[Federal Register: April 4, 2007 (Volume 72, Number 64)]
[Rules and Regulations]
[Page 16265-16267]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr04ap07-3]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 926
[Docket No. AMS-FV-06-0173; FV06-926-1 FIR]
Data Collection, Reporting and Recordkeeping Requirements
Applicable to Cranberries Not Subject to the Cranberry Marketing Order;
Suspension of Provisions Under 7 CFR Part 926
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: The U.S. Department of Agriculture (USDA) is adopting, as a
final rule, without change, an interim final rule suspending Part 926
in the Code of Federal Regulations, which requires persons engaged in
the handling or importation of fresh cranberries or cranberry products,
but not subject to the reporting requirements of the Federal cranberry
marketing order (7 CFR part 929), to report sales, acquisition, and
inventory information to the Cranberry Marketing Committee (Committee),
and to maintain adequate records of such activities. The establishment
of these requirements is authorized under section 8(d) of the
Agricultural Marketing Agreement Act of 1937 (Act). The Committee,
which administers marketing order 929, regulating the handling of
cranberries grown in Massachusetts, Rhode Island, Connecticut, New
Jersey, Wisconsin, Michigan, Minnesota, Oregon, Washington, and Long
Island in the State of New York, has been delegated by USDA to collect
such information authorized under Part 926. Based on information
provided by the Committee, USDA has determined that the
[[Page 16266]]
collection of information under Part 926 is of marginal benefit to the
industry and should continue to be suspended.
DATES: Effective Date: May 4, 2007.
FOR FURTHER INFORMATION CONTACT: Patricia A. Petrella or Kenneth G.
Johnson, DC Marketing Field Office, Marketing Order Administration
Branch, Fruit and Vegetable Programs, AMS, USDA, Unit 155, 4700 River
Road, Riverdale, Maryland 20737; Telephone: (301) 734-5243, Fax: (301)
734-5275, or E-mail at
Patricia.Petrella@usda.gov or Kenneth.Johnson@usda.gov.
Small businesses may request information on complying with this
regulation by contacting Jay Guerber, Marketing Order Administration
Branch, Fruit and Vegetable Programs, AMS, USDA, 1400 Independence
Avenue, SW., STOP 0237, Washington, DC 20250-0237; Telephone: (202)
720-2491, Fax: (202) 720-8938, or E-mail: Jay.Guerber@usda.gov.
SUPPLEMENTARY INFORMATION: This rule is issued pursuant to the
Agricultural Marketing Agreement Act of 1937, as amended [7 U.S.C. 601-
674], hereinafter referred to as the ``Act''.
USDA is issuing this rule in conformance with Executive Order
12866.
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. This rule is not intended to have retroactive effect.
This rule will not preempt any State or local laws, regulations, or
policies, unless they present an irreconcilable conflict with this
rule. There are no administrative procedures which must be exhausted
prior to any judicial challenge to the provisions of this rule.
This rule continues in effect the action that suspended
indefinitely Part 926 of the Code of Federal Regulations, which
contains the reporting and recordkeeping requirements for entities
engaged in the handling or importation of fresh cranberries or
cranberry products but not subject to the cranberry marketing order (7
CFR part 929) (order). Under Part 926, such entities are required to
provide to USDA or its delegate, certain information regarding the
sales, acquisitions, and inventories of fresh cranberries or cranberry
products. USDA delegated authority to the Committee to collect such
information. The Committee, which is also responsible for administering
the order, has used this information to analyze market conditions and
make volume control recommendations to USDA. The Committee has
determined that this data collection under Part 926 is not needed at
this time, and advised USDA of its findings following its meeting on
June 6, 2006.
Section 608d(3) of the Act, as amended, authorizes the collection
of cranberry and cranberry product inventory information from producer-
handlers, second handlers, processors, brokers, and importers that are
not regulated by the order. Pursuant to this statutory authority, USDA
issued reporting and recordkeeping requirements for these entities
under Part 926 on January 12, 2005 (70 FR 1995). Sections 926.16,
926.17, and 926.18 require these entities to file and maintain certain
reports and other information that are also required of handlers
regulated under the order.
Part 926 was implemented to allow the Committee access to cranberry
and cranberry product inventory information from throughout the
industry, including segments outside the scope of the order, so that it
could make more informed marketing decisions. For example, the
Committee makes annual volume control recommendations to USDA that are
based upon estimated cranberry production, acquisition, inventory, and
sales for the total industry. Adding inventory data collected from
entities outside the order to the data reported by handlers under the
order was expected to provide a more accurate estimate of the total
industry inventory, thus enabling the Committee to make more informed
volume control recommendations.
However, after more than a year's experience collecting the data
pursuant to Part 926, the Committee has found that most inventories are
maintained by handlers regulated under the order, and that the amount
of cranberries and cranberry products held by entities outside the
order is minimal and does not affect the Committee's marketing
decisions. The Committee met on June 6, 2006, to evaluate the
effectiveness of the data collection conducted under Part 926. Taking
into account the marginal benefits of this data collection, the
committee advised USDA that the reporting and recordkeeping provisions
under Part 926 should be suspended.
This action continues in effect, an interim final rule suspending
the reporting and recordkeeping requirements of Part 926 indefinitely.
Should changes occur in the cranberry industry that would warrant
reimplementation of these requirements USDA may take appropriate action
to reinstate these provisions under Part 926.
Final Regulatory Flexibility Analysis
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA), the Agricultural Marketing Service (AMS) has considered the
economic impact of this action on small entities. Accordingly, AMS has
prepared this final regulatory flexibility analysis.
The purpose of the RFA is to fit regulatory actions to the scale of
business subject to such actions in order that small businesses will
not be unduly or disproportionately burdened. Small agricultural
service firms are defined by the Small Business Administration (SBA)
[13 CFR 121.201] as those having annual receipts less than $6,500,000.
Small agricultural producers are defined as those with annual receipts
of less than $750,000. The Committee estimates that there are
approximately 56 handlers, producer-handlers, processors, brokers, and
importers subject to the data collection requirements under Part 926.
The Committee further estimates that most of the entities required to
file reports under Part 926 would be considered small under the SBA
criteria.
This final rule continues to suspend indefinitely the provisions of
7 CFR part 926, which require persons engaged in the handling of
cranberries or cranberry products (including producer-handlers, second-
handlers, processors, brokers, and importers) but not subject to the
order to maintain adequate records and report sales, acquisitions, and
inventory information to the Committee. Part 926 was established
because the Committee needed inventory information from non-regulated
entities as well as those subject to the order to better formulate its
marketing decisions and recommendations. It continues to be suspended
because the Committee has determined that, considering the size of the
inventories held outside the scope of the order, collecting that data
from the non-regulated entities is of marginal benefit to the industry.
This action continues to suspend the reporting and recordkeeping
requirements for these cranberry handlers and importers. It also
reduces the Committee's costs associated with the collection and
maintenance of that information.
Alternatives to this action included continuing to collect
information as currently provided in Part 926, raising the inventory
threshold that triggers the need for a non-regulated entity to report
its inventory so that only those entities holding the largest
inventories would be required to file reports, or requesting that non-
regulated entities provide inventory information voluntarily.
[[Page 16267]]
However, the Committee advised USDA that most cranberries and cranberry
products are currently held in the inventories of the regulated
handlers until needed by processors, which greatly reduces the
likelihood that large unreported inventories exist. Therefore, the
collection of inventory information from entities under Part 926 no
longer benefits the industry.
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
Chapter 35), the information collection requirements related to this
rule were previously approved by the Office of Management and Budget
(OMB) and assigned OMB No. 0581-0222, Data Collection Requirements
Applicable to Cranberries Not Subject to the Cranberry Marketing Order
(7 CFR part 926). This information collection package expires August
31, 2007. We have submitted this information collection package
(currently under OMB review) for renewal and requested OMB approval for
a 1-hour burden placeholder for future reimplementation should changes
occur in the cranberry industry that require reinstatement of these
reporting and recordkeeping requirements under Part 926.
The AMS is committed to complying with the E-Government Act, to
promote the use of the Internet and other information technologies to
provide increased opportunities for citizen access to Government
information and services, and for other purposes.
In addition, USDA has not identified any relevant Federal rules
that duplicate, overlap or conflict with this rule.
An interim final rule concerning this action was published in the
Federal Register on December 28, 2006 (7 FR 78044). Copies of the rule
were made available through the Internet by the Office of the Federal
Register and USDA. A 30-day comment period ending February 26, 2007,
was provided to allow interested persons to respond to the interim
final rule. No comments were received.
A small business guide on complying with fruit, vegetable, and
specialty crop marketing agreements and orders may be viewed at: http//
http://www.ams.usda.gov/fv/moab/html. Any questions about the compliance guide
should be sent to Jay Guerber at the previously mentioned address in
the FOR FURTHER INFORMATION CONTACT section.
After consideration of all relevant material presented, it is found
that Part 926, as suspended in this action, as hereinafter set forth,
does not tend to effectuate the declared policy of the Act and that the
interim final rule, as published in the Federal Register (71 FR 78044,
December 28, 2006), is adopted, without change, in this final rule.
List of Subjects in 7 CFR Part 926
Cranberries and cranberry products, Reporting and recordkeeping
requirements.
PART 926--DATA COLLECTION, REPORTING AND RECORDKEEPING REQUIREMENTS
APPLICABLE TO CRANBERRIES NOT SUBJECT TO THE CRANBERRY MARKETING
ORDER
0
Accordingly, the interim final rule suspending 7 CFR part 926 which was
published at 71 FR 78044 on December 28, 2006, is adopted as a final
rule without change.
Dated: March 29, 2007.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. E7-6241 Filed 4-3-07; 8:45 am]
BILLING CODE 3410-02-P