[Federal Register Volume 73, Number 18 (Monday, January 28, 2008)]
[Proposed Rules]
[Pages 4762-4763]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-1433]
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Proposed Rules
Federal Register
________________________________________________________________________
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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Federal Register / Vol. 73, No. 18 / Monday, January 28, 2008 /
Proposed Rules
[[Page 4762]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1160
[Docket No. AMS-DA-07-0156; DA-07-05]
National Fluid Milk Processor Promotion Program: Invitation To
Submit Comments on Proposed Amendments to the Fluid Milk Promotion
Order
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
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SUMMARY: This document invites comments on a proposed amendment to the
Fluid Milk Promotion Order (Order). The proposed amendment, requested
by the National Fluid Milk Processor Promotion Board (Board), which
administers the Order, would reduce the burden of late-payment charges
applied to processors who underreport the amount of assessments which
they owe to the Board, provided that the processor has not made more
than two reporting errors in the prior 12 months. This amendment would
reduce the burden of late-payment charges on processors who underpay
assessments due to unintentional errors or miscalculations. The Board
believes the late-payment charge is a necessary provision of the Order
to encourage payment by all processors subject to the assessment and
helps ensure the receipt of assessments owed to the Board. However, the
Board also believes that there are instances when unintentional errors
and miscalculations occur, and in such cases, the late-payment charge
could be viewed as excessive. All other provisions of the Order would
remain unchanged.
DATES: Comments must be submitted on or before February 27, 2008.
ADDRESSES: Comments on this proposed rule should be identified with the
docket number AMS-DA-07-0156; DA-05-07. Commenters should identify the
date and page number of the issue of the Proposed Rule. Interested
persons may comment on this proposed rule using any of the following
procedures:
Mail: Comments may be submitted by mail to Whitney A.
Rick, Chief, Promotion and Research Branch, Dairy Programs, AMS, USDA,
1400 Independence Ave., SW., Room 2958-S, Stop 0233, Washington, DC
20250-0233.
Internet: www.regulations.gov.
All comments to this proposed rule, submitted by the above
procedures will be available for viewing at: www.regulations.gov, or at
USDA, AMS, Dairy Programs, Promotion and Research Branch, Room 2958-S,
1400 Independence Ave., SW., Washington, DC, from 9 a.m. to 4 p.m.,
Monday through Friday, (except on official Federal holidays). Persons
wanting to view comments in Room 2958-S are requested to make an
appointment in advance by calling (202) 720-6909.
FOR FURTHER INFORMATION CONTACT: Whitney A. Rick, Chief, Promotion and
Research Branch, Dairy Programs, AMS, USDA, 1400 Independence Ave.,
SW., Room 2958-S, Stop 0233, Washington, DC 20250-0233. Phone: (202)
720-6909. E-mail: [email protected].
SUPPLEMENTARY INFORMATION: The Fluid Milk Promotion Order is issued
under the Fluid Milk Promotion Act as amended [7 U.S.C. 6401-6417].
Executive Order 12866
The Office of Management and Budget has waived the review process
required by Executive Order 12866 for this action.
Executive Order 12988
This proposed rule has been reviewed under Executive Order 12988,
Civil Justice Reform. This proposed rule is not intended to have a
retroactive effect. If adopted, this rule would not preempt any State
or local laws, regulations, or policies unless they present an
irreconcilable conflict with this rule.
The Act provides that administrative proceedings must be exhausted
before parties may file suit in court. Under section 1999K of the Act,
any person subject to the Order may file with the Secretary a petition
stating that the Order, any provision of the Order, or any obligation
imposed in connection with the Order is not in accordance with the law
and request a modification of the Order or to be exempted from the
Order. Such person is afforded the opportunity for a hearing on the
petition. After a hearing, the Secretary would rule on the petition.
The Act provides that the district court of the United States in any
district in which the person is an inhabitant, or has his principal
place of business, has jurisdiction to review the Secretary's ruling on
the petition, provided a complaint is filed not later than 20 days
after the date of the entry of the ruling.
Regulatory Flexibility Act
The Agricultural Marketing Service (AMS) has determined that this
rule will not have a significant economic impact on a substantial
number of small entities, as defined by the Regulatory Flexibility Act
(5 U.S.C. 601-612). The proposed rule imposes no new burden on the
industry but will in fact reduce late-payment charges applied to
processors who underreport the amount of assessments which they owe to
the Board provided that the processors have not made more than two
reporting errors in the prior 12 months.
Small businesses in the fluid milk processing industry have been
defined by the Small Business Administration as those processors
employing not more than 500 employees. For purposes of determining a
processor's size, if the plant is part of a larger company operating
multiple plants that collectively exceed the 500-employee limit, the
plant will be considered a large business even if the local plant has
fewer than 500 employees. As of June 2007, there were approximately 100
fluid milk processors subject to the provisions of the Order. Most of
these processors are considered small entities.
Paperwork Reduction Act
Information collection requirements and recordkeeping provisions
contained in 7 CFR part 1250 have been previously approved by the
Office of Management and Budget and assigned OMB Control No. 0581-0093
under the Paperwork Reduction Act of 1980.
Background and Proposed Changes
The Fluid Milk Promotion Order (7 CFR Part 1160) is authorized
under the Fluid Milk Promotion Act of 1990 (Act) (7 U.S.C. 6401-6417).
The Order in section 1160.211(a)(1) provides that each fluid milk
processor shall pay to the Board an assessment of $0.20 per
hundredweight on fluid milk products
[[Page 4763]]
processed and marketed commercially in consumer-type packages in the
United States by such fluid milk processors. The Order further provides
in section 1160.213 that if the Board or the Secretary determines
through an audit of a processor's reports, records, books or accounts
or through some other means that additional money is due to the Board,
the Board is to notify that processor of the amount due or overpaid. If
the processor owes money to the Board, the processor is to remit the
underpaid amount by the next due date as provided in section 1160.211
of the Order. If the processor has overpaid, that amount is credited to
the processor's account and applied against amounts due in succeeding
months.
At the request and on behalf of the Board, Milk Market
Administrators verify the total pounds of fluid milk products processed
and commercially marketed in consumer-type packages (excluding
delivering directly to the residence of a consumer) that were reported
to the Board by the milk processors. Total fluid milk products are the
sum of fluid milk product route sales and packaged fluid milk products
sold to any other plant, less any fluid milk products purchased from
other plants. The results of the Market Administrators' verification
are forwarded to the Board, and, in accordance with section
1160.214(a), any unpaid assessments are increased by 1.5 percent each
month beginning with the day following the date such assessments were
due.
The Board has proposed an amendment to section 1160.213 of the
Order so that processors who mistakenly underreport their pounds of
fluid milk processed and marketed commercially (excluding direct
delivery to the residence of a consumer) will not be required to pay
late-fee charges on additional assessments owed the Board provided: (1)
That no more than two erroneous reports have occurred in the preceding
12-month period and; (2) the processor pays its past due assessments
not later than the last day of the month following notification by the
Board that additional assessments are due. If more than two erroneous
reports have occurred in the preceding 12-month period or the processor
fails to submit a past due assessment when notified, late-payment
charges will be assessed in accordance with section 1160.214 of the
Order. This amendment would reduce the burden of late-payment charges
in instances of assessment miscalculations.
The Board believes the late-payment charge is a necessary provision
of the Order to encourage payment by all processors subject to the
assessment and helps ensure receipt of assessments owed to the Board.
However, the Board believes that the late-payment charge could be
viewed as excessive when applied to processors in instances of
unintentional errors and miscalculations. The proposed amendment to the
Order would not add any additional burden to the regulated parties
because it relates only to provisions concerning adjustment of
accounts.
In fact, the proposed rule would amend the Order to reduce the
burden of late-fee charges applied to processors who underreport due to
unintentional errors and miscalculations.
A thirty day comment period is provided for interested persons to
comment on this proposed action. All comments received by February 27,
2008 will be considered. A thirty day period for public comment is
deemed appropriate in order to implement the proposed changes, if
adopted, as soon as possible.
List of Subjects in 7 CFR Part 1160
Fluid milk, Milk, Promotion.
For the reasons set forth in the preamble, it is proposed that 7
CFR part 1160 be amended as follows:
PART 1160--FLUID MILK PROMOTION PROGRAM
1. The authority citation for 7 CFR part 1160 continues to read as
follows:
Authority: 7 U.S.C. 6401-6417.
2. Section 1160.213 is revised to read as follows:
Sec. 1160.213 Adjustment of accounts.
Whenever the Board or the Secretary determines through an audit of
a processor's reports, records, books or accounts or through some other
means that additional money is due the Board or to such processor from
the Board, the Board shall notify that person of the amount due or
overpaid. If the processor owes money to the Board, it shall remit that
amount by the next date for remitting assessments as provided in Sec.
1160.211. For the first two erroneous reports submitted by a processor
in the preceding twelve-month period, late-payment charges assessed
pursuant to Section 1160.214 shall not begin to accrue until the day
following such date. For all additional erroneous reports submitted by
a processor during the twelve-month period, late-payment charges shall
accrue from the date the payment was due. If the processor has
overpaid, that amount shall be credited to its account and applied
against amounts due in succeeding months.
Dated: January 18, 2008.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. E8-1433 Filed 1-25-08; 8:45 am]
BILLING CODE 3410-02-P