Grapes Grown in Designated Area of Southeastern California; Increased Assessment Rate, 39548-39551 [2013-15621]
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39548
Federal Register / Vol. 78, No. 127 / Tuesday, July 2, 2013 / Rules and Regulations
that is specifically prohibited by law or
required by Executive order to be kept
secret in the interest of national defense
or foreign affairs, unless such
information is disclosed to Congress, the
Special Counsel, the Inspector General
of an agency, or an employee designated
by the head of the agency to receive it.
(c) Other protected activity means any
of the following:
(1) The exercise of any appeal,
complaint, or grievance right granted by
any law, rule, or regulation with regard
to remedying a violation of 5 U.S.C.
2302(b)(8), i.e., retaliation for
whistleblowing;
(2) Testifying for or otherwise
lawfully assisting any individual in the
exercise of any right granted by any law,
rule, or regulation;
(3) Cooperating with or disclosing
information to Congress, the Inspector
General of an agency, or the Special
Counsel, in accordance with applicable
provisions of law; or
(4) Refusing to obey an order that
would require the individual to violate
a law.
*
*
*
*
*
(f) Reasonable belief. An employee or
applicant may be said to have a
reasonable belief when a disinterested
observer with knowledge of the
essential facts known to and readily
ascertainable by the employee or
applicant could reasonably conclude
that the actions of the Government
evidence the violation, mismanagement,
waste, abuse, or danger in question.
■ 17. Section 1209.6 is amended by
revising paragraphs (a)(4) and (a)(5)(ii)
to read as follows:
preponderance of the evidence that the
disclosure or other protected activity
was a contributing factor in the
personnel action that was threatened,
proposed, taken, or not taken against the
appellant.
(b) However, even where the
appellant meets the burden stated in
paragraph (a) of this section, the Board
will not order corrective action if the
agency shows by clear and convincing
evidence that it would have threatened,
proposed, taken, or not taken the same
personnel action in the absence of the
disclosure or other protected activity.
■ 19. Section 1209.9 is amended by
revising paragraph (a)(6)(ii) to read as
follows:
§ 1209.6 Content of appeal; right to
hearing.
William D. Spencer,
Clerk of the Board.
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(a) * * *
(4) A description of each disclosure
evidencing whistleblowing or other
protected activity as defined in
§ 1209.4(b) of this part; and
(5) * * *
(ii) The personnel action was or will
be based wholly or in part on the
whistleblowing disclosure or other
protected activity, as described in
§ 1209.4(b) of this part.
*
*
*
*
*
■ 18. Section 1209.7 is revised to read
as follows:
§ 1209.7
Burden and degree of proof.
(a) Subject to the exception stated in
paragraph (b) of this section, in any case
involving a prohibited personnel
practice described in 5 U.S.C. 2302(b)(8)
or (b)(9)(A)(i), (B), (C), or (D), the Board
will order appropriate corrective action
if the appellant shows by a
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§ 1209.9 Content of stay request and
response.
(a) * * *
(6) * * *
(ii) The action complained of was
based on whistleblowing or other
protected activity as defined in
§ 1209.4(b) of this part; and
*
*
*
*
*
■ 20. Section 1209.13 is revised to read
as follows:
§ 1209.13 Referral of findings to the
Special Counsel.
When the Board determines in a
proceeding under this part that there is
reason to believe that a current Federal
employee may have committed a
prohibited personnel practice described
at 5 U.S.C. 2302(b)(8) or (b)(9)(A)(i), (B),
(C), or (D), the Board will refer the
matter to the Special Counsel to
investigate and take appropriate action
under 5 U.S.C. 1215.
[FR Doc. 2013–15633 Filed 7–1–13; 8:45 am]
BILLING CODE 7400–01–P
DEPARTMENT OF AGRICULTURE
Food and Nutrition Service
7 CFR Part 253
[FNS–2009–0006]
RIN 0584–AD95
Food Distribution Program on Indian
Reservations: Amendments Related to
the Food, Conservation, and Energy
Act of 2008; Approval of Information
Collection Request
Food and Nutrition Service,
USDA.
ACTION: Final rule; Notice of Approval of
Information Collection Request (ICR).
AGENCY:
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The final rule entitled Food
Distribution Program on Indian
Reservations: Amendments Related to
the Food, Conservation, and Energy Act
of 2008 was published on April 6, 2011.
The Office of Management and Budget
(OMB) cleared the associated
information collection requirements
(ICR) on December 20, 2011. This
document announces approval of the
ICR.
DATES: The ICR associated with the final
rule published in the Federal Register
on April 6, 2011, at 76 FR 18861, was
approved by OMB on December 20,
2011, under OMB Control Number
0584–0293.
FOR FURTHER INFORMATION CONTACT:
Dana Rasmussen, Chief, Policy Branch,
Food Distribution Division, Food and
Nutrition Service, USDA, 3101 Park
Center Drive, Room 506, Alexandria,
Virginia 22302, by phone at (703) 305–
2662, or via email at
Dana.Rasmussen@fns.usda.gov.
SUMMARY:
Dated: June 25, 2013.
Jeffrey J. Tribiano,
Acting Administrator, Food and Nutrition
Service.
[FR Doc. 2013–15634 Filed 7–1–13; 8:45 am]
BILLING CODE 3410–30–P
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 925
[Doc. No. AMS–FV–13–0005; FV13–925–1
FR]
Grapes Grown in Designated Area of
Southeastern California; Increased
Assessment Rate
Agricultural Marketing Service,
USDA.
ACTION: Final rule.
AGENCY:
This rule increases the
assessment rate established for the
California Desert Grape Administrative
Committee (Committee) for the 2013
and subsequent fiscal periods from
$0.0150 to $0.0165 per 18-pound lug of
grapes handled. The Committee locally
administers the marketing order that
regulates the handling of grapes grown
in a designated area of southeastern
California. Assessments upon grape
handlers are used by the Committee to
fund reasonable and necessary expenses
of the program. The fiscal period begins
January 1 and ends December 31. The
assessment rate will remain in effect
indefinitely unless modified, suspended
or terminated.
DATES: Effective July 3, 2013.
SUMMARY:
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Federal Register / Vol. 78, No. 127 / Tuesday, July 2, 2013 / Rules and Regulations
FOR FURTHER INFORMATION CONTACT:
Kathie M. Notoro, Marketing Specialist,
or Martin Engeler, Regional Director,
California Marketing Field Office,
Marketing Order and Agreement
Division, Fruit and Vegetable Program,
AMS, USDA; Telephone: (559) 487–
5901, Fax: (559) 487–5906, or Email:
Kathie.Notoro@ams.usda.gov or
Martin.Engeler@ams.usda.gov. Small
businesses may request information on
complying with this regulation by
contacting Jeffrey Smutny, Marketing
Order and Agreement Division, Fruit
and Vegetable Program, AMS, USDA,
1400 Independence Avenue SW., STOP
0237, Washington, DC 20250–0237;
Telephone: (202) 720–2491, Fax: (202)
720–8938, or Email:
Jeffrey.Smutny@ams.usda.gov.
This rule
is issued under Marketing Order No.
925, as amended (7 CFR part 925),
regulating the handling of grapes grown
in a designated area of southeastern
California, hereinafter referred to as the
‘‘order.’’ The order is effective under the
Agricultural Marketing Agreement Act
of 1937, as amended (7 U.S.C. 601–674),
hereinafter referred to as the ‘‘Act.’’
The Department of Agriculture
(USDA) is issuing this rule in
conformance with Executive Order
12866.
This rule has been reviewed under
Executive Order 12988, Civil Justice
Reform. Under the marketing order now
in effect, grape handlers in a designated
area of southeastern California are
subject to assessments. Funds to
administer the order are derived from
such assessments. It is intended that the
assessment rate as issued herein is
applicable to all assessable grapes
beginning on January 1, 2013, and will
continue until amended, suspended, or
terminated.
The Act provides that administrative
proceedings must be exhausted before
parties may file suit in court. Under
section 608c(15)(A) of the Act, any
handler subject to an order may file
with USDA a petition stating that the
order, any provision of the order, or any
obligation imposed in connection with
the order is not in accordance with law
and request a modification of the order
or to be exempted therefrom. Such
handler is afforded the opportunity for
a hearing on the petition. After the
hearing, USDA would rule on the
petition. The Act provides that the
district court of the United States in any
district in which the handler is an
inhabitant, or has his or her principal
place of business, has jurisdiction to
review USDA’s ruling on the petition,
provided an action is filed not later than
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SUPPLEMENTARY INFORMATION:
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20 days after the date of the entry of the
ruling.
This rule increases the assessment
rate established for the Committee for
the 2013 and subsequent fiscal periods
from $0.0150 to $0.0165 per 18-pound
lug of grapes handled.
The grape order provides authority for
the Committee, with the approval of
USDA, to formulate an annual budget of
expenses and collect assessments from
handlers to administer the program. The
members of the Committee are
producers and handlers of grapes grown
in a designated area of southeastern
California. They are familiar with the
Committee’s needs and with the costs
for goods and services in their local area
and are thus in a position to formulate
an appropriate budget and assessment
rate. The assessment rate is formulated
and discussed in a public meeting.
Thus, all directly affected persons have
an opportunity to participate and
provide input.
For the 2012 and subsequent fiscal
periods, the Committee recommended,
and the USDA approved, an assessment
rate that would continue in effect from
fiscal period to fiscal period unless
modified, suspended, or terminated by
USDA based upon a recommendation
and information submitted by the
Committee or other information
available to USDA.
The Committee met on March 4, 2013,
and unanimously recommended 2013
expenditures of $100,000 and an
assessment rate of $0.0165 per 18-pound
lug of grapes handled. In comparison,
last year’s budgeted expenditures were
$95,500. The recommended assessment
rate is $0.0015 higher than the $0.0150
rate currently in effect. The Committee
also estimated shipments for the 2013
season to be 5,800,000 lugs. The higher
assessment rate, applied to estimated
shipments of 5,800,000 lugs, is expected
to generate $95,700 in revenue, which is
slightly less than the budgeted
expenses. However, combining this
revenue with $4,300 from financial
operating reserves will provide
sufficient revenue to cover the
Committee’s budgeted expenses.
The major expenditures
recommended by the Committee for the
2013 fiscal period include $15,500 for
research, $17,000 for general office
expenses, and $67,500 for management
and compliance expenses. In
comparison, major expenditures for the
2012 fiscal period included $15,500 for
research, $17,500 for general office
expenses, and $62,500 for management
and compliance expenses.
The assessment rate recommended by
the Committee was derived by
evaluating several factors, including
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39549
estimated shipments for the 2013
season, budgeted expenses, and the
level of available financial reserves. The
Committee determined that it could
utilize $4,300 from its financial reserves
and still maintain the reserves at an
acceptable level. The remaining $95,700
necessary to meet budgeted expenses
will need to be raised through
assessments. Thus, dividing the $95,700
in necessary assessment revenue by
2013 estimated shipments of 5,800,000
lugs results in an assessment rate of
$0.0165.
Reserve funds by the end of 2013 are
projected at $53,972, which is well
within the amount authorized under the
order. Section 925.41 of the order
permits the Committee to maintain
approximately one fiscal period’s
expenses in reserve.
The assessment rate will continue in
effect indefinitely unless modified,
suspended, or terminated by USDA
based upon a recommendation and
information submitted by the
Committee or other available
information.
Although this assessment rate will be
in effect for an indefinite period, the
Committee will continue to meet prior
to or during each fiscal period to
recommend a budget of expenses and
consider recommendations for
modification of the assessment rate. The
dates and times of Committee meetings
are available from the Committee or
USDA. Committee meetings are open to
the public and interested persons may
express their views at these meetings.
USDA will evaluate the Committee
recommendations and other available
information to determine whether
modification of the assessment rate is
needed. Further rulemaking will be
undertaken as necessary. The
Committee’s 2013 budget and those for
subsequent fiscal periods will be
reviewed and, as appropriate, approved
by USDA.
Final Regulatory Flexibility Analysis
Pursuant to requirements set forth in
the Regulatory Flexibility Act (RFA) (5
U.S.C. 601–612), the Agricultural
Marketing Service (AMS) has
considered the economic impact of this
rule on small entities. Accordingly,
AMS has prepared this final regulatory
flexibility analysis.
The purpose of the RFA is to fit
regulatory actions to the scale of
businesses subject to such actions in
order that small businesses will not be
unduly or disproportionately burdened.
Marketing orders issued pursuant to the
Act, and the rules issued thereunder, are
unique in that they are brought about
through group action of essentially
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Federal Register / Vol. 78, No. 127 / Tuesday, July 2, 2013 / Rules and Regulations
small entities acting on their own
behalf.
There are approximately 14 handlers
of southeastern California grapes who
are subject to regulation under the order
and about 41 grape producers in the
production area. Small agricultural
service firms are defined by the Small
Business Administration (13 CFR
121.201) as those having annual receipts
of less than $7,000,000, and small
agricultural producers are defined as
those whose annual receipts are less
than $750,000. Nine of the 14 handlers
subject to regulation have annual grape
sales of less than $7,000,000, according
to Committee and USDA data. In
addition, it is estimated that ten of the
41 producers have annual receipts of
less than $750,000. Based on the
foregoing, it may be concluded that a
majority of grape handlers regulated
under the order, and about ten of the
producers could be classified as small
entities under the Small Business
Administration definitions.
This rule increases the assessment
rate established for the Committee and
collected from handlers for the 2013 and
subsequent fiscal periods. The
Committee unanimously recommended
an assessment rate of $0.0165 per 18pound lug of grapes handled, and 2013
expenditures of $100,000. The
assessment rate of $0.0165 is $0.0015
higher than the 2012 rate currently in
effect. The quantity of assessable grapes
for the 2013 season is estimated at
5,800,000 18-pound lugs. Thus, the
$0.0165 rate should generate $95,700 in
income. Combined with $4,300 from
financial reserves, this should provide
adequate revenue to meet the 2013 fiscal
period expenses. In addition, reserve
funds at the end of the year are
projected to be $53,972, which is well
within the order’s limitation of
approximately one fiscal period’s
expenses.
The major expenditures
recommended by the Committee for the
2013 fiscal period include $15,500 for
research, $17,000 for general office
expenses, and $67,500 for management
and compliance expenses. In
comparison, major expenditures for the
2012 fiscal period included $15,500 for
research, $17,500 for general office
expenses, and $62,500 for management
and compliance expenses.
Prior to arriving at this budget, the
Committee considered alternative
expenditures and assessment rates,
including not increasing the $0.0150
assessment rate currently in effect.
Based on a crop estimate of 5,800,000
18-pound lugs, the Committee
ultimately determined that revenue
generated from an assessment rate of
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$0.0165, combined with funds from the
financial reserve, should adequately
cover increased expenses while
providing an adequate 2013 ending
financial reserve.
A review of historical crop and price
information, as well as preliminary
information pertaining to the 2013
season indicates that the producer price
for southeastern California grapes for
the 2013 season could average about
$8.00 per 18-pound lug. Utilizing this
estimate and the assessment rate of
$0.0165, estimated assessment revenue
as a percentage of total estimated
producer revenue should be 0.20
percent for the 2013 season ($0.0165
divided by $8.00 per 18-pound lug).
Thus, the assessment revenue should be
well below 1 percent of estimated
producer revenue in 2013.
This action increases the assessment
obligation imposed on handlers. While
assessments impose some additional
costs on handlers, the costs are minimal
and uniform on all handlers. Some of
the additional costs may be passed on
to producers. However, these costs
should be offset by the benefits derived
by the operation of the order. In
addition, the Committee’s meeting was
widely publicized throughout the grape
production area and all interested
persons were invited to attend and
participate in Committee deliberations
on all issues. Like all Committee
meetings, the March 4, 2013, meeting
was a public meeting and all entities,
both large and small, were able to
express views on this issue.
In accordance with the Paperwork
Reduction Act of 1995, (44 U.S.C.
Chapter 35), the order’s information
collection requirements have been
previously approved by the Office of
Management and Budget (OMB) and
assigned OMB No. 0581–0189. No
changes in those requirements as a
result of this action are necessary.
Should any changes become necessary,
they would be submitted to OMB for
approval.
This rule imposes no additional
reporting or recordkeeping requirements
on either small or large California grape
handlers. As with all Federal marketing
order programs, reports and forms are
periodically reviewed to reduce
information requirements and
duplication by industry and public
sector agencies.
AMS is committed to complying with
the E-Government Act, to promote the
use of the internet and other
information technologies to provide
increased opportunities for citizen
access to Government information and
services, and for other purposes.
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USDA has not identified any relevant
Federal rules that duplicate, overlap, or
conflict with this action.
A proposed rule concerning this
action was published in the Federal
Register on May 14, 2013 (78 FR 28147).
Copies of the proposed rule were also
mailed or sent via facsimile to all grape
handlers. Finally, the proposal was
made available through the internet by
USDA and the Office of the Federal
Register. A 15-day comment period
ending May 29, 2013, was provided for
interested persons to respond to the
proposal. No comments were received.
A small business guide on complying
with fruit, vegetable, and specialty crop
marketing agreements and orders may
be viewed at: www.ams.usda.gov/
MarketingOrdersSmallBusinessGuide.
Any questions about the compliance
guide should be sent to Jeffrey Smutny
at the previously-mentioned address in
the FOR FURTHER INFORMATION CONTACT
section.
After consideration of all relevant
material presented, including the
information and recommendation
submitted by the Committee and other
available information provided, it is
hereby found that this rule, as
hereinafter set forth, will tend to
effectuate the declared policy of the Act.
Pursuant to 5 U.S.C. 553, it is also
found and determined that good cause
exists for not postponing the effective
date of this rule until 30 days after
publication in the Federal Register
because: (1) The 2013 fiscal period
began on January 1, 2013, and the
marketing order requires that the
assessment rate for each fiscal period
apply to all assessable grapes handled
during such fiscal period; (2) the
Committee needs to have sufficient
funds to pay its expenses, which are
incurred on a continuous basis; and (3)
handlers are aware of this action, which
was unanimously recommended by the
Committee at a public meeting and is
similar to other assessment rate actions
issued in past years. Also, a 15-day
comment period was provided for in the
proposed rule.
List of Subjects in 7 CFR Part 925
Grapes, Marketing agreements,
Reporting and recordkeeping
requirements.
For the reasons set forth in the
preamble, 7 CFR part 925 is amended as
follows:
PART 925—GRAPES GROWN IN A
DESIGNATED AREA OF
SOUTHEASTERN CALIFORNIA
1. The authority citation for 7 CFR
part 925 continues to read as follows:
■
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Federal Register / Vol. 78, No. 127 / Tuesday, July 2, 2013 / Rules and Regulations
Authority: 7 U.S.C. 601–674.
2. Section 925.215 is revised to read
as follows:
■
§ 925.215
Assessment rate.
On and after January 1, 2013, an
assessment rate of $0.0165 per 18-pound
lug is established for grapes grown in a
designated area of southeastern
California.
Dated: June 25, 2013.
Rex A. Barnes,
Associate Administrator, Agricultural
Marketing Service.
[FR Doc. 2013–15621 Filed 7–1–13; 8:45 am]
BILLING CODE P
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1205
[Doc. AMS–CN–12–0065]
Cotton Board Rules and Regulations:
Adjusting Supplemental Assessment
on Imports (2013 Amendment)
Agricultural Marketing Service,
USDA.
ACTION: Direct Final Rule.
AGENCY:
The Agricultural Marketing
Service (AMS) is amending the Cotton
Board Rules and Regulations, decreasing
the value assigned to imported cotton
for the purposes of calculating
supplemental assessments collected for
use by the Cotton Research and
Promotion Program. This amendment is
required each year to assure that
assessments collected on imported
cotton and the cotton content of
imported products will be the same as
those paid on domestically produced
cotton. In addition, AMS is changing
two Harmonized Tariff Schedule (HTS)
statistical reporting numbers that were
amended since the last assessment
adjustment in 2012.
DATES: This direct final rule is effective
September 3, 2013, without further
action or notice, unless significant
adverse comment is received by August
1, 2013. If significant adverse comment
is received, AMS will publish a timely
withdrawal of the amendment in the
Federal Register.
ADDRESSES: Written comments may be
submitted to the addresses specified
below. All comments will be made
available to the public. Please do not
include personally identifiable
information (such as name, address, or
other contact information) or
confidential business information that
you do not want publically disclosed.
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SUMMARY:
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All comments may be posted on the
Internet and can be retrieved by most
Internet search engines. Comments may
be submitted anonymously.
Comments, identified by AMS–CN–
12–0065, may be submitted
electronically through the Federal
eRulemaking Portal at https://
www.regulations.gov. Please follow the
instructions for submitting comments.
In addition, comments may be
submitted by mail or hand delivery to
Cotton Research and Promotion Staff,
Cotton and Tobacco Programs, AMS,
USDA, 100 Riverside Parkway, Suite
101, Fredericksburg, Virginia, 22406.
Comments should be submitted in
triplicate. All comments received will
be made available for public inspection
at Cotton and Tobacco Programs, AMS,
USDA, 100 Riverside Parkway, Suite
101, Fredericksburg, Virginia, 22406. A
copy of this notice may be found at:
www.regulations.gov .
FOR FURTHER INFORMATION CONTACT:
Shethir M. Riva, Chief, Research and
Promotion Staff, Cotton and Tobacco
Programs, AMS, USDA, 100 Riverside
Parkway, Suite 101, Fredericksburg,
Virginia, 22406, telephone (540) 361–
2726, facsimile (540) 361–1199, or email
at Shethir.Riva@ams.usda.gov.
SUPPLEMENTARY INFORMATION:
A. Background
Amendments to the Cotton Research
and Promotion Act (7 U.S.C. 2101–2118)
(Act) were enacted by Congress under
Subtitle G of Title XIX of the Food,
Agriculture, Conservation, and Trade
Act of 1990 (Pub. L. 101–624, 104 stat.
3909, November 28, 1990). These
amendments contained two provisions
that authorize changes in the funding
procedures for the Cotton Research and
Promotion Program. These provisions
provide for: (1) the assessment of
imported cotton and cotton products;
and (2) termination of refunds to cotton
producers. (Prior the 1990 amendments
to the Act, producers could request
assessment refunds.)
As amended, the Cotton Research and
Promotion Order (7 CFR part 1205)
(Order) was approved by producers and
importers voting in a referendum held
July 17–26, 1991, and the amended
Order was published in the Federal
Register on December 10, 1991, (56 FR
64470). A proposed rule implementing
the amended Order was published in
the Federal Register on December 17,
1991, (56 FR 65450). Implementing
rules were published on July 1 and 2,
1992, (57 FR 29181) and (57 FR 29431),
respectively.
This direct final rule would amend
the value assigned to imported cotton in
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39551
the Cotton Board Rules and Regulations
(7 CFR part 1205.510(b)(2)) that is used
to determine the Cotton Research and
Promotion assessment on imported
cotton and cotton products. The total
value of assessment levied on cotton
imports is the sum of two parts. The
first part of the assessment is based on
the weight of cotton imported—levied at
a rate of $1 per bale of cotton, which is
equivalent to 500 pounds, or $1 per
226.8 kilograms of cotton. The second
part of the import assessment (referred
to as the supplemental assessment) is
based on the value of imported cotton
lint or the cotton contained in imported
cotton products—levied at a rate of fivetenths of one percent of the value of
domestically produced cotton.
Section 1205.510(b)(2) of the Cotton
Research and Promotion Rules and
Regulations provides for assigning the
calendar year weighted average price
received by U.S. farmers for Upland
cotton to represent the value of
imported cotton. This is so that the
assessment on domestically produced
cotton and the assessment on imported
cotton and the cotton content of
imported products is the same. The
source for the average price statistic is
Agricultural Prices, a publication of the
National Agricultural Statistics Service
(NASS) of the Department of
Agriculture. Use of the weighted average
price figure in the calculation of
supplemental assessments on imported
cotton and the cotton content of
imported products will yield an
assessment that is the same as
assessments paid on domestically
produced cotton.
The current value of imported cotton
as published in 2012 in the Federal
Register (77 FR 51867) for the purpose
of calculating assessments on imported
cotton is $0.014109 per kilogram. Using
the Average Weighted Priced received
by U.S. farmers for Upland cotton for
the calendar year 2012, this direct final
rule would amend the new value of
imported cotton to $0.012876 per
kilogram to reflect the price paid by U.S.
farmers for Upland cotton during 2012.
An example of the complete
assessment formula and how the figures
are obtained is as follows:
One bale is equal to 500 pounds.
One kilogram equals 2.2046 pounds.
One pound equals 0.453597
kilograms.
One Dollar per Bale Assessment
Converted to Kilograms
A 500-pound bale equals 226.8 kg.
(500 × 0.453597).
$1 per bale assessment equals
$0.002000 per pound or $0.2000 cents
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Agencies
[Federal Register Volume 78, Number 127 (Tuesday, July 2, 2013)]
[Rules and Regulations]
[Pages 39548-39551]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-15621]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 925
[Doc. No. AMS-FV-13-0005; FV13-925-1 FR]
Grapes Grown in Designated Area of Southeastern California;
Increased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: This rule increases the assessment rate established for the
California Desert Grape Administrative Committee (Committee) for the
2013 and subsequent fiscal periods from $0.0150 to $0.0165 per 18-pound
lug of grapes handled. The Committee locally administers the marketing
order that regulates the handling of grapes grown in a designated area
of southeastern California. Assessments upon grape handlers are used by
the Committee to fund reasonable and necessary expenses of the program.
The fiscal period begins January 1 and ends December 31. The assessment
rate will remain in effect indefinitely unless modified, suspended or
terminated.
DATES: Effective July 3, 2013.
[[Page 39549]]
FOR FURTHER INFORMATION CONTACT: Kathie M. Notoro, Marketing
Specialist, or Martin Engeler, Regional Director, California Marketing
Field Office, Marketing Order and Agreement Division, Fruit and
Vegetable Program, AMS, USDA; Telephone: (559) 487-5901, Fax: (559)
487-5906, or Email: Kathie.Notoro@ams.usda.gov or
Martin.Engeler@ams.usda.gov. Small businesses may request information
on complying with this regulation by contacting Jeffrey Smutny,
Marketing Order and Agreement Division, Fruit and Vegetable Program,
AMS, USDA, 1400 Independence Avenue SW., STOP 0237, Washington, DC
20250-0237; Telephone: (202) 720-2491, Fax: (202) 720-8938, or Email:
Jeffrey.Smutny@ams.usda.gov.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing Order
No. 925, as amended (7 CFR part 925), regulating the handling of grapes
grown in a designated area of southeastern California, hereinafter
referred to as the ``order.'' The order is effective under the
Agricultural Marketing Agreement Act of 1937, as amended (7 U.S.C. 601-
674), hereinafter referred to as the ``Act.''
The Department of Agriculture (USDA) is issuing this rule in
conformance with Executive Order 12866.
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. Under the marketing order now in effect, grape handlers
in a designated area of southeastern California are subject to
assessments. Funds to administer the order are derived from such
assessments. It is intended that the assessment rate as issued herein
is applicable to all assessable grapes beginning on January 1, 2013,
and will continue until amended, suspended, or terminated.
The Act provides that administrative proceedings must be exhausted
before parties may file suit in court. Under section 608c(15)(A) of the
Act, any handler subject to an order may file with USDA a petition
stating that the order, any provision of the order, or any obligation
imposed in connection with the order is not in accordance with law and
request a modification of the order or to be exempted therefrom. Such
handler is afforded the opportunity for a hearing on the petition.
After the hearing, USDA would rule on the petition. The Act provides
that the district court of the United States in any district in which
the handler is an inhabitant, or has his or her principal place of
business, has jurisdiction to review USDA's ruling on the petition,
provided an action is filed not later than 20 days after the date of
the entry of the ruling.
This rule increases the assessment rate established for the
Committee for the 2013 and subsequent fiscal periods from $0.0150 to
$0.0165 per 18-pound lug of grapes handled.
The grape order provides authority for the Committee, with the
approval of USDA, to formulate an annual budget of expenses and collect
assessments from handlers to administer the program. The members of the
Committee are producers and handlers of grapes grown in a designated
area of southeastern California. They are familiar with the Committee's
needs and with the costs for goods and services in their local area and
are thus in a position to formulate an appropriate budget and
assessment rate. The assessment rate is formulated and discussed in a
public meeting. Thus, all directly affected persons have an opportunity
to participate and provide input.
For the 2012 and subsequent fiscal periods, the Committee
recommended, and the USDA approved, an assessment rate that would
continue in effect from fiscal period to fiscal period unless modified,
suspended, or terminated by USDA based upon a recommendation and
information submitted by the Committee or other information available
to USDA.
The Committee met on March 4, 2013, and unanimously recommended
2013 expenditures of $100,000 and an assessment rate of $0.0165 per 18-
pound lug of grapes handled. In comparison, last year's budgeted
expenditures were $95,500. The recommended assessment rate is $0.0015
higher than the $0.0150 rate currently in effect. The Committee also
estimated shipments for the 2013 season to be 5,800,000 lugs. The
higher assessment rate, applied to estimated shipments of 5,800,000
lugs, is expected to generate $95,700 in revenue, which is slightly
less than the budgeted expenses. However, combining this revenue with
$4,300 from financial operating reserves will provide sufficient
revenue to cover the Committee's budgeted expenses.
The major expenditures recommended by the Committee for the 2013
fiscal period include $15,500 for research, $17,000 for general office
expenses, and $67,500 for management and compliance expenses. In
comparison, major expenditures for the 2012 fiscal period included
$15,500 for research, $17,500 for general office expenses, and $62,500
for management and compliance expenses.
The assessment rate recommended by the Committee was derived by
evaluating several factors, including estimated shipments for the 2013
season, budgeted expenses, and the level of available financial
reserves. The Committee determined that it could utilize $4,300 from
its financial reserves and still maintain the reserves at an acceptable
level. The remaining $95,700 necessary to meet budgeted expenses will
need to be raised through assessments. Thus, dividing the $95,700 in
necessary assessment revenue by 2013 estimated shipments of 5,800,000
lugs results in an assessment rate of $0.0165.
Reserve funds by the end of 2013 are projected at $53,972, which is
well within the amount authorized under the order. Section 925.41 of
the order permits the Committee to maintain approximately one fiscal
period's expenses in reserve.
The assessment rate will continue in effect indefinitely unless
modified, suspended, or terminated by USDA based upon a recommendation
and information submitted by the Committee or other available
information.
Although this assessment rate will be in effect for an indefinite
period, the Committee will continue to meet prior to or during each
fiscal period to recommend a budget of expenses and consider
recommendations for modification of the assessment rate. The dates and
times of Committee meetings are available from the Committee or USDA.
Committee meetings are open to the public and interested persons may
express their views at these meetings. USDA will evaluate the Committee
recommendations and other available information to determine whether
modification of the assessment rate is needed. Further rulemaking will
be undertaken as necessary. The Committee's 2013 budget and those for
subsequent fiscal periods will be reviewed and, as appropriate,
approved by USDA.
Final Regulatory Flexibility Analysis
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS)
has considered the economic impact of this rule on small entities.
Accordingly, AMS has prepared this final regulatory flexibility
analysis.
The purpose of the RFA is to fit regulatory actions to the scale of
businesses subject to such actions in order that small businesses will
not be unduly or disproportionately burdened. Marketing orders issued
pursuant to the Act, and the rules issued thereunder, are unique in
that they are brought about through group action of essentially
[[Page 39550]]
small entities acting on their own behalf.
There are approximately 14 handlers of southeastern California
grapes who are subject to regulation under the order and about 41 grape
producers in the production area. Small agricultural service firms are
defined by the Small Business Administration (13 CFR 121.201) as those
having annual receipts of less than $7,000,000, and small agricultural
producers are defined as those whose annual receipts are less than
$750,000. Nine of the 14 handlers subject to regulation have annual
grape sales of less than $7,000,000, according to Committee and USDA
data. In addition, it is estimated that ten of the 41 producers have
annual receipts of less than $750,000. Based on the foregoing, it may
be concluded that a majority of grape handlers regulated under the
order, and about ten of the producers could be classified as small
entities under the Small Business Administration definitions.
This rule increases the assessment rate established for the
Committee and collected from handlers for the 2013 and subsequent
fiscal periods. The Committee unanimously recommended an assessment
rate of $0.0165 per 18-pound lug of grapes handled, and 2013
expenditures of $100,000. The assessment rate of $0.0165 is $0.0015
higher than the 2012 rate currently in effect. The quantity of
assessable grapes for the 2013 season is estimated at 5,800,000 18-
pound lugs. Thus, the $0.0165 rate should generate $95,700 in income.
Combined with $4,300 from financial reserves, this should provide
adequate revenue to meet the 2013 fiscal period expenses. In addition,
reserve funds at the end of the year are projected to be $53,972, which
is well within the order's limitation of approximately one fiscal
period's expenses.
The major expenditures recommended by the Committee for the 2013
fiscal period include $15,500 for research, $17,000 for general office
expenses, and $67,500 for management and compliance expenses. In
comparison, major expenditures for the 2012 fiscal period included
$15,500 for research, $17,500 for general office expenses, and $62,500
for management and compliance expenses.
Prior to arriving at this budget, the Committee considered
alternative expenditures and assessment rates, including not increasing
the $0.0150 assessment rate currently in effect. Based on a crop
estimate of 5,800,000 18-pound lugs, the Committee ultimately
determined that revenue generated from an assessment rate of $0.0165,
combined with funds from the financial reserve, should adequately cover
increased expenses while providing an adequate 2013 ending financial
reserve.
A review of historical crop and price information, as well as
preliminary information pertaining to the 2013 season indicates that
the producer price for southeastern California grapes for the 2013
season could average about $8.00 per 18-pound lug. Utilizing this
estimate and the assessment rate of $0.0165, estimated assessment
revenue as a percentage of total estimated producer revenue should be
0.20 percent for the 2013 season ($0.0165 divided by $8.00 per 18-pound
lug). Thus, the assessment revenue should be well below 1 percent of
estimated producer revenue in 2013.
This action increases the assessment obligation imposed on
handlers. While assessments impose some additional costs on handlers,
the costs are minimal and uniform on all handlers. Some of the
additional costs may be passed on to producers. However, these costs
should be offset by the benefits derived by the operation of the order.
In addition, the Committee's meeting was widely publicized throughout
the grape production area and all interested persons were invited to
attend and participate in Committee deliberations on all issues. Like
all Committee meetings, the March 4, 2013, meeting was a public meeting
and all entities, both large and small, were able to express views on
this issue.
In accordance with the Paperwork Reduction Act of 1995, (44 U.S.C.
Chapter 35), the order's information collection requirements have been
previously approved by the Office of Management and Budget (OMB) and
assigned OMB No. 0581-0189. No changes in those requirements as a
result of this action are necessary. Should any changes become
necessary, they would be submitted to OMB for approval.
This rule imposes no additional reporting or recordkeeping
requirements on either small or large California grape handlers. As
with all Federal marketing order programs, reports and forms are
periodically reviewed to reduce information requirements and
duplication by industry and public sector agencies.
AMS is committed to complying with the E-Government Act, to promote
the use of the internet and other information technologies to provide
increased opportunities for citizen access to Government information
and services, and for other purposes.
USDA has not identified any relevant Federal rules that duplicate,
overlap, or conflict with this action.
A proposed rule concerning this action was published in the Federal
Register on May 14, 2013 (78 FR 28147). Copies of the proposed rule
were also mailed or sent via facsimile to all grape handlers. Finally,
the proposal was made available through the internet by USDA and the
Office of the Federal Register. A 15-day comment period ending May 29,
2013, was provided for interested persons to respond to the proposal.
No comments were received.
A small business guide on complying with fruit, vegetable, and
specialty crop marketing agreements and orders may be viewed at:
www.ams.usda.gov/MarketingOrdersSmallBusinessGuide. Any questions about
the compliance guide should be sent to Jeffrey Smutny at the
previously-mentioned address in the FOR FURTHER INFORMATION CONTACT
section.
After consideration of all relevant material presented, including
the information and recommendation submitted by the Committee and other
available information provided, it is hereby found that this rule, as
hereinafter set forth, will tend to effectuate the declared policy of
the Act.
Pursuant to 5 U.S.C. 553, it is also found and determined that good
cause exists for not postponing the effective date of this rule until
30 days after publication in the Federal Register because: (1) The 2013
fiscal period began on January 1, 2013, and the marketing order
requires that the assessment rate for each fiscal period apply to all
assessable grapes handled during such fiscal period; (2) the Committee
needs to have sufficient funds to pay its expenses, which are incurred
on a continuous basis; and (3) handlers are aware of this action, which
was unanimously recommended by the Committee at a public meeting and is
similar to other assessment rate actions issued in past years. Also, a
15-day comment period was provided for in the proposed rule.
List of Subjects in 7 CFR Part 925
Grapes, Marketing agreements, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 925 is
amended as follows:
PART 925--GRAPES GROWN IN A DESIGNATED AREA OF SOUTHEASTERN
CALIFORNIA
0
1. The authority citation for 7 CFR part 925 continues to read as
follows:
[[Page 39551]]
Authority: 7 U.S.C. 601-674.
0
2. Section 925.215 is revised to read as follows:
Sec. 925.215 Assessment rate.
On and after January 1, 2013, an assessment rate of $0.0165 per 18-
pound lug is established for grapes grown in a designated area of
southeastern California.
Dated: June 25, 2013.
Rex A. Barnes,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2013-15621 Filed 7-1-13; 8:45 am]
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