`[Federal Register Volume 65, Number 113 (Monday, June 12, 2000)]
[Rules and Regulations]
[Pages 36781-36782]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-14730]



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  Federal Register / Vol. 65, No. 113 / Monday, June 12, 2000 / Rules 
and Regulations  

[[Page 36781]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 29

[Docket No. TB-99-10]
RIN 0581-AB65


Tobacco Inspection; Subpart B--Regulations

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: The Agricultural Marketing Service (AMS) is adopting, as a 
final rule, with changes, an interim final rule revising the 
regulations governing permissive inspection of tobacco that special 
tests and services be provided by AMS, as requested by the industry. 
This action incorporates recommendations made by the Burley Tobacco 
Advisory Committee and the buying segment of the tobacco industry that 
moisture testing be performed by AMS on all burley tobacco marketed 
during the 1999-2000 marketing season. The revisions will continue to 
provide regulatory authority to conduct moisture testing and collect 
fees and charges for these services.

EFFECTIVE DATE: July 12, 2000.

FOR FURTHER INFORMATION CONTACT: John P. Duncan III, Deputy 
Administrator, Tobacco Programs, Agricultural Marketing Service (AMS), 
United States Department of Agriculture (USDA), Room 502 Annex 
Building, P.O. Box 96456, Washington, DC 20090-6456; or Fax: (202) 205-
0235.

SUPPLEMENTARY INFORMATION: The Department published in the Federal 
Register on December 2, 1999 (64 FR 67469) an interim final rule 
amending the regulations at 7 CFR part 29, subpart B. The Department 
requested comments on the regulation. The comment period expired on 
January 31, 2000, and AMS received no comments on the amendments.
    This final rule revises the regulations governing the permissive 
inspection of tobacco pursuant to the provisions of the Tobacco 
Inspection Act (49 Stat. 741, 7 U.S.C. 511 et seq.).
    The Burley Tobacco Advisory Committee made a recommendation at its 
June 10, 1999, meeting that AMS conduct moisture testing on all burley 
tobacco offered for sale at designated auction markets. The 
recommendation was contingent on successful price negotiations between 
the buying segment and burley tobacco warehouse operators. The 
committee further recommended that tobacco marketed in an experimental 
unitized package be turned 90 degrees within the row as a condition of 
the testing process.
    During the 1998-99 marketing season, approximately 60 million 
pounds of burley tobacco was sold in the experimental unitized package 
and tested for moisture content by the warehouse operators. The 
unitized bale is a new experimental package consisting of an even 
number of traditional burley bales with one additional bale opened and 
evenly arranged on top which is securely bound with metal wires to form 
a rectangular cube.
    Due to integrity issues between the buying and warehouse segments 
of the industry, it was recommended that a third party entity perform 
the moisture testing. After three months of discussions and 
negotiations by the buying segment and the Burley Auction Warehouse 
Association, representing 95 percent of burley tobacco warehouse 
operators, a commitment was obtained from the four major tobacco 
companies purchasing burley tobacco to reimburse AMS $.0020 per pound 
for providing moisture testing services. These testing services were 
conducted on all burley tobacco during the 1999-2000 marketing season, 
including the traditional lot consisting of a maximum of eight bales 
and the experimental unitized package, offered for sale at designated 
markets.
    Therefore, at the recommendation of the Burley Tobacco Advisory 
Committee and the buying segment of the tobacco industry, the 
Department implemented revised regulations to conduct special testing 
services for interested parties and charge fees to recover the costs of 
providing the service as determined by the Deputy Administrator, 
Tobacco Programs.
    This rule has been determined to be ``non significant'' for 
purposes of Executive Order 12866, and therefore, has not be reviewed 
by the Office of Management and Budget.
    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. This action is not intended to have retroactive effect. 
This rule will not preempt any State or local laws, regulations, or 
policies, unless they present an irreconcilable conflict with this 
rule. There are no administrative procedures which must be exhausted 
prior to any judicial challenge to the provisions of this rule.
    Additionally, in conformance with the provisions of the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.), full consideration has been 
given to the potential economic impact upon small business. All tobacco 
warehouses and producers fall within the confines of ``small business'' 
which are defined by the Small Business Administration (13 CFR 121.201) 
as those having annual receipts of less than $500,000 and small 
agricultural service firms are defined as those whose annual receipts 
are less than $3,500,000. There are approximately 190 tobacco 
warehouses and approximately 30,000 producers and most warehouses and 
producers may be classified as small entities. The Agricultural 
Marketing Service has determined that this action will not have a 
significant economic impact on a substantial number of small entities 
because the fees are not mandatory but apply only when special 
inspections or services are requested. This rule continues revisions 
that amended the regulation governing the permissive inspection of 
tobacco to conduct special testing services for interested parties and 
charge fees to recover the costs of providing the service as determined 
by the Deputy Administrator, Tobacco Programs.
    The rule is changed slightly to make it clearer that the amount of 
the fees for special tests and services will be determined by 
agreement.

Lists of Subjects in 7 CFR Part 29

    Administrative practice and procedure, Advisory committees, 
Government publications, Imports, Pesticides and pests, Reporting and 
recordkeeping requirements, Tobacco.

[[Page 36782]]


    Accordingly, the interim final rule amending 7 CFR part 29 which 
was published at 64 FR 67469 on December 2, 1999, is adopted as a final 
rule with the following changes:

PART 29--TOBACCO INSPECTION

Subpart B--Permissive Inspection

    1. The authority citation for 7 CFR part 29, subpart B, continues 
to read as follows:

    Authority: 7 U.S.C. 511m and 511r.


    2. Section 29.56 is amended by revising the last sentence to read 
as follows:


Sec. 29.56  Permissive inspection.

    * * * Special tests and services may be performed for interested 
persons to the extent that available facilities will permit, subject to 
the payment of fees as provided in Sec. 29.123.

    3. In Sec. 29.123, paragraph (e) is revised to read as follows:


Sec. 29.123  Fees and charges.

* * * * *
    (e) Fees for special tests and services will be determined by 
agreement between the Deputy Administrator, Tobacco Programs, and the 
applicant or applicants for service.

    Dated: June 6, 2000.
Kathleen A. Merrigan,
Administrator, Agricultural Marketing Service.
[FR Doc. 00-14730 Filed 6-9-00; 8:45 am]
BILLING CODE 3410-02-P`