This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

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new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

56049

Vol. 62, No. 209

Wednesday, October 29, 1997

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 981

[Docket No. FV97–981–2 FR]

Almonds Grown in California;

Interhandler Transfers of Reserve

Obligations

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Final rule.

SUMMARY: This final rule revises

regulations under the California almond

marketing order to authorize

interhandler transfers of reserve

obligations. The almond marketing

order regulates the handling of almonds

grown in California and is administered

locally by the Almond Board of

California (Board). This rule will allow

the Board to implement authority

contained in the marketing order to

authorize handlers to transfer reserve

withholding obligations to other

handlers. It will provide handlers with

an additional option to satisfy reserve

obligations. This rule will enhance the

utility and flexibility of the volume

control regulations while benefiting

producers, handlers, and consumers.

EFFECTIVE DATE: This rule becomes

effective November 28, 1997.

FOR FURTHER INFORMATION CONTACT:

Kathleen M. Finn, Marketing Specialist,

Marketing Order Administration

Branch, F&V, AMS, USDA, room 2530–

S, P.O. Box 96456, Washington, DC

20090–6456; telephone: (202) 720–1509,

Fax: (202) 720–5698; or Martin Engeler,

California Marketing Field Office,

Marketing Order Administration

Branch, F&V, AMS, USDA, 2202

Monterey Street, suite 102B, Fresno,

California 93721; telephone: (209) 487–

5901, Fax: (209) 487–5906. Small

businesses may request information on

compliance with this regulation by

contacting Jay Guerber, Marketing Order

Administration Branch, F&V, AMS,

USDA, room 2525–S, P.O. Box 96456,

Washington, DC 20090–6456, telephone:

(202) 720–2491 or Fax: (202) 720–5698.

SUPPLEMENTARY INFORMATION: This rule

is issued under Marketing Order No.

981 (7 CFR part 981), as amended,

regulating the handling of almonds

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

(Department) is issuing this rule in

conformance with Executive Order

12866.

This rule has been reviewed under

Executive Order 12988, Civil Justice

Reform. This rule is not intended to

have retroactive effect. 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 the Secretary 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 the Secretary 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 the Secretary’s ruling on the

petition, provided an action is filed not

later than 20 days after date of the entry

of the ruling.

This rule implements regulations

authorizing interhandler transfers of

reserve obligations. Sections 981.45

through 981.60 set forth the authority to

implement volume control regulations

under the order by establishing salable

and reserve percentages of almonds.

Annually, the Board meets to review

projected crop estimates and marketing

conditions for the coming season.

Variations in production can cause wide

fluctuations in prices. These swings in

supplies and price levels can result in

market instability and uncertainty for

growers, handlers, buyers, and

consumers.

If it is determined a reserve is

warranted, the Board recommends to

the Secretary the salable and reserve

percentages to be placed on the almond

crop. If a reserve is established, handlers

are required to refrain from selling to

normal market outlets a quantity of

almonds equal to the reserve percentage.

This percentage becomes the handlers’

reserve withholding obligation.

Handlers must either maintain product

in inventory for possible release at a

later date or dispose of product to

secondary reserve outlets to satisfy their

reserve obligation. The last season a

reserve was in effect was during the

1994–95 crop year.

Section 981.55 of the order was

amended by final order dated June 26,

1996 (61 FR 32917) to include a

provision that allows handlers to

transfer reserve withholding obligations

to other handlers. Prior to the

amendment to the order, § 981.55

authorized only the transfer of almonds

(not reserve almonds) or reserve credits

to other handlers. Reserve credits are

issued to handlers when they dispose of

almonds to secondary outlets in

satisfaction of their reserve obligation.

Handlers can transfer excess credits to

other handlers. Receiving handlers can

use the credit to meet all or a portion

of their reserve obligations. This section

of the order further states that the terms

and conditions implementing the

provision must be recommended by the

Board and approved by the Secretary.

Adding a third option by amendment to

the order was intended to provide more

flexibility for handlers in satisfying their

reserve obligation.

At a Board meeting held on February

18, 1997, the Board unanimously

recommended implementing the third

option under § 981.55 concerning

reserve withholding obligation transfers

by making appropriate changes to the

rules and regulations. This rule will

enhance the utility and flexibility of the

volume control regulations. It will

provide handlers with an additional

method of satisfying reserve obligations.

Currently, § 981.455 contains three

paragraphs setting forth rules and

regulations regarding interhandler

transfers of almonds. These paragraphs

set forth procedures for (1) transferring
56050 Federal Register / Vol. 62, No. 209 / Wednesday, October 29, 1997 / Rules and Regulations

non-reserve almonds; (2) transferring

reserve credits; and (3) transferring

inedible almond obligations. This rule

will add a new paragraph including

procedures for transferring reserve

withholding obligations.

This rule will expand the options

available to handlers in the event a

reserve is implemented. The ability to

transfer reserve obligations will

particularly benefit those handlers who

do not stay in business all year and do

not have facilities for storage of reserve

almonds. Such handlers are

traditionally the smaller handlers in the

industry. Storage and other costs

associated with maintaining reserve

inventory or disposing of product to

secondary outlets will be reduced. This

rule will provide another option for

handlers to choose from in satisfying

their reserve obligations that may better

suit their operation.

The objective of the reserve

provisions is to keep a certain quantity

of almonds off the market in order to

maintain market stability. The

additional flexibility in the reserve

provisions is expected to improve

compliance among handlers, which in

turn will maintain the integrity of the

volume control regulations.

In order to ensure that adequate

procedures are in place to monitor

transfer of reserve obligations among

handlers, ABC Form 11, which

currently covers interhandler transfers

of reserve credits, will be modified. New

information will be added to the form to

properly document reserve obligation

transfers. Almond handlers wanting to

transfer their reserve obligation to

another handler will complete one

portion of revised Form 11 and forward

the form to the receiving handler. The

receiving handler will complete their

portion of the form and submit it to the

Board. Authorized Board personnel will

review, and if appropriate, approve the

transfer. The Board will then submit

copies of the forms to involved parties.

Pursuant to requirements set forth in

the Regulatory Flexibility Act (RFA), the

Agricultural Marketing Service (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

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 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 97 handlers

of California almonds who are subject to

regulation under the marketing order

and approximately 7,000 almond

producers in the regulated area. Small

agricultural service firms have been

defined by the Small Business

Administration (13 CFR 121.601) as

those having annual receipts of less than

$5,000,000, and small agricultural

producers are defined as those having

annual receipts of less than $500,000.

Currently, about 58 percent of the

handlers ship under $5 million of

almonds and 42 percent ship over $5

million on an annual basis. In addition,

based on acreage, production, and

grower prices reported by the National

Agricultural Statistics Service, and the

total number of almond growers, the

average annual grower revenue is

approximately $156,000. In view of the

foregoing, it can be concluded that the

majority of handlers and producers of

California almonds may be classified as

small entities.

Sections 981.45 through 981.60 of the

almond marketing order provide

authority to implement volume control

regulations by establishing salable and

reserve percentages of almonds. If it is

determined a reserve is warranted, the

Board recommends to the Secretary the

salable and reserve percentages to be

placed on the almond crop. If a reserve

is established, handlers must refrain

from selling to normal market outlets a

quantity of almonds equal to the reserve

percentage. Handlers must either

maintain product in inventory for

possible release at a later date or dispose

of product to lower value reserve outlets

to satisfy their reserve obligation. These

lower value outlets are primarily

crushing for oil and animal feed.

Section 981.55 of the order provides

authority for the interhandler transfer of

almonds and reserve credits. This

section was recently amended to

include authority for interhandler

transfer of reserve obligations. This rule

will implement the authority to transfer

reserve withholding obligations by

revising Section 981.455 of the

administrative rules and regulations

accordingly. This rule will provide

another option, in addition to those that

appear in that section, for handlers to

satisfy their reserve obligations. The

ability to transfer reserve obligations

will particularly benefit those handlers

who do not stay in business all year and

do not have facilities for storage of

reserve almonds. Such handlers are

traditionally the smaller handlers in the

industry. Storage and other costs

associated with maintaining reserve

inventory or disposing of product to

secondary outlets will be reduced. This

rule will provide another option for

handlers to choose from in satisfying

their reserve obligations that may better

suit their operation.

In past years, handlers either had to

maintain product in inventory or

dispose of it in approved reserve outlets

to satisfy their withholding obligation,

as discussed earlier. Those handlers

choosing to maintain product in

inventory must locate storage facilities

and incur storage costs they may not

otherwise incur, until the reserve is

lifted.

Storage costs vary, depending upon

factors such as the type of facilities

utilized and quantities involved. These

costs are generally in the range of one

cent per pound per month, with

additional charges for moving product

into and out of storage facilities. These

costs could be incurred for

approximately six to eighteen months

depending on the ultimate disposition

of the reserve.

Those handlers choosing to dispose of

their reserve to approved outlets may

save on storage costs, but receive a

lower return on the sales than they may

receive if sold in normal market

channels if the reserve is ultimately

released. Price levels for almonds used

for crushing into oil are in the range of

28 to 35 cents per pound, while animal

feed brings about two to three cents per

pound. Price levels for sales to normal

market outlets vary significantly from

year to year depending on available

supplies and market conditions, and can

range from $1 to $3 per pound. The

additional option that will be provided

by this rule will allow handlers to make

arrangements to transfer their reserve

obligation to other handlers. Handlers

will be able to choose the most cost

effective method of satisfying their

reserve obligations that best suits their

operations. This rule will provide more

flexibility if volume control regulations

under the almond marketing order are

issued.

A current form is being revised for

handlers to supply the transfer

information to the Board for its

approval. The current form (ABC Form

11) provides for handlers to transfer

reserve credits. Information will be

added to this form to collect information

on transfers of withholding obligation.

No additional burden will be added to

the form because handlers will choose

one of the options on the form. The

form’s current burden time of 5 minutes

will not be changed. This action will not

impose any significant additional

reporting or recordkeeping requirements

on either small or large almond
Federal Register / Vol. 62, No. 209 / Wednesday, October 29, 1997 / Rules and Regulations 56051

handlers. The benefits of providing

another tool to the industry to assist

them in making business decisions far

outweigh the estimated 5 minutes it will

take to complete the form. Further, any

additional reporting may be offset by

reduced reporting for those handlers

choosing to utilize this option in lieu of

other options available for satisfying

reserve obligations. 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.

As noted in the initial regulatory

flexibility analysis, the Department has

not identified any relevant Federal rules

that duplicate, overlap or conflict with

this rule. Information generated by

State, Federal, and private sector reports

pertains to almonds in general and does

not contain specific producer and

handler information. Therefore, such

information would not be detailed

enough to be used for the specific

purposes required under the order.

The amendment to the marketing

order was voted on in a referendum and

was overwhelmingly supported by

almond growers. This rule will establish

procedures to implement the

amendment that authorized transfers of

reserve obligations. There are no

alternatives that would result in the

additional flexibility sought by the

industry.

In addition, the Board’s meeting was

widely publicized throughout the

almond industry and all interested

persons were invited to attend the

meeting and participate in Board

deliberations on all issues. Like all

Board meetings, the February 18, 1997,

meeting was a public meeting and all

entities, both large and small, were able

to express views on this issue. The

Board itself is composed of ten industry

members, of which five are handlers

and five are growers.

A proposed rule concerning this

action was issued by the Department on

April 4, 1997, and published in the

Federal Register on April 10, 1997 (62

FR 17569). It was also made available

through the Internet by the Office of the

Federal Register. A 60 day comment

period was provided to allow interested

persons to respond to the proposal. No

comments were received.

After consideration of all relevant

matter presented, including the

information and recommendation

submitted by the Board 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.

The proposed rule regarding the

interhandler transfer of almonds also

announced the AMS’s intent to request

a revision to the currently approved

information collection requirements

issued under the marketing order. The

60 day comment period was also

provided to allow interested persons the

opportunity to respond to the notice. No

comments were received on the

information collection requirements.

In accordance with the Paperwork

Reduction Act of 1995 (44 U.S.C.

Chapter 35), the information collection

requirements that are contained in this

rule have been approved by the Office

of Management and Budget (OMB) and

have been assigned OMB No. 0581–

0071.

List of Subjects in 7 CFR Part 981

Almonds, Marketing agreements,

Nuts, Reporting and recordkeeping

requirements.

For the reasons set forth in the

preamble, 7 CFR part 981 is amended as

follows:

PART 981—ALMONDS GROWN IN

CALIFORNIA

1. The authority citation for 7 CFR

part 981 continues to read as follows:

Authority: 7 U.S.C. 601–674.

2. In § 981.455, paragraph (c) is

redesignated as paragraph (d) and a new

paragraph (c) is added to read as

follows:

§ 981.455 Interhandler transfers.

* * * * *

(c) Transfers of reserve withholding

obligation. A handler may transfer

reserve withholding obligation to other

handlers pursuant to § 981.55 after

having filed with the Board an ABC

Form 11 executed by both handlers. The

Board shall approve the transfer upon

receipt of the properly completed form.

* * * * *

Dated: October 23, 1997.

Eric M. Forman,

Acting Deputy Administrator, Fruit and

Vegetable Programs.

[FR Doc. 97–28630 Filed 10–28–97; 8:45 am]

BILLING CODE 3410–02–P

NUCLEAR REGULATORY

COMMISSION

10 CFR Chapter I

RIN 3150–AF69

Information Collection Requirements;

Statutory and Technical Amendments;

Correction

AGENCY: Nuclear Regulatory

Commission.

ACTION: Final rule; correction.

SUMMARY: This document corrects a

notice appearing in the Federal Register

on October 6, 1997 (62 FR 52184). This

action is necessary to correct an

erroneous instruction.

EFFECTIVE DATE: October 6, 1997.

FOR FURTHER INFORMATION CONTACT:

David L. Meyer, Chief, Rules and

Directives Branch, Division of

Administrative Services, Office of

Administration, Washington, D.C.

20555–0001, telephone (301) 415–7162.

SUPPLEMENTARY INFORMATION: On page

52188, in the second column,

instruction number 24 is corrected to

read, ‘‘24. In § 60.8, paragraph (a) is

revised to read as follows:’’.

Dated at Rockville, MD, this 22nd day of

October 1997.

For the Nuclear Regulatory Commission.

David L. Meyer,

Chief, Rules and Directives Branch, Division

of Administrative Services, Office of

Administration.

[FR Doc. 97–28620 Filed 10–28–97; 8:45 am]

BILLING CODE 7590–01–P

NATIONAL CREDIT UNION

ADMINISTRATION

12 CFR Part 792

Production of Nonpublic Records and

Testimony of NCUA Employees in

Legal Proceedings

AGENCY: National Credit Union

Administration (NCUA).

ACTION: Final rule.

SUMMARY: The NCUA amends its rules

regarding subpoenas seeking nonpublic

records or the testimony of NCUA

employees. The rule provides

procedures, requirements and

information on how the NCUA will

handle these matters and expressly

prohibits any disclosure or testimony

except as provided by the rule. The rule

also amends the current rule regarding

release of NCUA records that are exempt

from disclosure under the Freedom of