Source: https://www.federalregister.gov/documents/2007/05/08/E7-8630/late-payment-and-interest-charges-on-past-due-assessments-under-the-nectarine-and-peach-marketing
Timestamp: 2017-11-22 09:58:42
Document Index: 752070307

Matched Legal Cases: ['§\u2009916', '§\u2009916', '§\u2009916', '§\u2009916', '§\u2009916', '§\u2009917']

A Rule by the Agricultural Marketing Service on 05/08/2007
72 FR 25945
25945-25947 (3 pages)
FV07-916/917-3 FR
E7-8630
https://www.federalregister.gov/d/E7-8630 https://www.federalregister.gov/d/E7-8630
Start Preamble Start Printed Page 25945
This rule revises requirements concerning the collection of assessments owed under the nectarine and peach marketing orders. The marketing orders regulate the handling of nectarines and peaches grown in California and are administered locally by the Nectarine Administrative Committee and the Peach Commodity Committee (committees). This rule implements authorities contained in the marketing orders to allow the committees to apply late payment and interest charges on past due assessments owed the committees by handlers.
This final rule establishes regulations that will allow the committees to apply late payment and interest charges on past due assessments owed the committees by handlers. This rule was unanimously recommended by the committees at meetings on November 30, 2006.
At meetings on November 30, 2006, the committees recommended establishing rules and regulations to implement these authorities regarding late payment and interest charges. Although the majority of handlers remit their assessments in a timely manner, there are some handlers who do not. Implementing late payment and interest charges provides an incentive for handlers to pay assessments in a timely manner and removes any financial advantage for those who do not pay on time.
The committees recommended that interest be applied at the current commercial prime rate charged by the committees' bank plus 2 percent beginning on the day the assessment becomes delinquent. However, USDA determined that a set interest rate of 1.5 percent per month is typical of comparable marketing order programs, and the recommendation was revised. Accordingly, new §§ 916.141 and 917.137 specifying implementation of the 10 percent late charge and 1.5 percent per month interest rate will be added to the rules and regulations of the nectarine and peach orders, respectively.
Pursuant to requirements set forth in the Regulatory Flexibility Act (RFA), the Agricultural Marketing Service (AMS) has considered the economic impact of this action on small entities. Accordingly, AMS has prepared this final regulatory flexibility analysis. Start Printed Page 25946
This rule adds new §§ 916.141 and 917.137 to the orders' rules and regulations, whereby late payment and interest charges on delinquent assessment payments will be implemented under the orders. Specifically, handlers not remitting their assessment payments within 60 days of the invoice date will be subject to a 10 percent late payment penalty and interest charges accruing at a rate of 1.5 percent per month. The late payment and interest charges should serve as an incentive for handlers to remit assessment payments when due to avoid paying an increased amount to the committees. This action is expected to facilitate program operations. Authority for this action is provided in paragraph (b) of §§ 916.41 and 917.37 of the orders.
This action will apply late payment and interest charges to assessments not paid within 60 days of the invoice date. Only handlers who are late in paying their assessments owed the committees will be impacted. For example, a delinquent invoice with late payment and interest charges applied will be calculated in the following manner: If a handler failed to pay an invoice for $5,000 within 60 days of the July 1, 2007, invoice date, a 10 percent late payment charge ($500) would be applied to the unpaid balance. In addition, interest charges at a rate of 1.5 percent per month would be added to the assessments owed and the accrued late payment charge. The 1.5 percent per month rate computes to an annual rate of 18 percent. This must be divided by 365 days to obtain the daily rate. This same July 1, 2007, invoice would be 62 days delinquent as of September 1, 2007, bringing the interest charges to $168.16 ($5,500 × .18 ÷ 365 × 62). Thus, the total assessment due, including late payment and interest charges, would be $5,668.16 as of September 1, 2007.
However, as previously mentioned, USDA has determined that a set interest rate of 1.5 percent per month is typical of comparable marketing order programs, and the recommendation was revised.
Further, the subcommittee and committees' meetings were widely publicized throughout the California nectarine and peach industries and all interested persons were invited to attend the meetings and participate in the committees' deliberations on all issues. Like all committee meetings, the November 30, 2006, meetings were public meetings and all entities of all sizes were invited to express views on this issue.
A proposed rule concerning this action was published in the Federal Register on March 29, 2007 (72 FR 14710). The committees posted the rule on their Web site. In addition, the rule was made available through the Internet by USDA and the Office of the Federal Register. A 15-day comment period ending April 13, 2007, was provided to allow interested persons to respond to the proposal.
One comment was received during the comment period in response to the proposal. The commenter, representing the NAC and PCC, supported implementing authorities to allow the committees to apply late payment and interest charges on past due assessments.
A small business guide on complying with fruit, vegetable, and specialty crop Start Printed Page 25947marketing agreements and orders may be viewed at: http://www.ams.usda.gov/​fv/​moab.html. Any questions about the compliance guide should be sent to Jay Guerber at the previously mentioned address in the FOR FURTHER INFORMATION CONTACT section.
After consideration of all relevant matter presented, including the information and recommendation submitted by the committees and other available information, it is hereby found that this rule, as hereinafter set forth, will tend to effectuate the declared policy of the Act.
It is further found that good cause exists for not postponing the effective date of this rule until 30 days after publication in the Federal Register (5 U.S.C. 553) because the season began on April 1. Further, handlers are aware of this rule, which was recommended at public meetings. Also a 15-day comment period was provided for in the proposed rule.
2. Add § 916.235 to read as follows:
§ 916.235
(b) In addition to that specified in paragraph (a) of this section, the Nectarine Administrative Committee shall impose an interest charge on any assessment payment that has not been received in the committee's office, or legibly postmarked by the U.S. Postal Service, within 60 days of the invoice date. The interest charge shall be 1.5 percent per month and shall be applied to the unpaid balance and late payment charge for the number of days all or any part of the assessment specified in the handler's assessment statement is delinquent beyond the 60 day payment period.
3. Add § 917.259 to read as follows:
(b) In addition to that specified in paragraph (a) of this section, the Peach Commodity Committee shall impose an interest charge on any assessment payment that has not been received in the Peach Commodity Committee's office, or legibly postmarked by the U.S. Postal Service, within 60 days of the invoice date. The interest charge shall be 1.5 percent per month and shall be applied to the unpaid balance and late payment charge for the number of days all or any part of the assessment specified in the handler's assessment statement is delinquent beyond the 60 day payment period.
[FR Doc. E7-8630 Filed 5-7-07; 8:45 am]