[Federal Register: September 21, 2005 (Volume 70, Number 182)]
[Rules and Regulations]
[Page 55225-55227]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr21se05-1]
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Rules and Regulations
Federal Register
________________________________________________________________________
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.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
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[[Page 55225]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1216
[FV-05-701-IFR]
Amendment to the Peanut Promotion, Research, and Information
Order
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim final rule with request for comments.
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SUMMARY: The purpose of this rule is to bring the provisions of the
Peanut Promotion, Research and Information Order (Order), into
conformity with changes that have occurred since the implementation of
the Order with regard to the collection of assessments. This order is
issued under the authority of the Commodity Promotion, Research and
Information Act of 1996. This rule invites comments on changes to the
Order provisions on assessments and the deletion of a number of
obsolete definitions.
DATES: September 22, 2005; comments received by October 21, 2005 will
be considered prior to issuance of a final rule.
ADDRESSES: Interested persons are invited to submit written comments
concerning this rule. Comments must be sent to the Docket Clerk,
Research and Promotion Branch, Fruit and Vegetable Programs, AMS, USDA,
1400 Independence Avenue, SW., Stop 0244, Washington, DC 20250-0237;
Fax: (202) 205-2800, or E-mail:deborah.simmons@usda.gov; or Internet:
http://www.regulations.gov. All comments should reference the docket
number, the date and the page number of this issue of the Federal
Register and will be made available for public inspection in the Office
of the Docket Clerk during regular business hours, or can be viewed at:
http//http://www.ams.usda.gov/fv/rpb.html.
FOR FURTHER INFORMATION CONTACT: Deborah S. Simmons, Research and
Promotion Branch, Fruit and Vegetable Programs, AMS, USDA, Stop 0244,
1400 Independence Avenue, SW., Room 2535 South Building, Washington,
D.C. 20250-0244; telephone (202) 720-9916 or fax (202) 205-2800.
SUPPLEMENTARY INFORMATION: Legal Authority. The Peanut Promotion,
Research and Information Order (Order) (7 CFR Part 1216) became
effective July 29, 1999. It was issued under the Commodity Promotion,
Research, and Information Act of 1996 (Act) (7 U.S.C. 7401-7425).
Executive Order 12988
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. This rule is not intended to have retroactive effect.
Section 524 of the Act provides that the Act shall not affect or
preempt any State or local laws authorizing promotion or research
relating to an agricultural commodity.
Under Section 519 of the Act, a person subject to the Order may
file a petition with the Secretary of Agriculture (Secretary) stating
that the Order, any provision of the Order, or any obligation imposed
in connection with the Order, is not established in accordance with the
law, and requesting a modification of the Order or an exemption from
the Order. Any petition filed challenging the Order, any provision of
the Order, or any obligation imposed in connection with the Order,
shall be filed within two years after the effective date of the Order,
provision, or obligation subject to challenge in the petition. The
petitioner will have the opportunity for a hearing on the petition.
Thereafter, the Secretary will issue a ruling on a petition. The Act
provides that the district court of the United States for any district
in which the petitioner resides or conducts business shall have the
jurisdiction to review a final ruling on the petition, if the
petitioner files a complaint for that purpose not later than 20 days
after the date of the entry of the Secretary's final ruling.
Executive Order 12866
This rule has been determined not significant for purposes of
Executive Order 12866 and therefore has not been reviewed by the Office
of Management and Budget (OMB).
Regulatory Flexibility Act and Paperwork Reduction Act
In accordance with the Regulatory Flexibility Act (RFA) [5 U.S.C.
601 et seq.], the Agency has examined the impact of this rule on small
entities. The purpose of the RFA is to fit regulatory actions to the
scale of businesses subject to such actions so that small businesses
will not be disproportionately burdened.
There are approximately 13,000 producers and 57 first handlers of
peanuts subject to the program. Most of the producers would be
classified as small businesses under the criteria established by the
Small Business Administration (SBA) [13 CFR 121.201]. Most first
handlers would not be classified as small businesses. The SBA defines
small agricultural handlers as those whose annual receipts are less
than $6 million, and small agricultural producers are defined as those
having annual receipts of not more than $500,000 annually.
A number of changes have occurred to Farm Service Agency loan
programs for peanuts since the 2002 Farm Bill. In view of this, several
provisions of the Order needed to be updated. The changes are to the
collection process for assessments, Section 1216.51 of the Order as
amended. This section included provisions concerning collection of
assessments and peanuts placed under marketing assistance loans. The
Commodity Credit Corporation will deduct and remit to the Board
assessments deducted from the proceeds of the loan. Producers are also
required to pay assessments directly to the Board in certain
circumstances.
This rule, however, does not alter the amount of the assessment or
the obligation of producers of peanuts to pay the assessment.
Additional changes are made to amend definitions and delete
definitions that are no longer needed. Accordingly, Sec. 1216.2
concerning additional peanuts, Sec. 1216.3 concerning area marketing
associations, Sec. 1216.6 concerning contract export additional
peanuts, and Sec. 1216.24 concerning quota peanuts are deleted.
There are no relevant federal rules that duplicate, overlap, or
conflict with the proposed rule.
[[Page 55226]]
In accordance with the Office of Management and Budget (OMB)
regulation [5 CFR Part 1320] which implements the Paperwork Reduction
Act of 1995 [44 U.S.C. Chapter 35], the information collection and
recordkeeping requirements that are imposed by the Order have been
approved previously under OMB control number 0581-0093. This rule does
not result in a change to the information collection and recordkeeping
requirements previously approved.
We have performed this Initial Regulatory Flexibility Analysis
regarding the impact of this proposed amendment to the Order on small
entities, and we invite comments concerning potential effects of the
proposed amendment.
Background
The Order became effective on July 29, 1999, after a national
referendum among all peanut producers. Under the Order, peanut
producers are assessed 1 percent of the total value of all farmers
stock peanuts, which currently generates about $6 million in annual
revenues. The program is administered by the Board under USDA
supervision.
The Board is composed of 10 members and 10 alternates, nominated by
producers and appointed by the Secretary of Agriculture. There is one
member and alternate for each of the nine primary peanut-producing
states and one at-large member and alternate representing all other
peanut-producing states.
Currently, the nine major peanut-producing states are (in
descending order) Georgia, Texas, Alabama, North Carolina, Florida,
Virginia, Oklahoma, New Mexico, and South Carolina. The minor peanut-
producing states are Arizona, Arkansas, California, Kansas, Louisiana,
Mississippi, Missouri, and Tennessee.
There is an assessment rate of 1 percent of the price paid for all
farmers stock peanuts sold. Peanut producers may sell their peanuts
commercially or put them in the market assistance loan program. For
peanuts sold commercially, the first handler will remit the assessment
to the Board.
Further Sec. 1216.51(d) currently provides that for peanuts placed
under loan with the Department's Commodity Credit Corporation, each
area marketing association shall remit to the Board the following: (1)
One (1) percent of the initial price paid for either quota or
additional peanuts no more than 60 days after the last day of the month
in which the peanuts were placed under loan; and (2) One (1) percent of
the profit from the sale of the peanuts within 60 days after the final
day of the area marketing association's fiscal year.
A number of changes have occurred to Farm Service Agency loan
program for peanuts since the 2002 Farm Bill. In view of this, the
Board submitted a request to amend the Order to update the collection
of assessments for all peanuts, including loan peanuts. This rule does
not alter the amount of the assessment or the obligation of producers
of peanuts to pay the assessment.
This rule does provide in Sec. 1216.51 (d) that for peanuts placed
under a marketing assistance loan with the Department's Commodity
Credit Corporation, the Commodity Credit Corporation or any entity
determined by the Commodity Credit Corporation shall deduct and remit
to the Board, from the proceeds of the loan paid to the producer, (1)
one (1%) percent of the loan value of the peanuts as determined by the
warehouse receipt accompanying such peanuts, no more than 60 days after
the last day of the month in which the peanuts were placed under a
marketing assistance loan.
This rule also provides in Sec. 1216.51(e) that if a producer
places peanuts under a marketing assistance loan and subsequently
redeems and sells such peanuts at a price greater than the loan amount,
the producer shall pay the difference between the sales price and the
loan amount value of the peanuts multiplied by one (1%) percent to the
Board within sixty (60) days of the date of sale.
In accordance with the Office of Management and Budget (OMB)
regulation [5 CFR Part 1320] which implements the Paperwork Reduction
Act of 1995 [44 U.S.C. Chapter 35], the information collection and
recordkeeping requirements that are imposed by this Order were
submitted to OMB for approval and were approved under OMB control
number 0581-0093. This proposal will not cause any change in the
information collection and recordkeeping requirement.
Additional changes are made to amend definitions and delete
definitions that are no longer needed. Accordingly, Sec. 1216.2
concerning additional peanuts, Sec. 1216.3 concerning area marketing
associations, Sec. 1216.6 concerning contract export additional
peanuts, and Sec. 1216.24 concerning quota peanuts are deleted.
This rule invites comments on the amendment to the collection
process set forth in the Order and on the deletion of Sec. 1216.2,
Sec. 1216.3, Sec. 1216.6 and Sec. 1216.24. Any comments received
before the October 21, 2005 will be considered prior to finalization of
this rule.
Pursuant to 5 U.S.C. 553, it is also found and determined upon good
cause that it is impracticable, unnecessary, and contrary to the public
interest to give preliminary notice prior to putting this rule into
effect and that good cause exists for not postponing the effective date
of this rule until 30 days after publication in the Federal Register
because: (1) The crop year began on August 1, 2005 and this action
should be in place as soon as possible and (2) this notice does not
alter the amount of assessment but only changes provisions concerning
the collection of assessment. For these reasons, a thirty-day comment
period is deemed appropriate.
General Findings
List of Subjects in 7 CFR Part 1216
Administrative practice and procedure; Advertising; Agricultural
research; Peanuts; Reporting and recordkeeping requirements.
0
For the reasons set forth in the preamble, Title 7 of Chapter XI of the
Code of Federal Regulations is amended as follows:
PART 1216--PEANUT PROMOTION, RESEARCH, AND INFORMATION ORDER
0
1. The authority citation for part 1216 continues to read as follows:
Authority: 7 U.S.C. 7401-7425.
Sec. Sec. 1216.2, 1216.3, 1216.6, 1216.24 [Removed and reserved]
0
2. Sections 1216.2, 1216.3, 1216.6 and 1216.24 are removed and
reserved.
0
3. Section 1216.51 is revised to read as follows:
Sec. 1216.51 Assessments.
(a) The funds necessary to pay for programs and other costs
authorized by this part shall be acquired by the levying of assessments
upon producers in a manner prescribed by the Secretary.
(b) Each first handler, at such times and in such manner as
prescribed by the Secretary, shall collect from each producer or first
purchaser/handler and pay assessments to the Board on all peanuts
handled, including peanuts produced by the first handler, no later than
60 days after the last day of the month in which the peanuts were
marketed.
(c) Such assessments shall be levied at a rate of one (1%) percent
of the price paid for all farmers stock peanuts sold. Price paid is one
(1%) percent of loan value.
(d) For peanuts placed under a marketing assistance loan with the
[[Page 55227]]
Department's Commodity Credit Corporation, the Commodity Credit
Corporation, or any entity determined by the Commodity Credit
Corporation shall deduct and remit to the Board, from the proceeds of
the loan paid to the producer, one (1%) percent of the loan value of
the peanuts as determined by the warehouse receipt accompanying such
peanuts, no more than 60 days after the last day of the month in which
the peanuts were placed under a marketing assistance loan.
(e) If a producer places peanuts under a marketing assistance loan
and subsequently redeems and sells such peanuts at a price greater than
the loan amount, the producer shall pay the difference between the
sales price and the loan value of the peanuts multiplied by one (1%)
percent to the Board within sixty (60) days after the final day of the
loan availability period.
(f) All assessments collected under this section are to be used for
expenses and expenditures pursuant to this Order and for the
establishment of an operating reserve as prescribed in the Order.
(g) The Board shall impose a late payment charge on any person who
fails to remit to the Board the total amount for which the person is
liable on or before the payment due date established under this
section. The late payment charge will be in the form of interest on the
outstanding portion of any amount for which the person is liable. The
rate of interest shall be prescribed in regulations issued by the
Secretary.
(h) Persons failing to remit total assessments due in a timely
manner may also be subject to actions under federal debt collection
procedures.
(i) The Board may authorize other organizations to collect
assessments on its behalf with the approval of the Secretary.
(j) The assessment rate may not be increased unless the new rate is
approved by a referendum among eligible producers.
Dated: September 15, 2005.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. 05-18759 Filed 9-20-05; 8:45 am]
BILLING CODE 3410-02-P