[Federal Register Volume 60, Number 227 (Monday, November 27, 1995)]
[Proposed Rules]
[Pages 58253-58255]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-28770]
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DEPARTMENT OF AGRICULTURE
7 CFR Part 1208
[FV-95-702PR]
Fresh Cut Flowers and Fresh Cut Greens Promotion and Information
Order--Postponement of Payment of Assessments
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
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SUMMARY: This proposed rule specifies general rules and regulations to
be established under the Fresh Cut Flowers and Fresh Cut Greens
Promotion and Information Order (Order). The Order is authorized under
the Fresh Cut Flowers and Fresh Cut Greens Promotion and Information
Act of 1993. This rule would implement a provision of the Order
concerning the postponement of the payment of assessments. This action
would create a form and establish procedures for qualified handlers to
request the postponement of the payment of up to six months of
assessments to the National PromoFlor Council. In addition, in
accordance with the Paperwork Reduction Act of 1995, this proposed rule
specifies the public reporting burden for the collection of information
for requesting a postponement of payment of assessments.
DATES: Comments must be received by January 26, 1996.
ADDRESSES: Interested persons are invited to submit written comments
concerning the proposed rule to: Research and Promotion Branch, Fruit
and Vegetable Division, Agricultural Marketing Service (AMS), USDA,
P.O. Box 96456, Room 2535-S, Washington, DC 20090-6456. Three copies of
all written material should be submitted, and they will be made
available for public inspection at the Research and Promotion Branch
during regular business hours. All comments should reference the docket
number and the date and page number of this issue of the Federal
Register. Also send comments regarding the accuracy of the burden
estimate, ways to minimize the burden, including through the use of
automated collection techniques or other forms of information
technology, or any other aspect of this collection of information, to
the above address.
FOR FURTHER INFORMATION CONTACT: Sonia N. Jimenez, Research and
Promotion Branch, Fruit and Vegetable Division, AMS, USDA, PO Box
96456, Room 2535-S, Washington, DC 20090-6456, telephone (202) 720-
9916.
SUPPLEMENTARY INFORMATION: This proposed rule is issued under the Fresh
Cut Flowers and Fresh Cut Greens Promotion and Information Act of 1993
(Pub. L. 103-190), (7 U.S.C. 6801 et seq.) hereinafter referred to as
the Act.
This proposed rule has been issued in conformance with Executive
Order 12866.
This rule has been reviewed under Executive Order 12778, Civil
Justice Reform. It is not intended to have retroactive effect. This
rule would not preempt any State or local laws, regulations, or
policies, unless they present an irreconcilable conflict with this
rule.
The Act provides that administrative proceedings must be exhausted
before parties may file suit in court. Under section 8 of the Act, a
person subject to the order may file a petition with the Secretary
stating that the order or any provision of the order, or any obligation
imposed in connection with the order, is not in accordance with law and
requesting a modification of the order or an exemption from the order.
The petitioner is afforded the opportunity for a hearing on the
petition. After such hearing, the Secretary will make a ruling on the
petition. The Act provides that the district courts of the United
States in any district in which a person who is a petitioner resides or
carries on business are vested with jurisdiction to review the
Secretary's ruling on the petition, if a complaint for that purpose is
filed within 20 days after the date of the entry of the ruling.
Regulatory Flexibility Act
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA), the Administrator of AMS has considered the economic impact
of this proposed action on small entities.
The purpose of the RFA is to fit regulatory actions to the scale of
business subject to such actions in order that small businesses will
not be unduly or disproportionately burdened.
Only those wholesale handlers, retail distribution centers,
producers, and importers who have annual sales of $750,000 or more of
cut flowers and greens and who sell those products to exempt handlers,
retailers, or consumers are considered qualified handlers and assessed
under the Order. There are approximately 900 wholesaler handlers, 150
importers, and 200 domestic producers who are qualified handlers.
The majority of these qualified handlers would be classified as
small businesses. Small agricultural service firms have been defined by
the Small Business Administration (13 CFR 121.601) as those having
annual receipts of less than $5 million. Statistics reported by the
National Agricultural Statistics Service show that 1994 sales at
wholesale of domestic cut flowers and greens total approximately $559.6
million while the value of imports during 1994 was approximately $382
million. The leading States in the United States producing cut flowers
and greens, by wholesale value, are California, which produces
approximately 59 percent of the domestic crop, followed by Florida,
Colorado, and Hawaii. Major countries exporting cut flowers and greens
into the United States, by value, are Columbia, which accounts for
approximately 60 percent, followed by The Netherlands, Mexico, and
Costa Rica.
The Administrator of the AMS has determined that this rule would
not have a significant economic impact on a substantial number of small
entities.
Paperwork Reduction Act
While this proposed rule would impose certain recordkeeping
requirements on qualified handlers that request a postponement of the
payment of assessments, most of the information required under the
proposed rule could be compiled from records currently maintained.
Thus, any added burden resulting from increased recordkeeping would not
be significant when compared to the benefits that should accrue to such
businesses.
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
Chapter 35), a form to request the postponement of the payment,
``Application for Postponement of Payment of PromoFlor Assessment'',
has been submitted to OMB for approval.
Estimate of Burden: Public reporting burden for this collection of
information is estimated to average .25 hours per response for each
qualified handler requesting a postponement of payment of assessment.
[[Page 58254]]
Respondents: Qualified handlers as defined in the Act.
Estimated Number of Respondents: 5.
Estimated Number of Responses per Respondent: 1.
Estimated Total Annual Burden on Respondents: 1.25 hours.
Copies of this information collection can be obtained from Sonia N.
Jimenez at (202) 720-9916 or at the address listed above.
Background
The Act authorizes the Secretary of Agriculture (Secretary) to
establish a national cut flowers and greens promotion and consumer
information program. The program is funded by an assessment of \1/2\
percent of gross sales of cut flowers and greens which is levied on
qualified handlers.
This proposed rule would provide rules and regulations needed to
implement provisions of the Order. Section 1208.55 of the Order
provides for postponement of collections (7 CFR 108.55; 59 FR 67139).
That section provides that the Council may grant a postponement of the
payment of an assessment for any qualified handler that establishes
that it is financially unable to make the payment.
Section 1208.100 of this rule would provide that the definitions
for this subpart are the same as those prescribed in Secs. 1208.1
through 1208.24 of the Order.
Section 1208.150 would provide for the postponement of the payment
of assessments under certain circumstances. The Order provides for the
postponement of the payment of assessments by a qualified handler if
the payment of such assessment is determined to be a financial burden
for the handler. Section 1208.55 of the Order states that ``The Council
may grant a postponement of an assessment under this subpart for any
qualified handler that establishes that it is financially unable to
make the payment * * * '' In addition, the Order establishes that the
Council shall develop forms and procedures for a qualified handler to
request and for the Council to grant the postponement of the payment of
assessments.
The Council met on September 11, 1995, and determined that, in
order for a request for the postponement of assessments to be granted,
the requester should comply with the following: (1) Submit a written
opinion from a Certified Public Accountant stating that the handler
making the request is insolvent or will be unable to continue to
operate if the handler is required to pay the assessment when due and
(2) submit copies of the last three years' federal tax returns. These
two requirements are needed to verify that the qualified handler is
financially unable to make the payment of the assessments due and that
the postponement of payment, if granted, complies with the requirements
set forth in the Order. In addition, the requester should submit to the
Council a form ``Application for Postponement of Payment of PromoFlor
Assessments.'' This collection of information would be authorized under
OMB number 0581-0093 and would have an expiration date of January 31,
1997.
The period for which the postponement of the payment of the
assessments is requested may not exceed six (6) months. Within that
period of six (6) months, the qualified handler would be exempt from
paying assessments beginning with the month for which the request for
postponement is filed with the Council and for no more than six (6)
months. The handler must provide a reason for the request as well as
detailed information concerning the handler's name, address, telephone
and fax numbers, the month(s) for which the request is made, the
percent of the outstanding debt to be paid by month after the
postponement of payment is granted, and the starting date for the
payment. Furthermore, an authorized individual must sign and return the
form to the Council's office.
Any late payment would make the agreement null and all assessments
due would need to be paid in their entirety at that time. In addition,
the Council agrees to forgo any late fee charges and interest for the
duration of the agreement.
The request must be made no later than 30 days after the
assessments were due. In addition, after the postponement period has
concluded, the requester must pay the percentage of the outstanding
debt agreed to be paid by month and the assessments due for the current
month. Assessments due after the postponement of payment is completed
would not be postponed unless an extension of time for payment is
granted. If an extension of time is requested, new documentation must
be provided for the Council to determine whether to grant the extension
of time for the postponement of the payment of assessments. The same
procedures used for the initial request must be used to grant an
extension.
A 60-day comment period is provided to allow interested persons to
respond to this proposal. All written comments timely received will be
considered before a final determination is made on this matter. All
responses regarding the information collection will be summarized and
included in the request for OMB approval.
List of Subjects in 7 CFR Part 1208
Administrative practice and procedure, Advertising, Consumer
information, Marketing agreements--Cut flowers, Cut greens, Promotion,
Reporting and recordkeeping requirements.
For the reasons set forth in the preamble, 7 CFR part 1208 is
proposed to be amended as follows:
PART 1208--FRESH CUT FLOWERS AND FRESH CUT GREENS PROMOTION AND
INFORMATION ORDER
1. The authority citation for 7 CFR Part 1208 continues to read as
follows:
Authority: 7 U.S.C. 6801 et seq.
2. In Part 1208 a new subpart B is added to read as follows:
Subpart B--Rules and Regulations
Definitions
Sec.
1208.100 Terms defined.
Assessments
1208.150 Procedures for postponement of assessments.
Subpart B--Rules and Regulations
Definitions
Sec. 1208.100 Terms defined.
Unless otherwise defined in this subpart, definitions or terms used
in this subpart shall have the same meaning as the definitions of such
terms which appear in Subpart A--Fresh Cut Flowers and Fresh Cut Greens
Promotion and Information Order.
Assessments
Sec. 1208.150 Procedures for postponement of collections.
(a) For a request for postponement of the payment of assessments to
be granted the qualified handler must comply with the following: Submit
a written opinion from a Certified Public Accountant stating that the
handler making the request is insolvent or will be unable to continue
to operate if the handler is required to pay the assessments when due
and submit copies of the last three years' federal tax returns. The
request must be in writing no later than 30 days after the assessments
for which the postponed payment is requested are due. The period for
which the postponement of the payment of assessments is requested may
not exceed six (6) months. The written request must specify:
(1) A reason for the request;
[[Page 58255]]
(2) Detailed information concerning the qualified handler's name,
address, and telephone and fax numbers;
(3) The month(s) for which the request is made;
(4) Total assessments due;
(5) The percent of the outstanding debt to be paid each month after
the postponement of payment is granted; and
(6) The starting date for the payment of assessments due.
(b) At the end of the postponement period, the qualified handler
must pay the percentage of assessments due specified per month and the
current month assessment due. If an extension of time is requested, new
documentation must be provided for the Council to determine whether to
grant the extension. The same procedures used for the initial request
will be used to grant any extension.
Dated: November 20, 1995.
Robert C. Kenny,
Director, Fruit and Vegetable Division.
[FR Doc. 95-28770 Filed 11-24-95; 8:45 am]
BILLING CODE 3410-02-P
