[Federal Register Volume 65, Number 210 (Monday, October 30, 2000)]
[Rules and Regulations]
[Pages 64594-64596]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-27715]


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DEPARTMENT OF AGRICULTURE

Farm Service Agency

7 CFR Parts 718 and 729

Commodity Credit Corporation

7 CFR Part 1446

RIN 0560-AF61


Amendments to Regulations Governing the Peanut Poundage Quota and 
Price Support Programs

AGENCIES: Farm Service Agency and Commodity Credit Corporation, USDA.

ACTION: Final rule.

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SUMMARY: The Commodity Credit Corporation (CCC) and Farm Service Agency 
(FSA) are adopting as a final rule the provisions of an interim rule 
issued February 18, 2000, which made minor changes to regulations 
governing the peanut poundage quota and price support programs. The 
rule also makes a technical amendment to the regulations to reinstate 
compliance regulations that are applicable to tolerance for peanut 
acreage reported as planted. In addition, this rule makes technical 
corrections which update regulations dealing with appeals and with 
imported peanuts.
    This action is necessary to improve the administration of the 
peanut quota and price support programs.

DATES: Effective October 30, 2000.

FOR FURTHER INFORMATION CONTACT: David Kincannon, (202) 720-7914.

SUPPLEMENTARY INFORMATION:   

Executive Order 12866

    For purposes of Executive Order 12866, this rule was determined to 
be not significant and was not reviewed by the Office of Management and 
Budget (OMB) under Executive Order 12866.

Regulatory Flexibility Act

    The Regulatory Flexibility Act is not applicable to this interim 
rule because neither the FSA nor CCC is required by 5 U.S.C. 553 or any 
other provision of law to publish a notice of proposed rulemaking with 
respect to the subject matter of this rule.

Environmental Evaluation

    It has been determined by an environmental evaluation that this 
action will have no significant impact on the quality of the human 
environment. Therefore, neither an Environmental Assessment nor an 
Environmental Impact Statement is needed.

Unfunded Federal Mandates

    This rule contains no Federal mandates under the regulatory 
provisions of Title II of the Unfunded Mandate Reform Act of 1995 
(UMRA), for State, local, and tribal governments or the private sector. 
Thus, this rule is not subject to the requirements of sections 202 and 
205 of the UMRA.

Federal Assistance Program

    The title and number of the Federal Assistance Program, as found in 
the Catalog of Federal Domestic Assistance, to which this interim rule 
applies are: Commodity Loans and Purchases--10.051.

Executive Order 12372

    This program is not subject to the provisions of Executive Order 
12372, which requires intergovernmental consultation with State and 
local officials. See the Notice related to 7 CFR part 3015, subpart V, 
published at 48 FR 29115 (June 24, 1983).

Executive Order 12988

    This rule has been reviewed in accordance with Executive Order 
12988. The provisions of this rule do not preempt State laws to the 
extent that such laws are consistent with the provisions of this rule. 
Before any legal action may be brought regarding determinations of this 
rule, the administrative appeal provisions set

[[Page 64595]]

forth at 7 CFR part 780 must be exhausted.

National Appeals Division Rules of Procedure

    The procedures set out in 7 CFR parts 11 and 780 apply to appeals 
of adverse decisions made under the regulations adopted in this rule.

Paperwork Reduction Act

    The information collection reporting requirements contained in the 
regulations at 7 CFR parts 729 and 1446 include OMB Control Numbers 
0560-0006 and 0560-0014 assigned by OMB. The 0560-0006 collection 
requirements have been approved by OMB and the 0560-0014 collection 
requirements have been forwarded for approval. The provisions of this 
rule do not impose new reporting requirements or changes in existing 
information collection requirements.

Background

    An interim rule issued by CCC and FSA on February 18, 2000, 
initiated changes to regulations at 7 CFR parts 718, 729 and 1446 
applicable to the peanut poundage quota and price support programs. The 
changes were relatively minor and primarily clarified administrative 
provisions. Some changes corrected erroneous references and, in one 
case, restated a necessary provision inadvertently omitted in previous 
rulemaking. Several changes provided peanut producers greater 
flexibility. The comment period expired March 20. FSA received no 
comments to the amendments made effective by the interim rule. 
Accordingly, the provisions of the interim rule have been adopted as 
final amendments to the regulations.
    In addition, this final rule amends Sec. 1446.416 to remove the 
specific reference to section 22 of the Agricultural Adjustment Act of 
1933, as amended (1933 Act), to add references to other authority 
pursuant to which the President could temporarily suspend restrictions 
on the importation of peanuts and to amend references to the National 
Appeals Division that are no longer applicable or appropriate due to 
statutory and regulatory changes.
    Suspension of Restrictions on Imported Peanuts
    Under Section 358e(f)(6) of the Agricultural Adjustment Act of 1938 
(1938 Act), it is provided that notwithstanding any other provision of 
the 1938 Act, if the President issues a proclamation under section 
404(b) of the Uruguay Round Agreements Act (19 USCS 3601(b)) expanding 
the quantity of peanuts subject to the in-quota rate of duty under a 
tariff-rate quota, or under section 22 of the Agricultural Adjustment 
Act (7 U.S.C. 624), reenacted with amendments by the Agricultural 
Marketing Agreement Act of 1937, temporarily suspending restrictions on 
the importation of peanuts, the Secretary shall, subject to such terms 
and conditions as the Secretary may prescribe, permit a handler, with 
the written consent of the producer, to purchase additional peanuts 
from any producer who contracted with the handler and to offer the 
peanuts for sale for domestic edible use. That provision is 
administered, for the peanut program, under 7 CFR 1446.616 but until 
this notice, which updates the regulation, the only statutory provision 
referred to in the regulation was Section 22 of the Agricultural 
Adjustment Act. This notice amends 1446.416 so that it will more 
closely track the provision of Section 358e(f)(6) of the 1938 Act.

Reductions of Penalties and Appeals

    The National Appeals Division (NAD) was reorganized by the Federal 
Crop Insurance Reform and Department of Agriculture Reorganization Act 
of 1994 (Pub. L. 103-345) (the Act) and made subject to the general 
supervision of and policy direction of the Secretary of Agriculture. As 
a result of the reorganization, a new part 11 was added to 7 CFR 
Subtitle A to set forth the provisions for program participants to seek 
review of an adverse decision. The provisions of 7 CFR 1446.704 no 
longer accurately reflected the appeal process as set forth in the 
regulations at 7 CFR part 11 applicable to NAD. In addition, there was 
no reference to the appeal regulations at 7 CFR part 11. Accordingly, 
the provisions of Sec. 1446.704 are amended by this final rule to 
address penalty reductions only and a new section, Sec. 1446.705 is 
added to direct the public to the appeal regulations at 7 CFR parts 11 
and 780.
    Because no comments were received on the amendments implemented by 
the interim rule and since the amendments were minor, clarifying and 
administrative in nature, the interim rule published at 65 FR 8245 on 
February 18, 2000, amending 7 CFR parts 718, 729 and 1446, is adopted 
by this rule as final without change. The changes made are of 
administrative nature for clarification. We have determined that these 
changes should be included in this final rule as a delay in 
implementation would be contrary to the public interest.

List of Subjects

7 CFR Part 718

    Acreage allotments, Drug traffic control, Loan programs-
agriculture, Marketing quotas, Price support programs, Reporting and 
recordkeeping requirements.

7 CFR Part 729

    Marketing quotas, Peanuts, Penalties, Reporting and recordkeeping 
requirements.

7 CFR Part 1446

    Loan programs-agriculture, Peanuts, Price support programs, 
Reporting and recordkeeping requirements, Warehouses.

    Accordingly, for the reasons set forth in the preamble, changes to 
7 CFR parts 718, 729 and 1446 as issued as an interim rule are adopted 
as final without change. In addition, part 1446 is further amended as 
follows:

PART 1446-PEANUTS

    1. The authority citation for part 1446 continues to read as 
follows:

    Authority: 7 U.S.C. 7271; 15 U.S.C. 714b and 714c.


Sec. 1446.416  [Amended]

    2. Section 1446.416 is amended by removing the phrase ``section 22 
of the Agricultural Adjustment Act of 1933, as amended,'' and adding 
the phrase ``Section 404(b) of the Uruguay Round Agreements Act (19 
USCS Sec. 3601(b)) expanding the quantity of peanuts subject to the in-
quota rate of duty under a tariff-rate quota, or under section 22 of 
the Agricultural Adjustments Act (7 U.S.C. 624), reenacted with 
amendments by the Agricultural Marketing Agreement Act of 1937''.

    3. Section 1446.704 is revised to read as follows:


Sec. 1446.704  Reductions of penalties.

    (a) Request for reconsideration. A handler who is dissatisfied with 
a penalty that has been assessed against such handler by the CCC 
Contracting Officer pursuant to this part may file a written request 
for reconsideration or reduction of the penalty that has been assessed. 
Such request must be made within 15 days after the date of the notice 
of assessment.
    (b) Reduction of penalties.
    (1) By CCC Contracting Officer. To the extent permitted by the 
provisions of paragraph (d) of this section, the CCC Contracting 
Officer may reduce the amount of penalty that is otherwise determined 
or assessed in accordance

[[Page 64596]]

with this part. Such reduction may be made before the penalty is 
assessed or may be made during the course of an appeal.
    (2) By the Executive Vice President, CCC. To the extent permitted 
by the provisions of paragraph (d) of this section, the Executive Vice 
President, CCC, or the Executive Vice President's designee, may reduce 
the amount of penalty that has been assessed in accordance with this 
part.
    (c) Reduction criteria. A penalty that is determined or assessed in 
accordance with this part may be reduced by the CCC Contracting Officer 
or the Executive Vice President, CCC, or the Executive Vice President's 
designee, if such person determines that:
    (1) The violation for which the penalty was assessed was minor or 
inadvertent;
    (2) A reduction in the amount of the penalty would not impair the 
effective operation of the peanut program; and
    (3) The assessment of penalty was not made for failure to export 
contract additional peanuts.
    (d) Reduction limits.
    (1) If the reduction criteria in paragraph (c) of this section has 
been met, the CCC Contracting Officer or the Executive Vice President, 
CCC, or the Executive Vice President's designee, as applicable, may 
reduce the penalty by such amount as such person considers appropriate 
(including a full reduction of the entire penalty) after taking into 
account the severity of the violation and the violation history of the 
handler.
    (2) If one of the criteria in paragraphs (c) (1) and (2) of this 
section has not been satisfied and the remaining criteria has been 
satisfied, the penalty shall not be reduced to less than an amount 
which is equal to 40 percent of the national average quota support rate 
for the applicable crop year times the quantity of peanuts involved in 
the violation.
    (3) There shall not be a limit on the amount by which an assessment 
of liquidated damages may be reduced by the CCC Contracting Officer or 
the Executive Vice President, CCC, or the Executive Vice President's 
designee.


Sec. 1446.705 and 1446.706  [Redesignated as sections 1446.706 and 
1446.707]

    4. Sections 1446.705 and 1446.706 are redesignated as 1446.706 and 
1446.707 and Sec. 1446.705 is added to read as follows:


Sec. 1446.705  Appeals.

    A handler may obtain reconsideration and review of any adverse 
determination made under this part in accordance with the appeal 
regulations found at 7 CFR parts 11 and 780 of this title.

    Signed at Washington, D.C., on October 23, 2000.
Keith Kelly,
Administrator, Farm Service Agency and Executive Vice President, 
Commodity Credit Corporation.
[FR Doc. 00-27715 Filed 10-27-00; 8:45 am]
BILLING CODE 3410-05-P