Milk in the Northeast and Other Marketing Areas; Supplemental Notice of Hearing on Proposed Amendments to Tentative Marketing Agreements and Orders, 7753-7755 [07-746]
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7753
Proposed Rules
Federal Register
Vol. 72, No. 33
Tuesday, February 20, 2007
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.
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Parts 1000, 1001, 1005, 1006,
1007, 1030, 1032, 1033, 1124, 1126, and
1131
[Docket No. AO–14–A77, et al.; DA–07–02]
Milk in the Northeast and Other
Marketing Areas; Supplemental Notice
of Hearing on Proposed Amendments
to Tentative Marketing Agreements
and Orders
Agricultural Marketing Service,
USDA.
ACTION: Proposed rule; Supplemental
notice of public hearing on proposed
rulemaking.
erjones on PRODPC74 with PROPOSALS
AGENCY:
SUMMARY: This document contains an
additional proposal to be considered at
a previously scheduled hearing to
consider proposals that would amend
the Class III and Class IV product price
formulas applicable to all Federal milk
marketing orders.
DATES: The hearing will convene at 9
a.m., Monday, February 26, 2007.
ADDRESSES: The hearing will be held at
the Holiday Inn Select—Strongsville,
15471 Royalton Road, Strongsville, Ohio
44136, phone (440) 238–8800.
FOR FURTHER INFORMATION CONTACT: Jack
Rower, Marketing Specialist, Order
Formulation and Enforcement, USDA/
AMS/Dairy Programs, Stop 0231–Room
2971, 1400 Independence Avenue, SW.,
Washington, DC 20250–0231, (202) 720–
2357, e-mail address:
jack.rower@usda.gov.
Persons requiring a sign language
interpreter or other special
accommodations should contact Paul
Huber, Assistant Market Administrator,
at (330) 225–4758; e-mail:
phuber@fmmaclev.com before the
hearing begins.
SUPPLEMENTARY INFORMATION: This
additional proposal, which supplements
a proposal published on February 7,
2007 (72 FR 6179), seeks to establish
cost-of-production surcharges that
VerDate Aug<31>2005
13:51 Feb 16, 2007
Jkt 211001
manufacturers could include in the
selling price of their products but would
not be included in the determination of
National Agricultural Statistics Service
(NASS) survey prices for cheese, butter,
nonfat dry milk and dry whey.
This administrative action is governed
by the provisions of Sections 556 and
557 of Title 5 of the United States Code
and, therefore, is excluded from the
requirements of Executive Order 12866.
Notice is hereby given of a public
hearing to be held at the Holiday Inn
Select, Strongsville, Ohio, beginning at
9 a.m. on Monday, February 26, 2007,
with respect to proposed amendments
to the tentative marketing agreements
and to the orders regulating the
handling of milk in the Northeast and
other marketing areas.
The hearing is called pursuant to the
provisions of the Agricultural Marketing
Agreement Act of 1937, as amended (7
U.S.C. 601–674), and the applicable
rules of practice and procedure
governing the formulation of marketing
agreements and marketing orders (7 CFR
Part 900).
The purpose of the hearing is to
receive evidence with respect to the
economic and marketing conditions
which relate to the proposed
amendments, hereinafter set forth, and
any appropriate modifications thereof,
to the tentative marketing agreements
and to the orders.
Initial Regulatory Flexibility Analysis
Actions under the Federal milk order
program are subject to the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.).
This Act seeks to ensure that, within the
statutory authority of a program, the
regulatory and information collection
requirements are tailored to the size and
nature of small businesses. For the
purpose of the Act, a dairy farm is a
‘‘small business’’ if it has an annual
gross revenue of less than $750,000, and
a dairy products manufacturer is a
‘‘small business’’ if it has fewer than 500
employees (13 CFR 121.201). Most
parties subject to a milk order are
considered as a small business.
For the purposes of determining
which dairy farms are ‘‘small
businesses,’’ the $750,000 per year
criterion was used to establish a
production guideline of 500,000 pounds
per month. Although this guideline does
not factor in additional monies that may
be received by dairy producers, it
should be an inclusive standard for
PO 00000
Frm 00001
Fmt 4702
Sfmt 4702
most ‘‘small’’ dairy farmers. For
purposes of determining a handler’s
size, if the plant is part of a larger
company operating multiple plants that
collectively exceed the 500-employee
limit, the plant will be considered a
large business even if the local plant has
fewer than 500 employees.
USDA has identified that during 2005
approximately 51,060 of the 54,652
dairy producers whose milk is pooled
on Federal orders are small businesses.
Small businesses represent about 93
percent of the dairy farmers who
participate in the Federal milk order
program.
On the processing side, during June
2005 there were approximately 350 fully
regulated plants (of which 149 or 43
percent were small businesses) and 110
partially regulated plants (of which 50
or 45 percent were small businesses.) In
addition, there were 48 producerhandlers, of which 29 were considered
small businesses for the purposes of this
initial regulatory flexibility analysis,
who submitted reports under the
Federal milk order program during this
period.
The fluid use of milk represented
about 37.6 percent of total Federal milk
marketing order producer deliveries
during calendar year 2006. Almost 237
million Americans, approximately 80
percent of the total U.S. population
reside within the geographical
boundaries of the 10 Federal milk
marketing areas.
In order to accomplish the goal of
imposing no additional regulatory
burdens on the industry, a review of the
current reporting requirements was
completed pursuant to the Paperwork
Reduction Act of 1995 (44 U.S.C. 3501
et seq.) In light of that review, it was
determined that these proposed
amendments would have little or no
impact on reporting, record keeping, or
other compliance requirements because
these requirements would remain
identical to those currently in effect
under the Federal order program. No
new or additional reporting would be
necessary.
This notice does not require
additional information collection that
requires clearance by the OMB beyond
the currently approved information
collection. Information currently
collected through the use of OMBapproved forms and the primary sources
of data used to complete the forms are
E:\FR\FM\20FEP1.SGM
20FEP1
7754
Federal Register / Vol. 72, No. 33 / Tuesday, February 20, 2007 / Proposed Rules
erjones on PRODPC74 with PROPOSALS
routinely used in business transactions.
The forms require only a minimal
amount of information that can be
provided without data processing
equipment or trained statistical staff.
Thus, the information collection burden
is relatively small. Requiring the same
reports from all handlers does not
disadvantage any handler that is smaller
than the industry average.
No other burdens are expected to fall
upon the dairy industry as a result of
overlapping Federal rules. This
proposed rulemaking does not
duplicate, overlap, or conflict with any
existing Federal rules.
To ensure that small businesses are
not unduly or disproportionately
burdened based on these proposed
amendments consideration was given to
mitigating any negative impacts. It is
expected that small producers would
not experience any particular
disadvantage compared to larger
producers as a result of the proposed
amendments. Similarly, it is expected
that small handlers would not
experience any particular disadvantage
compared to larger handlers as a result
of the proposed amendments. Possible
changes to the Class III and Class IV
price formulas should not have any
special impacts on small handler
entities. All handlers manufacturing
dairy products from milk classified as
Class III or Class IV would remain
subject to the same minimum prices
regardless of the size of their operations.
Minimum prices should not raise
barriers regarding the ability of small
handlers to compete in the marketplace.
Interested parties are invited to
present evidence on the probable
regulatory and information collection
impact of the hearing proposals on
small businesses. Also, such parties may
suggest modifications of the proposal for
tailoring its applicability to small
businesses.
Executive Order 12988, Civil Justice
Reform
The amendments to the rules
proposed herein have been reviewed
under Executive Order 12988, Civil
Justice Reform. They are not intended to
have a retroactive effect. If adopted, the
proposed amendments would not
preempt any state or local laws,
regulations, or policies, unless they
present an irreconcilable conflict with
this rule.
The Agricultural Marketing
Agreement Act provides that
administrative proceedings must be
exhausted before parties may file suit in
court. Under Section 8c(15)(A) of the
Act (7 U.S.C. 608c(15)(A)), any handler
subject to an order may request
VerDate Aug<31>2005
13:51 Feb 16, 2007
Jkt 211001
modification or exemption from such
order by filing with the Department of
Agriculture (Department) a petition
stating that the order, any provision of
the order, or any obligation imposed in
connection with the order is not in
accordance with the law. A handler is
afforded the opportunity for a hearing
on the petition. After a hearing, the
Department would rule on the petition.
The Act provides that the district court
of the United States in any district in
which the handler is an inhabitant, or
has its principal place of business, has
jurisdiction in equity to review the
Department’s ruling on the petition,
provided a bill in equity is filed not
later than 20 days after the date of the
entry of the ruling.
Interested parties who wish to
introduce exhibits should provide the
Presiding Officer at the hearing with (6)
copies of such exhibits for the Official
Record. Also, it would be helpful if
additional copies are available for the
use of other participants at the hearing.
List of Subjects in 7 CFR Parts 1000,
1001, 1005, 1006, 1007, 1030, 1032,
1033, 1124, 1126, and 1131.
Milk marketing orders.
The authority citation for 7 CFR parts
1000, 1001, 1005, 1006, 1007, 1030,
1032, 1033, 1124, 1126, and 1131 read
as follows:
Authority: 7 U.S.C. 601–674, and 7253.
The proposed amendment, as set forth
below, has not received the approval of
the Department.
Proposed by Dairylea Cooperative, Inc.
Proposal No. 20
The additional proposal seeks to
establish cost-of-production surcharges
that manufacturers could include in the
selling price of their products but would
not be included in the determination of
the NASS survey prices for cheese,
butter, nonfat dry milk and dry whey.
1. Amend § 1000.50 by:
(a) Adding new paragraph (r);
(b) Adding new paragraph (r)(1); and
(c) Adding new paragraph (r)(2).
The additions read as follows:
§ 1000.50 Class prices, component prices,
and advanced pricing factors.
*
*
*
*
*
(r) Manufacturing surcharges. For the
purposes of determining the NASS
survey prices for this section, as
reported by the Department, cost of
production add-on surcharges, up to a
maximum value as contained in part (1)
of this section, shall not be included in
the NASS survey prices.
(1) The maximum cost of production
add-on surcharges shall be as follows:
PO 00000
Frm 00002
Fmt 4702
Sfmt 4702
(i) Cheese: $0.0xxx per pound;
(ii) Butter: $0.0xxx per pound;
(iii) Whey powder: $0.0xxx per
pound; and
(iv) Nonfat dry milk: $0.0xxx per
pound.
(2) To be excluded from the NASS
survey price, cost of production factors
must be shown on the appropriate
invoice as a separately negotiated
surcharge to the normal price charged
on the invoice, up to the maximum
amount shown for such product
pursuant to part (1), above. Failure to
show the add-on as such will result in
any such values being included in the
NASS survey price.
2. Amend § 1000.53 by adding new
paragraph (a)(12), to read as follows:
§ 1000.53 Announcement of class prices,
component prices, and advanced pricing
factors.
(a) * * *
(12) The rates as determined in
1000.50(r)(1).
*
*
*
*
*
Copies of this supplemental notice of
hearing and the orders may be procured
from the Market Administrator of each
of the aforesaid marketing areas, or from
the Hearing Clerk, United States
Department of Agriculture, STOP
9200—Room 1031, 1400 Independence
Avenue, SW., Washington, DC 20250–
9200, or may be inspected there.
Copies of the transcript of testimony
taken at the hearing will not be available
for distribution through the Hearing
Clerk’s Office. If you wish to purchase
a copy, arrangements may be made with
the reporter at the hearing.
From the time that a hearing notice is
issued and until the issuance of a final
decision in a proceeding, Department
employees involved in the decisionmaking process are prohibited from
discussing the merits of the hearing
issues on an ex parte basis with any
person having an interest in the
proceeding. For this particular
proceeding, the prohibition applies to
employees in the following
organizational units:
Office of the Secretary of Agriculture.
Office of the Administrator,
Agricultural Marketing Service.
Office of the General Counsel.
Dairy Programs, Agricultural
Marketing Service (Washington office)
and the Offices of all Market
Administrators.
Procedural matters are not subject to
the above prohibition and may be
discussed at any time.
E:\FR\FM\20FEP1.SGM
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Federal Register / Vol. 72, No. 33 / Tuesday, February 20, 2007 / Proposed Rules
Dated: February 14, 2007.
Kenneth C. Clayton,
Acting Administrator.
[FR Doc. 07–746 Filed 2–14–07; 4:01 pm]
Guaranty Corporation, 1200 K Street,
NW., Washington DC 20005–4026, or
calling 202–326–4040 during normal
business hours. (TTY and TDD users
may call the Federal relay service tollfree at 1–800–877–8339 and ask to be
connected to 202–326–4040.)
FOR FURTHER INFORMATION CONTACT: John
H. Hanley, Director, Legislative and
Regulatory Department; or Catherine B.
Klion, Manager, or Deborah C. Murphy,
Attorney, Regulatory and Policy
Division, Legislative and Regulatory
Department, Pension Benefit Guaranty
Corporation, 1200 K Street, NW.,
Washington DC 20005–4026; 202–326–
4024. (TTY/TDD users may call the
Federal relay service toll-free at 1–800–
877–8339 and ask to be connected to
202–326–4024.)
SUPPLEMENTARY INFORMATION:
BILLING CODE 3410–02–P
PENSION BENEFIT GUARANTY
CORPORATION
29 CFR Parts 4006 and 4007
RIN 1212–AB10
Premium Rates; Payment of
Premiums; Flat Premium Rates,
Variable-Rate Premium Cap, and
Termination Premium; Deficit
Reduction Act of 2005; Pension
Protection Act of 2006
Pension Benefit Guaranty
Corporation.
ACTION: Proposed rule.
erjones on PRODPC74 with PROPOSALS
AGENCY:
Background
SUMMARY: This is a proposed rule to
amend PBGC’s regulations on Premium
Rates and Payment of Premiums to
implement certain provisions of the
Deficit Reduction Act of 2005 (Pub. L.
109–171) and the Pension Protection
Act of 2006 (Pub. L. 109–280) that are
effective beginning in 2006 or 2007. The
provisions that would be implemented
by this rule change the flat premium
rate, cap the variable-rate premium in
some cases, and create a new
‘‘termination premium’’ that is payable
in connection with certain distress and
involuntary plan terminations. This rule
does not address other provisions of the
Pension Protection Act of 2006 that deal
with PBGC premiums.
DATES: Comments must be submitted on
or before April 23, 2007.
ADDRESSES: Comments, identified by
RIN number 1212–AB10, may be
submitted by any of the following
methods:
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the Web
site instructions for submitting
comments.
• E-mail: reg.comments@pbgc.gov.
• Fax: 202–326–4224.
• Mail or Hand Delivery: Legislative
and Regulatory Department, Pension
Benefit Guaranty Corporation, 1200 K
Street, NW., Washington, DC 20005–
4026.
All submissions must include the
Regulatory Information Number for this
rulemaking (RIN 1212-AB10).
Comments received, including personal
information provided, will be posted to
www.pbgc.gov. Copies of comments may
also be obtained by writing to
Disclosure Division, Office of the
General Counsel, Pension Benefit
VerDate Aug<31>2005
13:51 Feb 16, 2007
Jkt 211001
Pension Benefit Guaranty Corporation
(PBGC) administers the pension plan
termination insurance program under
Title IV of the Employee Retirement
Income Security Act of 1974 (ERISA).
Pension plans covered by Title IV must
pay premiums to PBGC. Section 4006 of
ERISA deals with premium rates, and
section 4007 of ERISA deals with the
payment of premiums, including
premium due dates, interest and
penalties on premiums not timely paid,
and persons liable for premiums.
On February 8, 2006, the President
signed into law the Deficit Reduction
Act of 2005, Pub. L. 109–171 (DRA
2005). Section 8101 of DRA 2005
amends section 4006 of ERISA. Section
8101(a) changes the per-participant flat
premium rate for plan years beginning
in 2006 from $19 to $30 for singleemployer plans and from $2.60 to $8 for
multiemployer plans and provides for
inflation adjustments to the flat rates for
future years. Section 8101(b) creates a
new ‘‘termination premium’’ (in
addition to the flat-rate and variable-rate
premiums under section 4006(a)(3)(A)
and (E) of ERISA) that is payable for
three years following certain distress
and involuntary plan terminations that
occur after 2005.
On August 17, 2006, the President
signed into law the Pension Protection
Act of 2006, Pub. L. 109–280 (PPA
2006). Sections 401(b) and 402(g)(2)(B)
of PPA 2006 make changes to the
termination premium rules of DRA
2005. Section 405 of PPA 2006 amends
section 4006 of ERISA to cap the
variable-rate premium for plans of
certain small employers beginning in
2007. (PPA 2006 also makes other
changes affecting PBGC premiums that
are not addressed in this rule.)
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Fmt 4702
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7755
This rule would amend PBGC’s
regulations on Premium Rates (29 CFR
Part 4006) and Payment of Premiums
(29 CFR Part 4007) to conform to these
requirements of DRA 2005 and PPA
2006 and to clarify how the
requirements apply.
Flat-Rate Premium
Until the enactment of DRA 2005, the
flat-rate premium had remained
unchanged for single-employer plans
since 1991 and for multiemployer plans
since 1989. Section 8101(a) of DRA 2005
amends section 4006(a)(3)(A) of ERISA
and adds new subparagraphs (F) and (G)
to the end of section 4006(a)(3) of ERISA
to raise the flat premium rates for 2006
for both single- and multiemployer
plans and to provide for inflation
indexing for future years.
Applicability
Before amendment by DRA 2005,
section 4006(a)(3)(A) of ERISA provided
(in part) that ‘‘* * * the annual
premium rate * * * is * * * in the case
of a single-employer plan, for plan years
beginning after December 31, 1990, an
amount equal to the sum of $19 plus the
[per-participant variable-rate premium]
under subparagraph (E) for each * * *
participant * * *’’ Section
8101(a)(1)(A) of DRA 2005 changes
‘‘$19’’ to read ‘‘$30.’’ Thus, the amended
text of ERISA, read literally, makes it
appear that the $30 single-employer flatrate premium applies to plan years
beginning after 1990. However, section
8101(d)(1) of DRA 2005 (which does not
amend ERISA) says that this change
applies to plan years beginning after
December 31, 2005. Accordingly, PBGC
considers single-employer flat premium
rates for plan years beginning before
2006 to be unaffected by DRA 2005.
Participant Count
Section 8101(a)(2)(A)(ii) of DRA 2005
adds a new clause (iv) to section
4006(a)(3)(A) of ERISA providing that
the flat premium rate for a
multiemployer plan for a post-2005 plan
year is ‘‘$8.00 for each individual who
is a participant in such plan during the
applicable plan year.’’ PBGC interprets
this to mean that the participant count
is to be taken as of the premium
snapshot date described in the premium
rates regulation and PBGC’s premium
instructions (generally the last day of
the plan year preceding the premium
payment year). This is consistent with
PBGC’s interpretation of the nearly
identical language in existing section
4006(a)(3)(A)(i) of ERISA.
E:\FR\FM\20FEP1.SGM
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]]>Agencies
[Federal Register Volume 72, Number 33 (Tuesday, February 20, 2007)]
[Proposed Rules]
[Pages 7753-7755]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 07-746]
========================================================================
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.
========================================================================
Federal Register / Vol. 72, No. 33 / Tuesday, February 20, 2007 /
Proposed Rules
[[Page 7753]]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Parts 1000, 1001, 1005, 1006, 1007, 1030, 1032, 1033, 1124,
1126, and 1131
[Docket No. AO-14-A77, et al.; DA-07-02]
Milk in the Northeast and Other Marketing Areas; Supplemental
Notice of Hearing on Proposed Amendments to Tentative Marketing
Agreements and Orders
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule; Supplemental notice of public hearing on
proposed rulemaking.
-----------------------------------------------------------------------
SUMMARY: This document contains an additional proposal to be considered
at a previously scheduled hearing to consider proposals that would
amend the Class III and Class IV product price formulas applicable to
all Federal milk marketing orders.
DATES: The hearing will convene at 9 a.m., Monday, February 26, 2007.
ADDRESSES: The hearing will be held at the Holiday Inn Select--
Strongsville, 15471 Royalton Road, Strongsville, Ohio 44136, phone
(440) 238-8800.
FOR FURTHER INFORMATION CONTACT: Jack Rower, Marketing Specialist,
Order Formulation and Enforcement, USDA/AMS/Dairy Programs, Stop 0231-
Room 2971, 1400 Independence Avenue, SW., Washington, DC 20250-0231,
(202) 720-2357, e-mail address: jack.rower@usda.gov.
Persons requiring a sign language interpreter or other special
accommodations should contact Paul Huber, Assistant Market
Administrator, at (330) 225-4758; e-mail: phuber@fmmaclev.com before
the hearing begins.
SUPPLEMENTARY INFORMATION: This additional proposal, which supplements
a proposal published on February 7, 2007 (72 FR 6179), seeks to
establish cost-of-production surcharges that manufacturers could
include in the selling price of their products but would not be
included in the determination of National Agricultural Statistics
Service (NASS) survey prices for cheese, butter, nonfat dry milk and
dry whey.
This administrative action is governed by the provisions of
Sections 556 and 557 of Title 5 of the United States Code and,
therefore, is excluded from the requirements of Executive Order 12866.
Notice is hereby given of a public hearing to be held at the
Holiday Inn Select, Strongsville, Ohio, beginning at 9 a.m. on Monday,
February 26, 2007, with respect to proposed amendments to the tentative
marketing agreements and to the orders regulating the handling of milk
in the Northeast and other marketing areas.
The hearing is called pursuant to the provisions of the
Agricultural Marketing Agreement Act of 1937, as amended (7 U.S.C. 601-
674), and the applicable rules of practice and procedure governing the
formulation of marketing agreements and marketing orders (7 CFR Part
900).
The purpose of the hearing is to receive evidence with respect to
the economic and marketing conditions which relate to the proposed
amendments, hereinafter set forth, and any appropriate modifications
thereof, to the tentative marketing agreements and to the orders.
Initial Regulatory Flexibility Analysis
Actions under the Federal milk order program are subject to the
Regulatory Flexibility Act (5 U.S.C. 601 et seq.). This Act seeks to
ensure that, within the statutory authority of a program, the
regulatory and information collection requirements are tailored to the
size and nature of small businesses. For the purpose of the Act, a
dairy farm is a ``small business'' if it has an annual gross revenue of
less than $750,000, and a dairy products manufacturer is a ``small
business'' if it has fewer than 500 employees (13 CFR 121.201). Most
parties subject to a milk order are considered as a small business.
For the purposes of determining which dairy farms are ``small
businesses,'' the $750,000 per year criterion was used to establish a
production guideline of 500,000 pounds per month. Although this
guideline does not factor in additional monies that may be received by
dairy producers, it should be an inclusive standard for most ``small''
dairy farmers. For purposes of determining a handler's size, if the
plant is part of a larger company operating multiple plants that
collectively exceed the 500-employee limit, the plant will be
considered a large business even if the local plant has fewer than 500
employees.
USDA has identified that during 2005 approximately 51,060 of the
54,652 dairy producers whose milk is pooled on Federal orders are small
businesses. Small businesses represent about 93 percent of the dairy
farmers who participate in the Federal milk order program.
On the processing side, during June 2005 there were approximately
350 fully regulated plants (of which 149 or 43 percent were small
businesses) and 110 partially regulated plants (of which 50 or 45
percent were small businesses.) In addition, there were 48 producer-
handlers, of which 29 were considered small businesses for the purposes
of this initial regulatory flexibility analysis, who submitted reports
under the Federal milk order program during this period.
The fluid use of milk represented about 37.6 percent of total
Federal milk marketing order producer deliveries during calendar year
2006. Almost 237 million Americans, approximately 80 percent of the
total U.S. population reside within the geographical boundaries of the
10 Federal milk marketing areas.
In order to accomplish the goal of imposing no additional
regulatory burdens on the industry, a review of the current reporting
requirements was completed pursuant to the Paperwork Reduction Act of
1995 (44 U.S.C. 3501 et seq.) In light of that review, it was
determined that these proposed amendments would have little or no
impact on reporting, record keeping, or other compliance requirements
because these requirements would remain identical to those currently in
effect under the Federal order program. No new or additional reporting
would be necessary.
This notice does not require additional information collection that
requires clearance by the OMB beyond the currently approved information
collection. Information currently collected through the use of OMB-
approved forms and the primary sources of data used to complete the
forms are
[[Page 7754]]
routinely used in business transactions. The forms require only a
minimal amount of information that can be provided without data
processing equipment or trained statistical staff. Thus, the
information collection burden is relatively small. Requiring the same
reports from all handlers does not disadvantage any handler that is
smaller than the industry average.
No other burdens are expected to fall upon the dairy industry as a
result of overlapping Federal rules. This proposed rulemaking does not
duplicate, overlap, or conflict with any existing Federal rules.
To ensure that small businesses are not unduly or
disproportionately burdened based on these proposed amendments
consideration was given to mitigating any negative impacts. It is
expected that small producers would not experience any particular
disadvantage compared to larger producers as a result of the proposed
amendments. Similarly, it is expected that small handlers would not
experience any particular disadvantage compared to larger handlers as a
result of the proposed amendments. Possible changes to the Class III
and Class IV price formulas should not have any special impacts on
small handler entities. All handlers manufacturing dairy products from
milk classified as Class III or Class IV would remain subject to the
same minimum prices regardless of the size of their operations. Minimum
prices should not raise barriers regarding the ability of small
handlers to compete in the marketplace.
Interested parties are invited to present evidence on the probable
regulatory and information collection impact of the hearing proposals
on small businesses. Also, such parties may suggest modifications of
the proposal for tailoring its applicability to small businesses.
Executive Order 12988, Civil Justice Reform
The amendments to the rules proposed herein have been reviewed
under Executive Order 12988, Civil Justice Reform. They are not
intended to have a retroactive effect. If adopted, the proposed
amendments would not preempt any state or local laws, regulations, or
policies, unless they present an irreconcilable conflict with this
rule.
The Agricultural Marketing Agreement Act provides that
administrative proceedings must be exhausted before parties may file
suit in court. Under Section 8c(15)(A) of the Act (7 U.S.C.
608c(15)(A)), any handler subject to an order may request modification
or exemption from such order by filing with the Department of
Agriculture (Department) a petition stating that the order, any
provision of the order, or any obligation imposed in connection with
the order is not in accordance with the law. A handler is afforded the
opportunity for a hearing on the petition. After a hearing, the
Department would rule on the petition. The Act provides that the
district court of the United States in any district in which the
handler is an inhabitant, or has its principal place of business, has
jurisdiction in equity to review the Department's ruling on the
petition, provided a bill in equity is filed not later than 20 days
after the date of the entry of the ruling.
Interested parties who wish to introduce exhibits should provide
the Presiding Officer at the hearing with (6) copies of such exhibits
for the Official Record. Also, it would be helpful if additional copies
are available for the use of other participants at the hearing.
List of Subjects in 7 CFR Parts 1000, 1001, 1005, 1006, 1007, 1030,
1032, 1033, 1124, 1126, and 1131.
Milk marketing orders.
The authority citation for 7 CFR parts 1000, 1001, 1005, 1006,
1007, 1030, 1032, 1033, 1124, 1126, and 1131 read as follows:
Authority: 7 U.S.C. 601-674, and 7253.
The proposed amendment, as set forth below, has not received the
approval of the Department.
Proposed by Dairylea Cooperative, Inc.
Proposal No. 20
The additional proposal seeks to establish cost-of-production
surcharges that manufacturers could include in the selling price of
their products but would not be included in the determination of the
NASS survey prices for cheese, butter, nonfat dry milk and dry whey.
1. Amend Sec. 1000.50 by:
(a) Adding new paragraph (r);
(b) Adding new paragraph (r)(1); and
(c) Adding new paragraph (r)(2).
The additions read as follows:
Sec. 1000.50 Class prices, component prices, and advanced pricing
factors.
* * * * *
(r) Manufacturing surcharges. For the purposes of determining the
NASS survey prices for this section, as reported by the Department,
cost of production add-on surcharges, up to a maximum value as
contained in part (1) of this section, shall not be included in the
NASS survey prices.
(1) The maximum cost of production add-on surcharges shall be as
follows:
(i) Cheese: $0.0xxx per pound;
(ii) Butter: $0.0xxx per pound;
(iii) Whey powder: $0.0xxx per pound; and
(iv) Nonfat dry milk: $0.0xxx per pound.
(2) To be excluded from the NASS survey price, cost of production
factors must be shown on the appropriate invoice as a separately
negotiated surcharge to the normal price charged on the invoice, up to
the maximum amount shown for such product pursuant to part (1), above.
Failure to show the add-on as such will result in any such values being
included in the NASS survey price.
2. Amend Sec. 1000.53 by adding new paragraph (a)(12), to read as
follows:
Sec. 1000.53 Announcement of class prices, component prices, and
advanced pricing factors.
(a) * * *
(12) The rates as determined in 1000.50(r)(1).
* * * * *
Copies of this supplemental notice of hearing and the orders may be
procured from the Market Administrator of each of the aforesaid
marketing areas, or from the Hearing Clerk, United States Department of
Agriculture, STOP 9200--Room 1031, 1400 Independence Avenue, SW.,
Washington, DC 20250-9200, or may be inspected there.
Copies of the transcript of testimony taken at the hearing will not
be available for distribution through the Hearing Clerk's Office. If
you wish to purchase a copy, arrangements may be made with the reporter
at the hearing.
From the time that a hearing notice is issued and until the
issuance of a final decision in a proceeding, Department employees
involved in the decision-making process are prohibited from discussing
the merits of the hearing issues on an ex parte basis with any person
having an interest in the proceeding. For this particular proceeding,
the prohibition applies to employees in the following organizational
units:
Office of the Secretary of Agriculture.
Office of the Administrator, Agricultural Marketing Service.
Office of the General Counsel.
Dairy Programs, Agricultural Marketing Service (Washington office)
and the Offices of all Market Administrators.
Procedural matters are not subject to the above prohibition and may
be discussed at any time.
[[Page 7755]]
Dated: February 14, 2007.
Kenneth C. Clayton,
Acting Administrator.
[FR Doc. 07-746 Filed 2-14-07; 4:01 pm]
BILLING CODE 3410-02-P
