Marketing Order for Raisins Produced From Grapes Grown in California (M.O. No. 989); Hearing, 2178-2182 [2024-00492]
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Proposed Rules
Federal Register
Vol. 89, No. 9
Friday, January 12, 2024
This section of the FEDERAL REGISTER
contains notices to the public of the proposed
issuance of rules and regulations. The
purpose of these notices is to give interested
persons an opportunity to participate in the
rule making prior to the adoption of the final
rules.
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 989
[Doc. No. AMS–SC–23–0039; 23–J–0080]
Marketing Order for Raisins Produced
From Grapes Grown in California (M.O.
No. 989); Hearing
Agricultural Marketing Service,
USDA.
ACTION: Notification of hearing on
proposed rulemaking.
AGENCY:
Notice is hereby given of a
public hearing to receive evidence on
proposals recommended by the Raisin
Administrative Committee (Committee)
to amend Federal Marketing Order No.
989 (Order). The proposed amendments
would reduce Committee membership,
eliminate the designated cooperative
bargaining association member seat,
lower quorum requirements, remove
producer district representation, remove
the requirement for separate member
and alternate nominations, remove
factors for establishing marketing
policy, add language to clarify the
quality of reconditioned raisins, add
authority to accept voluntary
contributions, and add language
regarding ownership of intellectual
property. The Committee recommended
the proposed amendments after
determining a significant reduction in
the size of the industry has made it
increasingly difficult to fill Committee
positions and conduct business. The
Agricultural Marketing Service (AMS)
also proposes to make additional
changes to the Order as may be
necessary to conform to any amendatory
changes that result from the hearing.
DATES: The hearing will be held
February 13–14, 2024, from 9:00 a.m. to
5:00 p.m. Pacific Time (PT) and, if
deemed necessary by the presiding
administrative law judge, will continue
until such time or day as determined by
the judge.
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SUMMARY:
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The hearing will be held at
the office of the Raisin Administrative
Committee, 2445 Capitol Street, Suite
200, Fresno, California 93721.
FOR FURTHER INFORMATION CONTACT:
Christy Pankey, Marketing Specialist, or
Matthew Pavone, Chief, Rulemaking
Services Branch, Market Development
Division, Specialty Crops Program,
AMS, USDA, 1400 Independence
Avenue SW, Stop 0237, Washington, DC
20250–0237; Telephone: (202) 720–
8085, or Email: Christy.Pankey@
usda.gov or Matthew.Pavone@usda.gov.
Small businesses may request
information on this proceeding by
contacting Richard E. Lower, Market
Development Division, Specialty Crops
Program, AMS, USDA, 1400
Independence Avenue SW, Stop 0237,
Washington, DC 20250–0237;
Telephone: (202) 720–8085, or Email:
Richard.Lower@usda.gov.
SUPPLEMENTARY INFORMATION: This
administrative action is instituted
pursuant to the Agricultural Marketing
Agreement Act of 1937, as amended (7
U.S.C. 601–674), hereinafter referred to
as the ‘‘Act,’’ and the applicable rules of
practice and procedure governing
amendments to marketing agreements
and orders (7 CFR part 900). 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
Order 12866, 13563 and 14094. AMS
provided notice of the hearing to Tribal
Governments through the U.S.
Department of Agriculture’s (USDA)
Office of Tribal Relations.
The Regulatory Flexibility Act (5
U.S.C. 601 et seq.) seeks to ensure that
within the statutory authority of a
program, the regulatory and
informational requirements are tailored
to the size and nature of small
businesses. Interested persons are
invited to present evidence at the
hearing on the possible regulatory and
informational impacts of the proposals
on small businesses.
The amendments proposed herein
have been reviewed under Executive
Order 12988, Civil Justice Reform. They
are not intended to have retroactive
effect.
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
ADDRESSES:
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with the 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. 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
the entry of the ruling.
The Raisin Administrative Committee
(Committee) is established under
provisions of the Federal Marketing
Order No. 989 (Order), which regulates
the handling of raisins produced from
grapes grown in California. The Order
stipulates that the Committee may
recommend to the Secretary
amendments to the Order, and subject to
USDA’s approval, shall establish rules
and procedures as may be necessary to
accomplish the purposes of the Act and
the efficient administration of the Order.
On October 20, 2022, the Committee
recommended to USDA proposals to
amend Committee size, composition,
producer representation, and quorum
requirements; to amend nomination
procedures for small cooperative and
independent producers; to remove two
factors for establishing marketing
policy, and to add language to clarify
the quality of reconditioned raisins. The
Committee voted on the above proposed
amendments, 20 in favor and 10
opposed, at its August 17, 2022,
meeting. On August 16, 2023, the
Committee also voted to recommend to
USDA the inclusion of additional
proposals that would add authority to
accept voluntary contributions and add
language regarding Committee
ownership of intellectual property. AMS
received the Committee’s unanimous
proposal for those two
recommendations on August 21, 2023.
After reviewing the proposals and
other information submitted by the
Committee, USDA has decided to
schedule this matter for a public
hearing. Testimony is invited on the
following proposals or appropriate
alternatives or modifications to such
proposals as summarized below. These
proposals submitted by the Committee
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Committee size. The amendment
proposed is as follows:
• Amend § 989.29 to eliminate the
requirement for separate nominations
for independent producers or producers
affiliated with small cooperative
marketing associations.
have not received the approval of
USDA.
Proposal 1—Amend Committee
Membership Size and Composition,
Lower Quorum Requirements, and
Remove Producer District
Representation
The Committee recommended
reducing the Committee’s size and
lowering quorum requirements after
determining that a substantial reduction
in the size of the California raisin
industry over the past 20 years has
made it increasingly difficult to fill
Committee positions and at times meet
quorum requirements. Further, the
Committee recommended the
elimination of the member and alternate
position dedicated to the cooperative
bargaining association, removal of
producer district representation, and the
addition of an unaffiliated producer
member seat. The Committee believes
the designated cooperative bargaining
association position is no longer
warranted after a substantial decrease in
total raisin acquisitions. The
amendments proposed are as follows:
• Amend § 989.26 by reducing
Committee membership from 47 to 21
members. Corresponding changes would
also be made to § 989.126.
• Remove producer district
representation in § 989.26(c), and add
an unaffiliated producer member seat to
§ 989.126(a)(1). Corresponding changes
would also remove §§ 989.22 and
989.122, and references to producer
districts in §§ 989.29(b)(2), 989.126(a)
and 989.129.
• Remove the designated bargaining
association seat in § 989.26.
Corresponding changes would also
remove the reference to the bargaining
association position in § 989.30.
• Amend § 989.38 by lowering
quorum requirements from 25 to 14.
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Proposal 2—Remove Separate
Nomination Procedures for
Independent and Small Cooperative
Producers
Separate nomination procedures for
independent producers or producers
affiliated with small cooperative
marketing associations’ member and
alternate positions were added to the
Order in 2018 due to the number of
vacancies on the Committee, and to
encourage participation by alternate
members. However, the Committee now
recommends eliminating the
requirement that independent and small
cooperative producers must be
nominated separately for either a
member or alternate position as it would
not be necessary with a reduced
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Proposal 3—Update Marketing Policy
and Quality Standards for
Reconditioned Raisins
The Committee recommended
removing factor number 4, ‘‘An
estimated desirable carryout at the end
of the crop year;’’ and part of factor
number 5, ‘‘, considering the estimated
world raisin supply and demand
situation’’ from the Committee’s
marketing policy considerations. The
Committee determined that factor 4 is
no longer necessary since the Order no
longer regulates volume, the authority
for which was removed in 2018. Factor
number 5 will continue to be part of the
marketing policy. However,
consideration of part of factor number 5
relied on USDA’s National Agricultural
Statistic Service (NASS) ‘‘Raisins:
World Market and Trade Report’’ to
determine the estimated world raisin
supply and demand situation. NASS no
longer publishes the report, and the
Committee found it would be cost
prohibitive to acquire such information
by other means.
Additionally, the Committee
recommended adding language to
§§ 989.24 and 989.58 clarifying that the
quality of reconditioned raisins is the
same as that of standard fruit. The
Committee believes that there is a
negative impression in the raisin market
that the quality of reconditioned raisins
that have been reworked and
reinspected is somehow diminished.
The Committee believes that the
proposed language will help to dispel
this negative impression, stating that
natural condition raisins are any raisins
that have been inspected and meet the
Order’s minimum requirements, which
would include reconditioned fruit. The
amendments proposed are as follows:
• In § 989.54(a), remove factor
number 4 ‘‘An estimated desirable
carryout at the end of the crop year;’’
and the last part of factor number 5 ‘‘,
considering the estimated world raisin
supply and demand situation.’’
• Amend §§ 989.24 and 989.58 by
adding language to clarify the quality of
reconditioned raisins as standard
raisins.
Proposal 4—Add Contribution
Authority and Patent/Trademark
Authority
The Committee recommended the
addition of authority to accept voluntary
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contributions, and recommended
adding language that would establish
provisions for the collection of
voluntary contributions by the
Committee. The Committee further
recommended the addition of authority
related to Committee ownership of and
rights to intellectual property, including
authority to collect royalties from
intellectual property. The amendments
proposed are as follows:
• Add § 989.63 to establish the
authority to accept voluntary
contributions.
• Add § 989.64 to establish authority
related to ownership of and rights to
intellectual property and add authority
for the collection of rents/royalties from
the same.
In addition to the proposed
amendments submitted by the
Committee, AMS proposes to make any
such conforming changes to the Order
as may be necessary to conform to any
amendment that may result from the
proposals, or to correct minor
inconsistencies and typographical
errors.
USDA will oversee this formal
rulemaking proceeding. The issuance of
this notice of public hearing is the first
of several steps in the amendatory
rulemaking process, including the
issuance of a Recommended Decision,
public comment period, Secretary’s
Decision, and if the prior steps prove
favorable, a grower referendum.
At the hearing, interested persons
may provide testimony in support of or
in opposition to the proposed
amendments. Interested persons are
invited to testify on the possible
regulatory and informational impacts of
the proposed amendments on small
businesses.
Interested persons will also be
provided the opportunity to file briefs in
support of or in opposition to the
proposed amendments after the hearing,
as well as file exceptions to any
Recommended Decision that may be
issued. Finally, any proposed
amendments will be required to be
approved in a grower referendum before
they can be implemented.
USDA will hold the public hearing for
the purposes of: (i) receiving evidence
about the economic and marketing
conditions which relate to the proposed
amendments of the Order; (ii)
determining whether there is a need for
the proposed amendments to the Order;
(iii) determining if there are other
alternatives to the proposed
amendments or duplicates of the
proposed amendments; and (iv)
determining whether the proposed
amendments or appropriate
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modifications thereof will tend to
effectuate the declared policy of the Act.
All persons wishing to submit written
material as evidence at the hearing
should be prepared to submit four
copies of such material at the hearing.
Four copies of prepared testimony for
presentation at the hearing should also
be made available. To the extent
practicable, eight additional copies of
evidentiary exhibits and testimony
prepared as an exhibit should be made
available to USDA representatives on
the day of appearance at the hearing.
Any requests for preparation of USDA
data for this rulemaking hearing should
be made at least 10 days prior to the
beginning of the hearing.
From the time the notice of hearing is
issued until the issuance of a final
decision in this proceeding, USDA
employees involved in the decisional
process are prohibited from discussing
the merits of the hearing issues on an ex
parte basis with any person having an
interest in the proceeding. The
prohibition applies to employees who
are or may reasonably be expected to be
involved in the decisional process of the
proceeding in the following
organizational units: Office of the
Secretary of Agriculture; Office of the
Administrator, AMS; Office of the
General Counsel; and the Specialty
Crops Program, AMS. Procedural
matters are not subject to the above
prohibition and may be discussed at any
time.
Testimony is invited on the
recommended proposals to amend 7
CFR part 989, or appropriate
alternatives or modifications to such
proposals, as follows:
List of Subjects in 7 CFR Part 989
Grapes, Marketing agreements,
Raisins, Reporting and recordkeeping
requirements.
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.
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§ 989.22
[Removed and Reserved]
2. Remove and reserve § 989.22.
3. Amend § 989.24 by revising
paragraph (b) to read as follows:
■
■
§ 989.24 Standard raisins, off-grade
raisins, other failing raisins, and raisin
residual material.
*
*
*
*
*
(b) Off-grade raisins means raisins
which do not meet the then effective
minimum grade and condition
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standards for natural condition raisins:
Provided, That raisins which are
certified as off-grade raisins shall
continue to be such until successfully
reconditioned as standard raisins or
become ‘‘other failing raisins.’’
*
*
*
*
*
■ 4. Revise § 989.26 to read as follows:
§ 989.26
Establishment and membership.
A Raisin Administrative Committee is
hereby established consisting of 21
members of whom 12 shall represent
producers, 8 shall represent handlers
and 1 shall be a public member.
(a) The producer members shall be
selected as follows:
(1) Producer members representing
the cooperative marketing association(s)
shall be members of such association(s)
engaged in the handling of raisins, each
of which acquired not less than 10
percent of the total raisin acquisitions
during the preceding crop year, and
those members shall be equal to the
product, rounded to the nearest whole
number, obtained by multiplying 12 by
the ratio the cooperative marketing
association(s) raisin acquisitions are to
the acquisitions of all handlers during
the preceding crop year.
(2) Producer members representing
cooperative bargaining association(s)
shall be members of such association(s),
and the number of those members shall
be equal to the product, rounded to the
nearest whole number, obtained by
multiplying 12 by the ratio the raisins
acquired by handlers from bargaining
association members are to the total
acquisitions of all handlers during the
preceding crop year.
(3) All other producer members, who
shall not be members of a cooperative
bargaining association(s), cooperative
marketing association(s) engaged in the
handling of raisins which acquired 10
percent or more of the total acquisitions
during the preceding crop year, nor sold
for cash to cooperative marketing
association(s), shall represent all
producers not defined in paragraphs
(a)(1) or (2) of this section and shall be
selected as designated in the rules and
regulations.
(b) The handler members shall be
divided into two groups and include the
following:
(1) Handler members shall be selected
from and represent cooperative
marketing association(s) engaged in the
handling of raisins each of which
acquired not less than 10 percent of the
total raisin acquisitions during the
preceding crop year, and the number of
those members shall be equal to the
product, rounded to the nearest whole
number, obtained by multiplying 8 by
the ratio of the cooperative marketing
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association(s) raisin acquisitions are to
the total acquisitions of all handlers
during the preceding crop year.
(2) The remaining handler members
shall be selected from and represent all
other handlers, which would include all
independent handlers and small
cooperative marketing association(s)
who acquired less than 10 percent of the
total raisin acquisitions during the
preceding crop year. Handler nominees
for this group shall be nominated by all
handlers in the group in a manner
determined by the Committee, with the
approval of the Secretary, and specified
in the rules and regulations.
(c) The public member shall be
nominated by the Committee and
selected by the Secretary as public
member.
(d) For each member of the Committee
there shall be an alternate member who
shall have the same qualifications as the
member for whom they are an alternate.
■ 5. Amend § 989.29 by revising
paragraphs (a) and (b)(1) and (2) to read
as follows:
§ 989.29 Initial members and nomination
of successor members.
(a) Initial members. Members and
alternate members of the Committee
serving immediately prior to the
effective date of this amended subpart
shall, if thereafter they are eligible, serve
on the Committee until April 30, 2026,
and until their respective successors
have been selected and qualified.
(b) * * *
(1) The Committee shall notify the
cooperative marketing association(s)
engaged in handling not less than 10
percent of the total raisin acquisitions
during the preceding crop year, and
cooperative bargaining association(s), of
the date by which nominations to fill
member and alternate member positions
shall be made. The Committee shall give
reasonable publicity of a meeting or
meetings of producers who are not
members of cooperative bargaining
association(s), or cooperative marketing
association(s) which handled 10 percent
or more of the total raisin acquisitions
during the preceding crop year, and of
independent handlers and cooperative
marketing association(s) who handled
less than 10 percent of the total raisin
acquisitions during the preceding crop
year, for the purpose of making
nominations to fill the member and
alternate member positions prescribed
in § 989.26 (a)(3) and (b): Provided, That
member and alternate member
nominations by independent handlers
and cooperative marketing
association(s) who acquired less than 10
percent of the total raisin acquisitions
during the preceding crop year may be
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made to the Committee by mail in lieu
of meetings.
(2)(i) Any producer representing
independent producers and producers
who are affiliated with cooperative
marketing association(s) handling less
than 10 percent of the total raisin
acquisitions during the preceding crop
year must have produced grapes which
were made into raisins.
(ii) Each such producer whose name
is offered in nomination 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. The producer candidate
receiving the highest number of votes
shall be designated as the first member
nominee for a member position in
which they qualify, the second highest
shall be designated as the second
member nominee for a member position
which they qualify, until nominees for
all producer member positions have
been filled. Similarly, after all producer
member positions have been filled, the
producer candidate receiving the
highest number of votes shall be
designated as the first alternate member
nominee for a member position in
which they qualify, the second highest
shall be designated as the second
alternate member nominee for a member
position in which they qualify, until
nominees for all alternate member
positions have been filled.
(iii) In the event there are no qualified
candidates for any designated producer
member or alternate member positions,
such positions may be filled by other
producer candidates not otherwise
nominated for a position.
(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
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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.
*
*
*
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*
■ 6. Revise § 989.30 to read as follows:
§ 989.30
Selection.
The Secretary shall select producer,
handler, and public members and
alternate members in the number
specified in § 989.26, as applicable, and
with the qualifications specified in
§ 989.27. Such selections may be made
from nominations certified pursuant to
§ 989.29 or from other eligible
producers, or handlers.
§ 989.38
[Amended]
7. Amend § 989.38 by removing the
numeral ‘‘25’’ and adding in its place
the numeral ‘‘14’’.
■
§ 989.54
[Amended]
8. Amend § 989.54 by:
a. Removing paragraph (a)(4);
b. Redesignating paragraphs (a)(5)
through (9) as paragraphs (a)(4) through
(8), respectively; and
■ c. In redesignated paragraph (a)(4),
removing the text ‘‘, considering the
estimated world raisin supply and
demand situation’’.
■ 9. Amend § 989.58 by adding
paragraph (g) to read as follows:
■
■
■
§ 989.58
Natural condition raisins.
*
*
*
*
*
(g) All raisins which have been
inspected and certified as meeting the
minimum grade, quality, and condition
standards established pursuant to this
section, whether upon incoming
inspection or upon later inspection after
reconditioning, shall be determined to
be standard raisins, labelled
accordingly, and shall be eligible for
commercial disposition as natural
condition raisins or packed raisins in
normal outlets.
■ 10. Add § 989.63 to read as follows:
§ 989.63
Contributions.
The Committee may accept voluntary
contributions: Provided, That such
contributions shall only be used to pay
expenses authorized under § 989.79.
Furthermore, contributions shall be free
from any encumbrances by the donor
and the Committee shall retain complete
control of their use.
■ 11. Add § 989.64 to read as follows:
§ 989.64 Patents, copyrights, trademarks,
inventions, product formulations, and
publications.
(a) Any patents, copyrights,
trademarks, inventions, product
formulations, and publications
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developed through the use of funds
received by the Committee under this
subpart shall be the property of the U.S.
Government, as represented by the
Committee, and shall, along with any
rents, royalties, residual payments, or
other income from the rental, sales,
leasing, franchising, or other uses of
such patents, copyrights, trademarks,
inventions, product formulations, or
publications, inure to the benefit of the
Committee; shall be considered income
subject to the same fiscal, budget, and
audit controls as other funds of the
Committee and may be licensed subject
to approval by the Secretary.
(b) Upon termination of this subpart,
§ 989.92 shall apply to determine
disposition of any property, including
patents, copyrights, trademarks,
inventions, product formulations, and
publications developed through the use
of funds received by the Committee
under this subpart.
(c) Should patents, copyrights,
trademarks, inventions, product
formulations, or publications be
developed through the use of funds
collected by the Committee under this
subpart and funds contributed by
another organization or person,
ownership and related rights to such
patents, copyrights, trademarks,
inventions, product formulations, or
publications shall be determined by
agreement between the Committee and
the person or organization contributing
funds towards the development of such
patents, copyrights, inventions,
trademarks, product formulations, or
publications in a manner consistent
with paragraph (a) of this section.
(d) Should any patents, copyrights,
trademarks, inventions, product
formulations, or publications, be
licensed to the Committee by another
person or organization, the rights and
obligations regarding such licensed
patents, copyrights, trademarks,
inventions, product formulations, or
publications shall be determined by
agreement between the Committee and
the person or organization permitting
licensure in a manner consistent with
paragraph (a) of this section.
§ 989.122
[Removed and Reserved]
12. Remove and reserve § 989.122.
■ 13. Revise § 989.126 to read as
follows:
■
§ 989.126 Representation of the
Committee.
(a) Pursuant to § 989.26(a)(3), and
commencing with the term of office
beginning May 1, 2026, apportionment
of independent and small cooperative
producers shall be:
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(1) One producer member, selected
from and representing all producers,
who is unaffiliated with any handler
(including, but not limited to,
ownership, employment, or agent of any
handler, and whose family members are
similarly unaffiliated with any handler);
and
(2) The remaining producer
member(s) selected from and
representing all other independent and
small cooperative producers.
(b) Pursuant to section § 989.26(b)(2),
and commencing with the term of office
beginning May 1, 2026, apportionment
of the independent and small
cooperative marketing association
handlers shall be:
(1) Two members selected from and
representing the four handler(s) other
than major cooperative marketing
association handler(s) who acquired the
largest percentage of the total raisin
acquisitions during the preceding crop
year; and
(2) The remaining member(s) selected
from and representing all other
handlers, including small cooperative
marketing association handler(s) and all
processors.
■ 13. Revise § 989.129 to read as
follows:
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§ 989.129
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. 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
VerDate Sep<11>2014
16:21 Jan 11, 2024
Jkt 262001
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.
Erin Morris,
Associate Administrator, Agricultural
Marketing Service.
publish for public availability any
comment submitted to its public docket.
Send paper submissions to:
CC:PA:01:PR (REG–132569–17), Room
5203, Internal Revenue Service, P.O.
Box 7604, Ben Franklin Station,
Washington, DC 20044.
FOR FURTHER INFORMATION CONTACT:
Concerning the proposed regulations,
Office of Associate Chief Counsel
(Passthroughs & Special Industries) at
(202) 317–6853 (not a toll-free number);
concerning submissions of comments or
the public hearing, Vivian Hayes, (202)
317–6901 (not toll-free number) or by
email to publichearings@irs.gov
(preferred).
[FR Doc. 2024–00492 Filed 1–11–24; 8:45 am]
SUPPLEMENTARY INFORMATION:
BILLING CODE 3410–02–P
Background
DEPARTMENT OF THE TREASURY
Internal Revenue Service
Need for Correction
26 CFR Part 1
As published, the notice of proposed
rulemaking (REG–132569–17) contains
errors that need to be corrected.
[REG–132569–17]
RIN 1545–BO40
Definition of Energy Property and
Rules Applicable to the Energy Credit;
Correction
Internal Revenue Service (IRS),
Treasury.
ACTION: Notice of proposed rulemaking;
correction.
AGENCY:
This document corrects a
notice of proposed rulemaking (REG–
132569–17) published in the Federal
Register on November 22, 2023,
containing proposed regulations that
would amend the regulations relating to
the energy credit for the taxable year in
which eligible energy property is placed
in service.
DATES: Written or electronic comments
are still being accepted and must be
received by January 22, 2024. The
public hearing on these proposed
regulations is scheduled to be held on
February 20, 2024, at 10 a.m. ET.
Requests to speak and outlines of topics
to be discussed at the public hearing
must be received by January 22, 2024.
ADDRESSES: Commenters are strongly
encouraged to submit public comments
electronically. Submit electronic
submissions via the Federal
eRulemaking Portal at https://
www.regulations.gov (indicate IRS and
REG–132569–17). Once submitted to the
Federal eRulemaking Portal, comments
cannot be edited or withdrawn. The
Department of the Treasury (the
Treasury Department) and the IRS will
SUMMARY:
PO 00000
Frm 00005
Fmt 4702
The notice of proposed rulemaking
(REG–132569–17) that is the subject of
this correction is under section 48 of the
Internal Revenue Code.
Sfmt 4702
Correction of Publication
Accordingly, the notice of proposed
rulemaking (REG–132569–17), which
was the subject of FR Doc. 2023–25539,
published on November 22, 2023, at 88
FR 82188 is corrected:
§ 1.48–9
[Corrected]
1. On page 82214, the third column,
the third line of paragraph (f)(2)(ii)(A) is
corrected to read, ‘‘paragraph (f)(2)(ii)(B)
of this section,’’.
■
§ 1.48–13
[Corrected]
2. On page 82218, the first column,
the third line of paragraph (e)(1) is
corrected to read, ‘‘generating energy
property, use the’’.
■ 3. On page 82218, the first column,
the fourth line of paragraph (e)(2) is
corrected to read, ‘‘9(e)(10)(ii)), use the
storage device’s’’.
■
§ 1.48–14
[Corrected]
4. On page 82219, the second column,
the tenth line of paragraph (c)(2) is
corrected to read, ‘‘paragraph (f)(8) of
this section, in no’’.
■ 5. On page 82220, the second column,
the fifth line from the bottom of
paragraph (f)(2)(i) is corrected to read,
‘‘used as an integral part (as defined in’’.
■ 6. On page 82221, the second column,
first line of paragraph (f)(6)(i) is
corrected to read, ‘‘or any successor
form(s), filed with its’’.
■ 7. On page 82221, the second column,
the eighth line from the bottom of
■
E:\FR\FM\12JAP1.SGM
12JAP1
Agencies
[Federal Register Volume 89, Number 9 (Friday, January 12, 2024)]
[Proposed Rules]
[Pages 2178-2182]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-00492]
========================================================================
Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
========================================================================
Federal Register / Vol. 89, No. 9 / Friday, January 12, 2024 /
Proposed Rules
[[Page 2178]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 989
[Doc. No. AMS-SC-23-0039; 23-J-0080]
Marketing Order for Raisins Produced From Grapes Grown in
California (M.O. No. 989); Hearing
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Notification of hearing on proposed rulemaking.
-----------------------------------------------------------------------
SUMMARY: Notice is hereby given of a public hearing to receive evidence
on proposals recommended by the Raisin Administrative Committee
(Committee) to amend Federal Marketing Order No. 989 (Order). The
proposed amendments would reduce Committee membership, eliminate the
designated cooperative bargaining association member seat, lower quorum
requirements, remove producer district representation, remove the
requirement for separate member and alternate nominations, remove
factors for establishing marketing policy, add language to clarify the
quality of reconditioned raisins, add authority to accept voluntary
contributions, and add language regarding ownership of intellectual
property. The Committee recommended the proposed amendments after
determining a significant reduction in the size of the industry has
made it increasingly difficult to fill Committee positions and conduct
business. The Agricultural Marketing Service (AMS) also proposes to
make additional changes to the Order as may be necessary to conform to
any amendatory changes that result from the hearing.
DATES: The hearing will be held February 13-14, 2024, from 9:00 a.m. to
5:00 p.m. Pacific Time (PT) and, if deemed necessary by the presiding
administrative law judge, will continue until such time or day as
determined by the judge.
ADDRESSES: The hearing will be held at the office of the Raisin
Administrative Committee, 2445 Capitol Street, Suite 200, Fresno,
California 93721.
FOR FURTHER INFORMATION CONTACT: Christy Pankey, Marketing Specialist,
or Matthew Pavone, Chief, Rulemaking Services Branch, Market
Development Division, Specialty Crops Program, AMS, USDA, 1400
Independence Avenue SW, Stop 0237, Washington, DC 20250-0237;
Telephone: (202) 720-8085, or Email: [email protected] or
[email protected].
Small businesses may request information on this proceeding by
contacting Richard E. Lower, Market Development Division, Specialty
Crops Program, AMS, USDA, 1400 Independence Avenue SW, Stop 0237,
Washington, DC 20250-0237; Telephone: (202) 720-8085, or Email:
[email protected].
SUPPLEMENTARY INFORMATION: This administrative action is instituted
pursuant to the Agricultural Marketing Agreement Act of 1937, as
amended (7 U.S.C. 601-674), hereinafter referred to as the ``Act,'' and
the applicable rules of practice and procedure governing amendments to
marketing agreements and orders (7 CFR part 900). 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 Order 12866, 13563 and 14094. AMS provided notice of the
hearing to Tribal Governments through the U.S. Department of
Agriculture's (USDA) Office of Tribal Relations.
The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) seeks to
ensure that within the statutory authority of a program, the regulatory
and informational requirements are tailored to the size and nature of
small businesses. Interested persons are invited to present evidence at
the hearing on the possible regulatory and informational impacts of the
proposals on small businesses.
The amendments proposed herein have been reviewed under Executive
Order 12988, Civil Justice Reform. They are not intended to have
retroactive effect.
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 the 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. 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 the entry of the ruling.
The Raisin Administrative Committee (Committee) is established
under provisions of the Federal Marketing Order No. 989 (Order), which
regulates the handling of raisins produced from grapes grown in
California. The Order stipulates that the Committee may recommend to
the Secretary amendments to the Order, and subject to USDA's approval,
shall establish rules and procedures as may be necessary to accomplish
the purposes of the Act and the efficient administration of the Order.
On October 20, 2022, the Committee recommended to USDA proposals to
amend Committee size, composition, producer representation, and quorum
requirements; to amend nomination procedures for small cooperative and
independent producers; to remove two factors for establishing marketing
policy, and to add language to clarify the quality of reconditioned
raisins. The Committee voted on the above proposed amendments, 20 in
favor and 10 opposed, at its August 17, 2022, meeting. On August 16,
2023, the Committee also voted to recommend to USDA the inclusion of
additional proposals that would add authority to accept voluntary
contributions and add language regarding Committee ownership of
intellectual property. AMS received the Committee's unanimous proposal
for those two recommendations on August 21, 2023.
After reviewing the proposals and other information submitted by
the Committee, USDA has decided to schedule this matter for a public
hearing. Testimony is invited on the following proposals or appropriate
alternatives or modifications to such proposals as summarized below.
These proposals submitted by the Committee
[[Page 2179]]
have not received the approval of USDA.
Proposal 1--Amend Committee Membership Size and Composition, Lower
Quorum Requirements, and Remove Producer District Representation
The Committee recommended reducing the Committee's size and
lowering quorum requirements after determining that a substantial
reduction in the size of the California raisin industry over the past
20 years has made it increasingly difficult to fill Committee positions
and at times meet quorum requirements. Further, the Committee
recommended the elimination of the member and alternate position
dedicated to the cooperative bargaining association, removal of
producer district representation, and the addition of an unaffiliated
producer member seat. The Committee believes the designated cooperative
bargaining association position is no longer warranted after a
substantial decrease in total raisin acquisitions. The amendments
proposed are as follows:
Amend Sec. 989.26 by reducing Committee membership from
47 to 21 members. Corresponding changes would also be made to Sec.
989.126.
Remove producer district representation in Sec.
989.26(c), and add an unaffiliated producer member seat to Sec.
989.126(a)(1). Corresponding changes would also remove Sec. Sec.
989.22 and 989.122, and references to producer districts in Sec. Sec.
989.29(b)(2), 989.126(a) and 989.129.
Remove the designated bargaining association seat in Sec.
989.26. Corresponding changes would also remove the reference to the
bargaining association position in Sec. 989.30.
Amend Sec. 989.38 by lowering quorum requirements from 25
to 14.
Proposal 2--Remove Separate Nomination Procedures for Independent and
Small Cooperative Producers
Separate nomination procedures for independent producers or
producers affiliated with small cooperative marketing associations'
member and alternate positions were added to the Order in 2018 due to
the number of vacancies on the Committee, and to encourage
participation by alternate members. However, the Committee now
recommends eliminating the requirement that independent and small
cooperative producers must be nominated separately for either a member
or alternate position as it would not be necessary with a reduced
Committee size. The amendment proposed is as follows:
Amend Sec. 989.29 to eliminate the requirement for
separate nominations for independent producers or producers affiliated
with small cooperative marketing associations.
Proposal 3--Update Marketing Policy and Quality Standards for
Reconditioned Raisins
The Committee recommended removing factor number 4, ``An estimated
desirable carryout at the end of the crop year;'' and part of factor
number 5, ``, considering the estimated world raisin supply and demand
situation'' from the Committee's marketing policy considerations. The
Committee determined that factor 4 is no longer necessary since the
Order no longer regulates volume, the authority for which was removed
in 2018. Factor number 5 will continue to be part of the marketing
policy. However, consideration of part of factor number 5 relied on
USDA's National Agricultural Statistic Service (NASS) ``Raisins: World
Market and Trade Report'' to determine the estimated world raisin
supply and demand situation. NASS no longer publishes the report, and
the Committee found it would be cost prohibitive to acquire such
information by other means.
Additionally, the Committee recommended adding language to
Sec. Sec. 989.24 and 989.58 clarifying that the quality of
reconditioned raisins is the same as that of standard fruit. The
Committee believes that there is a negative impression in the raisin
market that the quality of reconditioned raisins that have been
reworked and reinspected is somehow diminished. The Committee believes
that the proposed language will help to dispel this negative
impression, stating that natural condition raisins are any raisins that
have been inspected and meet the Order's minimum requirements, which
would include reconditioned fruit. The amendments proposed are as
follows:
In Sec. 989.54(a), remove factor number 4 ``An estimated
desirable carryout at the end of the crop year;'' and the last part of
factor number 5 ``, considering the estimated world raisin supply and
demand situation.''
Amend Sec. Sec. 989.24 and 989.58 by adding language to
clarify the quality of reconditioned raisins as standard raisins.
Proposal 4--Add Contribution Authority and Patent/Trademark Authority
The Committee recommended the addition of authority to accept
voluntary contributions, and recommended adding language that would
establish provisions for the collection of voluntary contributions by
the Committee. The Committee further recommended the addition of
authority related to Committee ownership of and rights to intellectual
property, including authority to collect royalties from intellectual
property. The amendments proposed are as follows:
Add Sec. 989.63 to establish the authority to accept
voluntary contributions.
Add Sec. 989.64 to establish authority related to
ownership of and rights to intellectual property and add authority for
the collection of rents/royalties from the same.
In addition to the proposed amendments submitted by the Committee,
AMS proposes to make any such conforming changes to the Order as may be
necessary to conform to any amendment that may result from the
proposals, or to correct minor inconsistencies and typographical
errors.
USDA will oversee this formal rulemaking proceeding. The issuance
of this notice of public hearing is the first of several steps in the
amendatory rulemaking process, including the issuance of a Recommended
Decision, public comment period, Secretary's Decision, and if the prior
steps prove favorable, a grower referendum.
At the hearing, interested persons may provide testimony in support
of or in opposition to the proposed amendments. Interested persons are
invited to testify on the possible regulatory and informational impacts
of the proposed amendments on small businesses.
Interested persons will also be provided the opportunity to file
briefs in support of or in opposition to the proposed amendments after
the hearing, as well as file exceptions to any Recommended Decision
that may be issued. Finally, any proposed amendments will be required
to be approved in a grower referendum before they can be implemented.
USDA will hold the public hearing for the purposes of: (i)
receiving evidence about the economic and marketing conditions which
relate to the proposed amendments of the Order; (ii) determining
whether there is a need for the proposed amendments to the Order; (iii)
determining if there are other alternatives to the proposed amendments
or duplicates of the proposed amendments; and (iv) determining whether
the proposed amendments or appropriate
[[Page 2180]]
modifications thereof will tend to effectuate the declared policy of
the Act.
All persons wishing to submit written material as evidence at the
hearing should be prepared to submit four copies of such material at
the hearing. Four copies of prepared testimony for presentation at the
hearing should also be made available. To the extent practicable, eight
additional copies of evidentiary exhibits and testimony prepared as an
exhibit should be made available to USDA representatives on the day of
appearance at the hearing. Any requests for preparation of USDA data
for this rulemaking hearing should be made at least 10 days prior to
the beginning of the hearing.
From the time the notice of hearing is issued until the issuance of
a final decision in this proceeding, USDA employees involved in the
decisional process are prohibited from discussing the merits of the
hearing issues on an ex parte basis with any person having an interest
in the proceeding. The prohibition applies to employees who are or may
reasonably be expected to be involved in the decisional process of the
proceeding in the following organizational units: Office of the
Secretary of Agriculture; Office of the Administrator, AMS; Office of
the General Counsel; and the Specialty Crops Program, AMS. Procedural
matters are not subject to the above prohibition and may be discussed
at any time.
Testimony is invited on the recommended proposals to amend 7 CFR
part 989, or appropriate alternatives or modifications to such
proposals, as follows:
List of Subjects in 7 CFR Part 989
Grapes, Marketing agreements, Raisins, Reporting and recordkeeping
requirements.
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.
Sec. 989.22 [Removed and Reserved]
0
2. Remove and reserve Sec. 989.22.
0
3. Amend Sec. 989.24 by revising paragraph (b) to read as follows:
Sec. 989.24 Standard raisins, off-grade raisins, other failing
raisins, and raisin residual material.
* * * * *
(b) Off-grade raisins means raisins which do not meet the then
effective minimum grade and condition standards for natural condition
raisins: Provided, That raisins which are certified as off-grade
raisins shall continue to be such until successfully reconditioned as
standard raisins or become ``other failing raisins.''
* * * * *
0
4. Revise Sec. 989.26 to read as follows:
Sec. 989.26 Establishment and membership.
A Raisin Administrative Committee is hereby established consisting
of 21 members of whom 12 shall represent producers, 8 shall represent
handlers and 1 shall be a public member.
(a) The producer members shall be selected as follows:
(1) Producer members representing the cooperative marketing
association(s) shall be members of such association(s) engaged in the
handling of raisins, each of which acquired not less than 10 percent of
the total raisin acquisitions during the preceding crop year, and those
members shall be equal to the product, rounded to the nearest whole
number, obtained by multiplying 12 by the ratio the cooperative
marketing association(s) raisin acquisitions are to the acquisitions of
all handlers during the preceding crop year.
(2) Producer members representing cooperative bargaining
association(s) shall be members of such association(s), and the number
of those members shall be equal to the product, rounded to the nearest
whole number, obtained by multiplying 12 by the ratio the raisins
acquired by handlers from bargaining association members are to the
total acquisitions of all handlers during the preceding crop year.
(3) All other producer members, who shall not be members of a
cooperative bargaining association(s), cooperative marketing
association(s) engaged in the handling of raisins which acquired 10
percent or more of the total acquisitions during the preceding crop
year, nor sold for cash to cooperative marketing association(s), shall
represent all producers not defined in paragraphs (a)(1) or (2) of this
section and shall be selected as designated in the rules and
regulations.
(b) The handler members shall be divided into two groups and
include the following:
(1) Handler members shall be selected from and represent
cooperative marketing association(s) engaged in the handling of raisins
each of which acquired not less than 10 percent of the total raisin
acquisitions during the preceding crop year, and the number of those
members shall be equal to the product, rounded to the nearest whole
number, obtained by multiplying 8 by the ratio of the cooperative
marketing association(s) raisin acquisitions are to the total
acquisitions of all handlers during the preceding crop year.
(2) The remaining handler members shall be selected from and
represent all other handlers, which would include all independent
handlers and small cooperative marketing association(s) who acquired
less than 10 percent of the total raisin acquisitions during the
preceding crop year. Handler nominees for this group shall be nominated
by all handlers in the group in a manner determined by the Committee,
with the approval of the Secretary, and specified in the rules and
regulations.
(c) The public member shall be nominated by the Committee and
selected by the Secretary as public member.
(d) For each member of the Committee there shall be an alternate
member who shall have the same qualifications as the member for whom
they are an alternate.
0
5. Amend Sec. 989.29 by revising paragraphs (a) and (b)(1) and (2) to
read as follows:
Sec. 989.29 Initial members and nomination of successor members.
(a) Initial members. Members and alternate members of the Committee
serving immediately prior to the effective date of this amended subpart
shall, if thereafter they are eligible, serve on the Committee until
April 30, 2026, and until their respective successors have been
selected and qualified.
(b) * * *
(1) The Committee shall notify the cooperative marketing
association(s) engaged in handling not less than 10 percent of the
total raisin acquisitions during the preceding crop year, and
cooperative bargaining association(s), of the date by which nominations
to fill member and alternate member positions shall be made. The
Committee shall give reasonable publicity of a meeting or meetings of
producers who are not members of cooperative bargaining association(s),
or cooperative marketing association(s) which handled 10 percent or
more of the total raisin acquisitions during the preceding crop year,
and of independent handlers and cooperative marketing association(s)
who handled less than 10 percent of the total raisin acquisitions
during the preceding crop year, for the purpose of making nominations
to fill the member and alternate member positions prescribed in Sec.
989.26 (a)(3) and (b): Provided, That member and alternate member
nominations by independent handlers and cooperative marketing
association(s) who acquired less than 10 percent of the total raisin
acquisitions during the preceding crop year may be
[[Page 2181]]
made to the Committee by mail in lieu of meetings.
(2)(i) Any producer representing independent producers and
producers who are affiliated with cooperative marketing association(s)
handling less than 10 percent of the total raisin acquisitions during
the preceding crop year must have produced grapes which were made into
raisins.
(ii) Each such producer whose name is offered in nomination 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. The producer candidate receiving the
highest number of votes shall be designated as the first member nominee
for a member position in which they qualify, the second highest shall
be designated as the second member nominee for a member position which
they qualify, until nominees for all producer member positions have
been filled. Similarly, after all producer member positions have been
filled, the producer candidate receiving the highest number of votes
shall be designated as the first alternate member nominee for a member
position in which they qualify, the second highest shall be designated
as the second alternate member nominee for a member position in which
they qualify, until nominees for all alternate member positions have
been filled.
(iii) In the event there are no qualified candidates for any
designated producer member or alternate member positions, such
positions may be filled by other producer candidates not otherwise
nominated for a position.
(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
6. Revise Sec. 989.30 to read as follows:
Sec. 989.30 Selection.
The Secretary shall select producer, handler, and public members
and alternate members in the number specified in Sec. 989.26, as
applicable, and with the qualifications specified in Sec. 989.27. Such
selections may be made from nominations certified pursuant to Sec.
989.29 or from other eligible producers, or handlers.
Sec. 989.38 [Amended]
0
7. Amend Sec. 989.38 by removing the numeral ``25'' and adding in its
place the numeral ``14''.
Sec. 989.54 [Amended]
0
8. Amend Sec. 989.54 by:
0
a. Removing paragraph (a)(4);
0
b. Redesignating paragraphs (a)(5) through (9) as paragraphs (a)(4)
through (8), respectively; and
0
c. In redesignated paragraph (a)(4), removing the text ``, considering
the estimated world raisin supply and demand situation''.
0
9. Amend Sec. 989.58 by adding paragraph (g) to read as follows:
Sec. 989.58 Natural condition raisins.
* * * * *
(g) All raisins which have been inspected and certified as meeting
the minimum grade, quality, and condition standards established
pursuant to this section, whether upon incoming inspection or upon
later inspection after reconditioning, shall be determined to be
standard raisins, labelled accordingly, and shall be eligible for
commercial disposition as natural condition raisins or packed raisins
in normal outlets.
0
10. Add Sec. 989.63 to read as follows:
Sec. 989.63 Contributions.
The Committee may accept voluntary contributions: Provided, That
such contributions shall only be used to pay expenses authorized under
Sec. 989.79. Furthermore, contributions shall be free from any
encumbrances by the donor and the Committee shall retain complete
control of their use.
0
11. Add Sec. 989.64 to read as follows:
Sec. 989.64 Patents, copyrights, trademarks, inventions, product
formulations, and publications.
(a) Any patents, copyrights, trademarks, inventions, product
formulations, and publications developed through the use of funds
received by the Committee under this subpart shall be the property of
the U.S. Government, as represented by the Committee, and shall, along
with any rents, royalties, residual payments, or other income from the
rental, sales, leasing, franchising, or other uses of such patents,
copyrights, trademarks, inventions, product formulations, or
publications, inure to the benefit of the Committee; shall be
considered income subject to the same fiscal, budget, and audit
controls as other funds of the Committee and may be licensed subject to
approval by the Secretary.
(b) Upon termination of this subpart, Sec. 989.92 shall apply to
determine disposition of any property, including patents, copyrights,
trademarks, inventions, product formulations, and publications
developed through the use of funds received by the Committee under this
subpart.
(c) Should patents, copyrights, trademarks, inventions, product
formulations, or publications be developed through the use of funds
collected by the Committee under this subpart and funds contributed by
another organization or person, ownership and related rights to such
patents, copyrights, trademarks, inventions, product formulations, or
publications shall be determined by agreement between the Committee and
the person or organization contributing funds towards the development
of such patents, copyrights, inventions, trademarks, product
formulations, or publications in a manner consistent with paragraph (a)
of this section.
(d) Should any patents, copyrights, trademarks, inventions, product
formulations, or publications, be licensed to the Committee by another
person or organization, the rights and obligations regarding such
licensed patents, copyrights, trademarks, inventions, product
formulations, or publications shall be determined by agreement between
the Committee and the person or organization permitting licensure in a
manner consistent with paragraph (a) of this section.
Sec. 989.122 [Removed and Reserved]
0
12. Remove and reserve Sec. 989.122.
0
13. Revise Sec. 989.126 to read as follows:
Sec. 989.126 Representation of the Committee.
(a) Pursuant to Sec. 989.26(a)(3), and commencing with the term of
office beginning May 1, 2026, apportionment of independent and small
cooperative producers shall be:
[[Page 2182]]
(1) One producer member, selected from and representing all
producers, who is unaffiliated with any handler (including, but not
limited to, ownership, employment, or agent of any handler, and whose
family members are similarly unaffiliated with any handler); and
(2) The remaining producer member(s) selected from and representing
all other independent and small cooperative producers.
(b) Pursuant to section Sec. 989.26(b)(2), and commencing with the
term of office beginning May 1, 2026, apportionment of the independent
and small cooperative marketing association handlers shall be:
(1) Two members selected from and representing the four handler(s)
other than major cooperative marketing association handler(s) who
acquired the largest percentage of the total raisin acquisitions during
the preceding crop year; and
(2) The remaining member(s) selected from and representing all
other handlers, including small cooperative marketing association
handler(s) and all processors.
0
13. Revise Sec. 989.129 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. 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.
Erin Morris,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2024-00492 Filed 1-11-24; 8:45 am]
BILLING CODE 3410-02-P