[Federal Register Volume 61, Number 186 (Tuesday, September 24, 1996)]
[Rules and Regulations]
[Pages 49954-49955]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-24455]


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DEPARTMENT OF AGRICULTURE
7 CFR Part 981

[Docket No. FV96-981-2 FIR]


Almonds Grown in California; 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 established an assessment rate for the Almond Board of California 
(Board) under Marketing Order No. 981 for the 1996-97 and subsequent 
crop years. The Board is responsible for local administration of the 
marketing order which regulates the handling of almonds grown in 
California. Authorization to assess almond handlers enables the Board 
to incur expenses that are reasonable and necessary to administer the 
program.

EFFECTIVE DATE: July 1, 1996.

FOR FURTHER INFORMATION CONTACT: Tershirra Yeager, Marketing Assistant, 
Marketing Order Administration Branch, Fruit and Vegetable Division, 
AMS, USDA, P.O. Box 96456, room 2522-S, Washington, DC 20090-6456, 
telephone (209) 720-5127, or FAX # (202) 720-5698; or Kathleen M. Finn, 
Marketing Specialist, Marketing Order Administration Branch, Fruit and 
Vegetable Division, AMS, USDA, P.O. Box 96456, room 2522-S, Washington, 
DC 20090-6456, telephone (202) 720-1509 or FAX # (202) 720-5698. Small 
businesses may request information on 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, D.C. 20090-6456; telephone: (202) 720-2491, Fax# (202) 720-
5698.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing 
Agreement and Order No. 981 (7 CFR part 981), regulating the handling 
of almonds 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 is issuing this rule in conformance with Executive 
Order 12866.
    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. Under the marketing order now in effect, California 
almonds are subject to assessments. Funds to administer the order are 
derived from such assessments. It is intended that the assessment rate 
as issued herein will be applicable to all assessable almonds beginning 
July 1, 1996, and continuing until amended, suspended or terminated. 
This 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 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.
    Pursuant to the requirements set forth in the Regulatory 
Flexibility Act (RFA), 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

[[Page 49955]]

behalf. Thus, both statutes have small entity orientation and 
compatibility.
    There are approximately 7,000 producers of California almonds under 
this marketing order, and approximately 115 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 almond producers and handlers may be classified as small 
entities.
    The California almond marketing order provides authority for the 
Board, with the approval of the Department, to formulate an annual 
budget of expenses and collect assessments from handlers to administer 
the program. The members of the Board are producers and handlers of 
California almonds. 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 assessment rate is 
formulated and discussed in a public meeting. Thus, all directly 
affected persons have had an opportunity to participate and provide 
input.
    The Board met on May 10, 1996, and unanimously recommended 1996-97 
crop year expenditures of $6,426,500 and an assessment rate of $0.01 
per pound of almonds. In comparison, last year's budgeted expenditures 
were $4,952,591 with the assessment rate of $0.75 per pound. Major 
expenditures recommended by the Board for the 1996-97 crop year include 
$3,333,500 for information and research, $731,534 for salaries, 
$660,500 for international programs, $558,131 for production research, 
$97,470 for travel, and $91,160 for crop estimate. Budgeted expenses 
for these items in 1995-96 were $2,358,000, $598,251, $150,000, 
$512,650, $75,000, and $90,736, respectively.
    The assessment rate recommended by the Board was derived by 
dividing anticipated expenses by expected receipts of California 
almonds. Almond shipments for the year are estimated at 504.4 million 
pounds which should provide $5.044 million in assessment income. Income 
derived from handler assessments, interest, a production research 
conference, and the Market Access Program, along with funds derived 
from the Board's authorized reserve, will be adequate to cover budgeted 
expenses. Any unexpended funds from the 1996-97 crop year may be 
carried over to cover expenses during the first four months of the 
1997-98 crop year.
    An interim final rule regarding this action was published in the 
July 31, 1996, issue of the Federal Register (61 FR 39841). That rule 
provided for a 30-day comment period. No comments were received.
    While this rule may impose some additional costs on handlers, the 
costs are in the form of uniform assessments on all 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 AMS has determined that this rule will 
not have a significant economic impact on a substantial number of small 
entities.
    The assessment rate established in this rule will continue in 
effect indefinitely unless modified, suspended, or terminated by the 
Secretary upon recommendation and information submitted by the Board or 
other available information.
    Although this assessment rate is effective for an indefinite 
period, the Board will continue to meet prior to or during each fiscal 
period to recommend a budget of expenses and consider recommendations 
for modification of the assessment rate. The dates and times of Board 
meetings are available from the Board or the Department. Board meetings 
are open to the public and interested persons may express their views 
at these meetings. The Department will evaluate Board recommendations 
and other available information to determine whether modification of 
the assessment rate is needed. Further rulemaking will be undertaken as 
necessary. The Board's 1996-97 budget and those for subsequent fiscal 
periods will be reviewed and, as appropriate, approved by the 
Department.
    After consideration of all relevant material 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 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 crop year began on July 1, 
1996, and the marketing order requires that the rate of assessment for 
the crop year apply to all assessable California almonds handled during 
the crop year; (3) handlers are aware of this action which was 
unanimously recommended by the Board at a public meeting and is similar 
to other assessment rate actions issued in past years; and (4) an 
interim final rule was published on this action, providing a 30-day 
comment period, and no comments were received.

List of Subjects in 7 CFR Part 981

    Almonds, Marketing agreements, Nuts, Reporting and recordkeeping 
requirements.

PART 981--ALMONDS GROWN IN CALIFORNIA

    Accordingly, the interim final rule amending 7 CFR Part 981 which 
was published at 61 FR 39841 on July 31, 1996, is adopted as a final 
rule without change.

    Dated: September 16, 1996.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 96-24455 Filed 9-23-96; 8:45 am]
BILLING CODE 3410-02-P