[Federal Register Volume 75, Number 107 (Friday, June 4, 2010)]
[Proposed Rules]
[Pages 31730-31731]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-13407]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1215
[Document Number AMS-FV-10-0010]
Popcorn Promotion, Research, and Consumer Information Order;
Reapportionment
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
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SUMMARY: This rule proposes to reduce the Popcorn Board (Board)
membership from nine to five members to reflect the consolidation of
the popcorn industry and therefore, fewer popcorn processors in the
industry. In accordance with the Popcorn Promotion, Research and
Consumer Information Order (Order) which is authorized by the Popcorn
Promotion, Research and Consumer Information Act (Act), the number of
members on the Board may be changed by regulation; provided, that the
Board consist of not fewer than four members and not more than nine
members. In addition, the Order states that for purposes of nominating
and appointing processors to the Board, the Secretary may take into
account the geographical distribution of popcorn processors.
DATES: Comments must be received by July 6, 2010.
ADDRESSES: Interested persons are invited to submit written comments on
the Internet at: http://www.regulations.gov or to the Research and
Promotion Branch, Fruit and Vegetable Programs, Agricultural Marketing
Service (AMS), U.S. Department of Agriculture, (Department) Room 0632-
S, Stop 0244, 1400 Independence Avenue, SW., Washington, DC 20250-0244;
facsimile: (202) 205-2800. All comments should reference the document
number and the date and page number of this issue of the Federal
Register and will be made available for public inspection in the above
office during regular business hours or it can be viewed at http://www.regulations.gov. All comments received will be posted without
change, including any personal information provided.
FOR FURTHER INFORMATION CONTACT: Deborah Simmons, Marketing Specialist,
Research and Promotion Branch, Fruit and Vegetable Programs, AMS, U.S.
Department of Agriculture, Stop 0244, 1400 Independence Avenue, SW.,
Room 0632-S, Washington, DC 20250-0244; telephone: (888) 720-9917;
facsimile: (202) 205-2800; or electronic mail:
[email protected].
SUPPLEMENTARY INFORMATION: This rule is issued under the Popcorn
Promotion, Research, and Consumer Information Order [7 CFR part 1215].
The Order is authorized under the Popcorn Promotion, Research and
Consumer Information Act [7 U.S.C. 7481-7491].
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 rule has been reviewed under Executive Order 12988, Civil
Justice Reform. The rule is not intended to have retroactive effect and
will not affect or preempt any other State or Federal law authorizing
promotion or research relating to an agricultural commodity.
The Act provides that any person subject to an order may file a
written petition with the Department if they believe that the order,
any provision of the order, or any obligation imposed in connection
with the order, is not established in accordance with law. In any
petition, the person may request 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 court of the
United States in any district in which the petitioner resides or
conducts business shall have the jurisdiction to review the
Department's ruling on the petition, provided a complaint is filed not
later than 20 days after the date of the entry of the ruling.
Initial Regulatory Flexibility Act and Paperwork Reduction Act
In accordance with the Regulatory Flexibility Act (RFA) [5 U.S.C.
601-612], AMS has considered the economic impact of this action on the
processors that would be affected by this rule. The purpose of the RFA
is to fit regulatory action to scale on businesses subject to such
action so that small businesses will not be disproportionately
burdened.
[[Page 31731]]
Small agricultural service firms which would include processors who
are covered under the Order, have been defined by the Small Business
Administration (13 CFR 121.607) as those having annual receipts of no
more than $7 million. Almost 50 percent of the industry is exempt from
paying assessments. Based on information from the Board there are
currently a total of 40 processors in the industry. Of those, 21
processors pay mandatory assessments into the program. Of the 21
processors, 11 would be classified as small processors representing 7
percent of the popcorn assessed. The top five popcorn producing states
are Nebraska, Indiana, Illinois, Ohio and Iowa. In 2009, Indiana,
Kansas, Michigan and Ohio had decreases in acreage planted and
harvested while Kentucky, Illinois, Iowa, Missouri and Nebraska had
increases in acreage planted and harvested over the acreage planted and
harvested in 2008. Overall 2009 acreage planted increased by 1 percent
and acreage harvested increased by 4 percent over 2008 numbers.
Most of the processors would be classified as small businesses
under the criteria established by the Small Business Administration.
Processors who process and distribute 4 million pounds or less of
popcorn annually are exempt from this program. Persons that operate
under an approved National Organics program (NOP) (7 CFR part 206)
system plan; process only products that are eligible to be labeled as
100 percent organic under the NOP and are not split operations shall be
exempt from the payment of assessments.
The Board currently consists of 9 members which represent small,
medium and large processors in the industry.
The Board voted during its October 5, 2009, conference call to
request that the Secretary reduce the number of members from nine to
five and to appoint persons to reflect the consolidation of the popcorn
industry and therefore, fewer popcorn processors in the industry who
will equitably make up the board between large, medium and small
processors. The Board would continue to strive for diversity within the
industry.
Nominations and appointments to the Board are conducted pursuant to
sections 1215.22, 1215.23, and 1215.25 of the Order. Appointments to
the Board are made by the Secretary from a slate of nominated
candidates. Pursuant to section 1215.22(3)(i) of the Order, nominations
for each position shall be made by processors, and be submitted to the
Secretary for appointment to the Board. The Order requires that two
nominees be submitted for each vacant position.
The Department has not identified any relevant Federal rules that
duplicate, overlap, or conflict with this rule.
Background
The Order became effective on July 22, 1997, and it is authorized
under the Act. The Board is composed of nine processors. Nominations
take into consideration the geographical distribution of popcorn
production. The States that currently have representation on the Board
are Nebraska, Indiana, Iowa, Missouri and Colorado. Based on
information from the Board, in 2008, the top five popcorn producing
states were Nebraska, Indiana, Illinois, Ohio and Iowa.
Under the Order, the Board administers a nationally coordinated
program of promotion, research, consumer information and industry
information designed to strengthen the position of popcorn in the
marketplace, and to maintain and expand domestic and foreign markets
and uses for popcorn. This program is financed by assessments on
processors who process and distribute 4 million pounds or more of
popcorn annually. The current rate of assessment is 6 cents per
hundredweight of popcorn. The Order specifies that processors are
responsible for submitting the assessment to the Board and maintaining
records necessary to verify their reporting(s). Processors who
processes and distributes less than 4 million pounds of popcorn
annually are exempt from this assessment.
On October 5, 2009, the Board voted to decrease its membership from
nine to five.
A 30-day comment period is provided to allow interested persons to
respond to this proposal. Thirty days is deemed appropriate so that the
proposed amendments, if adopted, may be implemented before the 2010
term of office expires on December 31, 2010. All written comments
received in response to this rule by the date specified would be
considered prior to finalizing this action.
Pursuant to 5 U.S.C. 553, it is also found that good cause exists
for not postponing the effective date of this action until thirty days
after publication in the Federal Register because (1) a final rule
needs to be in effect before the Board makes a call for nominations for
the term of office beginning January 1, 2011.
List of Subjects in 7 CFR Part 1215
Administrative practice and procedure, Advertising, Consumer
information, Marketing agreements, Popcorn Promotion, Reporting and
recordkeeping requirements.
For the reasons set forth in the preamble, 7 CFR part 1215 is
proposed to be amended as follows:
PART 1215--POPCORN PROMOTION, RESEARCH, AND CONSUMER INFORMATION
ORDER
1. The authority citation for 7 CFR part 1215 continues to read as
follows:
Authority: 7 U.S.C. 7481-7491; 7 U.S.C. 7401.
2. Sec. 1215.21, paragraph (a) is revised to read as follows:
Sec. 1215.21 Establishment and membership.
(a) There is hereby established a Popcorn Board of five members.
The number of members on the board may be changed by rulemaking:
Provided, that the Board consist of not fewer than four members and not
more than nine members. The Board shall be composed of popcorn
processors appointed by the Secretary under section 1215.24.
* * * * *
Dated: May 28, 2010.
Rayne Pegg,
Administrator.
[FR Doc. 2010-13407 Filed 6-3-10; 8:45 am]
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