[Federal Register Volume 61, Number 7 (Wednesday, January 10, 1996)]
[Proposed Rules]
[Pages 704-705]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-326]



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Proposed Rules
                                                Federal Register
________________________________________________________________________

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.

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Federal Register / Vol. 61, No. 7 / Wednesday, January 10, 1996 / 
Proposed Rules

[[Page 704]]


DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR Part 1485


Agreements for the Development of Foreign Markets for 
Agricultural Commodities

AGENCY: Commodity Credit Corporation (CCC).

ACTION: Proposed rule.

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SUMMARY: The Commodity Credit Corporation (CCC) is proposing to amend 
its regulations implementing the Market Promotion Program (MPP) 
authorized by Section 203 of the Agricultural Trade Act of 1978, 7 
U.S.C. 5623. Specifically, the proposed rule would extend the period of 
time following the expiration of the marketing year during which 
participants may pay for approved market development activities and 
still be entitled to receive reimbursement from CCC. This period would 
be extended from 30 days to 4 months. The proposed rule is part of an 
effort by CCC to increase program flexibility and ease administrative 
requirements on program participants.

DATES: Comments on the proposed rule should be submitted in writing to 
the address below by February 9, 1996 to be assured of consideration.

FOR FURTHER INFORMATION CONTACT:
Sharon L. McClure, Director, Marketing Operations Staff, Foreign 
Agricultural Service, United States Department of Agriculture, 14th and 
Independence Avenue, SW., Washington, DC 20250-1042, (202) 720-5521.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    This proposed rule is issued in conformance with Executive Order 
12866. Based on information compiled by the Department, it has been 
determined that this proposed rule:
    (1) Would have an annual effect on the economy of less than $100 
million;
    (2) Would not adversely affect in a material way the economy, a 
sector of the economy, productivity, competition, jobs, the 
environment, public health or safety, or State, local, or tribal 
governments or communities;
    (3) Would not create a serious inconsistency or otherwise interfere 
with an action taken or planned by another agency;
    (4) Would not alter the budgetary impact of entitlements, grants, 
user fees, or loan programs or rights and obligations of recipients 
thereof; and
    (5) Would not raise novel legal or policy issues arising out of 
legal mandates, the President's priorities, or principles set forth in 
Executive Order 12866.
    The Department of Agriculture is committed to carrying out its 
statutory and regulatory mandates in a manner that best serves the 
public interest. Therefore, where legal discretion permits, the 
Department actively seeks to promulgate regulations that promote 
economic growth, create jobs, are minimally burdensome and are easy for 
the public to understand, use or comply with. In short, the Department 
is committed to issuing regulations that maximize net benefits to 
society and minimize costs imposed by those regulations.

Regulatory Flexibility Act

    It has been determined that the Regulatory Flexibility Act is not 
applicable to this proposed rule since CCC is not required by 5 U.S.C. 
553 or any other provision of law to publish a notice of rulemaking 
with respect to the subject matter of this rule.

Paperwork Reduction Act

    The proposed rule does not impose any new reporting or 
recordkeeping requirements. The information collection requirements of 
participating in the MPP were approved for use by the Office of 
Management and Budget under OMB control number 0551-0027.

Executive Order 12372

    This proposed rule 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 46 FR 29115 (June 24, 1983).

Executive Order 12778

    This proposed rule has been reviewed under the Executive Order 
12778, Civil Justice Reform. The proposed rule would have pre-emptive 
effect with respect to any state or local laws, regulations, or 
policies which conflict with such provisions or which otherwise impede 
their full implementation. The proposed rule would not have retroactive 
effect. Administrative proceedings are not required before parties may 
seek judicial review.

Background

    On February 1, 1995, the CCC published final rules at 60 FR 6352 
governing the MPP. These new rules were applicable beginning with a 
participant's 1995 marketing year. Following publication, CCC 
participated with interested parties in five information sessions 
designed to familiarize participants with the new regulations and offer 
participants an additional opportunity to identify any problem areas. 
At these sessions, there was considerable discussion concerning the 
requirement that participants must have completely paid for approved 
activities not later that 30 days following the end of a participant's 
activity plan in order to receive reimbursement, 7 CFR 1485.16(h)(3). 
As a result of these discussions, CCC recognized that this requirement 
is too restrictive and does not allow sufficient time for a participant 
to receive and pay an invoice submitted by a third party, particularly 
for those activities that are conducted near the end of an activity 
plan year. In addition, the current requirement may, inadvertently, 
impose a requirement on participants to prepay invoices. This is not a 
practice CCC wishes to endorse since it is not a common business 
practice and may also jeopardize the financial integrity of the 
program. This proposed rule would amend the current requirement in 7 
CFR 1485.16(h) by allowing participants to transfer funds to pay for 
activities not later than 4 months following the end of the activity 
plan year and still be entitled to receive reimbursement from CCC.

List of Subjects in 7 CFR Part 1485

    Agricultural commodities, Exports.


[[Page 705]]

    For the reasons set forth in the preamble, CCC proposes to amend 7 
CFR part 1485 as follows:

PART 1485--AGREEMENTS FOR THE DEVELOPMENT OF FOREIGN MARKETS FOR 
AGRICULTURAL COMMODITIES

    1. The authority citation for Part 1485 continues to read as 
follows:

    Authority: 7 U.S.C. 5623, 5662-5664 and sec. 1302, Pub. L. 103-
66, 107 Stat. 330.

Subpart B--Market Promotion Program

    2. In Sec. 1485.16, paragraph (h) is revised to read as follows:


Sec. 1485.16  Reimbursement rules.

 * * * * *
    (h) CCC will reimburse for expenditures made after the conclusion 
of participant's activity plan year provided:
    (1) The activity was approved prior to the end of the activity plan 
year;
    (2) The activity was completed within 30 calendar days following 
the end of the activity plan year; and
    (3) all funds transferred to pay for the activity within 4 months 
following the end of the activity plan year.

    Signed at Washington, D.C. on December 19, 1995.
Timothy J. Galvin,
Acting Administrator, Foreign Agricultural Service and Vice President, 
Commodity Credit Corporation.
[FR Doc. 95-326 Filed 1-9-95; 8:45 am]
BILLING CODE 3410-05-M