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Rules and Regulations
Federal Register Vol. 86, No. 58
Monday, March 29, 2021

This section of the FEDERAL REGISTER
contains regulatory documents having general applicability and legal effect, most of which are keyed to and codified in the Code of Federal Regulations, which is published under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service 7 CFR Part 984
Doc. No. AOSC20J0011; AMSSC19
0082; SC199841

Walnuts Grown in California; Order Amending Marketing Order No. 984.
Agricultural Marketing Service, USDA.
ACTION: Final rule.
AGENCY:

This final rule amends Marketing Order No. 984, which regulates the handling of walnuts grown in California. The amendments were proposed by the California Walnut Board Board and add the authority for the Board to provide credit for certain market promotion expenses paid by handlers against their annual assessments due under the Order and establish requirements to effectuate the new authority. In addition, the Agricultural Marketing Service AMS
made necessary changes to conform to the amendments adopted.
DATES: This rule is effective April 28, 2021.
SUMMARY:

FOR FURTHER INFORMATION CONTACT:

Matthew Pavone, Chief, Rulemaking Services Branch, Marketing Order and Agreement Division, Specialty Crops Program, AMS, USDA, 1400
Independence Avenue SW, Stop 0237, Washington, DC 20250237; Telephone:
202 7202491, or Andrew Hatch, Acting Director, Marketing Order and Agreement Division, Specialty Crops Program, AMS, USDA, 1400
Independence Avenue SW, Stop 0237, Washington, DC 202500237;
Telephone: 202 7202491, or Email:
Matthew.Pavone@usda.gov or Andrew.Hatch@usda.gov.
Small businesses may request information on this proceeding by contacting Richard Lower, Marketing Order and Agreement Division,
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Specialty Crops Program, AMS, USDA, 1400 Independence Avenue SW, Stop 0237, Washington, DC 202500237;
Telephone: 202 7202491, or Email:
Richard.Lower@usda.gov.
SUPPLEMENTARY INFORMATION: Prior documents in this proceeding: Notice of Hearing issued on February 2, 2020, and published in the February 11, 2020, issue of the Federal Register 85 FR
7669; a Correction to the Notice of Hearing issued on April 9, 2020, and published in the April 10, 2020, issue of the Federal Register 85 FR 20202; a Recommended Decision issued on July 8, 2020, and published in the August 5, 2020, issue of the Federal Register 85
FR 47305; and a Secretarys Decision and Referendum Order issued October 5, 2020, and published in the October 20, 2020, issue of the Federal Register 85 FR 66491.
This action is governed by the provisions of sections 556 and 557 of title 5 of the United States Code and, therefore, is excluded from the requirements of Executive Orders 12866, 13563, and 13175.
Notice of this rulemaking action was provided to tribal governments through the Department of Agricultures USDA
Office of Tribal Relations.
Preliminary Statement This action finalizes amendments to regulations issued to carry out a marketing order as defined in 7 CFR
900.2j. This rule is issued under Marketing Order No. 984, as amended 7
CFR part 984, regulating the handling of walnuts grown in California. Part 984
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 final rule was formulated on the record of a public hearing held via videoconference technology on April 20 and 21, 2020.
The hearing was held pursuant to the provisions of the Act, and the applicable rules of practice and procedure governing the formulation of marketing agreements and orders 7 CFR part 900.
Notice of this hearing was published in the Federal Register on February 11, 2020 85 FR 7669 followed by a Correction to the Notice of Hearing issued on April 9, 2020, and published in the April 10, 2020, issue of the Federal Register 85 FR 20202. The notice of hearing contained one
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proposal submitted by the Board and one submitted by USDA.
Upon the basis of evidence introduced at the hearing and the record thereof, the Administrator of AMS on July 8, 2020, filed with the Hearing Clerk, USDA, a Recommended Decision and Opportunity to File Written Exceptions thereto by September 4, 2020. No exceptions were filed.
A Secretarys Decision and Referendum Order was published in the Federal Register on October 20, 2020
85 FR 66491, directing that a referendum be conducted during the period of November 30 through December 11, 2020, among eligible California walnut growers to determine whether they favored the proposed amendments to the Order. To become effective, per the Order, the amendments had to be approved by at least two-thirds of those growers voting, or by voters representing at least twothirds of the volume of walnuts represented by voters voting in the referendum. The amendment to add credit back authority and establish requirements to effectuate the new authority was favored by 80.5 percent of the growers voting in the referendum, representing 82.8 percent of the total volume of walnuts produced by those voting.
The amendments favored by voters and included in this final order authorize the Board to provide credit for certain market promotion expenses paid by handlers against their annual assessments due under the Order and would establish requirements to effectuate the new authority.
AMS also recommended changes as were necessary to the Order so that all the Orders provisions conform to the effectuated amendments one to the language in 984.46a and the other to the regulatory text in 984.546e5iii.
The language in 984.46a adds creditback authority to the Order. USDA has determined that the language presented in the Notice of Hearing lacked a reference to the proposed, new paragraph b and only included a reference to proposed, new paragraph c. USDA revised the language so that both new paragraphs are referenced in the regulatory text of this decision.
USDA also made a clarifying change to the regulatory text in 984.546e5iii.
The originally proposed wording of this paragraph by the Board does not
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