Federal Register / Vol. 62, No. 157 / Thursday, August 14, 1997 / Rules and Regulations 43455

Act (7 U.S.C. 499 et seq.), as amended.

USDA is issuing this final rule in

conformance with Executive Order

12866.

This final rule has been reviewed

under Executive Order 12988, Civil

Justice Reform. It is not intended to

have retroactive effect. The final 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.

Regulatory Flexibility Act

Pursuant to requirements set forth in

the Regulatory Flexibility Act (RFA) (5

U.S.C. 601 et seq.), USDA has

considered the economic 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 in order that small businesses

will not be unduly or disproportionately

burdened. Small agricultural service

firms have been defined by the Small

Business Administration (13 CFR

121.601) as those whose annual receipts

are less than $5,000,000. The PACA

requires that wholesalers, processors,

food service companies, grocery

wholesalers, and truckers be considered

dealers and subject to a license when

they buy or sell more than 2,000 pounds

of fresh and/or frozen fruits and

vegetables in any given day. A retailer

is considered to be a dealer and subject

to license when the invoice cost of its

perishable agricultural commodities

exceeds $230,000 in a calendar year.

Brokers negotiating the sale of frozen

fruits and vegetables on behalf of the

seller are also exempt from licensing

when the invoice value of the

transactions is below $230,000 in any

calendar year.

There are approximately 15,700

PACA licensees. Separating licensees by

the nature of business, there are

approximately 6,000 wholesalers, 4,750

retailers, 2,100 brokers, 1,200

processors, 550 commission merchants,

450 food service businesses, 150 grocery

wholesalers, and 50 truckers licensed

under PACA. The license is effective for

1 year unless suspended or revoked by

USDA for valid reasons [7 CFR 46.9 (a)–

(h)], and must be renewed annually by

the licensee. Many of the licensees may

be classified as small entities.

Approximately 650 to 700 retailers

and grocery wholesalers who made an

initial license application after

November 15, 1995, and subsequently

paid a fee to renew their license, will be

affected by this rule. The renewal fees

collected by USDA from each of the

affected retailers and grocery

wholesalers ($300, plus $150 for each

branch in excess of nine) will be

refunded with interest.

Accordingly, based on the

information and the above discussion, it

is determined that the provisions of this

rule would not have a significant

economic impact on a substantial

number of small entities.

Paperwork Reduction Act

In compliance with Office of

Management and Budget (OMB)

regulations (5 CFR part 1320) which

implement the Paperwork Reduction

Act of 1995 (Pub. L. 104–13), the

information collection and

recordkeeping requirements covered by

this proposed rule were approved by

OMB on October 31, 1996, and expire

on October 31, 1999.

List of Subjects in 7 CFR Part 46

Agricultural commodities, Brokers,

Penalties, Reporting and record keeping

requirements.

For the reasons set forth in the

preamble, 7 CFR part 46 is amended as

follows:

PART 46—[AMENDED]

1. The authority citation for part 46

continues to read as follows:

Authority: Sec. 15, 46 Stat. 537; 7 U.S.C.

499o.

2. Section 46.6 is revised to read as

follows:

§ 46.6 License fees.

(a) For retailers and grocery

wholesalers making an initial

application for license, the license fee is

as follows:

(1) During the period November 15,

1995 through November 14, 1996, the

license fee is $400 plus $200 dollars for

each branch or additional business

facility operated by the applicant in

excess of nine. In no case shall the

aggregate annual fees paid by any

retailer or grocery wholesaler during

such period exceed $4,000.

(2) The license fee during the period

November 15, 1996 through November

14, 1997, is $300 plus $150 for each

branch or additional business facility

operated by the retailer or grocery

wholesaler in excess of nine. In no case

shall the aggregate fees paid by any

retailer or grocery wholesaler during

such period exceed $3,000.

(3) The license fee during the period

November 15, 1997 through November

14, 1998, is $200 plus $100 for each

branch or additional business facility

operated by any retailer or grocery

wholesaler in excess of nine. In no case

shall the aggregate fees paid by any

retailer or grocery wholesaler during

such period exceed $2,000.

(4) Any retailer or grocery wholesaler

making an initial license application

during the 3-year phase-out period shall

pay no fee for renewal of the license for

subsequent years.

(5) A retailer or grocery wholesaler

that holds a license as of November 15,

1995, shall pay the license fee required

in paragraphs (a) (1), (2), and (3) of this

section for the renewal of the license

during the phase-out period.

(6) No license fee will be required

after November 14, 1998 for making an

initial application for, or for renewal of

a license by a retailer or grocery

wholesaler. However, a retailer or

grocery wholesaler making an initial

application for a license after November

14, 1998, shall pay a $100

administrative processing fee.

(b) For commission merchants,

brokers, and dealers (other than grocery

wholesalers and retailers) the annual

license fee is $550 plus $200 dollars for

each branch or additional business

facility in excess of nine. In no case

shall the aggregate annual fees paid by

any such applicant exceed $4,000.

(c) The Director may require that fees

be paid in the form of a money order,

bank draft, cashier’s check, or certified

check made payable to ‘‘USDA–AMS’’.

Authorized representatives of the

Division may accept fees and issue

receipts.

Dated: August 8, 1997.

Robert C. Keeney,

Director, Fruit and Vegetable Division.

[FR Doc. 97–21523 Filed 8–13–97; 8:45 am]

BILLING CODE 3410–02–P

DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection

Service

7 CFR Part 301

[Docket No. 97–023–2]

Pink Bollworm Regulated Areas

AGENCY: Animal and Plant Health

Inspection Service, USDA.

ACTION: Affirmation of interim rule as

final rule.

SUMMARY: We are adopting as a final

rule, without change, an interim rule

that amended the pink bollworm

regulations by removing all or portions

of previously regulated areas in Clay,

Crittenden, and Mississippi Counties in

Arkansas; Dunklin, New Madrid, and

Pemiscot Counties in Missouri; and

Dyer and Lauderdale Counties in
43456 Federal Register / Vol. 62, No. 157 / Thursday, August 14, 1997 / Rules and Regulations

Tennessee from the list of suppressive

areas for pink bollworm. The interim

rule also removed Missouri and

Tennessee from the list of States

quarantined because of pink bollworm.

We took this action because trapping

surveys show that the pink bollworm no

longer exists in these areas. The action

was necessary to relieve unnecessary

restrictions on the interstate movement

of regulated articles from the previously

regulated areas. The interim rule also

amended the regulations by adding a

previously nonregulated portion of

Poinsett County in Arkansas to the list

of suppressive areas for pink bollworm.

The action imposed restrictions on the

interstate movement of regulated

articles from the regulated area in

Poinsett County in Arkansas, and was

necessary to prevent the interstate

movement of pink bollworm into

noninfested areas.

EFFECTIVE DATE: The interim rule was

effective on May 2, 1997.

FOR FURTHER INFORMATION CONTACT: Mr.

Gary Cunningham, Chief Operations

Officer, Program Support Staff, PPQ,

APHIS, suite 4C09, 4700 River Road

Unit 138, Riverdale, MD 20737–1236,

(301) 734–8676; or e-mail:

gcunningham@hal.aphis.usda.gov.

SUPPLEMENTARY INFORMATION:

Background

In an interim rule effective and

published in the Federal Register on

May 2, 1997 (62 FR 23943–23945,

Docket No. 97–023–1), we amended the

pink bollworm regulations in 7 CFR

301.52 through 301.52–10 by removing

all or portions of previously regulated

areas in Clay, Crittenden, and

Mississippi Counties in Arkansas;

Dunklin, New Madrid, and Pemiscot

Counties in Missouri; and Dyer and

Lauderdale Counties in Tennessee from

the list of suppressive areas for pink

bollworm in § 301.52–2a. The interim

rule also removed Missouri and

Tennessee from the list in § 301.52–2a

of States quarantined because of pink

bollworm. We took this action because

trapping surveys show that the pink

bollworm no longer exists in these

areas. The action was necessary to

relieve unnecessary restrictions on the

interstate movement of regulated

articles from these previously regulated

areas. The interim rule also amended

the regulations by adding a previously

nonregulated portion of Poinsett County

in Arkansas to the list of suppressive

areas for pink bollworm in § 301.52–2a.

The action imposed restrictions on the

interstate movement of regulated

articles from the regulated area in

Poinsett County in Arkansas, and was

necessary to prevent the interstate

movement of pink bollworm into

noninfested areas.

Comments on the interim rule were

required to be received on or before July

1, 1997. We did not receive any

comments. The facts presented in the

interim rule still provide a basis for the

rule.

This action also affirms the

information contained in the interim

rule concerning Executive Orders

12866, 12372, and 12988, and the

Paperwork Reduction Act.

Further, for this action, the Office of

Management and Budget has waived the

review process required by Executive

Order 12866.

Regulatory Flexibility Act

This rule affirms an interim rule that

amended the pink bollworm regulations

by removing all or portions of

previously regulated areas in Clay,

Crittenden, and Mississippi Counties in

Arkansas; Dunklin, New Madrid, and

Pemiscot Counties in Missouri; and

Dyer and Lauderdale Counties in

Tennessee from the list of suppressive

areas for pink bollworm. The interim

rule also removed Missouri and

Tennessee from the list of States

quarantined because of pink bollworm.

We took this action because trapping

surveys show that the pink bollworm no

longer exists in these areas. The action

was necessary to relieve unnecessary

restrictions on the interstate movement

of regulated articles from these

previously regulated areas.

In 1995, the total U.S. cotton

production was approximately 17.97

million bales of cotton and 8.12 million

tons of cotton seed. Cotton plays an

important role in the international trade

of the United States. The United States

is a net exporter of cotton. In 1995, the

United States exported approximately

9.4 million bales of cotton, while it

imported only 6,004 bales of cotton.

In order to move regulated articles

from an area regulated for pink

bollworm, the articles must either be

treated to destroy infestation; have

originated in noninfested premises in a

regulated area and have not been

exposed to infestation while within the

regulated areas; upon examination, have

been found to be free of infestation; or,

have been grown, produced,

manufactured, stored, or handled in

such manner that no infestation would

be transmitted. Cotton products

produced in the portions of Arkansas,

Missouri, and Tennessee that have been

removed from the list of regulated areas

will no longer be subject to these

requirements. The treatment costs range

approximately between $1.64 and $2.47

per bale of cotton or between $0.11 and

$0.16 per bushel of cottonseed. These

costs are minor compared to the crop

losses and increased production costs

that would result from the

establishment of pink bollworm in the

United States. For example, in 1996 the

cotton pest control costs attributable to

pink bollworm infestation were far

larger than quarantine treatment costs,

ranging between $28 and $74 per bale.

In addition, the costs of treatment

compared to the value of cotton and

cotton products is insignificant. During

1993, 1994, and 1995, the average price

per bale of cotton received by farmers

was about $315. Thus, quarantine

treatment costs, as a percentage of the

value of cotton, range between 0.5

percent and 0.8 percent.

The interim rule also amended the

regulations by adding a previously

nonregulated portion of Poinsett County

in Arkansas to the list of suppressive

areas for pink bollworm. The action

imposed restrictions on the interstate

movement of regulated articles from the

regulated area in Poinsett County in

Arkansas, and was necessary to prevent

the interstate movement of pink

bollworm into noninfested areas. In

1995, the affected counties in Arkansas,

Missouri, and Tennessee, including all

of Poinsett County, Arkansas, together

produced 1,042,120 bales of cotton and

472,210 tons of cotton seed. The portion

of Poinsett County, Arkansas, added to

the list of suppressive areas by the

interim rule produced only about 1,880

bales of cotton and 750 tons of cotton

seed in 1995. There are 4 cotton growers

in the portion of Poinsett County,

Arkansas, that was added to the list of

suppressive areas. There are 43,046

cotton producing farms in the United

States. All 4 of the cotton producing

farms in the suppressive area of Poinsett

County, Arkansas, and 97 percent of

those in the United States are

considered to be small entities by the

Small Business Administration’s (SBA)

standards (annual gross revenues of less

than $0.5 million). The average gross

income of these farms is much smaller

than the SBA’s standard of $0.5 million.

There are also 6 cotton related

commercial activities in the portion of

Poinsett County, Arkansas, that is listed

as a suppressive area (1 cotton gin, 2

equipment companies, 2 transport

companies, and 1 oil mill). All of these

are also small entities. The exact sizes

and number of entities outside the

suppressive area in Poinsett County that

could be impacted by the rule cannot be

determined at this time. We expect the

impact of this rule on affected entities

in Poinsett County to be minimal.
Federal Register / Vol. 62, No. 157 / Thursday, August 14, 1997 / Rules and Regulations 43457

Additionally, as stated previously, the

costs that would result from the

establishment of pink bollworm in the

United States are far grater than the

regulatory burden and quarantine

treatment costs imposed on affected

entities in regulated areas.

The United States plays an important

role in international trade of cotton.

Losses in cotton produced, or any loss

of trade, that would result from a

widespread pink bollworm infestation,

would be very costly and harmful to the

U.S. gross national income. The risk of

potential disease spread is of great

concern to U.S. exporters of cotton.

Maintaining high quality standards is

essential not only to the cotton industry

but to the U.S. economy as a whole.

Continued regulation ensures that

importers of U.S. cotton and other raw

cotton products will maintain their

confidence in the safety of U.S.

produced cotton products.

Under these circumstances, the

Administrator of the Animal and Plant

Health Inspection Service has

determined that this action will not

have a significant economic impact on

a substantial number of small entities.

List of Subjects in 7 CFR Part 301

Agricultural commodities,

Incorporation by reference, Plant

diseases and pests, Quarantine,

Reporting and recordkeeping

requirements, Transportation.

PART 301—DOMESTIC QUARANTINE

NOTICES

Accordingly, we are adopting as a

final rule, without change, the interim

rule that amended 7 CFR part 301 and

that was published at 62 FR 23943–

23945 on May 2, 1997.

Authority: 7 U.S.C. 147a, 150bb, 150dd,

150ee, 150ff, 161, 162, and 164–167; 7 CFR

2.22, 2.80, and 371.2(c).

Done in Washington, DC, this 8th day of

August 1997.

Terry L. Medley,

Administrator, Animal and Plant Health

Inspection Service.

[FR Doc. 97–21522 Filed 8–13–97; 8:45 am]

BILLING CODE 3410–34–P

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 947

[Docket No. FV97–947–1 FIR]

Irish Potatoes Grown in Modoc and

Siskiyou Counties, California, and in

All Counties in Oregon, Except

Malheur County; Define Fiscal Period

and Decrease Assessment Rate

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Final rule.

SUMMARY: The Department of

Agriculture (Department), is adopting as

a final rule, without change, the

provisions of an interim final rule

which established, in the regulatory

text, the fiscal period of the OregonCalifornia Potato Committee

(Committee) to begin July 1 of each year

and end June 30 of the following year,

and decreased the assessment rate

established under Marketing Order No.

947 for the 1997–98 and subsequent

fiscal periods. The Committee is

responsible for local administration of

the marketing order which regulates the

handling of Irish potatoes grown in

Modoc and Siskiyou Counties,

California, and in all counties in

Oregon, except Malheur County.

Authorization to assess potato handlers

enables the Committee to incur

expenses that are reasonable and

necessary to administer the program.

The 1997–98 fiscal period covers the

period July 1 through June 30. The

assessment rate will continue in effect

indefinitely unless modified,

suspended, or terminated.

EFFECTIVE DATE: August 15, 1997.

FOR FURTHER INFORMATION CONTACT:

Martha Sue Clark, Marketing Order

Administration Branch, Fruit and

Vegetable Division, AMS, USDA, P.O.

Box 96456, Room 2525–S, Washington,

DC 20090–6456; Telephone: (202) 720–

2491; FAX: (202) 720–5698, or Teresa L.

Hutchinson, Northwest Marketing Field

Office, Fruit and Vegetable Division,

AMS, USDA, Green-Wyatt Federal

Building, Room 369, 1220 Southwest

Third Avenue, Portland, OR 97204;

Telephone: (503) 326–2724; FAX: (503)

326–7440. Small businesses may request

information on compliance with this

regulation by contacting Jay Guerber,

Marketing Order Administration

Branch, Fruit and Vegetable Division,

AMS, USDA, P.O. Box 96456, Room

2525–S, Washington, DC 20090–6456;

Telephone: (202) 720–2491; FAX: (202)

720–5698.

SUPPLEMENTARY INFORMATION: This rule

is issued under Marketing Agreement

No. 114 and Order No. 947, both as

amended (7 CFR part 947) regulating the

handling of Irish potatoes grown in

Oregon-California, hereinafter referred

to as the ‘‘order.’’ The marketing

agreement and order are effective under

the Agricultural Marketing Agreement

Act of 1937, as amended (7 U.S.C. 601–

674), hereinafter referred to as the

‘‘Act.’’

The Department is issuing this rule in

conformance with Executive Order

12866.

This rule has been reviewed under

Executive Order 12988, Civil Justice

Reform. Under the marketing order now

in effect, Oregon-California potato

handlers are subject to assessments.

Funds to administer the order are

derived from such assessments. It is

intended that the assessment rate as

issued herein will be applicable to all

assessable potatoes beginning July 1,

1997, and continuing until amended,

suspended, or terminated. This rule will

not preempt any State or local laws,

regulations, or policies, unless they

present an irreconcilable conflict with

this rule.

The Act provides that administrative

proceedings must be exhausted before

parties may file suit in court. Under

section 608c(15)(A) of the Act, any

handler subject to an order may file

with the Secretary a petition 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 request a modification of the

order or to be exempted therefrom. Such

handler is afforded the opportunity for

a hearing on the petition. After the

hearing the Secretary would rule on the

petition. The Act provides that the

district court of the United States in any

district in which the handler is an

inhabitant, or has his or her principal

place of business, has jurisdiction to

review the Secretary’s ruling on the

petition, provided an action is filed not

later than 20 days after the date of the

entry of the ruling.

This rule establishes, in regulatory

text, the fiscal period of the Committee

to begin July 1 of each year and end

June 30 of the following year, and

decreases the assessment rate

established for the Committee for the

1997–98 and subsequent fiscal periods

from $0.005 to $0.004 per

hundredweight.

The Oregon-California potato

marketing order provides authority for

the Committee, with the approval of the

Department, to establish a fiscal period.

The Committee has operated under a

fiscal period of July 1 through June 30