Lamb Promotion, Research, and Information Order; Amendment to the Order To Raise the Assessment Rate, 28121-28124 [2013-11390]

Download as PDF wreier-aviles on DSK5TPTVN1PROD with RULES Federal Register / Vol. 78, No. 93 / Tuesday, May 14, 2013 / Rules and Regulations Small agricultural service firms are defined by the Small Business Administration (SBA) as those whose annual receipts are less than $7,000,000 and small agricultural producers are defined as those having annual receipts less than $750,000 (13 CFR 121.201). Based on industry and Committee data, the average annual price for fresh Florida tomatoes during the 2011–12 season was approximately $6.62 per 25pound container, and total fresh shipments for the 2011–12 season were approximately 38,175,363 25-pound cartons of tomatoes. Committee data indicates that approximately 21 percent of the handlers handle 90 percent of the total volume shipped. Based on the average price, about 80 percent of handlers could be considered small businesses under SBA’s definition. In addition, based on production data, grower prices as reported by the National Agricultural Statistics Service, and the total number of Florida tomato growers, the average annual grower revenue is below $750,000. Thus, the majority of handlers and producers of Florida tomatoes may be classified as small entities. This rule continues in effect the action that decreased the assessment rate established for the Committee and collected from handlers for the 2012–13 and subsequent fiscal periods from $0.037 to $0.024 per 25-pound carton of tomatoes. The Committee unanimously recommended 2012–13 expenditures of $1,672,952 and an assessment rate of $0.024 per 25-pound carton of tomatoes. The assessment rate of $0.024 is $0.013 lower than the rate previously in effect. Applying the $0.024 rate per 25-pound carton assessment rate to the Committee’s 35 million cartons crop estimate should provide $840,000, in assessment income. Income derived from handler assessments, along with funds from the Committee’s authorized reserve, interest income, and funds from block grants, will be adequate to cover budgeted expenses. This action will allow the Committee to reduce its financial reserve and will help lower overall industry cost, while still providing adequate funding to meet program expenses. This rule continues in effect the action that decreased the assessment obligation imposed on handlers. Assessments are applied uniformly on all handlers, and some of the costs may be passed on to producers. However, decreasing the assessment rate reduces the burden on handlers, and may reduce the burden on producers. In addition, the Committee’s meeting was widely publicized throughout the Florida tomato industry and all VerDate Mar<15>2010 15:25 May 13, 2013 Jkt 229001 interested persons were invited to attend the meeting and participate in Committee deliberations on all issues. Like all Committee meetings, the August 22, 2012, meeting was a public meeting and all entities, both large and small, were able to express views on this issue. In accordance with the Paperwork Reduction Act of 1995, (44 U.S.C. chapter 35), the order’s information collection requirements have been previously approved by the Office of Management and Budget (OMB) and assigned OMB No. 0581–0178, Vegetable and Specialty Crops. No changes in those requirements as a result of this action are anticipated. Should any changes become necessary, they would be submitted to OMB for approval. This action imposes no additional reporting or recordkeeping requirements on either small or large Florida tomato handlers. As with all Federal marketing order programs, reports and forms are periodically reviewed to reduce information requirements and duplication by industry and public sector agencies. USDA has not identified any relevant Federal rules that duplicate, overlap, or conflict with this rule. Comments on the interim rule were required to be received on or before April 9, 2013. No comments were received. Therefore, for reasons given in the interim rule, we are adopting the interim rule as a final rule, without change. To view the interim rule, go to: https://www.regulations.gov/ #!documentDetail;D=AMS-FV-12-00510001. This action also affirms information contained in the interim rule concerning Executive Orders 12866 and 12988, and the E-Gov Act (44 U.S.C. 101). After consideration of all relevant material presented, it is found that finalizing the interim rule, without change, as published in the Federal Register (78 FR 9307, February 8, 2013) will tend to effectuate the declared policy of the Act. List of Subjects in 7 CFR Part 966 Marketing agreements, Reporting and recordkeeping requirements, Tomatoes. PART 966—TOMATOES GROWN IN FLORIDA Accordingly, the interim rule amending 7 CFR part 966, which was published at 78 FR 9307 on February 8, 2013, is adopted as a final rule, without change. PO 00000 Frm 00007 Fmt 4700 Sfmt 4700 28121 Dated: May 8, 2013. David R. Shipman, Administrator, Agricultural Marketing Service. [FR Doc. 2013–11385 Filed 5–13–13; 8:45 am] BILLING CODE 3410–02–P DEPARTMENT OF AGRICULTURE Agricultural Marketing Service 7 CFR Part 1280 [No. AMS–LS–11–0038] Lamb Promotion, Research, and Information Order; Amendment to the Order To Raise the Assessment Rate Agricultural Marketing Service, USDA. ACTION: Final rule. AGENCY: This final rule amends the Lamb Promotion, Research, and Information Order (Order) to increase the assessment rate on all live ovine animals sold from $0.005 per pound to $0.007 per pound for producers, feeders, and seedstock producers, and from $0.30 per head of ovine animals purchased for slaughter to $0.42 per head for first handlers. The increase is provided for under the Order, which is authorized by the Commodity Promotion, Research, and Information Act of 1996 (Act) (7 U.S.C. 7411–7425). The American Lamb Board (Board), which administers the Order, recommended this action to maintain and expand their promotional, research, advertising, and communications programs. SUMMARY: DATES: Effective June 13, 2013. FOR FURTHER INFORMATION CONTACT: Emily DeBord, Agricultural Marketing Specialist, Research and Promotion Division, on 202–690–2611, fax 202– 720–1125, or by email at Emily.DeBord@ams.usda.gov. SUPPLEMENTARY INFORMATION: Executive Order 12866 The Office of Management and Budget (OMB) has waived the review process required by Executive Order (E.O.) 12866 for this action. Executive Order 12988 This final rule has been reviewed under E.O. 12988, Civil Justice Reform. The rule is not intended to have retroactive effect and will not affect or preempt any other State or Federal law authorizing promotion or research relating to an agricultural commodity. Under section 519 of the Act a person subject to the Order may file a petition E:\FR\FM\14MYR1.SGM 14MYR1 28122 Federal Register / Vol. 78, No. 93 / Tuesday, May 14, 2013 / Rules and Regulations wreier-aviles on DSK5TPTVN1PROD with RULES with the Secretary of Agriculture (Secretary) stating that the Order, any provision of the Order, or any obligation imposed in connection with the Order is not established in accordance with the law, and may request a modification of the Order or an exemption from the Order. Any petition filed challenging the Order, any provision of the Order, or any obligation imposed in connection with the Order, shall be filed within 2 years after the effective date of the Order, provision, or obligation subject to challenge in the petition. The petitioner will have the opportunity for a hearing on the petition. Thereafter, the Secretary will issue a ruling on the petition. The Act provides that the district court of the United States for any district in which the petitioner resides or conducts business shall have the jurisdiction to review a final ruling on the petition if the petitioner files a complaint for that purpose not later than 20 days after the date of the entry of the Secretary’s final ruling. Regulatory Flexibility Act and Paperwork Reduction Act Pursuant to the requirements set forth in the Regulatory Flexibility Act (RFA) (5 U.S.C. 601–612), the Administrator of the Agricultural Marketing Service (AMS) has considered the economic effect of this action on small entities and has determined that this final rule will not have a significant impact on a substantial number of small entities. The purpose of the RFA is to fit regulatory action to the scale of businesses subject to such action in order that small businesses will not be unduly burdened. The U.S. Department of Agriculture’s (Department) National Agricultural Statistics Service estimated that in 2012 the number of operations in the United States with sheep totaled approximately 79,500. The majority of these operations that are subject to the Order may be classified as small entities. The Small Business Administration defines, in 13 CFR Part 121, small agricultural producers as those having annual receipts of no more than $750,000, and small agricultural service firms (handlers and importers) as those having annual receipts of no more than $7 million. Under these definitions, the majority of the producers, feeders, seedstock producers, and first handlers that will be affected by this final rule are considered small entities. Funds collected under the programs are used for promotion, information, research, and advertising of American lamb and for the administration, maintenance, and functioning of the Board. At the current assessment rate of VerDate Mar<15>2010 15:25 May 13, 2013 Jkt 229001 one-half of a cent ($0.005) per pound on all live lambs sold by producers, feeders, and seedstock producers and thirty cents ($0.30) per head of lamb purchased by first handlers for slaughter, the program generates about $1.8 million in annual revenues. The current assessment rate was established in April 11, 2002, when the Order was issued (70 FR 17848). The Order is administered by the Board under Department oversight. According to the Board, additional revenue is required in order to sustain and expand the promotional, research, advertising, and communications programs. On May 26, 2011, the Board passed a motion to raise the assessment rate as authorized under the Act and Order (7 CFR Part 1280). This final rule is consistent with section 1280.217(e) of the Order, which states that the rate of assessment for producers, seedstock producers, and feeders may be raised or lowered no more than twentyhundredths of a cent ($0.002) in any one year. In addition, section 1280.219 states the rate of assessment for first handlers shall be increased or decreased proportionately if the assessment paid by producers, feeders, and seedstock producers is increased or decreased. The current rate producers pay on a per pound basis, $0.005 per pound, is 16.7 percent of the rate first handlers pay on a per head basis, $0.30 per head. To keep the same proportionality when producers are assessed a rate of $0.007 per pound, the first handlers will be assessed a rate of $0.42 per head. Currently, section 1280.217 of the Order states that the rate of assessment shall be one-half of a cent ($0.005) per pound on all live lambs sold. Section 1280.219 currently states each first handler, in addition to remitting the assessment collected pursuant to section 1280.217, shall pay an assessment equal to thirty cents ($0.30) per head of lambs purchased by the first handler for slaughter or slaughtered by such first handler pursuant to a custom slaughter arrangement. This final rule will amend the aforementioned sections. The Board’s most recent return on investment study, Analyzing the Effectiveness of the Lamb Promotion, Research, and Information Order, by Oral Capps, Jr. and Gary W. Williams, showed that for the period 2002 through 2010 the Lamb Checkoff Program continued to enhance the demand for American lamb. The analysis shows that the Board’s promotion programs have generated roughly 7.1 to 7.5 additional pounds of total lamb consumption per dollar spent on advertising and promotion and $37.16 to $39.34 in additional lamb sales per dollar spent PO 00000 Frm 00008 Fmt 4700 Sfmt 4700 on advertising and promotion. Copies of this study can be obtained from the Board. Over the last several fiscal years, however, several trends have asserted downward pressure on the Board’s continued ability to sustain the industry’s recognized high level of return. Domestic lamb production levels have continued to decrease. A growing percentage of domestic lamb is being sold into non-traditional markets and higher costs driven by worldwide inflation have increased the expense of implementing Board programs. The Board’s assessment collections have continued to decrease from $2.8 million in 2003 to $1.9 million in 2012. Over the past few years the Board’s budget has decreased and business costs have increased. The Board has explored ways to maintain effective programs by cutting programs that are not meeting the Board’s expectations. The Board believes that marketing and promotions programs should not be reduced any further at a time when it is critical for the industry to protect American lamb’s position in retail and foodservice and maintain market share. The Board states that the proposed assessment rate increase would enable it to maintain, enhance, and expand its efforts to build demand, increase awareness, and create preference for American lamb through targeted advertising, retail promotions, public relations campaigns and media outreach, foodservice programs, consumer events, social marketing, and nutrition education. The Board strongly believes that it is a critical time for the industry to protect their position in retail and foodservice and maintain market share in order for there to be a future for domestic lamb. The Board believes that it is essential to increase the lamb checkoff revenue and get its marketing and promotion budget back to the original budget levels in fiscal years 2003 and 2004 in order to maintain its efforts to promote American lamb and deliver a good return on the industry’s investment. This final rule does not impose additional recordkeeping requirements on producers, feeders, seedstock producers, or first handlers of American lamb. There are no Federal rules that duplicate, overlap, or conflict with this rule. In accordance with OMB regulation (5 CFR part 1320), which implements the Paperwork Reduction Act of 1995 (44 U.S.C. chapter 35), the information collection and recordkeeping requirements have been approved previously under OMB control number 0581–0093. This final rule does not result in a change to the E:\FR\FM\14MYR1.SGM 14MYR1 Federal Register / Vol. 78, No. 93 / Tuesday, May 14, 2013 / Rules and Regulations The Act provides for the creation of, and amendments to, the Order. The Order provides in section 1280.210 that the Board shall have the powers and duties to recommend to the Secretary such amendments to the Order as the Board considers appropriate. Background and Final Action wreier-aviles on DSK5TPTVN1PROD with RULES information collection and recordkeeping requirements previously approved. We have performed this initial RFA regarding the impact of this final amendment to the Order on small entities. Comments On June 12, 2012, the Department published in the Federal Register (77 FR 34868) for public comment a proposed rule to amend the Order to increase the assessment rate on all live ovine animals sold from $0.005 to $0.007 per pound for producers, feeders, and seedstock producers, and from $0.30 to $0.42 per head for first handlers. Comments were due to the Department by August 13, 2012. The Department received 121 timely comments related to the proposed rule, of which 94, or 77.7% were in support of the assessment rate increase, and 26, or 21.5%, were opposed to the increase. One comment was neither for nor against the increase, and four comments, which generally reflected the views of those who supported the increase, were received after the closing date. Commenters included producers, feeders, seedstock producers, first handlers, and other interested parties. Commenters supporting the assessment rate increase pointed to the need to raise sufficient funding for lamb promotions in the face of rising costs. Many noted that the assessment rate had not been increased during the past decade and that the increase would restore marketing funding to earlier levels. Several commenters suggested that the lamb industry would lose share of voice in the market without increased funding. Commenters also noted that the rate increase would offset the decline in lamb inventories across the country. Other commenters pointed out that the lamb industry increasingly was being outspent by competing meats and international competitors in marketing activities. Commenters who opposed the assessment rate increase cited the decline of the industry (lamb numbers falling; prices not competitive with imported lamb meat). Many suggested that lamb producers were losing money and could not afford the additional cost. Several commenters based their opposition to the rate increase on their belief that the Lamb Checkoff has not been driving increased lamb consumption. Two commenters noted that the lamb industry is too diversified for the generic checkoff program to be successful. AMS has carefully considered all comments submitted and is not making Under the Order, which became effective April 11, 2002, the Board administers a nationally coordinated program of research, development, advertising, and promotion designed to strengthen the position of, and to develop and expand the markets for, ovine animals and ovine products. This program is currently financed by assessments from producers, feeders, and seedstock producers who pay an assessment of one-half cent ($0.005) per pound when live ovine animals are sold. First handlers, primarily packers, pay an additional $0.30 per head on ovine animals purchased for slaughter. Importers are not assessed. This final rule will increase the assessment rate on all live lambs sold from $0.005 per pound to $0.007 per pound for producers, feeders, and seedstock producers and from $0.30 per head of lamb purchased for slaughter to $0.42 per head for first handlers. According to the Board, in order to sustain and expand the promotion, research, and communications programs at present levels, the Board contends that additional revenue is required. The assessment rate increase is estimated to generate $700,000 in new revenue, depending upon production levels. The Board’s budget is based on the amount of assessments collected on an annual basis. As assessments have continued to decline, the Board’s budget has decreased from $2.8 million in 2003 to $1.9 million in 2012. As expenses to successfully promote and increase the consumption of American lamb continue to rise, the Board believes it is necessary to amend the Order to increase the rate of assessment. On May 26, 2011, the Board unanimously approved a motion to request that the Secretary amend sections 1280.217 (e) and 1280.219 of the Order to increase the assessment rate on all live lambs sold from $0.005 per pound to $0.007 per pound for producers, feeders, and seedstock producers and from $0.30 per head of lamb purchased for slaughter to $0.42 per head for first handlers. The Board has not amended the Order to raise or lower the assessment rate since the inception of the program. The vote to recommend the assessment increase was unanimous. VerDate Mar<15>2010 15:25 May 13, 2013 Jkt 229001 PO 00000 Frm 00009 Fmt 4700 Sfmt 4700 28123 any changes to the proposed rule. As has been stated previously in this rulemaking, in the Board’s view, it is a critical time for the lamb industry to protect its position in retail and foodservice, and maintain market share, in order for there to be a future for domestic lamb. Therefore, it is essential to increase the lamb checkoff revenue and get its marketing and promotion budget back to the original budget levels in fiscal years 2003 and 2004 in order to maintain the Board’s efforts to promote American lamb and deliver a good return on the industry’s investment. List of Subjects in 7 CFR Part 1280 Administrative practice and procedure, Advertising, Agricultural research, Marketing agreements, Lamb and Lamb products, Reporting and recordkeeping requirements. For reasons set forth in the preamble, this final rule amends 7 CFR part 1280 as follows: PART 1280—LAMB PROMOTION, RESEARCH, AND INFORMATION 1. The authority citation for 7 CFR part 1280 continues to read as follows: ■ Authority: 7 U.S.C. 7411–7425 and 7 U.S.C. 7401. 2. In § 1280.217, paragraph (e) is revised to read as follows: ■ § 1280.217 Lamb purchases. * * * * * (e) Rate. Except as otherwise provided, the rate of assessment shall be seven-tenths of a cent ($0.007) per pound on all live lambs sold. The rate of assessment may be raised or lowered no more than twenty-hundredths of a cent ($0.002) in any one year. The Board may recommend any change to the Department. Prior to a change in the assessment rate, the Department will provide notice by publishing in the Federal Register any proposed changes with interested parties allowed to provide comment. * * * * * ■ 3. Section 1280.219 is revised to read as follows: § 1280.219 First handlers. Each first handler, in addition to remitting the assessment collected pursuant to § 1280.217, shall pay an assessment equal to forty-two cents ($0.42) per head of lambs purchased by the first handler for slaughter or slaughtered by such first handler pursuant to a custom slaughter arrangement. The rates of assessment for first handlers shall be increased or E:\FR\FM\14MYR1.SGM 14MYR1 28124 Federal Register / Vol. 78, No. 93 / Tuesday, May 14, 2013 / Rules and Regulations decreased proportionately if the assessment paid by producers, seedstock producers, and feeders is increased or decreased. Such assessment shall be remitted with the assessments collected pursuant to § 1280.217. attorneys 1 and accredited representatives 2 who practice before EOIR’s immigration courts and the Board.3 See 78 FR 19400 (April 1, 2013). The final rule amends 8 CFR part 1292 by establishing a new paragraph in § 1292.1(f) that provides for attorneys and accredited representatives to register electronically with EOIR in order to practice before its immigration courts and the Board. eRegistry is part of a long-term agency plan to create an electronic case access and filing system for the immigration courts and the Board. The eRegistry will individually and uniquely identify each registered attorney or accredited representative and associate the information provided during registration with that attorney or accredited representative. This will increase efficiency by reducing system errors in scheduling matters and providing improved notice to attorneys and accredited representatives. Further, registration will ultimately enable an electronic filing system that will reduce the time and expense presently incurred with paper filings. Dated: May 8, 2013. David R. Shipman, Administrator, Agricultural Marketing Service. [FR Doc. 2013–11390 Filed 5–13–13; 8:45 am] BILLING CODE 3410–02–P DEPARTMENT OF JUSTICE Executive Office for Immigration Review 8 CFR Part 1292 [Docket No. EOIR 138] RIN 1125–AA39 Registry for Attorneys and Representatives Executive Office for Immigration Review, Department of Justice. ACTION: Notice of implementation of registration requirement. AGENCY: II. Who Must Register The Executive Office for Immigration Review (EOIR) has established a mandatory electronic registry for attorneys and accredited representatives who practice before EOIR’s immigration courts and Board of Immigration Appeals (BIA or Board). This notice provides additional instructions regarding the registration process. SUMMARY: Attorneys and accredited representatives will be able to register beginning on June 10, 2013. After December 10, 2013, attorneys and accredited representatives must be registered in order to practice before EOIR’s immigration courts and the Board and may be subject to administrative suspension for failure to register. FOR FURTHER INFORMATION CONTACT: Jeff Rosenblum, General Counsel, Executive Office for Immigration Review, 5107 Leesburg Pike, Suite 2600, Falls Church, Virginia 22041, telephone (703) 305– 0470 (not a toll-free call). SUPPLEMENTARY INFORMATION: wreier-aviles on DSK5TPTVN1PROD with RULES DATES: I. Background On April 1, 2013, the Department published in the Federal Register a final rule that establishes a mandatory electronic registry (eRegistry) for VerDate Mar<15>2010 15:25 May 13, 2013 Jkt 229001 All attorneys and accredited representatives who practice before EOIR’s immigration courts or the Board must register with EOIR’s eRegistry. See 8 CFR 1292.1(a)(1), (a)(4), (f). At this time, the electronic registration requirements apply only to attorneys and to accredited representatives who are authorized to appear before EOIR. (This includes attorneys and accredited representatives who appear before both EOIR and DHS, but the registration requirements only pertain to their practice before EOIR.) Accordingly, accredited representatives authorized to appear only before DHS, law students, law graduates, reputable individuals, or accredited foreign government officials will not be able to register at this time. 1 For purposes of this notice, the term ‘‘attorney’’ refers to any individual meeting the definition of ‘‘attorney’’ in 8 CFR 1001.1(f), except any attorney who represents the Federal Government before EOIR. 2 An accredited representative is a non-attorney who is designated by a recognized organization and accredited by the Board pursuant to 8 CFR 1292.2(d) to represent individuals before the Department of Homeland Security (DHS), or before both DHS and EOIR. All accredited representatives must be affiliated with an organization established in the United States that has received recognition by the Board pursuant to 8 CFR 1292.2(a). For purposes of this notice, the term ‘‘accredited representative’’ refers only to an accredited representative who is accredited to appear before both EOIR and DHS. See 8 CFR 1292.2(d). 3 The electronic registration requirement does not apply to representatives who appear before EOIR’s Office of the Chief Administrative Hearing Officer. PO 00000 Frm 00010 Fmt 4700 Sfmt 4700 Similarly, law firms and recognized organizations will not be able to register. III. How To Register Registration is a two-step process, which consists of an online registration and an identity validation. Both steps must be completed in order for an attorney or accredited representative to be registered before EOIR. Attorneys and accredited representatives will begin the online registration process by selecting their relevant account type, creating an individual UserID and password, and providing answers to password-related security questions.4 Thereafter, attorneys and accredited representatives will follow on-screen instructions to enter and submit the requested information. After registering, a registry applicant will need to appear at an immigration court location or the Board to present photo identification, so that EOIR can verify the applicant’s identity. Once that step is completed, EOIR will notify the registrant that his or her account has been activated. Attorneys will be required to provide the following information when registering: full name; date of birth; business address(es); business telephone number(s); email address(es)5; and bar admission information for all the jurisdictions in which they are licensed to practice, including those in which they are inactive. If they are licensed in a jurisdiction that does not provide bar numbers, they will not be required to submit a bar number for that jurisdiction. Attorneys may also enter the name of their business or law firm. Accredited representatives will be required to provide the following information when registering: full name; date of birth; business address(es); business telephone number(s); email address(es); and name(s) of all the recognized organization(s) that have obtained accreditation for the representative to appear before EOIR. EOIR will process the submitted information and then communicate with the registry applicant via email. First, EOIR will send an email to the registry applicant with instructions for the identity validation process.6 After the 4 A registered attorney or accredited representative will be able to provide the answers to these questions in order to reset a forgotten password. 5 Registrants will be able to provide more than one email address, when appropriate, i.e., an email address for eRegistry account-related emails and an email address for case specific correspondence. 6 As indicated in the final rule, registry applicants will be able to appear at an immigration court or the Board’s Clerk’s Office to present specified photo identification, so that EOIR can verify the registrant’s identity. In addition, EOIR anticipates E:\FR\FM\14MYR1.SGM 14MYR1

Agencies

[Federal Register Volume 78, Number 93 (Tuesday, May 14, 2013)]
[Rules and Regulations]
[Pages 28121-28124]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-11390]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1280

[No. AMS-LS-11-0038]


Lamb Promotion, Research, and Information Order; Amendment to the 
Order To Raise the Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: This final rule amends the Lamb Promotion, Research, and 
Information Order (Order) to increase the assessment rate on all live 
ovine animals sold from $0.005 per pound to $0.007 per pound for 
producers, feeders, and seedstock producers, and from $0.30 per head of 
ovine animals purchased for slaughter to $0.42 per head for first 
handlers. The increase is provided for under the Order, which is 
authorized by the Commodity Promotion, Research, and Information Act of 
1996 (Act) (7 U.S.C. 7411-7425). The American Lamb Board (Board), which 
administers the Order, recommended this action to maintain and expand 
their promotional, research, advertising, and communications programs.

DATES: Effective June 13, 2013.

FOR FURTHER INFORMATION CONTACT: Emily DeBord, Agricultural Marketing 
Specialist, Research and Promotion Division, on 202-690-2611, fax 202-
720-1125, or by email at Emily.DeBord@ams.usda.gov.

SUPPLEMENTARY INFORMATION: 

Executive Order 12866

    The Office of Management and Budget (OMB) has waived the review 
process required by Executive Order (E.O.) 12866 for this action.

Executive Order 12988

    This final rule has been reviewed under E.O. 12988, Civil Justice 
Reform. The rule is not intended to have retroactive effect and will 
not affect or preempt any other State or Federal law authorizing 
promotion or research relating to an agricultural commodity.
    Under section 519 of the Act a person subject to the Order may file 
a petition

[[Page 28122]]

with the Secretary of Agriculture (Secretary) stating that the Order, 
any provision of the Order, or any obligation imposed in connection 
with the Order is not established in accordance with the law, and may 
request a modification of the Order or an exemption from the Order. Any 
petition filed challenging the Order, any provision of the Order, or 
any obligation imposed in connection with the Order, shall be filed 
within 2 years after the effective date of the Order, provision, or 
obligation subject to challenge in the petition. The petitioner will 
have the opportunity for a hearing on the petition. Thereafter, the 
Secretary will issue a ruling on the petition.
    The Act provides that the district court of the United States for 
any district in which the petitioner resides or conducts business shall 
have the jurisdiction to review a final ruling on the petition if the 
petitioner files a complaint for that purpose not later than 20 days 
after the date of the entry of the Secretary's final ruling.

Regulatory Flexibility Act and Paperwork Reduction Act

    Pursuant to the requirements set forth in the Regulatory 
Flexibility Act (RFA) (5 U.S.C. 601-612), the Administrator of the 
Agricultural Marketing Service (AMS) has considered the economic effect 
of this action on small entities and has determined that this final 
rule will not have a significant impact on a substantial number of 
small entities. The purpose of the RFA is to fit regulatory action to 
the scale of businesses subject to such action in order that small 
businesses will not be unduly burdened.
    The U.S. Department of Agriculture's (Department) National 
Agricultural Statistics Service estimated that in 2012 the number of 
operations in the United States with sheep totaled approximately 
79,500. The majority of these operations that are subject to the Order 
may be classified as small entities.
    The Small Business Administration defines, in 13 CFR Part 121, 
small agricultural producers as those having annual receipts of no more 
than $750,000, and small agricultural service firms (handlers and 
importers) as those having annual receipts of no more than $7 million. 
Under these definitions, the majority of the producers, feeders, 
seedstock producers, and first handlers that will be affected by this 
final rule are considered small entities.
    Funds collected under the programs are used for promotion, 
information, research, and advertising of American lamb and for the 
administration, maintenance, and functioning of the Board. At the 
current assessment rate of one-half of a cent ($0.005) per pound on all 
live lambs sold by producers, feeders, and seedstock producers and 
thirty cents ($0.30) per head of lamb purchased by first handlers for 
slaughter, the program generates about $1.8 million in annual revenues. 
The current assessment rate was established in April 11, 2002, when the 
Order was issued (70 FR 17848). The Order is administered by the Board 
under Department oversight. According to the Board, additional revenue 
is required in order to sustain and expand the promotional, research, 
advertising, and communications programs.
    On May 26, 2011, the Board passed a motion to raise the assessment 
rate as authorized under the Act and Order (7 CFR Part 1280). This 
final rule is consistent with section 1280.217(e) of the Order, which 
states that the rate of assessment for producers, seedstock producers, 
and feeders may be raised or lowered no more than twenty-hundredths of 
a cent ($0.002) in any one year. In addition, section 1280.219 states 
the rate of assessment for first handlers shall be increased or 
decreased proportionately if the assessment paid by producers, feeders, 
and seedstock producers is increased or decreased. The current rate 
producers pay on a per pound basis, $0.005 per pound, is 16.7 percent 
of the rate first handlers pay on a per head basis, $0.30 per head. To 
keep the same proportionality when producers are assessed a rate of 
$0.007 per pound, the first handlers will be assessed a rate of $0.42 
per head. Currently, section 1280.217 of the Order states that the rate 
of assessment shall be one-half of a cent ($0.005) per pound on all 
live lambs sold. Section 1280.219 currently states each first handler, 
in addition to remitting the assessment collected pursuant to section 
1280.217, shall pay an assessment equal to thirty cents ($0.30) per 
head of lambs purchased by the first handler for slaughter or 
slaughtered by such first handler pursuant to a custom slaughter 
arrangement. This final rule will amend the aforementioned sections.
    The Board's most recent return on investment study, Analyzing the 
Effectiveness of the Lamb Promotion, Research, and Information Order, 
by Oral Capps, Jr. and Gary W. Williams, showed that for the period 
2002 through 2010 the Lamb Checkoff Program continued to enhance the 
demand for American lamb. The analysis shows that the Board's promotion 
programs have generated roughly 7.1 to 7.5 additional pounds of total 
lamb consumption per dollar spent on advertising and promotion and 
$37.16 to $39.34 in additional lamb sales per dollar spent on 
advertising and promotion. Copies of this study can be obtained from 
the Board.
    Over the last several fiscal years, however, several trends have 
asserted downward pressure on the Board's continued ability to sustain 
the industry's recognized high level of return. Domestic lamb 
production levels have continued to decrease. A growing percentage of 
domestic lamb is being sold into non-traditional markets and higher 
costs driven by worldwide inflation have increased the expense of 
implementing Board programs. The Board's assessment collections have 
continued to decrease from $2.8 million in 2003 to $1.9 million in 
2012. Over the past few years the Board's budget has decreased and 
business costs have increased. The Board has explored ways to maintain 
effective programs by cutting programs that are not meeting the Board's 
expectations. The Board believes that marketing and promotions programs 
should not be reduced any further at a time when it is critical for the 
industry to protect American lamb's position in retail and foodservice 
and maintain market share.
    The Board states that the proposed assessment rate increase would 
enable it to maintain, enhance, and expand its efforts to build demand, 
increase awareness, and create preference for American lamb through 
targeted advertising, retail promotions, public relations campaigns and 
media outreach, foodservice programs, consumer events, social 
marketing, and nutrition education. The Board strongly believes that it 
is a critical time for the industry to protect their position in retail 
and foodservice and maintain market share in order for there to be a 
future for domestic lamb. The Board believes that it is essential to 
increase the lamb checkoff revenue and get its marketing and promotion 
budget back to the original budget levels in fiscal years 2003 and 2004 
in order to maintain its efforts to promote American lamb and deliver a 
good return on the industry's investment.
    This final rule does not impose additional recordkeeping 
requirements on producers, feeders, seedstock producers, or first 
handlers of American lamb. There are no Federal rules that duplicate, 
overlap, or conflict with this rule. In accordance with OMB regulation 
(5 CFR part 1320), which implements the Paperwork Reduction Act of 1995 
(44 U.S.C. chapter 35), the information collection and recordkeeping 
requirements have been approved previously under OMB control number 
0581-0093. This final rule does not result in a change to the

[[Page 28123]]

information collection and recordkeeping requirements previously 
approved.
    We have performed this initial RFA regarding the impact of this 
final amendment to the Order on small entities.

Background and Final Action

    Under the Order, which became effective April 11, 2002, the Board 
administers a nationally coordinated program of research, development, 
advertising, and promotion designed to strengthen the position of, and 
to develop and expand the markets for, ovine animals and ovine 
products. This program is currently financed by assessments from 
producers, feeders, and seedstock producers who pay an assessment of 
one-half cent ($0.005) per pound when live ovine animals are sold. 
First handlers, primarily packers, pay an additional $0.30 per head on 
ovine animals purchased for slaughter. Importers are not assessed.
    This final rule will increase the assessment rate on all live lambs 
sold from $0.005 per pound to $0.007 per pound for producers, feeders, 
and seedstock producers and from $0.30 per head of lamb purchased for 
slaughter to $0.42 per head for first handlers. According to the Board, 
in order to sustain and expand the promotion, research, and 
communications programs at present levels, the Board contends that 
additional revenue is required. The assessment rate increase is 
estimated to generate $700,000 in new revenue, depending upon 
production levels.
    The Board's budget is based on the amount of assessments collected 
on an annual basis. As assessments have continued to decline, the 
Board's budget has decreased from $2.8 million in 2003 to $1.9 million 
in 2012. As expenses to successfully promote and increase the 
consumption of American lamb continue to rise, the Board believes it is 
necessary to amend the Order to increase the rate of assessment.
    On May 26, 2011, the Board unanimously approved a motion to request 
that the Secretary amend sections 1280.217 (e) and 1280.219 of the 
Order to increase the assessment rate on all live lambs sold from 
$0.005 per pound to $0.007 per pound for producers, feeders, and 
seedstock producers and from $0.30 per head of lamb purchased for 
slaughter to $0.42 per head for first handlers. The Board has not 
amended the Order to raise or lower the assessment rate since the 
inception of the program. The vote to recommend the assessment increase 
was unanimous.
    The Act provides for the creation of, and amendments to, the Order. 
The Order provides in section 1280.210 that the Board shall have the 
powers and duties to recommend to the Secretary such amendments to the 
Order as the Board considers appropriate.

Comments

    On June 12, 2012, the Department published in the Federal Register 
(77 FR 34868) for public comment a proposed rule to amend the Order to 
increase the assessment rate on all live ovine animals sold from $0.005 
to $0.007 per pound for producers, feeders, and seedstock producers, 
and from $0.30 to $0.42 per head for first handlers. Comments were due 
to the Department by August 13, 2012.
    The Department received 121 timely comments related to the proposed 
rule, of which 94, or 77.7% were in support of the assessment rate 
increase, and 26, or 21.5%, were opposed to the increase. One comment 
was neither for nor against the increase, and four comments, which 
generally reflected the views of those who supported the increase, were 
received after the closing date. Commenters included producers, 
feeders, seedstock producers, first handlers, and other interested 
parties.
    Commenters supporting the assessment rate increase pointed to the 
need to raise sufficient funding for lamb promotions in the face of 
rising costs. Many noted that the assessment rate had not been 
increased during the past decade and that the increase would restore 
marketing funding to earlier levels. Several commenters suggested that 
the lamb industry would lose share of voice in the market without 
increased funding. Commenters also noted that the rate increase would 
offset the decline in lamb inventories across the country. Other 
commenters pointed out that the lamb industry increasingly was being 
outspent by competing meats and international competitors in marketing 
activities.
    Commenters who opposed the assessment rate increase cited the 
decline of the industry (lamb numbers falling; prices not competitive 
with imported lamb meat). Many suggested that lamb producers were 
losing money and could not afford the additional cost. Several 
commenters based their opposition to the rate increase on their belief 
that the Lamb Checkoff has not been driving increased lamb consumption. 
Two commenters noted that the lamb industry is too diversified for the 
generic checkoff program to be successful.
    AMS has carefully considered all comments submitted and is not 
making any changes to the proposed rule. As has been stated previously 
in this rulemaking, in the Board's view, it is a critical time for the 
lamb industry to protect its position in retail and foodservice, and 
maintain market share, in order for there to be a future for domestic 
lamb. Therefore, it is essential to increase the lamb checkoff revenue 
and get its marketing and promotion budget back to the original budget 
levels in fiscal years 2003 and 2004 in order to maintain the Board's 
efforts to promote American lamb and deliver a good return on the 
industry's investment.

List of Subjects in 7 CFR Part 1280

    Administrative practice and procedure, Advertising, Agricultural 
research, Marketing agreements, Lamb and Lamb products, Reporting and 
recordkeeping requirements.

    For reasons set forth in the preamble, this final rule amends 7 CFR 
part 1280 as follows:

PART 1280--LAMB PROMOTION, RESEARCH, AND INFORMATION

0
1. The authority citation for 7 CFR part 1280 continues to read as 
follows:

    Authority:  7 U.S.C. 7411-7425 and 7 U.S.C. 7401.


0
2. In Sec.  1280.217, paragraph (e) is revised to read as follows:


Sec.  1280.217  Lamb purchases.

* * * * *
    (e) Rate. Except as otherwise provided, the rate of assessment 
shall be seven-tenths of a cent ($0.007) per pound on all live lambs 
sold. The rate of assessment may be raised or lowered no more than 
twenty-hundredths of a cent ($0.002) in any one year. The Board may 
recommend any change to the Department. Prior to a change in the 
assessment rate, the Department will provide notice by publishing in 
the Federal Register any proposed changes with interested parties 
allowed to provide comment.
* * * * *

0
3. Section 1280.219 is revised to read as follows:


Sec.  1280.219  First handlers.

    Each first handler, in addition to remitting the assessment 
collected pursuant to Sec.  1280.217, shall pay an assessment equal to 
forty-two cents ($0.42) per head of lambs purchased by the first 
handler for slaughter or slaughtered by such first handler pursuant to 
a custom slaughter arrangement. The rates of assessment for first 
handlers shall be increased or

[[Page 28124]]

decreased proportionately if the assessment paid by producers, 
seedstock producers, and feeders is increased or decreased. Such 
assessment shall be remitted with the assessments collected pursuant to 
Sec.  1280.217.

    Dated: May 8, 2013.
David R. Shipman,
Administrator, Agricultural Marketing Service.
[FR Doc. 2013-11390 Filed 5-13-13; 8:45 am]
BILLING CODE 3410-02-P

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