This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

67381

Vol. 68, No. 231

Tuesday, December 2, 2003

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service 

7 CFR Part 900 

[Docket Number FV03–900–1 PR] 

Proposed Rule To Exempt Organic 

Producers and Marketers From 

Assessments for Market Promotion 

Activities Under Marketing Order 

Programs

AGENCY: Agricultural Marketing Service, 

USDA.

ACTION: Proposed rule.

SUMMARY: This proposed rule would 

exempt any person producing and 

marketing solely 100 percent organic 

products from paying assessments for 

market promotion, including paid 

advertising, activities to marketing order 

programs administered by the 

Agricultural Marketing Service (AMS). 

AMS has identified 28 marketing order 

programs for which assessment 

exemptions may be established. The 

authority for this proposal is section 

10607 of the Farm Security and Rural 

Investment Act (2002 Farm Bill). The 

2002 Farm Bill also covers 16 national 

research and promotion programs. The 

research and promotion programs will 

be addressed separately at a later date.

DATES: Comments must be received by 

January 2, 2004. Pursuant to the 

Paperwork Reduction Act, comments on 

the information collection burden that 

would result from this proposal must be 

received by February 2, 2004.

ADDRESSES: Interested persons are 

invited to submit written comments 

concerning this proposed rule. 

Comments must be sent to the Docket 

Clerk, Marketing Order Administration 

Branch, Fruit and Vegetable Programs, 

AMS, USDA, 1400 Independence 

Avenue, SW., STOP 0237, Washington, 

DC 20250–0237; Fax: (202) 720–8938; or 

E-mail: moab.docketclerk@usda.gov. All 

comments should reference the docket 

number and the date and page number 

of this issue of the Federal Register. All 

comments received will be made 

available for public inspection in the 

Office of the Docket Clerk at the 

Marketing Order Administration 

Branch, AMS, USDA, Room 2525-South; 

1400 Independence Avenue, SW., 

Washington, DC 20250–0237 during 

regular business hours. A copy of this 

proposed rule may be found at http://

www.ams.usda.gov/fv/moab.html.

FOR FURTHER INFORMATION CONTACT:

George Kelhart or Jay Guerber, 

Marketing Order Administration 

Branch, Fruit and Vegetable Programs, 

Agricultural Marketing Service, U.S. 

Department of Agriculture, 1400 

Independence Avenue, SW., STOP 

0237, Room 2525-South; Washington, 

DC 20250–0237; Telephone: (202) 720–

2491; Fax: (202) 720–8938; or E-mail: 

George.Kelhart@usda.gov. 

Small businesses may request 

information on complying with this 

regulation by contacting Jay Guerber, 

Marketing Order Administration 

Branch, Fruit and Vegetable Programs, 

AMS, USDA, 1400 Independence 

Avenue, SW., Stop 0237, Washington, 

DC 20250–0237; telephone: (202) 720–

2491; Fax: (202) 720–8938; or E-mail: 

Jay.Guerber@usda.gov.

SUPPLEMENTARY INFORMATION: 

Executive Order 12866 

This proposed rule is being issued by 

the Department of Agriculture (USDA) 

in conformance with Executive Order 

12866. 

Executive Order 12988 

This proposed rule has been reviewed 

under Executive Order 12988, Civil 

Justice Reform. It is not intended to 

have retroactive effect. This proposed 

rule would not preempt any state or 

local laws, regulations, or policies, 

unless they present an irreconcilable 

conflict with this rule. 

The Agricultural Marketing 

Agreement Act of 1937 (7 U.S.C. 601–

674)(Act), under which the 28 

marketing order programs are 

established, provides that 

administrative proceedings must be 

exhausted before parties may file suit in 

court. Under the Act, any person subject 

to an order may file a petition with the 

Secretary of Agriculture 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. The 

petitioner is afforded the opportunity 

for a hearing on the petition. After the 

hearing, the Secretary will make a ruling 

on the petition. The Act provides that 

the district courts of the United States 

in any district in which the person is an 

inhabitant, or has his principal place of 

business, has jurisdiction to review the 

Secretary’s ruling, provided a complaint 

is filed within 20 days from the date of 

the entry of the ruling.

The authority for this proposed rule is 

specified in section 10607 of the Farm 

Security and Rural Investment Act (Pub. 

L. 107–171; 2002 Farm Bill). The 2002 

Farm Bill was enacted May 13, 2002. 

Section 501 of the Federal Agriculture 

Improvement and Reform Act of 1996 

(FAIR Act; 7 U.S.C. 7401) was amended 

by the 2002 Farm Bill. This amendment 

exempts any person that produces and 

markets solely 100 percent organic 

products, and that does not produce any 

conventional or non-organic products, 

from paying assessments under a 

commodity promotion law with respect 

to any agricultural commodity that is 

produced on a certified organic farm as 

defined in section 2103 of the Organic 

Foods Production Act of 1990 (7 U.S.C. 

6502). The amendment further requires 

the Secretary of Agriculture to amend 

any market research and promotion 

regulations to reflect this exemption. 

USDA is proposing amendments to 

general regulations affecting 28 

marketing order programs established 

under the Act for which it has oversight. 

These amendments would establish 

provisions for organic producers and 

marketers meeting the specified criteria 

to be exempt from paying assessments 

for market promotion, including paid 

advertising, activities. 

The FAIR Act amendment covers 28 

marketing order programs established 

under the Act (Texas citrus—7 CFR part 

906; Florida avocados—7 CFR part 915; 

California nectarines—7 CFR part 916; 

California peaches and pears—7 CFR 

part 917; Washington apricots—7 CFR 

part 922; Washington sweet cherries—7 

CFR part 923; Washington/Oregon fresh 

prunes—7 CFR part 924; Southeastern 

California grapes—7 CFR part 925; 

Oregon/Washington winter pears—7 

CFR part 927; cranberries grown in 

States of Massachusetts, et al.—7 CFR 

part 929; tart cherries grown in States of 

Michigan, et al.—7 CFR part 930; 

Oregon/Washington Bartlett pears—7 

67382 Federal Register / Vol. 68, No. 231 / Tuesday, December 2, 2003 / Proposed Rules 

CFR part 931; California olives—7 CFR 

part 932; Oregon/California potatoes—7 

CFR part 947; Colorado potatoes—7 CFR 

part 948; Georgia Vidalia onions—7 CFR 

part 955; Washington/Oregon Walla 

Walla onions—7 CFR part 956; IdahoEastern Oregon onions—7 CFR part 958; 

Texas onions—7 CFR part 959; Florida 

tomatoes—7 CFR part 966; Texas 

melons—7 CFR part 979; California 

almonds—7 CFR part 981; OregonWashington hazelnuts—7 CFR part 982; 

California walnuts—7 CFR part 984; Far 

West spearmint oil—7 CFR part 985; 

California dates—7 CFR part 987; 

California raisins—7 CFR part 989; and 

California dried prunes—7 CFR part 

993). 

These marketing order programs 

allow for promotion activities designed 

to assist, improve, or promote the 

marketing, distribution, or consumption 

of the commodity covered under the 

marketing order program. Some of these 

programs also authorize market 

promotion in the form of paid 

advertising. Promotion, including paid 

advertising, activities are paid for by 

assessments levied on handlers 

regulated under the various marketing 

orders. 

Under this proposal, a new subpart 

would be added in 7 CFR part 900 

General Regulations to specify the 

criteria for identifying persons eligible 

to obtain an assessment exemption for 

market promotion, including paid 

advertising; procedures for persons to 

apply for an exemption; procedures for 

calculating the assessment exemption; 

and other procedural details for the 

applicable marketing orders.

Prior to or during the assessment 

period, the person would submit an 

application for exemption to the 

applicable committee or board. The 

application would be reviewed by the 

committee or board to determine 

whether the applicant is eligible for an 

assessment exemption. If the 

application is disapproved, the 

marketing order committee or board will 

notify the handler of the reason(s) for 

disapproval. The Secretary may review 

any decisions made by the committees 

or boards at his/her discretion. 

The marketing order’s committee or 

board would compute the assessment 

rate for any person approved for an 

organic exemption. The exempt rate 

would be computed by dividing the 

committee’s or board’s estimated nonmarketing promotion expenditures by 

the committee’s or board’s estimated 

total expenditures for the same 

assessment period, as approved by the 

Secretary, and applying that percentage 

to the assessment rate applicable to all 

persons for the assessment period. 

Within 30 days following the applicable 

assessment period, the committee or 

board would re-compute the assessment 

rate for persons exempt under the 

section, based on the actual 

expenditures incurred during the 

assessment period. The exempt person 

would pay an additional assessment or 

be reimbursed or credited by the 

committee or board for the amount 

overpaid. 

Who Is Eligible for Exemption? 

To be eligible for an exemption, the 

person must be subject to an assessment 

under a designated marketing order 

program. All of the marketing order 

programs assess handlers; i.e., persons 

that handle the regulated commodity. 

The FAIR Act amendment specifies 

that to be exempt from a commodity 

promotion assessment, a person—

meaning an individual, group of 

individuals, corporation, association, 

cooperative, or other business entity—

must produce and market solely 100 

percent organic products and must not 

produce any non-organic or 

conventional products. For purposes of 

this proposed rule, ‘‘produce’’ means to 

grow or produce food, feed, livestock, or 

fiber or to receive food, feed, livestock, 

or fiber, and alter that product by means 

of feeding, slaughtering, or processing. 

Under this proposed rule, handlers, and 

processors and producers acting as 

handlers may be eligible for exemption 

if they meet the definition of ‘‘produce’’

as outlined in this proposed rule. This 

proposed rule provides for assessment 

exemptions for those regulated under 

marketing orders for domestic 

commodities. Thus, importers subject 

only to section 8e import regulations 

would not pay marketing order 

assessments and would not be eligible 

for an assessment exemption. 

Additionally, to be exempt, such 

persons must possess certification from 

a USDA-accredited certifying agent that 

the farm or handling operation meets 

the requirements of 100 percent organic 

as defined in section 2103 of the 

Organic Foods Production Act of 1990 

(7 U.S.C. 6502). 

Examples 

• A grower who produces and 

markets (handles) 100 percent certified 

organic, is certified as an organic 

handling operation, and pays the 

marketing order assessments, is eligible 

for an exemption for the portion of the 

assessments used for marketing 

promotion. 

• A handler receives 100 percent of 

the commodity as certified organic and 

is certified as an organic handling 

operation. The handler alters (e.g., 

shells, slices, processes, or in some 

other way alters) the commodity and 

pays marketing order assessments. The 

handler is eligible for an exemption for 

the portion of the assessments used for 

marketing promotion.

• A grower who produces and 

markets (handles) both certified organic 

and conventional commodities is not 

eligible for the exemption because that 

person is not producing and marketing 

solely 100 percent certified organic 

commodities. 

• A handler receives 100 percent of a 

commodity that is organic, and the 

handler is certified as an organic 

handling operation. The handler sorts, 

packages, markets, and pays 

assessments on the commodity. The 

handler is not eligible for the exemption 

because the handler did not alter (e.g., 

shell, slice, process, or in some other 

way alter) the commodity. 

The FAIR Act amendment also covers 

16 national research and promotion 

programs. The research and promotion 

programs will be addressed separately at 

a later date. The 16 programs cover 

blueberries, beef, cotton, dairy, eggs, 

fluid milk, Hass avocados, honey, lamb, 

mushrooms, peanuts, popcorn, pork, 

potatoes, soybeans, and watermelons. 

Initial Regulatory Flexibility Analysis 

Pursuant to requirements set forth in 

the Regulatory Flexibility Act (5 U.S.C. 

601 et seq.) (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. 

Marketing orders issued pursuant to the 

Act, and the rules issued thereunder, are 

unique in that they are brought about 

through group action of essentially 

small entities acting on their own 

behalf. Thus, both statutes have small 

entity orientation and compatibility. 

As previously mentioned, 

assessments under the 28 marketing 

order programs are paid by handlers 

regulated under the various marketing 

orders. There are approximately 850 

handlers regulated under the 28 

marketing orders. USDA does not have 

precise numbers, but believes there may 

be approximately 84 persons who 

produce and market solely 100 percent 

organic products that might be exempt 

from paying assessments for market 

promotion, including paid advertising, 

under the 28 marketing order programs 

administered by AMS. Thus, the 

Federal Register / Vol. 68, No. 231 / Tuesday, December 2, 2003 / Proposed Rules 67383

estimated number of prospective 

applicants eligible for the assessment 

exemption may only represent 

approximately 9.9 percent of the total 

handler population. 

Small agricultural service firms are 

defined by the Small Business 

Administration (13 CFR 121.201) as 

those whose annual receipts are less 

than $5,000,000. Although the exact size 

of the potential applicants is not known, 

USDA believes that the majority of 

persons who might qualify for an 

exemption may be classified as small 

entities. 

Section 501 of the Federal Agriculture 

Improvement and Reform Act of 1996 

(FAIR Act) was amended on May 13, 

2002 (7 U.S.C 7401). The amendment 

provides that notwithstanding any 

provision of a commodity promotion 

law, a person that produces and markets 

solely 100 percent organic products, and 

that does not produce any conventional 

or non-organic products, shall be 

exempt from paying assessments under 

a commodity promotion law with 

respect to any agricultural commodity 

that is produced on a certified organic 

farm as defined in section 2103 of the 

Organic Foods Production Act of 1990 

(7 U.S.C. 6502). The amendment further 

requires the Secretary of Agriculture to 

amend any research and promotion 

regulations to reflect this exemption. 

USDA is proposing amendments to 

the general regulations affecting 28 

marketing order programs established 

under the Act for which it has oversight. 

These amendments would establish 

provisions for organic producers and 

marketers meeting the specified criteria 

to be exempt from paying assessments 

for market promotion, including paid 

advertising. 

The 28 marketing order programs 

allow for promotion activities designed 

to assist, improve, promote, the 

marketing, distribution, or consumption 

of the commodity covered under the 

marketing order. Some of the orders also 

include authority for paid advertising 

activities. Market promotion, including 

paid advertising, activities are paid for 

by assessments levied on handlers 

regulated under the various marketing 

orders.

Under this proposal, a new subpart 

would be added in 7 CFR Part 900 

General Regulations to specify criteria 

for identifying persons eligible to obtain 

an assessment exemption for marketing 

promotion, including paid advertising; 

procedures for applying for an 

exemption; procedures for calculating 

the assessment exemption; and other 

procedural details for the applicable 

marketing orders. 

Regarding the impact of this proposed 

rule on affected entities, this rule would 

impose minimal additional costs 

incurred in filing the exemption 

application and in maintaining records 

needed to verify the applicant’s 

exemption status during applicable 

assessment period. Such applicants will 

be required to submit an application 

and receive approval from the 

applicable committee or board to obtain 

the assessment exemption. USDA 

estimates that each applicant will 

submit one application annually. The 

annual burden for all of the marketing 

order industries is estimated to total 

about 42 hours. 

The cost burden associated with the 

information collection would be $420 

for all applicants, or $5.00 per 

applicant. The total cost has been 

estimated by multiplying the burden 

hours associated with the exemption 

application by $10.00 per hour, a sum 

deemed reasonable should the 

applicants be compensated for their 

time. 

Since this action potentially exempts 

from assessments agricultural producers 

and marketers, AMS believes that this 

rule would have a beneficial economic 

effect on exempted entities by reducing 

their assessment payments. During the 

2001–2002 marketing season, 

assessments for the 28 marketing orders 

totaled $44,400,000. Of that amount, 

about $29,900,000 (or 65 percent) was 

made available for marketing 

promotion, including paid advertising, 

activities. USDA does not have precise 

information, but believes that about 1 

percent on average of the total 

assessments are for certified organic 

commodities. Thus, assessments on 

organic commodities could total about 

$440,000. Of that amount, about 

$299,000 for marketing promotion, 

including paid advertising, might be 

exempt under this proposed rule if all 

of the approximate 84 handlers of the 

regulated commodities were eligible for 

the assessment exemption as specified 

in the proposed rule. 

Based on our estimate that there 

might be a total of 84 handlers exempt 

from assessments for marketing 

promotion activities conducted under 

the various marketing orders, the 

assessments for eligible persons would 

be reduced by an average of almost 

$3,600 ($299,000 divided by 84) on an 

annual basis.

There is some variation among the 28 

marketing orders on the percent of 

assessments used for marketing 

promotion, including paid advertising. 

Thus, the actual reduction in 

assessments would vary among the 

various orders. In fact, the amounts 

allocated for marketing promotion as a 

percentage of the total marketing order 

budgets range from less than 5 percent 

to almost 60 percent. 

In accordance with the Paperwork 

Reduction Act of 1995 (44 U.S.C. 

chapter 35), the reporting and 

recordkeeping provisions that would be 

generated by this proposed rule will be 

submitted to the Office of Management 

and Budget (OMB) under OMB No. 

0581–NEW. As explained later, USDA 

plans to request emergency approval. 

As with all Federal marketing order 

programs, reports and forms are 

periodically reviewed to reduce 

information requirements and 

duplication by industry and public 

sector agencies. In addition, USDA has 

not identified any relevant Federal rules 

that duplicate, overlap, or conflict with 

this rule. 

There are no viable alternatives to 

proposing these organic assessment 

exemption procedures. The FAIR Act 

requires USDA to take this action to 

lessen the assessment costs for persons 

who produce and market solely 100 

percent organic products. In drafting the 

exemption procedures, every effort has 

been made to minimize the burden on 

the persons impacted, and to simplify 

the process. The anticipated assessment 

reductions for eligible persons are 

expected to greatly outweigh the 

additional costs related to the reporting 

required. 

A small business guide on complying 

with fruit, vegetable, and specialty crop 

marketing agreements and orders may 

be viewed at: http://www.ams.usda.gov/

fv/moab.html. Any questions about the 

compliance guide should be sent to Jay 

Guerber at the previously mentioned 

address in the FOR OTHER INFORMATION

CONTACT section. 

A 30-day comment period is provided 

for interested persons to submit written 

comments on the criteria for identifying 

persons eligible to obtain an assessment 

exemption, and the procedural details 

for obtaining an assessment exemption 

under the various marketing orders. 

Thirty days is deemed appropriate 

because this action was mandated by 

Congress under the 2002 Farm Bill and 

is intended to provide relief to 

producers and marketers of solely 100 

percent organic products. Pursuant to 

the Paperwork Reduction Act, 

comments on the information collection 

burden must be received within 60 days 

after the date of publication of this 

proposal in the Federal Register. 

Paperwork Reduction Act 

In accordance with the Paperwork 

Reduction Act of 1995 (44 U.S.C. 

chapter 35), this notice also announces 

67384 Federal Register / Vol. 68, No. 231 / Tuesday, December 2, 2003 / Proposed Rules 

that AMS is seeking emergency 

approval for a new information 

collection request enabling organic 

producers and marketers to apply for 

exemptions from paying market 

promotion assessments under the 

following 28 Federal marketing orders: 

7 CFR parts 906, 915, 916, 917, 922, 923, 

924, 925, 927, 929, 930, 931, 932, 947, 

948, 955, 956, 958, 959, 966, 979, 981, 

982, 984, 985, 987, 989, and 993. The 

emergency request is necessary because 

insufficient time is available to follow 

normal clearance procedures. 

Title: Organic Producer and Marketer 

Market Promotion Assessment 

Exemption under 28 Federal Marketing 

Orders. 

OMB Number: 0581–NEW. 

Type of Request: New collection.

Abstract: Marketing order programs 

provide an opportunity for producers of 

fresh fruits, vegetables and specialty 

crops to solve marketing problems that 

cannot be solved individually. Order 

regulations help ensure adequate 

supplies of high quality products for 

consumers and adequate returns to 

producers. Under the Act, orders may 

authorize production and marketing 

research, including paid advertising, as 

mentioned earlier. Production and 

marketing research and development, 

including paid advertising, activities to 

promote the various commodities are 

paid for with assessments levied on 

handlers regulated under the 28 Federal 

marketing orders. 

On May 13, 2002, section 501 of the 

FAIR Act was amended (7 U.S.C. 7401) 

to exempt any person that produces and 

markets solely 100 percent organic 

products, and that does not produce any 

conventional or non-organic products, 

from paying assessments under a 

commodity promotion law with respect 

to any agricultural commodity that is 

produced on a certified organic farm as 

defined in Section 2103 of the Organic 

Foods Production Act of 1990 (7 U.S.C. 

6502). 

To be exempt from paying 

assessments for marketing promotion, 

including paid advertising expenses, 

under the specified marketing orders, 

the certified organic producer and 

marketer would submit an application, 

‘‘Certified Organic Producer and 

Marketer Application for Exemption 

from Market Promotion Assessments 

Paid Under Federal Marketing Orders’’

to the marketing order committee or 

board. The application would need to be 

submitted to the committee or board 

prior to or during the applicable 

assessment period, and annually 

thereafter, as long as the applicant 

continues to be eligible for the 

exemption. This application would 

include the applicant’s name, name and 

address of the company, telephone and 

fax numbers, a copy of the applicant’s 

organic farm or organic handling 

operation certificate provided by a 

USDA-accredited certifying agent under 

the Organic Foods Production Act of 

1990 (7 U.S.C. 6502), and a signed 

certification that the applicant meets all 

of the requirements specified for an 

assessment exemption. The burdens 

associated with obtaining the 

certifications under the Organic Foods 

Production Act of 1990 have already 

been approved by OMB under OMB 

Control No. 0581–0181. 

If the applicant complies with these 

requirements and is eligible for a market 

promotion assessment exemption, the 

committee or board would approve the 

exemption and notify the applicant 

within 30 days of receiving the 

applicant’s application. The Secretary 

may review any decisions made by the 

committees or boards at his/her 

discretion. 

The respective marketing orders (e.g., 

7 CFR 932.61 and 7 CFR 981.70) also 

provide that handlers maintain, and 

make available, all records necessary to 

demonstrate compliance with order 

requirements for two years. The burdens 

on handlers for such recordkeeping 

requirements are included in the 

information collection requests 

previously approved by OMB for the 

respective marketing orders under the 

following OMB Control Numbers: OMB 

No. 0581–0178 for marketing order Nos. 

947, 948, 955, 956, 958, 959, 966, 979, 

982, 984, 987, 989, and 993; OMB No. 

0581–0189 for marketing order Nos. 

906, 915, 916, 917, 922, 923, 924, 925, 

927, 929, 930, and 931; OMB No. 0581–

0142 for marketing order No. 932; OMB 

No. 0581–0071 for marketing order No. 

981; and OMB No. 0581–0065 for 

marketing order No. 985. 

The information collection would be 

used only by authorized representatives 

of USDA, including AMS, Fruit and 

Vegetable Programs’ regional and 

headquarters staff, and authorized 

Committee and Board employees. 

Authorized Committee and Board 

employees will be the primary users of 

the information, and AMS will be the 

secondary user. 

The request for approval of the new 

information collection under the 28 

Federal marketing orders is as follows:

Form FV–649, Certified Organic 

Producer and Marketer Application for 

Exemption From Marketing Promotion 

Assessments Paid Under Federal 

Marketing Orders 

Estimate of Burden: Public reporting 

burden for this collection of information 

is estimated to average 30 minutes per 

response. 

Respondents: Eligible Certified 

Organic Producers and Marketers. 

Estimated Number of Respondents:

84. 

Estimated Number of Responses per 

Respondent: 1 

Estimated Total Annual Burden on 

Respondents: 42 hours. 

Comments: Comments are invited on: 

(1) Whether the collection of 

information is necessary for the proper 

performance of the functions of the 

agency, including whether the 

information will have practical utility; 

(2) the accuracy of the agency’s estimate 

of the burden of the collection of 

information, including the validity of 

the methodology and assumptions used; 

(3) ways to enhance the quality, utility, 

and clarity of the information to be 

collected; and (4) ways to minimize the 

burden of the collection of information 

on those who are to respond, including 

the use of appropriate automated, 

electronic, mechanical, or other 

technological collection techniques of 

other forms of information technology. 

A sixty-day period is provided to 

comment on the information collection 

burden. Comments should reference 

OMB No. 0581–NEW and be sent to 

moab.docketclerk@usda.gov. All 

comments received will be available for 

public inspection during regular 

business hours at the same address. 

All responses to this rule will be 

summarized and included in the request 

for OMB approval. All comments will 

become a matter of public record. As 

with all Federal marketing order 

programs, reports and forms are 

periodically reviewed to reduce 

information requirements and 

duplication by industry and public 

sector agencies.

List of Subjects in 7 CFR Part 900 

Administrative practices and 

procedures, Freedom of information, 

Marketing agreements, Reporting and 

recordkeeping requirements.

For the reasons set forth in the 

preamble, 7 CFR part 900 is proposed to 

be amended to read as follows:

PART 900—GENERAL REGULATIONS 

1. The authority citation for part 900 

is revised to read as follows:

Authority: 7 U.S.C. 610 and 7 U.S.C. 7401.

2. Add a new subpart heading 

‘‘Assessment Exemptions’’ after 

§ 900.601, and add a new § 900.700 to 

read as follows:

Federal Register / Vol. 68, No. 231 / Tuesday, December 2, 2003 / Proposed Rules 67385

§ 900.700 Exemption from assessments. 

(a) This section specifies criteria for 

identifying persons eligible to obtain an 

assessment exemption for marketing 

promotion, including paid advertising, 

and procedures for applying for an 

exemption for 7 CFR parts 906, 915, 

916, 917, 922, 923, 924, 925, 927, 929, 

930, 931, 932, 947, 948, 955, 956, 958, 

959, 966, 979, 981, 982, 984, 985, 987, 

989, and 993. For the purposes of this 

section, the term ‘‘assessment period’’

means fiscal period, fiscal year, crop 

year, or marketing year as defined under 

these parts; the term ‘‘marketing 

promotion expenditures’’ mean 

expenses incurred under the various 

marketing order for marketing research 

and development projects, and 

marketing promotion, including paid 

advertising, designed to assist, improve, 

or promote the marketing, distribution, 

and consumption of the applicable 

commodity. 

(b) Any handler that produces and 

markets solely 100 percent organic 

products produced on a certified 

organic farm as defined in section 2103 

of the Organic Foods Production Act of 

1990 (7 U.S.C. 6502) and the regulations 

issued under that Act, is subject to 

assessments under a part or parts 

specified in paragraph (a) of this 

section, and does not produce or market 

any conventional or non-organic 

products shall be exempt from the 

portion of the assessment applicable to 

marketing promotion, including paid 

advertising. For purposes of this section, 

produce means to grow or produce food, 

feed, livestock, or fiber or to receive 

food, feed, livestock, or fiber and alter 

that product by means of feeding, 

slaughtering, or processing. Any handler 

so exempted shall be obligated to pay 

the portion of the assessment for other 

authorized activities under such part or 

parts. 

(c) To be exempt from paying 

assessments for these purposes under a 

part or parts, the handler shall submit 

an application to the committee or 

board established under the applicable 

part or parts prior to or during the 

assessment period. This application 

shall include the handler’s name and 

address, the name and address of the 

company, telephone and fax numbers, a 

copy of the organic farm or organic 

handling operation certificate(s) 

provided by a USDA-accredited 

certifying agent under the Organic 

Foods Production Act of 1990 (7 U.S.C. 

6502) for the purposes specified in 

paragraph (b) of this section, and the 

handler’s certification that the handler 

meets all of the applicable requirements 

for an assessment exemption as 

provided in this section. The handler 

shall file the application with the 

committee or board, prior to or during 

the applicable assessment period, and 

annually thereafter as long as the 

handler continues to be eligible for the 

exemption. If the handler complies with 

these requirements and is eligible for an 

assessment exemption, the committee or 

board will approve the exemption and 

notify the handler within 30 days of 

receiving the handler’s application. If 

the application is disapproved, the 

committee or board will notify the 

handler of the reason(s) for disapproval. 

The Secretary may review any decisions 

made by the committees or boards at 

his/her discretion. 

(d) The applicable assessment rate for 

any handler approved for an exemption 

shall be computed by dividing the 

committee’s or board’s estimated nonmarketing promotion expenditures by 

the committee’s or board’s estimated 

total expenditures approved by the 

Secretary and applying that percentage 

to the assessment rate applicable to all 

persons for the assessment period. The 

Secretary shall review the assessment 

rate for eligible persons and, if 

appropriate, approve the assessment 

rate. 

(e) Within 30 days following the 

applicable assessment period, the 

committee or board shall re-compute the 

applicable assessment rate for handlers 

exempt under this section based on the 

actual expenditures incurred during the 

applicable assessment period. The 

Secretary shall review, and if 

appropriate, approve any change in the 

rate applicable to exempt handlers. 

(f) When the requirements of this 

section for exemption no longer apply to 

a handler, the handler shall inform the 

committee or board immediately and 

pay the full assessment on all remaining 

assessable product for all committee or 

board assessments from the date the 

handler no longer is eligible to the end 

of the assessment period.

Dated: November 25, 2003. 

A.J. Yates, 

Administrator, 

Agricultural Marketing Service.

[FR Doc. 03–29958 Filed 12–1–03; 8:45 am] 

BILLING CODE 3410–02–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. 2003–NE–48–AD] 

RIN 2120–AA64 

Airworthiness Directives; Hamilton 

Sundstrand Corporation (Formerly 

Hamilton Standard Division) Model 

568F Propellers

AGENCY: Federal Aviation 

Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking 

(NPRM). 

SUMMARY: The FAA proposes to adopt a 

new airworthiness directive (AD) for 

certain serial numbered (SN) propeller 

blades installed in Hamilton Sundstrand 

Corporation (formerly Hamilton 

Standard Division) 568F propellers. 

This proposed AD would require 

replacement of propeller blades, part 

numbers (P/N’s) R815505–3 and 

R815505–4 that have a serial number 

(SN) of FR1699 to FR20021010, with 

serviceable blades. This proposed AD is 

prompted by reports of these composite 

propeller blades found at inspection, 

with random areas of missing adhesive 

under the compression wrap, which 

exposed the steel tulip part of the blade. 

We are proposing this AD to prevent 

propeller blade failure due to corrosioninduced fatigue, which could result in 

blade separation and possible loss of 

airplane control.

DATES: We must receive any comments 

on this proposed AD by February 2, 

2004.

ADDRESSES: Use one of the following 

addresses to submit comments on this 

proposed AD: 

• By mail: Federal Aviation 

Administration (FAA), New England 

Region, Office of the Regional Counsel, 

Attention: Rules Docket No. 2003–NE–

48–AD, 12 New England Executive Park, 

Burlington, MA 01803–5299. 

• By fax: (781) 238–7055. 

• By e-mail: 9-aneadcomment@faa.gov.

You can get the service information 

identified in this proposed AD from 

Hamilton Sundstrand, A United 

Technologies Company, Publications 

Manager, Mail Stop 2AM–EE50, One 

Hamilton Road, Windsor Locks, CT 

06096. 

You may examine the AD docket, by 

appointment, at the FAA, New England 

Region, Office of the Regional Counsel, 

12 New England Executive Park, 

Burlington, MA.