[Federal Register Volume 68, Number 78 (Wednesday, April 23, 2003)]
[Proposed Rules]
[Pages 20062-20067]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-10050]



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Part III





Department of Agriculture





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Foreign Agricultural Service



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7 CFR Part 1580



Trade Adjustment Assistance for Farmers; Proposed Rule

  Federal Register / Vol. 68, No. 78 / Wednesday, April 23, 2003 / 
Proposed Rule  

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DEPARTMENT OF AGRICULTURE

Foreign Agricultural Service

7 CFR Part 1580

RIN 0551-AA66


Trade Adjustment Assistance for Farmers

AGENCY: Foreign Agricultural Service.

ACTION: Proposed rule.

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SUMMARY: This proposed rule would implement Chapter 6 of Title II of 
the Trade Act of 1974, as amended by Subtitle C of Title 1 of the Trade 
Act of 2002 (Pub. L. 107-210) to establish a new program, Trade 
Adjustment Assistance for Farmers. Under this program, the Department 
of Agriculture would provide technical assistance and cash benefits to 
eligible producers of raw agricultural commodities when the 
Administrator, Foreign Agricultural Service (FAS) determines that 
increased imports have contributed importantly to a specific price 
decline over five preceding marketing years. The proposed rule would 
establish the procedure by which producers of raw agricultural 
commodities can petition for certification of eligibility and apply for 
technical assistance and adjustment payments.

DATES: Comments should be received on or before May 23, 2003, to be 
assured of consideration.

ADDRESSES: Comments should be mailed or delivered to Jean-Louis Pajot, 
Import Policies and Programs Division, Foreign Agricultural Service, 
1400 Independence Avenue, SW., STOP 1021, U.S. Department of 
Agriculture, Washington, DC 20250-1021. Comments may also be e-mailed 
to [email protected]. Comments received may be inspected 
between 10 a.m. and 4 p.m. at room 5541-S, 1400 Independence Avenue, 
SW., Washington, DC 20250-1021.

FOR FURTHER INFORMATION CONTACT: Jean-Louis Pajot at the address above, 
or telephone at (202) 720-2916, or e-mail at [email protected].

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    The proposed rule has been determined to be significant under E.O. 
12866 and has been reviewed by the Office of Management and Budget.

Regulatory Flexibility Act

    The Regulatory Flexibility Act ensures that regulatory and 
information requirements are tailored to the size and nature of small 
businesses, small organizations, and small governmental jurisdictions. 
This proposed rule will not have a significant economic impact on a 
substantial number of small farm operations. Participation in the 
program is voluntary. Direct and indirect costs are likely to be very 
small as a percentage of revenue and in terms of absolute costs. The 
minimal regulatory requirements impact large and small businesses 
equally, and the program's benefits should improve cash flow and 
liquidity for farmers participating in the program.

Paperwork Reduction Act

    Summary: In accordance with the Paperwork Reduction Act of 1995, 
the Department intends to request approval by the Office of Management 
and Budget (OMB) of an information collection required to support the 
proposed rule establishing an adjustment assistance program for 
farmers. Copies of the information collection may be obtained from 
Kimberly Chisley, the Agency Information Collection Coordinator, at 
(202) 720-2568 or e-mail at [email protected].
    To obtain program benefits, under this program, a group of raw 
agricultural commodity producers, or their duly authorized 
representative, must submit a petition to the Administrator for 
certification of eligibility to apply for adjustment assistance. The 
proposed rule contains an information collection that solicits data 
that is essential for the Administrator in making a determination on 
certification of eligibility for adjustment assistance. The information 
collection requires, to the maximum extent feasible, that a petition 
contain: A description of the raw agricultural product concerned; data 
on specific prices for the most recent marketing year; national average 
or regional prices for the commodity for the five preceding marketing 
years; data on increases in imports of a directly competing commodity; 
and an assessment of the impact of increased imports on domestic 
prices, including any supporting evidence that imports contributed 
importantly to a decline in domestic prices. Within 90 days after 
certification, a producer may submit an application for adjustment 
assistance benefits. The application contains an information collection 
that conforms to the requirements of section 296 regarding conditions 
that must be met to qualify for cash benefits. The application requires 
submission of: Standard business information; the quantity of 
production in the year covered by the certification accompanied by 
supporting documentation; data on gross income and net farm income 
accompanied by supporting documentation; certification that an 
applicant has not received other cash benefits; and certification that 
an applicant has obtained information and technical assistance from the 
Extension Service to assist the applicant in adjusting to import 
competition.
    Estimate of the Burden: The average estimated public reporting 
burden is 14 hours.
    Respondents: Groups of farmers of raw agricultural commodities or 
their duly authorized representatives.
    Estimated annual number of respondents: 500.
    Estimated Number of Responses per Respondent: 1.
    Estimated Total Annual Burden on Respondents: 7,000 hours.
    Copies of the information collection can be obtained from Kimberly 
Chisley, the Agency Collection Coordinator, at (202) 720-2568.
    Requests for comments: Comments are invited on: (a) Whether the 
proposed collection of information is necessary for the proper 
performance of the functions of the agency, including whether the 
information will have practical utility; (b) the accuracy of the 
agency's estimate of the burden of the proposed collection of 
information; (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 
through the use of automated, electronic, mechanical, or other 
technological collection techniques or other forms of information 
technology, or any other aspect of this collection of information. 
Comments on issues covered by the Paperwork Reduction Act must be 
submitted within 30 days of publication to be assured of consideration. 
Comments may be sent to Jean-Louis Pajot, Import Policies and Program 
Division, FAS, 1400 Independence Avenue, Stop 1021, SW., Washington, DC 
20520-1021. All responses to this notice will be summarized and 
included in the request for OMB approval. All comments will also be a 
matter of public record. Persons with disabilities who require an 
alternative means for communication of information (Braille, large 
print, audiotape, etc.) should contact the USDA Target Center at (202) 
720-2600 (voice and TDD).
    FAS is committed to compliance with the Government Paperwork 
Elimination Act (GPEA), which requires Government agencies, in general, 
to provide the public the option of submitting information or 
transacting business

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electronically to maximum extent possible. Electronic submission of the 
information collection will be implemented before October 2003 in 
compliance with the GPEA. The Department will request OMB approval of 
forms that are being developed for electronic submission of the 
information collection, and issue a Federal Register notice soliciting 
public comments on the requested revision of the information collection 
to provide for submission of the information collection on electronic 
forms. All public comments received will be considered prior to 
implementation of an electronic reporting system, and will also become 
a matter of public record. Copies of that information collection will 
be made available from Kimberly Chisley, the Agency Information 
Collection Coordinator, at (202) 720-2568 or e-mail at 
[email protected].

Executive Order 12988

    This proposed rule has been reviewed under Executive Order 12988. 
The provisions of this proposed rule would not have preemptive effect 
with respect to any State or local laws, regulations, or policies which 
conflict with such provision or which otherwise impede their full 
implementation. The proposed rule would not have retroactive effect. 
Before any judicial action may be brought regarding this rule, all 
administrative remedies must be exhausted.

National Environmental Policy Act

    The Administrator has determined that this action will not have a 
significant effect on the quality of the human environment. Therefore, 
neither an Environmental Assessment nor an Environmental Impact 
Statement is necessary for this proposed rule.

Executive Orders 12372, 13083 and 13084, and the Unfunded Mandates 
Reform Act (Pub. L. 104-4)

    These Executive Orders and Pub. L. 104-4 require consultation with 
State and local officials and Indian tribal governments. This proposed 
rule does not impose an unfunded mandate or any other requirement on 
State, local or tribal governments. Accordingly, these programs are not 
subject to the provisions of Executive Order 12372, Executive Order 
13083, and Executive Order 13084, or the Unfunded Mandates Reform Act.

Executive Order 12630

    This Order requires careful evaluation of governmental actions that 
interfere with constitutionally protected property rights. This 
proposed rule would not interfere with any property rights and, 
therefore, does not need to be evaluated on the basis of the criteria 
outlined in Executive Order 12630.

Background

    The Trade Act of 2002 (Pub. L. 107-210) amended the Trade Act of 
1974 (19 U.S.C. 2551, et seq.) to add a new chapter 6, which 
establishes a program of trade adjustment assistance for farmers, 
providing both technical assistance and cash benefits to producers. The 
statute authorizes an appropriation of not more than $90 million for 
each fiscal year 2003 through 2007 to carry out the program.
    Under this proposed rule, a group of agricultural commodity 
producers may petition the Administrator of the Foreign Agricultural 
Service (FAS) for trade adjustment assistance from mid-August through 
the end of January. FAS will first review the petition for 
appropriateness, completeness, and timeliness, before publishing a 
notice in the Federal Register that it has been received. The Economic 
Research Service (ERS) will then conduct a market study to verify the 
decline in producer prices, and to assess possible causes, taking due 
account of any special factors which may have affected prices of the 
articles concerned, including imports, exports, production, changes in 
consumer preferences, weather conditions, diseases, and other relevant 
issues. ERS will report its findings to the FAS Administrator, who will 
then determine whether or not the group is eligible for trade 
adjustment assistance. If the national average price in the most recent 
marketing year for the commodity produced by the group is equal to or 
less than 80 percent of the average of the national average prices in 
the preceding 5 marketing years and that increases in imports of that 
commodity contributed importantly to the decline in price, the 
Administrator will certify the group as eligible for trade adjustment 
assistance.
    Upon certification, producers have 90 days to contact the Farm 
Service Agency (FSA) to apply for assistance. As soon as they apply, 
they are eligible to receive at no cost a technical assistance package 
specifically tailored for their needs by the Extension Service. 
Depending on the commodity and the region, the Extension Service 
package may include technical publications in print or on-line, group 
seminars and presentations, and one-on-one meetings. Producers, who 
receive the technical assistance and also satisfy personal and farm 
income limits, are eligible for TAA payments. If the funding authorized 
by Congress is insufficient to pay 100 percent of all TAA claims during 
the fiscal year, payments will be prorated and issued after June 15, 
the last possible date for producers to file a TAA application.
    Producers may petition for adjustment assistance in subsequent 
years. Petitions will be reviewed and approved if prices remain at or 
below the same 80 percent threshold as the initial year of adjustment 
assistance, and if imports have continued to increase and contributed 
importantly to the decline in prices.
    The Department invites comments on all aspects of the proposed rule 
including: Eligibility requirements, including the coverage of 
aquaculture; unintended market consequences of the program to 
producers, importers, buyers and consumers; timing and prorating of 
adjustment payments when funding may be insufficient; petitions on 
behalf of producers within regions of the United States; marketing 
periods of less than 12 months; and less restrictive alternatives to 
the proposed rule that would address the intent of the program.

List of Subjects in 7 CFR Part 1580

    Agricultural commodities, Imports, Reporting and recordkeeping 
requirements, Trade adjustment assistance.

Proposed Rule

    Accordingly, it is proposed to amend title 7 of the Code of Federal 
Regulations by adding a new part 1580, to read as follows:

PART 1580--TRADE ADJUSTMENT ASSISTANCE FOR FARMERS

Sec.
1580.101 General statement.
1580.102 Definitions.
1580.201 Petitions for trade adjustment assistance.
1580.202 Hearings, petition reviews, and amendments.
1580.203 Determination of eligibility and certification by the 
Administrator.
1580.301 Application for adjustment assistance.
1580.302 Technical assistance and services.
1580.303 Adjustment assistance payments.
1580.401 Subsequent qualifying year eligibility.
1580.501 Administration.
1580.502 Maintenance of records, audits and compliance.
1580.503 Debarment and suspension.
1580.504 Fraud and recovery of overpayments.
1580.505 Appeals.
1580.601 Implementation.
1580.602 Paperwork Reduction Act assigned number.

    Authority: 19 Sec. U.S.C. 2401.

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Sec.  1580.101  General statement.

    This part provides regulations for the Trade Adjustment Assistance 
for Farmers program. Under these provisions, producers of agricultural 
commodities may petition the Department of Agriculture for eligibility 
to apply for trade adjustment assistance based on criteria set forth in 
the Trade Act of 1974, as amended by the Trade Act of 2002 (19 U.S.C. 
2251, et seq.). If the Administrator determines that the national 
average price for a commodity is less than 80 percent of the preceding 
5-year average and that an increase in imports has contributed 
importantly to the decline in commodity prices, the producers may apply 
for technical assistance and cash benefits under the program.


Sec.  1580.102  Definitions.

    As used in the part, the following terms mean:
    Adjusted gross income means income as defined in 7 CFR 1400.601.
    Administrator means the Administrator of the Foreign Agricultural 
Service (FAS).
    Agricultural commodity means any commodity in its raw or natural 
state found in chapters 1, 4, 5, 6, 7, 8, 10, 12, 14, 23, 24, 41, 51, 
and 52 of the Harmonized Tariff Schedule of the United States (HTS), 
and chapter 3 of the HTS with respect to aquaculture products.
    Articles like or directly competitive generally means products 
falling under the same HTS number used to identify the agricultural 
commodity in the petition. A like product means substantially identical 
in inherent or intrinsic characteristics, and the term directly 
competitive means those articles which are substantially equivalent for 
commercial purposes, that is, are adapted to the same uses and are 
essentially interchangeable therefore.
    Authorized representative means an association of agricultural 
commodity producers.
    Certification date means the date on which the Administrator 
announces in the Federal Register or by Department news release, 
whichever comes first, a certification of eligibility to apply for 
adjustment assistance.
    Contributed importantly means a cause which is important, but not 
necessarily more important than any other cause.
    Department means the U.S. Department of Agriculture.
    Deputy Administrator means the Deputy Administrator of the Farm 
Service Agency (FSA).
    Extension Service means the Cooperative State Research, Education, 
and Extension Service of the U.S. Department of Agriculture.
    Family member means an individual to whom a person is related as 
spouse, lineal ancestor, lineal descendent, or sibling, including:

(1) Great grandparent;
(2) Grandparent;
(3) Parent;
(4) Child, including legally adopted children;
(5) Great grandchildren;
(6) Sibling of the family member in the farming operation; and
(7) Spouse of a person listed in paragraphs (1) through (6) of this 
definition.

    Farm Service Agency (FSA) means the Farm Service Agency of the U.S. 
Department of Agriculture.
    Filing date means the date that a notice of petition is published 
in the Federal Register.
    Group of producers means three or more producers who are not 
members of the same family.
    Impacted area means one or more States of the United States.
    Marketing year means the marketing season or year as defined by 
National Agriculture Statistic Service (NASS), or a specific period as 
proposed by the petitioners and certified by the Administrator.
    National average price means the average price paid to producers 
for an agricultural commodity in a marketing year as determined by the 
Administrator.
    Net farm income means net farm profit or loss reported on Internal 
Revenue Service Schedule F (Form 1040) and Form 4835 for the year that 
most closely corresponds with the marketing year under consideration.
    Person means an individual, partnership, joint stock owner, 
corporation, association, trust, estate, or any other legal entity as 
defined in 7 CFR 1400.3.
    Producer means a person who is an owner, operator, landlord, 
tenant, or sharecropper, who shares in the risk of producing a crop and 
who is entitled to share in the crop available for marketing from the 
farm.
    Raw or natural state means unaltered by any process other than 
cleaning, grading, coating, sorting, trimming, mixing, conditioning, 
drying, dehulling, shelling, chilling, cooling, blanching or 
fumigating.
    United States means the 50 States of the United States, the 
District of Columbia, and Puerto Rico.


Sec.  1580.201  Petitions for trade adjustment assistance.

    (a) A group of agricultural commodity producers in the United 
States or their authorized representative may file a petition for trade 
adjustment assistance.
    (b) Filings may be written or electronic, as provided for by the 
Administrator, and submitted to FAS from August 17 through January 31. 
FAS shall not accept a petition received after January 31 but will 
return it to the sender. If January 31 falls on a weekend, the petition 
will be accepted the next business day.
    (c) Petitions shall include the following information.
    (1) Name, business address, phone number, and email address (if 
available) of each producer in the group, or their authorized 
representative. A petition filed by a group shall identify a contact 
person for the group.
    (2) The agricultural commodity and its Harmonized Tariff Schedule 
of the United States (HTS) number.
    (3) The production area represented by the group or its authorized 
representative. The petitioners shall indicate if they are filing on 
behalf of all producers in the United States, or if they are filing 
solely on behalf of producers in a specifically identified impacted 
area. In the latter case, at least one member of the group must reside 
in each State within the impacted area, or the authorized 
representative must have members residing in each State within the 
impacted area.
    (4) The beginning and ending dates for the marketing year during 
which domestic prices were affected by imports. A petition may be filed 
for only the most recent marketing year for which national average 
prices are available.
    (5) A justification statement explaining why the petitioners should 
be considered eligible for adjustment assistance.
    (6) Price data supporting the petition.
    (i) If the petition is filed on behalf of all producers of the 
agricultural commodity in the United States, the Administrator shall 
use national average prices compiled by the National Agricultural 
Statistics Service (NASS), whenever possible. If NASS does not compile 
price data for the commodity, the petitioners shall provide national 
average prices for the marketing year under review and for the previous 
five marketing years, and identify the source of the price series.
    (ii) If the petition is filed on behalf of producers in a 
specifically identified impacted area, the petitioners shall provide 
national average prices for the impacted area for the marketing year 
under review and for the previous five marketing years, and identify 
the source of the price series.

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    (iii) The Administrator may request petitioners to provide records 
to support their national average price data.
    (d) Once the petition is filed, the Administrator shall determine 
if it meets the requirements of Sec.  1580.201(c), and if so, publish 
notice in the Federal Register that a petition has been received and 
that an investigation has begun. The notice shall identify the 
agricultural commodity, including any like or directly competitive 
commodities, the marketing year being investigated, the price series 
being used, and the production area covered by the petition. If the 
petition does not meet the requirements of Sec.  1580.201(c), the 
Administrator shall notify as soon as possible the contact person for 
the group or the authorized representative of the deficiencies.


Sec.  1580.202  Hearings, petition reviews, and amendments.

    (a) If the petitioner, or any other person(s) found by the 
Administrator to have a substantial interest in the proceedings, 
submits not later than 10 days after the filing date a request for a 
hearing, the Administrator shall provide for a public hearing and 
afford such interested person an opportunity to be present, to produce 
evidence, and to be heard.
    (b) If the petitioner, or any other person(s) having an interest in 
the proceedings takes issue with any of the information published in 
the Federal Register concerning the petition, they may submit to the 
Administrator their comments in writing or electronically for 
consideration by the Administrator not later than 10 days after the 
filing date.
    (c) A producer residing outside the impacted area identified in a 
petition may file to become a party to the petition by fulfilling the 
requirements of Sec.  1580.201(c) within 10 days of the filing date. 
The Administrator may amend the original petition to expand the 
impacted area and include the additional filer, or consider it a 
separate filing.
    (d) The Administrator shall publish in the Federal Register as soon 
as possible any changes to the original notice resulting from any 
actions taken under this section.


Sec.  1580.203  Determination of eligibility and certification by the 
Administrator.

    (a) As soon as practicable after the filing date, but in any event 
not later than 40 days after that date, the Administrator shall 
determine whether the petitioners satisfy the following conditions for 
adjustment assistance.
    (1) The national average price for the agricultural commodity for 
the marketing year under review is equal to or less than 80 percent of 
the average of the national average prices for the 5 marketing years 
preceding the most recent marketing year, and
    (2) Increases in imports of articles like or directly competitive 
with the agricultural commodity contributed importantly to the decline 
in price described in paragraph (a)(1) of this section.
    (b) If the Administrator determines that the above conditions have 
been satisfied, the producers covered by the petition shall be 
certified as eligible for adjustment assistance.
    (c) Upon making a determination, whether affirmative or negative, 
the Administrator shall promptly publish in the Federal Register a 
summary of the determination, together with the reasons for making the 
determination.
    (d) In addition, the Administrator shall notify producers covered 
by a certification how to apply for adjustment assistance. Notification 
methods may include direct mailings to known producers, messages to 
directly affected producer groups and organizations, electronic 
communications, internet web site notices, and use of broadcast and 
print media.
    (e) Whenever a group of agricultural producers is certified as 
eligible for assistance, the Administrator shall use the occasion to 
notify and inform other producers about the Trade Adjustment Assistance 
Program and how they may petition for adjustment assistance.


Sec.  1580.301  Application for trade adjustment assistance.

    (a) Only producers covered by a certification of eligibility may 
apply for adjustment assistance. Producers may request advice from FSA 
regarding the preparation and submission of their applications.
    (b) An eligible producer may submit an application for adjustment 
assistance at any time after the certification date but not later than 
90 days after the certification date. If the 90-day application period 
ends on a weekend or legal holiday, the producer may apply the 
following business day.
    (c) Applications shall include:
    (1) The name and legal address of applicant.
    (2) Contact information, i.e., mailing address, phone and email 
address.
    (3) The producer's identification number or Federal Income Tax 
number.
    (4) The amount of the agricultural commodity produced in the most 
recent marketing year supported by documentation acceptable to FSA.
    (d) Upon submitting their application, producers shall be 
immediately eligible to request trade adjustment technical assistance 
from the Extension Service at no cost.
    (e) Producers able to furnish their applications with all the 
following certifications shall be eligible for adjustment assistance 
payments:
    (1) Certification that technical assistance from the Extension 
Service under Sec.  1580.302 has been received.
    (2) Certification that cash benefits have not been received under 
any of the provisions of the Trade Act of 1974, as amended, other than 
those permitted under this part.
    (3) Certification that adjustment assistance payments have not 
exceeded the $10,000 limitation for the Federal fiscal year.
    (4) Certification that net farm income is less than that for the 
latest year in which no adjustment assistance payment was received.
    (5) Certification that their average adjusted gross income, as 
determined in accordance with 7 CFR 1400.601, for the 3 preceding 
taxable years does not exceed $2,500,000.
    (6) To comply with certifications in paragraphs (e)(4) and (5) of 
this section, an applicant shall provide either--
    (i) Supporting documentation from a certified public accountant or 
attorney, or
    (ii) Relevant documentation and other supporting financial data, 
such as financial statements, balance sheets, and reports prepared for 
or provided to the Internal Revenue Service or another U.S. Government 
agency.
    (f) Persons legally authorized to execute program documents for 
estates or trusts will be accepted only if such person furnishes 
evidence of the authority to execute such documents.


Sec.  1580.302  Technical assistance and services.

    (a) Any producer of an agricultural commodity covered by a 
certification of eligibility may apply for and receive information and 
technical assistance from the Extension Service that will assist in 
adjusting to import competition and be at no cost to the producer.
    (b) To qualify for technical assistance, producers shall apply 
under Sec.  1580.301.
    (c) Producers shall have an opportunity to meet at least once with 
an Extension Service employee within 180 days of petition certification 
to receive information regarding the feasibility and desirability of 
substituting one or more alternative commodities for the adversely 
affected agricultural commodity and to receive technical assistance to 
lower costs

[[Page 20066]]

associated with producing and marketing the adversely affected 
agricultural commodity. The Extension Service shall provide to 
producers written confirmation of all technical assistance meetings. 
Producers shall also have access to technical information provided in 
writing and electronically.
    (d) Producers shall also be provided information concerning 
procedures for applying for and receiving other Federal assistance and 
services available to workers facing economic distress.
    (e) Producers shall be entitled to employment services and training 
benefits under trade adjustment assistance for workers managed by the 
U.S. Department of Labor.


Sec.  1580.303  Adjustment assistance payments.

    (a) Applicants shall satisfy by September 30 all conditions of 
Sec.  1580.301 to qualify for adjustment assistance payments.
    (b) The FSA office shall issue a payment to a producer that is 
equal to the product of the amount of the agricultural commodity 
produced in the most recent marketing year multiplied by one-half the 
difference between--
    (1) An amount equal to 80 percent of the average of the national 
average prices of the agricultural commodity covered by the petition 
for the 5 marketing years preceding the most recent marketing year, and
    (2) The national average price of the agricultural commodity for 
the most recent marketing year.
    (c) The maximum amount of payments under this part that a producer 
may receive in any 12-month period shall not exceed $10,000.
    (d) The total amount of payments made to a producer may not exceed 
during any crop year the limitation on counter-cyclical payments set 
forth in section 1001(c) of the Food Security Act of 1985 (7 U.S.C. 
1308(c)).
    (e) Any person who may be entitled to a payment may assign their 
rights to such payment in accordance with 7 CFR part 1404 or successor 
regulations as designated by the Department.
    (f) In the case of death, incompetency, disappearance or 
dissolution of a person that is eligible to receive benefits in 
accordance with this part, such person or persons specified in 7 CFR 
part 707 may receive such benefits, as determined appropriate by FSA.
    (g) If the Administrator, FAS, determines in September that program 
funds may be insufficient to meet the requirements for adjustment 
assistance payments under this part during the coming fiscal year, FSA 
may suspend adjustment payments until June 16 in order to prorate 
amounts owed producers.
    (h) FSA will not make adjustment assistance payments to producers 
who have not satisfied the technical assistance requirement.


Sec.  1580.401  Subsequent qualifying year eligibility.

    (a) Prior to the anniversary of a certification date,
    (1) Groups and authorized representatives that provided national 
average prices to justify their initial certifications shall provide 
the Administrator national average prices for the most recent marketing 
year, and
    (2) The Administrator shall determine whether or not--
    (i) The national average price for the agricultural commodity 
produced by the group for the most recent marketing year is equal to or 
less than 80 percent of the average of national average prices for the 
5 marketing years used to make the first certification under Sec.  
1580.203(a)(1), and
    (ii) Further increases in imports are contributing importantly to 
the decline in price.
    (b) The Administrator shall promptly publish in the Federal 
Register the determination with supporting justification statement.
    (c) In the case of a re-certification, FSA shall notify producers 
that they may be eligible to receive trade adjustment assistance for a 
subsequent qualifying year.
    (d) To qualify for assistance in subsequent qualifying years, 
producers shall--
    (1) Submit an application pursuant to Sec.  1580.301, and
    (2) Contact the Extension Service for technical adjustment 
assistance.
    (e) The amount of an adjustment assistance payment during a 
qualifying year shall be determined in the same manner as in the 
originating year, except that the average national price shall be 
determined by using the 5-marketing-year period used to determine the 
amount of cash benefits for the first certification.
    (f) An eligible producer who did not apply for adjustment 
assistance in the initial year may apply pursuant to Sec.  1580.301.


Sec.  1580.501  Administration.

    (a) The application process will be administered under the general 
supervision of the Administrator, FSA, and shall be carried out in the 
field by State and county FSA committees.
    (b) State and county FSA committees and representatives do not have 
the authority to modify or waive any of the provisions of this part.
    (c) The State FSA committee shall take any action required by this 
part that has not been taken by a county FSA committee. The State FSA 
committee shall also:
    (1) Correct or require a county FSA committee to correct any action 
taken by such county FSA committee that is not in accordance with this 
part; and
    (2) Require a county FSA committee to withhold taking or reversing 
any action that is not in accordance with this part.
    (d) No delegation in this part to a State or county FSA committee 
shall prevent the Deputy Administrator from determining any question 
arising under the program or from reversing or modifying any 
determination made by a State or county FSA committee.
    (e) The Deputy Administrator may authorize the State and county 
committees to waive or modify non-statutory deadlines or other program 
requirements in cases where lateness or failure to meet such other 
requirements does not adversely affect the operation of the program.


Sec.  1580.502  Maintenance of records, audits and compliance.

    (a) Persons making application for benefits under this program must 
maintain accurate records and accounts that will document that they 
meet all eligibility requirements specified herein, as may be requested 
by FSA. Such records and accounts must be retained for 2 years after 
the date of the final payment to the producer under this program.
    (b) At all times during regular business hours, authorized 
representatives of FSA, the United States Department of Agriculture, or 
the Comptroller General of the United States shall have access to the 
premises of the producer in order to inspect, examine, and make copies 
of the books, records, and accounts, and other written data as 
specified in paragraph (a) of this section.
    (c) Audits of certifications of average adjusted gross income may 
be conducted as necessary to determine compliance with the requirements 
of this subpart. As a part of this audit, income tax forms may be 
requested and if requested, must be supplied. If a producer has 
submitted information to FSA, including a certification from a 
certified public accountant or attorney, that relied upon information 
from a form previously filed with the Internal Revenue Service, such 
producer shall provide FSA a copy of any amended

[[Page 20067]]

form filed with the Internal Revenue Service with 30 days of the 
filing.
    (d) If requested in writing by FSA, the United States Department of 
Agriculture, or the Comptroller General of the United States, the 
producer shall provide all information and documentation the reviewing 
authority determines necessary to verify any information or 
certification provided under this subpart, including all documents 
referred to in Sec.  1580.301(c), within 30 days. Acceptable production 
documentation may be submitted by facsimile, in person, or by mail and 
may include copies of receipts, ledgers, income statements, deposit 
slips, register tapes, invoices for custom harvesting, records to 
verify production costs, contemporaneous measurements, truck scale 
tickets, and contemporaneous diaries that are determined acceptable by 
the county committee. Failure to provide necessary and accurate 
information to verify compliance, or failure to comply with this 
subpart's requirements, will result in ineligibility for all program 
benefits subject to this subpart for the year or years subject to the 
request.
    (e) All information provided to FSA for the purposes of determining 
compliance with this part will remain confidential and not be subject 
to any request submitted under the Freedom of Information Act.


Sec.  1580.503  Debarment and suspension.

    The Government-wide Debarment and Suspension (Nonprocurement) 
regulations and Government Requirements for Drug-Free Workplace 
(Grants), 7 CFR part 3017--subparts A through E, apply to this part.


Sec.  1580.504  Fraud and recovery of overpayments.

    (a) If the Administrator, FSA or a court of competent jurisdiction, 
determines that any person has received any payment under this program 
to which the person was not entitled, such person will be liable to 
repay such amount to the Administrator, FSA. The Administrator, FSA may 
waive such repayment if it is determined that:
    (1) The payment was made without fault on the part of the person; 
and
    (2) Requiring such repayment would be contrary to equity and good 
conscience.
    (b) Unless an overpayment is otherwise recovered, or waived under 
paragraph (a), the Administrator, FSA shall recover the overpayment by 
deductions from any sums payable to such person.
    (c) If the Administrator, FSA, or a court of competent 
jurisdiction, determines that a person:
    (1) Knowingly has made, or caused another to make, a false 
statement or representation of a material fact, or
    (2) Knowingly has failed, or caused another to fail, to disclose a 
material fact, and, as a result of such false statement or 
representation, or of such nondisclosure, such person has received any 
payment under this program to which the person was not entitled, such 
person shall, in addition to any other penalty provided by law, be 
ineligible for any further payment under this program.
    (d) Except for overpayments determined by a court of competent 
jurisdiction, no repayment may be required, and no deduction may be 
made, under this section until a determination and an opportunity for a 
fair hearing has been given to the person concerned, and the 
determination has become final.
    (e) Whoever makes a false statement of a material fact knowing it 
to be false, or knowingly fails to disclose a material fact, for the 
purpose of obtaining or increasing for himself or for any other person 
any payments authorized to be furnished under this program shall be 
fined not more that $10,000 or imprisoned for not more than 1 year, or 
both.


Sec.  1580.505  Appeals.

    Any person may obtain reconsideration and review of determinations 
made with respect to applications for program benefits under this part 
in accordance with appeal regulations of the 7 CFR part 780.


Sec.  1580.601  Implementation.

    Trade adjustment assistance is available for the most recent 
marketing year for which prices were available on February 3, 2003.


Sec.  1580.602  Paperwork Reduction Act assigned number.

    The information collection requirements contained in these 
regulations (7 CFR part 1580) have been approved by the Office of 
Management and Budget under the provisions of 44 U.S.C. Chapter 35 and 
been assigned OMB control number xxxx-xxxx.

    Dated: April 18, 2003.
A. Ellen Terpstra,
Administrator, Foreign Agricultural Service.
[FR Doc. 03-10050 Filed 4-22-03; 8:45 am]
BILLING CODE 3410-10-P