Christmas Tree Promotion, Research, and Information Order; Late Payment and Interest Charges on Past Due Assessments, 10530-10533 [2016-04469]
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10530
Proposed Rules
Federal Register
Vol. 81, No. 40
Tuesday, March 1, 2016
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.
Grain Inspection, Packers and
Stockyards Administration
Grain Inspection, Packers and
Stockyards Administration, USDA.
ACTION: Proposed rule; correction.
AGENCY:
This document corrects the
preamble to a proposed rule; extension
of comment period published by the
Grain Inspection, Packers and
Stockyards Administration (GIPSA) in
the Federal Register of February 24,
2016, regarding (GIPSA) proposal to
revise existing regulations and add new
regulations under the United States
Grain Standards Act (USGSA), as
amended, in order to comply with
amendments to the USGSA made by the
Agriculture Reauthorization Act of
2015. In the SUPPLEMENTARY
INFORMATION section the extension
period to comment for 30 days is
incorrect.
DATES: Effective March 1, 2016.
FOR FURTHER INFORMATION CONTACT:
Barry Gomoll, (202) 720–8286.
asabaliauskas on DSK5VPTVN1PROD with PROPOSALS
SUMMARY:
Correction
In proposed rule FR Doc. 2016–03863,
published on February 24, 2016, 81 FR
9122, make the following correction. On
page 9122, in the SUPPLEMENTARY
INFORMATION section, the last sentence is
revised to read as follows:
‘‘In response to requests from several
interested groups, GIPSA has decided to
extend the comment period for 60
days.’’
Dated: February 24, 2016.
Larry Mitchell,
Administrator, Grain Inspection, Packers and
Stockyards Administration.
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This proposal invites
comments on prescribing late payment
and interest charges on past due
assessments under the Christmas Tree
Promotion, Research, and Information
Order (Order). The Order is
administered by the Christmas Tree
Promotion Board (Board) with oversight
by the U.S. Department of Agriculture
(USDA). Under the Order, assessments
are collected from domestic producers
and importers and used for research and
promotion projects designed to maintain
and expand the market for fresh cut
Christmas trees. This proposal would
implement authority contained in the
Order that allows the Board to collect
late payment and interest charges on
past due assessments. If this rule is
finalized, it is proposed that late
payment and interest charges would
begin to accrue on unpaid assessments
beginning 30 days after the effective
date of the final rule. One additional
change would provide authority in the
Order for the Board to change the crop
year and fiscal period through
administrative action. This action
would contribute to effective
administration of the program.
DATES: Comments must be received by
March 16, 2016.
ADDRESSES: Interested persons are
invited to submit written comments
concerning this rule. Comments may be
submitted on the Internet at: https://
www.regulations.gov or to the
Promotion and Economics Division,
Specialty Crops Program, AMS, USDA,
1400 Independence Avenue SW., Room
1406–S, Stop 0244, Washington, DC
20250–0244; facsimile: (202) 205–2800.
All comments should reference the
document number and the date and
page number of this issue of the Federal
Register and will be made available for
SUMMARY:
Reauthorization of the United States
Grain Standards Act; Extension of
Comment Period; Correction
19:05 Feb 29, 2016
[Document Number AMS–SC–15–0072]
Agricultural Marketing Service,
USDA.
ACTION: Proposed rule.
RIN 0580–AB24
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7 CFR Part 1214
AGENCY:
7 CFR Part 800
BILLING CODE P
Agricultural Marketing Service
Christmas Tree Promotion, Research,
and Information Order; Late Payment
and Interest Charges on Past Due
Assessments
DEPARTMENT OF AGRICULTURE
[FR Doc. 2016–04458 Filed 2–29–16; 8:45 am]
DEPARTMENT OF AGRICULTURE
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public inspection, including name and
address, if provided, in the above office
during regular business hours or it can
be viewed at https://
www.regulations.gov.
FOR FURTHER INFORMATION CONTACT:
Patricia A. Petrella, Promotion and
Economics Division, Specialty Crops
Program, AMS, USDA, 1400
Independence Avenue SW., Room
1406–S, Stop 0244, Washington, DC
20250–0244; telephone: (202) 720–9915;
facsimile (202) 205–2800; or electronic
mail: Patricia.Petrella@ams.usda.gov.
SUPPLEMENTARY INFORMATION: This
proposed rule is issued under the Order
(7 CFR part 1214). The Order is
authorized under the Commodity
Promotion, Research, and Information
Act of 1996 (1996 Act) (7 U.S.C. 7411–
7425).
Executive Order 12866 and Executive
Order 13563
Executive Orders 12866 and 13563
direct agencies to assess all costs and
benefits of available regulatory
alternatives and, if regulation is
necessary, to select regulatory
approaches that maximize net benefits
(including potential economic,
environmental, public health and safety
effects, distributive impacts and equity).
Executive Order 13563 emphasizes the
importance of quantifying both costs
and benefits, reducing costs,
harmonizing rules and promoting
flexibility. This action has been
designated as a ‘‘non-significant
regulatory action’’ under section 3(f) of
Executive Order 12866. Accordingly,
the Office of Management and Budget
(OMB) has waived the review process.
Executive Order 13175
This action has been reviewed in
accordance with the requirements of
Executive Order 13175, Consultation
and Coordination with Indian Tribal
Governments. The review reveals that
this regulation would not have
substantial and direct effects on Tribal
governments and would not have
significant Tribal implications.
Executive Order 12988
This rulemaking has been reviewed
under Executive Order 12988, Civil
Justice Reform. It is not intended to
have retroactive effect. Section 524 of
the 1996 Act (7 U.S.C. 7423) provides
that it shall not affect or preempt any
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Federal Register / Vol. 81, No. 40 / Tuesday, March 1, 2016 / Proposed Rules
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other Federal or State law authorizing
promotion or research relating to an
agricultural commodity.
Under section 519 of the 1996 Act (7
U.S.C. 7418), a person subject to an
order may file a written petition with
USDA stating that an order, any
provision of an order, or any obligation
imposed in connection with an order, is
not established in accordance with the
law, and request a modification of an
order or an exemption from an order.
Any petition filed challenging an order,
any provision of an order, or any
obligation imposed in connection with
an order, shall be filed within two years
after the effective date of an order,
provision, or obligation subject to
challenge in the petition. The petitioner
will have the opportunity for a hearing
on the petition. Thereafter, USDA will
issue a ruling on the petition. The 1996
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 USDA’s final ruling.
Background
This proposed rule invites comments
on prescribing late payment and interest
charges on past due assessments under
the Order. The Order is administered by
the Board with oversight by USDA.
Under the Order, assessments are
collected from domestic producers and
importers and used for research and
promotion projects designed to maintain
and expand markets for fresh cut
Christmas trees. This proposed rule
would implement authority contained
in the Order and the 1996 Act that
allows the Board to collect late payment
and interest charges on past due
assessments. This action was
unanimously recommended by the
Board and would contribute to effective
administration of the program.
Section 1214.52(a) of the Order
specifies that the funds to cover the
Board’s expenses shall be paid from
assessments on producers and
importers, donations from persons not
subject to assessments, and from other
funds available to the Board. Paragraphs
(b) and (c) specify that the collection of
assessments on Christmas trees that are
cut and sold or imported will be the
responsibility of the producer who
produces the Christmas trees or causes
them to be cut, or the importer who
imports Christmas trees for marketing in
the United States.
Section 1214.52 (e) specifies that ‘‘a
late payment charge, may be imposed
on any producer or importer who fails
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to remit to the Board, the total amount
for which any such producer or
importer is liable on or before the due
date established by the Board. In
addition to the late payment charge, an
interest charge may be imposed on the
outstanding amount for which the
producer or importer is liable. The rate
for late payment and interest charges
shall be specified by the Secretary
through rulemaking.’’
The Order was implemented in
November 2011, but immediately
stayed. The stay was lifted on April 7,
2014, and the program is currently in
effect. Domestic assessments are due on
February 15, 2016. This will be the first
assessment collection by the Board.
Importers will be responsible for paying
the assessment directly to the Board 30
calendar days after importation. U.S.
Customs and Border Protection will not
be collecting on importers this season.
Producers who domestically produce
less than 500 Christmas trees annually
or import less than 500 Christmas trees
annually are exempt from assessment.
If this rulemaking is finalized, it is
proposed that late payment and interest
charges would begin to accrue on
unpaid assessments beginning 30 days
after the effective date of the final rule.
Therefore, beginning 30 days after the
effective date of the final rule a late
payment charge of $250 would be
applied to any unpaid assessments for
producers and importers that are
delinquent in paying their assessment. If
the assessment is paid after February 15,
but up to 29 days after the effective date
of the final rule, no late payment charge
would be assessed. The late payment
charge would be increased to $500 after
90 days after the effective date of the
final rule. Additionally, a 1.5 percent
interest charge per month would be
assessed on unpaid assessments and
fees owed, beginning 30 days after the
effective date of the final rule. The delay
of the imposition of late payment and
interest charges would only apply to the
initial period of assessment collection.
Assessment funds are used by the Board
for activities designed to benefit all
industry members. Thus, it is important
that all assessed entities pay their
assessments in a timely manner. Entities
who fail to pay their assessments on
time would be able to reap the benefits
of Board programs at the expense of
others. In addition, they would be able
to utilize funds for their own use that
should otherwise be paid to the Board
to finance Board programs.
Board Recommendation
The Board met on July 17, 2015, and
unanimously recommended specifying
rates of late payment charges and
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10531
interest on past due assessments in the
Order’s regulations. Specifically, the
Board recommended that a late payment
charge of $250 be applied to late
assessments for producers and
importers that are delinquent in paying
their assessment 30 days after the due
date. The late payment charge would be
increased to $500 after 90 days of
delinquency. Additionally, a 1.5 percent
interest charge per month would be
assessed on late assessments and fees
owed, beginning 30 days after the
assessment due date. This fee structure
is not overly burdensome on small
producers or importers, but does create
the incentive to promote timely
payment of assessments due. This
action would contribute to the efficient
administration of the program.
This action would help facilitate
program administration by providing an
incentive for entities to remit
assessments in a timely manner, with
the intent of creating a fair and equitable
process among all assessed entities.
Accordingly, a new Subpart C would be
added to the Order for rules and
regulations, and a new section 1214.520
would be added to Subpart C.
This proposed rule would also make
one additional change to the Order. This
rule would revise the definition of crop
year and fiscal period as defined in
sections 1214.5 and 1214.8,
respectively. The Board recommended
this change because USDA revised the
crop year and fiscal period during the
promulgation process from what was
originally proposed by the industry. The
Board wants the flexibility to change
these dates if necessary. The crop year
and fiscal period would be revised by
adding language to allow the Board to
change the crop year or fiscal period
administratively through Board action.
Initial Regulatory Flexibility Act
Analysis
In accordance with the Regulatory
Flexibility Act (RFA) (5 U.S.C. 601–
612), AMS is required to examine the
impact of the rule on small entities.
Accordingly, AMS has considered the
economic impact of this action.
The purpose of the RFA is to fit
regulatory actions to the scale of
businesses subject to such actions so
that small businesses will not be
disproportionately burdened. 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
(producers and importers) as those
having annual receipts of no more than
$7.5 million.
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Federal Register / Vol. 81, No. 40 / Tuesday, March 1, 2016 / Proposed Rules
According to the 2012 Census of
Agriculture published by the National
Agricultural Statistics Service (NASS), it
is estimated that there are 15,494 farms
that sold cut Christmas trees in the
United States. According to NASS, the
value of cut Christmas trees sold in 2012
was $808,644,000. Dividing that value
by the number of farms yields an
average annual producer revenue of
$52,191. Therefore it is estimated that
all farms that sold Christmas trees had
revenue under $7.5 million.
Likewise, based on Customs data, it is
estimated there are 153 importers of
Christmas trees. Using 2014 Customs
data, all importers import less than $7.5
million worth of Christmas trees
annually. Thus, all domestic producers
and imports of Christmas trees would be
considered small entities.
Regarding the value of the
commodity, as mentioned above, based
on 2012 NASS Census of Agriculture
data, the value of the domestic cut
Christmas trees was about $808.6
million. According to Customs data, the
value of 2014 imports was about $25.8
million.
This rulemaking invites comments on
prescribing late payment and interest
charges on past due assessments under
the Order. The Order is administered by
the Board with oversight by USDA.
Under the Order, assessments are
collected from producers and importers
of Christmas trees that are cut and sold
or imported.
This proposed rule would add a new
section 1214.520 that would specify a
late payment charge of $250 to be
applied to late assessments for
producers and importers that are
delinquent in paying their assessment
30 days after the due date. The late
payment charge would be increased to
$500 after 90 days of delinquency.
Additionally, a 1.5 percent interest
charge per month would be assessed on
late assessments and fees owed,
beginning 30 days after the assessment
due date. This section would be
included in a new Subpart C—
Provisions Implementing the Christmas
Tree Promotion, Research, and
Information Order. This action was
unanimously recommended by the
Board and is authorized under section
1214.52(e) of the Order and section
517(e) of the 1996 Act.
This proposed rule would also make
one additional change to the Order. This
rule would revise the definition of crop
year and fiscal period as defined in
sections 1214.5 and 1214.8,
respectively. The Board recommended
this change because USDA revised the
crop year and fiscal period during the
promulgation process from what was
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originally proposed by the industry. The
Board wants the flexibility to change
these dates if necessary. The crop year
and fiscal period would be revised by
adding language to allow the Board to
change the crop year or fiscal period
administratively through Board action.
Regarding the economic impact of this
proposed rule on affected entities, this
action would impose no costs on
producers and importers who pay their
assessments on time. It would merely
provide an incentive for entities to remit
their assessments in a timely manner.
For all entities who are delinquent in
paying assessments, both large and
small, the charges will be applied
uniformly. As for the impact on the
industry as a whole, this action would
help facilitate program administration
by providing an incentive for entities to
remit their assessments in a timely
manner, with the intent of creating a fair
and equitable process among all
assessed entities.
Additionally, as previously
mentioned, the Order provides for an
exemption for entities that produce or
import less than 500 Christmas trees.
Regarding alternatives, one option to the
proposed action would be to maintain
the status quo and not prescribe late
payment and interest charges for past
due assessments. However, the Board
determined that implementing such
charges would help facilitate program
administration by encouraging entities
to pay their assessments in a timely
manner. The Board reviewed rates of
late payment and interest charges
prescribed in other research and
promotion programs and concluded that
the late payment charge and the interest
charge contained in this proposal would
be appropriate.
In accordance with the Paperwork
Reduction Act of 1995 (44 U.S.C.
Chapter 35), the information collection
and recordkeeping requirements that are
imposed by the Order have been
approved under OMB control number
0581–0093. This rulemaking would not
result in a change to the information
collection and recordkeeping
requirements previously approved and
will impose no additional reporting and
recordkeeping burden on domestic
producers and importers of Christmas
trees.
As with all Federal promotion
programs, reports and forms are
periodically reviewed to reduce
information requirements and
duplication by industry and public
sector agencies. Finally, USDA has not
identified any relevant Federal rules
that duplicate, overlap, or conflict with
this proposed rule.
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AMS is committed to complying with
the E-Government Act, to promote the
use of the Internet and other
information technologies to provide
increased opportunities for citizen
access to Government information and
services, and for other purposes.
Regarding outreach efforts, the Board
met on July 17, 2015, and unanimously
recommended these proposed changes
to the Order. All of the Board’s
meetings, including meetings held via
teleconference, are open to the public
and interested persons are invited to
participate and express their views.
We have performed this initial RFA
regarding the impact of this action on
small entities and we invite comments
concerning potential effects of this
action on small businesses.
While this proposed rule set forth
below has not received the approval of
USDA, it has been determined that it is
consistent with and would effectuate
the purposes of the 1996 Act.
A 15-day comment period is provided
to allow interested persons to respond
to this proposal. Fifteen days is deemed
appropriate because the first collection
of assessments under the Order, on the
2015 harvest, is underway and
assessments were due on February 15,
2016. The Board would like to
implement this incentive as soon as
possible to facilitate the initial
collection of assessments. All written
comments received in response to this
proposed rule by the date specified will
be considered prior to finalizing this
action.
List of Subjects in 7 CFR Part 1214
Administrative practice and
procedure, Advertising, Consumer
information, Christmas trees, Marketing
agreements, Reporting and
recordkeeping requirements.
For the reasons set forth in the
preamble, 7 CFR part 1214 is proposed
to be amended as follows:
PART 1214—CHRISTMAS TREE
PROMOTION, RESEARCH, AND
INFORMATION ORDER
1. The authority citation for 7 CFR
part 1214 continues to read as follows:
■
Authority: 7 U.S.C. 7411–7425; 7 U.S.C.
7401.
2. Section 1214.5 is revised to read as
follows:
■
§ 1214.5
Crop year.
Crop year means the period August 1
through July 31 or such other period
approved by the Secretary.
■ 3. Section 1214.8 is revised to read as
follows:
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Federal Register / Vol. 81, No. 40 / Tuesday, March 1, 2016 / Proposed Rules
§ 1214.8
Fiscal period.
Fiscal period means the period
August 1 through July 31 or such other
period as approved by the Secretary.
■ 4. Subpart C—Rules and Regulations
is added to read as follows:
Subpart C—Provisions Implementing
the Christmas Tree Promotion,
Research, and Information Order
§ 1214.520 Late payment and interest
charges for past due assessments.
(1) A late payment charge shall be
imposed on any producer or importer
who fails to make timely remittance to
the Board of the total assessments for
which such producer or importer is
liable. The late payment charge will be
imposed on any assessments not
received within 30 calendar days of the
date they are due. This one-time late
payment charge shall be $250 and
would be increased to $500 after 90
days of delinquency.
(2) In addition to the late payment
charge, 1.5 percent per month interest
on the outstanding balance, including
any late payment charge and accrued
interest, will be added to any accounts
for which payment has not been
received by the Board within 30
calendar days after the date the
assessments are due. Such interest will
continue to accrue monthly until the
outstanding balance is paid to the
Board.
Dated: February 25, 2016.
Elanor Starmer,
Acting Administrator.
[FR Doc. 2016–04469 Filed 2–29–16; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 39
[Docket No. FAA–2016–3700; Directorate
Identifier 2015–NM–171–AD]
RIN 2120–AA64
Airworthiness Directives; The Boeing
Company Airplanes
Federal Aviation
Administration (FAA), DOT.
ACTION: Notice of proposed rulemaking
(NPRM).
asabaliauskas on DSK5VPTVN1PROD with PROPOSALS
AGENCY:
We propose to adopt a new
airworthiness directive (AD) for all The
Boeing Company Model 757–200 and
–200CB series airplanes. This proposed
AD was prompted by an evaluation by
the design approval holder (DAH)
indicating that the lap splices at stringer
SUMMARY:
VerDate Sep<11>2014
19:05 Feb 29, 2016
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(S)–14R, lower fastener row, are subject
to widespread fatigue damage (WFD).
This proposed AD would require
repetitive external dual frequency eddy
current (DFEC) or internal high
frequency eddy current (HFEC)
inspections of the lap splice, inner skin
fasteners, at S–14R, station (STA) 440
through STA 540, and corrective action
if necessary. We are proposing this AD
to detect and correct cracking of the
fuselage skin lap splice. Such cracking
could result in reduced structural
integrity of the airplane.
DATES: We must receive comments on
this proposed AD by April 15, 2016.
ADDRESSES: You may send comments,
using the procedures found in 14 CFR
11.43 and 11.45, by any of the following
methods:
• Federal eRulemaking Portal: Go to
https://www.regulations.gov. Follow the
instructions for submitting comments.
• Fax: 202–493–2251.
• Mail: U.S. Department of
Transportation, Docket Operations, M–
30, West Building Ground Floor, Room
W12–140, 1200 New Jersey Avenue SE.,
Washington, DC 20590.
• Hand Delivery: Deliver to Mail
address above between 9 a.m. and 5
p.m., Monday through Friday, except
Federal holidays.
For service information identified in
this proposed AD, contact Boeing
Commercial Airplanes, Attention: Data
& Services Management, P. O. Box 3707,
MC 2H–65, Seattle, WA 98124–2207;
telephone: 206–544–5000, extension 1;
fax: 206–766–5680; Internet: https://
www.myboeingfleet.com. You may view
this referenced service information at
the FAA, Transport Airplane
Directorate, 1601 Lind Avenue SW.,
Renton, WA. For information on the
availability of this material at the FAA,
call 425–227–1221. It is also available
on the Internet at https://
www.regulations.gov by searching for
and locating Docket No. FAA–2016–
3700.
Examining the AD Docket
You may examine the AD docket on
the Internet at https://
www.regulations.gov by searching for
and locating Docket No. FAA–2016–
3700; or in person at the Docket
Management Facility between 9 a.m.
and 5 p.m., Monday through Friday,
except Federal holidays. The AD docket
contains this proposed AD, the
regulatory evaluation, any comments
received, and other information. The
street address for the Docket Office
(phone: 800–647–5527) is in the
ADDRESSES section. Comments will be
available in the AD docket shortly after
receipt.
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10533
Eric
Schrieber, Aerospace Engineer,
Airframe Branch, ANM–120L, FAA, Los
Angeles Aircraft Certification Office
(ACO), 3960 Paramount Boulevard,
Lakewood, California 90712–4137;
phone: 562–627–5348; fax: 562–627–
5210; email: eric.schrieber@faa.gov.
SUPPLEMENTARY INFORMATION:
FOR FURTHER INFORMATION CONTACT:
Comments Invited
We invite you to send any written
relevant data, views, or arguments about
this proposal. Send your comments to
an address listed under the ADDRESSES
section. Include ‘‘Docket No. FAA–
2016–3700; Directorate Identifier 2015–
NM–171–AD’’ at the beginning of your
comments. We specifically invite
comments on the overall regulatory,
economic, environmental, and energy
aspects of this proposed AD. We will
consider all comments received by the
closing date and may amend this
proposed AD because of those
comments.
We will post all comments we
receive, without change, to https://
www.regulations.gov, including any
personal information you provide. We
will also post a report summarizing each
substantive verbal contact we receive
about this proposed AD.
Discussion
Structural fatigue damage is
progressive. It begins as minute cracks,
and those cracks grow under the action
of repeated stresses. This can happen
because of normal operational
conditions and design attributes, or
because of isolated situations or
incidents such as material defects, poor
fabrication quality, or corrosion pits,
dings, or scratches. Fatigue damage can
occur locally, in small areas or
structural design details, or globally.
Global fatigue damage is general
degradation of large areas of structure
with similar structural details and stress
levels. Multiple-site damage is global
damage that occurs in a large structural
element such as a single rivet line of a
lap splice joining two large skin panels.
Global damage can also occur in
multiple elements such as adjacent
frames or stringers. Multiple-sitedamage and multiple-element-damage
cracks are typically too small initially to
be reliably detected with normal
inspection methods. Without
intervention, these cracks will grow,
and eventually compromise the
structural integrity of the airplane, in a
condition known as WFD. As an
airplane ages, WFD will likely occur,
and will certainly occur if the airplane
is operated long enough without any
intervention.
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]]>Agencies
[Federal Register Volume 81, Number 40 (Tuesday, March 1, 2016)]
[Proposed Rules]
[Pages 10530-10533]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-04469]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1214
[Document Number AMS-SC-15-0072]
Christmas Tree Promotion, Research, and Information Order; Late
Payment and Interest Charges on Past Due Assessments
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: This proposal invites comments on prescribing late payment and
interest charges on past due assessments under the Christmas Tree
Promotion, Research, and Information Order (Order). The Order is
administered by the Christmas Tree Promotion Board (Board) with
oversight by the U.S. Department of Agriculture (USDA). Under the
Order, assessments are collected from domestic producers and importers
and used for research and promotion projects designed to maintain and
expand the market for fresh cut Christmas trees. This proposal would
implement authority contained in the Order that allows the Board to
collect late payment and interest charges on past due assessments. If
this rule is finalized, it is proposed that late payment and interest
charges would begin to accrue on unpaid assessments beginning 30 days
after the effective date of the final rule. One additional change would
provide authority in the Order for the Board to change the crop year
and fiscal period through administrative action. This action would
contribute to effective administration of the program.
DATES: Comments must be received by March 16, 2016.
ADDRESSES: Interested persons are invited to submit written comments
concerning this rule. Comments may be submitted on the Internet at:
https://www.regulations.gov or to the Promotion and Economics Division,
Specialty Crops Program, AMS, USDA, 1400 Independence Avenue SW., Room
1406-S, Stop 0244, Washington, DC 20250-0244; facsimile: (202) 205-
2800. All comments should reference the document number and the date
and page number of this issue of the Federal Register and will be made
available for public inspection, including name and address, if
provided, in the above office during regular business hours or it can
be viewed at https://www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: Patricia A. Petrella, Promotion and
Economics Division, Specialty Crops Program, AMS, USDA, 1400
Independence Avenue SW., Room 1406-S, Stop 0244, Washington, DC 20250-
0244; telephone: (202) 720-9915; facsimile (202) 205-2800; or
electronic mail: Patricia.Petrella@ams.usda.gov.
SUPPLEMENTARY INFORMATION: This proposed rule is issued under the Order
(7 CFR part 1214). The Order is authorized under the Commodity
Promotion, Research, and Information Act of 1996 (1996 Act) (7 U.S.C.
7411-7425).
Executive Order 12866 and Executive Order 13563
Executive Orders 12866 and 13563 direct agencies to assess all
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts and equity). Executive
Order 13563 emphasizes the importance of quantifying both costs and
benefits, reducing costs, harmonizing rules and promoting flexibility.
This action has been designated as a ``non-significant regulatory
action'' under section 3(f) of Executive Order 12866. Accordingly, the
Office of Management and Budget (OMB) has waived the review process.
Executive Order 13175
This action has been reviewed in accordance with the requirements
of Executive Order 13175, Consultation and Coordination with Indian
Tribal Governments. The review reveals that this regulation would not
have substantial and direct effects on Tribal governments and would not
have significant Tribal implications.
Executive Order 12988
This rulemaking has been reviewed under Executive Order 12988,
Civil Justice Reform. It is not intended to have retroactive effect.
Section 524 of the 1996 Act (7 U.S.C. 7423) provides that it shall not
affect or preempt any
[[Page 10531]]
other Federal or State law authorizing promotion or research relating
to an agricultural commodity.
Under section 519 of the 1996 Act (7 U.S.C. 7418), a person subject
to an order may file a written petition with USDA stating that an
order, any provision of an order, or any obligation imposed in
connection with an order, is not established in accordance with the
law, and request a modification of an order or an exemption from an
order. Any petition filed challenging an order, any provision of an
order, or any obligation imposed in connection with an order, shall be
filed within two years after the effective date of an order, provision,
or obligation subject to challenge in the petition. The petitioner will
have the opportunity for a hearing on the petition. Thereafter, USDA
will issue a ruling on the petition. The 1996 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 USDA's final ruling.
Background
This proposed rule invites comments on prescribing late payment and
interest charges on past due assessments under the Order. The Order is
administered by the Board with oversight by USDA. Under the Order,
assessments are collected from domestic producers and importers and
used for research and promotion projects designed to maintain and
expand markets for fresh cut Christmas trees. This proposed rule would
implement authority contained in the Order and the 1996 Act that allows
the Board to collect late payment and interest charges on past due
assessments. This action was unanimously recommended by the Board and
would contribute to effective administration of the program.
Section 1214.52(a) of the Order specifies that the funds to cover
the Board's expenses shall be paid from assessments on producers and
importers, donations from persons not subject to assessments, and from
other funds available to the Board. Paragraphs (b) and (c) specify that
the collection of assessments on Christmas trees that are cut and sold
or imported will be the responsibility of the producer who produces the
Christmas trees or causes them to be cut, or the importer who imports
Christmas trees for marketing in the United States.
Section 1214.52 (e) specifies that ``a late payment charge, may be
imposed on any producer or importer who fails to remit to the Board,
the total amount for which any such producer or importer is liable on
or before the due date established by the Board. In addition to the
late payment charge, an interest charge may be imposed on the
outstanding amount for which the producer or importer is liable. The
rate for late payment and interest charges shall be specified by the
Secretary through rulemaking.''
The Order was implemented in November 2011, but immediately stayed.
The stay was lifted on April 7, 2014, and the program is currently in
effect. Domestic assessments are due on February 15, 2016. This will be
the first assessment collection by the Board. Importers will be
responsible for paying the assessment directly to the Board 30 calendar
days after importation. U.S. Customs and Border Protection will not be
collecting on importers this season. Producers who domestically produce
less than 500 Christmas trees annually or import less than 500
Christmas trees annually are exempt from assessment.
If this rulemaking is finalized, it is proposed that late payment
and interest charges would begin to accrue on unpaid assessments
beginning 30 days after the effective date of the final rule.
Therefore, beginning 30 days after the effective date of the final rule
a late payment charge of $250 would be applied to any unpaid
assessments for producers and importers that are delinquent in paying
their assessment. If the assessment is paid after February 15, but up
to 29 days after the effective date of the final rule, no late payment
charge would be assessed. The late payment charge would be increased to
$500 after 90 days after the effective date of the final rule.
Additionally, a 1.5 percent interest charge per month would be assessed
on unpaid assessments and fees owed, beginning 30 days after the
effective date of the final rule. The delay of the imposition of late
payment and interest charges would only apply to the initial period of
assessment collection. Assessment funds are used by the Board for
activities designed to benefit all industry members. Thus, it is
important that all assessed entities pay their assessments in a timely
manner. Entities who fail to pay their assessments on time would be
able to reap the benefits of Board programs at the expense of others.
In addition, they would be able to utilize funds for their own use that
should otherwise be paid to the Board to finance Board programs.
Board Recommendation
The Board met on July 17, 2015, and unanimously recommended
specifying rates of late payment charges and interest on past due
assessments in the Order's regulations. Specifically, the Board
recommended that a late payment charge of $250 be applied to late
assessments for producers and importers that are delinquent in paying
their assessment 30 days after the due date. The late payment charge
would be increased to $500 after 90 days of delinquency. Additionally,
a 1.5 percent interest charge per month would be assessed on late
assessments and fees owed, beginning 30 days after the assessment due
date. This fee structure is not overly burdensome on small producers or
importers, but does create the incentive to promote timely payment of
assessments due. This action would contribute to the efficient
administration of the program.
This action would help facilitate program administration by
providing an incentive for entities to remit assessments in a timely
manner, with the intent of creating a fair and equitable process among
all assessed entities. Accordingly, a new Subpart C would be added to
the Order for rules and regulations, and a new section 1214.520 would
be added to Subpart C.
This proposed rule would also make one additional change to the
Order. This rule would revise the definition of crop year and fiscal
period as defined in sections 1214.5 and 1214.8, respectively. The
Board recommended this change because USDA revised the crop year and
fiscal period during the promulgation process from what was originally
proposed by the industry. The Board wants the flexibility to change
these dates if necessary. The crop year and fiscal period would be
revised by adding language to allow the Board to change the crop year
or fiscal period administratively through Board action.
Initial Regulatory Flexibility Act Analysis
In accordance with the Regulatory Flexibility Act (RFA) (5 U.S.C.
601-612), AMS is required to examine the impact of the rule on small
entities. Accordingly, AMS has considered the economic impact of this
action.
The purpose of the RFA is to fit regulatory actions to the scale of
businesses subject to such actions so that small businesses will not be
disproportionately burdened. 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
(producers and importers) as those having annual receipts of no more
than $7.5 million.
[[Page 10532]]
According to the 2012 Census of Agriculture published by the
National Agricultural Statistics Service (NASS), it is estimated that
there are 15,494 farms that sold cut Christmas trees in the United
States. According to NASS, the value of cut Christmas trees sold in
2012 was $808,644,000. Dividing that value by the number of farms
yields an average annual producer revenue of $52,191. Therefore it is
estimated that all farms that sold Christmas trees had revenue under
$7.5 million.
Likewise, based on Customs data, it is estimated there are 153
importers of Christmas trees. Using 2014 Customs data, all importers
import less than $7.5 million worth of Christmas trees annually. Thus,
all domestic producers and imports of Christmas trees would be
considered small entities.
Regarding the value of the commodity, as mentioned above, based on
2012 NASS Census of Agriculture data, the value of the domestic cut
Christmas trees was about $808.6 million. According to Customs data,
the value of 2014 imports was about $25.8 million.
This rulemaking invites comments on prescribing late payment and
interest charges on past due assessments under the Order. The Order is
administered by the Board with oversight by USDA. Under the Order,
assessments are collected from producers and importers of Christmas
trees that are cut and sold or imported.
This proposed rule would add a new section 1214.520 that would
specify a late payment charge of $250 to be applied to late assessments
for producers and importers that are delinquent in paying their
assessment 30 days after the due date. The late payment charge would be
increased to $500 after 90 days of delinquency. Additionally, a 1.5
percent interest charge per month would be assessed on late assessments
and fees owed, beginning 30 days after the assessment due date. This
section would be included in a new Subpart C--Provisions Implementing
the Christmas Tree Promotion, Research, and Information Order. This
action was unanimously recommended by the Board and is authorized under
section 1214.52(e) of the Order and section 517(e) of the 1996 Act.
This proposed rule would also make one additional change to the
Order. This rule would revise the definition of crop year and fiscal
period as defined in sections 1214.5 and 1214.8, respectively. The
Board recommended this change because USDA revised the crop year and
fiscal period during the promulgation process from what was originally
proposed by the industry. The Board wants the flexibility to change
these dates if necessary. The crop year and fiscal period would be
revised by adding language to allow the Board to change the crop year
or fiscal period administratively through Board action.
Regarding the economic impact of this proposed rule on affected
entities, this action would impose no costs on producers and importers
who pay their assessments on time. It would merely provide an incentive
for entities to remit their assessments in a timely manner. For all
entities who are delinquent in paying assessments, both large and
small, the charges will be applied uniformly. As for the impact on the
industry as a whole, this action would help facilitate program
administration by providing an incentive for entities to remit their
assessments in a timely manner, with the intent of creating a fair and
equitable process among all assessed entities.
Additionally, as previously mentioned, the Order provides for an
exemption for entities that produce or import less than 500 Christmas
trees. Regarding alternatives, one option to the proposed action would
be to maintain the status quo and not prescribe late payment and
interest charges for past due assessments. However, the Board
determined that implementing such charges would help facilitate program
administration by encouraging entities to pay their assessments in a
timely manner. The Board reviewed rates of late payment and interest
charges prescribed in other research and promotion programs and
concluded that the late payment charge and the interest charge
contained in this proposal would be appropriate.
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
Chapter 35), the information collection and recordkeeping requirements
that are imposed by the Order have been approved under OMB control
number 0581-0093. This rulemaking would not result in a change to the
information collection and recordkeeping requirements previously
approved and will impose no additional reporting and recordkeeping
burden on domestic producers and importers of Christmas trees.
As with all Federal promotion programs, reports and forms are
periodically reviewed to reduce information requirements and
duplication by industry and public sector agencies. Finally, USDA has
not identified any relevant Federal rules that duplicate, overlap, or
conflict with this proposed rule.
AMS is committed to complying with the E-Government Act, to promote
the use of the Internet and other information technologies to provide
increased opportunities for citizen access to Government information
and services, and for other purposes.
Regarding outreach efforts, the Board met on July 17, 2015, and
unanimously recommended these proposed changes to the Order. All of the
Board's meetings, including meetings held via teleconference, are open
to the public and interested persons are invited to participate and
express their views.
We have performed this initial RFA regarding the impact of this
action on small entities and we invite comments concerning potential
effects of this action on small businesses.
While this proposed rule set forth below has not received the
approval of USDA, it has been determined that it is consistent with and
would effectuate the purposes of the 1996 Act.
A 15-day comment period is provided to allow interested persons to
respond to this proposal. Fifteen days is deemed appropriate because
the first collection of assessments under the Order, on the 2015
harvest, is underway and assessments were due on February 15, 2016. The
Board would like to implement this incentive as soon as possible to
facilitate the initial collection of assessments. All written comments
received in response to this proposed rule by the date specified will
be considered prior to finalizing this action.
List of Subjects in 7 CFR Part 1214
Administrative practice and procedure, Advertising, Consumer
information, Christmas trees, Marketing agreements, Reporting and
recordkeeping requirements.
For the reasons set forth in the preamble, 7 CFR part 1214 is
proposed to be amended as follows:
PART 1214--CHRISTMAS TREE PROMOTION, RESEARCH, AND INFORMATION
ORDER
0
1. The authority citation for 7 CFR part 1214 continues to read as
follows:
Authority: 7 U.S.C. 7411-7425; 7 U.S.C. 7401.
0
2. Section 1214.5 is revised to read as follows:
Sec. 1214.5 Crop year.
Crop year means the period August 1 through July 31 or such other
period approved by the Secretary.
0
3. Section 1214.8 is revised to read as follows:
[[Page 10533]]
Sec. 1214.8 Fiscal period.
Fiscal period means the period August 1 through July 31 or such
other period as approved by the Secretary.
0
4. Subpart C--Rules and Regulations is added to read as follows:
Subpart C--Provisions Implementing the Christmas Tree Promotion,
Research, and Information Order
Sec. 1214.520 Late payment and interest charges for past due
assessments.
(1) A late payment charge shall be imposed on any producer or
importer who fails to make timely remittance to the Board of the total
assessments for which such producer or importer is liable. The late
payment charge will be imposed on any assessments not received within
30 calendar days of the date they are due. This one-time late payment
charge shall be $250 and would be increased to $500 after 90 days of
delinquency.
(2) In addition to the late payment charge, 1.5 percent per month
interest on the outstanding balance, including any late payment charge
and accrued interest, will be added to any accounts for which payment
has not been received by the Board within 30 calendar days after the
date the assessments are due. Such interest will continue to accrue
monthly until the outstanding balance is paid to the Board.
Dated: February 25, 2016.
Elanor Starmer,
Acting Administrator.
[FR Doc. 2016-04469 Filed 2-29-16; 8:45 am]
BILLING CODE 3410-02-P
