RULES AND REGULATIONS
Title 7--AGRICULTURE
DEPARTMENT OF AGRICULTURE
[7 PA. CODE CH. 104]
Sheep and Lamb Marketing Program
[26 Pa.B. 2783] The Department of Agriculture (Department) adopts amendments to §§ 104.21, 104.22, 104.24--104.26 and 104.28--104.30. These amendments are adopted under sections 3 and 11 of the Pennsylvania Agricultural Commodities Act of 1968 (act) (3 P. S. §§ 1003 and 1011) which, respectively, require the Department to administer commodity marketing programs and delegate to the Department the power to adopt regulations necessary to implement the act.
Chapter 104, Subchapter C (relating to sheep and lamb marketing program) was adopted in 1993, and addresses the Pennsylvania Sheep and Lamb Marketing Program (Program). The primary purpose of Subchapter C was to involve sheep and lamb sales agents in the process of collecting the 25¢-per-head producer charge owed the Program by sheep and lamb producers. As a result of the Program Board's experience in administrating the Program under Subchapter C, though, it has determined it can better enlist the cooperation of sales agents in the producer charge collection process by minimizing the responsibilities and paperwork and recordkeeping requirements imposed upon sheep and lamb producers and sales agents. The amendments will streamline Subchapter C to establish a less-intrusive method of collecting and verifying the payment of producer charges due the Program.
Comments
Notice of proposed rulemaking was published at 25 Pa.B. 3345 (August 19, 1995), and provided for a 30-day public comment period.
Only two comment letters were received with respect to the notice of proposed rulemaking: one from a member of the Program Board and the other from the Independent Regulatory Review Commission (IRRC).
The Program Board member offered general comments in support of these amendments, noting that the amendments were long overdue and that it would save time and effort on the part of those involved in the producer charge collection process.
IRRC noted that §§ 104.25(a), 104.26(a) and 104.28(b) (relating to accounting and payment by sales agents; accounting and payment by producers; and exemptions) of the proposed amendments would require producers and sales agents to retain certain records for 5 years. IRRC recommended this required record retention period be shortened to 2 or 3 years. For the reasons which follow, the Department accepts IRRC's comment in part, and has shortened the 5-year record retention period to 4 years.
The Department does not view the record retention requirements at §§ 104.25(a), 104.26(a) and 104.28(b) as placing some new burden on sheep and lamb producers and sales agents. The records required under these sections are the type of records that would be kept in the ordinary course of business.
In addition, the records required under these sections are not so voluminous as to constitute a burden upon those who are required to keep them. The Department views the fact that no producer or sales agent offered any comment against the proposed 5-year record retention period as some evidence that this is the case.
The Department reviewed record retention requirements imposed under other commodity marketing programs. The Pennsylvania Apple Marketing Program requires (at § 104.6(a)) apple sales agents to retain records of certain transactions ''. . . for at least 3 marketing seasons beyond the marketing season within which the transaction occurred.'' In effect, this record retention period is more than 3 years and less than 4 years.
The Pennsylvania Vegetable Marketing and Research Program requires (at §§ 104.55 and 104.56(b)) vegetable producers and sales agents to retain records for at least 2 growing seasons beyond the growing season within which particular events occur. In effect, this record retention period is more than 2 years and less than 3 years.
Based on the foregoing, the Department and the Program Board believe it reasonable to accommodate IRRC's concerns and decrease the required record retention period from the 5-year period originally proposed. To this end, §§ 104.25(a), 104.26(a) and 104.28(b) now require that the specific records referenced in those sections be retained for 4 years. The Program Board voted its approval of this 4-year record retention period on November 30, 1995.
Fiscal Impact
Commonwealth
The amendments will impose no costs and have no fiscal impact upon the Commonwealth.
Political Subdivisions
The amendments will impose no costs and have no fiscal impact upon political subdivisions.
Private Sector
The amendments will decrease the costs of compliance which were imposed upon the private sector by the current regulations. The recordkeeping and paperwork requirements of Subchapter C would be decreased and, presumably, this would result in some tangible savings among sheep and lamb producers and sales agents.
General Public
The amendments will impose no costs and have no fiscal impact upon the general public.
Paperwork Requirements
The amendments are not expected to result in an appreciable increase in paperwork.
Contact Person
Further information is available by contacting the Department of Agriculture, Attention: Michael Varner, Bureau of Market Development, 2301 North Cameron Street, Harrisburg, PA 17110-9408.
Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)) on August 9, 1995, the Department submitted a copy of the notice of proposed rulemaking published at 25 Pa.B. 3345 (August 19, 1995) to IRRC and to the Chairpersons of the House and Senate Standing Committees on Agriculture and Rural Affairs for review and comment. In compliance with section 5(b.1) of the Regulatory Review Act, the Department also provided IRRC and the Committees with copies of the comments received, as well as other documentation.
In preparing these final-form regulations, the Department has considered all comments received from IRRC, the Committees and the public.
These final-form regulations were deemed approved by the House Committee on May 6, 1996, was deemed approved by the Senate Committee and were approved by IRRC on May 16, 1996, in accordance with section 5(c) of the Regulatory Review Act.
Findings
The Department finds that:
(1) Public notice of intention to adopt the amendments encompassed by this order has been given under sections 201 and 202 of the act of July 31, 1968 (P. L. 769, No. 240) (45 P. S. §§ 1201 and 1202) and the regulations thereunder, 1 Pa. Code §§ 7.1 and 7.2.
(2) A public comment period was provided as required by law and that all comments received were considered.
(3) The modifications that were made to these amendments in response to comments received do not enlarge the purpose of the proposed amendments published at 25 Pa.B. 3345.
(4) The adoption of the amendments in the manner provided by this order is necessary and appropriate for the administration of the authorizing statute.
Order
The Department, acting under the authorizing statute, orders that:
(a) The regulations of the Department, 7 Pa. Code Chapter 104, are amended by amending §§ 104.21, 104.22, 104.24, 104.29 and 104.30 to read as set forth at 25 Pa.B. 3345 (August 19, 1995) and by amending §§ 104.25, 104.26 and 104.28 to read as set forth in Annex A.
(b) The Secretary of Agriculture shall submit this order, 25 Pa.B. 3345 and Annex A to the Office of General Counsel and to the Office of Attorney General for approval as required by law.
(c) The Secretary of Agriculture shall certify this order, 25 Pa.B. 3345 and Annex A and deposit them with the Legislative Reference Bureau as required by law.
(d) This order shall take effect upon publication in the Pennsylvania Bulletin.
CHARLES C. BROSIUS,
Secretary(Editor's Note: For the text of the order of the Independent Regulatory Review Commission relating to this document, see 26 Pa.B. 2669 (June 1, 1996).)
Fiscal Note: 2-96. No fiscal impact; (8) recommends adoption.
Annex A
TITLE 7. AGRICULTURE
PART IV. MARKETS
CHAPTER 104. ENFORCEMENT OF MARKETING PROGRAMS
Subchapter C. SHEEP AND LAMB MARKETING PROGRAM § 104.25. Accounting and payment by sales agents.
(a) Required records. A sales agent whose business is located within this Commonwealth shall maintain, for 4 years, a record of the following information with respect to each producer from whom the sales agent purchases sheep or lambs, or on whose behalf he sells sheep or lambs:
(1) The name and address of the producer.
(2) The number of head of sheep or lambs subject to the producer charge.
(3) The number of head of sheep or lambs exempt from the producer charge.
(4) The amount of money collected or deducted as producer charges owed the Program.
(b) Inspection of records. The records described in subsection (a) shall be made available for inspection, during reasonable business hours or at some mutually agreeable time, upon the written request of the Program.
(c) Accounting by collecting sales agents. If a collecting sales agent whose business is located within this Commonwealth purchases sheep or lambs from a producer or sells sheep or lambs on behalf of a producer within a particular calendar month, the collecting sales agent shall submit a monthly report and remittance form with respect to that calendar month, together with payment of the producer charges owed the Program as reflected on that form, to the Program no later than the 15th day of the subsequent calendar month. Monthly report and remittance forms shall be provided by the Program upon request of the collecting sales agent. The monthly report and remittance form shall reflect the time period to which it is applicable, the total number of sheep or lambs marketed, the total number of sheep or lambs exempt from producer charges under § 104.28 (relating to exemptions), the total number of sheep or lambs subject to producer charges and the total producer charges due the Program. The collecting sales agent shall sign a verification that the contents of the monthly report and remittance form are true and accurate. The monthly report and remittance form and the payment of producer charges owed the Program shall be submitted by mail or delivery to:
Commonwealth of Pennsylvania
Department of Agriculture
Bureau of Market Development
Attn: PA Sheep and Lamb Marketing Program
2301 North Cameron Street
Harrisburg, PA 17110-9408§ 104.26. Accounting and payment by producers.
(a) Required records. A producer shall maintain, for 4 years, a record of the following information with respect to sheep or lambs which the producer sells, whether the sale is through the producer or a sales agent:
(1) The name and address of the person to whom the sheep or lambs were sold.
(2) The date of the sale.
(3) The number of head of sheep or lambs sold.
(4) Whether the producer charge owed the Program with respect to the sale was deducted or collected by a collecting sales agent or whether it is being submitted by the producer contemporaneously with its producer record form.
(b) Inspection of records. The information required in subsection (a) shall be made available for inspection, during business hours or at some mutually agreeable time, upon the written request of the Program.
(c) Accounting. A producer shall submit its producer record form for a particular calendar year, together with payment of the producer charges owed the Program as reflected on that form, to the Program by January 20 of the subsequent calendar year. The producer record form shall be provided by the Program upon request of the producer. The form shall clearly identify the producer, the time period to which it is applicable, the total number of sheep or lambs marketed, the total number of sheep or lambs exempt from producer charges under § 104.28 (relating to exemptions), the total number of sheep or lambs subject to producer charges and the total production charges due the Program. A producer may submit two producer record forms with respect to a particular calendar year, the first of which shall cover sales from January 1 through June 30 and be submitted by July 20, and the second of which shall cover sales from July 1 through December 31 and be submitted by January 20 of the subsequent calendar year. The producer shall sign a verification that the contents of the producer record form are true and accurate. The producer record form and the payment of producer charges owed the Program shall be submitted by mail or delivery to the address in § 104.25(c) (relating to accounting and payment by sales agents).
§ 104.28. Exemptions.
(a) Generally. A person who produces sheep or lambs or causes sheep or lambs to be produced within this Commonwealth is exempt from the requirement that he pay producer charges with respect to the following:
(1) Sheep or lambs which have not been within this Commonwealth for 30 consecutive days immediately prior to sale or slaughter.
(2) Sheep or lambs that were sold, transferred or slaughtered for other than business purposes. Purposes that are ''other than business purposes'' include the sale or transfer of sheep or lambs, without profit, for use as pets or as zoo or exhibition animals or the donation of sheep or lambs for charitable purposes such as feeding needy individuals.
(b) Records supporting exemptions. To claim an exemption, the producer shall retain, for 4 years, records to demonstrate that a particular sheep or lamb met one of the requirements of subsection (a). These records shall be made available for inspection, during business hours or at some mutually agreeable time, upon the written request of the Program.
[Pa.B. Doc. No. 96-954. Filed for public inspection June 14, 1996, 9:00 a.m.]
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