29684 Federal Register / Vol. 75, No. 102 / Thursday, May 27, 2010 / Proposed Rules 

export in Mexico or the port of first 

arrival in the United States. 

* * * * * 

Done in Washington, DC, this 20th day 

of May 2010. 

Kevin Shea 

Acting Administrator, Animal and Plant 

Health Inspection Service. 

[FR Doc. 2010–12823 Filed 5–26–10: 8:45 am] 

BILLING CODE 3410–34–S 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 930 

[Doc. No. AMS–FV–10–0029; FV10–930–2 

PR] 

Tart Cherries Grown in the States of 

Michigan, et al.; Increased Assessment 

Rate for the 2010–2011 Crop Year for 

Tart Cherries 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Proposed rule. 

SUMMARY: This rule would increase the 

assessment rate established for the 

Cherry Industry Administrative Board 

(Board) for the 2010–2011 fiscal period 

from $0.0066 to $0.0075 per pound of 

assessable tart cherries. The Board 

locally administers the marketing order 

which regulates the handling of tart 

cherries grown in Michigan, New York, 

Oregon, Pennsylvania, Utah, 

Washington, and Wisconsin. 

Assessments upon tart cherry handlers 

are used by the Board to fund 

reasonable and necessary expenses of 

the program. The 2010–2011 fiscal 

period year begins October 1, 2010. The 

assessment rate would remain in effect 

indefinitely unless modified, 

suspended, or terminated. 

DATES: Comments must be received by 

July 26, 2010. 

ADDRESSES: Interested persons are 

invited to submit written comments 

concerning this rule. Comments must be 

sent to the Docket Clerk, Marketing 

Order Administration Branch, Fruit and 

Vegetable Programs, 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 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 

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: 

Kenneth G. Johnson, Marketing Order 

Administration Branch, Fruit and 

Vegetable Programs, AMS, USDA, Unit 

155, 4700 River Road, Riverdale, MD 

20737; telephone: (301) 734–5243, Fax: 

(301) 734–5275; E-mail: 

Kenneth.Johnson@ams.usda.gov. 

Small businesses may request 

information on complying with this 

regulation by contacting Antoinette 

Carter, Marketing Order Administration 

Branch, Fruit and Vegetable Programs, 

AMS, USDA, 1400 Independence 

Avenue, SW., STOP 0237, Washington, 

DC 20250–0237; telephone: (202) 720– 

2491, Fax: (202) 720–8938, or E-mail: 

Antoinette.Carter@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: This rule 

is issued under Marketing Agreement 

and Order No. 930 (7 CFR part 930), 

regulating the handling of tart cherries 

produced in the States of Michigan, 

New York, Pennsylvania, Oregon, Utah, 

Washington, and Wisconsin, 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.’’ 

The Department of Agriculture 

(USDA) is issuing this rule in 

conformance with Executive Order 

12866. 

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. Under the marketing order 

provisions now in effect, tart cherry 

handlers are subject to assessments. 

Funds to administer the order are 

derived from such assessments. It is 

intended that the assessment rate as 

proposed herein would be applicable to 

all assessable tart cherries beginning 

October 1, 2010, 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 exempt 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 in equity 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 would increase the 

assessment rate established for the 

Board for the 2010–2011 and 

subsequent fiscal periods from $0.0066 

to $0.0075 per pound of assessable tart 

cherries. The 2010–2011 fiscal period 

begins on October 1, 2010, and ends on 

September 30, 2011. 

The tart cherry marketing order 

provides authority for the Board, 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 Board 

are producers and handlers of tart 

cherries. They are familiar with the 

Board’s needs and with the costs for 

goods and services in their local area 

and are thus in a position to formulate 

an appropriate budget and assessment 

rate. The assessment rate is formulated 

and discussed in a public meeting. 

Thus, all directly affected persons have 

an opportunity to participate and 

provide input. 

Authority to fix the rate of assessment 

to be paid by each handler and for the 

Board to collect such assessments 

appears in § 930.41 of the order. That 

section also provides that each part of 

an assessment rate intended to cover 

administrative costs and research and 

promotional costs be identified. Section 

930.48 of the order provides that the 

Board, with the approval of the USDA, 

may establish or provide for the 

establishment of production research, 

market research and development, and/ 

or promotional activities designed to 

assist, improve, or promote the 

marketing, distribution, consumption, 

or efficient production of cherries. The 

expense of such projects is paid from 

funds collected pursuant to § 930.41 

(Assessments), or from such other funds 

as approved by the USDA. 

For the 2006–2007 fiscal year, the 

Board recommended, and USDA 

approved, an assessment rate of $0.0066 

per pound of tart cherries handled that 

would continue in effect from fiscal 

period to fiscal period unless modified, 

suspended, or terminated by USDA 

upon recommendation and information 

submitted by the Board or other 

information available to USDA. 

The Board met on January 26, 2010, 

and recommended 2010–2011 

expenditures of $1,665,000 and an 

assessment rate of $0.0075 per pound of 

tart cherries. The Board’s 

recommendation was unanimous. In 

comparison, last year’s budgeted 

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Federal Register / Vol. 75, No. 102 / Thursday, May 27, 2010 / Proposed Rules 29685 

expenses were $1,558,900. The Board 

recommended that the assessment rate 

be increased to cover increases in 

administrative expenses. The 

assessment rate has not been increased 

in four years. The current assessment 

rate to cover administrative costs is 

$0.0016. The proposed increase would 

raise the assessment rate for 

administrative expenses to $0.0025. In 

addition, a portion of the assessment 

rate ($0.005 per pound of cherries) 

would continue to fund the Board’s 

research and promotion program. The 

total assessment rate for 2010–2011 and 

beyond would be $0.0075, an increase 

of approximately 14 percent over the 

current rate of $0.0066. 

The major expenditures 

recommended by the Board for the 

2010–2011 year include $1,150,000 for 

promotion, $213,000 for personnel, 

$109,000 for compliance, $102,000 for 

office expenses, $86,000 for Board 

meetings, and $5,000 for industry 

educational efforts. Budgeted expenses 

for major items in 2009–2010 were 

$1,150,000 for promotion, $175,900 for 

personnel, $92,800 for Board meetings, 

$44,200 for compliance, $58,400 for 

office expenses, and $2,500 for industry 

educational efforts. 

In deriving the recommended 

assessment rate, the Board estimated 

assessable tart cherry production for the 

fiscal period at 230 million pounds. 

Therefore, total assessment income for 

2010–2011 is estimated at $1,725,000 

(230 million pounds x $0.0075). This 

would be adequate to cover budgeted 

expenses. Any excess funds would be 

placed in the financial reserve, which is 

estimated to be $267,000, well within 

the approximately six months’ operating 

expenses as required by § 930.42(a). 

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 Board or other 

available information. 

Although the assessment rate would 

be effective for an indefinite period, the 

Board would 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 Board meetings are 

available from the Board or the USDA. 

Board meetings are open to the public 

and interested persons may express 

their views at these meetings. USDA 

will evaluate Board recommendations 

and other available information to 

determine whether modification of the 

assessment rate is needed. Further 

rulemaking would be undertaken as 

necessary. The Board’s 2010–2011 

budget and those for subsequent fiscal 

periods would be reviewed and, as 

appropriate, approved by the 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 

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 

business 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 40 handlers 

of tart cherries who are subject to 

regulation under the tart cherry 

marketing order and approximately 600 

producers of tart cherries in the 

regulated area. Small agricultural 

service firms, which includes handlers, 

have been defined by the Small 

Business Administration (SBA) (13 CFR 

121.201) as those having annual receipts 

of less than $7,000,000, and small 

agricultural producers are defined as 

those having annual receipts of less than 

$750,000. A majority of the producers 

and handlers are considered small 

entities under SBA’s standards. 

The principal demand for tart cherries 

is in the form of processed products. 

Tart cherries are dried, frozen, canned, 

juiced, and pureed. During the period 

1997/98 through 2008/09, 

approximately 96 percent of the U.S. 

tart cherry crop, or 244.4 million 

pounds, was processed annually. Of the 

244.4 million pounds of tart cherries 

processed, 61 percent was frozen, 27 

percent was canned, and 12 percent was 

utilized for juice and other products. 

Based on National Agricultural 

Statistics Service data, acreage in the 

United States devoted to tart cherry 

production has been trending 

downward. Bearing acreage has 

declined from a high of 50,050 acres in 

1987/88 to 34,650 acres in 2008/09. This 

represents a 31 percent decrease in total 

bearing acres. Michigan leads the nation 

in tart cherry acreage with 70 percent of 

the total and produces about 75 percent 

of the U.S. tart cherry crop each year. 

This rule would increase the 

assessment rate established for the 

Board for the 2010–2011 and 

subsequent fiscal periods from $0.0066 

to $0.0075 per pound of assessable tart 

cherries. The 2010–2011 fiscal period 

begins on October 1, 2010, and ends on 

September 30, 2011. 

The Board discussed continuing the 

existing assessment rate, but concluded 

that the rate needed to be increased in 

order to meet recommended expenses. 

The assessment rate has not been 

increased for four years. 

A review of preliminary information 

pertaining to the upcoming fiscal period 

indicates that the grower price for tart 

cherries for the 2010–2011 season could 

range between $0.15 and $0.20 per 

pound. Therefore, the estimated 

assessment revenue for the 2010–2011 

fiscal period as a percentage of total 

grower revenue could be or range 

between 3.75 and 5 percent. 

This action would increase the 

assessment obligation imposed on 

handlers. While assessments impose 

some additional costs on handlers, the 

costs are minimal and uniform on all 

handlers. Some of the additional costs 

may be passed on to producers. 

However, these costs will be offset by 

the benefits derived by the operation of 

the marketing order. In addition, the 

Board’s meeting was widely publicized 

throughout the tart cherry industry and 

all interested persons were invited to 

attend the meeting and participate in 

Board deliberations on all issues. Like 

all Board meetings, all entities, both 

large and small, were able to express 

views on this issue. Finally, interested 

persons are invited to submit 

information on the regulatory and 

informational impacts of this action on 

small businesses. 

This proposed rule would impose no 

additional reporting or recordkeeping 

requirements on either small or large 

tart cherry 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 regulation. 

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/ 

AMSv1.0/ams.fetchTemplateData

.do?template=TemplateN&

page=MarketingOrdersSmallBusiness

Guide. Any questions about the 

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29686 Federal Register / Vol. 75, No. 102 / Thursday, May 27, 2010 / Proposed Rules 

compliance guide should be sent to 

Antoinette Carter at the previously 

mentioned address in the FOR FURTHER

INFORMATION CONTACT section. 

A 60-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 matter. 

List of Subjects in 7 CFR Part 930 

Marketing agreements, Reporting and 

recordkeeping requirements, Tart 

cherries. 

For the reasons set forth in the 

preamble, 7 CFR part 930 is proposed to 

be amended as follows: 

PART 930—TART CHERRIES GROWN 

IN THE STATES OF MICHIGAN, NEW 

YORK, PENNSYLVANIA, OREGON, 

UTAH, WASHINGTON, AND 

WISCONSIN 

1. The authority citation for 7 CFR 

part 930 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

2. Section 930.200 is revised to read 

as follows: 

§ 930.200 Assessment rate. 

On and after October 1, 2010, the 

assessment rate imposed on handlers 

shall be $0.0075 per pound of tart 

cherries grown in the production area 

and utilized in the production of tart 

cherry products. Included in this rate is 

$0.005 per pound of cherries to cover 

the cost of the research and promotion 

program and $0.0025 per pound of 

cherries to cover administrative 

expenses. 

Dated: May 19, 2010. 

Rayne Pegg, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. 2010–12466 Filed 5–26–10; 8:45 am] 

BILLING CODE P 

DEPARTMENT OF THE TREASURY 

Alcohol and Tobacco Tax and Trade 

Bureau 

27 CFR Part 9 

[Notice No. 105; Docket No. TTB–2010– 

0003] 

RIN 1513–AB41 

Proposed Establishment of the Pine 

Mountain-Mayacmas Viticultural Area 

AGENCY: Alcohol and Tobacco Tax and 

Trade Bureau, Treasury. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: The Alcohol and Tobacco Tax 

and Trade Bureau proposes to establish 

the 4,600-acre ‘‘Pine MountainMayacmas’’ American viticultural area 

in portions of Mendocino and Sonoma 

Counties, California. We designate 

viticultural areas to allow vintners to 

better describe the origin of their wines 

and to allow consumers to better 

identify wines they may purchase. We 

invite comments on this proposed 

addition to our regulations. 

DATES: We must receive written 

comments on or before July 26, 2010. 

ADDRESSES: You may send comments on 

this notice to one of the following 

addresses: 

• http://www.regulations.gov: Use the 

comment form for this notice as posted 

within Docket No. TTB–2010–0003 on 

‘‘Regulations.gov,’’ the Federal erulemaking portal, to submit comments 

via the Internet; 

• Mail: Director, Regulations and 

Rulings Division, Alcohol and Tobacco 

Tax and Trade Bureau, P.O. Box 14412, 

Washington, DC 20044–4412. 

• Hand Delivery/Courier in Lieu of 

Mail: Alcohol and Tobacco Tax and 

Trade Bureau, 1310 G Street, NW., Suite 

200–E, Washington, DC 20005. 

See the Public Participation section of 

this notice for specific instructions and 

requirements for submitting comments, 

and for information on how to request 

a public hearing. 

You may view copies of this notice, 

selected supporting materials, and any 

comments we receive about this 

proposal within Docket No. TTB–2010– 

0003 at http://www.regulations.gov. A 

direct link to this docket is posted on 

the TTB Web site at http://www.ttb.gov/ 

wine/wine-rulemaking.shtml under 

Notice No. 105. You also may view 

copies of this notice, all supporting 

materials, and any comments we receive 

about this proposal by appointment at 

the TTB Information Resource Center, 

1310 G Street, NW., Washington, DC 

20220. Please call 202–453–2270 to 

make an appointment. 

FOR FURTHER INFORMATION CONTACT: N.A. 

Sutton, Regulations and Rulings 

Division, Alcohol and Tobacco Tax and 

Trade Bureau, 925 Lakeville St., No. 

158, Petaluma, CA 94952; phone 415– 

271–1254. 

SUPPLEMENTARY INFORMATION: 

Background on Viticultural Areas 

TTB Authority 

Section 105(e) of the Federal Alcohol 

Administration Act (FAA Act), 27 

U.S.C. 205(e), authorizes the Secretary 

of the Treasury to prescribe regulations 

for the labeling of wine, distilled spirits, 

and malt beverages. The FAA Act 

requires that these regulations, among 

other things, prohibit consumer 

deception and the use of misleading 

statements on labels, and ensure that 

labels provide the consumer with 

adequate information as to the identity 

and quality of the product. The Alcohol 

and Tobacco Tax and Trade Bureau 

(TTB) administers the regulations 

promulgated under the FAA Act. 

Part 4 of the TTB regulations (27 CFR 

part 4) allows the establishment of 

definitive viticultural areas and the use 

of their names as appellations of origin 

on wine labels and in wine 

advertisements. Part 9 of the TTB 

regulations (27 CFR part 9) contains the 

list of approved viticultural areas. 

Definition 

Section 4.25(e)(1)(i) of the TTB 

regulations (27 CFR 4.25(e)(1)(i)) defines 

a viticultural area for American wine as 

a delimited grape-growing region 

distinguishable by geographical 

features, the boundaries of which have 

been recognized and defined in part 9 

of the regulations. These designations 

allow vintners and consumers to 

attribute a given quality, reputation, or 

other characteristic of a wine made from 

grapes grown in an area to its 

geographic origin. The establishment of 

viticultural areas allows vintners to 

describe more accurately the origin of 

their wines to consumers and helps 

consumers to identify wines they may 

purchase. Establishment of a viticultural 

area is neither an approval nor an 

endorsement by TTB of the wine 

produced in that area. 

Requirements 

Section 4.25(e)(2) of the TTB 

regulations outlines the procedure for 

proposing an American viticultural area 

and provides that any interested party 

may petition TTB to establish a grapegrowing region as a viticultural area. 

Section 9.3(b) of the TTB regulations 

requires the petition to include— 

• Evidence that the proposed 

viticultural area is locally and/or 

nationally known by the name specified 

in the petition; 

• Historical or current evidence that 

supports setting the boundary of the 

proposed viticultural area as the 

petition specifies; 

• Evidence relating to the geographic 

features, such as climate, soils, 

elevation, and physical features, that 

distinguish the proposed viticultural 

area from surrounding areas; 

• A description of the specific 

boundary of the proposed viticultural 

area, based on features found on United 

WReier-Aviles on DSKGBLS3C1PROD with PROPOSALS