Amendments to the Perishable Agricultural Commodities Act (PACA)

SUMMARY: This document reopens the period for filing written comments

on revisions to the Perishable Agricultural Commodities Act (PACA)

license fees. These changes would conform current regulations to new

legislative changes signed into law by President Clinton. Specifically,

the changes to the license fee structure phase retailers and grocery

wholesalers out of license fee payments over a 3-year period; establish

a one-time administrative fee for new retailers and grocery wholesalers

entering the program after the 3-year phase-out period; and increase

license fees from $400 to $550 annually for all other licensees.

DATES: Comments must be received by April 30, 1997.

ADDRESSES: Interested persons are invited to submit written comments

concerning this reopened action. Comments must be sent to James R.

Frazier, Chief, PACA Branch, Fruit and Vegetable Division, Room 2095-

South Building, 1400 Independence Avenue, S.W., P.O. Box 96456,

Washington, DC 20090-6456. All comments should reference the docket

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

Register and will be made available for inspection in the PACA Branch

during regular business hours.

FOR FURTHER INFORMATION CONTACT: James R. Frazier, Chief, PACA Branch,

F&V Division, AMS, USDA, Room 2095-South Building, P.O. Box 96456,

Washington, DC 20090-6456, Phone (202) 720-2272.

SUPPLEMENTARY INFORMATION: The PACA was amended by Public Law 104-48.

The regulations implementing the PACA (other than the Rules of

Practice) are published in the Code of Federal Regulations at Title 7,

Part 46 (7 CFR Part 46). A proposed rule to amend the regulations to

implement Public Law 104-48 was published in the September 10, 1996

issue of the Federal Register (61 FR 47674). The 60-day comment period

closed on November 12, 1996. Twelve comments were received on the

proposed rule from four trade associations representing growers and

shippers, three trade groups representing retailers and grocery

wholesalers, three law firms, one association representing the frozen

food industry, and one fruit and vegetable broker.

Section 46.6 of the proposed rule would phase all retailers and

grocery wholesalers out of license fee payments over the 3-year period,

beginning November 15, 1995 and ending November 14, 1998. The gradual

phase-out of fee payments under this proposed rule is inclusive of all

retailers and grocery wholesalers, regardless of when they were

initially licensed under the PACA.

Of the twelve comments received, three addressed the collection of

renewal fees paid by grocery wholesalers and retailers licensed by USDA

after enactment of Public Law 104-48. The three commentors write that

USDA is incorrectly proposing that first-time licensed retailers and

grocery wholesalers pay renewal fees. They refer to section 499 (c) (3)

of the statute designated, ``ONE-TIME FEE FOR RETAILERS AND GROCERY

WHOLESALERS THAT ARE DEALERS'', which specifies the fees to be paid by

a retailer or a grocery wholesaler making an initial application during

the phase-out period and after such period ends. The commentors

emphasized the statutory language ending section 499 (c) (3) which

states: ``* * *a retailer or grocery wholesaler paying a fee under this

paragraph shall not be required to pay any fee for renewal of the

license for subsequent years.'' Since the commentors' interpretation of

the legislative amendment is substantially different from USDA's view

but appears to be plausible, USDA has determined that reopening the

comment period until April 30, 1997, would allow other parties

interested in this matter more time to review this section of the

proposed rule and provide their comments. In the meantime, USDA will

continue to assess license renewal fees as provided in 7 CFR Part 46.6.

Should USDA, after notice and comment, conclude that the law excludes

certain categories of licensees from the requirement to pay regular

renewal fees, all such fees paid by those firms or individuals shall be

refunded with interest. If USDA reaches such a conclusion, the PACA

program will face a projected $750,000 loss in revenue over the three-

year phase-out period.

Accordingly, the period in which to file written comments is

reopened until April 30, 1997.

List of Subjects in 7 CFR Part 46

Agricultural commodities, Brokers, Penalties, Reporting and

recordkeeping requirements.

Dated: March 21, 1997.

Eric M. Forman,

Acting Director, Fruit and Vegetable Division.

[FR Doc. 97-7808 Filed 3-28-97; 8:45 am]

BILLING CODE 3410-02-P