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

19020 

Vol. 87, No. 63 

Friday, April 1, 2022 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 984 

[Doc. No. 22–J–0011; AMS–SC–22–0010; 

SC22–981–1] 

Marketing Order for Walnuts Grown 

and Handled in California (M.O. No. 

984); Hearing 

AGENCY: Agricultural Marketing Service, 

Department of Agriculture (USDA). 

ACTION: Notification of hearing on 

proposed rulemaking. 

SUMMARY: Notice is hereby given of a 

public hearing to receive evidence on 

proposed amendments to Federal 

Marketing Order No. 984 (Order) 

regulating the handling of walnuts 

grown in California. The California 

Walnut Board (Board), which locally 

administers the Order, recommended 

proposed amendments that would 

eliminate mandatory inspection and 

certification of inshelled and shelled 

walnuts, and of shelled walnuts for 

processing; create a new mechanism for 

determining and collecting handler 

assessments; add authority to charge 

interest for late payments; and remove 

volume control authority. In addition, 

the Agricultural Marketing Service 

(AMS) proposes to make changes to the 

Order as may be necessary to conform 

to any amendment that may result from 

the hearing. 

DATES: The hearing will be held April 

19–20, 2022, from 8:00 a.m. to 5:00 p.m. 

Pacific Time (PT) and, if deemed 

necessary by the presiding 

administrative law judge, will continue 

until any other such time as determined 

by the judge. 

ADDRESSES: USDA will conduct the 

hearing remotely, without gathering in a 

central location, using the ZOOM audiovideo conferencing system. Individuals 

will be able to testify before the 

administrative law judge for the hearing 

record through their own computer or 

any other technology that supports the 

ZOOM application. To participate 

remotely in the hearing via audio-video 

technology, participant’s computers 

must have operating camera, 

microphone and audio functions. While 

not required, individuals wanting to 

participate as audience members may 

pre-register by providing their name, 

phone number and email address to 

Geronimo Quinones and Matthew 

Pavone of the Market Development 

Division, Specialty Crops Program, 

AMS, USDA, whose contact information 

is listed in the FOR FURTHER INFORMATION

CONTACT section below, by 5:00 p.m. 

Eastern Time (ET), April 12, 2022. All 

pre-registered individuals will receive 

an invitation via email prior to the 

hearing. The invitation will include a 

link the individuals can click at the start 

of the hearing on April 19, 2022, and 

April 20, 2022. Individuals who choose 

not to pre-register may access the 

hearing on-line by cutting and pasting 

https://www.zoomgov.com/j/ 

1609318451 into their web browser. 

Cellular or land-line telephones may 

be used by individuals who do not have 

access to a computer with operating 

camera, microphone and audio 

functions. To access the on-line hearing 

by telephone, participants may dial 

either of the following Zoom generated 

phone numbers: [669–254–5252 or 646– 

828–7666 or 669–216–1590 or 551–285– 

1373]. 

Individuals who would like to testify 

(witnesses) may provide electronic 

copies of any prepared statements and 

supporting documents to LaShawn 

Williams of the Market Development 

Division, Specialty Crops Program, 

AMS, USDA, via email at 

LaShawn.Williams@usda.gov, so that 

they can be made public at the time of 

the hearing. These documents will be 

published to the AMS website at the 

following location https://

www.ams.usda.gov/rules-regulations/ 

moa/984-california-walnuts. 

FOR FURTHER INFORMATION CONTACT: 

Geronimo Quinones, Market 

Development Division, Specialty Crops 

Program, AMS, USDA, 1400 

Independence Avenue SW, Stop 0237, 

Washington, DC 20250–0237; 

Telephone: (202) 308–2339 or Andrew 

Hatch, Market Development Division, 

Specialty Crops Program, AMS, USDA, 

1400 Independence Avenue SW, Stop 

0237, Washington, DC 20250–0237; 

Telephone: (202) 720–2491, or Email: 

Geronimo.Quinones@usda.gov or 

Andrew.Hatch@usda.gov. 

Small businesses may request 

information on this proceeding by 

contacting Richard E. Lower, Market 

Development Division, Specialty Crops 

Program, AMS, USDA, 1400 

Independence Avenue SW, Stop 0237, 

Washington, DC 20250–0237; 

Telephone: (202) 720–2491, or Email: 

Richard.Lower@usda.gov. 

SUPPLEMENTARY INFORMATION: This 

administrative action is instituted 

pursuant to the Agricultural Marketing 

Agreement Act of 1937, as amended (7 

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

as the ‘‘Act.’’ This action is governed by 

the provisions of sections 556 and 557 

of title 5 of the United States Code and, 

therefore, is excluded from the 

requirements of Executive Order 12866, 

13563, and 13175. The Agricultural 

Marketing Service (AMS) provided 

notice of the upcoming hearing to tribal 

governments through USDA’s Office of 

Tribal Relations. 

The Regulatory Flexibility Act (5 

U.S.C. 601 et seq.) seeks to ensure that 

within the statutory authority of a 

program, the regulatory and 

informational requirements are tailored 

to the size and nature of small 

businesses. Interested persons are 

invited to present evidence at the 

hearing on the possible regulatory and 

informational impacts of the proposals 

on small businesses. 

The amendments proposed herein 

have been reviewed under Executive 

Order 12988, Civil Justice Reform. They 

are not intended to have retroactive 

effect. 

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. 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 no later than 


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20 days after the date of the entry of the 

ruling. 

The hearing is convened in 

accordance with the provisions of the 

Act and the applicable rules of practice 

and procedure governing the 

formulation and amendment of 

marketing agreements and orders (7 CFR 

part 900). 

On October 28, 2021, the proposed 

amendments to Marketing Order No. 

984 (7 CFR part 984 (hereinafter referred 

to as the ‘‘Order’’)) were recommended 

to the Secretary with a request for a 

public hearing by the Board. The Board 

also requested the current moratorium 

on enforcement of mandatory inspection 

requirements be extended until the 

effective date of the proposed 

amendments summarized in this 

notification, if approved. After 

reviewing the proposals and other 

information submitted by the Board, 

USDA concludes that the proposed 

amendments to the Order will tend to 

effectuate the declared policy of the Act, 

and therefore decided to schedule this 

matter for a hearing. 

The Board administers the Order, 

with the oversight of USDA. The 

Board’s proposed amendments would 

modify quality control provisions to 

remove inspection and certification 

requirements, create a new mechanism 

for determining and collecting handler 

assessments, add authority to charge 

interest for late payments, and remove 

volume control authority. The proposals 

also include changes to various 

provisions in the ‘‘Assessment Rates’’ 

and ‘‘Administrative Requirements’’ 

subparts of the Order. As proposed, 

inspection and certification of outbound 

walnuts would no longer be required, 

and handler assessments would be 

calculated based on a proposed 

assessment rate recommended by the 

Board and applied to handlers’ inbound 

walnuts instead of outbound walnuts. 

In its request to USDA for a public 

hearing, the Board stated that the 

proposed amendments are necessary to 

streamline the Order and if 

implemented, the resulting Order will 

better meet current and future industry 

needs. The Board believes the proposed 

amendments would eliminate current 

redundancies in inspection, reduce 

costs and administrative burden to 

handlers and the Board, and provide a 

cost savings to growers. 

The Board’s request further explained 

that current handler quality control 

programs across industry have advanced 

since the enactment of the Order in 

1948. For example, over 300,000 tons of 

growth of additional production in the 

last decade has coincided with higher 

consumer expectations and present-day 

customer specifications, and each 

exceed the grades and standards 

currently required under the Order. As 

such, the Board is seeking to modernize 

the Order by eliminating inspection and 

certification requirements and removing 

volume control provisions so that the 

Order focuses primarily on research and 

promotion. 

In the Board’s justification for its 

recommendation to remove volume 

control, the Board cited how this 

authority has not been utilized since 

1987 and following the indefinite 

suspension of this authority on June 8, 

2020 (85 FR 27107), no economic harm 

came to producers, handlers or 

consumers. The Board does not expect 

to use this authority in the future, and 

therefore proposed to permanently 

remove it from the Order. 

In the justification for the 

recommendation on revising quality 

control regulations, the Board explains 

that significant investments in 

processing, storage, technology, and 

equipment have ensured better food 

safety programs that are able to maintain 

higher walnut quality and conditions 

that exceed the minimum grades and 

standards currently set forth in the 

Order. The Board further stated that it 

is common practice for industry to 

conduct quality inspections on inbound 

shipments of walnuts. Current quality 

regulations for grade and size under the 

Order require an additional inspection 

and certification on outbound walnuts. 

This resulted in two forms of 

inspections being conducted by 

handlers: One performed on inbound 

walnuts and a second on outbound 

walnuts. The Board stated that these 

inspections are redundant and 

unnecessary. Therefore, the Board 

proposes to remove current grade and 

size requirements; however, the 

authority to recommend regulation if 

needed in the future would remain in 

place. The inspection and certification 

requirements for outbound walnuts and 

walnuts for processing currently 

prescribed under the Order would also 

be removed under this proposal. If 

implemented, the Board states the 

proposed amendments would remove 

the redundancy of the outbound 

inspection, thus reducing costs to both 

handlers and producers and reducing 

administrative burden to the Board. 

Accordingly, inspection and 

certification requirements for imported 

walnuts would also be removed. 

In the Board’s justification for creating 

a new mechanism to determine 

assessments, the Board explained that 

current requirements established under 

the Order are based on kernelweight 

pound of walnuts inspected and 

certified. As such, the proposed 

elimination of mandatory inspection 

and certification requirements would 

remove the Board’s ability to collect 

handler assessments. The proposed new 

mechanism would change the type of 

weight used in the calculation, 

replacing kernelweight with inshell 

pound. It would also establish the 

calculating of assessments on walnuts 

received rather than on walnuts shipped 

by handlers. If implemented, the Board 

states this new mechanism, which is 

adapted from the California Walnut 

Commission, would require handlers to 

provide inbound walnut receipts from 

growers to the Board. The Board has 

proposed an initial assessment rate of 

$0.0125 per inshell pound of walnuts 

that would go into effect with the start 

of the proposed new mechanism, if it 

were to be effectuated. The 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. If the assessment proposal 

is effectuated, the new assessment 

mechanism, the annual budget, and the 

assessment rate would be 

communicated to handlers through 

annual pre-season packets and bulletins. 

The Board states the current Order 

language does not provide for the 

changes necessary for its alignment with 

current industry practices without 

undertaking substantive formal and 

informal rulemaking. As such, the Board 

recommended several amendments to 

the Order and associated administrative 

requirements, summarized as follows: 

• Remove § 984.49 Volume 

regulation, reserve pool authority, and 

subsequent sections including 

provisions for volume control. This 

includes removing: §§ 984.23, 984.26, 

984.33, 984.54, 984.56, 984.66, 

984.69(b), 984.450(a) and (b), 

984.451(c), 984.456, and 984.464(a), and 

revising: §§ 984.48 and 984.67. 

• Modify § 984.50 Grade, quality, and 

size regulations to remove quality and 

size regulations and include only the 

Board’s authority and eliminate 

§§ 984.51 and 984.52 inspection and 

certification of inshell and shelled 

walnuts and shelled walnuts for 

processing. This includes revising: 

§§ 984.12, 984.32, 984.64, 984.69, 

984.77, 984.459(a)(3), and 984.472(b) 

and removing: §§ 984.450(c), 984.451(a) 

and (b), 984.452, and 984.464(b) and (c). 

• Modifying the definition in § 984.13 

‘‘To handle’’ to include ‘‘receive’’. 

• Revise § 984.69 by changing the 

calculation of assessments from 

kernelweight to inshell pound in 

paragraph (a) and revising paragraph (b) 

to include an authority to charge for late 


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payments and/or interest as prescribed 

by the Board with approval from the 

Secretary. Corresponding changes 

would be made to §§ 984.37, 984.48, 

984.69, and 984.347. 

• Revise § 984.347 to establish an 

assessment rate of $0.0125 per inshell 

pound of walnuts. 

• Any additional conforming changes 

resulting from the above proposed 

amendments. 

In its recommendation, the Board 

stated that the above proposed changes 

were discussed at several meetings 

where stakeholders were provided the 

opportunity to express their views and 

provide input, and have the broadest 

possible support from the industry. The 

Board discussed and recommended the 

proposed amendments at public 

meetings on August 17 and September 

10, 2021. The Board then voted and 

approved the proposed amendments. 

Four of the five proposals received 

unanimous support, and the proposal to 

establish an initial assessment rate 

received seven votes in favor and two 

opposed. 

In addition to the proposed 

amendments submitted by the Board, 

AMS proposes to make any such 

conforming changes to the Order as may 

be necessary to conform to any 

amendment that may result from the 

hearing, or to correct minor 

inconsistencies and typographical 

errors. 

USDA will oversee this formal 

rulemaking proceeding. The issuance of 

this notification of public hearing is the 

first of several steps in the amendatory 

rulemaking process, including the 

issuance of a recommended decision, 

public comment period, Secretary’s 

decision, grower referendum, and 

handler sign-up (if the prior steps prove 

favorable). 

The public hearing process will 

further explain the merits of the 

proposed amendments. At the hearing, 

interested persons may provide 

testimony in support of or in opposition 

to the proposed amendments. Interested 

persons will be invited to testify on the 

possible regulatory and informational 

impact of the proposed amendments on 

small businesses. 

Interested persons will also be 

provided the opportunity to file briefs in 

support of or in opposition to the 

proposed amendments after the hearing, 

as well as file exceptions to any 

recommended decision that may be 

issued. Finally, any proposed 

amendments must be approved in a 

grower referendum before they can be 

implemented. 

USDA will hold the public hearing for 

the purposes of: (i) Receiving evidence 

about the economic and marketing 

conditions which relate to the proposed 

amendments of the Order; (ii) 

determining whether there is a need for 

the proposed amendments to the Order; 

(iii) determining if there are other 

alternatives to this program or 

duplicates of the proposed program; and 

(iv) determining whether the proposed 

amendments or appropriate 

modifications thereof will tend to 

effectuate the declared policy of the Act. 

Testimony is invited at the hearing on 

all the proposals and recommendations 

contained in this notification, as well as 

any appropriate modifications or 

alternatives. 

All persons wishing to submit written 

material as evidence at the hearing in 

advance should submit electronic 

copies of such material to LaShawn 

Williams of the Market Development 

Division, Specialty Crops Program, 

AMS, USDA, via email at 

LaShawn.Williams@usda.gov. These 

documents will be published to the 

AMS website at the following location 

https://www.ams.usda.gov/rulesregulations/moa/984-california-walnuts. 

Electronic copies of prepared testimony 

for presentation at the hearing and 

electronic copies of evidentiary exhibits 

and testimony prepared as an exhibit 

should also be made available on the 

day of appearance at the hearing. Any 

requests for preparation of USDA data 

for this rulemaking hearing should be 

made at least 10 days prior to the 

beginning of the hearing. 

From the time the notification of 

hearing is issued until the issuance of a 

final decision in this proceeding, USDA 

employees involved in the decisional 

process are prohibited from discussing 

the merits of the hearing issues on an ex 

parte basis with any person having an 

interest in the proceeding. The 

prohibition applies to employees who 

are or may reasonably be expected to be 

involved in the decisional process of the 

proceeding in the following 

organizational units: Office of the 

Secretary of Agriculture; Office of the 

Administrator, AMS; Office of the 

General Counsel; and the Specialty 

Crops Program, AMS. 

Procedural matters are not subject to 

the above prohibition and may be 

discussed at any time. 

USDA may make other such changes 

to the Order as necessary to conform 

with amendments that may result from 

the hearing, or correct minor 

inconsistencies and typographical 

errors. 

Testimony is invited on the 

recommended proposals to 7 CFR part 

984, or appropriate alternatives or 

modifications to such proposals. 

List of Subjects in 7 CFR Part 984 

Marketing agreements, Nuts, 

Reporting and recordkeeping 

requirements. 

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 984.12 is revised to read as 

follows: 

§ 984.12 Substandard walnuts. 

Substandard walnuts means all 

walnuts (whether inshell or shelled) 

that do not meet the minimum standard 

prescribed for merchantable walnuts 

whenever regulations are in effect 

pursuant to § 984.50. 

■ 3. Section 984.13 is revised to read as 

follows: 

§ 984.13 To handle. 

To handle means to receive, pack, 

sell, consign, transport, or ship (except 

as a common or contract carrier of 

walnuts owned by another person), or in 

any other way to put walnuts, inshell or 

shelled, into the current of commerce 

either within the area of production or 

from such area to any point outside 

thereof, or for a manufacturer or retailer 

within the area of production to 

purchase directly from a grower. 

However, sales and deliveries by a 

grower to handlers, hullers, or other 

processors within the area of production 

shall not, in itself, be considered as 

handling by a grower. The term ‘‘to 

handle’’ shall not include sales and 

deliveries within the area of production 

between handlers. 

■ 4. Section 984.21 is revised to read as 

follows: 

§ 984.21 Handler inventory. 

Handler inventory as of any date 

means all walnuts, inshell or shelled, 

wherever located, then held by a 

handler or for his or her account. 

§§ 984.23 and 984.26 [Removed and 

Reserved] 

■ 5. Lift the stays on §§ 984.23 and 

984.26 and remove and reserve the 

sections. 

■ 6. Section 984.32 is revised to read as 

follows: 

§ 984.32 To certify. 

To certify means the issuance of a 

certification of inspection of walnuts in 

accordance with regulations issued 

pursuant to § 984.50. 

§ 984.33 [Removed and Reserved] 

■ 7. Lift the stay on § 984.33 and remove 

and reserve the section. 


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■ 8. Amend § 984.37 by revising 

paragraphs (b) and (c)(4) to read as 

follows: 

§ 984.37 Nominations. 

* * * * * 

(b) Nominations for handler members 

shall be submitted on ballots mailed by 

the Board to all handlers in their 

respective Districts. All handlers’ votes 

shall be weighted by the weight of 

inshell walnuts handled by each 

handler during the preceding marketing 

year. Each handler in the production 

area may vote for handler member 

nominees and their alternates. However, 

no handler with less than 35% of the 

crop shall have more than one member 

and one alternate member. The person 

receiving the highest number of votes 

for each handler member position shall 

be the nominee for that position. 

(c) * * * 

(4) Nominations for handler members 

representing handlers that do not 

handle 35% or more of the crop shall be 

submitted on ballots mailed by the 

Board to those handlers. The votes of 

these handlers shall be weighted by the 

weight of inshell walnuts handled by 

each handler during the preceding 

marketing year. Each handler in the 

production area may vote for handler 

member nominees and their alternates 

of this paragraph (c)(4). However, no 

handler shall have more than one 

person on the Board either as member 

or alternate member. The person 

receiving the highest number of votes 

for a handler member position of this 

paragraph (c)(4) shall be the nominee for 

that position. 

* * * * * 

■ 9. Amend § 984.48 by: 

■ a. Revising paragraphs (a) 

introductory text and (a)(3); 

■ b. Lifting the stays on paragraphs 

(a)(6) and (7); and 

■ c. Removing paragraphs (a)(6) and (7) 

and redesignating paragraphs (a)(8) and 

(9) as paragraphs (a)(6) and (7), 

respectively. 

The revisions read as follows: 

§ 984.48 Marketing estimates and 

recommendations. 

(a) Each marketing year the Board 

shall hold a meeting, prior to October 

20, for the purpose of recommending to 

the Secretary a marketing policy for 

such year. Each year such 

recommendation shall be adopted by 

the affirmative vote of at least 60% of 

the Board and shall include the 

following: 

* * * * * 

(3) Its estimate of the walnuts in the 

production area; 

* * * * * 

§ 984.49 [Removed and Reserved] 

■ 10. Lift the stay on § 984.49 and 

remove and reserve the section. 

■ 11. Amend § 984.50 by lifting the stay 

on paragraph (e) and revising the 

section to read as follows: 

§ 984.50 Grade, quality, and size 

regulations. 

(a) The Board may recommend, 

subject to the approval of the Secretary, 

regulations that: 

(1) Establish handling requirements 

for particular grades, sizes, or qualities, 

or any combination thereof, of any or all 

varieties or classifications of walnuts 

during any period; 

(2) Establish different handling 

requirements and tolerance limits for 

particular grades, sizes, or qualities, or 

any combination thereof, for different 

market destinations; 

(3) Establish different handling 

requirements for the processing of 

shelled walnuts and the handling 

thereof; and 

(4) Establish inspection and 

certification requirements for the 

purposes of this paragraph (a) and 

paragraph (b) of this section. 

(b) During any period regulations 

issued under this section are in effect, 

no handler shall handle or process 

walnuts into manufactured items or 

products unless they meet the 

applicable requirements under this 

section as evidenced by certification 

acceptable to the Board. 

(c) Regulations issued under this 

section may be amended, modified, 

suspended, or terminated whenever it is 

determined: 

(1) That such action is warranted 

upon recommendation of the Board and 

approval by the Secretary, or other 

available information; or 

(2) That regulations issued under this 

section no longer tend to effectuate the 

declared policy of the Act. 

§§ 984.51 and 984.52 [Removed and 

Reserved] 

■ 12. Remove and reserve §§ 984.51 and 

984.52 

§§ 984.54 and 984.56 [Removed and 

Reserved] 

■ 13. Lift the stays on §§ 984.54 and 

984.56 and remove and reserve the 

sections. 

■ 14. Amend § 984.64 by: 

■ a. Revising the first sentence; and 

■ b. Removing ‘‘(a)’’ and ‘‘(b)’’ in the 

second sentence. 

The revision reads as follows: 

§ 984.64 Disposition of substandard 

walnuts. 

During any period when regulations 

are in effect pursuant to § 984.50, 

substandard walnuts may be disposed of 

only for manufacture into oil livestock 

feed, or such others uses as the Board 

determines to be noncompetitive with 

existing domestic and export markets 

for merchantable walnuts and with 

proper safeguards to prevent such 

walnuts from thereafter entering 

channels of trade in such markets. 

* * * 

§ 984.66 [Removed and Reserved] 

■ 15. Lift the stay on § 984.66 and 

remove and reserve the section. 

§ 984.67 [Amended] 

■ 16. Amend § 984.67 by lifting the stay 

on paragraph (a) and removing and 

reserving paragraph (a). 

■ 17. Amend § 984.69 by lifting the stay 

on paragraph (b) and revising the 

section to read as follows: 

§ 984.69 Assessments. 

(a) Requirement for payment. Each 

handler shall pay the Board, on 

demand, his or her pro rata share of the 

expenses authorized by the Secretary for 

each marketing year. Each handler’s pro 

rata share shall be the rate of assessment 

per inshell pound of walnuts fixed by 

the Secretary times the pounds of 

walnuts received by him or her for his 

or her own account (except as to receipt 

from other handlers on which 

assessments have been paid). At any 

time during or after the marketing year 

the Secretary may increase the 

assessment rate as necessary to cover 

authorized expenses and each handler’s 

pro rata share shall be adjusted 

accordingly. 

(b) Assessment rate. The rate set out 

in this section may be modified by the 

Secretary, based upon a 

recommendation of the Board or other 

available data. 

(c) Late payment. If a handler does not 

pay assessments within the time 

prescribed by the Board, the assessment 

may be increased by a late payment 

charge and/or an interest rate charge at 

amounts prescribed by the Board with 

approval of the Secretary. 

(d) Accounting. If at the end of a 

marketing year the assessments 

collected are in excess of expenses 

incurred, such excess shall be 

accounted for in accordance with one of 

the following: 

(1) If such excess is not retained in a 

reserve, as provided in paragraph (d)(2) 

or (3) of this section, it shall be refunded 

to handlers from whom collected, and 

each handler’s share of such excess 

funds shall be the amount of 

assessments he or she has paid in excess 

of his or her pro rata share of the actual 

expenses of the Board. 


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(2) Excess funds may be used 

temporarily by the Board to defray 

expenses of the subsequent marketing 

year provided each handler’s share of 

such excess shall be made available to 

him or her by the Board within five 

months after the end of the year. 

(3) The Board may carry over such 

excess into subsequent marketing years 

as a reserve: Provided, that funds 

already in reserve do not exceed 

approximately two years’ budgeted 

expenses. In the event that funds exceed 

two marketing years’ budgeted 

expenses, future assessments will be 

reduced to bring the reserves to an 

amount that is less than or equal to two 

marketing years’ budgeted expenses. 

Such reserve funds may be used: 

(i) To defray expenses, during any 

marketing year, prior to the time 

assessment income is sufficient to cover 

such expenses; 

(ii) To cover deficits incurred during 

any year when assessment income is 

less than expenses; 

(iii) To defray expenses incurred 

during any period when any or all 

provisions of this part are suspended; 

and 

(iv) To meet any other such costs 

recommended by the Board and 

approved by the Secretary. 

(e) Advanced assessments and 

commercial loans. To provide funds for 

the administration of the provisions of 

this part during the part of a fiscal 

period when neither sufficient operating 

reserve funds nor sufficient revenue 

from assessments on the current 

season’s certifications are available, the 

Board may accept payment of 

assessments in advance or may borrow 

money from a commercial lending 

institution for such purposes. 

(f) Termination. Any money collected 

from assessments hereunder and 

remaining unexpended in the 

possession of the Board upon 

termination of this part shall be 

distributed in such manner as the 

Secretary may direct. 

■ 18. Section 984.77 is revised to read 

as follows: 

§ 984.77 Verification of reports. 

For the purpose of verifying and 

checking reports filed by handlers or the 

operations of handlers, the Secretary 

and the Board through its duly 

authorized representatives shall have 

access to any premises where walnuts 

and walnut records are held. Such 

access shall be available at any time 

during reasonable business hours. 

Authorized representatives shall be 

permitted to inspect any walnuts held 

and any and all records of the handler 

with respect to matters within the 

purview of this part. Each handler shall 

maintain complete records on the 

receiving, holding, and disposition of 

both inshell and shelled walnuts. Each 

handler shall furnish all labor necessary 

to facilitate such inspections at no 

expense to the Board or the Secretary. 

Each handler shall store all walnuts 

held by him or her in such manner as 

to facilitate inspection and shall 

maintain adequate storage records, 

which will permit accurate 

identification of respective lots and of 

all such walnuts held or disposed of 

theretofore. The Board, with the 

approval of the Secretary, may establish 

any methods and procedures needed to 

verify reports. 

■ 19. Section 984.347 is revised to read 

as follows: 

§ 984.347 Assessment rate. 

An assessment rate shall be fixed at 

$0.125 per inshell pound of walnuts. 

§ § 984.450 and 984.451 [Removed and 

Reserved] 

■ 20. Lift the stays on §§ 984.450(a) and 

(b) and 984.451(c) and remove and 

reserve the sections. 

§ 984.452 [Removed and Reserved] 

■ 21. Remove and reserve § 984.452. 

§ 984.456 [Removed and Reserved] 

■ 22. Lift the stay on § 984.456 and 

remove and reserve the section. 

§ 984.459 [Amended] 

■ 23. Amend § 984.459 by removing and 

reserving paragraph (a)(3). 

§ 984.464 [Removed and Reserved] 

■ 24. Lift the stay on § 984.464(a) and 

remove and reserve the section. 

■ 25. Amend § 984.472 by revising 

paragraph (b) to read as follows: 

§ 984.472 Reports of merchantable 

walnuts, received, shipped, and committed. 

* * * * * 

(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 

walnuts purchased. 

* * * * * 

■ 26. Section 984.476 is revised to read 

as follows: 

§ 984.476 Report of walnut receipts 

produced outside California or the United 

States. 

Each handler who receives walnuts 

from outside California or 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. 

Erin Morris, 

Associate Administrator, Agricultural 

Marketing Service. 

[FR Doc. 2022–06521 Filed 3–31–22; 8:45 am] 

BILLING CODE P 

FEDERAL ELECTION COMMISSION 

11 CFR Parts 104, 109, 110, and 114 

[NOTICE 2022–08] 

Independent Spending by 

Corporations, Labor Organizations, 

Foreign Nationals, and Certain Political 

Committees (Citizens United) 

AGENCY: Federal Election Commission. 

ACTION: Notice of disposition of 

petitions for rulemaking. 

SUMMARY: The Commission announces 

its disposition of two Petitions for 

Rulemaking filed on June 19 and June 

22, 2015. The Petitions asked the 

Commission to revise existing 

regulations and issue new regulations 

concerning: Disclosure of certain 

financing information regarding 

independent expenditures and 

electioneering communications, 

election-related spending by foreign 

nationals; solicitations of corporate and 

labor organization employees and 

members; and the independence of 

expenditures made by independentexpenditure-only political committees 

and accounts. Because there were not 

four affirmative votes in support of the 

Petitions, the Commission is not 

initiating a rulemaking. 

DATES: April 1, 2022. 

FOR FURTHER INFORMATION CONTACT: Mr. 

Robert M. Knop, Assistant General 

Counsel, or Ms. Heather Filemyr, 

Attorney, 1050 First Street NE, 

Washington, DC 20463, (202) 694–1650 

or (800) 424–9530. 

SUPPLEMENTARY INFORMATION: On June 

19, 2015, the Federal Election 

Commission received a Petition for 


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