[Federal Register Volume 67, Number 190 (Tuesday, October 1, 2002)]
[Rules and Regulations]
[Pages 61467-61468]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-24905]



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 Rules and Regulations
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  Federal Register / Vol. 67, No. 190 / Tuesday, October 1, 2002 / 
Rules and Regulations  

[[Page 61467]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 29

[Docket No. TB-02-14]
RIN 0581-AC11


Flue-Cured Tobacco Advisory Committee; Amendment of Regulations

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: The U.S. Department of Agriculture (USDA) is amending the 
regulations for the Flue-Cured Tobacco Advisory Committee (FCTAC) by 
removing the sections which specify composition of the committee. This 
will allow greater flexibility in responding to changing marketing 
conditions.

DATES: Effective October 2, 2002. Comments are due before December 2, 
2002.

ADDRESSES: Send comments to John P. Duncan III, Deputy Administrator, 
Tobacco Programs, Agricultural Marketing Service (AMS), United States 
Department of Agriculture (USDA), STOP 0280, 1400 Independence Avenue, 
SW., Washington, DC 20250-0280. Comments will be available for public 
inspection at this location during regular business hours between 8 am 
and 4:30 pm, Monday through Friday, except holidays.

FOR FURTHER INFORMATION CONTACT: John P. Duncan III, Deputy 
Administrator, Tobacco Programs, AMS, USDA, STOP 0280, 1400 
Independence Avenue, SW., Washington, DC 20250-0280; telephone number 
(202) 205-0567.

SUPPLEMENTARY INFORMATION: Since 1935, upon enactment of the Tobacco 
Inspection Act, the USDA has provided mandatory inspection services at 
designated tobacco auction markets. In 2002, based on results of 
referenda conducted among producers eligible for price support, 
regulations were amended to provide mandatory inspection at places 
other than designated tobacco auction markets. The USDA has always 
sought the input of the industry in implementing legislative authority 
concerning marketing due to the large geographic areas involved and the 
different procedure in individual types of tobacco such as size and 
weight of packages used to display the product, the number of 
designated markets, the number of sets of buyers present, the number of 
sales days, and other matters that directly impact on the operation of 
the auction markets and, therefore, the Federal presence necessary to 
provide the level of service desired by producers and industry.
    In 1974, at the request of the industry, the USDA established the 
Flue-Cured Tobacco Advisory Committee (FCTAC) to provide a mechanism 
for consultation with flue-cured producers, warehouse representatives, 
and buying interests on the problems peculiar to that type of tobacco 
with particular emphasis on the grower designation program. The 
composition of the committee was specified in regulations although it 
was not necessary and is not customary. At a recent meeting, the FCTAC 
recommended that the regulations referencing its composition and 
representation be removed. Removal of these regulations will not alter 
the FCTAC's purpose nor direction for an orderly marketing of tobacco 
but will allow the USDA more flexibility in making structural changes 
in its composition as a result of new marketing changes. Historically, 
almost all flue-cured tobacco was sold at auction. In recent years, 
most flue-cured tobacco has been sold under contract.
    The USDA intends to decrease the FCTAC from 39 members, each with 
an alternate, to 21 members, each with an alternate. The entities 
currently represented on the FCTAC will not change. The Flue-Cured 
Stabilization Cooperation will be added with one member. The rest of 
the apportionment will change as follows: Georgia, South Carolina, and 
Virginia Farm Bureaus will decrease from two members each to one member 
each; North Carolina Farm Bureau will decrease from eight members to 
four members; North Carolina State Grange will decrease from four 
members to two members; Tobacco Association of United States will 
decrease from five members to four members; Bright Belt Warehouse 
Association will decrease from 10 members to one member; Florida Farm 
Bureau, South Carolina State Grange, Tobacco Growers Association of 
North Carolina, Philip Morris USA, R. J. Reynolds Tobacco Company, and 
Lorillard Tobacco Company will all remain unchanged with one member 
each.
    There are currently regulations at 7 CFR subpart G, Sec. Sec.  
29.9401-29.9407 covering the FCTAC. Section 29.9403 (b), (c), (d), and 
(e) would be removed.

Executive Order 12866 and 12988

    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 12988, Civil 
Justice Reform. This action is not intended to have retroactive effect. 
The rule will not exempt any State of 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.

Regulatory Flexibility Act

    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 121.201) as those 
having annual receipts of less than $750,000, 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 450,000 tobacco producers and most warehouses and 
producers may be classified as small entities. The AMS has determined 
that this action will not have a significant economic impact on a 
substantial number of small entities. This interim final rule would not 
substantially affect the normal movement of the commodity into the 
marketplace. Compliance with this

[[Page 61468]]

interim final rule would not impose substantial direct economic cost, 
recordkeeping, or personnel workload changes on small entities, and 
would not alter the market share of competitive positions of small 
entities relative to the large entities and would in no way affect 
normal competition in the marketplace. This rule merely removes section 
of the regulations that specify composition of the FCTAC.
    Pursuant to 5 U.S.C. 553, it is also found and determined upon good 
cause that it is impracticable, unnecessary and customary to the public 
interest to give preliminary notice prior to putting this rule in 
effect, and that good cause exists for not postponing the effective 
date of this rule until 60 days after publication in the Federal 
Register so that USDA can utilize the advice of a committee which 
reflects the current makeup of the tobacco industry during the current 
marketing season. This interim final rule provides a 60-day comment 
period, and all comments timely received will be considered prior to 
the finalization of this rule.

List of Subjects in 7 CFR Part 29

    Administrative practice and procedure, Advisory committees, 
Government publications, Imports, Pesticides and pests, Reporting and 
recordkeeping procedures, Tobacco.

    For the reasons set forth in the preamble, the regulations at 7 CFR 
part 29 are amended as follows:

PART 29--TOBACCO INSPECTION

Subpart G--Policy Statement and Regulations Governing Availability 
of Tobacco Inspection and Price Support Services to Flue-Cured 
Tobacco on Designated Markets

    1. The authority citation for part 29, subpart G continues to read 
as follows:

    Authority: Tobacco Inspection Act, 49 Stat. 731 (7 U.S.C. et 
seq.); Commodity Credit Corporation Charter Act, 62 Stat. 1070, as 
amended (15 U.S.C. 714 et seq.); sec. 213, Pub. L. 98-180, 97 Stat. 
1149 (7 U.S.C. 1421; 49 Stat. 731 (7 U.S.C. 511 et seq.), unless 
otherwise noted.

Sec.  29.9403  [Amended]

    2. In Sec.  29.9403, paragraphs (b), (c), (d), (e) and paragraph 
designation ``(a)'' are removed.

    Dated: September 25, 2002.
A.J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 02-24905 Filed 9-30-02; 8:45 am]
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