[Federal Register Volume 66, Number 112 (Monday, June 11, 2001)]
[Proposed Rules]
[Pages 31185-31186]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-14539]


 ========================================================================
 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. 66, No. 112 / Monday, June 11, 2001 / 
Proposed Rules  

[[Page 31185]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1030

[Docket No. AO-361-A35; DA-01-03]


Milk in the Upper Midwest Marketing Area; Notice of Hearing on 
Proposed Amendments to Tentative Marketing Agreements and Orders

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule; Notice of public hearing on proposed rulemaking.

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

SUMMARY: A public hearing is being held to consider proposals that 
would prevent the pooling of milk on the Upper Midwest Federal milk 
marketing order that is already pooled on a State milk marketing order 
that has marketwide pooling. Additionally, a proposal that would 
provide for separate pooling provisions for milk from areas outside of 
the states comprising the Upper Midwest order will also be considered. 
A proposal to change the advance payment to dairy farmers by milk 
handlers for milk delivered during the first half of the month will 
also be considered. Proponents have requested that this issue be 
handled on an emergency basis.

DATES: The hearing will convene at 9:00 a.m. on Tuesday, June 26, 2001.

ADDRESSES: The hearing will be held at the Radisson Hotel South & Plaza 
Tower, 7800 Normandale Blvd., Bloomington, Minnesota 55439, (952) 835-
7800.

FOR FURTHER INFORMATION CONTACT: Gino Tosi, Marketing Specialist, Order 
Formulation Branch, USDA/AMS/Dairy Programs, Room 2967, South Building, 
P.O. Box 96456, Washington, DC 20090-6456, (202) 690-1366, e-mail 
address [email protected].
    Persons requiring a sign language interpreter or other special 
accommodations should contact Paul Kyburz at (952)-831-5292; e-mail: 
[email protected] before the hearing begins.

SUPPLEMENTARY INFORMATION: This administrative action is governed by 
the provisions of sections 556 and 557 of Title 5 of the United States 
Code and, therefore, is excluded from the requirements of Executive 
Order 12866.
    Notice is hereby given of a public hearing to be held at the 
Radisson Hotel South & Plaza Tower, 7800 Normandale Blvd., Bloomington, 
Minnesota, 55439, beginning at 9:00 a.m., on Tuesday, June 26, 2001, 
with respect to proposed amendments to the tentative marketing 
agreement and to the order regulating the handling of milk in the Upper 
Midwest marketing area.
    The hearing is called pursuant to the provisions of the 
Agricultural Marketing Agreement Act of 1937, as amended (7 U.S.C. 601-
674), and the applicable rules of practice and procedure governing the 
formulation of marketing agreements and marketing orders (7 CFR part 
900).
    The purpose of the hearing is to receive evidence with respect to 
the economic and marketing conditions which relate to the proposed 
amendments, hereinafter set forth, and any appropriate modifications 
thereof, to the tentative marketing agreement and to the order.
    Evidence also will be taken to determine whether emergency 
marketing conditions exist that would warrant omission of a recommended 
decision under the rules of practice and procedure (7 CFR 900.12(d)) 
with respect to the proposed amendments.
    Actions under the Federal milk order program are subject to the 
Regulatory Flexibility Act (5 U.S.C. 601 et seq.). This Act seeks to 
ensure that, within the statutory authority of a program, the 
regulatory and informational requirements are tailored to the size and 
nature of small businesses. For the purpose of the Act, a dairy farm is 
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. Most parties subject to a milk order 
are considered as a small business. Accordingly, interested parties are 
invited to present evidence on the probable regulatory and 
informational impact of the hearing proposals on small businesses. 
Also, parties may suggest modifications of these proposals for the 
purpose of tailoring their applicability to small businesses.
    The amendments to the rules proposed herein have been reviewed 
under Executive Order 12988, Civil Justice Reform. They are not 
intended to have a retroactive effect. If adopted, the proposed 
amendments would not preempt any state or local laws, regulations, or 
policies, unless they present an irreconcilable conflict with this 
rule.
    The Agricultural Marketing Agreement Act provides that 
administrative proceedings must be exhausted before parties may file 
suit in court. Under section 8c(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 the 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.
    Interested parties who wish to introduce exhibits should provide 
the Presiding Officer at the hearing with 3 copies of such exhibits for 
the Official Record. Also, it would be helpful if additional copies are 
available for the use of other participants at the hearing.

List of Subjects in 7 CFR Part 1030

    Milk marketing orders.

PART 1030--[AMENDED]

    The authority citation for 7 CFR part 1030 continues to read as 
follows:

    Authority: 7 U.S.C. 601-674.

    The proposed amendments, as set forth below, have not received the 
approval of the Secretary of Agriculture.

[[Page 31186]]

Submitted by: Associated Milk Producers, Inc. et.al., First 
District Association, and Lakeshore Federated Dairy Cooperative

Proposal No. 1

    1. Amend Sec. 1030.12 by adding a new paragraph (b)(5) to read as 
follows:


Sec. 1030.12  Producer

* * * * *
    (b) * * *
Notice of Hearing--Upper Midwest Marketing Area--DA-01-03
    (5) A dairy farmer whose milk is pooled on a state order with a 
marketwide pool.

Submitted by: Land O'Lakes, Inc.

Proposal No. 2

    Proposes that California milk previously qualified for pooling on 
the Upper Midwest Order be ``grandfathered'' or exempt from any change 
in the marketing order that would provide for its exclusion.

Proposal No. 3

    Proposes that quota milk from California be excluded from being 
pooled on the Upper Midwest Order.

Submitted by: Dairy Farmers of America

Proposal No. 4

    1. Amend Sec. 1030.13 by designating paragraph (d)(3) as (d)(4); 
adding a new paragraph (d)(3); and adding a new paragraph (e) to read 
as follows:


Sec. 1030.13  Producer Milk

* * * * *
    (d) * * *
    (3) The quantity of milk diverted to nonpool plants by a pool plant 
operator as described in Sec. 1030.7(a) or (b) may not exceed 90 
percent of each reporting unit of the handler's receipts made pursuant 
to Sec. 1030.30(a). This percentage is subject to adjustments that may 
be made pursuant to Sec. 1030.7(g).
    (e) Milk from producers physically located outside of the states of 
Illinois, Iowa, Minnesota, North Dakota, South Dakota, Wisconsin and 
the Upper Peninsula portion of Michigan shall be grouped by individual 
state units and each state unit shall be:
    (1) Reported on separate report(s) pursuant to Sec. 1030.30; and
    (2) At least 10 percent of each reporting unit of the handler shall 
be delivered to pool plants as described in Sec. 1030.7(a) or (b), and 
such deliveries shall not be used by the handler in meeting the minimum 
shipping percentages required pursuant to Sec. 1030.7(c) or (f) or 
Sec. 1030.13(d); and
    (3) The percentages of Sec. 1030.13(e)(2) are subject to any 
adjustments that may be made pursuant to Sec. 1030.7(g).

Proposal No. 5

    Proposes that the rate for advance payments be set at a percentage 
of the prior month's lowest class price, expected to be between 103 and 
108 percent; or the rate for advance payment be set between 93 and 96 
percent of the Class I price mover for the month.

Proposed by Dairy Programs, Agricultural Marketing Service:

Proposal No. 6

    Make such changes as may be necessary to make the entire marketing 
agreement and the order conform with any amendments thereto that may 
result from this hearing.
    Copies of this notice of hearing and the order may be procured from 
the Market Administrator of the Upper Midwest Milk Marketing Area, or 
from the Hearing Clerk, Room 1083, South Building, United States 
Department of Agriculture, Washington, DC 20250, or may be inspected 
there.
    Copies of the transcript of testimony taken at the hearing will not 
be available for distribution through the Hearing Clerk's Office. If 
you wish to purchase a copy, arrangements may be made with the reporter 
at the hearing.
    From the time that a hearing notice is issued and until the 
issuance of a final decision in a proceeding, Department employees 
involved in the decision-making process are prohibited from discussing 
the merits of the hearing issues on an ex parte basis with any person 
having an interest in the proceeding. For this particular proceeding, 
the prohibition applies to employees in the following organizational 
units:

Office of the Secretary of Agriculture
Office of the Administrator, Agricultural Marketing Service
Office of the General Counsel
Dairy Programs, Agricultural Marketing Service (Washington office) and 
the Office of the Market Administrator for the Upper Midwest Milk 
Marketing Area.

    Procedural matters are not subject to the above prohibition and may 
be discussed at any time.

    Dated: June 5, 2001.
Kenneth C. Clayton,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 01-14539 Filed 6-8-01; 8:45 am]
BILLING CODE 3410-02-P