Federal Register / Vol. 75, No. 106 / Thursday, June 3, 2010 / Rules and Regulations 31275 

Subpart C—[Reserved] 

Subpart D—Responsibilities of Agency 

Awarding Officials 

2339.400 What method do I use as an 

agency awarding official to obtain a 

recipient’s agreement to comply with the 

OMB guidance? 

Subpart E—Violations of this Part and 

Consequences 

2339.500 Who in the Social Security 

Administration determines that a 

recipient other than an individual 

violated the requirements of this part? 

Subpart F—[Reserved] 

Authority: 41 U.S.C. 701–707. 

§ 2339.10 What does this part do? 

This part requires that the award and 

administration of Social Security 

Administration (SSA) grants and 

cooperative agreements comply with 

Office of Management and Budget 

(OMB) guidance implementing the 

portion of the Drug-Free Workplace Act 

of 1988 (41 U.S.C. 701–707, as 

amended, hereafter referred to as ‘‘the 

Act’’) that applies to grants. It thereby— 

(a) Gives regulatory effect to the OMB 

guidance (subparts A through F of 2 

CFR part 182) for SSA’s grants and 

cooperative agreements; and 

(b) Establishes SSA’s policies and 

procedures for compliance with the Act 

that are the same as those of other 

Federal agencies, in conformance with 

the requirement in 41 U.S.C. 705 for 

Government-wide implementing 

regulations. 

§ 2339.20 Does this part apply to me? 

This part and, through this part, 

pertinent portions of the OMB guidance 

in Subparts A through F of 2 CFR part 

182 (see table at 2 CFR 182.115(b)) 

apply to you if you are— 

(a) A recipient of an SSA grant or 

cooperative agreement; or 

(b) An SSA awarding official. 

§ 2339.30 What policies and procedures 

must I follow? 

(a) General. You must follow the 

policies and procedures specified in 

applicable sections of the OMB 

guidance in Subparts A through F of 2 

CFR part 182, as implemented by this 

part. 

(b) Specific sections of OMB guidance 

that this part supplements. In 

implementing the OMB guidance in 2 

CFR part 182, this part supplements 

four sections of the guidance, as shown 

in the following table. 

Section of OMB guidance in 2 CFR 

Section in this 

part where 

supplemented, 

2 CFR 

What the supplementation clarifies 

(1) 182.225(a) .................................................................. § 2339.225 Who in SSA a recipient other than an individual must notify if an employee is convicted for a violation of a criminal drug statute in the 

workplace. 

(2) 182.300(b) .................................................................. § 2339.300 Who in SSA a recipient who is an individual must notify if he or she 

is convicted of a criminal drug offense resulting from a violation occurring during the conduct of any award activity. 

(3) 182.500 ...................................................................... § 2339.500 Who in SSA is authorized to determine that a recipient other than an 

individual is in violation of the requirements of 2 CFR part 182, as 

implemented by this part. 

(4) 182.505 ...................................................................... § 2339.505 Who in SSA is authorized to determine that a recipient who is an individual is in violation of the requirements of 2 CFR part 182, as 

implemented by this part. 

(c) Sections of the OMB guidance that 

this part does not supplement. Our 

policies and procedures are the same as 

those in the OMB guidance for any 

section not included in the table in 

paragraph (b) of this section. 

Subpart A—[Reserved.] 

Subpart B—Requirements for 

Recipients Other Than Individuals 

§ 2339.225 Who in the Social Security 

Administration does a recipient other than 

an individual notify about a criminal drug 

conviction? 

A recipient other than an individual 

that is required under 2 CFR 182.225(a) 

to notify Federal agencies about an 

employee’s conviction for a criminal 

drug offense must notify the 

Commissioner of Social Security or 

designee. 

Subpart C—[Reserved.] 

Subpart D—Responsibilities of Agency 

Awarding Officials 

§ 2339.400 What method do I use as an 

agency awarding official to obtain a 

recipient’s agreement to comply with the 

OMB guidance? 

You must include the following term 

or condition in the award: 

Drug-free workplace. You, as the 

recipient, must comply with drug-free 

workplace requirements in Subpart B, 

which adopts the Government-wide 

implementation (2 CFR part 182) of sec. 

5152–5158 of the Drug-Free Workplace 

Act of 1988 (Pub. L. 100–690, Title V, 

Subtitle D; 41 U.S.C. 701–707). 

Subpart E—Violations of this Part and 

Consequences 

§ 2339.500 Who in the Social Security 

Administration determines that a recipient 

other than an individual violated the 

requirements of this part? 

The Commissioner of Social Security 

or designee will make the 

determination. 

Subpart F—[Reserved] 

Title 20—Employees’ Benefits 

Chapter III—Social Security 

Administration 

PART 439—[REMOVED] 

■ 2. Remove Part 439. 

[FR Doc. 2010–13093 Filed 6–2–10; 8:45 am] 

BILLING CODE 4191–02–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Parts 916 and 917 

[Doc. No. AMS–FV–09–0091; FV10–916/917– 

2 FR] 

Nectarines and Peaches Grown in 

California; Increased Assessment 

Rates 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 


emcdonald on DSK2BSOYB1PROD with RULES
31276 Federal Register / Vol. 75, No. 106 / Thursday, June 3, 2010 / Rules and Regulations 

SUMMARY: This rule increases the 

assessment rates established for the 

Nectarine Administrative Committee 

and the Peach Commodity Committee 

(Committees) for the 2010–11 and 

subsequent fiscal periods from $0.0175 

to $0.0280 per 25-pound container or 

container equivalent of nectarines 

handled, and from $0.0025 to $0.026 per 

25-pound container or container 

equivalent of peaches handled. The 

Committees locally administer the 

marketing orders which regulate the 

handling of nectarines and peaches 

grown in California. Assessments upon 

nectarine and peach handlers are used 

by the Committees to fund reasonable 

and necessary expenses of the programs. 

The fiscal periods run from March 1 

through the last day of February. The 

assessment rates will remain in effect 

indefinitely unless modified, 

suspended, or terminated. 

DATES: Effective Date: June 4, 2010. 

FOR FURTHER INFORMATION CONTACT: Jerry 

L. Simmons, Marketing Specialist, or 

Kurt Kimmel, Regional Manager, 

California Marketing Field Office, 

Marketing Order Administration 

Branch, Fruit and Vegetable Programs, 

AMS, USDA; Telephone: (559) 487– 

5901, Fax: (559) 487–5906; or E-mail: 

Jerry.Simmons@ams.usda.gov or 

Kurt.Kimmel@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 Order Nos. 

916 and 917, both as amended (7 CFR 

parts 916 and 917), regulating the 

handling of nectarines and peaches 

grown in California, respectively, 

hereinafter referred to as the ‘‘orders.’’ 

The orders are 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 orders 

now in effect, California nectarine and 

peach handlers are subject to 

assessments. Funds to administer the 

orders are derived from such 

assessments. It is intended that the 

assessment rates as issued herein will be 

applicable to all assessable nectarines 

and peaches beginning on March 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 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 rule increases the assessment 

rates established for the Nectarine 

Administrative Committee (NAC) for the 

2010–11 and subsequent fiscal periods 

from $0.0175 to $0.0280 per 25-pound 

container or container equivalent of 

nectarines and for the Peach Commodity 

Committee (PCC) for the 2010–11 and 

subsequent fiscal periods from $0.0025 

to $0.026 per 25-pound container or 

container equivalent of peaches. 

The nectarine and peach marketing 

orders provide authority for the 

Committees, with the approval of 

USDA, to formulate annual budgets of 

expenses and collect assessments from 

handlers to administer the programs. 

The members of NAC and PCC are 

producers of California nectarines and 

peaches, respectively. They are familiar 

with the Committees’ needs, and with 

the costs for goods and services in their 

local area and are, therefore, in a 

position to formulate appropriate 

budgets and assessment rates. The 

assessment rates are formulated and 

discussed in public meetings. Thus, all 

directly affected persons have an 

opportunity to participate and provide 

input. 

NAC Assessment and Expenses 

For the 2009–10 and subsequent fiscal 

periods, the NAC recommended, and 

USDA approved, an assessment rate 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 Committee or other 

information available to USDA. 

The NAC met on December 10, 2009, 

and unanimously recommended 2010– 

11 expenditures of $1,448,101 and an 

assessment rate of $0.0280 per 25-pound 

container or container equivalent of 

nectarines. In comparison, the budgeted 

expenditures for the 2010–11 fiscal 

period were $1,797,290. The assessment 

rate of $0.0280 per 25-pound container 

or container equivalent of nectarines is 

$0.0105 higher than the rate currently in 

effect. The NAC recommended a higher 

assessment rate because the 2009 crop 

was lower than expected due to a large 

number of tree pullouts and other 

economic factors. 

The major expenditures 

recommended by the NAC for the 2010– 

11 fiscal period include $291,377 for 

administration, $157,016 for production 

research, and $999,708 for domestic and 

international programs. In comparison, 

budgeted expenses for these items in 

2008–09 were $319,965.32 for 

administration, $349,447.55 for 

production research, and $1,127,877.33 

for domestic and international 

programs. 

The assessment rate recommended by 

the NAC was derived after considering 

anticipated fiscal year expenses; 

estimated assessable nectarines of 

16,200,000 25-pound containers or 

container equivalents; the estimated 

income from other sources, such as 

interest; and the need for an adequate 

financial reserve to carry the NAC into 

the 2011–12 fiscal period. Therefore, the 

NAC recommended an assessment rate 

of $0.0280 per 25-pound container or 

container equivalent. 

Combining expected assessment 

revenue of $453,600 with the $641,840 

carryover available from the 2009–10 

fiscal period and other income such as 

interest should be adequate to meet 

Committee needs. The assessment rate 

is also likely to provide a $116,486 

reserve, which may be used to cover 

administrative expenses prior to the 

beginning of the 2011–12 shipping 

season as provided in the order 

(§ 916.42). 

PCC Assessment and Expenses 

For the 2009–10 and subsequent fiscal 

periods, the PCC recommended, and 

USDA approved, an assessment rate 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 Committee or other 

information available to USDA. 

The PCC met on December 10, 2009, 

and recommended 2010–11 

expenditures of $1,839,651 and an 

assessment rate of $0.026 per 25-pound 

container or container equivalent of 


emcdonald on DSK2BSOYB1PROD with RULES
Federal Register / Vol. 75, No. 106 / Thursday, June 3, 2010 / Rules and Regulations 31277 

peaches. In comparison, budgeted 

expenditures for the 2009–10 fiscal 

period were $1,885,250. The assessment 

rate of $0.026 per 25-pound container or 

container equivalent of peaches is 

$0.0235 higher than the rate currently in 

effect. The PCC recommended a higher 

assessment rate because the 2009 crop 

was lower than expected due to a large 

number of tree pullouts and other 

economic factors. 

The major expenditures 

recommended by the PCC for the 2010– 

11 fiscal period include $368,756 for 

administration, $199,662 for production 

research, and $1,271,233 for domestic 

and international programs. In 

comparison, budgeted expenses for 

these items in 2009–10 were $334,058 

for administration, $366,920 for 

production research, and $1,184,272 for 

domestic and international programs. 

The assessment rate recommended by 

the PCC was derived after considering 

anticipated fiscal year expenses; 

estimated assessable peaches of 

20,600,000 25-pound containers or 

container equivalents; the estimated 

income from other sources, such as 

interest; and the need for an adequate 

financial reserve to carry the PCC into 

the 2011–12 fiscal period. Therefore, the 

PCC recommended an assessment rate 

of $0.026 per 25-pound container or 

container equivalent. 

Combining expected assessment 

revenues of $535,600 with the $854,699 

carryover available from the 2009–10 

fiscal period and other income such as 

interest should be adequate to meet 

Committee needs. The assessment rate 

is also likely to provide a $147,502 

reserve, which may be used to cover 

administrative expenses prior to the 

beginning of the 2011–12 shipping 

season as provided in the order 

(§ 917.38). 

Continuance of Assessment Rates 

The assessment rates established in 

this rule will continue in effect 

indefinitely unless modified, 

suspended, or terminated by USDA 

upon recommendation and information 

submitted by the Committees or other 

available information. 

Although these assessment rates will 

be in effect for an indefinite period, the 

Committees will continue to meet prior 

to or during each fiscal period to 

recommend budgets of expenses and 

consider recommendations for 

modification of the assessment rates. 

The dates and times of Committee 

meetings are available from the 

Committees’ Web site at http:// 

www.eatcaliforniafruit.com or USDA. 

Committee meetings are open to the 

public and interested persons may 

express their views at these meetings. 

USDA will evaluate the Committees’ 

recommendations and other available 

information to determine whether 

modification of the assessment rate for 

each Committee is needed. Further 

rulemaking will be undertaken as 

necessary. The Committees’ 2010–11 

fiscal period budgets and those for 

subsequent fiscal periods will be 

reviewed and, as appropriate, approved 

by USDA. 

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 

rule 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 

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 101 

California nectarine and peach handlers 

subject to regulation under the orders 

covering nectarines and peaches grown 

in California, and about 475 producers 

of these fruits in California. Small 

agricultural service firms, which 

include handlers, are 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 these 

handlers and producers may be 

classified as small entities. 

The Committees’ staff has estimated 

that there are fewer than 50 handlers in 

the industry who would not be 

considered small entities. For the 2009 

season, the committees’ staff estimated 

that the average handler price received 

was $11.50 per container or container 

equivalent of nectarines or peaches. A 

handler would have to ship at least 

608,696 containers to have annual 

receipts of $7,000,000. Given data on 

shipments maintained by the 

committees’ staff and the average 

handler price received during the 2009 

season, the Committees’ staff estimates 

that small handlers represent 

approximately 50 percent of all the 

handlers within the industry. 

The Committees’ staff has also 

estimated that fewer than 50 producers 

in the industry would not be considered 

small entities. For the 2009 season, the 

Committees estimated the average 

producer price received was $6.50 per 

container or container equivalent for 

nectarines and peaches. A producer 

would have to produce at least 115,385 

containers of nectarines and peaches to 

have annual receipts of $750,000. Given 

data maintained by the Committees’ 

staff and the average producer price 

received during the 2009 season, the 

Committees’ staff estimates that small 

producers represent more than 80 

percent of the producers within the 

industry. 

With an average producer price of 

$6.50 per container or container 

equivalent, and a combined packout of 

nectarines and peaches of 37,263,343 

containers, the value of the 2009 

packout is estimated to be $242,211,730. 

Dividing this total estimated grower 

revenue figure by the estimated number 

of producers (475) yields an estimate of 

average revenue per producer of about 

$509,919 from the sales of peaches and 

nectarines. 

The nectarine and peach marketing 

orders provide authority for the 

Committees, with the approval of 

USDA, to formulate an annual budget of 

expenses and collect assessments from 

handlers to administer the programs. 

The members of the NAC and PCC are 

producers of California nectarines and 

peaches, respectively. 

This rule increases the assessment 

rates established for the NAC for the 

2010–11 and subsequent fiscal periods 

from $0.0175 to $0.0280 per 25-pound 

container or container equivalent of 

nectarines and for the PCC for the 2010– 

11 and subsequent fiscal periods from 

$0.0025 to $0.026 per 25-pound 

container or container equivalent of 

peaches. 

The NAC recommended 2010–11 

fiscal period expenditures of $1,448,101 

for nectarines and an assessment rate of 

$0.0280 per 25-pound container or 

container equivalent of nectarines. The 

assessment rate of $0.0280 is $0.0105 

higher than the rate currently in effect. 

The PCC recommended 2010–11 fiscal 

period expenditures of $1,839,651 for 

peaches and an assessment rate of 

$0.026 per 25-pound container or 

container equivalent of peaches. The 

assessment rate of $0.026 is $0.0235 

higher than the rate currently in effect. 

Analysis of NAC Budget 

The quantity of assessable nectarines 

for the 2010–11 fiscal period is 

estimated at 16,200,000 25-pound 

containers or container equivalents. 

Thus, the $0.0280 rate should provide 

$453,600 in assessment income. Income 


emcdonald on DSK2BSOYB1PROD with RULES
31278 Federal Register / Vol. 75, No. 106 / Thursday, June 3, 2010 / Rules and Regulations 

derived from handler assessments, along 

with income from other sources and 

funds from the NAC’s reserve, would be 

adequate to cover budgeted expenses. 

The major expenditures 

recommended by the NAC for the 2010– 

11 year include $291,377 for 

administration, $157,016 for production 

research, and $999,708 for domestic and 

international programs. Budgeted 

expenses in 2009–10 were $319,965.32 

for administration, $349,447.55 for 

production research, and $1,127,877.33 

for domestic and international 

programs. 

The NAC recommended an increased 

2010–11 fiscal period assessment rate 

because the 2009 crop was lower than 

expected due to a large number of tree 

pullouts and other economic factors. 

Income generated from the higher 

assessment rate combined with reserve 

funds should be adequate to cover 

anticipated 2010–11 expenses. 

Analysis of PCC Budget 

The quantity of assessable peaches for 

the 2010–11 fiscal year is estimated at 

20,600,000 25-pound containers or 

container equivalents. Thus, the $0.026 

rate should provide $535,600 in 

assessment income. 

The major expenditures 

recommended by PCC for the 2010–11 

year include $368,756 for 

administration, $199,662 for production 

research, and $1,271,233 for domestic 

and international programs. Budgeted 

expenses in 2009–10 were $334,058 for 

administration, $366,920 for production 

research, and $1,184,272 for domestic 

and international programs. 

The PCC recommended an increased 

2010–11 fiscal period assessment rate 

because the 2009 crop was lower than 

expected due to a large number of tree 

pullouts and other economic factors. 

Income generated from the higher 

assessment rate combined with reserve 

funds should be adequate to cover 

anticipated 2010–11 expenses. 

Considerations in Determining 

Expenses and Assessment Rates 

Prior to arriving at these budgets, the 

Committees considered alternative 

expenditure and assessment rate levels, 

but ultimately decided that the 

recommended levels were reasonable to 

properly administer the orders. 

Each of the Committees then reviewed 

the proposed expenses; the total 

estimated assessable 25-pound 

containers or container equivalents; and 

the estimated income from other 

sources, such as interest income, prior 

to recommending a final assessment 

rate. The NAC decided that an 

assessment rate of $0.0280 per 25-pound 

container or container equivalent will 

allow it to meet its 2010–11 fiscal 

period expenses and carryover an 

operating reserve of about $116,486 

which is in line with the Committee’s 

financial needs. The PCC decided that 

an assessment rate of $0.026 per 25- 

pound container or container equivalent 

will allow it to meet its 2010–11 fiscal 

period expenses and carryover an 

operating reserve of $147,502. These 

assessment rates would allow them to 

meet their 2010–11 fiscal period 

expenses and carryover necessary 

reserves to finance operations before 

2011–12 fiscal period assessments are 

collected. 

A review of historical and preliminary 

information pertaining to the upcoming 

fiscal period indicates that the grower 

price for nectarines and peaches for the 

2010–11 season could range between 

$6.00 and $8.00 per 25-pound container 

or container equivalent. Therefore, the 

estimated assessment revenue for the 

2010–11 fiscal period as a percentage of 

total grower revenue could range 

between 0.33 and 0.47 percent. 

This action increases 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 Committees’ meetings 

were widely publicized throughout the 

California nectarine and peach 

industries and all interested persons 

were invited to attend the meetings and 

were encouraged to participate in the 

Committees’ deliberations on all issues. 

Like all Committee meetings, the 

December 10, 2009, meetings were 

public meetings and entities of all sizes 

were able to express views on this issue. 

This rule imposes no additional 

reporting or recordkeeping requirements 

on either small or large 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. As noted in the initial 

regulatory flexibility analysis, USDA 

has not identified any relevant Federal 

rules that duplicate, overlap, or conflict 

with this final rule. 

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. 

A proposed rule concerning this 

action was published in the Federal 

Register on April 5, 2010 (75 FR 17072). 

Copies of the proposed rule were also 

mailed or sent via facsimile to all 

nectarine and peach handlers. Finally, 

the proposal was made available 

through the Internet by USDA and the 

Office of the Federal Register. A 30-day 

comment period ending May 5, 2010, 

was provided for interested persons to 

respond to the proposal. No comments 

were received. 

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=MarketingOrders

SmallBusinessGuide. Any questions 

about the compliance guide should be 

sent to Antoinette Carter at the 

previously mentioned address in the 

FOR FURTHER INFORMATION CONTACT

section. 

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, as hereinafter set forth, 

will tend to effectuate the declared 

policy of the Act. 

Pursuant to 5 U.S.C. 553, it also found 

and determined that good cause exists 

for not postponing the effective date of 

this rule until 30 days after publication 

in the Federal Register because: (1) The 

2010–11 fiscal period begins March 1, 

2010, and the marketing orders require 

that the rates of assessment for each 

fiscal period apply to all assessable 

nectarines and peaches handled during 

such fiscal period; (2) the Committees 

need to have sufficient funds to pay its 

expenses which are incurred on a 

continuous basis; (3) handlers are aware 

of this action which was unanimously 

recommended by the Committees at 

public meetings and is similar to other 

assessment rate actions issued in past 

years. 

List of Subjects 

7 CFR Part 916 

Marketing agreements, Nectarines, 

Reporting and recordkeeping 

requirements. 

7 CFR Part 917 

Marketing agreements, Peaches, Pears, 

Reporting and recordkeeping 

requirements. 

■ For the reasons set forth in the 

preamble, 7 CFR parts 916 and 917 are 

amended as follows: 


emcdonald on DSK2BSOYB1PROD with RULES
Federal Register / Vol. 75, No. 106 / Thursday, June 3, 2010 / Rules and Regulations 31279 

■ 1. The authority citation for 7 CFR 

parts 916 and 917 continues to read as 

follows: 

Authority: 7 U.S.C. 601–674. 

PART 916—NECTARINES GROWN IN 

CALIFORNIA 

■ 2. Section 916.234 is revised to read 

as follows: 

§ 916.234 Assessment rate. 

On and after March 1, 2010, an 

assessment rate of $0.0280 per 25-pound 

container or container equivalent of 

nectarines is established for California 

nectarines. 

PART 917—PEACHES GROWN IN 

CALIFORNIA 

■ 3. Section 917.258 is revised to read 

as follows: 

§ 917.258 Assessment rate. 

On and after March 1, 2010, an 

assessment rate of $0.026 per 25-pound 

container or container equivalent of 

peaches is established for California 

peaches. 

Dated: May 27, 2010. 

Rayne Pegg, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. 2010–13333 Filed 6–2–10; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 1218 

[Document Number AMS–FV–09–0022; FV– 

09–705] 

Blueberry Promotion, Research, and 

Information Order; Increase 

Membership 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: This rule adds two importer 

members and their alternates to the U.S. 

Highbush Blueberry Council (Council) 

to reflect changes in the quantity of 

highbush blueberry imports in the past 

three years. The change was proposed 

by the Council in accordance with the 

provisions of the Blueberry Promotion, 

Research, and Information Order (Order) 

which is authorized by the Commodity 

Promotion, Research, and Information 

Act of 1996 (Act). The Order requires 

that the Council review the geographical 

distribution of the United States 

production and the quantity of imports 

of highbush blueberries at least every 

five years. As a result of these changes, 

the total Council membership will 

increase from 14 to 16 members and 

their alternates. In addition, this rule 

increases the quorum minimum from 

seven to nine members. 

DATES: Effective Date: June 4, 2010. 

FOR FURTHER INFORMATION CONTACT: 

Jeanette Palmer, Marketing Specialist, 

Research and Promotion Branch, Fruit 

and Vegetable Programs, AMS, U.S. 

Department of Agriculture, Stop 0244, 

1400 Independence Avenue, SW., Room 

0632–S, Washington, DC 20250–0244; 

telephone: (888) 720–9917; facsimile: 

(202) 205–2800; or electronic mail: 

Jeanette.Palmer@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: This rule 

is issued under the Blueberry 

Promotion, Research, and Information 

Order [7 CFR part 1218]. The Order is 

authorized under the Commodity 

Promotion, Research, and Information 

Act of 1996 (Act) [7 U.S.C. 7411–7425]. 

Executive Order 12866 

The Office of Management and Budget 

(OMB) has waived the review process 

required by Executive Order 12866 for 

this action. 

Executive Order 12988 

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. The rule is not intended to have 

retroactive effect. Section 524 of the Act 

provides that the Act shall not affect or 

preempt any other State or Federal law 

authorizing promotion or research 

relating to an agricultural commodity. 

The Act provides that any person 

subject to an order may file a written 

petition with the Department if they 

believe that the order, any provision of 

the order, or any obligation imposed in 

connection with the order, is not 

established in accordance with law. In 

any petition, the person may request a 

modification of the order or an 

exemption from the order. The 

petitioner is afforded the opportunity 

for a hearing on the petition. After a 

hearing, the Department would rule on 

the petition. The Act provides that the 

district court of the United States in any 

district in which the petitioner resides 

or conducts business shall have the 

jurisdiction to review the Department’s 

ruling on the petition, provided a 

complaint is filed not later than 20 days 

after the date of the entry of the ruling. 

Regulatory Flexibility Analysis and 

Paperwork Reduction Act 

In accordance with the Regulatory 

Flexibility Act (RFA) [5 U.S.C. 601– 

612], AMS has considered the economic 

impact of this action on the small 

producers, first handlers, importers, and 

exporters that would be affected by this 

rule. The purpose of the RFA is to fit 

regulatory action to scale on businesses 

subject to such action so that small 

businesses will not be 

disproportionately burdened. 

The Small Business Administration 

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 as those having annual receipts of 

no more than $7 million. There are 

approximately 2,000 producers, 200 first 

handlers, 50 importers, and 4 exporters 

of highbush blueberries subject to the 

program. Most of the producers will be 

classified as small businesses under the 

criteria established by the Small 

Business Administration. Most 

importers, first handlers, and exporters 

will not be classified as small 

businesses. Producers who produce less 

than 2,000 pounds of highbush 

blueberries annually are exempt from 

this program. Importers who import less 

than 2,000 pounds of fresh and frozen 

highbush blueberries annually are also 

exempt from this program. 

The Department’s National 

Agricultural Statistics Service (NASS) 

data for the 2008 crop year shows that 

about 5,790 pounds of highbush 

blueberries were produced per acre. The 

2008 average grower price for highbush 

blueberries published by NASS was 

$1.54 per pound. Thus, the value of 

highbush blueberry production per acre 

in 2008 averaged about $8,917 (5,790 

pounds multiplied by $1.54). At that 

average value, a producer would have to 

farm over 84 acres to receive an annual 

income from highbush blueberries of 

$750,000 ($750,000 divided by $8,916 

per acre equals 84). Accordingly, as 

previously noted, a majority of the 

producers of highbush blueberries will 

be classified as small businesses. 

According to the Council, assessments 

received in 2008 reached $2.4 million. 

Of the total, the Council received 

$830,222 from import assessment 

collections which is approximately 35 

percent of the Council’s total budget. 

For 2009, the Council received $3.03 

million from assessment collections. Of 

the total, the Council received 

approximately $1 million from import 

assessment collections which is 

approximately 34 percent of the 

Council’s total budget. The Council 

projected import assessment collections 

at $1 million for the 2010 budget year. 

According to the Council’s World 

Blueberry Acreage and Production 

Report, highbush blueberry acreage in 

North America increased from 71,075 

acres in 2005 to an estimated 95,607 


emcdonald on DSK2BSOYB1PROD with RULES