[Federal Register Volume 65, Number 107 (Friday, June 2, 2000)]
[Proposed Rules]
[Pages 35298-35301]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-13783]


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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. 65, No. 107 / Friday, June 2, 2000 / Proposed 
Rules  

[[Page 35298]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1216

[FV-00-1216-PR]


Peanut Promotion, Research, and Information Order; Amendment No. 
1 To Add a Public Member to the National Peanut Board

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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

SUMMARY: This rule would add a public member and alternate to the 
National Peanut Board (Board). The Board administers the Peanut 
Promotion, Research, and Information Order (Order) under the 
supervision of the U.S. Department of Agriculture (USDA or the 
Department). This rule would also add the authority for producers in 
minor peanut-producing states to conduct nominations by mail ballot, 
make changes related to the addition of the public member, and 
eliminate obsolete language. The addition of a public member is to 
provide for additional input from the public and increase the 
opportunity for diversity on the Board. The other proposed changes are 
intended to facilitate effective administration of the program.

DATES: August 1, 2000.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposed rule to: Docket Clerk, Research and Promotion 
Branch, Fruit and Vegetable Programs (FV), Agricultural Marketing 
Service (AMS), USDA, Stop 0244, Room 2535-S, 1400 Independence Avenue, 
SW, Washington, DC 20250-0244. Comments should be submitted in 
triplicate by August 1, 2000 and will be made available for public 
inspection at the above address during regular business hours or on the 
Internet at www.ams.usda.gov/fv/rpb.html. Comments may also be 
submitted electronically to: [email protected]. All comments 
should reference the docket number and the date and page number of this 
issue of the Federal Register. A copy of this rule may be found at 
www.ams.usda.gov/fv/rpdocketlist.htm. Pursuant to the Paperwork 
Reduction Act of 1995 (PRA), also send comments regarding the accuracy 
of the burden estimate, ways to minimize the burden, including through 
the use of automated collection techniques or other forms of 
information technology, or any other aspect of this collection of 
information, to the above address. Comments concerning the information 
collection under the PRA should also be sent to the Desk Officer for 
Agriculture, Office of Information and Regulatory Affairs, Office of 
Management and Budget, Washington, DC 20503.

FOR FURTHER INFORMATION CONTACT: Daniel R. Williams II, Research and 
Promotion Branch, FV, AMS, USDA, Room 2535-S, Stop 0244, Washington, DC 
20250-0244; toll free telephone number (888) 720-9917, or facsimile 
(202) 205-2800.

SUPPLEMENTARY INFORMATION: The rule is issued under the Peanut 
Promotion, Research, and Information Order (Order) (7 CFR part 1216). 
The Order is authorized under the Commodity Promotion, Research, and 
Information Act of 1996 (Act) (Pub. L. 104-427, 7 U.S.C. 7401-7425).

Question and Answer Overview

Why Is USDA Proposing To Add a Public Member to the National Peanut 
Board?

    A public member and alternate could provide valuable feedback to 
the Board in developing its consumer programs. In addition, these non-
industry positions would increase the opportunity for women, 
minorities, and persons with disabilities to serve on the Board.

Why Is USDA Proposing To Allow Producers in Minor Peanut-Producing 
States To Nominate Persons To Serve as the At-Large Member and 
Alternate of the Board by Mail Ballot?

    Allowing producers in minor peanut-producing states to make 
nominations for the at-large member and alternate of the Board by mail 
ballot would help ensure grater participation in the nomination 
process, particularly in those states with a small number of producers 
who are not located in close proximity.

How Long Do I Have To Comment on This Proposed Rule?

    You have 60 days to comment on this proposal. That means that your 
written comments must be received by August 1, 2000. You may mail, fax, 
or e-mail your comments. In addition, you have 60 days to provide 
written comments to OMB on the paperwork burden associated with this 
proposal. Those comments must be received by the same date.

Executive Orders 12866 and 12998 and the Regulatory Flexibility Act

    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. It is not intended to have retroactive effect. Section 
524 of the Act provides that the Act shall not affect or preempt any 
other Federal or State law authorizing promotion or research relating 
to an agricultural commodity.
    Under Section 519 of the Act, a person subject to the Order may 
file a petition with the Secretary of Agriculture (Secretary) stating 
that the Order, any provision of the Order, or any obligation imposed 
in connection with the Order, is not established in accordance with the 
law, and requesting a modification of the Order or an exemption from 
the Order. Any petition filed challenging the Order, any provision of 
the Order or any obligation imposed in connection with the Order, shall 
be filed within two years after the effective date of the Order, 
provision or obligation subject to challenge in the petition. The 
petitioner will have the opportunity for a hearing on the petition. The 
Act provides that the district court of the United States for any 
district in which the petitioner resides or conducts business shall be 
the jurisdiction to review a final ruling on the petition, if the 
petitioner files a complaint for that purpose not later than 20 days 
after the date of the entry of the Secretary's final ruling.
    This rule has been determined not significant for purposes of 
Executive Order 12866 and therefore has not been reviewed by the Office 
of Management and Budget.
    In accordance with the Regulatory Flexibility Act (RFA) (5 U.S.C. 
601 et seq.), the Agency has examined the impact of the proposed rule 
on small entities. The purpose of the RFA is to

[[Page 35299]]

fit regulatory actions to the scale of businesses subject to such 
action so that small businesses will not be disproportionately 
burdened.
    There are approximately 25,000 producers and 57 handlers of peanuts 
who are subject to the program. Most producers would be classified as 
small businesses under the criteria established by the Small Business 
Administration (SBA) (13 CFR 121.201), and most of the handlers would 
not be classified as small businesses. The SBA defines small 
agricultural handlers as those whose annual receipts are less than $5 
million, and small agricultural producers are defined as those having 
annual receipts of not more than $500,000 annually.
    This rule would add a public member and alternate to the National 
Peanut Board (Board), add the authority for producers in minor peanut-
producing states to conduct nominations by mail ballot, make changes 
related to the addition of the public member, make changes for the 
purpose of clarification and consistency, and eliminate obsolete 
language.
    The information collection requirements, as discussed below, would 
be minimal. The addition of a public member and authorizing producers 
in minor peanut-producing states to conduct nominations for the at-
large member and at-large alternate members to the Board by mail ballot 
would not impose a significant economic burden on producers. In fact, 
allowing producers in minor peanut-producing states to use mail 
balloting is expected to facilitate greater participation in the 
nomination process, particularly in those states with a small number of 
producers who are not located in close proximity.
    USDA has not identified any relevant federal rules that duplicate, 
overlap, or conflict with this rule.
    Accordingly, the Administrator of AMS has determined that this 
proposed rule will not have a significant economic impact on a 
substantial number of small business entities.
    We have performed this Initial Regulatory Flexibility Analysis 
regarding the impact of this proposed rule on small entities, and 
invite comments from interested persons concerning the potential 
effects of the proposed rule on small entities.

Paperwork Reduction Act

    In accordance with OMB regulations (5 CFR part 1320) which 
implement the Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35), 
the background information form, which represents the information 
collection requirements that may be imposed by this rule, were 
submitted to OMB and have been approved under OMB control number 0505-
0001.
    Title: Advisory Committee Membership Background Information.
    OMB Number: 0505-0001.
    Expiration Date of Approval: July 31, 2002.
    Type of Request: Revision of a currently approved information 
collection for research and promotion programs.
    Abstract: The information collection requirements in this request 
are essential to carry out the terms of the proposed amendment. The 
burden associated with the background information form is as follows:
    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 0.50 hours per response for each 
nominee.
    Respondents: Public member and alternate nominees.
    Estimated Number of Respondents: 4.
    Estimated Number of Responses per Respondent: 1 every 3 years.
    Estimated Total Annual Burden on Respondents: 2 hours.
    The estimated annual cost of providing the information by an 
estimated two nominees for public member and two nominees for alternate 
public member would be a total annual cost of $20.00 or $5.00 per 
nominee.
    The additional burden of four respondents will be added to the 
information collections approved for use under OMB Number 0505-0001.
    Comments are invited on: (a) Whether the proposed collection of 
information is necessary and whether it will have practical utility; 
(b) the accuracy of USDA's estimate of the burden of the proposed 
collection of information, including the validity of the methodology 
and assumption used; (c) ways to enhance the quality, utility, and 
clarity of the information to be collected; and (d) ways to minimize 
the burden of the collection of information on those who are to 
respond, including the use of appropriate automated, electronic, 
mechanical, or other technological collection techniques or other forms 
of information technology.
    Comments concerning the information collection requirements 
contained in this action should reference OMB No. 0581-0001, the docket 
number, and the date and page number of this issue of the Federal 
Register. Comments should be sent to the USDA Docket Clerk and the OMB 
Desk Officer for Agriculture at the addresses and within the times 
frames specified above. All comments received will be available for 
public inspection during regular business hours at the same address. 
All responses to this notice will be summarized and included in the 
request for OMB approval.
    OMB is required to make a decision concerning the collection of 
information contained in this rule between 30 and 60 days after 
publication. Therefore, a comment to OMB is best assured of having its 
full effect if OMB receives it within 30 days of publication.
    The paperwork reduction requirements for the use of mail ballots 
within the minor peanut-producing states would not increase the burden 
previously submitted to and approved by OMB. Therefore, no additional 
burden will need approval concerning the proposed change of using mail 
ballots for nominations in minor peanut-producing states. The estimated 
annual cost of providing the information by an estimated number of 35 
respondents is $29.17 annually or $0.83 per respondent (35 respondents 
x  .25 hour = 8.75  x  $10.00 per hour = 87.50 dollars per hour/3 years 
= 29.17 dollars per year)

Background

    The Order became effective on July 30, 1999, after a national 
referendum among all peanut producers. Under the Order, peanut 
producers are assessed 1 percent of the total value of all farmers 
stock peanuts, which generates about $10 million in annual revenues. 
The program is administered by the National Peanut Board (Board) under 
USDA supervision. The initial Board held its first meeting in 
Washington, DC, in March 2000.
    The Board is composed of 10 members and 10 alternates, nominated by 
producers and appointed by the Secretary of Agriculture. There is one 
member and alternate for each of the nine primary peanut-producing 
states and one at-large member and alternate representing all other 
peanut-producing states.
    Currently, the nine major peanut-producing states are (in 
descending order) Georgia, Texas, Alabama, North Carolina, Florida, 
Virginia, Oklahoma, New Mexico, and South Carolina. The minor peanut-
producing states are Arizona, California, Louisiana, Mississippi, and 
Tennessee.
    This rule would add the authority for the addition of a public 
member and alternate public member to the Board, add the authority for 
producers in minor peanut-producing states to conduct nominations by 
mail ballot, make changes related to the addition of the public member, 
make changes for the purpose of clarification, and eliminate obsolete 
language as explained below.

[[Page 35300]]

    Section 1216.40(a) Establishment and membership would be amended to 
add the authority for a public member and alternate to be appointed by 
the Secretary from nominations submitted by the Board and to provide 
eligibility requirements for the public member and alternate.
    On December 15, 1999, the Secretary of Agriculture's Task Force 
(Task Force) on Research and Promotion Programs issued recommendations, 
which covered numerous areas relating to the operation of national 
commodity promotion boards supervised by USDA. One of the 
recommendations was that all national boards should have at least one 
public or consumer member. Subsequently, the North Carolina Farm Bureau 
and the National Farmers Union requested that USDA amend the Order to 
add a public member and alternate to the Board.
    Therefore, this rule would add a public member and alternate to the 
Board. The addition of the public member and alternate would carry out 
the recommendations of the Task Force. The goal of the public member 
position is to provide valuable feedback to the board in developing its 
consumer programs. The addition of a public member and alternate would 
also increase the opportunity for women, minorities, and persons with 
disabilities to serve on the Board. The section is rewritten to remove 
language concerning nominations. Such information appears in 
Sec. 1216.41.
    Section 1216.41(a) Nominations would be amended to authorize 
producers in minor peanut-producing states to conduct nominations for 
the at-large member and at-large alternate member of the Board by mail 
ballot. This amendment would help ensure greater participation in the 
nomination process, particularly in those states with a small number of 
producers who are not located in close proximity. The initial 
nomination meetings in Fall 1999 in the minor peanut-producing states 
for the at-large member and alternate member of the Board were not well 
attended. In addition, the producer associations in several of the 
minor peanut-producing states requested that they be allowed to conduct 
their nominations by mail ballot. Based on experience during the 
initial nominations process, the Department believes the option of 
conducting nominations by mail ballot in the minor peanut-producing 
states should be available to the producers in these states.
    Paragraph (b) of Sec. 1216.41 would be revised to eliminate 
obsolete language relating to the initial nominations to the Board and 
to correct a typographical error.
    In addition, a new paragraph (f) would be added to Sec. 1216.41 to 
require the Board to submit a minimum of two nominees for the public 
member position and a minimum of two nominees for the alternate member 
position by May 1 or such other date as required by the Secretary. 
Further, changes to Sec. 1216.41 are made for clarity and consistency 
of language.
    Also related to the proposed addition of a public member and 
alternate, a new sentence would be added at the end of Sec. 1216.42 
Selection which states that the Secretary shall select one public 
member and one alternate public member from all eligible nominations 
submitted by the Board.
    In addition, Sec. 1216.45 Alternate members would be amended to 
make the references to Board members more generic so that this 
provision would cover the public member and alternate as well as the 
producer members and alternates.
    Further, paragraph (b) of Sec. 1216.46 Procedure would be revised 
to provide that the public member has one vote with a zero value of 
production at Board meetings. This paragraph also would be revised to 
increase the minimum number of concurring votes for approval of a Board 
motion from five to six because the Board would have 11 rather than 10 
members. In addition, editorial changes were made for the purpose of 
clarity.
    All written comments received in response to this proposed rule by 
the date specified will be considered prior to finalizing this action.

List of Subjects in 7 CFR Part 1216

    Administrative practice and procedure, Advertising, Consumer 
Information, Marketing agreements, Peanut promotion, Reporting and 
recordkeeping requirements.

PART 1216--PEANUT PROMOTION, RESEARCH, AND INFORMATION ORDER

    For the reasons set forth in the preamble, 7 CFR part 1216 is 
proposed to be amended as follows:
    1. The authority citation for part 1216 continues to read as 
follows:

    Authority: 7 U.S.C. 7401-7425.

    2. Revise Sec. 1216.40(a) to read as follows:


Sec. 1216.40  Establishment and membership.

    (a) Establishment of a National Peanut Board. There is hereby 
established a National Peanut Board, hereinafter called the Board, 
composed of 10 peanut producers, one public member, and their 
alternates appointed by the Secretary as follows:
    (1) Ten producer members and alternates. One member and one 
alternate for each primary peanut-producing state and one at-large 
member and one at-large alternate representing, collectively, the minor 
peanut-producing states.
    (2) One public member and one alternate member. The public member 
and alternate member shall not represent an agricultural interest and 
shall not have a financial interest in, or be associated with the 
production, processing, financing, or marketing of peanuts except as a 
consumer, nor shall such members be a director, officer, or employee of 
any firm so engaged.
* * * * *
    3. Revise Sec. 1216.41 to read as follows:


Sec. 1216.41  Nominations.

    (a) All nominations authorized under Sec. 1216.40 shall be 
submitted to the Secretary by May 1 of the year in which the terms of 
office expire, or such other date as provided by the Secretary. A 
minimum of two nominees must be submitted for each vacancy.
    (b) Producer members and alternates representing the primary 
peanut-producing states shall be nominated by eligible peanut producer 
organizations within each state as certified pursuant to Sec. 1216.70. 
Each organization shall select nominees at an open meeting among peanut 
producers eligible to serve on the Board.
    (c) The at-large producer member and alternate representing minor 
peanut-producing states shall be nominated by eligible peanut producer 
organizations or other organizations that include peanut producers as 
part of their membership as certified pursuant to Sec. 1216.70. Each 
such organization may select nominees at an open meeting among peanut 
producers eligible to serve on the Board or by mail ballot. Any 
certified peanut producer organization representing a minor peanut-
producing state may nominate two eligible persons for each member and 
two eligible persons for each alternate member.
    (d) The Board shall make the nominations for the public member and 
alternate member.
    (e) The Board shall issue the call for nominations by March 1 of 
each year or such other date as provide by the Secretary.
    (f) The nomination meeting shall be announced 30 days in advance:
    (1) By utilizing available media or public information sources, 
without incurring advertising expense, to

[[Page 35301]]

publicize the dates, places, method of voting, eligibility 
requirements, and other pertinent information. Such sources of 
publicity may include, but are not limited to, print and radio; and
    (2) By such other means as deemed advisable.
    (g) At nominations meetings, Department personnel will be present 
to oversee and to verify eligibility and count ballots.
    4. Revise Sec. 1216.42 to read as follows:


Sec. 1216.42  Selection.

    From the nominations, the Secretary shall select the members of the 
Board and alternates for each primary peanut-producing state. The 
Secretary shall select one member and one alternate from all 
nominations submitted by certified peanut producer organizations or 
other organizations representing minor peanut-producing states. The 
Secretary shall select one public member and one alternate public 
member from nominations submitted by the Board.
    5. Revise Sec. 1216.45 to read as follows:


Sec. 1216.45  Alternate members.

    An alternate member of the Board, during the absence of the member 
shall act in the place and stead of such member and perform such duties 
as assigned. In the event of death, removal, resignation, or 
disqualification of any member, the alternate for that member shall act 
for the member until a successor for such member is selected and 
qualified. In the event that both the member and the alternate member 
are unable to attend a meeting, the Board may not designate any other 
alternate to serve in such member's or alternate's place and stead for 
such a meeting.
    6. Revise paragraph (b) of Sec. 1216.46 to read as follows:


Sec. 1216.46  Procedure.

* * * * *
    (b) At assembled meetings, all votes shall be cast in person. 
Producer member votes shall be weighted by value of production. The 
vote of producer members from primary peanut-producing states shall be 
weighted by the primary peanut-producing state's three-year running 
average of total gross farm income derived from all peanut sales. The 
at-large producer member's vote shall be weighted by the collective 
value of production from the three-year running average of total gross 
farm income derived from all peanut sales in all minor peanut-producing 
states. The public member shall have one vote. Any Board action shall 
require the concurring votes of members or alternates from states 
representing more than 50 percent of total U.S. gross farm income 
derived from all peanut sales, plus an additional two votes from any 
other Board members, provided a minimum of six votes concur.
* * * * *

    Dated: May 26, 2000.
Kathleen A. Merrigan,
Administrator, Agricultural Marketing Service.
[FR Doc. 00-13783 Filed 6-1-00; 8:45 am]
BILLING CODE 3410-02-P