Fresh Cut Flowers and Fresh Cut Greens Promotion and Information Order; Suspension of Late Payment Charges

SUMMARY: This interim final rule suspends, until April 30, 1996,

portions of the Fresh Cut Flowers and Fresh Cut Greens Promotion and

Information Order (Order) relating to assessment late payment charges.

This action allows the National PromoFlor Council (Council) to cease

levying late charges on past due assessments remitted by qualified

handlers during the period January 15, 1995, through April 30, 1996.

The suspension also permits the Council to refund late charges which

have been collected since January 15, 1995. The Council recommended

this suspension because it discovered that some qualified handlers were

unfamiliar with the new fresh cut flowers and greens program.

EFFECTIVE DATE: January 15, 1995, through April 30, 1996.

Comments must be received by May 6, 1996.

ADDRESSES: Interested persons are invited to submit written comments

concerning this interim final 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; fax (202)

205-2800. 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

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

Promotion Branch, Fruit and Vegetable Division, AMS, USDA, P.O. Box

96456, Room 2535-S, Washington, D.C. 20090-6456; telephone (202) 720-

9915.

SUPPLEMENTARY INFORMATION: This interim final 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 interim final rule has been issued in conformance with

Executive Order 12866.

This rule has been reviewed under Executive Order 12778, Civil

Justice Reform. This action suspends late charges on past due

assessments remitted by qualified handlers during the period January

15, 1995, through April 30, 1996. This rule will 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 Sec. 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 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.

The Administrator of the AMS has determined that this rule will not

have a significant economic impact on a substantial number of small

entities. This action benefits qualified handlers by preventing the

levy of later charges which they might otherwise be subject to.

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

Chapter 35], and OMB regulations [5 CFR Part 1320], the information

collection and recordkeeping requirements contained in this action were

submitted to the OMB and approved under OMB control number 0581-0093

and has an expiration date of January 31, 1997. This action adds no

additional reporting burden.

Background

The Order became effective on December 29, 1994 [59 CFR 67139].

During the first year of operation, the National PromoFlor Council

(Council) has discovered that some qualified handlers were unfamiliar

with the new fresh cut flowers and greens program. Consequently, such

qualified handlers have remitted their assessments late or failed to

remit their assessments, unknowingly subjecting themselves to late

payment charges. The Council believes that the late payment charges are

not serving their intended purpose of stimulating timely remittance of

assessments due. Instead the late payment charges have been applicable

to persons having difficulty adjusting their operations to conform with

the requirements of the new program and

[[Page 14952]]

those who were legitimately unaware of the program's existence.

This action suspends section 1208.52 of the Order and allows the

Council to cease levying late charges on past due assessments remitted

by handlers during the period January 15, 1995, through April 30, 1996.

This suspension also permits the Council to refund late charges which

have been collected since January 15, 1995.

Suspension of late charges only applies to past due assessments

remitted to the Board postmarked prior to midnight April 30, 1996.

Assessment payments postmarked and received after April 30, 1996, would

be subject to the late charges that would have been due had these

provisions not been suspended.

Based on available information, the Administrator of the AMS has

determined that the issuance of this rule will not have a significant

economic impact on a substantial number of small entities.

For the reasons set forth herein, the provisions of section 1208.52

of the Order are suspended for the period January 15, 1995, through

April 30, 1996.

After consideration of all relevant material, it is found that the

order provisions subject to this action do not tend to effectuate the

declared policy of the Act and are suspended for the period provide for

in this action.

Pursuant to the provisions in 5 U.S.C. 553, it is found and

determined that it is impracticable, unnecessary, and contrary to the

public interest to give preliminary notice prior to putting this action

into effect and that good cause exists for not postponing the effective

date of this action until 30 days after publication in the Federal

Register, because: (1) This action removes an economic burden from

qualified handlers; (2) this action will serve to encourage qualified

handlers with past due assessments to remit such assessments before the

April 30, 1996, close of the suspension period, thereby avoiding the

payment of late charges; and (3) payment of past due assessments by

such qualified handlers will enable them to come into compliance with

the Act and the Order.

A 30-day comment period is provided to allow interested persons to

respond to this action.

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

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.

Sec. 1208.52 [Suspended in part]

2. In Part 1208, section 1208.52 is suspended effective January 15,

1995, through April 30, 1996.

Dated: March 20, 1996.

Michael V. Dunn,

Assistant Secretary, Marketing and Regulatory Programs.

[FR Doc. 96-8244 Filed 4-3-96; 8:45 am]

BILLING CODE 3410-02-P