[Federal Register: October 13, 2005 (Volume 70, Number 197)]
[Proposed Rules]
[Page 59678]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr13oc05-30]
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Proposed Rules
Federal Register
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This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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[[Page 59678]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1219
[No. FV-03-702]
Hass Avocado Promotion, Research, and Information Order:
Definition of ``Substantial Activity''
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule; withdrawal.
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SUMMARY: This document withdraws a proposed rule published in the
Federal Register March 18, 2003, which would have terminated the
definition of ``substantial activity'' under the Hass Avocado
Promotion, Research, and Information Order (Order). The proposed action
was expected to increase the number of importers eligible to serve on
the Hass Avocado Board (Board). Based on comments received and other
available information, termination of the definition would not be
appropriate at this time.
DATES: This proposed rule is withdrawn as of October 14, 2005.
FOR FURTHER INFORMATION CONTACT: Marlene Betts, Research and Promotion
Branch, FV, AMS, USDA, Stop 0244, 1400 Independence Avenue, SW., Room
2535-S, Washington, DC 20250-0244, telephone (202) 720-9915, fax (202)
205-2800, e-mail: Marlene.Betts@usda.gov.
SUPPLEMENTARY INFORMATION: The Hass Avocado Promotion, Research, and
Consumer Information Order (Order) is issued under the Hass Avocado
Promotion, Research, and Information Act of 2000 (Act) [7 U.S.C. 7801-
7813].
In determining who is eligible to serve as an importer member of
the Board, the Act provides for a substantial activity test. In order
to implement this provision, the Order needed to provide criteria to
enable the Department to measure substantial activity. The Department
determined that basing a person's eligibility on the person's business
activity and which industry function (producing or importing)
predominates was a reasonable measure that gave a clear and
understandable benchmark (67 FR 7290). In order to serve as an importer
member on the Board, an importer is defined as a person who is involved
in, as a substantial activity, the importation of Hass avocados for
sale or marketing in the United States. Section 1219.30(d) of the Order
states that a substantial activity means that the volume of a person's
Hass avocado imports must exceed the volume of the person's production
or handling of domestic Hass avocados.
This document withdraws the proposed rule published in the Federal
Register March 18, 2003 [68 FR 12881], which would have terminated the
definition of substantial activity under the Order. The proposed action
was expected to increase the number of importers eligible to serve on
the Hass Avocado Board (Board). Nine comments were received in a timely
manner by the comment deadline. Seven commenters were importers of Hass
avocados. Two commenters were Hass avocado industry organizations, one
being the Hass Avocado Board. Seven of the nine commenters opposed
changing the definition in the Order, while two were in support of the
proposed rule change.
Opposing commentors raised a number of issues including whether
other factors limited the number of nominees in the earlier selection
process rather than the definition of substantial activity. The
commentors stated that the size and pool of the eligible importers
(200) was more than adequate to fill the vacancies on the Board.
Concern was expressed as to the relationship of producers and importers
on the Board.
The supporting commentors were of the view that the substantial
activity requirement unnecessarily limited the potential pool of
nominees for service on the Board and denied some of the most
significant and most qualified individuals in the avocado industry to
serve on the Board.
Since the initial nomination process in 2002, there have been
significant changes in the industry. For example, the number of states
and the months of the year that the Mexican Hass avocado industry can
bring avocados in the United States has changed, which can effect
importer eligibility on the Board.
Currently, the Department is in the process of appointing 2
importer members to the Board, this would fill all 4 importer positions
on the Board. However, nominations were not forthcoming from the
industry for the alternate importer positions.
Further, the Department believes that it would be appropriate to
publish an advance notice of rulemaking so that the industry can
provide comments and other pertinent information prior to the
Department publishing any further rulemaking on this issue. An advance
notice of rulemaking will be published in the Federal Register
separately from this document.
Based on comments received and other available information,
termination of the definition would not be appropriate at this time.
Therefore, the proposed rule regarding the termination of the
definition of substantial activity published in the Federal Register
March 18, 2003 [68 FR 12881] is hereby withdrawn.
List of Subjects in 7 CFR Part 1219
Administrative practice and procedure, Advertising, Consumer
Information, Hass avocados, Hass avocado promotion, Marketing
agreements, reporting and recordkeeping requirements.
Authority: 7 U.S.C. 7801-7813.
Dated: October 7, 2005.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. 05-20530 Filed 10-12-05; 8:45 am]
BILLING CODE 3410-02-P