Department of Agriculture, Commodity Credit Corporation: Peanut Quota Buyout Program, GAO-03-217R, B-291496, October 15, 2002

Department of Agriculture, Commodity Credit Corporation: Peanut Quota Buyout Program, GAO-03-217R, B-291496, October 15, 2002

The Honorable Tom Harkin Chairman The Honorable Richard G. Lugar Ranking Minority Member Committee on Agriculture, Nutrition, and Forestry United States Senate

The Honorable Larry Combest Chairman The Honorable Charles W. Stenholm Ranking Minority Member Committee on Agriculture House of Representatives

Pursuant to section 801(a)(2)(A) of title 5, United States Code, this is our report on a major rule promulgated by the Department of Agriculture, Commodity Credit Corporation (CCC), entitled "Peanut Quota Buyout Program" (RIN: 0560-AG71). We received the rule on October 9, 2002. It was published in the Federal Register as a final rule on October 1, 2002. 67 Fed. Reg. 61470.

The final rule implements a peanut quota buyout program required by Title I of the Farm Security and Rural Investment Act of 2002 (the 2002 Act). The rule provides eligible peanut quota holders compensation for the lost value of their quotas.

Enclosed is our assessment of the CCC's compliance with the procedural steps required by section 801(a)(1)(B)(i) through (iv) of title 5 with respect to the rule. Our review indicates that the CCC complied with the applicable requirements.

If you have any questions about this report, please contact James W. Vickers, Assistant General Counsel, at (202) 512-8210. The official responsible for GAO evaluation work relating to the subject matter of the rule is Robert Robinson, Managing Director, Natural Resources and Environment. Mr. Robinson can be reached at (202) 512-3841.

signed

Kathleen E. Wannisky
Managing Associate General Counsel

Enclosure

cc: James R. Little
Administrator
Farm Service Agency
Department of Transportation

ENCLOSURE

ANALYSIS UNDER 5 U.S.C. Sec. 801(a)(1)(B)(i)-(iv) OF A MAJOR RULE ISSUED BY THE DEPARTMENT OF AGRICULTURE, COMMODITY CREDIT CORPORATION ENTITLED "PEANUT QUOTA BUYOUT PROGRAM" (RIN: 0560-AG71)

(i) Cost-benefit analysis

According to the Commodity Credit Corporation, eligible peanut quota holders will receive about $1.3 billion in compensation for the lost value of their quotas.

(ii) Agency actions relevant to the Regulatory Flexibility Act, 5 U.S.C. Secs. 603-605, 607, and 609

Since the final rule was not issued following a notice of proposed rulemaking, the requirements of the Regulatory Flexibility Act do not apply.

(iii) Agency actions relevant to sections 202-205 of the Unfunded Mandates Reform Act of 1995, 2 U.S.C. Secs. 1532-1535

The final rule does not contain either an intergovernmental or private sector mandate, as defined in title II, of more than $100 million in any one year.

(iv) Other relevant information or requirements under acts and executive orders

Administrative Procedure Act, 5 U.S.C. Secs. 551 et seq.

Section 1601(c) of the 2002 Act states that the final rule shall be issued without regard to the requirements of 5 U.S.C. 553.

Paperwork Reduction Act, 44 U.S.C. Secs. 3501-3520

Section 1601(c) of the 2002 Act states that the final rule shall be issued without regard to the requirements of the Paperwork Reduction Act.

Statutory authorization for the rule

The final rule is promulgated under the authority contained in Title I of the Farm Security and Rural Investment Act of 2002 (Pub. L. 107-171) and 7 U.S.C. 7201 et seq., 7959 and 15 U.S.C. 714b and 714c.

Executive Order No. 12866

The final rule was reviewed by the Office of Management and Budget and found to be an "economically significant" regulatory action under the order.