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.

Proposed Rules Federal Register

28147 

Vol. 78, No. 93 

Tuesday, May 14, 2013 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 925 

[Doc. No. AMS–FV–13–0005; FV13–925–1 

PR] 

Grapes Grown in Designated Area of 

Southeastern California; Increased 

Assessment Rate 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Proposed rule. 

SUMMARY: This proposed rule would 

increase the assessment rate established 

for the California Desert Grape 

Administrative Committee (Committee) 

for the 2013 and subsequent fiscal 

periods from $0.0150 to $0.0165 per 18- 

pound lug of grapes handled. The 

Committee locally administers the 

marketing order that regulates the 

handling of grapes grown in a 

designated area of southeastern 

California. Assessments upon grape 

handlers are used by the Committee to 

fund reasonable and necessary expenses 

of the program. The fiscal period begins 

January 1 and ends December 31. The 

assessment rate would remain in effect 

indefinitely unless modified, suspended 

or terminated. 

DATES: Comments must be received by 

May 29, 2013. 

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, Fruit and Vegetable 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 docket 

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 comments will be made 

public on the Internet at the address 

provided above. 

FOR FURTHER INFORMATION CONTACT: 

Kathie M. Notoro, Marketing Specialist, 

or Martin Engeler, Regional Director, 

California Marketing Field Office, 

Marketing Order and Agreement 

Division, Fruit and Vegetable Program, 

AMS, USDA; Telephone: (559) 487– 

5901, Fax: (559) 487–5906, or Email: 

Kathie.Notoro@ams.usda.gov or 

Martin.Engeler@ams.usda.gov. 

Small businesses may request 

information on complying with this 

regulation by contacting Jeffrey Smutny, 

Marketing Order and Agreement 

Division, Fruit and Vegetable Program, 

AMS, USDA, 1400 Independence 

Avenue SW., STOP 0237, Washington, 

DC 20250–0237; Telephone: (202) 720– 

2491, Fax: (202) 720–8938, or Email: 

Jeffrey.Smutny@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: This 

proposed rule is issued under Marketing 

Order No. 925, as amended (7 CFR part 

925), regulating the handling of grapes 

grown in a designated area of 

southeastern California, 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 proposed rule in 

conformance with Executive Order 

12866. 

This proposed rule has been reviewed 

under Executive Order 12988, Civil 

Justice Reform. Under the marketing 

order now in effect, grape handlers in a 

designated area of southeastern 

California 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 grapes beginning on 

January 1, 2013, 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 proposed rule would increase 

the assessment rate established for the 

Committee for the 2013 and subsequent 

fiscal periods from $0.0150 to $0.0165 

per 18-pound lug of grapes. 

The grape 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 grapes grown 

in a designated area of southeastern 

California. They are familiar with the 

Committee’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. 

For the 2012 and subsequent fiscal 

periods, the Committee recommended, 

and the USDA approved, an assessment 

rate that would continue in effect from 

fiscal period to fiscal period unless 

modified, suspended, or terminated by 

USDA based upon a recommendation 

and information submitted by the 

Committee or other information 

available to USDA. 

The Committee met on March 4, 2013, 

and unanimously recommended 2013 

expenditures of $100,000 and an 

assessment rate of $0.0165 per 18-pound 

lug of grapes handled. In comparison, 

last year’s budgeted expenditures were 

$95,500. The assessment rate of $0.0165 

is $0.0015 higher than the $0.0150 rate 

currently in effect. The Committee also 

estimated shipments for the 2013 season 

to be 5,800,000 lugs. The higher 

assessment rate, applied to estimated 

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28148 Federal Register / Vol. 78, No. 93 / Tuesday, May 14, 2013 / Proposed Rules 

shipments of 5,800,000 lugs, would 

generate $95,700 in revenue, which is 

slightly less than the budgeted 

expenses. However, combining this 

revenue with $4,300 from financial 

operating reserves would provide 

sufficient revenue to cover the 

Committee’s budgeted expenses. 

The major expenditures 

recommended by the Committee for the 

2013 fiscal period include $15,500 for 

research, $17,000 for general office 

expenses, and $67,500 for management 

and compliance expenses. In 

comparison, major expenditures for the 

2012 fiscal period included $15,500 for 

research, $17,500 for general office 

expenses, and $62,500 for management 

and compliance expenses. 

The assessment rate recommended by 

the Committee was derived by 

evaluating several factors, including 

estimated shipments for the 2013 

season, budgeted expenses, and the 

level of available financial reserves. The 

Committee determined that it could 

utilize $4,300 from its financial reserves 

and still maintain the reserves at an 

acceptable level. The remaining $95,700 

necessary to meet budgeted expenses 

would need to be raised through 

assessments. Thus, dividing the $95,700 

in necessary assessment revenue by 

2013 estimated shipments of 5,800,000 

lugs results in an assessment rate of 

$0.0165. 

Reserve funds by the end of 2013 are 

projected at $53,972, which is well 

within the amount authorized under the 

order. Section 925.41 of the order 

permits the Committee to maintain 

approximately one fiscal period’s 

expenses in reserve. 

The proposed assessment rate would 

continue in effect indefinitely unless 

modified, suspended, or terminated by 

USDA based upon a recommendation 

and information submitted by the 

Committee or other available 

information. 

Although this assessment rate would 

be in effect for an indefinite period, the 

Committee 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 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 the Committee 

recommendations and other available 

information to determine whether 

modification of the assessment rate is 

needed. Further rulemaking would be 

undertaken as necessary. The 

Committee’s 2013 budget and those for 

subsequent fiscal periods 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 

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 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 14 handlers 

of southeastern California grapes who 

are subject to regulation under the order 

and about 41 grape producers in the 

production area. Small agricultural 

service firms are defined by the Small 

Business Administration (13 CFR 

121.201) as those having annual receipts 

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

agricultural producers are defined as 

those whose annual receipts are less 

than $750,000. Nine of the 14 handlers 

subject to regulation have annual grape 

sales of less than $7,000,000, according 

to Committee and USDA data. In 

addition, it is estimated that ten of the 

41 producers have annual receipts of 

less than $750,000. Based on the 

foregoing, it may be concluded that a 

majority of grape handlers regulated 

under the order, and about 10 of the 

producers could be classified as small 

entities under the Small Business 

Administration definitions. 

This proposal would increase the 

assessment rate established for the 

Committee and collected from handlers 

for the 2013 and subsequent fiscal 

periods. The Committee unanimously 

recommended an assessment rate of 

$0.0165 per 18-pound lug of grapes 

handled, and 2013 expenditures of 

$100,000. The proposed assessment rate 

of $0.0165 is $0.0015 higher than the 

2012 rate currently in effect. The 

quantity of assessable grapes for the 

2013 season is estimated at 5,800,000 

18-pound lugs. Thus, the $0.0165 rate 

should generate $95,700 in income. 

Combined with $4,300 from financial 

reserves, this should provide adequate 

revenue to meet the 2013 fiscal period 

expenses. In addition, reserve funds at 

the end of the year are projected to be 

$53,972, which is well within the 

order’s limitation of approximately one 

fiscal period’s expenses. 

The major expenditures 

recommended by the Committee for the 

2013 fiscal period include $15,500 for 

research, $17,000 for general office 

expenses, and $67,500 for management 

and compliance expenses. In 

comparison, major expenditures for the 

2012 fiscal period included $15,500 for 

research, $17,500 for general office 

expenses, and $62,500 for management 

and compliance expenses. 

Prior to arriving at this budget, the 

Committee considered alternative 

expenditures and assessment rates, 

including not increasing the $0.0150 

assessment rate currently in effect. 

Based on a crop estimate of 5,800,000 

18-pound lugs, the Committee 

ultimately determined that revenue 

generated from an assessment rate of 

$0.0165, combined with funds from the 

financial reserve, would adequately 

cover increased expenses while 

providing an adequate 2013 ending 

reserve. 

A review of historical crop and price 

information, as well as preliminary 

information pertaining to the upcoming 

fiscal period indicates that the producer 

price for the 2013 season could average 

about $8.00 per 18-pound lug of grapes 

handled for Southeastern California 

grapes. Utilizing this estimate and the 

proposed assessment rate of $0.0165, 

estimated assessment revenue as a 

percentage of total estimated producer 

revenue would be 0.20 percent for the 

2013 season ($0.0165 divided by $8.00 

per 18-pound lug). Thus, the assessment 

revenue should be well below 1 percent 

of estimated producer revenue in 2013. 

This proposal 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 would be offset by 

the benefits derived by the operation of 

the order. In addition, the Committee’s 

meeting was widely publicized 

throughout the grape production area 

and all interested persons were invited 

to attend and participate in Committee 

deliberations on all issues. Like all 

Committee meetings, the March 4, 2013, 

meeting was a public meeting and all 

entities, both large and small, were able 

to express views on this issue. Finally, 

interested persons are invited to submit 

comments on this proposed rule, 

including the regulatory and 

informational impacts of this action on 

small businesses. 

In accordance with the Paperwork 

Reduction Act of 1995, (44 U.S.C. 

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Federal Register / Vol. 78, No. 93 / Tuesday, May 14, 2013 / Proposed Rules 28149 

Chapter 35), the order’s information 

collection requirements have been 

previously approved by the Office of 

Management and Budget (OMB) and 

assigned OMB No. 0581–0189. No 

changes in those requirements as a 

result of this action are necessary. 

Should any changes become necessary, 

they would be submitted to OMB for 

approval. 

This proposed rule would impose no 

additional reporting or recordkeeping 

requirements on either small or large 

California grape 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 action. 

A small business guide on complying 

with fruit, vegetable, and specialty crop 

marketing agreement and orders may be 

viewed at: www.ams.usda.gov/ 

MarketingOrdersSmallBusinessGuide. 

Any questions about the compliance 

guide should be sent to Jeffrey Smutny 

at the previously-mentioned address in 

the FOR FURTHER INFORMATION CONTACT

section. 

A 15-day comment period is provided 

to allow interested persons to respond 

to this proposed rule. Fifteen days is 

deemed appropriate because: (1) The 

2013 fiscal period began on January 1, 

2013, and the order requires that the 

rate of assessment for each fiscal period 

apply to all assessable grapes handled 

during such fiscal period; (2) the 

Committee needs to have sufficient 

funds to pay its expenses, which are 

incurred on a continuous basis; and (3) 

handlers are aware of this action, which 

was unanimously recommended by the 

Committee at a public meeting and is 

similar to other assessment rate actions 

issued in past years. 

List of Subjects in 7 CFR Part 925 

Grapes, Marketing agreements, 

Reporting and recordkeeping 

requirements. 

For the reasons set forth in the 

preamble, 7 CFR part 925 is proposed to 

be amended as follows: 

PART 925—GRAPES GROWN IN A 

DESIGNATED AREA OF 

SOUTHEASTERN CALIFORNIA 

■ 1. The authority citation for 7 CFR 

part 925 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

■ 2. Section 925.215 is revised to read 

as follows: 

§ 925.215 Assessment rate. 

On and after January 1, 2013, an 

assessment rate of $0.0165 per 18-pound 

lug is established for grapes grown in a 

designated area of southeastern 

California. 

Dated: May 8, 2013. 

Rex Barnes, 

Acting Administrator, Agricultural Marketing 

Service. 

[FR Doc. 2013–11386 Filed 5–13–13; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 929 

[Doc. No. AMS–FV–12–0042; FV12–929–2 

PR] 

Cranberries Grown in States of 

Massachusetts, Rhode Island, 

Connecticut, New Jersey, Wisconsin, 

Michigan, Minnesota, Oregon, 

Washington, and Long Island in the 

State of New York; Revising 

Determination of Sales History 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Proposed rule. 

SUMMARY: This proposed rule invites 

comments on revisions to the 

determination of sales history 

provisions currently prescribed under 

the cranberry marketing order (order). 

The order regulates the handling of 

cranberries grown in Massachusetts, 

Rhode Island, Connecticut, New Jersey, 

Wisconsin, Michigan, Minnesota, 

Oregon, Washington, and Long Island in 

the State of New York, and is 

administered locally by the Cranberry 

Marketing Committee (Committee). This 

change would modify sales history 

calculations so that they would be 

applicable for future seasons and would 

adjust the number of years that could be 

considered when determining the 

highest four years of past sales. 

DATES: Comments must be received by 

June 13, 2013. 

ADDRESSES: Interested persons are 

invited to submit written comments 

concerning this proposal. Comments 

must be sent to the Docket Clerk, 

Marketing Order and Agreement 

Division, Fruit and Vegetable Program, 

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 made 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 proposal 

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 

comments will be made public on the 

Internet at the address provided above. 

FOR FURTHER INFORMATION CONTACT: 

Doris Jamieson, Marketing Specialist, or 

Christian D. Nissen, Regional Director, 

Southeast Marketing Field Office, 

Marketing Order and Agreement 

Division, Fruit and Vegetable Program, 

AMS, USDA; Telephone: (863) 324– 

3375, Fax: (863) 325–8793, or Email: 

Doris.Jamieson@ams.usda.gov or 

Christian.Nissen@ams.usda.gov. 

Small businesses may request 

information on complying with this 

proposed regulation by contacting 

Jeffrey Smutny, Marketing Order and 

Agreement Division, Fruit and 

Vegetable Program, AMS, USDA, 1400 

Independence Avenue SW., STOP 0237, 

Washington, DC 20250–0237; 

Telephone: (202) 720–2491, Fax: (202) 

720–8938, or Email: 

Jeffrey.Smutny@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: This 

proposed rule is issued under Marketing 

Agreement and Order No. 929, as 

amended (7 CFR part 929), regulating 

the handling of cranberries produced in 

Massachusetts, Rhode Island, 

Connecticut, New Jersey, Wisconsin, 

Michigan, Minnesota, Oregon, 

Washington, and Long Island in the 

State of New York, 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 proposed rule in 

conformance with Executive Order 

12866. 

This proposal has been reviewed 

under Executive Order 12988, Civil 

Justice Reform. This proposed rule is 

not intended to have retroactive effect. 

The Act provides that administrative 

proceedings must be exhausted before 

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