[Federal Register Volume 83, Number 119 (Wednesday, June 20, 2018)]
[Rules and Regulations]
[Pages 28521-28523]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-13271]



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 Rules and Regulations
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  Federal Register / Vol. 83, No. 119 / Wednesday, June 20, 2018 / 
Rules and Regulations  

[[Page 28521]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 932

[Doc. No. AMS-SC-18-0001; SC18-932-1 FR]


Olives Grown in California; Decreased Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: This rule implements a recommendation from the California 
Olive Committee (Committee) to decrease the assessment rate established 
for the 2018 fiscal period for olives grown in California. The 
assessment rate will remain in effect indefinitely unless modified, 
suspended, or terminated.

DATES: Effective July 20, 2018.

FOR FURTHER INFORMATION CONTACT: Peter Sommers, Marketing Specialist, 
or Jeffrey 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 action, pursuant to 5 U.S.C. 553, 
amends regulations issued to carry out a marketing order as defined in 
7 CFR 900.2(j). This rule is issued under Marketing Agreement and Order 
No. 932, as amended (7 CFR part 932), regulating the handling of olives 
grown in California. Part 932 (referred to as 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 
Committee locally administers the Order and is comprised of producers 
and handlers of olives operating within the area of production.
    The Department of Agriculture (USDA) is issuing this rule in 
conformance with Executive Orders 13563 and 13175. This action falls 
within a category of regulatory actions that the Office of Management 
and Budget (OMB) exempted from Executive Order 12866 review. 
Additionally, because this rule does not meet the definition of a 
significant regulatory action, it does not trigger the requirements 
contained in Executive Order 13771. See OMB's Memorandum titled 
``Interim Guidance Implementing Section 2 of the Executive Order of 
January 30, 2017, titled `Reducing Regulation and Controlling 
Regulatory Costs' '' (February 2, 2017).
    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. Under the Order now in effect, California olive 
handlers are subject to assessments. Funds to administer the Order are 
derived from such assessments. It is intended that the assessment rate 
as established herein would be applicable to all assessable olives 
beginning on January 1, 2018, 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 rule decreases the assessment rate established for the 2018 
and subsequent fiscal periods from $26.00 to $24.00 per ton of assessed 
olives.
    The 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 olives in California. They are 
familiar with the Committee's needs, with the costs for goods and 
services in their local area, and are therefore in a position to 
formulate an appropriate budget and assessment rate. The assessment 
rate is formulated in a public meeting where all directly affected 
persons have an opportunity to participate and provide input.
    For the 2015 and subsequent fiscal years, the Committee 
recommended, and USDA approved, an assessment rate of $26.00 per ton of 
assessed olives. That rate would continue in effect unless modified, 
suspended, or terminated by USDA upon recommendation and information 
submitted by the Committee or other information available to USDA.
    The Committee met on December 13, 2017, and unanimously recommended 
2018 expenditures of $1,940,477, and an assessment rate of $24.00 per 
ton of assessed olives. In comparison, last year's budgeted 
expenditures were $1,752,366. The assessment rate of $24.00 is $2.00 
lower than the rate currently in effect. Handlers received 83,799 tons 
of assessable olives during the 2017 crop year, which is higher than 
the 63,000 tons of assessable olives received during the 2016 crop 
year. The 2018 fiscal year assessment rate decrease is necessary to 
ensure the Committee has sufficient revenue to fund the recommended 
2018 budgeted expenditures while ensuring the funds in the financial 
reserve would be kept within the maximum permitted by Sec.  932.40.
    The Order has a fiscal year and a crop year that are independent of 
each other. The crop year is a 12-month period that begins on August 1 
of each year and ends on July 31 of the following year. The fiscal year 
is the 12-month period that begins on January 1 and ends on December 31 
of each year. Olives are an alternate-bearing crop, with a small crop 
followed by a large crop. For the

[[Page 28522]]

Committee's assessment rate, the actual 2017 crop year receipts are 
used to determine the assessment rate for the 2018 fiscal year.
    The major expenditures recommended by the Committee for 2018 
includes $401,200 for program administration, $973,500 for marketing 
activities, and $297,777 for research. Budgeted expenses for these 
items during the 2017 fiscal year were $513,100 for program 
administration, $823,500 for marketing activities, and $317,766 for 
research. The assessment rate recommended by the Committee resulted 
from consideration of proposed fiscal year expenses, actual olive 
tonnage received by handlers during the 2017 crop year, and the amount 
of funds in the Committee's financial reserve.
    Income derived from handler assessments, along with interest income 
and funds from the Committee's authorized reserve, will be adequate to 
cover budgeted expenses. Funds in the reserve will be kept within the 
maximum permitted by the Order of approximately one fiscal year's 
expenses.
    The assessment rate established in this rule will continue in 
effect indefinitely unless modified, suspended, or terminated by USDA 
upon recommendation and information submitted by the Committee or other 
available information.
    Although this assessment rate will be effective for an indefinite 
period, the Committee will 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 are 
encouraged to express their views at these meetings. USDA will evaluate 
Committee recommendations and other available information to determine 
whether modification of the assessment rate is needed. Further 
rulemaking will be undertaken as necessary. The Committee's budget for 
fiscal year 2018 and those for subsequent fiscal periods will be 
reviewed and, as appropriate, approved by USDA.

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 
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 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 1,100 producers of olives in the production 
area and two handlers subject to regulation under the Order. Small 
agricultural producers are defined by the Small Business Administration 
(SBA) as those having annual receipts less than $750,000, and small 
agricultural service firms are defined as those whose annual receipts 
are less than $7,500,000 (13 CFR 121.201). Based upon National 
Agricultural Statistics Service (NASS) information, the average price 
to producers for the 2016 crop year was $865.00 per ton, and total 
assessable volume for the 2017 crop year was 83,799 tons. Based on 
production, price paid to producer, and the total number of California 
olive producers, the average annual producer revenue is less than 
$750,000 ($865.00 times 83,799 equals $72,486,135, divided by 1,100 
producers equals an average annual producer revenue of $65,896). Thus, 
the majority of olive producers may be classified as small entities. 
Both of the handlers may be classified as large entities under the 
SBA's definitions because their annual receipts are greater than 
$7,500,000.
    This rule decreases the assessment rate collected from handlers for 
the 2018 and subsequent fiscal years from $26.00 to $24.00 per ton of 
assessable olives. The Committee unanimously recommended 2018 
expenditures of $1,940,477 and an assessment rate of $24.00 per ton of 
assessable olives. The recommended assessment rate of $24.00 is $2.00 
lower than the 2017 rate. The quantity of assessable olives for the 
2017 crop year is 83,799 tons, which should provide $2,011,176 in 
assessment income. The lower assessment rate is possible because annual 
receipts for the 2017 crop year are 83,799 tons compared to 63,000 tons 
for the 2016 crop year. Olives are an alternate-bearing crop, with a 
small crop followed by a large crop. Income derived from the $24.00 per 
ton assessment rate, along with funds from the authorized reserve and 
interest income, should be adequate to meet this fiscal year's 
expenses.
    The major expenditures recommended by the Committee for the 2018 
fiscal year include $401,200 for program administration, $973,500 for 
marketing activities, and $297,777 for research. Budgeted expenses for 
these items during the 2017 fiscal year were $513,100 for program 
administration, $823,500 for marketing activities, and $317,766 for 
research.
    Prior to arriving at this budget and assessment rate, the Committee 
considered information from various sources including the Committee's 
Executive, Marketing, Inspection, and Research Subcommittees. Alternate 
expenditure levels were discussed by these groups, based upon the 
relative value of various projects to the olive industry and the 
increased olive production. The assessment rate of $24.00 per ton of 
assessable olives was derived by considering anticipated expenses, the 
volume of assessable olives, and additional pertinent factors.
    A review of NASS information indicates that the average producer 
price for the 2016 crop year was $865.00 per ton. Therefore, utilizing 
the assessment rate of $24.00 per ton, the assessment revenue for the 
2018 fiscal year as a percentage of total producer revenue would be 
approximately 2.77 percent.
    This action decreases the assessment obligation imposed on 
handlers. Assessments are applied uniformly on all handlers, and some 
of the costs may be passed on to producers. However, decreasing the 
assessment rate reduces the burden on handlers, and may reduce the 
burden on producers.
    In addition, the Committee's meeting was widely publicized 
throughout the production area. The olive 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 December 13, 2017, meeting was a public meeting 
and all entities, both large and small, were able to express views on 
this issue.
    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 OMB and assigned OMB No. 0581-0189, Fruit Crops. 
No changes in those requirements are necessary as a result of this 
action. Should any changes become necessary, they would be submitted to 
OMB for approval.
    This rule imposes no additional reporting or recordkeeping 
requirements on either small or large California olive handlers. As 
with all Federal marketing order programs, reports and forms are 
periodically reviewed to reduce information requirements and 
duplication by industry and public

[[Page 28523]]

sector agencies. As mentioned in the initial regulatory flexibility 
analysis, USDA has not identified any relevant Federal rules that 
duplicate, overlap, or conflict with this final rule.
    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 proposed rule concerning this action was published in the Federal 
Register on April 4, 2018 (83 FR 14379). A copy of the proposed rule 
was provided to the handlers by the Committee. Finally, the proposal 
was made available through the internet by USDA and the Office of the 
Federal Register. A 30-day comment period ending May 4, 2018, was 
provided for interested persons to respond to the proposal. No comments 
were received. The proposal also contained administrative revisions to 
the Order's subpart headings to bring the language into conformance 
with the Office of Federal Register requirements. Those revisions are 
not included in this rule as they were included in a technical 
amendment final rule published in the Federal Register on April 6, 2018 
(83 FR 14736).
    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/rules-regulations/moa/small-businesses. Any questions 
about the compliance guide should be sent to Richard Lower at the 
previously-mentioned address in the FOR FURTHER INFORMATION CONTACT 
section.
    After consideration of all relevant material presented, including 
the information and recommendation submitted by the Committee and other 
available information, it is hereby found that this rule will tend to 
effectuate the declared policy of the Act.

List of Subjects in 7 CFR Part 932

    Marketing agreements, Olives, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 932 is 
amended as follows:

PART 932--OLIVES GROWN IN CALIFORNIA

0
1. The authority citation for part 932 continues to read as follows:

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

0
2. Section 932.230 is revised to read as follows:


Sec.  932.230   Assessment rate.

    On and after January 1, 2018, an assessment rate of $24.00 per ton 
is established for California olives.

    Dated: June 15, 2018.
Bruce Summers,
Administrator, Agricultural Marketing Service.
[FR Doc. 2018-13271 Filed 6-19-18; 8:45 am]
 BILLING CODE 3410-02-P