Processed Raspberry Promotion, Research, and Information Order; Termination, 49942-49944 [2019-20343]

Agencies

• Agricultural Marketing Service
• DEPARTMENT OF AGRICULTURE

[Federal Register Volume 84, Number 185 (Tuesday, September 24, 2019)]
[Rules and Regulations]
[Pages 49942-49944]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-20343]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1208

[Document Number AMS-SC-19-0047]


Processed Raspberry Promotion, Research, and Information Order; 
Termination

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule; termination order.

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SUMMARY: This final rule terminates the Processed Raspberry Promotion, 
Research, and Information Order (Order) in its entirety. This action is 
necessary because termination of the Order was favored by a majority of 
the eligible producers and importers voting in a referendum conducted 
from September 10 through October 5, 2018.

DATES: Effective Date: September 25, 2019.

FOR FURTHER INFORMATION CONTACT: Patricia Petrella, Deputy Director, 
Promotion and Economics Division, Specialty Crop Program, AMS, USDA, 
1400 Independence Avenue SW, Stop 0244, Room 1406-S, Washington, DC 
20250-0244, telephone (202)720-9915, facsimile (202) 205-2800, or 
electronic mail: [email protected].

SUPPLEMENTARY INFORMATION: This final rule affecting 7 CFR part 1208 is 
authorized under the Commodity Promotion, Research, and Information Act 
of 1996 (1996 Act) (7 U.S.C. 7411-7425). The Processed Raspberry 
Promotion, Research, and Information Order, referred to herein as the 
``Order'', is codified at 7 CFR part 1208.
    Prior documents in this proceeding: Termination of Assessments, 
February 20, 2019 [84 FR 4951], Continuance Referendum, July 25, 2018 
[83 FR 35153]; Processed Raspberry Promotion, Research, and Information 
Order, May 8, 2012 [77 FR 26911]; and Referendum Procedures, February 
8, 2010 [75 FR 6089].

Executive Orders 12866, 13563, and 13771

    Executive Orders 12866 and 13563 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, reducing costs, harmonizing rules and promoting flexibility. 
This final rule falls within a category of regulatory actions that the 
Office of Management and Budget (OMB) exempted from Executive Order 
12866 review. 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 OMB's 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).

Executive Order 13175

    This final rule has been reviewed in accordance with the 
requirements of Executive Order 13175, Consultation and Coordination 
with Indian Tribal Governments. The review reveals that this rule will 
not have substantial and direct effects on Tribal governments and

[[Page 49943]]

will not have significant Tribal implications.

Executive Order 12988

    In addition, this final rule has been reviewed under Executive 
Order 12988, Civil Justice Reform. It is not intended to have 
retroactive effect. Section 524 of the 1996 Act (7 U.S.C. 7423) 
provides that it shall not affect or preempt any other State or Federal 
law authorizing promotion or research relating to an agricultural 
commodity.
    Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.), 
the Office of Information and Regulatory Affairs designated this rule 
as not a major rule, as defined by 5 U.S.C. 804(2).
    Under section 519 of the 1996 Act (7 U.S.C. 7418), a person subject 
to an order may file a written petition with USDA stating that an 
order, any provision of an order, or any obligation imposed in 
connection with an order, is not established in accordance with the 
law, and request a modification of an order or an exemption from an 
order. Any petition filed challenging an order, any provision of an 
order, or any obligation imposed in connection with an order, shall be 
filed within two years after the effective date of an order, provision, 
or obligation subject to challenge in the petition. The petitioner will 
have the opportunity for a hearing on the petition. Thereafter, USDA 
will issue a ruling on the petition. The 1996 Act provides that the 
district court of the United States for any district in which the 
petitioner resides or conducts business shall have the jurisdiction to 
review a final ruling on the petition, if the petitioner files a 
complaint for that purpose not later than 20 days after the date of the 
entry of USDA's final ruling.

Background

    This final rule terminates the Order as prescribed in its Sec.  
1208.72 and section 522 of the 1996 Act. The 1996 Act authorizes a 
national processed raspberry promotion, research, and information 
program. In accordance with the 1996 Act, upon the request of the 
industry, USDA developed and implemented the Order, which became 
effective on May 9, 2012.
    The Order covered persons who grew 20,000 pounds or more of 
raspberries for processing in the United States or imported 20,000 
pounds or more of processed raspberries into the United States.
    Section 518(c) of the 1996 Act (7 U.S.C. 7417(c)), and Sec.  
1208.71(b) of the Order provide that the Secretary of Agriculture 
(Secretary) shall conduct a subsequent referendum among people subject 
to assessments. The Order states that subsequent referenda will be held 
every seven years to determine whether producers of raspberries for 
processing and importers of processed raspberries favor continuance of 
the Order. A referendum also may be held by request of 10 percent or 
more of eligible voters, by request of the Council established by the 
Order, or when the Secretary deems it necessary. The Order shall 
continue if it is favored by a majority of producers and importers 
voting in the referendum, who during a representative period, have been 
engaged in the production or importation of processed raspberries.
    In March 2018, USDA received a petition requesting a referendum 
from more than the required 10 percent of eligible producers of 
raspberries for processing and importers of processed raspberries. As 
such, a referendum was held from September 10 through October 5, 2018. 
The representative period for establishing voter eligibility was 
January 1 through December 31, 2017. Persons who grew 20,000 pounds or 
more of raspberries for processing in the United States or imported 
20,000 pounds or more of processed raspberries into the United States 
during the representative period and were subject to assessment during 
the representative period were eligible to vote. Notice of the 
referendum was published in the Federal Register on July 25, 2018 (83 
FR 35153). Termination of the Order was favored by 57 percent of the 
eligible producers and importers voting in the referendum.
    In addition, in accordance with Sec.  1208.73 of the Order, the 
USDA appointed three members of the Council to serve as trustees for 
the purpose of liquidating the assets of the Council.

Regulatory Flexibility Act Analysis

    In accordance with the Regulatory Flexibility Act (RFA) (5 U.S.C. 
601-612), AMS is required to examine the economic impact of this rule 
on small entities. Accordingly, AMS has considered the economic impact 
of this action on such entities.
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses subject to such actions so that small businesses will not be 
disproportionately burdened. The Small Business Administration (SBA) 
defines, in 13 CFR part 121, small agricultural producers as those 
having annual receipts of no more than $750,000 and small agricultural 
service firms (handlers and importers) as those having annual receipts 
of no more than $7.5 million.
    According to the Council, it is estimated that there are 160 
producers of raspberries for processing and 30 first handlers of 
raspberries for processing in the United States. Dividing the processed 
raspberry crop value for 2017 reported by the National Agricultural 
Statistics Service (NASS) of $102,691,456 \1\ by the number of 
producers yields an annual average producer revenue of $641,821. It is 
estimated that 75 percent of first handlers shipped under $7.5 million 
worth of processed raspberries.
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    \1\ Noncitrus Fruits and Nuts 2017 Summary, June 2018, USDA, 
National Agricultural Statistics Service, pg. 83.
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    Likewise, based on U.S. Customs data, it is estimated there are 136 
importers of processed raspberries. Using 2017 Customs data, nearly all 
importers, or 99 percent, import less than $7.5 million worth of 
processed raspberries annually. Thus, the majority of domestic 
producers, first handlers, and importers of processed raspberries would 
be considered small entities.
    Regarding the value of the commodity, as mentioned above, based on 
2017 NASS data, the value of the domestic crop was about $102 million. 
According to U.S. Customs data, the value of 2017 imports was about $55 
million.
    According to the Council, in 2017 there were 202 eligible producers 
and importers who paid about $1.2 million in assessments. When the 
Order was published in the Federal Register on May 8, 2012, the USDA 
stated that an anticipated $1.2 million of assessments would be 
collected from about 245 eligible entities. The assessment rate 
currently is one cent per pound of processed raspberries. This is the 
same rate that was set when the program first started. USDA has issued 
a rule to terminate the assessments which was effective on February 21, 
2019 (84 FR 4951).
    Although research and promotion order requirements are imposed on 
handlers and importers, the costs of the requirements are often passed 
on to producers. Termination of the Order, and the resulting regulatory 
relaxation, would therefore be expected to reduce costs for handlers, 
importers and producers.
    This action will not impose any additional reporting or 
recordkeeping requirements on either large or small producers or 
importers of processed raspberries.
    The Department has not identified any relevant Federal rules that 
duplicate, overlap, or conflict with this rule.

Termination Order

    Termination of the Order was favored by a majority of the eligible 
producers

[[Page 49944]]

and importers voting in a referendum conducted in September and October 
2018. The Act requires that, upon such a determination by referendum, 
the Department shall terminate the Order. The assets of the Council 
have been liquidated, and a final audit of the Council's books has been 
conducted.
    It is therefore ordered, that pursuant to section 522 of the Act, 
the Order is hereby terminated.
    It is also found and determined upon good cause that it is 
impracticable, unnecessary, and contrary to the public interest to give 
preliminary notice or to engage in further public procedure prior to 
putting this action into effect, and that good cause exists for not 
postponing the effective date of this action until 30 days after 
publication in the Federal Register because (1) this action relieves 
restrictions on handlers and importers by terminating the requirements 
of the Order; (2) termination of the Order was favored by a majority of 
qualified producers and importers voting in a referendum in September-
October 2018; and (3) the assets of the Council have been liquidated 
and a final audit of the Council's books has been conducted.

List of Subjects in 7 CFR Part 1208

    Administrative practice and procedure, Advertising, Consumer 
information, Marketing agreements, Raspberry promotion, Reporting and 
recordkeeping requirements.

PART 1208--[REMOVED]

0
For the reasons set forth in the preamble, and under the authority of 7 
U.S.C. 6802 et seq., 7 CFR part 1208 is removed.

    Dated: September 16, 2019.
Bruce Summers,
Administrator.
[FR Doc. 2019-20343 Filed 9-23-19; 8:45 am]
 BILLING CODE 3410-02-P