This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

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Rules and Regulations Federal Register

57161 

Vol. 75, No. 181 

Monday, September 20, 2010 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 930 

[Doc. No. AMS–FV–10–0029; FV10–930–2 

FR] 

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: Final rule. 

SUMMARY: This rule increases 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 will remain in effect 

indefinitely unless modified, 

suspended, or terminated. 

DATES: Effective Date: September 21, 

2010. 

FOR FURTHER INFORMATION CONTACT: 

Kenneth G. Johnson, DC Marketing 

Field Office, Marketing Order 

Administration Branch, Fruit and 

Vegetable Programs, AMS, USDA; 

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 

issued herein will 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 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 

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 

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 


jdjones on DSK8KYBLC1PROD with RULES
57162 Federal Register / Vol. 75, No. 181 / Monday, September 20, 2010 / Rules and Regulations 

in four years. The current assessment 

rate to cover administrative costs is 

$0.0016. The increase will raise the 

assessment rate for administrative 

expenses to $0.0025. In addition, a 

portion of the assessment rate ($0.005 

per pound of cherries) will continue to 

fund the Board’s research and 

promotion program. The total 

assessment rate for 2010–2011 and 

beyond will 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, respectively. 

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 × $0.0075). This 

will be adequate to cover budgeted 

expenses. Any excess funds will 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 established in 

this rule will 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 will be 

effective for an indefinite period, the 

Board will 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 will be 

undertaken as necessary. The Board’s 

2010–2011 budget and those for 

subsequent fiscal periods will be 

reviewed and, as appropriate, approved 

by the 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 

action 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 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 increases 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 is expected to range 

between 3.75 and 5 percent of grower 

revenue. 

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 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 rule will 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. 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 May 27, 2010 (75 FR 29684). 

Copies of the proposed rule were also 

mailed or sent via facsimile to all tart 

cherry handlers. Finally, the proposal 

was made available through the Internet 

by USDA and the Office of the Federal 

Register. A 60-day comment period 

ending July 26, 2010, was provided for 

interested persons to respond to the 

proposal. No comments were received. 


jdjones on DSK8KYBLC1PROD with RULES
Federal Register / Vol. 75, No. 181 / Monday, September 20, 2010 / Rules and Regulations 57163 

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.fetchTemplate

Data.do?template=TemplateN&page=

MarketingOrdersSmallBusinessGuide. 

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 Board 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 is 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 the 2010–2011 fiscal period 

begins October 1, 2010, and the 

marketing order requires that the rate of 

assessment for each fiscal period apply 

to all assessable tart cherries handled 

during such fiscal period and the Board 

incurs expenses on a continuing basis. 

Further, handlers are aware of this 

action which was unanimously 

recommended by the Board at a public 

meeting. Also, a 60-day comment period 

was provided for the proposed rule. 

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 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: September 13, 2010. 

David R. Shipman, 

Acting Administrator, Agricultural Marketing 

Service. 

[FR Doc. 2010–23336 Filed 9–17–10; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Parts 1 and 602 

[Docket No. TD–9497] 

RIN 1545–BI97 

Guidance Regarding Deferred 

Discharge of Indebtedness Income of 

Corporations and Deferred Original 

Issue Discount Deductions 

Correction 

In rule document 2010–20060 

beginning on page 49394 in the issue of 

Friday, August 13, 2010 make the 

following corrections: 

1. On page 49397, in the third 

column, the heading should read ‘‘2. 

Exception for Distributions and 

Charitable Contributions Consistent 

with Historical Practice —In General’’. 

2. On page 49400, in the third 

column, in the second full paragraph, in 

line six ‘‘occurring prior to August 11, 

2010 by taking a return position 

consistent with these provisions’’ should 

read ‘‘occurring prior to August 11, 

2010, by taking a return position 

consistent with these provisions’’. 

§1.108(i)–0T [Corrected] 

3. On page 49402, in the second 

column, (b)(2)(i), on the fifth line, ‘‘2010 

However, an electing corporation ’’ 

should read ‘‘2010. However, an electing 

corporation’’. 

§1.108(i)–1T [Corrected] 

4. On page 49403, in the first column, 

(b)(2)(B)(iv), in line six ‘‘deemed 

dividend all the earnings and’’ should 

read ‘‘deemed dividend the all earnings 

and’’. 

[FR Doc. C1–2010–20060 Filed 9–17–10; 8:45 am] 

BILLING CODE 1505–01–D 

OFFICE OF THE DIRECTOR OF 

NATIONAL INTELLIGENCE 

32 CFR Part 1701 

Privacy Act Systems of Records 

AGENCY: Office of the Director of 

National Intelligence. 

ACTION: Final rule. 

SUMMARY: The Office of the Director of 

National Intelligence (ODNI) is issuing a 

final rule exempting fourteen (14) new 

systems of records from subsections 

(c)(3); (d)(1), (2), (3), (4); (e)(1) and 

(e)(4)(G), (H), (I); and (f) of the Privacy 

Act, pursuant to 5 U.S.C. 552a(k). The 

ODNI published a notice and a 

proposed rule implementing these 

exemptions on April 2, 2010. The 

enumerated exemptions will be invoked 

on a case-by-case basis, as necessary to 

preclude interference with 

investigatory, intelligence and 

counterterrorism functions and 

responsibilities of the ODNI. This 

document addresses comments received 

regarding the proposed rule as applied 

to the fourteen new systems of records. 

DATES: This final rule is effective 

September 20, 2010. 

FOR FURTHER INFORMATION CONTACT: Mr. 

John F. Hackett, Director, Information 

Management, 703–275–2215. 

SUPPLEMENTARY INFORMATION: 

Background 

On April 2, 2010, the Office of the 

Director of National Intelligence (ODNI) 

published notice of fourteen new 

Privacy Act systems of records: 

Manuscript, Presentation and Resume 

Review Records (ODNI–01), Executive 

Secretary Action Management System 

Records (ODNI–02), Public Affairs 

Office Records (ODNI–03), Office of 

Legislative Affairs Records (ODNI–04), 

ODNI Guest Speaker Records (ODNI– 

05), Office of General Counsel Records 

(ODNI–06), Analytic Resources Catalog 

(ODNI–07), Intelligence Community 

Customer Registry Records, (ODNI–09), 

EEO and Diversity Office Records 

(ODNI–10), Office of Protocol Records 

(ODNI–11), IC Security Clearance and 

Access Approval Repository (ODNI–12), 

Security Clearance Reform Research 

Records (ODNI–13), Civil Liberties and 

Privacy Office Complaint Records 

(ODNI–14), National Intelligence 

Council Consultation Records (ODNI– 

15). These systems of records contain 

records that range from Unclassified to 

Top Secret. Accordingly, in conjunction 

with publication of these systems 

notices, the ODNI initiated a rulemaking 

to exempt the systems, in relevant part, 

from various provisions of the Privacy 


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