[Federal Register Volume 68, Number 117 (Wednesday, June 18, 2003)]
[Proposed Rules]
[Pages 36498-36499]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-15318]


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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. 68, No. 117 / Wednesday, June 18, 2003 / 
Proposed Rules  

[[Page 36498]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1220

[No. LS-02-14]


Amendment to the Soybean Promotion and Research Rules and 
Regulations

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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

SUMMARY: This proposed rule would amend the Soybean Promotion and 
Research Rules and Regulations (Rules and Regulations) established 
under the Soybean Promotion, Research, and Consumer Information Act 
(Act) by requiring first purchasers of soybeans and producers marketing 
processed soybeans or soybean products of a producer's own production 
in the States or regions of Delaware, Louisiana, South Carolina, Texas, 
Eastern Region, and the Western Region, to remit and report assessments 
on a quarterly basis rather than a monthly basis. This proposed change 
would reduce the administrative costs of monthly reporting imposed on 
these smaller soybean producing States and regions.

DATES: Written comments must be received by July 18, 2003.

ADDRESSES: Send a copy of your comments to Kenneth R. Payne, Chief; 
Marketing Programs Branch; Livestock and Seed Program; Agricultural 
Marketing Service (AMS), USDA, Room 2638-S; STOP 0251; 1400 
Independence Avenue, SW.; Washington, DC 20250-0251. Comments may also 
be sent electronically to [email protected] or by facsimile at 
202/720-1125. All comments should reference the docket number LS-02-14, 
the date, and the page number of this issue of the Federal Register. 
Comments will be available for public inspection via the Internet at 
http://www.ams.usda.gov/lsg/mpb/rp-soy.htm or between 8 a.m. and 4:30 
p.m. Eastern Time, Monday through Friday, except holidays at the above 
address.

FOR FURTHER INFORMATION CONTACT: Marlene M. Betts, Agricultural 
Marketing Specialist, Marketing Programs Branch, 202/720-1115.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    The Office of Management and Budget (OMB) has waived the review 
process required by Executive Order 12866 for this action.

Executive Order 12988

    This proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. This proposal is not intended to have a 
retroactive effect.
    The Act provides that administrative proceedings must be exhausted 
before parties may file suit in court. Under Sec.  1971 of the Act, a 
person subject to the Soybean Promotion and Research Order (Order) may 
file a petition with the Department of Agriculture (Department) stating 
that the Order, any provision of the Order, or any obligation imposed 
in connection with the Order, is not in accordance with law and 
requesting a modification of the Order or an exemption from the Order. 
The petitioner is afforded the opportunity for a hearing on the 
petition. After a hearing, the Department would rule on the petition. 
The Act provides that the district courts of the United States in any 
district in which such person is an inhabitant, or has their principal 
place of business, has jurisdiction to review the Department's ruling 
on the petition, if a complaint for this purpose is filed within 20 
days after the date of the entry of the ruling. Further, Sec.  1974 of 
the Act provides, with certain exceptions, that nothing in the Act may 
be construed to preempt or supersede any other program relating to 
soybean promotion, research, consumer information, or industry 
information organized and operated under the laws of the United States 
or any State. One exception in the Act concerns assessments collected 
by Qualified State Soybean Boards (QSSBs). The exception provides that 
to ensure adequate funding of the operations of QSSBs under the Act, no 
State law or regulation may limit or have the effect of limiting the 
full amount of assessments that a QSSB in that State may collect, and 
which is authorized to be credited under the Act. Another exception 
concerns certain referenda conducted during specified periods by a 
State relating to the continuation or termination of a QSSB or State 
soybean assessment.

Regulatory Flexibility Act

    AMS has determined that this proposed rule will not have a 
significant impact on a substantial number of small entities as defined 
by the Regulatory Flexibility Act (5 U.S.C. 601 et seq.), because it 
only revises the remittance of assessments and reports from a monthly 
basis to a quarterly basis for certain States or regions. The States or 
regions of Delaware, Louisiana, South Carolina, Texas, Eastern Region, 
and the Western Region will be changed from monthly remitting States or 
regions to quarterly remitting States or regions to reduce 
administrative costs. Because of the minimal number of first 
purchasers, producers, and total remittances from these States and 
regions, allowing the States or regions to remit and report assessments 
on a quarterly basis would benefit QSSBs, the States and regions, and 
the United Soybean Board (Board) by reducing the administrative costs 
of remitting and reporting assessments on a monthly basis. The proposed 
action would likely reduce administrative costs by approximately 
$10,000. As such, these changes will not have a significant impact on a 
substantial number of small entities. There are an estimated 30,000 
soybean producers who pay assessments and an estimated 150 first 
purchasers who collect assessments in the four affected States and two 
regions. There are six QSSBs that would be affected under this proposed 
rule. Most of these entities would be considered small entities under 
the criteria established by the Small Business Administration (13 CFR 
121.201).

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1990 (44 U.S.C. 
Chapter 35), the reporting and recordkeeping requirements included in 7 
CFR part 1220 were previously approved by OMB and were assigned OMB 
control number 0581-0093. The purpose of this proposed rule is to 
change the remitting and reporting of assessments to a quarterly basis 
from a monthly basis in four soybean producing States and two regions. 
There

[[Page 36499]]

are a minimal number of first purchasers and producers in these four 
States and two regions. This change would not substantially impact the 
overall total burden hours. As a result, no change to the previously 
submitted burden estimate is necessary.

Background and Proposed Changes

    The Act (7 U.S.C. 6301-6311) provides for the establishment of a 
coordinated program of promotion and research designed to strengthen 
the soybean industry's position in the marketplace, and to maintain and 
expand domestic and foreign markets and uses for soybeans and soybean 
products. The program is financed by an assessment of 0.5 of 1 percent 
of the net market price of soybeans sold by producers. The final Order 
establishing a soybean promotion, research, and consumer information 
program was published in the July 9, 1991, issue of the Federal 
Register (56 FR 31043) and assessments began on September 1, 1991.
    The Soybean Promotion and Research Rules and Regulations, 7 CFR 
part 1220, published in the Federal Register on July 2, 1992 (57 FR 
29436), specify in Sec.  1220.312(b) that first purchasers and 
producers responsible for remitting assessments shall remit assessments 
and reports on a monthly or quarterly basis depending upon the State or 
region in which they are located. This proposed rule would change the 
States or regions of Delaware, Louisiana, South Carolina, Texas, 
Eastern Region, and the Western Region from remitting and reporting 
assessments on a monthly basis to a quarterly basis. Currently, 15 
States and 2 regions report on a monthly basis and 14 States report on 
a quarterly basis.
    The Board, in conjunction with the affected States and regions, 
recommended to AMS to change the period for remitting and reporting 
assessments for the following States or regions from a monthly basis to 
quarterly basis: Delaware, Louisiana, South Carolina, Texas, Eastern 
Region, and the Western Region.
    This proposed rule would assist these smaller soybean producing 
States and regions (listed above) in reporting and remitting their 
assessments to the Board. The Board has decided that the current 
requirement to remit and report assessments on a monthly basis is no 
longer necessary given the minimal number of first purchasers and total 
remitters from these smaller soybean producing States and regions. 
Allowing these States and regions to become quarterly remitters would 
reduce their administrative costs. It is estimated that administrative 
costs would be reduced by approximately $10,000 if first purchasers of 
soybeans and producers marketing processed soybeans and soybean 
products of a producer's own production in the States and regions of 
Delaware, Louisiana, South Carolina, Texas, the Eastern Region, and the 
Western Region could remit and report assessments on a quarterly basis. 
Producers that market soybeans to first purchasers would continue to 
pay the assessment at the time of settlement. Due to the minimal number 
of first purchasers and total remittances in these States and regions, 
allowing the States or regions to remit quarterly would be beneficial 
to the States, regions, and the Board by reducing the administrative 
costs of collecting assessments.
    A 30-day comment period is provided for interested persons. For the 
aforementioned reasons, a 30-day comment period is deemed appropriate 
so that the proposed change, if adopted, can be implemented as soon as 
possible.

List of Subjects in 7 CFR Part 1220

    Administrative practice and procedure, Advertising, Agricultural 
research, Marketing agreements, Soybeans and soybean products, 
Reporting and recordkeeping requirements.

    For the reasons set forth in the preamble, it is proposed that 
Title 7, part 1220 be amended as follows:

PART 1220--SOYBEAN PROMOTION, RESEARCH, AND CONSUMER INFORMATION

    1. The authority citation for 7 CFR part 1220 continues to read as 
follows:

    Authority: 7 U.S.C. 6301-6311.

    2. In Sec.  1220.312, the table in paragraph (b) is revised to read 
as follows:
* * * * *
    (b) * * *

------------------------------------------------------------------------
                  Monthly                             Quarterly
------------------------------------------------------------------------
Arkansas..................................  Alabama
Iowa......................................  Delaware
Kansas....................................  Florida
Kentucky..................................  Georgia
Michigan..................................  Illinois
Minnesota.................................  Indiana
Missouri..................................  Louisiana
Mississippi...............................  Maryland
North Carolina............................  North Dakota
Tennessee.................................  Nebraska
Wisconsin.................................  New Jersey
                                            Ohio
                                            Oklahoma
                                            Pennsylvania
                                            South Carolina
                                            South Dakota
                                            Texas
                                            Virginia
                                            Eastern Region
                                            Western Region
------------------------------------------------------------------------

* * * * *

    Dated: June 12, 2003.
Kenneth C. Clayton,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 03-15318 Filed 6-17-03; 8:45 am]
BILLING CODE 3410-02-P