[Federal Register Volume 63, Number 167 (Friday, August 28, 1998)]
[Proposed Rules]
[Pages 45971-45973]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-23229]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1260

[No. LS-98-005]


Amendment to the Beef Promotion and Research Rules and 
Regulations

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This proposed rule would amend the Beef Promotion and Research 
Rules and Regulations (Rules and Regulations) established under the 
Beef Promotion and Research Act of 1985 (Act) to clarify requirements 
for documenting cattle sales transactions for which no assessments are 
due. This amendment would specifically require the timely filing of 
Statement of Certification of Non-Producer Status forms to obtain 
exemption from assessment.

DATES: Written comments must be received by October 27, 1998.

ADDRESSES: Send two copies of comments to Ralph L. Tapp, Chief; 
Marketing Programs Branch, STOP 0251; Livestock and Seed Program; 
Agricultural Marketing Service (AMS), USDA, Room 2606-S; P.O. Box 
96456; Washington, D.C. 20090-6456. Comments received may be inspected 
at

[[Page 45972]]

this location between 8:00 a.m. and 4:30 p.m., Monday through Friday, 
except holidays. State that your comments refer to Docket No. LS-98-
005.

FOR FURTHER INFORMATION CONTACT: Ralph L. Tapp, 202/720-1115.

SUPPLEMENTARY INFORMATION:

Executive Order 12866 and 12988 and Regulatory Flexibility Act and 
the Paperwork Reduction Act

    The Department of Agriculture is issuing this rule in conformance 
with Executive Order 12866.
    This proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. It is not intended to have a retroactive effect. 
Section 11 of the Act provides that nothing in the Act may be construed 
to preempt or supersede any other program relating to beef promotion 
organized and operated under the laws of the United States or any 
State. There are no administrative proceedings that must be exhausted 
prior to any judicial challenge to the provisions of this rule.
    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 United States Code (U.S.C.) 601 et seq.). The 
Administrator of AMS has considered the economic effect of this action 
on small entities and has determined that this proposed rule will not 
have a significant economic impact on a substantial number of small 
business entities. The purpose of RFA is to fit regulatory actions to 
the scale of businesses subject to such actions in order that small 
businesses will not be unduly burdened.
    In the January 30, 1998, issue of ``Cattle,'' the Department of 
Agriculture's (USDA) National Agricultural Statistics Service estimates 
that in 1997 the number of cattle operations in the United States 
totaled about 1.17 million. The majority of these operations subject to 
the Order are considered small businesses under the criteria 
established by the Small Business Administration.
    The proposed rule imposes no new burden on the industry as it 
merely clarifies the timing for filing of the Statement of 
Certification of Non-Producer Status forms when no assessment is due on 
cattle sales transactions. The regulations currently provide for 
certification of non-producer status for certain transactions. This 
action would merely specify the time of filing of the Statement of 
Certification of Non-Producer Status forms in order to obtain an 
exemption from assessments.
    In compliance with OMB regulations [5 CFR Part 1320] which 
implements the Paperwork Reduction Act(PRA) [44 U.S.C. 3501 et seq.], 
the information collection requirements contained in this proposed rule 
have been previously approved by OMB and were assigned OMB control 
number 0581-0093.
    This proposed rule would amend the rules and regulations published 
in the Federal Register on February 26, 1988 (53 FR 5749). These 
regulations further define the requirements of the Beef Promotion and 
Research Order (Order) under the Act.

Background and Proposed Change

    The Act approved December 23, 1985, authorizes the establishment of 
a national beef promotion and research program. The final Order 
establishing a beef promotion and research program was published in the 
Federal Register on July 18, 1986, (51 FR 21632) and assessments began 
on October 1, 1986. The program is administered by the Cattlemen's Beef 
Promotion and Research Board (Board) which is composed of 111 cattle 
producers and importers. The program is funded by a $1-per-head 
assessment on producer marketings of cattle in the United States and an 
equivalent amount on imported cattle, beef, and beef products. In 45 
States, Qualified State Beef Councils (QSBC) receive assessments 
remitted under the program. They retain up to half for State-directed 
programs, and remit the remainder to the Board. The Board receives all 
import assessments and all producer assessments in five States with 
relatively small cattle numbers which do not have QSBCs.
    The domestic assessment, due each time cattle are sold by a 
producer, is collected by the buyer or ``collecting person'' for 
remittance to the Board or QSBC. The term ``producer'' is defined as 
follows: ``means any person who owns or acquires ownership of cattle; 
provided, however, that a person shall not be considered a producer 
within the meaning of this subpart if (a) the person's only share in 
the proceeds of a sale of cattle or beef is a sales commission, 
handling fee, or other service fee; or (b) the person (1) acquired 
ownership of cattle to facilitate the transfer of ownership of such 
cattle from the seller to a third party, (2) resold such cattle no 
later than ten (10) days from the date on which the person acquired 
ownership, and (3) certified, as required by regulations prescribed by 
the Board and approved by the Secretary, that the requirements of this 
provision have been satisfied.''
    When cattle are sold within 10 days of purchase by a person who is 
not a producer under the above definition, the collecting person is not 
required to collect the $1 assessment from the person (seller), if the 
seller provides the collecting person with a Statement of Certification 
of Non-Producer Status on a form approved by the Board and the 
Secretary. The person claiming non-producer status must submit to the 
collecting person a Statement of Certification of Non-Producer Status 
``at the time of sale'' in lieu of paying the assessment. Although, the 
majority of non-producers provide collecting persons with a Statement 
of Certification of Non-Producer Status ``at the time of sale,'' the 
Rules and Regulations do not specify when the Statement of 
Certification of Non-Producer Status form is due. Board audits of 
accounting records of collecting persons have revealed transactions in 
which neither the $1 assessment, nor the Statement of Certification of 
Non-Producer Status required in lieu of the assessment, was obtained 
``at the time of sale'' by the collecting person.
    To make it clear that the Statement of Certification of Non-
Producer Status form must be filed with the collecting person in a 
timely manner, this proposed rule would amend Sec. 1260.314(b) of the 
Rules and Regulations to read as follows: ``(b) Each person seeking 
non-producer status pursuant to Sec. 1260.116 of this part shall 
provide the collecting person on a form approved by the Board and the 
Secretary with a ``Statement of Certification of Non-Producer Status'' 
at the time the collecting person makes payment to the seller of 
cattle, in lieu of the assessment that would otherwise be due. If the 
collecting person is a brand inspector, as provided for in 
Sec. 1260.311, the seller of cattle must provide to the brand inspector 
a ``Statement of Certification of Non-Producer Status'' at the time the 
physical brand inspection is completed in lieu of the assessment that 
would otherwise be due.'' This proposed change would facilitate 
enforcement of assessment collection in the Beef Promotion and Research 
Program.

List of Subjects in 7 CFR Part 1220

    Advertising, Agricultural research, Imports, Marketing agreements, 
Meat and meat products, Reporting and recordkeeping requirements.

    For the reasons set forth in the preamble, it is proposed that 7 
CFR part 1260 be amended as follows:

PART 1260--BEEF PROMOTION AND RESEARCH

    1. The authority citation of Part 1260 continues to read as 
follows:

    Authority: 7 U.S.C. 2901 et seq.


[[Page 45973]]


    2. Paragraph (b) of Sec. 1260.314 would be revised to read as 
follows:


Sec. 1260.314  Certification of non-producer status for certain 
transactions.

* * * * *
    (b) Each person seeking non-producer status pursuant to 
Sec. 1260.116 of this part shall provide the collecting person on a 
form approved by the Board and the Secretary with a ``Statement of 
Certification of Non-Producer Status'' at the time the collecting 
person makes payment to the seller of cattle, in lieu of the assessment 
that would otherwise be due. If the collecting person is a brand 
inspector, as provided for in Sec. 1260.311, the seller of cattle must 
provide to the brand inspector a ``Statement of Certification of Non-
Producer Status'' at the time the physical brand inspection is 
completed in lieu of the assessment that would otherwise be due.
* * * * *
    Dated: August 24, 1998.
Barry L. Carpenter,
Deputy Administrator, Livestock and Seed Program.
[FR Doc. 98-23229 Filed 8-27-98; 8:45 am]
BILLING CODE 3410-02-P