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

44300 

Vol. 74, No. 166 

Friday, August 28, 2009 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 984 

[Doc. No. AMS–FV–09–0020; FV09–984–3 

PR] 

Walnuts Grown in California; Increased 

Assessment Rate and Changes to 

Regulations Governing Reporting and 

Recordkeeping 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Proposed rule. 

SUMMARY: This rule would increase the 

assessment rate established for the 

California Walnut Board (Board) for the 

2009–10 and subsequent marketing 

years from $0.0131 to $0.0177 per 

kernelweight pound of assessable 

walnuts. This rule would also change 

reporting and recordkeeping regulations 

in conformance with amendments made 

on March 3, 2008, to the marketing 

order that regulates the handling of 

walnuts grown in California. The Board 

locally administers the marketing order. 

Assessments upon walnut handlers are 

used by the Board to fund reasonable 

and necessary expenses of the program. 

The marketing year begins September 1 

and ends August 31. The assessment 

rate would remain in effect indefinitely 

unless modified, suspended, or 

terminated. 

DATES: Comments must be received by 

September 28, 2009. 

ADDRESSES: Interested persons are 

invited to submit written comments 

concerning this rule. Comments must be 

sent to the Docket Clerk, Marketing 

Order Administration Branch, Fruit and 

Vegetable Programs, AMS, USDA, 1400 

Independence Avenue, SW., STOP 

0237, Washington, DC 20250–0237; Fax: 

(202) 720–8938; or Internet: http:// 

www.regulations.gov. Comments should 

reference the document number and the 

date and page number of this issue of 

the Federal Register and will be 

available for public inspection in the 

Office of the Docket Clerk during regular 

business hours, or can be viewed at: 

http://www.regulations.gov. All 

comments submitted in response to this 

rule will be included in the record and 

will be made available to the public. 

Please be advised that the identity of the 

individuals or entities submitting the 

comments will be made public on the 

Internet at the address provided above. 

FOR FURTHER INFORMATION CONTACT: 

Debbie Wray, Marketing Specialist, or 

Kurt J. Kimmel, Regional Manager, 

California Marketing Field Office, 

Marketing Order Administration 

Branch, Fruit and Vegetable Programs, 

AMS, USDA; Telephone: (559) 487– 

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

Debbie.Wray@ams.usda.gov or 

Kurt.Kimmel@ams.usda.gov. 

Small businesses may request 

information on complying with this 

regulation by contacting Jay Guerber, 

Marketing Order Administration 

Branch, Fruit and Vegetable Programs, 

AMS, USDA, 1400 Independence 

Avenue, SW., STOP 0237, Washington, 

DC 20250–0237; Telephone: (202) 720– 

2491, Fax: (202) 720–8938, or E-mail: 

Jay.Guerber@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: This rule 

is issued under Marketing Order No. 

984, as amended (7 CFR part 984), 

regulating the handling of walnuts 

grown in California, hereinafter referred 

to as the ‘‘order.’’ The order is effective 

under the Agricultural Marketing 

Agreement Act of 1937, as amended (7 

U.S.C. 601–674), hereinafter referred to 

as the ‘‘Act.’’ 

The Department of Agriculture 

(USDA) is issuing this rule in 

conformance with Executive Order 

12866. 

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. Under the marketing order now 

in effect, California walnut handlers are 

subject to assessments. Funds to 

administer the order are derived from 

such assessments. It is intended that the 

assessment rate as proposed herein 

would be applicable to all assessable 

walnuts beginning on September 1, 

2009, and continue until amended, 

suspended, or terminated. This rule will 

not preempt any State or local laws, 

regulations, or policies, unless they 

present an irreconcilable conflict with 

this rule. 

The Act provides that administrative 

proceedings must be exhausted before 

parties may file suit in court. Under 

section 608c(15)(A) of the Act, any 

handler subject to an order may file 

with USDA a petition stating that the 

order, any provision of the order, or any 

obligation imposed in connection with 

the order is not in accordance with law 

and request a modification of the order 

or to be exempted therefrom. Such 

handler is afforded the opportunity for 

a hearing on the petition. After the 

hearing, USDA would rule on the 

petition. The Act provides that the 

district court of the United States in any 

district in which the handler is an 

inhabitant, or has his or her principal 

place of business, has jurisdiction to 

review USDA’s ruling on the petition, 

provided an action is filed not later than 

20 days after the date of the entry of the 

ruling. 

This rule would increase the 

assessment rate established for the 

Board for the 2009–10 and subsequent 

marketing years from $0.0131 to $0.0177 

per kernelweight pound of assessable 

walnuts. It would also make conforming 

changes to reporting and recordkeeping 

regulations, which are needed to reflect 

recent marketing order amendments. 

The California walnut marketing 

order provides authority for the Board, 

with the approval of USDA, to formulate 

an annual budget of expenses and 

collect assessments from handlers to 

administer the program. The members 

of the Board are growers and handlers 

of California walnuts. They are familiar 

with the Board’s needs and with the 

costs for goods and services in their 

local area and are thus in a position to 

formulate an appropriate budget and 

assessment rate. The assessment rate is 

formulated and discussed in a public 

meeting. Thus, all directly affected 

persons have an opportunity to 

participate and provide input. 

For the 2008–09 and subsequent 

marketing years, the Board 

recommended, and USDA approved, an 

assessment rate of $0.0131 per 

kernelweight pound of assessable 

walnuts that would continue in effect 

from year to year unless modified, 

suspended, or terminated by USDA 

upon recommendation and information 

submitted by the Board or other 

information available to USDA. 

The Board met on May 18, 2009, and 

unanimously recommended 2009–10 

expenditures of $5,894,100 and an 

assessment rate of $0.0177 per 


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kernelweight pound of assessable 

walnuts. In comparison, last year’s 

budgeted expenditures were $3,809,000. 

The assessment rate of $0.0177 is 

$0.0046 per pound higher than the rate 

currently in effect. The increased 

assessment rate is necessary to cover 

increased expenses for domestic market 

promotion, research activities, and 

administrative expenses. The higher 

assessment rate should generate 

sufficient income to cover anticipated 

2009–10 expenses. 

The following table compares major 

budget expenditures recommended by 

the Board for the 2008–09 and 2009–10 

marketing years: 

Budget expense categories 2008–09 2009–10 

Employee Expenses ................................................................................................................................................ $410,500 $535,000 

Travel/Board Expenses ........................................................................................................................................... 100,000 120,000 

Office Costs/Annual Audit ........................................................................................................................................ 142,500 164,750 

Program Expenses Including Research: 

Controlled Purchases ....................................................................................................................................... 5,000 5,000 

Crop Estimate ................................................................................................................................................... 110,000 120,000 

Production Research * ...................................................................................................................................... 805,000 805,000 

Contingency-Research Issues .......................................................................................................................... 30,000 100,000 

Domestic Market Development ........................................................................................................................ 2,135,000 4,030,500 

Reserve for Contingency .................................................................................................................................. 71,000 13,850 

* Includes Research Director’s compensation. 

The assessment rate recommended by 

the Board was derived by dividing 

anticipated expenses by expected 

shipments of California walnuts 

certified as merchantable. Merchantable 

shipments for the year are estimated at 

333,000,000 kernelweight pounds, 

which should provide $5,894,100 in 

assessment income and allow the Board 

to cover its expenses. Unexpended 

funds may be retained in a financial 

reserve, provided that funds in the 

financial reserve do not exceed 

approximately two years’ budgeted 

expenses. If not retained in a financial 

reserve, unexpended funds may be used 

temporarily to defray expenses of the 

subsequent marketing year, but must be 

made available to the handlers from 

whom collected within 5 months after 

the end of the year, according to 

§ 984.69 of the order. 

The estimate for merchantable 

shipments is based on historical data, 

which is an average of the three prior 

years’ production of 370,000 tons 

(inshell). Pursuant to § 984.51(b) of the 

order, this figure was converted to a 

merchantable kernelweight basis using a 

factor of .45 (370,000 tons × 2,000 

pounds per ton × .45). 

The proposed assessment rate would 

continue in effect indefinitely unless 

modified, suspended, or terminated by 

USDA upon recommendation and 

information submitted by the Board or 

other available information. 

Although this assessment rate would 

be in effect for an indefinite period, the 

Board would continue to meet prior to 

or during each marketing year to 

recommend a budget of expenses and 

consider recommendations for 

modification of the assessment rate. The 

dates and times of Board meetings are 

available from the Board or USDA. 

Board meetings are open to the public 

and interested persons may express 

their views at these meetings. USDA 

would evaluate Board recommendations 

and other available information to 

determine whether modification of the 

assessment rate is needed. Further 

rulemaking would be undertaken as 

necessary. The Board’s 2009–10 budget 

and those for subsequent marketing 

years would be reviewed and, as 

appropriate, approved by USDA. 

Recent amendments to the order (73 

FR 11328, March 3, 2008) changed the 

Board’s name to ‘‘California Walnut 

Board’’ (CWB), changed the Board’s 

marketing year from August 1 through 

July 31 to September 1 through August 

31, and replaced the term ‘‘handler 

carryover’’ with the term ‘‘handler 

inventory.’’ To reflect these changes, the 

Board unanimously recommended 

conforming changes to the order’s 

reporting and recordkeeping regulations 

at a meeting on February 27, 2009. 

Section 984.456(a) would be revised 

to specify that beginning on September 

1 of any marketing year, a handler may 

become an agent of the Board to dispose 

of reserve walnuts in that marketing 

year. Section 984.471 would be revised 

by changing the term ‘‘carryover’’ to 

‘‘inventory’’, by requiring handlers to 

report September 1 inventory 

information by September 15, and by 

changing the names of the related 

inventory forms to ‘‘CWB Form No. 4’’ 

and ‘‘CWB Form No. 5.’’ Section 

984.476 would be revised to require that 

handlers file reports of walnut import 

receipts with the Board by December 5 

for receipts between September 1 and 

November 30, by March 5 for receipts 

between December 1 and the end of 

February, by June 5 for receipts between 

March 1 and May 31, and by September 

5 for receipts between June 1 and 

August 31; and to change the name of 

the reporting form to ‘‘CWB Form No. 

7.’’ Section 984.480(d) would be revised 

to specify that inventories of all walnut 

quantities held on September 1 must be 

reported to the Board. The acronym 

‘‘WMB’’ would be replaced with ‘‘CWB’’ 

in form names described in the 

following sections not previously listed 

above: §§ 984.456(b), 984.464(c), 

984.472(a), and 984.472(b). Finally, in 

order to update the regulations, genderspecific language would be changed in 

§§ 984.456(b) and 984.472(a) to replace 

‘‘he’’ and ‘‘his’’ with ‘‘he/she’’ and ‘‘his/ 

her.’’ 

Initial Regulatory Flexibility Analysis 

Pursuant to requirements set forth in 

the Regulatory Flexibility Act (RFA) 

(5 U.S.C. 601–612), the Agricultural 

Marketing Service (AMS) has 

considered the economic impact of this 

action on small entities. Accordingly, 

AMS has prepared this initial regulatory 

flexibility analysis. 

The purpose of the RFA is to fit 

regulatory actions to the scale of 

business subject to such actions in order 

that small businesses will not be unduly 

or disproportionately burdened. 

Marketing orders issued pursuant to the 

Act, and the rules issued thereunder, are 

unique in that they are brought about 

through group action of essentially 

small entities acting on their own 

behalf. 

There are currently 58 handlers of 

California walnuts subject to regulation 

under the marketing order, and there are 

approximately 4,500 growers in the 

production area. Small agricultural 

service firms are defined by the Small 

Business Administration (SBA) (13 CFR 

121.201) as those having annual receipts 


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of less than $7,000,000, and small 

agricultural growers are defined as those 

having annual receipts of less than 

$750,000. 

USDA’s National Agricultural 

Statistics Service (NASS) reports that 

California walnuts were harvested from 

a total of 218,000 bearing acres during 

2007–08. The average yield for the 

2007–08 crop was 1.50 tons per acre, 

which is slightly lower than the 1.53 

tons per acre average for the previous 

five years. NASS reported the value of 

the 2007–08 crop at $2,290 per ton, 

which is considerably higher than the 

previous five-year average of $1,384 per 

ton. 

At the time of the 2007 Census of 

Agriculture, which is the most recent 

information available, approximately 89 

percent of California’s walnut farms 

were smaller than 100 acres. Fifty-four 

percent were between 1 and 15 acres. A 

100-acre farm with an average yield of 

1.50 tons per acre would have been 

expected to produce about 150 tons of 

walnuts during 2007–08. At $2,290 per 

ton, that farm’s production would have 

had an approximate value of $344,000. 

Assuming that the majority of 

California’s walnut farms are still 

smaller than 100 acres, it could be 

concluded that the majority of the 

growers had receipts of less than 

$344,000 in 2007–08. This is well below 

the SBA threshold of $750,000; thus, the 

majority of California’s walnut growers 

would be considered small growers 

according to SBA’s definition. 

According to information supplied by 

the industry, approximately two-thirds 

of California’s walnut handlers shipped 

merchantable walnuts valued under 

$7,000,000 during the 2007–08 

marketing year and would therefore be 

considered small handlers according to 

the SBA definition. 

This rule would increase the 

assessment rate established for the 

Board and collected from handlers for 

the 2009–10 and subsequent marketing 

years from $0.0131 to $0.0177 per 

kernelweight pound of assessable 

walnuts. The Board unanimously 

recommended 2009–10 expenditures of 

$5,894,100 and an assessment rate of 

$0.0177 per kernelweight pound. The 

proposed assessment rate of $0.0177 is 

$0.0046 higher than the 2008–09 rate. 

The quantity of assessable walnuts for 

the 2009–10 marketing year is estimated 

at 370,000 tons. Thus, the $0.0177 rate 

should provide $5,894,100 in 

assessment income and be adequate to 

meet this year’s expenses. The increased 

assessment rate is primarily due to 

increased budget expenditures. 

The following table compares major 

budget expenditures recommended by 

the Board for the 2008–09 and 2009–10 

marketing years: 

Budget expense categories 2008–09 2009–10 

Employee Expenses ................................................................................................................................................ $410,500 $535,000 

Travel/Board Expenses ........................................................................................................................................... 100,000 120,000 

Office Costs/Annual Audit ........................................................................................................................................ 142,500 164,750 

Program Expenses Including Research: 

Controlled Purchases ....................................................................................................................................... 5,000 5,000 

Crop Estimate ................................................................................................................................................... 110,000 120,000 

Production Research * ...................................................................................................................................... 805,000 805,000 

Contingency-Research Issues .......................................................................................................................... 30,000 100,000 

Domestic Market Development ........................................................................................................................ 2,135,000 4,030,500 

Reserve for Contingency .................................................................................................................................. 71,000 13,850 

* Includes Research Director’s compensation. 

The Board reviewed and unanimously 

recommended 2009–10 expenditures of 

$5,894,100. Prior to arriving at this 

budget, the Board considered alternative 

expenditure levels but ultimately 

decided that the recommended levels 

were reasonable to properly administer 

the order. The assessment rate 

recommended by the Board was derived 

by dividing anticipated expenses by 

expected shipments of California 

walnuts certified as merchantable. 

Merchantable shipments for the year are 

estimated at 333,000,000 kernelweight 

pounds, which should provide 

$5,894,100 in assessment income and 

allow the Board to cover its expenses. 

Unexpended funds may be retained in 

a financial reserve, provided that funds 

in the financial reserve do not exceed 

approximately two years’ budgeted 

expenses. If not retained in a financial 

reserve, unexpended funds may be used 

temporarily to defray expenses of the 

subsequent marketing year, but must be 

made available to the handlers from 

whom collected within 5 months after 

the end of the year, according to 

§ 984.69 of the order. 

According to NASS, the season 

average grower prices for the years 2006 

and 2007 were $1,630 and $2,290 per 

ton, respectively. Although no official 

NASS data is yet available regarding the 

2008 average grower price, the 2006 and 

2007 prices provide a range within 

which the 2008–09 season average price 

could fall. Dividing these average 

grower prices by 2,000 pounds per ton 

provides an inshell price per pound 

range of $0.815 to $1.15. Dividing these 

inshell prices per pound by the 0.45 

conversion factor (inshell to 

kernelweight) established in the order 

yields a 2008–09 price range estimate of 

$1.81 to $2.56 per kernelweight pound 

of assessable walnuts. 

To calculate the percentage of grower 

revenue represented by the assessment 

rate, the assessment rate of $0.0177 per 

kernelweight pound is divided by the 

low and high estimates of the price 

range. The estimated assessment 

revenue for the 2009–10 marketing year 

as a percentage of total grower revenue 

would thus likely range between 0.691 

and 0.978 percent. 

As a result of amendments to the 

order on March 3, 2008 (73 FR 11328), 

the Board unanimously recommended 

conforming changes to the order’s 

reporting and recordkeeping regulations 

at its meeting on February 27, 2009. 

These conforming changes reflect 

amendments to the marketing year, 

terminology, and Board name. The 

conforming changes include the date 

when a handler may become an agent of 

the Board to dispose of reserve walnuts. 

Conforming changes would also change 

the term ‘‘carryover’’ to ‘‘inventory’’ and 

modify the first of three dates in a 

marketing year when handlers are 

required to report their inventory to the 

Board. Further conforming changes 

include the dates that handlers must 

report to the Board their receipts of 

walnuts from outside of the United 

States and for what periods. Another 

conforming change would modify the 

first of three dates in a marketing year 


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wherein handlers must indicate in their 

books and records the quantity of 

walnuts they held. Finally, there would 

be conforming changes to replace the 

Board name acronym ‘‘WMB’’ with 

‘‘CWB’’ in form numbers. In addition to 

these conforming changes, genderspecific language would also be changed 

from ‘‘he’’ and ‘‘his’’ to ‘‘he/she’’ and 

‘‘his/her’’. There are no viable 

alternatives to these proposed 

conforming changes. 

This action would increase the 

assessment obligation imposed on 

handlers. While assessments impose 

some additional costs on handlers, the 

costs are minimal and uniform on all 

handlers. Some of the additional costs 

may be passed on to growers. However, 

these costs would be offset by the 

benefits derived by the operation of the 

marketing order. In addition, the 

Board’s meetings were widely 

publicized throughout the California 

walnut industry, and all interested 

persons were invited to attend the 

meetings and participate in Board 

deliberations on all issues. Like all 

Board meetings, the May 18, 2009, and 

February 27, 2009, meetings were public 

meetings, and all entities, both large and 

small, were able to express views on 

this issue. Finally, interested persons 

are invited to submit comments on this 

proposed rule, including the regulatory 

and informational impacts of this action 

on small businesses. 

This proposed rule would require 

minor conforming changes to several 

Board forms currently approved by the 

Office of Management and Budget 

(OMB), under OMB No. 0581–0178, 

Vegetable and Specialty Crops. These 

changes will not affect the burden 

currently approved under that 

collection. The revised forms are being 

submitted to OMB through a change of 

worksheet. This action would impose 

no additional reporting or 

recordkeeping requirements on either 

small or large California walnut 

handlers. As with all Federal marketing 

order programs, reports and forms are 

periodically reviewed to reduce 

information requirements and 

duplication by industry and public 

sector agencies. 

AMS is committed to complying with 

the E–Government Act, to promote the 

use of the Internet and other 

information technologies to provide 

increased opportunities for citizen 

access to Government information and 

services, and for other purposes. 

USDA has not identified any relevant 

Federal rules that duplicate, overlap, or 

conflict with this rule. 

A small business guide on complying 

with fruit, vegetable, and specialty crop 

marketing agreements and orders may 

be viewed at: http://www.ams.usda.gov/

AMSv1.0/ams.fetchTemplateData.do?

template=TemplateN&

page=MarketingOrdersSmallBusiness

Guide. Any questions about the 

compliance guide should be sent to Jay 

Guerber at the previously mentioned 

address in the FOR FURTHER INFORMATION

CONTACT section. 

A 30-day comment period is provided 

to allow interested persons to respond 

to this proposed rule. Thirty days is 

deemed appropriate because: (1) The 

2009–10 marketing year begins on 

September 1, 2009, and the marketing 

order requires that the rate of 

assessment for each marketing year 

apply to all assessable walnuts handled 

during the year; (2) the Board needs to 

have sufficient funds to pay its 

expenses, which are incurred on a 

continuous basis; (3) handlers are aware 

of this action, which was unanimously 

recommended by the Board at a public 

meeting and is similar to other 

assessment rate actions issued in past 

years; and (4) conforming changes made 

to the reporting and recordkeeping 

regulations should be implemented as 

quickly as possible to assure program 

continuity. 

List of Subjects in 7 CFR Part 984 

Marketing agreements, Nuts, 

Reporting and recordkeeping 

requirements, Walnuts. 

For the reasons set forth in the 

preamble, 7 CFR part 984 is proposed to 

be amended as follows: 

PART 984—WALNUTS GROWN IN 

CALIFORNIA 

1. The authority citation for 7 CFR 

part 984 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

2. Section 984.347 is revised to read 

as follows: 

§ 984.347 Assessment rate. 

On and after September 1, 2009, an 

assessment rate of $0.0177 per 

kernelweight pound is established for 

California merchantable walnuts. 

3. Amend § 984.456 by revising 

paragraphs (a) and (b) to read as follows: 

§ 984.456 Disposition of reserve walnuts 

and walnuts used for reserve disposition 

credit. 

(a) Beginning September 1 of any 

marketing year, a handler may become 

an agent of the Board to dispose of 

reserve walnuts of such marketing year. 

The agency shall be established upon 

execution of an ‘‘Agency Agreement for 

Reserve Walnuts’’ setting forth the terms 

and conditions specified by the Board 

for the sale of reserve walnuts in 

authorized outlets. 

(b) Any handler who desires to 

transfer disposition credit in excess of 

his/her reserve obligation to another 

handler shall submit a request to the 

Board for such transfer on CWB Form 

No. 17 signed by both handlers and the 

Board shall credit such transfer. 

* * * * * 

4. Amend § 984.464 by revising 

paragraph (c) to read as follows: 

§ 984.464 Disposition of substandard 

walnuts. 

* * * * * 

(c) Each handler who disposes of 

substandard walnuts to an approved 

crusher, livestock feed manufacturer or 

livestock feeder shall upon shipment 

report to the Board on CWB Form No. 

20, the quantities disposed of or 

shipped. 

5. Section 984.471 is revised to read 

as follows: 

§ 984.471 Reports of handler inventory. 

Reports of handler inventory as of 

September 1, January 1, and April 1 of 

each marketing year shall be submitted 

to the Board on CWB Form No. 4 for 

inshell walnuts and on CWB Form No. 

5 for shelled walnuts, on or before 

September 15, January 15, and April 15 

respectively, of that marketing year. 

6. Section 984.472 is revised to read 

as follows: 

§ 984.472 Reports of merchantable 

walnuts shipped. 

(a) Reports of merchantable walnuts 

shipped during a month shall be 

submitted to the Board on CWB Form 

No. 6 not later than the 5th day of the 

following month. Such reports shall 

include all shipments during the 

preceding month and shall show for 

inshell and shelled walnuts the quantity 

shipped, whether they were shipped 

into domestic or export channels, and 

for exports, the quantity by country of 

destination. If a handler makes no 

shipments during any month he/she 

shall submit a report marked ‘‘None.’’ If 

a handler has completed his/her 

shipments for the season, he/she shall 

mark the report ‘‘Completed,’’ and he/ 

she shall not be required to submit any 

additional CWB Form No. 6 reports 

during the remainder of that marketing 

year. 

(b) Reports of walnuts purchased 

directly from growers by handlers who 

are manufacturers or retailers shall be 

submitted to the Board on CWB Form 

No. 6, not later than the 5th day of the 

month following the month in which 

the walnuts were purchased. Such 

reports shall show the quantity of 


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44304 Federal Register / Vol. 74, No. 166 / Friday, August 28, 2009 / Proposed Rules 

walnuts purchased and the quantity 

inspected and certified as merchantable 

walnuts. 

7. Section 984.476 is revised to read 

as follows: 

§ 984.476 Report of walnut receipts from 

outside of the United States. 

Each handler who receives walnuts 

from outside of the United States shall 

file with the Board, on CWB Form No. 

7, a report of the receipt of such 

walnuts. The report shall be filed as 

follows: On or before December 5 for 

such walnuts received during the period 

September 1 to November 30; on or 

before March 5 for such walnuts 

received during the period December 1 

to February 28 (February 29 in a leap 

year); on or before June 5 for such 

walnuts received during the period 

March 1 to May 31; and on or before 

September 5 for such walnuts received 

during the period June 1 to August 31. 

The report shall include the quantity of 

such walnuts received, the country of 

origin for such walnuts, and whether 

such walnuts are inshell or shelled. 

With each report, the handler shall 

submit a copy of a product tag issued by 

a DFA of California inspector for each 

receipt of such walnuts that includes 

the name of the person from whom such 

walnuts were received, the date such 

walnuts were received by the handler, 

the number of containers and the U.S. 

Custom’s Service entry number, 

whether such walnuts are inshell or 

shelled, the quantity of such walnuts 

received, the country of origin for such 

walnuts, the name of the DFA of 

California inspector who issued the 

product tag, and the date such tag was 

issued. 

8. Amend § 984.480 by revising 

paragraph (d) to read as follows: 

§ 984.480 Books and other records. 

* * * * * 

(d) The quantities held on September 

1, January 1, and April 1 of each 

marketing year. 

Dated: August 24, 2009. 

Rayne Pegg, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. E9–20770 Filed 8–27–09; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 987 

[Docket No. AMS–FV–09–0045; FV09–987– 

2 PR] 

Domestic Dates Produced or Packed in 

Riverside County, CA; Increased 

Assessment Rate 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Proposed rule. 

SUMMARY: This rule would increase the 

assessment rate established for the 

California Date Administrative 

Committee (Committee) for the 2009–10 

and subsequent crop years from $0.60 to 

$0.75 per hundredweight of dates 

handled. The Committee locally 

administers the marketing order which 

regulates the handling of dates grown or 

packed in Riverside County, California. 

Assessments upon date handlers are 

used by the Committee to fund 

reasonable and necessary expenses of 

the program. The crop year begins 

October 1 and ends September 30. The 

assessment rate would remain in effect 

indefinitely unless modified, 

suspended, or terminated. 

DATES: Comments must be received by 

September 28, 2009. 

ADDRESSES: Interested persons are 

invited to submit written comments 

concerning this rule. Comments must be 

sent to the Docket Clerk, Marketing 

Order Administration Branch, Fruit and 

Vegetable Programs, AMS, USDA, 1400 

Independence Avenue, SW., STOP 

0237, Washington, DC 20250–0237; Fax: 

(202) 720–8938; or Internet: http:// 

www.regulations.gov. Comments should 

reference the docket number and the 

date and page number of this issue of 

the Federal Register and will be 

available for public inspection in the 

Office of the Docket Clerk during regular 

business hours, or can be viewed at: 

http://www.regulations.gov. All 

comments submitted in response to this 

rule will be included in the record and 

will be made available to the public. 

Please be advised that the identity of the 

individuals or entities submitting the 

comments will be made public on the 

Internet at the address provided above. 

FOR FURTHER INFORMATION CONTACT: 

Terry Vawter, Senior Marketing 

Specialist, or Kurt J. Kimmel, Regional 

Manager, California Marketing Field 

Office, Marketing Order Administration 

Branch, Fruit and Vegetable Programs, 

AMS, USDA; Telephone: (559) 487– 

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

Terry.Vawter@ams.usda.gov or 

Kurt.Kimmel@ams.usda.gov. 

Small businesses may request 

information on complying with this 

regulation by contacting Jay Guerber, 

Marketing Order Administration 

Branch, Fruit and Vegetable Programs, 

AMS, USDA, 1400 Independence 

Avenue, SW., STOP 0237, Washington, 

DC 20250–0237; Telephone: (202) 720– 

2491, Fax: (202) 720–8938, or E-mail: 

Jay.Guerber@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: This rule 

is issued under Marketing Order No. 

987, as amended (7 CFR part 987), 

regulating the handling of dates grown 

or packed in Riverside County, 

California, hereinafter referred to as the 

‘‘order.’’ The order is effective under the 

Agricultural Marketing Agreement Act 

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

hereinafter referred to as the ‘‘Act.’’ 

The Department of Agriculture 

(USDA) is issuing this rule in 

conformance with Executive Order 

12866. 

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. Under the marketing order now 

in effect, California date handlers are 

subject to assessments. Funds to 

administer the order are derived from 

such assessments. It is intended that the 

assessment rate as proposed herein 

would be applicable to all assessable 

dates beginning October 1, 2009, and 

continue until amended, suspended, or 

terminated. This rule will not preempt 

any State or local laws, regulations, or 

policies, unless they present an 

irreconcilable conflict with this rule. 

The Act provides that administrative 

proceedings must be exhausted before 

parties may file suit in court. Under 

section 608c(15)(A) of the Act, any 

handler subject to an order may file 

with USDA a petition stating that the 

order, any provision of the order, or any 

obligation imposed in connection with 

the order is not in accordance with law 

and request a modification of the order 

or to be exempted therefrom. Such 

handler is afforded the opportunity for 

a hearing on the petition. After the 

hearing, USDA would rule on the 

petition. The Act provides that the 

district court of the United States in any 

district in which the handler is an 

inhabitant, or has his or her principal 

place of business, has jurisdiction to 

review USDA’s ruling on the petition, 

provided an action is filed not later than 

20 days after the date of the entry of the 

ruling. 

This rule would increase the 

assessment rate established for the 

Committee for the 2009–10 and 


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