business shall have
the jurisdiction to review a final ruling
on the petition, if the petitioner files a
complaint for that purpose not later
than 20 days after the date of entry of
the Department’s final ruling.
Initial Regulatory Flexibility Act
Analysis and Paperwork Reduction Act
In accordance with the Regulatory
Flexibility Act (RFA) 5 U.S.C. 601–612,
the Department is required to examine
the impact of the proposed rule on small
entities. The purpose of the RFA is to
fit regulatory actions to the scale of
businesses subject to such action so that
small businesses will not be
disproportionately burdened.
The 1996 Act, which authorizes the
Department to consider industry
proposals for generic programs of
promotion, research, and information
for agricultural commodities, became
effective on April 4, 1996. The 1996 Act
provides for alternatives within the
terms of a variety of provisions.
Paragraph (e) of Section 518 of the
1996 Act provides three options for
determining industry approval of a new
research and promotion program: (1) By
a majority of those persons voting; (2) by
persons voting for approval who
represent a majority of the volume of the
agricultural commodity; or (3) by a
majority of those persons voting for
approval who also represent a majority
E:\FR\FM\09APP2.SGM
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Agencies
[Federal Register Volume 74, Number 67 (Thursday, April 9, 2009)]
[Proposed Rules]
[Pages 16266-16289]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-7981]
[[Page 16265]]
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Part II
Department of Agriculture
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Agricultural Marketing Service
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7 CFR Part 1208
Proposed Processed Raspberry Promotion, Research, and Information
Order; Referendum Procedures; Proposed Rules
Federal Register / Vol. 74, No. 67 / Thursday, April 9, 2009 /
Proposed Rules
[[Page 16266]]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1208
[Doc. No. AMS-FV-07-0077; FV-07-705-PR-1A]
RIN 0581-AC37
Proposed Processed Raspberry Promotion, Research, and Information
Order
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule with request for comments.
-----------------------------------------------------------------------
SUMMARY: This rule proposes the establishment of an industry-funded
promotion, research, and information program for processed raspberries.
The proposed program, Processed Raspberry Promotion, Research, and
Information Order (Proposed Order), was submitted to the Department of
Agriculture (Department) by the Washington Red Raspberry Commission
(WRRC). Under the Proposed Order, producers of raspberries for
processing and importers of processed raspberries would pay an
assessment of up to one cent per pound, with the initial assessment
rate being one cent per pound, which would be paid to the proposed
National Processed Raspberry Council (Council). Producers and importers
of less than 20,000 pounds annually of raspberries for processing and
processed raspberries respectively would be exempt from the assessment.
The proposed program would be implemented under the Commodity
Promotion, Research, and Information Act of 1996 (1996 Act). An initial
referendum would be conducted among eligible producers of raspberries
for processing and importers of processed raspberries to determine
whether they favor the implementation of the program prior to it going
into effect. This rule also announces the Agricultural Marketing
Service's (AMS) intention to request approval of new processed
raspberries information collection requirements by the Office of
Management and Budget (OMB) for the Proposed Order.
DATES: Comments must be received by June 8, 2009. Pursuant to the
Paperwork Reduction Act (PRA), comments on the information collection
burden that would result from this proposal must be received by June 8,
2009.
ADDRESSES: Interested persons are invited to submit written comments on
the Internet at https://www.regulations.gov or to the Research and
Promotion Branch, Fruit and Vegetable Programs, AMS, USDA, 1400
Independence Avenue, SW., Stop 0244, Room 0632-S, Washington, DC 20250-
0244; fax: (202) 205-2800. All comments should reference the docket
number and the date and page number of this issue of the Federal
Register and will be made available for public inspection in the above
office during regular business hours or can be viewed at https://www.regulations.gov.
Pursuant to PRA, comments regarding the accuracy of the burden
estimate, ways to minimize the burden, including the use of automated
collection techniques or other forms of information technology, or any
other aspect of this collection of information, should be sent to the
above address. In addition, comments concerning the information
collection should also be sent to the Desk Office for Agriculture,
Office of Information and Regulatory Affairs, Office of Management and
Budget, New Executive Office Building, 725 17th Street, NW., Room 725,
Washington, DC 20503.
FOR FURTHER INFORMATION CONTACT: Kimberly Coy, Marketing Specialist,
Research and Promotion Branch, Fruit and Vegetable Programs, AMS, USDA,
1400 Independence Avenue, SW., Room 0632, Stop 0244, Washington, DC
20250-0244; telephone: (202) 720-9915 or (888) 720-9917 (toll free); or
facsimile: (202) 205-2800; or e-mail: Kimberly.Coy@usda.gov.
SUPPLEMENTARY INFORMATION: This rule is issued pursuant to the
Commodity Promotion, Research, and Information Act of 1996 (1996 Act)
(7 U.S.C. 7411-7425).
Executive Order 12866
This rule has been determined not significant for purposes of
Executive Order 12866 and therefore has not been reviewed by the Office
of Management and Budget (OMB).
Executive Order 12988
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. It is not intended to have retroactive effect. This
rule will not preempt any state or local laws, regulations, or
policies, unless they represent an irreconcilable conflict with this
rule. Section 524 of the 1996 Act provides that it shall not affect or
preempt any other Federal or state law authorizing promotion or
research relating to an agricultural commodity.
Under section 519 of the 1996 Act, a person subject to an order may
file a written petition with the Department stating that an order, any
provision of an order, or any obligation imposed in connection with an
order, is not established in accordance with the law, and requesting a
modification of an order or an exemption from an order. Any petition
filed challenging an order, any provision of an order, or any
obligation imposed in connection with an order, shall be filed within
two years after the effective date of an order, provision, or
obligation subject to challenge in the petition. The petitioner will
have the opportunity for a hearing on the petition. Thereafter, the
Department will issue a ruling on the petition. The 1996 Act provides
that the district court of the United States for any district in which
the petitioner resides or conducts business shall have the jurisdiction
to review a final ruling on the petition, if the petitioner files a
complaint for that purpose not later than 20 days after the date of the
entry of the Department's final ruling.
Executive Order 13132
This proposed rule has been reviewed under Executive Order 13132,
Federalism. This Executive Order directs agencies to construe, in
regulations and otherwise, a Federal Statute to preempt State law only
when the statute contains an express preemption provision. Section 524
of the 1996 Act provides that the Act shall not affect or preempt any
other Federal or State law authorizing promotion or research relating
to an agricultural commodity.
The WRRC and the Oregon Raspberry and Blackberry Commission (ORBC),
the principal producers of processed raspberries, both administer State
marketing orders, which require all producers of raspberries to pay
assessments to support the health of their respective industries. Both
the WRRC and ORBC invest funds into research programs at their land-
grant universities and other research institutions to study disease,
pest control, and varietal development. In addition to developing and
funding production research, they also fund marketing and promotion
programs and seek to foster education and communication between
producers. However, according to the WRRC, WRRC, ORBC and international
raspberry organizations have not been able to generate the funds
necessary to support the marketing efforts needed to help expand
processed raspberry consumption and increase the demand for processed
raspberries. In order to manage increased production, increased
competition, and changing consumer habits, the WRRC believes that a
more extensive marketing program is needed. The WRRC and ORBC believe
that a
[[Page 16267]]
national research and promotion program would fund the promotional
aspect necessary to stay competitive and would place all domestic
producers and importers on an equal playing field with each investing a
fair share in promoting processed raspberries. If a national processed
raspberry program is established, the WRRC and ORBC will continue to
fund processed raspberry research in areas not likely to be the focus
of the national program.
In accordance with the 1996 Act, this proposed rule would not
preempt any of these State-legislated programs. Further, section
1208.52(h) of the Proposed Order provides for credit of assessments for
those individuals who contribute to local, regional, or State
organizations that engage in similar generic research, promotion, and
information programs as partial fulfillment of assessments due to the
Council subject to approval of the Secretary, for expenditure on
generic research, promotion and information programs conducted within
the United States.
The proposed program is not intended to duplicate any State
program. Considerable attention is being made to involve producers in
discussions regarding future program development and administration and
what the State commissions would look like prior to the initial
referendum. It is expected that farm related activities, such as
production research, would continue to be funded by the State
organizations and market development functions, such as nutritional
research and marketing programs, would shift to the Proposed Order.
Not only were the States informed throughout the development of the
national program, they were instrumental in the processed raspberry
industry's decision to institute a national program.
In 2007, representatives from the WRRC were among other raspberry
industry representatives who met with AMS representatives to discuss
the possibility of implementing a national processed raspberry
promotion, research, and information program. WRRC representatives
participated in the development of the provisions of the Proposed Order
during these meetings and with direct communication with the Oregon
Raspberry and Blackberry Commission (ORBC).
Initial Regulatory Flexibility Act Analysis
In accordance with the Regulatory Flexibility Act (RFA) [5 U.S.C.
601-612], AMS is required to examine the impact of the proposed rule on
small entities. The purpose of the RFA is to fit regulatory actions to
the scale of businesses subject to such actions so that small
businesses will not be disproportionately burdened.
The Small Business Administration defines, in 13 CFR Part 121,
small agricultural producers as those having annual receipts of no more
than $750,000 and small agricultural service firms (handlers and
importers) as those having annual receipts of no more than $7.0
million. Under these criteria, the majority of the producers and
handlers that would be affected by this Proposed Order would be
considered small entities, while most importers would not. Future,
qualified organizations certified by the Secretary for nomination
purposes, would be expected to generally consist of entities reflecting
such sizes also. Producers and importers of less than 20,000 pounds per
year of raspberries for processing and processed raspberries
respectively would be exempt under this Proposed Order. Five organic
producers and importers are also expected to be exempt from
assessments. The number of entities assessed under the program would be
around 245. Estimated revenue is expected at $1.2 million of which 43
percent is expected from imported product and 57 percent from domestic
product.
According to the WRRC, in 2006, there were approximately 195
producers of raspberries for processing and 34 processors (first
handlers) of processed raspberries in Oregon and Washington States,
which are the principal growing areas in the United States for
raspberries destined for processing. Approximately 95 percent of the
producers and 100 percent of the raspberry processors qualified under
the definition for small business owners. Although California is a
significant producer of raspberries, virtually all harvested product is
destined for the fresh market. In 2006, there were approximately 50
importers. Based on the U.S. Department of Commerce, U.S. Census
Bureau, Foreign Trade Statistics, in 2006 two countries accounted for
96 percent of the processed raspberries imported into the United
States. These countries and their share of the imports are: Chile (78
percent) and Canada (18 percent).
The 1996 Act authorizes generic programs of promotion, research,
and information for agricultural commodities. Congress found that it is
in the national public interest and vital to the welfare of the
agricultural economy of the United States to maintain and expand
existing markets and develop new markets and uses for agricultural
commodities through industry-funded, government-supervised, generic
commodity promotion programs.
The WRRC submitted this Proposed Order to: (1) Develop and finance
an effective and coordinated program of research, promotion, industry
information, and consumer education regarding processed raspberries;
(2) strengthen the position of the processed raspberry industry; and
(3) maintain, develop, and expand existing markets for processed
raspberries.
While the Proposed Order would impose certain recordkeeping
requirements on first handlers, this information could be compiled from
records currently maintained. First handlers would collect and remit
the assessments on domestic processed raspberries to the Council. First
handler responsibilities would include accurate recordkeeping and
accounting on all raspberries purchased or contracted for processing
including the number of pounds handled, the names of their producers,
and the dates raspberries were purchased. The forms require the minimum
information necessary to effectively carry out the requirements of the
program, and their use is necessary to fulfill the intent of the 1996
Act. Such records must be retained for at least two years. This
information is already maintained as a normal business practice. In
addition, as these entities currently remit assessments under either
the Washington or Oregon State programs, the additional recordkeeping
and submission impact would be minimal.
There is also a minimal paperwork burden on producers. The Proposed
Order would require producers to keep records and to provide
information to the Council or the Department when requested. However,
it is not anticipated that producers would be required to submit forms
to the Council other than for nomination to the Council. If, for
example, the Council needs information from a producer as part of the
Council's compliance program, the information would need to be obtained
through an audit of the producer's records instead of having the
producer complete and submit paperwork.
In addition, there is a minimal burden on importers. The import
assessments would be collected by U.S. Customs and Border Protection
(Customs) at time of entry into the United States. Importers would be
required to keep records and to provide information to the Council or
the Secretary of Agriculture (Secretary) when requested. However, it is
not anticipated that importers would be required to submit forms to the
Council for assessment collection because Customs conducts
recordkeeping and
[[Page 16268]]
assessment remittance at the time of product entry into the United
States. Importers who seek nomination to serve on the Council would be
required to complete a background form which would be submitted to the
Secretary.
Foreign producers from countries exporting a minimum of three
million pounds of raspberries for processing based on a three-year
average to the U.S. and at-large members seeking nomination to serve on
the Council would be required to complete a background form which would
be submitted to the Secretary.
The estimated annual cost of providing the information to the
Council by an estimated 297 respondents (195 producers, 50 importers,
34 first handlers/processors, 2 foreign producers, 5 organic producers
and importers, 10 certified organizations (for nomination purposes),
and 1 at-large member) would be $9,141.
Section 518 of the 1996 Act provides for referenda to ascertain
approval of the Proposed Order to be conducted either prior to its
going into effect or within three years after assessments first begin
under the Proposed Order. An initial referendum would be conducted
prior to putting this Proposed Order in effect. The Proposed Order also
provides for approval in a referendum to be based upon approval by a
majority of those persons voting in the referendum. Every seven years,
the Department shall conduct a referendum to determine whether
producers and importers of processed raspberries favor the
continuation, suspension, or termination of the Proposed Order. In
addition, the Department could conduct a referendum at any time; at the
request of 10 percent or more of all eligible producers of raspberries
for processing and processed raspberries importers required to pay
assessments; or if the Council requests that the Secretary hold a
referendum.
The United States is among the leading producers of raspberries.
Raspberries are grown in 46 states and are harvested late June to mid
August. The 2002 Census of Agriculture indicates that about 80 percent
of the U.S. raspberry acreage was in California, Oregon, and
Washington.
According to the United States Department of Agriculture's National
Agricultural Statistics Service (NASS) and the Foreign Agricultural
Service, in 2005, 178,300 million pounds of raspberries (fresh) with a
combined value approaching $246 million (value at point of first sale)
were produced in California, Oregon, and Washington, the three most
productive States for growing raspberries in the United States. In
2006, 179,850 million pounds were produced and utilized, at a value of
almost $275 million. California's crop is predominately delivered to
the fresh market, while Oregon and Washington are the principal
producers of processed raspberries.
Domestic production varies from year to year due to climatic
conditions and field health. Over the last fifteen years, total
domestic production of raspberries delivered to processors in the
United States (i.e., production utilized for processing) has increased
from 47.5 million pounds in 1991 to almost 75 million pounds in 2005
with most recent years averaging approximately 65 million pounds.
Washington continues to be the major supplier of processed raspberries
to the domestic market, although its market share declined from 72
percent to 51 percent between 2001 and 2006. In comparison, imported
raspberries have surged from 7.5 to 53.8 million pounds from 1991 to
2005 and decreased to 48.9 million pounds in 2006. Chile, which is the
predominate importer of processed raspberries to the United States,
supplied just over 30 percent of the market in 2005 and 2006.
Domestic uses of processed raspberries include further processing
into juices, jellies, baked goods, and consumer retailer packs. After
averaging approximately 100 million pounds for the period 1999 to 2004,
approximately 128 million pounds of processed raspberries were produced
and/or imported into the United States in 2005 and 111 million pounds
in 2006. These totals were calculated by using imports of frozen
raspberries (from USDA's Foreign Agricultural Service) and NASS reports
of production utilized for processing in Oregon and Washington. Because
of the way imports are currently reported, and because of the way NASS
reports raspberry data, the totals represent the best information
currently available.
The following countries are major exporters of raspberries to the
United States: Canada, Chile, China, France, and Poland. Canada and
Chile represented 91.5 percent share of total import tonnage in the
domestic United States market from 2002 to 2006, with 26 and 65.5
percent respectively.
The same growing conditions and harvesting period apply to the
Pacific Northwest and British Columbia, the major raspberry growing
region in Canada. Exports of processed frozen raspberries from British
Colombia to the United States ranged from 2.9 million metric tons to
5.7 million metric tons over the past five years.
Contra-season raspberry production in the southern hemisphere is
primarily located in Chile, with a harvest season beginning in December
and continuing into February. However, processed raspberries are
imported into the United States throughout the year.
The Proposed Order would authorize a fixed assessment paid by
producers of raspberries for processing and importers of processed
raspberries at a rate of up to one cent per pound, with the initial
assessment rate being one cent per pound. The assessment rate will be
reviewed, and increased or decreased as recommended by the Council and
approved by the Secretary after the first referendum is conducted as
stated in Sec. 1208.71 (a). Such an increase or decrease may occur not
more than once annually. Any change in the assessment rate shall be
subject to rulemaking by the Department, and will be reviewed, and
increased or decreased by the Secretary through rulemaking as
recommended by the Council. Any change in the assessment rate shall be
announced by the Council at least 30 days prior to going into effect.
The maximum assessment rate authorized is one cent per pound.
At the proposed rate of assessment of up to one cent per pound,
with the initial assessment rate being one cent per pound, the Council
would collect approximately $1.2 million annually based on an estimated
120 million pound supply from domestic raspberries for processing and
imports of processed raspberries. The domestic supply represents
approximately 57 percent of the total and imports represent 43 percent.
The Proposed Order would exempt producers and importers of less
than 20,000 pounds annually of raspberries for processing and processed
raspberries respectively. A review of producer delivery statistics from
Oregon and Washington States indicate that around 15 percent of all
producers would have been exempted from assessment in 2006 from the
proposed research and promotion program based on a 20,000 pounds
exemption threshold. Also, organic producers and importers would be
exempt from assessment. Section 515 of the 1996 Act provides for the
establishment of a board or council consisting of producers, importers,
and others in the marketing chain as appropriate. The Proposed Order
would provide for the establishment of the National Processed Raspberry
Council to administer the Proposed Order under AMS oversight. The
Secretary would appoint members to the Council from nominees submitted
in accordance with the Proposed Order. The WRRC proposed that the
Council be composed of 13 members and their alternates. The
[[Page 16269]]
proposed Council membership is as follows: six producer members of
raspberries for processing from States producing a minimum of three
million pounds of raspberries delivered for processing; one producer
member of raspberries for processing representing all other States that
produce less than the minimum of three million pounds of raspberries
delivered for processing; three processed raspberry importer members;
two foreign producers from countries exporting a minimum of three
million pounds of raspberries for processing to the U.S. based on a
three-year average; and one at-large member recommended by the Council.
The distribution of producer member of raspberries for processing
positions among the States producing a minimum of three million pounds
of raspberries would be proportional to the average of the total pounds
delivered to the processor for processing over the previous three
years. The States that provide less than three million pounds will be
combined into one region and will have one producer representative.
Under the Proposed Order, the Council members and alternates will
serve for a term of three years and be able to serve a maximum of two
consecutive terms. When the Council is first established, four producer
members, two importers, one of the two foreign producers, and the at-
large member and their respective alternates will be assigned initial
terms of three years; and, three producer members, one importer member,
and the second foreign producer and their respective alternates will
serve an initial term of two years. Thereafter, each of these positions
will carry a full three-year term. Members serving an initial term of
two years will be eligible to serve a second three-year term to
complete their eligibility. Council nominations and appointments will
take place in two out of every three years. Each term of office will
end on December 31, and a new term will begin on January 1.
Producers and importers would represent those entities in the
United States. The United States would be defined to include
collectively the 50 States, the District of Columbia, the Commonwealth
of Puerto Rico and the territories and possessions of the United
States.
The nominations for the six producer and alternate members from
States producing a minimum three-year average of three million pounds
of raspberries delivered for processing will be submitted to the
Council in the following manner: (1) For those States that have a State
raspberry commission or State marketing order, the State commission or
committee will nominate producers and their alternates to serve; or (2)
for those States that do not have a State commission or State marketing
order, the Council will seek nominations from the State Departments of
Agriculture for members and alternates from the specific States.
For those States producing a minimum three-year average of three
million pounds of raspberries delivered for processing that have a
State raspberry commission or State marketing order, the State
commission or committee nominations will be returned to the Council and
placed on a ballot which will then be sent to producers in the State
for a vote. The nominee for member will have received the highest
number of votes cast. The person with the second highest number of
votes cast will be the nominee for alternate. The persons with the
third and fourth place highest number of votes cast will be designated
as additional nominees for consideration by the Secretary. Once the
Council has received all of the nominations from commissions or
committees, the information will be submitted to the Secretary for
appointment. Nominations for the initial Council will be handled by the
Department. Subsequent nominations will be handled by the Council staff
and shall be submitted to the Secretary not less than 90 days prior to
the expiration of the term of office.
If the Department determines that there are no State raspberry
commissions or State marketing orders from States producing a minimum
three-year average of three million pounds of raspberries delivered for
processing, the Council will seek nominations from the State
Departments of Agriculture for members and alternates from the specific
States who may directly submit nominations to the Department for the
initial Council. Subsequent nominations shall be submitted to the
Council and will be handled by the Council staff who in turn shall
submit those nominations to the Secretary not less than 90 days prior
to the expiration of the term of office.
The distribution of the six producer and alternate seats will be
proportional to the percentage determined by the average of the total
pounds produced and delivered to processors for processing over the
previous three years divided by the average total pounds produced over
the previous three years. For example, if Washington State and Oregon
are the only two States producing a minimum of 3 million pounds each,
and Washington's previous three-year average is 62.4 million pounds and
Oregon's previous three-year average is 6.7 million pounds with the
average total pounds for the previous three years being 69.1 million
pounds, Washington would have 90 percent of the production and Oregon
would have 10 percent of the production. Therefore, Washington would
obtain five out of the six seats and Oregon would receive one seat.
The nomination for the one raspberry producer of raspberries for
processing and alternate member, who represents all other States
producing less than a minimum three-year average of three million
pounds of raspberries delivered for processing, will constitute a
region and the nominations will be submitted to the Council in the
following manner: (1) For those States that have a State raspberry
commission or State marketing order, the State commission or committee
will nominate producers and their alternates to serve; or (2) for those
States that do not have a State commission or State marketing order,
the Council will seek nominations from the State Departments of
Agriculture for the member and alternate from the specific States.
For those States producing less than a minimum three-year average
of three million pounds of raspberries delivered for processing that
have a State raspberry commission or State marketing order, the State
commission or committee nominations will be returned to the Council and
placed on a ballot which will then be sent to producers in the Region
for a vote. The nominee for member will have received the highest
number of votes cast. The person with the second highest number of
votes cast will be the nominee for alternate. The persons with the
third and fourth place highest number of votes cast will be designated
as additional nominees for consideration by the Secretary. Once the
Council has received all of the nominations from commissions or
committees, the information will be submitted to the Secretary for
appointment. Nominations for the initial Council will be handled by the
Department. Subsequent nominations will be handled by the Council staff
and shall be submitted to the Secretary not less than 90 days prior to
the expiration of the term of office.
If the Department determines that there are no State raspberry
commissions or State marketing orders from States producing less than a
minimum three-year average of three million pounds of raspberries
delivered for processing, the Council will seek nominations from the
State Departments of Agriculture for members and alternates from the
specific States. The State Departments of Agriculture would
[[Page 16270]]
have the opportunity to participate in nomination caucuses and will
directly submit as a group a single slate of nominations to the
Department for the producer position and the producer alternate
position on the Council for the initial Council. Subsequent nominations
shall be submitted to the Council and will be handled by the Council
staff who in turn shall submit those nominations to the Secretary not
less than 90 days prior to the expiration of the term of office.
Only producers from States that deliver raspberries for processing
and pay assessments under the program are eligible for nomination and
election to the Council. Average production will be based upon
Department production data for the initial nomination and production
figures generated by either the Council or the Department thereafter.
Nominations for the three processed raspberry importer member
positions and their alternates will be made by qualified national
organizations representing importers. Two nominees for each member and
each alternate position will be submitted to the Secretary for
consideration.
All qualified national organizations representing importers would
have the opportunity to participate in nomination caucuses and will
submit as a group a single slate of nominations to the Secretary for
the importer positions and the importer alternate positions on the
Council.
Eligible organizations must submit nominations to the Department
not less than 90 days prior to the expiration of the term of office. To
become a qualified national organization representing importers under
the Proposed Order, each such organization would be required to meet
the following criteria: (1) Any organization representing importers
must represent a substantial number of importers who market a
substantial volume of raspberries for processing; (2) it must have a
history of stability and permanency and have been in existence for more
than one year; (3) it must promote processed raspberry importers'
welfare; and (4) it must derive a portion of its operating funds from
importers.
If the Department determines that there are no qualified national
organizations representing importers, individuals who have paid their
assessments to the Council in the most recent fiscal year or for the
initial Council, those that imported processed raspberries into the
U.S. in the most recent fiscal year, could directly submit nominations
to the Department for the initial Council. Subsequent nominations shall
be submitted to the Council and will be handled by the Council staff
who in turn shall submit those nominations to the Secretary not less
than 90 days prior to the expiration of the term of office.
Nominations for the two foreign producer member positions and their
alternates will be made by qualified organizations representing foreign
producers. Two nominees for each member and each alternate position
will be submitted to the Secretary for consideration.
All qualified organizations representing foreign producers would
have the opportunity to participate in nomination caucuses and will
submit as a group a single slate of nominations per country to the
Secretary for foreign producer positions and the foreign producer
alternate positions on the Council.
Eligible organizations must submit nominations to the Department
not less than 90 days prior to the expiration of the term of office. To
become a qualified organization representing foreign producers under
the Proposed Order, each such organization would be required to meet
the following criteria: (1) Any organization representing foreign
producers must represent a substantial number of foreign producers who
market or produce a substantial volume of raspberries for processing;
(2) it must have a history of stability and permanency and have been in
existence for more than one year; (3) it must promote processed
raspberry foreign producers' welfare; (4) it must derive a portion of
its operating funds from foreign producers; and (5) must be from a
country exporting a minimum of three million pounds of raspberries for
processing to the U.S. based on a three-year average.
If the Department determines that there are no qualified
organizations representing foreign producer interest, individual
foreign producers may directly submit nominations to the Department for
the initial Council. Subsequent nominations shall be submitted to the
Council and will be handled by the Council staff who in turn shall
submit those nominations to the Secretary not less than 90 days prior
to the expiration of the term of office.
In recommending the at-large member and alternate, the Council can
give consideration to nutrition health professionals and others
interested in the raspberry industry. Nominations for the at-large
member and alternate will be conducted at a Council meeting by the
Council staff and shall be submitted by the Council to the Secretary
for approval not less than 90 days prior to the expiration of the term
of office. Nominations for the initial Council will be handled by the
Department.
The 1996 Act provides that to ensure fair and equitable
representation, the composition of a board or council shall reflect the
geographic distribution of the production of the agriculture commodity
in the United States and the quantity or value of the agriculture
commodity imported into the United States. The Proposed Order states
that at least once every five years, but not more frequently than once
every three years, the Council will review the geographic distribution
of United States production of processed raspberries and the quantity
and source of processed raspberry imports. If warranted, the Council
will recommend to the Secretary that membership on the Council be
altered to reflect any changes in geographic distribution of domestic
raspberry production and the quantity of imports. Also, if the level of
imports increases or decreases, importer members and alternates may be
added or reduced on the Council. However, the foreign producer seats
will remain the same regardless of the volume of imports from importing
countries.
The Proposed Order provides that all officers, employees, and
agents of the Department and of the Council are required to keep
confidential all information obtained from persons subject to the
Proposed Order. This information would be disclosed only if the
Department considers the information relevant, and the information is
revealed in a judicial proceeding or administrative hearing brought at
the direction or on the request of the Department or to which the
Department or any officer of the Department is a party. However, the
issuance of general statements based on reports or on information
relating to a number of persons subject to the Proposed Order would be
permitted, if the statements do not identify the information furnished
by any person. Finally, the publication, by direction of the
Department, of the name of any person violating the Proposed Order and
a statement of the particular provisions of the Proposed Order violated
by the person would be allowed.
Proposed recordkeeping and reporting requirements for the raspberry
promotion, research, and information program would be designed to
minimize the burden on the raspberry industry.
The estimated total cost of providing information to the Council by
all respondents would be $9,141. This total has been estimated by
multiplying 277 total hours required for reporting and recordkeeping by
$33, the average mean
[[Page 16271]]
hourly earnings of various occupations involved in keeping this
information. Data for computation of this hourly rate was obtained from
the U.S. Department of Labor Statistics.
With regard to alternatives to this proposed rule, the 1996 Act
itself does provide for authority to tailor a program according to the
individual needs of an industry. Provision is made for permissive terms
in an order in section 516 of the 1996 Act, and other sections provide
for alternatives. Section 514 of the 1996 Act provides for orders
applicable to (1) producers, (2) first handlers and other persons in
the marketing chain as appropriate, and (3) importers (if imports are
subject to assessment). Section 516 states that an order may include an
exemption of de minimis quantities of an agricultural commodity;
different payment and reporting schedules; coverage of research,
promotion, and information activities to expand, improve, or make more
efficient the marketing or use of an agricultural commodity in both
domestic and foreign markets; provision for reserve funds; provision
for credits for generic activities for those individuals who contribute
to other similar generic research, promotion, and information programs
at State, regional or local level; and assessment of imports. In
addition, section 518 of the 1996 Act provides for referenda to
ascertain approval of an order to be conducted either prior to its
going into effect or within three years after assessments first begin
under the order. An order also may provide for its approval in a
referendum to be based upon (1) a majority of those persons voting; (2)
persons voting for approval who represent a majority of the volume of
the agricultural commodity; or (3) a majority of those persons voting
for approval who also represent a majority of the volume of the
agricultural commodity. Section 515 of the 1996 Act provides for
establishment of a council from among producers, first handlers, and
others in the marketing chain as appropriate and importers, if
importers are subject to assessment.
This proposal includes provisions for both domestic and foreign
market expansion and improvement; reserve funds; credits for generic
activities; assessments on imports; and an initial referendum to be
conducted prior to the Proposed Order going into effect. Approval would
be determined by a majority of producers and importers voting for
approval.
Similar to WRRC, Oregon also has a state raspberry commission, the
Oregon Raspberry and Blackberry Commission (ORBC). The WRRC and ORBC
both administer State marketing orders, which require all producers of
raspberries to pay assessments to support the health of their
respective industries. According to WRRC, the two commissions have
developed a good working relationship with each other over the years.
Both the WRRC and ORBC invest funds into research programs at their
land-grant universities and other research institutions to study
disease, pest control, and varietal development. In addition to
developing and funding production research, they also fund marketing
and promotion programs and seek to foster education and communication
between producers. However, according to the WRRC, WRRC, ORBC and
international raspberry organizations have not been able to generate
the funds necessary to support the marketing efforts needed to help
expand processed raspberry consumption and increase the demand for
processed raspberries. In order to manage increased production,
increased competition, and changing consumer habits, the WRRC believes
that a more extensive marketing program is needed. The WRRC and ORBC
believe that a national research and promotion program would fund the
promotional aspect necessary to stay competitive and would place all
domestic producers and importers on an equal playing field with each
investing a fair share in promoting processed raspberries. The Council
may provide credits of assessments for those individuals who contribute
to local, regional, or State organizations engaged in similar generic
research, promotion, and information programs as applied to assessment
due to the Council subject to approval of the Secretary, for
expenditure on generic research, promotion and information programs
conducted within the United States. If a national processed raspberry
program is established, the WRRC and ORBC will continue to fund
processed raspberry research in areas not likely to be the focus of the
national program.
The WRRC and ORBC programs are not able to engage raspberry
production in other States or countries in a meaningful way. The
proposed program is not intended to duplicate any State program.
Considerable attention is being made to involve producers in
discussions regarding future program development and administration and
what the State commissions would look like prior to the initial
referendum. It is expected that farm related activities, such as
production research, would continue to be funded by the State
organizations and market development functions, such as nutritional
research and marketing programs, would shift to the Proposed Order.
The WRRC proposed that producers and importers of less than 20,000
pounds annually of raspberries for processing and processed raspberries
respectively, be exempt from assessments. In addition, WRRC proposed
that a producer who operates under an approved National Organic Program
(NOP) system plan, produces only products eligible to be labeled as 100
percent organic under the NOP, and is not a split operation, be exempt
from paying assessments under the Proposed Order. An importer who
imports only products eligible to be labeled as 100 percent organic
under the NOP, and is not a split operation, would also be exempt from
paying assessments.
While the Department has performed this Initial Regulatory
Flexibility Analysis regarding the impact of the proposed rule on small
entities, in order to have as much data as possible for a more
comprehensive analysis of the effects of this rule on small entities,
we are inviting comments concerning potential effects. The Department
is also requesting comments regarding the number and size of entities
covered under the Proposed Order.
Paperwork Reduction Act
In accordance with the Paperwork Reduction Act of 1995 [44 U.S.C.
Chapter 35], AMS announces its intention to request an approval of a
new information collection and recordkeeping requirements for the
proposed Processed Raspberry Program.
Title: Advisory Committee or Research and Promotion Background
Information.
OMB Number for background form AD-755: (Approved under OMB No.
0505-0001).
Expiration Date of Approval: March 31, 2009.
Title: National Research, Promotion, and Consumer Information
Programs.
OMB Number: 0581-NEW.
Expiration Date of Approval: 3 years from approval date.
Type of Request: New information collection for research and
promotion programs.
Abstract: The information collection requirements in the request
are essential to carry out the intent of the 1996 Act.
There will also be the additional burden on producers and importers
voting in referenda. The referendum ballot, which represents the
information collection requirement relating to referenda, is addressed
in a proposed rule on referendum procedures which is published
separately in this issue of the Federal Register.
[[Page 16272]]
Under the proposed program, first handlers would be required to
collect assessments from producers and file reports with and submit
assessments to the Council. While the Proposed Order would impose
certain recordkeeping requirements on first handlers, information
required under the Proposed Order could be compiled from records
currently maintained. Such records shall be retained for at least two
years beyond the marketing year of their applicability.
Under the Proposed Order, importers are responsible to pay
assessments. Importers must report the total quantity of produce
imported during the reporting period and a record of each importation
of such product during such period, giving quantity, date, and port of
entry. Under the Proposed Order, Customs would collect assessments on
imported processed raspberries and remit the funds to the Council.
An estimated 297 respondents would provide information to the
Council. They would be 195 producers, 50 importers, 34 first handlers/
processors, 5 organic producers and importers (for exemption purposes),
2 foreign producers, 10 certified organizations (for nomination
purposes), and 1 at-large member. The estimated cost of providing the
information to the Council by respondents would be $9,141. This total
has been estimated by multiplying 277 total hours required for
reporting and recordkeeping by $33, the average mean hourly earnings of
various occupations involved in keeping this information. Data for
computation of this hourly rate was obtained from the U.S. Department
of Labor Statistics.
The Proposed Order's provisions have been carefully reviewed, and
every effort has been made to minimize any unnecessary recordkeeping
costs or requirements, including efforts to utilize information already
submitted under other raspberry programs administered by the Department
and other state programs.
The proposed forms would require the minimum information necessary
to effectively carry out the requirements of the program, and their use
is necessary to fulfill the intent of the 1996 Act. Such information
can be supplied without data processing equipment or outside technical
expertise. In addition, there are no additional training requirements
for individuals filling out reports and remitting assessments to the
Council. The forms would be simple, easy to understand, and place as
small a burden as possible on the person required to file the
information.
Collecting information yearly would coincide with normal industry
business practices. The timing and frequency of collecting information
are intended to meet the needs of the industry while minimizing the
amount of work necessary to fill out the required reports. The
requirement to keep records for two years is consistent with normal
industry practices. In addition, the information to be included on
these forms is not available from other sources because such
information relates specifically to individual producers, first
handlers, processors, foreign producers, and importers who are subject
to the provisions of the 1996 Act.
Therefore, there is no practical method for collecting the required
information without the use of these forms.
Information collection requirements that are included in this
proposal include:
(1) A Background Information Form AD-755 (OMB Form No. 0505-0001).
Estimate of Burden: Public reporting for this collection of
information is estimated to average 0.5 hours per response for each
Council nominee.
Respondents: Producers, importers, foreign producers, and at-large
nominee.
Estimated Number of Respondents: 26 (52 for initial nominations to
the Council, 26 in subsequent years).
Estimated Number of Responses per Respondent: 1 every 3 years.
(0.3)
Estimated Total Annual Burden on Respondents: 26 hours for the
initial nominations to the Council and 3.9 hours annually thereafter.
(2) An Annual Report by Each First Handler of Processed
Raspberries.
Estimate of Burden: Public reporting burden for this collection of
information is estimated to average 0.5 hours per first handler
reporting on processed raspberries handled.
Respondents: First handlers.
Estimated Number of Respondents: 34.
Estimated Number of Responses per Respondent: 1.
Estimated Total Annual Burden on Respondents: 17 hours.
(3) An Exemption Application for Producers and Importers Who Would
Be Exempt from Assessments.
Estimate of Burden: Public reporting burden for this collection of
information is estimated to average 0.25 hours per producers, or
importer reporting on processed raspberries produced or imported. Upon
approval of an application, producers and importers will receive
exemption certification.
Respondents: Exempt producers and importers.
Estimated Number of Respondents: 40.
Estimated Number of Responses per Respondent: 1.
Estimated Total Annual Burden on Respondents: 10 hours.
(4) Application for Reimbursement of Assessment.
Estimate of Burden: Public reporting burden for this collection of
information is estimated to average 0.25 hours per request for
reimbursement.
Respondents: Importers.
Estimated Number of Respondents: 10.
Estimated Number of Responses per Respondent: 1.
Estimated Total Annual Burden on Respondents: 2.5 hours.
(5) A Requirement To Maintain Records Sufficient To Verify Reports
Submitted Under the Order.
Estimate of Burden: Public recordkeeping burden for keeping this
information is estimated to average 0.5 hours per record keeper
maintaining such records.
Recordkeepers: Producers, first handlers, and importers.
Estimated Number of Recordkeepers: 297.
Estimated Total Recordkeeping Hours: 148.5 hours.
(6) Application for Certification of Organizations.
Estimate of Burden: Public recordkeeping burden for this collection
of information is estimated to average 0.5 hours per application.
Respondents: Importers and foreign producer organizations.
Estimated Number of Respondents: 10.
Estimated Number of Responses per Respondent: 1.
Estimated Total Annual Burden on Respondents: 5 hours.
(7) Nomination Appointment Form.
Estimate of Burden: Public recordkeeping burden for this collection
of information is estimated to average 0.25 hours per application.
Respondents: Producers, importers, and foreign producers.
Estimated Number of Respondents: 150.
Estimated Number of Responses per Respondent: 1.
Estimated Total Annual Burden on Respondents: 37.5 hours.
(8) Nomination Appointment Ballot.
Estimate of Burden: Public recordkeeping burden for this collection
of information is estimated to average 0.25 hours per application.
Respondents: Producers and importers.
Estimated Number of Respondents: 150.
Estimated Number of Responses per Respondent: 1.
Estimated Total Annual Burden on Respondents: 37.5 hours.
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(9) Application for Assessments Credit.
Estimate of Burden: Public recordkeeping burden for this collection
of information is estimated to average 0.25 hours per application.
Respondents: Producers.
Estimated Number of Respondents: 50.
Estimated Number of Responses per Respondent: 1.
Estimated Total Annual Burden on Respondents: 12.5 hours.
(10) Organic Exemption Form.
Estimate of Burden: Public recordkeeping burden for this collection
of information is estimated to average 0.5 hours per exemption form.
Respondents: Producers and importers.
Estimated Number of Respondents: 5.
Estimated Number of Responses per Respondent: 1.
Estimated Total Annual Burden on Respondents: 2.5 hours.
Request for Public Comment Under the Paperwork Reduction Act
Comments are invited on: (a) Whether the proposed collection of
information is necessary for the proper performance of functions of the
Proposed Order and the Department's oversight of the Proposed Order,
including whether the information would have practical utility; (b) the
accuracy of the Department's estimate of the burden of the proposed
collection of information, including the validity of the methodology
and assumptions used; (c) the accuracy of the Department's estimate of
the principal growing areas in the United States for raspberries
destined for processing; (d) the accuracy of the Department's estimate
of the number of producers and first handlers of processed raspberries
that would be covered under the program; (e) ways to enhance the
quality, utility, and clarity of the information to be collected; and
(f) 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 concerning the information collection requirements
contained in this action should reference OMB No. 0581-NEW. In
addition, the docket number, date, and page number of this issue of the
Federal Register also should be referenced. Comments should be sent to
the USDA Docket Clerk, Research and Promotion Branch, Fruit and
Vegetable Programs, AMS, USDA, 1400 Independence Avenue, SW., Stop
0244, Room 0632-S, Washington, DC 20250-0244. Comments may also be sent
by facsimile to (202) 205-2800 or electronically to https://www.regulations.gov. All comments received will be available for public
inspection during regular business hours at the same address. Comments
regarding information collection should also be sent to the Office of
Management and Budget at: Desk Office for Agriculture, Office of
Information and Regulatory Affairs, Office of Management and Budget,
New Executive Office Building, 725 17th Street, NW., Room 725,
Washington, DC 20503.
OMB is required to make a decision concerning the collection of
information contained in this rule between 30 and 60 days after
publication. Therefore, a comment to OMB is best assured of having its
full effect if OMB receives it within 30 days of publication.
Background
This rule proposes the implementation of a Processed Raspberry
Promotion, Research, and Information Order (Proposed Order). The
Department received the proposal for a new Order from the Washington
Red Raspberry Commission (WRRC).
The Proposed Order is authorized under the 1996 Act which
authorizes the Department to establish agricultural commodity research
and promotion orders which may include a combination of promotion,
research, industry information, and consumer information activities
funded by mandatory assessments. These programs are designed to
maintain and expand market and uses for agricultural commodities. The
Proposed Order would provide for the continued development and
financing of a coordinated program of research, promotion, and
information for processed raspberries.
The 1996 Act provides for a number of optional provisions that
allow the tailoring of orders for different commodities. Section 516 of
the 1996 Act provides permissive terms for orders, and other sections
provide for alternatives. For example, section 514 of the 1996 Act
provides for orders applicable to (1) producers (if producers are
subject to assessment), (2) first handlers and others in the marketing
chain as appropriate, and (3) importers. Section 516 states that an
order may include an exemption of de minimis quantities of an
agricultural commodity; different payment and reporting schedules;
coverage of research, promotion, and information activities to expand,
improve, or make more efficient the marketing or use of an agricultural
commodity in both domestic and foreign markets; provision for reserve
funds; provision for credits for generic and branded activities; and
assessment of imports.
In addition, section 518 of the 1996 Act provides for referenda to
ascertain approval of an order to be conducted either prior to its
going into effect or within three years after assessments first begin
under the order. An order also may provide for its approval in a
referendum based upon different voting patterns. Section 515 provides
for establishment of a board or council from among producers, first
handlers and others in the marketing chain as appropriate, and
importers, if imports are subject to assessment.
This Proposed Order includes provisions for both domestic and
foreign market expansion and improvement, reserve funds, credit for
generic activities, and an initial referendum to be conducted prior to
the Proposed Order going into effect. Approval would be determined by a
majority of producers and importers voting for approval. Specific
procedures to be followed in the referendum will be published in a
separate Federal Register publication.
In accordance with the 1996 Act, the Department would oversee the
program's operations. In addition, the 1996 Act requires the Secretary
to conduct subsequent referenda: (1) Not later than seven years after
assessments first begin under the Proposed Order; or (2) at the request
of the Council established under the Proposed Order; or (3) at the
request of 10 percent or more of the number of persons eligible to
vote. In addition to these criteria, the 1996 Act provides that the
Secretary may conduct a referendum at any time to determine whether the
continuation, suspension, or termination of an order or a provision of
that order is favored by persons eligible to vote.
The WRRC has requested that a referendum be conducted every five
years to determine if producers and importers want the program to
continue. However, the Department has increased the time period to
seven years to make the Proposed Order consistent with other programs.
In addition, the Proposed Order allows for the Secretary to conduct a
subsequent referendum if 10 percent or more of all eligible producers
of raspberries for processing and importers of processed raspberries
request it; or if the Council requests a referendum to be held; or the
Secretary may hold one at any time.
A national research and promotion program for processed raspberries
would help the industry to address the
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many market problems it currently faces. According to the WRRC, three
main factors currently affecting processed raspberry sales, both here
in the domestic market and abroad, are increasing production, increased
competition, and changing consumer habits.
U.S. per capita consumption of processed raspberries has inched
upward during the period 1991 to 2004, reaching a high of 0.3 pounds
per person in 2003 and 2005. Over this period, consumption has ranged
from 0.1 to 0.3 pounds per capita. This fluctuation is due to the
effects of population growth, demographics of consumers, and the
availability of substitute or competitive products. Profitability for
producers of raspberries for processing depends on maintaining and
increasing processed raspberry consumption. With crop value flat over
this period, an organized market development program that grew market
demand and increased per capita consumption could improve the farm gate
value for all suppliers of processed raspberries. The WRRC believes a
generic research and promotion program would provide an equitable
manner for producers to share in the costs of product development,
nutrition and marketing research, and processed raspberry promotion.
According to the Department's Foreign Agricultural Service
statistics, from 2002-2006, imports of processed raspberries have
increased market share in the U.S. The statistics also suggests that
the total market demand in the U.S. is continuing to grow, albeit at a
rate slower than supply. The industry believes that the proposed
processed raspberry program would increase demand, grow the market in
the aggregate for all suppliers, and increase the value of processed
raspberries at the grower level.
The processed raspberry industry is facing strong competition in
the marketplace from both indirect and direct competitors. Like all
food products, processed raspberries must compete for a share of the
consumer dollar. As competition in the supermarket increases, the
processed raspberry industry must work harder to gain its share of
consumer attention at a time when the industry's competitors expand
their promotional activities.
The WRRC was established in 1976 as a State-government entity
authorized by a State marketing order which requires producers of all
varieties of raspberries pay assessments to promote raspberry
awareness, consumption, and to conduct research programs to study pest
control and varietals development. There are over 40 different
suppliers of raspberry products who make up the WRRC. These members pay
the mandatory one-half cent per pound to fund promotion efforts
directed to both consumer and industrial users.
Similar to WRRC, Oregon also has a state raspberry commission, the
Oregon Raspberry and Blackberry Commission (ORBC). The WRRC and ORBC
both administer State marketing orders, which require all producers of
raspberries to pay assessments to support the health of their
respective industries. According to WRRC, the two commissions have
developed a good working relationship with each other over the years.
Both the WRRC and ORBC invest funds into research programs at their
land grant universities and other research institutions to study
disease, pest control, and varietal development. In addition to
developing and funding production research, they also fund marketing
and promotion programs and seek to foster education and communication
between producers. However, according to the WRRC, WRRC, ORBC and
international raspberry organizations have not been able to generate
the funds necessary to support the marketing efforts needed to help
expand processed raspberry consumption and increase the demand for
processed raspberries. In order to manage increased production,
increased competition, and changing consumer habits, the WRRC believes
that a more extensive marketing program is needed. The WRRC and ORBC
believe that a national research and promotion program would fund the
promotional aspect necessary to stay competitive and would place all
domestic producers and importers on an equal playing field with each
investing a fair share in promoting processed raspberries. The Council
may provide credits of assessments for those individuals who contribute
to local, regional, or State organizations engaged in similar generic
research, promotion, and information programs as applied to assessment
due to the Council subject to approval of the Secretary, for
expenditure on generic research, promotion and information programs
conducted within the United States. If a national processed raspberry
program is established, the WRRC and ORBC will continue to fund
processed raspberry research in areas not likely to be the focus of the
national program.
In 2006, an informal strategic review was conducted by the WRRC and
the Raspberry Industry Development Council, who