[Federal Register Volume 61, Number 50 (Wednesday, March 13, 1996)]
[Proposed Rules]
[Pages 10288-10289]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-5933]



 ========================================================================
 Proposed Rules
                                                 Federal Register
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 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. 61, No. 50 / Wednesday, March 13, 1996 / 
Proposed Rules  

[[Page 10288]]


DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1131

[DA-96-03]


Milk in the Central Arizona Marketing Area; Proposed Suspension 
of Certain Provisions of the Order

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed suspension of rule.

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SUMMARY: This document invites written comments on a proposal to 
suspend certain provisions of the Central Arizona Federal milk 
marketing order for an indefinite period beginning April 1, 1996. The 
proposed suspension would continue a suspension which expires on March 
31, 1996, that eliminates the requirement that a cooperative 
association ship at least 50 percent of its receipts to other handler 
pool plants to maintain pool status of a manufacturing plant operated 
by the cooperative. United Dairymen of Arizona, a cooperative 
association that represents nearly all of the producers who supply milk 
to the market, has requested continuation of the suspension. The 
cooperative asserts that the suspension is necessary to prevent 
uneconomical and inefficient movements of milk.

DATES: Comments are due no later than March 20, 1996.

ADDRESSES: Comments (two copies) should be filed with the USDA/AMS/
Dairy Division, Order Formulation Branch, Room 2971, South Building, 
P.O. Box 96456, Washington, DC 20090-6456.

FOR FURTHER INFORMATION CONTACT: Clifford M. Carman, Marketing 
Specialist, USDA/AMS/Dairy Division, Order Formulation Branch, Room 
2971, South Building, P.O. Box 96456, Washington, DC 20090-6456, (202) 
720-9368.

SUPPLEMENTARY INFORMATION: The Regulatory Flexibility Act (5 U.S.C. 
601-612) requires the Agency to examine the impact of a proposed rule 
on small entities. Pursuant to 5 U.S.C. 605(b), the Administrator of 
the Agricultural Marketing Service has certified that this proposed 
rule would not have a significant economic impact on a substantial 
number of small entities. This rule would tend to ensure that dairy 
farmers would continue to have their milk priced under the order and 
thereby receive the benefits that accrue from such pricing.
    The Department is issuing this proposed rule in conformance with 
Executive Order 12866.
    This proposed rule has been reviewed under Executive Order 12778, 
Civil Justice Reform. This rule is not intended to have a retroactive 
effect. If adopted, this proposed rule will not preempt any state or 
local laws, regulations, or policies, unless they present an 
irreconcilable conflict with the rule.
    The Agricultural Marketing Agreement Act of 1937, as amended (7 
U.S.C. 601-674), provides that administrative proceedings must be 
exhausted before parties may file suit in court. Under section 
608c(15)(A) of the Act, any handler subject to an order may file with 
the Secretary a petition stating that the order, any provisions of the 
order, or any obligation imposed in connection with the order is not in 
accordance with law and request a modification of an order or to be 
exempted from the order. A handler 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 handler is an inhabitant, or has 
its principal place of business, has jurisdiction in equity to review 
the Secretary's ruling on the petition, provided a bill in equity is 
filed not later than 20 days after the date of the entry of the ruling.
    Notice is hereby given that, pursuant to the provisions of the 
Agricultural Marketing Agreement Act, the suspension of the following 
provision of the order regulating the handling of milk in the Central 
Arizona marketing area is being considered for an indefinite period 
beginning April 1, 1996:
    In Sec. 1131.7(c), the words ``50 percent or more of,'' 
``(including the skim milk and butterfat in fluid milk products 
transferred from its own plant pursuant to this paragraph that is not 
in excess of the skim milk and butterfat contained in member producer 
milk actually received at such plant)'' and ``or the previous 12-month 
period ending with the current month.''
    All persons who want to submit written data, views or arguments 
about the proposed suspension should send two copies of their views to 
the USDA/AMS/Dairy Division, Order Formulation Branch, Room 2971, South 
Building, P.O. Box 96456, Washington, DC 20090-6456, by the 7th day 
after publication of this notice in the Federal Register. The period 
for filing comments is limited to 7 days because a longer period would 
not provide the time needed to complete the required procedures before 
the requested suspension is to be effective.
    All written submissions made pursuant to this notice will be made 
available for public inspection in the Dairy Division during regular 
business hours (7 CFR 1.27(b)).

Statement of Consideration

    The proposed rule would continue to suspend certain provisions of 
the Central Arizona order for an indefinite period beginning April 1, 
1996. The proposed suspension would continue to remove the requirement 
that a cooperative association which operates a manufacturing plant in 
the marketing area must ship at least 50 percent of its milk supply 
during the current month or the previous 12-month period ending with 
the current month to other handlers' pool plants to maintain the pool 
status of its manufacturing plant.
    The order permits a cooperative association's manufacturing plant, 
located in the marketing area, to be a pool plant if at least 50 
percent of the producer milk of members of the cooperative association 
is physically received at pool plants of other handlers during the 
current month or the previous 12-month period ending with the current 
month.
    Continuation of the current suspension was requested by United 
Dairymen of Arizona (UDA), a cooperative association that represents 
nearly all of the dairy farmers who supply the Central Arizona market. 
UDA contends that the continued pool status of their manufacturing 
plant is threatened if the suspension is not continued. UDA states that 
the same marketing conditions that warranted the

[[Page 10289]]
suspension last year still exist. UDA maintains that members who 
increased their milk production to meet the projected demands of fluid 
handlers for distribution into Mexico continue to suffer the adverse 
impact of the collapse of the Mexican peso. Absent a suspension, UDA 
projects that costly and inefficient movements of milk would have to be 
made to maintain pool status of producers who have historically 
supplied the market and to prevent disorderly marketing in the Central 
Arizona marketing area.
    Accordingly, it may be appropriate to suspend the aforesaid 
provisions beginning April 1, 1996, for an indefinite period.

List of Subjects in 7 CFR Part 1131

    Milk marketing orders.
    The authority citation for 7 CFR Part 1131 continues to read as 
follows:

    Authority: 7 U.S.C. 601-674.

    Dated: March 7, 1996.
Lon Hatamiya,
Administrator.
[FR Doc. 96-5933 Filed 3-12-96; 8:45 am]
BILLING CODE 3410-02-P