[Federal Register Volume 65, Number 53 (Friday, March 17, 2000)]
[Proposed Rules]
[Pages 14484-14485]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-6675]


-----------------------------------------------------------------------

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1160

[DA-00-07]


Fluid Milk Promotion Order; Invitation To Submit Comments on 
Proposed Amendments to the Order

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: This document invites written comments on proposals to amend 
the Fluid Milk Promotion Order. The proposed amendments, requested by 
the National Fluid Milk Processor Promotion Board (Board), which 
administers the order, would modify the membership status of Board 
members. The proposed amendments would allow a fluid milk processor to 
be represented by up to 3 members on the 20-member Board and allow a 
Board member whose fluid milk processor company affiliation has changed 
to serve for a period of up to 6 months or until a successor is 
appointed, whichever is sooner. The Board states that the proposed 
amendments are necessary to ensure Board continuity and full 
representation and allow it to operate in an efficient and effective 
manner.

DATES: Comments are due no later than April 17, 2000.

ADDRESSES: Comments (two copies) should be filed with the USDA/AMS/
Dairy Programs, Promotion and Research Branch, 1400 Independence 
Avenue, SW, Stop 0233, Room 2958, South Building, Washington, DC 20250-
0233. Advance, unofficial copies of such comments may be faxed to (202) 
720-0285. Comments should reference the title of the action and docket 
number and will be made available for public inspection in Room 2958 
South Building during regular business hours.

FOR FURTHER INFORMATION CONTACT: David Jamison, Chief, USDA/AMS/Dairy 
Programs, Promotion and Research Branch, 1400 Independence Avenue, Room 
2958, South Building, Washington, DC 20250-0233, (202) 720-6909, 
[email protected].

SUPPLEMENTARY INFORMATION: The Regulatory Flexibility Act (5 U.S.C. 
601-612) requires the Agency to examine the impact of a proposed rule 
on small entities. Small businesses in the fluid milk processing 
industry have been defined by the Small Business Administration as 
those processors employing more than 500 employees. For purposes of 
determining a processor'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. There are approximately 
275 fluid milk processors subject to the provisions of the Fluid Milk 
Promotion Order. Most of these processors are considered small 
entities.
    The Fluid Milk Promotion Order (7 CFR Part 1160) is authorized 
under the Fluid Milk Promotion Act of 1990 (Act) (7 U.S.C. 6401 et 
seq.). The Order provides for a 20-member Board with 15 members 
representing geographic regions and five at-large members which include 
at least three fluid milk processors and at least one member from the 
general public. To the extent practicable, members representing 
geographic regions should represent processing operations of differing 
sizes.
    The National Fluid Milk Processor Promotion Board has proposed 
amendments to the membership provisions of the Order. The proposed 
amendments would allow up to three representatives of a fluid milk 
processor to serve on the 20-person Board. Currently, the Order states 
that a fluid milk processor shall be represented on the Board by no 
more than two members. The Board indicates that this proposal is due to 
changes in the industry which have resulted in the formation of larger 
regional and national companies.
    The proposed amendments also would allow a Board member whose fluid 
milk processor company affiliation changes to serve on the Board for a 
period of up to six months or until a successor is appointed, whichever 
is sooner, provided that the eligibility requirements of the Order are 
still met. Under current Order provisions, a Board member whose company 
affiliation changes may continue to serve on the Board for a period of 
up to 60 days or until a successor is appointed, whichever is sooner, 
provided that such member continues to meet the Order's eligibility 
standards. The Board states that the proposed amendment would more 
accurately reflect the time needed to fill a Board vacancy.
    The Board believes that the proposed amendments would ensure Board 
continuity and full representation and allow it to operate in an 
effective and efficient manner.
    The proposed amendments to the Order should not add any burden to 
regulated parties because they relate to provisions concerning Board 
membership. Additionally, the proposed changes would not impose 
additional reporting or collecting requirements. No relevant Federal 
rules have been identified that duplicate, overlap, or conflict with 
this rule.
    Accordingly, pursuant to 5 U.S.C. 605(b), the Agricultural 
Marketing Service has certified that this rule would not have a 
significant economic impact on a substantial number of small entities.

Executive Order 12866 and the Paperwork Reduction Act

    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 would not preempt any State or 
local laws, regulations, or policies unless they present an 
irreconcilable conflict with this rule.
    The Fluid Milk Promotion Act of 1990, as amended, authorizes the 
Fluid Milk Promotion Order. The Act provides that administrative 
proceedings must be exhausted before parties may file suit in court. 
Under section 1999K of the Act, any person subject to a Fluid Milk 
Promotion Order may file 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 the law and request 
a modification of the Order or to be exempted from the Order. A person

[[Page 14485]]

subject to an order 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 person is an inhabitant, or has his principal 
place of business, has jurisdiction to review the Secretary's ruling on 
the petition, provided a complaint is filed not later than 20 days 
after the date of the entry of the ruling.
    In accordance with the Paperwork Reduction Act (44 U.S.C. Chapter 
35), the forms and reporting and recordkeeping requirements that are 
included in the Fluid Milk Promotion Order have been approved by the 
Office of Management and Budget (OMB) and were assigned OMB No. 0581-
0093, except for Board members' nominee information sheets that were 
assigned OMB No. 0505-0001.

Statement of Consideration

    The proposed rule would amend certain provisions of the Fluid Milk 
Promotion Order. The proposed amendments would modify the membership 
provisions of the Order. One proposal would allow up to three 
representatives of a fluid milk processor to serve on the 20-member 
Board. Currently, the Order states that a fluid milk processor shall be 
represented by no more than two representatives on the Board. The Board 
indicated that this proposal is due to consolidations in the industry 
which have resulted in the formation of larger regional and national 
companies. Additionally, the Board asserts that the proposed amendment 
would provide the Secretary greater flexibility in those situations 
that warrant additional representation for a fluid milk processor.
    The proposed amendments also would allow a Board member who changes 
fluid milk processor company affiliation to serve on the Board for a 
period of up to six months or until a successor is appointed, whichever 
is sooner, provided that the eligibility requirements of the Order are 
still met. Under current Order provisions, a Board member whose company 
affiliation changes may continue to serve on the Board for a period of 
up to 60 days or until a successor is appointed, whichever is sooner, 
provided that such member continues to meet the Order's eligibility 
standards. The Board states that the proposed amendment would more 
accurately reflect the time needed to fill a Board vacancy.
    The Board believes that the proposed amendments would ensure Board 
continuity and full representation and allow it to operate in an 
effective and efficient manner.
    Interested parties are invited to comment on this proposed rule. A 
30-day comment period is provided. This period is deemed appropriate so 
as to implement the proposed changes, if adopted, as soon as possible, 
in order to avoid unnecessary vacancies on the Board.

List of Subjects 7 CFR Part 1160

    Fluid milk products, Milk, Promotion.
    For the reasons set forth in the preamble, it is proposed that 7 
CFR part 1160 is amended as follows:

PART 1160--FLUID MILK PROMOTION PROGRAM

    1. The authority citation for 7 CFR part 1160 continues to read as 
follows:


    Authority: 7 U.S.C. 6401-6417.

    2. Section 1160.200 is amended by revising paragraph (a) to read as 
follows:


Sec. 1160.200  Establishment and membership.

    (a) There is hereby established a National Fluid Milk Processor 
Board of 20 members, 15 of whom shall represent geographic regions and 
five of whom shall be at-large members of the Board. To the extent 
practicable, members representing geographic regions shall represent 
fluid milk processing operations of differing sizes. No fluid milk 
processor shall be represented on the Board by more than three members. 
The at-large members shall include at least three fluid milk processors 
and at least one member from the general public. Except for the member 
or members from the general public, nominees appointed to the Board 
must be active owners or employees of a fluid milk processor. The 
failure of such a member to own or work for a fluid milk processor or 
its successor fluid milk processor shall disqualify that member for 
membership on the Board except that such member shall continue to serve 
on the Board for a period of up to six months following the 
disqualification or until appointment of a successor Board member to 
such position, whichever is sooner, provided that such person continues 
to meet the criteria for serving on the Board as a processor 
representative.
* * * * *

    Dated: March 14, 2000.
Kathleen A. Merrigan,
Administrator, Agricultural Marketing Service.
[FR Doc. 00-6675 Filed 3-16-00; 8:45 am]
BILLING CODE 3410-02-P