[Federal Register Volume 60, Number 139 (Thursday, July 20, 1995)]
[Rules and Regulations]
[Pages 37324-37327]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-17325]



=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

7 CFR Parts 1150, 1160, 1200, 1205, 1207, 1208, 1209, 1210, 1211, 
1212, 1220, 1230, 1240, 1250, 1280, and 1290

[FV-94-702FR]


Rules of Practice Governing Proceedings on Petitions to Modify or 
to be Exempted from Research and Promotion Programs

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This rule will consolidate the petition procedures for all 
research and promotion programs that provide for petitions. This 
consolidation will eliminate duplication and will reduce costs.

EFFECTIVE DATE: August 21, 1995.

FOR FURTHER INFORMATION CONTACT: Sonia N. Jimenez, Research and 
Promotion Branch, Fruit and Vegetable Division, AMS, USDA, P.O. Box 
96456, Room 2535-S, Washington, DC 20090-6456; telephone (202) 720-
9915.

SUPPLEMENTARY INFORMATION: This action is authorized under the Floral 
Research and Consumer Information Act [7 U.S.C. 4301-4319]; the Fresh 
Cut Flowers and Fresh Cut Greens Promotion and Consumer Information Act 
[7 U.S.C 6801-6814]; the Honey Research, Promotion, and Consumer 
Information Act, as amended [7 U.S.C. 4601-4612]; the Lime Research, 
Promotion, and Consumer Information Act, as amended [7 U.S.C. 6201-
6212]; the Mushroom Promotion, Research, and Consumer Information Act 
of 1990 [7 U.S.C. 6101-6112]; the Pecan Promotion and Research Act of 
1990 [7 U.S.C. 6001-6013]; the Potato Research and Promotion Act, as 
amended [7 U.S.C. 2611-2627]; the Watermelon Research and Promotion 
Act, as amended [7 U.S.C. 4901-4916], the Egg Research and Consumer 
Information Act [7 U.S.C. 2701-2718], the Cotton Research and Promotion 
Act [7 U.S.C. 2101-2118], the Pork Promotion, Research, and Consumer 
Information Act [7 U.S.C. 4801-4819], the Soybean Promotion, Research, 
and Consumer Information Act [7 U.S.C. 6301-6311], the Sheep Promotion, 
Research, and Information Act of 1994 [7 U.S.C. 7101-7111], the Dairy 
Production Stabilization Act of 1983 [7 U.S.C. 4501-4513], the Fluid 
Milk Promotion Act of 1990 [7 U.S.C. 6401-6417], and the Wheat and 
Wheat Foods Research and Nutrition Education Act [7 U.S.C. 3401-3417].
    The Department of Agriculture (Department) is issuing this rule in 
conformance with Executive Order 12866.
    This rule has been reviewed under Executive Order 12778, Civil 
Justice Reform. It 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.
    The acts named above provide that administrative proceedings must 
be exhausted before parties may file suit in court. A person subject to 
a research and promotion order or plan (hereinafter referred to as 
order) may file a petition with the Secretary of Agriculture 
(Secretary) stating that the order or any provision of the order, or 
any obligation imposed in connection with the order, is not in 
accordance with law and requesting a modification of the order or an 
exemption from the order. The petitioner is afforded the opportunity 
for a hearing on the petition. After the hearing, the Secretary will 
make a ruling on the petition. The acts provide that the district 
courts of the United States in any district in which a person who is a 
petitioner resides or carries on business are vested with jurisdiction 
to review the Secretary's ruling on the petition, if a complaint for 
that purpose is filed within 20 days after the date of the entry of the 
ruling.

Regulatory Impact Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA), the Administrator of the Agricultural Marketing Service 
(AMS) has considered the economic impact of this rule on small 
entities.
    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.
    Since this action is administrative in nature, the Administrator of 
AMS determined that this rule will have no economic impact on small 
entities.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1980 [44 U.S.C. 
Chapter 35], the information collection requirements contained in the 
orders covered by the acts have been approved by OMB. This action will 
not impact any of the information collection requirements under the 
orders.

Background

    When Congress authorizes a research and promotion program to be 
administered by the Department of 

[[Page 37325]]
Agriculture (Department), the Department conducts the necessary 
rulemaking, and, if appropriate, a public hearing and a referendum 
before the program is implemented. One portion of the rulemaking 
relates to the provisions of the act which requires that a person 
covered by the program exhaust administrative remedies before filing 
suit in court. Under these administrative remedies, a person may file a 
petition with the Secretary to modify or be exempted from the relevant 
act.
    In the past, separate rulemaking has been conducted for each order. 
As a result, each order has a subpart relating to petition procedures, 
and the subparts are nearly identical.
    In order to promote administrative efficiency, the Department is 
deleting the individual subparts and creating a new subpart under Part 
1200 to cover petition procedures for all of the research and promotion 
programs that provide for petitions which are administered by AMS. The 
new subpart will state that it covers all of the existing statutes for 
research, promotion, and consumer information acts which provide for 
petitions that are established as public law by Congress. It will be 
applicable for the Pecan Promotion and Research Act of 1990, the Wheat 
and Wheat Foods Research and Nutrition Education Act, and the Floral 
Research and Consumer Information Act if a program is implemented for 
those programs in the future. In addition, it will be applicable for 
the Sheep Promotion, Research, and Information Act of 1994 if an order 
is adopted. Also, it will be applicable for the Fresh Cut Flowers and 
Fresh Cut Greens Promotion and Consumer Information Act.
    The creation of the new subpart will eliminate the need for one 
rulemaking action (a proposed rule and a final rule) for each new 
program and thus reduce costs for the Department as well as for the 
research and promotion boards and councils which pay user fees to cover 
the Department's costs.
    This rule removes Part 1290 in its entirety because there is no 
active program under the Floral Research and Consumer Information Act 
of 1981.
    The provisions of the Administrative Procedure Act concerning 
notice and opportunity for comment on agency rulemaking [5 U.S.C. 553] 
do not apply to the promulgation of agency rules of practice. 
Accordingly, this action is made effective upon publication in the 
Federal Register. Furthermore, this final rule makes technical 
revisions to the existing rules of practice, which are uniform for all 
applicable research and promotion programs; the rules are already 
applicable to those programs that are newly specified in the rules 
because of the existing definition of the term ``Act''; no substantive 
rule or rule change is involved; and these procedures are patterned 
directly after existing procedures that are presently in use.

List of Subjects

7 CFR Part 1150

    Dairy products, Reporting and recordkeeping requirements, Research.

7 CFR Part 1160

    Milk, Fluid milk products, Promotion.

7 CFR Part 1200

    Administrative practice and procedure, Cotton, Cut Flowers, Cut 
Greens, Dairy, Eggs, Floral products, Fluid milk, Honey, Limes, 
Marketing agreements, Mushrooms, Pecans, Pork, Potatoes, Sheep, 
Soybeans, Watermelons, Wheat, Wheat foods.

7 CFR Part 1205

    Advertising, Agricultural research, Cotton, Reporting and 
recordkeeping requirements.

7 CFR Part 1207

    Advertising, Agricultural research, Potatoes, Reporting and 
recordkeeping requirements.

7 CFR Part 1208

    Administrative practice and procedure, Advertising, Consumer 
information, Marketing agreements, Cut flowers, Cut greens, Promotion, 
Reporting and recordkeeping requirements.

7 CFR Part 1209

    Administrative practice and procedure, Advertising, Agricultural 
research, Marketing agreements, Mushrooms, Reporting and recordkeeping 
requirements.

7 CFR Part 1210

    Administrative practice and procedure, Advertising, Agricultural 
research, Reporting and recordkeeping requirements, Watermelons.

7 CFR Part 1211

    Administrative practice and procedure, Advertising, Agricultural 
research, Imports, Marketing agreements, Pecans, Promotion, Reporting 
and recordkeeping requirements.

7 CFR Part 1212

    Administrative practice and procedure, Advertising, Limes, 
Marketing agreements, Reporting and recordkeeping requirements.

7 CFR Part 1220

    Agricultural research, Reporting and recordkeeping requirements, 
Soybeans.

7 CFR Part 1230

    Administrative practice and procedure, Advertising, Agricultural 
research, Meat and meat products, Reporting and recordkeeping 
requirements.

7 CFR Part 1240

    Advertising, Agricultural research, Honey, Imports, Reporting and 
recordkeeping requirements.

7 CFR Part 1250

    Administrative practice and procedures, Advertising, Agricultural 
research, Eggs and egg products, Reporting and recordkeeping 
requirements.

7 CFR Part 1280

    Administrative practice and procedures, Advertising, Agricultural 
research, Marketing agreements, Sheep and sheep products, Reporting and 
recordkeeping requirements.

7 CFR Part 1290

    Administrative practice and procedure, Advertising, Agricultural 
research, Plants.

    For the reasons set forth in the preamble, 7 CFR Parts 1150, 1160, 
1200, 1205, 1207, 1208, 1209, 1210, 1211, 1212, 1220, 1230, 1240, 1250, 
1280, and 1290 are amended to read as follows:

PART 1150--DAIRY PROMOTION PROGRAM

    1. The authority citation for Part 1150 continues to read as 
follows:

    Authority: 7 U.S.C. 4501-4513.

    2. In Part 1150, Subpart--Rules of Practice Governing Proceedings 
on Petitions to Modify or to be Exempted from an Order is removed.

PART 1160--FLUID MILK PROMOTION PROGRAM

    3. The authority citation for Part 1160 continues to read as 
follows:

    Authority: 7 U.S.C. 6401-6417.

    4. In Part 1160, Subpart--Rules of Practice Governing Proceedings 
on Petitions to Modify or to be Exempted from an Order is removed.
PART 1200--RULES OF PRACTICE AND PROCEDURE GOVERNING PROCEEDINGS 
UNDER RESEARCH, PROMOTION, AND EDUCATION PROGRAMS

    5. The authority citation for 7 CFR Part 1200 is revised to read as 
follows:


[[Page 37326]]

    Authority: 7 U.S.C. 2111; 2620; 2713; 3409; 4313; 4509; 4609; 
4814; 4909; 6008; 6106; 6206; 6306; 6410; 6807; and 7106.

    6. Part 1200 is amended by adding a new subpart to read as follows:

Subpart--Rules of Practice Governing Proceedings on Petitions To 
Modify or To Be Exempted From Research, Promotion, and Education 
Programs

Sec.
1200.50  Words in the singular form.
1200.51  Definitions.
1200.52  Institution of proceeding.

    Authority: 7 U.S.C. 2111; 2620; 2713; 3409; 4313; 4509; 4609; 
4814; 4909; 6008; 6106; 6206; 6306; 6410; 6807; and 7106.

Subpart--Rules of Practice Governing Proceedings on Petitions To 
Modify or To Be Exempted From Research, Promotion and Education 
Programs


Sec. 1200.50  Words in the singular form.

    Words in this subpart in the singular form shall be deemed to 
import the plural, and vice versa, as the case may demand.


Sec. 1200.51  Definitions.

    As used in this subpart, the terms as defined in the acts shall 
apply with equal force and effect. In addition, unless the context 
otherwise requires:
    (a) The term Act means Floral Research and Consumer Information Act 
[7 U.S.C. 4301-4319]; the Fresh Cut Flowers and Fresh Cut Greens 
Promotion and Consumer Information Act [7 U.S.C. 6801-6814]; the Honey 
Research, Promotion, and Consumer Information Act, as amended [7 U.S.C. 
4601-4612]; the Lime Research, Promotion, and Consumer Information Act, 
as amended [7 U.S.C. 6201-6212]; the Mushroom Promotion, Research, and 
Consumer Information Act of 1990 [7 U.S.C. 6101-6112]; the Pecan 
Promotion and Research Act of 1990 [7 U.S.C. 6001-6013]; the Potato 
Research and Promotion Act, as amended [7 U.S.C. 2611-2627]; the 
Watermelon Research and Promotion Act, as amended [7 U.S.C. 4901-4916], 
the Egg Research and Consumer Information Act [7 U.S.C. 2701-2718], the 
Cotton Research and Promotion Act [7 U.S.C. 2101-2118], the Pork 
Promotion, Research, and Consumer Information Act [7 U.S.C. 4801-4819], 
the Soybean Promotion, Research, and Consumer Information Act [7 U.S.C. 
6301-6311], the Sheep Promotion, Research, and Information Act of 1994 
[7 U.S.C. 7101-7111], the Dairy Production Stabilization Act of 1983 [7 
U.S.C. 4501-4513], the Fluid Milk Promotion Act of 1990 [7 U.S.C. 6401-
6417], and the Wheat and Wheat Foods Research and Nutrition Education 
Act [7 U.S.C. 3401-3417].
    (b) Department means the U.S. Department of Agriculture.
    (c) Secretary means the Secretary of Agriculture of the United 
States, or any officer or employee of the Department to whom authority 
has heretofore been delegated, or to whom authority may hereafter be 
delegated, to act in the Secretary's stead.
    (d) Judge means any administrative law judge, appointed pursuant to 
5 U.S.C. 3105, and assigned to the proceeding involved.
    (e) Administrator means the Administrator of the Agricultural 
Marketing Service, with power to redelegate, or any officer or employee 
of the Department to whom authority has been delegated, or may 
hereafter be delegated, to act in the Administrator's stead.
    (f) Order means any order or any amendment thereto which may be 
issued pursuant to the Act. The term order shall include plans issued 
under the Acts listed in paragraph (a) of this section.
    (g) Person means any individual, group of individuals, partnership, 
corporation, association, cooperative, or any other legal entity 
subject to an order or to whom an order is sought to be made 
applicable, or on whom an obligation has been imposed or is sought to 
be imposed under an order.
    (h) Proceeding means a proceeding before the Secretary arising 
under section 1957 of the Act.
    (i) Hearing means that part of the proceedings which involves the 
submission of evidence.
    (j) Party includes the U.S. Department of Agriculture.
    (k) Hearing clerk means the Hearing Clerk, U.S. Department of 
Agriculture, Washington, D.C.
    (l) Decision means the judge's initial decision and includes the 
judge's:
    (1) Findings of fact and conclusions with respect to all material 
issues of fact, law or discretion, as well as the reasons or basis 
thereof;
    (2) Order; and
    (3) Rulings on findings, conclusions and orders submitted by the 
parties; and
    (m) Petition includes an amended petition.


Sec. 1200.52  Institution of proceeding.

    (a) Filing and service of petitions. Any person subject to an order 
desiring to complain that such order or any provision of such order or 
any obligation imposed in connection with an order is not in accordance 
with law, shall file with the hearing clerk, in quintuplicate, a 
petition in writing addressed to the Secretary. Promptly upon receipt 
of the petition in writing the hearing clerk shall transmit a true copy 
thereof to the Administrator and the General Counsel, respectively.
    (b) Contents of petitions. A petition shall contain:
    (1) The correct name, address, and principal place of business of 
the petitioner. If the petitioner is a corporation, such fact shall be 
stated, together with the name of the State of incorporation, the date 
of incorporation, and the names, addresses, and respective positions 
held by its officers and directors; if an unincorporated association, 
the names and addresses of its officers, and the respective positions 
held by them; if a partnership, the name and address of each partner;
    (2) Reference to the specific terms or provisions of the order, or 
the interpretation or application of such terms or provisions, which 
are complained of;
    (3) A full statement of the facts, avoiding a mere repetition of 
detailed evidence, upon which the petition is based, and which it is 
desired that the Secretary consider, setting forth clearly and 
concisely the nature of the petitioner's business and the manner in 
which petitioner claims to be affected by the terms or provisions of 
the order or the interpretation or application thereof, which are 
complained of;
    (4) A statement of the grounds on which the terms or provisions of 
the order, or the interpretation or application thereof, which are 
complained of, are challenged as not in accordance with law;
    (5) Requests for the specific relief which the petitioner desires 
the Secretary to grant; and
    (6) An affidavit by the petitioner, or, if the petitioner is not an 
individual, by an officer of the petitioner having knowledge of the 
facts stated in the petition, verifying the petition and stating that 
it is filed in good faith and not for purposes of delay.
    (c) A motion to dismiss a petition: filing, contents, and responses 
to a petition. If the Administrator is of the opinion that the 
petition, or any portion thereof, does not substantially comply, in 
form or content, with the Act or with requirements of paragraph (b) of 
this section, the Administrator may, within 30 days after the filing of 
the petition, file with the hearing clerk a motion to dismiss the 
petition, or any portion of the petition, on one or more of the grounds 
stated in this paragraph. Such motion shall specify the grounds for 
objection to the petition and if based, in whole or in part, on 
allegations of fact not appearing on the face of the petition, 

[[Page 37327]]
shall be accompanied by appropriate affidavits or documentary evidence 
substantiating such allegations of fact. The motion may be accompanied 
by a memorandum of law. Upon receipt of such motion, the hearing clerk 
shall cause a copy thereof to be served upon the petitioner, together 
with a notice stating that all papers to be submitted in opposition to 
such motion, including any memorandum of law, must be filed by the 
petitioner with the hearing clerk not later than 20 days after the 
service of such notice upon the petitioner. Upon the expiration of the 
time specified in such notice, or upon receipt of such papers from the 
petitioner, the hearing clerk shall transmit all papers which have been 
filed in connection with the motion to the judge for the judge's 
consideration.
    (d) Further proceedings. Further proceedings on petitions to modify 
or to be exempted from the Order shall be governed by 
Secs. 900.52(c)(2) through 900.71 of the Rules of Practice Governing 
Proceedings on Petitions To Modify or To Be Exempted From Marketing 
Orders. However, each reference to marketing order in the title shall 
mean order. 

PART 1205--COTTON RESEARCH AND PROMOTION

    7. The authority citation for Part 1205 continues to read as 
follows:

    Authority: 7 U.S.C. 2101-2118.

    8. In Part 1205, Subpart--Rules of Practice Governing Proceedings 
on Petitions To Modify or To Be Exempted From Orders is removed.

PART 1207--POTATO RESEARCH AND PROMOTION PLAN

    9. The authority citation for Part 1207 continues to read as 
follows:

    Authority: 7 U.S.C. 2611-2627.

    10. In Part 1207, Subpart--Rules of Practice Governing Proceedings 
on Petitions to Modify or To Be Exempted From Plans is removed.

PART 1209--MUSHROOM PROMOTION, RESEARCH, AND CONSUMER INFORMATION 
ORDER

    11. The authority citation for Part 1209 continues to read as 
follows:

    Authority: 7 U.S.C. 6101-6112.

    12. In Part 1209, Subpart D--Rules of Practice Governing 
Proceedings on Petitions To Modify or To Be Exempted From the Mushroom 
Promotion, Research, and Consumer Information Order is removed.

PART 1210--WATERMELON RESEARCH AND PROMOTION PLAN

    13. The authority citation for Part 1210 continues to read as 
follows:

    Authority: 7 U.S.C. 4901-4916.

    14. In Part 1210, Subpart--Rules of Practice Governing Proceedings 
on Petitions To Modify or To Be Exempted From the Watermelon Research 
and Promotion Plan is removed.

PART 1211--PECAN PROMOTION AND RESEARCH PLAN

    15. The authority citation for Part 1211 continues to read as 
follows:

    Authority: 7 U.S.C. 6001-6013.

    16. In Part 1211, Subpart C--Rules of Practice Governing 
Proceedings on Petitions To Modify or To Be Exempted From the Plan is 
removed and reserved.

PART 1212--LIME RESEARCH, PROMOTION, AND CONSUMER INFORMATION ORDER

    17. The authority citation for Part 1212 continues to read as 
follows:

    Authority: 7 U.S.C. 6201-6212.

    18. In Part 1212, Subpart C--Rules of Practice Governing 
Proceedings on Petitions To Modify or To Be Exempted From an Order is 
removed.

PART 1220--SOYBEAN PROMOTION, RESEARCH, AND CONSUMER INFORMATION

    19. The authority citation for Part 1220 continues to read as 
follows:

    Authority: 7 U.S.C. 6301-6311.

    20. In Part 1220, Subpart C--Rules of Practice Governing 
Proceedings on Petitions To Modify or To Be Exempted From the Soybean 
Promotion and Research Order is removed.

PART 1230--PORK PROMOTION, RESEARCH, AND CONSUMER INFORMATION

    21. The authority citation for Part 1230 continues to read as 
follows:

    Authority: 7 U.S.C. 4801-4819.

    22. In Part 1230, Subpart C--Rules of Practice Governing 
Proceedings on Petitions To Modify or To Be Exempted From the Pork 
Promotion, Research, and Consumer Information Order is removed.

PART 1240--HONEY RESEARCH, PROMOTION, AND CONSUMER INFORMATION 
ORDER

    23. The authority citation for Part 1240 continues to read as 
follows:

    Authority: 7 U.S.C. 4601-4612.

    24. In Part 1240, Subpart--Rules of Practice Governing Proceedings 
on Petitions To Modify or To Be Exempted From the Honey Research, 
Promotion, and Consumer Information Order is removed.

PART 1250--EGG RESEARCH AND PROMOTION

    25. The authority citation for Part 1250 continues to read as 
follows:

    Authority: 7 U.S.C. 2701-2718.

    26. In Part 1250, Subpart--Rules of Practice Governing Proceedings 
on Petitions To Modify or To Be Exempted From Orders is removed.

SUBPART 1290--[REMOVED]

    27. Part 1290 is removed.

    Dated: July 10, 1995.
Lon Hatamiya,
Administrator, Agricultural Marketing Service.
[FR Doc. 95-17325 Filed 7-19-95; 8:45 am]
BILLING CODE 3410-02-P