Raisins Produced From Grapes Grown in California; Increased Assessment Rate, 53022-53024 [2015-21850]
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Federal Register / Vol. 80, No. 170 / Wednesday, September 2, 2015 / Proposed Rules
Microbialbased agriculture and biotechnology
rely on superior production strains, new
strains with novel characteristics, and
reference strains for comparative
purposes. Such strains are often difficult
to acquire or are cost prohibitive for
many researchers. ARS has a staff
dedicated to the acquisition and
distribution of microbial germplasm in
which patented strains can be deposited
in and distributed from its Patent
Culture Collection for a one-time fee to
cover maintenance and distribution
costs.
ARS’ Patent Culture Collection
receives about 120 patent deposits per
year, and distributes about 450 cultures
per year. Nearly all of the accessions
and distributions are requested by
companies, universities, or Government
agencies. Currently, ARS charges $500
for each microbial culture deposit, as set
forth in 7 CFR 504.2(a). For each
microbial culture distribution ARS
charges $20, as set forth in 7 CFR
504.2(b). The current fees, which were
established in 1985, do not reflect the
actual costs of providing materials and
services as set forth in the regulation.
ARS proposes to increase these fees to
reflect their actual costs of $670 and
$40, respectively, and to apply the
distribution fee to all patent deposits
regardless of the date of the deposit.
This will not include back billing for
deposits.
ARS also requests to add pay.gov as
a method of paying deposit and
distributions fees. Currently, payment to
the Department of Agriculture can only
be made by check, draft, or money order
(7 CFR 504.3(b)).
The proposed increased fees will
enable ARS’ Patent Culture Collection to
continue its mission of supporting
microbiological research and
biotechnological innovation, and serve
as a repository where patented
microbial strains can be deposited and
distributed to the scientific community.
The proposed new fee structure and
method of receiving payments will
require 7 CFR 504.2(a) and (b) and
504.3(b) to be amended.
asabaliauskas on DSK5VPTVN1PROD with PROPOSALS
SUPPLEMENTARY INFORMATION:
Dated: August 11, 2015.
Simon Y. Liu,
Associate Administrator, ARS.
[FR Doc. 2015–20844 Filed 9–1–15; 8:45 am]
BILLING CODE 3410–03–P
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 989
[Doc. No. AMS–FV–15–0032; FV15–989–2
PR]
Raisins Produced From Grapes Grown
in California; Increased Assessment
Rate
Agricultural Marketing Service,
USDA.
ACTION: Proposed rule.
AGENCY:
This proposed rule would
implement a recommendation from the
Raisin Administrative Committee
(committee) to increase the assessment
rate established for the 2015–16 and
subsequent crop years from $14.00 to
$17.00 per ton of California raisins
handled under the marketing order
(order). The committee locally
administers the order and is comprised
of producers and handlers of raisins
operating within the area of production.
Assessments upon raisin handlers are
used by the committee to fund
reasonable and necessary expenses of
the program. The crop year begins
August 1 and ends July 31. The
assessment rate would remain in effect
indefinitely unless modified,
suspended, or terminated.
DATES: Comments must be received by
October 2, 2015.
ADDRESSES: Interested persons are
invited to submit written comments
concerning this proposed rule.
Comments must be sent to the Docket
Clerk, Marketing Order and Agreement
Division, Fruit and Vegetable Program,
AMS, USDA, 1400 Independence
Avenue SW., STOP 0237, Washington,
DC 20250–0237; Fax: (202) 720–8938, or
Internet: https://www.regulations.gov.
Comments should reference the docket
number and the date and page number
of this issue of the Federal Register and
will be available for public inspection in
the Office of the Docket Clerk during
regular business hours, or can be viewed
at: https://www.regulations.gov. All
comments submitted in response to this
proposed rule will be included in the
record and will be made available to the
public. Please be advised that the
identity of the individuals or entities
submitting the comments will be made
public on the Internet at the address
provided above.
FOR FURTHER INFORMATION CONTACT:
Maria Stobbe, Marketing Specialist, or
Martin Engeler, Regional Director,
California Marketing Field Office,
Marketing Order and Agreement
SUMMARY:
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Division, Fruit and Vegetable Program,
AMS, USDA; Telephone: (559) 487–
5901, Fax: (559) 487–5906; or Email:
Maria.Stobbe@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
proposed rule is issued under Marketing
Agreement and Order No. 989, both as
amended (7 CFR part 989), regulating
the handling of raisins produced from
grapes grown in 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 proposed rule in
conformance with Executive Orders
12866, 13563, and 13175.
This proposed rule has been reviewed
under Executive Order 12988, Civil
Justice Reform. Under the marketing
order now in effect, California raisin
handlers are subject to assessments.
Funds to administer the order are
derived from assessments. It is intended
that the assessment rate as proposed
herein would be applicable to all
assessable raisins beginning on August
1, 2015, and continue until amended,
suspended, or terminated.
The Act provides that administrative
proceedings must be exhausted before
parties may file suit in court. Under
section 608c(15)(A) of the Act, any
handler subject to an order may file
with USDA a petition stating that the
order, any provision of the order, or any
obligation imposed in connection with
the order is not in accordance with law
and request a modification of the order
or to be exempted therefrom. Such
handler is afforded the opportunity for
a hearing on the petition. After the
hearing, USDA would rule on the
petition. The Act provides that the
district court of the United States in any
district in which the handler is an
inhabitant, or has his or her principal
place of business, has jurisdiction to
review USDA’s ruling on the petition,
provided an action is filed not later than
20 days after the date of the entry of the
ruling.
This proposed rule would increase
the assessment rate established by the
committee for the 2015–16 and
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Federal Register / Vol. 80, No. 170 / Wednesday, September 2, 2015 / Proposed Rules
subsequent crop years from $14.00 to
$17.00 per ton of California raisins
acquired by handlers.
Sections 989.79 and 989.80,
respectively, of the order provide
authority for the committee, with the
approval of USDA, to formulate an
annual budget of expenses, and to
collect assessments from handlers to
administer the program. The members
of the committee are producers and
handlers of California raisins. They are
familiar with the committee’s needs and
with 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 2010–11 and subsequent crop
years, the committee recommended, and
USDA approved, an assessment rate that
would continue in effect from crop year
to crop year unless modified,
suspended, or terminated by USDA
upon recommendation and information
submitted by the committee or other
information available to USDA.
The committee met on June 11, 2015,
and recommended an assessment rate
increase from $14.00 per ton to $17.00
per ton by a unanimous vote. At this
meeting, the committee also
recommended a budget for the 2015–16
crop year, with recommended expenses
and contingency reserve totaling
$5,832,496. The vote on this
recommendation was also unanimous.
The proposed assessment rate of $17.00
per ton is expected to generate
assessment income of $5,832,496, which
would be sufficient to fund the
recommended 2015–16 expenses.
As previously stated, the committee’s
recommended budget for the 2015–16
crop year is $5,832,496, and the
recommended assessment rate is $17.00
per ton, which is $3.00 per ton higher
than the rate currently in effect.
The major expenditures
recommended by the committee for the
2015–16 crop year include: Salaries and
employee-related costs of $1,402,906;
administration costs of $610,000;
compliance activities of $30,000;
research and studies of $129,000;
operation and maintenance of the
generic marketing programs of
$3,520,178; and a contingency of
$355,503. Subtracted from these
expenses is $215,091, which represents
reimbursable costs for the shared
management of the State marketing
program.
In comparison, last year’s approved
budgeted expenditures included:
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Salaries and employee-related costs of
$1,337,100; administration costs of
$493,500; compliance activities of
$30,000; research and studies of
$85,000; operation and maintenance of
the generic marketing programs of
$3,296,800; and a contingency of
$100,000. Reimbursable costs for the
shared management of the State
marketing program of $166,860 were
subtracted, resulting in a total approved
budget for the 2014–15 crop year of
$5,175,540.
The committee believes that more
funds should be spent in promoting
raisins internationally, including China.
For that reason, budgeted expenses in
those endeavors have been increased:
Research and studies increased from
$85,000 for the 2014–15 crop year to
$129,000 for the 2015–16 crop year; and
operation and maintenance of generic
marketing programs increased from
$3,296,800 for the 2014–15 crop year to
$3,520,178 for the 2015–16 crop year. In
addition, the committee included a
contingency fund for unexpected
expenses and opportunities that may
occur during the year.
The quantity of assessable raisins for
2015–16 crop year was estimated to be
343,088 tons. At the recommended
assessment rate of $17.00 per ton, the
anticipated assessment income would
be $5,832,496. Sufficient income should
be generated at the higher assessment
rate for the committee to meet its
anticipated expenses.
Pursuant to § 989.81(a) of the order,
any unexpended assessment funds from
the crop year must be credited or
refunded to the handlers from whom
collected.
The proposed assessment rate would
continue in effect indefinitely unless
modified, suspended, or terminated by
USDA upon recommendation and
information submitted by the committee
or other available information.
Although this assessment rate would
be in effect for an indefinite period, the
committee would continue to meet prior
to or during each crop year to
recommend a budget of expenses and
consider recommendations for
modification of the assessment rate. The
dates and times of committee meetings
are available from the committee or
USDA. Committee meetings are open to
the public and interested persons may
express their views at these meetings.
USDA would evaluate committee
recommendations and other available
information to determine whether
modification of the assessment rate is
needed. Further rulemaking would be
undertaken as necessary. The
committee’s 2015–16 budget, and those
for subsequent crop years, would be
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53023
reviewed and, as appropriate, approved
by USDA.
Initial Regulatory Flexibility Analysis
Pursuant to requirements set forth in
the Regulatory Flexibility Act (RFA) (5
U.S.C. 601–612), the Agricultural
Marketing Service (AMS) has
considered the economic impact of this
proposed rule on small entities.
Accordingly, AMS has prepared this
initial regulatory flexibility analysis.
The purpose of the RFA is to fit
regulatory actions to the scale of
businesses subject to such actions in
order that small businesses will not be
unduly or disproportionately burdened.
Marketing orders issued pursuant to the
Act, and the rules issued thereunder, are
unique in that they are brought about
through group action of essentially
small entities acting on their own
behalf.
There are approximately 3,000
producers of California raisins and
approximately 28 handlers subject to
regulation under the marketing order.
The Small Business Administration
defines small agricultural producers as
those having annual receipts less than
$750,000, and defines small agricultural
service firms as those whose annual
receipts are less than $7,000,000. (13
CFR 121.201.)
Based upon shipment data and other
information provided by the committee,
it may be concluded that a majority of
producers and approximately 18
handlers of California raisins may be
classified as small entities.
This proposed rule would increase
the assessment rate established for the
committee and collected from handlers
for the 2015–16 and subsequent crop
years from $14.00 to $17.00 per ton of
assessable raisins acquired by handlers.
The committee reviewed and
identified the expenses that would be
reasonable and necessary to continue
program operations during the 2015–16
crop year. The resulting recommended
budget totals $5,832,496 for the 2015–16
crop year. This represents an overall
increase from the 2014–15 budget,
which totaled $5,175,540. The 2015–16
budget includes additional proposed
expenditures to fund increased
promotional programs in export
markets, and a contingency fund of
$355,503, which provides a safety net to
cover unexpected expenses and
opportunities that present themselves
during the 2015–16 crop year.
The quantity of assessable raisins for
2015–16 crop year was estimated to be
343,088 tons. At the recommended
assessment rate of $17.00 per ton, the
anticipated assessment income would
be $5,832,496. Sufficient income should
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Federal Register / Vol. 80, No. 170 / Wednesday, September 2, 2015 / Proposed Rules
be generated at the higher assessment
rate for the committee to meet its
anticipated expenses.
The major expenditures
recommended by the committee for the
2015–16 crop year include: Salaries and
employee-related costs of $1,402,906;
administration costs of $610,000;
compliance activities of $30,000;
research of $129,000; operation and
maintenance of generic marketing
programs of $3,520,178; and a
contingency of $355,503.
In comparison, last year’s approved
budgeted expenditures included:
Salaries and employee-related costs of
$1,337,100; administration costs of
$493,500; compliance activities of
$30,000; research of $85,000; operation
and maintenance of generic marketing
programs of $3,296,800; and a
contingency of $100,000. The total
budget approved for the 2014–15 crop
year was $5,175,540.
The committee believes that more
funds should be spent in promoting
raisins internationally, including China.
For that reason, expenses for research
and promotion activities have been
increased: Operation and maintenance
of generic marketing programs increased
from $3,296,800 for the 2014–15 crop
year to $3,520,178 for the 2015–16 crop
year, and research has increased from
$85,000 for the 2014–15 crop year to
$129,000 for the 2015–16 crop year. In
order to fund these additional proposed
expenditures, the committee
recommended an increased assessment
rate.
Pursuant to § 989.81(a) of the order,
any unexpended assessment funds from
the crop year must be credited or
refunded to the handlers from whom
collected.
Prior to arriving at this budget and
assessment rate, the committee
considered information from various
sources, such as the committee’s Audit
and Marketing Subcommittees.
Alternative spending levels were
discussed by the Marketing and Audit
Subcommittees, which met on June 8,
2015 and June 11, 2015, to review the
committee’s financial operations.
The committee ultimately decided
that the recommended budget and
assessment rate were reasonable and
necessary to properly administer the
order.
A review of statistical data on the
California raisin industry indicates that
assessment revenue has consistently
been less than one percent of grower
revenue in recent years. With a $17.00
assessment rate, assessment revenue
would be expected to remain at less
than one percent of grower revenue.
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Regarding the impact of this action on
affected entities, this action would
increase the assessment obligation
imposed on handlers. While increased
assessments impose additional costs on
handlers regulated under the order, the
rates are uniform on all handlers, and
proportional to the size of their
businesses. It is expected that these
costs would be offset by the benefits
derived from the operation of the order.
In addition, the meetings of the Audit
and Marketing Subcommittees, and the
full committee were widely publicized
throughout the California raisin
industry, and all interested persons
were invited to attend the meetings and
encouraged to participate in committee
deliberations on all issues. Like all
subcommittee and committee meetings,
the June 8, 2015 and June 11, 2015,
meetings were public meetings, and all
entities, both large and small, were able
to express views on this issue. Finally,
interested persons are invited to submit
comments on this proposed rule,
including the regulatory and
informational impacts of this action on
small businesses.
In accordance with the Paperwork
Reduction Act of 1995 (44 U.S.C.
Chapter 35), the order’s information
collection requirements have been
previously approved by the Office of
Management and Budget (OMB) and
assigned OMB No. 0581–0178,
‘‘Vegetable and Specialty Crops.’’ No
changes in those requirements as a
result of this action are necessary.
Should any changes become necessary,
they would be submitted to OMB for
approval.
This proposed rule would impose no
additional reporting or recordkeeping
requirements on either small or large
California raisin handlers. As with all
Federal marketing order programs,
reports and forms are periodically
reviewed to reduce information
requirements and duplication by
industry and public sector agencies.
AMS is committed to complying with
the E-Government Act, to promote the
use of the internet and other
information technologies to provide
increased opportunities for citizen
access to Government information and
services, and for other purposes.
USDA has not identified any relevant
Federal rules that duplicate, overlap, or
conflict with this action.
A small business guide on complying
with fruit, vegetable, and specialty crop
marketing agreements and orders may
be viewed at: https://www.ams.usda.gov/
MarketingOrdersSmallBusinessGuide.
Any questions about the compliance
guide should be sent to Jeffrey Smutny
at the previously mentioned address in
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the FOR FURTHER INFORMATION CONTACT
section.
A 30-day comment period is provided
to allow interested persons to respond
to this proposed rule. Thirty days is
deemed appropriate because: (1) The
2015–16 crop year begins on August 1,
2015, and the order requires the rate of
assessment for each crop year to apply
to all assessable raisins handled during
the crop year; (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.
List of subjects in 7 CFR Part 989
Grapes, Marketing agreements,
Raisins, Reporting and recordkeeping
requirements.
For the reasons set forth in the
preamble, 7 CFR part 989 is proposed to
be amended as follows:
PART 989—RAISINS PRODUCED
FROM GRAPES GROWN IN
CALIFORNIA
1. The authority citation for 7 CFR
part 989 continues to read as follows:
■
Authority: 7 U.S.C. 601–674.
2. Section 989.347 is revised to read
as follows:
■
§ 989.347
Assessment rate.
On and after August 1, 2015, an
assessment rate of $17.00 per ton is
established for assessable raisins
produced from grapes grown in
California.
Dated: August 28, 2015.
Rex A. Barnes,
Associate Administrator, Agricultural
Marketing Service.
[FR Doc. 2015–21850 Filed 9–1–15; 8:45 am]
BILLING CODE P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 39
[Docket No. FAA–2015–3657; Directorate
Identifier 2012–SW–069–AD]
RIN 2120–AA64
Airworthiness Directives; Airbus
Helicopters (Previously Eurocopter
France (Eurocopter) Helicopters)
Federal Aviation
Administration (FAA), DOT.
ACTION: Notice of proposed rulemaking
(NPRM).
AGENCY:
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]]>Agencies
[Federal Register Volume 80, Number 170 (Wednesday, September 2, 2015)]
[Proposed Rules]
[Pages 53022-53024]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-21850]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 989
[Doc. No. AMS-FV-15-0032; FV15-989-2 PR]
Raisins Produced From Grapes Grown in California; Increased
Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: This proposed rule would implement a recommendation from the
Raisin Administrative Committee (committee) to increase the assessment
rate established for the 2015-16 and subsequent crop years from $14.00
to $17.00 per ton of California raisins handled under the marketing
order (order). The committee locally administers the order and is
comprised of producers and handlers of raisins operating within the
area of production. Assessments upon raisin handlers are used by the
committee to fund reasonable and necessary expenses of the program. The
crop year begins August 1 and ends July 31. The assessment rate would
remain in effect indefinitely unless modified, suspended, or
terminated.
DATES: Comments must be received by October 2, 2015.
ADDRESSES: Interested persons are invited to submit written comments
concerning this proposed rule. Comments must be sent to the Docket
Clerk, Marketing Order and Agreement Division, Fruit and Vegetable
Program, AMS, USDA, 1400 Independence Avenue SW., STOP 0237,
Washington, DC 20250-0237; Fax: (202) 720-8938, or Internet: https://www.regulations.gov. Comments should reference the docket number and
the date and page number of this issue of the Federal Register and will
be available for public inspection in the Office of the Docket Clerk
during regular business hours, or can be viewed at: https://www.regulations.gov. All comments submitted in response to this
proposed rule will be included in the record and will be made available
to the public. Please be advised that the identity of the individuals
or entities submitting the comments will be made public on the Internet
at the address provided above.
FOR FURTHER INFORMATION CONTACT: Maria Stobbe, Marketing Specialist, or
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:
Maria.Stobbe@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 proposed rule is issued under Marketing
Agreement and Order No. 989, both as amended (7 CFR part 989),
regulating the handling of raisins produced from grapes grown in
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 proposed rule
in conformance with Executive Orders 12866, 13563, and 13175.
This proposed rule has been reviewed under Executive Order 12988,
Civil Justice Reform. Under the marketing order now in effect,
California raisin handlers are subject to assessments. Funds to
administer the order are derived from assessments. It is intended that
the assessment rate as proposed herein would be applicable to all
assessable raisins beginning on August 1, 2015, and continue until
amended, suspended, or terminated.
The Act provides that administrative proceedings must be exhausted
before parties may file suit in court. Under section 608c(15)(A) of the
Act, any handler subject to an order may file with USDA a petition
stating that the order, any provision of the order, or any obligation
imposed in connection with the order is not in accordance with law and
request a modification of the order or to be exempted therefrom. Such
handler is afforded the opportunity for a hearing on the petition.
After the hearing, USDA would rule on the petition. The Act provides
that the district court of the United States in any district in which
the handler is an inhabitant, or has his or her principal place of
business, has jurisdiction to review USDA's ruling on the petition,
provided an action is filed not later than 20 days after the date of
the entry of the ruling.
This proposed rule would increase the assessment rate established
by the committee for the 2015-16 and
[[Page 53023]]
subsequent crop years from $14.00 to $17.00 per ton of California
raisins acquired by handlers.
Sections 989.79 and 989.80, respectively, of the order provide
authority for the committee, with the approval of USDA, to formulate an
annual budget of expenses, and to collect assessments from handlers to
administer the program. The members of the committee are producers and
handlers of California raisins. They are familiar with the committee's
needs and with 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 2010-11 and subsequent crop years, the committee
recommended, and USDA approved, an assessment rate that would continue
in effect from crop year to crop year unless modified, suspended, or
terminated by USDA upon recommendation and information submitted by the
committee or other information available to USDA.
The committee met on June 11, 2015, and recommended an assessment
rate increase from $14.00 per ton to $17.00 per ton by a unanimous
vote. At this meeting, the committee also recommended a budget for the
2015-16 crop year, with recommended expenses and contingency reserve
totaling $5,832,496. The vote on this recommendation was also
unanimous. The proposed assessment rate of $17.00 per ton is expected
to generate assessment income of $5,832,496, which would be sufficient
to fund the recommended 2015-16 expenses.
As previously stated, the committee's recommended budget for the
2015-16 crop year is $5,832,496, and the recommended assessment rate is
$17.00 per ton, which is $3.00 per ton higher than the rate currently
in effect.
The major expenditures recommended by the committee for the 2015-16
crop year include: Salaries and employee-related costs of $1,402,906;
administration costs of $610,000; compliance activities of $30,000;
research and studies of $129,000; operation and maintenance of the
generic marketing programs of $3,520,178; and a contingency of
$355,503. Subtracted from these expenses is $215,091, which represents
reimbursable costs for the shared management of the State marketing
program.
In comparison, last year's approved budgeted expenditures included:
Salaries and employee-related costs of $1,337,100; administration costs
of $493,500; compliance activities of $30,000; research and studies of
$85,000; operation and maintenance of the generic marketing programs of
$3,296,800; and a contingency of $100,000. Reimbursable costs for the
shared management of the State marketing program of $166,860 were
subtracted, resulting in a total approved budget for the 2014-15 crop
year of $5,175,540.
The committee believes that more funds should be spent in promoting
raisins internationally, including China. For that reason, budgeted
expenses in those endeavors have been increased: Research and studies
increased from $85,000 for the 2014-15 crop year to $129,000 for the
2015-16 crop year; and operation and maintenance of generic marketing
programs increased from $3,296,800 for the 2014-15 crop year to
$3,520,178 for the 2015-16 crop year. In addition, the committee
included a contingency fund for unexpected expenses and opportunities
that may occur during the year.
The quantity of assessable raisins for 2015-16 crop year was
estimated to be 343,088 tons. At the recommended assessment rate of
$17.00 per ton, the anticipated assessment income would be $5,832,496.
Sufficient income should be generated at the higher assessment rate for
the committee to meet its anticipated expenses.
Pursuant to Sec. 989.81(a) of the order, any unexpended assessment
funds from the crop year must be credited or refunded to the handlers
from whom collected.
The proposed assessment rate would continue in effect indefinitely
unless modified, suspended, or terminated by USDA upon recommendation
and information submitted by the committee or other available
information.
Although this assessment rate would be in effect for an indefinite
period, the committee would continue to meet prior to or during each
crop year to recommend a budget of expenses and consider
recommendations for modification of the assessment rate. The dates and
times of committee meetings are available from the committee or USDA.
Committee meetings are open to the public and interested persons may
express their views at these meetings. USDA would evaluate committee
recommendations and other available information to determine whether
modification of the assessment rate is needed. Further rulemaking would
be undertaken as necessary. The committee's 2015-16 budget, and those
for subsequent crop years, would be reviewed and, as appropriate,
approved by USDA.
Initial Regulatory Flexibility Analysis
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS)
has considered the economic impact of this proposed rule on small
entities. Accordingly, AMS has prepared this initial regulatory
flexibility analysis.
The purpose of the RFA is to fit regulatory actions to the scale of
businesses subject to such actions in order that small businesses will
not be unduly or disproportionately burdened. Marketing orders issued
pursuant to the Act, and the rules issued thereunder, are unique in
that they are brought about through group action of essentially small
entities acting on their own behalf.
There are approximately 3,000 producers of California raisins and
approximately 28 handlers subject to regulation under the marketing
order. The Small Business Administration defines small agricultural
producers as those having annual receipts less than $750,000, and
defines small agricultural service firms as those whose annual receipts
are less than $7,000,000. (13 CFR 121.201.)
Based upon shipment data and other information provided by the
committee, it may be concluded that a majority of producers and
approximately 18 handlers of California raisins may be classified as
small entities.
This proposed rule would increase the assessment rate established
for the committee and collected from handlers for the 2015-16 and
subsequent crop years from $14.00 to $17.00 per ton of assessable
raisins acquired by handlers.
The committee reviewed and identified the expenses that would be
reasonable and necessary to continue program operations during the
2015-16 crop year. The resulting recommended budget totals $5,832,496
for the 2015-16 crop year. This represents an overall increase from the
2014-15 budget, which totaled $5,175,540. The 2015-16 budget includes
additional proposed expenditures to fund increased promotional programs
in export markets, and a contingency fund of $355,503, which provides a
safety net to cover unexpected expenses and opportunities that present
themselves during the 2015-16 crop year.
The quantity of assessable raisins for 2015-16 crop year was
estimated to be 343,088 tons. At the recommended assessment rate of
$17.00 per ton, the anticipated assessment income would be $5,832,496.
Sufficient income should
[[Page 53024]]
be generated at the higher assessment rate for the committee to meet
its anticipated expenses.
The major expenditures recommended by the committee for the 2015-16
crop year include: Salaries and employee-related costs of $1,402,906;
administration costs of $610,000; compliance activities of $30,000;
research of $129,000; operation and maintenance of generic marketing
programs of $3,520,178; and a contingency of $355,503.
In comparison, last year's approved budgeted expenditures included:
Salaries and employee-related costs of $1,337,100; administration costs
of $493,500; compliance activities of $30,000; research of $85,000;
operation and maintenance of generic marketing programs of $3,296,800;
and a contingency of $100,000. The total budget approved for the 2014-
15 crop year was $5,175,540.
The committee believes that more funds should be spent in promoting
raisins internationally, including China. For that reason, expenses for
research and promotion activities have been increased: Operation and
maintenance of generic marketing programs increased from $3,296,800 for
the 2014-15 crop year to $3,520,178 for the 2015-16 crop year, and
research has increased from $85,000 for the 2014-15 crop year to
$129,000 for the 2015-16 crop year. In order to fund these additional
proposed expenditures, the committee recommended an increased
assessment rate.
Pursuant to Sec. 989.81(a) of the order, any unexpended assessment
funds from the crop year must be credited or refunded to the handlers
from whom collected.
Prior to arriving at this budget and assessment rate, the committee
considered information from various sources, such as the committee's
Audit and Marketing Subcommittees. Alternative spending levels were
discussed by the Marketing and Audit Subcommittees, which met on June
8, 2015 and June 11, 2015, to review the committee's financial
operations.
The committee ultimately decided that the recommended budget and
assessment rate were reasonable and necessary to properly administer
the order.
A review of statistical data on the California raisin industry
indicates that assessment revenue has consistently been less than one
percent of grower revenue in recent years. With a $17.00 assessment
rate, assessment revenue would be expected to remain at less than one
percent of grower revenue.
Regarding the impact of this action on affected entities, this
action would increase the assessment obligation imposed on handlers.
While increased assessments impose additional costs on handlers
regulated under the order, the rates are uniform on all handlers, and
proportional to the size of their businesses. It is expected that these
costs would be offset by the benefits derived from the operation of the
order.
In addition, the meetings of the Audit and Marketing Subcommittees,
and the full committee were widely publicized throughout the California
raisin industry, and all interested persons were invited to attend the
meetings and encouraged to participate in committee deliberations on
all issues. Like all subcommittee and committee meetings, the June 8,
2015 and June 11, 2015, meetings were public meetings, and all
entities, both large and small, were able to express views on this
issue. Finally, interested persons are invited to submit comments on
this proposed rule, including the regulatory and informational impacts
of this action on small businesses.
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
Chapter 35), the order's information collection requirements have been
previously approved by the Office of Management and Budget (OMB) and
assigned OMB No. 0581-0178, ``Vegetable and Specialty Crops.'' No
changes in those requirements as a result of this action are necessary.
Should any changes become necessary, they would be submitted to OMB for
approval.
This proposed rule would impose no additional reporting or
recordkeeping requirements on either small or large California raisin
handlers. As with all Federal marketing order programs, reports and
forms are periodically reviewed to reduce information requirements and
duplication by industry and public sector agencies.
AMS is committed to complying with the E-Government Act, to promote
the use of the internet and other information technologies to provide
increased opportunities for citizen access to Government information
and services, and for other purposes.
USDA has not identified any relevant Federal rules that duplicate,
overlap, or conflict with this action.
A small business guide on complying with fruit, vegetable, and
specialty crop marketing agreements and orders may be viewed at: https://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.
A 30-day comment period is provided to allow interested persons to
respond to this proposed rule. Thirty days is deemed appropriate
because: (1) The 2015-16 crop year begins on August 1, 2015, and the
order requires the rate of assessment for each crop year to apply to
all assessable raisins handled during the crop year; (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.
List of subjects in 7 CFR Part 989
Grapes, Marketing agreements, Raisins, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 989 is
proposed to be amended as follows:
PART 989--RAISINS PRODUCED FROM GRAPES GROWN IN CALIFORNIA
0
1. The authority citation for 7 CFR part 989 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. Section 989.347 is revised to read as follows:
Sec. 989.347 Assessment rate.
On and after August 1, 2015, an assessment rate of $17.00 per ton
is established for assessable raisins produced from grapes grown in
California.
Dated: August 28, 2015.
Rex A. Barnes,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2015-21850 Filed 9-1-15; 8:45 am]
BILLING CODE P
