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

57099 

Vol. 78, No. 180 

Tuesday, September 17, 2013 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 915 

[Doc. No. AMS–FV–13–0054; FV13–915–2 

PR] 

Avocados Grown in South Florida; 

Increased Assessment Rate 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Proposed rule. 

SUMMARY: This proposed rule would 

increase the assessment rate established 

for the Avocado Administrative 

Committee (Committee) for the 2013–14 

and subsequent fiscal periods from 

$0.25 to $0.30 per 55-pound bushel 

container of Florida avocados handled. 

The Committee locally administers the 

marketing order, which regulates the 

handling of avocados grown in South 

Florida. Assessments upon Florida 

avocado handlers are used by the 

Committee to fund reasonable and 

necessary expenses of the program. The 

fiscal period begins April 1 and ends 

March 31. The assessment rate would 

remain in effect indefinitely unless 

modified, suspended, or terminated. 

DATES: Comments must be received by 

October 2, 2013. 

ADDRESSES: Interested persons are 

invited to submit written comments on 

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 document number and the 

date and page number of this issue of 

the Federal Register and will be 

available for public inspection in the 

Office of the Docket Clerk during regular 

business hours, or can be viewed at: 

http://www.regulations.gov. All 

comments submitted in response to this 

proposed rule will be included in the 

record and will be made available to the 

public. Please be advised that the 

identity of the individuals or entities 

submitting the comments will be made 

public on the Internet at the address 

provided above. 

FOR FURTHER INFORMATION CONTACT: 

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 

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. 915, as amended (7 CFR part 

915), regulating the handling of 

avocados grown in South Florida, 

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, Florida avocado 

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 Florida avocados 

beginning on April 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 2013–14 and 

subsequent fiscal periods from $0.25 to 

$0.30 per 55-pound bushel container of 

avocados. 

The Florida avocado marketing 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 Florida avocados. They are 

familiar with the Committee’s needs and 

with the costs of goods and services in 

their local area and are therefore 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 2012–13 and subsequent fiscal 

periods, the Committee 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 Committee met on June 12, 2013, 

and unanimously recommended 2013– 

14 expenditures of $472,553 and an 

assessment rate of $0.30 per 55-pound 

container of avocados. In comparison, 

last year’s budgeted expenditures were 

$324,575. The assessment rate of $0.30 

is $0.05 higher than the rate currently in 

effect. The Committee recommended 

increasing the assessment rate to 

provide additional funds for research to 

address the Laurel Wilt fungus, which 

can infect and kill avocado trees. 

The major expenditures 

recommended by the Committee for the 


tkelley on DSK3SPTVN1PROD with PROPOSALS
57100 Federal Register / Vol. 78, No. 180 / Tuesday, September 17, 2013 / Proposed Rules 

2013–14 year include $175,000 for 

research, $119,483 for salaries, and 

$51,500 for employee benefits. Budgeted 

expenses for these items in 2012–13 

were $75,000, $101,705, and $48,000, 

respectively. 

The assessment rate recommended by 

the Committee was derived by 

reviewing anticipated expenses, 

expected shipments of Florida 

avocados, and available reserves. 

Florida avocado shipments for the year 

are estimated at 1,000,000 55-pound 

bushel containers, which should 

provide $300,000 in assessment income. 

Income derived from handler 

assessments, interest income, and funds 

from the Committee’s authorized reserve 

would be adequate to cover budgeted 

expenses. Funds in the reserve 

(currently $465,000) would be kept 

within the maximum permitted by the 

order (approximately three fiscal 

periods’ expenses, § 915.42). 

The proposed assessment rate would 

continue in effect indefinitely unless 

modified, suspended, or terminated by 

USDA upon recommendation and 

information submitted by the 

Committee or other available 

information. 

Although this assessment rate would 

be 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 to modify 

the assessment rate. The dates and times 

of Committee meetings are available 

from the Committee or USDA. 

Committee meetings are open to the 

public and interested persons may 

express their views at these meetings. 

USDA would evaluate Committee 

recommendations and other available 

information to determine whether 

modification of the assessment rate is 

needed, and further rulemaking would 

be undertaken as necessary. The 

Committee’s 2013–14 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 

businesses 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 30 handlers 

of Florida avocados subject to regulation 

under the order and approximately 300 

producers of avocados in the production 

area. Small agricultural service firms, 

which include avocado handlers, are 

defined by the Small Business 

Administration (SBA) as those having 

annual receipts less than $7,000,000, 

and small agricultural producers are 

defined as those having annual receipts 

less than $750,000 (13 CFR 121.201). 

According to Committee data and 

information from the National 

Agricultural Statistical Service, the 

average price for Florida avocados 

during the 2011–12 season was 

approximately $20.79 per 55-pound 

bushel container and total shipments 

were slightly higher than 1.2 million 55- 

pound bushels. Using the average price 

and shipment information, the majority 

of avocado handlers could be 

considered small businesses under 

SBA’s definition. In addition, based on 

avocado production, producer prices, 

and the total number of Florida avocado 

producers, the average annual producer 

revenue is less than $750,000. 

Consequently, the majority of avocado 

handlers and producers may be 

classified as small entities. 

This proposal would increase the 

assessment rate for the 2013–14 and 

subsequent fiscal periods from the 

current rate of $0.25 to $0.30 per 55- 

pound bushel container of avocados. 

The Committee unanimously 

recommended the increased assessment 

rate, and 2013–14 expenditures of 

$472,553. The increase was 

recommended to provide an additional 

$100,000 for research to address the 

Laurel Wilt fungus, which can infect 

and kill avocado trees. As previously 

stated, income from handler 

assessments, interest income, and funds 

from reserves, would be adequate to 

meet this year’s expenses. 

Alternative expenditure and 

assessments levels were discussed prior 

to arriving at this budget. However, the 

Committee agreed on $472,553 in 

expenditures, reviewed the quantity of 

assessable avocados and available 

reserves, and recommended an 

assessment rate of $0.30 per 55-pound 

bushel container. 

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 would be offset by 

the benefits derived by the operation of 

the marketing order. In addition, the 

Committee’s meeting was widely 

publicized throughout the Florida 

avocado industry and all interested 

persons were invited to attend the 

meeting and participate in Committee 

deliberations on all issues. Like all 

Committee meetings, the June 12, 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. 

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 Generic 

OMB Fruit Crops. 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 

Florida avocado 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 

more opportunities for citizens to access 

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 agreements 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 

2013–14 fiscal period began on April 1, 

2013, and the marketing order requires 

that the rate of assessment for each 

fiscal period apply to all assessable 

Florida avocados handled during such 


tkelley on DSK3SPTVN1PROD with PROPOSALS
Federal Register / Vol. 78, No. 180 / Tuesday, September 17, 2013 / Proposed Rules 57101 

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 915 

Avocados, Reporting and 

recordkeeping requirements. 

For the reasons set forth in the 

preamble, 7 CFR part 915 is proposed to 

be amended as follows: 

PART 915—AVOCADOS GROWN IN 

SOUTH FLORIDA 

■ 1. The authority citation for 7 CFR 

part 915 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

■ 2. Section 915.235 is revised to read 

as follows: 

§ 915.235 Assessment rate. 

On and after April 1, 2013, an 

assessment rate of $0.30 per 55-pound 

container or equivalent is established 

for avocados grown in South Florida. 

Dated: September 11, 2013. 

Rex A. Barnes, 

Associate Administrator, Agricultural 

Marketing Service. 

[FR Doc. 2013–22539 Filed 9–16–13; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 984 

[Doc. No. AMS–FV–13–0056; FV13–984–1 

PR] 

Walnuts Grown in 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 Walnut Board (Board) 

for the 2013–14 and subsequent 

marketing years from $0.0175 to $0.0189 

per kernelweight pound of 

merchantable walnuts. The Board 

locally administers the marketing order 

which regulates the handling of walnuts 

grown in California. Assessments upon 

walnut handlers are used by the Board 

to fund reasonable and necessary 

expenses of the program. The marketing 

year begins September 1 and ends 

August 31. The assessment rate would 

remain in effect indefinitely unless 

modified, suspended, or terminated. 

DATES: Comments must be received by 

October 17, 2013. 

ADDRESSES: Interested persons are 

invited to submit written comments on 

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 document number and the 

date and page number of this issue of 

the Federal Register and will be 

available for public inspection in the 

Office of the Docket Clerk during regular 

business hours, or can be viewed at: 

http://www.regulations.gov. All 

comments submitted in response to this 

proposed rule will be included in the 

record and will be made available to the 

public. Please be advised that the 

identity of the individuals or entities 

submitting comments will be made 

public on the Internet at the address 

provided above. 

FOR FURTHER INFORMATION CONTACT: 

Andrea Ricci, 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: 

Andrea.Ricci@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. 984, as amended (7 CFR part 

984), regulating the handling of walnuts 

grown in 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, California walnut 

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 walnuts beginning on 

September 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 

Board for the 2013–14 and subsequent 

marketing years from $0.0175 to $0.0189 

per kernelweight pound of 

merchantable walnuts. 

The California walnut 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 growers and handlers 

of California walnuts. They are familiar 

with the Board’s needs and with the 

costs of goods and services in their local 

area and are therefore 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 2011–12 and subsequent 

marketing years, the Board 

recommended, and USDA approved, an 

assessment rate of $0.0175 per 

kernelweight pound of merchantable 

walnuts that would continue in effect 

from year to year 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 June 6, 2013, and 

unanimously recommended 2013–14 

expenditures of $10,166,860 and an 

assessment rate of $0.0189 per 


tkelley on DSK3SPTVN1PROD with PROPOSALS