Raisins Produced From Grapes Grown in California; Order Amending Marketing Order No. 989, 53965-53974 [2018-23089]

Download as PDF 53965 Rules and Regulations Federal Register Vol. 83, No. 208 Friday, October 26, 2018 This section of the FEDERAL REGISTER contains regulatory documents having general applicability and legal effect, most of which are keyed to and codified in the Code of Federal Regulations, which is published under 50 titles pursuant to 44 U.S.C. 1510. The Code of Federal Regulations is sold by the Superintendent of Documents. DEPARTMENT OF AGRICULTURE Agricultural Marketing Service 7 CFR Part 989 [Doc. No. AO–FV–16–0016; AMS–SC–16– 0011; SC16–989–1] Raisins Produced From Grapes Grown in California; Order Amending Marketing Order No. 989 Agricultural Marketing Service, USDA. ACTION: Final rule. AGENCY: This final rule amends Marketing Order No. 989 (Order), which regulates the handling of raisins produced from grapes grown in California. Five amendments were proposed by the Raisin Administrative Committee (RAC) and three were proposed by the Agricultural Marketing Service (AMS). Seven of the eight proposed amendments were favored by California raisin growers in a mail referendum, held December 4 through 15, 2017. This final rule also makes administrative revisions to subpart headings to bring the language into conformance with the Office of Federal Register requirements. DATES: This rule is effective November 26, 2018. ADDRESSES: Marketing Order and Agreement Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue SW, Stop 0237, Washington, DC 20250–0237. FOR FURTHER INFORMATION CONTACT: Melissa Schmaedick, Marketing Order and Agreement Division, Specialty Crops Program, AMS, USDA, Post Office Box 952, Moab, UT 84532; Telephone: (202) 557–4783, Fax: (435) 259–1502, or Michelle Sharrow, 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) khammond on DSK30JT082PROD with RULES SUMMARY: VerDate Sep<11>2014 18:06 Oct 25, 2018 Jkt 247001 720–8938, or Email: Melissa.Schmaedick@ams.usda.gov or Michelle.Sharrow@ams.usda.gov. Small businesses may request information on this proceeding by contacting Richard Lower, 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: Richard.Lower@ ams.usda.gov. SUPPLEMENTARY INFORMATION: Prior documents in this proceeding: Notice of Hearing issued on April 14, 2016, and published in the April 22, 2016, issue of the Federal Register (81 FR 23650) and a Recommended Decision issued on May 3, 2017, and published in the May 31, 2017, issue of the Federal Register (82 FR 24882); and a Secretary’s Decision and Referendum Order issued September 19, 2017, and published in the September 29, 2017, issue of the Federal Register (82 FR 45517). This action is governed by the provisions of sections 556 and 557 of title 5 of the United States Code and, therefore, is excluded from the requirements of Executive Orders 12866, 13563, and 13175. Additionally, because this rule does not meet the definition of a significant regulatory action it does not trigger the requirements contained in Executive Order 13771. See the Office of Management and Budget’s (OMB) Memorandum titled ‘‘Interim Guidance Implementing Section 2 of the Executive Order of January 30, 2017 titled ‘Reducing Regulation and Controlling Regulatory Costs’ ’’ (February 2, 2017). Notice of this rulemaking action was provided to tribal governments through the Department of Agriculture’s (USDA) Office of Tribal Relations. Preliminary Statement This action, pursuant to 5 U.S.C. 556 and 557, finalizes amendments to regulations issued to carry out a marketing order as defined in 7 CFR 900.2(j). This rule is issued under Marketing Order No. 989, as amended (7 CFR part 989), regulating the handling of raisins produced from grapes grown in California. Part 989 (referred to as 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.’’ PO 00000 Frm 00001 Fmt 4700 Sfmt 4700 This rule is formulated on the record of a public hearing held on May 3 and 4, 2016, in Clovis, California. The hearing was held pursuant to the provisions of the Act, and the applicable rules of practice and procedure governing the formulation and amendment of marketing agreements and orders (7 CFR part 900). Notice of this hearing was published in the Federal Register on April 22, 2016 (81 FR 23650). The notice of hearing contained five proposals submitted by the RAC and three proposals by AMS. Upon the basis of evidence introduced at the hearing and the record thereof, the Administrator of AMS on May 3, 2017, filed with the Hearing Clerk, USDA, a Recommended Decision and Opportunity to File Written Exceptions thereto by June 30, 2017. One exception was filed. The exception filed opposed the proposed amendment to establish term limits. A Secretary’s Decision and Referendum Order was issued on September 29, 2017, directing that a referendum be conducted during the period of December 4 through 17, 2017, among eligible California raisin growers to determine whether they favored the proposed amendments to the Order. To become effective, the amendments had to be approved by at least two-thirds of those growers voting, or by voters representing at least two-thirds of the volume of raisins represented by voters voting in the referendum. The approved amendments were favored by over ninety percent of the growers voting in the referendum, representing over ninety percent of the total volume of raisins produced by those voting. The failed amendment was opposed by ninety-three percent of those voting and ninety-five percent of the represented volume. The amendments favored by voters and included in this final order will: Authorize production research; establish new nomination procedures for independent grower member and alternate member seats; add authority to regulate quality; add authority to establish different regulations for different market destinations; add a continuance referenda requirement; and remove volume regulation and reserve pool authority from the Order. USDA also made changes as were necessary to conform the Order provisions to the effectuated E:\FR\FM\26OCR1.SGM 26OCR1 53966 Federal Register / Vol. 83, No. 208 / Friday, October 26, 2018 / Rules and Regulations khammond on DSK30JT082PROD with RULES amendments. Conforming changes and corrections proposed by USDA include: Revising all references of ‘‘offgrade’’ to ‘‘off-grade’’; revising all references of ‘‘nonnormal’’ to ‘‘non-normal’’; and, revising all references of ‘‘committee’’ to ‘‘Committee.’’ These corrections will result in consistent spelling of these terms throughout the Order. Also in this final rule, USDA will revise the amendment of § 989.58(d) from ‘‘interplant’’ and ‘‘interhandler’’ to ‘‘inter-plant’’ and ‘‘inter-handler’’ as it appears in amended § 989.59(e). In addition, the words ‘‘Processed Products Standardization and Inspection Branch’’ in §§ 989.58(d) and 989.59(d) will be changed to ‘‘Specialty Crops Inspection Division.’’ Similarly, ‘‘Processed Products Branch, Fruit and Vegetable Division’’ in § 989.102 will be changed to ‘‘Specialty Crops Inspection Division.’’ These corrections will reflect the official name change of the AMS’s inspection service office for fruit, vegetables and specialty crops. Lastly, an additional correction will change the amendatory language in §§ 989.55, 989.56, 989.65, 989.66, 989.67, 989.71, 989.72, 989.82, 989.154, 989.156, 989.166, 989.167, 989.221, 989.257 and 989.401, from ‘‘remove’’ to ‘‘remove and reserve.’’ This change will prevent the unintentional renumbering of remaining sections of the Order. The amended marketing agreement was subsequently mailed to all raisin handlers in the production area for their approval. The marketing agreement was approved by handlers representing more than 50 percent of the volume of raisins handled by all handlers during the August 1, 2016, through July 31, 2017, representative period. Consequently, a companion handler agreement will also be established. Small Business Consideration Pursuant to the requirements set forth in the Regulatory Flexibility Act (RFA), AMS has considered the economic impact of this action 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 so that small businesses will not be unduly or disproportionately burdened. Marketing orders and amendments thereto are unique in that they are normally brought about through group action of essentially small entities for their own benefit. According to the hearing transcript, there are approximately 3,000 raisin producers in California. According to National Agricultural Statistics Service data presented at the hearing, the total VerDate Sep<11>2014 18:06 Oct 25, 2018 Jkt 247001 value of production of raisins in the 2014/15 crop year is $598,052,000. Taking the total value of production for raisins and dividing it by the total number of raisin producers provides an average return per producer of $199,950.67. A small producer as defined by the Small Business Administration (SBA) (13 CFR 121.201) is one that grosses less than $750,000 annually. Therefore, a majority of raisin producers are considered small entities under SBA’s standards. According to the industry, there were 23 raisin handlers for the 2015/16 crop year. While individual handling operation information is proprietary, both testimonies offered by handler witnesses and an assessment of total value of dried production leads USDA to conclude that 13 handlers would be considered small entities under SBA’s standards. According to the record, two of the 23 handlers handled roughly 60 percent of total production during the 2015/16 crop year. A calculation using the 2014 total value of production of $598,052,000 puts the value handled by the cooperatives at $358,831,200 ($598,052,000 × 60 percent) and the value handled by all other handlers at $239,220,800. With 21 non-cooperative handlers remaining, $239,220,800 divided by that number results in an average handler receipt of $11,391,467. Assuming a normal bell-curve distribution, coupled with the number of handlers self-identifying at the hearing as small business entities, USDA accepts the Committee’s assertion that 13 handlers fall under the SBA definition of small agricultural service firm. A small agricultural service firm as defined by the SBA is one that grosses less than $7,500,000 annually. Thus, slightly more than half of the industry’s handlers are considered small entities under SBA’s standards. The production area regulated under the Order covers the state of California. Acreage devoted to raisin production in the regulated area has declined in recent years. According to data presented at the hearing, bearing acreage for raisins reached a high of 280,000 acres during the 2000/01 crop year. Since then, bearing acreage for raisins has decreased 32 percent to 190,000 acres in 2014/15. As a result, the total production of raisins reached a high during the 2000/ 01 crop year of 484,500 tons (dried basis). Since the 2000/01 crop year, total production for raisins has decreased 32 percent to 328,600 tons in 2014/15. During the hearing held May 3 and 4, 2016, interested persons were invited to present evidence on the probable regulatory and information collection PO 00000 Frm 00002 Fmt 4700 Sfmt 4700 impact of the proposed amendments to the Order on small businesses. The evidence presented at the hearing shows that none of the proposed amendments would have any burdensome effects or a significant economic impact on a substantial number of small agricultural producers or firms. Material Issues Material Issue Number 1—Authorize Production Research This action amends § 989.53 to authorize production research. Currently, the California Raisin Marketing Board (CRMB) is the funding source for production research for the California raisin industry. Three years ago, payments of assessments to the CRMB were suspended due to the results of litigation. Without funding, the CRMB has been unable to conduct any new production research projects. The amendment to § 989.53 will authorize the RAC to conduct production research without having to rely on the CRMB for funding. Witnesses stated that future research could potentially impact producers in many ways, such as reducing pesticide usage or the development of new varieties that are less labor intensive. Production research will provide the raisin industry the ability to meet the needs of the ever changing domestic and international markets. According to a witness’s testimony, the benefits of the proposed amendment will outweigh any costs and will not have a significant impact on a substantial number of small entities. Material Issue Number 2—Authorize Separate Nominations for Independent Producer Member and Independent Producer Alternate Member Seats This action amends §§ 989.29 and 989.129 to authorize separate nominations for independent producer members and independent producer alternate member seats. Currently, the RAC has difficulty filling Committee seats designated for independent producer members and independent producer alternate members. Independent producer alternate member seats have gone unfilled for several consecutive years. According to witnesses’ testimony, this amendment will increase the participation of independent producers willing to participate on the RAC. Allowing for separate nominations for members and alternates will encourage participation by those who wish to serve in one capacity and not the other. Full participation would give the independent producers full E:\FR\FM\26OCR1.SGM 26OCR1 khammond on DSK30JT082PROD with RULES Federal Register / Vol. 83, No. 208 / Friday, October 26, 2018 / Rules and Regulations representation on the Board they represented and a voice in RAC decisions. It is determined that the benefits of increased RAC participation by independent producers will outweigh any costs associated with the implementation of this amendment. It is determined that any additional costs incurred for this amendment will be outweighed by the increased flexibility for the industry to respond to a changing global marketplace. The costs of implementing this amendment will not have a significant impact on a substantial number of small entities. Material Issue Number 3—Add Authority To Regulate Quality This action will amend §§ 989.58, 989.59 and 989.61 to add authority to regulate quality under the Order. A corresponding change will also revise the heading prior to § 989.58 to include quality. Currently, §§ 989.58 and 989.59 state that the RAC has the authority to recommend grade and condition standards under the Order. The attribute ‘‘quality’’ is not specifically mentioned. The amendment will add language to include ‘‘quality’’ as an attribute that can be regulated under the Order. According to a witness at the hearing, the amendment will give the RAC flexibility to ensure consumer safety by setting quality standards for residue levels for herbicides, pesticides or fungicides. The quality standards will be equally applied to all handlers of raisins within the U.S.; some handlers are already testing for certain types of fungicides so the increased costs will be minimal. It is determined that the additional costs incurred to regulate quality will be greatly outweighed by the increased flexibility for the industry, increased consumer safety, and other benefits gained from implementing this amendment. The costs of implementing it will not have a significant impact on a substantial number of small entities. Material Issue Number 5—Continuance Referenda This action will amend § 989.91 to require continuance referenda. The amendment will require the USDA to conduct a continuance referendum between year five and year six after implementation for the first referendum, and every six years thereafter. A witness testified that a continuance referendum is the best tool for assuring that the Order remains responsive to the needs of the industry. While a continuance referendum will not directly improve producer returns, it will indirectly ensure that the industry believes that the Order is operating in the producer’s best interest. For these reasons, it is determined that the benefits of conducting a continuance referendum will outweigh the potential costs of implementing this amendment. The costs of implementing this amendment will be minimal and will not have a significant impact on a substantial number of small entities. Material Issue Number 4—Add Authority To Establish Different Regulations for Different Markets This action will amend § 989.59 to add authority to establish different regulations for different markets. The Order does not currently allow for different quality or grade standards to be applied to different foreign markets. The language in the Order only has two classifications for grade and condition standards, Grade A or Grade B. The current grade and condition standards are consistent across all markets. This amendment will give the RAC the authority to develop requirements for raisins intended for export to different foreign markets. Industry will have the flexibility to tailor product attributes to meet the foreign consumer profile and the customer demands for each individual market. VerDate Sep<11>2014 18:06 Oct 25, 2018 Jkt 247001 Material Issue Number 6—Remove Volume Regulations and Reserve Pool Authority This action will amend the Order to remove volume regulation and reserve pool authority. This will include: deleting and reserving §§ 989.55 and 989.56, §§ 989.65 through 989.67, §§ 989.71, 989.72, 989.82, 989.154, 989.156, 989.166, 989.167, 989.221, 989.257, and 989.401; revising §§ 989.11, 989.53, 989.54, 989.58, 989.59, 989.60, 989.73, 989.79, 989.80, 989.84, 989.158, 989.173, and 989.210; and re-designating § 989.70 as § 989.96. Corresponding changes will also remove the following headings: ‘‘Volume Regulation’’ prior to § 989.65; ‘‘Volume Regulation’’ prior to § 989.166; and, ‘‘Subpart-Schedule of Payments’’ prior to § 989.401. The amendment will remove all authority for the RAC to recommend volume restrictions and a reserve pool. On June 22, 2015, the United States Supreme Court, in Horne v. USDA, ruled that the application of the Order’s reserve pool authority to the Horne’s was a taking under the Fifth Amendment to the U.S. Constitution. In a July 16, 2015, letter to the RAC, USDA stated, ‘‘In light of the Horne decision, the U.S. Department of Agriculture has PO 00000 Frm 00003 Fmt 4700 Sfmt 4700 53967 decided not to authorize the reserve program of the Federal marketing order for California raisins for the foreseeable future, effective immediately.’’ One witness at the hearing explained that bearing acres have declined the past ten years, which supports the theory that the California raisin industry is adjusting to a decreasing or flat demand for the product. The witness stated that, in the future, supply will likely remain in better balance with demand and, therefore, the reserve pool and volume regulation are no longer as relevant as they were in higher production times. To further the point, the witness stated that the Order’s reserve pool authority has not been utilized since 2010. The amendment will be a relaxation of regulatory requirements. For this reason, it is determined that no significant impact on small business entities is anticipated from this change. The costs attributed to these amendments are minimal; therefore, there will not be a significant impact on a substantial number of small entities. USDA has not identified any relevant Federal rules that duplicate, overlap or conflict with this rule. These amendments are intended to improve the operation and administration of the Order and to assist in the marketing of California raisins. RAC meetings regarding these amendments, as well as the hearing date and location, were widely publicized throughout the California raisin industry, and all interested persons were invited to attend the meetings and the hearing to participate in RAC deliberations on all issues. All RAC meetings and the hearing were public forums, and all entities, both large and small, were able to express views on these issues. Finally, interested persons were invited to submit information on the regulatory and information collection impacts of this action on small businesses. Paperwork Reduction Act Current information collection requirements for Part 989 are approved by OMB, under OMB Number 0581– 0189—‘‘Generic OMB Fruit Crops.’’ No changes are anticipated in these requirements as a result of this proceeding. Should any such changes become necessary, they will be submitted to OMB for approval. As with all Federal marketing order programs, reports and forms are periodically reviewed to reduce information requirements and duplication by industry and publicsector agencies. AMS is committed to complying with the Government Paperwork Elimination E:\FR\FM\26OCR1.SGM 26OCR1 53968 Federal Register / Vol. 83, No. 208 / Friday, October 26, 2018 / Rules and Regulations Act, which requires Government agencies in general to provide the public the option of submitting information or transacting business electronically to the maximum extent possible. 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. Civil Justice Reform The amendments to the Order stated herein have been reviewed under Executive Order 12988, Civil Justice Reform. They are not intended to have retroactive effect. The amendments do not preempt any State or local laws, regulations, or policies, unless they present an irreconcilable conflict with this rule. 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. A handler is afforded the opportunity for a hearing on the petition. After the hearing, USDA would rule on the petition. The Act provides that the district court of the United States in any district in which the handler is an inhabitant, or has his or her principal place of business, has jurisdiction to review USDA’s ruling on the petition, provided an action is filed no later than 20 days after the date of entry of the ruling. khammond on DSK30JT082PROD with RULES Order Amending the Order Regulating the Handling of Raisins Produced From Grapes Grown in California 1 Findings and Determinations The findings and determinations hereinafter set forth are supplementary to the findings and determinations that were previously made in connection with the issuance of the Marketing Order; and all said previous findings and determinations are hereby ratified and affirmed, except insofar as such findings and determinations may be in conflict with the findings and determinations set forth herein. (a) Findings and Determinations Upon the Basis of the Hearing Record 1 This order shall not become effective unless and until the requirements of § 900.14 of the rules of practice and procedure governing proceedings to formulate marketing agreements and marketing orders have been met. VerDate Sep<11>2014 18:06 Oct 25, 2018 Jkt 247001 Pursuant to the provisions of the Agricultural Marketing Agreement Act of 1937, as amended (7 U.S.C. 601–674), and the applicable rules of practice and procedure effective thereunder (7 CFR part 900), a public hearing was held upon further amendment of Marketing Order No. 989, regulating the handling of raisins produced from grapes grown in California. Upon the basis of the record, it is found that: (1) The Order, as amended, and as hereby further amended, and all of the terms and conditions thereof, would tend to effectuate the declared policy of the Act; (2) The Order, as amended, and as hereby further amended, regulates the handling of raisins produced from grapes grown in the production area in the same manner as, and are applicable only to, persons in the respective classes of commercial and industrial activity specified in the Order upon which a hearing has been held; (3) The Order, as amended, and as hereby further amended, is limited in its application to the smallest regional production area that is practicable, consistent with carrying out the declared policy of the Act, and the issuance of several orders applicable to subdivisions of the production area would not effectively carry out the declared policy of the Act; (4) The Order, as amended, and as hereby further amended, prescribes, insofar as practicable, such different terms applicable to different parts of the production area as are necessary to give due recognition to the differences in the production and marketing of raisins produced from grapes grown in California; and (5) All handling of raisins produced from grapes grown in the production area as defined in the Order is in the current of interstate or foreign commerce or directly burdens, obstructs, or affects such commerce. (b) Determinations. It is hereby determined that: (1) Handlers (excluding cooperative associations of growers who are not engaged in processing, distributing, or shipping raisins covered by the Order as hereby amended) who, during the period August 1, 2016, through July 31, 2017, handled 50 percent or more of the volume of such raisins covered by said Order, as hereby amended, have signed an amended marketing agreement; (2) The issuance of this amendatory Order, further amending the aforesaid Order, was favored or approved by at least two-thirds of the growers who participated in a referendum on the question of approval and who, during PO 00000 Frm 00004 Fmt 4700 Sfmt 4700 the period of August 1, 2016, through July 31, 2017 (which has been deemed to be a representative period), have been engaged within the production area in the production of such raisins, such growers having also produced for market at least two-thirds of the volume of such commodity represented in the referendum; and (3) The issuance of this amendatory Order advances the interests of producers of raisins in the production area pursuant to the declared policy of the Act. Order Relative to Handling It is therefore ordered, that on and after the effective date hereof, all handling of raisins produced from grapes grown in California shall be in conformity to, and in compliance with, the terms and conditions of the said Order as hereby amended as follows: The provisions of the amendments to the Order contained in the Secretary’s Decision issued September 19, 2017, and published in the September 29, 2017, issue of the Federal Register (82 FR 45517), with the exception of the proposal to establish term limits, will be and are the terms and provisions of this Order amending the Order and are set forth in full herein. List of Subjects in 7 CFR Part 989 Raisins, Marketing agreements, Reporting and recordkeeping requirements. For the reasons set out in the preamble, 7 CFR part 989 is amended as follows: PART 989—RAISINS PRODUCED FROM GRAPES GROWN IN CALIFORNIA 1. The authority citation for part 989 continues to read as follows: ■ Authority: 7 U.S.C. 601–674. Subpart Redesignated as Subpart A 2. Designate the subpart labeled ‘‘Order Regulating Handling’’ as subpart A. ■ 3. Section 989.11 is revised to read as follows: ■ § 989.11 Producer. Producer means any person engaged in a proprietary capacity in the production of grapes which are sundried or dehydrated by artificial means until they become raisins. ■ 4. In § 989.29: ■ a. Revise paragraph (b)(2)(ii); ■ b. Redesignate paragraph (b)(2)(iii) as paragraph (b)(2)(iv); ■ c. Add new paragraph (b)(2)(iii); and E:\FR\FM\26OCR1.SGM 26OCR1 Federal Register / Vol. 83, No. 208 / Friday, October 26, 2018 / Rules and Regulations d. Revise newly redesignated paragraph (b)(2)(iv). The revisions and addition read as follows: ■ § 989.29 Initial members and nomination of successor members. khammond on DSK30JT082PROD with RULES * * * * * (b) * * * (2) * * * (ii) Each such producer whose name is offered in nomination for producer member positions to represent on the Committee independent producers or producers who are affiliated with cooperative marketing association(s) handling less than 10 percent of the total raisin acquisitions during the preceding crop year shall be given the opportunity to provide the Committee a short statement outlining qualifications and desire to serve if selected. Similarly, each such producer whose name is offered in nomination for producer alternate member positions to represent on the Committee independent producers or producers who are affiliated with cooperative marketing association(s) handling less than 10 percent of the total raisin acquisitions during the preceding crop year shall be given the opportunity to provide the Committee a short statement outlining qualifications and desire to serve if selected. These brief statements, together with a ballot and voting instructions, shall be mailed to all independent producers and producers who are affiliated with cooperative marketing associations handling less than 10 percent of the total raisin acquisitions during the preceding crop year of record with the Committee in each district. The producer member candidate receiving the highest number of votes shall be designated as the first member nominee, the second highest shall be designated as the second member nominee until nominees for all producer member positions have been filled. Similarly, the producer alternate member candidate receiving the highest number of votes shall be designated as the first alternate member nominee, the second highest shall be designated as the second alternate member nominee until nominees for all member positions have been filled. (iii) In the event that there are more producer member nominees than positions to be filled and not enough producer alternate member nominees to fill all positions, producer member nominees not nominated for a member seat may be nominated to fill vacant alternate member seats. Member seat nominees shall indicate, prior to the nomination vote, whether they are willing to accept nomination for an VerDate Sep<11>2014 18:06 Oct 25, 2018 Jkt 247001 alternate seat in the event they are not nominated for a member seat and there are vacant alternate member seats. Member seat nominees that do not indicate willingness to be considered for vacant alternate member seats shall not be considered. (iv) Each independent producer or producer affiliated with cooperative marketing association(s) handling less than 10 percent of the total raisin acquisitions during the preceding crop year shall cast only one vote with respect to each position for which nominations are to be made. Write-in candidates shall be accepted. The person receiving the most votes with respect to each position to be filled, in accordance with paragraph (b)(2)(ii) and (iii) of this section, shall be the person to be certified to the Secretary as the nominee. The Committee may, subject to the approval of the Secretary, establish rules and regulations to effectuate this section. * * * * * ■ 5. In § 989.53, revise the introductory text of paragraph (a), and remove the undesignated paragraph that follows paragraph (a)(5) to read as follows: § 989.53 Research and development. (a) General. The Committee, with the approval of the Secretary, may establish or provide for the establishment of projects involving production research, market research and development, marketing promotion including paid advertising, designed to assist, improve, or promote the production, marketing, distribution, and consumption of raisins in domestic and foreign markets. These projects may include, but need not be limited to those designed to: * * * * * ■ 6. In § 989.54: ■ a. Remove paragraphs (a) through (d) and (g); ■ b. Remove paragraph (e)(4); ■ c. Redesignate paragraphs (e)(5) through (e)(10) as (e)(4) through (e)(9), respectively; ■ d. Redesignate paragraphs (e), (f), and (h) as paragraphs (a), (b), and (c), respectively; and ■ e. Revise newly redesignated paragraphs (a) introductory text, (a)(1), (a)(4), (a)(5) and (c). The revisions read as follows: § 989.54 Marketing policy. (a) Marketing policy. Each crop year, the Committee shall prepare and submit to the Secretary a report setting forth its recommended marketing policy, including quality regulations for the pending crop. In developing the marketing policy, the Committee may PO 00000 Frm 00005 Fmt 4700 Sfmt 4700 53969 give consideration to the production, harvesting, processing, and storage conditions of that crop, as well as the following factors: (1) The estimated tonnage held by producers and handlers at the beginning of the crop year; * * * * * (4) An estimated desirable carryout at the end of the crop year; (5) The estimated market demand for raisins, considering the estimated world raisin supply and demand situation; * * * * * (c) Publicity. The Committee shall promptly give reasonable publicity to producers, dehydrators, handlers, and the cooperative bargaining association(s) of each meeting to consider a marketing policy or any modification thereof, and each such meeting shall be open to them. Similar publicity shall be given to producers, dehydrators, handlers, and the cooperative bargaining association(s) of each marketing policy report or modification thereof, filed with the Secretary and of the Secretary’s action thereon. Copies of all marketing policy reports shall be maintained in the office of the Committee, where they shall be made available for examination by any producer, dehydrator, handler, or cooperative bargaining association representative. The Committee shall notify handlers, dehydrators and the cooperative bargaining association(s), and give reasonable publicity to producers of its computation. §§ 989.55 and 989.56 reserved] [Removed and 7. Sections 989.55 and 989.56 are removed and reserved. ■ 8. Revise the undesignated heading prior to § 989.58 to read as follows: ‘‘Grade, Quality, and Condition Standards’’. ■ 9. In § 989.58, revise paragraphs (a), (b), (d)(1), (e)(1), and (e)(4) to read as follows: ■ § 989.58 Natural condition raisins. (a) Regulation. No handler shall acquire or receive natural condition raisins which fail to meet such minimum grade, quality, and condition standards as the Committee may establish, with the approval of the Secretary, in applicable rules and regulations: Provided, That a handler may receive raisins for inspection, may receive off-grade raisins for reconditioning and may receive or acquire off-grade raisins for use in eligible non-normal outlets: And provided further, That a handler may acquire natural condition raisins which E:\FR\FM\26OCR1.SGM 26OCR1 khammond on DSK30JT082PROD with RULES 53970 Federal Register / Vol. 83, No. 208 / Friday, October 26, 2018 / Rules and Regulations exceed the tolerance established for maturity under a weight dockage system established pursuant to rules and regulations recommended by the Committee and approved by the Secretary. Nothing contained in this paragraph shall apply to the acquisition or receipt of natural condition raisins of a particular varietal type for which minimum grade, quality, and condition standards are not applicable or then in effect pursuant to this part. (b) Changes in minimum grade, quality, and condition standards for natural condition raisins. The Committee may recommend to the Secretary changes in the minimum grade, quality, and condition standards for natural condition raisins of any varietal type and may recommend to the Secretary that minimum grade, quality, and condition standards for any varietal type be added to or deleted. The Committee shall submit with its recommendation all data and information upon which it acted in making its recommendation, and such other information as the Secretary may request. The Secretary shall approve any such change if he finds, upon the basis of data submitted to him by the Committee or from other pertinent information available to him, that to do so would tend to effectuate the declared policy of the Act. * * * * * (d) * * * (1) Each handler shall cause an inspection and certification to be made of all natural condition raisins acquired or received by him, except with respect to: (i) An inter-plant or inter-handler transfer of off-grade raisins as described in paragraph (e)(2) of this section, unless such inspection and certification are required by rules and procedures made effective pursuant to this amended subpart; (ii) An inter-plant or inter-handler transfer of standard raisins as described in § 989.59(e); (iii) Raisins received from a dehydrator which have been previously inspected pursuant to paragraph (d)(2) of this section; (iv) Any raisins for which minimum grade, quality, and condition standards are not then in effect; (v) Raisins received from a cooperative bargaining association which have been inspected and are in compliance with requirements established pursuant to paragraph (d)(3) of this section; and (vi) Any raisins, if permitted in accordance with such rules and procedures as the Committee may VerDate Sep<11>2014 18:06 Oct 25, 2018 Jkt 247001 establish with the approval of the Secretary, acquired or received for disposition in eligible non-normal outlets. Except as otherwise provided in this section, prior to blending raisins, acquiring raisins, storing raisins, reconditioning raisins, or acquiring raisins which have been reconditioned, each handler shall obtain an inspection certification showing whether or not the raisins meet the applicable grade, quality, and condition standards: Provided, That the initial inspection for infestation shall not be required if the raisins are fumigated in accordance with such rules and procedures as the Committee shall establish with the approval of the Secretary. The handler shall submit or cause to be submitted to the Committee a copy of such certification, together with such other documents or records as the Committee may require. Such certification shall be issued by inspectors of the Processed Products Standardization and Inspection Branch of the U.S. Department of Agriculture, unless the Committee determines, and the Secretary concurs in such determination, that inspection by another agency would improve the administration of this amended subpart. The Committee may require that raisins held on memorandum receipt be reinspected and certified as a condition for their acquisition by a handler. * * * * * (e) * * * (1) Any natural condition raisins tendered to a handler which fail to meet the applicable minimum grade, quality, and condition standards may: (i) Be received or acquired by the handler for disposition, without further inspection, in eligible non-normal outlets; (ii) Be returned unstemmed to the person tendering the raisins; or (iii) Be received by the handler for reconditioning. Off-grade raisins received by a handler under any one of the three described categories may be changed to any other of the categories under such rules and procedures as the Committee, with the approval of the Secretary, shall establish. No handler shall ship or otherwise dispose of offgrade raisins which he does not return to the tenderer, transfer to another handler as provided in paragraph (e)(2) of this section, or recondition so that they at least meet the minimum standards prescribed in or pursuant to this amended subpart, except into eligible non-normal outlets. * * * * * (4) If the handler is to acquire the raisins after they are reconditioned, his PO 00000 Frm 00006 Fmt 4700 Sfmt 4700 obligation with respect to such raisins shall be based on the weight of the raisins (if stemmed, adjusted to natural condition weight) after they have been reconditioned. * * * * * ■ 10. In § 989.59, revise paragraphs (a), (b), (d), (e), and (g) to read as follows: § 989.59 Regulation of the handling of raisins subsequent to their acquisition by handlers. (a) Regulation. Unless otherwise provided in this part, no handler shall: (1) Ship or otherwise make final disposition of natural condition raisins unless they at least meet the effective and applicable minimum grade, quality, and condition standards for natural condition raisins; or (2) Ship or otherwise make final disposition of packed raisins unless they at least meet such minimum grade quality, and condition standards established by the Committee, with the approval of the Secretary, in applicable rules and regulations or as later changed or prescribed pursuant to the provisions of paragraph (b) of this section: Provided, That nothing contained in this paragraph shall prohibit the shipment or final disposition of any raisins of a particular varietal type for which minimum standards are not applicable or then in effect pursuant to this part. And provided further, That a handler may grind raisins, which do not meet the minimum grade, quality, and condition standards for packed raisins because of mechanical damage or sugaring, into a raisin paste. The Committee may establish, with approval of the Secretary, different grade, quality, and condition regulations for different markets. (b) Changes to minimum grade, quality, or condition standards. The Committee may recommend changes in the minimum grade, quality, or condition standards for packed raisins of any varietal type and may recommend to the Secretary that minimum grade, quality, or condition standards for any varietal type be added or deleted. The Committee shall submit with its recommendation all data and information upon which it acted in making its recommendation, and such other information as the Secretary may request. The Secretary shall approve any such change if he finds, upon the basis of data submitted to him by the Committee or from other pertinent information available to him, that to do so would tend to effectuate the declared policy of the Act. * * * * * (d) Inspection and certification. Unless otherwise provided in this E:\FR\FM\26OCR1.SGM 26OCR1 khammond on DSK30JT082PROD with RULES Federal Register / Vol. 83, No. 208 / Friday, October 26, 2018 / Rules and Regulations section, each handler shall, at his own expense, before shipping or otherwise making final disposition of raisins, cause an inspection to be made of such raisins to determine whether they meet the then applicable minimum grade, quality, and condition standards for natural condition raisins or the then applicable minimum standards for packed raisins. Such handler shall obtain a certificate that such raisins meet the aforementioned applicable minimum standards and shall submit or cause to be submitted to the Committee a copy of such certificate together with such other documents or records as the Committee may require. The certificate shall be issued by the Processed Products Standardization and Inspection Branch of the United States Department of Agriculture, unless the Committee determines, and the Secretary concurs in such determination, that inspection by another agency will improve the administration of this amended subpart. Any certificate issued pursuant to this paragraph shall be valid only for such period of time as the Committee may specify, with the approval of the Secretary, in appropriate rules and regulations. (e) Inter-plant and inter-handler transfers. Any handler may transfer from his plant to his own or another handler’s plant within the State of California any raisins without having had such raisins inspected as provided in paragraph (d) of this section. The transferring handler shall transmit promptly to the Committee a report of such transfer, except that transfers between plants owned or operated by the same handler need not be reported. Before shipping or otherwise making final disposition of such raisins, the receiving handler shall comply with the requirements of this section. * * * * * (g) Exemption of experimental and specialty packs. The Committee may establish, with the approval of the Secretary, rules and procedures providing for the exemption of raisins in experimental and specialty packs from one or more of the requirements of the minimum grade, quality, or condition standards of this section, together with the inspection and certification requirements if applicable. ■ 11. Amend § 989.60 by revising paragraph (a) to read as follows: § 989.60 Exemption. (a) Notwithstanding any other provisions of this amended subpart, the Committee may establish, with the approval of the Secretary, such rules VerDate Sep<11>2014 18:06 Oct 25, 2018 Jkt 247001 and procedures as may be necessary to permit the acquisition and disposition of any off-grade raisins, free from any or all regulations, for uses in non-normal outlets. * * * * * ■ 12. Section 989.61 is revised to read as follows: § 989.61 Above parity situations. The provisions of this part relating to minimum grade, quality, and condition standards and inspection requirements, within the meaning of section 2(3) of the Act, and any other provisions pertaining to the administration and enforcement of the Order, shall continue in effect irrespective of whether the estimated season average price to producers for raisins is in excess of the parity level specified in section 2(1) of the Act. ■ 13. Remove the undesignated heading ‘‘Volume Regulation’’ prior to § 989.65. §§ 989.65, 989.66, and 989.67 and reserved] [Removed 14. Sections 989.65, 989.66, and 989.67 are removed and reserved. ■ § 989.70 ■ [Redesignated as § 989.96] 15. Redesignate § 989.70 as § 989.96. §§ 989.71 and 989.72 reserved] [Removed and 16. Sections 989.71 and 989.72 are removed and reserved. ■ 17. Amend § 989.73 by revising paragraph (b) to read as follows: ■ § 989.73 Reports. * * * * * (b) Acquisition reports. Each handler shall submit to the Committee in accordance with such rules and procedures as are prescribed by the Committee, with the approval of the Secretary, certified reports, for such periods as the Committee may require, with respect to his acquisitions of each varietal type of raisins during the particular period covered by such report, which report shall include, but not be limited to: (1) The total quantity of standard raisins acquired; (2) The total quantity of off-grade raisins acquired pursuant to § 989.58(e)(1)(i); and (3) Cumulative totals of such acquisitions from the beginning of the then current crop year to and including the end of the period for which the report is made. Upon written application made to the Committee, a handler may be relieved of submitting such reports after completing his packing operations for the season. Upon request of the Committee, each handler PO 00000 Frm 00007 Fmt 4700 Sfmt 4700 53971 shall furnish to the Committee, in such manner and at such times as it may require, the name and address of each person from whom he acquired raisins and the quantity of each varietal type of raisins acquired from each such person. * * * * * ■ 18. Section 989.79 is revised to read as follows: § 989.79 Expenses. The Committee is authorized to incur such expenses as the Secretary finds are reasonable and likely to be incurred by it during each crop year, for the maintenance and functioning of the Committee and for such purposes as he may, pursuant to this subpart, determine to be appropriate. The funds to cover such expenses shall be obtained levying assessments as provided in § 989.80. The Committee shall file with the Secretary for each crop year a proposed budget of these expenses and a proposal as to the assessment rate to be fixed pursuant to § 989.80, together with a report thereon. Such filing shall be not later than October 5 of the crop year, but this date may be extended by the Committee not more than 5 days if warranted by a late crop. ■ 19. In § 989.80, revise paragraphs (a) through (c) to read as follows: § 989.80 Assessments. (a) Each handler shall pay to the Committee, upon demand, his pro rata share of the expenses which the Secretary finds will be incurred, as aforesaid, by the Committee during each crop year less any amounts credited pursuant to § 989.53. Such handler’s pro rata share of such expenses shall be equal to the ratio between the total raisin tonnage acquired by such handler during the applicable crop year and the total raisin tonnage acquired by all handlers during the same crop year. (b) Each handler who reconditions off-grade raisins but does not acquire the standard raisins recovered therefrom shall, with respect to his assessable portion of all such standard raisins, pay to the Committee, upon demand, his pro rata share of the expenses which the Secretary finds will be incurred by the Committee each crop year. Such handler’s pro rata share of such expenses shall be equal to the ratio between the handler’s assessable portion (which shall be a quantity equal to such handler’s standard raisins which are acquired by some other handler or handlers) during the applicable crop year and the total raisin tonnage acquired by all handlers. (c) The Secretary shall fix the rate of assessment to be paid by all handlers on E:\FR\FM\26OCR1.SGM 26OCR1 53972 Federal Register / Vol. 83, No. 208 / Friday, October 26, 2018 / Rules and Regulations the basis of a specified rate per ton. At any time during or after a crop year, the Secretary may increase the rate of assessment to obtain sufficient funds to cover any later finding by the Secretary relative to the expenses of the Committee. Each handler shall pay such additional assessment to the Committee upon demand. In order to provide funds to carry out the functions of the Committee, the Committee may accept advance payments from any handler to be credited toward such assessments as may be levied pursuant to this section against such handler during the crop year. The payment of assessments for the maintenance and functioning of the Committee, and for such purposes as the Secretary may pursuant to this subpart determine to be appropriate, may be required under this part throughout the period it is in effect, irrespective of whether particular provisions thereof are suspended or become inoperative. * * * * * § 989.82 [Removed and reserved] 20. Section 989.82 is removed and reserved. ■ 21. Section 989.84 is revised to read as follows: ■ § 989.84 Disposition limitation. No handler shall dispose of standard raisins, off-grade raisins, or other failing raisins, except in accordance with the provisions of this subpart or pursuant to regulations issued by the committee. ■ 22. In § 989.91: ■ a. Redesignate paragraphs (c) and (d) as paragraphs (d) and (e), respectively; and ■ b. Add new paragraph (c). The addition reads as follows: § 989.91 Suspension or termination. khammond on DSK30JT082PROD with RULES * * * * * (c) No less than five crop years and no later than six crop years after the effective date of this amendment, the Secretary shall conduct a referendum to ascertain whether continuance of this part is favored by producers. Subsequent referenda to ascertain continuance shall be conducted every six crop years thereafter. The Secretary may terminate the provisions of this part at the end of any crop year in which the Secretary has found that continuance of this part is not favored by a two-thirds majority of voting producers, or a two-thirds majority of volume represented thereby, who, during a representative period determined by the Secretary, have been engaged in the production for market of grapes used in the production of raisins in the State of California. Such VerDate Sep<11>2014 18:06 Oct 25, 2018 Jkt 247001 termination shall be announced on or before the end of the crop year. * * * * * Subpart Redesignated as Subpart B and Amended 23. Redesignate ‘‘SubpartAdministrative Rules and Regulations’’ as subpart B and revise the heading to read as follows: ■ Subpart B—Administrative Requirements Voting at nomination meetings. Any person (defined in § 989.3 as an individual, partnership, corporation, association, or any other business unit) who is engaged, in a proprietary capacity, in the production of grapes which are sun-dried or dehydrated by artificial means to produce raisins and who qualifies under the provisions of § 989.29(b)(2) shall be eligible to cast one ballot for a nominee for each producer member position and one ballot for a nominee for each producer alternate member position on the committee which is to be filled for his district. Such person must be the one who or which: Owns and farms land resulting in his or its ownership of such grapes produced thereon; rents and farms land, resulting in his or its ownership of all or a portion of such grapes produced thereon; or owns land which he or it does not farm and, as rental for such land, obtains the ownership of a portion of such grapes or the raisins. In this connection, a partnership shall be deemed to include two or more persons (including a husband and wife) with respect to land the title to which, or leasehold interest in which, is vested in them as tenants in common, joint tenants, or under community property laws, as community property. In a landlordtenant relationship, wherein each of the parties is a producer, each such producer shall be entitled to one vote for a nominee for each producer member position and one vote for each producer alternate member position. Hence, where two persons operate land as landlord and tenant on a share-crop basis, each person is entitled to one vote for each such position to be filled. Where land is leased on a cash rental basis, only the person who is the tenant or cash renter (producer) is entitled to vote. A partnership or corporation, when eligible, is entitled to cast only one vote for a nominee for each Frm 00008 Fmt 4700 Sfmt 4700 §§ 989.154 and 989.156 reserved] [Removed and 26. Sections 989.154 and 989.156 are removed and reserved. ■ 27. Section 989.158(c)(4)(i) is revised to read as follows: ■ Natural condition raisins. * 24. Section 989.129 is revised to read as follows: PO 00000 25. Remove the undesignated heading ‘‘Marketing Policy’’ prior to § 989.154. ■ § 989.158 ■ § 989.129 producer position to be filled in its district. * * * * (c) * * * (4) * * * (i) The handler shall notify the inspection service at least one business day in advance of the time such handler plans to begin reconditioning each lot of raisins, unless a shorter period is acceptable to the inspection service. Such notification shall be provided verbally or by other means of communication, including email. Natural condition raisins which have been reconditioned shall continue to be considered natural condition raisins for purposes of reinspection (inspection pursuant to § 989.58(d)) after such reconditioning has been completed, if no water or moisture has been added; otherwise, such raisins shall be considered as packed raisins. The weight of the raisins reconditioned successfully shall be determined by reweighing, except where a lot, before reconditioning, failed due to excess moisture only. The weight of such raisins resulting from reconditioning a lot failing account excess moisture may be determined by deducting 1.2 percent of the weight for each percent of moisture in excess of the allowable tolerance. When necessary due to the presence of sand, as determined by the inspection service, the requirement for deducting sand tare and the manner of its determination, as prescribed in paragraph (a)(1) of this section, shall apply in computing the net weight of any such successfully reconditioned natural condition raisins. The weight of the reconditioned raisins acquired as packed raisins shall be adjusted to natural condition weight by the use of factors applicable to the various degrees of processing accomplished. The applicable factor shall be that selected by the inspector of the reconditioned raisins from among factors established by the Committee with the approval of the Secretary. * * * * * 28. Remove the undesignated heading ‘‘Volume Regulation’’ prior to § 989.166. ■ E:\FR\FM\26OCR1.SGM 26OCR1 53973 Federal Register / Vol. 83, No. 208 / Friday, October 26, 2018 / Rules and Regulations §§ 989.166 and 989.167 reserved] [Removed and 29. Sections 989.166 and 989.167 are removed and reserved. ■ 30. In § 989.173: ■ a. Remove paragraphs (b)(2)(ii), (f), and (g)(1)(ii); ■ b. Redesignate paragraphs (b)(2)(iii) and (g) as paragraphs (b)(2)(ii) and (f), respectively; ■ c. Redesignate newly designated paragraph (f)(1)(iii) as paragraph (f)(1)(ii); and ■ d. Revise paragraphs (a), (b)(2)(i), newly redesignated paragraph (b)(2)(ii), (c)(1) introductory text, (d)(1) introductory text, (d)(1)(v), and newly redesignated paragraphs (f)(1)(i), (f)(2)(i), and (f)(3) introductory text. The revisions read as follows: ■ khammond on DSK30JT082PROD with RULES § 989.173 Reports. (a) Inventory reports. Each handler shall submit to the Committee as of the close of business on July 31 of each crop year, and not later than the following August 6, an inventory report which shall show, with respect to each varietal type of raisins held by such handler, the quantity of off-grade raisins segregated as to those for reconditioning and those for disposition as such. Provided, That, for the Other Seedless varietal type, handlers shall report the information required in this paragraph separately for the different types of Other Seedless raisins. Upon request by the Committee, each handler shall file at other times, and as of other dates, any of the said information which may reasonably be necessary and which the Committee shall specify in its request. (b) * * * (2) * * * (i) The total net weight of the standard raisins acquired during the reporting period; and (ii) The cumulative totals of such acquisitions from the beginning of the then current crop year. * * * * * (c) * * * (1) Each month each handler who is not a processor shall furnish to the Committee, on an appropriate form provided by the Committee and so that it is received by the Committee not later than the seventh day of the month, a report showing the aggregate quantity of each varietal type of packed raisins and standard natural condition raisins which were shipped or otherwise disposed of by such handler during the preceding month (exclusive of transfers within the State of California between plants of any such handler and from such handler to other handlers): VerDate Sep<11>2014 18:06 Oct 25, 2018 Jkt 247001 Provided, That, for the Other Seedless varietal type, handlers shall report such information for the different types of Other Seedless raisins. Such required information shall be segregated as to: * * * * * (d) * * * (1) Any handler who transfers raisins to another handler within the State of California shall submit to the Committee not later than five calendar days following such transfer a report showing: * * * * * (v) If packed, the transferring handler shall certify that such handler is transferring only acquired raisins that meet all applicable marketing order requirements, including reporting, incoming inspection, and assessments. * * * * * (f) * * * (1) * * * (i) The quantity of raisins, segregated as to locations where they are stored and whether they are natural condition or packed; * * * * * (2) * * * (i) The total net weight of the standard raisins acquired during the reporting period; and * * * * * (3) Disposition report of organicallyproduced raisins. No later than the seventh day of each month, handlers who are not processors shall submit to the Committee, on an appropriate form provided by the Committee, a report showing the aggregate quantity of packed raisins and standard natural condition raisins which were shipped or otherwise disposed of by such handler during the preceding month (exclusive of transfer within the State of California between the plants of any such handler and from such handler to other handlers). Such information shall include: * * * * * Subpart Redesignated as Subpart C and Amended c. Revise newly redesignated paragraph (b). ■ The revisions read as follows: § 989.210 Handling of varietal types of raisins acquired pursuant to a weight dockage system. * * * * * (b) Assessments. Assessments on any lot of raisins of the varietal types specified in paragraph (a) of this section acquired by a handler pursuant to a weight dockage system shall be applicable to the creditable weight of such lot. * * * * * §§ 989.221 and 989.257 reserved] [Removed and 33. Sections 989.221 and 989.257 are removed and reserved. ■ Subpart Redesignated as Subpart D 34. Designate the subpart labeled ‘‘Subpart-Assessment Rates’’ as subpart D. ■ Subpart Removed 35. Subpart—Schedule of Payments is removed. ■ Subpart Redesignated as Subpart E 36. Designate the subpart labeled ‘‘Conversion Factors’’ as subpart E. ■ Subpart Redesignated as Subpart F 37. Designate the subpart labeled ‘‘Quality Control’’ as subpart F. ■ Subpart Redesignated as Subpart G 38. Designate the subpart labeled ‘‘Antitrust Immunity and Liability’’ as subpart G. ■ 39. In part 989 revise all references to ‘‘offgrade’’ to read ‘‘off-grade’’ and revise all references to ‘‘Offgrade’’ to read ‘‘Off-grade’’. ■ 40. In part 989 revise all references to ‘‘nonnormal’’ read ‘‘non-normal.’’ 31. Redesignate ‘‘SubpartSupplementary Regulations’’ as subpart C and revise the heading to read as follows: ■ Subpart C—Supplementary Requirements §§ 989.58, 989.59, and 989.102 ■ 41. In part 989 revise all references to ‘‘committee’’ to read ‘‘Committee.’’ ■ 42. In the list below, for each section indicated in the left column, remove the title indicated in the middle column from wherever it appears in the section, and add the title indicated in the right column: ■ 32. In § 989.210: a. Remove paragraphs (b), (c) and (e); b. Redesignate paragraph (d) as (b), paragraph (f) as (c), and paragraph (g) as (d); and ■ ■ ■ PO 00000 Frm 00009 Fmt 4700 Sfmt 4700 [Amended] E:\FR\FM\26OCR1.SGM 26OCR1 53974 Federal Register / Vol. 83, No. 208 / Friday, October 26, 2018 / Rules and Regulations Section Remove 989.58(d)(1) ............ 989.59(d) ................. 989.102 ................... Processed Products Standardization and Inspection Branch ............................... Processed Products Standardization and Inspection Branch ............................... Processed Products Branch, Fruit and Vegetable Division .................................. Dated: October 17, 2018. Bruce Summers, Administrator, Agricultural Marketing Service. [FR Doc. 2018–23089 Filed 10–25–18; 8:45 am] BILLING CODE 3410–02–P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA–2018–0898; Product Identifier 2018–NE–29–AD; Amendment 39– 19456; AD 2018–20–22] RIN 2120–AA64 Airworthiness Directives; General Electric Company Turbofan Engines Federal Aviation Administration (FAA), DOT. ACTION: Final rule; request for comments. AGENCY: We are adopting a new airworthiness directive (AD) for all General Electric Company (GE) GE90– 110B1, GE90–113B, and GE90–115B turbofan engines with a certain case combustor assembly (combustion case) installed. This AD requires removal of affected combustion cases from service and their replacement with a part eligible for installation. This AD was prompted by the discovery of a quality escape at a manufacturing facility involving unapproved welds on combustion cases. We are issuing this AD to address the unsafe condition on these products. DATES: This AD is effective November 13, 2018. The Director of the Federal Register approved the incorporation by reference of certain publications listed in this AD as of November 13, 2018. We must receive comments on this AD by December 10, 2018. ADDRESSES: You may send comments, using the procedures found in 14 CFR 11.43 and 11.45, by any of the following methods: • Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the instructions for submitting comments. • Fax: 202–493–2251. • Mail: U.S. Department of Transportation, Docket Operations, M– 30, West Building Ground Floor, Room khammond on DSK30JT082PROD with RULES SUMMARY: VerDate Sep<11>2014 18:06 Oct 25, 2018 Jkt 247001 Add W12–140, 1200 New Jersey Avenue SE, Washington, DC 20590. • Hand Delivery: U.S. Department of Transportation, Docket Operations, M– 30, West Building Ground Floor, Room W12–140, 1200 New Jersey Avenue SE, Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. For service information identified in this final rule, contact General Electric Company, GE Aviation, 1 Neumann Way, Cincinnati, OH 45215; telephone 513–552–3272; email: aviation.fleetsupport@ge.com. You may view this service information at the FAA, Engine and Propeller Standards Branch, 1200 District Avenue, Burlington, MA 01803. For information on the availability of this material at the FAA, call 781–238–7759. It is also available on the internet at http:// www.regulations.gov by searching for and locating Docket No. FAA–2018– 0898. Examining the AD Docket You may examine the AD docket on the internet at http:// www.regulations.gov by searching for and locating Docket No. FAA–2018– 0898; or in person at Docket Operations between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. The AD docket contains this final rule, the regulatory evaluation, any comments received, and other information. The street address for the Docket Operations (phone: 800–647– 5527) is listed above. Comments will be available in the AD docket shortly after receipt. FOR FURTHER INFORMATION CONTACT: Matthew Smith, Aerospace Engineer, ECO Branch, FAA, 1200 District Avenue, Burlington, MA 01803; phone: 781–238–7735; fax: 781–238–7199; email: matthew.c.smith@faa.gov. SUPPLEMENTARY INFORMATION: Discussion We learned from GE of a quality escape that one of their suppliers, AECC Aero Science and Technology Co., Ltd., was performing welds on newlymanufactured components to correct errors introduced in their manufacturing process. These welds were not reviewed or approved by either GE or the FAA. GE’s review of manufacturing records determined that these parts include PO 00000 Frm 00010 Fmt 4700 Sfmt 4700 Specialty Crops Inspection Division. Specialty Crops Inspection Division. Specialty Crops Inspection Division. combustion cases installed on GE GE90– 100 turbofan engines. These combustion cases are life limited. The unapproved repairs reduced the material capability of these cases, which requires their removal prior to reaching their published Airworthiness Limitation Section life limit. This condition, if not addressed, could result in failure of the combustion case, engine fire, and damage to the airplane. We are issuing this AD to address the unsafe condition on these products. Related Service Information Under 1 CFR Part 51 We reviewed GE GE90–100 Service Bulletin (SB) SB 72–0784 R00, dated May 4, 2018; GE SB GE90–100 S/B 72– 0788, Revision 4, dated July 30, 2018; and GE SB GE90–100 SB 72–0793 R00, dated August 10, 2018. The SBs describe procedures for removing the affected combustion cases from the engine. GE SB GE90–100 SB 72–0784 R00 is effective for GE90–100 turbofan engines with the combustion case S/Ns listed in that SB. GE SB GE90–100 S/B 72–0788 is effective for GE90–100 turbofan engines with the combustion case S/Ns listed in that SB. GE SB GE90–100 SB 72–0793 R00 is effective for GE90–100 turbofan engines with the combustion case S/Ns listed in that SB. This service information is reasonably available because the interested parties have access to it through their normal course of business or by the means identified in the ADDRESSES section. FAA’s Determination We are issuing this AD because we evaluated all the relevant information and determined the unsafe condition described previously is likely to exist or develop in other products of the same type design. AD Requirements This AD requires removal of the affected combustion cases from service and their replacement with a part eligible for installation. FAA’s Justification and Determination of the Effective Date An unsafe condition exists that requires the immediate adoption of this AD without providing an opportunity for public comments prior to adoption. The FAA has found that the risk to the flying public justifies waiving notice E:\FR\FM\26OCR1.SGM 26OCR1

Agencies

[Federal Register Volume 83, Number 208 (Friday, October 26, 2018)]
[Rules and Regulations]
[Pages 53965-53974]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-23089]



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Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 

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Federal Register / Vol. 83, No. 208 / Friday, October 26, 2018 / 
Rules and Regulations

[[Page 53965]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 989

[Doc. No. AO-FV-16-0016; AMS-SC-16-0011; SC16-989-1]


Raisins Produced From Grapes Grown in California; Order Amending 
Marketing Order No. 989

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: This final rule amends Marketing Order No. 989 (Order), which 
regulates the handling of raisins produced from grapes grown in 
California. Five amendments were proposed by the Raisin Administrative 
Committee (RAC) and three were proposed by the Agricultural Marketing 
Service (AMS). Seven of the eight proposed amendments were favored by 
California raisin growers in a mail referendum, held December 4 through 
15, 2017. This final rule also makes administrative revisions to 
subpart headings to bring the language into conformance with the Office 
of Federal Register requirements.

DATES: This rule is effective November 26, 2018.

ADDRESSES: Marketing Order and Agreement Division, Specialty Crops 
Program, AMS, USDA, 1400 Independence Avenue SW, Stop 0237, Washington, 
DC 20250-0237.

FOR FURTHER INFORMATION CONTACT: Melissa Schmaedick, Marketing Order 
and Agreement Division, Specialty Crops Program, AMS, USDA, Post Office 
Box 952, Moab, UT 84532; Telephone: (202) 557-4783, Fax: (435) 259-
1502, or Michelle Sharrow, 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: [email protected] or 
[email protected].
    Small businesses may request information on this proceeding by 
contacting Richard Lower, 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: [email protected].

SUPPLEMENTARY INFORMATION: Prior documents in this proceeding: Notice 
of Hearing issued on April 14, 2016, and published in the April 22, 
2016, issue of the Federal Register (81 FR 23650) and a Recommended 
Decision issued on May 3, 2017, and published in the May 31, 2017, 
issue of the Federal Register (82 FR 24882); and a Secretary's Decision 
and Referendum Order issued September 19, 2017, and published in the 
September 29, 2017, issue of the Federal Register (82 FR 45517).
    This action is governed by the provisions of sections 556 and 557 
of title 5 of the United States Code and, therefore, is excluded from 
the requirements of Executive Orders 12866, 13563, and 13175. 
Additionally, because this rule does not meet the definition of a 
significant regulatory action it does not trigger the requirements 
contained in Executive Order 13771. See the Office of Management and 
Budget's (OMB) Memorandum titled ``Interim Guidance Implementing 
Section 2 of the Executive Order of January 30, 2017 titled `Reducing 
Regulation and Controlling Regulatory Costs' '' (February 2, 2017).
    Notice of this rulemaking action was provided to tribal governments 
through the Department of Agriculture's (USDA) Office of Tribal 
Relations.

Preliminary Statement

    This action, pursuant to 5 U.S.C. 556 and 557, finalizes amendments 
to regulations issued to carry out a marketing order as defined in 7 
CFR 900.2(j). This rule is issued under Marketing Order No. 989, as 
amended (7 CFR part 989), regulating the handling of raisins produced 
from grapes grown in California. Part 989 (referred to as 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.''
    This rule is formulated on the record of a public hearing held on 
May 3 and 4, 2016, in Clovis, California. The hearing was held pursuant 
to the provisions of the Act, and the applicable rules of practice and 
procedure governing the formulation and amendment of marketing 
agreements and orders (7 CFR part 900). Notice of this hearing was 
published in the Federal Register on April 22, 2016 (81 FR 23650). The 
notice of hearing contained five proposals submitted by the RAC and 
three proposals by AMS.
    Upon the basis of evidence introduced at the hearing and the record 
thereof, the Administrator of AMS on May 3, 2017, filed with the 
Hearing Clerk, USDA, a Recommended Decision and Opportunity to File 
Written Exceptions thereto by June 30, 2017. One exception was filed. 
The exception filed opposed the proposed amendment to establish term 
limits.
    A Secretary's Decision and Referendum Order was issued on September 
29, 2017, directing that a referendum be conducted during the period of 
December 4 through 17, 2017, among eligible California raisin growers 
to determine whether they favored the proposed amendments to the Order. 
To become effective, the amendments had to be approved by at least two-
thirds of those growers voting, or by voters representing at least two-
thirds of the volume of raisins represented by voters voting in the 
referendum. The approved amendments were favored by over ninety percent 
of the growers voting in the referendum, representing over ninety 
percent of the total volume of raisins produced by those voting. The 
failed amendment was opposed by ninety-three percent of those voting 
and ninety-five percent of the represented volume.
    The amendments favored by voters and included in this final order 
will: Authorize production research; establish new nomination 
procedures for independent grower member and alternate member seats; 
add authority to regulate quality; add authority to establish different 
regulations for different market destinations; add a continuance 
referenda requirement; and remove volume regulation and reserve pool 
authority from the Order.
    USDA also made changes as were necessary to conform the Order 
provisions to the effectuated

[[Page 53966]]

amendments. Conforming changes and corrections proposed by USDA 
include: Revising all references of ``offgrade'' to ``off-grade''; 
revising all references of ``nonnormal'' to ``non-normal''; and, 
revising all references of ``committee'' to ``Committee.'' These 
corrections will result in consistent spelling of these terms 
throughout the Order. Also in this final rule, USDA will revise the 
amendment of Sec.  989.58(d) from ``interplant'' and ``interhandler'' 
to ``inter-plant'' and ``inter-handler'' as it appears in amended Sec.  
989.59(e).
    In addition, the words ``Processed Products Standardization and 
Inspection Branch'' in Sec. Sec.  989.58(d) and 989.59(d) will be 
changed to ``Specialty Crops Inspection Division.'' Similarly, 
``Processed Products Branch, Fruit and Vegetable Division'' in Sec.  
989.102 will be changed to ``Specialty Crops Inspection Division.'' 
These corrections will reflect the official name change of the AMS's 
inspection service office for fruit, vegetables and specialty crops.
    Lastly, an additional correction will change the amendatory 
language in Sec. Sec.  989.55, 989.56, 989.65, 989.66, 989.67, 989.71, 
989.72, 989.82, 989.154, 989.156, 989.166, 989.167, 989.221, 989.257 
and 989.401, from ``remove'' to ``remove and reserve.'' This change 
will prevent the unintentional renumbering of remaining sections of the 
Order.
    The amended marketing agreement was subsequently mailed to all 
raisin handlers in the production area for their approval. The 
marketing agreement was approved by handlers representing more than 50 
percent of the volume of raisins handled by all handlers during the 
August 1, 2016, through July 31, 2017, representative period. 
Consequently, a companion handler agreement will also be established.

Small Business Consideration

    Pursuant to the requirements set forth in the Regulatory 
Flexibility Act (RFA), AMS has considered the economic impact of this 
action 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 so that small businesses will not be 
unduly or disproportionately burdened. Marketing orders and amendments 
thereto are unique in that they are normally brought about through 
group action of essentially small entities for their own benefit.
    According to the hearing transcript, there are approximately 3,000 
raisin producers in California. According to National Agricultural 
Statistics Service data presented at the hearing, the total value of 
production of raisins in the 2014/15 crop year is $598,052,000. Taking 
the total value of production for raisins and dividing it by the total 
number of raisin producers provides an average return per producer of 
$199,950.67. A small producer as defined by the Small Business 
Administration (SBA) (13 CFR 121.201) is one that grosses less than 
$750,000 annually. Therefore, a majority of raisin producers are 
considered small entities under SBA's standards.
    According to the industry, there were 23 raisin handlers for the 
2015/16 crop year. While individual handling operation information is 
proprietary, both testimonies offered by handler witnesses and an 
assessment of total value of dried production leads USDA to conclude 
that 13 handlers would be considered small entities under SBA's 
standards.
    According to the record, two of the 23 handlers handled roughly 60 
percent of total production during the 2015/16 crop year. A calculation 
using the 2014 total value of production of $598,052,000 puts the value 
handled by the cooperatives at $358,831,200 ($598,052,000 x 60 percent) 
and the value handled by all other handlers at $239,220,800. With 21 
non-cooperative handlers remaining, $239,220,800 divided by that number 
results in an average handler receipt of $11,391,467. Assuming a normal 
bell-curve distribution, coupled with the number of handlers self-
identifying at the hearing as small business entities, USDA accepts the 
Committee's assertion that 13 handlers fall under the SBA definition of 
small agricultural service firm. A small agricultural service firm as 
defined by the SBA is one that grosses less than $7,500,000 annually. 
Thus, slightly more than half of the industry's handlers are considered 
small entities under SBA's standards.
    The production area regulated under the Order covers the state of 
California. Acreage devoted to raisin production in the regulated area 
has declined in recent years. According to data presented at the 
hearing, bearing acreage for raisins reached a high of 280,000 acres 
during the 2000/01 crop year. Since then, bearing acreage for raisins 
has decreased 32 percent to 190,000 acres in 2014/15. As a result, the 
total production of raisins reached a high during the 2000/01 crop year 
of 484,500 tons (dried basis). Since the 2000/01 crop year, total 
production for raisins has decreased 32 percent to 328,600 tons in 
2014/15.
    During the hearing held May 3 and 4, 2016, interested persons were 
invited to present evidence on the probable regulatory and information 
collection impact of the proposed amendments to the Order on small 
businesses. The evidence presented at the hearing shows that none of 
the proposed amendments would have any burdensome effects or a 
significant economic impact on a substantial number of small 
agricultural producers or firms.

Material Issues

Material Issue Number 1--Authorize Production Research

    This action amends Sec.  989.53 to authorize production research.
    Currently, the California Raisin Marketing Board (CRMB) is the 
funding source for production research for the California raisin 
industry. Three years ago, payments of assessments to the CRMB were 
suspended due to the results of litigation. Without funding, the CRMB 
has been unable to conduct any new production research projects. The 
amendment to Sec.  989.53 will authorize the RAC to conduct production 
research without having to rely on the CRMB for funding.
    Witnesses stated that future research could potentially impact 
producers in many ways, such as reducing pesticide usage or the 
development of new varieties that are less labor intensive. Production 
research will provide the raisin industry the ability to meet the needs 
of the ever changing domestic and international markets. According to a 
witness's testimony, the benefits of the proposed amendment will 
outweigh any costs and will not have a significant impact on a 
substantial number of small entities.

Material Issue Number 2--Authorize Separate Nominations for Independent 
Producer Member and Independent Producer Alternate Member Seats

    This action amends Sec. Sec.  989.29 and 989.129 to authorize 
separate nominations for independent producer members and independent 
producer alternate member seats.
    Currently, the RAC has difficulty filling Committee seats 
designated for independent producer members and independent producer 
alternate members. Independent producer alternate member seats have 
gone unfilled for several consecutive years.
    According to witnesses' testimony, this amendment will increase the 
participation of independent producers willing to participate on the 
RAC. Allowing for separate nominations for members and alternates will 
encourage participation by those who wish to serve in one capacity and 
not the other. Full participation would give the independent producers 
full

[[Page 53967]]

representation on the Board they represented and a voice in RAC 
decisions.
    It is determined that the benefits of increased RAC participation 
by independent producers will outweigh any costs associated with the 
implementation of this amendment.

Material Issue Number 3--Add Authority To Regulate Quality

    This action will amend Sec. Sec.  989.58, 989.59 and 989.61 to add 
authority to regulate quality under the Order. A corresponding change 
will also revise the heading prior to Sec.  989.58 to include quality.
    Currently, Sec. Sec.  989.58 and 989.59 state that the RAC has the 
authority to recommend grade and condition standards under the Order. 
The attribute ``quality'' is not specifically mentioned. The amendment 
will add language to include ``quality'' as an attribute that can be 
regulated under the Order.
    According to a witness at the hearing, the amendment will give the 
RAC flexibility to ensure consumer safety by setting quality standards 
for residue levels for herbicides, pesticides or fungicides. The 
quality standards will be equally applied to all handlers of raisins 
within the U.S.; some handlers are already testing for certain types of 
fungicides so the increased costs will be minimal.
    It is determined that the additional costs incurred to regulate 
quality will be greatly outweighed by the increased flexibility for the 
industry, increased consumer safety, and other benefits gained from 
implementing this amendment. The costs of implementing it will not have 
a significant impact on a substantial number of small entities.

Material Issue Number 4--Add Authority To Establish Different 
Regulations for Different Markets

    This action will amend Sec.  989.59 to add authority to establish 
different regulations for different markets.
    The Order does not currently allow for different quality or grade 
standards to be applied to different foreign markets. The language in 
the Order only has two classifications for grade and condition 
standards, Grade A or Grade B. The current grade and condition 
standards are consistent across all markets.
    This amendment will give the RAC the authority to develop 
requirements for raisins intended for export to different foreign 
markets. Industry will have the flexibility to tailor product 
attributes to meet the foreign consumer profile and the customer 
demands for each individual market.
    It is determined that any additional costs incurred for this 
amendment will be outweighed by the increased flexibility for the 
industry to respond to a changing global marketplace. The costs of 
implementing this amendment will not have a significant impact on a 
substantial number of small entities.

Material Issue Number 5--Continuance Referenda

    This action will amend Sec.  989.91 to require continuance 
referenda.
    The amendment will require the USDA to conduct a continuance 
referendum between year five and year six after implementation for the 
first referendum, and every six years thereafter. A witness testified 
that a continuance referendum is the best tool for assuring that the 
Order remains responsive to the needs of the industry. While a 
continuance referendum will not directly improve producer returns, it 
will indirectly ensure that the industry believes that the Order is 
operating in the producer's best interest.
    For these reasons, it is determined that the benefits of conducting 
a continuance referendum will outweigh the potential costs of 
implementing this amendment. The costs of implementing this amendment 
will be minimal and will not have a significant impact on a substantial 
number of small entities.

Material Issue Number 6--Remove Volume Regulations and Reserve Pool 
Authority

    This action will amend the Order to remove volume regulation and 
reserve pool authority. This will include: deleting and reserving 
Sec. Sec.  989.55 and 989.56, Sec. Sec.  989.65 through 989.67, 
Sec. Sec.  989.71, 989.72, 989.82, 989.154, 989.156, 989.166, 989.167, 
989.221, 989.257, and 989.401; revising Sec. Sec.  989.11, 989.53, 
989.54, 989.58, 989.59, 989.60, 989.73, 989.79, 989.80, 989.84, 
989.158, 989.173, and 989.210; and re-designating Sec.  989.70 as Sec.  
989.96. Corresponding changes will also remove the following headings: 
``Volume Regulation'' prior to Sec.  989.65; ``Volume Regulation'' 
prior to Sec.  989.166; and, ``Subpart-Schedule of Payments'' prior to 
Sec.  989.401.
    The amendment will remove all authority for the RAC to recommend 
volume restrictions and a reserve pool. On June 22, 2015, the United 
States Supreme Court, in Horne v. USDA, ruled that the application of 
the Order's reserve pool authority to the Horne's was a taking under 
the Fifth Amendment to the U.S. Constitution. In a July 16, 2015, 
letter to the RAC, USDA stated, ``In light of the Horne decision, the 
U.S. Department of Agriculture has decided not to authorize the reserve 
program of the Federal marketing order for California raisins for the 
foreseeable future, effective immediately.''
    One witness at the hearing explained that bearing acres have 
declined the past ten years, which supports the theory that the 
California raisin industry is adjusting to a decreasing or flat demand 
for the product. The witness stated that, in the future, supply will 
likely remain in better balance with demand and, therefore, the reserve 
pool and volume regulation are no longer as relevant as they were in 
higher production times. To further the point, the witness stated that 
the Order's reserve pool authority has not been utilized since 2010.
    The amendment will be a relaxation of regulatory requirements. For 
this reason, it is determined that no significant impact on small 
business entities is anticipated from this change.
    The costs attributed to these amendments are minimal; therefore, 
there will not be a significant impact on a substantial number of small 
entities.
    USDA has not identified any relevant Federal rules that duplicate, 
overlap or conflict with this rule. These amendments are intended to 
improve the operation and administration of the Order and to assist in 
the marketing of California raisins.
    RAC meetings regarding these amendments, as well as the hearing 
date and location, were widely publicized throughout the California 
raisin industry, and all interested persons were invited to attend the 
meetings and the hearing to participate in RAC deliberations on all 
issues. All RAC meetings and the hearing were public forums, and all 
entities, both large and small, were able to express views on these 
issues. Finally, interested persons were invited to submit information 
on the regulatory and information collection impacts of this action on 
small businesses.

Paperwork Reduction Act

    Current information collection requirements for Part 989 are 
approved by OMB, under OMB Number 0581-0189--``Generic OMB Fruit 
Crops.'' No changes are anticipated in these requirements as a result 
of this proceeding. Should any such changes become necessary, they will 
be submitted to OMB for approval.
    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 Government Paperwork 
Elimination

[[Page 53968]]

Act, which requires Government agencies in general to provide the 
public the option of submitting information or transacting business 
electronically to the maximum extent possible.
    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.

Civil Justice Reform

    The amendments to the Order stated herein have been reviewed under 
Executive Order 12988, Civil Justice Reform. They are not intended to 
have retroactive effect. The amendments do not preempt any State or 
local laws, regulations, or policies, unless they present an 
irreconcilable conflict with this rule.
    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. A 
handler is afforded the opportunity for a hearing on the petition. 
After the hearing, USDA would rule on the petition. The Act provides 
that the district court of the United States in any district in which 
the handler is an inhabitant, or has his or her principal place of 
business, has jurisdiction to review USDA's ruling on the petition, 
provided an action is filed no later than 20 days after the date of 
entry of the ruling.

Order Amending the Order Regulating the Handling of Raisins Produced 
From Grapes Grown in California 1
---------------------------------------------------------------------------

    \1\ This order shall not become effective unless and until the 
requirements of Sec.  900.14 of the rules of practice and procedure 
governing proceedings to formulate marketing agreements and 
marketing orders have been met.
---------------------------------------------------------------------------

Findings and Determinations

    The findings and determinations hereinafter set forth are 
supplementary to the findings and determinations that were previously 
made in connection with the issuance of the Marketing Order; and all 
said previous findings and determinations are hereby ratified and 
affirmed, except insofar as such findings and determinations may be in 
conflict with the findings and determinations set forth herein.
    (a) Findings and Determinations Upon the Basis of the Hearing 
Record
    Pursuant to the provisions of the Agricultural Marketing Agreement 
Act of 1937, as amended (7 U.S.C. 601-674), and the applicable rules of 
practice and procedure effective thereunder (7 CFR part 900), a public 
hearing was held upon further amendment of Marketing Order No. 989, 
regulating the handling of raisins produced from grapes grown in 
California.
    Upon the basis of the record, it is found that:
    (1) The Order, as amended, and as hereby further amended, and all 
of the terms and conditions thereof, would tend to effectuate the 
declared policy of the Act;
    (2) The Order, as amended, and as hereby further amended, regulates 
the handling of raisins produced from grapes grown in the production 
area in the same manner as, and are applicable only to, persons in the 
respective classes of commercial and industrial activity specified in 
the Order upon which a hearing has been held;
    (3) The Order, as amended, and as hereby further amended, is 
limited in its application to the smallest regional production area 
that is practicable, consistent with carrying out the declared policy 
of the Act, and the issuance of several orders applicable to 
subdivisions of the production area would not effectively carry out the 
declared policy of the Act;
    (4) The Order, as amended, and as hereby further amended, 
prescribes, insofar as practicable, such different terms applicable to 
different parts of the production area as are necessary to give due 
recognition to the differences in the production and marketing of 
raisins produced from grapes grown in California; and
    (5) All handling of raisins produced from grapes grown in the 
production area as defined in the Order is in the current of interstate 
or foreign commerce or directly burdens, obstructs, or affects such 
commerce.
    (b) Determinations. It is hereby determined that:
    (1) Handlers (excluding cooperative associations of growers who are 
not engaged in processing, distributing, or shipping raisins covered by 
the Order as hereby amended) who, during the period August 1, 2016, 
through July 31, 2017, handled 50 percent or more of the volume of such 
raisins covered by said Order, as hereby amended, have signed an 
amended marketing agreement;
    (2) The issuance of this amendatory Order, further amending the 
aforesaid Order, was favored or approved by at least two-thirds of the 
growers who participated in a referendum on the question of approval 
and who, during the period of August 1, 2016, through July 31, 2017 
(which has been deemed to be a representative period), have been 
engaged within the production area in the production of such raisins, 
such growers having also produced for market at least two-thirds of the 
volume of such commodity represented in the referendum; and
    (3) The issuance of this amendatory Order advances the interests of 
producers of raisins in the production area pursuant to the declared 
policy of the Act.

Order Relative to Handling

    It is therefore ordered, that on and after the effective date 
hereof, all handling of raisins produced from grapes grown in 
California shall be in conformity to, and in compliance with, the terms 
and conditions of the said Order as hereby amended as follows:
    The provisions of the amendments to the Order contained in the 
Secretary's Decision issued September 19, 2017, and published in the 
September 29, 2017, issue of the Federal Register (82 FR 45517), with 
the exception of the proposal to establish term limits, will be and are 
the terms and provisions of this Order amending the Order and are set 
forth in full herein.

List of Subjects in 7 CFR Part 989

    Raisins, Marketing agreements, Reporting and recordkeeping 
requirements.


    For the reasons set out 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 part 989 continues to read as follows:

    Authority:  7 U.S.C. 601-674.

Subpart Redesignated as Subpart A

0
2. Designate the subpart labeled ``Order Regulating Handling'' as 
subpart A.

0
3. Section 989.11 is revised to read as follows:


Sec.  989.11  Producer.

    Producer means any person engaged in a proprietary capacity in the 
production of grapes which are sun-dried or dehydrated by artificial 
means until they become raisins.

0
4. In Sec.  989.29:
0
a. Revise paragraph (b)(2)(ii);
0
b. Redesignate paragraph (b)(2)(iii) as paragraph (b)(2)(iv);
0
c. Add new paragraph (b)(2)(iii); and

[[Page 53969]]

0
d. Revise newly redesignated paragraph (b)(2)(iv).
    The revisions and addition read as follows:


Sec.  989.29   Initial members and nomination of successor members.

* * * * *
    (b) * * *
    (2) * * *
    (ii) Each such producer whose name is offered in nomination for 
producer member positions to represent on the Committee independent 
producers or producers who are affiliated with cooperative marketing 
association(s) handling less than 10 percent of the total raisin 
acquisitions during the preceding crop year shall be given the 
opportunity to provide the Committee a short statement outlining 
qualifications and desire to serve if selected. Similarly, each such 
producer whose name is offered in nomination for producer alternate 
member positions to represent on the Committee independent producers or 
producers who are affiliated with cooperative marketing association(s) 
handling less than 10 percent of the total raisin acquisitions during 
the preceding crop year shall be given the opportunity to provide the 
Committee a short statement outlining qualifications and desire to 
serve if selected. These brief statements, together with a ballot and 
voting instructions, shall be mailed to all independent producers and 
producers who are affiliated with cooperative marketing associations 
handling less than 10 percent of the total raisin acquisitions during 
the preceding crop year of record with the Committee in each district. 
The producer member candidate receiving the highest number of votes 
shall be designated as the first member nominee, the second highest 
shall be designated as the second member nominee until nominees for all 
producer member positions have been filled. Similarly, the producer 
alternate member candidate receiving the highest number of votes shall 
be designated as the first alternate member nominee, the second highest 
shall be designated as the second alternate member nominee until 
nominees for all member positions have been filled.
    (iii) In the event that there are more producer member nominees 
than positions to be filled and not enough producer alternate member 
nominees to fill all positions, producer member nominees not nominated 
for a member seat may be nominated to fill vacant alternate member 
seats. Member seat nominees shall indicate, prior to the nomination 
vote, whether they are willing to accept nomination for an alternate 
seat in the event they are not nominated for a member seat and there 
are vacant alternate member seats. Member seat nominees that do not 
indicate willingness to be considered for vacant alternate member seats 
shall not be considered.
    (iv) Each independent producer or producer affiliated with 
cooperative marketing association(s) handling less than 10 percent of 
the total raisin acquisitions during the preceding crop year shall cast 
only one vote with respect to each position for which nominations are 
to be made. Write-in candidates shall be accepted. The person receiving 
the most votes with respect to each position to be filled, in 
accordance with paragraph (b)(2)(ii) and (iii) of this section, shall 
be the person to be certified to the Secretary as the nominee. The 
Committee may, subject to the approval of the Secretary, establish 
rules and regulations to effectuate this section.
* * * * *

0
5. In Sec.  989.53, revise the introductory text of paragraph (a), and 
remove the undesignated paragraph that follows paragraph (a)(5) to read 
as follows:


Sec.  989.53   Research and development.

    (a) General. The Committee, with the approval of the Secretary, may 
establish or provide for the establishment of projects involving 
production research, market research and development, marketing 
promotion including paid advertising, designed to assist, improve, or 
promote the production, marketing, distribution, and consumption of 
raisins in domestic and foreign markets. These projects may include, 
but need not be limited to those designed to:
* * * * *

0
6. In Sec.  989.54:
0
a. Remove paragraphs (a) through (d) and (g);
0
b. Remove paragraph (e)(4);
0
c. Redesignate paragraphs (e)(5) through (e)(10) as (e)(4) through 
(e)(9), respectively;
0
d. Redesignate paragraphs (e), (f), and (h) as paragraphs (a), (b), and 
(c), respectively; and
0
e. Revise newly redesignated paragraphs (a) introductory text, (a)(1), 
(a)(4), (a)(5) and (c).
    The revisions read as follows:


Sec.  989.54   Marketing policy.

    (a) Marketing policy. Each crop year, the Committee shall prepare 
and submit to the Secretary a report setting forth its recommended 
marketing policy, including quality regulations for the pending crop. 
In developing the marketing policy, the Committee may give 
consideration to the production, harvesting, processing, and storage 
conditions of that crop, as well as the following factors:
    (1) The estimated tonnage held by producers and handlers at the 
beginning of the crop year;
* * * * *
    (4) An estimated desirable carryout at the end of the crop year;
    (5) The estimated market demand for raisins, considering the 
estimated world raisin supply and demand situation;
* * * * *
    (c) Publicity. The Committee shall promptly give reasonable 
publicity to producers, dehydrators, handlers, and the cooperative 
bargaining association(s) of each meeting to consider a marketing 
policy or any modification thereof, and each such meeting shall be open 
to them. Similar publicity shall be given to producers, dehydrators, 
handlers, and the cooperative bargaining association(s) of each 
marketing policy report or modification thereof, filed with the 
Secretary and of the Secretary's action thereon.
    Copies of all marketing policy reports shall be maintained in the 
office of the Committee, where they shall be made available for 
examination by any producer, dehydrator, handler, or cooperative 
bargaining association representative. The Committee shall notify 
handlers, dehydrators and the cooperative bargaining association(s), 
and give reasonable publicity to producers of its computation.


Sec. Sec.  989.55 and 989.56   [Removed and reserved]

0
7. Sections 989.55 and 989.56 are removed and reserved.

0
8. Revise the undesignated heading prior to Sec.  989.58 to read as 
follows: ``Grade, Quality, and Condition Standards''.

0
9. In Sec.  989.58, revise paragraphs (a), (b), (d)(1), (e)(1), and 
(e)(4) to read as follows:


Sec.  989.58   Natural condition raisins.

    (a) Regulation. No handler shall acquire or receive natural 
condition raisins which fail to meet such minimum grade, quality, and 
condition standards as the Committee may establish, with the approval 
of the Secretary, in applicable rules and regulations: Provided, That a 
handler may receive raisins for inspection, may receive off-grade 
raisins for reconditioning and may receive or acquire off-grade raisins 
for use in eligible non-normal outlets: And provided further, That a 
handler may acquire natural condition raisins which

[[Page 53970]]

exceed the tolerance established for maturity under a weight dockage 
system established pursuant to rules and regulations recommended by the 
Committee and approved by the Secretary. Nothing contained in this 
paragraph shall apply to the acquisition or receipt of natural 
condition raisins of a particular varietal type for which minimum 
grade, quality, and condition standards are not applicable or then in 
effect pursuant to this part.
    (b) Changes in minimum grade, quality, and condition standards for 
natural condition raisins. The Committee may recommend to the Secretary 
changes in the minimum grade, quality, and condition standards for 
natural condition raisins of any varietal type and may recommend to the 
Secretary that minimum grade, quality, and condition standards for any 
varietal type be added to or deleted. The Committee shall submit with 
its recommendation all data and information upon which it acted in 
making its recommendation, and such other information as the Secretary 
may request. The Secretary shall approve any such change if he finds, 
upon the basis of data submitted to him by the Committee or from other 
pertinent information available to him, that to do so would tend to 
effectuate the declared policy of the Act.
* * * * *
    (d) * * *
    (1) Each handler shall cause an inspection and certification to be 
made of all natural condition raisins acquired or received by him, 
except with respect to:
    (i) An inter-plant or inter-handler transfer of off-grade raisins 
as described in paragraph (e)(2) of this section, unless such 
inspection and certification are required by rules and procedures made 
effective pursuant to this amended subpart;
    (ii) An inter-plant or inter-handler transfer of standard raisins 
as described in Sec.  989.59(e);
    (iii) Raisins received from a dehydrator which have been previously 
inspected pursuant to paragraph (d)(2) of this section;
    (iv) Any raisins for which minimum grade, quality, and condition 
standards are not then in effect;
    (v) Raisins received from a cooperative bargaining association 
which have been inspected and are in compliance with requirements 
established pursuant to paragraph (d)(3) of this section; and
    (vi) Any raisins, if permitted in accordance with such rules and 
procedures as the Committee may establish with the approval of the 
Secretary, acquired or received for disposition in eligible non-normal 
outlets. Except as otherwise provided in this section, prior to 
blending raisins, acquiring raisins, storing raisins, reconditioning 
raisins, or acquiring raisins which have been reconditioned, each 
handler shall obtain an inspection certification showing whether or not 
the raisins meet the applicable grade, quality, and condition 
standards: Provided, That the initial inspection for infestation shall 
not be required if the raisins are fumigated in accordance with such 
rules and procedures as the Committee shall establish with the approval 
of the Secretary. The handler shall submit or cause to be submitted to 
the Committee a copy of such certification, together with such other 
documents or records as the Committee may require. Such certification 
shall be issued by inspectors of the Processed Products Standardization 
and Inspection Branch of the U.S. Department of Agriculture, unless the 
Committee determines, and the Secretary concurs in such determination, 
that inspection by another agency would improve the administration of 
this amended subpart. The Committee may require that raisins held on 
memorandum receipt be re-inspected and certified as a condition for 
their acquisition by a handler.
* * * * *
    (e) * * *
    (1) Any natural condition raisins tendered to a handler which fail 
to meet the applicable minimum grade, quality, and condition standards 
may:
    (i) Be received or acquired by the handler for disposition, without 
further inspection, in eligible non-normal outlets;
    (ii) Be returned unstemmed to the person tendering the raisins; or
    (iii) Be received by the handler for reconditioning. Off-grade 
raisins received by a handler under any one of the three described 
categories may be changed to any other of the categories under such 
rules and procedures as the Committee, with the approval of the 
Secretary, shall establish. No handler shall ship or otherwise dispose 
of off-grade raisins which he does not return to the tenderer, transfer 
to another handler as provided in paragraph (e)(2) of this section, or 
recondition so that they at least meet the minimum standards prescribed 
in or pursuant to this amended subpart, except into eligible non-normal 
outlets.
* * * * *
    (4) If the handler is to acquire the raisins after they are 
reconditioned, his obligation with respect to such raisins shall be 
based on the weight of the raisins (if stemmed, adjusted to natural 
condition weight) after they have been reconditioned.
* * * * *

0
10. In Sec.  989.59, revise paragraphs (a), (b), (d), (e), and (g) to 
read as follows:


Sec.  989.59   Regulation of the handling of raisins subsequent to 
their acquisition by handlers.

    (a) Regulation. Unless otherwise provided in this part, no handler 
shall:
    (1) Ship or otherwise make final disposition of natural condition 
raisins unless they at least meet the effective and applicable minimum 
grade, quality, and condition standards for natural condition raisins; 
or
    (2) Ship or otherwise make final disposition of packed raisins 
unless they at least meet such minimum grade quality, and condition 
standards established by the Committee, with the approval of the 
Secretary, in applicable rules and regulations or as later changed or 
prescribed pursuant to the provisions of paragraph (b) of this section: 
Provided, That nothing contained in this paragraph shall prohibit the 
shipment or final disposition of any raisins of a particular varietal 
type for which minimum standards are not applicable or then in effect 
pursuant to this part. And provided further, That a handler may grind 
raisins, which do not meet the minimum grade, quality, and condition 
standards for packed raisins because of mechanical damage or sugaring, 
into a raisin paste. The Committee may establish, with approval of the 
Secretary, different grade, quality, and condition regulations for 
different markets.
    (b) Changes to minimum grade, quality, or condition standards. The 
Committee may recommend changes in the minimum grade, quality, or 
condition standards for packed raisins of any varietal type and may 
recommend to the Secretary that minimum grade, quality, or condition 
standards for any varietal type be added or deleted. The Committee 
shall submit with its recommendation all data and information upon 
which it acted in making its recommendation, and such other information 
as the Secretary may request. The Secretary shall approve any such 
change if he finds, upon the basis of data submitted to him by the 
Committee or from other pertinent information available to him, that to 
do so would tend to effectuate the declared policy of the Act.
* * * * *
    (d) Inspection and certification. Unless otherwise provided in this

[[Page 53971]]

section, each handler shall, at his own expense, before shipping or 
otherwise making final disposition of raisins, cause an inspection to 
be made of such raisins to determine whether they meet the then 
applicable minimum grade, quality, and condition standards for natural 
condition raisins or the then applicable minimum standards for packed 
raisins. Such handler shall obtain a certificate that such raisins meet 
the aforementioned applicable minimum standards and shall submit or 
cause to be submitted to the Committee a copy of such certificate 
together with such other documents or records as the Committee may 
require. The certificate shall be issued by the Processed Products 
Standardization and Inspection Branch of the United States Department 
of Agriculture, unless the Committee determines, and the Secretary 
concurs in such determination, that inspection by another agency will 
improve the administration of this amended subpart. Any certificate 
issued pursuant to this paragraph shall be valid only for such period 
of time as the Committee may specify, with the approval of the 
Secretary, in appropriate rules and regulations.
    (e) Inter-plant and inter-handler transfers. Any handler may 
transfer from his plant to his own or another handler's plant within 
the State of California any raisins without having had such raisins 
inspected as provided in paragraph (d) of this section. The 
transferring handler shall transmit promptly to the Committee a report 
of such transfer, except that transfers between plants owned or 
operated by the same handler need not be reported. Before shipping or 
otherwise making final disposition of such raisins, the receiving 
handler shall comply with the requirements of this section.
* * * * *
    (g) Exemption of experimental and specialty packs. The Committee 
may establish, with the approval of the Secretary, rules and procedures 
providing for the exemption of raisins in experimental and specialty 
packs from one or more of the requirements of the minimum grade, 
quality, or condition standards of this section, together with the 
inspection and certification requirements if applicable.

0
11. Amend Sec.  989.60 by revising paragraph (a) to read as follows:


Sec.  989.60   Exemption.

    (a) Notwithstanding any other provisions of this amended subpart, 
the Committee may establish, with the approval of the Secretary, such 
rules and procedures as may be necessary to permit the acquisition and 
disposition of any off-grade raisins, free from any or all regulations, 
for uses in non-normal outlets.
* * * * *

0
12. Section 989.61 is revised to read as follows:


Sec.  989.61   Above parity situations.

    The provisions of this part relating to minimum grade, quality, and 
condition standards and inspection requirements, within the meaning of 
section 2(3) of the Act, and any other provisions pertaining to the 
administration and enforcement of the Order, shall continue in effect 
irrespective of whether the estimated season average price to producers 
for raisins is in excess of the parity level specified in section 2(1) 
of the Act.

0
13. Remove the undesignated heading ``Volume Regulation'' prior to 
Sec.  989.65.


Sec. Sec.  989.65, 989.66, and 989.67   [Removed and reserved]

0
14. Sections 989.65, 989.66, and 989.67 are removed and reserved.


Sec.  989.70   [Redesignated as Sec.  989.96]

0
15. Redesignate Sec.  989.70 as Sec.  989.96.


Sec. Sec.  989.71 and 989.72   [Removed and reserved]

0
16. Sections 989.71 and 989.72 are removed and reserved.

0
17. Amend Sec.  989.73 by revising paragraph (b) to read as follows:


Sec.  989.73   Reports.

* * * * *
    (b) Acquisition reports. Each handler shall submit to the Committee 
in accordance with such rules and procedures as are prescribed by the 
Committee, with the approval of the Secretary, certified reports, for 
such periods as the Committee may require, with respect to his 
acquisitions of each varietal type of raisins during the particular 
period covered by such report, which report shall include, but not be 
limited to:
    (1) The total quantity of standard raisins acquired;
    (2) The total quantity of off-grade raisins acquired pursuant to 
Sec.  989.58(e)(1)(i); and
    (3) Cumulative totals of such acquisitions from the beginning of 
the then current crop year to and including the end of the period for 
which the report is made. Upon written application made to the 
Committee, a handler may be relieved of submitting such reports after 
completing his packing operations for the season. Upon request of the 
Committee, each handler shall furnish to the Committee, in such manner 
and at such times as it may require, the name and address of each 
person from whom he acquired raisins and the quantity of each varietal 
type of raisins acquired from each such person.
* * * * *

0
18. Section 989.79 is revised to read as follows:


Sec.  989.79   Expenses.

    The Committee is authorized to incur such expenses as the Secretary 
finds are reasonable and likely to be incurred by it during each crop 
year, for the maintenance and functioning of the Committee and for such 
purposes as he may, pursuant to this subpart, determine to be 
appropriate. The funds to cover such expenses shall be obtained levying 
assessments as provided in Sec.  989.80. The Committee shall file with 
the Secretary for each crop year a proposed budget of these expenses 
and a proposal as to the assessment rate to be fixed pursuant to Sec.  
989.80, together with a report thereon. Such filing shall be not later 
than October 5 of the crop year, but this date may be extended by the 
Committee not more than 5 days if warranted by a late crop.

0
19. In Sec.  989.80, revise paragraphs (a) through (c) to read as 
follows:


Sec.  989.80   Assessments.

    (a) Each handler shall pay to the Committee, upon demand, his pro 
rata share of the expenses which the Secretary finds will be incurred, 
as aforesaid, by the Committee during each crop year less any amounts 
credited pursuant to Sec.  989.53. Such handler's pro rata share of 
such expenses shall be equal to the ratio between the total raisin 
tonnage acquired by such handler during the applicable crop year and 
the total raisin tonnage acquired by all handlers during the same crop 
year.
    (b) Each handler who reconditions off-grade raisins but does not 
acquire the standard raisins recovered therefrom shall, with respect to 
his assessable portion of all such standard raisins, pay to the 
Committee, upon demand, his pro rata share of the expenses which the 
Secretary finds will be incurred by the Committee each crop year. Such 
handler's pro rata share of such expenses shall be equal to the ratio 
between the handler's assessable portion (which shall be a quantity 
equal to such handler's standard raisins which are acquired by some 
other handler or handlers) during the applicable crop year and the 
total raisin tonnage acquired by all handlers.
    (c) The Secretary shall fix the rate of assessment to be paid by 
all handlers on

[[Page 53972]]

the basis of a specified rate per ton. At any time during or after a 
crop year, the Secretary may increase the rate of assessment to obtain 
sufficient funds to cover any later finding by the Secretary relative 
to the expenses of the Committee. Each handler shall pay such 
additional assessment to the Committee upon demand. In order to provide 
funds to carry out the functions of the Committee, the Committee may 
accept advance payments from any handler to be credited toward such 
assessments as may be levied pursuant to this section against such 
handler during the crop year. The payment of assessments for the 
maintenance and functioning of the Committee, and for such purposes as 
the Secretary may pursuant to this subpart determine to be appropriate, 
may be required under this part throughout the period it is in effect, 
irrespective of whether particular provisions thereof are suspended or 
become inoperative.
* * * * *


Sec.  989.82   [Removed and reserved]

0
20. Section 989.82 is removed and reserved.

0
21. Section 989.84 is revised to read as follows:


Sec.  989.84   Disposition limitation.

    No handler shall dispose of standard raisins, off-grade raisins, or 
other failing raisins, except in accordance with the provisions of this 
subpart or pursuant to regulations issued by the committee.

0
22. In Sec.  989.91:
0
a. Redesignate paragraphs (c) and (d) as paragraphs (d) and (e), 
respectively; and
0
b. Add new paragraph (c).
    The addition reads as follows:


Sec.  989.91   Suspension or termination.

* * * * *
    (c) No less than five crop years and no later than six crop years 
after the effective date of this amendment, the Secretary shall conduct 
a referendum to ascertain whether continuance of this part is favored 
by producers. Subsequent referenda to ascertain continuance shall be 
conducted every six crop years thereafter. The Secretary may terminate 
the provisions of this part at the end of any crop year in which the 
Secretary has found that continuance of this part is not favored by a 
two-thirds majority of voting producers, or a two-thirds majority of 
volume represented thereby, who, during a representative period 
determined by the Secretary, have been engaged in the production for 
market of grapes used in the production of raisins in the State of 
California. Such termination shall be announced on or before the end of 
the crop year.
* * * * *

Subpart Redesignated as Subpart B and Amended

0
23. Redesignate ``Subpart-Administrative Rules and Regulations'' as 
subpart B and revise the heading to read as follows:

Subpart B--Administrative Requirements

0
24. Section 989.129 is revised to read as follows:


Sec.  989.129   Voting at nomination meetings.

    Any person (defined in Sec.  989.3 as an individual, partnership, 
corporation, association, or any other business unit) who is engaged, 
in a proprietary capacity, in the production of grapes which are sun-
dried or dehydrated by artificial means to produce raisins and who 
qualifies under the provisions of Sec.  989.29(b)(2) shall be eligible 
to cast one ballot for a nominee for each producer member position and 
one ballot for a nominee for each producer alternate member position on 
the committee which is to be filled for his district. Such person must 
be the one who or which: Owns and farms land resulting in his or its 
ownership of such grapes produced thereon; rents and farms land, 
resulting in his or its ownership of all or a portion of such grapes 
produced thereon; or owns land which he or it does not farm and, as 
rental for such land, obtains the ownership of a portion of such grapes 
or the raisins. In this connection, a partnership shall be deemed to 
include two or more persons (including a husband and wife) with respect 
to land the title to which, or leasehold interest in which, is vested 
in them as tenants in common, joint tenants, or under community 
property laws, as community property. In a landlord-tenant 
relationship, wherein each of the parties is a producer, each such 
producer shall be entitled to one vote for a nominee for each producer 
member position and one vote for each producer alternate member 
position. Hence, where two persons operate land as landlord and tenant 
on a share-crop basis, each person is entitled to one vote for each 
such position to be filled. Where land is leased on a cash rental 
basis, only the person who is the tenant or cash renter (producer) is 
entitled to vote. A partnership or corporation, when eligible, is 
entitled to cast only one vote for a nominee for each producer position 
to be filled in its district.

0
25. Remove the undesignated heading ``Marketing Policy'' prior to Sec.  
989.154.


Sec. Sec.  989.154 and 989.156   [Removed and reserved]

0
26. Sections 989.154 and 989.156 are removed and reserved.

0
27. Section 989.158(c)(4)(i) is revised to read as follows:


Sec.  989.158   Natural condition raisins.

* * * * *
    (c) * * *
    (4) * * *
    (i) The handler shall notify the inspection service at least one 
business day in advance of the time such handler plans to begin 
reconditioning each lot of raisins, unless a shorter period is 
acceptable to the inspection service. Such notification shall be 
provided verbally or by other means of communication, including email. 
Natural condition raisins which have been reconditioned shall continue 
to be considered natural condition raisins for purposes of reinspection 
(inspection pursuant to Sec.  989.58(d)) after such reconditioning has 
been completed, if no water or moisture has been added; otherwise, such 
raisins shall be considered as packed raisins. The weight of the 
raisins reconditioned successfully shall be determined by reweighing, 
except where a lot, before reconditioning, failed due to excess 
moisture only. The weight of such raisins resulting from reconditioning 
a lot failing account excess moisture may be determined by deducting 
1.2 percent of the weight for each percent of moisture in excess of the 
allowable tolerance. When necessary due to the presence of sand, as 
determined by the inspection service, the requirement for deducting 
sand tare and the manner of its determination, as prescribed in 
paragraph (a)(1) of this section, shall apply in computing the net 
weight of any such successfully reconditioned natural condition 
raisins. The weight of the reconditioned raisins acquired as packed 
raisins shall be adjusted to natural condition weight by the use of 
factors applicable to the various degrees of processing accomplished. 
The applicable factor shall be that selected by the inspector of the 
reconditioned raisins from among factors established by the Committee 
with the approval of the Secretary.
* * * * *

0
28. Remove the undesignated heading ``Volume Regulation'' prior to 
Sec.  989.166.

[[Page 53973]]

Sec. Sec.  989.166 and 989.167   [Removed and reserved]

0
29. Sections 989.166 and 989.167 are removed and reserved.

0
30. In Sec.  989.173:
0
a. Remove paragraphs (b)(2)(ii), (f), and (g)(1)(ii);
0
b. Redesignate paragraphs (b)(2)(iii) and (g) as paragraphs (b)(2)(ii) 
and (f), respectively;
0
c. Redesignate newly designated paragraph (f)(1)(iii) as paragraph 
(f)(1)(ii); and
0
d. Revise paragraphs (a), (b)(2)(i), newly redesignated paragraph 
(b)(2)(ii), (c)(1) introductory text, (d)(1) introductory text, 
(d)(1)(v), and newly redesignated paragraphs (f)(1)(i), (f)(2)(i), and 
(f)(3) introductory text.
    The revisions read as follows:


Sec.  989.173   Reports.

    (a) Inventory reports. Each handler shall submit to the Committee 
as of the close of business on July 31 of each crop year, and not later 
than the following August 6, an inventory report which shall show, with 
respect to each varietal type of raisins held by such handler, the 
quantity of off-grade raisins segregated as to those for reconditioning 
and those for disposition as such. Provided, That, for the Other 
Seedless varietal type, handlers shall report the information required 
in this paragraph separately for the different types of Other Seedless 
raisins. Upon request by the Committee, each handler shall file at 
other times, and as of other dates, any of the said information which 
may reasonably be necessary and which the Committee shall specify in 
its request.
    (b) * * *
    (2) * * *
    (i) The total net weight of the standard raisins acquired during 
the reporting period; and
    (ii) The cumulative totals of such acquisitions from the beginning 
of the then current crop year.
* * * * *
    (c) * * *
    (1) Each month each handler who is not a processor shall furnish to 
the Committee, on an appropriate form provided by the Committee and so 
that it is received by the Committee not later than the seventh day of 
the month, a report showing the aggregate quantity of each varietal 
type of packed raisins and standard natural condition raisins which 
were shipped or otherwise disposed of by such handler during the 
preceding month (exclusive of transfers within the State of California 
between plants of any such handler and from such handler to other 
handlers): Provided, That, for the Other Seedless varietal type, 
handlers shall report such information for the different types of Other 
Seedless raisins. Such required information shall be segregated as to:
* * * * *
    (d) * * *
    (1) Any handler who transfers raisins to another handler within the 
State of California shall submit to the Committee not later than five 
calendar days following such transfer a report showing:
* * * * *
    (v) If packed, the transferring handler shall certify that such 
handler is transferring only acquired raisins that meet all applicable 
marketing order requirements, including reporting, incoming inspection, 
and assessments.
* * * * *
    (f) * * *
    (1) * * *
    (i) The quantity of raisins, segregated as to locations where they 
are stored and whether they are natural condition or packed;
* * * * *
    (2) * * *
    (i) The total net weight of the standard raisins acquired during 
the reporting period; and
* * * * *
    (3) Disposition report of organically-produced raisins. No later 
than the seventh day of each month, handlers who are not processors 
shall submit to the Committee, on an appropriate form provided by the 
Committee, a report showing the aggregate quantity of packed raisins 
and standard natural condition raisins which were shipped or otherwise 
disposed of by such handler during the preceding month (exclusive of 
transfer within the State of California between the plants of any such 
handler and from such handler to other handlers). Such information 
shall include:
* * * * *

Subpart Redesignated as Subpart C and Amended

0
31. Redesignate ``Subpart-Supplementary Regulations'' as subpart C and 
revise the heading to read as follows:

Subpart C--Supplementary Requirements

0
32. In Sec.  989.210:
0
a. Remove paragraphs (b), (c) and (e);
0
b. Redesignate paragraph (d) as (b), paragraph (f) as (c), and 
paragraph (g) as (d); and
0
c. Revise newly redesignated paragraph (b).
    The revisions read as follows:


Sec.  989.210  Handling of varietal types of raisins acquired pursuant 
to a weight dockage system.

* * * * *
    (b) Assessments. Assessments on any lot of raisins of the varietal 
types specified in paragraph (a) of this section acquired by a handler 
pursuant to a weight dockage system shall be applicable to the 
creditable weight of such lot.
* * * * *


Sec. Sec.  989.221 and 989.257  [Removed and reserved]

0
33. Sections 989.221 and 989.257 are removed and reserved.

Subpart Redesignated as Subpart D

0
34. Designate the subpart labeled ``Subpart-Assessment Rates'' as 
subpart D.

Subpart Removed

0
35. Subpart--Schedule of Payments is removed.

Subpart Redesignated as Subpart E

0
36. Designate the subpart labeled ``Conversion Factors'' as subpart E.

Subpart Redesignated as Subpart F

0
37. Designate the subpart labeled ``Quality Control'' as subpart F.

Subpart Redesignated as Subpart G

0
38. Designate the subpart labeled ``Antitrust Immunity and Liability'' 
as subpart G.

0
39. In part 989 revise all references to ``offgrade'' to read ``off-
grade'' and revise all references to ``Offgrade'' to read ``Off-
grade''.

0
40. In part 989 revise all references to ``nonnormal'' read ``non-
normal.''

0
41. In part 989 revise all references to ``committee'' to read 
``Committee.''


Sec. Sec.  989.58, 989.59, and 989.102   [Amended]

0
42. In the list below, for each section indicated in the left column, 
remove the title indicated in the middle column from wherever it 
appears in the section, and add the title indicated in the right 
column:

[[Page 53974]]



------------------------------------------------------------------------
          Section                     Remove                  Add
------------------------------------------------------------------------
989.58(d)(1)...............  Processed Products       Specialty Crops
                              Standardization and      Inspection
                              Inspection Branch.       Division.
989.59(d)..................  Processed Products       Specialty Crops
                              Standardization and      Inspection
                              Inspection Branch.       Division.
989.102....................  Processed Products       Specialty Crops
                              Branch, Fruit and        Inspection
                              Vegetable Division.      Division.
------------------------------------------------------------------------


    Dated: October 17, 2018.
Bruce Summers,
Administrator, Agricultural Marketing Service.
[FR Doc. 2018-23089 Filed 10-25-18; 8:45 am]
 BILLING CODE 3410-02-P