[Federal Register Volume 64, Number 2 (Tuesday, January 5, 1999)]
[Proposed Rules]
[Pages 430-432]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-34]


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 Proposed Rules
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
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  Federal Register / Vol. 64, No. 2 / Tuesday, January 5, 1999 / 
Proposed Rules  

[[Page 430]]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 981

[Docket No. FV99-981-1 PR]


Almonds Grown in California; Revision of Reporting Requirements

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This proposal invites comments on a revision to the 
administrative rules and regulations of the California almond marketing 
order (order) pertaining to reporting requirements. This rule also 
announces the Agricultural Marketing Service's (AMS) intention to 
request a revision to the currently approved information collection 
requirements issued under the order. The almond marketing order 
regulates the handling of almonds grown in California and is 
administered locally by the Almond Board of California (Board). Under 
the terms of the order, almond handlers are required to report to the 
Board, on ABC Form 1, the total adjusted kernel weight of almonds 
received by them for their own account within seven prescribed 
reporting periods per year. This rule would change the reporting 
procedures to require handlers to report this information to the Board 
monthly, or 12 times per year. Additional, more accurate and timely 
information would thus be available to the Board and industry, 
facilitating improved decision making and program administration.

DATES: Comments must be received by March 8, 1999.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposal. Comments must be sent to the Docket Clerk, 
Fruit and Vegetable Programs, AMS, USDA, room 2525-S, P.O. Box 96456, 
Washington, DC 20090-6456; Fax: (202) 205-6632; or E-mail: 
[email protected]. 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: Martin Engeler, Assistant Regional 
Manager, 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; or George Kelhart, Technical Advisor, Marketing Order 
Administration Branch, Fruit and Vegetable Programs, AMS, USDA, room 
2525-S, P.O. Box 96456, Washington, DC 20090-6456; telephone: (202) 
690-3919, Fax: (202) 205-6632. Small businesses may request information 
on complying with this regulation, or obtain a guide on complying with 
fruit, vegetable, and specialty crop marketing agreements and orders by 
contacting Jay Guerber, Marketing Order Administration Branch, Fruit 
and Vegetable Programs, AMS, USDA, P.O. Box 96456, room 2525-S, 
Washington, DC 20090-6456; telephone (202) 720-2491, Fax: (202) 205-
6632, or E-mail: Jay__N__G[email protected]. You may view the marketing 
agreement and order small business compliance guide at the following 
web site: http://www.ams.usda.gov/fv/moab.html.

SUPPLEMENTARY INFORMATION: This proposal is issued under Marketing 
Order No. 981, as amended (7 CFR part 981), regulating the handling of 
almonds grown in California, hereinafter referred to as the ``order.'' 
The marketing 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 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. 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.
    This proposal invites comments on a revision to the administrative 
rules and regulations pertaining to reporting requirements under the 
California almond order. This rule would change the reporting 
procedures to require handlers to report their receipts of almonds from 
growers on a monthly basis rather than seven times per year as 
currently prescribed. This proposal was unanimously recommended by the 
Board at a meeting on September 16, 1998.
    Section 981.72 of the order provides authority for the Board to 
require handlers to report to the Board their receipts of almonds from 
growers. Section 981.472 of the order's administrative rules and 
regulations currently requires that each handler report to the Board, 
on ABC Form 1, the total adjusted kernel weight of almonds, by variety, 
received by it for its own account within seven prescribed reporting 
periods per year. The report must be submitted to the Board by the 5th 
calendar day after the close of the following applicable periods--
August 1 to August 31; September 1 to September 30; October 1 to 
October 31; November 1 to November 30; December 1 to December 31; 
January 1 to March 31; and April 1 to July 31.
    The crop year under the almond order runs from August 1 through 
July 31 of the following year. Most almonds are harvested by growers 
and received by handlers during the fall months. Thus, handlers have 
been required to report their almond receipts to the Board on a monthly 
basis from August through December, and then just twice for the 
remainder of the crop year.

[[Page 431]]

    California almond production has increased significantly in recent 
years. Between 1983 and 1992, the average size of the almond crop was 
about 465 million pounds. Since 1992, the average size of the almond 
crop has grown to about 570 million pounds. With the increase in crop 
size, more almonds than anticipated are being received by handlers from 
January through July. Information collected from handlers on the amount 
of almonds received reflects crop size which provides a basis for the 
industry's marketing decisions. Thus, the Board recommended that 
handlers be required to report the amount of almonds received on a 
monthly basis, or 12 times per year. This reporting change would 
provide the Board with additional, more accurate and timely information 
which would facilitate improved decision making and program 
administration. Appropriate changes would be made to Sec. 981.472 of 
the order's administrative rules and regulations.
    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. Accordingly, AMS has 
prepared this initial regulatory flexibility analysis.
    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 of California almonds who are 
subject to regulation under the order and approximately 7,000 almond 
producers in the regulated area. Small agricultural service firms have 
been defined by the Small Business Administration (13 CAR 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.
    Currently, about 58 percent of the handlers ship under $5,000,000 
worth of almonds and 42 percent ship over $5,000,000 worth on an annual 
basis. In addition, based on acreage, production, and grower prices 
reported by the National Agricultural Statistics Service, and the total 
number of almond growers, the average annual grower revenue is 
approximately $156,000. In view of the foregoing, it can be concluded 
that the majority of handlers and producers of California almonds may 
be classified as small entities.
    This rule would revise Sec. 981.472 of the order's administrative 
rules and regulations to specify that handlers must submit reports 
concerning receipts of almonds, on ABC Form 1, on a monthly basis, as 
opposed to seven times per year. Additional, more accurate and timely 
information would thus be available to the Board and industry, 
facilitating improved decision making and program administration.
    Requiring handlers to submit this information monthly would impose 
an additional reporting burden on both small and large handlers. It is 
estimated that it takes a handler 15 minutes to complete a receipt 
report, or ABC Form 1. Currently, handlers must submit seven such 
reports annually creating an estimated total burden per handler of 1.75 
hours per year, or a total industry burden of approximately 201.25 
hours per year. Requiring handlers to submit five additional reports 
per year would create an additional burden per handler of 1.25 hours 
per year, or an additional total industry burden of approximately 
143.75 hours per year. Although this action would create an additional 
burden on California almond handlers, the benefits of collecting 
additional, more accurate and timely information far outweigh the 
estimated increased reporting burden. The Board would be able to 
utilize this information to make improved marketing decisions. This 
rule would not place any additional burden on almond growers. Finally, 
as with all Federal marketing order programs, reports and forms are 
periodically reviewed to reduce information requirements and 
duplication by industry and public sector agencies.
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the information collection requirements that are contained 
in this rule are being submitted to the Office of Management and Budget 
(OMB) for approval. This rule would not become effective until this 
additional information collection is approved by the OMB. In addition, 
the Department has not identified any relevant Federal rules that 
duplicate, overlap or conflict with this proposed rule.
    Other alternatives to this proposed action include not changing the 
reporting requirement concerning almond receipts. However, this 
alternative would leave the Board with less timely information. Another 
alternative would be to revert back to the reporting requirement prior 
to 1993 when handlers were required to report almond receipts twice a 
month during harvest (July through November), once during December, and 
then twice for the remainder of the crop year. However, the Board 
believes that requiring handlers to submit the receipt report monthly 
would best meet the industry's informational needs at this time.
    The Board's meeting was widely publicized throughout the almond 
industry and all interested persons were invited to attend the meeting 
and participate in Board deliberations. Like all Board meetings, the 
September 16, 1998, meeting was a public meeting and all entities, both 
large and small, were able to express their views on this issue. The 
Board itself is composed of ten members, of which five are producers 
and five are handlers.
    Also, the Board has a number of appointed committees to review 
certain issues and make recommendations to the Board. The Board's 
Administrative and Finance Committee met on September 16, 1998, prior 
to the Board meeting, and discussed this issue. That committee meeting 
was also a public meeting, and both large and small entities were able 
to participate and express their views. Finally, interested persons are 
invited to submit information on the regulatory and informational 
impacts of this action on small businesses.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the AMS announces its intention to request a revision to a 
currently approved information collection for almonds grown in 
California.
    Title: Almonds Grown in California, Marketing Order 981.
    OMB Number: 0581-0071.
    Expiration Date of Approval: August 31, 1999.
    Type of Request: Revision of a currently approved information 
collection.
    Abstract: The information collection requirements in this request 
are essential to carry out the intent of the Act, to provide the 
respondents the type of service they request, and to administer the 
California almond marketing order program, which has been operating 
since 1950.
    On September 16, 1998, the Board unanimously recommended to 
increase the reporting frequency for ABC Form 1, Report of Receipts 
(Secs. 981.72 and 981.472 (a)). Under the current terms of the order, 
almond handlers are required to report to the Board, on ABC Form 1, the 
total adjusted kernel weight of almonds received by them for their own 
account within seven prescribed reporting periods per year. This change

[[Page 432]]

in reporting procedures would require handlers to report information to 
the Board monthly, or 12 times per year. Additional, more accurate and 
timely information would thus be available to the Board and industry, 
facilitating improved decision making and program administration. This 
form will be completed by 115 handlers regulated under the marketing 
order. The time required to complete this form is estimated to average 
15 minutes per response. Using this form increases the estimated total 
annual burden on handlers by 144 hours, from 201 to 345 hours. Also, 
the number of total annual responses supplied by handlers for the 
entire almond information collection under the order increases from 
6,022 to 6,597.
    These forms require the minimum information necessary to 
effectively carry out the requirements of the order, and their use is 
necessary to fulfill the intent of the Act as expressed in the order.
    The information collected is used only by authorized 
representatives of the USDA, including AMS, Fruit and Vegetable 
Programs' regional and headquarter's staff, and authorized employees of 
the Board. Authorized Board employees and the industry are the primary 
users of the information and AMS is the secondary user.
    This proposed revision to the currently approved information 
requirements issued under the order is as follows:
    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 0.401 hours per response.
    Respondents: California almond growers, handlers, and accepted 
users of inedible almonds.
    Estimated Number of Respondents: 7,658.
    Estimated Number of Responses per Respondent: .86.
    Estimated Total Annual Burden on Respondents: 2,656 hours.
    Comments are invited on: (1) Whether the proposed collection of 
information is necessary for the proper performance of the functions of 
the agency, including whether the information will have practical 
utility; (2) the accuracy of the agency's estimate of the burden of the 
proposed collection of information, including the validity of the 
methodology and assumptions used; (3) ways to enhance the quality, 
utility, and clarity of the information to be collected; and (4) ways 
to minimize the burden of the collection of information on those who 
are to respond, including through the use of appropriate automated, 
electronic, mechanical, or other technological collection techniques or 
other forms of information technology.
    Comments should reference OMB No. 0581-0071 and the California 
Almond Marketing Order No. 981, and be sent to USDA in care of the 
docket clerk at the address referenced above. All comments received 
will be available for public inspection during regular business hours 
at the same address.
    All responses to this proposal will be summarized and included in 
the request for OMB approval. All comments will also become a matter of 
public record.
    A 60-day comment period is provided to allow interested persons to 
respond to this proposal.

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 CAR 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. In Sec. 981.472, paragraph (a) is revised to read as follows:


Sec. 981.472  Report of almonds received.

    (a) Each handler shall report to the Board, on or before the 5th 
calendar day of each month, on ABC Form 1, the total adjusted kernel 
weight of almonds, by variety, received by it for its own account for 
the preceding month.
* * * * *
    Dated: December 28, 1998.
Robert C. Keeney,
Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 99-34 Filed 1-4-99; 8:45 am]
BILLING CODE 3410-02-P