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[Federal Register Volume 62, Number 28 (Tuesday, February 11, 1997)]
[Rules and Regulations]
[Pages 6110-6111]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-3284]

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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

7 CFR Part 984

[Docket No. FV96-984-1 FIR]

Walnuts Grown in California; Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: The Department of Agriculture (Department) is adopting as a 
final rule, without change, the provisions of an interim final rule 
establishing an assessment rate for the Walnut Marketing Board (Board) 
under Marketing Order No. 984 for the 1996-97 and subsequent marketing 
years. The Board is responsible for local administration of the 
marketing order which regulates the handling of walnuts grown in 
California. Authorization to assess walnut handlers enables the Board 
to incur expenses that are reasonable and necessary to administer the 
program.

EFFECTIVE DATE: August 1, 1996.

FOR FURTHER INFORMATION CONTACT: Mary Kate Nelson, Marketing Assistant, 
California Marketing Field Office, Fruit and Vegetable Division, AMS, 
USDA, 2202 Monterey Street, suite 102B, Fresno, CA 93721, telephone 
209-487-5901, FAX 209-487-5906, or Martha Sue Clark, Program Assistant, 
Marketing Order Administration Branch, Fruit and Vegetable Division, 
AMS, USDA, PO. Box 96456, room 2525-S, telephone 202-720-9918, FAX 202-
720-5698. Small businesses may request information on compliance with 
this regulation by contacting: Jay Guerber, Marketing Order 
Administration Branch, Fruit and Vegetable Division, AMS, USDA, PO. Box 
96456, room 2525-S, Washington, DC 20090-6456; telephone 202-720-2491; 
FAX 202-720-5698.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing 
Agreement and Order No. 984, both as amended (7 CFR part 984), 
regulating the handling of walnuts grown in California, hereinafter 
referred to as the ``order.'' The marketing agreement and order 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 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 issued herein will be applicable to all assessable 
walnuts beginning August 1, 1996, and continuing 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 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. Such 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 the date of the entry of the ruling.
    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.
    The purpose of the RFA is to fit regulatory actions to the scale of 
business subject to such actions in order

[[Page 6111]]

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 5,000 producers of walnuts in the 
production area and approximately 55 handlers subject to regulation 
under the marketing order. Small agricultural producers have been 
defined by the Small Business Administration (13 CFR 121.601) as those 
having annual receipts less than $500,000, and small agricultural 
service firms are defined as those whose annual receipts are less than 
$5,000,000. The majority of California walnut producers and handlers 
may be classified as small entities.
    The California walnut marketing order provides authority for the 
Board, with the approval of the Department, to formulate an annual 
budget of expenses and collect assessments from handlers to administer 
the program. The members of the Board are producers 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.
    The Board met on September 6, 1996, and unanimously recommended 
1996-97 expenditures of $2,301,869 and an assessment rate of $0.0117 
per kernelweight pound of merchantable walnuts certified. In 
comparison, last year's budgeted expenditures were $2,280,175. The 
assessment rate of $0.0117 is $0.0001 higher than last year's 
established rate. Major expenditures recommended by the Board for the 
1996-97 year include $232,684 for general expenses, $150,508 for office 
expenses, $1,840,677 for research expenses, $48,000 for a production 
research director, and $30,000 for the reserve. Budgeted expenses for 
these items in 1995-96 were $246,847, $140,908, $1,828,420, $34,000, 
and $30,000, respectively.
    The assessment rate recommended by the Board was derived by 
dividing anticipated expenses by expected merchantable certifications 
of California walnuts. Walnut shipments for the year are estimated at 
198,000,000 kernelweight pounds which will yield $2,316,600 in 
assessment income, which will be adequate to cover budgeted expenses. 
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 five months after the end of the year.
    An interim final rule regarding this action was published in the 
November 29, 1996, issue of the Federal Register (61 FR 60512). That 
rule provided for a 30-day comment period. No comments were received.
    While this rule will impose some additional costs on handlers, the 
costs are in the form of uniform assessments on all handlers. Some of 
the additional costs may be passed on to producers. However, these 
costs will be offset by the benefits derived by the operation of the 
marketing order. Therefore, the AMS has determined that this rule will 
not have a significant economic impact on a substantial number of small 
entities.
    The assessment rate established in this rule will continue in 
effect indefinitely unless modified, suspended, or terminated by the 
Secretary upon recommendation and information submitted by the Board or 
other available information.
    Although this assessment rate is effective for an indefinite 
period, the Board will 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 the Department. 
Board meetings are open to the public and interested persons may 
express their views at these meetings. The Department will evaluate 
Board recommendations and other available information to determine 
whether modification of the assessment rate is needed. Further 
rulemaking will be undertaken as necessary. The Board's 1996-97 budget 
and those for subsequent marketing years will be reviewed and, as 
appropriate, approved by the Department.
    After consideration of all relevant material 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.
    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 
Board needs to have sufficient funds to pay its expenses which are 
incurred on a continuous basis; (2) the 1996-97 marketing year began on 
August 1, 1996, and the marketing order requires that the rate of 
assessment for each marketing year apply to all assessable walnuts 
handled during such marketing year; (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) an interim final rule was published on this action and 
provided for a 30-day comment period; no comments were received.

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 
amended as follows:

PART 984--WALNUTS GROWN IN CALIFORNIA

    Accordingly, the interim final rule amending 7 CFR part 984 which 
was published at 61 FR 60512 on November 29, 1996, is adopted as a 
final rule without change.

    Dated: February 5, 1997.
Robert C. Keeney
Director, Fruit and Vegetable Division.
[FR Doc. 97-3284 Filed 2-10-97; 8:45 am]
BILLING CODE 3410-02-P
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