[Federal Register Volume 78, Number 93 (Tuesday, May 14, 2013)]
[Proposed Rules]
[Pages 28147-28149]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-11386]
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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.
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Federal Register / Vol. 78, No. 93 / Tuesday, May 14, 2013 / Proposed
Rules
[[Page 28147]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 925
[Doc. No. AMS-FV-13-0005; FV13-925-1 PR]
Grapes Grown in Designated Area of Southeastern California;
Increased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
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SUMMARY: This proposed rule would increase the assessment rate
established for the California Desert Grape Administrative Committee
(Committee) for the 2013 and subsequent fiscal periods from $0.0150 to
$0.0165 per 18-pound lug of grapes handled. The Committee locally
administers the marketing order that regulates the handling of grapes
grown in a designated area of southeastern California. Assessments upon
grape handlers are used by the Committee to fund reasonable and
necessary expenses of the program. The fiscal period begins January 1
and ends December 31. The assessment rate would remain in effect
indefinitely unless modified, suspended or terminated.
DATES: Comments must be received by May 29, 2013.
ADDRESSES: Interested persons are invited to submit written comments
concerning this proposed rule. Comments must be sent to the Docket
Clerk, Marketing Order and Agreement Division, Fruit and Vegetable
Program, AMS, USDA, 1400 Independence Avenue SW., STOP 0237,
Washington, DC 20250-0237; Fax: (202) 720-8938; or Internet: http://www.regulations.gov. Comments should reference the docket number and
the date and page number of this issue of the Federal Register and will
be available for public inspection in the Office of the Docket Clerk
during regular business hours, or can be viewed at: http://www.regulations.gov. All comments submitted in response to this
proposed rule will be included in the record and will be made available
to the public. Please be advised that the identity of the individuals
or entities submitting comments will be made public on the Internet at
the address provided above.
FOR FURTHER INFORMATION CONTACT: Kathie M. Notoro, Marketing
Specialist, or Martin Engeler, Regional Director, California Marketing
Field Office, Marketing Order and Agreement Division, Fruit and
Vegetable Program, AMS, USDA; Telephone: (559) 487-5901, Fax: (559)
487-5906, or Email: [email protected] or
[email protected].
Small businesses may request information on complying with this
regulation by contacting Jeffrey Smutny, Marketing Order and Agreement
Division, Fruit and Vegetable 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: This proposed rule is issued under Marketing
Order No. 925, as amended (7 CFR part 925), regulating the handling of
grapes grown in a designated area of southeastern California,
hereinafter referred to as the ``order.'' The order is effective under
the Agricultural Marketing Agreement Act of 1937, as amended (7 U.S.C.
601-674), hereinafter referred to as the ``Act.''
The Department of Agriculture (USDA) is issuing this proposed rule
in conformance with Executive Order 12866.
This proposed rule has been reviewed under Executive Order 12988,
Civil Justice Reform. Under the marketing order now in effect, grape
handlers in a designated area of southeastern California are subject to
assessments. Funds to administer the order are derived from such
assessments. It is intended that the assessment rate as proposed herein
would be applicable to all assessable grapes beginning on January 1,
2013, and continue until amended, suspended, or terminated.
The Act provides that administrative proceedings must be exhausted
before parties may file suit in court. Under section 608c(15)(A) of the
Act, any handler subject to an order may file with USDA a petition
stating that the order, any provision of the order, or any obligation
imposed in connection with the order is not in accordance with law and
request a modification of the order or to be exempted therefrom. Such
handler is afforded the opportunity for a hearing on the petition.
After the hearing, USDA would rule on the petition. The Act provides
that the district court of the United States in any district in which
the handler is an inhabitant, or has his or her principal place of
business, has jurisdiction to review USDA's ruling on the petition,
provided an action is filed not later than 20 days after the date of
the entry of the ruling.
This proposed rule would increase the assessment rate established
for the Committee for the 2013 and subsequent fiscal periods from
$0.0150 to $0.0165 per 18-pound lug of grapes.
The grape order provides authority for the Committee, with the
approval of USDA, to formulate an annual budget of expenses and collect
assessments from handlers to administer the program. The members of the
Committee are producers and handlers of grapes grown in a designated
area of southeastern California. They are familiar with the Committee's
needs and with the costs for goods and services in their local area and
are thus in a position to formulate an appropriate budget and
assessment rate. The assessment rate is formulated and discussed in a
public meeting. Thus, all directly affected persons have an opportunity
to participate and provide input.
For the 2012 and subsequent fiscal periods, the Committee
recommended, and the USDA approved, an assessment rate that would
continue in effect from fiscal period to fiscal period unless modified,
suspended, or terminated by USDA based upon a recommendation and
information submitted by the Committee or other information available
to USDA.
The Committee met on March 4, 2013, and unanimously recommended
2013 expenditures of $100,000 and an assessment rate of $0.0165 per 18-
pound lug of grapes handled. In comparison, last year's budgeted
expenditures were $95,500. The assessment rate of $0.0165 is $0.0015
higher than the $0.0150 rate currently in effect. The Committee also
estimated shipments for the 2013 season to be 5,800,000 lugs. The
higher assessment rate, applied to estimated
[[Page 28148]]
shipments of 5,800,000 lugs, would generate $95,700 in revenue, which
is slightly less than the budgeted expenses. However, combining this
revenue with $4,300 from financial operating reserves would provide
sufficient revenue to cover the Committee's budgeted expenses.
The major expenditures recommended by the Committee for the 2013
fiscal period include $15,500 for research, $17,000 for general office
expenses, and $67,500 for management and compliance expenses. In
comparison, major expenditures for the 2012 fiscal period included
$15,500 for research, $17,500 for general office expenses, and $62,500
for management and compliance expenses.
The assessment rate recommended by the Committee was derived by
evaluating several factors, including estimated shipments for the 2013
season, budgeted expenses, and the level of available financial
reserves. The Committee determined that it could utilize $4,300 from
its financial reserves and still maintain the reserves at an acceptable
level. The remaining $95,700 necessary to meet budgeted expenses would
need to be raised through assessments. Thus, dividing the $95,700 in
necessary assessment revenue by 2013 estimated shipments of 5,800,000
lugs results in an assessment rate of $0.0165.
Reserve funds by the end of 2013 are projected at $53,972, which is
well within the amount authorized under the order. Section 925.41 of
the order permits the Committee to maintain approximately one fiscal
period's expenses in reserve.
The proposed assessment rate would continue in effect indefinitely
unless modified, suspended, or terminated by USDA based upon a
recommendation and information submitted by the Committee or other
available information.
Although this assessment rate would be in effect for an indefinite
period, the Committee would continue to meet prior to or during each
fiscal period to recommend a budget of expenses and consider
recommendations for modification of the assessment rate. The dates and
times of Committee meetings are available from the Committee or USDA.
Committee meetings are open to the public and interested persons may
express their views at these meetings. USDA would evaluate the
Committee recommendations and other available information to determine
whether modification of the assessment rate is needed. Further
rulemaking would be undertaken as necessary. The Committee's 2013
budget and those for subsequent fiscal periods would be reviewed and,
as appropriate, approved by USDA.
Initial Regulatory Flexibility Analysis
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS)
has considered the economic impact of this proposed rule on small
entities. Accordingly, AMS has prepared this initial regulatory
flexibility analysis.
The purpose of the RFA is to fit regulatory actions to the scale of
business subject to such actions in order that small businesses will
not be unduly or disproportionately burdened. Marketing orders issued
pursuant to the Act, and the rules issued thereunder, are unique in
that they are brought about through group action of essentially small
entities acting on their own behalf.
There are approximately 14 handlers of southeastern California
grapes who are subject to regulation under the order and about 41 grape
producers in the production area. Small agricultural service firms are
defined by the Small Business Administration (13 CFR 121.201) as those
having annual receipts of less than $7,000,000, and small agricultural
producers are defined as those whose annual receipts are less than
$750,000. Nine of the 14 handlers subject to regulation have annual
grape sales of less than $7,000,000, according to Committee and USDA
data. In addition, it is estimated that ten of the 41 producers have
annual receipts of less than $750,000. Based on the foregoing, it may
be concluded that a majority of grape handlers regulated under the
order, and about 10 of the producers could be classified as small
entities under the Small Business Administration definitions.
This proposal would increase the assessment rate established for
the Committee and collected from handlers for the 2013 and subsequent
fiscal periods. The Committee unanimously recommended an assessment
rate of $0.0165 per 18-pound lug of grapes handled, and 2013
expenditures of $100,000. The proposed assessment rate of $0.0165 is
$0.0015 higher than the 2012 rate currently in effect. The quantity of
assessable grapes for the 2013 season is estimated at 5,800,000 18-
pound lugs. Thus, the $0.0165 rate should generate $95,700 in income.
Combined with $4,300 from financial reserves, this should provide
adequate revenue to meet the 2013 fiscal period expenses. In addition,
reserve funds at the end of the year are projected to be $53,972, which
is well within the order's limitation of approximately one fiscal
period's expenses.
The major expenditures recommended by the Committee for the 2013
fiscal period include $15,500 for research, $17,000 for general office
expenses, and $67,500 for management and compliance expenses. In
comparison, major expenditures for the 2012 fiscal period included
$15,500 for research, $17,500 for general office expenses, and $62,500
for management and compliance expenses.
Prior to arriving at this budget, the Committee considered
alternative expenditures and assessment rates, including not increasing
the $0.0150 assessment rate currently in effect. Based on a crop
estimate of 5,800,000 18-pound lugs, the Committee ultimately
determined that revenue generated from an assessment rate of $0.0165,
combined with funds from the financial reserve, would adequately cover
increased expenses while providing an adequate 2013 ending reserve.
A review of historical crop and price information, as well as
preliminary information pertaining to the upcoming fiscal period
indicates that the producer price for the 2013 season could average
about $8.00 per 18-pound lug of grapes handled for Southeastern
California grapes. Utilizing this estimate and the proposed assessment
rate of $0.0165, estimated assessment revenue as a percentage of total
estimated producer revenue would be 0.20 percent for the 2013 season
($0.0165 divided by $8.00 per 18-pound lug). Thus, the assessment
revenue should be well below 1 percent of estimated producer revenue in
2013.
This proposal would increase the assessment obligation imposed on
handlers. While assessments impose some additional costs on handlers,
the costs are minimal and uniform on all handlers. Some of the
additional costs may be passed on to producers. However, these costs
would be offset by the benefits derived by the operation of the order.
In addition, the Committee's meeting was widely publicized throughout
the grape production area and all interested persons were invited to
attend and participate in Committee deliberations on all issues. Like
all Committee meetings, the March 4, 2013, meeting was a public meeting
and all entities, both large and small, were able to express views on
this issue. Finally, interested persons are invited to submit comments
on this proposed rule, including the regulatory and informational
impacts of this action on small businesses.
In accordance with the Paperwork Reduction Act of 1995, (44 U.S.C.
[[Page 28149]]
Chapter 35), the order's information collection requirements have been
previously approved by the Office of Management and Budget (OMB) and
assigned OMB No. 0581-0189. No changes in those requirements as a
result of this action are necessary. Should any changes become
necessary, they would be submitted to OMB for approval.
This proposed rule would impose no additional reporting or
recordkeeping requirements on either small or large California grape
handlers. As with all Federal marketing order programs, reports and
forms are periodically reviewed to reduce information requirements and
duplication by industry and public sector agencies.
AMS is committed to complying with the E-Government Act, to promote
the use of the Internet and other information technologies to provide
increased opportunities for citizen access to Government information
and services, and for other purposes.
USDA has not identified any relevant Federal rules that duplicate,
overlap, or conflict with this action.
A small business guide on complying with fruit, vegetable, and
specialty crop marketing agreement and orders may be viewed at:
www.ams.usda.gov/MarketingOrdersSmallBusinessGuide. Any questions about
the compliance guide should be sent to Jeffrey Smutny at the
previously-mentioned address in the FOR FURTHER INFORMATION CONTACT
section.
A 15-day comment period is provided to allow interested persons to
respond to this proposed rule. Fifteen days is deemed appropriate
because: (1) The 2013 fiscal period began on January 1, 2013, and the
order requires that the rate of assessment for each fiscal period apply
to all assessable grapes handled during such fiscal period; (2) the
Committee needs to have sufficient funds to pay its expenses, which are
incurred on a continuous basis; and (3) handlers are aware of this
action, which was unanimously recommended by the Committee at a public
meeting and is similar to other assessment rate actions issued in past
years.
List of Subjects in 7 CFR Part 925
Grapes, Marketing agreements, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 925 is
proposed to be amended as follows:
PART 925--GRAPES GROWN IN A DESIGNATED AREA OF SOUTHEASTERN
CALIFORNIA
0
1. The authority citation for 7 CFR part 925 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. Section 925.215 is revised to read as follows:
Sec. 925.215 Assessment rate.
On and after January 1, 2013, an assessment rate of $0.0165 per 18-
pound lug is established for grapes grown in a designated area of
southeastern California.
Dated: May 8, 2013.
Rex Barnes,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2013-11386 Filed 5-13-13; 8:45 am]
BILLING CODE 3410-02-P