DEPARTMENT OF AGRICULTURE [7 PA. CODE CH. 104] Sheep and Lamb Marketing Program; Wine Marketing and Research Program [34 Pa.B. 561] The Department of Agriculture (Department) proposes to delete Subchapter C (relating to sheep and lamb marketing program) and add Subchapter F (relating to wine marketing and research program) to read as set forth in Annex A. The Pennsylvania Sheep and Lamb Marketing Program (Sheep Program) is no longer in existence. Therefore, Subchapter C is unnecessary. Proposed Subchapter F provides the Pennsylvania Wine Marketing and Research Program (Wine Program) needed regulatory authority, while providing affected wine producers guidance as to their obligations to the Wine Program.
Statutory Authority
The Agricultural Commodities Marketing Act (act) (3 Pa.C.S. §§ 4501--4513) provides the legal authority for this proposed rulemaking. Both the Sheep Program and the Wine Program are agricultural commodity programs established under authority of the act. Section 11 of the act (3 Pa.C.S. § 4511) authorizes the Department to promulgate regulations necessary to enforce the provisions of any marketing program established under its authority.
Purpose
The proposed rulemaking deletes Subchapter C. Due to the termination of the Sheep Program, Subchapter C serves no purpose.
The proposed rulemaking also affirms the obligations of affected wine producers with respect to the Wine Program, provides a mechanism for accounting and payment of producer charges and establishes a mechanism for the collection of producer charges from affected producers who do not pay their fair share to support the Wine Program.
Background
The act authorizes the establishment of an agricultural commodity marketing program through a referendum among affected producers of the agricultural commodity involved. The Wine Program was established through a referendum among persons who produce or sell wine under authority of a limited winery license issued in accordance with the Liquor Code (47 P. S. §§ 1-101--8-803).
The production of wine is closely regulated. Holders of limited winery licenses are required to report their wine production and sales to the Liquor Control Board. This production information assists the Wine Program in calculating the producer charges owed it by each affected wine producer. The producer charges are 15¢ per gallon of wine sold within a particular January 1--December 31 marketing season.
The proposed rulemaking emphasizes the obligation of an affected wine producer to account for and pay the appropriate producer charges to the Wine Program and provides the Wine Program a mechanism by which to pursue collection of unpaid producer charges.
Need for the Proposed Rulemaking
The proposed rulemaking is necessary for the operation of the Wine Program and makes extensive use of language from existing regulations for other act-based agricultural commodity marketing programs. The Department is satisfied of the need for the proposed rulemaking.
Overview of the Major Provisions of the Proposed Rulemaking
Proposed §§ 104.73 and 104.74 (relating to producer charges; and responsibility for payment of producer charge), respectively, set forth the formula for calculation of producer charge amounts and the responsibility of an affected wine producer to pay these charges.
Proposed § 104.75 (relating to accounting and payment) describes the annual production verification statement forms by which an affected wine producer is to verify the quantity of wine produced within a given marketing season. It also describes the procedures for payment of producer charges and allows for the imposition of a penalty of between $100 and $5,000 against affected producers who are delinquent with payment.
Affected Individuals and Organizations
There are approximately 70 holders of limited winery licenses at present. The proposed rulemaking affects these persons.
Fiscal Impact
Commonwealth--The proposed rulemaking imposes no costs and has no fiscal impact on the Commonwealth.
Political Subdivisions--The proposed rulemaking imposes no costs and has no fiscal impact on political subdivisions.
Private Sector--The proposed rulemaking imposes no costs and has no adverse fiscal impact upon the private sector. Although the proposed rulemaking references the 15¢ per gallon producer charge, the charge has been established through a referendum among affected producers in accordance with the provisions of the act. The proposed rulemaking repeats this existing obligation. The proposed rulemaking does not create it. The proposed rulemaking helps to fully fund the research and marketing efforts of the Wine Program. Although this is expected to have a favorable economic impact upon this Commonwealth's wine production industry, this benefit is not readily quantifiable.
General Public--The proposed rulemaking imposes no costs and has no adverse fiscal impact upon the general public.
Paperwork Requirements
The proposed rulemaking does not appreciably increase the paperwork burden of the Department, other government units or affected wine producers.
Effective Date
The proposed rulemaking will be effective upon final-form publication in the Pennsylvania Bulletin.
Sunset Date
There is no sunset date for the proposed rulemaking. The Department will review the efficacy of these regulations on an ongoing basis.
Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), on January 16, 2004, the Department submitted a copy of this proposed rulemaking and a copy of a Regulatory Analysis Form to the Independent Regulatory Review Commission (IRRC) and to the Chairpersons of the House and Senate Standing Committees on Agriculture and Rural Affairs. A copy of this material is available to the public upon request.
Under section 5(g) of the Regulatory Review Act, IRRC may convey any comments, recommendations or objections to the proposed rulemaking within 30 days of the close of the public comment period. The comments, recommendations or objections shall specify the regulatory review criteria which have not been met. The Regulatory Review Act specifies detailed procedures for review, prior to final publication of the rulemaking, by the Department, the General Assembly and the Governor of comments, recommendations or objections raised.
Public Comment Period/Contact Person
Interested persons are invited to submit written comments regarding the proposed rulemaking within 30 days following publication in the Pennsylvania Bulletin to the Department of Agriculture, Bureau of Market Development, 2301 North Cameron Street, Harrisburg, PA 17110-9408, Attn: Kyle Nagurny.
DENNIS C WOLFF,
SecretaryFiscal Note: 2-142. No fiscal impact; (8) recommends adoption.
Annex A TITLE 7. AGRICULTURE PART IV. BUREAU OF MARKET DEVELOPMENT CHAPTER 104. ENFORCEMENT OF MARKETING PROGRAMS Subchapter C. [SHEEP AND LAMB MARKETING PROGRAM] (Reserved) (Editor's Note: As part of this proposed rulemaking, the Department is proposing to rescind §§ 104.21--104.30, which appear in 7 Pa. Code pages 104-10--104-16, serial pages (266924)--(266930).)
§§ 104.21--104.30. (Reserved).
Subchapter F. WINE MARKETING AND RESEARCH PROGRAM Sec.
104.71. Scope. 104.72. Definitions. 104.73. Producer charges. 104.74. Responsibility for payment of producer charge. 104.75. Accounting and payment. § 104.71. Scope.
This subchapter establishes the procedures by which persons who produce or sell wine under authority of a limited winery license shall account for and pay producer charges owed the Program.
§ 104.72. Definitions.
The following words and terms, when used in this subchapter, have the following meanings, unless the context clearly indicates otherwise:
ACMA--The Agricultural Commodities Marketing Act (3 Pa.C.S. §§ 4501--4513).
Board--The persons appointed by the Secretary from among those producers whose commodities are subject to the marketing and research program set forth in this subchapter.
Department--The Department of Agriculture of the Commonwealth.
Limited winery--The holder of a limited winery license issued under authority of the Liquor Code (47 P. S. §§ 1-101--8-803).
Marketing contract--Any contract or agreement between the Board and a person for the performance of service related to advertising, promotion, research, marketing, or other objectives in furtherance of the marketing and research program set forth in this subchapter.
Marketing season--
(i) The initial marketing season for purposes of this subchapter shall be from July 1, 2001, through December 31, 2001.
(ii) Thereafter, the marketing season shall be the period beginning January 1 of any year and extending through December 31 of the same year.
PLCB--The Pennsylvania Liquor Control Board.
Person--An individual, partnership, firm, corporation, association or any other business unit.
Producer--A person who produces or sells wine under authority of a limited winery license during a particular marketing season.
Program--The Pennsylvania Wine Marketing and Research Program.
Secretary--The Secretary of the Department.
§ 104.73. Producer charges.
The producer charges owed the Program shall be 15¢ per gallon of wine sold within a given marketing season, except in-State winery-to-winery sales in bond. In-State winery-to-winery sales in bond are exempt from charges. The producer charges may be changed by subsequent amendment of the Program in accordance with the referendum procedure in Chapter 103 (relating to referendums).
§ 104.74. Responsibility for payment of producer charge.
It is the responsibility of the producer to pay the appropriate producer charge owed the Program within the time period set forth in § 104.75(b) (relating to accounting and payment) and in the manner set forth in § 104.75(a).
§ 104.75. Accounting and payment.
(a) Annual production statement. The Program will provide a producer with annual production statement forms with which to verify the quantity of wine that it has produced within a particular marketing season. The producer shall provide the following information on the annual production statement and submit the form in accordance with this section:
(1) The name and address of the producer.
(2) The number of gallons of wine sold within the marketing season, or other time period designated by the Program.
(3) A calculation of the amount of producer charges owed the Program by the producer.
(b) Deadlines. The payment of the producer charges shall be postmarked and mailed, or actually delivered to the Program, by the first day of February immediately following the previous marketing season.
(c) Form of payment. Payments of producer charges shall be by check or money order made payable to the ''PA Wine Marketing Program.''
(d) Address. Payments of producer charges shall be mailed or delivered to:
Department of Agriculture,
Bureau of Market Development
Attn: Pennsylvania Wine Marketing Program
2301 North Cameron Street
Harrisburg, Pennsylvania 17110-9408.(e) Penalty for failure to account or pay. Producers who fail to mail or deliver the required producer charges owed the Program within 30 days of the due date, as described in subsection (b), shall be required to pay a penalty of at least $100 but not more than $5,000, and as nearly equivalent to 100% of the amount of the delinquent producer charges as is practicable. An action seeking the imposition of a penalty, plus payment of producer charges due the Program, may be brought in the appropriate magisterial district. A penalty imposed shall be in addition to the delinquent producer charges owed the Program.
[Pa.B. Doc. No. 04-176. Filed for public inspection January 30, 2004, 9:00 a.m.]
