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Federal Register / Vol. 86, No. 42 / Friday, March 5, 2021 / Rules and Regulations
202021 and subsequent production years. The assessment rate will remain in effect indefinitely unless modified, suspended, or terminated.
DATES: Effective April 5, 2021.
FOR FURTHER INFORMATION CONTACT:
Peter Sommers, Marketing Specialist, California Marketing Field Office, or Andrew Hatch, Deputy Director, Marketing Order and Agreement Division, Specialty Crops Program, AMS, USDA; Telephone: 559 538
1670 or Email: PeterR.Sommers@
usda.gov or Andrew.Hatch@usda.gov.
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 202500237; Telephone: 202 720
2491, or Email: Richard.Lower@
usda.gov.
SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553, implements an amendment to regulations issued to carry out a marketing order as defined in 7 CFR
900.2j. This rule is issued under Marketing Agreement and Order No.
983, as amended 7 CFR part 983, regulating the handling of pistachios grown in California, Arizona, and New Mexico. Part 983 referred to as the Order is effective under the Agricultural Marketing Agreement Act of 1937, as amended 7 U.S.C. 601674, hereinafter referred to as the Act. The Committee locally administers the Order and is comprised of producers and handlers of pistachios operating within the production area, and a public member.
The Department of Agriculture USDA is issuing this rule in conformance with Executive Orders 13563 and 13175. This rule falls within a category of regulatory actions that the Office of Management and Budget OMB exempted from Executive Order 12866 review.
This rule has been reviewed under Executive Order 12988, Civil Justice Reform. Under the Order now in effect, pistachio handlers are subject to assessments. Funds to administer the Order are derived from such assessments. It is intended that the assessment rate be applicable to all assessable pistachios for the 202021
production year and continue until amended, suspended, or terminated.
The Act provides that administrative proceedings must be exhausted before parties may file suit in court. Under section 608c15A of the Act, any handler subject to an order may file
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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 a 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 USDAs ruling on the petition, provided an action is filed no later than 20 days after the date of the entry of the ruling.
This final rule increases the assessment rate from $0.00010 per pound of assessed weight pistachios, the rate that was established for the 2017
18 and subsequent production years, to $0.00015 per pound of assessed weight pistachios for the 202021 and subsequent production years.
The Order authorizes the Committee, with the approval of USDA, to formulate an annual budget of expenses and collect assessments from handlers to administer the program. The members are familiar with the Committees needs and with the costs of goods and services in their local area and are in a position to formulate an appropriate budget and assessment rate. The assessment rate is formulated and discussed in a public meeting. Thus, all directly affected persons have an opportunity to participate and provide input.
For the 201718 and subsequent production years, the Committee recommended, and USDA approved, an assessment rate of $0.00010 per pound of assessed weight pistachios. That assessment rate continued until modified, suspended, or terminated by USDA upon recommendation and information submitted by the Committee or other information available to USDA.
The Committee met on July 14, 2020, and unanimously recommended expenditures of $679,800 and an assessment rate of $0.00015 per pound of assessed weight pistachios handled for the 202021 and subsequent production years. In comparison, last years budgeted expenditures were $677,100. The assessment rate of $0.00015 is $0.00005 higher than the rate currently in effect. The Committee recommended increasing the assessment rate to provide adequate income, along with California Pistachio Research Board CPRB management income and reserve funds, to cover the Committees budgeted expenses for the 202021
production year. Funds in the reserve
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are expected to be approximately $197,585 at the end of the 202021
production year, which is within the Orders requirement of carryover funds no more than approximately two production years budgeted expenses.
The major expenditures recommended by the Committee for the 202021 production year include $74,800 for various administrative expenses, $10,000 for compliance expenses, $346,500 for salaries and related employee expenses, $125,000 for research, and $80,000 for a contingency fund. Budgeted expenses for these items for the 201920 production year were $48,900, $10,000, $336,500, $125,000, and $80,000, respectively.
The Committee derived the recommended assessment rate by considering anticipated expenses, an estimated crop of 950 million pounds of assessed weight pistachios, and the amount of funds available in the authorized reserve. Income derived from handler assessments, calculated at $142,500 950,000,000 pounds assessed weight pistachios multiplied by $0.00015 assessment rate, along with CPRB management income $175,200, and funds from the Committees authorized reserve $559,685, will be adequate to cover budgeted expenses of $679,800. Funds in the reserve are estimated to be $197,585 at the end of the 202021 production year $142,500
in assessment income plus $175,200
from CPRB management income plus $559,685 from the Committees reserves minus $679,800 in Committee estimated expenses equals $197,585 remaining in the reserve fund.
The assessment rate established in this rule will continue in effect indefinitely unless modified, suspended, or terminated by USDA
upon recommendation and information submitted by the Committee or other available information.
Although this assessment rate will be in effect for an indefinite period, the Committee will continue to meet prior to or during each production year to recommend a budget of expenses and consider recommendations for modification of the assessment rate. The dates and times of Committee meetings are available from the Committee or USDA. Committee meetings are open to the public and interested persons may express their views at these meetings.
USDA will evaluate Committee recommendations and other available information to determine whether modification of the assessment rate is needed. Further rulemaking would be undertaken as necessary. The Committees 202021 production year budget, and those for subsequent
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