[Federal Register Volume 84, Number 185 (Tuesday, September 24, 2019)]
[Rules and Regulations]
[Pages 49942-49944]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-20343]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1208
[Document Number AMS-SC-19-0047]
Processed Raspberry Promotion, Research, and Information Order;
Termination
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule; termination order.
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SUMMARY: This final rule terminates the Processed Raspberry Promotion,
Research, and Information Order (Order) in its entirety. This action is
necessary because termination of the Order was favored by a majority of
the eligible producers and importers voting in a referendum conducted
from September 10 through October 5, 2018.
DATES: Effective Date: September 25, 2019.
FOR FURTHER INFORMATION CONTACT: Patricia Petrella, Deputy Director,
Promotion and Economics Division, Specialty Crop Program, AMS, USDA,
1400 Independence Avenue SW, Stop 0244, Room 1406-S, Washington, DC
20250-0244, telephone (202)720-9915, facsimile (202) 205-2800, or
electronic mail: [email protected].
SUPPLEMENTARY INFORMATION: This final rule affecting 7 CFR part 1208 is
authorized under the Commodity Promotion, Research, and Information Act
of 1996 (1996 Act) (7 U.S.C. 7411-7425). The Processed Raspberry
Promotion, Research, and Information Order, referred to herein as the
``Order'', is codified at 7 CFR part 1208.
Prior documents in this proceeding: Termination of Assessments,
February 20, 2019 [84 FR 4951], Continuance Referendum, July 25, 2018
[83 FR 35153]; Processed Raspberry Promotion, Research, and Information
Order, May 8, 2012 [77 FR 26911]; and Referendum Procedures, February
8, 2010 [75 FR 6089].
Executive Orders 12866, 13563, and 13771
Executive Orders 12866 and 13563 direct agencies to assess all
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts and equity). Executive
Order 13563 emphasizes the importance of quantifying both costs and
benefits, reducing costs, harmonizing rules and promoting flexibility.
This final rule 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).
Executive Order 13175
This final rule has been reviewed in accordance with the
requirements of Executive Order 13175, Consultation and Coordination
with Indian Tribal Governments. The review reveals that this rule will
not have substantial and direct effects on Tribal governments and
[[Page 49943]]
will not have significant Tribal implications.
Executive Order 12988
In addition, this final rule has been reviewed under Executive
Order 12988, Civil Justice Reform. It is not intended to have
retroactive effect. Section 524 of the 1996 Act (7 U.S.C. 7423)
provides that it shall not affect or preempt any other State or Federal
law authorizing promotion or research relating to an agricultural
commodity.
Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.),
the Office of Information and Regulatory Affairs designated this rule
as not a major rule, as defined by 5 U.S.C. 804(2).
Under section 519 of the 1996 Act (7 U.S.C. 7418), a person subject
to an order may file a written petition with USDA stating that an
order, any provision of an order, or any obligation imposed in
connection with an order, is not established in accordance with the
law, and request a modification of an order or an exemption from an
order. Any petition filed challenging an order, any provision of an
order, or any obligation imposed in connection with an order, shall be
filed within two years after the effective date of an order, provision,
or obligation subject to challenge in the petition. The petitioner will
have the opportunity for a hearing on the petition. Thereafter, USDA
will issue a ruling on the petition. The 1996 Act provides that the
district court of the United States for any district in which the
petitioner resides or conducts business shall have the jurisdiction to
review a final ruling on the petition, if the petitioner files a
complaint for that purpose not later than 20 days after the date of the
entry of USDA's final ruling.
Background
This final rule terminates the Order as prescribed in its Sec.
1208.72 and section 522 of the 1996 Act. The 1996 Act authorizes a
national processed raspberry promotion, research, and information
program. In accordance with the 1996 Act, upon the request of the
industry, USDA developed and implemented the Order, which became
effective on May 9, 2012.
The Order covered persons who grew 20,000 pounds or more of
raspberries for processing in the United States or imported 20,000
pounds or more of processed raspberries into the United States.
Section 518(c) of the 1996 Act (7 U.S.C. 7417(c)), and Sec.
1208.71(b) of the Order provide that the Secretary of Agriculture
(Secretary) shall conduct a subsequent referendum among people subject
to assessments. The Order states that subsequent referenda will be held
every seven years to determine whether producers of raspberries for
processing and importers of processed raspberries favor continuance of
the Order. A referendum also may be held by request of 10 percent or
more of eligible voters, by request of the Council established by the
Order, or when the Secretary deems it necessary. The Order shall
continue if it is favored by a majority of producers and importers
voting in the referendum, who during a representative period, have been
engaged in the production or importation of processed raspberries.
In March 2018, USDA received a petition requesting a referendum
from more than the required 10 percent of eligible producers of
raspberries for processing and importers of processed raspberries. As
such, a referendum was held from September 10 through October 5, 2018.
The representative period for establishing voter eligibility was
January 1 through December 31, 2017. Persons who grew 20,000 pounds or
more of raspberries for processing in the United States or imported
20,000 pounds or more of processed raspberries into the United States
during the representative period and were subject to assessment during
the representative period were eligible to vote. Notice of the
referendum was published in the Federal Register on July 25, 2018 (83
FR 35153). Termination of the Order was favored by 57 percent of the
eligible producers and importers voting in the referendum.
In addition, in accordance with Sec. 1208.73 of the Order, the
USDA appointed three members of the Council to serve as trustees for
the purpose of liquidating the assets of the Council.
Regulatory Flexibility Act Analysis
In accordance with the Regulatory Flexibility Act (RFA) (5 U.S.C.
601-612), AMS is required to examine the economic impact of this rule
on small entities. Accordingly, AMS has considered the economic impact
of this action on such entities.
The purpose of the RFA is to fit regulatory actions to the scale of
businesses subject to such actions so that small businesses will not be
disproportionately burdened. The Small Business Administration (SBA)
defines, in 13 CFR part 121, small agricultural producers as those
having annual receipts of no more than $750,000 and small agricultural
service firms (handlers and importers) as those having annual receipts
of no more than $7.5 million.
According to the Council, it is estimated that there are 160
producers of raspberries for processing and 30 first handlers of
raspberries for processing in the United States. Dividing the processed
raspberry crop value for 2017 reported by the National Agricultural
Statistics Service (NASS) of $102,691,456 \1\ by the number of
producers yields an annual average producer revenue of $641,821. It is
estimated that 75 percent of first handlers shipped under $7.5 million
worth of processed raspberries.
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\1\ Noncitrus Fruits and Nuts 2017 Summary, June 2018, USDA,
National Agricultural Statistics Service, pg. 83.
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Likewise, based on U.S. Customs data, it is estimated there are 136
importers of processed raspberries. Using 2017 Customs data, nearly all
importers, or 99 percent, import less than $7.5 million worth of
processed raspberries annually. Thus, the majority of domestic
producers, first handlers, and importers of processed raspberries would
be considered small entities.
Regarding the value of the commodity, as mentioned above, based on
2017 NASS data, the value of the domestic crop was about $102 million.
According to U.S. Customs data, the value of 2017 imports was about $55
million.
According to the Council, in 2017 there were 202 eligible producers
and importers who paid about $1.2 million in assessments. When the
Order was published in the Federal Register on May 8, 2012, the USDA
stated that an anticipated $1.2 million of assessments would be
collected from about 245 eligible entities. The assessment rate
currently is one cent per pound of processed raspberries. This is the
same rate that was set when the program first started. USDA has issued
a rule to terminate the assessments which was effective on February 21,
2019 (84 FR 4951).
Although research and promotion order requirements are imposed on
handlers and importers, the costs of the requirements are often passed
on to producers. Termination of the Order, and the resulting regulatory
relaxation, would therefore be expected to reduce costs for handlers,
importers and producers.
This action will not impose any additional reporting or
recordkeeping requirements on either large or small producers or
importers of processed raspberries.
The Department has not identified any relevant Federal rules that
duplicate, overlap, or conflict with this rule.
Termination Order
Termination of the Order was favored by a majority of the eligible
producers
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and importers voting in a referendum conducted in September and October
2018. The Act requires that, upon such a determination by referendum,
the Department shall terminate the Order. The assets of the Council
have been liquidated, and a final audit of the Council's books has been
conducted.
It is therefore ordered, that pursuant to section 522 of the Act,
the Order is hereby terminated.
It is also found and determined upon good cause that it is
impracticable, unnecessary, and contrary to the public interest to give
preliminary notice or to engage in further public procedure prior to
putting this action into effect, and that good cause exists for not
postponing the effective date of this action until 30 days after
publication in the Federal Register because (1) this action relieves
restrictions on handlers and importers by terminating the requirements
of the Order; (2) termination of the Order was favored by a majority of
qualified producers and importers voting in a referendum in September-
October 2018; and (3) the assets of the Council have been liquidated
and a final audit of the Council's books has been conducted.
List of Subjects in 7 CFR Part 1208
Administrative practice and procedure, Advertising, Consumer
information, Marketing agreements, Raspberry promotion, Reporting and
recordkeeping requirements.
PART 1208--[REMOVED]
0
For the reasons set forth in the preamble, and under the authority of 7
U.S.C. 6802 et seq., 7 CFR part 1208 is removed.
Dated: September 16, 2019.
Bruce Summers,
Administrator.
[FR Doc. 2019-20343 Filed 9-23-19; 8:45 am]
BILLING CODE 3410-02-P