[Federal Register Volume 68, Number 241 (Tuesday, December 16, 2003)]
[Rules and Regulations]
[Pages 69953-69954]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-31000]



[[Page 69953]]

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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1220

[Doc. No. LS-02-14]


Amendment to the Soybean Promotion and Research Rules and 
Regulations

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: This final rule amends 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 change reduces 
the administrative costs of monthly reporting imposed on these smaller 
soybean producing States and regions.

EFFECTIVE DATE: April 1, 2004.

FOR FURTHER INFORMATION CONTACT: 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; telephone 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 final rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. This rule 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, section 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 final 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 are being 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 will 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. This action 
will 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 will be affected under this 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 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 
are a minimal number of first purchasers and producers in these four 
States and two regions. This change will not substantially impact the 
overall total burden hours. As a result, no change to the previously 
submitted burden estimate is necessary.

Background

    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 rule will 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,

[[Page 69954]]

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 rule will 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 will 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 remit and 
report assessments on a quarterly basis. Producers that market soybeans 
to first purchasers will 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 will be beneficial to the States, regions, and the 
Board by reducing the administrative costs of collecting assessments.

Comments

    On June 18, 2003, the Department published in the Federal Register 
(68 FR 36498) for comment a proposed rule to amend the Rules and 
Regulations established under the Act. The proposed rule provided 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.
    The proposed rule was published with a request for comments to be 
submitted by July 18, 2003. The Department received one comment, in a 
timely manner, from an individual who did not support the program in 
general. This commenter further questioned the impact of the proposal 
on assessments. In the proposal, we noted that the rule would assist 
smaller soybean producing States and regions in reporting and remitting 
their assessments to the Board. We concluded that 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. As such this action should impact assessments 
favorably.
    Based on the Board's recommendation, in conjunction with the 
affected States and regions, and no substantive comments, AMS is 
changing the period for remitting and reporting assessments for the 
following States or regions from a monthly basis to a quarterly basis: 
Delaware, Louisiana, South Carolina, Texas, Eastern Region, and the 
Western Region.
    This rule will become effective April 1, 2004.

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.


0
For the reasons set forth in the preamble, Title 7, part 1220 is 
amended as follows:

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

0
1. The authority citation for 7 CFR part 1220 continues to read as 
follows:

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

0
2. In Sec.  1220.312, the table in paragraph (b) is revised to read as 
follows:


Sec.  1220.312  Remittance of assessments and submission of reports to 
United Soybean Board or Qualified State Soybean Board.

* * * * *
    (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
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* * * * *

    Dated: December 9, 2003.
A.J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 03-31000 Filed 12-15-03; 8:45 am]
BILLING CODE 3410-02-P