`[Federal Register Volume 61, Number 124 (Wednesday, June 26, 1996)]
[Rules and Regulations]
[Pages 32917-32922]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-16304]



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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 981

[Docket No. A0-214-A7; FV-93-981-1]


Almonds Grown in California; Order Amending the Marketing Order

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: This final rule amends the marketing order (order) for 
California almonds. The amendments change order provisions regarding: 
five existing definitions in the order; Almond Board of California 
(Board) nomination procedures, terms of office, qualification 
procedures, eligibility requirements, voting and tenure requirements; 
modifying creditable advertising provisions; revising volume control 
procedures; requiring handlers to maintain records in the State of 
California; authorizing interest or late payment charges on assessments 
paid late; providing for periodic continuance referenda; and making 
necessary conforming changes. These changes were favored by California 
almond producers in a mail referendum. The amendments will improve the 
administration, operation and functioning of the California almond 
marketing order program.

EFFECTIVE DATE: June 27, 1996.

FOR FURTHER INFORMATION CONTACT: Kathleen M. Finn, Marketing 
Specialist, Marketing Order Administration Branch, Fruit and Vegetable 
Division, AMS, USDA, room 2523-S, P.O. Box 96456, Washington, D.C. 
20090-6456, telephone: (202) 720-1509 or Fax (202) 720-5698; or Martin 
Engeler, Assistant Officer-in-Charge, California Marketing Field 
Office, Marketing Order Administration Branch, Fruit and Vegetable 
Division, AMS, USDA, 2202 Monterey Street, suite 102-B, Fresno, 
California 93721; (209) 487-5901 or FAX (209) 487-5906.

SUPPLEMENTARY INFORMATION: Prior documents in this proceeding: Notice 
of Hearing issued on August 3, 1993, and published in the Federal 
Register on August 17, 1993 (58 FR 43565). Recommended Decision and 
Opportunity to File Written Exceptions issued on March 22, 1995, and 
published in the Federal Register on April 6, 1995 (60 FR 17466). 
Secretary's Decision and Referendum Order issued October 23, 1995, and 
published in the Federal Register on October 30, 1995 [60 FR 55213].

Preliminary Statement

    This administrative 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.
    This rule has been reviewed under Executive Order 12778, Civil 
Justice Reform. This action is not intended to have a retroactive 
effect. This rule will not preempt any State or local laws, 
regulations, or policies, unless they present an irreconcilable 
conflict with this action.
    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 the date of the entry of the ruling.
    The final rule was formulated on the record of a public hearing 
held in Modesto, California, on November 3, 4 and 5, 1993, to consider 
the proposed amendment of Marketing Order No. 981, regulating the 
handling of almonds grown in California, hereinafter referred to as the 
``order.'' Notice of the Hearing was published in the August 17, 1993, 
issue of the Federal Register (58 FR 43565).
    The hearing was held pursuant to the provisions of the Agricultural 
Marketing Agreement Act of 1937, as amended (7 U.S.C. 601 et seq.), 
hereinafter referred to as the Act, and the applicable rules of 
practice and procedure governing proceedings to formulate marketing 
agreements and marketing orders (7 CFR part 900). The Notice of Hearing 
contained several amendment proposals submitted by the Board, which is 
responsible for local administration of the program, and by five 
additional persons.
    The Board's proposals pertained to: (1) Increasing its membership 
by two positions and changing Board nomination, selection, and 
operation procedures; (2) changing the term of office of its members 
from one to three years, and limiting the tenure of Board members; (3) 
changing the definitions of ``cooperative handler,'' ``to handle,'' 
``settlement weight,'' ``crop year'' and ``trade demand''; (4) 
requiring handlers of California almonds to maintain program records in 
the State of California; (5) changing the advertising assessment credit 
program to allow credit for certain promotion costs incurred by 
handlers not previously authorized; (6) authorizing handlers to pay 
interest and/or late payment charges for past due assessments; (7) 
providing for continuance referenda every five years; (8) requiring 
handlers to submit grower lists to the Board; and (9) allowing multi-
year contracting.
    Five persons submitted additional proposals related to continuance 
referenda, Board composition and nomination procedures, organic 
almonds, regulatory provisions, advertising and promotion, assessments, 
compliance audits, the definition of grower, and research and reserve 
operations.
    The Fruit and Vegetable Division, Agricultural Marketing Service 
(AMS), U.S. Department of Agriculture (USDA), proposed making such 
changes as are necessary to the order so that all of its provisions 
conform with the proposed amendment. USDA also proposed that 
continuance referenda be conducted on a periodic basis consistent with 
USDA's policy guidelines.
    Upon the basis of evidence introduced at the hearing and the record 
thereof, the Administrator of the Agricultural Marketing Service (AMS) 
on March 22, 1995, filed with the Hearing Clerk, Department of 
Agriculture, a Recommended Decision and Opportunity to File Written 
Exceptions thereto by May 8, 1995. Four exceptions were filed.
    A Secretary's Decision and Referendum Order was issued on

[[Page 32918]]

October 23, 1995, directing that a referendum be conducted during the 
period January 8 through February 2, 1996, among producers of 
California almonds to determine whether they favored the proposed 
amendments to the order. In the referendum, 19 of the amendment 
proposals were favored by more than two-thirds of the producers voting 
in the referendum by number and volume.
    Four of the amendment proposals failed to receive the two-thirds 
majority required for approval. They are: (1) Increase the Board 
representation from 10 to 12 members, increase the quorum size to eight 
members and specify the number of votes required to pass actions based 
on the number of members present, increase the required number of votes 
needed to recommend saleable and reserve percentages to the Secretary 
from six to eight, and require 10 affirmative votes when voting by 
methods other than at assembled meetings; (2) authorize the Board, with 
the approval of the Secretary, to reapportion grower and/or handler 
member representation on the Board based on the proportionate amounts 
of almonds handled by different segments of the industry in the event 
industry structure changes in future years; (3) authorize the Board, 
with approval of the Secretary, to exempt certified organic almonds 
from assessments used for marketing promotion; and (4) exempt from 
reserve requirements, that part of the crop which is sold as 
``certified organic almonds'' under standards established by the 
Organic Foods Production Act of 1990. Since these amendments failed to 
obtain the two-thirds requirement, they are not contained in this 
document.
    In addition, USDA has made modifications to sections 981.32, 981.33 
and 981.40 regarding committee nominations, tenure and voting by mail, 
telegram, fax or other electronic means. These modifications were 
necessary because the amendment to increase Board membership failed.
    The amendment to stagger terms of office for Board members passed 
in the referendum. The amendatory language set forth staggered terms 
for a 12-member Board. However, the rationale for staggered terms was 
not specifically related to a 12-member Board. Modifications were made 
to Secs. 981.32 and 981.33 to base staggered terms of office on a 10-
member Board.
    The amendment to authorize voting by mail, telegram, fax or other 
electronic means passed in the referendum and included a provision that 
at least 10 members must vote in favor of its passage or the 
proposition would be defeated. This number was based on a 12-member 
Board. The record evidence indicated that requiring unanimous favorable 
decisions to pass actions by these methods was burdensome to the Board 
and delays and disruptions could be avoided by alleviating this 
requirement. The USDA modification to Sec. 981.40 addresses this 
concern by requiring eight affirmative votes to pass a Board action.
    Finally, USDA has made an additional conforming change to section 
981.73 of the order. This section pertains to reports filed by handlers 
and when they are due to the Board. The conforming change will change 
the last reporting date from July 15 to August 15 and change the 
report's ending date from June 30 to July 31. Since the crop year will 
be changed in this formal rulemaking proceeding from July 1 to August 
1, the third reporting period specified in the order should pertain to 
the end of the crop year. There is no additional burden anticipated on 
handlers in making this change.
    The amended marketing agreement was subsequently mailed to all 
California almond handlers in the production area for their approval. 
The marketing agreement was not approved by almond handlers 
representing 50 percent or more of the volume of almonds handled by all 
handlers during the representative period of July 1, 1994, through June 
30, 1995.

Small Business Considerations

    In accordance with the provisions of the Regulatory Flexibility Act 
(RFA) (5 U.S.C. 601 et seq.), the AMS has determined that this action 
will not have a significant economic impact on a substantial number of 
small entities. Small agricultural service firms, which include 
handlers regulated under this order, have been defined by the Small 
Business Administration (SBA) (13 CFR 121.601) as those having annual 
receipts of less than $5,000,000. Small agricultural producers are 
defined as those having annual receipts of less than $500,000.
    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 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 the RFA and the Act have small entity orientation 
and compatibility. Interested persons were invited to present evidence 
at the hearing on the probable impact that the proposed amendments to 
the order would have on small businesses.
    During the 1993-94 crop year, approximately 115 handlers were 
regulated under Marketing Order No. 981. In addition, there are about 
7,000 producers of almonds in the production area. The Act requires the 
application of uniform rules on regulated handlers.
    The amendments to the order include changes to five definitions in 
the order. These definitions are cooperative handler, to handle, 
settlement weight, crop year, and trade demand. The changes to the 
definitions are intended to make them consistent with current industry 
practices. They are designed to enhance the administration and 
functioning of the marketing order to the benefit of the industry.
    The change to the nomination procedures will require Board nominees 
to be nominated by January 20 rather than April 20 as currently 
provided. This will ensure that the new Board is seated prior to 
meetings where important decisions are made for the following year and 
will allow the Board to function more efficiently.
    The change to the Board members' term of office from one year to 
three year staggered terms allows more continuity on the Board. This 
will allow the Board to focus more on long-term strategic goals and 
develop long-term approaches to problems in the industry.
    The amendment to require those persons nominated to the Board to 
qualify prior to their selection to the Board is an administrative 
change. This change allows the selection process to take place in a 
more timely manner.
    The amendment to add tenure requirements for Board members allows 
more persons the opportunity to serve as members on the Board. It will 
provide opportunity for new ideas and approaches to issues that the 
Board addresses each year.
    The amendment to the creditable advertising provisions expands the 
promotional activities for which handlers may receive Credit-Back from 
their assessments. This will allow the Board to increase program 
flexibility for participating handlers.
    The amendment to allow the settlement weight for unshelled almonds 
to be determined on the basis of representative samples will be more 
consistent with current industry practices.
    The amendment to require handlers to maintain records in the State 
of California will improve the Board's administration of the program. 
It will also allow the Board to have the records available to them for 
compliance purposes. It is not expected that any

[[Page 32919]]

additional costs will be incurred by handlers to comply with this 
amendment.
    The amendment to authorize interest and/or late payment charges on 
assessments paid late encourages handlers to pay their assessments on 
time. Assessments not paid promptly add an undue burden on the Board 
because the Board has ongoing projects and programs funded by 
assessments that are functioning throughout the year. This change is 
consistent with standard business practices and there will be no 
significant economic burden on small or large entities because the 
increase in prompt payments will economically benefit the Board and 
handlers.
    The amendment to provide for periodic continuance referenda allows 
growers the opportunity to vote on whether to continue the operation of 
the almond marketing order.
    The amendment to authorize handlers to transfer their reserve 
obligation to other handlers helps facilitate the operation of the 
reserve program by providing handlers more flexibility.
    All these changes are designed to enhance the administration and 
functioning of the marketing order to the benefit of the industry. 
Accordingly, AMS has determined that the proposed revisions of the 
order will not have a significant economic impact on a substantial 
number of small entities.
    In compliance with Office of Management and Budget (OMB) 
regulations (5 CFR part 1320) which implement the Paperwork Reduction 
Act of 1995 (44 U.S.C. Chapter 35), any reporting and recordkeeping 
requirements that may result from these amendments will be submitted to 
OMB for approval.

Order Further Amending the Order Regulating the Handling of Almonds 
Grown in California

Findings and Determinations

    The findings and determinations hereinafter set forth are 
supplementary and in addition to the findings and determinations 
previously made in connection with the issuance of the order; and all 
of said previous findings and determinations are hereby ratified and 
affirmed, except insofar as such findings and determinations may be in 
conflict with the findings and determinations set forth herein.
    (a) Findings and Determinations Upon the Basis of the Hearing 
Record. Pursuant to the provisions of the Agricultural Marketing 
Agreement Act of 1937, as amended (7 U.S.C. 601 et seq.), and 
applicable rules of practice and procedure effective thereunder (7 CFR 
part 900), a public hearing was held upon the amendments to Marketing 
Order No. 981 (7 CFR part 981), regulating the handling of almonds 
grown in California.

Upon the basis of the evidence introduced at such hearing and the 
record thereof, it is found that:

    (1) The order, as amended, and hereby further amended, and all of 
the terms and conditions thereof, will tend to effectuate the declared 
policy of the Act;
    (2) The order, as amended, as hereby further amended, regulates the 
handling of almonds grown in the production area in the same manner as, 
and is applicable only to persons in the respective classes of 
commercial and industrial activity specified in the marketing order 
upon which a hearing has been held;
    (3) The order, as amended, as hereby further amended, is limited in 
application to the smallest regional production area which is 
practicable, consistent with carrying out the declared policy of the 
Act, and the issuance of several orders applicable to subdivisions of 
the production area would not effectively carry out the declared policy 
of the Act; and
    (4) All handling of almonds grown in the production area is in the 
current of interstate or foreign commerce or directly burdens, 
obstructs, or affects such commerce.
    (b) Additional findings. It is necessary and in the public interest 
to make these order amendments effective one day after publication.
    A later effective date would unnecessarily delay the implementation 
of the order amendments and the improvement in operation of the 
marketing order program. The Board, producers, and handlers need as 
much time as possible to make plans to implement the amended order and 
discuss any needed changes to the regulations and Board operating 
procedures.
    In view of the foregoing, it is hereby found and determined that 
good cause exists for making these order amendments effective one day 
after publication, and that it would be contrary to the public interest 
to delay the effective date of these order amendments for 30 days after 
publication in the Federal Register (Sec. 553(d), Administrative 
Procedure Act; 5 U.S.C. 551-559).
    (c) Determinations. It is hereby determined that:
    (1) Handlers (excluding cooperative associations of producers who 
are not engaged in processing, distributing, or shipping almonds 
covered by the said order, as amended, as hereby further amended) who, 
during the period July 1, 1994, through June 30, 1995, handled 50 
percent or more of the volume of such almonds covered by said order, as 
amended, and as hereby further amended, have not signed an amended 
marketing agreement;
    (2) The issuance of this amendatory order, further amending the 
aforesaid order, is favored or approved by at least two-thirds of the 
producers who participated in a referendum on the question of approval 
and who, during the period July 1, 1994, through June 30, 1995 (which 
has been deemed to be a representative period), have been engaged 
within the California production area in the production of such almonds 
for fresh market.
    (3) In the absence of a signed marketing agreement, the issuance of 
this amendatory order is the only practical means pursuant to the 
declared policy of the Act of advancing the interests of producers of 
almonds in the production area.

Order Relative to Handling

    It is therefore ordered, That on and after the effective date 
hereof, all handling of almonds grown in California, shall be in 
conformity to, and in compliance with, the terms and conditions of the 
said order as hereby further amended as follows:
    The provisions of the proposed marketing order amendments further 
amending the order contained in the Recommended Decision issued by the 
Administrator on March 22, 1995, and published in the Federal Register 
on April 6, 1995 (60 FR 17466) and in the Secretary's Decision issued 
on October 23, 1995, and published in the Federal Register on October 
30, 1995 (60 FR 55213), shall be and are the terms and provisions of 
this order further amending the order, and are set forth in full 
herein.

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. Section 981.14 is revised to read as follows:

[[Page 32920]]

Sec. 981.14  Cooperative handler.

    Cooperative handler means any handler as defined in Sec. 981.13 of 
this Subpart which qualifies for treatment as a nonprofit cooperative 
association as defined in Section 54001, et seq. of the California Food 
and Agricultural Code. The Board, with the approval of the Secretary, 
may modify this definition, if necessary.
    3. Section 981.16 is revised to read as follows:


Sec. 981.16  To handle.

    To handle means to use almonds commercially of own production or to 
sell, consign, transport, ship (except as a common carrier of almonds 
owned by another) or in any other way to put almonds grown in the area 
of production into any channel of trade for human consumption 
worldwide, either within the area of production or by transfer from the 
area of production to points outside or by receipt as first receiver at 
any point of entry in the United States or Puerto Rico of almonds grown 
in the area of production, exported therefrom and submitted for reentry 
or which are reentered free of duty. However, sales or 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.
    4. Section 981.18 is amended by removing the word ``and'' at the 
end of paragraph (b); removing the period and adding ``, and'' at the 
end of paragraph (c); and adding a new paragraph (d) to read as 
follows:


Sec. 981.18  Settlement weight.

* * * * *
    (d) For inedible kernels as defined in Sec. 981.8.
    5. Section 981.19 is revised to read as follows:


Sec. 981.19  Crop year.

    Crop year means the twelve month period from August 1 to the 
following July 31, inclusive. Any new crop almonds harvested or 
received prior to August 1 will be applied to the next crop year for 
marketing order purposes. The first crop year after the implementation 
of this amendment shall be a 13-month period.
    6. Section 981.21 is revised to read as follows:


Sec. 981.21  Trade demand.

    Trade demand means the quantity of almonds (kernelweight basis) 
which commercial distributors and users such as the wholesale, chain 
store, confectionery, bakery, ice cream, and nut salting trades will 
acquire from all handlers during a crop year for distribution 
worldwide.
    7. Section 981.31 is revised to read as follows:


Sec. 981.31  Membership representation.

    Membership of the Board will be determined in the following manner:
    (a) Two members and an alternate for each member shall be selected 
from nominees submitted by each of the following groups designated in 
paragraphs (a)(1) and (2) of this section, or from among other 
qualified persons belonging to such groups:
    (1) Those growers who market their almonds through cooperative 
handlers; and
    (2) Those growers who market their almonds through other than 
cooperative handlers.
    (b) Two members and an alternate for each member shall be selected 
from nominees submitted by each of the following groups designated in 
paragraphs (b) (1) and (2) of this section, or from among other 
qualified persons belonging to such groups:
    (1) Cooperative handlers; and
    (2) All handlers, other than cooperative handlers.
    (c) One member and an alternate shall be selected from nominees 
submitted by each of the following groups designated in paragraphs (c) 
(1) and (2) of this section, or from among other qualified persons 
belonging to such groups:
    (1) The group of cooperative handlers or the group of handlers 
other than cooperative handlers, whichever received for their account 
more than 50 percent of the almonds delivered by all growers as 
determined by December 31 of the then current crop year; and
    (2) Those growers whose almonds were marketed through the handler 
group identified in paragraph (c)(1) of this section.
    8. Section 981.32 is amended by revising paragraph (a) and amending 
paragraph (b)(2) by removing the date ``March 31'' and adding in its 
place the date ``December 31'' to read as follows:


Sec. 981.32  Nominations.

    (a) Method. (1) Each year the terms of office of three of the 
members elected pursuant to Section 981.31 (a) and (b) shall expire, 
except every third year when the term of office for two of those 
members shall expire. Nominees for each respective member and alternate 
member shall be chosen by ballot delivered to the Board. Nominees 
chosen by the Board in this manner shall be submitted by the Board to 
the Secretary on or before February 20 of each year together with such 
information as the Secretary may require. If a nomination for any Board 
member or alternate is not received by the Secretary on or before 
February 20, the Secretary may select such member or alternate from 
persons belonging to the group to be represented without nomination. 
The Board shall mail to all handlers and growers, other than the 
cooperative(s) of record, the required ballots with all necessary 
voting information including the names of incumbents willing to accept 
renomination, and, to such growers, the name of any person proposed for 
nomination in a petition signed by at least 15 such growers and filed 
with the Board on or before January 20. Distribution of ballots shall 
be announced by press release, furnishing pertinent information on 
balloting, issued by the Board through newspapers and other 
publications having general circulation in the almond producing areas.
    (2) Nominees for the positions described in Section 981.31(c) shall 
be handled in the same manner as described in paragraph (a)(1) of this 
section except that those terms of office shall expire annually.
* * * * *
    9. Section 981.33 is revised to read as follows:


Sec. 981.33  Selection and term of office.

    (a) Members and their respective alternates for positions open on 
the Board shall be selected by the Secretary from persons nominated 
pursuant to Sec. 981.32, or, at the discretion of the Secretary, from 
other qualified persons, for a term of office beginning March 1. 
Members and alternates shall continue to serve until their respective 
successors are selected and qualified.
    (b) The term of office of members of the Board shall be for a 
period of three years beginning on March 1 of the years selected except 
where otherwise provided. However, for the initial eight members of the 
Board selected pursuant to this section and to paragraphs (a) and (b) 
of Sec. 981.31, two members shall serve for a term of one year; three 
members shall serve for a term of two years; and three members shall 
serve for a term of three years. For the initial terms of office, at 
the time of nomination under Sec. 981.32, the Board shall make this 
designation by lot. The term of office for the two members selected 
under paragraph (c) of Sec. 981.31 shall always be for a period of one 
year.
    (c) Board members may serve for a total of six consecutive years. 
Members who have served for six consecutive years must leave the Board 
for at least one year before becoming eligible to serve again. A person 
who has served

[[Page 32921]]

less than six consecutive years on the Board may not be nominated to a 
new three year term if his or her total consecutive years on the Board 
at the end of that new term would exceed six years. This limitation on 
tenure shall not include service on the Board prior to implementation 
of this amendment and shall not apply to alternate members.
    10. Section 981.34 is revised to read as follows:


Sec. 981.34  Qualification and acceptance.

    (a) Any person to be selected as a member or alternate of the Board 
shall, prior to such selection, qualify by providing such background 
information as necessary and by advising the Secretary that he/she 
agrees to serve in the position for which nominated. Grower members and 
alternates shall be growers or employees of growers, and handler 
members and alternates shall be handlers or employees of handlers. In 
the event any member or alternate ceases to be qualified for the 
position for which selected, that position shall be deemed vacant.
    (b) The Board, with approval of the Secretary, may establish 
additional eligibility requirements for grower members on the Board.
    11. Section 981.40 is amended by revising paragraph (c) to read as 
follows:


Sec. 981.40  Procedure.

* * * * *
    (c) Voting by mail, telegram, fax or other electronic means. The 
Board may vote by mail, telegram, fax or other electronic means upon 
written notice to all members, or alternates acting in their place, 
including in the notice a statement of a reasonable time, not to exceed 
10 days, in which a vote by mail, telegram, fax or other electronic 
means must be received by the Board for counting. Voting by mail, 
telegram, fax or other electronic means shall not be permitted at any 
assembled meeting of the Board. When a proposition is submitted for 
vote by mail, telegram, fax or other electronic means, at least eight 
members of the Board must vote in favor of its passage or the 
proposition shall be defeated.
* * * * *


Sec. 981.41  [Amended]

    12. In section 981.41, paragraph (c) is amended by removing the 
colon and all text following the words ``15 percent'' in the last 
sentence and adding in its place a period.


Sec. 981.47  [Amended]

    13. Section 981.47 is amended by removing the words ``either 
domestic or'' in the third sentence.
    14. Section 981.49 is amended by removing ``; and'' in paragraph 
(e) and adding a period in its place, by adding ``and'' at the end of 
paragraph (d); by removing paragraph (f) and by revising paragraph (b) 
to read as follows:


Sec. 981.49  Board estimates and recommendations.

* * * * *
    (b) The estimated handler carryover and the estimated reserve 
inventory as of July 31;
* * * * *
    15. Section 981.55 is amended by designating existing undesignated 
text as paragraph (a) and adding a new paragraph (b) to read as 
follows:


Sec. 981.55  Interhandler transfers.

* * * * *
    (b) When salable and reserve percentages are in effect, any handler 
may transfer reserve withholding obligation to other handlers. Terms 
and conditions implementing this provision must be recommended by the 
Board and approved by the Secretary.
    16. Section 981.60 is amended by revising paragraph (b) to read as 
follows:


Sec. 981.60  Determination of kernel weight.

* * * * *
    (b) Almonds for which settlement is made on unshelled weight. The 
settlement weight for unshelled almonds shall be determined on the 
basis of representative samples of unshelled almonds reduced to shelled 
weight.
    17. Section 981.61 is amended by revising the last sentence to read 
as follows:


Sec. 981.61  Redetermination of kernel weight.

    * * * Weights used in such computations for various classifications 
of almonds shall be:
    (a) For unshelled almonds, the kernelweight based on representative 
samples reduced to shelled weight;
    (b) For shelled almonds, the net weight; and
    (c) For shelled almonds used in production of almond products, the 
net weight of such almonds.


Sec. 981.62  [Removed]

    18. Section 981.62 is removed.


Sec. 981.66  [Amended]

    19. Section 981.66 is amended by removing paragraphs (b) and (d), 
redesignating paragraph (c) as paragraph (b), redesignating paragraph 
(e) as paragraph (c), redesignating paragraphs (f) and (g) as 
paragraphs (d) and (e), and by amending newly designated paragraph (c) 
by removing all references to the date ``September 1'' everywhere it 
appears and adding in its place ``December 31''.


Sec. 981.67  [Amended]

    20. Section 981.67 is amended by removing all references to the 
date ``September 1'' and adding in its place ``December 31''.
    21. Section 981.70 is amended by revising the first sentence to 
read as follows:


Sec. 981.70  Records and verification.

    Each handler shall keep records which will clearly show the details 
of his or her receipts of almonds, withholdings, sales, shipments, 
inventories, reserve disposition, advertising and promotion activities, 
as well as other pertinent information regarding his or her operation 
pursuant to the provisions of this part: Provided, that, such records 
shall be kept in the State of California. * * *
    22. A new section 981.76 is added before the undesignated center 
heading ``Expenses and Assessments'' to read as follows:


Sec. 981.76  Handler List of Growers.

    No later than December 31 of each crop year, each handler other 
than a cooperative handler (hereinafter, referred to as independent 
handler) governed by this Subpart shall, upon request, submit to the 
Board a complete list of growers who have delivered almonds to such 
independent handler during that crop year.
    23. Section 981.81 is amended by adding a new paragraph (e) to read 
as follows:


Sec. 981.81  Assessment.

* * * * *
    (e) Any assessment not paid by a handler within a period of time 
prescribed by the Board may be subject to an interest or late payment 
charge or both. The period of time, rate of interest and late payment 
charge shall be as recommended by the Board and approved by the 
Secretary. Subsequent to such approval, all assessments not paid within 
the prescribed period of time shall be subject to an interest or late 
payment charge or both.
    24. Section 981.90 is amended by redesignating paragraphs (b)(2) 
and (b)(3) as paragraphs (b)(3) and (b)(4) and by amending newly 
designated paragraph (b)(3) by removing the date ``June 1'' and adding 
in its place ``July 1'' and adding a new paragraph (b)(2) to read as 
follows:


Sec. 981.90  Effective time, suspension, or termination.

* * * * *
    (b) * * *

[[Page 32922]]

    (2) The Secretary shall conduct a referendum as soon as practical 
after the end of the fiscal year ending two years after implementation 
of this amendment, and at such time every fifth year thereafter, to 
ascertain whether continuation of the order is favored by growers who 
have been engaged in the production of almonds for market within the 
State of California during the current crop year.
* * * * *


Sec. 981.467  [Amended]

    25. In section 981.467, paragraph (a) is amended by removing the 
date ``July 1'' and adding in its place ``August 1'' and by removing 
the words ``export or'' and ``or both,'' from the second sentence in 
paragraph (a).


Sec. 981.472  [Amended]

    26. In section 981.472, paragraph (a) is amended by removing the 
dates ``July 1 to August 31'' and adding in its place ``August 1 to 
August 31.''


981.73  [Amended]

    27. Section 981.73 is amended by removing the date ``July 15'' and 
adding in its place ``August 15'' and by removing the date ``June 30'' 
and adding in its place ``July 31''.

    Dated: June 19, 1996.
Michael V. Dunn,
Assistant Secretary, Marketing and Regulatory Programs.
[FR Doc. 96-16304 Filed 6-25-96; 8:45 am]
BILLING CODE 3410-02-P`