Agreements for the Development of Foreign Markets for Agricultural Commodities

SUMMARY: The Commodity Credit Corporation (CCC) is proposing to amend

its regulations implementing the Market Promotion Program (MPP)

authorized by Section 203 of the Agricultural Trade Act of 1978, 7

U.S.C. 5623. Specifically, the proposed rule would extend the period of

time following the expiration of the marketing year during which

participants may pay for approved market development activities and

still be entitled to receive reimbursement from CCC. This period would

be extended from 30 days to 4 months. The proposed rule is part of an

effort by CCC to increase program flexibility and ease administrative

requirements on program participants.

DATES: Comments on the proposed rule should be submitted in writing to

the address below by February 9, 1996 to be assured of consideration.

FOR FURTHER INFORMATION CONTACT:

Sharon L. McClure, Director, Marketing Operations Staff, Foreign

Agricultural Service, United States Department of Agriculture, 14th and

Independence Avenue, SW., Washington, DC 20250-1042, (202) 720-5521.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

This proposed rule is issued in conformance with Executive Order

12866. Based on information compiled by the Department, it has been

determined that this proposed rule:

(1) Would have an annual effect on the economy of less than $100

million;

(2) Would not adversely affect in a material way the economy, a

sector of the economy, productivity, competition, jobs, the

environment, public health or safety, or State, local, or tribal

governments or communities;

(3) Would not create a serious inconsistency or otherwise interfere

with an action taken or planned by another agency;

(4) Would not alter the budgetary impact of entitlements, grants,

user fees, or loan programs or rights and obligations of recipients

thereof; and

(5) Would not raise novel legal or policy issues arising out of

legal mandates, the President's priorities, or principles set forth in

Executive Order 12866.

The Department of Agriculture is committed to carrying out its

statutory and regulatory mandates in a manner that best serves the

public interest. Therefore, where legal discretion permits, the

Department actively seeks to promulgate regulations that promote

economic growth, create jobs, are minimally burdensome and are easy for

the public to understand, use or comply with. In short, the Department

is committed to issuing regulations that maximize net benefits to

society and minimize costs imposed by those regulations.

Regulatory Flexibility Act

It has been determined that the Regulatory Flexibility Act is not

applicable to this proposed rule since CCC is not required by 5 U.S.C.

553 or any other provision of law to publish a notice of rulemaking

with respect to the subject matter of this rule.

Paperwork Reduction Act

The proposed rule does not impose any new reporting or

recordkeeping requirements. The information collection requirements of

participating in the MPP were approved for use by the Office of

Management and Budget under OMB control number 0551-0027.

Executive Order 12372

This proposed rule is not subject to the provisions of Executive

Order 12372 which requires intergovernmental consultation with state

and local officials. See the Notice related to 7 CFR part 3015, subpart

V, published at 46 FR 29115 (June 24, 1983).

Executive Order 12778

This proposed rule has been reviewed under the Executive Order

12778, Civil Justice Reform. The proposed rule would have pre-emptive

effect with respect to any state or local laws, regulations, or

policies which conflict with such provisions or which otherwise impede

their full implementation. The proposed rule would not have retroactive

effect. Administrative proceedings are not required before parties may

seek judicial review.

Background

On February 1, 1995, the CCC published final rules at 60 FR 6352

governing the MPP. These new rules were applicable beginning with a

participant's 1995 marketing year. Following publication, CCC

participated with interested parties in five information sessions

designed to familiarize participants with the new regulations and offer

participants an additional opportunity to identify any problem areas.

At these sessions, there was considerable discussion concerning the

requirement that participants must have completely paid for approved

activities not later that 30 days following the end of a participant's

activity plan in order to receive reimbursement, 7 CFR 1485.16(h)(3).

As a result of these discussions, CCC recognized that this requirement

is too restrictive and does not allow sufficient time for a participant

to receive and pay an invoice submitted by a third party, particularly

for those activities that are conducted near the end of an activity

plan year. In addition, the current requirement may, inadvertently,

impose a requirement on participants to prepay invoices. This is not a

practice CCC wishes to endorse since it is not a common business

practice and may also jeopardize the financial integrity of the

program. This proposed rule would amend the current requirement in 7

CFR 1485.16(h) by allowing participants to transfer funds to pay for

activities not later than 4 months following the end of the activity

plan year and still be entitled to receive reimbursement from CCC.

List of Subjects in 7 CFR Part 1485

Agricultural commodities, Exports.

[[Page 705]]

For the reasons set forth in the preamble, CCC proposes to amend 7

CFR part 1485 as follows:

PART 1485--AGREEMENTS FOR THE DEVELOPMENT OF FOREIGN MARKETS FOR

AGRICULTURAL COMMODITIES

1. The authority citation for Part 1485 continues to read as

follows:

Authority: 7 U.S.C. 5623, 5662-5664 and sec. 1302, Pub. L. 103-

66, 107 Stat. 330.

Subpart B--Market Promotion Program

2. In Sec. 1485.16, paragraph (h) is revised to read as follows:

Sec. 1485.16 Reimbursement rules.

* * * * *

(h) CCC will reimburse for expenditures made after the conclusion

of participant's activity plan year provided:

(1) The activity was approved prior to the end of the activity plan

year;

(2) The activity was completed within 30 calendar days following

the end of the activity plan year; and

(3) all funds transferred to pay for the activity within 4 months

following the end of the activity plan year.

Signed at Washington, D.C. on December 19, 1995.

Timothy J. Galvin,

Acting Administrator, Foreign Agricultural Service and Vice President,

Commodity Credit Corporation.

[FR Doc. 95-326 Filed 1-9-95; 8:45 am]

BILLING CODE 3410-05-M