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PA Bulletin, Doc. No. 02-1371

RULES AND REGULATIONS

Title 7--AGRICULTURE

MILK MARKETING BOARD

[7 PA. CODE CH. 151]

Calculation of Bonding Obligation

[32 Pa.B. 3893]

   The Milk Marketing Board (Board) amends § 151.9 (relating to calculation of bonding obligation) to read as set forth in Annex A, under authority of section 14 of the Milk Producers' Security Act (act) (31 P. S. § 626.14).

   Notice of proposed rulemaking was published at 30 Pa.B. 4253 (August 12, 2000) with an invitation to submit written comments within 30 days. The Board received no public comments. The Senate Committee on Agriculture and Rural Affairs and the House Agriculture and Rural Affairs Committee offered no comments, suggestions or objections to the proposed amendment. The Independent Regulatory Review Commission (IRRC) did offer comments, which are discussed as follows.

   In final-form rulemaking, the Board considered IRRC's comments and suggestions. In addition, the Board considered this final-form rulemaking and its purpose under Executive Order 1996-1, ''Regulatory Review and Promulgation.''

Purpose

   The principal purpose of the final-form rulemaking is to adjust the calculation of milk dealers' bonding obligations to reflect more accurately the volume of producer purchases during a 12-month period, thus providing greater economic protection for dairy farmers. The final-form rulemaking also updates the regulation by replacing a citation to the repealed Milk Producers' and Cooperative Security Funds Act with a citation to the successor act.

Comments

   IRRC offered three recommendations related to subsection (a). First, IRRC recommended that the citation to the act be removed from the final-form rulemaking; the Board believes it is necessary to leave the citation in the final-form rulemaking so that it is clear that this regulation addressed the bonding obligation contained in the act. Second, IRRC noted that there is no need to quote statutory language in the regulation; the Board removed the quote from section 7(c) of the act (31 P. S. § 626.7(c)) in the final-form rulemaking. Finally, IRRC recommended that, for greater clarity and readability, the final-form rulemaking should be written in the active voice; the Board has followed this recommendation as well, and the final-form amendment has been written in the active voice.

   IRRC also questioned the meanings of ''a purchase subject to minimum pricing fixed by the Board'' and ''a purchase not subject to minimum pricing fixed by the Board'' in subsection (b)(1) and (2). A ''purchase subject to minimum pricing fixed by the Board'' is a transaction between a milk dealer and a Commonwealth producer. A ''purchase not subject to minimum pricing fixed by the Board'' is another transaction between a milk dealer and a producer. This is a longstanding and well-settled distinction within the dairy industry, based on decades of enforcement and interpretation of the Milk Marketing Law (31 P. S. §§ 700j-101--700j-1302), that the Board does not think it is necessary to clarify the distinction in the final-form rulemaking.

Paperwork Estimates

   Section 151.9 will not substantially alter paperwork, accounting or reporting requirements already in place.

Effective Date

   This final-form rulemaking will become effective upon publication in the Pennsylvania Bulletin.

Sunset Date

   There is no sunset date.

Regulatory Review

   Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(1)), the Board submitted a copy of the notice of proposed rulemaking, published at 30 Pa.B. 4253, to IRRC and to the Senate Committee on Agriculture and Rural Affairs and the House Agriculture and Rural Affairs Committee for review and comment.

   Under section 5(c) of the Regulatory Review Act, the Board also provided IRRC and the House and Senate Committees with other documentation. In preparing this final-form regulation, the Board has considered the comments received from IRRC.

   Under section 5.1(d) of the Regulatory Review Act (71 P. S. § 745.5a(d)), on April 30, 2002, the final-form rulemaking was deemed approved by the House and Senate Committees. Under section 5.1(e) of the Regulatory Review Act, IRRC met on May 9, 2002, and approved the final-form rulemaking.

Contact Person

   The official responsible for information on the final-form rulemaking is Lynda J. Bowman, Executive Secretary, Milk Marketing Board, 2301 North Cameron Street, Harrisburg, PA 17110-9408, (717) 787-4194.

Findings

   The Board finds that:

   (1)  Public notice of the intention to adopt the final-form rulemaking was 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 promulgated thereunder in 1 Pa. Code §§ 7.1 and 7.2.

   (2)  A public comment period was provided as required by law and all comments were considered.

   (3)  The final-form rulemaking is necessary and appropriate for the administration of the act.

Order

   The Board, acting under authorizing statute, orders that:

   (a)  The regulations of the Board, 7 Pa. Code Chapter 151, are amended by amending § 151.9 to read as set forth in Annex A.

   (b)  The Board will submit this order and Annex A to the Office of Attorney General for review and approval as to legality and form as required by law.

   (c)  The Board shall certify this order and Annex A and deposit them with the Legislative Reference Bureau as required by law.

   (d)  The order shall take effect upon publication in the Pennsylvania Bulletin.

LYNDA J. BOWMAN,   
Secretary

   (Editor's Note:  For the text of the order of the Independent Regulatory Review Commission, relating to this document, see 32 Pa.B. 2646 (May 25, 2002).)

   Fiscal Note:  Fiscal Note 47-7 remains valid for the final adoption of the subject regulation.

Annex A

TITLE 7.  AGRICULTURE

PART VI.  MILK MARKETING BOARD

CHAPTER 151.  SECURITY FUNDS, BONDING AND ALTERNATIVE SECURITY

§ 151.9.  Calculation of bonding obligation.

   (a)  For the purpose of sections 7(c) and 8 of the Milk Producers' Security Act (act) (31 P. S. §§ 626.7(c) and 626.8), the Board will use the following method to ascertain the highest aggregate amount owed by the dealer to producers for a 40-day period during the preceding 12 months:

   (1)  Review the amount owed by the milk dealer to all its producers for each month in the preceding calendar year.

   (2)  Identify the 2 consecutive months in which the sum of the amounts owed was the highest.

   (3)  Divide the sum of the amounts owed from paragraph (2) by the total number of days in the 2 consecutive months.

   (4)  Multiply the quotient from paragraph (3) by 40.

   (b)  As used in sections 7(c) and 8 of the act and in subsection (a), ''amount owed'' has the following meanings:

   (1)  For a purchase subject to minimum pricing fixed by the Board, ''amount owed'' means the amount the milk dealer was required to pay the producer under the applicable Board order, even though the actual amount paid exceeded the Board-established minimum price.

   (2)  For a purchase not subject to minimum pricing fixed by the Board, ''amount owed'' means the actual amount the milk dealer lawfully paid the producer.

[Pa.B. Doc. No. 02-1371. Filed for public inspection August 9, 2002, 9:00 a.m.]


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