[Federal Register Volume 60, Number 209 (Monday, October 30, 1995)]
[Rules and Regulations]
[Pages 55178-55179]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-26791]



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DEPARTMENT OF AGRICULTURE
7 CFR Part 984

[Docket No. FV95-984-2IFR]


Walnuts Grown in California; Expenses and Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: This interim final rule authorizes expenditures and 
establishes an assessment rate under Marketing Order No. 984 for the 
1995-96 marketing year. 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.

DATES: Effective August 1, 1995, through July 31, 1996. Comments 
received by November 29, 1995, will be considered prior to issuance of 
a final rule.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this action. Comments must be sent in triplicate to the 
Docket Clerk, Fruit and Vegetable Division, AMS, USDA, P.O. Box 96456, 
room 2523-S, Washington, DC 20090-6456, FAX 202-720-5698. Comments 
should reference the docket number and the date and page number of this 
issue of the Federal Register and will be available for public 
inspection in the Office of the Docket Clerk during regular business 
hours.

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 (Department) is issuing this rule in 
conformance with Executive Order 12866.
    This interim final 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 1995-96 
marketing year, which began August 1, 1995, and ends July 31, 1996. 
This interim 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 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 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 1995-96 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 8, 1995, and unanimously recommended a 
1995-96 budget of $2,280,175, $109,403 more than the previous year. 
Budget items for 1995-96 which have increased compared to those 
budgeted for 1994-95 

[[Page 55179]]
(in parentheses) are: Field travel and related expenses, $17,000 
($13,000), general insurance, $6,800 ($6,400), social security and 
hospital insurance taxes, $9,286 ($8,129), audit, $8,900 ($8,700), 
group life, retirement, and medical, $45,861 ($44,370), office 
salaries, $41,740 ($40,740), office rent, $27,168 ($26,419), office 
supplies and miscellaneous, $20,000 ($15,000), postage, $7,000 
($5,000), furniture, fixtures, and automobiles, $25,000 ($5,000), 
domestic market research and development, $998,000 ($953,000), walnut 
production research, $718,420 ($718,302), crop estimate, $67,000 
($60,000), and $30,000 for the reserve for contingencies, for which no 
funding was recommended last year. Items which have decreased compared 
to the amount budgeted for 1994-95 (in parentheses) are: Administrative 
salaries, $99,000 ($101,712), and production research director, $34,000 
($40,000). All other items are budgeted at last year's amounts.
    The Board also unanimously recommended an assessment rate of 
$0.0116 per kernelweight pound of merchantable walnuts certified, 
$0.0005 more than the previous year. This rate, when applied to 
anticipated shipments of 1,980,000 kernelweight pounds of merchantable 
walnuts, will yield $2,296,800 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.
    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.
    Pursuant to 5 U.S.C. 553, it is also found and determined upon good 
cause that it is impracticable, unnecessary, and contrary to the public 
interest to give preliminary notice prior to putting this rule into 
effect and that good cause exists for not postponing the effective date 
of this action 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 marketing 
year began on August 1, 1995, and the marketing order requires that the 
rate of assessment for the marketing year apply to all assessable 
walnuts handled during the marketing year; (3) handlers are aware of 
this action which was unanimously recommended by the Board at a public 
meeting and similar to other budget actions issued in past years; and 
(4) this interim final rule provides a 30-day comment period, and all 
comments timely received will be considered prior to finalization of 
this action.

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

    1. The authority citation for 7 CFR part 984 continues to read as 
follows:

    Authority: 7 U.S.C. 601-674.

    2. A new Sec. 984.346 is added to read as follows:

    Note: This section will not appear in the Code of Federal 
Regulations.


Sec. 984.346  Expenses and assessment rate.

    Expenses of $2,280,175 by the Walnut Marketing Board are 
authorized, and an assessment rate of $0.0116 per kernelweight pound of 
merchantable walnuts is established for the marketing year ending July 
31, 1996. 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.

    Dated: October 23, 1995.
Sharon Bomer Lauritsen,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 95-26791 Filed 10-27-95; 8:45 am]
BILLING CODE 3410-02-P