Blueberry Promotion, Research and Information Order; Expanding the Membership of the U.S. Highbush Blueberry Council and Other Changes, 53257-53263 [2015-21880]
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Federal Register / Vol. 80, No. 171 / Thursday, September 3, 2015 / Rules and Regulations
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1218
[Document Number AMS–FV–14–0089]
Blueberry Promotion, Research and
Information Order; Expanding the
Membership of the U.S. Highbush
Blueberry Council and Other Changes
Agricultural Marketing Service,
USDA.
ACTION: Final rule.
AGENCY:
This rule expands the
membership of the U.S. Highbush
Blueberry Council (Council) under the
Blueberry Promotion, Research and
Information Order (Order). The Council
administers the Order with oversight by
the U.S. Department of Agriculture
(USDA). This rule increases the number
of Council members from 16 to 20,
adding two producers, one importer,
and one exporter. This will help ensure
that the Council reflects the
geographical distribution of domestic
blueberry production and imports into
the United States. This rule also adds
eligibility requirements for the public
member, clarifies the Council’s
nomination procedures and its ability to
serve the diversity of the industry, and
increases the number of members
needed for a quorum. This rule also
prescribes late payment and interest
charges for past due assessments. These
changes will help facilitate program
administration. All of these actions were
unanimously recommended by the
Council.
SUMMARY:
DATES:
Effective Date January 1, 2016.
FOR FURTHER INFORMATION CONTACT:
Maureen T. Pello, Marketing Specialist,
Promotion and Economics Division,
Fruit and Vegetable Program, AMS,
USDA, P.O. Box 831, Beavercreek,
Oregon 97004; telephone: (503) 632–
8848; facsimile (202) 205–2800; or
electronic mail: Maureen.Pello@
ams.usda.gov.
This rule
is issued under the Order (7 CFR part
1218). The Order is authorized under
the Commodity Promotion, Research,
and Information Act of 1996 (1996 Act)
(7 U.S.C. 7411–7425).
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SUPPLEMENTARY INFORMATION:
Executive Order 12866 and Executive
Order 13563
Executive Orders 12866 and 13563
direct agencies to assess all costs and
benefits of available regulatory
alternatives and, if regulation is
necessary, to select regulatory
approaches that maximize net benefits
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(including potential economic,
environmental, public health and safety
effects, distributive impacts and equity).
Executive Order 13563 emphasizes the
importance of quantifying both costs
and benefits, reducing costs,
harmonizing rules and promoting
flexibility. This action has been
designated as a ‘‘non-significant
regulatory action’’ under section 3(f) of
Executive Order 12866. Accordingly,
the Office of Management and Budget
(OMB) has waived the review process.
Executive Order 13175
This action has been reviewed in
accordance with the requirements of
Executive Order 13175, Consultation
and Coordination with Indian Tribal
Governments. The review reveals that
this regulation will not have substantial
and direct effects on Tribal governments
and will not have significant Tribal
implications.
Executive Order 12988
This 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 (7 U.S.C. 7423) 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 (7
U.S.C. 7418), a person subject to an
order may file a written petition with
USDA 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 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, USDA 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 USDA’s final ruling.
Background
This rule expands the membership of
the Council under the Order. The
Council administers the Order with
oversight by USDA. Under the program,
assessments are collected from domestic
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53257
producers and importers and used for
research and promotion projects
designed to increase the demand for
highbush blueberries. This rule
increases the number of Council
members from 16 to 20, adding two
producers, one importer, and one
exporter. This will help ensure that the
Council reflects the geographical
distribution of domestic blueberry
production and imports into the United
States. This rule also adds eligibility
requirements for the public member,
clarifies the Council’s nomination
procedures and its ability to serve the
diversity of the industry, and increases
the number of members needed for a
quorum. This rule also prescribes late
payment and interest charges on past
due assessments. These changes will
help facilitate program administration.
All of these actions were unanimously
recommended by the Council at its
meeting on October 3, 2014.
Expanding the Council’s Membership
Section 1218.40(a) of the Order
currently specifies that the Council be
composed of no more than 16 members
and alternates appointed by the
Secretary of Agriculture (Secretary). Ten
of the 16 members and alternates are
producers. One producer member and
alternate are from each of the following
regions within the United States: Region
#1 Western Region; Region #2 Midwest
Region; Region #3 Northeast Region;
and Region #4 Southern Region. One
producer member and alternate are from
each of the top six blueberry producing
states, based upon the average of the
total tons produced over the previous
three years. Currently, these states
include Michigan, Oregon, Washington,
Georgia, New Jersey, and California.
Average tonnage is based upon
production and assessment figures
generated by the Council.
Of the remaining six Council
members and alternates, three members
and alternates are importers. One
member and alternate must be an
exporter, defined in § 1218.40 as a
blueberry producer currently shipping
blueberries into the United States from
the largest foreign blueberry production
area, based on a three-year average
(currently Chile). One member and
alternate must be a first handler, defined
in § 1218.40 as a United States based
independent or cooperative organization
which is a producer/shipper of domestic
blueberries. Finally, one member and
alternate must represent the public.
Section 1218.40(b) of the Order
specifies that, at least once every five
years, the Council will review the
geographical distribution of the
production of blueberries in the United
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States and the quantity of imports. The
review is conducted through an audit of
state crop production figures and
Council assessment records. If
warranted, the Council will recommend
to the Secretary that its membership be
altered to reflect changes in the
geographical distribution of domestic
blueberry production and the quantity
of imports. If the level of imports
increases, importer members and
alternates may be added to the Council.
assessment data for the pasts three years
(2011–2013). This data for the top
blueberry producing states is
summarized in Table 1 below.
Council Recommendation
Adding Two State Producer Positions
The Council met on October 3, 2014,
and reviewed domestic production and
TABLE 1—PRODUCTION 1 AND ASSESSMENT 2 FIGURES FROM 2011–2013
2011
State
Assessments
paid
Tons
Michigan ...................
Oregon .....................
Washington ..............
Georgia ....................
New Jersey ..............
California ..................
North Carolina ..........
Florida ......................
Mississippi ................
Indiana .....................
2012
36,000
32,750
30,500
32,500
31,000
21,050
18,500
11,700
5,250
800
$434,775
363,726
319,635
343,694
321,123
286,696
189,061
131,538
27,096
3,007
As shown in Table 1, Michigan,
Oregon, Washington, Georgia, New
Jersey, California, North Carolina, and
Florida, respectively, were the top eight
highbush blueberry producing states
based on the 3-year average of both
production and assessments paid from
2011–2013. Mississippi and Indiana,
respectively, were the ninth and tenth
highest blueberry producing states from
2011–2013. Blueberry production in
Florida, the smallest producer of the top
eight producing states, was more than
double that of Mississippi.
Since the Council’s inception in 2001
and continuing until 2006, there were
five state positions on the Council;
producers from Michigan, Oregon,
Georgia, New Jersey, and North Carolina
2013
Assessments
paid
Tons
43,500
36,000
35,000
38,500
27,000
20,450
20,250
9,050
4,500
750
Assessments
paid
Tons
$528,782
433,326
334,242
347,666
285,502
301,212
198,090
88,246
28,610
3,160
57,500
44,750
40,800
34,000
25,080
25,700
21,200
10,750
3,650
1,600
held those five positions. In 2006, a
sixth state position was added to the
Council, with the State of Washington
earning a seat (71 FR 44553; August 7,
2006). Production shifted in the coming
years, and by 2014, California became
the sixth top blueberry producing state
and earned a position on the Council,
with its 3-year average production
surpassing that of North Carolina.
After reviewing state production data,
the Council recommended revising its
membership so that one producer
member and alternate from each of the
top eight producing blueberry states
have seats on the Council, based upon
the average of the total tons produced
over the previous 3 years. Thus, the
number of state positions on the Council
3-year average
$668,678
517,579
361,595
359,681
288,578
366,494
190,904
124,576
17,566
7,751
Tons
45,500
37,833
35,433
35,000
27,693
22,400
19,983
10,500
4,467
1,050
Assessments
paid
$544,075
438,210
338,491
350,347
298,401
318,134
192,685
114,787
24,424
4,639
will be increased from six to eight.
Based upon recent production figures,
this will allow North Carolina and
Florida to each have a state member and
alternate seat on the Council. Section
1218.40(a)(2) is revised accordingly.
Adding One Importer and One Exporter
Position
The Council also reviewed import
data and compared it to domestic data.
Table 2 below shows the domestic (U.S.)
production figures and quantity of
imports from 2011–2013 as well as
assessments paid for domestic and
imported blueberries for those years.
The table also shows the 3-year average
of domestic production, imports and
assessments paid for 2011–2013.
TABLE 2—U.S.3 AND IMPORT 4 QUANTITIES AND ASSESSMENT 5 DATA FROM 2011–2013
Domestic
(U.S.)
assessments
Year
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2011 .................................................................................................................
2012 .................................................................................................................
2013 .................................................................................................................
3-Year Average ................................................................................................
Percent of Total ...............................................................................................
As shown in Table 2, the quantity of
imported blueberries as well as
assessments paid by importers has
increased from 2011–2013. Based upon
a 3-year average of total assessments
1 Noncitrus Fruits and Nuts 2013 Summary, July
2014, USDA, National Agricultural Statistics
Service, p. 34.
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$2,151,682
2,434,646
2,577,953
2,387,177
59%
paid under the program, domestic
blueberries account for 59 percent of
assessments paid and imports account
for 41 percent of assessments paid.
Additionally, based on a 3-year average
2 Council
assessment records 2011–2013.
Fruits and Nuts, p. 9.
3 Noncitrus
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Import
assessments
$1,525,936
1,601,966
1,795,164
1,641,022
41%
U.S. crop
(tons)
221,600
236,700
265,600
241,303
64%
Imports
(tons)
124,549
132,133
151,005
135,896
36%
of the total tonnage covered under the
program, domestic production accounts
for 64 percent of the tonnage and
imports account for 36 percent of the
tonnage.
4 U.S. Customs and Border Protection data 2011–
2013.
5 Council financial audit records 2011–2013.
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The Council also reviewed import
data by country. Table 3 below shows
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the quantity of imports by country from
2011–2013 as well as the 3-year average.
TABLE 3—QUANTITY OF BLUEBERRIES FROM FOREIGN PRODUCTION AREAS 2011–2013 6
Quantity (tons)
Foreign blueberry production areas shipping into the United States
2011
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Chile .................................................................................................................
Canada ............................................................................................................
Argentina ..........................................................................................................
As shown in Table 3, Chile and
Canada, respectively, were the top two
foreign production areas shipping
blueberries into the United States from
2011–2013. Argentina has been the third
top foreign production area shipping
blueberries into the United States,
although the quantity of Argentinian
imports is much lower than the quantity
of blueberries from Chile and Canada.
Regarding membership on the
Council, representatives from Canada
were the exporter member and alternate
from the time of the Council’s inception
and continuing through 2009. Since
2010, representatives from Chile have
been the exporter member and alternate
on the Council.
Upon reviewing import data, the
Council recommended adding one
importer member and one alternate to
its membership. This will increase the
number of importer positions from three
to four. The Council also recommended
adding one exporter member and one
alternate to its membership to represent
foreign producers currently shipping
blueberries into the United States from
the second largest foreign blueberry
production area, based on a 3-year
average. This will increase the number
of exporter positions from one to two,
allowing exporters from both Chile and
Canada to be represented on the
Council. Section 1218.40(a) of the Order
is amended accordingly.
Thus, the number of Council members
will increase from 16 to 20. Of the 20
members, 12 will be domestic
producers, 4 will be importers, 2 will be
exporters, and 1 each will be a handler
and public member. Of the 18 Council
members representing domestic
producers, importers and exporters, 66.7
percent will represent the domestic
industry and 33.3 percent of the Council
will represent imports or foreign
production. This will realign the
Council’s membership to better reflect
the geographic distribution of domestic
and imported blueberries.
6 Customs
76,889
30,374
9,001
Other Changes
Public Member Eligibility
The Council reviewed other Order
provisions regarding its membership
and operations. The Council
recommended revising paragraph (a)(6)
of § 1218.40 to clarify eligibility
requirements for the public member and
alternate member positions.
Specifically, the Council recommended
that the public member and alternate
not be a blueberry producer, handler,
importer, exporter or have a financial
interest in the production, sales,
marketing or distribution of blueberries.
Diversity
The Council also recommended
adding language to the Order to clarify
its ability to serve the diversity of the
industry. The Council recommended
adding a new paragraph (c) to § 1218.40
to specify that, when the industry makes
recommendations for nominees to serve
on the Council, it should take into
account the diversity of the population
served and the knowledge, skills, and
abilities of the members to serve a
diverse population, size of the
operations, methods of production and
distribution, and other distinguishing
factors to ensure that the
recommendations of the Council take
into account the diverse interest of
persons responsible for paying
assessments, and others in the
marketing chain, if appropriate.
Nominations and Appointments
The Council recommended minor
revisions to § 1218.41 of the Order
regarding nominations and
appointments. The procedures to
nominate state and regional producers,
as well as importers, exporters, first
handlers, and public members will not
change. The section is merely revised to
add clarity regarding the process for
nominating members in states with and
without a state blueberry commission or
marketing order.
2012
2013
69,754
70,767
14,830
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77,105
49,763
12,548
The Council also recommended
adding language to § 1218.41 to expand
the number of nominees submitted to
the Secretary for consideration.
Paragraph (a) of § 1218.41 currently
provides that, when a state has a
blueberry commission or marketing
order in place, the state commission or
committee will nominate members to
serve on the Council. At least two
nominees must be recommended to the
Secretary for each member and each
alternate position. The Council
recommended that other qualified
persons who are interested in serving in
the respective state positions but are not
nominated by their State marketing
order or commission be designated by
the State organization and/or Council as
additional nominees for consideration
by the Secretary. Section 1218.41(a) is
revised accordingly.
Likewise, paragraph (d) of § 1218.41
currently provides that nominations for
the importer, exporter, first handler, and
public member positions be made by the
Council. Two nominees for each
member and each alternate position are
submitted to the Secretary for
consideration. The Council
recommended that other qualified
persons who are interested in serving in
these positions but are not
recommended by the Council be
designated by the Council as additional
nominees for consideration by the
Secretary. The current paragraph (d) in
§ 1218.41 is modified accordingly and
becomes paragraph (c).
The Council also recommended
adding a new paragraph (d) to § 1218.41
to specify that producer, handler and
importer nominees must be in
compliance with the Order’s provisions
regarding the payment of assessments
and filing of reports. This will help
ensure that only persons in compliance
with the Order’s obligations serve on the
Council. Further, this section will
clarify that producer and importer
nominees must produce or import,
respectively, 2,000 pounds or more of
highbush blueberries annually. This
data 2011–2013.
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84,673
48,149
13,813
3-year
average
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will bring the Order in line with how
the program has been administered
since its inception. Section 1218.41 is
revised accordingly.
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Council Procedures
The Council recommended revisions
to § 1218.45 regarding procedures. First,
the Council recommended increasing
the number of members needed for a
quorum. Paragraph (a) of § 1218.45
currently specifies that nine members
are needed for a quorum, which is a
majority of the current 16-member
Council. Increasing the number of
Council members to 20 warrants
increasing the number members needed
for a quorum to 11, which will be a
majority of the 20-member Council.
The Council also recommended
adding flexibility to its procedures so
that members participating in Council
meetings may cast votes on issues either
in person or by electronic or other
means as deemed appropriate.
Specifically, a new paragraph (f) is
added to § 1218.45 to specify that all
votes at meetings of the Council and
committees may be cast in person or by
electronic voting or other means as the
Council and Secretary deem appropriate
to allow members participating by
telephone or other electronic means to
cast votes.
Past Due Assessments
The Order specifies that the funds to
cover the Council’s expenses shall be
paid from assessments on producers and
importers, donations from persons not
subject to assessments and from other
funds available to the Council. First
handlers are responsible for collecting
and submitting reports and producer
assessments to the Council. Handlers
must also maintain records necessary to
verify their reports. Importers are
responsible for paying assessments to
the Council on highbush blueberries
imported into the United States through
the U.S. Customs and Border Protection
(Customs). The Order also provides for
two exemptions. Producers and
importers who produce or import less
than 2,000 pounds of blueberries
annually, and producers and importers
of organic blueberries are exempt from
the payment of assessments.
Section 1218.52(e) of the Order
specifies that all assessment payments
and reports must be submitted to the
office of the Council. Assessments on
imported blueberries are collected by
Customs prior to entry into the United
States. Assessments on domestic
blueberries for a crop year must be
received by the Council no later than
November 30 of that year. A late
payment charge shall be imposed on
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any handler who fails to remit to the
Council, the total amount for which any
such handler is liable on or before the
due date established by the Council. In
addition to the late payment charge, an
interest charge shall be imposed on the
outstanding amount for which the
handler is liable. The rate of interest
must be prescribed in regulations issued
by the Secretary.
Assessment funds are used for
research and promotion activities that
are intended to benefit all industry
members. Thus, it is important that all
assessed entities pay their assessments
in a timely manner. Entities who fail to
pay their assessments on time may reap
the benefits of Council programs at the
expense of others. In addition, they may
utilize funds for their own use that
should otherwise be paid to the Council
to finance Council programs.
The Council recommended
prescribing rates of late payment and
interest charges for past due
assessments in the Order’s regulations.
A late payment charge will be imposed
upon handlers who fail to pay their
assessments to the Council within 30
calendar days of the date when
assessments are due. This one-time late
payment charge will be 5 percent of the
assessments due before interest charges
have accrued.
Additionally, interest at a rate of 1
percent per month on the outstanding
balance, including any late payment and
accrued interest, will be added to any
accounts for which payment has not
been received within 30 calendar days
of the date when assessments are due.
Interest will continue to accrue monthly
until the outstanding balance is paid to
the Council.
This action is expected to help
facilitate program administration by
providing an incentive for entities to
remit their assessments in a timely
manner, with the intent of creating a fair
and equitable process among all
assessed entities. Accordingly, a new
Subpart C is added to the Order for
provisions implementing the blueberry
Order, and a new § 1218.520 is added to
Subpart C. Late payment charges and
interest on past due assessments are not
applicable for assessments on imported
blueberries because the assessments are
collected by Customs at the time of
entry.
Final 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 this final rule on small
entities. Accordingly, AMS has
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considered the economic impact of this
action on such 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 (first
handlers and importers) as those having
annual receipts of no more than $7.0
million.
There are approximately 2,000
domestic producers, 80 first handlers
and 200 importers of highbush
blueberries covered under the program.
Dividing the highbush blueberry crop
value for 2013, $715,958,000,7 by the
number of producers (2,000) yields an
average annual producer revenue
estimate of $357,979. It is estimated that
in 2013, about 60 percent of the first
handlers shipped under $7.0 million
worth of highbush blueberries. Based on
2013 Customs data, it is estimated that
almost 90 percent of the importers
shipped under $7.0 million worth of
highbush blueberries. Based on the
foregoing, the majority of producers,
first handlers and importers may be
classified as small entities. We do not
have information concerning the
number of exporters and their size.
Regarding value of the commodity, as
mentioned above, based on 2013 NASS
data, the value of the domestic highbush
blueberry crop was about $716 million.
According to Customs data, the value of
2013 imports was about $563 million.
This rule amends §§ 1218.40, 1218.41
and 1218.45 of the Order regarding
Council membership, nominations, and
procedures, respectively. The Council
administers the Order with oversight by
USDA. Under the program, assessments
are collected from domestic producers
and importers and used for research and
promotion projects designed to increase
the demand for highbush blueberries.
This rule increases the number of
Council members from 16 to 20, adding
two producers, one importer, and one
exporter. This will help ensure that the
Council reflects the geographical
distribution of domestic blueberry
production and imports into the United
States. Authority for this action is
provided in § 1218.40(b) of the Order
and section 515(b) of the 1996 Act.
This rule also prescribes charges for
past due assessments under the Order.
A new § 1218.520 will be added to the
7 Noncitrus Fruits and Nuts 2014 Summary, July
2014, USDA, National Agricultural Statistics
Service (NASS), p. 10.
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Order specifying a one-time late
payment charge of 5 percent of the
assessments due and interest at a rate of
1 percent per month on the outstanding
balance, including any late payment and
accrued interest. This section will be
included in a new Subpart C—
Provisions for Implementing the
Blueberry Promotion, Research and
Information Order. Authority for this
action is provided in § 1218.52(e) of the
Order and section 517(e) of the 1996
Act.
Regarding the economic impact of the
rule on affected entities, expanding the
Council membership and other changes
to the Order’s membership provisions
impose no additional costs on industry
members. Eligible producers, importers
and exporters interested in serving on
the Council would have to complete a
background questionnaire. Those
requirements are addressed later in this
rule in the section titled Reporting and
Recordkeeping Requirements.
Prescribing charges for past due
assessments imposes no additional costs
on handlers who pay their assessments
on time. It merely provides an incentive
for entities to remit their assessments in
compliance with the Order. For all
entities who are delinquent in paying
assessments, both large and small, the
charges will be applied the same. As for
the impact on the industry as a whole,
this action helps facilitate program
administration by providing an
incentive for entities to remit their
assessments in a timely manner, with
the intent of creating a fair and equitable
process among all assessed entities.
Additionally, as previously
mentioned, the Order also provides for
two exemptions. Producers and
importers who produce or import less
than 2,000 pounds of blueberries
annually, and producers and importers
of organic blueberries are exempt from
the payment of assessments. Of the
2,000 producers, it is estimated that
1,860 producers and 180 importers
produce or import over the 2,000-pound
threshold and pay assessments under
the program.
Regarding alternatives, the Council
has been reviewing its membership and
contemplating adding new members to
reflect changes in the geographic
distribution of blueberries for the past
few years. As previously mentioned, in
2014, California became the sixth top
blueberry producing state, which earned
that state a member and alternate seat
on the Council, while North Carolina
lost its member and alternate seat. The
Council formed a subcommittee that
considered various options. One option
was to eliminate the four regional
producer positions and allocate nine
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13:52 Sep 02, 2015
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seats to producers representing the nine
top producing blueberry states and one
seat to a producer representing all other
producing states (producer at-large).
Another option considered was to
increase the number of state producer
positions from six to seven so that North
Carolina would have a seat. The Council
also considered maintaining the status
quo. Ultimately the Council
recommended revising the Order so that
the top eight producing blueberry states
would be represented on the Council.
The Council also considered adding
two importers rather than one importer
and one exporter to its membership.
However, upon reviewing the import
statistics, the Council concluded that it
was important to have foreign producer
representation from the top two
countries shipping blueberries into the
United States represented on the
Council. Thus, the Council
recommended adding one importer and
one exporter member and alternates to
the Council.
Regarding requirements for late
assessments, the Council considered not
prescribing rates for late charges and
interest. However, the Council
concluded that the rates should be
codified along with the applicable date
when charges would be applied so that
the Order is clear on what is required.
Additionally, the 1996 Act requires that
the rates be prescribed by the Secretary.
Reporting and Recordkeeping
Requirements
In accordance with the Paperwork
Reduction Act of 1995 (44 U.S.C.
Chapter 35), the information collection
and recordkeeping requirements that are
imposed by the Order have been
approved previously under OMB
control number 0581–0093. Eligible
producers, importers, exporters,
handlers, and public members
interested in serving on the Council
must complete a background
questionnaire (Form AD–755) to verify
their eligibility. This rule results in no
changes to the information collection
and recordkeeping requirements
previously approved and imposes no
additional reporting and recordkeeping
burden on blueberry producers,
importers, exporters, handlers or public
members.
As with all Federal promotion
programs, reports and forms are
periodically reviewed to reduce
information requirements and
duplication by industry and public
sector agencies. Finally, USDA has not
identified any relevant Federal rules
that duplicate, overlap, or conflict with
this rule.
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53261
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 or citizen access
to Government information and
services, and for other purposes.
Regarding outreach efforts, this action
was discussed by the Council at
meetings in October 2012, in 2013, and
at executive and subcommittee meetings
held in 2014. The Council met in
October 2014 and unanimously made its
recommendations. All of the Council’s
meetings are open to the public and
interested persons are invited to
participate and express their views.
A proposed rule concerning this
action was published in the Federal
Register on May 8, 2015 (80 FR 26469).
The Council mailed copies of the rule to
all known highbush blueberry
producers and importers of record. The
Council also included notifications
about the proposed rule in its
newsletters and posted the proposal on
its Web site. Finally, the proposal was
made available through the Internet by
USDA and the Office of the Federal
Register. A 60-day comment period
ending July 7, 2015 was provided to
allow interested persons to submit
comments.
One comment was received during
the comment period. The commenter
supported the proposed changes
regarding the Council’s membership,
but recommended changes to the
proposed interest and late payment
charges for delinquent assessments. The
commenter expressed concern with
imposing a fixed interest rate on late
assessments and opined that a fixed rate
could become unreasonable if future
interest rates fluctuated. The commenter
also recommended that the late payment
charge be capped at 3 percent of the
assessments due rather than the
proposed rate of 5 percent.
USDA has concluded that the
proposed 1 percent fixed interest rate
per month on outstanding balances due
the Council and the proposed 5 percent
charge on late assessments, are both
reasonable fees. Under the blueberry
program, assessments on domestic
blueberries are due once per year to the
Council (by November 30). Thus,
handlers have all year to make their one
payment to the Council. Handlers will
also have a 30-day grace period before
interest or late payment charges are
applied. Additionally, the rates are
comparable to those specified in other
research and promotion programs.
Finally, if the Council determined
different rates were warranted, it could
make that recommendation to USDA
and the rates could be revised through
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Federal Register / Vol. 80, No. 171 / Thursday, September 3, 2015 / Rules and Regulations
rulemaking. Thus, no changes have been
made to the proposed rule based on this
comment.
After consideration of all relevant
matters presented, including the
information and recommendation
submitted by the Council and other
available information, it is hereby found
that this rule, as hereinafter set forth, is
consistent with and will effectuate the
purposes of the 1996 Act.
List of Subjects in 7 CFR Part 1218
Administrative practice and
procedure, Advertising, Blueberry
promotion, Consumer information,
Marketing agreements, Reporting and
recordkeeping requirements.
For the reasons set forth in the
preamble, 7 CFR part 1218 is amended
as follows:
PART 1218—BLUEBERRY
PROMOTION, RESEARCH, AND
INFORMATION ORDER
1. The authority citation for 7 CFR
part 1218 continues to read as follows:
■
Authority: 7 U.S.C. 7411–7425; 7 U.S.C.
7401.
2. In § 1218.40, revise the introductory
text of paragraph (a), revise paragraphs
(a)(2), (3), (4), and (6) and add a new
paragraph (c) to read as follows:
■
rmajette on DSK7SPTVN1PROD with RULES
§ 1218.40
Establishment and membership.
(a) Establishment of the U.S.
Highbush Blueberry Council. There is
hereby established a U.S. Highbush
Blueberry Council, hereinafter called
the Council, composed of no more than
20 members and alternates, appointed
by the Secretary from nominations as
follows:
*
*
*
*
*
(2) One producer member and
alternate from each of the top eight
blueberry producing states, based on the
average of the total tons produced over
the previous three years. Average
tonnage will be based upon production
and assessment figures generated by the
Council.
(3) Four importers and alternates.
(4) Two exporters and alternates will
be filled by foreign blueberry producers
currently shipping blueberries into the
United States from the two largest
foreign blueberry production areas,
respectively, based on a three-year
average.
*
*
*
*
*
(6) One public member and alternate.
The public member and alternate public
member may not be a blueberry
producer, handler, importer, exporter,
or have a financial interest in the
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13:52 Sep 02, 2015
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production, sales, marketing or
distribution of blueberries.
*
*
*
*
*
(c) Council’s ability to serve the
diversity of the industry. When making
recommendations for appointments, the
industry should take into account the
diversity of the population served and
the knowledge, skills, and abilities of
the members to serve a diverse
population, size of the operations,
methods of production and distribution,
and other distinguishing factors to
ensure that the recommendations of the
Council take into account the diverse
interest of persons responsible for
paying assessments, and others in the
marketing chain, if appropriate.
■ 3. Section 1218.41 is revised to read
as follows:
§ 1218.41
Nominations and appointments.
(a) State representatives. (1) When a
state has a state blueberry commission
or marketing order in place, the state
commission or committee will nominate
members to serve on the Council. At
least two nominees shall be
recommended to the Secretary for each
member and each alternate position.
Other eligible persons interested in
serving in the respective state positions
but not nominated by their State
marketing order or commission will be
designated by the State organization
and/or Council as additional nominees
for consideration by the Secretary.
(2) Nomination and election of state
representatives where no commission or
order is in place will be handled by the
Council staff. The Council staff will seek
nominations for members and alternates
from the specific states. Nominations
will be returned to the Council office
and placed on a ballot which will then
be sent to producers in the state for a
vote. The final 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
final nominee for alternate. The persons
with the third and fourth highest
number of votes cast will be designated
as additional nominees for
consideration by the Secretary.
(b) Regional representatives.
Nomination and election of regional
representatives will be handled by the
Council staff. The Council staff will seek
nominations for members and alternates
from the specific regions. Nominations
will be returned to the Council office
and placed on a ballot which will then
be sent to producers in the region for a
vote. The final 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
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Frm 00028
Fmt 4700
Sfmt 4700
final nominee for alternate. The persons
with the third and fourth highest
number of votes cast will be designated
by the Council as additional nominees
for consideration by the Secretary.
(c) Nominations for the importer,
exporter, first handler, and public
member positions will be made by the
Council. Two nominees for each
member and each alternate position will
be recommended to the Secretary for
consideration. Other qualified persons
interested in serving in these positions
but not recommended by the Council
will be designated by the Council as
additional nominees for consideration
by the Secretary.
(d) Producer, handler and importer
nominees must be in compliance with
the Order’s provisions regarding
payment of assessments and filing of
reports. Further, producers and
importers must produce or import,
respectively, 2,000 pounds or more of
highbush blueberries annually.
(e) From the nominations, the
Secretary shall select the members and
alternate members of the Council.
■ 4. In § 1218.45, revise paragraph (a),
redesignate paragraphs (f), (g), (h), and
(i) as paragraphs (g), (h), (i) and (j), and
add a new paragraph (f) to read as
follows:
§ 1218.45
Procedure.
(a) At a Council meeting, it will be
considered a quorum when a minimum
of 11 members, or their alternates
serving in their absence, are present.
*
*
*
*
*
(f) All votes at meetings of the Council
and committees may be cast in person
or by electronic voting or other means
as the Council and Secretary deem
appropriate to allow members
participating by telephone or other
electronic means to cast votes.
*
*
*
*
*
■ 5. Add Subpart C, consisting of
§ 1218.520, to read as follows:
Subpart C—Provisions for
Implementing the Blueberry
Promotion, Research and Information
Order
§ 1218.520 Late payment and interest
charges for past due assessments.
(a) A late payment charge will be
imposed on any handler who fails to
make timely remittance to the Council
of the total assessments for which they
are liable. The late payment will be
imposed on any assessments not
received within 30 calendar days of the
date when assessments are due. This
one-time late payment charge will be 5
percent of the assessments due before
interest charges have accrued.
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Federal Register / Vol. 80, No. 171 / Thursday, September 3, 2015 / Rules and Regulations
(b) In addition to the late payment
charge, 1 percent per month interest on
the outstanding balance, including any
late payment and accrued interest, will
be added to any accounts for which
payment has not been received within
30 calendar days of the date when
assessments are due. Interest will
continue to accrue monthly until the
outstanding balance is paid to the
Council.
Dated: August 28, 2015.
Rex A. Barnes,
Associate Administrator.
[FR Doc. 2015–21880 Filed 9–2–15; 8:45 am]
BILLING CODE 3410–02–P
person or vessel may enter or remain in
the safety zone without permission from
the Sector Columbia River Captain of
the Port. Persons or vessels wishing to
enter the safety zone may request
permission to do so from the on scene
Captain of the Port representative via
VHF Channel 16 or 13. The Coast Guard
may be assisted by other Federal, State,
or local enforcement agencies in
enforcing this regulation.
This document is issued under
authority of 33 CFR 100.1302 and 5
U.S.C. 552(a). In addition to this notice
in the Federal Register, the Coast Guard
will provide the maritime community
with notification of this enforcement
period via the Local Notice to Mariners.
Dated: August 12, 2015.
D.J. Travers,
Captain, U.S. Coast Guard, Captain of the
Port, Sector Columbia River.
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
[FR Doc. 2015–21947 Filed 9–2–15; 8:45 am]
33 CFR Part 165
BILLING CODE 9110–04–P
[Docket No. USCG–2014–0492]
DEPARTMENT OF COMMERCE
Safety Zone; Portland Dragon Boat
Races, Portland, Oregon
National Oceanic and Atmospheric
Administration
Coast Guard, DHS.
ACTION: Notice of enforcement of
regulation.
AGENCY:
50 CFR Part 622
The Coast Guard will enforce
the Portland Dragon Boat Races Safety
Zone from 8 a.m. until 6 p.m. on
September 12, 2015 and 8 a.m. until 6
p.m. on September 13, 2015. This action
is necessary to ensure the safety of
maritime traffic, including the public
vessels present, on the Willamette River
during the Portland Dragon Boat Races.
During the enforcement period, no
person or vessel may enter or remain in
the safety zone without permission from
the Sector Columbia River Captain of
the Port.
DATES: The regulations in 33 CFR
165.1341 will be enforced from 8 a.m.
until 6 p.m. on September 12, 2015 and
8 a.m. until 6 p.m. on September 13,
2015.
SUMMARY:
If
you have questions on this notice, call
or email Mr. Ken Lawrenson,
Waterways Management Division, MSU
Portland, Oregon, Coast Guard;
telephone 503–240–9319, email
MSUPDXWWM@uscg.mil.
FOR FURTHER INFORMATION CONTACT:
rmajette on DSK7SPTVN1PROD with RULES
SUPPLEMENTARY INFORMATION:
The Coast Guard will enforce the
safety zone regulation for the Portland
Dragon Boat Races detailed in 33 CFR
165.1341 during the dates and times
listed in DATES.
Under the provisions of 33 CFR
165.1341 and 33 CFR 165 Subpart D, no
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13:52 Sep 02, 2015
Jkt 235001
[Docket No. 141107936–5399–02]
RIN 0648–XE004
Fisheries of the Caribbean, Gulf of
Mexico, and South Atlantic; 2015
Commercial Accountability Measure
and Closure for South Atlantic Gray
Triggerfish; July Through December
Season
National Marine Fisheries
Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
ACTION: Temporary rule; closure.
AGENCY:
NMFS implements
accountability measures for commercial
gray triggerfish in the exclusive
economic zone (EEZ) of the South
Atlantic. NMFS projects commercial
landings for gray triggerfish, will reach
the commercial annual catch limit
(ACL) for the period July through
December by September 8, 2015.
Therefore, NMFS is closing the
commercial sector for gray triggerfish in
the South Atlantic EEZ on September 8,
2015. This closure is necessary to
protect the gray triggerfish resource.
DATES: This rule is effective 12:01 a.m.,
local time, September 8, 2015, until
January 1, 2016.
FOR FURTHER INFORMATION CONTACT:
Catherine Hayslip, NMFS Southeast
SUMMARY:
PO 00000
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Fmt 4700
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53263
Regional Office, telephone: 727–824–
5305, email: catherine.hayslip@
noaa.gov.
The
snapper-grouper fishery of the South
Atlantic includes gray triggerfish and is
managed under the Fishery
Management Plan for the SnapperGrouper Fishery of the South Atlantic
Region (FMP). The FMP was prepared
by the South Atlantic Fishery
Management Council and is
implemented by NMFS under the
authority of the Magnuson-Stevens
Fishery Conservation and Management
Act (Magnuson-Stevens Act) by
regulations at 50 CFR part 622.
The final rule implementing FMP
Amendment 29 recently divided the
commercial ACL (equal to the
commercial quota) for gray triggerfish in
the South Atlantic into two 6-month
fishing seasons and allocated 50 percent
of the total commercial ACL (quota) of
312,324 lb (141,668 kg), round weight,
to each fishing season, January 1
through June 30, and July 1 through
December 31 (80 FR 30947, June 1,
2015), as specified in 50 CFR
622.190(a)(8). However, because the
final rule implementing FMP
Amendment 29 occurred halfway
through the 2015 fishing year and
commercial landings of gray triggerfish
accumulated, only 63,918 lb (28,992 kg)
out of 156,162 lb (70,834 kg), round
weight, remained for the 2015
commercial ACL (quota) for the July 1
through December 31 fishing season.
This quota amount was calculated as the
difference between the total commercial
ACL (312,324 lb (141,667 kg), round
weight) and the amount of commercial
landings that had occurred by July 1,
2015 (248,406 lb (112,675 kg), round
weight).
Under 50 CFR 622.193(q)(1)(i), NMFS
is required to close the commercial
sector for gray triggerfish when the
commercial quota specified in
§ 622.190(a)(8)(i) or (ii) is reached, or is
projected to be reached, by filing a
notification to that effect with the Office
of the Federal Register. NMFS has
determined that the commercial quota
for South Atlantic gray triggerfish will
be reached by September 8, 2015.
Accordingly, the commercial sector for
South Atlantic gray triggerfish is closed
effective 12:01 a.m., local time,
September 8, 2015, until the start of the
next fishing season on January 1, 2016.
The operator of a vessel with a valid
commercial vessel permit for South
Atlantic snapper-grouper having gray
triggerfish on board must have landed
and bartered, traded, or sold such gray
triggerfish prior to 12:01 a.m., local
SUPPLEMENTARY INFORMATION:
E:\FR\FM\03SER1.SGM
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]]>Agencies
[Federal Register Volume 80, Number 171 (Thursday, September 3, 2015)]
[Rules and Regulations]
[Pages 53257-53263]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-21880]
[[Page 53257]]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1218
[Document Number AMS-FV-14-0089]
Blueberry Promotion, Research and Information Order; Expanding
the Membership of the U.S. Highbush Blueberry Council and Other Changes
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This rule expands the membership of the U.S. Highbush
Blueberry Council (Council) under the Blueberry Promotion, Research and
Information Order (Order). The Council administers the Order with
oversight by the U.S. Department of Agriculture (USDA). This rule
increases the number of Council members from 16 to 20, adding two
producers, one importer, and one exporter. This will help ensure that
the Council reflects the geographical distribution of domestic
blueberry production and imports into the United States. This rule also
adds eligibility requirements for the public member, clarifies the
Council's nomination procedures and its ability to serve the diversity
of the industry, and increases the number of members needed for a
quorum. This rule also prescribes late payment and interest charges for
past due assessments. These changes will help facilitate program
administration. All of these actions were unanimously recommended by
the Council.
DATES: Effective Date January 1, 2016.
FOR FURTHER INFORMATION CONTACT: Maureen T. Pello, Marketing
Specialist, Promotion and Economics Division, Fruit and Vegetable
Program, AMS, USDA, P.O. Box 831, Beavercreek, Oregon 97004; telephone:
(503) 632-8848; facsimile (202) 205-2800; or electronic mail:
Maureen.Pello@ams.usda.gov.
SUPPLEMENTARY INFORMATION: This rule is issued under the Order (7 CFR
part 1218). The Order is authorized under the Commodity Promotion,
Research, and Information Act of 1996 (1996 Act) (7 U.S.C. 7411-7425).
Executive Order 12866 and Executive Order 13563
Executive Orders 12866 and 13563 direct agencies to assess all
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts and equity). Executive
Order 13563 emphasizes the importance of quantifying both costs and
benefits, reducing costs, harmonizing rules and promoting flexibility.
This action has been designated as a ``non-significant regulatory
action'' under section 3(f) of Executive Order 12866. Accordingly, the
Office of Management and Budget (OMB) has waived the review process.
Executive Order 13175
This action has been reviewed in accordance with the requirements
of Executive Order 13175, Consultation and Coordination with Indian
Tribal Governments. The review reveals that this regulation will not
have substantial and direct effects on Tribal governments and will not
have significant Tribal implications.
Executive Order 12988
This 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 (7 U.S.C. 7423) 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 (7 U.S.C. 7418), a person subject
to an order may file a written petition with USDA 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 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, USDA
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 USDA's final ruling.
Background
This rule expands the membership of the Council under the Order.
The Council administers the Order with oversight by USDA. Under the
program, assessments are collected from domestic producers and
importers and used for research and promotion projects designed to
increase the demand for highbush blueberries. This rule increases the
number of Council members from 16 to 20, adding two producers, one
importer, and one exporter. This will help ensure that the Council
reflects the geographical distribution of domestic blueberry production
and imports into the United States. This rule also adds eligibility
requirements for the public member, clarifies the Council's nomination
procedures and its ability to serve the diversity of the industry, and
increases the number of members needed for a quorum. This rule also
prescribes late payment and interest charges on past due assessments.
These changes will help facilitate program administration. All of these
actions were unanimously recommended by the Council at its meeting on
October 3, 2014.
Expanding the Council's Membership
Section 1218.40(a) of the Order currently specifies that the
Council be composed of no more than 16 members and alternates appointed
by the Secretary of Agriculture (Secretary). Ten of the 16 members and
alternates are producers. One producer member and alternate are from
each of the following regions within the United States: Region #1
Western Region; Region #2 Midwest Region; Region #3 Northeast Region;
and Region #4 Southern Region. One producer member and alternate are
from each of the top six blueberry producing states, based upon the
average of the total tons produced over the previous three years.
Currently, these states include Michigan, Oregon, Washington, Georgia,
New Jersey, and California. Average tonnage is based upon production
and assessment figures generated by the Council.
Of the remaining six Council members and alternates, three members
and alternates are importers. One member and alternate must be an
exporter, defined in Sec. 1218.40 as a blueberry producer currently
shipping blueberries into the United States from the largest foreign
blueberry production area, based on a three-year average (currently
Chile). One member and alternate must be a first handler, defined in
Sec. 1218.40 as a United States based independent or cooperative
organization which is a producer/shipper of domestic blueberries.
Finally, one member and alternate must represent the public.
Section 1218.40(b) of the Order specifies that, at least once every
five years, the Council will review the geographical distribution of
the production of blueberries in the United
[[Page 53258]]
States and the quantity of imports. The review is conducted through an
audit of state crop production figures and Council assessment records.
If warranted, the Council will recommend to the Secretary that its
membership be altered to reflect changes in the geographical
distribution of domestic blueberry production and the quantity of
imports. If the level of imports increases, importer members and
alternates may be added to the Council.
Council Recommendation
Adding Two State Producer Positions
The Council met on October 3, 2014, and reviewed domestic
production and assessment data for the pasts three years (2011-2013).
This data for the top blueberry producing states is summarized in Table
1 below.
---------------------------------------------------------------------------
\1\ Noncitrus Fruits and Nuts 2013 Summary, July 2014, USDA,
National Agricultural Statistics Service, p. 34.
\2\ Council assessment records 2011-2013.
Table 1--Production \1\ and Assessment \2\ Figures From 2011-2013
--------------------------------------------------------------------------------------------------------------------------------------------------------
2011 2012 2013 3-year average
---------------------------------------------------------------------------------------------------------------
State Assessments Assessments Assessments Assessments
Tons paid Tons paid Tons paid Tons paid
--------------------------------------------------------------------------------------------------------------------------------------------------------
Michigan................................ 36,000 $434,775 43,500 $528,782 57,500 $668,678 45,500 $544,075
Oregon.................................. 32,750 363,726 36,000 433,326 44,750 517,579 37,833 438,210
Washington.............................. 30,500 319,635 35,000 334,242 40,800 361,595 35,433 338,491
Georgia................................. 32,500 343,694 38,500 347,666 34,000 359,681 35,000 350,347
New Jersey.............................. 31,000 321,123 27,000 285,502 25,080 288,578 27,693 298,401
California.............................. 21,050 286,696 20,450 301,212 25,700 366,494 22,400 318,134
North Carolina.......................... 18,500 189,061 20,250 198,090 21,200 190,904 19,983 192,685
Florida................................. 11,700 131,538 9,050 88,246 10,750 124,576 10,500 114,787
Mississippi............................. 5,250 27,096 4,500 28,610 3,650 17,566 4,467 24,424
Indiana................................. 800 3,007 750 3,160 1,600 7,751 1,050 4,639
--------------------------------------------------------------------------------------------------------------------------------------------------------
As shown in Table 1, Michigan, Oregon, Washington, Georgia, New
Jersey, California, North Carolina, and Florida, respectively, were the
top eight highbush blueberry producing states based on the 3-year
average of both production and assessments paid from 2011-2013.
Mississippi and Indiana, respectively, were the ninth and tenth highest
blueberry producing states from 2011-2013. Blueberry production in
Florida, the smallest producer of the top eight producing states, was
more than double that of Mississippi.
Since the Council's inception in 2001 and continuing until 2006,
there were five state positions on the Council; producers from
Michigan, Oregon, Georgia, New Jersey, and North Carolina held those
five positions. In 2006, a sixth state position was added to the
Council, with the State of Washington earning a seat (71 FR 44553;
August 7, 2006). Production shifted in the coming years, and by 2014,
California became the sixth top blueberry producing state and earned a
position on the Council, with its 3-year average production surpassing
that of North Carolina.
After reviewing state production data, the Council recommended
revising its membership so that one producer member and alternate from
each of the top eight producing blueberry states have seats on the
Council, based upon the average of the total tons produced over the
previous 3 years. Thus, the number of state positions on the Council
will be increased from six to eight. Based upon recent production
figures, this will allow North Carolina and Florida to each have a
state member and alternate seat on the Council. Section 1218.40(a)(2)
is revised accordingly.
Adding One Importer and One Exporter Position
The Council also reviewed import data and compared it to domestic
data. Table 2 below shows the domestic (U.S.) production figures and
quantity of imports from 2011-2013 as well as assessments paid for
domestic and imported blueberries for those years. The table also shows
the 3-year average of domestic production, imports and assessments paid
for 2011-2013.
---------------------------------------------------------------------------
\3\ Noncitrus Fruits and Nuts, p. 9.
\4\ U.S. Customs and Border Protection data 2011-2013.
\5\ Council financial audit records 2011-2013.
Table 2--U.S.\3\ and Import \4\ Quantities and Assessment \5\ Data From 2011-2013
----------------------------------------------------------------------------------------------------------------
Domestic
Year (U.S.) Import U.S. crop Imports (tons)
assessments assessments (tons)
----------------------------------------------------------------------------------------------------------------
2011............................................ $2,151,682 $1,525,936 221,600 124,549
2012............................................ 2,434,646 1,601,966 236,700 132,133
2013............................................ 2,577,953 1,795,164 265,600 151,005
3-Year Average.................................. 2,387,177 1,641,022 241,303 135,896
Percent of Total................................ 59% 41% 64% 36%
----------------------------------------------------------------------------------------------------------------
As shown in Table 2, the quantity of imported blueberries as well
as assessments paid by importers has increased from 2011-2013. Based
upon a 3-year average of total assessments paid under the program,
domestic blueberries account for 59 percent of assessments paid and
imports account for 41 percent of assessments paid. Additionally, based
on a 3-year average of the total tonnage covered under the program,
domestic production accounts for 64 percent of the tonnage and imports
account for 36 percent of the tonnage.
[[Page 53259]]
The Council also reviewed import data by country. Table 3 below
shows the quantity of imports by country from 2011-2013 as well as the
3-year average.
---------------------------------------------------------------------------
\6\ Customs data 2011-2013.
Table 3--Quantity of Blueberries From Foreign Production Areas 2011-2013 \6\
----------------------------------------------------------------------------------------------------------------
Quantity (tons)
Foreign blueberry production areas shipping into ---------------------------------------------------------------
the United States 2011 2012 2013 3-year average
----------------------------------------------------------------------------------------------------------------
Chile........................................... 76,889 69,754 84,673 77,105
Canada.......................................... 30,374 70,767 48,149 49,763
Argentina....................................... 9,001 14,830 13,813 12,548
----------------------------------------------------------------------------------------------------------------
As shown in Table 3, Chile and Canada, respectively, were the top
two foreign production areas shipping blueberries into the United
States from 2011-2013. Argentina has been the third top foreign
production area shipping blueberries into the United States, although
the quantity of Argentinian imports is much lower than the quantity of
blueberries from Chile and Canada.
Regarding membership on the Council, representatives from Canada
were the exporter member and alternate from the time of the Council's
inception and continuing through 2009. Since 2010, representatives from
Chile have been the exporter member and alternate on the Council.
Upon reviewing import data, the Council recommended adding one
importer member and one alternate to its membership. This will increase
the number of importer positions from three to four. The Council also
recommended adding one exporter member and one alternate to its
membership to represent foreign producers currently shipping
blueberries into the United States from the second largest foreign
blueberry production area, based on a 3-year average. This will
increase the number of exporter positions from one to two, allowing
exporters from both Chile and Canada to be represented on the Council.
Section 1218.40(a) of the Order is amended accordingly.
Thus, the number of Council members will increase from 16 to 20. Of
the 20 members, 12 will be domestic producers, 4 will be importers, 2
will be exporters, and 1 each will be a handler and public member. Of
the 18 Council members representing domestic producers, importers and
exporters, 66.7 percent will represent the domestic industry and 33.3
percent of the Council will represent imports or foreign production.
This will realign the Council's membership to better reflect the
geographic distribution of domestic and imported blueberries.
Other Changes
Public Member Eligibility
The Council reviewed other Order provisions regarding its
membership and operations. The Council recommended revising paragraph
(a)(6) of Sec. 1218.40 to clarify eligibility requirements for the
public member and alternate member positions. Specifically, the Council
recommended that the public member and alternate not be a blueberry
producer, handler, importer, exporter or have a financial interest in
the production, sales, marketing or distribution of blueberries.
Diversity
The Council also recommended adding language to the Order to
clarify its ability to serve the diversity of the industry. The Council
recommended adding a new paragraph (c) to Sec. 1218.40 to specify
that, when the industry makes recommendations for nominees to serve on
the Council, it should take into account the diversity of the
population served and the knowledge, skills, and abilities of the
members to serve a diverse population, size of the operations, methods
of production and distribution, and other distinguishing factors to
ensure that the recommendations of the Council take into account the
diverse interest of persons responsible for paying assessments, and
others in the marketing chain, if appropriate.
Nominations and Appointments
The Council recommended minor revisions to Sec. 1218.41 of the
Order regarding nominations and appointments. The procedures to
nominate state and regional producers, as well as importers, exporters,
first handlers, and public members will not change. The section is
merely revised to add clarity regarding the process for nominating
members in states with and without a state blueberry commission or
marketing order.
The Council also recommended adding language to Sec. 1218.41 to
expand the number of nominees submitted to the Secretary for
consideration. Paragraph (a) of Sec. 1218.41 currently provides that,
when a state has a blueberry commission or marketing order in place,
the state commission or committee will nominate members to serve on the
Council. At least two nominees must be recommended to the Secretary for
each member and each alternate position. The Council recommended that
other qualified persons who are interested in serving in the respective
state positions but are not nominated by their State marketing order or
commission be designated by the State organization and/or Council as
additional nominees for consideration by the Secretary. Section
1218.41(a) is revised accordingly.
Likewise, paragraph (d) of Sec. 1218.41 currently provides that
nominations for the importer, exporter, first handler, and public
member positions be made by the Council. Two nominees for each member
and each alternate position are submitted to the Secretary for
consideration. The Council recommended that other qualified persons who
are interested in serving in these positions but are not recommended by
the Council be designated by the Council as additional nominees for
consideration by the Secretary. The current paragraph (d) in Sec.
1218.41 is modified accordingly and becomes paragraph (c).
The Council also recommended adding a new paragraph (d) to Sec.
1218.41 to specify that producer, handler and importer nominees must be
in compliance with the Order's provisions regarding the payment of
assessments and filing of reports. This will help ensure that only
persons in compliance with the Order's obligations serve on the
Council. Further, this section will clarify that producer and importer
nominees must produce or import, respectively, 2,000 pounds or more of
highbush blueberries annually. This
[[Page 53260]]
will bring the Order in line with how the program has been administered
since its inception. Section 1218.41 is revised accordingly.
Council Procedures
The Council recommended revisions to Sec. 1218.45 regarding
procedures. First, the Council recommended increasing the number of
members needed for a quorum. Paragraph (a) of Sec. 1218.45 currently
specifies that nine members are needed for a quorum, which is a
majority of the current 16-member Council. Increasing the number of
Council members to 20 warrants increasing the number members needed for
a quorum to 11, which will be a majority of the 20-member Council.
The Council also recommended adding flexibility to its procedures
so that members participating in Council meetings may cast votes on
issues either in person or by electronic or other means as deemed
appropriate. Specifically, a new paragraph (f) is added to Sec.
1218.45 to specify that all votes at meetings of the Council and
committees may be cast in person or by electronic voting or other means
as the Council and Secretary deem appropriate to allow members
participating by telephone or other electronic means to cast votes.
Past Due Assessments
The Order specifies that the funds to cover the Council's expenses
shall be paid from assessments on producers and importers, donations
from persons not subject to assessments and from other funds available
to the Council. First handlers are responsible for collecting and
submitting reports and producer assessments to the Council. Handlers
must also maintain records necessary to verify their reports. Importers
are responsible for paying assessments to the Council on highbush
blueberries imported into the United States through the U.S. Customs
and Border Protection (Customs). The Order also provides for two
exemptions. Producers and importers who produce or import less than
2,000 pounds of blueberries annually, and producers and importers of
organic blueberries are exempt from the payment of assessments.
Section 1218.52(e) of the Order specifies that all assessment
payments and reports must be submitted to the office of the Council.
Assessments on imported blueberries are collected by Customs prior to
entry into the United States. Assessments on domestic blueberries for a
crop year must be received by the Council no later than November 30 of
that year. A late payment charge shall be imposed on any handler who
fails to remit to the Council, the total amount for which any such
handler is liable on or before the due date established by the Council.
In addition to the late payment charge, an interest charge shall be
imposed on the outstanding amount for which the handler is liable. The
rate of interest must be prescribed in regulations issued by the
Secretary.
Assessment funds are used for research and promotion activities
that are intended to benefit all industry members. Thus, it is
important that all assessed entities pay their assessments in a timely
manner. Entities who fail to pay their assessments on time may reap the
benefits of Council programs at the expense of others. In addition,
they may utilize funds for their own use that should otherwise be paid
to the Council to finance Council programs.
The Council recommended prescribing rates of late payment and
interest charges for past due assessments in the Order's regulations. A
late payment charge will be imposed upon handlers who fail to pay their
assessments to the Council within 30 calendar days of the date when
assessments are due. This one-time late payment charge will be 5
percent of the assessments due before interest charges have accrued.
Additionally, interest at a rate of 1 percent per month on the
outstanding balance, including any late payment and accrued interest,
will be added to any accounts for which payment has not been received
within 30 calendar days of the date when assessments are due. Interest
will continue to accrue monthly until the outstanding balance is paid
to the Council.
This action is expected to help facilitate program administration
by providing an incentive for entities to remit their assessments in a
timely manner, with the intent of creating a fair and equitable process
among all assessed entities. Accordingly, a new Subpart C is added to
the Order for provisions implementing the blueberry Order, and a new
Sec. 1218.520 is added to Subpart C. Late payment charges and interest
on past due assessments are not applicable for assessments on imported
blueberries because the assessments are collected by Customs at the
time of entry.
Final 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 this final rule on
small entities. Accordingly, AMS has considered the economic impact of
this action on such 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
(first handlers and importers) as those having annual receipts of no
more than $7.0 million.
There are approximately 2,000 domestic producers, 80 first handlers
and 200 importers of highbush blueberries covered under the program.
Dividing the highbush blueberry crop value for 2013, $715,958,000,\7\
by the number of producers (2,000) yields an average annual producer
revenue estimate of $357,979. It is estimated that in 2013, about 60
percent of the first handlers shipped under $7.0 million worth of
highbush blueberries. Based on 2013 Customs data, it is estimated that
almost 90 percent of the importers shipped under $7.0 million worth of
highbush blueberries. Based on the foregoing, the majority of
producers, first handlers and importers may be classified as small
entities. We do not have information concerning the number of exporters
and their size.
---------------------------------------------------------------------------
\7\ Noncitrus Fruits and Nuts 2014 Summary, July 2014, USDA,
National Agricultural Statistics Service (NASS), p. 10.
---------------------------------------------------------------------------
Regarding value of the commodity, as mentioned above, based on 2013
NASS data, the value of the domestic highbush blueberry crop was about
$716 million. According to Customs data, the value of 2013 imports was
about $563 million.
This rule amends Sec. Sec. 1218.40, 1218.41 and 1218.45 of the
Order regarding Council membership, nominations, and procedures,
respectively. The Council administers the Order with oversight by USDA.
Under the program, assessments are collected from domestic producers
and importers and used for research and promotion projects designed to
increase the demand for highbush blueberries. This rule increases the
number of Council members from 16 to 20, adding two producers, one
importer, and one exporter. This will help ensure that the Council
reflects the geographical distribution of domestic blueberry production
and imports into the United States. Authority for this action is
provided in Sec. 1218.40(b) of the Order and section 515(b) of the
1996 Act.
This rule also prescribes charges for past due assessments under
the Order. A new Sec. 1218.520 will be added to the
[[Page 53261]]
Order specifying a one-time late payment charge of 5 percent of the
assessments due and interest at a rate of 1 percent per month on the
outstanding balance, including any late payment and accrued interest.
This section will be included in a new Subpart C--Provisions for
Implementing the Blueberry Promotion, Research and Information Order.
Authority for this action is provided in Sec. 1218.52(e) of the Order
and section 517(e) of the 1996 Act.
Regarding the economic impact of the rule on affected entities,
expanding the Council membership and other changes to the Order's
membership provisions impose no additional costs on industry members.
Eligible producers, importers and exporters interested in serving on
the Council would have to complete a background questionnaire. Those
requirements are addressed later in this rule in the section titled
Reporting and Recordkeeping Requirements.
Prescribing charges for past due assessments imposes no additional
costs on handlers who pay their assessments on time. It merely provides
an incentive for entities to remit their assessments in compliance with
the Order. For all entities who are delinquent in paying assessments,
both large and small, the charges will be applied the same. As for the
impact on the industry as a whole, this action helps facilitate program
administration by providing an incentive for entities to remit their
assessments in a timely manner, with the intent of creating a fair and
equitable process among all assessed entities.
Additionally, as previously mentioned, the Order also provides for
two exemptions. Producers and importers who produce or import less than
2,000 pounds of blueberries annually, and producers and importers of
organic blueberries are exempt from the payment of assessments. Of the
2,000 producers, it is estimated that 1,860 producers and 180 importers
produce or import over the 2,000-pound threshold and pay assessments
under the program.
Regarding alternatives, the Council has been reviewing its
membership and contemplating adding new members to reflect changes in
the geographic distribution of blueberries for the past few years. As
previously mentioned, in 2014, California became the sixth top
blueberry producing state, which earned that state a member and
alternate seat on the Council, while North Carolina lost its member and
alternate seat. The Council formed a subcommittee that considered
various options. One option was to eliminate the four regional producer
positions and allocate nine seats to producers representing the nine
top producing blueberry states and one seat to a producer representing
all other producing states (producer at-large). Another option
considered was to increase the number of state producer positions from
six to seven so that North Carolina would have a seat. The Council also
considered maintaining the status quo. Ultimately the Council
recommended revising the Order so that the top eight producing
blueberry states would be represented on the Council.
The Council also considered adding two importers rather than one
importer and one exporter to its membership. However, upon reviewing
the import statistics, the Council concluded that it was important to
have foreign producer representation from the top two countries
shipping blueberries into the United States represented on the Council.
Thus, the Council recommended adding one importer and one exporter
member and alternates to the Council.
Regarding requirements for late assessments, the Council considered
not prescribing rates for late charges and interest. However, the
Council concluded that the rates should be codified along with the
applicable date when charges would be applied so that the Order is
clear on what is required. Additionally, the 1996 Act requires that the
rates be prescribed by the Secretary.
Reporting and Recordkeeping Requirements
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
Chapter 35), the information collection and recordkeeping requirements
that are imposed by the Order have been approved previously under OMB
control number 0581-0093. Eligible producers, importers, exporters,
handlers, and public members interested in serving on the Council must
complete a background questionnaire (Form AD-755) to verify their
eligibility. This rule results in no changes to the information
collection and recordkeeping requirements previously approved and
imposes no additional reporting and recordkeeping burden on blueberry
producers, importers, exporters, handlers or public members.
As with all Federal promotion programs, reports and forms are
periodically reviewed to reduce information requirements and
duplication by industry and public sector agencies. Finally, USDA has
not identified any relevant Federal rules that duplicate, overlap, or
conflict with this rule.
AMS is committed to complying with the E-Government Act, to promote
the use of the Internet and other information technologies to provide
increased opportunities or citizen access to Government information and
services, and for other purposes.
Regarding outreach efforts, this action was discussed by the
Council at meetings in October 2012, in 2013, and at executive and
subcommittee meetings held in 2014. The Council met in October 2014 and
unanimously made its recommendations. All of the Council's meetings are
open to the public and interested persons are invited to participate
and express their views.
A proposed rule concerning this action was published in the Federal
Register on May 8, 2015 (80 FR 26469). The Council mailed copies of the
rule to all known highbush blueberry producers and importers of record.
The Council also included notifications about the proposed rule in its
newsletters and posted the proposal on its Web site. Finally, the
proposal was made available through the Internet by USDA and the Office
of the Federal Register. A 60-day comment period ending July 7, 2015
was provided to allow interested persons to submit comments.
One comment was received during the comment period. The commenter
supported the proposed changes regarding the Council's membership, but
recommended changes to the proposed interest and late payment charges
for delinquent assessments. The commenter expressed concern with
imposing a fixed interest rate on late assessments and opined that a
fixed rate could become unreasonable if future interest rates
fluctuated. The commenter also recommended that the late payment charge
be capped at 3 percent of the assessments due rather than the proposed
rate of 5 percent.
USDA has concluded that the proposed 1 percent fixed interest rate
per month on outstanding balances due the Council and the proposed 5
percent charge on late assessments, are both reasonable fees. Under the
blueberry program, assessments on domestic blueberries are due once per
year to the Council (by November 30). Thus, handlers have all year to
make their one payment to the Council. Handlers will also have a 30-day
grace period before interest or late payment charges are applied.
Additionally, the rates are comparable to those specified in other
research and promotion programs. Finally, if the Council determined
different rates were warranted, it could make that recommendation to
USDA and the rates could be revised through
[[Page 53262]]
rulemaking. Thus, no changes have been made to the proposed rule based
on this comment.
After consideration of all relevant matters presented, including
the information and recommendation submitted by the Council and other
available information, it is hereby found that this rule, as
hereinafter set forth, is consistent with and will effectuate the
purposes of the 1996 Act.
List of Subjects in 7 CFR Part 1218
Administrative practice and procedure, Advertising, Blueberry
promotion, Consumer information, Marketing agreements, Reporting and
recordkeeping requirements.
For the reasons set forth in the preamble, 7 CFR part 1218 is
amended as follows:
PART 1218--BLUEBERRY PROMOTION, RESEARCH, AND INFORMATION ORDER
0
1. The authority citation for 7 CFR part 1218 continues to read as
follows:
Authority: 7 U.S.C. 7411-7425; 7 U.S.C. 7401.
0
2. In Sec. 1218.40, revise the introductory text of paragraph (a),
revise paragraphs (a)(2), (3), (4), and (6) and add a new paragraph (c)
to read as follows:
Sec. 1218.40 Establishment and membership.
(a) Establishment of the U.S. Highbush Blueberry Council. There is
hereby established a U.S. Highbush Blueberry Council, hereinafter
called the Council, composed of no more than 20 members and alternates,
appointed by the Secretary from nominations as follows:
* * * * *
(2) One producer member and alternate from each of the top eight
blueberry producing states, based on the average of the total tons
produced over the previous three years. Average tonnage will be based
upon production and assessment figures generated by the Council.
(3) Four importers and alternates.
(4) Two exporters and alternates will be filled by foreign
blueberry producers currently shipping blueberries into the United
States from the two largest foreign blueberry production areas,
respectively, based on a three-year average.
* * * * *
(6) One public member and alternate. The public member and
alternate public member may not be a blueberry producer, handler,
importer, exporter, or have a financial interest in the production,
sales, marketing or distribution of blueberries.
* * * * *
(c) Council's ability to serve the diversity of the industry. When
making recommendations for appointments, the industry should take into
account the diversity of the population served and the knowledge,
skills, and abilities of the members to serve a diverse population,
size of the operations, methods of production and distribution, and
other distinguishing factors to ensure that the recommendations of the
Council take into account the diverse interest of persons responsible
for paying assessments, and others in the marketing chain, if
appropriate.
0
3. Section 1218.41 is revised to read as follows:
Sec. 1218.41 Nominations and appointments.
(a) State representatives. (1) When a state has a state blueberry
commission or marketing order in place, the state commission or
committee will nominate members to serve on the Council. At least two
nominees shall be recommended to the Secretary for each member and each
alternate position. Other eligible persons interested in serving in the
respective state positions but not nominated by their State marketing
order or commission will be designated by the State organization and/or
Council as additional nominees for consideration by the Secretary.
(2) Nomination and election of state representatives where no
commission or order is in place will be handled by the Council staff.
The Council staff will seek nominations for members and alternates from
the specific states. Nominations will be returned to the Council office
and placed on a ballot which will then be sent to producers in the
state for a vote. The final 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 final nominee for alternate. The persons with
the third and fourth highest number of votes cast will be designated as
additional nominees for consideration by the Secretary.
(b) Regional representatives. Nomination and election of regional
representatives will be handled by the Council staff. The Council staff
will seek nominations for members and alternates from the specific
regions. Nominations will be returned to the Council office and placed
on a ballot which will then be sent to producers in the region for a
vote. The final 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 final nominee for alternate. The persons with
the third and fourth highest number of votes cast will be designated by
the Council as additional nominees for consideration by the Secretary.
(c) Nominations for the importer, exporter, first handler, and
public member positions will be made by the Council. Two nominees for
each member and each alternate position will be recommended to the
Secretary for consideration. Other qualified persons interested in
serving in these positions but not recommended by the Council will be
designated by the Council as additional nominees for consideration by
the Secretary.
(d) Producer, handler and importer nominees must be in compliance
with the Order's provisions regarding payment of assessments and filing
of reports. Further, producers and importers must produce or import,
respectively, 2,000 pounds or more of highbush blueberries annually.
(e) From the nominations, the Secretary shall select the members
and alternate members of the Council.
0
4. In Sec. 1218.45, revise paragraph (a), redesignate paragraphs (f),
(g), (h), and (i) as paragraphs (g), (h), (i) and (j), and add a new
paragraph (f) to read as follows:
Sec. 1218.45 Procedure.
(a) At a Council meeting, it will be considered a quorum when a
minimum of 11 members, or their alternates serving in their absence,
are present.
* * * * *
(f) All votes at meetings of the Council and committees may be cast
in person or by electronic voting or other means as the Council and
Secretary deem appropriate to allow members participating by telephone
or other electronic means to cast votes.
* * * * *
0
5. Add Subpart C, consisting of Sec. 1218.520, to read as follows:
Subpart C--Provisions for Implementing the Blueberry Promotion,
Research and Information Order
Sec. 1218.520 Late payment and interest charges for past due
assessments.
(a) A late payment charge will be imposed on any handler who fails
to make timely remittance to the Council of the total assessments for
which they are liable. The late payment will be imposed on any
assessments not received within 30 calendar days of the date when
assessments are due. This one-time late payment charge will be 5
percent of the assessments due before interest charges have accrued.
[[Page 53263]]
(b) In addition to the late payment charge, 1 percent per month
interest on the outstanding balance, including any late payment and
accrued interest, will be added to any accounts for which payment has
not been received within 30 calendar days of the date when assessments
are due. Interest will continue to accrue monthly until the outstanding
balance is paid to the Council.
Dated: August 28, 2015.
Rex A. Barnes,
Associate Administrator.
[FR Doc. 2015-21880 Filed 9-2-15; 8:45 am]
BILLING CODE 3410-02-P
