[Federal Register Volume 61, Number 179 (Friday, September 13, 1996)]
[Proposed Rules]
[Pages 48428-48430]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-23456]


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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

7 CFR Part 981

[Docket No. FV-96-981-4PR]


Almonds Grown in California; Interest and Late Payment Charges on 
Past Due Assessments

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This proposal invites comments on implementing interest and 
late payment charges on past due assessments owed under the almond 
marketing order. The marketing order regulates the handling of almonds 
grown in California and is administered locally by the Almond Board of 
California (Board). This rule would allow the Board to implement 
authority contained in the marketing order to impose late payment and 
interest charges for past due assessments owed the Board by handlers, 
and should contribute to the efficient administration of the program.

DATES: Comments must be received by October 15, 1996.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposal. Comments must be sent in triplicate to the 
Docket Clerk, Fruit and Vegetable Division, AMS, USDA, room 2525-S, 
P.O. Box 96456, Washington, DC 20090-6456, Fax # (202) 720-5698. All 
comments should reference the docket number and the date and page 
number of this issue of the Federal Register and will be made available 
for public inspection in the Office of the Docket Clerk during regular 
business hours.

FOR FURTHER INFORMATION CONTACT: Kathleen M. Finn, Marketing 
Specialist, Marketing Order Administration Branch, F&V, AMS, USDA, room 
2523-S, P.O. Box 96456, Washington, DC 20090-6456: telephone: (202) 
720-1509, Fax # (202) 720-5698; or Martin Engeler, California Marketing 
Field Office, Marketing Order Administration Branch, F&V, AMS, USDA, 
2202 Monterey Street, suite 102B, Fresno, California 93721; telephone: 
(209) 487-5901, Fax # (209) 487-5906. Small businesses may request 
information on

[[Page 48429]]

compliance with this regulation by contacting: Jay Guerber, Marketing 
Order Administration Branch, Fruit and Vegetable Division, AMS, USDA, 
P.O. Box 96456, room 2523-S, Washington, DC 20090- 6456; telephone 
(202) 720-2491; Fax # (202) 720-5698.

SUPPLEMENTARY INFORMATION: This proposal is issued under Marketing 
Order No. 981 (7 CFR Part 981), as amended, regulating the handling of 
almonds grown in California, hereinafter referred to as the ``order.'' 
This order is 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 proposal has been reviewed under Executive Order 12988, Civil 
Justice Reform. This rule is not intended to have retroactive effect. 
This proposal 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. 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 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 action 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 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 115 handlers and approximately 7,000 
producers of almonds in the regulated area. Small agricultural service 
firms, which includes handlers, have been defined by the Small Business 
Administration (13 CFR 121.601) as those having annual receipts of less 
than $5,000,000, and small agricultural producers are defined as those 
having annual receipts of less than $500,000. The majority of handlers 
and producers of California almonds may be classified as small 
entities.
    This proposal invites comments on implementing regulations 
concerning collection of assessments under the California almond 
marketing order. This rule would allow the Board to impose interest and 
late payment charges on past due assessment accounts. Although the vast 
majority of handlers are timely in remitting their assessments, there 
are a few who are not. This rule would provide incentive for handlers 
to remit assessments in a timely manner, with the intent of creating a 
fair and equitable process among all industry handlers. It would not 
impose any costs on handlers who pay their assessments on time, and 
should contribute to the efficient administration of the program. 
Therefore, the AMS has determined that this action will not have a 
significant economic effect on a substantial number of small entities. 
Interested persons are invited to submit information on the regulatory 
and informational impacts of this action on small businesses.
    Section 981.81 of the almond marketing order provides authority for 
the Board to assess handlers of California almonds to fund authorized 
activities. This section was recently amended to authorize the Board, 
with the approval of the Secretary, to impose interest and late payment 
charges on past due assessments.
    The Board met on July 24, 1996, and unanimously recommended 
implementing the order authority regarding interest and late payment 
charges. Although most handlers remit assessments in a timely manner, 
historically there have been a few who do not. Those handlers are able 
to reap the benefits of Board programs at the expense of others. In 
addition, they are able to utilize funds for their own use that should 
otherwise be paid to the Board to finance Board programs. In effect, 
this provides handlers with an interest free loan.
    Implementing interest and late payment charges would provide an 
incentive for handlers to pay assessments on time, which would improve 
compliance with the order. It would decrease the number of actions 
taken against handlers failing to pay assessments on time through 
administrative remedies or the Federal courts. These remedies, 
currently the only recourse against handlers who fail to pay 
assessments, can be costly and time consuming and often add to an 
already overburdened legal system. This rule would remove any economic 
advantage gained by those handlers who do not pay on time, thus helping 
to ensure a program that is equitable to all. This is also consistent 
with standard business practices.
    For 1996-97 crop year assessments, the Board recommended interest 
charges of one and one half percent per month for assessments 30 days 
or more late. In addition, assessments remaining unpaid for 60 days 
would be charged a 10 percent late payment charge. For prior crop year 
assessments past due, the Board recommended an interest rate of one and 
one half percent per month and a late payment charge of 20 percent, 
after handlers are provided an initial grace period to come into 
compliance.
    While the Board's recommendation contemplated calculating interest 
and late payment charges from the original invoice date, the Department 
has determined that no interest or late payment charges would accrue 
prior to the effective date of this rule. Interest or late payment 
charges would only be applicable to assessments accrued and billed 
after the effective date of this rule.
    A 30-day comment period is provided to allow interested persons to 
respond to this proposal. All written comments timely received will be 
considered before a final determination is made on this matter.

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 
proposed to be 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. A new Sec. 981.481 is proposed to be added to read as follows:


Sec. 981.481  Interest and late payment charges.

    (a) Pursuant to Sec. 981.81, the Board shall impose an interest 
charge on any handler whose assessment payment has not been received in 
the Board's office, or the envelope containing the payment legibly 
postmarked by the U.S. Postal Service, within 30 days of the invoice

[[Page 48430]]

date shown on the handler's statement. The interest charge shall be a 
rate of one and one half percent per month and shall be applied to the 
unpaid assessment balance for the number of days all or any part of the 
unpaid balance is delinquent beyond the 30 day payment period.
    (b) In addition to the interest charge specified in paragraph (a) 
of this section, the Board shall impose a late payment charge on any 
handler whose payment has not been received in the Board's office, or 
the envelope containing the payment legibly postmarked by the U.S. 
Postal Service, within 60 days of the invoice date. The late payment 
charge shall be 10 percent of the unpaid balance.

    Dated: September 6, 1996.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 96-23456 Filed 9-12-96; 8:45 am]
BILLING CODE 3410-02-P