81 FR 10530 - Christmas Tree Promotion, Research, and Information Order; Late Payment and Interest Charges on Past Due Assessments

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 81, Issue 40 (March 1, 2016)

This proposal invites comments on prescribing late payment and interest charges on past due assessments under the Christmas Tree Promotion, Research, and Information Order (Order). The Order is administered by the Christmas Tree Promotion Board (Board) with oversight by the U.S. Department of Agriculture (USDA). Under the Order, assessments are collected from domestic producers and importers and used for research and promotion projects designed to maintain and expand the market for fresh cut Christmas trees. This proposal would implement authority contained in the Order that allows the Board to collect late payment and interest charges on past due assessments. If this rule is finalized, it is proposed that late payment and interest charges would begin to accrue on unpaid assessments beginning 30 days after the effective date of the final rule. One additional change would provide authority in the Order for the Board to change the crop year and fiscal period through administrative action. This action would contribute to effective administration of the program.

[Federal Register Volume 81, Number 40 (Tuesday, March 1, 2016)]
[Proposed Rules]
[Pages 10530-10533]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-04469]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1214

[Document Number AMS-SC-15-0072]


Christmas Tree Promotion, Research, and Information Order; Late 
Payment and Interest Charges on Past Due Assessments

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This proposal invites comments on prescribing late payment and 
interest charges on past due assessments under the Christmas Tree 
Promotion, Research, and Information Order (Order). The Order is 
administered by the Christmas Tree Promotion Board (Board) with 
oversight by the U.S. Department of Agriculture (USDA). Under the 
Order, assessments are collected from domestic producers and importers 
and used for research and promotion projects designed to maintain and 
expand the market for fresh cut Christmas trees. This proposal would 
implement authority contained in the Order that allows the Board to 
collect late payment and interest charges on past due assessments. If 
this rule is finalized, it is proposed that late payment and interest 
charges would begin to accrue on unpaid assessments beginning 30 days 
after the effective date of the final rule. One additional change would 
provide authority in the Order for the Board to change the crop year 
and fiscal period through administrative action. This action would 
contribute to effective administration of the program.

DATES: Comments must be received by March 16, 2016.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this rule. Comments may be submitted on the Internet at: 
http://www.regulations.gov or to the Promotion and Economics Division, 
Specialty Crops Program, AMS, USDA, 1400 Independence Avenue SW., Room 
1406-S, Stop 0244, Washington, DC 20250-0244; facsimile: (202) 205-
2800. 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, including name and address, if 
provided, in the above office during regular business hours or it can 
be viewed at http://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Patricia A. Petrella, Promotion and 
Economics Division, Specialty Crops Program, AMS, USDA, 1400 
Independence Avenue SW., Room 1406-S, Stop 0244, Washington, DC 20250-
0244; telephone: (202) 720-9915; facsimile (202) 205-2800; or 
electronic mail: [email protected].

SUPPLEMENTARY INFORMATION: This proposed rule is issued under the Order 
(7 CFR part 1214). The Order is authorized under the Commodity 
Promotion, Research, and Information Act of 1996 (1996 Act) (7 U.S.C. 
7411-7425).

Executive Order 12866 and Executive Order 13563

    Executive Orders 12866 and 13563 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, reducing costs, harmonizing rules and promoting flexibility. 
This action has been designated as a ``non-significant regulatory 
action'' under section 3(f) of Executive Order 12866. Accordingly, the 
Office of Management and Budget (OMB) has waived the review process.

Executive Order 13175

    This action has been reviewed in accordance with the requirements 
of Executive Order 13175, Consultation and Coordination with Indian 
Tribal Governments. The review reveals that this regulation would not 
have substantial and direct effects on Tribal governments and would not 
have significant Tribal implications.

Executive Order 12988

    This rulemaking has been reviewed under Executive Order 12988, 
Civil Justice Reform. It is not intended to have retroactive effect. 
Section 524 of the 1996 Act (7 U.S.C. 7423) provides that it shall not 
affect or preempt any

[[Page 10531]]

other Federal or State law authorizing promotion or research relating 
to an agricultural commodity.
    Under section 519 of the 1996 Act (7 U.S.C. 7418), a person subject 
to an order may file a written petition with USDA stating that an 
order, any provision of an order, or any obligation imposed in 
connection with an order, is not established in accordance with the 
law, and request a modification of an order or an exemption from an 
order. Any petition filed challenging an order, any provision of an 
order, or any obligation imposed in connection with an order, shall be 
filed within two years after the effective date of an order, provision, 
or obligation subject to challenge in the petition. The petitioner will 
have the opportunity for a hearing on the petition. Thereafter, USDA 
will issue a ruling on the petition. The 1996 Act provides that the 
district court of the United States for any district in which the 
petitioner resides or conducts business shall have the jurisdiction to 
review a final ruling on the petition, if the petitioner files a 
complaint for that purpose not later than 20 days after the date of the 
entry of USDA's final ruling.

Background

    This proposed rule invites comments on prescribing late payment and 
interest charges on past due assessments under the Order. The Order is 
administered by the Board with oversight by USDA. Under the Order, 
assessments are collected from domestic producers and importers and 
used for research and promotion projects designed to maintain and 
expand markets for fresh cut Christmas trees. This proposed rule would 
implement authority contained in the Order and the 1996 Act that allows 
the Board to collect late payment and interest charges on past due 
assessments. This action was unanimously recommended by the Board and 
would contribute to effective administration of the program.
    Section 1214.52(a) of the Order specifies that the funds to cover 
the Board's expenses shall be paid from assessments on producers and 
importers, donations from persons not subject to assessments, and from 
other funds available to the Board. Paragraphs (b) and (c) specify that 
the collection of assessments on Christmas trees that are cut and sold 
or imported will be the responsibility of the producer who produces the 
Christmas trees or causes them to be cut, or the importer who imports 
Christmas trees for marketing in the United States.
    Section 1214.52 (e) specifies that ``a late payment charge, may be 
imposed on any producer or importer who fails to remit to the Board, 
the total amount for which any such producer or importer is liable on 
or before the due date established by the Board. In addition to the 
late payment charge, an interest charge may be imposed on the 
outstanding amount for which the producer or importer is liable. The 
rate for late payment and interest charges shall be specified by the 
Secretary through rulemaking.''
    The Order was implemented in November 2011, but immediately stayed. 
The stay was lifted on April 7, 2014, and the program is currently in 
effect. Domestic assessments are due on February 15, 2016. This will be 
the first assessment collection by the Board. Importers will be 
responsible for paying the assessment directly to the Board 30 calendar 
days after importation. U.S. Customs and Border Protection will not be 
collecting on importers this season. Producers who domestically produce 
less than 500 Christmas trees annually or import less than 500 
Christmas trees annually are exempt from assessment.
    If this rulemaking is finalized, it is proposed that late payment 
and interest charges would begin to accrue on unpaid assessments 
beginning 30 days after the effective date of the final rule. 
Therefore, beginning 30 days after the effective date of the final rule 
a late payment charge of $250 would be applied to any unpaid 
assessments for producers and importers that are delinquent in paying 
their assessment. If the assessment is paid after February 15, but up 
to 29 days after the effective date of the final rule, no late payment 
charge would be assessed. The late payment charge would be increased to 
$500 after 90 days after the effective date of the final rule. 
Additionally, a 1.5 percent interest charge per month would be assessed 
on unpaid assessments and fees owed, beginning 30 days after the 
effective date of the final rule. The delay of the imposition of late 
payment and interest charges would only apply to the initial period of 
assessment collection. Assessment funds are used by the Board for 
activities designed to benefit all industry members. Thus, it is 
important that all assessed entities pay their assessments in a timely 
manner. Entities who fail to pay their assessments on time would be 
able to reap the benefits of Board programs at the expense of others. 
In addition, they would be able to utilize funds for their own use that 
should otherwise be paid to the Board to finance Board programs.

Board Recommendation

    The Board met on July 17, 2015, and unanimously recommended 
specifying rates of late payment charges and interest on past due 
assessments in the Order's regulations. Specifically, the Board 
recommended that a late payment charge of $250 be applied to late 
assessments for producers and importers that are delinquent in paying 
their assessment 30 days after the due date. The late payment charge 
would be increased to $500 after 90 days of delinquency. Additionally, 
a 1.5 percent interest charge per month would be assessed on late 
assessments and fees owed, beginning 30 days after the assessment due 
date. This fee structure is not overly burdensome on small producers or 
importers, but does create the incentive to promote timely payment of 
assessments due. This action would contribute to the efficient 
administration of the program.
    This action would help facilitate program administration by 
providing an incentive for entities to remit assessments in a timely 
manner, with the intent of creating a fair and equitable process among 
all assessed entities. Accordingly, a new Subpart C would be added to 
the Order for rules and regulations, and a new section 1214.520 would 
be added to Subpart C.
    This proposed rule would also make one additional change to the 
Order. This rule would revise the definition of crop year and fiscal 
period as defined in sections 1214.5 and 1214.8, respectively. The 
Board recommended this change because USDA revised the crop year and 
fiscal period during the promulgation process from what was originally 
proposed by the industry. The Board wants the flexibility to change 
these dates if necessary. The crop year and fiscal period would be 
revised by adding language to allow the Board to change the crop year 
or fiscal period administratively through Board action.

Initial Regulatory Flexibility Act Analysis

    In accordance with the Regulatory Flexibility Act (RFA) (5 U.S.C. 
601-612), AMS is required to examine the impact of the rule on small 
entities. Accordingly, AMS has considered the economic impact of this 
action.
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses subject to such actions so that small businesses will not be 
disproportionately burdened. The Small Business Administration defines, 
in 13 CFR part 121, small agricultural producers as those having annual 
receipts of no more than $750,000 and small agricultural service firms 
(producers and importers) as those having annual receipts of no more 
than $7.5 million.

[[Page 10532]]

    According to the 2012 Census of Agriculture published by the 
National Agricultural Statistics Service (NASS), it is estimated that 
there are 15,494 farms that sold cut Christmas trees in the United 
States. According to NASS, the value of cut Christmas trees sold in 
2012 was $808,644,000. Dividing that value by the number of farms 
yields an average annual producer revenue of $52,191. Therefore it is 
estimated that all farms that sold Christmas trees had revenue under 
$7.5 million.
    Likewise, based on Customs data, it is estimated there are 153 
importers of Christmas trees. Using 2014 Customs data, all importers 
import less than $7.5 million worth of Christmas trees annually. Thus, 
all domestic producers and imports of Christmas trees would be 
considered small entities.
    Regarding the value of the commodity, as mentioned above, based on 
2012 NASS Census of Agriculture data, the value of the domestic cut 
Christmas trees was about $808.6 million. According to Customs data, 
the value of 2014 imports was about $25.8 million.
    This rulemaking invites comments on prescribing late payment and 
interest charges on past due assessments under the Order. The Order is 
administered by the Board with oversight by USDA. Under the Order, 
assessments are collected from producers and importers of Christmas 
trees that are cut and sold or imported.
    This proposed rule would add a new section 1214.520 that would 
specify a late payment charge of $250 to be applied to late assessments 
for producers and importers that are delinquent in paying their 
assessment 30 days after the due date. The late payment charge would be 
increased to $500 after 90 days of delinquency. Additionally, a 1.5 
percent interest charge per month would be assessed on late assessments 
and fees owed, beginning 30 days after the assessment due date. This 
section would be included in a new Subpart C--Provisions Implementing 
the Christmas Tree Promotion, Research, and Information Order. This 
action was unanimously recommended by the Board and is authorized under 
section 1214.52(e) of the Order and section 517(e) of the 1996 Act.
    This proposed rule would also make one additional change to the 
Order. This rule would revise the definition of crop year and fiscal 
period as defined in sections 1214.5 and 1214.8, respectively. The 
Board recommended this change because USDA revised the crop year and 
fiscal period during the promulgation process from what was originally 
proposed by the industry. The Board wants the flexibility to change 
these dates if necessary. The crop year and fiscal period would be 
revised by adding language to allow the Board to change the crop year 
or fiscal period administratively through Board action.
    Regarding the economic impact of this proposed rule on affected 
entities, this action would impose no costs on producers and importers 
who pay their assessments on time. It would merely provide an incentive 
for entities to remit their assessments in a timely manner. For all 
entities who are delinquent in paying assessments, both large and 
small, the charges will be applied uniformly. As for the impact on the 
industry as a whole, this action would help facilitate program 
administration by providing an incentive for entities to remit their 
assessments in a timely manner, with the intent of creating a fair and 
equitable process among all assessed entities.
    Additionally, as previously mentioned, the Order provides for an 
exemption for entities that produce or import less than 500 Christmas 
trees. Regarding alternatives, one option to the proposed action would 
be to maintain the status quo and not prescribe late payment and 
interest charges for past due assessments. However, the Board 
determined that implementing such charges would help facilitate program 
administration by encouraging entities to pay their assessments in a 
timely manner. The Board reviewed rates of late payment and interest 
charges prescribed in other research and promotion programs and 
concluded that the late payment charge and the interest charge 
contained in this proposal would be appropriate.
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the information collection and recordkeeping requirements 
that are imposed by the Order have been approved under OMB control 
number 0581-0093. This rulemaking would not result in a change to the 
information collection and recordkeeping requirements previously 
approved and will impose no additional reporting and recordkeeping 
burden on domestic producers and importers of Christmas trees.
    As with all Federal promotion programs, reports and forms are 
periodically reviewed to reduce information requirements and 
duplication by industry and public sector agencies. Finally, USDA has 
not identified any relevant Federal rules that duplicate, overlap, or 
conflict with this proposed rule.
    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.
    Regarding outreach efforts, the Board met on July 17, 2015, and 
unanimously recommended these proposed changes to the Order. All of the 
Board's meetings, including meetings held via teleconference, are open 
to the public and interested persons are invited to participate and 
express their views.
    We have performed this initial RFA regarding the impact of this 
action on small entities and we invite comments concerning potential 
effects of this action on small businesses.
    While this proposed rule set forth below has not received the 
approval of USDA, it has been determined that it is consistent with and 
would effectuate the purposes of the 1996 Act.
    A 15-day comment period is provided to allow interested persons to 
respond to this proposal. Fifteen days is deemed appropriate because 
the first collection of assessments under the Order, on the 2015 
harvest, is underway and assessments were due on February 15, 2016. The 
Board would like to implement this incentive as soon as possible to 
facilitate the initial collection of assessments. All written comments 
received in response to this proposed rule by the date specified will 
be considered prior to finalizing this action.

List of Subjects in 7 CFR Part 1214

    Administrative practice and procedure, Advertising, Consumer 
information, Christmas trees, Marketing agreements, Reporting and 
recordkeeping requirements.

    For the reasons set forth in the preamble, 7 CFR part 1214 is 
proposed to be amended as follows:

PART 1214--CHRISTMAS TREE PROMOTION, RESEARCH, AND INFORMATION 
ORDER

0
1. The authority citation for 7 CFR part 1214 continues to read as 
follows:

    Authority: 7 U.S.C. 7411-7425; 7 U.S.C. 7401.

0
2. Section 1214.5 is revised to read as follows:


Sec.  1214.5  Crop year.

    Crop year means the period August 1 through July 31 or such other 
period approved by the Secretary.
0
3. Section 1214.8 is revised to read as follows:

[[Page 10533]]

Sec.  1214.8  Fiscal period.

    Fiscal period means the period August 1 through July 31 or such 
other period as approved by the Secretary.
0
4. Subpart C--Rules and Regulations is added to read as follows:

Subpart C--Provisions Implementing the Christmas Tree Promotion, 
Research, and Information Order


Sec.  1214.520  Late payment and interest charges for past due 
assessments.

    (1) A late payment charge shall be imposed on any producer or 
importer who fails to make timely remittance to the Board of the total 
assessments for which such producer or importer is liable. The late 
payment charge will be imposed on any assessments not received within 
30 calendar days of the date they are due. This one-time late payment 
charge shall be $250 and would be increased to $500 after 90 days of 
delinquency.
    (2) In addition to the late payment charge, 1.5 percent per month 
interest on the outstanding balance, including any late payment charge 
and accrued interest, will be added to any accounts for which payment 
has not been received by the Board within 30 calendar days after the 
date the assessments are due. Such interest will continue to accrue 
monthly until the outstanding balance is paid to the Board.

    Dated: February 25, 2016.
Elanor Starmer,
Acting Administrator.
[FR Doc. 2016-04469 Filed 2-29-16; 8:45 am]
 BILLING CODE 3410-02-P