51982 Federal Register / Vol. 71, No. 170 / Friday, September 1, 2006 / Rules and Regulations 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Parts 916 and 917 

[Docket No. FV06–916/917–2 FR] 

Nectarines and Peaches Grown in 

California; Increased Assessment 

Rates 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: This rule increases the 

assessment rates established for the 

Nectarine Administrative Committee 

and the Peach Commodity Committee 

(committees) for the 2006–07 and 

subsequent fiscal periods from $0.20 to 

$0.21 per 25-pound container or 

container equivalent of nectarines and 

peaches handled. The committees 

locally administer the marketing orders 

that regulate the handling of nectarines 

and peaches grown in California. 

Assessments upon nectarine and peach 

handlers are used by the committees to 

fund reasonable and necessary expenses 

of the programs. The fiscal period runs 

from March 1 through the last day of 

February. The assessment rates will 

remain in effect indefinitely unless 

modified, suspended, or terminated. 

EFFECTIVE DATE: September 5, 2006. 

FOR FURTHER INFORMATION CONTACT: 

Laurel May, Marketing Specialist, or 

Kurt 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: 

Laurel.May@usda.gov or 

Kurt.Kimmel@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@usda.gov. 

SUPPLEMENTARY INFORMATION: This rule 

is issued under Marketing Order Nos. 

916 and 917, both as amended (7 CFR 

parts 916 and 917), regulating the 

handling of nectarines and peaches 

grown in California, respectively, 

hereinafter referred to as the ‘‘orders.’’

The marketing orders are 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 orders 

now in effect, California nectarine and 

peach handlers are subject to 

assessments. Funds to administer the 

orders are derived from such 

assessments. It is intended that the 

assessment rates as issued herein will be 

applicable to all assessable nectarines 

and peaches beginning on March 1, 

2006, 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 increases the assessment 

rate established for the Nectarine 

Administrative Committee (NAC) and 

the Peach Commodity Committee (PCC) 

for the 2006–07 and subsequent fiscal 

periods from $0.20 to $0.21 per 25- 

pound container or container equivalent 

of nectarines and peaches handled. 

The California nectarine and peach 

marketing orders provide authority for 

the committees, with the approval of 

USDA, to formulate annual budgets of 

expenses and collect assessments from 

handlers to administer the programs. 

The members of the NAC and PCC are 

producers of California nectarines and 

peaches, respectively. They are familiar 

with the committees’ needs, and with 

the costs for goods and services in their 

local area and are, therefore, in a 

position to formulate appropriate 

budgets and assessment rates. The 

assessment rates are formulated and 

discussed in public meetings. Thus, all 

directly affected persons have an 

opportunity to participate and provide 

input. 

NAC Assessment and Expenses 

For the 2005–06 fiscal period, the 

NAC recommended, and USDA 

approved, an assessment rate of $0.20 

per 25-pound container or container 

equivalent of nectarines that would 

continue in effect from fiscal period to 

fiscal period unless modified, 

suspended, or terminated by USDA 

upon recommendation and information 

submitted by the committee or other 

information available to USDA. 

The NAC met on April 27, 2006, and 

unanimously recommended 2006–07 

expenditures of $4,473,764 and an 

assessment rate of $0.21 per 25-pound 

container or container equivalent of 

nectarines. In comparison, the budgeted 

expenditures for 2005–06 were 

$4,919,048. The assessment rate of $0.21 

is $0.01 higher than the rate currently in 

effect. 

The rate increase was recommended 

to ensure that, despite lower than 

normal crop production estimates for 

the 2006 crop season, which began on 

March 1, 2006, the NAC could meet its 

2006–07 anticipated expenses and carry 

over a financial reserve that would 

provide adequate funds for promotional 

and other activities at the beginning of 

the 2007 season before assessment 

collections begin. Increasing the 

assessment rate from $0.20 to $0.21 per 

25-pound container or container 

equivalent is expected to provide about 

$178,240 in additional assessment 

revenue, and should allow the NAC to 

start the 2007 season with adequate 

funds. 

Expenditures recommended by the 

NAC for the 2006–07 fiscal period 

include $567,856 for administration, 

$1,070,832 for inspection, $201,702 for 

research, and $2,633,374 for domestic 

and international promotion. Budgeted 

expenses for these items in 2005–06 

were $899,288 for administration, 

$1,167,381 for inspection, $203,230 for 

research, and $2,649,149 for domestic 

and international promotion. 

The NAC 2006–07 fiscal period 

assessment rate was derived after 

considering anticipated fiscal period 

expenses; the estimated assessable 

nectarines of 17,824,000 25-pound 

containers or container equivalents; the 

estimated income from other sources, 

such as interest; and the need for an 

adequate financial reserve to carry the 

NAC into the 2007 season. Therefore, 

the NAC recommended an assessment 

rate of $0.21 per 25-pound container or 

container equivalent. According to the 

committee, that assessment rate should 

result in an adequate financial reserve, 


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yet one well within the maximum of 

approximately one year’s expenses 

permitted by the order (§ 916.42). 

PCC Assessment and Expenses 

For the 2005–06 fiscal period, the PCC 

recommended, and USDA approved, an 

assessment rate of $0.20 per 25-pound 

container or container equivalent of 

peaches that would continue in effect 

from fiscal period to fiscal period unless 

modified, suspended, or terminated by 

USDA upon recommendation and 

information submitted by the committee 

or other information available to USDA. 

The PCC met on April 27, 2006, and 

recommended 2006–07 expenditures of 

$4,988,914 and an assessment rate of 

$0.21 per 25-pound container or 

container equivalent of peaches. In 

comparison, last year’s budgeted 

expenditures were $5,095,709. The 

proposed assessment rate of $0.21 is 

$0.01 higher than the rate currently in 

effect. 

The rate increase was recommended 

to ensure that the PCC could meet its 

2006–07 anticipated expenses and carry 

over a financial reserve that would 

provide adequate funds for promotional 

and other activities at the beginning of 

the 2007 season before assessment 

collections begin. Increasing the 

assessment rate from $0.20 to $0.21 per 

25-pound container or container 

equivalent is expected to provide about 

$202,420 in additional assessment 

revenue, and should allow the PCC to 

start the 2007 season with adequate 

funds. 

Expenditures recommended by the 

PCC for the 2006–07 fiscal period 

include $629,024 for administration, 

$1,299,211 for inspection, $210,718 for 

research, and $2,849,961 for domestic 

and international promotion. Budgeted 

expenses for these items in 2005–06 

were $918,736 for administration, 

$1,260,160 for inspection, $204,833 for 

research, and $2,711,980 for domestic 

and international promotion. 

The PCC 2006–07 fiscal period 

assessment rate was derived after 

considering anticipated PCC expenses; 

the estimated assessable peaches of 

20,242,000 25-pound containers or 

container equivalents; the estimated 

income from other sources, such as 

interest; and the need for an adequate 

reserve to carry the PCC into the 2006 

season. Therefore, the PCC 

recommended an assessment rate of 

$0.21 per 25-pound container or 

container equivalent. According to the 

committee, that assessment rate should 

result in an adequate financial reserve, 

yet one well within the maximum of 

approximately one year’s expenses 

permitted by the order (§ 917.38). 

Continuance of Assessment Rates 

The assessment rates established in 

this rule will continue in effect 

indefinitely unless modified, 

suspended, or terminated by USDA 

upon recommendation and information 

submitted by the committees or other 

available information. 

Although these assessment rates will 

be in effect for an indefinite period, the 

committees will continue to meet prior 

to or during each fiscal period to 

recommend a budget of expenses and 

consider recommendations for 

modification of the assessment rates. 

The dates and times of committee 

meetings are available from the 

committees’ Website at http:// 

www.eatcaliforniafruit.com or USDA. 

Committee meetings are open to the 

public and interested persons may 

express their views at these meetings. 

USDA will evaluate the committees’

recommendations and other available 

information to determine whether 

modification of the assessment rate for 

each committee is needed. Further 

rulemaking will be undertaken as 

necessary. The committees’ 2006–07 

fiscal period budgets and those for 

subsequent fiscal periods will be 

reviewed and, as appropriate, approved 

by USDA. 

Final Regulatory Flexibility Analysis 

Pursuant to requirements set forth in 

the Regulatory Flexibility Act (RFA), the 

Agricultural Marketing Service (AMS) 

has considered the economic impact of 

this rule on small entities. Accordingly, 

AMS has prepared this final regulatory 

flexibility analysis. 

The purpose of the RFA is to fit 

regulatory actions to the scale of 

business subject to such actions in order 

that small businesses will not be unduly 

or disproportionately burdened. 

Marketing orders issued pursuant to the 

Act, and the rules issued thereunder, are 

unique in that they are brought about 

through group action of essentially 

small entities acting on their own 

behalf. Thus, both statutes have small 

entity orientation and compatibility. 

There are approximately 150 

California nectarine and peach handlers 

subject to regulation under the orders 

covering nectarines and peaches grown 

in California, and about 800 producers 

of these fruits in California. Small 

agricultural service firms, which 

include handlers, are defined by the 

Small Business Administration [13 CFR 

121.201] as those whose annual receipts 

are less than $6,500,000. Small 

agricultural producers are defined by 

the Small Business Administration as 

those having annual receipts of less than 

$750,000. A majority of these handlers 

and producers may be classified as 

small entities. 

The committees’ staff has estimated 

that there are fewer than 25 handlers in 

the industry who could be defined as 

other than small entities. For the 2005 

season, the committees’ staff estimated 

that the average handler price received 

was $10.00 per container or container 

equivalent of nectarines or peaches. A 

handler would have to ship at least 

650,000 containers to have annual 

receipts of $6,500,000. Given data on 

shipments maintained by the 

committees’ staff and the average 

handler price received during the 2005 

season, the committees’ staff estimates 

that small handlers represent 

approximately 83 percent of all the 

handlers within the industry. 

The committees’ staff has also 

estimated that fewer than 10 percent of 

the producers in the industry could be 

defined as other than small entities. For 

the 2005 season, the committees’

estimated the average producer price 

received was $5.25 per container or 

container equivalent for nectarines and 

peaches. A producer would have to 

produce at least 142,858 containers of 

nectarines and peaches to have annual 

receipts of $750,000. Given data 

maintained by the committees’ staff and 

the average producer price received 

during the 2005 season, the committees’

staff estimates that small producers 

represent more than 90 percent of the 

producers within the industry. 

With an average producer price of 

$5.25 per container or container 

equivalent, and a combined packout of 

nectarines and peaches of 38,691,622 

containers, the value of the 2005 

packout is estimated to be $203,131,016. 

Dividing this total estimated grower 

revenue figure by the estimated number 

of producers (800) yields an estimate of 

average revenue per producer of about 

$253,914 from the sales of peaches and 

nectarines. 

This rule increases the assessment 

rates established for the NAC and PCC 

for the 2006–07 and subsequent fiscal 

periods from $0.20 to $0.21 per 25- 

pound container or container equivalent 

of nectarines and peaches. 

The NAC recommended 2006–07 

fiscal period expenditures of $4,473,764 

for nectarines and an assessment rate of 

$0.21 per 25-pound container or 

container equivalent of nectarines. The 

assessment rate of $0.21 is $0.01 higher 

than the 2005–06 rate. The PCC 

recommended 2006–07 fiscal period 

expenditures of $4,988,914 for peaches 

and an assessment rate of $0.21 per 25- 

pound container or container equivalent 


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51984 Federal Register / Vol. 71, No. 170 / Friday, September 1, 2006 / Rules and Regulations 

of peaches. The assessment rate of $0.21 

is $0.01 higher than the 2005–06 rate. 

Analysis of NAC Budget 

The quantity of assessable nectarines 

for the 2006–07 fiscal period is 

estimated at 17,824,000 25-pound 

containers or container equivalents. 

Thus, the $0.21 rate should provide 

$3,743,040 in assessment income. 

Income derived from handler 

assessments, along with interest income 

and research grants, should be adequate 

to cover budgeted expenses and 

maintain the desired reserve. 

The major expenditures 

recommended by the NAC for the 2006–

07 fiscal period include $567,856 for 

administration, $1,070,832 for 

inspection, $201,702 for research, and 

$2,633,374 for domestic and 

international promotion. Budgeted 

expenses for these items in 2005–06 

were $899,288, $1,167,381, $203,230, 

and $2,649,149, respectively. 

The NAC recommended an increase 

in the assessment rate to meet 

anticipated 2006–07 expenses and 

maintain an acceptable financial 

reserve, which is needed to fund 

expenses for the following year until 

assessments for that year are received. 

The NAC reviewed and recommended 

2006–07 expenditures of $4,473,764 and 

the increased assessment rate. 

Analysis of PCC Budget 

The quantity of assessable peaches for 

the 2006–07 fiscal year is estimated at 

20,242,000 25-pound containers or 

container equivalents. Thus, the $0.21 

rate should provide $4,250,820 in 

assessment income. Income derived 

from handler assessments, along with 

interest income and research grants, 

should be adequate to cover budgeted 

expenses and maintain the desired 

reserve. 

The major expenditures 

recommended by the PCC for the 2006–

07 fiscal period include $629,024 for 

administration, $1,299,211 for 

inspection, $210,718 for research, and 

$2,849,961 for domestic and 

international promotion. Budgeted 

expenses for these items in 2005–06 

were $918,736, $1,260,160, $204,833, 

and $2,711,980, respectively. 

The PCC recommended an increase in 

the assessment rate to meet anticipated 

2006–07 expenses and maintain an 

acceptable financial reserve, which is 

needed to fund expenses for the 

following year until assessments for that 

year are received. The PCC reviewed 

and recommended 2006–07 

expenditures of $4,988,914 and the 

increased assessment rate. 

Considerations in Determining 

Expenses and Assessment Rates 

Prior to arriving at these budgets, the 

committees considered information and 

recommendations from various sources, 

including, but not limited to: The 

Executive Committee, the Research 

Subcommittee, the International 

Programs Subcommittee, the Domestic 

Promotion Subcommittee, and the 

Nectarine and Peach Estimating 

Committees. Because 2006 crop 

estimates are lower than those for 

previous years, assessment revenues 

would decrease if the current rates were 

maintained through the 2006 season. 

The committees considered decreasing 

their promotional program expenditures 

in order to avoid raising the assessment 

rates. However, they believe that their 

current promotional programs are 

crucial to the success of the industry. 

Therefore, they recommended 

increasing the assessment rates in order 

to continue funding those activities at 

the current level. Both the NAC and 

PCC determined that an assessment rate 

of $0.21 per 25-pound container or 

container equivalent would allow them 

to meet their 2006–07 fiscal period 

expenses and carry over necessary 

operating reserves to finance operations 

before 2007–08 assessments are 

collected. The committees then 

recommended these rates to USDA. 

A review of historical and preliminary 

information pertaining to the upcoming 

fiscal period indicates that the grower 

price for nectarines and peaches for the 

2006–07 season could range between 

$4.00 and $6.00 per 25-pound container 

or container equivalent. Therefore, the 

estimated assessment revenue for the 

2006–07 fiscal period as a percentage of 

total grower revenue could range 

between 3.5 and 5.25 percent. 

This action increases the assessment 

obligation imposed on handlers. While 

assessments impose some additional 

costs on handlers, the costs are minimal 

and uniform on all handlers. Some of 

the additional costs may be passed on 

to producers. However, these costs are 

offset by the benefits derived from the 

operation of the marketing orders. In 

addition, the committees’ meetings were 

widely publicized throughout the 

California nectarine and peach 

industries and all interested persons 

were invited to attend the meetings and 

participate in the committees’

deliberations on all issues. Like all 

committee meetings, the April 27, 2006, 

meetings were public meetings and all 

entities of all sizes were able to express 

views on this issue. 

This rule imposes no additional 

reporting or recordkeeping requirements 

on either small or large California 

nectarine or peach 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. 

The 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 proposed rule concerning this 

action was published in the Federal 

Register on July 5, 2006 (71 FR 38115). 

Copies of the proposed rule were also 

mailed or sent via facsimile or E-mail to 

all nectarine and peach handlers. 

Finally, the proposal was made 

available through the Internet by USDA 

and the Office of the Federal Register. A 

10-day comment period ending July 17, 

2006, was provided for interested 

persons to respond to the proposal. One 

comment supporting the proposal was 

received. The commenter cited reduced 

crop yields and the need to fund preharvest expenses next year as 

justification for the assessment rate 

increases. 

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/ 

fv/moab.html. Any questions about the 

compliance guide should be sent to Jay 

Guerber at the previously mentioned 

address in the FOR FURTHER INFORMATION

CONTACT section. 

After consideration of all relevant 

material presented, including the 

information and recommendation 

submitted by the committees and other 

available information, it is hereby found 

that this rule, as hereinafter set forth, 

will tend to effectuate the declared 

policy of the Act. 

Pursuant to 5 U.S.C. 553, it is also 

found and determined that good cause 

exists for not postponing the effective 

date of this rule until 30 days after 

publication in the Federal Register 

because (1) The 2006–07 fiscal period 

began on March 1, 2006, and the 

marketing orders require that the 

assessment rates for each fiscal period 

apply to all nectarines and peaches 

handled during such fiscal period; (2) 

the committees need to have sufficient 

funds to pay their expenses, which are 

incurred on a continuous basis; and (3) 

handlers are aware of this action, which 

was discussed and unanimously 

recommended by the committees at 


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Federal Register / Vol. 71, No. 170 / Friday, September 1, 2006 / Rules and Regulations 51985 

public meetings and is similar to other 

assessment rate actions issued in past 

years. Also, a 10-day comment period 

was provided for in the proposed rule 

and the comment received has been 

considered in reaching a final decision 

on this matter. 

List of Subjects 

7 CFR Part 916 

Marketing agreements, Nectarines, 

Reporting and recordkeeping 

requirements. 

7 CFR Part 917 

Marketing agreements, Peaches, Pears, 

Reporting and recordkeeping 

requirements. 

■ For the reasons set forth in the 

preamble, 7 CFR parts 916 and 917 are 

amended as follows: 

■ 1. The authority citation for 7 CFR 

parts 916 and 917 continues to read as 

follows: 

Authority: 7 U.S.C. 601–674. 

PART 916—NECTARINES GROWN IN 

CALIFORNIA 

■ 2. Section 916.234 is revised to read 

as follows: 

§ 916.234 Assessment rate. 

On and after March 1, 2006, an 

assessment rate of $0.21 per 25-pound 

container or container equivalent of 

nectarines is established for California 

nectarines. 

PART 917—PEACHES GROWN IN 

CALIFORNIA 

■ 3. Section 917.258 is revised to read 

as follows: 

§ 917.258 Assessment rate. 

On and after March 1, 2006, an 

assessment rate of $0.21 per 25-pound 

container or container equivalent of 

peaches is established for California 

peaches. 

Dated: August 28, 2006. 

Lloyd C. Day, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. 06–7377 Filed 8–31–06; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 983 

[Docket No. FV06–983–2 FR] 

Pistachios Grown in California; 

Modification of Small Handler 

Exemption 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: This rule modifies the current 

handling requirements prescribed under 

the California pistachio marketing order 

(order). The order regulates the handling 

of pistachios grown in California and is 

administered locally by the 

Administrative Committee for 

Pistachios (committee). The 

modification increases the exemption 

threshold for pistachio handlers who 

handle small amounts of pistachios, 

primarily for home or personal use. 

Currently, handlers of 1,000 pounds or 

less of hulled and dried pistachios 

(assessed weight) are exempt from most 

handling requirements. Under this 

modification, the exemption is extended 

to handlers of less than 5,000 pounds of 

assessed weight pistachios. This change 

is not expected to have a significant 

impact on the overall quality of 

California pistachios found in the 

marketplace. 

EFFECTIVE DATE: This final rule becomes 

effective September 5, 2006. 

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; E-mail: 

Terry.Vawter@usda.gov or 

Kurt.Kimmel@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@usda.gov. 

SUPPLEMENTARY INFORMATION: This final 

rule is issued under Marketing Order 

No. 983 (7 CFR part 983), regulating the 

handling of pistachios 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 final rule has been reviewed 

under Executive Order 12988, Civil 

Justice Reform. This rule is not intended 

to have retroactive effect. This final 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. 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 

not later than 20 days after the date of 

the entry of the ruling. 

This final rule modifies the current 

handling requirements prescribed under 

the California pistachio order. This 

modification increases the exemption 

threshold for pistachio handlers who 

handle small amounts of pistachios 

from the current level of 1,000 pounds 

or less of assessed weight pistachios to 

less than 5,000 pounds of assessed 

weight pistachios. Under this change, 

pistachio handlers who handle less than 

5,000 pounds of assessed weight 

pistachios are exempt from most 

handling requirements established 

under the order, including those relating 

to aflatoxin testing, minimum quality 

inspection, and payment of assessments. 

Previous rules, one section of the 

order, and two sections of the rules and 

regulations refer to ‘‘dried pounds’’ or 

‘‘dried weight’’ of pistachios. While 

these terms are not defined in the order, 

they are generally interchangeable with 

the defined term ‘‘assessed weight.’’ For 

the purposes of this final rule, the term 

‘‘assessed weight’’ will be used. 

Section 983.70 of the pistachio order 

currently exempts any handler who 

handles 1,000 pounds or less of assessed 

weight pistachios in any production 

year from the requirements of §§ 983.38 

through 983.45 and § 983.53 of the 

order. A ‘‘production year’’ begins on 


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