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contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

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Rules and Regulations Federal Register

59769

Vol. 67, No. 185

Tuesday, September 24, 2002

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 201

[Docket No. LS–02–12] 

Enforcement of the Varietal Labeling 

Provisions of the Federal Seed Act

AGENCY: Agricultural Marketing Service, 

USDA.

ACTION: Policy statement.

SUMMARY: The purpose of this policy 

statement is to make clear that the 

Agricultural Marketing Service (AMS) 

has a comprehensive compliance 

program in place that monitors and tests 

seed shipped in interstate commerce for 

truthful varietal labeling.

FOR FURTHER INFORMATION CONTACT:

Richard C. Payne, Chief, Seed 

Regulatory and Testing Branch, 

Livestock and Seed Program, AMS, 

USDA, Room 209, Building 306, BARCEast, Beltsville, Maryland 20705–2325; 

Telephone: (301) 504–9237; Fax: (301) 

504–8098; E-mail: 

Richard.Payne2@usda.gov.

SUPPLEMENTARY INFORMATION:

Occasionally issues or questions relating 

to Federal Seed Act (FSA) enforcement 

have been raised by the public. 

Recently, numerous interested parties, 

including officials of the National 

Cattlemen’s Beef Association and 

Mississippi State University, have 

expressed concern that with the 

expiration of the Plant Variety 

Protection Certificate issued under the 

Plant Variety Protection Act for the 

Marshall variety of annual ryegrass, 

inferior seed of other varieties may be 

marketed as Marshall annual ryegrass. 

The purpose of this policy statement is 

to make clear that AMS views the 

varietal mislabeling of seed as a serious 

violation of the FSA. AMS has a 

comprehensive program in place that 

consists of monitoring and testing seed 

lots to determine if they have the correct 

varietal labeling. A range of options are 

available that AMS will use to enforce 

the varietal labeling provisions of the 

FSA. Persons with knowledge of 

labeling violations of seed shipped in 

interstate commerce are invited to 

report them to AMS. 

Federal Seed Act Policy: The Federal 

Seed Act (FSA) (7 U.S.C. 1551–1611) is 

a truth-in-labeling law that regulates the 

labeling of seed in interstate commerce. 

The FSA is enforced with the aid of 

State seed control programs as 

authorized under cooperative 

agreements between State Departments 

of Agriculture and USDA’s AMS. 

Qualified seed inspectors, authorized by 

AMS’’ Seed Regulatory and Testing 

Branch (SRTB), draw official seed 

samples. A portion of the official sample 

is tested by the State seed laboratory. If 

the test results are out of tolerance with 

labeled information, a portion of the 

official sample, sampling 

documentation, test results, and a copy 

of the seed label are sent to the SRTB. 

If a subsequent test of the official 

sample by the SRTB confirms the State’s 

test results, an investigation of the seed 

shipment is undertaken. 

Many State seed control laboratories, 

as well as the SRTB, also conduct 

laboratory tests to determine if seed 

shipments are labeled with the correct 

variety name. Official instructions for 

conducting these tests are contained in 

the FSA regulations (7 CFR 201.58a). 

Each year the SRTB conducts 

trueness-to-variety (TTV) field tests to 

determine the accuracy of variety 

labeling of seed lots shipped in 

interstate commerce. Varietal 

identification may be based on seedling, 

growing plant, or mature plant 

characteristics (7 CFR 201.58a). The 

authority for making tests and applying 

tolerances to determine the accuracy of 

labeling is contained in section 403 of 

the FSA (7 U.S.C. 1593). The officially 

drawn samples, submitted by state seed 

control programs, are grouped and 

planted by variety along with an 

authentic sample of the variety in 

question by a university or State 

Department of Agriculture agronomist 

by contractual arrangement. In addition, 

the agronomist assists the SRTB staff in 

evaluating the samples for correct 

varietal labeling. Approximately 2,000 

samples are evaluated annually in the 

TTV field testing program. The kinds of 

seed tested include field crops, 

vegetables, forages, and turf grasses. 

Shipments of mislabeled seed are 

investigated as potential FSA violations. 

Interstate seed shippers are required 

to keep receiving and shipping records 

that include the variety name for each 

lot of seed they ship in interstate 

commerce (7 CFR 201.7). These records 

are routinely examined during 

investigations of other FSA violations to 

determine if the variety shipped was 

correctly labeled. 

AMS considers violations of the FSA 

labeling provisions as serious violations 

of law and is committed to vigorous 

enforcement of the FSA through the full 

range of available enforcement 

authorities. 

Enforcement actions typically involve 

the assessment of a monetary penalty 

against seed companies that ship 

mislabeled seed in violation of the FSA. 

The amount of the monetary penalty 

depends on the severity of the violation 

and the number of violations the 

company has had in the past. If the 

violation is considered minor, and the 

company has had no other violations in 

the past five years, a letter of warning 

will be sent to the company. If the 

violation is considered a major violation 

or the company has a history of 

violations, the company will be notified 

of the violations and given an 

opportunity to respond. If, after 

considering the company’s response, 

AMS continues to believe that a 

violation of the FSA has occurred, 

monetary penalties as provided by 

section 406 of the FSA (7 U.S.C. 1596) 

will be assessed. The amount of the 

penalty for each violation depends upon 

a violator’s compliance history and the 

seriousness of the violation. 

In addition to monetary penalty 

actions, the FSA provides additional 

enforcement authorities which AMS 

will consider in appropriate cases. 

Section 405 of the FSA (7 U.S.C. 1595) 

authorizes the Department of 

Agriculture to bring a proceeding in 

Federal district court to seize any seed 

sold or transported in interstate 

commerce in violation of the FSA. If the 

court finds in favor of the USDA, the 

seed can be sold, destroyed, or returned 

to the owner after payment of all costs 

and the execution of a bond ensuring 

that seed will not be sold in violation of 

the provisions of the FSA. 

59770 Federal Register / Vol. 67, No. 185 / Tuesday, September 24, 2002 / Rules and Regulations 

Section 409 of the FSA (7 U.S.C. 

1599) authorizes the USDA to initiate an 

administrative proceeding against 

anyone who violates any FSA provision 

or regulation, and to issue an order to 

cease and desist from continuing such 

violation. In the event the violator does 

not cease and desist, the order may be 

enforced in the Federal courts pursuant 

to section 411 of the FSA (7 U.S.C. 

1601). 

If a violation is knowingly committed, 

sections 406(a) (7 U.S.C. 1596(a)) and 

407 of the FSA (7 U.S.C. 1957) allow the 

USDA to initiate criminal charges 

against such violators. This criminal 

provision also applies to violations 

which are the result of gross negligence 

or the result of the violator’s failure to 

make a reasonable effort to be informed 

of the pertinent facts. Violators of this 

provision may be punished by a fine of 

$1,000 for the first offense, and $2,000 

for each subsequent offense. In addition, 

civil settlements described in section 

406(b) of the FSA (7 U.S.C. 1596(b)) 

apply to violations that are not deemed 

to be due to gross negligence. Violators 

of this provision shall forfeit not less 

than $25 or more than $500 for each 

violation. 

AMS is committed to enforcement of 

the labeling provisions of the FSA 

through its ongoing program of testing 

and monitoring, and encourages persons 

with knowledge of FSA violations to 

report them to: Richard C. Payne, Chief, 

Seed Regulatory and Testing Branch, 

Livestock and Seed Program, AMS, 

USDA, Room 209, Building 306, BARCEast, Beltsville, Maryland 20705–2325; 

Telephone: (301) 504–9237; Fax: (301) 

504–8098; E-mail: 

Richard.Payne2@usda.gov.

Dated: September 17, 2002. 

A.J. Yates, 

Administrator, Agricultural Marketing 

Service.

[FR Doc. 02–24186 Filed 9–23–02; 8:45 am] 

BILLING CODE 3410–02–P

DEPARTMENT OF AGRICULTURE

Farm Service Agency 

7 CFR Part 771 

Rural Housing Service 

Rural Business—Cooperative Service 

Rural Utilities Service 

Farm Service Agency 

7 CFR Part 1941 

RIN 0560–AG69 

Boll Weevil Eradication Loan Program

AGENCY: Farm Service Agency, USDA.

ACTION: Final rule.

SUMMARY: This action is being taken to 

finalize provisions of the interim 

regulations published May 16, 1997, 

that implemented the Boll Weevil 

Eradication Loan Program. This rule 

also implements changes intended to 

continue to assist in the eradication of 

the boll weevil, and promote 

cooperation between the United States 

Department of Agriculture (USDA) and 

State chartered organizations with 

regard to boll weevil eradication.

DATES: This rule is effective September 

24, 2002.

FOR FURTHER INFORMATION CONTACT:

Richard W. Sharp, Senior Loan Officer, 

Funds Management/Direct Loans 

Branch, Farm Service Agency (FSA). 

Telephone: 202–690–0651; facsimile: 

202–690–1117; e-mail; 

Richard_Sharp@wdc.usda.gov

SUPPLEMENTARY INFORMATION: 

Executive Order 12866 

This final rule has been determined to 

be not significant for purposes of 

Executive Order 12866 and, therefore, 

has not been reviewed by the Office of 

Management and Budget. 

Regulatory Flexibility Act 

FSA certifies that this rule will not 

have a significant economic impact on 

a substantial number of small entities. 

This program applies only to chartered 

organizations whose primary mission is 

the eradication of the boll weevil. These 

loans cannot be made to small entities 

or individuals. Thus, a Regulatory 

Flexibility Analysis is not required. 

Environmental Impact Statement 

A Finding Of No Significant Impact 

was published for the interim rule on 

April 21, 1997. There is no significant 

change in this final rule. Therefore, no 

further environmental assessments are 

required. 

Executive Order 12988 

This rule has been reviewed in 

accordance with Executive Order 12988, 

Civil Justice Reform. All State and local 

laws and regulations that are in conflict 

with this rule will be preempted. No 

retroactive effect will be given to this 

rule. This rule will not affect agreements 

entered into prior to the effective date 

of the rule. The administrative appeal 

provisions published at 7 CFR part 11 

must be exhausted before bringing any 

action for judicial review. 

Executive Order 12372 

For reasons set forth in the Notice to 

7 CFR part 3015, subpart V (48 FR 

29115, June 24, 1983), the programs and 

activities within this rule are excluded 

from the scope of Executive Order 

12372, which requires 

intergovernmental consultation with 

State and local officials.

Unfunded Mandates 

Title II of the Unfunded Mandates 

Reform Act of 1995 (UMRA), Public 

Law 104–4, establishes requirements for 

Federal agencies to assess the effects of 

their regulatory actions on State, local, 

and tribal governments as well as in the 

private sector. This rule contains no 

Federal mandates, under the regulatory 

provisions of title II of the UMRA, for 

State, local, and tribal governments or 

the private sector. Therefore, this rule is 

not subject to the requirements of 

sections 202 and 205 of the UMRA. 

Paperwork Reduction Act 

FSA has reviewed this rule to 

determine the applicability of the 

Paperwork Reduction Act of 1995. In 

accordance with 5 CFR 1320.3(c)(4), 

there are fewer than 10 persons or 

organizations from which the collection 

of information can reasonably be 

expected within a 12-month period. The 

information requirements of this 

program do not impact a substantial 

majority of the industry, nor do the 

requirements meet the rule of general 

applicability. Therefore, the provisions 

of 5 CFR part 1320 do not apply to this 

rule. 

New CFR Part 

This rule will relocate the Boll Weevil 

Eradication Loan Program from 7 CFR 

part 1941, subpart C, to 7 CFR part 771. 

This will better organize the regulation 

and incorporate it with the other FSA 

regulations.