[Federal Register Volume 81, Number 180 (Friday, September 16, 2016)]
[Proposed Rules]
[Pages 63723-63725]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-22270]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 989 and 999

[Doc. No. AMS-SC-16-0065; SC16-989-2 PR]


Raisins Produced From Grapes Grown in California and Imported 
Raisins; Removal of Language

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This proposed rule invites comments on a recommendation by the 
Raisin Administrative Committee (Committee) to the remove the term 
``midget'' from the minimum grade standards of the California raisin 
marketing order (order). The marketing order regulates the handling of 
raisins produced from grapes grown in California, and is administered 
locally by the Committee. Recently, the U.S. Standards for Grades of 
Processed Raisins (standards) were amended to remove the word 
``midget.'' The proposed change would make the marketing order 
consistent with the amended standards. Furthermore, this rule would 
make a corresponding change to the raisin import regulation as required 
by the Agricultural Marketing Agreement Act of 1937, as amended, when 
changes are made to the size, grade, maturity, or quality requirements 
of the order.

DATES: Comments must be received by October 17, 2016.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposal. Comments must be sent to the Docket Clerk, 
Marketing Order and Agreement Division, Specialty Crops Program, AMS, 
USDA, 1400 Independence Avenue SW., STOP 0237, Washington, DC 20250-
0237; Fax: (202) 720-8938; or Internet: http://www.regulations.gov. All 
comments should reference the docket number and the date and page 
number of this issue of the Federal Register and will be made available 
for public inspection in the Office of the Docket Clerk during regular 
business hours, or can be viewed on the Internet at: http://www.regulations.gov. All comments submitted in response to this 
proposal

[[Page 63724]]

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 the comments will be made public on the internet at 
the address provided above.

FOR FURTHER INFORMATION CONTACT: Maria Stobbe, Marketing Specialist, or 
Jeffery Smutny, Regional Director, California Marketing Field Office, 
Marketing Order and Agreement Division, Specialty Crops 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 Richard Lower, 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 proposal is issued under Marketing 
Agreement and Marketing Order No. 989, both as amended (7 CFR part 
989), regulating the handling of raisins produced from grapes grown in 
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.''
    This proposed rule is also issued under section 8e of the Act, 
which provides that whenever certain specified commodities, including 
raisins, are regulated under a Federal marketing order, imports of 
these commodities into the United States are prohibited unless they 
meet the same or comparable grade, size, quality, or maturity 
requirements as those in effect for the domestically-produced 
commodities.
    The Department of Agriculture (USDA) is issuing this proposed rule 
in conformance with Executive Orders 12866, 13563, and 13175.
    This proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. This proposed rule is 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. 
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.
    There are no administrative procedures which must be exhausted 
prior to any judicial challenge to the provisions of import regulations 
issued under section 8e of the Act.
    This proposal invites comments on the removal of the term 
``midget'' from Sec.  989.702(a) of the order and Sec.  999.300(b)(1) 
of the import regulations. This action would make the order and the 
import regulations consistent with the recent change to the standards.
    The Committee unanimously recommended that the term ``midget'' be 
removed from the order at a meeting on June 26, 2014. At a subsequent 
meeting on August 14, 2014, the committee also unanimously recommended 
that the word ``midget'' be removed from the standards. As required 
under the Act, the import regulations must be consistent with the 
changes to the order. In this instance, the order must be consistent 
with changes to the standards.
    Paragraph (a) of Sec.  989.702 of the order specifies minimum grade 
standards for packed Natural (sun-dried) Seedless (NS) raisins, 
requiring that small (midget)-sized raisins shall meet U.S. Grade C 
tolerances with respect to pieces of stem, and underdeveloped and 
substandard raisins. The word ``midget'' is redundant to the term 
``small,'' and its removal is insignificant.
    Pursuant to the recommendation of the Committee and consistent with 
the recent amendment of the standards, the word ``midget'' is proposed 
to be removed from the order language.
    The Committee's recommendation to delete the word ``midget'' from 
the order and the standards necessitates a corresponding change to the 
import requirements.
    Under the raisin import regulations, in paragraph (b)(1) of Sec.  
999.300, raisins imported into the United States are required to meet 
the same or comparable grade, size, quality, or maturity requirements 
as those in effect for the domestically-produced commodities, when such 
commodities are regulated under an order. With the removal of the word 
``midget'' from both the standards and the order, removal of ``midget'' 
is required under the import regulations.
    Removal of the word ``midget'' should not impact the application of 
the order or the import regulations, since the word ``midget'' is 
redundant and appears in parentheses after the word ``small.'' Thus, 
removing the word ``midget'' has no effect on interpretation of the 
order or the import regulations; and, therefore, has no effect on 
raisin importers.
    The final rule removing the word ``midget'' from the standards was 
published in the Federal Register on June 23, 2016 (81 FR 40779). Thus, 
this proposal would make the order and the import regulations 
consistent with the standards, as recently revised.

Initial Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA), the Agricultural Marketing Service (AMS) has considered the 
economic impact of this action 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 
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 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 3,000 California raisin producers and 24 
handlers subject to regulation under the marketing order. The Small 
Business Administration defines small agricultural producers as those 
having annual receipts less than $750,000, and defines small 
agricultural service firms, such as handlers and importers, as those 
whose annual receipts are less than $7,500,000. (13 CFR 121.201.)
    Based on shipment data and other information provided by the 
Committee, most producers and approximately 13 handlers of California 
raisins may be classified as small entities. This action should not 
have any impact on handlers' or growers' benefits or costs.
    There are approximately 52 raisins importers. This action should 
not have any impact on importers' costs.
    This proposal would remove the word ``midget'' from the order 
regulations in Sec.  989.702(a) and from the import regulations in 
Sec.  999.300(b)(1), bringing the order and the import regulations into 
conformance with the recent amendment to the standards.
    AMS is committed to complying with the E-Government Act, to promote 
the

[[Page 63725]]

use of the Internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services, and for other purposes.
    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 Crops.'' 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 not impose any additional reporting or 
recordkeeping requirements on either large or small raisin handlers or 
on raisin importers. 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. In 
addition, USDA has not identified any relevant Federal rules that 
duplicate, overlap or conflict with this proposal.
    Further, the Committee's meetings were widely publicized throughout 
the California raisin industry and all interested persons were invited 
to attend the meetings and encouraged to participate in Committee 
deliberations on all issues. Like all Committee meetings, the June 26, 
2014, and August 14, 2014, meetings were public meetings and all 
entities, both large and small, were encouraged to express their 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.
    A small business guide on complying with fruit, vegetable, and 
specialty crop marketing agreements and orders may be viewed at: 
www.ams.usda.gov/MarketingOrdersSmallBusinessGuide. Any questions about 
the compliance guide should be sent to Richard Lower at the previously-
mentioned address in the FOR FURTHER INFORMATION CONTACT section.
    A 30-day comment period is provided to allow interested persons to 
respond to this proposal. Thirty days is deemed appropriate because: 
(1) This proposed rule should be implemented as soon as possible since 
the standards have already been amended; (2) the Committee discussed 
this change at two public meetings, and unanimously recommended it; and 
(3) the proposed change is insignificant and should not impact handlers 
or importers. All written comments received during the comment period 
will be considered before a final determination is made on this matter.

List of Subjects

7 CFR Part 989

    Grape, Marketing agreements, Raisins, Reporting and recordkeeping 
requirements.

7 CFR Part 999

    Dates, Filberts, Food grades and standards, Imports, Nuts, Prunes, 
Raisins, Reporting and recordkeeping requirements, Walnuts.

    For the reasons set forth in the preamble, 7 CFR parts 989 and 999 
are proposed to be amended as follows:

PART 989--RAISINS PRODUCED FROM GRAPES GROWN IN CALIFORNIA

0
1. The authority citation for 7 CFR part 989 continues to read as 
follows:

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


Sec.  989.702  Minimum grade standards for packed raisins.

0
2. Paragraph (a) of Sec.  989.702 is amended by removing the word 
``midget.''

PART 999--SPECIALTY CROPS; IMPORT REGULATIONS

0
3. The authority citation for 7 CFR part 999 continues to read as 
follows:

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

0
4. Paragraph (b)(1) of Sec.  999.300 is amended by removing the word 
``midget.''

    Dated: September 12, 2016.
Elanor Starmer,
Administrator, Agricultural Marketing Service.
[FR Doc. 2016-22270 Filed 9-15-16; 8:45 am]
 BILLING CODE P