[Federal Register Volume 59, Number 246 (Friday, December 23, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-31611]


[[Page Unknown]]

[Federal Register: December 23, 1994]


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DEPARTMENT OF AGRICULTURE
7 CFR Part 984

[Docket No. FV94-984-1FIR]

 

Walnuts Grown in California; Expenses and 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 
that authorized expenses and established an assessment rate that will 
generate funds to pay those expenses. Authorization of this budget 
enables the Walnut Marketing Board (Board) to incur expenses that are 
reasonable and necessary to administer the program. Funds to administer 
this program are derived from assessments on handlers.

EFFECTIVE DATE: August 1, 1994, through July 31, 1995.

FOR FURTHER INFORMATION CONTACT: Martha Sue Clark, Marketing Order 
Administration Branch, Fruit and Vegetable Division, AMS, USDA, P.O. 
Box 96456, room 2523-S, Washington, DC 20090-6456, telephone 202-720-
9918, or Richard P. Van Diest, California Marketing Field Office, Fruit 
and Vegetable Division, AMS, USDA, Suite 102B, 2202 Monterey Street, 
Fresno, CA 93721, telephone 209-487-5901.

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. 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 of Agriculture is issuing this rule in conformance 
with Executive Order 12866.
    This rule has been reviewed under Executive Order 12778, Civil 
Justice Reform. Under the provisions of the marketing order now in 
effect, California walnuts are subject to assessments. It is intended 
that the assessment rate as issued herein will be applicable to all 
assessable walnuts handled during the 1994-95 marketing year, which 
began August 1, 1994, and ends July 31, 1995. This final rule will not 
preempt any State or local laws, regulations, or policies, unless they 
present an irreconcilable conflict with this rule.
    The Act provides that administrative proceedings must be exhausted 
before parties may file suit in court. Under section 608c(15)(A) of the 
Act, any handler subject to an order may file with 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 requesting 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 in equity to review 
the Secretary's ruling not later than 20 days after the date of the 
entry of the ruling.
    Pursuant to the requirements set forth in the Regulatory 
Flexibility Act (RFA), the Administrator of 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 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 California walnuts under 
this marketing order, and approximately 65 handlers. Small agricultural 
producers have been defined by the Small Business Administration (13 
CFR 121.601) as those having annual receipts of 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 budget of expenses for the 1994-95 marketing year was prepared 
by the Walnut Marketing Board, the agency responsible for local 
administration of the marketing order, and submitted to the Department 
for approval. The members of the Board are producers and handlers of 
California walnuts. They are familiar with the Board's needs and with 
the costs of goods and services in their local area and are thus in a 
position to formulate an appropriate budget. The budget was formulated 
and discussed in a public meeting. Thus, all directly affected persons 
have had an opportunity to participate and provide input.
    The assessment rate recommended by the Board was derived by 
dividing anticipated expenses by expected merchantable certifications 
of California walnuts. Because that rate will be applied to the actual 
quantity of certified merchantable walnuts, it must be established at a 
rate that will provide sufficient income to pay the Board's expenses.
    The Board met September 9, 1994, and unanimously recommended a 
1994-95 budget of $2,170,772, $229,125 more than the previous year. 
Budget items for 1994-95 which have increased compared to those 
budgeted for 1993-94 (in parentheses) are: Administrative salaries, 
$101,712 ($101,331), Board expenses, $35,000 ($32,000), office rent, 
$26,419 ($25,704), domestic market research and development, $953,000 
($875,000), walnut production research, $718,302 ($438,488), crop 
survey, $45,000 ($43,000), and crop estimate, $60,000 ($52,000). Items 
which have decreased compared to the amount budgeted for 1993-94 (in 
parentheses) are: Social security and hospital insurance taxes, $8,129 
($9,700), group life, retirement, and medical, $44,370 ($47,485), 
office salaries, $40,740 ($40,771), equipment maintenance and 
warranties, $10,000 ($12,000), furniture, fixtures, and automobiles, 
$5,000 ($20,000), and production research director, $40,000 ($91,068). 
The Board also eliminated funding for export market research and 
development and the reserve for contingencies for which $20,000 and 
$50,000 were recommended last year, respectively. All other items are 
budgeted at last year's amounts.
    The Board also unanimously recommended an assessment rate of 
$0.0111 per kernelweight pound, $0.0021 more than the previous year. 
This rate, when applied to anticipated shipments of 198,000,000 
kernelweight pounds of merchantable walnuts, will yield $2,197,800 in 
assessment income, which will be adequate to cover budgeted expenses. 
Unexpended funds may be used temporarily during the first five months 
of the subsequent marketing year, but must be made available to the 
handlers from whom collected within that period.
    An interim final rule was published in the Federal Register on 
October 31, 1994 (59 FR 54375). That interim final rule added 
Sec. 989.345 to authorize expenses and establish an assessment rate for 
the Committee. That rule provided that interested persons could file 
comments through November 30, 1994. No comments were received.
    While this action will impose some additional costs on handlers, 
the costs are in the form of uniform assessments on 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 Administrator of the AMS has determined 
that this action will not have a significant economic impact on a 
substantial number of small entities.
    After consideration of all relevant matter presented, including the 
information and recommendations 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.
    It is further found that good cause exists for not postponing the 
effective date of this action until 30 days after publication in the 
Federal Register (5 U.S.C. 553) because the Committee needs to have 
sufficient funds to pay its expenses which are incurred on a continuous 
basis. The 1994-95 fiscal period began on August 1, 1994. The marketing 
order requires that the rate of assessment for the fiscal period apply 
to all assessable walnuts handled during the fiscal period. In 
addition, handlers are aware of this action which was unanimously 
recommended by the Committee at a public meeting and published in the 
Federal Register as an interim final rule.

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 59 FR 54375 on October 31, 1994, is adopted as a final 
rule without change.

    Dated: December 19, 1994.
Eric M. Forman,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 94-31611 Filed 12-22-94; 8:45 am]
BILLING CODE 3410-02-W