[Federal Register Volume 62, Number 61 (Monday, March 31, 1997)]
[Proposed Rules]
[Page 15129]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-7808]


 ========================================================================
 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. 62, No. 61 / Monday, March 31, 1997 / 
Proposed Rules  

[[Page 15129]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 46

[Docket No. FV96-351A]
RIN: 0581-AB41


Amendments to the Perishable Agricultural Commodities Act (PACA)

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule; reopening of the comment period.

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SUMMARY: This document reopens the period for filing written comments 
on revisions to the Perishable Agricultural Commodities Act (PACA) 
license fees. These changes would conform current regulations to new 
legislative changes signed into law by President Clinton. Specifically, 
the changes to the license fee structure phase retailers and grocery 
wholesalers out of license fee payments over a 3-year period; establish 
a one-time administrative fee for new retailers and grocery wholesalers 
entering the program after the 3-year phase-out period; and increase 
license fees from $400 to $550 annually for all other licensees.

DATES: Comments must be received by April 30, 1997.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this reopened action. Comments must be sent to James R. 
Frazier, Chief, PACA Branch, Fruit and Vegetable Division, Room 2095-
South Building, 1400 Independence Avenue, S.W., P.O. Box 96456, 
Washington, DC 20090-6456. All comments should reference the docket 
number and the date and page number of this issue in the Federal 
Register and will be made available for inspection in the PACA Branch 
during regular business hours.

FOR FURTHER INFORMATION CONTACT: James R. Frazier, Chief, PACA Branch, 
F&V Division, AMS, USDA, Room 2095-South Building, P.O. Box 96456, 
Washington, DC 20090-6456, Phone (202) 720-2272.

SUPPLEMENTARY INFORMATION: The PACA was amended by Public Law 104-48. 
The regulations implementing the PACA (other than the Rules of 
Practice) are published in the Code of Federal Regulations at Title 7, 
Part 46 (7 CFR Part 46). A proposed rule to amend the regulations to 
implement Public Law 104-48 was published in the September 10, 1996 
issue of the Federal Register (61 FR 47674). The 60-day comment period 
closed on November 12, 1996. Twelve comments were received on the 
proposed rule from four trade associations representing growers and 
shippers, three trade groups representing retailers and grocery 
wholesalers, three law firms, one association representing the frozen 
food industry, and one fruit and vegetable broker.
    Section 46.6 of the proposed rule would phase all retailers and 
grocery wholesalers out of license fee payments over the 3-year period, 
beginning November 15, 1995 and ending November 14, 1998. The gradual 
phase-out of fee payments under this proposed rule is inclusive of all 
retailers and grocery wholesalers, regardless of when they were 
initially licensed under the PACA.
    Of the twelve comments received, three addressed the collection of 
renewal fees paid by grocery wholesalers and retailers licensed by USDA 
after enactment of Public Law 104-48. The three commentors write that 
USDA is incorrectly proposing that first-time licensed retailers and 
grocery wholesalers pay renewal fees. They refer to section 499 (c) (3) 
of the statute designated, ``ONE-TIME FEE FOR RETAILERS AND GROCERY 
WHOLESALERS THAT ARE DEALERS'', which specifies the fees to be paid by 
a retailer or a grocery wholesaler making an initial application during 
the phase-out period and after such period ends. The commentors 
emphasized the statutory language ending section 499 (c) (3) which 
states: ``* * *a retailer or grocery wholesaler paying a fee under this 
paragraph shall not be required to pay any fee for renewal of the 
license for subsequent years.'' Since the commentors' interpretation of 
the legislative amendment is substantially different from USDA's view 
but appears to be plausible, USDA has determined that reopening the 
comment period until April 30, 1997, would allow other parties 
interested in this matter more time to review this section of the 
proposed rule and provide their comments. In the meantime, USDA will 
continue to assess license renewal fees as provided in 7 CFR Part 46.6. 
Should USDA, after notice and comment, conclude that the law excludes 
certain categories of licensees from the requirement to pay regular 
renewal fees, all such fees paid by those firms or individuals shall be 
refunded with interest. If USDA reaches such a conclusion, the PACA 
program will face a projected $750,000 loss in revenue over the three-
year phase-out period.
    Accordingly, the period in which to file written comments is 
reopened until April 30, 1997.

List of Subjects in 7 CFR Part 46

    Agricultural commodities, Brokers, Penalties, Reporting and 
recordkeeping requirements.

    Dated: March 21, 1997.
Eric M. Forman,
Acting Director, Fruit and Vegetable Division.
[FR Doc. 97-7808 Filed 3-28-97; 8:45 am]
BILLING CODE 3410-02-P