[Federal Register Volume 68, Number 161 (Wednesday, August 20, 2003)]
[Rules and Regulations]
[Pages 50048-50053]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-21338]


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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: Final rule.

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SUMMARY: This final rule implements the Trade Act of 1974, as amended 
by the Trade Act of 2002 to establish a new program, Trade Adjustment 
Assistance (TAA) for Farmers. Under this program, the Department of 
Agriculture provides 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 rule establishes the procedure by which 
producers of raw agricultural commodities can petition for 
certification of eligibility and apply for technical assistance and 
adjustment payments.

EFFECTIVE DATE: August 20, 2003.

ADDRESSES: U.S. Department of Agriculture, Foreign Agricultural 
Service, Import Policies and Programs Division, 1400 Independence 
Avenue, SW., Stop 1021, Washington, DC 20250-1021.

FOR FURTHER INFORMATION CONTACT: Richard Blabey, Director, Import 
Policies and Programs Division, Foreign Agricultural Service, 1400 
Independence Avenue, SW., STOP 1021, by email at 
[email protected], telephone at 202-720-2916, or fax at 
202-720-0876.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    The 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 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.

Executive Order 12988

    This rule has been reviewed under Executive Order 12988. The 
provisions of this 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 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 rule.

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

    These Executive Orders and Public Law 104-4 require consultation 
with State and local officials and Indian tribal governments. This 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 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 (P.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 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

[[Page 50049]]

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 to 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 receive adjustment assistance in subsequent years. 
The Administrator will review and re-certify a petition for a 
subsequent qualifying year if prices remain at or below the same 80 
percent threshold as the initial year of adjustment assistance, and if 
imports continue to increase and contribute importantly to the decline 
in prices.

Discussion of Comments

    The Foreign Agricultural Service received 76 comments on the 
proposed rule. The comments focused on the following areas:

Inclusion of Aquaculture in the Program

    The inclusion of aquaculture under TAA generated by far the most 
public comments, all of which were favorable. In fact, 47 respondents 
supported extending TAA coverage to fishermen of wild Alaska salmon, 
who face stiff competition from imported farm-raised salmon. Five more 
respondents proposed covering all fishermen. The rule covers 
aquaculture, which is defined to include products propagated and raised 
in controlled environments for the purpose of human consumption, and it 
covers fishermen whose catch is adversely affected by imported 
aquaculture products. FAS decided that inclusion of all fishermen under 
TAA for Farmers would be incompatible with section 143 of the Trade Act 
of 2002, which directs the Secretary of Commerce to conduct a study and 
report to Congress regarding whether a trade adjustment assistance 
program is appropriate and feasible for fishermen.

The Definition of Like or Directly Competitive Articles

    Ten respondents favored a less restrictive definition that would 
recognize imports of some processed and semi-processed articles as 
directly competitive with the agricultural commodities they produced. 
The final rule leaves the definition of articles like or directly 
competitive unchanged. Petitioners, who believe that the definition in 
the rule is too limiting, may request a public hearing to present 
evidence supporting their case under Sec.  1580.202. The rule allows 
the Administrator to evaluate the information provided in the hearing 
and other information submitted in writing and to amend the terms of 
the original petition, if warranted.

Impacted Areas

    Five respondents supported this provision in the proposed rule 
allowing producers from impacted areas to file petitions; none opposed. 
They saw this option as potentially useful to regional producers who 
might be adversely affected by import competition, while producers 
nationally might be less affected.

Certification of a Decline in Net Farm Income

    Three respondents expressed concern that producers managing 
diversified farms might not qualify for adjustment assistance payments 
due to higher earnings from sales of other commodities. The purpose of 
TAA is to assist producers to adjust to imports by providing technical 
assistance to all and cash payments to those facing economic hardship. 
The final rule leaves unchanged the requirement that producers certify 
to a decline in net farm income, as reported on Internal Revenue 
Service Schedule F (Form 1040) and Form 4835, in order to receive a 
cash payment. However, the final rule does exclude TAA payments from 
being considered part of net farm income in subsequent qualifying 
years. Otherwise, TAA payments might be the cause for excluding 
producers from receiving the full benefits of the program.

Window for Receiving Petitions

    Two respondents questioned the use of a window for filing 
petitions. TAA is intended to provide rapid relief to producers. 
However, funding is limited to $90 million per fiscal year, which must 
be prorated among all eligible producers whenever claims exceed this 
amount, a very real possibility. Waiting until the close of the fiscal 
year to prorate is inconsistent with providing rapid relief. The rule 
therefore seeks middle ground between the intent of the legislation, on 
the one hand, and the requirement to prorate payments, on the other, by 
creating a window for filing petitions. The window concentrates the 
approval of petitions within the first half of the fiscal year. Closing 
the filing period at the end of January means that all petitions will 
be determined by mid-March and all applications for TAA benefits will 
be received by mid-June. The first prorated payments can be made 
shortly thereafter coincident with the issuance of any final counter-
cyclical payments also made to the producer by the Commodity Credit 
Corporation. Because the total of TAA benefits and counter-cyclical 
payments are limited to $65,000 in each fiscal year, issuing TAA 
benefits at this time will facilitate the application of this payment 
limitation.

Classes of Agricultural Commodities

    One respondent raised the point that the rule does not address 
classes of goods within a commodity as discussed in section 292(c) of 
the Trade Act of 1974. The rationale for mentioning classes of 
commodities the Trade Act is to permit producers to take full advantage 
of the program by allowing them to define their crop more narrowly than 
might otherwise be permitted. To that end, the rule requires producers 
to identify their commodity by its Harmonized Tariff Schedule of the 
United States (HTS) number. This not only facilitates the unambiguous 
collection of official import data for the commodity, but it also 
accommodates the major commodity classes, which are often separately 
identified in the HTS.

List of Subjects in 7 CFR Part 1580

    Agricultural commodity imports; reporting and record keeping 
requirements; and trade adjustment assistance.

Final Rule

0
Accordingly, the regulations chapter XV at title 7 of the Code of 
Federal Regulations are amended 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.

[[Page 50050]]

1580.301 Application for trade 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 U.S.C. 2401.

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 articles that are either aquaculture products or directly 
competitive with aquaculture products found in chapter 3 of the HTS.
    Aquaculture means the propagation and rearing of aquatic organisms 
in a controlled aquatic environment for the purpose of human 
consumption.
    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) Children, including legally adopted children;
    (5) Grandchildren;
    (6) Great grandchildren;
    (7) Sibling of the family member in the farming operation; and
    (8) Spouse of a person listed in paragraphs (1) through (7) 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 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, excluding payments 
under this part, reported on Internal Revenue Service Schedule F (Form 
1040) and Form 4835 for the tax year that most closely corresponds with 
the marketing year under consideration.
    Net fishing income means net profit or loss, excluding payments 
under this part, reported on Internal Revenue Service Schedules C or C-
EZ (Form 1040) for individuals or taxable income, excluding payments 
under this part, reported on Form 1120 for corporations during the tax 
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.
    Pre-adjustment year means the tax year previous to that associated 
with the most recent marketing year in the initial producer petition.
    Producer means a person who is either 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, or a qualified fisherman.
    Qualified fisherman means a person whose catch competes in the 
marketplace with like or directly competitive aquaculture products and 
report net fishing income to the Internal Revenue Service on Schedules 
C or C-EZ (Form 1040).
    Raw or natural state means unaltered by any process other than 
cleaning, grading, coating, sorting, trimming, mixing, conditioning, 
drying, dehulling, shelling, chilling, cooling, blanching, irradiating, 
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 or qualified 
fishermen 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 15 through January 31. 
Petitions received after January 31 will be returned 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.

[[Page 50051]]

    (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 all 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 has not compiled 
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.
    (iii) The Administrator may request petitioners to provide records 
to support their national average price data.
    (d) Once the petition is received, 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 filed 
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. The notice 
may also announce the scheduling of a public hearing, if requested by 
the petitioners. 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 in 
writing 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 by submitting to FSA a designated application form 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) When submitting an application, the producer shall provide 
documentation to support the amount of production reported to FSA for 
the most recent marketing year.
    (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 or fishing income for the most 
recent tax year was less than that during the producer's pre-adjustment 
year.
    (5) Certification that their average adjusted gross income, as 
determined in

[[Page 50052]]

accordance with 7 CFR 1400.601, for the 3 preceding tax years does not 
exceed $2,500,000.
    (6) To comply with certifications in (e)(4) and (e)(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 
that will improve the competitiveness of the production and marketing 
of the adversely affected agricultural commodity by the producer, 
including yield and marketing improvements. 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 person 
may receive during the Federal fiscal year shall not exceed $10,000.
    (d) The total amount of payments made under this part to a person 
during any fiscal year when considered with the total amount of 
counter-cyclical payments made in accordance with part 1412 of this 
title for a corresponding crop year shall not exceed $65,000 per fiscal 
year, as determined by the Administrator.
    (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 delay making adjustment payments in order to prorate amounts owed 
producers.
    (h) FSA shall not make adjustment assistance payments to producers 
who have not met at least once with an Extension Service employee to 
receive technical assistance.


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 Administrator, FAS, may, by timely and appropriate public

[[Page 50053]]

notification, modify non-statutory opening dates and deadlines for 
submitting petitions.
    (f) The Deputy Administrator may, in consultation with the 
Administrator, FAS, authorize the State and county committees to waive 
or modify non-statutory application deadlines or other program 
requirements in cases where lateness or failure to meet such other 
requirements by applicants 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 form filed with the 
Internal Revenue Service with 30 days of the filing.
    (d) If requested in writing by 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, fish tickets, landing reports, 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.


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.

    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 electronically to maximum extent possible. 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 0551-0040.

    Dated: August 15, 2003.
A. Ellen Terpstra,
Administrator, Foreign Agricultural Service.
[FR Doc. 03-21338 Filed 8-19-03; 8:45 am]
BILLING CODE 3410-10-P