[Federal Register Volume 84, Number 185 (Tuesday, September 24, 2019)]
[Proposed Rules]
[Pages 49963-49965]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-20572]


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 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. 84, No. 185 / Tuesday, September 24, 2019 / 
Proposed Rules  

[[Page 49963]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 993

[Doc. No. AMS-SC-19-0056; SC19-993-1 PR]


Dried Prunes Produced in California; Decreased Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This proposed rule would implement a recommendation from the 
Prune Marketing Committee (Committee) to decrease the assessment rate 
established for the 2019-20 and subsequent crop years from $0.28 to 
$0.25 per ton of salable dried prunes. The assessment rate would remain 
in effect indefinitely unless modified, suspended, or terminated.

DATES: Comments must be received by October 24, 2019.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposed rule. 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. Comments should reference the document number and 
the date and page number of this issue of the Federal Register and will 
be available for public inspection in the Office of the Docket Clerk 
during regular business hours, or can be viewed at: http://www.regulations.gov. All comments submitted in response to this 
proposed rule 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 
Terry Vawter, Regional Director, California Marketing Field Office, 
Marketing Order and Agreement Division, Specialty Crops Program, AMS, 
USDA; Telephone: (559) 538-1674, 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, 
proposes to amend regulations issued to carry out a marketing order as 
defined in 7 CFR 900.2(j). This proposed rule is issued under Marketing 
Agreement and Order No. 993, as amended (7 CFR part 993), regulating 
the handling of dried prunes produced in California. Part 993 (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 dried prunes operating 
within the production area, and a public member.
    The Department of Agriculture (USDA) is issuing this proposed 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 proposal 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 proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. Under the Order now in effect, California dried 
prune handlers are subject to assessments. Funds to administer the 
Order are derived from such assessments. It is intended that the 
assessment rate will be applicable to all assessable dried prunes 
beginning on August 1, 2019, 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 a marketing order may file with USDA a 
petition stating that the marketing order, any provision of the 
marketing order, or any obligation imposed in connection with the 
marketing order is not in accordance with law and request a 
modification of the marketing 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.
    The Order authorizes 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 are familiar with the 
costs of goods and services in their local area and can formulate an 
appropriate budget and assessment rate. The Committee formulates and 
discusses the assessment rate in a public meeting where all directly 
affected persons have an opportunity to participate and provide input.
    This proposed rule would decrease the assessment rate for the 2019-
20 and subsequent crop years from $0.28 to $0.25 per ton of salable 
dried prunes handled for the 2019-20 and subsequent crop years.
    The Order's assessment rate of $0.28 had been in effect since the 
2013-14 crop year. The Committee met on June 20, 2019, and unanimously 
recommended 2019-20 crop year expenditures of $24,500 and an assessment 
rate of $0.25 per ton of salable dried prunes. In comparison, last 
year's budgeted expenditures were $20,470. The assessment rate of $0.25 
is $0.03 lower than the rate currently in effect. The Committee 
recommended decreasing the assessment rate to reflect an anticipated 
larger crop, which is expected to result in assessment

[[Page 49964]]

revenue greater than anticipated expenses.
    The major expenditures recommended by the Committee for the 2019-20 
year include $13,300 for personnel, and $11,200 for operating expenses. 
In comparison, budgeted expenses for these items in 2018-19 were 
$10,490, and $9,980, respectively.
    The assessment rate recommended by the Committee was derived by 
considering anticipated expenses and expected shipments of 110,000 tons 
of salable dried prunes. Income derived from proposed reduced handler 
assessment estimated to be $27,500 (110,000 x $0.25), along with 
interest income, would be adequate to cover budgeted expenses of 
$24,500.
    The assessment rate proposed in this rule would 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 would be effective for an indefinite 
period, the Committee will continue to meet prior to or during each 
crop year 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 may 
express their views at these meetings. USDA would 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 2019-20 crop year budget 
and those for subsequent crop years would be reviewed and, as 
appropriate, approved by USDA.

Initial 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 proposed rule 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 are unique in that they are brought about through 
group action of essentially small entities acting on their own behalf.
    There are approximately 800 producers of dried prunes in the 
production area and 20 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).
    According to Committee data, the average price for California dried 
prunes during the 2017-18 season was approximately $1,980 per ton with 
a total production of 105,000 tons. Using the average price and 
shipment information, the number of handlers (20), and assuming a 
normal distribution, the majority of handlers would have average annual 
receipts of greater than $7,500,000. Thus, the majority of California 
dried prune handlers may be classified as large business entities.
    In addition, and assuming a normal distribution, dividing the 
average prune crop value for 2017 reported by the National Agricultural 
Statistics Service (NASS) of $206,084,000, by the number of producers 
(800) yields an average annual producer revenue estimate of about 
$257,605. Based on the foregoing, the majority of producers of 
California dried prunes may be classified as small entities.
    This proposed rule would decrease the assessment rate collected 
from handlers for the 2019-20 and subsequent crop years from $0.28 to 
$0.25 per ton of salable California dried prunes. The Committee 
unanimously recommended 2019-20 expenditures of $24,500 and an 
assessment rate of $0.25 per ton of salable dried prunes handled. The 
proposed assessment rate of $0.25 is $0.03 lower than the rate 
currently in effect. The quantity of assessable dried prunes for the 
2019-20 crop year is estimated at 110,000 tons. Thus, the proposed 
$0.25 rate should provide $27,500 in assessment income (110,000 x 
$0.25). Income derived from handler assessments, along with interest 
income, would be adequate to cover budgeted expenses.
    The major expenditures recommended by the Committee for the 2019-20 
crop year include $13,300 for personnel, and $11,200 for operating 
expenses. In comparison, budgeted expenses for these items in 2018-19 
were $10,490, and $9,980, respectively.
    The Committee recommended decreasing the assessment rate, given 
that the increase in crop size and the associated revenue would be 
sufficient to fund its proposed 2019-20 crop year expenses.
    Prior to arriving at this budget and assessment rate, the Committee 
considered information from various sources, such as the Committee's 
Executive Committee and NASS. Alternative expenditure levels were 
discussed by the Executive Committee, which reviewed the relative value 
of various activities to the prune industry. This committee determined 
that all program activities were adequately funded; thus, no alternate 
expenditure levels were deemed appropriate. Additionally, maintaining 
the current assessment rate of $0.28 per ton of salable dried prunes 
was discussed. However, sufficient funds would be generated at the 
larger crop size ($27,500), even if assessed at the lower assessment 
rate proposed. The proposed rate of $0.25 per ton of salable dried 
prunes may exceed anticipated expenses by $3,000, thereby providing 
contingency funds for unexpected expenses.
    Based on these discussions and estimated shipments, the recommended 
assessment rate of $0.25 would provide $27,500 in assessment income. 
The Committee determined that assessment revenue and interest income 
would be adequate to cover budgeted expenses for the 2019-20 crop year.
    A review of historical information and preliminary information 
pertaining to the upcoming crop year indicate that the average grower 
price for the 2019-20 crop year should be approximately $2,000 per ton 
of salable dried prunes. Therefore, the estimated assessment revenue 
for the 2019-20 crop year as a percentage of total grower revenue would 
be about 0.01 percent.
    This proposed rule would decrease the assessment obligation imposed 
on handlers. Assessments are applied uniformly on all handlers, and 
some of the costs may be passed on to producers. Decreasing the 
assessment rate reduces the burden on handlers and may also reduce the 
burden on producers.
    The Committee widely publicizes its meetings throughout the 
California prune industry. The Committee's June 20, 2019, meeting was 
open to the public, and all entities, both large and small, were able 
to express views on all issues. Finally, interested persons are invited 
to submit comments on this proposed rule, including the regulatory and 
information collection impacts of this action on small businesses.
    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

[[Page 49965]]

assigned OMB No. 0581-0178 Vegetable and Specialty 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 proposed rule would not impose any additional reporting or 
recordkeeping requirements on either small or large California prune 
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 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 30-day comment period is provided to allow interested persons to 
respond to this proposal. All written comments timely received will be 
considered before a final determination is made on this rule.

List of Subjects in 7 CFR Part 993

    Marketing agreements, Plum, Prunes, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 993 is 
proposed to be amended as follows:

PART 993--DRIED PRUNES PRODUCED IN CALIFORNIA

0
1. The authority citation for 7 CFR part 993 continues to read as 
follows:

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


Sec.  993.347   [Amended]

0
2. Amend Sec.  993.347 to read as follows:


Sec.  993.347  Assessment rate.

    On and after August 1, 2019, an assessment rate of $0.25 per ton of 
salable dried prunes is established for California dried prunes.

    Dated: September 18, 2019.
Bruce Summers,
Administrator, Agricultural Marketing Service.
[FR Doc. 2019-20572 Filed 9-23-19; 8:45 am]
 BILLING CODE 3410-02-P