[Federal Register Volume 79, Number 136 (Wednesday, July 16, 2014)]
[Rules and Regulations]
[Pages 41415-41417]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-16637]



Agricultural Marketing Service

7 CFR Part 987

[Docket No. AMS-FV-13-0090; FV14- 987-2 FR]

Domestic Dates Produced or Packed in Riverside County, 
California; Revision of Assessment Requirements

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.


SUMMARY: This rule revises the rules and regulations of the California 
date marketing order (order) to impose interest and late payment 
charges on overdue handler assessments. The order regulates the 
handling of dates produced or packed in Riverside County, California, 
and is administered locally by the California Date Administrative 
Committee (committee). Assessments upon date handlers are used to fund 
the reasonable and necessary expenses of the committee. These changes 
are expected to assist in the financial administration of the order by 
encouraging handlers to pay their assessments in a timely manner.

DATES: Effective July 17, 2014.

FOR FURTHER INFORMATION CONTACT: Terry Vawter, Senior 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 final rule is issued under Marketing 
Agreement and Order No. 987, as amended (7 CFR Part 987), regulating 
the handling of dates produced or packed in Riverside County, 
California, hereinafter referred to as the ``order.'' The order is 
effective under the Agricultural Marketing Agreement Act of 1937, as 
amended (7 U.S.C. 601-674), hereinafter referred to as the ``Act.''
    The Department of Agriculture (USDA) is issuing this rule in 
conformance with Executive Orders 12866, 13563, and 13175.
    This final rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. This rule is not intended to have retroactive 
    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 final rule revises the rules and regulations of the California 
date order to impose interest and late payment charges on overdue 
handler assessments. Interest and late payment charges will encourage 
California date handlers to pay their assessments promptly when billed 
by the committee.
    The order was amended on June 25, 2012, [77 FR 37762], to provide 
authority for the committee to recommend these actions, thereby 
permitting these changes through informal rulemaking, with the approval 
of the Secretary.

[[Page 41416]]

    Section 987.72 of the order establishes the authority for the 
committee to collect assessments from handlers. Paragraph (b) of that 
section specifically authorizes the committee to establish rules and 
regulations regarding delinquent assessment payments, including 
subjecting overdue assessments to an interest or late payment charge, 
or both; and authorizes the committee to recommend to USDA the period 
of time at which assessments become late, the rate of interest, and the 
late payment charge to be imposed on such delinquent assessments.
    The California date industry is a small industry with 70 producers 
and 11 handlers. If a handler withholds an assessment payment, it has 
an impact on the committee's ability to administer the order. The 
committee believes that charging interest and late payment fees will 
provide a greater incentive for handlers to make assessment payments on 
time. This in turn, will help ensure that the committee is able to meet 
its financial obligations and fund its programs on a continuing basis.
    Charging interest and late payment fees on unpaid financial 
obligations is commonplace in the business world, and such charges 
bring the committee's financial operations in line with standard 
business practices. Such charges remove any financial advantage for 
those who do not pay on time while they benefit from committee 
programs, thus, creating a more level playing field for the industry.
    For those reasons, the committee unanimously recommended an 
interest rate of 1.5 percent per month, a late payment charge of 10 
percent on the unpaid balance, and specified that assessment payments 
become overdue at 60 days after the date on the assessment invoice. 
This recommendation was made at a committee meeting on October 31, 
2013. Based upon the above considerations, this rule will implement 
interest and late payment charges for delinquent payment of 

Final Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS) 
has considered the economic impact of this rule on small entities. 
Accordingly, AMS has prepared this final regulatory flexibility 
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened. Marketing orders issued 
pursuant to the Act and the rules issued thereunder, are unique in that 
they are brought about through group action of essentially small 
entities acting on their own behalf.
    There are approximately 70 date producers in the production area 
and 11 handlers subject to regulation under the marketing order. The 
Small Business Administration defines small agricultural producers as 
those having annual receipts of less than $750,000, and small 
agricultural service firms as those whose annual receipts are less than 
$7,000,000. (13 CFR 121.201)
    According to the National Agricultural Statistics Service (NASS), 
data for the most recently completed crop year (2012) show that about 
3.70 tons, or 7,400 pounds of dates were produced per acre. The 2012 
grower price published by NASS was $1,340 per ton or $0.67 per pound. 
Thus, the value of date production per acre in the 2012-13 crop year 
averaged about $4,958 (7,400 pounds times $0.67 per pound). At that 
average price, a producer would have to farm over 151 acres to receive 
an annual income from dates of $750,000 ($750,000 divided by $4,958 per 
acre equals 151.2 acres). According to committee staff, the majority of 
California date producers farm less than 151 acres. Therefore, it can 
be concluded that the majority of date producers could be considered 
small entities.
    Additionally, based on data from the committee staff, the majority 
of California date handlers have receipts of less than $7,000,000, and 
may also be considered small entities.
    This final rule imposes an interest charge of 1.5 percent monthly, 
and a late payment charge of 10 percent on the unpaid balance of 
handler assessments owed to the committee 60 days after the date on the 
assessment invoice.
    At the meeting, the committee discussed the impact of these changes 
on handlers. They noted that the greatest impact would be only on 
handlers who do not pay their assessments on time. Such charges provide 
an incentive for all handlers to pay their assessments in a timely 
    The committee also discussed alternatives to these changes 
including not implementing them at all. It was determined that not 
implementing interest and late payment charges allows the current 
problem to continue. Late or delinquent assessment payments negatively 
impact the committee's ability to efficiently manage the program's 
resources and meet budget obligations. The committee concluded that 
encouraging timely assessment payment through the imposition of 
interest and late payment charges will benefit the administration of 
the order. Thus, the committee unanimously recommended these changes.
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the order's information collection requirements have been 
previously approved by the Office of Management and Budget (OMB) and 
assigned OMB No. 0581-0178, ``Vegetable and Specialty Crop Marketing 
Orders.'' 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 action imposes no additional reporting or recordkeeping 
requirements on either small or large Riverside County, California, 
date handlers. As with all Federal marketing order programs, reports 
and forms are periodically reviewed to reduce information requirements 
and duplication by industry and public sector agencies.
    AMS is committed to complying with the E-Government Act, to promote 
the use of the internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services, and for other purposes.
    USDA has not identified any relevant Federal rules that duplicate, 
overlap, or conflict with this rule.
    In addition, the committee's meeting was widely publicized 
throughout the California date industry and all interested persons were 
invited to attend the meeting and encouraged to participate in 
committee deliberations on all issues. Like all committee meetings, the 
October 31, 2013, meeting was a public meeting and all entities, both 
large and small, were able to express views on this issue.
    A proposed rule concerning this action was published in the Federal 
Register on April 7, 2014 (79 FR 19028). Copies of the rule were 
provided to all committee members and date handlers. Finally, the rule 
was made available through the Internet by USDA and the Office of the 
Federal Register. A 60-day comment period ending June 6, 2014, was 
provided to allow interested persons to respond to the proposal. No 
comments were received. Accordingly, no changes will be made to the 
rule as proposed.
    A small business guide on complying with fruit, vegetable, and 
specialty crop marketing agreements and orders may be viewed at: http://www.ams.usda.gov/MarketingOrdersSmallBusinessGuide. Any questions 
about the compliance

[[Page 41417]]

guide should be sent to Jeffrey Smutny at the previously mentioned 
    After consideration of all relevant matters presented, including 
the information and recommendation submitted by the committee and other 
available information, it is hereby found that this rule, as 
hereinafter set forth, will tend to effectuate the declared policy of 
the Act.
    It is further found that good cause exists for not postponing the 
effective date of this rule until 30 days after publication in the 
Federal Register (5 U.S.C. 553) because handlers are already aware of 
the rule, which was recommended at a public meeting. Further, the new 
crop year begins on August 1, and the committee needs time to institute 
the changes. In addition, a 60-day comment period was provided for in 
the proposed rule.

List of Subjects in 7 CFR Part 987

    Dates, Marketing agreements, Reporting and recordkeeping 

    For the reasons set forth in the preamble, 7 CFR part 987 is 
amended as follows:


1. The authority citation for 7 CFR part 987 continues to read as 

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

Sec.  987.172  [Amended]

2. Section 987.172 is amended by revising the section heading, 
redesignating the existing paragraph as paragraph (a), and adding 
paragraphs (b) and (c) to read as follows:

Sec.  987.172  Adjustment of assessment obligation, and late payment 
and interest charges.

* * * * *
    (b) Pursuant to Sec.  987.72, the committee shall impose an 
interest charge on any handler whose assessment payment has not been 
received in the committee's office, or the envelope containing the 
payment legibly postmarked by the U.S. Postal Service, within 60 days 
of the invoice date shown on the handler's statement. The interest 
charge shall be a rate of one and one half percent per month, and shall 
be applied to the unpaid assessment balance for the number of days all 
or any part of the unpaid balance is delinquent beyond the 60-day 
payment period.
    (c) In addition to the interest charge specified in paragraph (b) 
of this section, the committee shall impose a late payment charge on 
any handler whose payment has not been received in the committee's 
office, or the envelope containing the payment legibly postmarked by 
the U.S. Postal Service, within 60 days of the invoice date. The late 
payment charge shall be 10 percent of the unpaid balance.

    Dated: July 10, 2014.
Rex A. Barnes,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2014-16637 Filed 7-15-14; 8:45 am]