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

25624

Vol. 60, No. 92

Friday, May 12, 1995

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 29

[Docket No. TB–95–08]

Tobacco Fees and Charges for

Mandatory Inspection

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Proposed rule.

SUMMARY: The Tobacco Inspection Act

requires the Secretary to fix and collect

fees and charges for inspection and

certification, the establishment of

standards, and other services, including

administrative and supervisory costs, at

designated tobacco auction markets in

all tobacco producing areas. The fees

collected must, as nearly as possible,

cover the Department’s costs of

performing these services and also

maintain a reserve sufficient to cover at

least 4 months of operation. This

proposed rule would increase the fee

from $.0070 to $.0083 per pound to

cover the increased cost of operating the

tobacco inspection program and

replenish the operating reserve. The last

increase in the fee was in 1991.

DATES: Comments are due on or before

June 12, 1995.

ADDRESSES: Send comments to John P.

Duncan, III, Director, Tobacco Division,

Agricultural Marketing Service (AMS),

United States Department of Agriculture

(USDA), Room 502, Annex Building,

P.O. Box 96456, Washington, DC 20090–

6456. Comments will be available for

public inspection at this location during

regular business hours.

FOR FURTHER INFORMATION CONTACT: John

P. Duncan, III, Director, Tobacco

Division, AMS, USDA, Room 502,

Annex Building, P.O. Box 96456,

Washington, DC 20090–6456.

Telephone (202) 205–0567.

SUPPLEMENTARY INFORMATION: Notice is

hereby given that the Department

proposes to amend the regulations

governing the mandatory inspection and

certification of producer tobacco sold at

designated auction markets throughout

the tobacco producing areas. The

proposed amendment would increase

the fees and charges assessed by the

Department for providing inspection

and certification of tobacco at

designated auction markets,

establishment of standards, and other

services. The new fee would cover the

increased cost of operating the program,

including administrative and

supervisory costs, and replenish the

operating reserve which has been drawn

down for several years to cover the

difference between revenue and

obligations and is now below the

required level of 4 months. Authority

for these regulations is contained in the

Tobacco Inspection Act (7 U.S.C. 511–

511q).

The current fee of $.0070 per pound

has been in effect since July 11, 1991,

as published in the Federal Register (56

FR 31533–31534).

The Department conducts a yearly

review of the financial status of this

program to determine whether the fee is

sufficient. Obligations incurred during

the 1993–94 marketing season were

$13,468,000 while revenue, including

investments, totaled $13,112,000

resulting in a loss of $356,000. However,

there was still an operating reserve of

almost 5 months available. With 3

months remaining in the 1994–95

marketing season, obligations are

estimated at $12,969,000 but revenues

are expected to reach only $11,647,000

resulting in a loss of $1,322,000 and

reducing the operating reserve to 3.8

months. At the current level of service

and fee structure, obligations for the

1995–96 marketing season are estimated

at $13,754,000 with revenue of

$12,155,000 for a loss of $1,599,000 and

a further reduction in the operating

reserve to 2.2 months. If the same level

of service and fee structure continues

for the 1996–97 season the estimated

loss would exceed $2,000,000 and the

operating reserve would fall below 1

month.

The major items affecting obligations

are increases in salaries, benefits, travel

costs and overall administrative costs in

each year since 1991. Revenue depends

on the amount of tobacco sold on the

designated auction markets. Production

quotas for flue-cured and burley were

relatively stable for the 1992 and 1993

crops; fell sharply in 1994 and were

unchanged for burley for 1995 but

increased 16 percent for flue-cured.

However, the cost of providing the

service has continued to rise. An

analysis of available data indicates that

a fee of $.0083 per pound effective for

the 1995 crop would provide sufficient

revenue to exceed obligations by

$560,000 for the 1995–96 marketing

season and bring the operating reserve

up to 4 months.

Information on program income and

expenses was presented to the National

Advisory Committee for Tobacco

Inspection Services at a meeting on

January 19, 1995, in Lexington,

Kentucky, and again on April 6, 1995,

in Raleigh, North Carolina. The National

Advisory Committee, consisting of 14

members representing tobacco

producers, and appointed by the

Secretary of Agriculture, was

established by law in 1981 to advise the

Secretary on the level of services needed

and the fees necessary to cover those

services. The Committee recommended

that the level of services remain

unchanged and that the fee be increased

to $.0075 per pound.

In considering the Committee’s

recommendation the Department notes

that while a fee of $.0075 per pound

will result in smaller losses for the 1995

and 1996 marketing years, the operating

reserve will continue to fall and would

be below 2 months at the end of the

1996 season.

Furthermore, the difference between

$.0075 and $.0083 per pound is only

$.80 for every 1,000 pounds; $8.00 for

10,000 pounds; and $80 for 100,000

pounds so the additional yearly cost for

an average producer would range

between $20.00 and $40.00. Therefore,

since the Committee does not

recommend a reduction in the level of

services, and the recommended fee will

not cover the cost of the program, the

Department is proposing a fee of $.0083

per pound effective at the start of the

1995 marketing season.

The marketing season for tobacco

does not coincide with the Federal fiscal

year. Therefore, it is anticipated that any

increased fee would be made effective

on July 1, 1995.

This rule has been determined not

significant for purposes of Executive

Order 12866, and therefore has not been

reviewed by the Office of Management

and Budget.

This proposed rule has been reviewed

under Executive Order 12778, Civil
Federal Register / Vol. 60, No. 92 / Friday, May 12, 1995 / Proposed Rules 25625

Justice Reform. This action is not

intended to have retroactive effect. This

proposed 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.

Additionally, in conformance with

the provisions of the Regulatory

Flexibility Act (5 U.S.C. 601 et. seq.) full

consideration has been given to the

potential economic impact upon small

business. Most of the firms which

would be affected by the rule are small

businesses. Small agricultural producers

have been defined by the Small

Business Administration (13 CFR

121.601) as those having gross annual

receipts of less than $500,000, and small

agricultural service firms are defined as

those whose annual receipts are less

than $5,000,000. The Administrator,

Agricultural Marketing Service, has

determined that this action would not

have a significant economic impact on

a substantial number of small entities.

This proposed rule would not

substantially affect the normal

movement of the commodity in the

marketplace. Compliance with this

proposed rule would not impose

substantial direct economic costs,

recordkeeping, or personnel workload

changes on small entities, and would

not alter the market share or competitive

positions of small entities relative to the

large entities and would in no way

affect normal competition in the

marketplace. Furthermore, the

Department is required by law to fix and

collect fees and charges to cover the

Department’s cost in operating the

tobacco inspection program.

All persons who desire to submit

written data, views, or arguments for

consideration in connection with this

proposal may file them with the

Director, Tobacco Division, AMS,

USDA, Room 502, Annex Building, P.O.

Box 96456, Washington, DC 20090–

6456, not later than June 12, 1995.

List of Subjects in 7 CFR Part 29

Administrative practice and

procedure, Advisory committees,

Government publications, Imports,

Pesticides and pests, Reporting and

recordkeeping requirements, Tobacco.

Accordingly, the Department is

proposing to amend the regulations

under the Tobacco Inspection Act

contained in 7 CFR Part 29 as follows:

PART 29—TOBACCO INSPECTION

1. The authority citation for Part 29,

subpart B continues to read as follows:

Authority: 7 U.S.C. 511m and 511r.

§ 29.123 [Amended]

2. In § 29.123, paragraph (a) is

amended by removing the words

‘‘$.0070 per pound’’ and adding in its

place ‘‘$.0083 per pound’’.

Dated: May 5, 1995.

Lon Hatamiya,

Administrator.

[FR Doc. 95–11743 Filed 5–11–95; 8:45 am]

BILLING CODE 3410–02–P

Food and Consumer Services

7 CFR Part 278

RIN 0584–AC00

Food Stamp Program: Revisions in

Use and Disclosure Rules Involving

the Sharing of Information Provided by

Retail and Wholesale Food Concerns

With Other Federal and State Agencies

AGENCY: Food and Consumer Service,

USDA.

ACTION: Proposed rule.

SUMMARY: This rulemaking proposes to

implement certain provisions in two

different laws which expand the

authority of the United States

Department of Agriculture’s Food and

Consumer Service (FCS) to share

information provided by applicants and

firms participating as authorized retail

food stores or wholesale food concerns

in the Food Stamp Program (FSP) with

other government agencies. The Food

Stamp Act of 1977, as amended, was

amended by section 203 of the Food

Stamp Program Improvements Act of

1994, and the Social Security Act and

the Internal Revenue Code were

amended by section 316 of the Social

Security Independence and Program

Improvements Act of 1994. This

proposed rule also includes one

technical change to correct an error in

regulatory reference that does not

change the substance of the affected

provision.

The proposed rule would implement

the authority for FCS to share such

information, excluding employer

identification numbers (EINs) and

Social Security numbers (SSNs), with

Federal and State law enforcement and

investigative agencies for purposes of

administering and enforcing the Food

Stamp Act of 1977, as amended, or any

other Federal or State law and

regulations issued under this Act or any

other Federal or State law. It also would

provide new criteria to govern the

sharing of such information and

criminal penalties for unauthorized use.

Finally, this rule would implement the

Secretary of Agriculture’s new authority

to share EIN and SSN information of

applicants and firms participating in the

FSP with other Federal agencies.

DATES: Comments on the provisions of

this rule must be received no later than

June 12, 1995, to be assured of

consideration.

ADDRESSES: Comments should be

addressed to Suzanne Fecteau, Food

and Consumer Service, Chief, Coupon

and Retailer Branch, 3101 Park Center

Drive, Alexandria Virginia 22302–1594.

All written comments will be open to

public inspection at the office of the

Food and Consumer Service during

regular business hours (8:30 a.m. to 5

p.m., Monday through Friday) in room

706, 3101 Park Center Drive,

Alexandria, Virginia.

FOR FURTHER INFORMATION CONTACT:

Questions regarding this rulemaking

should be addressed to Suzanne Fecteau

at the above address or by telephone at

(703) 305–2418.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

This 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.

Executive Order 12372

The Food Stamp Program is listed in

the Catalog of Federal Domestic

Assistance under No. 10.551. For the

reasons set forth in the final rule and

related Notice to 7 CFR part 3015

subpart V (48 FR 29115, June 24, 1983),

this Program is excluded from the scope

of the Executive Order 12372 which

requires inter-governmental

consultation with State and local

officials.

Regulatory Flexibility Act

This rule has been reviewed with

regard to the requirements of the

Regulatory Flexibility Act of 1980 (5

U.S.C. 601–612). William E. Ludwig, the

Administrator of the Food and

Consumer Service, has certified that this

proposed rule will not have a significant

economic impact on a substantial

number of small entities. This action

may have a significant effect on a

limited number of small entities found

to be in violation of State or Federal

laws.