80 FR 25969 - Clarification of United States Antitrust Laws, Immunity, and Liability Under Marketing Order Programs
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service Federal Register Volume 80, Issue 87 (May 6, 2015)
Agricultural Marketing Service
Federal Register Volume 80, Issue 87 (May 6, 2015)
| Page Range | 25969-25970 | |
| FR Document | 2015-10447 |
[Federal Register Volume 80, Number 87 (Wednesday, May 6, 2015)] [Proposed Rules] [Pages 25969-25970] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-10447] ======================================================================== Proposed Rules Federal Register ________________________________________________________________________ This section of the FEDERAL REGISTER contains notices to the public of the proposed issuance of rules and regulations. The purpose of these notices is to give interested persons an opportunity to participate in the rule making prior to the adoption of the final rules. ======================================================================== Federal Register / Vol. 80, No. 87 / Wednesday, May 6, 2015 / Proposed Rules [[Page 25969]] DEPARTMENT OF AGRICULTURE Agricultural Marketing Service 7 CFR Part 900 [Docket No. AMS-FV-14-0072; FV14-900-2 PR] Clarification of United States Antitrust Laws, Immunity, and Liability Under Marketing Order Programs AGENCY: Agricultural Marketing Service, USDA. ACTION: Proposed rule. ----------------------------------------------------------------------- SUMMARY: This proposal invites comments on an amendment to the general regulations for federal fruit, vegetable, and specialty crop marketing agreements and marketing orders that would accentuate the applicability of U.S. antitrust laws to marketing order programs' domestic and foreign activities. This action would also advise marketing order board and committee members and personnel of the restrictions, limitations, and liabilities imposed by those laws. DATES: Comments must be received by June 5, 2015. ADDRESSES: Interested persons are invited to submit written comments concerning this proposal. Comments must be sent to the Docket Clerk, Marketing Order and Agreement Division, Fruit and Vegetable Program, AMS, USDA, 1400 Independence Avenue SW., STOP 0237, Washington, DC 20250-0237; Fax: (202) 720-8938; or Internet: http://www.regulations.gov. All comments should reference the document number and the date and page number of this issue of the Federal Register and will be made available for public inspection in the Office of the Docket Clerk during regular business hours or can be viewed at: http://www.regulations.gov. All comments submitted in response to this proposal will be included in the record and will be made available to the public. Please be advised that the identity of the individuals or entities submitting the comments will be made public on the internet at the address provided above. FOR FURTHER INFORMATION CONTACT: Geronimo Quinones, Marketing Specialist, or Michelle P. Sharrow, Rulemaking Branch Chief, Marketing Order and Agreement Division, Fruit and Vegetable Program, AMS, USDA, 1400 Independence Avenue SW., Stop 0237, Washington, DC 20250-0237; Telephone: (202) 720-2491, Fax: (202) 720-8938, or Email: [email protected] or [email protected]. Small businesses may request information on complying with this regulation by contacting Jeffrey Smutny, Marketing Order and Agreement Division, Fruit and Vegetable Program, AMS, USDA, 1400 Independence Avenue SW., STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720- 2491, Fax: (202) 720-8938, or Email: [email protected]. SUPPLEMENTARY INFORMATION: This proposal is issued under the general regulations for federal marketing agreements and orders (7 CFR part 900), effective under the Agricultural Marketing Agreement Act of 1937, as amended (7 U.S.C. 601-674), hereinafter referred to as the ``Act.'' This action would add a new Sec. 900.202 (Restrictions applicable to Committee personnel) under ``Subpart--Miscellaneous Regulations'' to accentuate the applicability of U.S. antitrust laws to marketing order program activities. The Department of Agriculture (USDA) is issuing this proposed rule in conformance with Executive Orders 12866, 13563, and 13175. This proposal has been reviewed under Executive Order 12988, Civil Justice Reform. This proposed rule is not intended to have retroactive effect. The Act provides that administrative proceedings must be exhausted before parties may file suit in court. Under section 608c(15)(A) of the Act, any handler subject to an order may file with USDA a petition stating that the order, any provision of the order, or any obligation imposed in connection with the order is not in accordance with law and request a modification of the order or to be exempted therefrom. A handler is afforded the opportunity for a hearing on the petition. After the hearing, USDA would rule on the petition. The Act provides that the district court of the United States in any district in which the handler is an inhabitant, or has his or her principal place of business, has jurisdiction to review USDA's ruling on the petition, provided an action is filed not later than 20 days after the date of the entry of the ruling. Federal marketing order boards and committees have always been subject to U.S. antitrust laws. These boards and committees work with USDA in administering marketing order programs which, among other things, authorizes them, with approval of the Secretary, to establish and promote a program's domestic and foreign marketing activities. The Act immunizes board and committee members and employees from prosecution under U.S. antitrust laws so long as their conduct is authorized by the Act or provisions of a marketing order. This proposal is intended to accentuate the applicability of U.S. antitrust laws to marketing order board and committee members and personnel in light of changing global marketing and production trends as well as to advise boards and committees of the restrictions, limitations, and liabilities of those laws. Under these laws, Committee members and employees may not engage in any unauthorized agreement or concerted action that unreasonably restrains United States domestic or foreign commerce. Failing to adhere to antitrust laws may lead to prosecution under the antitrust laws by the United States Department of Justice and/or suit by injured private persons seeking treble damages, and may also result in expulsion of members from the Committee or termination of employment with the Committee. Initial Regulatory Flexibility Act Pursuant to requirements set forth in the Regulatory Flexibility Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS) has considered the economic impact of this action on small entities. Accordingly, AMS has prepared this initial regulatory flexibility analysis. The purpose of the RFA is to fit regulatory actions to the scale of businesses subject to such actions in order that small businesses will not be unduly or disproportionately burdened. Marketing orders issued pursuant to the Act, and rules issued thereunder, are unique in that they are brought about through group action of essentially [[Page 25970]] small entities acting on their own behalf. There are approximately 1,090 handlers who are subject to regulation under the 28 federal marketing order programs and approximately 33,100 producers in the regulated areas. Small agricultural service firms are defined by the Small Business Administration (SBA) as those having annual receipts of less than $7,000,000, and small agricultural producers are defined as those having annual receipts of less than $750,000 (13 CFR 121.201). USDA estimates that many of these handlers and producers may be classified as small entities. This rule would accentuate the applicability of U.S. antitrust laws to marketing order programs' domestic and foreign activities. This action would also advise marketing order board and committee members and personnel of the restrictions, limitations, and liabilities imposed by those laws. Paperwork Reduction Act This rule contains no information collection or recordkeeping requirements under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501- 3520). AMS is committed to complying with the E-Government Act, to promote the use of the internet and other information technologies to provide increased opportunities for citizen access to Government information and services, and for other purposes. USDA has not identified any relevant Federal rules that duplicate, overlap, or conflict with this proposed rule. AMS has discussed the changes to the regulations with all marketing order board and committee staff that it oversees. Moreover, AMS conducted refresher training on antitrust laws for marketing order board and committee staff and officers at the Marketing Order Management Conference on September 23-24, 2014. Finally, interested persons are invited to submit comments on this proposed rule, including the regulatory and informational impacts of this action on small businesses. A small business guide on complying with fruit, vegetable, and specialty crop marketing agreements and orders may be viewed at: www.ams.usda.gov/MarketingOrdersSmallBusinessGuide. Any questions about the compliance guide should be sent to Jeffrey Smutny at the previously mentioned address in the FOR FURTHER INFORMATION CONTACT section. A 30-day comment period is provided to allow interested persons to respond to this proposal. Thirty days is deemed appropriate because federal marketing order boards and committees have always been subject to U.S. antitrust laws. AMS is simply updating the regulations to reemphasize the applicability of U.S. antitrust laws in light of global marketing and production trends. All written comments timely received will be considered before a final determination is made on this matter. List of Subjects in 7 CFR Part 900 Administrative practice and procedure, Freedom of information, Marketing agreements, Reporting and recordkeeping requirements. For the reasons set forth above, 7 CFR part 900 is proposed to be amended as follows: PART 900--GENERAL REGULATIONS 0 1. The authority citation for 7 CFR part 900 continues to read as follows: Authority: 7 U.S.C. 601-674 and 7 U.S.C. 7401. Subpart--Miscellaneous Regulations 0 2. The authority citation for Subpart--Miscellaneous Regulations continues to read as follows: Authority: Sec. 10, 48 Stat. 37, as amended; 7 U.S.C. 610. 0 3. Add new section 900.202 to read as follows: Sec. 900.202 Restrictions applicable to Committee personnel. Members and employees of Federal marketing order boards and committees are immune from prosecution under the United States antitrust laws only insofar as their conduct in administering the respective marketing order is authorized by the Agricultural Marketing Agreement Act of 1937, 7 U.S.C. 601-674, or the provisions of the respective order. Under the antitrust laws, Committee members and employees may not engage in any unauthorized agreement or concerted action that unreasonably restrains United States domestic or foreign commerce. For example, Committee members and employees have no authority to participate, either directly or indirectly, whether on an informal or formal, written or oral basis, in any bilateral or international undertaking or agreement with any competing foreign producer or seller or with any foreign government, agency, or instrumentality acting on behalf of competing foreign producers or sellers to (a) raise, fix, stabilize, or set a floor for commodity prices, or (b) limit the quantity or quality of commodity imported into or exported from the United States. Participation in any such unauthorized agreement or joint undertaking could result in prosecution under the antitrust laws by the United States Department of Justice and/or suit by injured private persons seeking treble damages, and could also result in expulsion of members from the Committee or termination of employment with the Committee. Dated: April 30, 2015. Rex A. Barnes, Associate Administrator, Agricultural Marketing Service. [FR Doc. 2015-10447 Filed 5-5-15; 8:45 am] BILLING CODE 3410-02-P
![25969
Proposed Rules Federal Register
Vol. 80, No. 87
Wednesday, May 6, 2015
This section of the FEDERAL REGISTER comments will be made public on the the handler is an inhabitant, or has his
contains notices to the public of the proposed internet at the address provided above. or her principal place of business, has
issuance of rules and regulations. The FOR FURTHER INFORMATION CONTACT: jurisdiction to review USDA’s ruling on
purpose of these notices is to give interested the petition, provided an action is filed
Geronimo Quinones, Marketing
persons an opportunity to participate in the not later than 20 days after the date of
rule making prior to the adoption of the final Specialist, or Michelle P. Sharrow,
rules. Rulemaking Branch Chief, Marketing the entry of the ruling.
Order and Agreement Division, Fruit Federal marketing order boards and
and Vegetable Program, AMS, USDA, committees have always been subject to
DEPARTMENT OF AGRICULTURE 1400 Independence Avenue SW., Stop U.S. antitrust laws. These boards and
0237, Washington, DC 20250–0237; committees work with USDA in
Agricultural Marketing Service Telephone: (202) 720–2491, Fax: (202) administering marketing order programs
720–8938, or Email: which, among other things, authorizes
7 CFR Part 900 Geronimo.Quinones@ams.usda.gov or them, with approval of the Secretary, to
[Docket No. AMS–FV–14–0072; FV14–900– Michelle.Sharrow@ams.usda.gov. establish and promote a program’s
2 PR] Small businesses may request domestic and foreign marketing
information on complying with this activities. The Act immunizes board and
Clarification of United States Antitrust regulation by contacting Jeffrey Smutny, committee members and employees
Laws, Immunity, and Liability Under Marketing Order and Agreement from prosecution under U.S. antitrust
Marketing Order Programs Division, Fruit and Vegetable Program, laws so long as their conduct is
AMS, USDA, 1400 Independence authorized by the Act or provisions of
AGENCY: Agricultural Marketing Service, Avenue SW., STOP 0237, Washington, a marketing order. This proposal is
USDA. DC 20250–0237; Telephone: (202) 720– intended to accentuate the applicability
ACTION: Proposed rule. 2491, Fax: (202) 720–8938, or Email: of U.S. antitrust laws to marketing order
Jeffrey.Smutny@ams.usda.gov. board and committee members and
SUMMARY: This proposal invites personnel in light of changing global
SUPPLEMENTARY INFORMATION: This
comments on an amendment to the marketing and production trends as well
general regulations for federal fruit, proposal is issued under the general
regulations for federal marketing as to advise boards and committees of
vegetable, and specialty crop marketing the restrictions, limitations, and
agreements and marketing orders that agreements and orders (7 CFR part 900),
effective under the Agricultural liabilities of those laws. Under these
would accentuate the applicability of laws, Committee members and
U.S. antitrust laws to marketing order Marketing Agreement Act of 1937, as
amended (7 U.S.C. 601–674), hereinafter employees may not engage in any
programs’ domestic and foreign unauthorized agreement or concerted
activities. This action would also advise referred to as the ‘‘Act.’’ This action
would add a new § 900.202 (Restrictions action that unreasonably restrains
marketing order board and committee United States domestic or foreign
members and personnel of the applicable to Committee personnel)
under ‘‘Subpart—Miscellaneous commerce. Failing to adhere to antitrust
restrictions, limitations, and liabilities laws may lead to prosecution under the
imposed by those laws. Regulations’’ to accentuate the
applicability of U.S. antitrust laws to antitrust laws by the United States
DATES: Comments must be received by Department of Justice and/or suit by
marketing order program activities.
June 5, 2015. The Department of Agriculture injured private persons seeking treble
ADDRESSES: Interested persons are (USDA) is issuing this proposed rule in damages, and may also result in
invited to submit written comments conformance with Executive Orders expulsion of members from the
concerning this proposal. Comments 12866, 13563, and 13175. Committee or termination of
must be sent to the Docket Clerk, This proposal has been reviewed employment with the Committee.
Marketing Order and Agreement under Executive Order 12988, Civil
Initial Regulatory Flexibility Act
Division, Fruit and Vegetable Program, Justice Reform. This proposed rule is
AMS, USDA, 1400 Independence not intended to have retroactive effect. Pursuant to requirements set forth in
Avenue SW., STOP 0237, Washington, The Act provides that administrative the Regulatory Flexibility Act (RFA) (5
DC 20250–0237; Fax: (202) 720–8938; or proceedings must be exhausted before U.S.C. 601–612), the Agricultural
Internet: http://www.regulations.gov. All parties may file suit in court. Under Marketing Service (AMS) has
comments should reference the section 608c(15)(A) of the Act, any considered the economic impact of this
document number and the date and handler subject to an order may file action on small entities. Accordingly,
page number of this issue of the Federal with USDA a petition stating that the AMS has prepared this initial regulatory
Register and will be made available for order, any provision of the order, or any flexibility analysis.
public inspection in the Office of the obligation imposed in connection with The purpose of the RFA is to fit
tkelley on DSK3SPTVN1PROD with PROPOSALS
Docket Clerk during regular business the order is not in accordance with law regulatory actions to the scale of
hours or can be viewed at: http:// and request a modification of the order businesses subject to such actions in
www.regulations.gov. All comments or to be exempted therefrom. A handler order that small businesses will not be
submitted in response to this proposal is afforded the opportunity for a hearing unduly or disproportionately burdened.
will be included in the record and will on the petition. After the hearing, USDA Marketing orders issued pursuant to the
be made available to the public. Please would rule on the petition. The Act Act, and rules issued thereunder, are
be advised that the identity of the provides that the district court of the unique in that they are brought about
individuals or entities submitting the United States in any district in which through group action of essentially
VerDate Sep<11>2014 18:29 May 05, 2015 Jkt 235001 PO 00000 Frm 00001 Fmt 4702 Sfmt 4702 E:\FR\FM\06MYP1.SGM 06MYP1](https://thefederalregister.org/doc/80_FR_26056/page/1.svg)
![25970 Federal Register / Vol. 80, No. 87 / Wednesday, May 6, 2015 / Proposed Rules
small entities acting on their own order boards and committees have unauthorized agreement or joint
behalf. always been subject to U.S. antitrust undertaking could result in prosecution
There are approximately 1,090 laws. AMS is simply updating the under the antitrust laws by the United
handlers who are subject to regulation regulations to reemphasize the States Department of Justice and/or suit
under the 28 federal marketing order applicability of U.S. antitrust laws in by injured private persons seeking treble
programs and approximately 33,100 light of global marketing and production damages, and could also result in
producers in the regulated areas. Small trends. All written comments timely expulsion of members from the
agricultural service firms are defined by received will be considered before a Committee or termination of
the Small Business Administration final determination is made on this employment with the Committee.
(SBA) as those having annual receipts of matter. Dated: April 30, 2015.
less than $7,000,000, and small
List of Subjects in 7 CFR Part 900 Rex A. Barnes,
agricultural producers are defined as
those having annual receipts of less than Administrative practice and Associate Administrator, Agricultural
$750,000 (13 CFR 121.201). USDA Marketing Service.
procedure, Freedom of information,
estimates that many of these handlers Marketing agreements, Reporting and [FR Doc. 2015–10447 Filed 5–5–15; 8:45 am]
and producers may be classified as recordkeeping requirements. BILLING CODE 3410–02–P
small entities. This rule would For the reasons set forth above, 7 CFR
accentuate the applicability of U.S. part 900 is proposed to be amended as
antitrust laws to marketing order follows: DEPARTMENT OF THE TREASURY
programs’ domestic and foreign
activities. This action would also advise PART 900—GENERAL REGULATIONS Internal Revenue Service
marketing order board and committee
members and personnel of the ■ 1. The authority citation for 7 CFR 26 CFR Part 1
restrictions, limitations, and liabilities part 900 continues to read as follows:
imposed by those laws. Authority: 7 U.S.C. 601–674 and 7 U.S.C. [REG–132634–14]
7401.
Paperwork Reduction Act RIN 1545–BM43
This rule contains no information Subpart—Miscellaneous Regulations
Qualifying Income From Activities of
collection or recordkeeping 2. The authority citation for Subpart—
■ Publicly Traded Partnerships With
requirements under the Paperwork Miscellaneous Regulations continues to Respect to Minerals or Natural
Reduction Act of 1995 (44 U.S.C. 3501– read as follows: Resources
3520).
AMS is committed to complying with Authority: Sec. 10, 48 Stat. 37, as AGENCY: Internal Revenue Service (IRS),
the E-Government Act, to promote the amended; 7 U.S.C. 610.
Treasury.
use of the internet and other ■ 3. Add new section 900.202 to read as ACTION: Notice of proposed rulemaking.
information technologies to provide follows:
increased opportunities for citizen SUMMARY: This document contains
access to Government information and § 900.202 Restrictions applicable to
proposed regulations under section
Committee personnel.
services, and for other purposes. 7704(d)(1)(E) of the Internal Revenue
USDA has not identified any relevant Members and employees of Federal Code (Code) relating to qualifying
Federal rules that duplicate, overlap, or marketing order boards and committees income from exploration, development,
conflict with this proposed rule. are immune from prosecution under the mining or production, processing,
AMS has discussed the changes to the United States antitrust laws only insofar refining, transportation, and marketing
regulations with all marketing order as their conduct in administering the of minerals or natural resources. The
board and committee staff that it respective marketing order is authorized proposed regulations affect publicly
oversees. Moreover, AMS conducted by the Agricultural Marketing traded partnerships and their partners.
refresher training on antitrust laws for Agreement Act of 1937, 7 U.S.C. 601–
DATES: Comments and requests for a
marketing order board and committee 674, or the provisions of the respective
order. Under the antitrust laws, public hearing must be received by
staff and officers at the Marketing Order August 4, 2015.
Management Conference on September Committee members and employees
23–24, 2014. Finally, interested persons may not engage in any unauthorized ADDRESSES: Send submissions to:
are invited to submit comments on this agreement or concerted action that CC:PA:LPD:PR (REG–132634–14), Room
proposed rule, including the regulatory unreasonably restrains United States 5203, Internal Revenue Service, P.O.
and informational impacts of this action domestic or foreign commerce. For Box 7604, Ben Franklin Station,
on small businesses. example, Committee members and Washington, DC 20044. Submissions
A small business guide on complying employees have no authority to may be hand-delivered Monday through
with fruit, vegetable, and specialty crop participate, either directly or indirectly, Friday between the hours of 8 a.m. and
marketing agreements and orders may whether on an informal or formal, 4 p.m. to CC:PA:LPD:PR (REG–132634–
be viewed at: www.ams.usda.gov/ written or oral basis, in any bilateral or 14), Courier’s Desk, Internal Revenue
MarketingOrdersSmallBusinessGuide. international undertaking or agreement Service, 1111 Constitution Avenue NW.,
Any questions about the compliance with any competing foreign producer or Washington, DC, or sent electronically,
via the Federal eRulemaking Portal at
tkelley on DSK3SPTVN1PROD with PROPOSALS
guide should be sent to Jeffrey Smutny seller or with any foreign government,
at the previously mentioned address in agency, or instrumentality acting on www.regulations.gov (IRS REG–132634–
the FOR FURTHER INFORMATION CONTACT behalf of competing foreign producers 14).
section. or sellers to (a) raise, fix, stabilize, or set FOR FURTHER INFORMATION CONTACT:
A 30-day comment period is provided a floor for commodity prices, or (b) limit Concerning the proposed regulations,
to allow interested persons to respond the quantity or quality of commodity Caroline E. Hay at (202) 317–5279;
to this proposal. Thirty days is deemed imported into or exported from the concerning the submissions of
appropriate because federal marketing United States. Participation in any such comments and requests for a public
VerDate Sep<11>2014 18:29 May 05, 2015 Jkt 235001 PO 00000 Frm 00002 Fmt 4702 Sfmt 4702 E:\FR\FM\06MYP1.SGM 06MYP1](https://thefederalregister.org/doc/80_FR_26056/page/2.svg)
Document Created: 2015-12-16 07:41:41
Document Modified: 2015-12-16 07:41:41
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Proposed Rules | |
| Action | Proposed rule. | |
| Dates | Comments must be received by June 5, 2015. | |
| Contact | Geronimo Quinones, Marketing Specialist, or Michelle P. Sharrow, Rulemaking Branch Chief, Marketing Order and Agreement Division, Fruit and Vegetable Program, AMS, USDA, 1400 Independence Avenue SW., Stop 0237, Washington, DC 20250-0237; Telephone: (202) 720-2491, Fax: (202) 720-8938, or Email: [email protected] or [email protected] | |
| FR Citation | 80 FR 25969 |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR