[Federal Register Volume 60, Number 227 (Monday, November 27, 1995)]
[Proposed Rules]
[Pages 58253-58255]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-28770]



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DEPARTMENT OF AGRICULTURE
7 CFR Part 1208

[FV-95-702PR]


Fresh Cut Flowers and Fresh Cut Greens Promotion and Information 
Order--Postponement of Payment of Assessments

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This proposed rule specifies general rules and regulations to 
be established under the Fresh Cut Flowers and Fresh Cut Greens 
Promotion and Information Order (Order). The Order is authorized under 
the Fresh Cut Flowers and Fresh Cut Greens Promotion and Information 
Act of 1993. This rule would implement a provision of the Order 
concerning the postponement of the payment of assessments. This action 
would create a form and establish procedures for qualified handlers to 
request the postponement of the payment of up to six months of 
assessments to the National PromoFlor Council. In addition, in 
accordance with the Paperwork Reduction Act of 1995, this proposed rule 
specifies the public reporting burden for the collection of information 
for requesting a postponement of payment of assessments.

DATES: Comments must be received by January 26, 1996.

ADDRESSES: Interested persons are invited to submit written comments 
concerning the proposed rule to: Research and Promotion Branch, Fruit 
and Vegetable Division, Agricultural Marketing Service (AMS), USDA, 
P.O. Box 96456, Room 2535-S, Washington, DC 20090-6456. Three copies of 
all written material should be submitted, and they will be made 
available for public inspection at the Research and Promotion Branch 
during regular business hours. All comments should reference the docket 
number and the date and page number of this issue of the Federal 
Register. Also send comments regarding the accuracy of the burden 
estimate, ways to minimize the burden, including through the use of 
automated collection techniques or other forms of information 
technology, or any other aspect of this collection of information, to 
the above address.

FOR FURTHER INFORMATION CONTACT: Sonia N. Jimenez, Research and 
Promotion Branch, Fruit and Vegetable Division, AMS, USDA, PO Box 
96456, Room 2535-S, Washington, DC 20090-6456, telephone (202) 720-
9916.

SUPPLEMENTARY INFORMATION: This proposed rule is issued under the Fresh 
Cut Flowers and Fresh Cut Greens Promotion and Information Act of 1993 
(Pub. L. 103-190), (7 U.S.C. 6801 et seq.) hereinafter referred to as 
the Act.
    This proposed rule has been issued 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 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 8 of the Act, a 
person subject to the order may file a petition with the 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 such hearing, the Secretary will make a ruling on the 
petition. The Act provides 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 Flexibility Act

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA), the Administrator of AMS has considered the economic impact 
of this proposed action 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.
    Only those wholesale handlers, retail distribution centers, 
producers, and importers who have annual sales of $750,000 or more of 
cut flowers and greens and who sell those products to exempt handlers, 
retailers, or consumers are considered qualified handlers and assessed 
under the Order. There are approximately 900 wholesaler handlers, 150 
importers, and 200 domestic producers who are qualified handlers.
    The majority of these qualified handlers would be classified as 
small businesses. Small agricultural service firms have been defined by 
the Small Business Administration (13 CFR 121.601) as those having 
annual receipts of less than $5 million. Statistics reported by the 
National Agricultural Statistics Service show that 1994 sales at 
wholesale of domestic cut flowers and greens total approximately $559.6 
million while the value of imports during 1994 was approximately $382 
million. The leading States in the United States producing cut flowers 
and greens, by wholesale value, are California, which produces 
approximately 59 percent of the domestic crop, followed by Florida, 
Colorado, and Hawaii. Major countries exporting cut flowers and greens 
into the United States, by value, are Columbia, which accounts for 
approximately 60 percent, followed by The Netherlands, Mexico, and 
Costa Rica.
    The Administrator of the AMS has determined that this rule would 
not have a significant economic impact on a substantial number of small 
entities.

Paperwork Reduction Act

    While this proposed rule would impose certain recordkeeping 
requirements on qualified handlers that request a postponement of the 
payment of assessments, most of the information required under the 
proposed rule could be compiled from records currently maintained. 
Thus, any added burden resulting from increased recordkeeping would not 
be significant when compared to the benefits that should accrue to such 
businesses.
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), a form to request the postponement of the payment, 
``Application for Postponement of Payment of PromoFlor Assessment'', 
has been submitted to OMB for approval.
    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average .25 hours per response for each 
qualified handler requesting a postponement of payment of assessment. 

[[Page 58254]]

    Respondents: Qualified handlers as defined in the Act.
    Estimated Number of Respondents: 5.
    Estimated Number of Responses per Respondent: 1.
    Estimated Total Annual Burden on Respondents: 1.25 hours.
    Copies of this information collection can be obtained from Sonia N. 
Jimenez at (202) 720-9916 or at the address listed above.

Background

    The Act authorizes the Secretary of Agriculture (Secretary) to 
establish a national cut flowers and greens promotion and consumer 
information program. The program is funded by an assessment of \1/2\ 
percent of gross sales of cut flowers and greens which is levied on 
qualified handlers.
    This proposed rule would provide rules and regulations needed to 
implement provisions of the Order. Section 1208.55 of the Order 
provides for postponement of collections (7 CFR 108.55; 59 FR 67139). 
That section provides that the Council may grant a postponement of the 
payment of an assessment for any qualified handler that establishes 
that it is financially unable to make the payment.
    Section 1208.100 of this rule would provide that the definitions 
for this subpart are the same as those prescribed in Secs. 1208.1 
through 1208.24 of the Order.
    Section 1208.150 would provide for the postponement of the payment 
of assessments under certain circumstances. The Order provides for the 
postponement of the payment of assessments by a qualified handler if 
the payment of such assessment is determined to be a financial burden 
for the handler. Section 1208.55 of the Order states that ``The Council 
may grant a postponement of an assessment under this subpart for any 
qualified handler that establishes that it is financially unable to 
make the payment * * * '' In addition, the Order establishes that the 
Council shall develop forms and procedures for a qualified handler to 
request and for the Council to grant the postponement of the payment of 
assessments.
    The Council met on September 11, 1995, and determined that, in 
order for a request for the postponement of assessments to be granted, 
the requester should comply with the following: (1) Submit a written 
opinion from a Certified Public Accountant stating that the handler 
making the request is insolvent or will be unable to continue to 
operate if the handler is required to pay the assessment when due and 
(2) submit copies of the last three years' federal tax returns. These 
two requirements are needed to verify that the qualified handler is 
financially unable to make the payment of the assessments due and that 
the postponement of payment, if granted, complies with the requirements 
set forth in the Order. In addition, the requester should submit to the 
Council a form ``Application for Postponement of Payment of PromoFlor 
Assessments.'' This collection of information would be authorized under 
OMB number 0581-0093 and would have an expiration date of January 31, 
1997.
    The period for which the postponement of the payment of the 
assessments is requested may not exceed six (6) months. Within that 
period of six (6) months, the qualified handler would be exempt from 
paying assessments beginning with the month for which the request for 
postponement is filed with the Council and for no more than six (6) 
months. The handler must provide a reason for the request as well as 
detailed information concerning the handler's name, address, telephone 
and fax numbers, the month(s) for which the request is made, the 
percent of the outstanding debt to be paid by month after the 
postponement of payment is granted, and the starting date for the 
payment. Furthermore, an authorized individual must sign and return the 
form to the Council's office.
    Any late payment would make the agreement null and all assessments 
due would need to be paid in their entirety at that time. In addition, 
the Council agrees to forgo any late fee charges and interest for the 
duration of the agreement.
    The request must be made no later than 30 days after the 
assessments were due. In addition, after the postponement period has 
concluded, the requester must pay the percentage of the outstanding 
debt agreed to be paid by month and the assessments due for the current 
month. Assessments due after the postponement of payment is completed 
would not be postponed unless an extension of time for payment is 
granted. If an extension of time is requested, new documentation must 
be provided for the Council to determine whether to grant the extension 
of time for the postponement of the payment of assessments. The same 
procedures used for the initial request must be used to grant an 
extension.
    A 60-day comment period is provided to allow interested persons to 
respond to this proposal. All written comments timely received will be 
considered before a final determination is made on this matter. All 
responses regarding the information collection will be summarized and 
included in the request for OMB approval.

List of Subjects in 7 CFR Part 1208

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

    For the reasons set forth in the preamble, 7 CFR part 1208 is 
proposed to be amended as follows:

PART 1208--FRESH CUT FLOWERS AND FRESH CUT GREENS PROMOTION AND 
INFORMATION ORDER

    1. The authority citation for 7 CFR Part 1208 continues to read as 
follows:

    Authority: 7 U.S.C. 6801 et seq.

    2. In Part 1208 a new subpart B is added to read as follows:

Subpart B--Rules and Regulations

Definitions

Sec.
1208.100  Terms defined.

Assessments

1208.150  Procedures for postponement of assessments.

Subpart B--Rules and Regulations

Definitions


Sec. 1208.100  Terms defined.

    Unless otherwise defined in this subpart, definitions or terms used 
in this subpart shall have the same meaning as the definitions of such 
terms which appear in Subpart A--Fresh Cut Flowers and Fresh Cut Greens 
Promotion and Information Order.

Assessments


Sec. 1208.150  Procedures for postponement of collections.

    (a) For a request for postponement of the payment of assessments to 
be granted the qualified handler must comply with the following: Submit 
a written opinion from a Certified Public Accountant stating that the 
handler making the request is insolvent or will be unable to continue 
to operate if the handler is required to pay the assessments when due 
and submit copies of the last three years' federal tax returns. The 
request must be in writing no later than 30 days after the assessments 
for which the postponed payment is requested are due. The period for 
which the postponement of the payment of assessments is requested may 
not exceed six (6) months. The written request must specify:
    (1) A reason for the request; 

[[Page 58255]]

    (2) Detailed information concerning the qualified handler's name, 
address, and telephone and fax numbers;
    (3) The month(s) for which the request is made;
    (4) Total assessments due;
    (5) The percent of the outstanding debt to be paid each month after 
the postponement of payment is granted; and
    (6) The starting date for the payment of assessments due.
    (b) At the end of the postponement period, the qualified handler 
must pay the percentage of assessments due specified per month and the 
current month assessment due. If an extension of time is requested, new 
documentation must be provided for the Council to determine whether to 
grant the extension. The same procedures used for the initial request 
will be used to grant any extension.

    Dated: November 20, 1995.
Robert C. Kenny,
Director, Fruit and Vegetable Division.
[FR Doc. 95-28770 Filed 11-24-95; 8:45 am]
BILLING CODE 3410-02-P