[Federal Register Volume 65, Number 152 (Monday, August 7, 2000)]
[Proposed Rules]
[Page 48185]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-19915]


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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. 152 / Monday, August 7, 2000 / 
Proposed Rules  

[[Page 48185]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 46 and 47

[Docket No. FV99-362]
RIN 0581-AB76


Perishable Agricultural Commodities Act: Increase in License and 
Complaint Filing Fees

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule: withdrawal.

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SUMMARY: The Department of Agriculture (USDA) is withdrawing a proposed 
rule published in the Federal Register on February 15, 2000 (65 FR 
7462). The proposed rule would have amended the regulations under the 
Perishable Agricultural Commodities Act (PACA or Act) to increase 
license fees and the PACA Rules of Practice Other than Formal 
Disciplinary Proceedings to increase complaint filing fees in 
reparation actions. Specifically, the annual license fee would have 
been increased from $550 to $600 for very small businesses, and 
increased from $550 to $850 for all other licensees. The informal 
complaint filing fee would have been increased from $60 to $100.

DATES: This proposed rule is withdrawn as of August 14, 2000.

ADDRESSES: The complete file for this notice is available for public 
inspection by appointment during normal business hours at USDA, 1400 
Independence Avenue, SW, Room 2095--So. Bldg., Washington, D.C. 20250.

FOR FURTHER INFORMATION CONTACT: Charles W. Parrott, Acting Chief, PACA 
Branch, Fruit and Vegetable Programs, AMS, USDA, Room 2095--So. Bldg., 
P.O. Box 96456, Washington, D.C. 20090-6456, phone (202) 720-2272. 
E-mail [email protected].

SUPPLEMENTARY INFORMATION: The Perishable Agricultural Commodities Act 
(PACA or Act) establishes a code of fair trade practices covering the 
marketing of fresh and frozen fruits and vegetables in interstate and 
foreign commerce. The PACA protects growers, shippers, distributors, 
and retailers dealing in those commodities by prohibiting unfair and 
fraudulent trade practices. In this way, the law fosters an efficient 
nationwide distribution system for fresh and frozen fruits and 
vegetables, benefiting the whole marketing chain from farmer to 
consumer. USDA's Agricultural Marketing Service (AMS) administers and 
enforces the PACA.
    Historically, the PACA program has been funded through license fees 
and fees for filing reparation complaints. The PACA Amendments of 1995 
(1995 Amendments) \1\ increased the annual license from $400 to $550 
(up to a maximum fee of $4000) for all licensees except retailers and 
grocery wholesalers, which were phased out of paying license fees over 
a 3-year period that concluded on November 14, 1998. Retailers account 
for approximately 30 percent of all PACA licensees, and provided about 
35 percent of the program's revenue prior to being phased out of the 
license fee requirement. Funds acquired in excess of operating costs 
are maintained by AMS exclusively for the program's use, without fiscal 
year limitations, in a separate reserve fund. This reserve is used to 
offset unanticipated expenses, and provide flexibility to deal with 
rising program costs.
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    \1\ Pub. L. 104-48, 109 Stat. 427 (1995).
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    The 1995 Amendments authorize the Secretary of Agriculture to 
increase fees to operate the PACA program after November 14, 1998, 
through rulemaking, provided that the PACA program's financial reserves 
fall below 25 percent of the projected annual program costs. USDA 
proposed that license and complaint filing fees be increased when PACA 
program budget projections for fiscal years 2000 and 2001 showed that 
the program's assets would have fallen below the required 25 percent of 
projected expenditures in fiscal year 2001. Without a fee increase, the 
PACA program would have exhausted its reserves by the end of fiscal 
year 2003, and would have needed to begin reducing its level of 
services to the industry. In response, AMS proposed, on February 15, 
2000, to increase license fees and fees charged for filing reparation 
complaints.
    On June 20, 2000, however, President Clinton signed H.R. 2559 
(Public Law 106-224), which included $30.45 million to be deposited 
into USDA's PACA reserve fund in fiscal year 2001, in order to maintain 
PACA license and complaint filing fees at current levels. In light of 
the funds provided to the PACA program by P.L. 106-224, USDA has 
concluded that it is unnecessary to continue this rulemaking. 
Therefore, USDA withdraws the proposed rule.

    Authority: 7 U.S.C. 499a-499t.

    Dated: August 2, 2000.
Robert C. Keeney,
Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 00-19915 Filed 8-4-00; 8:45 am]
BILLING CODE 3410-02-P