[Federal Register Volume 70, Number 182 (Wednesday, September 21, 2005)]
[Rules and Regulations]
[Pages 55225-55227]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-18759]



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 Rules and Regulations
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  Federal Register / Vol. 70, No. 182 / Wednesday, September 21, 2005 / 
Rules and Regulations  

[[Page 55225]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1216

[FV-05-701-IFR]


Amendment to the Peanut Promotion, Research, and Information 
Order

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: The purpose of this rule is to bring the provisions of the 
Peanut Promotion, Research and Information Order (Order), into 
conformity with changes that have occurred since the implementation of 
the Order with regard to the collection of assessments. This order is 
issued under the authority of the Commodity Promotion, Research and 
Information Act of 1996. This rule invites comments on changes to the 
Order provisions on assessments and the deletion of a number of 
obsolete definitions.

DATES: September 22, 2005; comments received by October 21, 2005 will 
be considered prior to issuance of a final rule.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this rule. Comments must be sent to the Docket Clerk, 
Research and Promotion Branch, Fruit and Vegetable Programs, AMS, USDA, 
1400 Independence Avenue, SW., Stop 0244, Washington, DC 20250-0237; 
Fax: (202) 205-2800, or E-mail:[email protected]; or Internet: 
http://www.regulations.gov. All comments should reference the docket 
number, the date and the page number of this issue of the Federal 
Register and will be made available for public inspection in the Office 
of the Docket Clerk during regular business hours, or can be viewed at: 
http//www.ams.usda.gov/fv/rpb.html.

FOR FURTHER INFORMATION CONTACT: Deborah S. Simmons, Research and 
Promotion Branch, Fruit and Vegetable Programs, AMS, USDA, Stop 0244, 
1400 Independence Avenue, SW., Room 2535 South Building, Washington, 
D.C. 20250-0244; telephone (202) 720-9916 or fax (202) 205-2800.

SUPPLEMENTARY INFORMATION: Legal Authority. The Peanut Promotion, 
Research and Information Order (Order) (7 CFR Part 1216) became 
effective July 29, 1999. It was issued under the Commodity Promotion, 
Research, and Information Act of 1996 (Act) (7 U.S.C. 7401-7425).

Executive Order 12988

    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. This rule is not intended to have retroactive effect. 
Section 524 of the Act provides that the Act shall not affect or 
preempt any State or local laws authorizing promotion or research 
relating to an agricultural commodity.
    Under Section 519 of the Act, a person subject to the Order may 
file a petition with the Secretary of Agriculture (Secretary) stating 
that the Order, any provision of the Order, or any obligation imposed 
in connection with the Order, is not established in accordance with the 
law, and requesting a modification of the Order or an exemption from 
the Order. Any petition filed challenging the Order, any provision of 
the Order, or any obligation imposed in connection with the Order, 
shall be filed within two years after the effective date of the Order, 
provision, or obligation subject to challenge in the petition. The 
petitioner will have the opportunity for a hearing on the petition. 
Thereafter, the Secretary will issue a ruling on a petition. The Act 
provides that the district court of the United States for any district 
in which the petitioner resides or conducts business shall have the 
jurisdiction to review a final ruling on the petition, if the 
petitioner files a complaint for that purpose not later than 20 days 
after the date of the entry of the Secretary's final ruling.

Executive Order 12866

    This rule has been determined not significant for purposes of 
Executive Order 12866 and therefore has not been reviewed by the Office 
of Management and Budget (OMB).

Regulatory Flexibility Act and Paperwork Reduction Act

    In accordance with the Regulatory Flexibility Act (RFA) [5 U.S.C. 
601 et seq.], the Agency has examined the impact of this rule on small 
entities. The purpose of the RFA is to fit regulatory actions to the 
scale of businesses subject to such actions so that small businesses 
will not be disproportionately burdened.
    There are approximately 13,000 producers and 57 first handlers of 
peanuts subject to the program. Most of the producers would be 
classified as small businesses under the criteria established by the 
Small Business Administration (SBA) [13 CFR 121.201]. Most first 
handlers would not be classified as small businesses. The SBA defines 
small agricultural handlers as those whose annual receipts are less 
than $6 million, and small agricultural producers are defined as those 
having annual receipts of not more than $500,000 annually.
    A number of changes have occurred to Farm Service Agency loan 
programs for peanuts since the 2002 Farm Bill. In view of this, several 
provisions of the Order needed to be updated. The changes are to the 
collection process for assessments, Section 1216.51 of the Order as 
amended. This section included provisions concerning collection of 
assessments and peanuts placed under marketing assistance loans. The 
Commodity Credit Corporation will deduct and remit to the Board 
assessments deducted from the proceeds of the loan. Producers are also 
required to pay assessments directly to the Board in certain 
circumstances.
    This rule, however, does not alter the amount of the assessment or 
the obligation of producers of peanuts to pay the assessment.
    Additional changes are made to amend definitions and delete 
definitions that are no longer needed. Accordingly, Sec.  1216.2 
concerning additional peanuts, Sec.  1216.3 concerning area marketing 
associations, Sec.  1216.6 concerning contract export additional 
peanuts, and Sec.  1216.24 concerning quota peanuts are deleted.
    There are no relevant federal rules that duplicate, overlap, or 
conflict with the proposed rule.

[[Page 55226]]

    In accordance with the Office of Management and Budget (OMB) 
regulation [5 CFR Part 1320] which implements the Paperwork Reduction 
Act of 1995 [44 U.S.C. Chapter 35], the information collection and 
recordkeeping requirements that are imposed by the Order have been 
approved previously under OMB control number 0581-0093. This rule does 
not result in a change to the information collection and recordkeeping 
requirements previously approved.
    We have performed this Initial Regulatory Flexibility Analysis 
regarding the impact of this proposed amendment to the Order on small 
entities, and we invite comments concerning potential effects of the 
proposed amendment.

Background

    The Order became effective on July 29, 1999, after a national 
referendum among all peanut producers. Under the Order, peanut 
producers are assessed 1 percent of the total value of all farmers 
stock peanuts, which currently generates about $6 million in annual 
revenues. The program is administered by the Board under USDA 
supervision.
    The Board is composed of 10 members and 10 alternates, nominated by 
producers and appointed by the Secretary of Agriculture. There is one 
member and alternate for each of the nine primary peanut-producing 
states and one at-large member and alternate representing all other 
peanut-producing states.
    Currently, the nine major peanut-producing states are (in 
descending order) Georgia, Texas, Alabama, North Carolina, Florida, 
Virginia, Oklahoma, New Mexico, and South Carolina. The minor peanut-
producing states are Arizona, Arkansas, California, Kansas, Louisiana, 
Mississippi, Missouri, and Tennessee.
    There is an assessment rate of 1 percent of the price paid for all 
farmers stock peanuts sold. Peanut producers may sell their peanuts 
commercially or put them in the market assistance loan program. For 
peanuts sold commercially, the first handler will remit the assessment 
to the Board.
    Further Sec.  1216.51(d) currently provides that for peanuts placed 
under loan with the Department's Commodity Credit Corporation, each 
area marketing association shall remit to the Board the following: (1) 
One (1) percent of the initial price paid for either quota or 
additional peanuts no more than 60 days after the last day of the month 
in which the peanuts were placed under loan; and (2) One (1) percent of 
the profit from the sale of the peanuts within 60 days after the final 
day of the area marketing association's fiscal year.
    A number of changes have occurred to Farm Service Agency loan 
program for peanuts since the 2002 Farm Bill. In view of this, the 
Board submitted a request to amend the Order to update the collection 
of assessments for all peanuts, including loan peanuts. This rule does 
not alter the amount of the assessment or the obligation of producers 
of peanuts to pay the assessment.
    This rule does provide in Sec.  1216.51 (d) that for peanuts placed 
under a marketing assistance loan with the Department's Commodity 
Credit Corporation, the Commodity Credit Corporation or any entity 
determined by the Commodity Credit Corporation shall deduct and remit 
to the Board, from the proceeds of the loan paid to the producer, (1) 
one (1%) percent of the loan value of the peanuts as determined by the 
warehouse receipt accompanying such peanuts, no more than 60 days after 
the last day of the month in which the peanuts were placed under a 
marketing assistance loan.
    This rule also provides in Sec.  1216.51(e) that if a producer 
places peanuts under a marketing assistance loan and subsequently 
redeems and sells such peanuts at a price greater than the loan amount, 
the producer shall pay the difference between the sales price and the 
loan amount value of the peanuts multiplied by one (1%) percent to the 
Board within sixty (60) days of the date of sale.
    In accordance with the Office of Management and Budget (OMB) 
regulation [5 CFR Part 1320] which implements the Paperwork Reduction 
Act of 1995 [44 U.S.C. Chapter 35], the information collection and 
recordkeeping requirements that are imposed by this Order were 
submitted to OMB for approval and were approved under OMB control 
number 0581-0093. This proposal will not cause any change in the 
information collection and recordkeeping requirement.
    Additional changes are made to amend definitions and delete 
definitions that are no longer needed. Accordingly, Sec.  1216.2 
concerning additional peanuts, Sec.  1216.3 concerning area marketing 
associations, Sec.  1216.6 concerning contract export additional 
peanuts, and Sec.  1216.24 concerning quota peanuts are deleted.
    This rule invites comments on the amendment to the collection 
process set forth in the Order and on the deletion of Sec.  1216.2, 
Sec.  1216.3, Sec.  1216.6 and Sec.  1216.24. Any comments received 
before the October 21, 2005 will be considered prior to finalization of 
this rule.
    Pursuant to 5 U.S.C. 553, it is also found and determined upon good 
cause that it is impracticable, unnecessary, and contrary to the public 
interest to give preliminary notice prior to putting this rule into 
effect and that good cause exists for not postponing the effective date 
of this rule until 30 days after publication in the Federal Register 
because: (1) The crop year began on August 1, 2005 and this action 
should be in place as soon as possible and (2) this notice does not 
alter the amount of assessment but only changes provisions concerning 
the collection of assessment. For these reasons, a thirty-day comment 
period is deemed appropriate.

General Findings

List of Subjects in 7 CFR Part 1216

    Administrative practice and procedure; Advertising; Agricultural 
research; Peanuts; Reporting and recordkeeping requirements.

0
For the reasons set forth in the preamble, Title 7 of Chapter XI of the 
Code of Federal Regulations is amended as follows:

PART 1216--PEANUT PROMOTION, RESEARCH, AND INFORMATION ORDER

0
1. The authority citation for part 1216 continues to read as follows:

    Authority: 7 U.S.C. 7401-7425.


Sec. Sec.  1216.2, 1216.3, 1216.6, 1216.24  [Removed and reserved]

0
2. Sections 1216.2, 1216.3, 1216.6 and 1216.24 are removed and 
reserved.

0
3. Section 1216.51 is revised to read as follows:


Sec.  1216.51  Assessments.

    (a) The funds necessary to pay for programs and other costs 
authorized by this part shall be acquired by the levying of assessments 
upon producers in a manner prescribed by the Secretary.
    (b) Each first handler, at such times and in such manner as 
prescribed by the Secretary, shall collect from each producer or first 
purchaser/handler and pay assessments to the Board on all peanuts 
handled, including peanuts produced by the first handler, no later than 
60 days after the last day of the month in which the peanuts were 
marketed.
    (c) Such assessments shall be levied at a rate of one (1%) percent 
of the price paid for all farmers stock peanuts sold. Price paid is one 
(1%) percent of loan value.
    (d) For peanuts placed under a marketing assistance loan with the

[[Page 55227]]

Department's Commodity Credit Corporation, the Commodity Credit 
Corporation, or any entity determined by the Commodity Credit 
Corporation shall deduct and remit to the Board, from the proceeds of 
the loan paid to the producer, one (1%) percent of the loan value of 
the peanuts as determined by the warehouse receipt accompanying such 
peanuts, no more than 60 days after the last day of the month in which 
the peanuts were placed under a marketing assistance loan.
    (e) If a producer places peanuts under a marketing assistance loan 
and subsequently redeems and sells such peanuts at a price greater than 
the loan amount, the producer shall pay the difference between the 
sales price and the loan value of the peanuts multiplied by one (1%) 
percent to the Board within sixty (60) days after the final day of the 
loan availability period.
    (f) All assessments collected under this section are to be used for 
expenses and expenditures pursuant to this Order and for the 
establishment of an operating reserve as prescribed in the Order.
    (g) The Board shall impose a late payment charge on any person who 
fails to remit to the Board the total amount for which the person is 
liable on or before the payment due date established under this 
section. The late payment charge will be in the form of interest on the 
outstanding portion of any amount for which the person is liable. The 
rate of interest shall be prescribed in regulations issued by the 
Secretary.
    (h) Persons failing to remit total assessments due in a timely 
manner may also be subject to actions under federal debt collection 
procedures.
    (i) The Board may authorize other organizations to collect 
assessments on its behalf with the approval of the Secretary.
    (j) The assessment rate may not be increased unless the new rate is 
approved by a referendum among eligible producers.

    Dated: September 15, 2005.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. 05-18759 Filed 9-20-05; 8:45 am]
BILLING CODE 3410-02-P