[Federal Register: July 02, 2003 (Volume 68, Number 127)]
[Notices]
[Pages 39478-39483]
From the Federal Register Online via GPO Access
[wais.access.gpo.gov]
DEPARTMENT OF AGRICULTURE
Foreign Agricultural Service
7 CFR Part 1580
RIN 0551-AA66
Trade Adjustment Assistance for Farmers
AGENCY: Foreign Agricultural Service.
ACTION: Proposed rule.
SUMMARY:
This proposed rule would implement Chapter 6 of
Title II of the Trade Act of 1974, as amended by Subtitle C of Title 1 of the
Trade Act of 2002 (P.L. 107-210) to establish a new program, Trade Adjustment
Assistance for Farmers. Under this program, the Department of Agriculture would
provide technical assistance and cash benefits to eligible producers of raw
agricultural commodities when the Administrator, Foreign Agricultural Service (FAS)
determines that increased imports have contributed importantly to a specific
price decline over five preceding marketing years. The proposed rule would
establish the procedure by which producers of raw agricultural commodities can
petition for certification of eligibility and apply for technical assistance and
adjustment payments.
DATES: Comments should be received on or before July 9, 2003, to be
assured of consideration.
FOR FURTHER INFORMATION CONTACT: Comments should be mailed or
delivered to Jean-Louis Pajot, Import Policies and Programs Division, Foreign
Agricultural Service, 1400 Independence Avenue, SW., STOP 1021, U.S. Department
of Agriculture, Washington, DC 20250-1021. Comments may also be e-mailed to Jean-Louis.Pajot@usda.gov.
Comments received may be inspected between 10 a.m. and 4 p.m. at room 5541-S,
1400 Independence Avenue, SW., Washington, DC 20250-1021.
FOR FURTHER INFORMATION CONTACT: Jean-Louis
Pajot at the address above, or telephone at 202-720-2916, or e-mail at Jean-Louis.Pajot@usda.gov.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
The proposed rule has been determined to be significant under E.O. 12866 and has been reviewed by the Office of Management and Budget.
Regulatory Flexibility Act
The Regulatory Flexibility Act ensures that regulatory and information requirements are tailored to the size and nature of small businesses, small organizations, and small governmental jurisdictions. This proposed rule will not have a significant economic impact on a substantial number of small farm operations. Participation in the program is voluntary. Direct and indirect costs are likely to be very small as a percentage of revenue and in terms of absolute costs. The minimal regulatory requirements impact large and small businesses equally, and the program's benefits should improve cash flow and liquidity for farmers participating in the program.
Paperwork Reduction Act
Summary: In accordance with the Paperwork Reduction Act of 1995, the Department intends to request approval by the Office of Management and Budget (OMB) of an information collection required to support the proposed rule establishing an adjustment assistance program for farmers. Copies of the information collection may be obtained from Kimberly Chisley, the Agency Information Collection Coordinator, at (202) 720-2568 or e-mail at Chisley@fas.usda.gov. To obtain program benefits, under this program, a group of raw agricultural commodity producers, or their duly authorized representative, must submit a petition to the Administrator for certification of eligibility to apply for adjustment assistance. The proposed rule contains an information collection that solicits data that is essential for the Administrator in making a determination on certification of eligibility for adjustment assistance. The information collection requires, to the maximum extent feasible, that a petition contain: a description of the raw agricultural product concerned; data on specific prices for the most recent marketing year; national average or regional prices for the commodity for the five preceding marketing years; data on increases in imports of a directly competing commodity; and an assessment of the impact of increased imports on domestic prices, including any supporting evidence that imports contributed importantly to a decline in domestic prices. Within 90 days after certification, a producer may submit an application for adjustment assistance benefits. The application contains an information collection that conforms to the requirements of section 296 regarding conditions that must be met to qualify for cash benefits. The application requires submission of: standard business information; the quantity of production in the year covered by the certification accompanied by supporting documentation; data on gross income and net farm income accompanied by supporting documentation; certification that an applicant has not received other cash benefits; and certification that an applicant has obtained information and technical assistance from the Extension Service to assist the applicant in adjusting to import competition.
Estimate of the Burden: The average estimated
public reporting burden is 14 hours.
Respondents: groups of farmers of raw agricultural commodities or their duly
authorized representatives.
Estimated Annual Number of Respondents: 500.
Estimated Number of Responses Per Respondent: 1.
Estimated Total Annual Burden on Respondents: 7,000 hours. Copies of the
information collection can be obtained from Kimberly Chisley, the Agency
Collection Coordinator, at (202) 720-2568.
Requests for comments:
Comments are invited on: (a) Whether the proposed collection of information is
necessary for the proper performance of the functions of the agency, including
whether the information will have practical utility; (b) the accuracy of the
agency's estimate of the burden of the proposed collection of information; (c)
ways to enhance the quality, utility and clarity of the information to be
collected; and (d) ways to minimize the burden of the collection of information
on those who are to respond, including through the use of automated, electronic,
mechanical, or other technological collection techniques or other forms of
information technology, or any other aspect of this collection of information.
Comments on issues covered by the Paperwork Reduction Act must be submitted
within 30 days of publication to be assured of consideration. Comments may be
sent to Jean-Louis Pajot, Import Policies and Program Division, FAS, 1400
Independence Avenue, Stop 1021, SW., Washington, DC 20520-1021. All responses to
this notice will be summarized and included in the request for OMB approval. All
comments will also be a matter of public record. Persons with disabilities who
require an alternative means for communication of information (Braille, large
print, audiotape, etc.) should contact the USDA Target Center at (202) 720-2600
(voice and TDD).
FAS is committed to compliance with the Government Paperwork Elimination Act (GPEA), which requires Government agencies, in general, to provide the public the option of submitting information or transacting business electronically to maximum extent possible. Electronic submission of the information collection will be implemented before October 2003 in compliance with the GPEA. The Department will request OMB approval of forms that are being developed for electronic submission of the information collection, and issue a Federal Register notice soliciting public comments on the requested revision of the information collection to provide for submission of the information collection on electronic forms. All public comments received will be considered prior to implementation of an electronic reporting system, and will also become a matter of public record. Copies of that information collection will be made available from Kimberly Chisley, the Agency Information Collection Coordinator, at (202)720-2568 or e- mail at Chisley@fas.usda.gov.
Executive Order 12988
This proposed rule has been reviewed under Executive Order 12988. The provisions
of this proposed rule would not have preemptive effect with respect to any State
or local laws, regulations, or policies which conflict with such provision or
which otherwise impede their full implementation. The proposed rule would not
have retroactive effect. Before any judicial action may be brought regarding
this rule, all administrative remedies must be exhausted.
National Environmental Policy Act
The Administrator has determined that this action will not have a significant effect on the quality of the human environment. Therefore, neither an Environmental Assessment nor an Environmental Impact Statement is necessary for this proposed rule.
Executive Orders 12372, 13083 and 13084, and the Unfunded Mandates Reform Act (P. L. 104-4)
These Executive Orders and Public Law 104-4 require consultation with State and local officials and Indian tribal governments. This proposed rule does not impose an unfunded mandate or any other requirement on State, local or tribal governments. Accordingly, these programs are not subject to the provisions of Executive Order 12372, Executive Order 13083, and Executive Order 13084, or the Unfunded Mandates Reform Act.
Executive Order 12630
This Order requires careful evaluation of governmental actions that interfere with constitutionally protected property rights. This proposed rule would not interfere with any property rights and, therefore, does not need to be evaluated on the basis of the criteria outlined in Executive Order 12630.
Background
The Trade Act of 2002 (P.L. 107-210) amended the
Trade Act of 1974 (19 U.S.C. 2551, et seq.) to add a new chapter 6, which
establishes a program of trade adjustment assistance for farmers, providing both
technical assistance and cash benefits to producers. The statute authorizes an
appropriation of not more than $90 million for each fiscal year 2003 through
2007 to carry out the program.
Under this proposed rule, a group of agricultural commodity producers may
petition the Administrator of the Foreign Agricultural Service (FAS) for trade
adjustment assistance from mid-August through the end of January. FAS will first
review the petition for appropriateness, completeness, and timeliness, before
publishing a notice in the Federal Register that it has been received. The
Economic Research Service (ERS) will then conduct a market study to verify the
decline in producer prices, and to assess possible causes, taking due account of
any special factors which may have affected prices of the articles concerned,
including imports, exports, production, changes in consumer preferences, weather
conditions, diseases, and other relevant issues. ERS will report its findings to
the FAS Administrator, who will then determine whether or not the group is
eligible for trade adjustment assistance. If the national average price in the
most recent marketing year for the commodity produced by the group is equal to
or less than 80 percent of the average of the national average prices in the
preceding 5 marketing years and that increases in imports of that commodity
contributed importantly to the decline in price, the Administrator will certify
the group as eligible for trade adjustment assistance.
Upon certification, producers have 90 days to contact the Farm Service Agency (FSA)
to apply for assistance. As soon as they apply, they are eligible to receive at
no cost a technical assistance package specifically tailored for their needs by
the Extension Service. Depending on the commodity and the region, the Extension
Service package may include technical publications in print or on-line, group
seminars and presentations, and one-on-one meetings.
Producers, who receive the technical assistance and also satisfy personal and
farm income limits, are eligible for TAA payments. If the funding authorized by
Congress is insufficient to pay 100 percent of all TAA claims during the fiscal
year, payments will be prorated and issued after June 15, the last possible date
for producers to file a TAA application. Producers may petition for adjustment
assistance in subsequent years. Petitions will be reviewed and approved if
prices remain at or below the same 80 percent threshold as the initial year of
adjustment assistance, and if imports have continued to increase and contributed
importantly to the decline in prices.
The Department invites additional comments on all aspects of the proposed rule
including: eligibility requirements, including the coverage of aquaculture;
unintended market consequences of the program to producers, importers, buyers
and consumers; timing and prorating of adjustment payments when funding may be
insufficient; petitions on behalf of producers within regions of the United
States; marketing periods of less than 12 months; and less restrictive
alternatives to the proposed rule that would address the intent of the
program.
List of Subjects in 7 CFR Part 1580
Agricultural commodities imports; reporting and record keeping requirements; and
trade adjustment assistance.
Proposed Rule
Accordingly, it is proposed to amend title 7 of the Code of Federal
Regulations by adding a new part 1580, to read as follows:
PART 1580--TRADE ADJUSTMENT ASSISTANCE FOR FARMERS
Sec. 1580.101 General statement.
1580.102 Definitions.
1580.201 Petitions for trade adjustment assistance.
1580.202 Hearings, petition reviews, and amendments.
1580.203 Determination of eligibility and certification by the
Administrator.
1580.301 Application for trade adjustment assistance.
1580.302 Technical assistance and services.
1580.303 Adjustment assistance payments.
1580.401 Subsequent qualifying year eligibility.
1580.501 Administration.
1580.502 Maintenance of records, audits and compliance.
1580.503 Debarment and suspension.
1580.504 Fraud and recovery of overpayments.
1580.505 Appeals.
1580.601 Implementation.
1580.602 Paperwork Reduction Act assigned number.
Authority: 19 U.S.C. 2401.
Sec. 1580.101 General statement.
This part provides regulations for the Trade Adjustment Assistance for Farmers program. Under these provisions, producers of agricultural commodities may petition the Department of Agriculture for eligibility to apply for trade adjustment assistance based on criteria set forth in the Trade Act of 1974, as amended by the Trade Act of 2002 (19 U.S.C. 2251, et seq.). If the Administrator determines that the national average price for a commodity is less than 80 percent of the preceding 5-year average and that an increase in imports has contributed importantly to the decline in commodity prices, the producers may apply for technical assistance and cash benefits under the program.
Sec. 1580.102 Definitions.
As used in the part, the following terms
mean:
Adjusted gross income means income as defined in 7 CFR 1400.601.
Administrator means the Administrator of the Foreign Agricultural Service (FAS).
Agricultural commodity means any commodity in its raw or natural state found in
chapters 1, 4, 5, 6, 7, 8, 10, 12, 14, 23, 24, 41, 51, and 52 of the Harmonized
Tariff Schedule of the United States (HTS), and chapter 3 of the HTS with
respect to aquaculture products.
Articles like or directly competitive generally means products falling under the
same HTS number used to identify the agricultural commodity in the petition. A
``like'' product means substantially identical in inherent or intrinsic
characteristics, and the term ``directly competitive'' means those articles
which are substantially equivalent for commercial purposes, that is, are adapted
to the same uses and are essentially interchangeable therefore.
Authorized representative means an association of agricultural commodity
producers.
Certification date means the date on which the Administrator announces in the
Federal Register or by Department news release, whichever comes first, a
certification of eligibility to apply for adjustment assistance.
Contributed importantly means a cause which is important, but not necessarily
more important than any other cause.
Department means the U.S. Department of Agriculture.
Deputy Administrator means the Deputy Administrator of the Farm Service Agency (FSA).
Extension Service means the Cooperative State Research, Education, and Extension
Service of the U.S. Department of Agriculture.
Family member means an individual to whom a person is related as spouse, lineal
ancestor, lineal descendent, or sibling, including:
(1) Great grandparent;
(2) Grandparent;
(3) Parent;
(4) Child, including legally adopted children;
(5) Great grandchildren;
(6) Sibling of the family member in the farming operation; and
(7) Spouse of a person listed in paragraphs (1) through (6) of this
definition.
Farm Service Agency (FSA) means the Farm Service Agency of the U.S. Department
of Agriculture.
Filing date means the date that a notice of petition is published in the Federal
Register.
Group of producers means three or more producers who are not members of the same
family.
Impacted area means one or more States of the United States.
Marketing year means the marketing season or year as defined by National
Agriculture Statistic Service (NASS), or a specific period as proposed by the
petitioners and certified by the Administrator.
National average price means the average price paid to producers for an
agricultural commodity in a marketing year as determined by the
Administrator.
Net farm income means net farm profit or loss reported on Internal Revenue
Service Schedule F (Form 1040) and Form 4835 for the year that most closely
corresponds with the marketing year under consideration.
Person means an individual, partnership, joint stock owner, corporation,
association, trust, estate, or any other legal entity as defined in 7 CFR
1400.3.
Producer means a person who is an owner, operator, landlord, tenant, or
sharecropper, who shares in the risk of producing a crop and who is entitled to
share in the crop available for marketing from the farm.
Raw or natural state means unaltered by any process other than cleaning,
grading, coating, sorting, trimming, mixing, conditioning, drying, dehulling,
shelling, chilling, cooling, blanching or fumigating.
United States means the 50 States of the United States, the District of
Columbia, and Puerto Rico.
Sec. 1580.201 Petitions for trade adjustment assistance.
(a) A group of agricultural commodity producers
in the United States or their authorized representative may file a petition for
trade adjustment assistance.
(b) Filings may be written or electronic, as provided for by the Administrator,
and submitted to FAS from August 17 through January 31. FAS shall not accept a
petition received after January 31 but will return it to the sender. If January
31 falls on a weekend, the petition will be accepted the next business
day.
(c) Petitions shall include the following information.
(1) Name, business address, phone number, and email address (if available) of
each producer in the group, or their authorized representative. A petition filed
by a group shall identify a contact person for the group.
(2) The agricultural commodity and its Harmonized Tariff Schedule of the United
States (HTS) number.
(3) The production area represented by the group or its authorized
representative. The petitioners shall indicate if they are filing on behalf of
all producers in the United States, or if they are filing solely on behalf of
producers in a specifically identified impacted area. In the latter case, at
least one member of the group must reside in each State within the impacted
area, or the authorized representative must have members residing in each State
within the impacted area.
(4) The beginning and ending dates for the marketing year during which domestic
prices were affected by imports. A petition may be filed for only the most
recent marketing year for which national average prices are available.
(5) A justification statement explaining why the petitioners should be
considered eligible for adjustment assistance.
(6) Price data supporting the petition.
(i) If the petition is filed on behalf of all producers of the agricultural
commodity in the United States, the Administrator shall use national average
prices compiled by the National Agricultural Statistics Service (NASS), whenever
possible. If NASS does not compile price data for the commodity, the petitioners
shall provide national average prices for the marketing year under review and
for the previous five marketing years, and identify the source of the price
series.
(ii) If the petition is filed on behalf of producers in a specifically
identified impacted area, the petitioners shall provide national average prices
for the impacted area for the marketing year under review and for the previous
five marketing years, and identify the source of the price series.
(iii) The Administrator may request petitioners to provide records to support
their national average price data.
(d) Once the petition is filed, the Administrator shall determine if it meets
the requirements of Sec. 1580.201(c), and if so, publish notice in the Federal
Register that a petition has been received and that an investigation has begun.
The notice shall identify the agricultural commodity, including any like or
directly competitive commodities, the marketing year being investigated, the
price series being used, and the production area covered by the petition. If the
petition does not meet the requirements of Sec. 1580.201(c), the Administrator
shall notify as soon as possible the contact person for the group or the
authorized representative of the deficiencies.
Sec. 1580.202 Hearings, petition reviews, and amendments.
(a) If the petitioner, or any other person(s)
found by the Administrator to have a substantial interest in the proceedings,
submits not later than 10 days after the filing date a request for a hearing,
the Administrator shall provide for a public hearing and afford such interested
person an opportunity to be present, to produce evidence, and to be heard.
(b) If the petitioner, or any other person(s) having an interest in the
proceedings takes issue with any of the information published in the Federal
Register concerning the petition, they may submit to the Administrator their
comments in writing or electronically for consideration by the Administrator not
later than 10 days after the filing date.
(c) A producer residing outside the impacted area identified in a petition may
file to become a party to the petition by fulfilling the requirements of Sec.
1580.201(c) within 10 days of the filing date. The Administrator may amend the
original petition to expand the impacted area and include the additional filer,
or consider it a separate filing.
(d) The Administrator shall publish in the Federal Register as soon as possible
any changes to the original notice resulting from any actions taken under this
section.
Sec. 1580.203 Determination of eligibility and certification by the Administrator.
(a) As soon as practicable after the filing date,
but in any event not later than 40 days after that date, the Administrator shall
determine whether the petitioners satisfy the following conditions for
adjustment assistance.
(1) The national average price for the agricultural commodity for the marketing
year under review is equal to or less than 80 percent of the average of the
national average prices for the 5 marketing years preceding the most recent
marketing year, and
(2) Increases in imports of articles like or directly competitive with the
agricultural commodity contributed importantly to the decline in price described
in paragraph (a)(1) of this section.
(b) If the Administrator determines that the above conditions have been
satisfied, the producers covered by the petition shall be certified as eligible
for adjustment assistance.
(c) Upon making a determination, whether affirmative or negative, the
Administrator shall promptly publish in the Federal Register a summary of the
determination, together with the reasons for making the determination.
(d) In addition, the Administrator shall notify producers covered by a
certification how to apply for adjustment assistance. Notification methods may
include direct mailings to known producers, messages to directly affected
producer groups and organizations, electronic communications, internet web site
notices, and use of broadcast and print media.
(e) Whenever a group of agricultural producers is certified as eligible for
assistance, the Administrator shall use the occasion to notify and inform other
producers about the Trade Adjustment Assistance Program and how they may
petition for adjustment assistance.
Sec. 1580.301 Application for trade adjustment assistance.
(a) Only producers covered by a certification of
eligibility may apply for adjustment assistance. Producers may request advice
from FSA regarding the preparation and submission of their applications.
(b) An eligible producer may submit an application for adjustment assistance at
any time after the certification date but not later than 90 days after the
certification date. If the 90-day application period ends on a weekend or legal
holiday, the producer may apply the following business day.
(c) Applications shall include: (1) The name and legal address of applicant. (2)
Contact information, i.e., mailing address, phone and email address. (3) The
producer's identification number or Federal Income Tax number. (4) The amount of
the agricultural commodity produced in the most recent marketing year supported
by documentation acceptable to FSA.
(d) Upon submitting their application, producers shall be immediately eligible
to request trade adjustment technical assistance from the Extension Service at
no cost.
(e) Producers able to furnish their applications with all the following
certifications shall be eligible for adjustment assistance payments: (1)
Certification that technical assistance from the Extension Service under Sec.
1580.302 has been received. (2) Certification that cash benefits have not been
received under any of the provisions of the Trade Act of 1974, as amended, other
than those permitted under this part. (3) Certification that adjustment
assistance payments have not exceeded the $10,000 limitation for the Federal
fiscal year. (4) Certification that net farm income is less than that for the
latest year in which no adjustment assistance payment was received. (5)
Certification that their average adjusted gross income, as determined in
accordance with 7 CFR 1400.601, for the 3 preceding taxable years does not
exceed $2,500,000. (6) To comply with certifications in (e)(4) and (e)(5) of
this section, an applicant shall provide either-- (i) Supporting documentation
from a certified public accountant or attorney, or (ii) Relevant documentation
and other supporting financial data, such as financial statements, balance
sheets, and reports prepared for or provided to the Internal Revenue Service or
another U.S. Government agency.
(f) Persons legally authorized to execute program documents for estates or
trusts will be accepted only if such person furnishes evidence of the authority
to execute such documents.
Sec. 1580.302 Technical assistance and services.
(a) Any producer of an agricultural commodity
covered by a certification of eligibility may apply for and receive information
and technical assistance from the Extension Service that will assist in
adjusting to import competition and be at no cost to the producer.
(b) To qualify for technical assistance, producers shall apply under Sec.
1580.301.
(c) Producers shall have an opportunity to meet at least once with an Extension
Service employee within 180 days of petition certification to receive
information regarding the feasibility and desirability of substituting one or
more alternative commodities for the adversely affected agricultural commodity
and to receive technical assistance to lower costs associated with producing and
marketing the adversely affected agricultural commodity. The Extension Service
shall provide to producers written confirmation of all technical assistance
meetings. Producers shall also have access to technical information provided in
writing and electronically.
(d) Producers shall also be provided information concerning procedures for
applying for and receiving other Federal assistance and services available to
workers facing economic distress.
(e) Producers shall be entitled to employment services and training benefits
under trade adjustment assistance for workers managed by the U.S. Department of
Labor.
Sec. 1580.303 Adjustment assistance payments.
(a) Applicants shall satisfy by September 30 all
conditions of Sec. 1580.301 to qualify for adjustment assistance payments.
(b) The FSA office shall issue a payment to a producer that is equal to the
product of the amount of the agricultural commodity produced in the most recent
marketing year multiplied by one-half the difference between-- (1) an amount
equal to 80 percent of the average of the national average prices of the
agricultural commodity covered by the petition for the 5 marketing years
preceding the most recent marketing year, and
(2) the national average price of the agricultural commodity for the most recent
marketing year.
(c) The maximum amount of payments under this part that a producer may receive
in any 12-month period shall not exceed $10,000.
(d) The total amount of payments made to a producer may not exceed during any
crop year the limitation on counter-cyclical payments set forth in section
1001(c) of the Food Security Act of 1985 (7 U.S.C. 1308(c)).
(e) Any person who may be entitled to a payment may assign their rights to such
payment in accordance with 7 CFR part 1404 or successor regulations as
designated by the Department.
(f) In the case of death, incompetency, disappearance or dissolution of a person
that is eligible to receive benefits in accordance with this part, such person
or persons specified in 7 CFR part 707 may receive such benefits, as determined
appropriate by FSA.
(g) If the Administrator, FAS, determines in September that program funds may be
insufficient to meet the requirements for adjustment assistance payments under
this part during the coming fiscal year, FSA may suspend adjustment payments
until June 16 in order to prorate amounts owed producers.
(h) FSA will not make adjustment assistance payments to producers who have not
satisfied the technical assistance requirement.
Sec. 1580.401 Subsequent qualifying year
eligibility.
(a) Prior to the anniversary of a certification date, (1) groups and authorized
representatives that provided national average prices to justify their initial
certifications shall provide the Administrator national average prices for the
most recent marketing year, and (2) the Administrator shall determine whether or
not-- (i) the national average price for the agricultural commodity produced by
the group for the most recent marketing year is equal to or less than 80 percent
of the average of national average prices for the 5 marketing years used to make
the first certification under Sec. 1580.203(a)(1), and (ii) further increases in
imports are contributing importantly to the decline in price.
(b) The Administrator shall promptly publish in the Federal Register the
determination with supporting justification statement.
(c) In the case of a re-certification, FSA shall notify producers that they may
be eligible to receive trade adjustment assistance for a subsequent qualifying
year.
(d) To qualify for assistance in subsequent qualifying years, producers shall--
(1) submit an application pursuant to Sec. 1580.301, and (2) contact the
Extension Service for technical adjustment assistance.
(e) The amount of an adjustment assistance payment during a qualifying year
shall be determined in the same manner as in the originating year, except that
the average national price shall be determined by using the 5-marketing-year
period used to determine the amount of cash benefits for the first
certification.
(f) An eligible producer who did not apply for adjustment assistance in the
initial year may apply pursuant to Sec. 1580.301.
Sec. 1580.501 Administration.
(a) The application process will be administered
under the general supervision of the Administrator, FSA, and shall be carried
out in the field by State and county FSA committees.
(b) State and county FSA committees and representatives do not have the
authority to modify or waive any of the provisions of this part.
(c) The State FSA committee shall take any action required by this part that has
not been taken by a county FSA committee. The State FSA committee shall also:
(1) Correct or require a county FSA committee to correct any action taken by
such county FSA committee that is not in accordance with this part; and (2)
Require a county FSA committee to withhold taking or reversing any action that
is not in accordance with this part.
(d) No delegation in this part to a State or county FSA committee shall prevent
the Deputy Administrator from determining any question arising under the program
or from reversing or modifying any determination made by a State or county FSA
committee.
(e) The Deputy Administrator may authorize the State and county committees to
waive or modify non-statutory deadlines or other program requirements in cases
where lateness or failure to meet such other requirements does not adversely
affect the operation of the program.
Sec. 1580.502 Maintenance of records, audits and compliance.
(a) Persons making application for benefits under
this program must maintain accurate records and accounts that will document that
they meet all eligibility requirements specified herein, as may be requested by
FSA. Such records and accounts must be retained for 2 years after the date of
the final payment to the producer under this program.
(b) At all times during regular business hours, authorized representatives of
FSA, the United States Department of Agriculture, or the Comptroller General of
the United States shall have access to the premises of the producer in order to
inspect, examine, and make copies of the books, records, and accounts, and other
written data as specified in paragraph (a) of this section.
(c) Audits of certifications of average adjusted gross income may be conducted
as necessary to determine compliance with the requirements of this subpart. As a
part of this audit, income tax forms may be requested and if requested, must be
supplied. If a producer has submitted information to FSA, including a
certification from a certified public accountant or attorney, that relied upon
information from a form previously filed with the Internal Revenue Service, such
producer shall provide FSA a copy of any amended form filed with the Internal
Revenue Service with 30 days of the filing.
(d) If requested in writing by FSA, the United States Department of Agriculture,
or the Comptroller General of the United States, the producer shall provide all
information and documentation the reviewing authority determines necessary to
verify any information or certification provided under this subpart, including
all documents referred to in Sec. 1580.301(c), within 30 days. Acceptable
production documentation may be submitted by facsimile, in person, or by mail
and may include copies of receipts, ledgers, income statements, deposit slips,
register tapes, invoices for custom harvesting, records to verify production
costs, contemporaneous measurements, truck scale tickets, and contemporaneous
diaries that are determined acceptable by the county committee. Failure to
provide necessary and accurate information to verify compliance, or failure to
comply with this subpart's requirements, will result in ineligibility for all
program benefits subject to this subpart for the year or years subject to the
request.
(e) All information provided to FSA for the purposes of determining compliance
with this part will remain confidential and not be subject to any request
submitted under the Freedom of Information Act.
Sec. 1580.503 Debarment and suspension.
The Government-wide Debarment and
Suspension (Nonprocurement) regulations and Government Requirements for
Drug-Free Workplace (Grants), 7 CFR part 3017--subparts A through E, apply to
this part. Sec. 1580.504 Fraud and recovery of overpayments.
(a) If the Administrator, FSA or a court of competent jurisdiction, determines
that any person has received any payment under this program to which the person
was not entitled, such person will be liable to repay such amount to the
Administrator, FSA. The Administrator, FSA may waive such repayment if it is
determined that: (1) The payment was made without fault on the part of the
person; and (2) Requiring such repayment would be contrary to equity and good
conscience.
(b) Unless an overpayment is otherwise recovered, or waived under paragraph (a),
the Administrator, FSA shall recover the overpayment by deductions from any sums
payable to such person.
(c) If the Administrator, FSA, or a court of competent jurisdiction, determines
that a person: (1) Knowingly has made, or caused another to make, a false
statement or representation of a material fact, or (2) Knowingly has failed, or
caused another to fail, to disclose a material fact, and, as a result of such
false statement or representation, or of such nondisclosure, such person has
received any payment under this program to which the person was not entitled,
such person shall, in addition to any other penalty provided by law, be
ineligible for any further payment under this program.
(d) Except for overpayments determined by a court of competent jurisdiction, no
repayment may be required, and no deduction may be made, under this section
until a determination and an opportunity for a fair hearing has been given to
the person concerned, and the determination has become final.
(e) Whoever makes a false statement of a material fact knowing it to be false,
or knowingly fails to disclose a material fact, for the purpose of obtaining or
increasing for himself or for any other person any payments authorized to be
furnished under this program shall be fined not more that $10,000 or imprisoned
for not more than 1 year, or both.
Sec. 1580.505 Appeals.
Any person may obtain reconsideration and review of determinations made with respect to applications for program benefits under this part in accordance with appeal regulations of the 7 CFR part 780. Sec. 1580.601 Implementation. Trade adjustment assistance is available for the most recent marketing year for which prices were available on February 3, 2003. Sec. 1580.602 Paperwork Reduction Act assigned number. The information collection requirements contained in these regulations (7 CFR part 1580) have been approved by the Office of Management and Budget under the provisions of 44 U.S.C. Chapter 35 and been assigned OMB control number xxxx-xxxx.
Dated: June 27, 2003.
A. Ellen Terpstra, Administrator,
Foreign Agricultural Service.
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