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[Federal Register Volume 79, Number 106 (Tuesday, June 3, 2014)]
[Rules and Regulations]
[Pages 31843-31845]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-12589]

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Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER 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 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 
Prices of new books are listed in the first FEDERAL REGISTER issue of each 
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Federal Register / Vol. 79, No. 106 / Tuesday, June 3, 2014 / Rules 
and Regulations

[[Page 31843]]

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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 63

[Doc. No. AMS-LPS-14-0028]

National Sheep Industry Improvement Center

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim rule and request for comments.

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SUMMARY: As provided under the Agriculture Act of 2014 (2014 Farm 
Bill), the Agricultural Marketing Service (AMS) is amending the 
National Sheep Industry Improvement Center (NSIIC) regulations. This 
interim rule redesignates the statutory authority from section 375 of 
the Consolidated Farm and Rural Development Act to the Agricultural 
Marketing Act of 1946, amends the definition of the Act in the 
regulations consistent with the redesignated statutory authority, and 
amends the regulations by increasing the administrative cap for the use 
of the fund from 3 percent to 10 percent.

DATES: Effective Date: This interim rule is effective June 4, 2014.
    Comment Date: Written comments on the regulatory provisions of this 
interim rule must be received by July 3, 2014.

ADDRESSES: Interested persons are invited to submit comments concerning 
this interim rule. Comments must be posted on http://www.regulations.gov; or sent to Kenneth R. Payne, Director, Research 
and Promotion Division, Livestock, Poultry and Seed Program, AM, USDA, 
Room 2608-S, STOP 0251, 1400 Independence Avenue SW., Washington, DC 
20250-0251; via Fax to 202/720-1125; or email to 
Kenneth.Payne@ams.usda.gov.
    All comments should reference the document number (AMS-LPS-14-0028) 
and the volume, date, and page number of this issue of the Federal 
Register and will be made available for public inspection at the 
aforementioned address during regular business hours or viewed at 
http://www.regulations.gov. All comments submitted in response to this 
rule will be included in the record and will be made available to the 
public. Please be advised that the identity of the individuals or 
entities submitting comments will be made public on the internet at the 
address provided above.

FOR FURTHER INFORMATION CONTACT: Kenneth R. Payne, Director, Research 
and Promotion Division, Livestock, Poultry and Seed Program; Telephone 
202/720-5705; Fax: 202/720-1125; or email Kenneth.Payne@ams.usda.gov.

SUPPLEMENTARY INFORMATION: As provided under the 2014 Farm Bill, this 
interim rule redesignates the statutory authority for the program from 
section 375 (7 U.S.C. 2008j) of the Consolidated Farm and Rural 
Development Act to section 210 of the Agricultural Marketing Act of 
1946 (7 U.S.C. 1621-1627). In addition, the definition of ``Act'' is 
amended under section 63.1 to be consistent with the redesignated 
statutory authority, and amends the regulations by increasing the 
administrative cap for the use of the fund from 3 percent to 10 
percent.

Executive Order 12866 and Executive Order 13563

    Executive Orders 12866 and 13563 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health, and safety effects, distributive impacts and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, reducing costs, harmonizing rules, and promoting flexibility. 
This action has been designated as a ``non-significant regulatory 
action'' under of Executive Order 12866. Accordingly, the Office of 
Management and Budget (OMB) has waived the review process.

Executive Order 13175

    This interim final rule has been reviewed in accordance with the 
requirements of Executive Order 13175, Consultation and Coordination 
with Indian Tribal Governments. The review reveals that this interim 
final rule would not have substantial and direct effects on Tribal 
Governments and would not have significant tribal implications.

Executive Order 12988

    This interim final rule has been reviewed under Executive Order 
12988, Civil Justice Reform. This action is not intended to have a 
retroactive effect. There are no administrative procedures which must 
be exhausted prior to any judicial challenge to the provisions of this 
rule.

Executive Order 13132

    This interim rule has been reviewed under Executive Order 13132, 
Federalism, and has been determined that this rule does not have 
sufficient Federalism implications to warrant the preparation of a 
Federalism Assessment. The provisions contained in this rule would not 
have a substantial direct effect on States or their political 
subdivisions or on the distribution of power and responsibilities among 
the various levels of government.

Regulatory Flexibility Act

    In accordance with the Regulatory Flexibility Act (RFA) (5 U.S.C. 
601-612), the agency is required to examine the impact of regulatory 
actions on small entities. The purpose of the RFA is to fit regulatory 
actions to the scale of businesses subject to such actions so that 
small businesses will not be disproportionately burdened.
    Pursuant to the requirements set forth in the RFA, AMS has 
considered the economic effect of this action on small entities and has 
determined that this final rule will not have a significant impact on a 
substantial number of small entities. The purpose of the RFA is to fit 
regulatory action to the scale of businesses subject to such action in 
order that small businesses will not be unduly burdened.
    The U.S. Department of Agriculture's (USDA), National Agricultural 
Statistics Service's February 2013 publication of ``Farms, Land in 
Farms, and Livestock Operations'' estimated that in 2012 the number of 
operations in the United States with sheep and goats totaled 
approximately 79,500 and 149,500, respectively and would be classified 
as small entities.
    The Small Business Administration defines, in 13 CFR 121, small

[[Page 31844]]

agricultural producers as those having annual receipts of no more than 
$750,000, and small agricultural service firms as those having annual 
receipts of no more than $7 million. Under these definitions, the 
majority of the producers that will be affected by this rule are 
considered small entities.
    The purpose of NSIIC is to: (1) Promote strategic development 
activities and collaborative efforts by private and State entities to 
maximize the impact of Federal assistance to strengthen and enhance the 
production and marketing of sheep or goat products in the United 
States; (2) Optimize the use of available human capital and resources 
within the sheep or goat industries; (3) Provide assistance to meet the 
needs of the sheep or goat industry for infrastructure development, 
business development, production, resource development, and market and 
environmental research; (4) Advance activities that empower and build 
the capacity of the U.S. sheep or goat industry to design unique 
responses to the special needs of the sheep or goat industries on both 
a regional and national basis; and (5) Adopt flexible and innovative 
approaches to solving the long-term needs of the United States sheep or 
goat industry.
    A Board of Directors (Board) manages and is responsible for the 
general supervision of the structure of the NSIIC, with oversight from 
USDA. The Board is comprised of seven voting members, of whom four 
would be active producers of sheep or goats in the United States, two 
would have expertise in finance and management, and one would have 
expertise in lamb, wool, goat, or goat product marketing. The Secretary 
of Agriculture (Secretary) appoints the voting members from nominations 
submitted by eligible organizations. There are also two non-voting 
members on the Board, the Under Secretary of Agriculture for Marketing 
and Regulatory Programs and the Under Secretary of Agriculture for 
Research, Education, and Economics.
    As provided under the 2014 Farm Bill, AMS is amending NSIIC 
regulations at 7 CFR part 63. This interim rule redesignates (1) the 
statutory authority from section 375 (7 U.S.C. 2008j) of the 
Consolidated Farm and Rural Development Act to the Agricultural 
Marketing Act of 1946 (7 U.S.C. 1621-1627), (2) amends the definition 
of the Act under section 63.1 consistent with the redesignated 
statutory authority, and (3) amends the regulations by increasing the 
administrative cap for the use of the fund from 3 percent to 10 
percent. Accordingly, AMS has considered the economic impact of this 
rule on small entities. AMS has determined that this rule will not have 
a significant economic impact on a substantial number of small entities 
as defined in the RFA.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (PRA) (44 
U.S.C. Chapter 35), the reporting and recordkeeping requirements 
included in 7 CFR part 63 were previously approved by OMB and were 
assigned control number 0581-0093. No additions have been made to the 
PRA.

Background Information

    The NSIIC was initially authorized under the Consolidated Farm and 
Rural Development Act (Act). The Act, as amended, was passed as part of 
the 1996 Farm Bill (Pub. Law 104-127). The initial legislation included 
a provision that privatized the NSIIC 10 years after its ratification 
or once the full appropriation of $50 million was disbursed. 
Subsequently, the NSIIC was privatized on September 30, 2006 (72 FR 
28945).
    In 2008, the NSIIC was re-established under Title XI of the Food, 
Conservation, and Energy Act of 2008 (Pub. L. 110-246), also known as 
the 2008 Farm Bill. Section 11009 of the 2008 Farm Bill repealed the 
requirement in section 375(e)(6) of the Act to privatize the NSIIC. 
Additionally, the 2008 Farm Bill provided for $1,000,000 in mandatory 
funding for fiscal year 2008 from the Commodity Credit Corporation for 
the NSIIC to remain available until expended, as well as authorization 
for appropriations in the amount of $10 million for each of fiscal 
years 2008 through 2012. In July 2010, USDA promulgated rules and 
regulations establishing the NSIIC, consistent with the Food, 
Conservation, and Energy Act of 2008 (75 FR 43031). The rule 
established the NSIIC and a Board that will manage and be responsible 
for the general supervision of the activities of the NSIIC, with 
oversight from the USDA. The NSIIC is authorized to use funds to make 
grants to eligible entities in accordance with a strategic plan.
    The authorizing legislation established in the United States 
Department of the Treasury (Treasury) the NSIIC Revolving Fund (Fund). 
The Fund was available to the NSIIC, without fiscal year limitation, to 
carry out the authorized programs and activities of the NSIIC. The law 
provides authority for amounts in the Fund to be used for direct loans, 
loan guarantees, cooperative agreements, equity interests, investments, 
repayable grants, and grants to eligible entities, either directly or 
through an intermediary, in accordance with a strategic plan submitted 
by the NSIIC to the Secretary. In accordance with the 2014 Farm Bill, 
AMS is amending the National Sheep Industry Improvement Center 
regulations at 7 CFR part 63 as provided for herein.
    The management of the NSIIC is vested in a Board that is appointed 
by the Secretary. The Secretary reviews and monitors compliance of the 
Board as provided under the Act and rules and regulations. The Board is 
composed of seven voting members, of whom four would be active 
producers of sheep or goats in the United States, two would have 
expertise in finance and management, and one would have expertise in 
lamb, wool, goat, or goat product marketing. The Board also includes 
two non-voting members, the Under Secretary of Agriculture for 
Marketing and Regulatory Programs and the Under Secretary of 
Agriculture for Research, Education, and Economics. The Secretary 
appoints the voting members from nominations submitted by eligible 
organizations. A member's term of office shall be 3 years with a 
maximum of two terms. Board members initially served staggered terms of 
1, 2, or 3 years, as determined by the Secretary. Only national 
organizations that (1) consist primarily of active sheep or goat 
producers in the United States and (2) have the primary interest of 
sheep or goat production in the United States can make nominations to 
the Board.
    The Board meets not less than once each fiscal year. Board members 
do not receive compensation for serving on the Board, but are 
reimbursed for travel, subsistence, and other necessary expenses. The 
Board is responsible for general supervision of the NSIIC; review of 
any contract and grant to be made or entered into by the NSIIC and any 
financial assistance provided to the NSIIC; making final decision--by 
majority vote--on whether or not to provide grants to an eligible 
entity; and developing and establishing a budget plan and long-term 
operating plan to carry out the goals of the NSIIC.
    The authorizing legislation establishes in the United States 
Treasury, the NSIIC Fund. The Fund is available to the NSIIC, without 
fiscal year limitation, to carry out the authorized programs and 
activities of the NSIIC. The law provides authority for amounts in the 
Fund to be used to carry out authorized program activities of the 
NSIIC.
    The current program authorizes a grant-only program administered by 
the

[[Page 31845]]

NSIIC Board. Based on funding, the Board announces that proposals may 
be submitted to the Board for consideration from eligible entities. The 
Board determines how funds are allocated. Proposals submitted to the 
Board must be consistent with the purpose of the NSIIC.

Discussion of Interim Regulatory Text

    As provided under 2014 Farm Bill, the AMS is amending the National 
Sheep Industry Improvement Center regulations at 7 CFR Part 63. This 
interim rule redesignates (1) the statutory authority from section 375 
(7 U.S.C. 2008j) of the Consolidated Farm and Rural Development Act to 
the Agricultural Marketing Act of 1946 (7 U.S.C. 1621-1627), (2) amends 
the definition of the Act under section 63.1 consistent with the 
redesignated statutory authority, and (3) amends the regulations by 
increasing the administrative cap for the use of the funds from 3 
percent to 10 percent.
    Pursuant to 5 U.S.C. 553, it is found and determined upon good 
cause that it is impracticable 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 rule 
until 30 days after publication in the Federal Register because: (1) 
These changes need to be in effect as soon as possible because the next 
available funding opportunities are scheduled to begin in July; and (2) 
the amendments are necessary to implement provision under the 2014 Farm 
Bill. For these same reasons a 30-day comment period is deemed 
appropriate.

List of Subjects in 7 CFR Part 63

    Administrative practice and procedure, Advertising, Lamb and lamb 
products, Goat and goat products, Consumer information, Marketing 
agreements, Reporting and recordkeeping requirements.

    For the reasons set forth in the preamble, Chapter I of Title 7 of 
the Code of Federal Regulations is amended as follows:

PART 63--NATIONAL SHEEP INDUSTRY IMPROVEMENT CENTER

0
1. Revise the authority for part 63 to read as follows:

    Authority: 7 U.S.C. 1621-1627.

0
2. Revise Sec.  63.1, Act, to read as follows:

Sec.  63.1  Act.

Act means the Agricultural Marketing Act of 1946 (7 U.S.C. 1621-1627).

0
3. In Sec.  63.301 revise paragraph (a)(6) to read as follows:

Sec.  63.301  Use of Fund.

* * * * *
    (a) * * *
    (6) For administration purposes, with a maximum 10 percent of the 
NSIIC Fund balance at the beginning of each fiscal year for the 
administration of the NSIIC;
* * * * *

    Dated: May 27, 2014.
Rex A. Barnes,
Associate Administrator.
[FR Doc. 2014-12589 Filed 6-2-14; 8:45 am]
BILLING CODE 3410-02-P
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