Federal Register / Vol. 62, No. 180 / Wednesday, September 17, 1997 / Rules and Regulations 48749

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 997 and 998

[Docket No. FV97–998–3 IFR]

Amended Assessment Rate for

Domestically Produced Peanuts

Handled by Persons Not Subject to

Marketing Agreement No. 146, and for

Marketing Agreement No. 146

Regulating the Quality of Domestically

Produced Peanuts

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Interim final rule with request

for comments.

SUMMARY: This rule decreases the

administrative assessment rate

established for the Peanut

Administrative Committee (Committee)

under Marketing Agreement No. 146

(agreement) for the 1997–98 and

subsequent crop years. The Committee

is responsible for local administration of

the agreement which regulates the

handling of peanuts grown in 16 States.

Authorization to assess peanut handlers

who have signed the agreement enables

the Committee to incur expenses that

are reasonable and necessary to

administer the program. The agreement

is effective under the Agricultural

Marketing Agreement Act of 1937, as

amended (Act). The Act also requires

the Department of Agriculture

(Department) to impose the same

administrative assessment rate on

assessable peanuts received or acquired

by handlers who have not signed the

agreement. The 1997–1998 crop year

covers the period July 1 through June

30. The assessment rate will continue in

effect indefinitely unless modified,

suspended, or terminated.

DATES: Effective September 18, 1997.

Comments received by October 17,

1997, 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 in triplicate to the Docket Clerk,

Fruit and Vegetable Division, AMS,

USDA, P.O. Box 96456, room 2525–S,

Washington, DC 20090–6456; Fax (202)

720–5698. Comments should reference

the docket number and the date and

page number of this issue of the Federal

Register and will be available for public

inspection in the Office of the Docket

Clerk during regular business hours.

FOR FURTHER INFORMATION CONTACT:

Tammie M. Bryant, Program Assistant,

or Jim Wendland, Marketing Specialist,

Marketing Order Administration

Branch, Fruit and Vegetable Division,

DC Marketing Field Office, AMS, USDA,

P.O. Box 96456, room 2525–S,

Washington, DC 20090–6456; telephone:

(202) 720–1755, Fax: (202) 720–5698.

Small businesses may request

information on compliance with this

regulation by contacting Jay Guerber,

Marketing Order Administration

Branch, Fruit and Vegetable Division,

AMS, USDA, room 2525–S, P.O. Box

96456, Washington, DC 20090–6456;

telephone: (202) 720–2491, Fax: (202)

720–5698.

SUPPLEMENTARY INFORMATION: This rule

is issued pursuant to the requirements

of the Agricultural Marketing

Agreement Act of 1937, as amended (7

U.S.C. 601–674), hereafter referred to as

the ‘‘Act’’; and under Marketing

Agreement No. 146 (7 CFR part 998)

regulating the quality of domestically

produced peanuts.

The Department is issuing this rule in

conformance with Executive Order

12866.

This rule has been reviewed under

Executive Order 12988, Civil Justice

Reform. Farmers’ stock peanuts received

or acquired by non-signatory handlers

and farmers’ stock peanuts received or

acquired by handlers signatory to the

agreement, other than from those

described in § 998.31 (c) and (d), are

subject to assessments. It is intended

that the assessment rates issued herein

will be applicable to all assessable

peanuts 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. There are no administrative

procedures which must be exhausted

prior to any judicial challenge to the

provisions of this rule.

This rule decreases the assessment

rate established for the Committee for

the 1997–98 and subsequent crop years

from $0.70 to $0.35 per net ton.

The agreement provides authority for

the Committee, with the approval of the

Department, to formulate an annual

budget of expenses and collect

assessments from handlers to administer

the program. Funds to administer the

agreement program are paid to the

Committee and are derived from

signatory handler assessments. The

members of the Committee are handlers

and producers of peanuts. They are

familiar with the Committee’s needs and

with the costs for goods and services in

their local areas and, thus, are in a

position to formulate an appropriate

budget and assessment rate. The

assessment rate is formulated and

discussed in public meetings. Thus, all

directly affected persons have an

opportunity to participate and provide

input. The handlers of peanuts who are

directly affected have voluntarily signed

the agreement authorizing the expenses

that may be incurred and the imposition

of assessments.

For the 1997–98 and subsequent crop

years, the Committee recommended,

and the Department approved, an

assessment rate that would continue in

effect from crop year to crop year

indefinitely unless modified,

suspended, or terminated by the

Secretary, upon recommendation and

information submitted by the

Committee or other information

available to the Secretary.

The Committee met on April 30, 1997,

and unanimously recommended 1997–

98 administrative expenditures of

$525,000, and an administrative

assessment rate of $0.35 per net ton of

assessable farmers’ stock peanuts

received or acquired by handlers. The

Committee also voted not to recommend

an assessment rate for indemnification

for handler losses due to aflatoxin

contamination. Adequate funds are

included in the Committee’s

indemnification reserve for such

expenses during the 1997–98 crop year.

In comparison, last year’s budgeted

administrative expenditures were

$1,025,500. Major expenditures

recommended by the Committee for the

1997–98 crop year compared with those

budgeted for 1996–97 (in

parentheses)include: $55,000 for

executive salaries ($112,450), $50,000

for clerical salaries ($131,500), $125,000

for field representatives (3 compliance

officers rather than 7 fieldmen) salaries

($296,700), $18,000 for payroll taxes

($42,000), $65,000 for employee

benefits, ($148,000), $40,000 for

committee members travel ($40,000),

$5,000 for staff travel ($5,000), $60,000

for field representatives travel

($110,000), $9,800 for insurance and

bonds ($9,800), $19,000 for office rent

and parking ($46,200), $10,000 for office

supplies and stationery ($14,000),

$10,400 for postage and mailing

($13,200), $11,000 for telephone and

telegraph ($15,000), $6,000 for repairs

and maintenance agreements ($6,000),

$10,400 for the audit fee ($10,400), and

$15,800 for the contingency reserve

($10,250).

The assessment rate recommended by

the Committee was derived by dividing

anticipated expenses by expected

receipts and acquisitions of farmers’

stock peanuts. Farmers’ stock peanuts

received or acquired by handlers

signatory to the agreement, other than
48750 Federal Register / Vol. 62, No. 180 / Wednesday, September 17, 1997 / Rules and Regulations

from those described in § 998.31 (c) and

(d), are subject to the assessments.

Farmers’ stock peanuts received or

acquired by non-signatory handlers by

law are subject to the same assessment

rate. Assessments are due on the 15th of

the month following the month in

which the farmers’ stock peanuts are

received or acquired. Peanut receipts

and acquisitions for the year under the

agreement are estimated at 1,500,000

tons, which should provide $525,000 in

assessment income. Approximately 95

percent of the domestically produced

peanut crop is marketed by handlers

who are signatory to the agreement. The

remaining 5 percent of the U.S. peanut

crop is marketed by non-signer

handlers.

The Act provides for mandatory

assessment of farmer’s stock peanuts

acquired by non-signatory peanut

handlers. Section 608b of the Act

specifies that: (1) Any assessment

(except indemnification assessments)

imposed under the agreement on

signatory handlers also shall apply to

non-signatory handlers, and (2) such

assessment shall be paid to the

Secretary.

The assessment rates established in

this rule will continue in effect

indefinitely unless modified,

suspended, or terminated by the

Secretary upon recommendation and

information submitted by the

Committee or other available

information.

Although these assessment rates are

effective for an indefinite period, the

Committee will continue to meet prior

to or during each crop year to

recommend a budget of expenses and

consider recommendations for

modification of the assessment rate. The

dates and times of Committee meetings

are available from the Committee or the

Department. Committee meetings are

open to the public and interested

persons may express their views at these

meetings. The Department will evaluate

Committee recommendations and other

available information to determine

whether modification of the assessment

rate is needed. Further rulemaking will

be undertaken as necessary. The

Committee’s 1997–98 budget and those

for subsequent crop years will be

reviewed and, as appropriate, approved

by the Department.

Pursuant to requirements set forth in

the Regulatory Flexibility Act (RFA), the

Agricultural Marketing Service (AMS)

has considered the economic impact of

this rule on small entities. Accordingly,

AMS has prepared this initial regulatory

flexibility analysis.

The purpose of the RFA is to fit

regulatory actions to the scale of

business subject to such actions in order

that small businesses will not be unduly

or disproportionately burdened. There

are approximately 80 peanut handlers

who are subject to regulation under the

agreement or the non-signer program

and approximately 25,000 peanut

producers in the 16-State production

area. Small agricultural service firms,

which include handlers, have been

defined by the Small Business

Administration (13 CFR 121.601) as

those whose annual receipts are less

than $5,000,000, and small agricultural

producers are defined as those having

annual receipts of less than $500,000.

Approximately 25 percent of the

signatory handlers, virtually all of the

non-signer handlers, and most of the

producers may be classified as small

entities.

This rule decreases the assessment

rate established for the Committee and

collected from handlers for the 1997–98

and subsequent crop years from $0.70 to

$0.35 per net ton. The recommended

assessment rate is $0.35 less than the

rate currently in effect.

The Committee discussed alternatives

to this rule, including alternative

expenditure levels. The Committee also

discussed the alternative of not

decreasing the assessment rate.

However, it decided against this course

of action. The peanut industry has been

in a state of economic decline since

1991, with the Committee attempting to

cut costs where possible. The

Committee’s budget for 1997–98 is

$525,000; this is $500,500 less than the

amount budgeted for 1996–97. Based on

an estimated 1,500,000 net tons of

assessable peanuts, income derived

from handler assessments during 1997–

98 will be adequate to cover budgeted

expenses.

This action will reduce the

assessment obligation imposed on

handlers. While this rule will impose

some costs on handlers, the costs are

minimal and in the form of a uniform

assessment on all handlers. Some of

these costs may be passed on to

producers. However, these costs will be

offset by the benefits derived from the

operation of the agreement. This

administrative assessment is required by

law to also be applied uniformly to all

non-signatory handlers and should be of

benefit to all. In addition, the

Committee’s meeting was widely

publicized throughout the peanut

industry and all interested persons were

invited to attend the meeting and

participate in Committee deliberations

on all issues. Like all Committee

meetings, the April 30, 1997, meeting

was a public meeting and all entities,

both large and small, were able to

express views on this issue. Finally,

interested persons are invited to submit

information on the regulatory and

informational impacts of this action on

small businesses.

This action will not impose any

additional reporting or recordkeeping

requirements on either small or large

peanut handlers. As with all Federal

marketing agreement and order

programs, reports and forms are

periodically reviewed to reduce

information requirements and

duplication by industry and public

sector agencies.

The Department has not identified

any relevant Federal rules that

duplicate, overlap, or conflict with this

rule. After consideration of all relevant

matter presented, including the

information and recommendation

submitted by the Committee and other

available information, it is hereby found

that this rule, as hereinafter set forth,

will tend to effectuate the declared

policy of the Act.

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 action until 30 days after

publication in the Federal Register

because: (1) This action reduces the

current assessment rate; (2) the

Committee needs to have sufficient

funds to pay its expenses which are

incurred on a continuous basis; (3) the

Act requires the Department to impose

an administrative assessment on

assessable peanuts received or acquired

for the account of signatory and nonsignatory handlers; (4) the 1997–98 crop

year began on July 1, 1997, and the

agreement and the Act require that the

rate of assessment for each crop year

apply to all assessable peanuts received

or acquired during such crop year; (5)

handlers are aware of this action which

was unanimously recommended by the

Committee at a public meeting and is

similar to other assessment rate actions

issued in past years; and (6) this interim

final rule provides a 30-day comment

period, and all comments timely

received will be considered prior to

finalization of this rule.

List of Subjects

7 CFR Part 997

Food grades and standards, Peanuts,

Reporting and recordkeeping

requirements.
Federal Register / Vol. 62, No. 180 / Wednesday, September 17, 1997 / Rules and Regulations 48751

7 CFR Part 998

Marketing agreements, Peanuts,

Reporting and recordkeeping

requirements.

For the reasons set forth in the

preamble, 7 CFR parts 997 and 998 are

amended as follows:

1. The authority citation for 7 CFR

parts 997 and 998 continues to read as

follows:

Authority: 7 U.S.C. 601–674.

PART 997—PROVISIONS

REGULATING THE QUALITY OF

DOMESTICALLY PRODUCED

PEANUTS HANDLED BY PERSONS

NOT SUBJECT TO THE PEANUT

MARKETING AGREEMENT

§ 997.101 [Amended]

2. Section 997.101 is amended by

removing ‘‘July 1, 1996,’’ and adding in

its place ‘‘July 1, 1997,’’ and by

removing ‘‘$0.70’’ and adding in its

place ‘‘$0.35.’’

PART 998—MARKETING AGREEMENT

REGULATING THE QUALITY OF

DOMESTICALLY PRODUCED

PEANUTS

§ 998.409 [Amended]

3. Section 998.409 is amended by

removing ‘‘July 1, 1996,’’ and adding in

its place ‘‘July 1, 1997,’’ and by

removing ‘‘$0.70’’ and by adding in its

place ‘‘$0.35.’’

Dated: September 12, 1997.

Robert C. Keeney,

Director, Fruit and Vegetable Division.

[FR Doc. 97–24689 Filed 9–16–97; 8:45 am]

BILLING CODE 3410–02–P

DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection

Service

9 CFR Part 78

[Docket No. 97–009–2]

Brucellosis in Cattle; State and Area

Classifications; Tennessee

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 brucellosis regulations

concerning the interstate movement of

cattle by changing the classification of

Tennessee from Class A to Class Free.

We have determined that Tennessee

meets the standards for Class Free

status. The interim rule was necessary

to relieve certain restrictions on the

interstate movement of cattle from

Tennessee.

EFFECTIVE DATE: The interim rule was

effective on February 28, 1997.

FOR FURTHER INFORMATION CONTACT: Dr.

R.T. Rollo, Jr., Staff Veterinarian,

National Animal Health Programs, VS,

APHIS, Suite 3B08, 4700 River Road

Unit 36, Riverdale, MD 20737–1231,

(301) 734–7709; or e-mail:

rrollo@aphis.usda.gov.

SUPPLEMENTARY INFORMATION:

Background

In an interim rule effective February

28, 1997, and published in the Federal

Register on March 6, 1997 (62 FR

10192–10193, Docket No. 97–009–1), we

amended the brucellosis regulations in

9 CFR part 78 by removing Tennessee

from the list of Class A States in

§ 78.41(b) and adding it to the list of

Class Free States in § 78.41(a).

Comments on the interim rule were

required to be received on or before May

5, 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 Order 12866

and the Regulatory Flexibility Act,

Executive Orders 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.

List of Subjects in 9 CFR Part 78

Animal diseases, Bison, Cattle, Hogs,

Quarantine, Reporting and

recordkeeping requirements,

Transportation.

PART 78—BRUCELLOSIS

Accordingly, we are adopting as a

final rule, without change, the interim

rule that amended 9 CFR part 78 and

that was published at 62 FR 10192–

10193 on March 6, 1997.

Authority: 21 U.S.C. 111–114a–1, 114g,

115, 117, 120, 121, 123–126, 134b, and 134f;

7 CFR 2.22, 2.80, and 371.2(d).

Done in Washington, DC, this 11th day of

September 1997.

Terry L. Medley,

Administrator, Animal and Plant Health

Inspection Service.

[FR Doc. 97–24668 Filed 9–16–97; 8:45 am]

BILLING CODE 3410–34–P

DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection

Service

9 CFR Part 94

[Docket No. 97–021–2]

Change in Disease Status of Northern

Ireland and Norway Because of Exotic

Newcastle Disease

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 regulations by

removing Northern Ireland and Norway

from the list of countries that are

considered to be free of exotic

Newcastle disease. We took this action

based on reports we received from the

Office International des Epizooties and

the Governments of Northern Ireland

and Norway that outbreaks of exotic

Newcastle disease have occurred in

Northern Ireland and Norway. This

action restricts the importation of live

birds, poultry, and poultry products into

the United States from Northern Ireland

and Norway.

EFFECTIVE DATE: The interim rule was

effective on April 15, 1997.

FOR FURTHER INFORMATION CONTACT: Dr.

John Cougill, Staff Veterinarian, Animal

Products Program, National Center for

Import and Export, VS, APHIS, 4700

River Road Unit 39, Riverdale, MD

20737–1231, (301) 734–3399; or e-mail:

jcougill@aphis.usda.gov.

SUPPLEMENTARY INFORMATION:

Background

In an interim rule effective April 15,

1997, and published in the Federal

Register on April 18, 1997 (62 FR

19032–19033, Docket No. 97–021–1), we

amended the regulations in 9 CFR part

94 by removing Northern Ireland and

Norway from the list of countries in

§ 94.6(a)(2) that are considered to be free

of exotic Newcastle disease.

Comments on the interim rule were

required to be received on or before June

17, 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 Order 12866

and the Regulatory Flexibility Act,

Executive Order 12988, and the

Paperwork Reduction Act.

Further, for this action, the Office of

Management and Budget has waived the