Fresh Cut Flowers and Fresh Cut Greens Promotion and Information OrderPostponement of Payment of Assessments

DEPARTMENT OF AGRICULTURE

7 CFR Part 1208

[FV-95-702PR]

Fresh Cut Flowers and Fresh Cut Greens Promotion and Information

Order--Postponement of Payment of Assessments

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This proposed rule specifies general rules and regulations to

be established under the Fresh Cut Flowers and Fresh Cut Greens

Promotion and Information Order (Order). The Order is authorized under

the Fresh Cut Flowers and Fresh Cut Greens Promotion and Information

Act of 1993. This rule would implement a provision of the Order

concerning the postponement of the payment of assessments. This action

would create a form and establish procedures for qualified handlers to

request the postponement of the payment of up to six months of

assessments to the National PromoFlor Council. In addition, in

accordance with the Paperwork Reduction Act of 1995, this proposed rule

specifies the public reporting burden for the collection of information

for requesting a postponement of payment of assessments.

DATES: Comments must be received by January 26, 1996.

ADDRESSES: Interested persons are invited to submit written comments

concerning the proposed rule to: Research and Promotion Branch, Fruit

and Vegetable Division, Agricultural Marketing Service (AMS), USDA,

P.O. Box 96456, Room 2535-S, Washington, DC 20090-6456. Three copies of

all written material should be submitted, and they will be made

available for public inspection at the Research and Promotion Branch

during regular business hours. All comments should reference the docket

number and the date and page number of this issue of the Federal

Register. Also send comments regarding the accuracy of the burden

estimate, ways to minimize the burden, including through the use of

automated collection techniques or other forms of information

technology, or any other aspect of this collection of information, to

the above address.

FOR FURTHER INFORMATION CONTACT: Sonia N. Jimenez, Research and

Promotion Branch, Fruit and Vegetable Division, AMS, USDA, PO Box

96456, Room 2535-S, Washington, DC 20090-6456, telephone (202) 720-

9916.

SUPPLEMENTARY INFORMATION: This proposed rule is issued under the Fresh

Cut Flowers and Fresh Cut Greens Promotion and Information Act of 1993

(Pub. L. 103-190), (7 U.S.C. 6801 et seq.) hereinafter referred to as

the Act.

This proposed rule has been issued in conformance with Executive

Order 12866.

This rule has been reviewed under Executive Order 12778, Civil

Justice Reform. It is not intended to have retroactive effect. This

rule would not preempt any State or local laws, regulations, or

policies, unless they present an irreconcilable conflict with this

rule.

The Act provides that administrative proceedings must be exhausted

before parties may file suit in court. Under section 8 of the Act, a

person subject to the order may file a petition with the Secretary

stating that the order or any provision of the order, or any obligation

imposed in connection with the order, is not in accordance with law and

requesting a modification of the order or an exemption from the order.

The petitioner is afforded the opportunity for a hearing on the

petition. After such hearing, the Secretary will make a ruling on the

petition. The Act provides that the district courts of the United

States in any district in which a person who is a petitioner resides or

carries on business are vested with jurisdiction to review the

Secretary's ruling on the petition, if a complaint for that purpose is

filed within 20 days after the date of the entry of the ruling.

Regulatory Flexibility Act

Pursuant to requirements set forth in the Regulatory Flexibility

Act (RFA), the Administrator of AMS has considered the economic impact

of this proposed action on small entities.

The purpose of the RFA is to fit regulatory actions to the scale of

business subject to such actions in order that small businesses will

not be unduly or disproportionately burdened.

Only those wholesale handlers, retail distribution centers,

producers, and importers who have annual sales of $750,000 or more of

cut flowers and greens and who sell those products to exempt handlers,

retailers, or consumers are considered qualified handlers and assessed

under the Order. There are approximately 900 wholesaler handlers, 150

importers, and 200 domestic producers who are qualified handlers.

The majority of these qualified handlers would be classified as

small businesses. Small agricultural service firms have been defined by

the Small Business Administration (13 CFR 121.601) as those having

annual receipts of less than $5 million. Statistics reported by the

National Agricultural Statistics Service show that 1994 sales at

wholesale of domestic cut flowers and greens total approximately $559.6

million while the value of imports during 1994 was approximately $382

million. The leading States in the United States producing cut flowers

and greens, by wholesale value, are California, which produces

approximately 59 percent of the domestic crop, followed by Florida,

Colorado, and Hawaii. Major countries exporting cut flowers and greens

into the United States, by value, are Columbia, which accounts for

approximately 60 percent, followed by The Netherlands, Mexico, and

Costa Rica.

The Administrator of the AMS has determined that this rule would

not have a significant economic impact on a substantial number of small

entities.

Paperwork Reduction Act

While this proposed rule would impose certain recordkeeping

requirements on qualified handlers that request a postponement of the

payment of assessments, most of the information required under the

proposed rule could be compiled from records currently maintained.

Thus, any added burden resulting from increased recordkeeping would not

be significant when compared to the benefits that should accrue to such

businesses.

In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.

Chapter 35), a form to request the postponement of the payment,

``Application for Postponement of Payment of PromoFlor Assessment'',

has been submitted to OMB for approval.

Estimate of Burden: Public reporting burden for this collection of

information is estimated to average .25 hours per response for each

qualified handler requesting a postponement of payment of assessment.

[[Page 58254]]

Respondents: Qualified handlers as defined in the Act.

Estimated Number of Respondents: 5.

Estimated Number of Responses per Respondent: 1.

Estimated Total Annual Burden on Respondents: 1.25 hours.

Copies of this information collection can be obtained from Sonia N.

Jimenez at (202) 720-9916 or at the address listed above.

Background

The Act authorizes the Secretary of Agriculture (Secretary) to

establish a national cut flowers and greens promotion and consumer

information program. The program is funded by an assessment of \1/2\

percent of gross sales of cut flowers and greens which is levied on

qualified handlers.

This proposed rule would provide rules and regulations needed to

implement provisions of the Order. Section 1208.55 of the Order

provides for postponement of collections (7 CFR 108.55; 59 FR 67139).

That section provides that the Council may grant a postponement of the

payment of an assessment for any qualified handler that establishes

that it is financially unable to make the payment.

Section 1208.100 of this rule would provide that the definitions

for this subpart are the same as those prescribed in Secs. 1208.1

through 1208.24 of the Order.

Section 1208.150 would provide for the postponement of the payment

of assessments under certain circumstances. The Order provides for the

postponement of the payment of assessments by a qualified handler if

the payment of such assessment is determined to be a financial burden

for the handler. Section 1208.55 of the Order states that ``The Council

may grant a postponement of an assessment under this subpart for any

qualified handler that establishes that it is financially unable to

make the payment * * * '' In addition, the Order establishes that the

Council shall develop forms and procedures for a qualified handler to

request and for the Council to grant the postponement of the payment of

assessments.

The Council met on September 11, 1995, and determined that, in

order for a request for the postponement of assessments to be granted,

the requester should comply with the following: (1) Submit a written

opinion from a Certified Public Accountant stating that the handler

making the request is insolvent or will be unable to continue to

operate if the handler is required to pay the assessment when due and

(2) submit copies of the last three years' federal tax returns. These

two requirements are needed to verify that the qualified handler is

financially unable to make the payment of the assessments due and that

the postponement of payment, if granted, complies with the requirements

set forth in the Order. In addition, the requester should submit to the

Council a form ``Application for Postponement of Payment of PromoFlor

Assessments.'' This collection of information would be authorized under

OMB number 0581-0093 and would have an expiration date of January 31,

1997.

The period for which the postponement of the payment of the

assessments is requested may not exceed six (6) months. Within that

period of six (6) months, the qualified handler would be exempt from

paying assessments beginning with the month for which the request for

postponement is filed with the Council and for no more than six (6)

months. The handler must provide a reason for the request as well as

detailed information concerning the handler's name, address, telephone

and fax numbers, the month(s) for which the request is made, the

percent of the outstanding debt to be paid by month after the

postponement of payment is granted, and the starting date for the

payment. Furthermore, an authorized individual must sign and return the

form to the Council's office.

Any late payment would make the agreement null and all assessments

due would need to be paid in their entirety at that time. In addition,

the Council agrees to forgo any late fee charges and interest for the

duration of the agreement.

The request must be made no later than 30 days after the

assessments were due. In addition, after the postponement period has

concluded, the requester must pay the percentage of the outstanding

debt agreed to be paid by month and the assessments due for the current

month. Assessments due after the postponement of payment is completed

would not be postponed unless an extension of time for payment is

granted. If an extension of time is requested, new documentation must

be provided for the Council to determine whether to grant the extension

of time for the postponement of the payment of assessments. The same

procedures used for the initial request must be used to grant an

extension.

A 60-day comment period is provided to allow interested persons to

respond to this proposal. All written comments timely received will be

considered before a final determination is made on this matter. All

responses regarding the information collection will be summarized and

included in the request for OMB approval.

List of Subjects in 7 CFR Part 1208

Administrative practice and procedure, Advertising, Consumer

information, Marketing agreements--Cut flowers, Cut greens, Promotion,

Reporting and recordkeeping requirements.

For the reasons set forth in the preamble, 7 CFR part 1208 is

proposed to be amended as follows:

PART 1208--FRESH CUT FLOWERS AND FRESH CUT GREENS PROMOTION AND

INFORMATION ORDER

1. The authority citation for 7 CFR Part 1208 continues to read as

follows:

Authority: 7 U.S.C. 6801 et seq.

2. In Part 1208 a new subpart B is added to read as follows:

Subpart B--Rules and Regulations

Definitions

Sec.

1208.100 Terms defined.

Assessments

1208.150 Procedures for postponement of assessments.

Subpart B--Rules and Regulations

Definitions

Sec. 1208.100 Terms defined.

Unless otherwise defined in this subpart, definitions or terms used

in this subpart shall have the same meaning as the definitions of such

terms which appear in Subpart A--Fresh Cut Flowers and Fresh Cut Greens

Promotion and Information Order.

Assessments

Sec. 1208.150 Procedures for postponement of collections.

(a) For a request for postponement of the payment of assessments to

be granted the qualified handler must comply with the following: Submit

a written opinion from a Certified Public Accountant stating that the

handler making the request is insolvent or will be unable to continue

to operate if the handler is required to pay the assessments when due

and submit copies of the last three years' federal tax returns. The

request must be in writing no later than 30 days after the assessments

for which the postponed payment is requested are due. The period for

which the postponement of the payment of assessments is requested may

not exceed six (6) months. The written request must specify:

(1) A reason for the request;

[[Page 58255]]

(2) Detailed information concerning the qualified handler's name,

address, and telephone and fax numbers;

(3) The month(s) for which the request is made;

(4) Total assessments due;

(5) The percent of the outstanding debt to be paid each month after

the postponement of payment is granted; and

(6) The starting date for the payment of assessments due.

(b) At the end of the postponement period, the qualified handler

must pay the percentage of assessments due specified per month and the

current month assessment due. If an extension of time is requested, new

documentation must be provided for the Council to determine whether to

grant the extension. The same procedures used for the initial request

will be used to grant any extension.

Dated: November 20, 1995.

Robert C. Kenny,

Director, Fruit and Vegetable Division.

[FR Doc. 95-28770 Filed 11-24-95; 8:45 am]

BILLING CODE 3410-02-P