96-19377. Almonds Grown in California; Assessment Rate

[Federal Register Volume 61, Number 148 (Wednesday, July 31, 1996)]
[Rules and Regulations]
[Pages 39841-39842]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-19377]


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DEPARTMENT OF AGRICULTURE
7 CFR Part 981

[Docket No. FV96-981-2 IFR]


Almonds Grown in California; Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: This interim final rule establishes 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.

DATES: Effective July 1, 1996. Comments received by August 30, 1996, 
will be considered prior to issuance of a final rule.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this rule. 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 # [phone]. 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: Tershirra Yeager, Marketing Assistant, 
Marketing Order Administrative Branch, Fruit and Vegetable Division, 
AMS, USDA, P.O. Box 96456, room 2522-S, Washington, DC 20090-6456, 
telephone [phone], or FAX # [phone]; 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 [phone] or FAX # [phone]. 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, DC 20090-6456; telephone: [phone], 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 of Agriculture (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 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

[[Page 39842]]

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, production research, 
$97,470 for travel, and $91,160 for crop estimate.
    Of the $3,333,500 budgeted for information and research, the Board 
allotted $1.553 million for a ``coupon'' promotion project to be 
conducted on a national scale. In the 1995-96 crop year, $250,000 was 
budgeted for a similar project on a smaller scale. The Board will only 
conduct the 1996-97 budgeted project if the 1995-96 smaller scale 
project proves to be beneficial to the industry. The success of this 
program will be determined after the 1995-96 crop year is completed. In 
the event the Board decides not to undertake this project, appropriate 
adjustments will be made when billing handlers.
    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, 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.
    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. Interested persons are invited to submit information on the 
regulatory and informational impacts of this action on small 
businesses.
    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 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 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 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 rule.

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.

    Note: This section will appear in the Code of Federal 
Regulations.
    2. In part 981, a new subpart is added consisting of section 
981.343 to read as follows:

Subpart--Assessment rates.


Sec. 981.343  Assessment rate.

    On and after July 1, 1996, an assessment rate of $0.01 cent per 
pound of assessable almonds is established for California almonds.

    Dated: July 25, 1996.
Sharon Bomer Lauritsen,
Acting Director, Fruit and Vegetable Division.
[FR Doc. 96-19377 Filed 7-30-96; 8:45 am]
BILLING CODE 3410-02-P