[Federal Register Volume 84, Number 32 (Friday, February 15, 2019)]
[Rules and Regulations]
[Pages 4307-4309]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-02517]



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 Rules and Regulations
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains regulatory documents 
 having general applicability and legal effect, most of which are keyed 
 to and codified in the Code of Federal Regulations, which is published 
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  Federal Register / Vol. 84, No. 32 / Friday, February 15, 2019 / 
Rules and Regulations  

[[Page 4307]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 932

[Doc. No. AMS-SC-18-0061; SC18-932-1 FR]


Olives Grown in California; Establish Procedures To Meet Via 
Electronic Communications

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 establish procedures to conduct meetings 
and voting using electronic means of communication.

DATES: Effective March 18, 2019.

FOR FURTHER INFORMATION CONTACT: Kathie Notoro, Marketing Specialist, 
or Terry Vawter, Senior Marketing Specialist, 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'[thinsp]'' (February 2, 2017).
    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. This 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. 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.
    On May 17, 2018 (83 FR 22831), the Agricultural Marketing Service 
published a final rule amending 7 CFR part 900, the general regulations 
for federal fruit, vegetable, and specialty crop marketing agreements 
and orders, to authorize the use of electronic means of communication 
for meetings and voting.
    During a meeting on June 13, 2018, the Committee unanimously 
recommended adoption of modern communication methods to conduct 
Committee meetings, as outlined in the Federal Register final rule 
referenced above (83 FR 22831). On August 17, 2018, the Committee 
unanimously approved the recommended procedures for the use of 
communication technology. This rule establishes those procedures in a 
new Sec.  932.136, Use of communication technology under Subpart B--
Administrative Requirements.
    The Order currently states that the Committee may only meet in 
assembled, in-person, meetings and that voting may only be conducted at 
meetings or via mail or telegraph. Such limitations present logistical 
problems for many Committee members since membership is widely 
distributed across California. Some members travel over 400 miles to 
attend a Committee meeting, thus resulting in lost work hours and 
increased costs for the Committee. Allowing the Committee to conduct 
meetings via electronic means of communication will likely result in 
increased member participation and productivity at a reduced cost, as 
well as greater potential for meeting quorum and voting requirements.
    The Committee recommended that audio or audiovisual technology 
(AVT) that facilitates open communication and effectively assembles 
Committee members be used to conduct meetings by AVT or partial in-
person meetings (meaning some members not present participate in an in-
person meeting via technology). These meetings are subject to the same 
quorum and voting requirements currently in effect for in-person 
meetings under Sec.  932.36. These requirements define a quorum as a 
majority of the 16-member Committee, of which at least half are 
producer members and half are handler members. Voting requirements 
state that a passing recommendation must receive a majority vote, with 
at least half of the voting members representing producers and half 
representing handlers. For recommendations regarding grade and size, a 
minimum of ten votes representing five producer and five handler 
members are necessary for approval. The requirements further state that 
issues to be voted on shall be explained accurately and fully, and that

[[Page 4308]]

all votes cast will be confirmed through a roll call.
    Regarding casting votes electronically, those votes are subject to 
the same requirements currently in effect for mail voting in Sec.  
932.36. These requirements state that advanced notice, as well as an 
accurate, full and identical description of the issues to be voted on, 
be given to all members. For a recommendation to pass, at least 14 
affirmative votes representing seven producer and seven handler members 
are required.
    The Committee recommended these changes to provide an opportunity 
to conduct meetings more efficiently and cost-effectively; use of audio 
and/or audiovisual communication technology will result in time and 
cost savings to the Committee and its members by allowing for meetings 
to be conducted with all or a portion of its membership attending by 
audio and/or AVT.

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 action 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 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 on National Agricultural Statistics Service (NASS) 
information, the average price to producers for the 2017 crop year was 
$974.00 per ton, and total assessable volume for the 2017 crop year was 
83,799 tons. Based on production, price paid to producers, and the 
total number of California olive producers, the average annual producer 
revenue is less than $750,000 ($974.00 times 83,799 tons equals 
$81,620,226, divided by 1,100 producers equals an average annual 
producer revenue of $74,200). Based on Committee data, both handlers 
may be classified as large entities under the SBA's definitions because 
their annual receipts are greater than $7,500,000.
    This rule does not impose additional costs on handlers or producers 
of any size. Committee members are expected to see a reduction in their 
travel expenses and time lost from work to attend Committee meetings in 
person. Thus, this rule reduces the cost burden on both handlers and 
producers.
    The Committee considered the alternative of making no changes to 
the regulations. However, it was determined that by taking no action, 
the Committee is unnecessarily limiting the participation of some 
members due to time constraints and travel considerations. Therefore, 
the Committee determined that recommending this change was in the best 
interest of the Committee, its members, and the industry.
    Like all Committee meetings, the June 13, 2018, meeting was public 
and widely publicized throughout the production area. All entities, 
both large and small, were able to express their views on this issue 
and participate in Committee deliberations. Following the meeting, 
ballots along with the proposed procedures were sent to all Committee 
members on July 31, 2018, and the mail vote concluded on August 17, 
2018. The proposal received unanimous support.
    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. 0581-0178 Vegetable 
Crops. No changes in those requirements are necessary because 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 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 final rule.
    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.
    A proposed rule concerning this action was published in the Federal 
Register on November 16, 2018 (83 FR 57691). Copies of the proposed 
rule were provided to all olive producers and handlers. The proposal 
was also made available through the internet by USDA and the Office of 
Federal Register. A 30-day comment period ending December 17, 2018, was 
provided for interested persons to respond to the proposal.
    One comment was received stating that all information communicated 
should be placed on the labels of jars of olives. After further review 
of the comment, it was determined to be outside the scope of this 
action. Accordingly, no changes will be made to the rule as proposed, 
based on the comment received.
    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 7 CFR part 932 continues to read as 
follows:

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


0
2. Add Sec.  932.136 to subpart B to read as follows:


Sec.  932.136  Use of communication technology.

    The Committee may conduct meetings by any means of audio and/or 
audiovisual communication technology available that effectively 
assembles members and alternates, and facilitates open communication; 
Provided, That, quorum and voting requirements specified in Sec.  
932.36 for physically assembled meetings shall apply. The Committee may 
also vote electronically; Provided, That, such voting shall be subject 
to the same requirements specified for mail voting in Sec.  932.36.


[[Page 4309]]


    Dated: February 12, 2019.
Bruce Summers,
Administrator, Agricultural Marketing Service.
[FR Doc. 2019-02517 Filed 2-14-19; 8:45 am]
BILLING CODE 3410-02-P