Mushroom Promotion, Research, and Consumer Information Order; Reallocation of Council Membership

Published date11 February 2019
Citation84 FR 3114
Record Number2019-01727
SectionProposed rules
CourtAgricultural Marketing Service
Federal Register, Volume 84 Issue 28 (Monday, February 11, 2019)
[Federal Register Volume 84, Number 28 (Monday, February 11, 2019)]
                [Proposed Rules]
                [Pages 3114-3116]
                From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
                [FR Doc No: 2019-01727]
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                Proposed Rules
                 Federal Register
                ________________________________________________________________________
                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.
                ========================================================================
                Federal Register / Vol. 84, No. 28 / Monday, February 11, 2019 /
                Proposed Rules
                [[Page 3114]]
                DEPARTMENT OF AGRICULTURE
                Agricultural Marketing Service
                7 CFR Part 1209
                [Document Number AMS-SC-18-0009]
                Mushroom Promotion, Research, and Consumer Information Order;
                Reallocation of Council Membership
                AGENCY: Agricultural Marketing Service, USDA.
                ACTION: Proposed rule.
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                SUMMARY: This proposal invites comments on reallocating the membership
                of the Mushroom Council (Council) under the Agricultural Marketing
                Service's (AMS) regulations regarding a national research and promotion
                program for mushrooms. This action was recommended by the Council after
                a review of the geographic distribution of the volume of mushroom
                production throughout the United States and the volume of imports. The
                number of Council members would be revised in two of the four
                geographic regions under the program. This action is necessary to
                provide for equitable representation of producers and importers on the
                Council.
                DATES: Comments must be received by March 13, 2019.
                ADDRESSES: Interested persons are invited to submit written comments
                concerning this proposal. Comments may be submitted on the internet at:
                http://www.regulations.gov or to the Promotion and Economics Division,
                Specialty Crops Program, AMS, USDA, 1400 Independence Avenue SW, Room
                1406-S, Stop 0244, Washington, DC 20250-0244; facsimile: (202) 205-
                2800. All comments should reference the document number and the date
                and page number of this issue of the Federal Register and will be made
                available for public inspection, including name and address, if
                provided, in the above office during regular business hours or it can
                be viewed at http://www.regulations.gov.
                FOR FURTHER INFORMATION CONTACT: Stacy Jones King, Marketing
                Specialist, Promotion and Economics Division, Specialty Crops Program,
                AMS, USDA, 1400 Independence Avenue SW, Room 1406-S, Stop 0244,
                Washington, DC 20250-0244; telephone: (202) 720-9915; facsimile (202)
                205-2800; or electronic mail: Stacy.JonesKing@ams.usda.gov.
                SUPPLEMENTARY INFORMATION: This proposal affecting 7 CFR part 1209 is
                authorized under the Mushroom Promotion, Research, and Consumer
                Information Act of 1990 (Act) (7 U.S.C. 6101-6112).
                Executive Orders 12866, 13563, and 13771
                 Executive Orders 12866 and 13563 direct agencies to assess all
                costs and benefits of available regulatory alternatives and, if
                regulation is necessary, to select regulatory approaches that maximize
                net benefits (including potential economic, environmental, public
                health and safety effects, distributive impacts and equity). Executive
                Order 13563 emphasizes the importance of quantifying both costs and
                benefits, reducing costs, harmonizing rules and promoting flexibility.
                This action falls within a category of regulatory actions that the
                Office of Management and Budget (OMB) exempted from Executive Order
                12866 review. 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).
                Executive Order 13175
                 This action has been reviewed in accordance with the requirements
                of Executive Order 13175, Consultation and Coordination with Indian
                Tribal Governments. The review reveals that this regulation would not
                have substantial and direct effects on Tribal governments and would not
                have significant Tribal implications.
                Executive Order 12988
                 This proposal has been reviewed under Executive Order 12988, Civil
                Justice Reform. It is not intended to have retroactive effect. Section
                1930 of the Act (7 U.S.C. 6109) provides that it shall not affect or
                preempt any other Federal or State law authorizing promotion or
                research relating to mushrooms.
                 Under section 1927 of the Act (7 U.S.C. 6106), a person subject to
                an order issued under the Act may file a written petition with USDA
                stating that an order, any provision of the order, or any obligation
                imposed in connection with the order, is not established in accordance
                with the law, and request a modification of the order or an exemption
                from the order. Any petition filed challenging an order, any provision
                of an order, or any obligation imposed in connection with the order,
                shall be filed within two years after the effective date of an order,
                provision, or obligation subject to challenge in the petition. The
                petitioner will have the opportunity for a hearing on the petition.
                Thereafter, USDA will issue a ruling on the petition. The Act provides
                that the district court of the United States for any district in which
                the petitioner resides or conducts business shall have the jurisdiction
                to review a final ruling on the petition, if the petitioner files a
                complaint for that purpose not later than 20 days after the date of the
                entry of USDA's final ruling.
                Background
                 This proposal invites comments on reallocating the membership of
                the Council established under the Mushroom Promotion, Research, and
                Consumer Information Order (Order). The Order is administered by the
                Council with oversight by USDA. This action was recommended by the
                Council after a review of the geographic distribution of the volume of
                mushroom production throughout the United States and the volume of
                imports. The number of Council members would be revised in two of the
                four regions under the program. This action is necessary to provide for
                equitable representation of producers and importers on the Council.
                 Section 1209.30(a) of the Order specifies that the Council shall
                consist of not less than four or more than nine members who are
                mushroom producers and importers. Pursuant to Sec. 1209.30(b), for
                purposes of nominating and appointing producers to the Council, the
                United States is divided into three geographic regions and the number
                of Council members from each region are currently as follows: (1)
                Region 1: All
                [[Page 3115]]
                other States including the District of Columbia and the Commonwealth of
                Puerto Rico except for Pennsylvania and California--two members; (2)
                Region 2: Pennsylvania--four members; and (3) Region 3: California--two
                members. Pursuant to Sec. 1209.30(c), importers are represented by a
                single, separate region, referred to as Region 4, when imports, on
                average, equal or exceed 50,000,000 pounds of mushrooms annually.
                 Section 1209.30(d) prescribes that, at least every five years, and
                not more than every three years, the Council must review changes in the
                geographic distribution of mushroom production volume throughout the
                United States and import volume, using the average annual mushroom
                production and imports over the preceding four years. The Council must
                recommend to the Secretary reapportionment of the regions and/or
                modification of the number of members from such regions as necessary to
                best reflect the geographic distribution of mushroom production volume
                in the United States and representation of imports, if applicable.
                 Section 1209.30(e) prescribes a procedure to be used to determine
                the number of members for each region to serve on the Council, subject
                to the nine-member maximum limitation. Each region that produces, on
                average, at least 50,000,000 pounds of mushrooms annually is entitled
                to one representative on the Council. Importers are represented by a
                single, separate region, which is entitled to one representative, if
                the region imports, on average, at least 50,000,000 pounds of mushrooms
                annually. If the annual production of a region is greater than
                110,000,000 pounds, but less than or equal to 180,000,000 pounds, the
                region must be represented by one additional member. If the annual
                production of a region is greater than 180,000,000 pounds, but less
                than or equal to 260,000,000 pounds, the region must be represented by
                two additional members. If the annual production of a region is greater
                than 260,000,000 pounds, the region must be represented by three
                additional members. Finally, if in the aggregate, regions are entitled
                to levels of representation that would exceed the nine-member limit on
                the Council, the seat or seats assigned shall be assigned to that
                region or those regions with greater on-average production or import
                volume than the other regions otherwise eligible at that increment
                level.\1\
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                 \1\ On average means a rolling average of production or imports
                during the last two fiscal years, or such other period as may be
                determined by the Secretary (7 CFR part 1209.2).
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                 The Council met in February 2018 and reviewed the geographic
                distribution of mushroom production volume throughout the United States
                and import volume to assess whether reapportionment of the current
                regions or modification of the number of members from such regions, or
                both were warranted. Table 1 below is based on Council assessment data
                for the preceding four years (2014 through 2017).
                 Table 1--Analysis of Council Representation Based on Assessment Data
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                 Current In millions
                 Region council -------------------------------------------------------------------------------- New council
                 representation 2014 pounds 2015 pounds 2016 pounds 2017 pounds 4-year average representation
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                1 (All other States).................... 2 202.7 205 203.8 196 201.9 3
                2 (PA).................................. 4 480.6 488 477.8 502.6 487.3 4
                3 (CA).................................. 2 109.5 102.3 106.7 91.2 102.4 1
                4 (Imports)............................. 1 98.8 110.1 119.3 132 115.1 1
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                 9 .............. .............. .............. .............. .............. 9
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                 Table 2 below provides a similar analysis based on U.S. production
                data from USDA's National Agricultural Statistics Service (NASS) and
                import data from USDA's Global Agricultural Trade System (GATS).\2\
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                 \2\ NASS United States Department of Agriculture (USDA) (2018)
                Quick Stats. U.S. Department of Agriculture, National Agricultural
                Statistics Service, Washington DC. https://quickstats.nass.usda.gov/.
                 GATS United States Department of Agriculture (USDA) (2018)
                Global Agricultural Trade System. U.S. Department of Agriculture,
                Foreign Agricultural Service, Washington DC. https://apps.fas.usda.gov/gats/.
                 Table 2--Analysis of Council Representation Based on NASS and GATS Data
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                 Current In millions
                 Region council -------------------------------------------------------------------------------- New council
                 representation 2014 pounds 2015 pounds 2016 pounds 2017 pounds 4-year average representation
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                1 (All other States).................... 2 208.8 217.5 221.6 223.9 218.0 3
                2 (PA).................................. 4 571.7 584.0 587.4 577.6 580.2 4
                3 (CA).................................. 2 101.5 105.6 109.9 101.7 104.7 1
                4 (Imports)............................. 1 .............. .............. .............. .............. .............. 1
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                 9 .............. .............. .............. .............. .............. 9
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                Council Recommendation
                 Based on its analysis, the Council unanimously recommended
                increasing the number of members in Region 1 by one and decreasing the
                number of members in Region 3 by one. This action is necessary to
                provide for equitable representation of producers and importers on the
                Council. No changes are necessary to the number of members in Regions 2
                and 4 or to the make-up of any of the regions. Section 1209.230 which
                is currently reserved, would be added accordingly.
                [[Page 3116]]
                Initial Regulatory Flexibility Act Analysis
                 In accordance with the Regulatory Flexibility Act (RFA) (5 U.S.C.
                601-612), AMS is required to examine the impact of the proposed rule on
                small entities. Accordingly, AMS has considered the economic impact of
                this action on such entities.
                 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
                disproportionately burdened. The Small Business Administration (SBA)
                defines, in 13 CFR part 121, small agricultural producers as those
                having annual receipts of no more than $750,000 and small agricultural
                service firms (importers) as those having annual receipts of no more
                than $7.5 million.
                 It is estimated that there are about 120 mushroom producers in the
                United States and about 20 importers eligible to serve on the Council.
                The majority of these producers and importers would be considered small
                entities as defined by the SBA. Persons who produce or import organic
                mushrooms or who produce or import 500,000 pounds or less on average of
                mushrooms annually for the fresh market are exempt from the
                requirements of the Order.
                 This proposal invites comments on reallocating the membership of
                the Council under the Order. The Order is administered by the Council
                with oversight by USDA. This action was recommended by the Council
                after a review of the geographic distribution of the volume of mushroom
                production throughout the United States and the volume of imports. The
                number of Council members would be revised in two of the four regions
                under the program. This action is necessary to provide for equitable
                representation of producers and importers on the Council. Section
                1209.230 which is currently reserved, would be added accordingly.
                Authority for this action is provided in section 1209.30(d) of the
                Order and section 6104 of the Act (7 U.S.C. 6104).
                 Regarding the economic impact of this proposed rule on affected
                entities, revising the number of members in Regions 1 and 3 would
                impose no additional costs on industry members. Eligible producers and
                importers interested in serving on the Council would have to complete a
                background questionnaire. Those requirements are addressed in the
                section below titled Reporting and Recordkeeping Requirements. The
                changes are necessary to provide for the equitable representation of
                producers and importers on the Council.
                 Regarding alternatives, one option to the proposed action would be
                to maintain the status quo and not revise the number of Council members
                representing Regions 1 and 3. However, the Council's analysis of the
                assessment data and NASS and GATS data support the proposed changes.
                USDA concludes that the changes are necessary and appropriate.
                Reporting and Recordkeeping Requirements
                 In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
                Chapter 35), the background form, which represents the information
                collection and recordkeeping requirements that are imposed under the
                program, have been approved previously under OMB number 0581-0093. The
                mushroom Order requires that two nominees be submitted for each vacant
                position. With regard to information collection requirements, producers
                and importers interested in serving on the Council must submit
                background forms (Form AD-755) to USDA to verify their eligibility for
                appointment to the Council. However, serving on the Council is
                voluntary, and the burden of submitting the background form would be
                offset by the benefits of serving on the Council.
                 As with all Federal promotion programs, reports and forms are
                periodically reviewed to reduce information collection requirements and
                duplication by industry and public sector agencies. USDA has not
                identified any relevant Federal rules that duplicate, overlap, or
                conflict with this proposed rule. AMS is committed to complying with
                the E-Government Act, to promote the use of the internet and other
                information technologies to provide increased opportunities for citizen
                access to Government information and services, and for other purposes.
                 Regarding outreach efforts, this action was discussed by the
                Council at its meeting held in February 2018 where the Council
                unanimously made its recommendation. All of the Council's meetings are
                open to the public and interested persons are invited to participate
                and express their views.
                 AMS has performed this initial RFA regarding the impact of this
                proposed action on small entities and invites comments concerning
                potential effects of this action.
                 A 30-day comment period is provided to allow interested persons to
                respond to this proposal. All written comments received in response to
                this proposed rule by the date specified would be considered prior to
                finalizing this action.
                List of Subjects in 7 CFR Part 1209
                 Administrative practice and procedure, Advertising, Consumer
                information, Marketing agreements, Mushroom promotion, Reporting and
                recordkeeping requirements.
                 For the reasons set forth in the preamble, 7 CFR part 1209 is
                proposed to be amended as follows:
                PART 1209--MUSHROOM PROMOTION, RESEARCH AND CONSUMER INFORMATION
                ORDER
                0
                1. The authority citation for 7 CFR part 1209 continues to read as
                follows:
                 Authority: 7 U.S.C. 6101-6112 and 7 U.S.C. 7401.
                0
                2. Section 1209.230 is added to read as follows:
                Sec. 1209.230 Reallocation of Council members.
                 Pursuant to Sec. 1209.30 of the Order, the number of members on
                the Council shall be as follows:
                 (1) Region 1: All other States including the District of Columbia
                and the Commonwealth of Puerto Rico except for Pennsylvania and
                California--3 Members.
                 (2) Region 2: The State of Pennsylvania--4 Members.
                 (3) Region 3: The State of California--1 Member.
                 (4) Region 4: Importers--1 Member.
                 Dated: February 5, 2019.
                Bruce Summers,
                Administrator.
                [FR Doc. 2019-01727 Filed 2-8-19; 8:45 am]
                 BILLING CODE 3410-02-P
                

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