[Federal Register Volume 61, Number 124 (Wednesday, June 26, 1996)]
[Rules and Regulations]
[Pages 32917-32922]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-16304]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 981
[Docket No. A0-214-A7; FV-93-981-1]
Almonds Grown in California; Order Amending the Marketing Order
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: This final rule amends the marketing order (order) for
California almonds. The amendments change order provisions regarding:
five existing definitions in the order; Almond Board of California
(Board) nomination procedures, terms of office, qualification
procedures, eligibility requirements, voting and tenure requirements;
modifying creditable advertising provisions; revising volume control
procedures; requiring handlers to maintain records in the State of
California; authorizing interest or late payment charges on assessments
paid late; providing for periodic continuance referenda; and making
necessary conforming changes. These changes were favored by California
almond producers in a mail referendum. The amendments will improve the
administration, operation and functioning of the California almond
marketing order program.
EFFECTIVE DATE: June 27, 1996.
FOR FURTHER INFORMATION CONTACT: Kathleen M. Finn, Marketing
Specialist, Marketing Order Administration Branch, Fruit and Vegetable
Division, AMS, USDA, room 2523-S, P.O. Box 96456, Washington, D.C.
20090-6456, telephone: (202) 720-1509 or Fax (202) 720-5698; or Martin
Engeler, Assistant Officer-in-Charge, California Marketing Field
Office, Marketing Order Administration Branch, Fruit and Vegetable
Division, AMS, USDA, 2202 Monterey Street, suite 102-B, Fresno,
California 93721; (209) 487-5901 or FAX (209) 487-5906.
SUPPLEMENTARY INFORMATION: Prior documents in this proceeding: Notice
of Hearing issued on August 3, 1993, and published in the Federal
Register on August 17, 1993 (58 FR 43565). Recommended Decision and
Opportunity to File Written Exceptions issued on March 22, 1995, and
published in the Federal Register on April 6, 1995 (60 FR 17466).
Secretary's Decision and Referendum Order issued October 23, 1995, and
published in the Federal Register on October 30, 1995 [60 FR 55213].
Preliminary Statement
This administrative action is governed by the provisions of
sections 556 and 557 of Title 5 of the United States Code and,
therefore, is excluded from the requirements of Executive Order 12866.
This rule has been reviewed under Executive Order 12778, Civil
Justice Reform. This action is not intended to have a retroactive
effect. This rule will not preempt any State or local laws,
regulations, or policies, unless they present an irreconcilable
conflict with this action.
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 the date of the entry of the ruling.
The final rule was formulated on the record of a public hearing
held in Modesto, California, on November 3, 4 and 5, 1993, to consider
the proposed amendment of Marketing Order No. 981, regulating the
handling of almonds grown in California, hereinafter referred to as the
``order.'' Notice of the Hearing was published in the August 17, 1993,
issue of the Federal Register (58 FR 43565).
The hearing was held pursuant to the provisions of the Agricultural
Marketing Agreement Act of 1937, as amended (7 U.S.C. 601 et seq.),
hereinafter referred to as the Act, and the applicable rules of
practice and procedure governing proceedings to formulate marketing
agreements and marketing orders (7 CFR part 900). The Notice of Hearing
contained several amendment proposals submitted by the Board, which is
responsible for local administration of the program, and by five
additional persons.
The Board's proposals pertained to: (1) Increasing its membership
by two positions and changing Board nomination, selection, and
operation procedures; (2) changing the term of office of its members
from one to three years, and limiting the tenure of Board members; (3)
changing the definitions of ``cooperative handler,'' ``to handle,''
``settlement weight,'' ``crop year'' and ``trade demand''; (4)
requiring handlers of California almonds to maintain program records in
the State of California; (5) changing the advertising assessment credit
program to allow credit for certain promotion costs incurred by
handlers not previously authorized; (6) authorizing handlers to pay
interest and/or late payment charges for past due assessments; (7)
providing for continuance referenda every five years; (8) requiring
handlers to submit grower lists to the Board; and (9) allowing multi-
year contracting.
Five persons submitted additional proposals related to continuance
referenda, Board composition and nomination procedures, organic
almonds, regulatory provisions, advertising and promotion, assessments,
compliance audits, the definition of grower, and research and reserve
operations.
The Fruit and Vegetable Division, Agricultural Marketing Service
(AMS), U.S. Department of Agriculture (USDA), proposed making such
changes as are necessary to the order so that all of its provisions
conform with the proposed amendment. USDA also proposed that
continuance referenda be conducted on a periodic basis consistent with
USDA's policy guidelines.
Upon the basis of evidence introduced at the hearing and the record
thereof, the Administrator of the Agricultural Marketing Service (AMS)
on March 22, 1995, filed with the Hearing Clerk, Department of
Agriculture, a Recommended Decision and Opportunity to File Written
Exceptions thereto by May 8, 1995. Four exceptions were filed.
A Secretary's Decision and Referendum Order was issued on
[[Page 32918]]
October 23, 1995, directing that a referendum be conducted during the
period January 8 through February 2, 1996, among producers of
California almonds to determine whether they favored the proposed
amendments to the order. In the referendum, 19 of the amendment
proposals were favored by more than two-thirds of the producers voting
in the referendum by number and volume.
Four of the amendment proposals failed to receive the two-thirds
majority required for approval. They are: (1) Increase the Board
representation from 10 to 12 members, increase the quorum size to eight
members and specify the number of votes required to pass actions based
on the number of members present, increase the required number of votes
needed to recommend saleable and reserve percentages to the Secretary
from six to eight, and require 10 affirmative votes when voting by
methods other than at assembled meetings; (2) authorize the Board, with
the approval of the Secretary, to reapportion grower and/or handler
member representation on the Board based on the proportionate amounts
of almonds handled by different segments of the industry in the event
industry structure changes in future years; (3) authorize the Board,
with approval of the Secretary, to exempt certified organic almonds
from assessments used for marketing promotion; and (4) exempt from
reserve requirements, that part of the crop which is sold as
``certified organic almonds'' under standards established by the
Organic Foods Production Act of 1990. Since these amendments failed to
obtain the two-thirds requirement, they are not contained in this
document.
In addition, USDA has made modifications to sections 981.32, 981.33
and 981.40 regarding committee nominations, tenure and voting by mail,
telegram, fax or other electronic means. These modifications were
necessary because the amendment to increase Board membership failed.
The amendment to stagger terms of office for Board members passed
in the referendum. The amendatory language set forth staggered terms
for a 12-member Board. However, the rationale for staggered terms was
not specifically related to a 12-member Board. Modifications were made
to Secs. 981.32 and 981.33 to base staggered terms of office on a 10-
member Board.
The amendment to authorize voting by mail, telegram, fax or other
electronic means passed in the referendum and included a provision that
at least 10 members must vote in favor of its passage or the
proposition would be defeated. This number was based on a 12-member
Board. The record evidence indicated that requiring unanimous favorable
decisions to pass actions by these methods was burdensome to the Board
and delays and disruptions could be avoided by alleviating this
requirement. The USDA modification to Sec. 981.40 addresses this
concern by requiring eight affirmative votes to pass a Board action.
Finally, USDA has made an additional conforming change to section
981.73 of the order. This section pertains to reports filed by handlers
and when they are due to the Board. The conforming change will change
the last reporting date from July 15 to August 15 and change the
report's ending date from June 30 to July 31. Since the crop year will
be changed in this formal rulemaking proceeding from July 1 to August
1, the third reporting period specified in the order should pertain to
the end of the crop year. There is no additional burden anticipated on
handlers in making this change.
The amended marketing agreement was subsequently mailed to all
California almond handlers in the production area for their approval.
The marketing agreement was not approved by almond handlers
representing 50 percent or more of the volume of almonds handled by all
handlers during the representative period of July 1, 1994, through June
30, 1995.
Small Business Considerations
In accordance with the provisions of the Regulatory Flexibility Act
(RFA) (5 U.S.C. 601 et seq.), the AMS has determined that this action
will not have a significant economic impact on a substantial number of
small entities. Small agricultural service firms, which include
handlers regulated under this order, have been defined by the Small
Business Administration (SBA) (13 CFR 121.601) as those having annual
receipts of less than $5,000,000. Small agricultural producers are
defined as those having annual receipts of less than $500,000.
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 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 the RFA and the Act have small entity orientation
and compatibility. Interested persons were invited to present evidence
at the hearing on the probable impact that the proposed amendments to
the order would have on small businesses.
During the 1993-94 crop year, approximately 115 handlers were
regulated under Marketing Order No. 981. In addition, there are about
7,000 producers of almonds in the production area. The Act requires the
application of uniform rules on regulated handlers.
The amendments to the order include changes to five definitions in
the order. These definitions are cooperative handler, to handle,
settlement weight, crop year, and trade demand. The changes to the
definitions are intended to make them consistent with current industry
practices. They are designed to enhance the administration and
functioning of the marketing order to the benefit of the industry.
The change to the nomination procedures will require Board nominees
to be nominated by January 20 rather than April 20 as currently
provided. This will ensure that the new Board is seated prior to
meetings where important decisions are made for the following year and
will allow the Board to function more efficiently.
The change to the Board members' term of office from one year to
three year staggered terms allows more continuity on the Board. This
will allow the Board to focus more on long-term strategic goals and
develop long-term approaches to problems in the industry.
The amendment to require those persons nominated to the Board to
qualify prior to their selection to the Board is an administrative
change. This change allows the selection process to take place in a
more timely manner.
The amendment to add tenure requirements for Board members allows
more persons the opportunity to serve as members on the Board. It will
provide opportunity for new ideas and approaches to issues that the
Board addresses each year.
The amendment to the creditable advertising provisions expands the
promotional activities for which handlers may receive Credit-Back from
their assessments. This will allow the Board to increase program
flexibility for participating handlers.
The amendment to allow the settlement weight for unshelled almonds
to be determined on the basis of representative samples will be more
consistent with current industry practices.
The amendment to require handlers to maintain records in the State
of California will improve the Board's administration of the program.
It will also allow the Board to have the records available to them for
compliance purposes. It is not expected that any
[[Page 32919]]
additional costs will be incurred by handlers to comply with this
amendment.
The amendment to authorize interest and/or late payment charges on
assessments paid late encourages handlers to pay their assessments on
time. Assessments not paid promptly add an undue burden on the Board
because the Board has ongoing projects and programs funded by
assessments that are functioning throughout the year. This change is
consistent with standard business practices and there will be no
significant economic burden on small or large entities because the
increase in prompt payments will economically benefit the Board and
handlers.
The amendment to provide for periodic continuance referenda allows
growers the opportunity to vote on whether to continue the operation of
the almond marketing order.
The amendment to authorize handlers to transfer their reserve
obligation to other handlers helps facilitate the operation of the
reserve program by providing handlers more flexibility.
All these changes are designed to enhance the administration and
functioning of the marketing order to the benefit of the industry.
Accordingly, AMS has determined that the proposed revisions of the
order will not have a significant economic impact on a substantial
number of small entities.
In compliance with Office of Management and Budget (OMB)
regulations (5 CFR part 1320) which implement the Paperwork Reduction
Act of 1995 (44 U.S.C. Chapter 35), any reporting and recordkeeping
requirements that may result from these amendments will be submitted to
OMB for approval.
Order Further Amending the Order Regulating the Handling of Almonds
Grown in California
Findings and Determinations
The findings and determinations hereinafter set forth are
supplementary and in addition to the findings and determinations
previously made in connection with the issuance of the order; and all
of said previous findings and determinations are hereby ratified and
affirmed, except insofar as such findings and determinations may be in
conflict with the findings and determinations set forth herein.
(a) Findings and Determinations Upon the Basis of the Hearing
Record. Pursuant to the provisions of the Agricultural Marketing
Agreement Act of 1937, as amended (7 U.S.C. 601 et seq.), and
applicable rules of practice and procedure effective thereunder (7 CFR
part 900), a public hearing was held upon the amendments to Marketing
Order No. 981 (7 CFR part 981), regulating the handling of almonds
grown in California.
Upon the basis of the evidence introduced at such hearing and the
record thereof, it is found that:
(1) The order, as amended, and hereby further amended, and all of
the terms and conditions thereof, will tend to effectuate the declared
policy of the Act;
(2) The order, as amended, as hereby further amended, regulates the
handling of almonds grown in the production area in the same manner as,
and is applicable only to persons in the respective classes of
commercial and industrial activity specified in the marketing order
upon which a hearing has been held;
(3) The order, as amended, as hereby further amended, is limited in
application to the smallest regional production area which is
practicable, consistent with carrying out the declared policy of the
Act, and the issuance of several orders applicable to subdivisions of
the production area would not effectively carry out the declared policy
of the Act; and
(4) All handling of almonds grown in the production area is in the
current of interstate or foreign commerce or directly burdens,
obstructs, or affects such commerce.
(b) Additional findings. It is necessary and in the public interest
to make these order amendments effective one day after publication.
A later effective date would unnecessarily delay the implementation
of the order amendments and the improvement in operation of the
marketing order program. The Board, producers, and handlers need as
much time as possible to make plans to implement the amended order and
discuss any needed changes to the regulations and Board operating
procedures.
In view of the foregoing, it is hereby found and determined that
good cause exists for making these order amendments effective one day
after publication, and that it would be contrary to the public interest
to delay the effective date of these order amendments for 30 days after
publication in the Federal Register (Sec. 553(d), Administrative
Procedure Act; 5 U.S.C. 551-559).
(c) Determinations. It is hereby determined that:
(1) Handlers (excluding cooperative associations of producers who
are not engaged in processing, distributing, or shipping almonds
covered by the said order, as amended, as hereby further amended) who,
during the period July 1, 1994, through June 30, 1995, handled 50
percent or more of the volume of such almonds covered by said order, as
amended, and as hereby further amended, have not signed an amended
marketing agreement;
(2) The issuance of this amendatory order, further amending the
aforesaid order, is favored or approved by at least two-thirds of the
producers who participated in a referendum on the question of approval
and who, during the period July 1, 1994, through June 30, 1995 (which
has been deemed to be a representative period), have been engaged
within the California production area in the production of such almonds
for fresh market.
(3) In the absence of a signed marketing agreement, the issuance of
this amendatory order is the only practical means pursuant to the
declared policy of the Act of advancing the interests of producers of
almonds in the production area.
Order Relative to Handling
It is therefore ordered, That on and after the effective date
hereof, all handling of almonds grown in California, shall be in
conformity to, and in compliance with, the terms and conditions of the
said order as hereby further amended as follows:
The provisions of the proposed marketing order amendments further
amending the order contained in the Recommended Decision issued by the
Administrator on March 22, 1995, and published in the Federal Register
on April 6, 1995 (60 FR 17466) and in the Secretary's Decision issued
on October 23, 1995, and published in the Federal Register on October
30, 1995 (60 FR 55213), shall be and are the terms and provisions of
this order further amending the order, and are set forth in full
herein.
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
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. Section 981.14 is revised to read as follows:
[[Page 32920]]
Sec. 981.14 Cooperative handler.
Cooperative handler means any handler as defined in Sec. 981.13 of
this Subpart which qualifies for treatment as a nonprofit cooperative
association as defined in Section 54001, et seq. of the California Food
and Agricultural Code. The Board, with the approval of the Secretary,
may modify this definition, if necessary.
3. Section 981.16 is revised to read as follows:
Sec. 981.16 To handle.
To handle means to use almonds commercially of own production or to
sell, consign, transport, ship (except as a common carrier of almonds
owned by another) or in any other way to put almonds grown in the area
of production into any channel of trade for human consumption
worldwide, either within the area of production or by transfer from the
area of production to points outside or by receipt as first receiver at
any point of entry in the United States or Puerto Rico of almonds grown
in the area of production, exported therefrom and submitted for reentry
or which are reentered free of duty. However, sales or deliveries by a
grower to handlers, hullers or other processors within the area of
production shall not, in itself, be considered as handling by a grower.
4. Section 981.18 is amended by removing the word ``and'' at the
end of paragraph (b); removing the period and adding ``, and'' at the
end of paragraph (c); and adding a new paragraph (d) to read as
follows:
Sec. 981.18 Settlement weight.
* * * * *
(d) For inedible kernels as defined in Sec. 981.8.
5. Section 981.19 is revised to read as follows:
Sec. 981.19 Crop year.
Crop year means the twelve month period from August 1 to the
following July 31, inclusive. Any new crop almonds harvested or
received prior to August 1 will be applied to the next crop year for
marketing order purposes. The first crop year after the implementation
of this amendment shall be a 13-month period.
6. Section 981.21 is revised to read as follows:
Sec. 981.21 Trade demand.
Trade demand means the quantity of almonds (kernelweight basis)
which commercial distributors and users such as the wholesale, chain
store, confectionery, bakery, ice cream, and nut salting trades will
acquire from all handlers during a crop year for distribution
worldwide.
7. Section 981.31 is revised to read as follows:
Sec. 981.31 Membership representation.
Membership of the Board will be determined in the following manner:
(a) Two members and an alternate for each member shall be selected
from nominees submitted by each of the following groups designated in
paragraphs (a)(1) and (2) of this section, or from among other
qualified persons belonging to such groups:
(1) Those growers who market their almonds through cooperative
handlers; and
(2) Those growers who market their almonds through other than
cooperative handlers.
(b) Two members and an alternate for each member shall be selected
from nominees submitted by each of the following groups designated in
paragraphs (b) (1) and (2) of this section, or from among other
qualified persons belonging to such groups:
(1) Cooperative handlers; and
(2) All handlers, other than cooperative handlers.
(c) One member and an alternate shall be selected from nominees
submitted by each of the following groups designated in paragraphs (c)
(1) and (2) of this section, or from among other qualified persons
belonging to such groups:
(1) The group of cooperative handlers or the group of handlers
other than cooperative handlers, whichever received for their account
more than 50 percent of the almonds delivered by all growers as
determined by December 31 of the then current crop year; and
(2) Those growers whose almonds were marketed through the handler
group identified in paragraph (c)(1) of this section.
8. Section 981.32 is amended by revising paragraph (a) and amending
paragraph (b)(2) by removing the date ``March 31'' and adding in its
place the date ``December 31'' to read as follows:
Sec. 981.32 Nominations.
(a) Method. (1) Each year the terms of office of three of the
members elected pursuant to Section 981.31 (a) and (b) shall expire,
except every third year when the term of office for two of those
members shall expire. Nominees for each respective member and alternate
member shall be chosen by ballot delivered to the Board. Nominees
chosen by the Board in this manner shall be submitted by the Board to
the Secretary on or before February 20 of each year together with such
information as the Secretary may require. If a nomination for any Board
member or alternate is not received by the Secretary on or before
February 20, the Secretary may select such member or alternate from
persons belonging to the group to be represented without nomination.
The Board shall mail to all handlers and growers, other than the
cooperative(s) of record, the required ballots with all necessary
voting information including the names of incumbents willing to accept
renomination, and, to such growers, the name of any person proposed for
nomination in a petition signed by at least 15 such growers and filed
with the Board on or before January 20. Distribution of ballots shall
be announced by press release, furnishing pertinent information on
balloting, issued by the Board through newspapers and other
publications having general circulation in the almond producing areas.
(2) Nominees for the positions described in Section 981.31(c) shall
be handled in the same manner as described in paragraph (a)(1) of this
section except that those terms of office shall expire annually.
* * * * *
9. Section 981.33 is revised to read as follows:
Sec. 981.33 Selection and term of office.
(a) Members and their respective alternates for positions open on
the Board shall be selected by the Secretary from persons nominated
pursuant to Sec. 981.32, or, at the discretion of the Secretary, from
other qualified persons, for a term of office beginning March 1.
Members and alternates shall continue to serve until their respective
successors are selected and qualified.
(b) The term of office of members of the Board shall be for a
period of three years beginning on March 1 of the years selected except
where otherwise provided. However, for the initial eight members of the
Board selected pursuant to this section and to paragraphs (a) and (b)
of Sec. 981.31, two members shall serve for a term of one year; three
members shall serve for a term of two years; and three members shall
serve for a term of three years. For the initial terms of office, at
the time of nomination under Sec. 981.32, the Board shall make this
designation by lot. The term of office for the two members selected
under paragraph (c) of Sec. 981.31 shall always be for a period of one
year.
(c) Board members may serve for a total of six consecutive years.
Members who have served for six consecutive years must leave the Board
for at least one year before becoming eligible to serve again. A person
who has served
[[Page 32921]]
less than six consecutive years on the Board may not be nominated to a
new three year term if his or her total consecutive years on the Board
at the end of that new term would exceed six years. This limitation on
tenure shall not include service on the Board prior to implementation
of this amendment and shall not apply to alternate members.
10. Section 981.34 is revised to read as follows:
Sec. 981.34 Qualification and acceptance.
(a) Any person to be selected as a member or alternate of the Board
shall, prior to such selection, qualify by providing such background
information as necessary and by advising the Secretary that he/she
agrees to serve in the position for which nominated. Grower members and
alternates shall be growers or employees of growers, and handler
members and alternates shall be handlers or employees of handlers. In
the event any member or alternate ceases to be qualified for the
position for which selected, that position shall be deemed vacant.
(b) The Board, with approval of the Secretary, may establish
additional eligibility requirements for grower members on the Board.
11. Section 981.40 is amended by revising paragraph (c) to read as
follows:
Sec. 981.40 Procedure.
* * * * *
(c) Voting by mail, telegram, fax or other electronic means. The
Board may vote by mail, telegram, fax or other electronic means upon
written notice to all members, or alternates acting in their place,
including in the notice a statement of a reasonable time, not to exceed
10 days, in which a vote by mail, telegram, fax or other electronic
means must be received by the Board for counting. Voting by mail,
telegram, fax or other electronic means shall not be permitted at any
assembled meeting of the Board. When a proposition is submitted for
vote by mail, telegram, fax or other electronic means, at least eight
members of the Board must vote in favor of its passage or the
proposition shall be defeated.
* * * * *
Sec. 981.41 [Amended]
12. In section 981.41, paragraph (c) is amended by removing the
colon and all text following the words ``15 percent'' in the last
sentence and adding in its place a period.
Sec. 981.47 [Amended]
13. Section 981.47 is amended by removing the words ``either
domestic or'' in the third sentence.
14. Section 981.49 is amended by removing ``; and'' in paragraph
(e) and adding a period in its place, by adding ``and'' at the end of
paragraph (d); by removing paragraph (f) and by revising paragraph (b)
to read as follows:
Sec. 981.49 Board estimates and recommendations.
* * * * *
(b) The estimated handler carryover and the estimated reserve
inventory as of July 31;
* * * * *
15. Section 981.55 is amended by designating existing undesignated
text as paragraph (a) and adding a new paragraph (b) to read as
follows:
Sec. 981.55 Interhandler transfers.
* * * * *
(b) When salable and reserve percentages are in effect, any handler
may transfer reserve withholding obligation to other handlers. Terms
and conditions implementing this provision must be recommended by the
Board and approved by the Secretary.
16. Section 981.60 is amended by revising paragraph (b) to read as
follows:
Sec. 981.60 Determination of kernel weight.
* * * * *
(b) Almonds for which settlement is made on unshelled weight. The
settlement weight for unshelled almonds shall be determined on the
basis of representative samples of unshelled almonds reduced to shelled
weight.
17. Section 981.61 is amended by revising the last sentence to read
as follows:
Sec. 981.61 Redetermination of kernel weight.
* * * Weights used in such computations for various classifications
of almonds shall be:
(a) For unshelled almonds, the kernelweight based on representative
samples reduced to shelled weight;
(b) For shelled almonds, the net weight; and
(c) For shelled almonds used in production of almond products, the
net weight of such almonds.
Sec. 981.62 [Removed]
18. Section 981.62 is removed.
Sec. 981.66 [Amended]
19. Section 981.66 is amended by removing paragraphs (b) and (d),
redesignating paragraph (c) as paragraph (b), redesignating paragraph
(e) as paragraph (c), redesignating paragraphs (f) and (g) as
paragraphs (d) and (e), and by amending newly designated paragraph (c)
by removing all references to the date ``September 1'' everywhere it
appears and adding in its place ``December 31''.
Sec. 981.67 [Amended]
20. Section 981.67 is amended by removing all references to the
date ``September 1'' and adding in its place ``December 31''.
21. Section 981.70 is amended by revising the first sentence to
read as follows:
Sec. 981.70 Records and verification.
Each handler shall keep records which will clearly show the details
of his or her receipts of almonds, withholdings, sales, shipments,
inventories, reserve disposition, advertising and promotion activities,
as well as other pertinent information regarding his or her operation
pursuant to the provisions of this part: Provided, that, such records
shall be kept in the State of California. * * *
22. A new section 981.76 is added before the undesignated center
heading ``Expenses and Assessments'' to read as follows:
Sec. 981.76 Handler List of Growers.
No later than December 31 of each crop year, each handler other
than a cooperative handler (hereinafter, referred to as independent
handler) governed by this Subpart shall, upon request, submit to the
Board a complete list of growers who have delivered almonds to such
independent handler during that crop year.
23. Section 981.81 is amended by adding a new paragraph (e) to read
as follows:
Sec. 981.81 Assessment.
* * * * *
(e) Any assessment not paid by a handler within a period of time
prescribed by the Board may be subject to an interest or late payment
charge or both. The period of time, rate of interest and late payment
charge shall be as recommended by the Board and approved by the
Secretary. Subsequent to such approval, all assessments not paid within
the prescribed period of time shall be subject to an interest or late
payment charge or both.
24. Section 981.90 is amended by redesignating paragraphs (b)(2)
and (b)(3) as paragraphs (b)(3) and (b)(4) and by amending newly
designated paragraph (b)(3) by removing the date ``June 1'' and adding
in its place ``July 1'' and adding a new paragraph (b)(2) to read as
follows:
Sec. 981.90 Effective time, suspension, or termination.
* * * * *
(b) * * *
[[Page 32922]]
(2) The Secretary shall conduct a referendum as soon as practical
after the end of the fiscal year ending two years after implementation
of this amendment, and at such time every fifth year thereafter, to
ascertain whether continuation of the order is favored by growers who
have been engaged in the production of almonds for market within the
State of California during the current crop year.
* * * * *
Sec. 981.467 [Amended]
25. In section 981.467, paragraph (a) is amended by removing the
date ``July 1'' and adding in its place ``August 1'' and by removing
the words ``export or'' and ``or both,'' from the second sentence in
paragraph (a).
Sec. 981.472 [Amended]
26. In section 981.472, paragraph (a) is amended by removing the
dates ``July 1 to August 31'' and adding in its place ``August 1 to
August 31.''
981.73 [Amended]
27. Section 981.73 is amended by removing the date ``July 15'' and
adding in its place ``August 15'' and by removing the date ``June 30''
and adding in its place ``July 31''.
Dated: June 19, 1996.
Michael V. Dunn,
Assistant Secretary, Marketing and Regulatory Programs.
[FR Doc. 96-16304 Filed 6-25-96; 8:45 am]
BILLING CODE 3410-02-P
