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Federal Register / Vol. 86, No. 58 / Monday, March 29, 2021 / Rules and Regulations the order is not in accordance with law and request a modification of the order or to be exempted therefrom. 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 entry of the ruling.
Order Amending the Order Regulating the Handling of Walnuts Grown in California 1
Findings and Determinations The findings and determinations hereinafter set forth are supplementary to the findings and determinations that 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.
a Findings and Determinations Upon the Basis of the Hearing Record Pursuant to the provisions of the Agricultural Marketing Agreement Act of 1937, as amended 7 U.S.C. 601674, and the applicable rules of practice and procedure effective thereunder 7 CFR
part 900, a public hearing was held upon proposed further amendment of Marketing Order No. 984, regulating the handling of walnuts grown in California.
Upon the basis of the record, it is found that:
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 the production area in the same manner as, and is applicable only to, persons in the respective classes of commercial and industrial activity specified in the marketing order upon which a hearing has been held;
3 The marketing order, as amended, and as hereby proposed to be further amended, is limited in its application to the smallest regional production area 1 This Order shall not become effective unless and until the requirements of 900.14 of the rules of practice and procedure governing proceedings to formulate marketing agreements and marketing orders have been met.

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that 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, prescribes, 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 grown in California; and 5 All handling of walnuts grown 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 Recommended Decision issued on July 8, 2020, and published in the August 5, 2020, issue of the Federal Register 85 FR 47305
will be and are the terms and provisions of this order amending the order and are set forth in full herein.
List of Subjects in 7 CFR Part 984
Marketing agreements, Nuts, Reporting and recordkeeping requirements, Walnuts.
Accordingly, AMS amends 7 CFR part 984 as follows:
PART 984WALNUTS GROWN IN
CALIFORNIA
1. The authority citation for 7 CFR
part 984 continues to read as follows:

Authority: 7 U.S.C. 601674.

2. Revise 984.46 to read as follows:

984.46

Research and development.

a Research and development authorities. The Board, with the approval of the Secretary, may establish or provide for the establishment of production research, marketing research and development projects, and marketing promotion, including paid advertising, designed to assist, improve, or promote the marketing, distribution, and consumption or efficient production of walnuts. The expenses of such projects shall be paid from funds collected pursuant to 984.69 and
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984.70 and may be credited back pursuant to paragraphs b and c of this section.
b Credit-back for promotion expenses. The Board may provide for crediting the pro rata expense assessment obligations of a handler with such portion of his or her direct expenditure for marketing promotion, including paid advertising, as may be authorized. The credit-back amount available to each handler shall be determined by that handlers percent of the industrys total volume of walnuts handled during the prior marketing year multiplied by the current marketing years credit-back program budget. No handler shall receive credit-back for any creditable expenditures that would exceed the total amount of credit-back available to him or her for the applicable marketing year. Further, no handler shall receive credit-back in an amount that exceeds that handlers assessments paid in the applicable marketing year at the time the creditback application is made. Marketing promotion expenses shall be credited at a rate recommended by the Board and approved by the Secretary, where the credit rate is based on the amount per dollar of marketing promotion expenses for creditable expenditures paid by a handler during the applicable marketing year. Credit may be paid directly to the handler as a reimbursement of assessments paid or may be issued as recommended by the Board and approved by the Secretary. The Board may also establish, subject to the approval of the Secretary, different credit rates for different products or different marketing promotion activities according to priorities determined by the Board and its marketing plan.
c Creditable expenditures. The Board, with the approval of the Secretary, may credit-back all or any portion of a handlers direct expenditures for marketing promotion including paid advertising that promotes the sale of walnuts, walnut products or their uses. Such expenditures may include, but are not limited to, money spent for advertising space or time in newspapers, magazines, radio, television, transit, and outdoor media, including the actual standard agency commission costs not to exceed 15 percent, or as otherwise recommended by the Board and approved by the Secretary.
3. Add subpart D, consisting of 984.546, to read as follows:

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