Removal of U.S. Grade Standards; Procedures for Development and Maintenance of Voluntary Grade Standards

DEPARTMENT OF AGRICULTURE

Grain Inspection, Packers and Stockyards Administration

7 CFR Part 868

Removal of U.S. Grade Standards; Procedures for Development and

Maintenance of Voluntary Grade Standards

AGENCY: Grain Inspection, Packers and Stockyards Administration, USDA.

ACTION: Final rule.

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SUMMARY: The Grain Inspection, Packers and Stockyards Administration

(GIPSA) is adopting as a final rule, without change, its interim final

rule removing the voluntary U.S. grade standards for Beans, Whole Dry

Peas, Split Peas, and Lentils from the Code of Federal Regulations

(CFR). The voluntary standards and all subsequent revisions or new

standards will be made available in a separate publication, and will

appear as notices in the Federal Register for the public to comment on.

This action is part of the National Performance Review program to

eliminate unnecessary regulations.

In addition, this rule specifies in the CFR the procedures, which

were set out in the February 29, 1996, interim rule, that GIPSA will

follow in developing, issuing, revising, suspending or terminating

voluntary U.S. grade standards for Beans, Whole Dry Peas, Split Peas,

and Lentils.

EFFECTIVE DATE: February 14, 1997.

FOR FURTHER INFORMATION CONTACT: Sharon Vassiliades, USDA, GIPSA, Room

0623-S, STOP 3649, 1400 Independence Avenue, S.W., Washington, D.C.

20250-3649; FAX (202) 720-4628.

SUPPLEMENTARY INFORMATION: In the February 29, 1996, Federal Register

(61 FR 7687), GIPSA published an Interim Final Rule with Request for

Comments announcing removal from the CFR of voluntary standards dealing

with the U.S. grade standards for Beans, Whole Dry Peas, Split Peas,

and Lentils which may be used to describe the quality of these

agricultural commodities as valued in the marketplace. No comments were

received in response to this Interim Final Rule. GIPSA also will ensure

that the public will have an opportunity to comment on any future

proposed, new, or revised voluntary standards by publishing such

standards in the ``Notices'' section of the Federal Register.

Executive Order 12866

The Department of Agriculture (Department) is issuing this rule in

conformance with Executive Order 12866.

Executive Order 12988

This rule has been reviewed under Executive Order 12988, Civil

Justice Reform. This rule is not intended to have preemptive effect

with respect to any State or local laws, regulations, or policies

unless they present an irreconcilable conflict with this rule. This

rule is not intended to have retroactive effect. There are no

administrative procedures which must be exhausted prior to any judicial

challenge to this rule or the application of its provisions.

Effects on Small Entities

GIPSA has determined that this final rule will not have a

significant economic impact on a substantial number of small entities

as defined under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.).

Removal of the voluntary standards from the CFR will not adversely

affect interested persons. On the contrary, the U.S. pulse industry

(beans, peas, and lentils) is expected to benefit from this action

because it will provide for more timely improvements to the bean, pea,

and lentil standards. Furthermore, those persons who apply the

standards and most users of the inspection services do not meet the

requirements for small entities as defined in the Regulatory

Flexibility Act.

The primary user of pulse inspection services is the U.S.

government. It is estimated that between 80 and 90 percent of all

inspections are performed (directly or indirectly) at the request of

either the USDA's Farm Service Agency or Foreign Agricultural Service,

or the U.S. Agency for International Development. Approximately 20

percent of all inspections are performed at the request of major bean,

pea, and lentil shippers who would not be considered small entities, as

defined by the Small Business Administration (13 CFR 121.60); and about

3 percent of the service requests originate from other interested

parties, such as producers. But regardless of who requests the service,

the standards are applied equally to all entities. Use of the standards

for Beans, Whole Dry Peas, Split Peas, and Lentils is voluntary and

small entities may avoid incurring any economic impact by not employing

the standards. Although this action will remove standards for Beans,

Whole Dry Peas, Split Peas, and Lentils from the CFR, small entities

should see no changes as the standards will still be administered in a

manner to ensure public input to their formulation. Further, no costs

are expected to result from this action for handlers or producers and

benefits derived from this action may be passed on to consumers.

Further, this final rule includes in the CFR procedures to be used

by GIPSA in developing, issuing, revising, suspending, or terminating

voluntary U.S. grade standards. These procedures provide for public

input and participation and will not adversely affect small or large

entities.

Paperwork Reduction Act of 1995

In accordance with the provisions of the Paperwork Reduction Act,

the information collection requirements contained in Part 868 have been

previously approved by the Office of Management and Budget under

control number 0580-0013.

Background

GIPSA is delegated by the Secretary of Agriculture under the

Agricultural Marketing Act of 1946 (AMA), to provide programs for

Federal grading/certification services and to develop and establish

efficient marketing methods and practices for designated agricultural

commodities such as Beans, Whole Dry Peas, Split Peas, and Lentils. For

many years, these agricultural programs have facilitated the marketing

of agricultural commodities by developing official U.S. grade standards

which provide uniform language that may be used to describe the

characteristics of commodities as valued by the marketplace. The AMA

standards are widely used in private contracts, government procurement,

marketing communication and, for some commodities, consumer

information. Through the years, the standards have been promulgated as

regulations and codified in the CFR.

Rapid changes in consumer preferences, together with associated

changes in commodity characteristics, processing technology, and

marketing practices have out paced the revision or issuance of

standards. As a result, industry and the marketplace could be burdened

with outdated trading language. The President's regulatory review

initiative provided an impetus to develop new approaches to more

effectively meet the needs of U.S.

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industry, government agencies, and consumers and still reduce the

regulatory burden. To meet this initiative, the February 29, 1996,

interim final rule (61 FR 7687) removed from the CFR regulations with

respect to the official grade standards except those used to implement

government price support. The regulations removed cover Beans, Whole

Dry Peas, Split Peas, and Lentils. The grade standards for Rice will

continue to appear in the CFR.

Procedures for Maintenance of Voluntary U.S. Grade Standards

To ensure that future voluntary U.S. grade standards will be

developed, issued, and revised in a uniform manner that ensures a fair

and open process, GIPSA is placing in the CFR the procedures it will

follow in developing, issuing, revising, suspending or terminating

voluntary U.S. grade standards for Beans, Whole Dry Peas, Split Peas,

and Lentils.

In developing or revising existing grade standards, the

Administrator must first determine that a new or revised standard is

needed to facilitate trade in a particular commodity. Second, because

use of the standards is voluntary, there must be demonstrated interest

and support from the affected industry or other interested parties. And

third, the standards must be practical to use.

Initial requests for development or revision of a standard may come

from the industry, trade, or consumer groups, State departments of

agriculture, the U.S. Department of Agriculture, or others. Once a

request has been received, GIPSA will coordinate procedures to gather

information needed to move forward with the new or revised standards.

After this process is completed, a notice of proposed standards change

will be published in the Federal Register to solicit comment from any

interested parties (normally 30 to 60 days). After evaluating the

comments received from interested parties, GIPSA will determine whether

to proceed, develop a new proposal, or terminate the process. The

public will be informed through a news release and notice in the

Federal Register.

In addition to publication in the Federal Register, upon request,

GIPSA will distribute copies of each standard as a pamphlet or other

means under the direction of the Administrator of GIPSA.

The above procedures, which were discussed and explained in the

interim final rule published in the Federal Register on February 29,

1996 (61 FR 7687), are set forth in a new Subpart B titled Marketing

Standards.

Good cause is found for not postponing the effective date of this

rule until 30 days after publication in the Federal Register (5 U.S.C.

553). This action makes final an interim final rule removing voluntary

U.S. grade standards. This action also specifies in the CFR the

procedures, as discussed in the interim rule, which GIPSA will follow

in developing, issuing, revising, suspending or terminating such

standards. No comments were received concerning the interim final rule.

No useful purpose would be served by delaying the effective date of

this final rule.

List of Subjects in 7 CFR Part 868

Administrative practice and procedures, Agricultural commodities,

Beans, Whole Dry Peas, Split Peas, and Lentils.

For the reasons set forth in the preamble, the interim rule

published on February 29, 1996 (61 FR 7687), is confirmed as a final

rule and 7 CFR Part 868 is amended by adding a new Subpart B titled

Marketing Standards.

PART 868--GENERAL REGULATIONS AND STANDARDS FOR CERTAIN

AGRICULTURAL COMMODITIES

1. The authority citation for Part 868 continues to read as

follows:

Authority: Secs. 202-208, 60 Stat. 1087, as amended (7 U.S.C.

1621 et seq.)

2. A new Subpart B (Secs. 868.101 through 868.103) is added to read

as follows:

Subpart B--Marketing Standards

Sec.

868.101 General Information.

868.102 Procedures for establishing and revising grade standards.

868.103 Public notification of grade standards action.

Sec. 868.101 General information.

The Grain Inspection, Packers and Stockyards Administration (GIPSA)

of the U.S. Department of Agriculture (USDA) facilitates the fair and

efficient marketing of agricultural products by maintaining voluntary

grade standards for Beans, Whole Dry Peas, Split Peas, and Lentils,

which provide a uniform language for describing the quality of these

commodities in the marketplace. These standards may cover (but are not

limited to) terms, classes, quality levels, performance criteria, and

inspection requirements. Procedures contained in this part set forth

the process which GIPSA will follow in developing, issuing, revising,

suspending, or terminating the U.S. standards for Beans, Whole Dry

Peas, Split Peas, and Lentils. Communications about GIPSA standards in

general should be addressed to the Administrator, GIPSA, USDA, 1400

Independence Avenue, S.W., Washington, D.C. 20250-3601.

Sec. 868.102 Procedures for establishing and revising grade standards.

(a) GIPSA will develop, revise, suspend, or terminate grade

standards if it determines that such action is in the public interest.

GIPSA encourages interested parties to participate in the review,

development, and revision of grade standards. Interested parties

include growers, producers, processors, shippers, distributors,

consumers, trade associations, companies, and State or Federal

agencies. Such persons may at any time recommend that GIPSA develop,

revise, suspend, or terminate a grade standard. Requests for action

should be in writing, and should be accompanied by a draft of the

suggested change, as appropriate.

(b) GIPSA will:

(1) Determine the need for new or revised standards;

(2) Collect technical, marketing, or other appropriate data;

(3) Conduct research regarding new or revised standards, as

appropriate; and

(4) Draft the proposed standards.

(c) If GIPSA determines that new standards are needed, existing

standards need to be revised, or the suspension or termination of

existing standards is justified, GIPSA will undertake the action with

input from interested parties.

Sec. 868.103 Public notification of grade standards action.

(a) After developing a standardization proposal, GIPSA will publish

a notice in the Federal Register proposing new or revised standards or

suspending or terminating existing standards. The notice will provide a

sufficient comment period for interested parties to submit comments.

(b) GIPSA will simultaneously issue a news release about these

actions, notifying the affected industry and general public. GIPSA will

also distribute copies of proposals to anyone requesting a copy or to

anyone it believes may be interested, including other Federal, State,

or local government agencies.

(c) All comments received within the comment period will be made

part of the public record maintained by GIPSA, will be available to the

public for review, and will be considered by GIPSA before final action

is taken on the proposal.

(d) Based on the comments received, GIPSA's knowledge of standards,

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grading, marketing, and other technical factors, and any other relevant

information, GIPSA will decide whether the proposed actions should be

implemented.

(e) If GIPSA concludes that the changes as proposed or with

appropriate modifications should be adopted, GIPSA will publish the

final changes in the Federal Register as a final notice. GIPSA will

make the grade standards and related information available in printed

form and electronic media.

(f) If GIPSA determines that proposed changes are not warranted, or

otherwise are not in the public interest, GIPSA will either publish in

the Federal Register a notice withdrawing the proposal, or will revise

the proposal and again seek public input.

Dated: February 7, 1997.

David R. Shipman,

Acting Administrator.

[FR Doc. 97-3567 Filed 2-12-97; 8:45 am]

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