[Federal Register Volume 64, Number 186 (Monday, September 27, 1999)]
[Rules and Regulations]
[Pages 51887-51888]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-24772]



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 Rules and Regulations
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  Federal Register / Vol. 64, No. 186 / Monday, September 27, 1999 / 
Rules and Regulations  

[[Page 51887]]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 29

[Docket No. TB-99-07]


Tobacco Inspection; Subpart B--Regulations

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: The Agricultural Marketing Service is amending the regulations 
governing the mandatory inspection of tobacco by adding the term 
``purchaser'' to specifically include in the regulatory text this 
segment of the industry from attempting to influence, impeding, or 
discussing any matter relating to grading while the tobacco inspectors 
are grading tobacco on the auction warehouse floor, and removing the 
language allowing the producer to discuss the grading of their tobacco 
with the inspector at the time grading is being performed. This rule 
will incorporate recommendations made by the Flue-Cured Tobacco 
Advisory Committee, the Five-State Flue-Cured Tobacco Committee, and 
industry representatives that clarification of this regulation is 
necessary to eliminate interference, distraction, and outside influence 
on the grading of tobacco. These amendments will revise the regulation 
to better eliminate interference, distraction, and outside influence on 
the grading of tobacco.

DATES: Effective September 28, 1999; comments received by November 26, 
1999 will be considered prior to issuance of a final rule.

ADDRESSES: Send comments to John P. Duncan III, Deputy Administrator, 
Tobacco Programs, Agricultural Marketing Service (AMS), United States 
Department of Agriculture (USDA), Room 502 Annex Building, P.O. Box 
96456, Washington, DC 20090-6456; or Fax: (202) 205-0235. Comments will 
be made available for public inspection at this location during regular 
business hours.

FOR FURTHER INFORMATION CONTACT: John P. Duncan III, Deputy 
Administrator, Tobacco Programs, AMS, USDA, Room 502 Annex Building, 
P.O. Box 96456, Washington, DC 20090-6456; telephone: (202) 205-0567, 
Fax: (202) 205-0235.

SUPPLEMENTARY INFORMATION: This rule is amending the regulations 
governing the mandatory inspection of tobacco pursuant to the 
provisions of the Tobacco Inspection Act (49 Stat. 741, 7 U.S.C. 511 et 
seq.).
    The Department has received recommendations from all segments of 
the tobacco industry, the Flue-Cured Tobacco Advisory Committee, and 
the Five-State Flue-Cured Tobacco Committee that changes to the 
regulation in subpart B, section 29.81(a), Interference with 
inspectors, is necessary to better eliminate interference, distraction, 
and outside influence on the grading of tobacco.
    The current regulation specifies that, no person, including the 
owner, producer, warehouseman, agent, or employee thereof shall attempt 
to influence, impede, or discuss any matter relating to grading while 
the tobacco inspectors are grading tobacco on the auction warehouse 
floor. The regulatory change will not allow any member of the industry, 
including tobacco purchasers, to discuss any matter pertaining to 
grading while the tobacco inspectors are grading tobacco on the auction 
warehouse floor. This action also will remove language allowing a 
producer to discuss the grading of their tobacco with the inspector at 
the time grading is performed. While producers will be allowed to be 
present when their tobacco is being graded, they cannot discuss the 
grade or attempt to influence or intimidate the inspector during the 
performance of grading duties. This will not preclude the producer from 
appealing the decision of the inspector after a grade has been 
assigned.
    Accordingly, this rule will add the term ``purchaser'' to include 
this segment of the industry from attempting to influence, impeding, or 
discussing any matter relating to grading while the tobacco inspectors 
are grading tobacco on the auction warehouse floor, and the language 
allowing the producer to discuss the grading of their tobacco with the 
inspector at the time grading is being performed will be removed. This 
action will incorporate recommendations made by industry 
representatives, the Flue-Cured Tobacco Advisory Committee, and the 
Five-State Flue-Cured Tobacco Committee that no one be allowed to 
discuss any matter while tobacco grading activities are being performed 
on the auction warehouse floor.
    This rule has been determined to be ``not significant'' for 
purposes of Executive Order 12866, and therefore, has not been reviewed 
by the Office of Management and Budget.
    This rule has been reviewed under Executive Order 12866, Civil 
Justice Reform. This action is not intended to have retroactive effect. 
This rule will not preempt any State or local laws, regulations, or 
policies, unless they present an irreconcilable conflict with this 
rule. There are no administrative procedures which must be exhausted 
prior to any judicial challenge to the provisions of this rule.
    Additionally, in conformance with the provisions of the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.), full consideration has been 
given to the potential economic impact upon small business. All tobacco 
warehouses and producers fall within the confines of ``small business'' 
which are defined by the Small Business Administration (13 CFR 121.601) 
as those having annual receipts of less than $500,000 and small 
agricultural service firms are defined as those whose annual receipts 
are less than $3,500,000. There are approximately 190 tobacco 
warehouses and approximately 30,000 producers and most warehouses and 
producers may be classified as small entities. The Agricultural 
Marketing Service has determined that this action will not have a 
significant economic impact on a substantial number of small entities. 
This rule amends the regulations governing the mandatory inspection of 
tobacco by (1) Adding to the terms ``purchaser'' to specifically 
include in the regulatory text this segment of the industry from 
attempting to influence, impeding, or discussing any matter relating to 
grading while tobacco inspectors are grading tobacco on the auction 
floor and (2) removing language allowing a producer from discussing 
grading of their tobacco with the

[[Page 51888]]

inspector at the time grading is being performed. Specifying the term 
``purchaser'' in the text of the regulation merely identifies a segment 
of the industry already prohibited from these actions. Further, removal 
of language allowing producers to discuss with inspectors their 
tobacco, would have minimal impact on producers since producers would 
not be precluded from appealing the decision of an inspector after a 
grade had been assigned.
    It is hereby found and determined upon good cause that it is 
impracticable, unnecessary, and contrary to the public interest to give 
preliminary notice prior to putting this rule into effect and that good 
cause exists for not postponing the effective date of this rule until 
30 days after publication in the Federal Register because: (1) The 1999 
flue-cured marketing season is currently underway and this action is 
needed, as soon as possible, to provide clarification when it is 
allowable for someone to communicate with the grading personnel while 
they are performing their duties; and (2) this interim final rule 
provides a 60-day comment period, and all comments timely received will 
be considered prior to finalization of this rule.

Lists of Subject in 7 CFR Part 29

    Administrative practice and procedure, Advisory committees, 
Government publications, Imports, Pesticides and pests, Reporting and 
recordkeeping requirements, Tobacco.
    For the reasons set forth in the preamble, 7 CFR Part 29 is amended 
as follows:

PART 29--TOBACCO INSPECTION

Subpart B--Regulations

    1. The authority citation for Part 29, subpart B continues to read 
as follows:

    Authority: 7 U.S.C. 511m and 511r.

    2. In Sec. 29.81, paragraph (a) is revised to read as follows:


Sec.  29.81  Interference with inspectors.

    (a) No person, including the owner, producer, warehouseman, agent, 
or employee thereof shall attempt, in any manner, to influence an 
inspector with respect to the grade designation of tobacco, or impede, 
in any manner, an inspector while the inspector is in the process of 
grading tobacco on the warehouse auction floor, or ask any question or 
discuss any matter pertaining to the grading of tobacco while the 
inspector is grading any tobacco on the warehouse auction floor. While 
inspectors are engaged in grading the day's sale, all requests for 
information concerning the grade designation on or requests to review 
the grade of any lot of tobacco shall be made only to the head grader 
or to the market supervisor grader.
* * * * *
    Dated: September 17, 1999.
Kathleen A. Merrigan,
Administrator, Agricultural Marketing Service.
[FR Doc. 99-24772 Filed 9-24-99; 8:45 am]
BILLING CODE 3410-02-P