[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
