82_FR_24356 82 FR 24255 - Walnuts Grown in California; Proposed Amendment to Marketing Order 984 and Referendum Order

82 FR 24255 - Walnuts Grown in California; Proposed Amendment to Marketing Order 984 and Referendum Order

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 82, Issue 101 (May 26, 2017)

Page Range24255-24257
FR Document2017-10676

This rule proposes one amendment to Marketing Order No. 984 (order), which regulates the handling of walnuts grown in California, and provides growers with the opportunity to vote in a referendum to determine if they favor the change. This amendment was proposed by the California Walnut Board (Board), which is responsible for the local administration of the order and is comprised of walnut growers and handlers operating within the production area. The amendment would authorize the Board to borrow from a commercial lending institution to fund operations and marketing/research expenses. This proposed amendment is intended to reflect a customary business practice that will provide greater flexibility to the Board while increasing its effectiveness.

Federal Register, Volume 82 Issue 101 (Friday, May 26, 2017)
[Federal Register Volume 82, Number 101 (Friday, May 26, 2017)]
[Proposed Rules]
[Pages 24255-24257]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-10676]


========================================================================
Proposed Rules
                                                Federal Register
________________________________________________________________________

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.

========================================================================


Federal Register / Vol. 82, No. 101 / Friday, May 26, 2017 / Proposed 
Rules

[[Page 24255]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 984

[Doc. No. AMS-SC-16-0053; SC-16-984-1 PR]


Walnuts Grown in California; Proposed Amendment to Marketing 
Order 984 and Referendum Order

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed amendment and referendum order.

-----------------------------------------------------------------------

SUMMARY: This rule proposes one amendment to Marketing Order No. 984 
(order), which regulates the handling of walnuts grown in California, 
and provides growers with the opportunity to vote in a referendum to 
determine if they favor the change. This amendment was proposed by the 
California Walnut Board (Board), which is responsible for the local 
administration of the order and is comprised of walnut growers and 
handlers operating within the production area. The amendment would 
authorize the Board to borrow from a commercial lending institution to 
fund operations and marketing/research expenses. This proposed 
amendment is intended to reflect a customary business practice that 
will provide greater flexibility to the Board while increasing its 
effectiveness.

DATES: The referendum will be conducted from August 7, 2017, through 
August 18, 2017. The representative period for the purpose of the 
referendum is September 1, 2015, through August 31, 2016.

FOR FURTHER INFORMATION CONTACT: Geronimo Quinones, Marketing 
Specialist, or Julie Santoboni, Rulemaking Branch Chief, Marketing 
Order and Agreement Division, Specialty Crops Program, AMS, USDA, 1400 
Independence Avenue SW., Stop 0237, Washington, DC 20250-0237; 
Telephone: (202) 720-2491, Fax: (202) 720-8938, or Email: 
[email protected] or [email protected].
    Small businesses may request information on complying with this 
regulation by contacting Richard Lower, Marketing Order and Agreement 
Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue 
SW., STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-2491, 
Fax: (202) 720-8938, or Email: [email protected].

SUPPLEMENTARY INFORMATION: This proposal is issued under Marketing 
Order No. 984, as amended (7 CFR part 984), regulating the handling of 
walnuts grown in California, hereinafter referred to as the ``order.'' 
The 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 (USDA) is issuing this rule in 
conformance with Executive Orders 12866, 13563, and 13175.
    This proposal has been reviewed under Executive Order 12988, Civil 
Justice Reform. This proposal is not intended to have retroactive 
effect.
    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 USDA 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, USDA 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 USDA's ruling on the petition, 
provided an action is filed not later than 20 days after the date of 
the entry of the ruling.
    Section 1504 of the Food, Conservation, and Energy Act of 2008 
(2008 Farm Bill) (Pub. L. 110-246) amended section 8c(17) of the Act, 
which in turn required the addition of supplemental rules of practice 
to 7 CFR part 900 (73 FR 49307; August 21, 2008). The additional 
supplemental rules of practice authorize the use of informal rulemaking 
(5 U.S.C. 553) to amend Federal fruit, vegetable, and nut marketing 
agreements and orders. USDA may use informal rulemaking to amend 
marketing orders based on the nature and complexity of the proposed 
amendment, the potential regulatory and economic impacts on affected 
entities, and any other relevant matters.
    AMS has considered these factors and has determined that the 
amendment proposal is not unduly complex and the nature of the proposed 
amendment is appropriate for utilizing the informal rulemaking process 
to amend the order.
    The proposed amendment was unanimously recommended by the Board 
following deliberations at a public meeting held on February 19, 2016.
    A proposed rule soliciting comments on the proposed amendment was 
issued on September 12, 2016, and published in the Federal Register on 
September 16, 2016 (81 FR 63721). Two comments were received, both in 
support of the amendment. AMS will conduct a grower referendum to 
determine support for the proposed amendment. If appropriate, a final 
rule will then be issued to effectuate the amendment favored by growers 
in the referendum.
    The Board's proposed amendment would amend the order by authorizing 
the Board to borrow from a commercial lending institution during times 
of cash shortage to help ensure continuity of operations.

Proposal--Borrowing From a Commercial Lending Institution

    Section 984.69 of the order, Assessments, authorizes the Board to 
collect assessments from handlers to administer the program.
    This proposal would provide the Board with authority to borrow from 
a commercial lending institution during times of cash shortages. In the 
past, the Board has utilized reserve funds collected through handler 
assessments to help finance the advertising/marketing program. However, 
due to the increased size of the domestic advertising program, relying 
on reserve funds as a means to meet obligations could make the program 
unsustainable in the long term. History shows the most costly part of 
the program runs during the first six months of the marketing year, and 
those expenditures must be paid by mid-year. Since the payments must be 
made before all assessment fees

[[Page 24256]]

are invoiced and collected, a cash shortage may occur during the year. 
Authorizing the Board to borrow from a commercial lending institution 
would help manage and sustain the program during times of low income 
while also ensuring continuity of operations.
    Therefore, for the reasons stated above, it is proposed that Sec.  
984.69, Assessments, be amended by adding a new paragraph that would 
provide the Board with authority to borrow from a commercial lending 
institution when no other funding is available.

Executive Orders 12866 and 13771, and Regulatory Flexibility Analysis

    This rule does not meet the definition of a significant regulatory 
action contained in section 3(f) of Executive Order 12866, and is not 
subject to review by the Office of Management and Budget (OMB). 
Additionally, because this rule does not meet the definition of a 
significant regulatory action it does not trigger the requirements 
contained in Executive Order 13771. See OMB's Memorandum titled 
``Interim Guidance Implementing Section 2 of the Executive Order of 
January 30, 2017 titled `Reducing Regulation and Controlling Regulatory 
Costs'[thinsp]'' (February 2, 2017). Pursuant to the requirements set 
forth in the Regulatory Flexibility Act (RFA) (5 U.S.C. 601-612), the 
Agricultural Marketing Service (AMS) has considered the economic impact 
of this action on small entities. Accordingly, AMS has prepared this 
final regulatory flexibility analysis.
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses 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.
    There are approximately 5,700 growers of California walnuts in the 
production area and approximately 90 handlers subject to regulation 
under the marketing order. The Small Business Administration defines 
small agricultural growers as those having annual receipts of less than 
$750,000 and defines small agricultural service firms as those whose 
annual receipts are less than $7,500,000 (13 CFR 121.201).
    According to USDA's National Agricultural Statistics Service's 
(NASS's) 2012 Census of Agriculture, approximately 86 percent of 
California's walnut farms were smaller than 100 acres. Further, NASS 
reports that the average yield for 2014 was 1.97 tons per acre, and the 
average price received for 2014 was $3,230 per ton.
    A 100-acre farm with an average yield of 1.97 tons per acre would 
therefore have been expected to produce about 197 tons of walnuts 
during 2014-15 marketing year. At $3,230 per ton, that farm's 
production would have had an approximate value of $636,310. Since 
Census of Agriculture information indicates that the majority of 
California's walnut farms are smaller than 100 acres, it could be 
concluded that the majority of the growers had receipts of less than 
$636,310 in 2014-15, which is well below the SBA threshold of $750,000. 
Thus, the majority of California's walnut growers would be considered 
small growers according to SBA's definition.
    According to information supplied by the Board, approximately two-
thirds of California's walnut handlers shipped merchantable walnuts 
valued under $7,500,000 during the 2014-15 marketing year and would, 
therefore, be considered small handlers according to the SBA 
definition.
    The amendment proposed by the Board would authorize the Board to 
borrow from commercial lending institutions. This would help to ensure 
continuity in operations.
    The Board reviewed and identified the most costly portion of its 
domestic advertising program. That portion of the program operates 
during the first six months of the Board's marketing year and costs 
must be paid by mid-year. Since assessment revenues are collected 
throughout the marketing year, not enough is on hand when these large 
payments are due. In the past, the Board has used reserve funds to help 
pay for marketing and advertising expenses. However, due to the 
increased size of the advertising program, the Board cannot rely on 
reserve funds to cover the costs. Based on this fact, the Board 
believes the program could become unsustainable in the long term.
    While this action could result in a temporary increase in handler 
assessment costs, these increases would be small and uniform on all 
handlers and proportional to the size of their businesses. These costs 
are expected to be offset by the benefits derived from a sustained 
marketing and advertising program. Additionally, these costs would help 
to ensure that the Board has sufficient funds to meet its financial 
obligations. Such stability is expected to allow the Board to conduct a 
program that would benefit all entities, regardless of size. California 
walnut growers should see an improved business environment and a more 
sustainable business model because of the improved business efficiency.
    Alternatives were considered to this proposal, including making no 
change at this time. However, the Board believes it would be beneficial 
to have the means and funds necessary to effectively administer the 
program.
    A small business guide on complying with fruit, vegetable, and 
specialty crop marketing agreements and orders may be viewed at: http://www.ams.usda.gov/rules-regulations/moa/small-businesses. Any questions 
about the compliance guide should be sent to Richard Lower at the 
previously mentioned address in the FOR FURTHER INFORMATION CONTACT 
section.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the order's information collection requirements have been 
previously approved by OMB and assigned OMB No. 0581-0178, ``Vegetable 
and Specialty Crops.'' No changes are necessary in those requirements 
as a result of this action. Should any changes become necessary, they 
would be submitted to OMB for approval.
    This proposed amendment would impose no additional reporting or 
recordkeeping requirements on either small or large California walnut 
handlers.
    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 addition, USDA 
has not identified any relevant Federal rules that duplicate, overlap, 
or conflict with this rule.
    AMS is committed to complying with the E-Government Act, to promote 
the use of the internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services, and for other purposes.
    The Board's meeting was widely publicized throughout the California 
walnut production area. All interested persons were invited to attend 
the meeting and encouraged to participate in Board deliberations on 
this issue. Like all Board meetings, the February 19, 2016, meeting was 
public, and all entities, both large and small, were encouraged to 
express their views on the proposal.
    A proposed rule concerning this action was published in the Federal 
Register on September 16, 2016 (81 FR 63721). Copies of the rule were 
mailed or sent via facsimile to all Board

[[Page 24257]]

members. Finally, the rule was made available through the internet by 
USDA and the Office of the Federal Register. A 60-day comment period 
ending November 16, 2016, was provided to allow interested persons to 
respond to the proposal.
    Two comments were received in support of the proposal. Therefore, 
no changes have been made to the proposed amendment as a result of the 
comments received.

Findings and Conclusions

    The findings and conclusions and general findings and 
determinations included in the proposed rule set forth in the September 
16, 2016, issue of the Federal Register are hereby approved and 
adopted.

Marketing Order

    Annexed hereto and made a part hereof is the document entitled 
``Order Amending the Order Regulating the Handling of Walnuts Grown in 
California.'' This document has been decided upon as the detailed and 
appropriate means of effectuating the foregoing findings and 
conclusions. It is hereby ordered, that this entire rule be published 
in the Federal Register.

Referendum Order

    It is hereby directed that a referendum be conducted in accordance 
with the procedure for the conduct of referenda (7 CFR part 900.400-
407) to determine whether the annexed order amending the order 
regulating the handling of Walnuts Grown in California is approved by 
growers, as defined under the terms of the order, who during a 
representative period were engaged in the production of walnuts in the 
production area.
    The representative period for the conduct of such referendum is 
hereby determined to be September 1, 2015, through August 31, 2016.
    The agents of the Secretary to conduct such referendum are 
designated to be Terry Vawter and Jeffrey Smutny, California Marketing 
Field Office, Marketing Order and Agreement Division, Specialty Crops 
Program, AMS, USDA; Telephone: (559) 487-5901, or Email: 
[email protected] or [email protected], respectively.

List of Subjects in 7 CFR Part 984

    Walnuts, Marketing agreements, Reporting and recordkeeping 
requirements.

    Dated: May 19, 2017.
Bruce Summers,
Acting Administrator, Agricultural Marketing Service.

Order Amending the Order Regulating the Handling of Walnuts Grown in 
California \1\
---------------------------------------------------------------------------

    \1\ This order shall not become effective unless and until the 
requirements of Sec.  900.14 of the rules of practice and procedure 
governing proceedings to formulate marketing agreements and 
marketing orders have been met.
---------------------------------------------------------------------------

Findings and Determinations

    The findings hereinafter set forth are supplementary to the 
findings and determinations which were previously made in connection 
with the issuance of the marketing order; and all 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.
    1. The marketing order, as amended, and as hereby proposed to be 
further amended, and all of the terms and conditions thereof, would 
tend to effectuate the declared policy of the Act;
    2. The marketing order, as amended, and as hereby proposed to be 
further amended, regulates the handling of walnuts grown in California 
in the same manner as, and are applicable only to, persons in the 
respective classes of commercial and industrial activity specified in 
the marketing order;
    3. The marketing order, as amended, and as hereby proposed to be 
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;
    4. The marketing order, as amended, and as hereby proposed to be 
further amended, prescribe, insofar as practicable, such different 
terms applicable to different parts of the production area as are 
necessary to give due recognition to the differences in the production 
and marketing of walnuts produced in the production area; and
    5. All handling of walnuts produced in the production area as 
defined in the marketing order is in the current of interstate or 
foreign commerce or directly burdens, obstructs, or affects such 
commerce.

Order Relative to Handling

    It is therefore ordered, that on and after the effective date 
hereof, all handling of walnuts grown in California shall be in 
conformity to, and in compliance with, the terms and conditions of the 
said order as hereby proposed to be amended as follows:
    The provisions of the proposed marketing order amending the order 
contained in the proposed rule issued by the Administrator on September 
12, 2016, and published in the Federal Register (81 FR 63721) on 
September 16, 2016, will be and are the terms and provisions of this 
order amending the order and are set forth in full herein.

PART 984--WALNUTS GROWN IN CALIFORNIA

0
1. The authority citation for 7 CFR part 984 continues to read as 
follows:

    Authority:  7 U.S.C. 601-674.

0
2. Amend 984.69 by redesignating paragraph (d) as (e) and adding a new 
paragraph (d) to read as follows:


Sec.  984.69   Assessments.

* * * * *
    (d) To provide funds for the administration of the provisions of 
this part during the part of a fiscal period when neither sufficient 
operating reserve funds nor sufficient revenue from assessments on the 
current season's certifications are available, the Board may accept 
payment of assessments in advance or may borrow money from a commercial 
lending institution for such purposes.
* * * * *
[FR Doc. 2017-10676 Filed 5-25-17; 8:45 am]
 BILLING CODE 3410-02-P



                                                                                                                                                                                                   24255

                                                    Proposed Rules                                                                                                Federal Register
                                                                                                                                                                  Vol. 82, No. 101

                                                                                                                                                                  Friday, May 26, 2017



                                                    This section of the FEDERAL REGISTER                    Geronimo.Quinones@ams.usda.gov or                     informal rulemaking (5 U.S.C. 553) to
                                                    contains notices to the public of the proposed          Julie.Santoboni@ams.usda.gov.                         amend Federal fruit, vegetable, and nut
                                                    issuance of rules and regulations. The                    Small businesses may request                        marketing agreements and orders. USDA
                                                    purpose of these notices is to give interested          information on complying with this                    may use informal rulemaking to amend
                                                    persons an opportunity to participate in the            regulation by contacting Richard Lower,               marketing orders based on the nature
                                                    rule making prior to the adoption of the final
                                                                                                            Marketing Order and Agreement                         and complexity of the proposed
                                                    rules.
                                                                                                            Division, Specialty Crops Program,                    amendment, the potential regulatory
                                                                                                            AMS, USDA, 1400 Independence                          and economic impacts on affected
                                                    DEPARTMENT OF AGRICULTURE                               Avenue SW., STOP 0237, Washington,                    entities, and any other relevant matters.
                                                                                                            DC 20250–0237; Telephone: (202) 720–                     AMS has considered these factors and
                                                    Agricultural Marketing Service                          2491, Fax: (202) 720–8938, or Email:                  has determined that the amendment
                                                                                                            Richard.Lower@ams.usda.gov.                           proposal is not unduly complex and the
                                                    7 CFR Part 984                                          SUPPLEMENTARY INFORMATION: This                       nature of the proposed amendment is
                                                                                                            proposal is issued under Marketing                    appropriate for utilizing the informal
                                                    [Doc. No. AMS–SC–16–0053; SC–16–984–1                                                                         rulemaking process to amend the order.
                                                    PR]                                                     Order No. 984, as amended (7 CFR part
                                                                                                            984), regulating the handling of walnuts                 The proposed amendment was
                                                    Walnuts Grown in California; Proposed                   grown in California, hereinafter referred             unanimously recommended by the
                                                                                                            to as the ‘‘order.’’ The order is effective           Board following deliberations at a
                                                    Amendment to Marketing Order 984
                                                                                                            under the Agricultural Marketing                      public meeting held on February 19,
                                                    and Referendum Order
                                                                                                                                                                  2016.
                                                                                                            Agreement Act of 1937, as amended (7
                                                    AGENCY:  Agricultural Marketing Service,                                                                         A proposed rule soliciting comments
                                                                                                            U.S.C. 601–674), hereinafter referred to
                                                    USDA.                                                                                                         on the proposed amendment was issued
                                                                                                            as the ‘‘Act.’’                                       on September 12, 2016, and published
                                                    ACTION: Proposed amendment and                            The Department of Agriculture
                                                    referendum order.                                                                                             in the Federal Register on September
                                                                                                            (USDA) is issuing this rule in
                                                                                                                                                                  16, 2016 (81 FR 63721). Two comments
                                                                                                            conformance with Executive Orders                     were received, both in support of the
                                                    SUMMARY:    This rule proposes one
                                                                                                            12866, 13563, and 13175.                              amendment. AMS will conduct a grower
                                                    amendment to Marketing Order No. 984                      This proposal has been reviewed
                                                    (order), which regulates the handling of                                                                      referendum to determine support for the
                                                                                                            under Executive Order 12988, Civil                    proposed amendment. If appropriate, a
                                                    walnuts grown in California, and                        Justice Reform. This proposal is not
                                                    provides growers with the opportunity                                                                         final rule will then be issued to
                                                                                                            intended to have retroactive effect.                  effectuate the amendment favored by
                                                    to vote in a referendum to determine if                   The Act provides that administrative
                                                    they favor the change. This amendment                                                                         growers in the referendum.
                                                                                                            proceedings must be exhausted before                     The Board’s proposed amendment
                                                    was proposed by the California Walnut                   parties may file suit in court. Under
                                                    Board (Board), which is responsible for                                                                       would amend the order by authorizing
                                                                                                            section 608c(15)(A) of the Act, any                   the Board to borrow from a commercial
                                                    the local administration of the order and               handler subject to an order may file
                                                    is comprised of walnut growers and                                                                            lending institution during times of cash
                                                                                                            with USDA a petition stating that the                 shortage to help ensure continuity of
                                                    handlers operating within the                           order, any provision of the order, or any
                                                    production area. The amendment would                                                                          operations.
                                                                                                            obligation imposed in connection with
                                                    authorize the Board to borrow from a                    the order is not in accordance with law               Proposal—Borrowing From a
                                                    commercial lending institution to fund                  and request a modification of the order               Commercial Lending Institution
                                                    operations and marketing/research                       or to be exempted therefrom. Such                       Section 984.69 of the order,
                                                    expenses. This proposed amendment is                    handler is afforded the opportunity for               Assessments, authorizes the Board to
                                                    intended to reflect a customary business                a hearing on the petition. After the                  collect assessments from handlers to
                                                    practice that will provide greater                      hearing, USDA would rule on the                       administer the program.
                                                    flexibility to the Board while increasing               petition. The Act provides that the                     This proposal would provide the
                                                    its effectiveness.                                      district court of the United States in any            Board with authority to borrow from a
                                                    DATES: The referendum will be                           district in which the handler is an                   commercial lending institution during
                                                    conducted from August 7, 2017, through                  inhabitant, or has his or her principal               times of cash shortages. In the past, the
                                                    August 18, 2017. The representative                     place of business, has jurisdiction to                Board has utilized reserve funds
                                                    period for the purpose of the                           review USDA’s ruling on the petition,                 collected through handler assessments
                                                    referendum is September 1, 2015,                        provided an action is filed not later than            to help finance the advertising/
                                                    through August 31, 2016.                                20 days after the date of the entry of the            marketing program. However, due to the
                                                    FOR FURTHER INFORMATION CONTACT:                        ruling.                                               increased size of the domestic
                                                    Geronimo Quinones, Marketing                              Section 1504 of the Food,                           advertising program, relying on reserve
mstockstill on DSK30JT082PROD with PROPOSALS




                                                    Specialist, or Julie Santoboni,                         Conservation, and Energy Act of 2008                  funds as a means to meet obligations
                                                    Rulemaking Branch Chief, Marketing                      (2008 Farm Bill) (Pub. L. 110–246)                    could make the program unsustainable
                                                    Order and Agreement Division,                           amended section 8c(17) of the Act,                    in the long term. History shows the most
                                                    Specialty Crops Program, AMS, USDA,                     which in turn required the addition of                costly part of the program runs during
                                                    1400 Independence Avenue SW., Stop                      supplemental rules of practice to 7 CFR               the first six months of the marketing
                                                    0237, Washington, DC 20250–0237;                        part 900 (73 FR 49307; August 21,                     year, and those expenditures must be
                                                    Telephone: (202) 720–2491, Fax: (202)                   2008). The additional supplemental                    paid by mid-year. Since the payments
                                                    720–8938, or Email:                                     rules of practice authorize the use of                must be made before all assessment fees


                                               VerDate Sep<11>2014   17:53 May 25, 2017   Jkt 241001   PO 00000   Frm 00001   Fmt 4702   Sfmt 4702   E:\FR\FM\26MYP1.SGM   26MYP1


                                                    24256                     Federal Register / Vol. 82, No. 101 / Friday, May 26, 2017 / Proposed Rules

                                                    are invoiced and collected, a cash                      acre, and the average price received for              sustainable business model because of
                                                    shortage may occur during the year.                     2014 was $3,230 per ton.                              the improved business efficiency.
                                                    Authorizing the Board to borrow from a                     A 100-acre farm with an average yield                 Alternatives were considered to this
                                                    commercial lending institution would                    of 1.97 tons per acre would therefore                 proposal, including making no change
                                                    help manage and sustain the program                     have been expected to produce about                   at this time. However, the Board
                                                    during times of low income while also                   197 tons of walnuts during 2014–15                    believes it would be beneficial to have
                                                    ensuring continuity of operations.                      marketing year. At $3,230 per ton, that               the means and funds necessary to
                                                      Therefore, for the reasons stated                     farm’s production would have had an                   effectively administer the program.
                                                    above, it is proposed that § 984.69,                    approximate value of $636,310. Since                     A small business guide on complying
                                                    Assessments, be amended by adding a                     Census of Agriculture information                     with fruit, vegetable, and specialty crop
                                                    new paragraph that would provide the                    indicates that the majority of                        marketing agreements and orders may
                                                    Board with authority to borrow from a                   California’s walnut farms are smaller                 be viewed at: http://www.ams.usda.gov/
                                                    commercial lending institution when no                  than 100 acres, it could be concluded                 rules-regulations/moa/small-businesses.
                                                    other funding is available.                             that the majority of the growers had                  Any questions about the compliance
                                                                                                            receipts of less than $636,310 in 2014–               guide should be sent to Richard Lower
                                                    Executive Orders 12866 and 13771, and
                                                                                                            15, which is well below the SBA                       at the previously mentioned address in
                                                    Regulatory Flexibility Analysis
                                                                                                            threshold of $750,000. Thus, the                      the FOR FURTHER INFORMATION CONTACT
                                                       This rule does not meet the definition               majority of California’s walnut growers               section.
                                                    of a significant regulatory action
                                                                                                            would be considered small growers                     Paperwork Reduction Act
                                                    contained in section 3(f) of Executive
                                                                                                            according to SBA’s definition.
                                                    Order 12866, and is not subject to                                                                               In accordance with the Paperwork
                                                                                                               According to information supplied by
                                                    review by the Office of Management and                                                                        Reduction Act of 1995 (44 U.S.C.
                                                                                                            the Board, approximately two-thirds of
                                                    Budget (OMB). Additionally, because                                                                           Chapter 35), the order’s information
                                                                                                            California’s walnut handlers shipped
                                                    this rule does not meet the definition of                                                                     collection requirements have been
                                                    a significant regulatory action it does                 merchantable walnuts valued under
                                                                                                                                                                  previously approved by OMB and
                                                    not trigger the requirements contained                  $7,500,000 during the 2014–15
                                                                                                                                                                  assigned OMB No. 0581–0178,
                                                    in Executive Order 13771. See OMB’s                     marketing year and would, therefore, be
                                                                                                                                                                  ‘‘Vegetable and Specialty Crops.’’ No
                                                    Memorandum titled ‘‘Interim Guidance                    considered small handlers according to
                                                                                                                                                                  changes are necessary in those
                                                    Implementing Section 2 of the Executive                 the SBA definition.
                                                                                                                                                                  requirements as a result of this action.
                                                    Order of January 30, 2017 titled                           The amendment proposed by the
                                                                                                                                                                  Should any changes become necessary,
                                                    ‘Reducing Regulation and Controlling                    Board would authorize the Board to
                                                                                                                                                                  they would be submitted to OMB for
                                                    Regulatory Costs’ ’’ (February 2, 2017).                borrow from commercial lending
                                                                                                                                                                  approval.
                                                    Pursuant to the requirements set forth in               institutions. This would help to ensure                  This proposed amendment would
                                                    the Regulatory Flexibility Act (RFA) (5                 continuity in operations.                             impose no additional reporting or
                                                    U.S.C. 601–612), the Agricultural                          The Board reviewed and identified                  recordkeeping requirements on either
                                                    Marketing Service (AMS) has                             the most costly portion of its domestic               small or large California walnut
                                                    considered the economic impact of this                  advertising program. That portion of the              handlers.
                                                    action on small entities. Accordingly,                  program operates during the first six                    As with all Federal marketing order
                                                    AMS has prepared this final regulatory                  months of the Board’s marketing year                  programs, reports and forms are
                                                    flexibility analysis.                                   and costs must be paid by mid-year.                   periodically reviewed to reduce
                                                       The purpose of the RFA is to fit                     Since assessment revenues are collected               information requirements and
                                                    regulatory actions to the scale of                      throughout the marketing year, not                    duplication by industry and public
                                                    businesses subject to such actions in                   enough is on hand when these large                    sector agencies. In addition, USDA has
                                                    order that small businesses will not be                 payments are due. In the past, the Board              not identified any relevant Federal rules
                                                    unduly or disproportionately burdened.                  has used reserve funds to help pay for                that duplicate, overlap, or conflict with
                                                    Marketing orders issued pursuant to the                 marketing and advertising expenses.                   this rule.
                                                    Act, and rules issued thereunder, are                   However, due to the increased size of                    AMS is committed to complying with
                                                    unique in that they are brought about                   the advertising program, the Board                    the E-Government Act, to promote the
                                                    through group action of essentially                     cannot rely on reserve funds to cover                 use of the internet and other
                                                    small entities acting on their own                      the costs. Based on this fact, the Board              information technologies to provide
                                                    behalf.                                                 believes the program could become                     increased opportunities for citizen
                                                       There are approximately 5,700                        unsustainable in the long term.                       access to Government information and
                                                    growers of California walnuts in the                       While this action could result in a                services, and for other purposes.
                                                    production area and approximately 90                    temporary increase in handler                            The Board’s meeting was widely
                                                    handlers subject to regulation under the                assessment costs, these increases would               publicized throughout the California
                                                    marketing order. The Small Business                     be small and uniform on all handlers                  walnut production area. All interested
                                                    Administration defines small                            and proportional to the size of their                 persons were invited to attend the
                                                    agricultural growers as those having                    businesses. These costs are expected to               meeting and encouraged to participate
                                                    annual receipts of less than $750,000                   be offset by the benefits derived from a              in Board deliberations on this issue.
                                                    and defines small agricultural service                  sustained marketing and advertising                   Like all Board meetings, the February
                                                    firms as those whose annual receipts are                program. Additionally, these costs                    19, 2016, meeting was public, and all
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                                                    less than $7,500,000 (13 CFR 121.201).                  would help to ensure that the Board has               entities, both large and small, were
                                                       According to USDA’s National                         sufficient funds to meet its financial                encouraged to express their views on
                                                    Agricultural Statistics Service’s                       obligations. Such stability is expected to            the proposal.
                                                    (NASS’s) 2012 Census of Agriculture,                    allow the Board to conduct a program                     A proposed rule concerning this
                                                    approximately 86 percent of California’s                that would benefit all entities,                      action was published in the Federal
                                                    walnut farms were smaller than 100                      regardless of size. California walnut                 Register on September 16, 2016 (81 FR
                                                    acres. Further, NASS reports that the                   growers should see an improved                        63721). Copies of the rule were mailed
                                                    average yield for 2014 was 1.97 tons per                business environment and a more                       or sent via facsimile to all Board


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                                                                              Federal Register / Vol. 82, No. 101 / Friday, May 26, 2017 / Proposed Rules                                                  24257

                                                    members. Finally, the rule was made                       Dated: May 19, 2017.                                 shall be in conformity to, and in
                                                    available through the internet by USDA                  Bruce Summers,                                         compliance with, the terms and
                                                    and the Office of the Federal Register. A               Acting Administrator, Agricultural Marketing           conditions of the said order as hereby
                                                    60-day comment period ending                            Service.                                               proposed to be amended as follows:
                                                    November 16, 2016, was provided to                                                                               The provisions of the proposed
                                                                                                            Order Amending the Order Regulating
                                                    allow interested persons to respond to                                                                         marketing order amending the order
                                                                                                            the Handling of Walnuts Grown in
                                                    the proposal.                                                                                                  contained in the proposed rule issued
                                                                                                            California 1
                                                                                                                                                                   by the Administrator on September 12,
                                                       Two comments were received in
                                                                                                            Findings and Determinations                            2016, and published in the Federal
                                                    support of the proposal. Therefore, no
                                                                                                               The findings hereinafter set forth are              Register (81 FR 63721) on September
                                                    changes have been made to the
                                                                                                            supplementary to the findings and                      16, 2016, will be and are the terms and
                                                    proposed amendment as a result of the
                                                                                                            determinations which were previously                   provisions of this order amending the
                                                    comments received.
                                                                                                            made in connection with the issuance of                order and are set forth in full herein.
                                                    Findings and Conclusions                                the marketing order; and all said                      PART 984—WALNUTS GROWN IN
                                                                                                            previous findings and determinations                   CALIFORNIA
                                                      The findings and conclusions and
                                                                                                            are hereby ratified and affirmed, except
                                                    general findings and determinations
                                                                                                            insofar as such findings and                           ■ 1. The authority citation for 7 CFR
                                                    included in the proposed rule set forth
                                                                                                            determinations may be in conflict with                 part 984 continues to read as follows:
                                                    in the September 16, 2016, issue of the
                                                                                                            the findings and determinations set
                                                    Federal Register are hereby approved                                                                               Authority: 7 U.S.C. 601–674.
                                                                                                            forth herein.
                                                    and adopted.                                               1. The marketing order, as amended,                 ■ 2. Amend 984.69 by redesignating
                                                    Marketing Order                                         and as hereby proposed to be further                   paragraph (d) as (e) and adding a new
                                                                                                            amended, and all of the terms and                      paragraph (d) to read as follows:
                                                      Annexed hereto and made a part                        conditions thereof, would tend to
                                                    hereof is the document entitled ‘‘Order                                                                        § 984.69   Assessments.
                                                                                                            effectuate the declared policy of the Act;
                                                    Amending the Order Regulating the                          2. The marketing order, as amended,                 *      *    *     *    *
                                                    Handling of Walnuts Grown in                            and as hereby proposed to be further                      (d) To provide funds for the
                                                    California.’’ This document has been                    amended, regulates the handling of                     administration of the provisions of this
                                                    decided upon as the detailed and                        walnuts grown in California in the same                part during the part of a fiscal period
                                                    appropriate means of effectuating the                   manner as, and are applicable only to,                 when neither sufficient operating
                                                    foregoing findings and conclusions. It is               persons in the respective classes of                   reserve funds nor sufficient revenue
                                                    hereby ordered, that this entire rule be                commercial and industrial activity                     from assessments on the current
                                                    published in the Federal Register.                      specified in the marketing order;                      season’s certifications are available, the
                                                                                                               3. The marketing order, as amended,                 Board may accept payment of
                                                    Referendum Order                                        and as hereby proposed to be further                   assessments in advance or may borrow
                                                                                                            amended, is limited in application to                  money from a commercial lending
                                                      It is hereby directed that a referendum                                                                      institution for such purposes.
                                                                                                            the smallest regional production area
                                                    be conducted in accordance with the
                                                                                                            which is practicable, consistent with                  *      *    *     *    *
                                                    procedure for the conduct of referenda
                                                                                                            carrying out the declared policy of the                [FR Doc. 2017–10676 Filed 5–25–17; 8:45 am]
                                                    (7 CFR part 900.400–407) to determine
                                                                                                            Act, and the issuance of several orders                BILLING CODE 3410–02–P
                                                    whether the annexed order amending
                                                                                                            applicable to subdivisions of the
                                                    the order regulating the handling of                    production area would not effectively
                                                    Walnuts Grown in California is                          carry out the declared policy of the Act;              DEPARTMENT OF TRANSPORTATION
                                                    approved by growers, as defined under                      4. The marketing order, as amended,
                                                    the terms of the order, who during a                    and as hereby proposed to be further                   Federal Aviation Administration
                                                    representative period were engaged in                   amended, prescribe, insofar as
                                                    the production of walnuts in the                        practicable, such different terms                      14 CFR Part 39
                                                    production area.                                        applicable to different parts of the                   [Docket No. FAA–2017–0140; Directorate
                                                      The representative period for the                     production area as are necessary to give               Identifier 2017–NE–05–AD]
                                                    conduct of such referendum is hereby                    due recognition to the differences in the
                                                    determined to be September 1, 2015,                     production and marketing of walnuts                    RIN 2120–AA64
                                                    through August 31, 2016.                                produced in the production area; and
                                                                                                                                                                   Airworthiness Directives; Rolls-Royce
                                                      The agents of the Secretary to conduct                   5. All handling of walnuts produced
                                                                                                                                                                   Deutschland Ltd & Co KG Turbofan
                                                    such referendum are designated to be                    in the production area as defined in the
                                                                                                                                                                   Engines
                                                    Terry Vawter and Jeffrey Smutny,                        marketing order is in the current of
                                                    California Marketing Field Office,                      interstate or foreign commerce or                      AGENCY: Federal Aviation
                                                    Marketing Order and Agreement                           directly burdens, obstructs, or affects                Administration (FAA), DOT.
                                                                                                            such commerce.                                         ACTION: Notice of proposed rulemaking
                                                    Division, Specialty Crops Program,
                                                    AMS, USDA; Telephone: (559) 487–                        Order Relative to Handling                             (NPRM).
mstockstill on DSK30JT082PROD with PROPOSALS




                                                    5901, or Email: Terry.Vawter@                              It is therefore ordered, that on and                SUMMARY:   We propose to adopt a new
                                                    ams.usda.gov or Jeffrey.Smutny@                         after the effective date hereof, all                   airworthiness directive (AD) for certain
                                                    ams.usda.gov, respectively.                             handling of walnuts grown in California                Rolls-Royce Deutschland Ltd & Co KG
                                                    List of Subjects in 7 CFR Part 984                                                                             (RRD) model Tay 620–15 turbofan
                                                                                                              1 This order shall not become effective unless and
                                                                                                                                                                   engines. This proposed AD was
                                                      Walnuts, Marketing agreements,                        until the requirements of § 900.14 of the rules of
                                                                                                            practice and procedure governing proceedings to
                                                                                                                                                                   prompted by RRD recalculating the life
                                                    Reporting and recordkeeping                             formulate marketing agreements and marketing           limit for certain high-pressure
                                                    requirements.                                           orders have been met.                                  compressor (HPC) stage 12 rotor disks.


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Document Created: 2017-05-26 02:23:36
Document Modified: 2017-05-26 02:23:36
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed amendment and referendum order.
DatesThe referendum will be conducted from August 7, 2017, through August 18, 2017. The representative period for the purpose of the referendum is September 1, 2015, through August 31, 2016.
ContactGeronimo Quinones, Marketing Specialist, or Julie Santoboni, Rulemaking Branch Chief, Marketing Order and Agreement Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue SW., Stop 0237, Washington, DC 20250-0237; Telephone: (202) 720-2491, Fax: (202) 720-8938, or Email: [email protected] or [email protected]
FR Citation82 FR 24255 
CFR AssociatedWalnuts; Marketing Agreements and Reporting and Recordkeeping Requirements

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