Raisins Produced From Grapes Grown in California; Increased Assessment Rate, 73644-73647 [2015-30013]
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73644
Federal Register / Vol. 80, No. 227 / Wednesday, November 25, 2015 / Rules and Regulations
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 are necessary as a
result of this action. Should any changes
become necessary, they would be
submitted to OMB for approval.
This action imposes no additional
reporting or recordkeeping requirements
on either small or large Florida tomato
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 rule.
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/
rules-regulations/moa/small-businesses.
Any questions about the compliance
guide should be sent to Jeffery Smutny
at the previously mentioned address in
the FOR FURTHER INFORMATION CONTACT
section.
After consideration of all relevant
material presented, including the
information and recommendation
submitted by the Committee and other
available information, it is hereby found
that this rule, as hereinafter set forth,
will tend to effectuate the declared
policy of the Act.
Pursuant to 5 U.S.C. 553, it is also
found and determined upon good cause
that it is impracticable, unnecessary,
and contrary to the public interest to
give preliminary notice prior to putting
this rule into effect, and that good cause
exists for not postponing the effective
date of this rule until 30 days after
publication in the Federal Register
because: (1) The 2015–16 fiscal period
began on August 1, 2015, and the
marketing order requires that the rate of
assessment for each fiscal period apply
to all assessable Florida tomatoes
handled during such fiscal period; (2)
the Committee needs to have sufficient
funds to pay its expenses which are
incurred on a continuous basis and this
action decreases the assessment rate for
assessable tomatoes beginning with the
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2015–16 fiscal period; (3) handlers are
aware of this action which was
unanimously recommended by the
Committee at a public meeting and is
similar to other assessment rate actions
issued in past years; and (4) this interim
rule provides a 60-day comment period,
and all comments timely received will
be considered prior to finalization of
this rule.
List of Subjects in 7 CFR Part 966
Marketing agreements, Reporting and
recordkeeping requirements, Tomatoes.
For the reasons set forth in the
preamble, 7 CFR part 966 is amended as
follows:
PART 966—TOMATOES GROWN IN
FLORIDA
1. The authority citation for 7 CFR
part 966 continues to read as follows:
■
Authority: 7 U.S.C. 601–674.
2. Section 966.234 is revised to read
as follows:
■
§ 966.234
Assessment rate.
On and after August 1, 2015, an
assessment rate of $0.03 per 25-pound
container is established for Florida
tomatoes.
Dated: November 20, 2015.
Rex A. Barnes,
Associate Administrator, Agricultural
Marketing Service.
[FR Doc. 2015–30018 Filed 11–24–15; 8:45 am]
BILLING CODE P
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 989
[Doc. No. AMS–FV–15–0032; FV15–989–2
FR]
Raisins Produced From Grapes Grown
in California; Increased Assessment
Rate
Agricultural Marketing Service,
USDA.
ACTION: Final rule.
AGENCY:
This rule implements a
recommendation from the Raisin
Administrative Committee (committee)
for an increase of 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.
SUMMARY:
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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 will remain in effect
indefinitely unless modified,
suspended, or terminated.
DATES: Effective November 27, 2015.
FOR FURTHER INFORMATION CONTACT:
Maria Stobbe, Marketing Specialist, or
Martin Engeler, Regional Director,
California Marketing Field Office,
Marketing Order and Agreement
Division, Specialty Crops Program,
AMS, USDA; Telephone: (559) 487–
5901, Fax: (559) 487–5906; or Email:
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, Specialty Crops Program,
AMS, USDA, 1400 Independence
Avenue SW., STOP 0237, Washington,
DC 20250–0237; Telephone: (202) 720–
2491, Fax: (202) 720–8938, or Email:
Jeffrey.Smutny@ams.usda.gov.
SUPPLEMENTARY INFORMATION: This 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 rule in
conformance with Executive Orders
12866, 13563, and 13175.
This 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 issued herein will 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
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Federal Register / Vol. 80, No. 227 / Wednesday, November 25, 2015 / Rules and Regulations
a hearing on the petition. After the
hearing, USDA would rule on the
petition. The Act provides that the
district court of the United States in any
district in which the handler is an
inhabitant, or has his or her principal
place of business, has jurisdiction to
review USDA’s ruling on the petition,
provided an action is filed not later than
20 days after the date of the entry of the
ruling.
This rule increases the assessment
rate established by the committee for the
2015–16 and subsequent crop years
from $14.00 to $17.00 per ton of
California raisins handled.
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 assessment rate of $17.00 per ton is
expected to generate assessment income
of $5,832,496, which should be
sufficient to fund the 2015–16 expenses.
As previously stated, the committee’s
budget for the 2015–16 crop year is
$5,832,496, and the 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 costs of $30,000;
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research and studies costs of $129,000;
operation and maintenance costs 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 costs of
$30,000; research and studies costs of
$85,000; operation and maintenance
costs 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 costs increased
from $85,000 for the 2014–15 crop year
to $129,000 for the 2015–16 crop year;
and operation and maintenance costs 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 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 assessment rate established in
this rule will 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 will be
in effect for an indefinite period, the
committee will 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
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73645
from the committee or USDA.
Committee meetings are open to the
public and interested persons may
express their views at these meetings.
USDA will evaluate committee
recommendations and other available
information to determine whether
modification of the assessment rate is
needed. Further rulemaking will be
undertaken as necessary. The
committee’s 2015–16 budget and those
for subsequent crop years, would be
reviewed and, as appropriate, approved
by USDA.
Final Regulatory Flexibility Analysis
Pursuant to requirements set forth in
the Regulatory Flexibility Act (RFA) (5
U.S.C. 601–612), the Agricultural
Marketing Service (AMS) has
considered the economic impact of this
rule on small entities. Accordingly,
AMS has prepared this final regulatory
flexibility analysis.
The purpose of the RFA is to fit
regulatory actions to the scale of
businesses subject to such actions in
order that small businesses will not be
unduly or disproportionately burdened.
Marketing orders issued pursuant to the
Act, and the rules issued thereunder, are
unique in that they are brought about
through group action of essentially
small entities acting on their own
behalf.
There are approximately 3,000
producers of California raisins and
approximately 20 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 rule increases 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 are
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 expenditures
to fund increased promotional programs
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Federal Register / Vol. 80, No. 227 / Wednesday, November 25, 2015 / Rules and Regulations
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 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.
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 costs of $30,000;
research costs of $129,000; operation
and maintenance costs 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 costs of
$30,000; research costs of $85,000;
operation and maintenance costs 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
costs 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 costs have
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 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
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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 is
expected to remain at less than one
percent of grower revenue.
Regarding the impact of this action on
affected entities, this action increases
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.
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 are
necessary as a result of this action.
Should any changes become necessary,
they would be submitted to OMB for
approval.
This rule imposes no additional
reporting or recordkeeping requirements
on either small or large California 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. As noted in the initial
regulatory flexibility analysis, USDA
has not identified any relevant Federal
rules that duplicate, overlap, or conflict
with this final 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 for citizen
access to Government information and
services, and for other purposes.
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A proposed rule concerning this
action was published in the Federal
Register on September 2, 2015 (80 FR
53022). Copies of the proposed rule
were mailed or sent via facsimile or
email to all raisin handlers. Finally, the
proposal was made available through
the Internet by USDA and the office of
the Federal Register. A 30-day comment
period ending October 2, 2015, was
provided for interested persons to
respond to the proposal. Five comments
were received: Four in support of the
proposed rule and one opposed. The
commenter in opposition questioned the
use of funds for more committee travel
and expressed concern that past trips
have not increased sales. The
commenter is also concerned that the
increase would be at the expense of
producers. This action increases the
assessment obligation imposed on
handlers. While some of these
additional costs may be passed on to
producers, the committee, which is
comprised of producers and handlers,
unanimously voted to increase the
assessment rate. It is expected that the
increase in costs would be offset by the
benefits derived by the industry, as a
whole. Accordingly, no change will be
made to the rule as proposed.
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/
rules-regulations/moa/small-businesses.
Any questions about the compliance
guide should be sent to Jeffrey Smutny
at the previously mentioned address in
the FOR FURTHER INFORMATION CONTACT
section.
After consideration of all relevant
material presented, including the
information and recommendation
submitted by the committee and other
available information, it is hereby found
that this rule, as hereinafter set forth,
will tend to effectuate the declared
policy of the Act.
Pursuant to 5 U.S.C. 553, it is also
found and determined that good cause
exists for not postponing the effective
date of this rule until 30 days after
publication in the Federal Register
because handlers are already receiving
2015–16 raisin crop from growers, and
the crop year began on August 1, 2015,
and the marketing order requires that
the assessment rate applies to all
assessable raisins received during the
2015–16 and subsequent seasons.
Further, handlers are aware of this rule
which was recommended at a public
meeting. Also, a 30-day comment period
was provided for in the proposed rule.
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Federal Register / Vol. 80, No. 227 / Wednesday, November 25, 2015 / Rules and Regulations
List of Subjects in 7 CFR Part 989
In the rule
that is the subject of this correction, the
Agency revised 7 CFR 1956.101 as
intended, but the Agency inadvertently
did not make the correct conforming
change in 7 CFR 1956.147. To correct
this oversight, the Agency is ‘‘reserving’’
7 CFR 1956.147 in its entirety. This
correction has no substantive effect on
how debts are settled under this part.
SUPPLEMENTARY INFORMATION:
Grapes, Marketing agreements,
Raisins, Reporting and recordkeeping
requirements.
For the reasons set forth in the
preamble, 7 CFR part 989 is amended as
follows:
PART 989—RAISINS PRODUCED
FROM GRAPES GROWN IN
CALIFORNIA
Need for Correction
2. Section 989.347 is revised to read
as follows:
As published, the text that remains in
7 CFR 1956.147 after the March 13,
2015, rule may be misleading and cause
confusion as a result of the changes
made to 7 CFR 1956.101 in the March
13, 2015, rule.
§ 989.347
Assessment rate.
List of Subjects in 7 CFR Part 1956
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.
Loan programs—agriculture, Loan
programs—housing and community
development.
Accordingly, 7 CFR 1956.147 is
corrected by making the following
correcting amendment:
1. The authority citation for 7 CFR
part 989 continues to read as follows:
■
Authority: 7 U.S.C. 601–674.
■
Dated: November 20, 2015.
Rex A. Barnes,
Associate Administrator, Agricultural
Marketing Service.
PART 1956—DEBT SETTLEMENT
1. The authority citation for part 1956
continues to read as follows:
■
[FR Doc. 2015–30013 Filed 11–24–15; 8:45 am]
BILLING CODE P
Authority: 5 U.S.C. 301; and 7 U.S.C.
1989.
DEPARTMENT OF AGRICULTURE
§ 1956.147
Rural Housing Service
■
[Removed and Reserved]
2. Remove and reserve § 1956.147.
Dated: November 12, 2015.
Lisa Mensah,
Under Secretary, Rural Development.
Dated: November 17, 2015.
Michael Scuse,
Under Secretary, Farm and Foreign
Agricultural Services.
Rural Business-Cooperative Service
Rural Utilities Service
Farm Service Agency
7 CFR Part 1956
[FR Doc. 2015–29781 Filed 11–24–15; 8:45 am]
RIN 0570–AA88
BILLING CODE 3410–XY–P
Rural Development Loan Servicing;
Correction
DEPARTMENT OF ENERGY
Rural Housing Service, Rural
Business-Cooperative Service, Rural
Utilities Service, and Farm Service
Agency USDA.
ACTION: Direct final rule; correction.
AGENCY:
jstallworth on DSK7TPTVN1PROD with RULES
Effective November 25, 2015.
FOR FURTHER INFORMATION CONTACT:
Melvin Padgett, Rural Development,
Business Programs, U.S. Department of
Agriculture, 1400 Independence Avenue
SW., STOP 3226, Washington, DC
20250–3225; telephone (202) 720–1495;
email melvin.padgett@wdc.usda./gov.
VerDate Sep<11>2014
15:12 Nov 24, 2015
Jkt 238001
Order No. 818
18 CFR Part 40
This document contains
corrections to the published rule in the
Federal Register of March 13, 2015,
entitled ‘‘Rural Development Loan
Servicing.’’
DATES:
The Commission approves
Reliability Standards and definitions of
terms submitted in three related
petitions by the North American Electric
Reliability Corporation (NERC), the
Commission-approved Electric
Reliability Organization. The
Commission approves Reliability
Standards EOP–011–1 (Emergency
Operations) and PRC–010–1
(Undervoltage Load Shedding). The
proposed Reliability Standards
consolidate, streamline and clarify the
existing requirements of certain
currently-effective Emergency
Preparedness and Operations (EOP) and
Protection and Control (PRC) standards.
The Commission also approves NERC’s
revised definition of the term Remedial
Action Scheme as set forth in the NERC
Glossary of Terms Used in Reliability
Standards, and modifications of
specified Reliability Standards to
incorporate the revised definition.
Further, the Commission approves the
implementation plans, and the
retirement of certain currently-effective
Reliability Standards.
DATES: This rule will become effective
January 25, 2016.
FOR FURTHER INFORMATION CONTACT:
Juan Villar (Technical Information),
Office of Electric Reliability, Federal
Energy Regulatory Commission, 888
First Street NE., Washington, DC
20426, (772) 678–6496,
Juan.Villar@ferc.gov.
Nick Henery (Technical Information),
Office of Electric Reliability, Federal
Energy Regulatory Commission, 888
First Street NE., Washington, DC
20426, (202) 502–8636,
Nick.Henery@ferc.gov.
Mark Bennett (Legal Information), Office
of the General Counsel, Federal
Energy Regulatory Commission, 888
First Street NE., Washington, DC
20426, (202) 502–8524,
Mark.Bennett@ferc.gov.
SUPPLEMENTARY INFORMATION:
SUMMARY:
Federal Energy Regulatory
Commission
SUMMARY:
73647
Final Rule
[Docket Nos. RM15–7–000, RM15–12–000,
and RM15–13–000 Order No. 818]
Revisions to Emergency Operations
Reliability Standards; Revisions to
Undervoltage Load Shedding
Reliability Standards; Revisions to the
Definition of ‘‘Remedial Action
Scheme’’ and Related Reliability
Standards
Federal Energy Regulatory
Commission, Department of Energy.
ACTION: Final rule.
AGENCY:
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(Issued November 19, 2015)
1. Pursuant to section 215 of the
Federal Power Act (FPA),1 the
Commission approves Reliability
Standards and definitions of terms
submitted in three related petitions by
the North American Electric Reliability
Corporation (NERC), the Commissionapproved Electric Reliability
Organization (ERO). In particular, the
Commission approves Reliability
Standards EOP–011–1 (Emergency
1 16
U.S.C. 824o.
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]]>Agencies
[Federal Register Volume 80, Number 227 (Wednesday, November 25, 2015)]
[Rules and Regulations]
[Pages 73644-73647]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-30013]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 989
[Doc. No. AMS-FV-15-0032; FV15-989-2 FR]
Raisins Produced From Grapes Grown in California; Increased
Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This rule implements a recommendation from the Raisin
Administrative Committee (committee) for an increase of 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 will
remain in effect indefinitely unless modified, suspended, or
terminated.
DATES: Effective November 27, 2015.
FOR FURTHER INFORMATION CONTACT: Maria Stobbe, Marketing Specialist, or
Martin Engeler, Regional Director, California Marketing Field Office,
Marketing Order and Agreement Division, Specialty Crops Program, AMS,
USDA; Telephone: (559) 487-5901, Fax: (559) 487-5906; or Email:
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, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue
SW., STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-2491,
Fax: (202) 720-8938, or Email: Jeffrey.Smutny@ams.usda.gov.
SUPPLEMENTARY INFORMATION: This 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 rule in
conformance with Executive Orders 12866, 13563, and 13175.
This 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 issued herein will 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
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a hearing on the petition. After the hearing, USDA would rule on the
petition. The Act provides that the district court of the United States
in any district in which the handler is an inhabitant, or has his or
her principal place of business, has jurisdiction to review USDA's
ruling on the petition, provided an action is filed not later than 20
days after the date of the entry of the ruling.
This rule increases the assessment rate established by the
committee for the 2015-16 and subsequent crop years from $14.00 to
$17.00 per ton of California raisins handled.
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 assessment rate of $17.00 per ton is expected to
generate assessment income of $5,832,496, which should be sufficient to
fund the 2015-16 expenses.
As previously stated, the committee's budget for the 2015-16 crop
year is $5,832,496, and the 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 costs of
$30,000; research and studies costs of $129,000; operation and
maintenance costs 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 costs of $30,000; research and
studies costs of $85,000; operation and maintenance costs 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
costs increased from $85,000 for the 2014-15 crop year to $129,000 for
the 2015-16 crop year; and operation and maintenance costs 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 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 assessment rate established in this rule will 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 will be in effect for an indefinite
period, the committee will 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 will evaluate committee
recommendations and other available information to determine whether
modification of the assessment rate is needed. Further rulemaking will
be undertaken as necessary. The committee's 2015-16 budget and those
for subsequent crop years, would be reviewed and, as appropriate,
approved by USDA.
Final Regulatory Flexibility Analysis
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS)
has considered the economic impact of this rule on small entities.
Accordingly, AMS has prepared this final regulatory flexibility
analysis.
The purpose of the RFA is to fit regulatory actions to the scale of
businesses subject to such actions in order that small businesses will
not be unduly or disproportionately burdened. Marketing orders issued
pursuant to the Act, and the rules issued thereunder, are unique in
that they are brought about through group action of essentially small
entities acting on their own behalf.
There are approximately 3,000 producers of California raisins and
approximately 20 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 rule increases 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 are
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 expenditures to fund increased promotional programs
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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 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.
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 costs of
$30,000; research costs of $129,000; operation and maintenance costs 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 costs of $30,000; research costs of
$85,000; operation and maintenance costs 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 costs 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 costs have 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 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 is expected to remain at less than one percent
of grower revenue.
Regarding the impact of this action on affected entities, this
action increases 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.
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 are necessary as a result of this action.
Should any changes become necessary, they would be submitted to OMB for
approval.
This rule imposes no additional reporting or recordkeeping
requirements on either small or large California 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. As noted in the
initial regulatory flexibility analysis, USDA has not identified any
relevant Federal rules that duplicate, overlap, or conflict with this
final 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 for citizen access to Government information
and services, and for other purposes.
A proposed rule concerning this action was published in the Federal
Register on September 2, 2015 (80 FR 53022). Copies of the proposed
rule were mailed or sent via facsimile or email to all raisin handlers.
Finally, the proposal was made available through the Internet by USDA
and the office of the Federal Register. A 30-day comment period ending
October 2, 2015, was provided for interested persons to respond to the
proposal. Five comments were received: Four in support of the proposed
rule and one opposed. The commenter in opposition questioned the use of
funds for more committee travel and expressed concern that past trips
have not increased sales. The commenter is also concerned that the
increase would be at the expense of producers. This action increases
the assessment obligation imposed on handlers. While some of these
additional costs may be passed on to producers, the committee, which is
comprised of producers and handlers, unanimously voted to increase the
assessment rate. It is expected that the increase in costs would be
offset by the benefits derived by the industry, as a whole.
Accordingly, no change will be made to the rule as proposed.
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/rules-regulations/moa/small-businesses. Any questions
about the compliance guide should be sent to Jeffrey Smutny at the
previously mentioned address in the FOR FURTHER INFORMATION CONTACT
section.
After consideration of all relevant material presented, including
the information and recommendation submitted by the committee and other
available information, it is hereby found that this rule, as
hereinafter set forth, will tend to effectuate the declared policy of
the Act.
Pursuant to 5 U.S.C. 553, it is also found and determined that good
cause exists for not postponing the effective date of this rule until
30 days after publication in the Federal Register because handlers are
already receiving 2015-16 raisin crop from growers, and the crop year
began on August 1, 2015, and the marketing order requires that the
assessment rate applies to all assessable raisins received during the
2015-16 and subsequent seasons. Further, handlers are aware of this
rule which was recommended at a public meeting. Also, a 30-day comment
period was provided for in the proposed rule.
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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
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: November 20, 2015.
Rex A. Barnes,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2015-30013 Filed 11-24-15; 8:45 am]
BILLING CODE P
