[Federal Register Volume 62, Number 30 (Thursday, February 13, 1997)]
[Rules and Regulations]
[Pages 6705-6707]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-3567]


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DEPARTMENT OF AGRICULTURE
Grain Inspection, Packers and Stockyards Administration

7 CFR Part 868


Removal of U.S. Grade Standards; Procedures for Development and 
Maintenance of Voluntary Grade Standards

AGENCY: Grain Inspection, Packers and Stockyards Administration, USDA.

ACTION: Final rule.

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SUMMARY: The Grain Inspection, Packers and Stockyards Administration 
(GIPSA) is adopting as a final rule, without change, its interim final 
rule removing the voluntary U.S. grade standards for Beans, Whole Dry 
Peas, Split Peas, and Lentils from the Code of Federal Regulations 
(CFR). The voluntary standards and all subsequent revisions or new 
standards will be made available in a separate publication, and will 
appear as notices in the Federal Register for the public to comment on. 
This action is part of the National Performance Review program to 
eliminate unnecessary regulations.
    In addition, this rule specifies in the CFR the procedures, which 
were set out in the February 29, 1996, interim rule, that GIPSA will 
follow in developing, issuing, revising, suspending or terminating 
voluntary U.S. grade standards for Beans, Whole Dry Peas, Split Peas, 
and Lentils.

EFFECTIVE DATE: February 14, 1997.

FOR FURTHER INFORMATION CONTACT: Sharon Vassiliades, USDA, GIPSA, Room 
0623-S, STOP 3649, 1400 Independence Avenue, S.W., Washington, D.C. 
20250-3649; FAX (202) 720-4628.

SUPPLEMENTARY INFORMATION: In the February 29, 1996, Federal Register 
(61 FR 7687), GIPSA published an Interim Final Rule with Request for 
Comments announcing removal from the CFR of voluntary standards dealing 
with the U.S. grade standards for Beans, Whole Dry Peas, Split Peas, 
and Lentils which may be used to describe the quality of these 
agricultural commodities as valued in the marketplace. No comments were 
received in response to this Interim Final Rule. GIPSA also will ensure 
that the public will have an opportunity to comment on any future 
proposed, new, or revised voluntary standards by publishing such 
standards in the ``Notices'' section of the Federal Register.

Executive Order 12866

    The Department of Agriculture (Department) is issuing this rule in 
conformance with Executive Order 12866.

Executive Order 12988

    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. This rule is not intended to have preemptive effect 
with respect to any State or local laws, regulations, or policies 
unless they present an irreconcilable conflict with this rule. This 
rule is not intended to have retroactive effect. There are no 
administrative procedures which must be exhausted prior to any judicial 
challenge to this rule or the application of its provisions.

Effects on Small Entities

    GIPSA has determined that this final rule will not have a 
significant economic impact on a substantial number of small entities 
as defined under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.). 
Removal of the voluntary standards from the CFR will not adversely 
affect interested persons. On the contrary, the U.S. pulse industry 
(beans, peas, and lentils) is expected to benefit from this action 
because it will provide for more timely improvements to the bean, pea, 
and lentil standards. Furthermore, those persons who apply the 
standards and most users of the inspection services do not meet the 
requirements for small entities as defined in the Regulatory 
Flexibility Act.
    The primary user of pulse inspection services is the U.S. 
government. It is estimated that between 80 and 90 percent of all 
inspections are performed (directly or indirectly) at the request of 
either the USDA's Farm Service Agency or Foreign Agricultural Service, 
or the U.S. Agency for International Development. Approximately 20 
percent of all inspections are performed at the request of major bean, 
pea, and lentil shippers who would not be considered small entities, as 
defined by the Small Business Administration (13 CFR 121.60); and about 
3 percent of the service requests originate from other interested 
parties, such as producers. But regardless of who requests the service, 
the standards are applied equally to all entities. Use of the standards 
for Beans, Whole Dry Peas, Split Peas, and Lentils is voluntary and 
small entities may avoid incurring any economic impact by not employing 
the standards. Although this action will remove standards for Beans, 
Whole Dry Peas, Split Peas, and Lentils from the CFR, small entities 
should see no changes as the standards will still be administered in a 
manner to ensure public input to their formulation. Further, no costs 
are expected to result from this action for handlers or producers and 
benefits derived from this action may be passed on to consumers.
    Further, this final rule includes in the CFR procedures to be used 
by GIPSA in developing, issuing, revising, suspending, or terminating 
voluntary U.S. grade standards. These procedures provide for public 
input and participation and will not adversely affect small or large 
entities.

Paperwork Reduction Act of 1995

    In accordance with the provisions of the Paperwork Reduction Act, 
the information collection requirements contained in Part 868 have been 
previously approved by the Office of Management and Budget under 
control number 0580-0013.

Background

    GIPSA is delegated by the Secretary of Agriculture under the 
Agricultural Marketing Act of 1946 (AMA), to provide programs for 
Federal grading/certification services and to develop and establish 
efficient marketing methods and practices for designated agricultural 
commodities such as Beans, Whole Dry Peas, Split Peas, and Lentils. For 
many years, these agricultural programs have facilitated the marketing 
of agricultural commodities by developing official U.S. grade standards 
which provide uniform language that may be used to describe the 
characteristics of commodities as valued by the marketplace. The AMA 
standards are widely used in private contracts, government procurement, 
marketing communication and, for some commodities, consumer 
information. Through the years, the standards have been promulgated as 
regulations and codified in the CFR.
    Rapid changes in consumer preferences, together with associated 
changes in commodity characteristics, processing technology, and 
marketing practices have out paced the revision or issuance of 
standards. As a result, industry and the marketplace could be burdened 
with outdated trading language. The President's regulatory review 
initiative provided an impetus to develop new approaches to more 
effectively meet the needs of U.S.

[[Page 6706]]

industry, government agencies, and consumers and still reduce the 
regulatory burden. To meet this initiative, the February 29, 1996, 
interim final rule (61 FR 7687) removed from the CFR regulations with 
respect to the official grade standards except those used to implement 
government price support. The regulations removed cover Beans, Whole 
Dry Peas, Split Peas, and Lentils. The grade standards for Rice will 
continue to appear in the CFR.

Procedures for Maintenance of Voluntary U.S. Grade Standards

    To ensure that future voluntary U.S. grade standards will be 
developed, issued, and revised in a uniform manner that ensures a fair 
and open process, GIPSA is placing in the CFR the procedures it will 
follow in developing, issuing, revising, suspending or terminating 
voluntary U.S. grade standards for Beans, Whole Dry Peas, Split Peas, 
and Lentils.
    In developing or revising existing grade standards, the 
Administrator must first determine that a new or revised standard is 
needed to facilitate trade in a particular commodity. Second, because 
use of the standards is voluntary, there must be demonstrated interest 
and support from the affected industry or other interested parties. And 
third, the standards must be practical to use.
    Initial requests for development or revision of a standard may come 
from the industry, trade, or consumer groups, State departments of 
agriculture, the U.S. Department of Agriculture, or others. Once a 
request has been received, GIPSA will coordinate procedures to gather 
information needed to move forward with the new or revised standards. 
After this process is completed, a notice of proposed standards change 
will be published in the Federal Register to solicit comment from any 
interested parties (normally 30 to 60 days). After evaluating the 
comments received from interested parties, GIPSA will determine whether 
to proceed, develop a new proposal, or terminate the process. The 
public will be informed through a news release and notice in the 
Federal Register.
    In addition to publication in the Federal Register, upon request, 
GIPSA will distribute copies of each standard as a pamphlet or other 
means under the direction of the Administrator of GIPSA.
    The above procedures, which were discussed and explained in the 
interim final rule published in the Federal Register on February 29, 
1996 (61 FR 7687), are set forth in a new Subpart B titled Marketing 
Standards.
    Good cause is found for not postponing the effective date of this 
rule until 30 days after publication in the Federal Register (5 U.S.C. 
553). This action makes final an interim final rule removing voluntary 
U.S. grade standards. This action also specifies in the CFR the 
procedures, as discussed in the interim rule, which GIPSA will follow 
in developing, issuing, revising, suspending or terminating such 
standards. No comments were received concerning the interim final rule. 
No useful purpose would be served by delaying the effective date of 
this final rule.

List of Subjects in 7 CFR Part 868

    Administrative practice and procedures, Agricultural commodities, 
Beans, Whole Dry Peas, Split Peas, and Lentils.

    For the reasons set forth in the preamble, the interim rule 
published on February 29, 1996 (61 FR 7687), is confirmed as a final 
rule and 7 CFR Part 868 is amended by adding a new Subpart B titled 
Marketing Standards.

PART 868--GENERAL REGULATIONS AND STANDARDS FOR CERTAIN 
AGRICULTURAL COMMODITIES

    1. The authority citation for Part 868 continues to read as 
follows:

    Authority: Secs. 202-208, 60 Stat. 1087, as amended (7 U.S.C. 
1621 et seq.)

    2. A new Subpart B (Secs. 868.101 through 868.103) is added to read 
as follows:

Subpart B--Marketing Standards

Sec.
868.101  General Information.
868.102  Procedures for establishing and revising grade standards.
868.103  Public notification of grade standards action.


Sec. 868.101  General information.

    The Grain Inspection, Packers and Stockyards Administration (GIPSA) 
of the U.S. Department of Agriculture (USDA) facilitates the fair and 
efficient marketing of agricultural products by maintaining voluntary 
grade standards for Beans, Whole Dry Peas, Split Peas, and Lentils, 
which provide a uniform language for describing the quality of these 
commodities in the marketplace. These standards may cover (but are not 
limited to) terms, classes, quality levels, performance criteria, and 
inspection requirements. Procedures contained in this part set forth 
the process which GIPSA will follow in developing, issuing, revising, 
suspending, or terminating the U.S. standards for Beans, Whole Dry 
Peas, Split Peas, and Lentils. Communications about GIPSA standards in 
general should be addressed to the Administrator, GIPSA, USDA, 1400 
Independence Avenue, S.W., Washington, D.C. 20250-3601.


Sec. 868.102  Procedures for establishing and revising grade standards.

    (a) GIPSA will develop, revise, suspend, or terminate grade 
standards if it determines that such action is in the public interest. 
GIPSA encourages interested parties to participate in the review, 
development, and revision of grade standards. Interested parties 
include growers, producers, processors, shippers, distributors, 
consumers, trade associations, companies, and State or Federal 
agencies. Such persons may at any time recommend that GIPSA develop, 
revise, suspend, or terminate a grade standard. Requests for action 
should be in writing, and should be accompanied by a draft of the 
suggested change, as appropriate.
    (b) GIPSA will:
    (1) Determine the need for new or revised standards;
    (2) Collect technical, marketing, or other appropriate data;
    (3) Conduct research regarding new or revised standards, as 
appropriate; and
    (4) Draft the proposed standards.
    (c) If GIPSA determines that new standards are needed, existing 
standards need to be revised, or the suspension or termination of 
existing standards is justified, GIPSA will undertake the action with 
input from interested parties.


Sec. 868.103  Public notification of grade standards action.

    (a) After developing a standardization proposal, GIPSA will publish 
a notice in the Federal Register proposing new or revised standards or 
suspending or terminating existing standards. The notice will provide a 
sufficient comment period for interested parties to submit comments.
    (b) GIPSA will simultaneously issue a news release about these 
actions, notifying the affected industry and general public. GIPSA will 
also distribute copies of proposals to anyone requesting a copy or to 
anyone it believes may be interested, including other Federal, State, 
or local government agencies.
    (c) All comments received within the comment period will be made 
part of the public record maintained by GIPSA, will be available to the 
public for review, and will be considered by GIPSA before final action 
is taken on the proposal.
    (d) Based on the comments received, GIPSA's knowledge of standards,

[[Page 6707]]

grading, marketing, and other technical factors, and any other relevant 
information, GIPSA will decide whether the proposed actions should be 
implemented.
    (e) If GIPSA concludes that the changes as proposed or with 
appropriate modifications should be adopted, GIPSA will publish the 
final changes in the Federal Register as a final notice. GIPSA will 
make the grade standards and related information available in printed 
form and electronic media.
    (f) If GIPSA determines that proposed changes are not warranted, or 
otherwise are not in the public interest, GIPSA will either publish in 
the Federal Register a notice withdrawing the proposal, or will revise 
the proposal and again seek public input.

    Dated: February 7, 1997.
David R. Shipman,
Acting Administrator.
[FR Doc. 97-3567 Filed 2-12-97; 8:45 am]
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