[Federal Register: December 16, 2003 (Volume 68, Number 241)]
[Rules and Regulations]
[Page 69953-69954]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr16de03-4]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1220
[Doc. No. LS-02-14]
Amendment to the Soybean Promotion and Research Rules and
Regulations
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: This final rule amends the Soybean Promotion and Research
Rules and Regulations (Rules and Regulations) established under the
Soybean Promotion, Research, and Consumer Information Act (Act) by
requiring first purchasers of soybeans and producers marketing
processed soybeans or soybean products of a producer's own production
in the States or regions of Delaware, Louisiana, South Carolina, Texas,
Eastern Region, and the Western Region, to remit and report assessments
on a quarterly basis rather than a monthly basis. This change reduces
the administrative costs of monthly reporting imposed on these smaller
soybean producing States and regions.
EFFECTIVE DATE: April 1, 2004.
FOR FURTHER INFORMATION CONTACT: Kenneth R. Payne, Chief; Marketing
Programs Branch; Livestock and Seed Program; Agricultural Marketing
Service (AMS), USDA, Room 2638-S; STOP 0251; 1400 Independence Avenue,
SW., Washington, DC 20250-0251; telephone 202/720-1115.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
The Office of Management and Budget (OMB) has waived the review
process required by Executive Order 12866 for this action.
Executive Order 12988
This final rule has been reviewed under Executive Order 12988,
Civil Justice Reform. This rule is not intended to have a retroactive
effect.
The Act provides that administrative proceedings must be exhausted
before parties may file suit in court. Under Sec. 1971 of the Act, a
person subject to the Soybean Promotion and Research Order (Order) may
file a petition with the Department of Agriculture (Department) 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
requesting a modification of the Order or an exemption from the Order.
The petitioner is afforded the opportunity for a hearing on the
petition. After a hearing, the Department would rule on the petition.
The Act provides that the district courts of the United States in any
district in which such person is an inhabitant, or has their principal
place of business, has jurisdiction to review the Department's ruling
on the petition, if a complaint for this purpose is filed within 20
days after the date of the entry of the ruling. Further, section 1974
of the Act provides, with certain exceptions, that nothing in the Act
may be construed to preempt or supersede any other program relating to
soybean promotion, research, consumer information, or industry
information organized and operated under the laws of the United States
or any State. One exception in the Act concerns assessments collected
by Qualified State Soybean Boards (QSSBs). The exception provides that
to ensure adequate funding of the operations of QSSBs under the Act, no
State law or regulation may limit or have the effect of limiting the
full amount of assessments that a QSSB in that State may collect, and
which is authorized to be credited under the Act. Another exception
concerns certain referenda conducted during specified periods by a
State relating to the continuation or termination of a QSSB or State
soybean assessment.
Regulatory Flexibility Act
AMS has determined that this final rule will not have a significant
impact on a substantial number of small entities as defined by the
Regulatory Flexibility Act (5 U.S.C. 601 et seq.), because it only
revises the remittance of assessments and reports from a monthly basis
to a quarterly basis for certain States or regions. The States or
regions of Delaware, Louisiana, South Carolina, Texas, Eastern Region,
and the Western Region are being changed from monthly remitting States
or regions to quarterly remitting States or regions to reduce
administrative costs. Because of the minimal number of first
purchasers, producers, and total remittances from these States and
regions, allowing the States or regions to remit and report assessments
on a quarterly basis will benefit QSSBs, the States and regions, and
the United Soybean Board (Board) by reducing the administrative costs
of remitting and reporting assessments on a monthly basis. This action
will likely reduce administrative costs by approximately $10,000. As
such, these changes will not have a significant impact on a substantial
number of small entities. There are an estimated 30,000 soybean
producers who pay assessments and an estimated 150 first purchasers who
collect assessments in the four affected States and two regions. There
are six QSSBs that will be affected under this rule. Most of these
entities would be considered small entities under the criteria
established by the Small Business Administration (13 CFR 121.201).
Paperwork Reduction Act
In accordance with the Paperwork Reduction Act of 1990 (44 U.S.C.
chapter 35), the reporting and recordkeeping requirements included in 7
CFR part 1220 were previously approved by OMB and were assigned OMB
control number 0581-0093. The purpose of this rule is to change the
remitting and reporting of assessments to a quarterly basis from a
monthly basis in four soybean producing States and two regions. There
are a minimal number of first purchasers and producers in these four
States and two regions. This change will not substantially impact the
overall total burden hours. As a result, no change to the previously
submitted burden estimate is necessary.
Background
The Act (7 U.S.C. 6301-6311) provides for the establishment of a
coordinated program of promotion and research designed to strengthen
the soybean industry's position in the marketplace, and to maintain and
expand domestic and foreign markets and uses for soybeans and soybean
products. The program is financed by an assessment of 0.5 of 1 percent
of the net market price of soybeans sold by producers. The final Order
establishing a soybean promotion, research, and consumer information
program was published in the July 9, 1991, issue of the Federal
Register (56 FR 31043) and assessments began on September 1, 1991.
The Soybean Promotion and Research Rules and Regulations, 7 CFR
part 1220, published in the Federal Register on July 2, 1992 (57 FR
29436), specify in Sec. 1220.312(b) that first purchasers and
producers responsible for remitting assessments shall remit assessments
and reports on a monthly or quarterly basis depending upon the State or
region in which they are located. This rule will change the States or
regions of Delaware, Louisiana, South Carolina, Texas, Eastern Region,
and the Western Region from remitting and reporting assessments on a
monthly basis to a quarterly basis. Currently, 15 States and 2 regions
report on a monthly basis and 14 States report on a quarterly basis.
The Board, in conjunction with the affected States and regions,
[[Page 69954]]
recommended to AMS to change the period for remitting and reporting
assessments for the following States or regions from a monthly basis to
quarterly basis: Delaware, Louisiana, South Carolina, Texas, Eastern
Region, and the Western Region.
This rule will assist these smaller soybean producing States and
regions (listed above) in reporting and remitting their assessments to
the Board. The Board has decided that the current requirement to remit
and report assessments on a monthly basis is no longer necessary given
the minimal number of first purchasers and total remitters from these
smaller soybean producing States and regions. Allowing these States and
regions to become quarterly remitters would reduce their administrative
costs. It is estimated that administrative costs will be reduced by
approximately $10,000 if first purchasers of soybeans and producers
marketing processed soybeans and soybean products of a producer's own
production in the States and regions of Delaware, Louisiana, South
Carolina, Texas, the Eastern Region, and the Western Region remit and
report assessments on a quarterly basis. Producers that market soybeans
to first purchasers will continue to pay the assessment at the time of
settlement. Due to the minimal number of first purchasers and total
remittances in these States and regions, allowing the States or regions
to remit quarterly will be beneficial to the States, regions, and the
Board by reducing the administrative costs of collecting assessments.
Comments
On June 18, 2003, the Department published in the Federal Register
(68 FR 36498) for comment a proposed rule to amend the Rules and
Regulations established under the Act. The proposed rule provided first
purchasers of soybeans and producers marketing processed soybeans or
soybean products of a producer's own production in the States or
regions of Delaware, Louisiana, South Carolina, Texas, Eastern Region,
and the Western Region, to remit and report assessments on a quarterly
basis rather than a monthly basis.
The proposed rule was published with a request for comments to be
submitted by July 18, 2003. The Department received one comment, in a
timely manner, from an individual who did not support the program in
general. This commenter further questioned the impact of the proposal
on assessments. In the proposal, we noted that the rule would assist
smaller soybean producing States and regions in reporting and remitting
their assessments to the Board. We concluded that allowing the States
or regions to remit quarterly would be beneficial to the States,
regions, and the Board by reducing the administrative costs of
collecting assessments. As such this action should impact assessments
favorably.
Based on the Board's recommendation, in conjunction with the
affected States and regions, and no substantive comments, AMS is
changing the period for remitting and reporting assessments for the
following States or regions from a monthly basis to a quarterly basis:
Delaware, Louisiana, South Carolina, Texas, Eastern Region, and the
Western Region.
This rule will become effective April 1, 2004.
List of Subjects in 7 CFR Part 1220
Administrative practice and procedure, Advertising, Agricultural
research, Marketing agreements, Soybeans and soybean products,
Reporting and recordkeeping requirements.
0
For the reasons set forth in the preamble, Title 7, part 1220 is
amended as follows:
PART 1220--SOYBEAN PROMOTION, RESEARCH, AND CONSUMER INFORMATION
0
1. The authority citation for 7 CFR part 1220 continues to read as
follows:
Authority: 7 U.S.C. 6301-6311.
0
2. In Sec. 1220.312, the table in paragraph (b) is revised to read as
follows:
Sec. 1220.312 Remittance of assessments and submission of reports to
United Soybean Board or Qualified State Soybean Board.
* * * * *
(b) * * *
------------------------------------------------------------------------
Monthly Quarterly
------------------------------------------------------------------------
Arkansas Alabama
Iowa Delaware
Kansas Florida
Kentucky Georgia
Michigan Illinois
Minnesota Indiana
Missouri Louisiana
Mississippi Maryland
North Carolina North Dakota
Tennessee Nebraska
Wisconsin New Jersey
Ohio
Oklahoma
Pennsylvania
South Carolina
South Dakota
Texas
Virginia
Eastern Region
Western Region
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* * * * *
Dated: December 9, 2003.
A.J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 03-31000 Filed 12-15-03; 8:45 am]
BILLING CODE 3410-02-P