Soybean Promotion, Research, and Consumer Information; Beef Promotion and Research; Amendments To Allow Redirection of State Assessments to the National Program, 20765-20771 [2019-09700]

Agencies

• Agricultural Marketing Service
• DEPARTMENT OF AGRICULTURE

[Federal Register Volume 84, Number 92 (Monday, May 13, 2019)]
[Rules and Regulations]
[Pages 20765-20771]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-09700]



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Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
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under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 

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Federal Register / Vol. 84, No. 92 / Monday, May 13, 2019 / Rules and 
Regulations

[[Page 20765]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 1220 and 1260

[No. AMS-LPS-13-0083]
RIN 0581-AD49


Soybean Promotion, Research, and Consumer Information; Beef 
Promotion and Research; Amendments To Allow Redirection of State 
Assessments to the National Program

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule; technical amendments.

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SUMMARY: This final rule amends the Soybean Promotion, Research, and 
Consumer Information Order (Soybean Order) and the Beef Promotion and 
Research Order (Beef Order) to add provisions allowing producers 
subject to these Orders to request, under certain circumstances, that 
their assessments paid to a State board or council authorized under 
their respective statutes, be redirected to the national program. The 
final rule also makes technical amendments to the Beef Order.

DATES: The final rule is effective June 12, 2019.

FOR FURTHER INFORMATION CONTACT: Kenneth Payne, Research and Promotion 
Division, at (202) 720-1118, fax (202) 720-1125, or by email at 
[email protected].

SUPPLEMENTARY INFORMATION: 

Executive Orders 12866 and 13771

    This rulemaking does not meet the definition of a significant 
regulatory action contained in section 3(f) of Executive Order 12866 
and is not subject to review by the Office of Management and Budget 
(OMB). Additionally, because this rule does not meet the definition of 
a significant regulatory action it does not trigger the requirements 
contained in Executive Order 13771. See OMB's Memorandum titled 
``Interim Guidance Implementing Section 2 of the Executive Order of 
January 30, 2017, titled `Reducing Regulation and Controlling 
Regulatory Costs' '' (February 2, 2017).

Executive Order 12988

    This final rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. It is not intended to have retroactive effect.

Executive Order 13175

    AMS has assessed the impact of this final rule on Indian tribes and 
determined that this rule will not, to our knowledge, have tribal 
implications that require tribal consultation under Executive Order 
13175. If a Tribe requests consultation, AMS will work with the 
Department of Agriculture's (USDA) Office of Tribal Relations to ensure 
meaningful consultation is provided where changes, additions, and 
modifications are identified in this final rule.

Background Summary and Final Action Taken

Soybean Order

    The Soybean Promotion, Research, and Consumer Information Act 
(Soybean Act) (7 U.S.C. 6301-6311) provides that administrative 
proceedings must be exhausted before parties may file suit in court. 
Under section 1971 of the Soybean Act, a person subject to the Soybean 
Order may file a petition with USDA stating that the Soybean Order, any 
provision of the Soybean Order, or any obligation imposed in connection 
with the Soybean Order, is not in accordance with the law and request a 
modification of the Soybean Order or an exemption from the Soybean 
Order. The petitioner is afforded the opportunity for a hearing on the 
petition. After a hearing, USDA would rule on the petition. The Soybean 
Act provides that district courts of the United States in any district 
in which such person is an inhabitant, or has their principal place of 
business, has jurisdiction to review USDA's ruling on the petition, if 
a complaint for this purpose is filed within 20 days after the date of 
the entry of the ruling.
    Further, section 1974 of the Soybean Act provides, with certain 
exceptions, that nothing in the Soybean Act may be construed to preempt 
or supersede any other program relating to soybean promotion, research, 
consumer information, or industry information organized under the laws 
of the United States or any State. One exception in the Soybean Act 
concerns assessments collected by Qualified State Soybean Boards 
(QSSBs). The exception provides that to ensure adequate funding of the 
operations of QSSBs under the Soybean Act, no State law or regulation 
may limit or have the effect of limiting the full amount of assessments 
that a QSSB in that State may collect, and which is authorized to be 
credited under the Soybean Act. Another exception concerns certain 
referenda conducted during specified periods by a State relating to the 
continuation of a QSSB or State soybean assessment.

Beef Order

    Section 11 of the Beef Research and Promotion Act of 1985 (Beef 
Act) (7 U.S.C. 2901-2911) provides that nothing in the Beef Act may be 
construed to preempt or supersede any other program relating to beef 
promotion organized and operated under the laws of the United States or 
any State. There are no administrative proceedings that must be 
exhausted prior to any judicial challenge to the provisions of this 
rule.

Soybean Order Amendments

    The Soybean Act and the Soybean Order issued thereunder authorize 
the collection of an assessment from soybean producers of one-half of 
one percent (0.5 percent) of the net market value of soybeans, 
processed soybeans, or soybean products. In most cases, these 
assessments are collected by QSSBs that retain up to half of the 
assessments as authorized by the Soybean Act. The QSSBs as defined 
under Section 1967(14) of the Soybean Act will forward the remainder to 
the United Soybean Board (Soybean Board), which administers the 
national soybean checkoff program.
    The original Soybean Order, which became effective July 9, 1991, 
mandated that all producers marketing soybeans pay an assessment of 
one-half of one percent (0.5 percent) of the net market price of the 
market price of soybeans sold. The original Soybean Order contained a 
provision in Sec.  1220.228(b)(5)(i), which required QSSBs that were 
authorized or required

[[Page 20766]]

to pay refunds to producers to certify to the Soybean Board that they 
would honor any request from a producer for a refund from the QSSB by 
forwarding to the Soybean Board those contributions for which the 
producer received a credit, pursuant to Sec.  1220.223(a)(3). In other 
words, this section implicitly authorized refunds by the QSSB if State 
law allowed or required the QSSB to pay refunds; it further directed 
that the producer receive a credit for those refunds, with the amount 
sent to the Soybean Board.
    In late 1995, 7 CFR 1220.228(b)(5)(i) was removed as part of a 
referendum process and rulemaking to eliminate obsolete regulatory 
language. However, the rulemaking inadvertently removed language that 
should have been retained regarding a producer's ability to redirect 
funds to the national program should they choose to do so. While this 
provision was removed from the order, QSSBs were still required to 
comply with the terms of their certification as a QSSB and, therefore, 
continued to allow for redirection of funds at the producer's request.
    In States where payments to a QSSB are not required by State law, 
the opportunity for producers to choose, on a monthly basis, to direct 
the full federal assessment to the Soybean Board is already AMS' 
current policy and required under a QSSB's certification; this rule is 
intended to formalize the policy. Therefore, AMS is adding provisions 
that remedy the removal of the original refund language. A new 
provision is added to the Soybean Order to (i) require producers in 
States where refunds are authorized to forward that refund to the 
Soybean Board and (ii) provide an opportunity for a refund if the QSSB 
is not authorized by State statute but is organized and operating 
within a State and is certified by the Soybean Board, as provided by 
Sec.  1220.228(a)(2). To avail themselves of this option, producers 
need to submit to their QSSB a form (QSSB-1) postmarked by the 30th day 
of the month following the month the soybeans were sold. Assessments 
will not be able to be retroactively redirected from the QSSB to the 
Soybean Board. Likewise, AMS will require that the QSSB must respond by 
the last day of the month following the month in which the OMB-approved 
QSSB-1 form was received.
    Regardless of a State's requirements or refunding provisions, a 
producer is required by the Soybean Act to pay an assessment of one-
half of one percent (0.5 percent) of the net market value of soybeans, 
processed soybeans, or soybean products. Several States have additional 
producer assessments, mandated by State statutes, that are collected in 
addition to the assessment required by the Soybean Act. If a QSSB 
offers a producer refund under a State statute, the QSSB can only 
refund to the producer any State assessment collected in excess of the 
assessment that the producer is required to pay under the Soybean Act. 
AMS will allow the portion of the assessment compelled by the Soybean 
Act that the QSSB would normally keep to be redirected to the national 
program by the producer if State law allows.
    Examples:
     Example 1--States with no State Law: A soybean producer in 
California pays an assessment for a soybean sale. The assessment is 
collected by a certified Western Region Soybean Board, which keeps 50% 
and forwards the remaining 50% to the Soybean Board. California has no 
State law requiring a California assessment, so the California producer 
may request that the 50% of the assessment amount retained by the 
Western Region Soybean Board be redirected to the Soybean Board.
     Example 2--States with a State Law that Authorizes 
Refunds: A soybean producer in Iowa pays an assessment for a soybean 
sale. The assessment is collected by Iowa Soybean Promotion Board, 
which keeps 50% and forwards the remaining 50% to the Soybean Board. 
Iowa has a State law with a refund provision, so the Iowa producer may 
request that the 50% of the assessment amount retained by the Iowa 
Soybean Promotion Board be redirected to the Soybean Board.
     Example 3--States with a State Law that Does Not Authorize 
Refunds: A soybean producer in Virginia pays an assessment for a 
soybean sale. The assessment is collected by the Virginia Soybean Board 
which keeps 50% and forwards the remaining 50% to the Soybean Board. 
Virginia has a State law with no refund provision, so the Virginia 
soybean producer may not request that the 50% of the assessment amount 
retained by the Virginia Soybean Board be redirected to the Soybean 
Board.

Beef Order Amendments

    Similarly, the Beef Promotion and Research Act of 1985 (Beef Act) 
and the Beef Promotion and Research Order (Beef Order) issued 
thereunder authorize the collection of an assessment from cattle 
producers of $1.00 per head of cattle sold. In most cases, these 
assessments are collected by Qualified State Beef Councils (QSBCs) that 
retain up to one-half of the assessments, as authorized by the Beef 
Act.\1\ The QSBCs, as defined under Section 3(14) of the Beef Act, are 
required to forward the remainder to the Cattlemen's Beef Promotion and 
Research Board (Beef Board), which administers the national beef 
checkoff program.\2\
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    \1\ The Montana Beef Council is currently required by court 
order to obtain prior affirmative consent from producers before 
retaining any portion of the federal assessment.
    \2\ Section 3(14) of the Beef Act states that ``the term 
``qualified State beef council'' means a beef promotion entity that 
is authorized by State statute or is organized and operating within 
a State, that receives voluntary contributions and conducts beef 
promotion, research, and consumer information programs, and that is 
recognized by the Board as the beef promotion entity within such 
State.'' 7 U.S.C. 2902(14). Likewise, 7 CFR 1260.115 of the Beef 
Order states ``Qualified State beef council means a beef promotion 
entity that is authorized by State statute or a beef promotion 
entity organized and operating within a State that receives 
voluntary assessments or contributions; conducts beef promotion, 
research, and consumer and industry information programs; and that 
is certified by the Board pursuant to this subpart as the beef 
promotion entity in such State.''
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    The original Beef Order, which became effective July 18, 1986, 
mandated that all producers owning and marketing cattle pay an 
assessment of $1.00 per head of cattle, to be collected each time 
cattle are sold. The original Beef Order contained a provision in Sec.  
1260.181(b)(5), which required QSBCs that were authorized or required 
by State law to pay refunds to producers to certify to the Beef Board 
that they would honor any request from a producer for a refund from the 
QSBC by forwarding to the Beef Board those contributions for which the 
producer received a credit, pursuant to Sec.  1260.172(a)(3). In other 
words, this section authorized refunds by the QSBC if State law allowed 
or required the QSBC to pay refunds; it further directed that the 
producer receive a credit for those refunds, with the amount redirected 
to the Beef Board.
    In late 1995, 7 CFR 1260.181(b)(5) was removed as part of 
rulemaking to eliminate obsolete regulatory language. However, the 
rulemaking inadvertently removed language that should have been 
retained regarding a producer's ability to redirect funds to the 
national program should they choose to do so. While this provision was 
removed from the order, QSBCs were still required to comply with the 
terms of their certification as a QSBC and, therefore, continued to 
allow for redirection of funds at the producer's request. Therefore, 
AMS is adding provisions to remedy the removal of the original language 
in Sec.  1260.181.
    Furthermore, while the Beef Act and Beef Order authorize QSBCs to 
retain up to 50 cents per head of cattle assessed, neither the Beef Act 
nor the Beef Order

[[Page 20767]]

require producers to contribute a portion of the $1.00-per-head 
assessment to a QSBC. Thus, unless a State statute requires the 
collection of the $1.00-per-head assessment set forth in the Beef Act 
(the federal assessment) or requires producers to contribute a portion 
of the $1.00-per-head federal assessment to the State beef council, 
producers are able to choose whether or not to contribute up to 50 
cents per head of the federal assessment to their QSBC. While the 
original Beef Order did not address the specific situation that allows 
producers to choose whether or not to contribute up to 50 cents per 
head of the federal assessment to a QSBC, AMS is addressing this in the 
new language. A new provision is being added to the Beef Order to (i) 
require QSBCs in States where refunds to producers of the $1.00-per-
head assessment collected per the Beef Act and Order are authorized by 
State statute to forward that refund to the Beef Board, and (ii) 
provide an opportunity for producers to choose to direct the full 
$1.00-per-head federal assessment to the Beef Board in States where 
State law does not require the collection of the $1.00-per-head 
assessment set forth in the Beef Act (the federal assessment) or in 
States where State statutes do not require producers to contribute a 
portion of the $1.00-per head federal assessment to the State beef 
council.
    In States where payments to a QSBC are not required by State law, 
the opportunity for producers to choose, on a monthly basis, to direct 
the full $1.00-per-head federal assessment to the Beef Board is already 
AMS' current policy; this rule is intended to formalize the policy. The 
Beef Board also conveyed this policy in its July 26, 2018, memo 
``Obligation to Redirect Assessments Upon Producer Request if Not 
Precluded by State Law.\3\ As QSBCs are responsible for collecting 
assessments on cattle sold in or originating in their State (Sec. Sec.  
1260.172(a)(5) and 1260.181(b)(3)), producers who are allowed refunds 
under State statutes and choose to redirect the full $1.00-per-head 
assessment to the Beef Board must submit to the QSBC a written request 
on an approved request form (QSBC-1).
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    \3\ https://www.beefboard.org/library/files/redirection-memo-072916.pdf.
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    QSBCs generally describe the requirements and process for refunds 
in their Application for Certification that is reviewed and approved by 
the Beef Board. As part of their certification requirements, QSBCs must 
certify that any requests from producers for refunds will be honored by 
forwarding such request to the Beef Board if allowed by state law. In 
practice, QSBCs follow similar operating procedures for collecting the 
$1.00-per-head assessment across collection points (e.g., markets, 
dealers, brokers) and are required to reconcile transactions on a 
monthly basis.\4\ To align with their monthly reconciliation and budget 
planning, QSBCs provide for a monthly process through which producers 
can, if allowed by state law, redirect their assessments to the Beef 
Board. To avail themselves of this option, producers must submit a 
QSBC-1 form that is postmarked by the 15th day of the month following 
the month the cattle were sold. Assessments cannot be retroactively 
redirected from the QSBC to the Beef Board, and QSBCs will be required 
to respond to such requests within 60 days.\5\
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    \4\ Cattlemen's Beef Board January 26, 2018, Guidelines for 
Qualified State Beef Councils.
    \5\ Montana Beef Council (MBC) presently operates differently 
and is therefore an exception to this process. Under a Preliminary 
Injunction in R-CALF v. Sonny Perdue, MBC is required to obtain 
affirmative consent from producers before retaining any portion of 
the federal assessment. As a result, MBC collects and sends all 
assessments to the Beef Board unless producers request, currently on 
an annual basis, that $0.50 of the $1.00-per-head assessment be 
provided back to MBC.
---------------------------------------------------------------------------

    Regardless of a State's requirements or refunding provisions, a 
producer is required by the Beef Act to pay an assessment of $1.00 on 
each head of cattle sold. Several States have additional producer 
assessments, mandated by State statutes, which are collected in 
addition to the $1.00-per-head assessment required by the Beef Act. If 
a QSBC offers a producer refund under a State statute, the QSBC can 
only refund to the producer any State assessment collected in addition 
to the $1.00-per-head assessment that the producer is required to pay 
under the Beef Act. This final rule provides that the portion of the 
$1.00-per-head federal assessment that the QSBC would normally keep 
under Sec.  1260.181(b)(4) can be redirected to the national program by 
the producer if State law allows.
    Examples:
     Example 1--States with no State Law: A producer in Kansas 
pays the $1.00 federal assessment for a cattle sale. The Kansas Beef 
Council collects $1.00, keeps $0.50, and forwards $0.50 to the Beef 
Board. Since there is no Kansas law compelling producers to contribute 
to the Kansas Beef Council, the producer may request that the $0.50 of 
the original $1.00 assessment be redirected to the Beef Board. This 
example is depicted in Figure 1.
[GRAPHIC] [TIFF OMITTED] TR13MY19.019

     Example 2--States with a State Law that Authorizes 
Refunds: A producer in Colorado pays $1.00 in assessments for a cattle 
sale. The Colorado Beef Council collects $1.00, keeps $0.50, and 
forwards $0.50 to the Beef Board. Colorado State law requires an 
assessment but allows a refund. The producer may request that the $0.50

[[Page 20768]]

cents of the original $1.00 assessment be redirected to the Beef Board. 
This example is depicted in Figure 2.
[GRAPHIC] [TIFF OMITTED] TR13MY19.020

    Based on current understanding, AMS believes that most states fall 
within one of these two examples--either they have no state law 
compelling them to contribute to a QSBC or they have a state law that 
provides for refunds. In either case, a producer in these states can 
request that the $0.50 of the original $1.00 assessment be redirected 
to the Beef Board.
     Example 3--States with a State Law that Does Not Authorize 
Refunds: A producer in Arizona pays $1.00 in assessments for a cattle 
sale. The Arizona Beef Council collects $1.00, keeps $0.50, and 
forwards $0.50 to the Beef Board. Arizona law compels the collection of 
the $1.00-per-head assessment and does not provide for a refund. The 
producer may not request the Arizona Beef Council to redirect any 
portion of the $0.50 to the Beef Board. This example is depicted in 
Figure 3.
[GRAPHIC] [TIFF OMITTED] TR13MY19.021

    Based on our current understanding of state laws, AMS believes that 
a few states fall under this example including Arizona, California, 
Georgia, Louisiana, Michigan, Oregon, Washington, and Wyoming. Because 
there is a state law in place that mandates assessments without 
allowing for a refund, producers in these states may not request that 
the $0.50 of the original $1.00 assessment be redirected to the Beef 
Board. In general, AMS recommends stakeholders fully consult state laws 
as these examples are used for illustrative purposes and are subject to 
change.

Regulatory Flexibility Act

    Pursuant to the requirements set forth in the Regulatory 
Flexibility Act (RFA) (5 U.S.C. 601-612), the Administrator of the AMS 
has considered the economic effect of this action on small entities and 
has determined that this final rule will not have a significant 
economic impact on a substantial number of small entities. The purpose 
of RFA is to fit regulatory actions to the scale of businesses subject 
to such actions in order that small businesses will not be unduly 
burdened.

Soybean Industry

    USDA's Farm Service Agency estimates that there are 569,998 soybean 
producers subject to the Soybean Order. This estimate comes from 
including all soybean producers engaged in the production of soybeans 
in the previous 2 years. The majority of producers subject to the 
Soybean Order are small businesses under the criteria established by 
the Small Business Administration (SBA) (13 CFR 121.201). SBA defines 
small agricultural producers as those having annual receipts of less 
than $750,000.
    This final rule imposes no new burden on the soybean industry. This 
action clarifies that soybean producers, under certain circumstances, 
have the option to request that their assessments paid to a State board 
be directed to the national program. This action is not expected to 
change how producers or QSSBs operate with respect to directing funds 
when appropriate to the national program.
    In the July 15, 2016 proposed rule, AMS provided a chart with 
estimates by

[[Page 20769]]

state for the potential amount that could be redirected to the national 
program (81 FR 45987). The estimates varied depending on whether 
redirection was possible and the degree to which state law affected 
refund amounts. AMS received comments indicating that the chart was 
difficult to follow and, in some cases, inaccurate. As a result, AMS is 
generalizing its estimate of potential financial impacts to range 
between $0 (for those states in which redirection is not possible) to 
up to $14 million (for high producing soybean states in which 
redirection is possible). However, given that this action is not 
expected to change how and whether producers choose to exercise the 
refund provisions in states where redirection of funds is possible, AMS 
does not anticipate a significant increase in producer requests that 
would impact the amount of assessments retained by a given state.
    The information collection requirements on QSSBs are minimal. QSSBs 
are already required to remit assessments to the national programs. We 
have not identified any relevant Federal rules that duplicate, overlap, 
or conflict with this rule.
    Accordingly, AMS has determined that this final rule will not have 
a significant economic impact on a substantial number of small soybean 
entities.

Beef Industry

    In the February 2013, publication of ``Farms, Land in Farms, and 
Livestock Operations,'' USDA's National Agricultural Statistics Service 
(NASS) estimated that the number of operations in the United States 
with cattle in 2012 totaled approximately 915,000, down from 950,000 in 
2009. The majority of these operations that are subject to the Beef 
Order may be classified as small entities. According to the NASS 
website ``Farms, Land in Farms, and Livestock Operations,'' the issues 
released between 2005 and 2013 included ``Livestock Operations'' in the 
title. Beginning in 2014, livestock operations data will be available 
in the Census of Agriculture and most recent data can be referenced 
from Census data.
    This final rule imposes no new burden on the beef industry. This 
action clarifies that producers, under certain circumstances, have the 
option of requesting that their assessments paid to a State council be 
directed to the national program. This action is not expected to change 
how producers or QSBCs operate with respect to directing funds when 
appropriate to the national program.
    In the July 15, 2016, proposed rule, AMS provided a chart with 
estimates by state for the potential amount that could be redirected to 
the national program (81 FR 45988). The estimates varied depending on 
whether redirection was possible and the degree to which state law 
affected refund amounts. AMS received comments indicating that the 
chart was difficult to follow and, in some cases, inaccurate. As a 
result, AMS is generalizing its estimate of potential financial impacts 
to range between $0 (for those states in which redirection is not 
possible) to up to $4.6 million (for high producing beef states in 
which redirection is possible). However, given that this action is not 
expected to change how and whether producers choose to exercise the 
refund provisions in states where redirection of funds is possible, AMS 
does not anticipate a significant increase in producer requests that 
would impact the amount of assessments retained by a given state. 
Currently, a few States are in various stages of establishing or 
amending State laws regarding beef checkoff requirements, so this 
information may change over time.
    The information collection requirements on QSBCs are minimal. QSBCs 
are already required to remit assessments to the national programs. We 
have not identified any relevant Federal rules that duplicate, overlap, 
or conflict with this rule.
    Accordingly, AMS has determined that this final rule will not have 
a significant economic impact on a substantial number of small 
producers.

Paperwork Reduction Act

    In accordance with OMB regulations (5 CFR part 1320) that implement 
the Paperwork Reduction Act of 1995 (44 U.S.C Chapter 35 (PRA)), this 
collection has been submitted to OMB with the reference number 0581-
0246. Upon approval, the collection will be merged with OMB number 
0581-0093, ``National Research, Promotion, and Consumer Information 
Programs.'' This final rule established the use of two new forms, which 
impose a total annual burden of 2.49 hours. The Producer Redirection of 
Checkoff Assessment forms, QSBC-1 and QSSB-1, require the minimum 
information necessary to effectively allow producers in certain states 
that pay their assessments to a State board or council authorized under 
their respective statutes, to redirect the assessment to the national 
program. The information collection requirements in the request are 
essential to carry out the legislative purpose of the Beef Act and the 
Soybean Act. Under the Beef and Soybean Orders, producers are required 
to pay an assessment each time cattle or soybeans are sold. While the 
Beef and Soybean Orders impose certain recordkeeping requirements, 
information required under the Beef and Soybean Orders can be compiled 
from records currently maintained. Such records must be retained for at 
least 3 years beyond the marketing year of their applicability.
    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. As with all Federal promotion 
programs, reports and forms are periodically reviewed to reduce 
information requirements and duplication by industry and public sector 
agencies. In the proposed rule published July 15, 2016, (81 FR 45984) 
comments were invited on: (a) Whether the proposed collection of 
information is necessary for the proper performance of functions of the 
Order and USDA's oversight of the program, including whether the 
information will have practical utility; (b) the accuracy of USDA's 
estimate of the burden of the proposed collection of information, 
including the validity of the methodology and assumptions used; (c) 
ways to enhance the quality, utility, and clarity of the information to 
be collected; and (d) ways to minimize the burden of the collection of 
information on respondents including the use of appropriate automated, 
electronic, mechanical, or other technological collection techniques or 
other forms of information technology. No separate comments were 
received regarding the information collection section. However, AMS 
received a few comments that discussed the paperwork burden of the 
forms. AMS's response to those comments is discussed in the comments 
section.

Comments

    A proposed rule concerning this action was published in the Federal 
Register on July 15, 2016 (81 FR 45984). A 60-day comment period ending 
September 13, 2016, was provided for interested persons to respond to 
the proposal. AMS received 14 comments. Of the 14 comments received, 12 
commenters referenced proposed changes to the Beef Order, one commenter 
referenced proposed changes to the Soybean Order, and one commenter 
referenced both the Soybean and Beef Orders. One commenter did not 
provide comments within the timeframe provided in the proposed order. 
However, in general, this

[[Page 20770]]

commenter provided thoughts similar to those who opposed to the 
proposed rule.

Beef Order Comments

    Of the 12 comments received regarding the Beef Order, over half 
stated that they opposed the proposed rule while the others recommended 
clarification, modification, or changes to the proposed rule. The 
majority of commenters believe that assessments should go to the 
national program, unless a producer provides affirmative consent that 
their federal assessment paid to a State council to remain with the 
State program. In their view, this approach would be consistent with a 
voluntary contribution as specified in the statute. These commenters 
suggest that having to request that their assessments paid to a State 
council be directed to the national program creates a mandatory 
contribution. Some commenters argued this is unconstitutional. AMS 
disagrees. This action continues to provide producers with a choice 
about where they want their funds directed. Since the inception of the 
national program, few producers have requested redirection of their 
funds to the national program, instead choosing to keep a portion of 
the federal assessment to support and invest in local programs and 
activities. For example, over the last three years, fewer than 20 
producers or businesses have requested redirection of their funds to 
the national program. Thus, the majority of producers prefer that the 
QSBCs retain their assessments. Requiring the majority of producers to 
provide prior affirmative consent to keep their funds locally with the 
QSBCs would create an unnecessary burden to the industry as a whole.
    A few commenters recommended that the deadline to request a 
redirection be extended. However, due to the need for QSBCs to 
reconcile their financial transactions on a monthly basis, the deadline 
for a redirection request must remain as a monthly process as stated in 
the proposed rule.
    A few commenters recommended that AMS provide clarification of the 
individual State laws, clarify any conflicts with state laws, and 
modify/correct any examples provided in the rule and the tables to 
accurately reflect the governing state law. Specifically, the 
commenters requested greater clarification of the application of 
refunds in each state. AMS believes that application of State laws are 
best interpreted by the States themselves. The States, not AMS, are 
responsible for interpretation of their respective laws.
    A few commenters pointed out that some QSBC names were incorrect. 
AMS has updated the list as part of its technical amendments and is 
reflected in this final rule.
    One commenter requested that AMS clarify the terminology in the 
rule to reflect assessments of cattle producers, not ``beef'' 
producers, which, in their view, would include multinational trade 
associations and packers. That same commenter strongly disagreed with 
the assumption that only 20 operations would request a redirection. AMS 
modified terminology in the preamble accordingly and clarifies that it 
is producers as defined at Sec.  1260.116 who are subject to assessment 
per the requirements at Sec.  1260.172. Furthermore, while the 
commenter disagrees that only 20 producers or operations would request 
redirection and thus that AMS's information collection burden is too 
low, AMS has reviewed the number of redirection requests received over 
the last 3 years as the basis for its estimate. Over the last three 
years, fewer than 20 producers or businesses in total have requested 
redirection of their funds to the national program. Based on that data, 
AMS anticipates that the number of redirection requests will be similar 
to past years. Therefore, we do not believe the burden estimate is too 
low.
    One commenter recommended several rule text changes. First, the 
commenter recommended changes to proposed rule Sec.  1260.181(b)(5) to 
correct a perceived syntax error. The commenter recommended adding two 
new subsections to correct. Additionally, the commenter recommended a 
change to Sec.  1260.312(c) to provide clarity and consistency with 
Sec.  1260.181(b)(4). AMS reviewed the comments and believes they have 
merit. Consequently, these technical amendments are reflected in this 
final rule.

Soybean Order Comments

    AMS received two comments respecting the Soybean Order. Both 
commenters recommended a rule text change to clarify that the proposed 
rule applies to QSSBs subject to both Sec.  1220.228(a)(1) and (2) of 
the Soybean Promotion, Research, and Consumer Information Order. Both 
commenters also raised concerns with how the state refund rules applied 
to QSSBs. With respect to the commenters' recommended new amendatory 
language, AMS is unclear on section cross references and believes the 
suggested changes include an error. Rather than adopt the commenters 
suggested changes as they proposed, we have made modifications to the 
amendatory text by adding a new Sec.  1220.228(e) to reflect that this 
rule applies to all QSSBs (i.e., those entities that elect to serve due 
to their state authorization under Sec.  1220.228(a)(1) and those 
entities that apply for certification under Sec.  1220.228(a)(2)). AMS 
also moved the proposed text about producers receiving a refund and 
their obligations to remit this refund to the Board to the appropriate 
Assessments section at Sec.  1220.223(a)(3). Further, as stated above, 
states are responsible for interpreting their laws, and AMS advises 
stakeholders to carefully review the state refund laws applicable to 
their state.
    Accordingly, no changes will be made to the rule as proposed other 
than the tables and other technical amendments.

Beef Technical Amendments

    In addition, several technical amendments are made to update 
information in the Beef Promotion and Research Order and rules and 
regulations:
    Section 1260.181(b)(4) currently requires QSBCs to remit 
assessments to the Beef Board by the last day of the month in which the 
QSBC received the assessment ``unless the Board determines a different 
date.'' The Beef Board's practice has been to require QSBCs to remit 
assessments by the 15th day of the following month. This section will 
be updated to reflect actual practice.
    Section 1260.315 is amended to reflect the current listing of 
QSBCs.

List of Subjects

7 CFR Part 1220

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

7 CFR Part 1260

    Administrative practice and procedure, Advertising, Agricultural 
research, Imports, Marketing agreement, Meat and meat products, 
Reporting and recordkeeping requirements.

    For reasons set forth in the preamble, 7 CFR parts 1220 and 1260 
are amended as follows:

PART 1220--SOYBEAN PROMOTION, RESEARCH, AND CONSUMER INFORMATION

0
1. The authority citation for part 1220 continues to read as follows:

    Authority:  7 U.S.C. 6301-6311 and 7 U.S.C. 7401.


[[Page 20771]]



0
2. In Sec.  1220.223, revise paragraph (a)(3) to read as follows:


Sec.  1220.223  Assessments.

    (a) * * *
    (3) In determining the assessment due from each producer under 
paragraph (a)(1) or (2) of this section, a producer who is contributing 
to a Qualified State Soybean Board shall receive a credit from the 
Board for contributions to such Qualified State Soybean Board on any 
soybeans assessed under this section in an amount not to exceed one-
quarter of one percent of the net market price of the soybeans 
assessed. Producers receiving a refund from a State entity are required 
to remit that refunded portion to the Board in the manner and form 
required by the Secretary.
* * * * *

0
3. In Sec.  1220.228, add paragraph (e) to read as follows:


Sec.  1220.228  Qualified State Soybean Boards.

* * * * *
    (e) Entities authorized or required to pay refunds to producers 
must certify to the Board that any requests from producers for such 
refunds for contributions to it by the producer will be honored by 
forwarding to the Board that portion of such refunds equal to the 
amount of credit received by the producer for contributions pursuant to 
Sec.  1220.223(a)(3). Entities not authorized by State statute but 
organized and operating within a State and certified by the Board 
pursuant to paragraph (a)(2) of this section must provide producers an 
opportunity for a State refund and must forward that refunded portion 
to the Board.

PART 1260--BEEF PROMOTION AND RESEARCH

0
4. The authority citation for part 1260 continues to read as follows:

    Authority: 7 U.S.C. 2901-2911 and 7 U.S.C. 7401.


0
5. In Sec.  1260.172, add paragraph (a)(7) to read as follows:


Sec.  1260.172  Assessments.

    (a) * * *
    (7) A producer may request a redirection of assessments from a 
Qualified State Beef Council to the Board in accordance with Sec.  
1260.181(b)(8) or (9) by submitting a redirection request on the 
appropriate form postmarked by the 15th day of the month following the 
month in which the cattle were sold. Requests may not be retroactive. 
Requests to redirect assessments must be submitted by the producers who 
paid the assessments.
* * * * *

0
6. In Sec.  1260.181, revise the section heading and paragraph (b)(4) 
and add paragraphs (b)(8) and (9) to read as follows:


Sec.  1260.181  Qualified State Beef Councils.

* * * * *
    (b) * * *
    (4) Certify to the Board that such organization shall remit to the 
Board assessments paid and remitted to the council, minus authorized 
credits issued to producers pursuant to Sec.  1260.172(a)(3), by the 
15th day of the month following the month in which the assessment was 
remitted to the Qualified State Beef Council unless the Board 
determines a different date for remittance of assessments.
* * * * *
    (8) Certify to the Board, if the Council is authorized or permitted 
to pay refunds of contributions to the Council, that any requests from 
producers for such refunds by the producers will be honored by 
redirecting to the Board that portion of such refunds equal to the 
amount of credit received by the producer for contributions pursuant to 
Sec.  1260.172(a)(3).
    (9) Certify to the Board that, if the Council is in a State in 
which State law does not require collection of the $1-per-head 
assessment set forth in the Act (the federal assessment) by the 
Council, or if the Council is in a State in which State statutes do not 
require producers to contribute a portion of the $1-per-head federal 
assessment to the Council, the Council will provide an opportunity for 
producers to choose to direct the full $1-per-head federal assessment 
to the Board.

0
7. In Sec.  1260.312, revise paragraph (c) to read as follows:


Sec.  1260.312  Remittance to the Cattlemen's Board or Qualified State 
Beef Council.

* * * * *
    (c) Remittances. The remitting person shall remit all assessments 
to the Qualified State Beef Council or its designee, or, if there is no 
Qualified State Beef Council, to the Cattlemen's Board at an address 
designated by the Board, with the report required in paragraph (a) of 
this section not later than the 15th day of the month following the 
month in which the cattle were purchased or marketed. All remittances 
sent to a Qualified State Beef Council or the Cattlemen's Board by the 
remitting persons shall be by check or money order payable to the order 
of the Qualified State Beef Council or the Cattlemen's Board. All 
remittances shall be received subject to collection and payment at par.

0
8. Revise Sec.  1260.315 to read as follows:


Sec.  1260.315  Qualified State Beef Councils.

    The following State beef promotion entities have been certified by 
the Board as Qualified State Beef Councils:
    (a) Alabama Cattlemen's Association.
    (b) Arizona Beef Council.
    (c) Arkansas Beef Council.
    (d) California Beef Council.
    (e) Colorado Beef Council Authority.
    (f) Delaware Beef Advisory Board.
    (g) Florida Beef Council, Inc.
    (h) Georgia Beef Board, Inc.
    (i) Hawaii Beef Industry Council.
    (j) Idaho Beef Council.
    (k) Illinois Beef Association, Inc.
    (l) Indiana Beef Council, Inc.
    (m) Iowa Beef Cattle Producers Association/dba/Iowa Beef Industry 
Council.
    (n) Kansas Beef Council.
    (o) Kentucky Cattlemen's Association, Inc.
    (p) Louisiana Beef Industry Council.
    (q) Maryland Beef Council.
    (r) Michigan Beef Industry Commission.
    (s) Minnesota Beef Council.
    (t) Mississippi Beef Council.
    (u) Missouri Beef Industry Council, Inc.
    (v) Montana Beef Council.
    (w) Nebraska Beef Council.
    (x) Nevada Beef Council.
    (y) New Jersey Beef Industry Council.
    (z) New Mexico Beef Council.
    (aa) New York Beef Industry Council.
    (bb) North Carolina Cattlemen's Beef Council.
    (cc) North Dakota Beef Commission.
    (dd) Ohio Beef Council.
    (ee) Oklahoma Beef Council.
    (ff) Oregon Beef Council.
    (gg) Pennsylvania Beef Council.
    (hh) South Carolina Beef Council.
    (ii) South Dakota Beef Industry Council.
    (jj) Tennessee Beef Industry Council.
    (kk) Texas Beef Council.
    (ll) Utah Beef Council.
    (mm) Vermont Beef Industry Council.
    (nn) Virginia Beef Industry Council.
    (oo) Washington State Beef Commission.
    (pp) West Virginia Beef Council, Inc.
    (qq) Wisconsin Beef Council, Inc.
    (rr) Wyoming Beef Council.

    Dated: May 7, 2019.
Bruce Summers,
Administrator, Agricultural Marketing Service.
[FR Doc. 2019-09700 Filed 5-10-19; 8:45 am]
 BILLING CODE 3410-02-P