[Federal Register Volume 64, Number 135 (Thursday, July 15, 1999)]
[Proposed Rules]
[Pages 38144-38145]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-18051]


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 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. 64, No. 135 / Thursday, July 15, 1999 / 
Proposed Rules  

[[Page 38144]]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1131

[DA-99-05]


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

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule; suspension.

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SUMMARY: This document invites written comments on a proposal to 
suspend until completion of Federal Order Reform certain sections of 
the Central Arizona Federal milk marketing order at the beginning of 
the next marketing period. The proposed rule would reinstate a 
suspension that expired on March 31, 1999, which eliminates the 
requirement that a cooperative association that operates a 
manufacturing plant ship at least 50 percent of its receipts to other 
handler pool plants to maintain pool status of its manufacturing plant. 
United Dairymen of Arizona (UDA), a cooperative association that 
represents nearly all of the producers who supply milk to the Central 
Arizona market, has requested continuation of the suspension. UDA 
asserts that the suspension is necessary to prevent the uneconomical 
and inefficient movements of milk.

DATES: Comments must be submitted on or before July 22, 1999.

ADDRESSES: Comments (two copies) should be filed with USDA/AMS/Dairy 
Division, Order Formulation Branch, Room 2971, South Building, P.O. Box 
96456, Washington, DC 20090-6456. Advance, unofficial copies of such 
comments may be faxed to (202) 690-0552. Reference should be given to 
the title of action and docket number.

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

SUPPLEMENTARY INFORMATION: The Department is issuing this proposed rule 
in conformance with Executive Order 12866.
    This proposed rule has been reviewed under Executive Order 12988, 
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 request 
modification or exemption from such order by filing with the Secretary 
a petition stating that the order, any provision of the order, or any 
obligation imposed in connection with the order is not in accordance 
with law. 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.

Small Business Consideration

    In accordance with the Regulatory Flexibility Act (5 U.S.C. 601 et 
seq.), the Agricultural Marketing Service considered the economic 
impact of this action on small entities and has certified that this 
proposed rule will not have a significant economic impact on a 
substantial number of small entities. For the purpose of the Regulatory 
Flexibility Act, a dairy farm is considered a ``small business'' if it 
has an annual gross revenue of less than $500,000, and a dairy products 
manufacturer is a ``small business'' if it has fewer than 500 
employees. For the purposes of determining which dairy farms are 
``small businesses,'' the $500,000 per year criterion was used to 
establish a production guideline of 326,000 pounds per month. Although 
this guideline does not factor in additional monies that may be 
received by dairy producers, it should be an inclusive standard for 
most ``small'' dairy farmers. For purposes of determining a handler's 
size, if the plant is part of a larger company operating multiple 
plants that collectively exceed the 500-employee limit, the plant will 
be considered a large business even if the local plant has fewer than 
500 employees.
    For the month of March 1999, the milk of 100 producers was pooled 
on the Central Arizona milk order. Of these producers, 3 produced below 
the 326,000-pound production guideline and are considered small 
businesses. Of the total number of producers whose milk was pooled 
during that month, 97 were members of UDA and 3 were independent 
producers.
    For March 1999, there were 5 handlers operating pool plants under 
the Central Arizona milk order. Of these handlers, 2 are considered 
small businesses.
    This rule would lessen the regulatory impact of the order on 
certain milk handlers and 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.
    Interested parties are invited to submit comments on the probable 
regulatory and informational impact of this proposed rule on small 
entities. Also, parties may suggest modifications of this proposal for 
the purpose of tailoring their applicability to small businesses.
    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 until completion of Federal 
Order Reform:
    In Sec. 1131.7, paragraph (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

[[Page 38145]]

two copies of their views to USDA/AMS/Dairy Programs, 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 start of the next marketing period.
    All written submissions made pursuant to this notice will be made 
available for public inspection in Dairy Programs during regular 
business hours (7 CFR 1.27(b)).

Statement of Consideration

    The proposed rule would suspend certain provisions of the Central 
Arizona order until completion of Federal Order Reform. The proposed 
suspension would 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.
    Reinstatement of the suspension which expired on March 31, 1999, 
was requested by United Dairymen of Arizona (UDA), a cooperative 
association which represents nearly all of the dairy farmers who supply 
the Central Arizona market. UDA contends that the pool status of their 
manufacturing plant would be threatened if the suspension is not 
reinstated. UDA states that the same marketing conditions that 
warranted the suspension for the past four years 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 the 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 at the beginning of the next marketing period until 
completion of Federal Order Reform.

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: July 9, 1999.
Richard M. McKee,
Deputy Administrator, Dairy Programs.
[FR Doc. 99-18051 Filed 7-14-99; 8:45 am]
BILLING CODE 3410-02-P