[Federal Register Volume 79, Number 155 (Tuesday, August 12, 2014)]
[Rules and Regulations]
[Pages 46961-46964]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-19029]



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 Rules and Regulations
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  Federal Register / Vol. 79, No. 155 / Tuesday, August 12, 2014 / 
Rules and Regulations  

[[Page 46961]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1260

[No. AMS-LPS-13-0079]


Beef Promotion and Research; Reapportionment

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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

SUMMARY: This rule adjusts representation on the Cattlemen's Beef 
Promotion and Research Board (Board), established under the Beef 
Promotion and Research Act of 1985 (Act), to reflect changes in cattle 
inventories as well as cattle and beef imports that have occurred since 
the most recent Board reapportionment rule became effective in July 
2011. These adjustments are required by the Beef Promotion and Research 
Order (Order) and result in a decrease in Board membership from 103 to 
100, effective with the U.S. Department of Agriculture's (USDA) 
appointments for terms beginning early in the year 2015. The rule also 
makes technical amendments to update and correct information in the 
Order and regulations.

DATES: Effective August 13, 2014.

FOR FURTHER INFORMATION CONTACT: Angie Snyder, Research and Promotion 
Division, on 202-720-5705, fax 202-720-1125, or by email at 
[email protected].

SUPPLEMENTARY INFORMATION: 

Executive Order 12866 and Executive Order 13563

    Executive Orders 12866 and 13563 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 emphasizes the importance of quantifying both costs and 
benefits, reducing costs, harmonizing rules, and promoting flexibility. 
This action has been designated as a ``non-significant regulatory 
action'' under Sec.  3(f) of Executive Order 12866. Accordingly, the 
Office of Management and Budget (OMB) has waived the review process.

Executive Order 12988

    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. It is not intended to have retroactive effect.
    Section 11 of the Act provides that nothing in the Act may be 
construed to preempt or supersede any other program relating to beef 
promotion organized and operated under the laws of the United States or 
any State. There are no administrative proceedings that must be 
exhausted prior to any judicial challenge to the provisions of this 
rule.

Executive Order 13175

    This rule has been reviewed in accordance with the requirements of 
Executive Order 13175, Consultation and Coordination with Indian Tribal 
Governments. The review reveals that this rule would not have 
substantial and direct effects on Tribal Governments and would not have 
significant tribal implications.

Regulatory Flexibility Act and Paperwork Reduction Act

    Pursuant to the requirements set forth in the Regulatory 
Flexibility Act (RFA) (5 U.S.C. 601-612), the Administrator of the 
Agricultural Marketing Service (AMS) has considered the economic effect 
of this action on small entities and has determined that this rule will 
not have a significant economic impact on a substantial number of small 
entities. The purpose of RFA is to fit regulatory actions to the scale 
of businesses subject to such actions in order that small businesses 
will not be unduly burdened.
    In the February 2013 publication of ``Farms, Land in Farms, and 
Livestock Operations,'' USDA's National Agricultural Statistics Service 
(NASS) estimates that the number of operations in the United States 
with cattle in 2012 totaled approximately 915,000, down from 950,000 in 
2009. The majority of these operations that are subject to the Order 
may be classified as small entities. There are approximately 25 
importers who import beef or edible beef products into the United 
States and 297 importers who import live cattle into the United States. 
It is estimated that the majority of these operations subject to the 
Order are considered small businesses under the criteria established by 
the Small Business Administration (SBA) [13 CFR 121.201]. SBA defines 
small agricultural service firms as those having annual receipts of 
$7.0 million or less, and small agricultural producers are defined as 
those having annual receipts of less than $750,000.
    The rule imposes no new burden on the industry. It only adjusts 
representation on the Board to reflect changes in domestic cattle 
inventory, as well as changes in cattle and beef imports. The 
adjustments are required by the Order and result in a decrease in Board 
membership from 103 to 100.
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the information collection and recordkeeping requirements 
imposed under part 1260 were previously approved under OMB control 
number 0581-0093.

Background

    The Board was initially appointed August 4, 1986, pursuant to the 
provisions of the Act (7 U.S.C. 2901-2911) and the Order issued 
thereunder. Domestic representation on the Board is based on cattle 
inventory numbers, and importer representation is based on the 
conversion of the volume of imported cattle, beef, or beef products 
into live animal equivalencies.

Reapportionment

    Section 1260.141(b) of the Order provides that the Board shall be 
composed of cattle producers and importers appointed by the Secretary 
of Agriculture from nominations submitted by certified producer and 
importer organizations. A producer may only be nominated to represent 
the State or unit in which that producer is a resident.
    Section 1260.141(c) of the Order provides that at least every 3 
years and not more than every 2 years, the Board shall review the 
geographic distribution of cattle inventories throughout the United 
States and the volume of imported cattle, beef, and beef products

[[Page 46962]]

and, if warranted, shall reapportion units and/or modify the number of 
Board members from units in order to reflect the geographic 
distribution of cattle production volume in the United States and the 
volume of cattle, beef, or beef products imported into the United 
States.
    Section 1260.141(d) of the Order authorizes the Board to recommend 
to USDA modifications to the number of cattle per unit necessary for 
representation on the Board.
    Section 1260.141(e)(1) provides that each geographic unit or State 
that includes a total cattle inventory equal to or greater than 500,000 
head of cattle shall be entitled to one representative on the Board. 
Section 1260.141(e)(2) provides that States that do not have total 
cattle inventories equal to or greater than 500,000 head shall be 
grouped, to the extent practicable, into geographically-contiguous 
units, each of which have a combined total inventory of not less than 
500,000 head. Such grouped units are entitled to at least one 
representative on the Board. Each unit that has an additional 1 million 
head of cattle within a unit qualifies for additional representation on 
the Board as provided in Sec.  1260.141(e)(4). As provided in Sec.  
1260.141(e)(3), importers are represented by a single unit, with the 
number of Board members based on a conversion of the total volume of 
imported cattle, beef, or beef products into live animal equivalencies.
    The initial Board appointed in 1986 was composed of 113 members. 
Reapportionment, based on a 3-year average of cattle inventory numbers 
and import data, reduced the Board to 111 members in 1990 and 107 
members in 1993 before the Board was increased to 111 members in 1996. 
The Board was decreased to 110 members in 1999, 108 members in 2001, 
and 104 members in 2005; increased to 106 members in 2009; and 
decreased to 103 members in 2011. This proposal amends Sec.  
1260.141(a) by decreasing the number of Board members from 103 to 100 
with appointments for terms effective early in 2015.
    The current Board representation by States or units was based on an 
average of the January 1, 2008, 2009, and 2010 inventory of cattle in 
the various States as reported by NASS. Current importer representation 
was based on a combined total average of the 2007, 2008, and 2009 live 
cattle imports as published by USDA's Foreign Agricultural Service and 
the average of the 2007, 2008, and 2009 live animal equivalents for 
imported beef products.
    In considering reapportionment, the Board reviewed cattle 
inventories for the period of January 1, 2011, 2012, and 2013 as well 
as cattle, beef, and beef product import data for the period of January 
1, 2010, to December 31, 2012. The Board recommended that a 3-year 
average of cattle inventories and import numbers should be continued. 
The Board determined that an average of the January 1, 2011, 2012, and 
2013 cattle inventory numbers would best reflect the number of cattle 
in each State or unit since publication of the last reapportionment 
rule published in 2011 (76 FR 42012). The Board reviewed data published 
by USDA's Economic Research Service to determine proper importer 
representation. The Board recommended the use of a combined total of 
the average of the 2010, 2011, and 2012 cattle import data and the 
average of the 2010, 2011, and 2012 live animal equivalents for 
imported beef products. The method used to calculate the total number 
of live animal equivalents was the same as that used in the previous 
reapportionment of the Board. The live animal equivalent weight was 
changed in 2006 from 509 pounds to 592 pounds (71 FR 47074).
    As discussed in the proposed rule, the Board's recommended 
reapportionment plan would have decreased the number of representatives 
on the Board from 103 to 99. Based on the Board's recommendation, New 
Mexico would lose one Board seat and Texas would lose two Board seats. 
The Importer Unit loses one Board seat. This final rule, however, 
results in Texas losing one Board seat.
    The States and units affected by the reapportionment plan and the 
current and revised representation per unit are as follows:

------------------------------------------------------------------------
                                              Current         Revised
               State/unit                 representation  representation
------------------------------------------------------------------------
New Mexico..............................              2               1
Texas...................................             14              13
Importers...............................              7               6
------------------------------------------------------------------------

    The Board reapportionment takes effect with appointments that will 
be made to fill positions beginning January 1, 2015.

Technical Amendments

    A number of technical amendments are being made to update or 
correct information contained in the provisions of the Order and 
regulations. These include:
    Section 1260.129 references the U.S. Customs Service of the U.S. 
Department of the Treasury. The language has been amended to reflect 
the updated agency and department.
    Section 1260.312(4)(c) has been amended to update an outdated 
address.
    Section 1260.316 has been amended to reflect the correct OMB 
paperwork reduction number.

Comments

    USDA published the proposed rule for public comment in the March 
25, 2014, Federal Register [79 FR 16236]. The comment period ended 
April 24, 2014. USDA received two comments by the deadline. One comment 
from an individual was outside the scope of the rulemaking.
    Another comment, submitted jointly by eight Texas cattle, dairy, 
and farm associations, was against Texas losing two member positions 
because the 3-year average reflects a loss of cattle numbers due to a 
severe drought. With many regions of the State beginning to return to 
more normal precipitation and pasture conditions, the commenters 
argued, plus record cattle prices encouraging heifer retention and herd 
rebuilding, cattle numbers in Texas will increase in the next 1 or 2 
years.
    In response, USDA agrees that the drought and other factors 
affected cattle inventory across the country but in Texas in 
particular. In addition, based upon available information USDA has 
concluded that Texas cattle herds will increase due to beneficial 
environmental and economic conditions. In addition, reports indicate 
that cattle will be moving into Texas from other States. Therefore, by 
the time the Board is seated in February 2015 when this reapportionment 
would actually take effect, cattle numbers in Texas should increase to 
a level to warrant the loss of only one Board member position in Texas 
rather than two as proposed. As a result, USDA is decreasing the number 
of Board members in Texas to 13 rather than 12, as proposed.
    Pursuant to 5 U.S.C. 553, it is found that good cause exists for 
not postponing the effective date of this action until 30 days after 
the publication in the Federal Register because this action needs to be 
in effect as soon as possible to allow sufficient time for completion 
of the nomination process and appointments for the term of office 
beginning February 2015.

List of Subjects in 7 CFR Part 1260

    Administrative practice and procedure, Advertising, Agricultural 
research, Imports, Marketing agreement, Meat and meat products, 
Reporting and recordkeeping requirements.

    For reasons set forth in the preamble, 7 CFR part 1260 is amended 
as follows:

[[Page 46963]]

PART 1260--BEEF PROMOTION AND RESEARCH

0
1. The authority citation for 7 CFR part 1260 continues to read as 
follows:

    Authority: 7 U.S.C. 2901-2911 and 7 U.S.C. 7401.

0
2. Revise Sec.  1260.129 to read as follows:


Sec.  1260.129  Customs Service.

    Customs Service means the United States Customs and Border 
Protection of the United States Department of Homeland Security.

0
3. In Sec.  1260.141, paragraph (a) is revised to read as follows:


Sec.  1260.141  Membership of Board.

    (a) Beginning with the 2014 Board nominations and the associated 
appointments effective early in the year 2015, the United States shall 
be divided into 37 geographical units and, 1 unit representing 
importers, for a total of 38 units. The number of Board members from 
each unit shall be as follows:

                          Cattle and Calves \1\
------------------------------------------------------------------------
               State/Unit                  (1,000 head)      Directors
------------------------------------------------------------------------
1. Arizona..............................             897               1
2. Arkansas.............................           1,663               2
3. Colorado.............................           2,667               3
4. Florida..............................           1,667               2
5. Idaho................................           2,270               2
6. Illinois.............................           1,097               1
7. Indiana..............................             840               1
8. Iowa.................................           3,883               4
9. Kansas...............................           6,083               6
10. Kentucky............................           2,193               2
11. Louisiana...........................             787               1
12. Michigan............................           1,107               1
13. Minnesota...........................           2,377               2
14. Mississippi.........................             920               1
15. Missouri............................           3,833               4
16. Montana.............................           2,533               3
17. Nebraska............................           6,317               6
18. New Mexico..........................           1,423               1
19. New York............................           1,403               1
20. North Carolina......................             810               1
21. North Dakota........................           1,727               2
22. Ohio................................           1,247               1
23. Oklahoma............................           4,600               5
24. Oregon..............................           1,303               1
25. Pennsylvania........................           1,610               2
26. South Dakota........................           3,733               4
27. Tennessee...........................           1,930               2
28. Texas...............................          12,167              13
29. Utah................................             790               1
30. Virginia............................           1,547               2
31. Wisconsin...........................           3,433               3
32. Wyoming.............................           1,317               1
33. Northwest...........................                               1
    Alaska..............................              13
    Hawaii..............................             138
    Washington..........................           1,117
        Total...........................           1,267
34. Northeast...........................                               1
    Connecticut.........................              49
    Delaware............................              18
    Maine...............................              87
    Massachusetts.......................              40
    New Hampshire.......................              34
    New Jersey..........................              31
    Rhode Island........................               5
    Vermont.............................             267
        Total...........................             531
35. Mid-Atlantic........................                               1
    Maryland............................             196
    West Virginia.......................             390
        Total...........................             586
36. Southeast...........................                               3
    Alabama.............................           1,220
    Georgia.............................           1,023
    South Carolina......................             370
        Total...........................           2,613
37. Southwest...........................                               6
    California..........................           5,283
    Nevada..............................             463
        Total...........................           5,747

[[Page 46964]]

 
38. Importer \2\........................           5,927               6
------------------------------------------------------------------------
\1\ 2011, 2012, and 2013 average of January 1 cattle inventory data.
\2\ 2010, 2011, and 2012 average of annual import data.

* * * * *

0
4. In Sec.  1260.312, paragraph (c) is revised to read as follows:


Sec.  1260.312  Remittance to the Cattlemen's Board or Qualified State 
Beef Council.

* * * * *
    (c) Remittances. The remitting person shall remit all assessments 
to the qualified State beef council or its designee, or if there is no 
qualified State beef council, to the Cattlemen's Board at P.O. Box 
803834, Kansas City, MO 64180-3834, with the report required in 
paragraph (a) of this section not later than the 15th day of the 
following month. All remittances sent to a qualified State beef council 
or the Cattlemen's Board by the remitting persons shall be by check or 
money order payable to the order of the qualified State beef council or 
the Cattlemen's Board. All remittances shall be received subject to 
collection and payment at par.

0
5. Section 1260.316 is revised to read as follows:


Sec.  1260.316  Paperwork Reduction Act assigned number.

    The information collection and recordkeeping requirements contained 
in this part have been approved by the Office of Management and Budget 
(OMB) under the provisions of 44 U.S.C. Chapter 35 and have been 
assigned OMB control number 0581-0093.

    Dated: August 7, 2014.
Rex A. Barnes,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2014-19029 Filed 8-11-14; 8:45 am]
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