[Federal Register Volume 81, Number 78 (Friday, April 22, 2016)]
[Proposed Rules]
[Pages 23650-23656]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-09144]


 ========================================================================
 Proposed Rules
                                                 Federal Register
 ________________________________________________________________________
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 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. 81, No. 78 / Friday, April 22, 2016 / 
Proposed Rules  

[[Page 23650]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 989

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


Raisins Produced From Grapes Grown in California; Hearing on 
Proposed Amendment of Marketing Order No. 989

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Notice of hearing on proposed rulemaking.

-----------------------------------------------------------------------

SUMMARY: Notice is hereby given of a public hearing to receive evidence 
on proposed amendments to Marketing Order No. 989 (order) that 
regulates the handling of raisins grown in California. Five amendments 
are proposed by the Raisin Administrative Committee (Committee), which 
is responsible for local administration of the order. These proposed 
amendments would: Authorize production research; establish new 
nomination procedures for independent grower member and alternate 
member seats; add authority to regulate quality; add authority to 
establish different regulations for different markets; and add a 
continuance referenda requirement.
    In addition, the Agricultural Marketing Service (AMS) proposes two 
amendments. These amendments would remove order language pertaining to 
volume regulation and reserve pool authority and would establish term 
limits for Committee members. In addition, AMS proposes to make any 
such changes as may be necessary to the order to conform to any 
amendment that may result from the hearing. These proposed amendments 
are intended to update the order to reflect past changes in the 
industry and potential future changes, and to improve the operation and 
administration of the order.

DATES: The hearing dates are May 3 and 4, 2016, 9:00 a.m. to 5:00 p.m.; 
and continuing on May 5, 2016, at 9:00 a.m., if necessary, in Clovis, 
California.

ADDRESSES: The hearing will be held at the Hilton Garden Inn Clovis, 
520 W Shaw Ave., Clovis, CA 93612.

FOR FURTHER INFORMATION CONTACT: Melissa Schmaedick, Marketing Order 
and Agreement Division, Specialty Crops Program, AMS, USDA, Post Office 
Box 952, Moab, UT 84532; Telephone: (202) 557-4783, Fax: (435) 259-
1502, or Michelle Sharrow, Marketing Order and Agreement Division, 
Specialty Crops Program, AMS, USDA, 1400 Independence Avenue SW., Stop 
0237, Washington, DC 20250-0237; Telephone: (202) 720-2491, Fax: (202) 
720-8938, or Email: [email protected] or 
[email protected].
    Small businesses may request information on this proceeding by 
contacting Antoinette Carter, Marketing Order and Agreement Division, 
Specialty Crops Program, AMS, USDA, 1400 Independence Avenue SW., Stop 
0237, Washington, DC 20250-0237; Telephone: (202) 720-2491, Fax: (202) 
720-8938, or Email: [email protected].

SUPPLEMENTARY INFORMATION: 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.'' 
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.
    The Regulatory Flexibility Act (5 U.S.C. 601-612) 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 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 the 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.
    The hearing is called pursuant to the provisions of the Act and the 
applicable rules of practice and procedure governing the formulation of 
marketing agreements and orders (7 CFR part 900).
    The proposed amendments were recommended by the Committee on 
January 27, 2016, and submitted to USDA on February 2, 2016. After 
reviewing the proposals and other information submitted by the 
Committee, USDA made a determination to schedule this matter for 
hearing.
    The proposed amendments to the order recommended by the Committee 
are summarized as follows:
    1. Amend Sec.  989.53 to authorize production research.
    2. Amend Sec. Sec.  989.29 and 989.129 to authorize separate 
nominations for independent grower member and independent grower 
alternate member seats.
    3. Amend Sec. Sec.  989.58, 989.59 and 989.61 to add authority to 
regulate quality. A corresponding change would also revise the heading 
prior to Sec.  989.58 to include quality.
    4. Amend Sec.  989.59 to add authority to establish different 
regulations for different markets.
    5. Amend Sec.  989.91 to require continuance referenda.
    6. Amend the order to remove volume regulation and reserve pool 
authority. This would include: Removing Sec. Sec.  989.55 and 989.56, 
Sec. Sec.  989.65 through 989.67, Sec. Sec.  989.71, 989.72, 989.82, 
989.154, 989.156, 989.166, 989.167, 989.221, 989.257 and 989.401; 
revising Sec. Sec.  989.11, 989.53, 989.54, 989.58, 989.59, 989.60, 
989.73, 989.79, 989.80, 989.84, 989.158, 989.173 and 989.210; and, 
redesignating Sec.  989.70 as Sec.  989.96. Corresponding changes would 
also remove the following headings:

[[Page 23651]]

``Volume Regulation'' prior to Sec. Sec.  989.65; ``Volume Regulation'' 
prior to Sec.  989.166; and, ``Subpart--Schedule of Payments'' prior to 
Sec.  989.401.
    7. Amend Sec.  989.28 to establish term limits.
    The Committee works with USDA in administering the order. These 
proposals submitted by the Committee have not received the approval of 
USDA. The Committee believes that its proposed amendments would update 
the order to address changes that have occurred in the industry and 
potential changes that could occur in the future. The amendments are 
intended to improve the operation and administration of the order.
    In addition to the proposed amendments to the order, AMS proposes 
to make any such changes as may be necessary to the order to conform to 
any amendment that may result from the hearing or to correct minor 
inconsistencies and typographical errors.
    The public hearing is held for the purpose 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; and (iii) determining 
whether the proposed amendments or appropriate modifications thereof 
will tend to effectuate the declared policy of the Act.
    Testimony is invited at the hearing on all the proposals and 
recommendations contained in this notice, as well as any appropriate 
modifications or alternatives.
    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 and 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 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.

List of Subjects in 7 CFR Part 989

    Raisins, Marketing agreements, Reporting and recordkeeping 
requirements.

PART 989--RAISINS PRODUCED BY GRAPES GROWN IN CALIFORNIA

0
1. The authority citation for part 989 continues to read as follows:

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

0
2. Testimony is invited on the following proposals or appropriate 
alternatives or modifications to such proposals.
    Proposals submitted by the Raisin Administrative Committee:

Proposal Number 1

0
3. In Sec.  989.53(a), revise the introductory text to read as follows:


Sec.  989.53  Research and development.

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

Proposal Number 2

0
4. In Sec.  989.29:
0
a. Revise paragraph (b)(2)(ii);
0
b. Redesignate paragraph (b)(2)(iii) as paragraph (b)(2)(iv);
0
c. Add a new paragraph (b)(2)(iii); and
0
d. Revise newly redesignated paragraph (b)(2)(iv).
    The revisions and addition read as follows:


Sec.  989.29  Initial members and nomination of successor members.

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

[[Page 23652]]

accordance with paragraph (b)(2)(ii) and (iii) of this section, shall 
be the person to be certified to the Secretary as the nominee. The 
committee may, subject to the approval of the Secretary, establish 
rules and regulations to effectuate this section.
* * * * *
0
5. Section 989.129 is revised to read as follows:


Sec.  989.129  Voting at nomination meetings.

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

Proposal Number 3

0
6. In Sec.  989.58:
0
a. Revise the heading prior to this section, and
0
b. Revise paragraphs (a), (b), (d)(1) and (e)(1).
    The revisions read as follows:

Grade, Quality, and Condition Standards


Sec.  989.58  Natural condition raisins.

    (a) Regulation. No handler shall acquire or receive natural 
condition raisins which fail to meet such minimum grade, quality, and 
condition standards as the committee may establish, with the approval 
of the Secretary, in applicable rules and regulations: Provided, That a 
handler may receive raisins for inspection, may receive off-grade 
raisins for reconditioning and may receive or acquire off-grade raisins 
for use in eligible non-normal outlets: And provided further, That a 
handler may acquire natural condition raisins which exceed the 
tolerance established for maturity under a weight dockage system 
established pursuant to rules and regulations recommended by the 
committee and approved by the Secretary. Nothing contained in this 
paragraph shall apply to the acquisition or receipt of natural 
condition raisins of a particular varietal type for which minimum 
grade, quality, and condition standards are not applicable or then in 
effect pursuant to this part.
    (b) Changes in minimum grade, quality, and condition standards for 
natural condition raisins. The committee may recommend to the Secretary 
changes in the minimum grade, quality, and condition standards for 
natural condition raisins of any varietal type and may recommend to the 
Secretary that minimum grade, quality, and condition standards for any 
varietal type be added to or deleted. The committee shall submit with 
its recommendation all data and information upon which it acted in 
making its recommendation, and such other information as the Secretary 
may request. The Secretary shall approve any such change if he finds, 
upon the basis of data submitted to him by the committee or from other 
pertinent information available to him, that to do so would tend to 
effectuate the declared policy of the act.
* * * * *
    (d) * * *
    (1) Each handler shall cause an inspection and certification to be 
made of all natural condition raisins acquired or received by him, 
except with respect to:
    (i) An interplant or interhandler transfer of offgrade raisins as 
described in paragraph (e)(2) of this section, unless such inspection 
and certification are required by rules and procedures made effective 
pursuant to this amended subpart;
    (ii) An interplant or interhandler transfer of free tonnage raisins 
as described in Sec.  989.59(e);
    (iii) Raisins received from a dehydrator which have been previously 
inspected pursuant to paragraph (d)(2) of this section;
    (iv) Any raisins for which minimum grade, quality, and condition 
standards are not then in effect;
    (v) Raisins received from a cooperative bargaining association 
which have been inspected and are in compliance with requirements 
established pursuant to paragraph (d)(3) of this section; and
    (vi) Any raisins, if permitted in accordance with such rules and 
procedures as the committee may establish with the approval of the 
Secretary, acquired or received for disposition in eligible nonnormal 
outlets. The handler shall be reimbursed by the committee for 
inspection costs incurred by him and applicable to pool tonnage held 
for the account of the committee. Except as otherwise provided in this 
section, prior to blending raisins, acquiring raisins, storing raisins, 
reconditioning raisins, or acquiring raisins which have been 
reconditioned, each handler shall obtain an inspection certification 
showing whether or not the raisins meet the applicable grade, quality, 
and condition standards: Provided, That the initial inspection for 
infestation shall not be required if the raisins are fumigated in 
accordance with such rules and procedures as the committee shall 
establish with the approval of the Secretary. The handler shall submit 
or cause to be submitted to the committee a copy of such certification, 
together with such other documents or records as the committee may 
require. Such certification shall be issued by inspectors of the 
Processed Products Standardization and Inspection Branch of the U.S. 
Department of Agriculture, unless the committee determines, and the 
Secretary concurs in such determination, that inspection by another 
agency would improve the administration of this amended subpart. The 
committee may require that raisins held on memorandum receipt be 
reinspected and certified as a condition for their acquisition by a 
handler.
* * * * *
    (e) * * *
    (1) Any natural condition raisins tendered to a handler which fail 
to meet the applicable minimum grade, quality, and condition standards 
may:

[[Page 23653]]

    (i) Be received or acquired by the handler for disposition, without 
further inspection, in eligible non-normal outlets;
    (ii) Be returned unstemmed to the person tendering the raisins; or
    (iii) Be received by the handler for reconditioning. Off-grade 
raisins received by a handler under any one of the three described 
categories may be changed to any other of the categories under such 
rules and procedures as the committee, with the approval of the 
Secretary, shall establish. No handler shall ship or otherwise dispose 
of off-grade raisins which he does not return to the tenderer, transfer 
to another handler as provided in paragraph (e)(2) of this section, or 
recondition so that they at least meet the minimum standards prescribed 
in or pursuant to this amended subpart, except into eligible non-normal 
outlets.
* * * * *
0
7. In Sec.  989.59, revise paragraphs (a), (b), (d), (e), and (g) to 
read as follows:


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

    (a) Regulation. Unless otherwise provided in this part, no handler 
shall:
    (1) Ship or otherwise make final disposition of natural condition 
raisins unless they at least meet the effective and applicable minimum 
grade, quality, and condition standards for natural condition raisins; 
or
    (2) Ship or otherwise make final disposition of packed raisins 
unless they at least meet such minimum grade, quality, and condition 
standards established by the committee, with the approval of the 
Secretary, in applicable rules and regulations or as later changed or 
prescribed pursuant to the provisions of paragraph (b) of this section: 
Provided, That nothing contained in this paragraph shall prohibit the 
shipment or final disposition of any raisins of a particular varietal 
type for which minimum standards are not applicable or then in effect 
pursuant to this part. And provided further, That a handler may grind 
raisins, which do not meet the minimum grade, quality, and condition 
standards for packed raisins because of mechanical damage or sugaring, 
into a raisin paste.
    (b) The committee may recommend changes in the minimum grade, 
quality, or condition standards for packed raisins of any varietal type 
and may recommend to the Secretary that minimum grade, quality, or 
condition standards for any varietal type be added or deleted. The 
committee shall submit with its recommendation all data and information 
upon which it acted in making its recommendation, and such other 
information as the Secretary may request. The Secretary shall approve 
any such change if he finds, upon the basis of data submitted to him by 
the committee or from other pertinent information available to him, 
that to do so would tend to effectuate the declared policy of the act.
* * * * *
    (d) Inspection and certification. Unless otherwise provided in this 
section, each handler shall, at his own expense, before shipping or 
otherwise making final disposition of raisins, cause and inspection to 
be made of such raisins to determine whether they meet the then 
applicable minimum grade, quality, and condition standards for natural 
condition raisins or the then applicable minimum standards for packed 
raisins. Such handler shall obtain a certificate that such raisins meet 
the aforementioned applicable minimum standards and shall submit or 
cause to be submitted to the committee a copy of such certificate 
together with such other documents or records as the committee may 
require. The certificate shall be issued by the Processed Products 
Standardization and Inspection Branch of the United States Department 
of Agriculture, unless the committee determines, and the Secretary 
concurs in such determination, that inspection by another agency will 
improve the administration of this amended subpart. Any certificate 
issued pursuant to this paragraph shall be valid only for such period 
of time as the committee may specify, with the approval of the 
Secretary, in appropriate rules and regulations.
    (e) Inter-plant and inter-handler transfers. Any handler may 
transfer from his plant to his own or another handler's plant within 
the State of California free tonnage any raisins without having had 
such raisins inspected as provided in paragraph (d) of this section. 
The transferring handler shall transmit promptly to the committee a 
report of such transfer, except that transfers between plants owned or 
operated by the same handler need not be reported. Before shipping or 
otherwise making final disposition of such raisins, the receiving 
handler shall comply with the requirements of this section.
* * * * *
    (g) Exemption of experimental and specialty packs. The committee 
may establish, with the approval of the Secretary, rules and procedures 
providing for the exemption of raisins in experimental and specialty 
packs from one or more of the requirements of the minimum grade, 
quality, or condition standards of this section, together with the 
inspection and certification requirements if applicable.
0
8. Section 989.61 is revised to read as follows:


Sec.  989.61  Above parity situations.

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

Proposal Number 4

0
9. Section 989.59 is further amended by revising paragraph (a) to read 
as follows:


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

    (a) Regulation. Unless otherwise provided in this part, no handler 
shall:
    (1) Ship or otherwise make final disposition of natural condition 
raisins unless they at least meet the effective and applicable minimum 
grade, quality, and condition standards for natural condition raisins; 
or
    (2) Ship or otherwise make final disposition of packed raisins 
unless they at least meet such minimum grade, quality, and condition 
standards established by the committee, with the approval of the 
Secretary, in applicable rules and regulations or as later changed or 
prescribed pursuant to the provisions of paragraph (b) of this section: 
Provided, That nothing contained in this paragraph shall prohibit the 
shipment or final disposition of any raisins of a particular varietal 
type for which minimum standards are not applicable or then in effect 
pursuant to this part. And provided further, That a handler may grind 
raisins, which do not meet the minimum grade, quality, and condition 
standards for packed raisins because of mechanical damage or sugaring, 
into a raisin paste. The Committee may establish, with approval of the 
Secretary, different grade, quality, and condition regulations for 
different markets.
* * * * *

Proposal Number 5

0
10. In Sec.  989.91:
0
a. Redesignate paragraphs (c) and (d) as paragraphs (d) and (e), 
respectively, and;

[[Page 23654]]

0
b. Add a new paragraph (c).
    The addition to read as follows:


Sec.  989.91  Suspension or termination.

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

Proposal Number 6

0
11. Remove Sec. Sec.  989.55 and 989.56, Sec. Sec.  989.65 through 
989.67, Sec. Sec.  989.71, 989.72, 989.82, 989.154, 989.156, 989.166, 
989.167, 989.221, 989.257 and 989.401. Remove the headings ``Volume 
Regulation'' prior to Sec. Sec.  989.65, ``Volume Regulation'' prior to 
Sec.  989.166, and ``Subpart--Schedule of Payments'' prior to Sec.  
989.401.
0
12. Section 989.11 is revised to read as follows:


Sec.  989.11  Producer.

    Producer means any person engaged in a proprietary capacity in the 
production of grapes which are sun-dried or dehydrated by artificial 
means until they become raisins.
0
13. In Sec.  989.53(a), remove the text that follows paragraph (a)(5).
0
14. In Sec.  989.54:
0
a. Remove paragraphs (a) through (d) and (g);
0
b. Remove paragraph (e)(4);
0
c. Redesignate paragraphs (e)(5) through (e)(10) as (e)(4) through 
(e)(9), respectively;
0
d. Redesignate paragraphs (e), (f), and (h) as paragraphs (a), (b), and 
(c), respectively; and
0
e. Revise newly redesignated paragraphs (a) introductory text, (a)(1), 
(a)(4), (a)(5) and (c).
    The revisions read as follows:


Sec.  989.54  Marketing policy.

    (a) Each crop year, the Committee shall prepare and submit to the 
Secretary a report setting forth its recommended marketing policy, 
including quality regulations for the pending crop. In developing the 
marketing policy, the Committee may give consideration to the 
production, harvesting, processing, and storage conditions of that 
crop, as well as the following factors:
    (1) The estimated tonnage held by producers and handlers at the 
beginning of the crop year;
* * * * *
    (4) An estimated desirable carryout at the end of the crop year;
    (5) The estimated market demand for raisins, considering the 
estimated world raisin supply and demand situation;
* * * * *
    (c) Publicity. The Committee shall promptly give reasonable 
publicity to producers, dehydrators, handlers, and the cooperative 
bargaining association(s) of each meeting to consider a marketing 
policy or any modification thereof, and each such meeting shall be open 
to them. Similar publicity shall be given to producers, dehydrators, 
handlers, and the cooperative bargaining association(s) of each 
marketing policy report or modification thereof, filed with the 
Secretary and of the Secretary's action thereon. Copies of all 
marketing policy reports shall be maintained in the office of the 
Committee, where they shall be made available for examination by any 
producer, dehydrator, handler, or cooperative bargaining association 
representative. The Committee shall notify handlers, dehydrators and 
the cooperative bargaining association(s), and give reasonable 
publicity to producers of its computation.
0
15. In Sec.  989.58, further revise paragraphs (d)(1), and (e)(4) to 
read as follows:


Sec.  989.58  Natural condition raisins.

* * * * *
    (d) * * *
    (1) Each handler shall cause an inspection and certification to be 
made of all natural condition raisins acquired or received by him, 
except with respect to:
    (i) An interplant or interhandler transfer of offgrade raisins as 
described in paragraph (e)(2) of this section, unless such inspection 
and certification are required by rules and procedures made effective 
pursuant to this amended subpart;
    (ii) An interplant or interhandler transfer of natural condition 
raisins as described in Sec.  989.59(e);
    (iii) Raisins received from a dehydrator which have been previously 
inspected pursuant to paragraph (d)(2) of this section;
    (iv) Any raisins for which minimum grade, quality, and condition 
standards are not then in effect;
    (v) Raisins received from a cooperative bargaining association 
which have been inspected and are in compliance with requirements 
established pursuant to paragraph (d)(3) of this section; and
    (vi) Any raisins, if permitted in accordance with such rules and 
procedures as the committee may establish with the approval of the 
Secretary, acquired or received for disposition in eligible nonnormal 
outlets. Except as otherwise provided in this section, prior to 
blending raisins, acquiring raisins, storing raisins, reconditioning 
raisins, or acquiring raisins which have been reconditioned, each 
handler shall obtain an inspection certification showing whether or not 
the raisins meet the applicable grade, quality, and condition 
standards: Provided, That the initial inspection for infestation shall 
not be required if the raisins are fumigated in accordance with such 
rules and procedures as the committee shall establish with the approval 
of the Secretary. The handler shall submit or cause to be submitted to 
the committee a copy of such certification, together with such other 
documents or records as the committee may require. Such certification 
shall be issued by inspectors of the Processed Products Standardization 
and Inspection Branch of the U.S. Department of Agriculture, unless the 
committee determines, and the Secretary concurs in such determination, 
that inspection by another agency would improve the administration of 
this amended subpart. The committee may require that raisins held on 
memorandum receipt be reinspected and certified as a condition for 
their acquisition by a handler.
* * * * *
    (e) * * *
    (4) If the handler is to acquire the raisins after they are 
reconditioned, his obligation with respect to such raisins shall be 
based on the weight of the raisins (if stemmed, adjusted to natural 
condition weight) after they have been reconditioned.
* * * * *
0
16. In Sec.  989.59, further revise paragraph (e) to read as follows:


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

* * * * *
    (e) Inter-plant and inter-handler transfers. Any handler may 
transfer from his plant to his own or another handler's plant within 
the State of

[[Page 23655]]

California any raisins without having had such raisins inspected as 
provided in paragraph (d) of this section. The transferring handler 
shall transmit promptly to the committee a report of such transfer, 
except that transfers between plants owned or operated by the same 
handler need not be reported. Before shipping or otherwise making final 
disposition of such raisins, the receiving handler shall comply with 
the requirements of this section.
* * * * *
0
17. Section 989.60(a) is revised to read as follows:


Sec.  989.60  Exemption.

    (a) Notwithstanding any other provisions of this amended subpart, 
the committee may establish, with the approval of the Secretary, such 
rules and procedures as may be necessary to permit the acquisition and 
disposition of any off-grade raisins, free from any or all regulations, 
for uses in non-normal outlets.
* * * * *
0
18. Redesignate Sec.  989.70 as Sec.  989.96.
0
19. Section 989.73 (b) is revised to read as follows:


Sec.  989.73  Reports.

* * * * *
    (b) Acquisition reports. Each handler shall submit to the committee 
in accordance with such rules and procedures as are prescribed by the 
committee, with the approval of the Secretary, certified reports, for 
such periods as the committee may require, with respect to his 
acquisitions of each varietal type of raisins during the particular 
period covered by such report, which report shall include, but not be 
limited to:
    (1) The total quantity of standard raisins acquired;
    (2) The total quantity of off-grade raisins acquired pursuant to 
Sec.  989.58(e)(1)(i); and
    (3) Cumulative totals of such acquisitions from the beginning of 
the then current crop year to and including the end of the period for 
which the report is made. Upon written application made to the 
committee, a handler may be relieved of submitting such reports after 
completing his packing operations for the season. Upon request of the 
committee, each handler shall furnish to the committee, in such manner 
and at such times as it may require, the name and address of each 
person from whom he acquired raisins and the quantity of each varietal 
type of raisins acquired from each such person.
* * * * *
0
20. Section 989.79 is revised to read as follows:


Sec.  989.79  Expenses.

    The committee is authorized to incur such expenses as the Secretary 
finds are reasonable and likely to be incurred by it during each crop 
year, for the maintenance and functioning of the committee and for such 
purposes as he may, pursuant to this subpart, determine to be 
appropriate. The funds to cover such expenses shall be obtained levying 
assessments as provided in Sec.  989.80. The committee shall file with 
the Secretary for each crop year a proposed budget of these expenses 
and a proposal as to the assessment rate to be fixed pursuant to Sec.  
989.80, together with a report thereon. Such filing shall be not later 
than October 5 of the crop year, but this date may be extended by the 
committee not more than 5 days if warranted by a late crop.
0
21. In Sec.  989.80, revise paragraphs (a) through (c) to read as 
follows:


Sec.  989.80  Assessments.

    (a) Each handler shall pay to the committee, upon demand, his pro 
rata share of the expenses which the Secretary finds will be incurred, 
as aforesaid, by the committee during each crop year less any amounts 
credited pursuant to Sec.  989.53. Such handler's pro rata share of 
such expenses shall be equal to the ratio between the total raisin 
tonnage acquired by such handler during the applicable crop year and 
the total raisin tonnage acquired by all handlers during the same crop 
year.
    (b) Each handler who reconditions off-grade raisins but does not 
acquire the standard raisins recovered therefrom shall, with respect to 
his assessable portion of all such standard raisins, pay to the 
committee, upon demand, his pro rata share of the expenses which the 
Secretary finds will be incurred by the committee each crop year. Such 
handler's pro rata share of such expenses shall be equal to the ratio 
between the handler's assessable portion (which shall be a quantity 
equal to such handler's standard raisins which are acquired by some 
other handler or handlers) during the applicable crop year and the 
total raisin tonnage acquired by all handlers.
    (c) The Secretary shall fix the rate of assessment to be paid by 
all handlers on the basis of a specified rate per ton. At any time 
during or after a crop year, the Secretary may increase the rate of 
assessment to obtain sufficient funds to cover any later finding by the 
Secretary relative to the expenses of the committee. Each handler shall 
pay such additional assessment to the committee upon demand. In order 
to provide funds to carry out the functions of the committee, the 
committee may accept advance payments from any handler to be credited 
toward such assessments as may be levied pursuant to this section 
against such handler during the crop year. The payment of assessments 
for the maintenance and functioning of the committee, and for such 
purposes as the Secretary may pursuant to this subpart determine to be 
appropriate, may be required under this part throughout the period it 
is in effect, irrespective of whether particular provisions thereof are 
suspended or become inoperative.
* * * * *
0
22. Section 989.84 is revised to read as follows:


Sec.  989.84  Disposition limitation.

    No handler shall dispose of standard raisins, off-grade raisins, or 
other failing raisins, except in accordance with the provisions of this 
subpart or pursuant to regulations issued by the committee.
0
23. Section 989.158(c)(4)(i) is revised to read as follows:


Sec.  989.158  Natural condition raisins.

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

[[Page 23656]]

natural condition weight by the use of factors applicable to the 
various degrees of processing accomplished. The applicable factor shall 
be that selected by the inspector of the reconditioned raisins from 
among factors established by the Committee with the approval of the 
Secretary.
* * * * *
0
24. In Sec.  989.173:
0
a. Remove paragraphs (b)(2)(ii), (f) and (g)(1)(ii);
0
b. Redesignate paragraphs (b)(2)(iii), (g) and (g)(1)(iii) as 
paragraphs (b)(2)(ii), and (f)(1)(ii), respectively; and
0
c. Revise paragraphs (a), (b)(2)(i), newly redesignated paragraph 
(b)(2)(ii), (c)(1), (d)(1), (d)(1)(v), and newly redesignated paragraph 
(f).
    The revisions read as follows:


Sec.  989.173  Reports.

    (a) Inventory reports. Each handler shall submit to the Committee 
as of the close of business on July 31 of each crop year, and not later 
than the following August 6, an inventory report which shall show, with 
respect to each varietal type of raisins held by such handler, the 
quantity of off-grade raisins segregated as to those for reconditioning 
and those for disposition as such. Provided, That, for the Other 
Seedless varietal type, handlers shall report the information required 
in this paragraph separately for the different types of Other Seedless 
raisins. Upon request by the Committee, each handler shall file at 
other times, and as of other dates, any of the said information which 
may reasonably be necessary and which the Committee shall specify in 
its request.
    (b) * * *
    (2) * * *
    (i) The total net weight of the standard raisins acquired during 
the reporting period; and
    (ii) The cumulative totals of such acquisitions from the beginning 
of the then current crop year.
* * * * *
    (c) * * *
    (1) Each month each handler who is not a processor shall furnish to 
the Committee, on an appropriate form provided by the Committee and so 
that it is received by the Committee not later than the seventh day of 
the month, a report showing the aggregate quantity of each varietal 
type of packed raisins and standard natural condition raisins which 
were shipped or otherwise disposed of by such handler during the 
preceding month (exclusive of transfers within the State of California 
between plants of any such handler and from such handler to other 
handlers): Provided, That, for the Other Seedless varietal type, 
handlers shall report such information for the different types of Other 
Seedless raisins. Such required information shall be segregated as to:
* * * * *
    (d) * * *
    (1) Any handler who transfers raisins to another handler within the 
State of California shall submit to the Committee not later than five 
calendar days following such transfer a report showing:
* * * * *
    (v) If packed, the transferring handler shall certify that such 
handler is transferring only acquired raisins that meet all applicable 
marketing order requirements, including reporting, incoming inspection, 
and assessments.
* * * * *
    (f) * * *
    (1) * * *
    (i) The quantity of raisins, segregated as to locations where they 
are stored and whether they are natural condition or packed;
    (ii) * * *
    (2) * * *
    (i) The total net weight of the standard raisins acquired during 
the reporting period; and
* * * * *
    (3) Disposition report of organically-produced raisins. No later 
than the seventh day of each month, handlers who are not processors 
shall submit to the Committee, on an appropriate form provided by the 
Committee, a report showing the aggregate quantity of packed raisins 
and standard natural condition raisins which were shipped or otherwise 
disposed of by such handler during the preceding month (exclusive of 
transfer within the State of California between the plants of any such 
handler and from such handler to other handlers). Such information 
shall include:
* * * * *
0
25. In Sec.  989.210:
0
a. Remove paragraphs (b), (c) and (e);
0
b. Redesignate paragraph (d) as (b), paragraph (f) as (c), and 
paragraph (g) as (d); and
0
c. Revise newly redesignated paragraph (b).
    The revisions read as follows:


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

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

Proposal Number 7

0
26. In Sec.  989.28:
0
a. Redesignate the introductory text as paragraph (a);
0
b. Revise newly redesignated paragraph (a); and
0
c. Add paragraph (b).
    The revisions and addition read as follows:


Sec.  989.28  Term of office.

    (a) The term of office of all representatives serving on the 
Committee shall be for two years and shall end on April 30 of even 
numbered calendar years; Provided, That each such member and alternate 
member shall continue to serve until their successor is selected and 
has qualified.
    (b) Representatives may serve up to four consecutive, two-year 
terms of office. In no event shall any representative serve more than 
eight consecutive years on the Committee. For purposes of determining 
when a representative has served four consecutive terms, the accrual of 
terms shall begin following any period of at least twelve consecutive 
months out of office. This limitation on tenure shall not include 
service on the Committee prior to implementation of this amendment.

Proposal Number 8

    Make other such changes as may be necessary to the order to conform 
with any amendment thereto that may result from the hearing.

    Dated: April 14, 2016.
Elanor Starmer,
Administrator, Agricultural Marketing Service.
[FR Doc. 2016-09144 Filed 4-21-16; 8:45 am]
 BILLING CODE P