[Federal Register Volume 64, Number 46 (Wednesday, March 10, 1999)]
[Rules and Regulations]
[Pages 11755-11757]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-5865]


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NORTHEAST DAIRY COMPACT COMMISSION

7 CFR Part 1381


Handler Petition Procedure

AGENCY: Northeast Dairy Compact Commission.

ACTION: Interim procedural rule with request for comments.

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SUMMARY: This interim procedural rule amends the rules of practice 
governing proceedings on petitions to modify or be exempted from the 
compact over-order price regulations. The Commission amends the rule to 
provide the option, in appropriate circumstances, to appoint an 
independent hearing officer to serve as a single person hearing panel, 
to hear and issue recommended decisions in Handler Petition 
proceedings. The Commission retains its current provision for the 
appointment of a hearing panel of Commission members

[[Page 11756]]

to hear Handler Petitions, when appropriate.

DATES: Effective date: March 10, 1999.
    Sworn and notarized written testimony, comments and exhibits may be 
submitted until 5:00 p.m. on April 9, 1999.

ADDRESSES: Mail, or deliver, sworn and notarized testimony, comments 
and exhibits to: Northeast Dairy Compact Commission, 34 Barre Street, 
Suite 2, Montpelier, Vermont 05602.

FOR FURTHER INFORMATION CONTACT: Kenneth M. Becker, Executive Director, 
Northeast Dairy Compact Commission at the above address or by telephone 
at (802) 229-1941, or by facsimile at (802) 229-2028.

SUPPLEMENTARY INFORMATION:

Background

    The Northeast Dairy Compact Commission (``Commission'') was 
established under authority of the Northeast Interstate Dairy Compact 
(``Compact''). The Compact was enacted into law by each of the six 
participating New England states as follows: Connecticut--Pub. L. 93-
320; Maine--Pub. L. 89-437, as amended, Pub. L. 93-274; Massachusetts--
Pub. L. 93-370; New Hampshire--Pub. L. 93-336; Rhode Island--Pub. L. 
93-106; Vermont--Pub. L. 93-57. In accordance with Article I, Section 
10 of the United States Constitution, Congress consented to the Compact 
in Pub. L. 104-127 (FAIR Act), Section 147, codified at 7 U.S.C. 7256. 
Subsequently, the United States Secretary of Agriculture, pursuant to 7 
U.S.C. 7256(1), authorized implementation of the Compact.
    Pursuant to its rulemaking authority under Article V, Section 11 of 
the Compact, the Commission concluded an informal rulemaking process 
and voted to adopt a compact over-order price regulation on May 30, 
1997.1 The Commission subsequently amended and extended the 
compact over-order price regulation.2 In 1998, the 
Commission further amended specific provisions of the over-order price 
regulation.3 The current compact over-order price regulation 
is codified at 7 CFR Chapter XIII.
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    \1\ 62 FR 29626 (May 30, 1997)
    \2\ 62 FR 62810 (Nov. 25, 1997)
    \3\ 63 FR 10104 (Feb. 27, 1998); 63 FR 46385 (Sept. 1, 1998); 
and 63 FR 65517 (Nov. 27, 1998).
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    On June 30, 1997, the Commission promulgated an interim procedural 
rule to implement Article VI, Section 16(b) of the Compact.4 
That section of the Compact requires the Commission to establish a 
procedure for handlers to petition for exemption or modification of any 
provision of the Compact over-order price regulation.5 The 
Commission requested comments on the interim procedural rule, however 
no comments were received.6 The rules are codified at 7 CFR 
Part 1381. As relevant here, the current regulations, section 
1381.4(a), require the Chair of the Commission to appoint ``from one to 
three Commission members who shall consider the petition'' and serve as 
the hearing panel.
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    \4\ 62 FR 35065 (June 30, 1997) and 62 FR 36651 (July 9, 1997).
    \5\ Article VI, section 16(b) of the Compact provides that: 
``Any handler subject to an order may file a written petition with 
the commission stating that any such order or any provision of any 
such order or any obligation imposed in connection therewith is not 
in accordance with law and praying for a modification thereof or to 
be exempted therefrom. He shall thereupon be given an opportunity 
for a hearing upon such petition, in accordance with regulations 
made by the commission. After such hearing, the commission shall 
make a ruling upon the prayer of such petition, which shall be 
final, if in accordance with law.''
    \6\ The Commission requested comments be filed by July 30, 1997. 
62 FR 35065 (June 30, 1997).
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    The Commission has received and processed a number of 
administrative petitions since July 1997. Based on its evolving 
experience with the current petition procedures, the Commission 
concludes that the rules should provide the discretion, in appropriate 
circumstances, of appointing an independent hearing officer, to serve 
as the hearing panel, in addition to the current provision for 
appointing a hearing panel of Commission members, to hear and issue 
recommended decisions in Handler Petition proceedings. The hearing 
officer would not be employed by or be a member of the Compact 
Commission, but would be qualified by training and experience to hear 
administrative handler petitions.
    Accordingly, the Commission hereby amends section 1381.4(a) to 
authorize the Commission's Committee on Administration to determine 
whether to appoint a hearing panel consisting of either Commission 
members, or an independent hearing officer, to serve as the hearing 
panel. Based on the determination of the Committee on Administration, 
the Commission Chair then makes the appointment of the hearing panel.
    The Commission amends the current procedural rule to be effective 
upon publication. In adopting this amendment to the current rule, the 
Commission specifically directed that this amended rule apply to all 
petitions filed, or for which filing of a petition is perfected, after 
March 3, 1999. Therefore, the Commission will hold all petitions filed, 
or for which filing is perfected, after March 3, 1999 and will not make 
any hearing panel appointments between March 3, 1999 and publication of 
this rule.

Public Participation in Rulemaking Proceedings

    The Commission seeks and encourages comments on these proposed 
amendments to the handler petition process. The Commission continues to 
benefit from the valuable insight and active participation of all 
segments of the affected community, including consumers, processors and 
producers in the development and administration of the over-order price 
regulation and welcomes comments from handlers and other interested 
persons.

Request for Written Comments

    Any person may participate in the rulemaking proceeding by 
submitting written comments or exhibits to the Commission. Comments and 
exhibits may be submitted at any time before 5:00 p.m. on April 9, 
1999.

    Note: Comments and exhibits will be made part of the record of 
the rulemaking proceeding only if they identify the author's name, 
address and occupation, and if they include a sworn and notarized 
statement indicating that the comment and/or exhibit is presented 
based upon the author's personal knowledge and belief. Facsimile 
copies will be accepted up until the 5:00 p.m. deadline, but the 
original must then be sent by ordinary mail.

List of Subjects in 7 CFR Part 1381

    Administrative practice and procedure, Milk.

Codification in Code of Federal Regulations

    For reasons set forth in the preamble, the Northeast Dairy Compact 
Commission amends 7 CFR Part 1381 as follows:

PART 1381--RULES OF PRACTICE GOVERNING PROCEEDINGS ON PETITIONS TO 
MODIFY OR TO BE EXEMPTED FROM COMPACT OVER-ORDER PRICE REGULATION

    1. The authority citation for Part 1381 continues to read as 
follows:

    Authority: 7 U.S.C. 7256.

    2. Section 1381.4 is amended by revising paragraph (a) to read as 
follows:


Sec. 1381.4  Conduct of proceedings.

    (a) Appointment of hearing panel. Upon receipt of a petition, and 
as determined appropriate by the Commission's Committee on 
Administration, the Chair shall appoint a hearing panel of either one 
to three Commission members, who are not

[[Page 11757]]

members of the state delegation in which the Handler is incorporated or 
has its principal place of business, who have no pecuniary interest in 
the outcome, and who are otherwise fair and impartial, or an 
independent hearing officer. The hearing panel shall consider the 
petition. For hearing panels of Commission members greater than one 
member, the Chair shall designate a chief hearing officer.
* * * * *
    Dated: March 4, 1999.
Kenneth M. Becker,
Executive Director.

[FR Doc. 99-5865 Filed 3-9-99; 8:45 am]
BILLING CODE 1650-01-P