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

45517 

Vol. 82, No. 188 

Friday, September 29, 2017 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 989 

[Doc. No. AO–FV–16–0016; AMS–SC–16– 

0011; SC16–989–1] 

Raisins Produced From Grapes Grown 

in California; Secretary’s Decision and 

Referendum Order on Proposed 

Amendments to Marketing Order No. 

989 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Proposed rule and referendum 

order. 

SUMMARY: This decision proposes 

amendments to Marketing Order No. 

989 (order), which regulates the 

handling of raisins produced from 

grapes grown in California and provides 

producers with the opportunity to vote 

in a referendum to determine if they 

favor the changes. Five amendments 

proposed by the Raisin Administrative 

Committee (RAC or Committee), the 

agency responsible for local 

administration of the order, would: 

Authorize production research; 

establish new nomination procedures 

for independent producer member and 

alternate member seats; add authority to 

regulate quality; add authority to 

establish different regulations for 

different markets; and add a 

continuance referenda requirement. 

In addition, the Agricultural 

Marketing Service (AMS) proposed to: 

Remove order language pertaining to 

volume regulation and reserve pool 

authority; establish term limits for 

Committee members; and, to make any 

such changes as may be necessary to the 

order to conform to any amendment that 

may be adopted, or to correct minor 

inconsistencies and typographical 

errors. 

These proposed amendments would 

update the order to reflect changes in 

the industry and potential future 

changes, and would improve the 

operation and administration of the 

order. 

DATES: The referendum will be 

conducted from December 4 through 15, 

2017. The representative period for the 

purpose of the referendum is August 1, 

2016, through July 31, 2017. 

ADDRESSES: Marketing Order and 

Agreement Division, Specialty Crops 

Program, AMS, USDA, 1400 

Independence Avenue SW., Stop 0237, 

Washington, DC 20250–0237. 

FOR FURTHER INFORMATION CONTACT: 

Melissa Schmaedick, Marketing Order 

and Agreement Division, Specialty 

Crops Program, AMS, USDA, Post Office 

Box 952, Moab, UT 84532; Telephone: 

(202) 557–4783, Fax: (435) 259–1502, or 

Julie Santoboni, Marketing Order and 

Agreement Division, Specialty Crops 

Program, AMS, USDA, 1400 

Independence Avenue SW., Stop 0237, 

Washington, DC 20250–0237; 

Telephone: (202) 720–2491, Fax: 

(202) 720–8938, or Email: 

Melissa.Schmaedick@ams.usda.gov or 

Julie.Santoboni@ams.usda.gov. 

Small businesses may request 

information on this proceeding by 

contacting Richard Lower, Marketing 

Order and Agreement Division, 

Specialty Crops Program, AMS, USDA, 

1400 Independence Avenue SW., Stop 

0237, Washington, DC 20250–0237; 

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

720–8938, or Email: Richard.Lower@

ams.usda.gov. 

SUPPLEMENTARY INFORMATION: Prior 

documents in this proceeding: Notice of 

Hearing issued on April 14, 2016, and 

published in the April 22, 2016, issue of 

the Federal Register (81 FR 23650) and 

a Recommended Decision issued on 

May 3, 2017, and published in the May 

31, 2017, issue of the Federal Register 

(82 FR 24882). 

This action is governed by the 

provisions of sections 556 and 557 of 

title 5 of the United States Code and is 

therefore excluded from the 

requirements of Executive Orders 

12866, 13563, and 13175. Additionally, 

because this rule does not meet the 

definition of a significant regulatory 

action, it does not trigger the 

requirements contained in Executive 

Order 13771. See OMB’s Memorandum 

titled, ‘‘Interim Guidance Implementing 

Section 2 of the Executive Order of 

January 30, 2017, titled ‘Reducing 

Regulation and Controlling Regulatory 

Costs’ ’’ (February 2, 2017). 

Notice of this rulemaking action was 

provided to tribal governments through 

the Department of Agriculture’s (USDA) 

Office of Tribal Relations. 

Preliminary Statement 

The proposed amendments are based 

on the record of a public hearing held 

on May 3 and 4, 2016, in Clovis, 

California. The hearing was held 

pursuant to the provisions of the 

Agricultural Marketing Agreement Act 

of 1937, as amended (7 U.S.C. 601–674), 

hereinafter referred to as the ‘‘Act,’’ and 

the applicable rules of practice and 

procedure governing the formulation of 

marketing agreements and orders (7 CFR 

part 900). Notice of this hearing was 

published in the Federal Register on 

April 22, 2016 (81 FR 23650). The 

notice of hearing contained five 

proposals submitted by the Committee 

and three proposals by USDA. 

The amendments in this decision 

would: 

(1) Authorize production research; 

(2) Establish new nomination 

procedures for independent producer 

member and alternate member seats; 

(3) Add authority to regulate quality; 

(4) Add authority to establish 

different regulations for different 

markets; 

(5) Add a continuance referenda 

requirement; 

(6) Remove order language pertaining 

to volume regulation and reserve pool 

authority; 

(7) Establish term limits for 

Committee members; and 

(8) Make any such changes as may be 

necessary to the order to conform to any 

amendment that may be adopted, or to 

correct minor inconsistencies and 

typographical errors. 

Conforming changes and corrections 

proposed by USDA include: Revising all 

references of ‘‘offgrade’’ to ‘‘off-grade’’; 

revising all references of ‘‘nonnormal’’ 

to ‘‘non-normal’’; and, revising all 

references to ‘‘committee’’ to 

‘‘Committee’’. These corrections would 

result in consistent spelling of these 

terms throughout the order. 

In addition, the words ‘‘Processed 

Products Standardization and 

Inspection Branch’’ in §§ 989.58(d) and 

989.59(d) should be changed to 

‘‘Specialty Crops Inspection Division.’’ 

Similarly, ‘‘Processed Products Branch, 

Fruit and Vegetable Division’’ in 


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§ 989.102 should be changed to 

‘‘Specialty Crops Inspection Division.’’ 

These corrections would reflect the 

official name change of the AMS’s 

inspection service office for fruit, 

vegetables and specialty crops. 

Lastly, an additional correction has 

been added to change the amendatory 

language in § 989.55, 989.56, 989.65, 

989.66, 989.67, 989.71, 989.72, 989.82, 

989.154, 989.156, 989.166, 989.167, 

989.221, 989.257 and 989.401, from 

‘‘remove’’ to ‘‘delete and reserve’’. This 

change would prevent the unintentional 

renumbering of remaining sections of 

the order. 

Upon the basis of evidence 

introduced at the hearing and the record 

thereof, the Administrator of AMS on 

May 3, 2017, filed with the Hearing 

Clerk, USDA, a Recommended Decision 

and Opportunity to File Written 

Exceptions thereto by June 30, 2017. 

One exception was filed. 

The exception filed opposed the 

proposed amendment to establish term 

limits. The commenter, representing the 

Raisin Bargaining Association (RBA), 

stated that the RBA Board of Directors 

voted unanimously to use the 

association’s block voting option to vote 

against the term limits proposal. The 

commenter reasoned that the RAC has 

an active and diverse membership, and 

that current RAC meetings are well 

attended and benefit from membership 

discussions. The commenter further 

argued that term limits, if implemented, 

would limit the industry’s choice as to 

who may represent them on the RAC 

and would prevent experienced persons 

from continuing to participate. Lastly, 

the commenter stated that the RAC had 

also unanimously voted against the term 

limits proposal in meetings held prior to 

the public hearing. 

Currently, the term of office of each 

member and alternate member of the 

RAC is two years. There are no 

provisions related to term limits in the 

marketing order. USDA is proposing 

that members serve no more than four 

consecutive two-year terms, or a total of 

eight years. Once a member has served 

on the RAC for four consecutive terms, 

or eight years, the member could not 

serve as a member for at least one year 

before being eligible to serve again. 

The USDA believes that all marketing 

order programs should include tenure 

limitations for Committee membership. 

Incorporating the proposed amendment 

into the order would uphold the intent 

of the 1982 USDA Fruit, Vegetable and 

Specialty Crop Marketing Order 

Guidelines, which resulted from a 1981 

Presidential Task Force on Regulatory 

Relief study finding that tenure should 

be limited. Further, if implemented, 

term limits would increase the number 

of individuals in the industry with 

Committee experience and provide the 

Committee with new perspectives and 

ideas. Therefore, the proposal to add a 

provision for term limits to the order is 

not removed as a result of the filed 

exception. 

Final Regulatory Flexibility Analysis 

Pursuant to the requirements set forth 

in the Regulatory Flexibility Act (RFA), 

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 

businesses subject to such actions so 

that small businesses will not be unduly 

or disproportionately burdened. 

Marketing orders and amendments 

thereto are unique in that they are 

normally brought about through group 

action of essentially small entities for 

their own benefit. 

According to the hearing transcript, 

there are approximately 3,000 raisin 

producers in California. According to 

National Agricultural Statistics Service 

data presented at the hearing, the total 

value of production of raisins in the 

2014/15 crop year is $598,052,000. 

Taking the total value of production for 

raisins and dividing it by the total 

number of raisin producers provides an 

average return per producer of 

$199,950.67. A small producer as 

defined by the Small Business 

Administration (SBA) (13 CFR 121.201) 

is one that grosses less than $750,000 

annually. Therefore, a majority of raisin 

producers are considered small entities 

under SBA’s standards. 

According to the industry, there were 

23 handlers for the 2015/16 crop year. 

A small agricultural service firm as 

defined by the SBA is one that grosses 

less than $7,500,000 annually. Based on 

Committee data, 13 handlers would be 

considered small entities under SBA’s 

standards. Slightly more than half of the 

industry’s handlers are considered small 

entities under SBA’s standards. 

The production area regulated under 

the order covers the state of California. 

Acreage devoted to raisin production in 

the regulated area has declined in recent 

years. According to data presented at 

the hearing, bearing acreage for raisins 

reached a high of 280,000 acres during 

the 2000/01 crop year. Since then, 

bearing acreage for raisins has decreased 

32 percent to 190,000 acres in 2014/15. 

As a result, the total production of 

raisins reached a high during the 2000/ 

01 crop year of 484,500 tons (dried 

basis). Since the 2000/01 crop year, total 

production for raisins has decreased 32 

percent to 328,600 tons in 2014/15. 

During the hearing held May 3 and 4, 

2016, interested persons were invited to 

present evidence at the hearing on the 

probable regulatory and informational 

impact of the proposed amendments to 

the order on small businesses. The 

evidence presented at the hearing shows 

that none of the proposed amendments 

would have any burdensome effects or 

a significant economic impact on a 

substantial number of small agricultural 

producers or firms. 

Material Issue Number 1—Authorize 

Production Research 

The proposal described in Material 

Issue 1 would amend § 989.53 to 

authorize production research. 

Currently, the California Raisin 

Marketing Board (CRMB) is the funding 

source for production research for the 

California raisin industry. Three years 

ago, payments of assessments to the 

CRMB were suspended due to the 

results of litigation. Without funding the 

CRMB has been unable to conduct any 

new production research projects. If 

amended, this proposal would authorize 

the RAC to conduct production research 

without having to rely on the CRMB. 

Witnesses supported this proposal 

and stated that future research could 

potentially impact producers in many 

ways, such as reducing pesticide usage 

or the development of new varieties that 

are less labor intensive. Production 

research would provide the raisin 

industry the ability to meet the needs of 

the ever changing domestic and 

international markets. According to a 

witness’s testimony, the benefits of the 

proposed amendment would outweigh 

any costs. 

For the reasons described above, it is 

determined that the proposed 

amendment would benefit industry 

participants and improve administration 

of the order. The costs of implementing 

this proposal would be minimal, and 

not have a significant impact on a 

substantial number of small entities. 

Material Issue Number 2—Authorize 

Separate Nominations for Independent 

Producer Member and Independent 

Producer Alternate Member Seats 

The proposal described in Material 

Issue 2 would amend §§ 989.29 and 

989.129 to authorize separate 

nominations for independent producer 

members and independent producer 

alternate member seats. 

Currently, the RAC has difficulty 

filling Committee seats designated for 

independent producer members and 

independent producer alternate 

members. Independent producer 


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alternate member seats have gone 

unfilled for several consecutive years. 

According to witnesses’ testimony, 

the purpose of the proposal is to 

increase the participation of 

independent producers willing to 

participate on the Committee. Full 

participation would give the 

independent producers their 

represented voice on RAC decisions. 

In conclusion, it is determined that 

the benefits of increased Committee 

participation by independent producers 

would outweigh any costs associated 

with the implementation of the 

proposed amendment. The costs of 

implementing this proposal would be 

minimal, and would not have a 

significant impact on a substantial 

number of small entities. 

Material Issue Number 3—Add 

Authority To Regulate Quality 

The proposal described in Material 

Issue 3 would amend §§ 989.58, 989.59 

and 989.61 to add authority to regulate 

quality. A corresponding change would 

also revise the heading prior to § 989.58 

to include quality. 

Currently, §§ 989.58 and 989.59 of the 

order state that the Committee has the 

authority to recommend grade and 

condition standards regulation under 

the order. The attribute ‘‘quality’’ is not 

specifically mentioned. The proposed 

amendment would add language to 

include ‘‘quality’’ as an attribute that 

can be regulated under the order. 

According to a witness, the proposed 

amendment would give the Committee 

flexibility to ensure consumer safety by 

setting quality standards for residue 

levels for herbicides, pesticides or 

fungicides. The quality standards would 

be equally applied to all handlers of 

raisins within the U.S.; some handlers 

are already testing for certain types of 

fungicides so the increased costs would 

be minimal. 

It is determined that the additional 

costs incurred to regulate quality would 

be greatly outweighed by the increased 

flexibility for the industry to respond to 

changing quality regulations, increased 

consumer safety, and other benefits 

gained from implementing this 

proposal. The costs of implementing 

this proposal would not have a 

significant impact on a substantial 

number of small entities. 

Material Issue Number 4—Add 

Authority To Establish Different 

Regulations for Different Markets 

The proposal described in Material 

Issue 4 would amend § 989.59 to add 

authority to establish different 

regulations for different markets. 

The order does not currently allow for 

different quality or grade standards to be 

applied to different foreign markets. The 

language in the order only has two 

classifications for grade and condition 

standards, Grade A or Grade B. The 

current grade and condition standards 

are consistent across all markets. 

The proposed amendment would give 

the Committee the authority to develop 

regulations for individual foreign 

markets that would be best suited for 

that specific destination. This proposal 

would give the industry flexibility to 

tailor product attributes to meet the 

foreign consumer profile and the 

customer demands for each individual 

market. 

For the reasons described above, it is 

determined that any additional costs 

incurred for this proposal would be 

outweighed by the increased flexibility 

for the industry to respond to a 

changing global marketplace. The costs 

of implementing this proposal would 

not have a significant impact on a 

substantial number of small entities. 

Material Issue Number 5—Continuance 

Referenda 

The proposal described in Material 

Issue 5 would amend § 989.91 to require 

continuance referenda. 

The proposed amendment would 

require the USDA to conduct a 

continuance referenda between year five 

and year six for the first referendum and 

every six years thereafter to assure that 

the order is responsive to industry 

needs and changing circumstances. A 

witness testified that a continuance 

referenda is the best tool for assuring 

that the order remains responsive to the 

needs of the industry. While a 

continuance referenda will not directly 

improve producer returns, it will 

indirectly assure that the industry 

believes that the order is operating in 

the producer’s best interest. 

For these reasons, it is determined 

that the benefits of conducting a 

continuance referenda would outweigh 

the potential costs of implementing this 

proposal. The costs of implementing 

this proposal would be minimal, and 

would not have a significant impact on 

a substantial number of small entities. 

Material Issue Number 6—Remove 

Volume Regulations and Reserve Pool 

Authority 

The proposal described in Material 

Issue 6 would amend the order to 

remove volume regulation and reserve 

pool authority. This would include: 

deleting and reserving §§ 989.55 and 

989.56, §§ 989.65 through 989.67, 

§§ 989.71, 989.72, 989.82, 989.154, 

989.156, 989.166, 989.167, 989.221, 

989.257, and 989.401; revising 

§§ 989.11, 989.53, 989.54, 989.58, 

989.59, 989.60, 989.73, 989.79, 989.80, 

989.84, 989.158, 989.173, and 989.210; 

and re-designating § 989.70 as § 989.96. 

Corresponding changes would also 

remove the following headings: 

‘‘Volume Regulation’’ prior to § 989.65; 

‘‘Volume Regulation’’ prior to § 989.166; 

and, ‘‘Subpart-Schedule of Payments’’ 

prior to § 989.401. 

The proposed amendment would 

remove all authority for the RAC to 

establish volume restrictions and a 

reserve pool. On June 22, 2015, the 

United States Supreme Court, in Horne 

v. USDA, ruled that the application of 

the marketing order’s reserve pool 

authority to the Hornes was a taking 

under the Fifth Amendment to the U.S. 

Constitution. By a July 16, 2015, letter 

to the RAC, USDA stated, ‘‘In light of 

the Horne decision, the U.S. Department 

of Agriculture has decided not to 

authorize the reserve program of the 

Federal marketing order for California 

raisins for the foreseeable future, 

effective immediately.’’ 

One witness explained that bearing 

acres have declined the past ten years 

that supports the theory that the 

California raisin industry is adjusting to 

a decreasing or flat demand for the 

product. The witness stated that, in the 

future, supply will likely remain in 

better balance with demand and, 

therefore, the reserve pool and volume 

regulation are no longer as relevant as 

they were in higher production times. 

To further the point, the witness stated 

that the order’s reserve pool authority 

has not been utilized since 2010. 

The proposal would be a relaxation of 

regulations, for this reason, it is 

determined that no significant impact 

on small business entities is anticipated 

from this proposed change. 

Material Issue Number 7—Establish 

Term Limits 

The proposal described in Material 

Issue 7 would amend § 989.28 to 

establish term limits. 

The proposed amendment would 

establish term limits of up to four 

consecutive two-year terms for members 

only, not alternate members. If 

implemented, in no event would any 

member serve more than eight 

consecutive years on the Committee. 

The proposal for term limits would 

conform the order to other existing 

programs. USDA strives to maintain 

continuity in the service of its members. 

According to a witness’s testimony, 

term limits in other marketing orders 

have generally proven to have the 

intended impact of increased 

participation and diversity. For these 


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45520 Federal Register / Vol. 82, No. 188 / Friday, September 29, 2017 / Proposed Rules 

1This order shall not become effective unless and 

until the requirements of § 900.14 of the rules of 

practice and procedure governing proceedings to 

formulate marketing agreements and marketing 

orders have been met. 

reasons, it is determined that the 

benefits of the proposal would outweigh 

the potential costs of implementation. 

The costs attributed to these proposed 

changes are minimal; therefore, there 

will not be a significant impact on a 

substantial number of small entities. 

USDA has not identified any relevant 

Federal rules that duplicate, overlap or 

conflict with this proposed rule. These 

amendments are intended to improve 

the operation and administration of the 

order and to assist in the marketing of 

California raisins. 

RAC meetings regarding these 

proposals, as well as the hearing date 

and location, were widely publicized 

throughout the California raisin 

industry, and all interested persons 

were invited to attend the meetings and 

the hearing to participate in RAC 

deliberations on all issues. All RAC 

meetings and the hearing were public 

forums, and all entities, both large and 

small, were able to express views on 

these issues. Finally, interested persons 

were invited to submit information on 

the regulatory and informational 

impacts of this action on small 

businesses. 

Paperwork Reduction Act 

Current information collection 

requirements for Part 989 are approved 

by OMB, under OMB Number 0581– 

0189—‘‘Generic OMB Fruit Crops.’’ No 

changes are anticipated in these 

requirements as a result of this 

proceeding. Should any such changes 

become necessary, they would be 

submitted to OMB for approval. 

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 Government Paperwork Elimination 

Act, which requires Government 

agencies in general to provide the public 

the option of submitting information or 

transacting business electronically to 

the maximum extent possible. 

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. 

Civil Justice Reform 

The amendments to the order 

proposed herein have been reviewed 

under Executive Order 12988, Civil 

Justice Reform. They are not intended to 

have retroactive effect. If adopted, the 

proposed amendments would not 

preempt any State or local laws, 

regulations, or policies, unless they 

present an irreconcilable conflict with 

this proposal. 

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. A 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 

no later than 20 days after the date of 

entry of the ruling. 

Findings and Conclusions; Discussion 

of Exception 

The findings and conclusions, rulings, 

and general findings and determinations 

included in the Recommended Decision 

set forth in the May 31, 2017, issue of 

the Federal Register are hereby 

approved and adopted. 

One exception was filed in opposition 

to the proposal to implement term 

limits. The commenter reasoned that the 

RAC has an active and diverse 

membership, and that current RAC 

meetings are well attended and benefit 

from membership discussions. The 

commenter further argued that term 

limits, if implemented, would limit the 

industry’s choice as to who may 

represent them on the RAC and would 

prevent experienced persons from 

continuing to participate. 

The USDA believes that all marketing 

order programs should include tenure 

limitations for Committee membership. 

Incorporating the proposed amendment 

into the order would uphold the intent 

of the 1982 USDA Fruit, Vegetable and 

Specialty Crop Marketing Order 

Guidelines, which resulted from a 1981 

Presidential Task Force on Regulatory 

Relief study finding that tenure should 

be limited. 

Ruling on Exception 

In arriving at the findings and 

conclusions and the regulatory 

provisions of this decision, the 

exception filed to the Recommended 

Decision was carefully considered in 

conjunction with the recorded evidence. 

To the extent that the findings and 

conclusions and the regulatory 

provisions of this decision are at 

variance with the exception, such 

exception is denied. 

Marketing Order 

Annexed hereto and made a part 

hereof is the document entitled ‘‘Order 

Amending the Order Regulating the 

Handling of Raisins Produced from 

Grapes Grown in California.’’ This 

document has been decided upon as the 

detailed and appropriate means of 

effectuating the foregoing findings and 

conclusions. 

It is hereby ordered, That this entire 

decision be published in the Federal 

Register. 

Referendum Order 

It is hereby directed that a referendum 

be conducted in accordance with the 

procedure for the conduct of referenda 

(7 CFR 900.400–407) to determine 

whether the annexed order amending 

the order regulating the handling of 

raisins produced from grapes grown in 

California is approved or favored by 

producers, as defined under the terms of 

the order, who during the representative 

period were engaged in the production 

of raisins in the production area. 

The representative period for the 

conduct of such referendum is hereby 

determined to be August 1, 2016, 

through July 31, 2017. 

The agents of the Secretary to conduct 

such referendum are hereby designated 

to be Jeffrey Smutny and Kathie Notoro, 

California Marketing Field Office, 

Marketing Order and Agreement 

Division, Specialty Crops Program, 

AMS, USDA, 2202 Monterey St., Ste. 

102B, Fresno, California 93721–3129; 

telephone: (559) 487–5901; or fax: (559) 

487–5906, or Email: Jeffrey.Smutny@

ams.usda.gov or Kathie.Notoro@

ams.usda.gov, respectively. 

Order Amending the Order Regulating 

the Handling of Raisins Produced From 

Grapes Grown in California 1

Findings and Determinations 

The findings and determinations 

hereinafter set forth are supplementary 

to the findings and determinations that 

were previously made in connection 

with the issuance of the marketing 

order; and all said previous findings and 

determinations are hereby ratified and 

affirmed, except insofar as such findings 

and determinations may be in conflict 

with the findings and determinations set 

forth herein. 


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(a) Findings and Determinations Upon 

the Basis of the Hearing Record 

Pursuant to the provisions of the 

Agricultural Marketing Agreement Act 

of 1937, as amended (7 U.S.C. 601–674), 

and the applicable rules of practice and 

procedure effective thereunder (7 CFR 

part 900), a public hearing was held 

upon proposed further amendment of 

Marketing Order No. 989, regulating the 

handling of raisins produced from 

grapes grown in California. Upon the 

basis of the record, it is found that: 

(1) The marketing order, as amended, 

and as hereby proposed to be further 

amended, and all of the terms and 

conditions thereof, would tend to 

effectuate the declared policy of the Act; 

(2) The marketing order, as amended, 

and as hereby proposed to be further 

amended, regulates the handling of 

raisins produced from grapes grown in 

the production area in the same manner 

as, and are applicable only to, persons 

in the respective classes of commercial 

and industrial activity specified in the 

marketing order upon which a hearing 

has been held; 

(3) The marketing order, as amended, 

and as hereby proposed to be further 

amended, is limited in its application to 

the smallest regional production area 

that is practicable, consistent with 

carrying out the declared policy of the 

Act, and the issuance of several orders 

applicable to subdivisions of the 

production area would not effectively 

carry out the declared policy of the Act; 

(4) The marketing order, as amended, 

and as hereby proposed to be further 

amended, prescribes, insofar as 

practicable, such different terms 

applicable to different parts of the 

production area as are necessary to give 

due recognition to the differences in the 

production and marketing of raisins 

produced from grapes grown in the 

production area; and 

(5) All handling of raisins produced 

from grapes grown in the production 

area as defined in the marketing order 

is in the current of interstate or foreign 

commerce or directly burdens, 

obstructs, or affects such commerce. 

Order Relative to Handling 

It is therefore ordered, That on and 

after the effective date hereof, all 

handling of raisins produced from 

grapes grown in California shall be in 

conformity to, and in compliance with, 

the terms and conditions of the said 

order as hereby proposed to be amended 

as follows: 

The provisions of the proposed 

marketing order amending the order 

contained in the Recommended 

Decision issued on May 3, 2017, and 

published in the May 31, 2017, issue of 

the Federal Register (82 FR 24882) will 

be and are the terms and provisions of 

this order amending the order and are 

set forth in full herein. 

List of Subjects in 7 CFR Part 989 

Raisins, Marketing agreements, 

Reporting and recordkeeping 

requirements. 

For the reasons set out in the 

preamble, 7 CFR part 989 is proposed to 

be amended as follows: 

PART 989—RAISINS PRODUCED BY 

GRAPES GROWN IN CALIFORNIA 

■ 1. The authority citation for 7 CFR 

part 989 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

Subpart A—[Amended] 

■ 2. Designate the subpart labeled 

‘‘Order Regulating Handline’’ as subpart 

A. 

■ 3. Section 989.11 is revised to read as 

follows: 

§ 989.11 Producer. 

Producer means any person engaged 

in a proprietary capacity in the 

production of grapes which are sundried or dehydrated by artificial means 

until they become raisins. 

■ 4. Revise § 989.28 to read as follows: 

§ 989.28 Term of office. 

(a) The term of office of all 

representatives serving on the 

Committee shall be for two years and 

shall end on April 30 of even numbered 

calendar years; Provided, That each 

such member and alternate member 

shall continue to serve until their 

successor is selected and has qualified. 

(b) Representatives may serve up to 

four consecutive, two-year terms of 

office. In no event shall any 

representative serve more than eight 

consecutive years on the Committee. For 

purposes of determining when a 

representative has served four 

consecutive terms, the accrual of terms 

shall begin following any period of at 

least twelve consecutive months out of 

office. This limitation on tenure shall 

not include service on the Committee 

prior to implementation of this 

amendment. This limitation on tenure 

shall not apply to the service of 

alternate members. 

■ 5. In § 989.29: 

■ a. Revise paragraph (b)(2)(ii); 

■ b. Redesignate paragraph (b)(2)(iii) as 

paragraph (b)(2)(iv); 

■ c. Add a new paragraph (b)(2)(iii); and 

■ d. Revise newly redesignated 

paragraph (b)(2)(iv). 

The revisions and addition read as 

follows: 

§ 989.29 Initial members and nomination 

of successor members. 

* * * * * 

(b) * * * 

(2) * * * 

(i) * * * 

(ii) Each such producer whose name 

is offered in nomination for producer 

member positions to represent on the 

Committee independent producers or 

producers who are affiliated with 

cooperative marketing association(s) 

handling less than 10 percent of the 

total raisin acquisitions during the 

preceding crop year shall be given the 

opportunity to provide the Committee a 

short statement outlining qualifications 

and desire to serve if selected. Similarly, 

each such producer whose name is 

offered in nomination for producer 

alternate member positions to represent 

on the Committee independent 

producers or producers who are 

affiliated with cooperative marketing 

association(s) handling less than 10 

percent of the total raisin acquisitions 

during the preceding crop year shall be 

given the opportunity to provide the 

Committee a short statement outlining 

qualifications and desire to serve if 

selected. These brief statements, 

together with a ballot and voting 

instructions, shall be mailed to all 

independent producers and producers 

who are affiliated with cooperative 

marketing associations handling less 

than 10 percent of the total raisin 

acquisitions during the preceding crop 

year of record with the Committee in 

each district. The producer member 

candidate receiving the highest number 

of votes shall be designated as the first 

member nominee, the second highest 

shall be designated as the second 

member nominee until nominees for all 

producer member positions have been 

filled. Similarly, the producer alternate 

member candidate receiving the highest 

number of votes shall be designated as 

the first alternate member nominee, the 

second highest shall be designated as 

the second alternate member nominee 

until nominees for all member positions 

have been filled. 

(iii) In the event that there are more 

producer member nominees than 

positions to be filled and not enough 

producer alternate member nominees to 

fill all positions, producer member 

nominees not nominated for a member 

seat may be nominated to fill vacant 

alternate member seats. Member seat 

nominees shall indicate, prior to the 

nomination vote, whether they are 

willing to accept nomination for an 

alternate seat in the event they are not 


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nominated for a member seat and there 

are vacant alternate member seats. 

Member seat nominees that do not 

indicate willingness to be considered for 

vacant alternate member seats shall not 

be considered. 

(iv) Each independent producer or 

producer affiliated with cooperative 

marketing association(s) handling less 

than 10 percent of the total raisin 

acquisitions during the preceding crop 

year shall cast only one vote with 

respect to each position for which 

nominations are to be made. Write-in 

candidates shall be accepted. The 

person receiving the most votes with 

respect to each position to be filled, in 

accordance with paragraph (b)(2)(ii) and 

(iii) of this section, shall be the person 

to be certified to the Secretary as the 

nominee. The Committee may, subject 

to the approval of the Secretary, 

establish rules and regulations to 

effectuate this section. 

* * * * * 

■ 6. In § 989.53(a), revise the 

introductory text and remove the text 

that follows paragraph (a)(5) to read as 

follows: 

§ 989.53 Research and development. 

(a) General. The Committee, with the 

approval of the Secretary, may establish 

or provide for the establishment of 

projects involving production research, 

market research and development, 

marketing promotion including paid 

advertising, designed to assist, improve, 

or promote the production, marketing, 

distribution, and consumption of raisins 

in domestic and foreign markets. These 

projects may include, but need not be 

limited to those designed to: 

* * * * * 

■ 7. In § 989.54: 

■ a. Remove paragraphs (a) through (d) 

and (g); 

■ b. Remove paragraph (e)(4); 

■ c. Redesignate paragraphs (e)(5) 

through (e)(10) as (e)(4) through (e)(9), 

respectively; 

■ d. Redesignate paragraphs (e), (f), and 

(h) as paragraphs (a), (b), and (c), 

respectively; and 

■ e. Revise newly redesignated 

paragraphs (a) introductory text, (a)(1), 

(a)(4), (a)(5) and (c). 

The revisions read as follows: 

§ 989.54 Marketing policy. 

(a) Each crop year, the Committee 

shall prepare and submit to the 

Secretary a report setting forth its 

recommended marketing policy, 

including quality regulations for the 

pending crop. In developing the 

marketing policy, the Committee may 

give consideration to the production, 

harvesting, processing, and storage 

conditions of that crop, as well as the 

following factors: 

(1) The estimated tonnage held by 

producers and handlers at the beginning 

of the crop year; 

* * * * * 

(4) An estimated desirable carryout at 

the end of the crop year; 

(5) The estimated market demand for 

raisins, considering the estimated world 

raisin supply and demand situation; 

* * * * * 

(c) Publicity. The Committee shall 

promptly give reasonable publicity to 

producers, dehydrators, handlers, and 

the cooperative bargaining association(s) 

of each meeting to consider a marketing 

policy or any modification thereof, and 

each such meeting shall be open to 

them. Similar publicity shall be given to 

producers, dehydrators, handlers, and 

the cooperative bargaining association(s) 

of each marketing policy report or 

modification thereof, filed with the 

Secretary and of the Secretary’s action 

thereon. Copies of all marketing policy 

reports shall be maintained in the office 

of the Committee, where they shall be 

made available for examination by any 

producer, dehydrator, handler, or 

cooperative bargaining association 

representative. The Committee shall 

notify handlers, dehydrators and the 

cooperative bargaining association(s), 

and give reasonable publicity to 

producers of its computation. 

§§ 989.55 and 989.56 [Removed and 

reserved]. 

■ 8. Sections 989.55 and 989.56 are 

removed and reserved. 

■ 9. Revise the undesignated heading 

prior to § 989.58 to read as follows: 

‘‘Grade, Quality, and Condition 

Standards’’. 

■ 10. In § 989.58, revise paragraphs (a), 

(b), (d)(1), (e)(1), and (e)(4) to read as 

follows: 

§ 989.58 Natural condition raisins. 

(a) Regulation. No handler shall 

acquire or receive natural condition 

raisins which fail to meet such 

minimum grade, quality, and condition 

standards as the Committee may 

establish, with the approval of the 

Secretary, in applicable rules and 

regulations: Provided, That a handler 

may receive raisins for inspection, may 

receive off-grade raisins for 

reconditioning and may receive or 

acquire off-grade raisins for use in 

eligible non-normal outlets: And 

provided further, That a handler may 

acquire natural condition raisins which 

exceed the tolerance established for 

maturity under a weight dockage system 

established pursuant to rules and 

regulations recommended by the 

Committee and approved by the 

Secretary. Nothing contained in this 

paragraph shall apply to the acquisition 

or receipt of natural condition raisins of 

a particular varietal type for which 

minimum grade, quality, and condition 

standards are not applicable or then in 

effect pursuant to this part. 

(b) Changes in minimum grade, 

quality, and condition standards for 

natural condition raisins. The 

Committee may recommend to the 

Secretary changes in the minimum 

grade, quality, and condition standards 

for natural condition raisins of any 

varietal type and may recommend to the 

Secretary that minimum grade, quality, 

and condition standards for any varietal 

type be added to or deleted. The 

Committee shall submit with its 

recommendation all data and 

information upon which it acted in 

making its recommendation, and such 

other information as the Secretary may 

request. The Secretary shall approve any 

such change if he finds, upon the basis 

of data submitted to him by the 

Committee or from other pertinent 

information available to him, that to do 

so would tend to effectuate the declared 

policy of the Act. 

* * * * * 

(d) * * * 

(1) Each handler shall cause an 

inspection and certification to be made 

of all natural condition raisins acquired 

or received by him, except with respect 

to: 

(i) An interplant or interhandler 

transfer of off-grade raisins as described 

in paragraph (e)(2) of this section, 

unless such inspection and certification 

are required by rules and procedures 

made effective pursuant to this 

amended subpart; 

(ii) An interplant or interhandler 

transfer of standard raisins as described 

in § 989.59(e); 

(iii) Raisins received from a 

dehydrator which have been previously 

inspected pursuant to paragraph (d)(2) 

of this section; 

(iv) Any raisins for which minimum 

grade, quality, and condition standards 

are not then in effect; 

(v) Raisins received from a 

cooperative bargaining association 

which have been inspected and are in 

compliance with requirements 

established pursuant to paragraph (d)(3) 

of this section; and 

(vi) Any raisins, if permitted in 

accordance with such rules and 

procedures as the Committee may 

establish with the approval of the 

Secretary, acquired or received for 

disposition in eligible non-normal 

outlets. Except as otherwise provided in 


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this section, prior to blending raisins, 

acquiring raisins, storing raisins, 

reconditioning raisins, or acquiring 

raisins which have been reconditioned, 

each handler shall obtain an inspection 

certification showing whether or not the 

raisins meet the applicable grade, 

quality, and condition standards: 

Provided, That the initial inspection for 

infestation shall not be required if the 

raisins are fumigated in accordance with 

such rules and procedures as the 

Committee shall establish with the 

approval of the Secretary. The handler 

shall submit or cause to be submitted to 

the Committee a copy of such 

certification, together with such other 

documents or records as the Committee 

may require. Such certification shall be 

issued by inspectors of the Processed 

Products Standardization and 

Inspection Branch of the U.S. 

Department of Agriculture, unless the 

Committee determines, and the 

Secretary concurs in such 

determination, that inspection by 

another agency would improve the 

administration of this amended subpart. 

The Committee may require that raisins 

held on memorandum receipt be reinspected and certified as a condition 

for their acquisition by a handler. 

* * * * * 

(e) * * * 

(1) Any natural condition raisins 

tendered to a handler which fail to meet 

the applicable minimum grade, quality, 

and condition standards may: 

(i) Be received or acquired by the 

handler for disposition, without further 

inspection, in eligible non-normal 

outlets; 

(ii) Be returned unstemmed to the 

person tendering the raisins; or 

(iii) Be received by the handler for 

reconditioning. Off-grade raisins 

received by a handler under any one of 

the three described categories may be 

changed to any other of the categories 

under such rules and procedures as the 

Committee, with the approval of the 

Secretary, shall establish. No handler 

shall ship or otherwise dispose of offgrade raisins which he does not return 

to the tenderer, transfer to another 

handler as provided in paragraph (e)(2) 

of this section, or recondition so that 

they at least meet the minimum 

standards prescribed in or pursuant to 

this amended subpart, except into 

eligible non-normal outlets. 

* * * * * 

(4) If the handler is to acquire the 

raisins after they are reconditioned, his 

obligation with respect to such raisins 

shall be based on the weight of the 

raisins (if stemmed, adjusted to natural 

condition weight) after they have been 

reconditioned. 

* * * * * 

■ 11. In § 989.59, revise paragraphs (a), 

(b), (d), (e), and (g) to read as follows: 

§ 989.59 Regulation of the handling of 

raisins subsequent to their acquisition by 

handlers. 

(a) Regulation. Unless otherwise 

provided in this part, no handler shall: 

(1) Ship or otherwise make final 

disposition of natural condition raisins 

unless they at least meet the effective 

and applicable minimum grade, quality, 

and condition standards for natural 

condition raisins; or 

(2) Ship or otherwise make final 

disposition of packed raisins unless 

they at least meet such minimum grade 

quality, and condition standards 

established by the Committee, with the 

approval of the Secretary, in applicable 

rules and regulations or as later changed 

or prescribed pursuant to the provisions 

of paragraph (b) of this section: 

Provided, That nothing contained in this 

paragraph shall prohibit the shipment or 

final disposition of any raisins of a 

particular varietal type for which 

minimum standards are not applicable 

or then in effect pursuant to this part. 

And provided further, That a handler 

may grind raisins, which do not meet 

the minimum grade, quality, and 

condition standards for packed raisins 

because of mechanical damage or 

sugaring, into a raisin paste. The 

Committee may establish, with approval 

of the Secretary, different grade, quality, 

and condition regulations for different 

markets. 

(b) The Committee may recommend 

changes in the minimum grade, quality, 

or condition standards for packed 

raisins of any varietal type and may 

recommend to the Secretary that 

minimum grade, quality, or condition 

standards for any varietal type be added 

or deleted. The Committee shall submit 

with its recommendation all data and 

information upon which it acted in 

making its recommendation, and such 

other information as the Secretary may 

request. The Secretary shall approve any 

such change if he finds, upon the basis 

of data submitted to him by the 

Committee or from other pertinent 

information available to him, that to do 

so would tend to effectuate the declared 

policy of the Act. 

* * * * * 

(d) Inspection and certification. 

Unless otherwise provided in this 

section, each handler shall, at his own 

expense, before shipping or otherwise 

making final disposition of raisins, 

cause an inspection to be made of such 

raisins to determine whether they meet 

the then applicable minimum grade, 

quality, and condition standards for 

natural condition raisins or the then 

applicable minimum standards for 

packed raisins. Such handler shall 

obtain a certificate that such raisins 

meet the aforementioned applicable 

minimum standards and shall submit or 

cause to be submitted to the Committee 

a copy of such certificate together with 

such other documents or records as the 

Committee may require. The certificate 

shall be issued by the Processed 

Products Standardization and 

Inspection Branch of the United States 

Department of Agriculture, unless the 

Committee determines, and the 

Secretary concurs in such 

determination, that inspection by 

another agency will improve the 

administration of this amended subpart. 

Any certificate issued pursuant to this 

paragraph shall be valid only for such 

period of time as the Committee may 

specify, with the approval of the 

Secretary, in appropriate rules and 

regulations. 

(e) Inter-plant and inter-handler 

transfers. Any handler may transfer 

from his plant to his own or another 

handler’s plant within the State of 

California any raisins without having 

had such raisins inspected as provided 

in paragraph (d) of this section. The 

transferring handler shall transmit 

promptly to the Committee a report of 

such transfer, except that transfers 

between plants owned or operated by 

the same handler need not be reported. 

Before shipping or otherwise making 

final disposition of such raisins, the 

receiving handler shall comply with the 

requirements of this section. 

* * * * * 

(g) Exemption of experimental and 

specialty packs. The Committee may 

establish, with the approval of the 

Secretary, rules and procedures 

providing for the exemption of raisins in 

experimental and specialty packs from 

one or more of the requirements of the 

minimum grade, quality, or condition 

standards of this section, together with 

the inspection and certification 

requirements if applicable. 

■ 12. Amend § 989.60 by revising 

paragraph (a) to read as follows: 

§ 989.60 Exemption. 

(a) Notwithstanding any other 

provisions of this amended subpart, the 

Committee may establish, with the 

approval of the Secretary, such rules 

and procedures as may be necessary to 

permit the acquisition and disposition 

of any off-grade raisins, free from any or 


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all regulations, for uses in non-normal 

outlets. 

* * * * * 

■ 13. Section 989.61 is revised to read 

as follows: 

§ 989.61 Above parity situations. 

The provisions of this part relating to 

minimum grade, quality, and condition 

standards and inspection requirements, 

within the meaning of section 2(3) of the 

Act, and any other provisions pertaining 

to the administration and enforcement 

of the order, shall continue in effect 

irrespective of whether the estimated 

season average price to producers for 

raisins is in excess of the parity level 

specified in section 2(1) of the Act. 

■ 14. Remove the undesignated heading 

‘‘Volume Regulation’’ prior to § 989.65. 

§§ 989.65–989.67 [Removed and reserved]. 

■ 15. Sections 989.65, 989.66, and 

989.67 are removed and reserved. 

■ 16. Redesignate § 989.70 as § 989.96. 

§§ 989.71–989.72 [Removed and reserved]. 

■ 17. Sections 989.71 and 989.72 are 

removed and reserved. 

■ 18. Amend § 989.73 by revising 

paragraph (b) to read as follows: 

§ 989.73 Reports. 

* * * * * 

(b) Acquisition reports. Each handler 

shall submit to the Committee in 

accordance with such rules and 

procedures as are prescribed by the 

Committee, with the approval of the 

Secretary, certified reports, for such 

periods as the Committee may require, 

with respect to his acquisitions of each 

varietal type of raisins during the 

particular period covered by such 

report, which report shall include, but 

not be limited to: 

(1) The total quantity of standard 

raisins acquired; 

(2) The total quantity of off-grade 

raisins acquired pursuant to 

§ 989.58(e)(1)(i); and 

(3) Cumulative totals of such 

acquisitions from the beginning of the 

then current crop year to and including 

the end of the period for which the 

report is made. Upon written 

application made to the Committee, a 

handler may be relieved of submitting 

such reports after completing his 

packing operations for the season. Upon 

request of the Committee, each handler 

shall furnish to the Committee, in such 

manner and at such times as it may 

require, the name and address of each 

person from whom he acquired raisins 

and the quantity of each varietal type of 

raisins acquired from each such person. 

* * * * * 

■ 19. Section 989.79 is revised to read 

as follows: 

§ 989.79 Expenses. 

The Committee is authorized to incur 

such expenses as the Secretary finds are 

reasonable and likely to be incurred by 

it during each crop year, for the 

maintenance and functioning of the 

Committee and for such purposes as he 

may, pursuant to this subpart, 

determine to be appropriate. The funds 

to cover such expenses shall be obtained 

levying assessments as provided in 

§ 989.80. The Committee shall file with 

the Secretary for each crop year a 

proposed budget of these expenses and 

a proposal as to the assessment rate to 

be fixed pursuant to § 989.80, together 

with a report thereon. Such filing shall 

be not later than October 5 of the crop 

year, but this date may be extended by 

the Committee not more than 5 days if 

warranted by a late crop. 

■ 20. In § 989.80, revise paragraphs (a) 

through (c) to read as follows: 

§ 989.80 Assessments. 

(a) Each handler shall pay to the 

Committee, upon demand, his pro rata 

share of the expenses which the 

Secretary finds will be incurred, as 

aforesaid, by the Committee during each 

crop year less any amounts credited 

pursuant to § 989.53. Such handler’s pro 

rata share of such expenses shall be 

equal to the ratio between the total 

raisin tonnage acquired by such handler 

during the applicable crop year and the 

total raisin tonnage acquired by all 

handlers during the same crop year. 

(b) Each handler who reconditions 

off-grade raisins but does not acquire 

the standard raisins recovered therefrom 

shall, with respect to his assessable 

portion of all such standard raisins, pay 

to the Committee, upon demand, his pro 

rata share of the expenses which the 

Secretary finds will be incurred by the 

Committee each crop year. Such 

handler’s pro rata share of such 

expenses shall be equal to the ratio 

between the handler’s assessable 

portion (which shall be a quantity equal 

to such handler’s standard raisins which 

are acquired by some other handler or 

handlers) during the applicable crop 

year and the total raisin tonnage 

acquired by all handlers. 

(c) The Secretary shall fix the rate of 

assessment to be paid by all handlers on 

the basis of a specified rate per ton. At 

any time during or after a crop year, the 

Secretary may increase the rate of 

assessment to obtain sufficient funds to 

cover any later finding by the Secretary 

relative to the expenses of the 

Committee. Each handler shall pay such 

additional assessment to the Committee 

upon demand. In order to provide funds 

to carry out the functions of the 

Committee, the Committee may accept 

advance payments from any handler to 

be credited toward such assessments as 

may be levied pursuant to this section 

against such handler during the crop 

year. The payment of assessments for 

the maintenance and functioning of the 

Committee, and for such purposes as the 

Secretary may pursuant to this subpart 

determine to be appropriate, may be 

required under this part throughout the 

period it is in effect, irrespective of 

whether particular provisions thereof 

are suspended or become inoperative. 

* * * * * 

§ 989.82 [Removed and reserved]. 

■ 21. Section 989.82 is removed and 

reserved. 

■ 22. Section 989.84 is revised to read 

as follows: 

§ 989.84 Disposition limitation. 

No handler shall dispose of standard 

raisins, off-grade raisins, or other failing 

raisins, except in accordance with the 

provisions of this subpart or pursuant to 

regulations issued by the committee. 

■ 23. In § 989.91: 

■ a. Redesignate paragraphs (c) and (d) 

as paragraphs (d) and (e), respectively, 

and; 

■ b. Add a new paragraph (c). 

The addition to read as follows: 

§ 989.91 Suspension or termination. 

* * * * * 

(c) No less than five crop years and no 

later than six crop years after the 

effective date of this amendment, the 

Secretary shall conduct a referendum to 

ascertain whether continuance of this 

part is favored by producers. 

Subsequent referenda to ascertain 

continuance shall be conducted every 

six crop years thereafter. The Secretary 

may terminate the provisions of this 

part at the end of any crop year in 

which the Secretary has found that 

continuance of this part is not favored 

by a two-thirds majority of voting 

producers, or a two-thirds majority of 

volume represented thereby, who, 

during a representative period 

determined by the Secretary, have been 

engaged in the production for market of 

grapes used in the production of raisins 

in the State of California. Such 

termination shall be announced on or 

before the end of the crop year. 

* * * * * 

Subpart B—Administrative 

Requirements 

■ 24. Designate the subpart labeled 

‘‘Administrative Rules and Regulations’’ 

as subpart B and revise the heading as 

shown above. 

■ 25. Section 989.129 is revised to read 

as follows: 


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§ 989.129 Voting at nomination meetings. 

Any person (defined in § 989.3 as an 

individual, partnership, corporation, 

association, or any other business unit) 

who is engaged, in a proprietary 

capacity, in the production of grapes 

which are sun-dried or dehydrated by 

artificial means to produce raisins and 

who qualifies under the provisions of 

§ 989.29(b)(2) shall be eligible to cast 

one ballot for a nominee for each 

producer member position and one 

ballot for a nominee for each producer 

alternate member position on the 

committee which is to be filled for his 

district. Such person must be the one 

who or which: (a) Owns and farms land 

resulting in his or its ownership of such 

grapes produced thereon; (b) rents and 

farms land, resulting in his or its 

ownership of all or a portion of such 

grapes produced thereon; or (c) owns 

land which he or it does not farm and, 

as rental for such land, obtains the 

ownership of a portion of such grapes or 

the raisins. In this connection, a 

partnership shall be deemed to include 

two or more persons (including a 

husband and wife) with respect to land 

the title to which, or leasehold interest 

in which, is vested in them as tenants 

in common, joint tenants, or under 

community property laws, as 

community property. In a landlordtenant relationship, wherein each of the 

parties is a producer, each such 

producer shall be entitled to one vote 

for a nominee for each producer 

member position and one vote for each 

producer alternate member position. 

Hence, where two persons operate land 

as landlord and tenant on a share-crop 

basis, each person is entitled to one vote 

for each such position to be filled. 

Where land is leased on a cash rental 

basis, only the person who is the tenant 

or cash renter (producer) is entitled to 

vote. A partnership or corporation, 

when eligible, is entitled to cast only 

one vote for a nominee for each 

producer position to be filled in its 

district. 

§ 989.154 [Removed and reserved]. 

§ 989.156 [Removed and reserved]. 

■ 26. Sections 989.154 and 989.156 are 

removed and reserved. 

■ 27. Amend § 989.158 by revising 

paragraph (c)(4)(i) to read as follows: 

§ 989.158 Natural condition raisins. 

* * * * * 

(c) * * * 

(4) * * * 

(i) The handler shall notify the 

inspection service at least one business 

day in advance of the time such handler 

plans to begin reconditioning each lot of 

raisins, unless a shorter period is 

acceptable to the inspection service. 

Such notification shall be provided 

verbally or by other means of 

communication, including email. 

Natural condition raisins which have 

been reconditioned shall continue to be 

considered natural condition raisins for 

purposes of reinspection (inspection 

pursuant to § 989.58(d)) after such 

reconditioning has been completed, if 

no water or moisture has been added; 

otherwise, such raisins shall be 

considered as packed raisins. The 

weight of the raisins reconditioned 

successfully shall be determined by 

reweighing, except where a lot, before 

reconditioning, failed due to excess 

moisture only. The weight of such 

raisins resulting from reconditioning a 

lot failing account excess moisture may 

be determined by deducting 1.2 percent 

of the weight for each percent of 

moisture in excess of the allowable 

tolerance. When necessary due to the 

presence of sand, as determined by the 

inspection service, the requirement for 

deducting sand tare and the manner of 

its determination, as prescribed in 

paragraph (a)(1) of this section, shall 

apply in computing the net weight of 

any such successfully reconditioned 

natural condition raisins. The weight of 

the reconditioned raisins acquired as 

packed raisins shall be adjusted to 

natural condition weight by the use of 

factors applicable to the various degrees 

of processing accomplished. The 

applicable factor shall be that selected 

by the inspector of the reconditioned 

raisins from among factors established 

by the Committee with the approval of 

the Secretary. 

* * * * * 

■ 28. Remove the undesignated heading 

‘‘Volume Regulation’’ prior to § 989.166 

is removed. 

§ 989.166–989.167 [Removed and 

reserved]. 

■ 29. Sections 989.166 and 989.167 are 

removed and reserved. 

■ 30. In § 989.173: 

■ a. Remove paragraphs (b)(2)(ii), (f), 

and (g)(1)(ii); 

■ b. Redesignate paragraph (b)(2)(iii), (g) 

and (g)(1)(iii) as paragraphs (b)(2)(ii), (f) 

introductory text and (f)(1)(ii), 

respectively; and 

■ c. Revise paragraphs (a), (b)(2)(i), 

newly redesignated paragraph (b)(2)(ii), 

(c)(1), (d)(1), (d)(1)(v), newly 

redesignated paragraph (f)(1)(ii), (f)(2)(i) 

and (f)(3). 

The revisions read as follows: 

§ 989.173 Reports. 

(a) Inventory reports. Each handler 

shall submit to the Committee as of the 

close of business on July 31 of each crop 

year, and not later than the following 

August 6, an inventory report which 

shall show, with respect to each varietal 

type of raisins held by such handler, the 

quantity of off-grade raisins segregated 

as to those for reconditioning and those 

for disposition as such. Provided, That, 

for the Other Seedless varietal type, 

handlers shall report the information 

required in this paragraph separately for 

the different types of Other Seedless 

raisins. Upon request by the Committee, 

each handler shall file at other times, 

and as of other dates, any of the said 

information which may reasonably be 

necessary and which the Committee 

shall specify in its request. 

(b) * * * 

(2) * * * 

(i) The total net weight of the standard 

raisins acquired during the reporting 

period; and 

(ii) The cumulative totals of such 

acquisitions from the beginning of the 

then current crop year. 

* * * * * 

(c) * * * 

(1) Each month each handler who is 

not a processor shall furnish to the 

Committee, on an appropriate form 

provided by the Committee and so that 

it is received by the Committee not later 

than the seventh day of the month, a 

report showing the aggregate quantity of 

each varietal type of packed raisins and 

standard natural condition raisins 

which were shipped or otherwise 

disposed of by such handler during the 

preceding month (exclusive of transfers 

within the State of California between 

plants of any such handler and from 

such handler to other handlers): 

Provided, That, for the Other Seedless 

varietal type, handlers shall report such 

information for the different types of 

Other Seedless raisins. Such required 

information shall be segregated as to: 

* * * * * 

(d) * * * 

(1) Any handler who transfers raisins 

to another handler within the State of 

California shall submit to the Committee 

not later than five calendar days 

following such transfer a report 

showing: 

* * * * * 

(v) If packed, the transferring handler 

shall certify that such handler is 

transferring only acquired raisins that 

meet all applicable marketing order 

requirements, including reporting, 

incoming inspection, and assessments. 

* * * * * 

(f) * * * 

(1) * * * 

(i) The quantity of raisins, segregated 

as to locations where they are stored 


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45526 Federal Register / Vol. 82, No. 188 / Friday, September 29, 2017 / Proposed Rules 

and whether they are natural condition 

or packed; 

(ii) * * * 

(2) * * * 

(i) The total net weight of the standard 

raisins acquired during the reporting 

period; and 

* * * * * 

(3) Disposition report of organicallyproduced raisins. No later than the 

seventh day of each month, handlers 

who are not processors shall submit to 

the Committee, on an appropriate form 

provided by the Committee, a report 

showing the aggregate quantity of 

packed raisins and standard natural 

condition raisins which were shipped or 

otherwise disposed of by such handler 

during the preceding month (exclusive 

of transfer within the State of California 

between the plants of any such handler 

and from such handler to other 

handlers). Such information shall 

include: 

* * * * * 

Subpart C—Supplementary 

Requirements 

■ 31. Designate the subpart labeled 

‘‘Supplementary Regulations’’ as 

subpart C and revise the heading as 

shown above. 

■ 32. In § 989.210: 

■ a. Remove paragraphs (b), (c) and (e); 

■ b. Redesignate paragraph (d) as (b), 

paragraph (f) as (c), and paragraph (g) as 

(d); and 

■ c. Revise newly redesignated 

paragraph (b). 

The revision to read as follows: 

§ 989.210 Handling of varietal types of 

raisins acquired pursuant to a weight 

dockage system. 

* * * * * 

(b) Assessments. Assessments on any 

lot of raisins of the varietal types 

specified in paragraph (a) of this section 

acquired by a handler pursuant to a 

weight dockage system shall be 

applicable to the creditable weight of 

such lot. 

* * * * * 

■ 34. Sections 989.221 and 989.257 are 

deleted and reserved. 

Subpart D—[Amended] 

■ 35. Designate the subpart labeled 

‘‘Assessment Rates’’ as subpart D. 

■ 36. The subpart heading ‘‘SubpartSchedule of Payments’’ prior to 

§ 989.401 is removed. 

■ 37. Section 989.401 is removed and 

reserved. 

Subpart E—[Amended] 

■ 38. Designate the subpart labeled 

‘‘Conversion Factors’’ as subpart E. 

Subpart F—[Amended] 

■ 39. Designate the subpart labeled 

‘‘Quality Control’’ as subpart F. 

Subpart G—[Amended] 

■ 40. Designate the subpart labeled 

‘‘Antitrust Immunity and Liability’’ as 

subpart G. 

■ 41. In part 989 all references of 

‘‘offgrade’’ are revised to read ‘‘offgrade’’. 

■ 42. In part 989 all references to 

‘‘nonnormal’’ are revised to read ‘‘nonnormal’’. 

■ 43. In part 989 all references to 

‘‘committee’’ are revised to read 

‘‘Committee’’. 

■ 44. In the list below, for each section 

indicated in the left column, remove the 

title indicated in the middle column 

from wherever it appears in the section, 

and add the title indicated in the right 

column: 

Section Remove Add 

989.58(d) .............................. Processed Products Standardization and Inspection 

Branch.

Specialty Crops Inspection Division. 

989.59(d) .............................. Processed Products Standardization and Inspection 

Branch.

Specialty Crops Inspection Division. 

989.102 ................................ Processed Products Branch, Fruit and Vegetable Division.Specialty Crops Inspection Division. 

Dated: September 19, 2017. 

Bruce Summers, 

Acting Administrator, Agricultural Marketing 

Service. 

[FR Doc. 2017–20347 Filed 9–28–17; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2017–0901; Product 

Identifier 2017–NM–106–AD] 

RIN 2120–AA64 

Airworthiness Directives; The Boeing 

Company Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Notice of proposed rulemaking 

(NPRM). 

SUMMARY: We propose to adopt a new 

airworthiness directive (AD) for all The 

Boeing Company Model 757–300 series 

airplanes. This proposed AD was 

prompted by reports of scribe line 

damage on fuselage skin. This proposed 

AD would require detailed inspections 

of fuselage skin for the presence of 

scribe lines, and applicable oncondition actions. We are proposing this 

AD to address the unsafe condition on 

these products. 

DATES: We must receive comments on 

this proposed AD by November 13, 

2017. 

ADDRESSES: You may send comments, 

using the procedures found in 14 CFR 

11.43 and 11.45, by any of the following 

methods: 

• Federal eRulemaking Portal: Go to 

http://www.regulations.gov. Follow the 

instructions for submitting comments. 

• Fax: 202–493–2251. 

• Mail: U.S. Department of 

Transportation, Docket Operations, 

M–30, West Building Ground Floor, 

Room W12–140, 1200 New Jersey 

Avenue SE., Washington, DC 20590. 

• Hand Delivery: Deliver to Mail 

address above between 9 a.m. and 

5 p.m., Monday through Friday, except 

Federal holidays. 

For service information identified in 

this NPRM, contact Boeing Commercial 

Airplanes, Attention: Contractual & Data 

Services (C&DS), 2600 Westminster 

Blvd., MC 110–SK57, Seal Beach, CA 

90740–5600; telephone 562–797–1717; 

Internet https://

www.myboeingfleet.com. You may view 

this referenced service information at 

the FAA, Transport Standards Branch, 

1601 Lind Avenue SW., Renton, WA. 

For information on the availability of 

this material at the FAA, call 425–227– 

1221. It is also available on the Internet 

at http://www.regulations.gov by 

searching for and locating Docket No. 

FAA–2017–0901. 

Examining the AD Docket 

You may examine the AD docket on 

the Internet at http://


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