[Federal Register Volume 79, Number 68 (Wednesday, April 9, 2014)]
[Rules and Regulations]
[Pages 19462-19464]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-07979]
[[Page 19462]]
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DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
7 CFR Part 1463
RIN 0560-AH30
Tobacco Transition Program Assessments; Final Appeals and
Revisions Procedures
AGENCY: Commodity Credit Corporation, USDA.
ACTION: Final rule, technical amendment.
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SUMMARY: The Commodity Credit Corporation (CCC) is amending the
regulations for the Tobacco Transition Program (TTP) to clarify the
final administrative actions required for the orderly close-out of the
program. Through the Tobacco Transition Payment Program (TTPP), which
is part of the TTP, eligible former tobacco quota holders and producers
of quota tobacco receive payments from funds that CCC collects through
quarterly assessments on domestic manufacturers and importers of
tobacco products as required by the Fair and Equitable Tobacco Reform
Act of 2004 (FETRA). This rule clarifies final dates and deadlines for
the assessments and related program actions, including when CCC will
make any final revisions to the quarterly assessments, when
documentation is required for administrative appeals filed after FY
2014, when final appeals may be filed, and when CCC decisions on final
appeals will take place.
DATES: Effective date: April 9, 2014.
FOR FURTHER INFORMATION CONTACT: Darlene Soto; telephone: (202) 720-
0542. Persons with disabilities who require alternative means for
communications (Braille, large print, audio tape, etc.) should contact
the USDA Target Center at (202) 720-2600 (voice and TDD).
SUPPLEMENTARY INFORMATION:
Background
The TTP regulations are specified in 7 CFR part 1463. TTP was
authorized by Title VI of the American Jobs Creation Act of 2004 (Pub.
L. 108-357). Title VI is also known as FETRA (7 U.S.C. 518-519a). FETRA
repeals the tobacco marketing quota and related price support programs
authorized by Title III of the Agricultural Adjustment Act of 1938 and
by the Agricultural Act of 1949, and provides for payments to persons
who were owners of farms with tobacco quotas (referred to as tobacco
quota holders), or who were producers of quota tobacco. The payments
end in calendar year 2014. As specified in FETRA, TTPP uses funds from
assessments collected quarterly on domestic tobacco manufacturers and
importers (also referred to here as ``entities'') to make the payments
referred to above.
Administrative support for the assessment portion of TTP will end
in March 2016. Therefore, CCC needs to clarify a few final procedures
and dates for the orderly close-out of the program. This rule clarifies
administrative issues about how assessments and appeals will be handled
after FY 2014. Specifically:
Procedures and dates for issuance of final revised, or
``trued,'' quarterly assessment revisions;
When supporting documents are required for administrative
appeals filed after FY 2014;
Final dates for filing appeals; and
When final CCC decisions on appeals will take place.
All the changes in this rule are administrative in nature; the basic
procedures for assessments and appeals are not changing with this rule.
This rule simply amends the regulations to specify the final dates for
appeals and submission of supporting documents for appeals, and the
final appeals procedures, including clarifying the address to which
appeals and supporting documents must be sent. Those final dates and
procedures will be added to 7 CFR 1463.11, ``Appeals and Judicial
Review.'' The dates and procedures for final revisions to the
assessments are clarified in this document, but do not require any
change to the regulations.
Additional clarifying information about final assessment procedures
and other actions for the close-out of TTPP was provided in a notice
published in the Federal Register on August 2, 2013 [78 FR 46905].
Issuance of Final Revised, or ``Trued,'' Quarterly Assessment Revisions
After the end of each fiscal year, CCC requests tobacco import and
tax data from the U.S. Department of Treasury's Alcohol and Tobacco Tax
and Trade Bureau, and the U.S. Department of Homeland Security's
Customs and Border Protection. CCC uses this data to determine any
errors or omissions in the data it used to calculate the TTP
assessments, identify and assess non-reporting entities, finalize the
payments to tobacco quota holders or persons who were producers of
quota tobacco, and compute the borrowed daily net interest amount. CCC
then determines any necessary changes to entities' market shares for
all four quarters of the fiscal year and issues final revised, or
``trued,'' assessments. The revisions are typically issued on June 1
after a given fiscal year. For example, FY 2014's final revised, or
``trued,'' assessments will be issued on June 1, 2015.
Occasionally, a second assessment revision, i.e., a revision of
what has been referred to here as the ``final revised'' assessment, is
needed, due to data updates or reporting errors. For FY 2005-2010,
second assessment revisions, or ``second trued'' assessments, have
already been calculated and issued to all entities, taking into account
reporting errors which required correction. Assessments for FY2011-
FY2014 may require a ``second trued'' assessment. If necessary, CCC
will make any necessary revisions for all ten fiscal years and issue
revised assessments on or before December 1, 2015. After that date,
there will be no revised assessments for any fiscal years issued.
Final Appeals Documentation Required Within 30 Days
As specified in 7 CFR 1463.11, entities have 30 business days after
receiving notice of an assessment or other decision, to submit a
written statement appealing that determination, including any dispute
about the amount of the determination. That is not changing with this
rule. However, the previous version of the regulation did not specify a
timeframe within which entities are required to provide supporting
documentation to CCC to support an appeal. Accordingly, this rule
amends 7 CFR 1463.11 to clarify that for appeals filed after October 1,
2014, appellants have 30 calendar days after submission of the written
statement of appeal to CCC to provide any supporting documentation to
CCC. Any documents received after that time will not be considered by
the hearing officer. This clarification is necessary for an orderly end
to the program.
This 30 calendar day window to provide supporting documentation
only applies to appeals made after October 1, 2014, regardless of the
date of the relevant assessment. For example, if CCC issues an entity
its March 2014 final revised, or ``trued'' assessment, on June 1, 2015,
and that entity files an appeal of that trued assessment with CCC on
July 10, 2015, then that entity will have 30 calendar days thereafter--
or until August 9, 2015--to provide any supporting documentation,
either as requested by CCC or as the company deems relevant. In all
cases, CCC will render an administrative determination within 30
calendar days after receiving the supporting documentation. In the
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event CCC has not rendered a decision in such time, all administrative
remedies available to the appellant will be deemed to be exhausted. In
this example, CCC would make a ruling on the appeal by September 8,
2015.
Appeals must be submitted to the address specified in 7 CFR
1463.11(a), which is clarified in this rule to provide the current room
number of the TTPP staff.
Final Dates for All Appeals
This rule amends 7 CFR 1463.11 to specify the final dates for
appeals and other actions. It specifies that the final date that
entities may file an administrative appeal is January 14, 2016; that is
30 business days after CCC will issue any last revised assessments.
Notice and Comment
These regulations are exempt from the notice and comment
requirements of the Administrative Procedure Act (5 U.S.C. 553), as
specified in section 642(b) of FETRA (Pub. L. 108-357), which requires
that the regulations are to be promulgated without regard to the notice
and comment provisions of 5 U.S.C. 553 or the Statement of Policy of
the Secretary of Agriculture effective July 24, 1971, (36 FR 13804)
relating to notice and comment rulemaking and public participation in
rulemaking. These regulations are therefore issued as final.
Executive Order 12866 and 13563
Executive Order 12866, ``Regulatory Planning and Review,'' and
Executive Order 13563, ``Improving Regulation and Regulatory Review,''
direct agencies to assess all costs and benefits of available
regulatory alternatives and, if regulation is necessary, to select
regulatory approaches that maximize net benefits (including potential
economic, environmental, public health and safety effects, distributive
impacts, and equity). Executive Order 13563 emphasized the importance
of quantifying both costs and benefits, reducing costs, harmonizing
rules, and promoting flexibility. This rule is a technical amendment,
which is administrative in nature and is not expected to have costs or
benefits. This technical amendment did not require Office of Management
and Budget (OMB) designation under Executive Order 12866, ``Regulatory
Planning and Review,'' and therefore OMB has not reviewed this rule.
Regulatory Flexibility Act
The Regulatory Flexibility Act (5 U.S.C. 601-612), as amended by
the Small Business Regulatory Enforcement Fairness Act of 1996
(SBREFA), generally requires an agency to prepare a regulatory
flexibility analysis of any rule subject to the notice and comment
rulemaking requirements under the Administrative Procedure Act (5
U.S.C. 553) or any other statute, unless the agency certifies that the
rule will not have a significant economic impact on a substantial
number of small entities. This rule is not subject to the Regulatory
Flexibility Act because CCC is not required by any law to publish a
proposed rule for public comments on this rule.
Environmental Review
The environmental impacts of this final rule have been considered
in a manner consistent with the provisions of the National
Environmental Policy Act (NEPA, 42 U.S.C. 4321-4347), the regulations
of the Council on Environmental Quality (40 CFR parts 1500-1508), and
the FSA regulations for compliance with NEPA (7 CFR part 799). FSA has
determined that the provisions identified in this final rule are
administrative in nature, intended to ensure the orderly close-out of
the program, and do not constitute a major Federal action that would
significantly affect the quality of the human environment, individually
or cumulatively. Therefore, FSA will not prepare an environmental
assessment or environmental impact statement.
Executive Order 12372
Executive Order 12372, ``Intergovernmental Review of Federal
Programs,'' requires consultation with State and local officials. The
objectives of the Executive Order are to foster an intergovernmental
partnership and a strengthened Federalism, by relying on State and
local processes for State and local government coordination and review
of proposed Federal Financial assistance and direct Federal
development. For reasons specified in the Notice to 7 CFR part 3015,
subpart V (48 FR 29115, June 24, 1983), the programs and activities
within this rule are excluded from the scope of Executive Order 12372
which requires intergovernmental consultation with State and local
officials.
Executive Order 12988
This rule has been reviewed under Executive Order 12988, ``Civil
Justice Reform.'' This rule will not preempt State or local laws,
regulations, or policies unless they represent an irreconcilable
conflict with this rule. The rule will not have retroactive effect.
Executive Order 13132
This rule has been reviewed under Executive Order 13132,
``Federalism.'' The policies contained in this rule do not have any
substantial direct effect on States, on the relationship between the
Federal government and the States, or on the distribution of power and
responsibilities among the various levels of government, except as
required by law. Nor does this rule impose substantial direct
compliance costs on State and local governments. Therefore,
consultation with the States is not required.
Executive Order 13175
This rule has been reviewed for compliance with Executive Order
13175, ``Consultation and Coordination With Indian Tribal
Governments.'' This Executive Order imposes requirements on the
development of regulatory policies that have Tribal implications or
preempt Tribal laws. The policies contained in this rule do not preempt
Tribal law.
The policies contained in this rule do not, to our knowledge,
impose substantial unreimbursed direct compliance costs on Indian
Tribal governments, have Tribal implications, or preempt Tribal law.
USDA continues to consult with Tribal officials to have a meaningful
consultation and collaboration on the development and strengthening of
USDA regulations. USDA will respond in a timely and meaningful manner
to all Tribal government requests for consultation concerning this rule
and will provide additional venues, such as Webinars and
teleconferences, to periodically host collaborative conversations with
Tribal leaders and their representatives concerning ways to improve
this rule in Indian country.
The Unfunded Mandates Reform Act of 1995
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA, Pub. L.
104-4) requires Federal agencies to assess the effects of their
regulatory actions on State, local, and Tribal governments or the
private sector. Agencies generally must prepare a written statement,
including a cost benefit analysis, for proposed and final rules with
Federal mandates that may result in expenditures of $100 million or
more in any 1 year for State, local, or Tribal governments, in the
aggregate, or to the private sector. UMRA generally requires agencies
to consider alternatives and adopt the more cost effective or least
burdensome alternative that achieves the objectives of the rule.
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This rule contains no Federal mandates, as defined in Title II of UMRA,
for State, local, and Tribal governments or the private sector.
Therefore, this rule is not subject to the requirements of sections 202
and 205 of UMRA.
Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA)
This rule is not a major rule under the Small Business Regulatory
Enforcement Fairness Act of 1996, (Pub. L. 104-121, SBREFA). Therefore,
CCC is not required to delay the effective date for 60 days from the
date of publication to allow for Congressional review. Accordingly,
this rule is effective on the date of publication in the Federal
Register.
Federal Assistance Programs
The title and number of the Federal Domestic Assistance Program
found in the Catalog of Federal Domestic Assistance to which this rule
applies is Tobacco Transition Payment Program --10.085.
Paperwork Reduction Act
These regulations are exempt from the requirements of the Paperwork
Reduction Act (44 U.S.C. Chapter 35), as specified in section 642 of
Public Law 108-357 (7 U.S.C. 519a), which provides that these
regulations, which are necessary to implement TTPP, be promulgated and
administered without regard to the Paperwork Reduction Act.
E-Government Act Compliance
CCC is committed to complying with the E-Government Act, to promote
the use of the Internet and other information technologies to provide
increased opportunities for citizen access to Government information
and services, and for other purposes.
List of Subjects in 7 CFR Part 1463
Agriculture, Agricultural commodities, Acreage allotments,
Marketing quotas, Price support programs, Tobacco, Tobacco transition
payments.
For the reasons discussed in the preamble, CCC amends 7 CFR part
1463 as follows:
PART 1463--2005-2014 TOBACCO TRANSITION PROGRAM
0
1. The authority citation for part 1463 continues to read as follows:
Authority: 7 U.S.C. 518-519a, 714b, and 714c.
Subpart A--Tobacco Transition Assessments
0
2. Amend Sec. 1463.11 by revising paragraphs (a) and (c) to read as
follows:
Sec. 1463.11 Appeals and judicial review.
(a) An entity may appeal any adverse determination made under this
subpart, including with respect to the amount of the assessment, by
submitting a written statement that sets forth the basis of the dispute
to Darlene Soto, Tobacco Transition Assessment Program Manager, U.S.
Department of Agriculture, 1400 Independence Avenue SW., Room 3722,
Mail Stop 0515, Washington DC 20250-0514, within 30 business days of
the date of receipt of the notification by CCC of its determination.
* * * * *
(c) For any appeals filed after October 1, 2014, appellants must
submit all supporting documentation within 30 calendar days following
the date of the initial written appeal to CCC. Any documents received
after that time will not be considered by the hearing officer.
(1) The final date that entities may file an appeal is January 14,
2016.
(2) If 30 calendar days elapse following receipt by CCC of the
final submission of supporting documentation by an appellant with
respect to any appeal filed under this section regarding an assessment
imposed on a domestic manufacturer or importer of tobacco products,
without a final administrative decision by CCC, then all administrative
remedies available to the appellant will be deemed to be exhausted;
except, if the 30th calendar day would fall on a weekend day or federal
holiday, then the 30th calendar day will be deemed the next business
day following such weekend day or federal holiday.
* * * * *
Signed on April 3, 2014.
Juan M. Garcia,
Administrator, Farm Service Agency, and Executive Vice President,
Commodity Credit Corporation.
[FR Doc. 2014-07979 Filed 4-8-14; 8:45 am]
BILLING CODE 3410-05-P