Title of Regulation: 2VAC5-260. Regulations Establishing the Virginia Quality Label (repealing 2VAC5-260-10 through 2VAC5-260-30).

Statutory Authority: § 3.2-4320 of the Code of Virginia.

Public Hearing Information: No public hearings are scheduled.

Public Comment Deadline: June 5, 2013.

Effective Date: June 21, 2013.

Agency Contact: Charles Green, Director, Division of Marketing, Department of Agriculture and Consumer Services, P.O. Box 1163, Richmond, VA 23218, telephone (804) 786-5447, FAX (804) 225-4539, TTY (800) 828-1120, or email charles.green@vdacs.virginia.gov.

Basis: Section 3.2-4320 of the Code of Virginia provides that it is unlawful to use the Virginia Quality Label or a label with the shield of the United States, except in accordance with regulations prescribed by the Marketing Director with the approval of the Virginia Department of Agriculture and Consumer Services Commissioner. In no case shall it be used upon the label, tag, seal, or container of the product of any farm, factory, mill or any other producing, processing, packing, preparing, or dressing establishment unless such product is processed, packed, prepared, or dressed under continuous official state or federal-state inspection.

Purpose: Virginia offers agricultural producers official grading services for agricultural commodities including fruits and vegetables, peanuts, soybeans and grain, livestock, poultry, and eggs. These grading and inspection services are based on official grades recommended or adopted by U.S. Department of Agriculture (USDA). Due to the adoption and utilization of USDA grade standards and the authority to adopt and utilize other nationally and internationally recognized grade standards for commodities grown in Virginia, a separate Virginia Quality Label is not necessary for the public's health, safety, or welfare.

Rationale for Using Fast-Track Process: Virginia Department of Agriculture and Consumer Services expects the repeal of these regulations to be noncontroversial because neither the agency nor the industry has utilized the Virginia Quality Label in at least 20 years.

Substance: Virginia Department of Agriculture and Consumer Services proposes to repeal 2VAC5-260, Regulations Establishing the Virginia Quality Label.

Issues: The repeal of 2VAC5-260, Regulations Establishing the Virginia Quality Label, poses no disadvantages to either the public or the Commonwealth of Virginia. For at least two decades, this label has not been used.

Department of Planning and Budget's Economic Impact Analysis:

Summary of the Proposed Amendments to Regulation. The Department of Agriculture and Consumer Services proposes to repeal the Regulations Establishing the Virginia Quality Label (2VAC5-260), which describes the Virginia Quality Label as consisting of an outline map of the State of Virginia to be used for designating inspected agricultural products.

Result of Analysis. The benefits likely exceed the costs for all proposed changes.

Estimated Economic Impact. The Commonwealth offers agricultural producers official grading services for agricultural commodities including fruits and vegetables, peanuts, soybeans and grain, livestock, poultry and eggs. These grading and inspection services are based on official grades recommended or adopted by the U.S. Department of Agriculture (USDA). Since Virginia adopted and utilizes USDA grade standards and retains the authority to adopt other grades or standards in addition to or different from those recommended or adopted by the USDA, a separate Virginia Quality Label is not necessary. According to the Department of Agriculture and Consumer Services, the Virginia Quality Label has not been used for at least two decades. Thus the proposed repeal of these regulations will have no impact beyond perhaps reducing some confusion.

Businesses and Entities Affected. No businesses or entities are significantly affected by the proposed repeal of these regulations.

Localities Particularly Affected. The proposed repeal of these regulations does not particularly affect specific localities.

Projected Impact on Employment. The proposed repeal of these regulations will not affect employment.

Effects on the Use and Value of Private Property. The proposed repeal of these regulations will not significantly affect the use and value of private property.

Small Businesses: Costs and Other Effects. The proposed repeal of these regulations will not significantly affect costs for small businesses.

Small Businesses: Alternative Method that Minimizes Adverse Impact. The proposed repeal of these regulations does not adversely affect small businesses.

Real Estate Development Costs. The proposed repeal of these regulations will not affect real estate development costs.

Legal Mandate. The Department of Planning and Budget (DPB) has analyzed the economic impact of this proposed regulation in accordance with § 2.2-4007.04 of the Administrative Process Act and Executive Order Number 14 (10). Section 2.2-4007.04 requires that such economic impact analyses include, but need not be limited to, a determination of the public benefit, the projected number of businesses or other entities to whom the regulation would apply, the identity of any localities and types of businesses or other entities particularly affected, the projected number of persons and employment positions to be affected, the projected costs to affected businesses or entities to implement or comply with the regulation, and the impact on the use and value of private property. Further, if the proposed regulation has an adverse effect on small businesses, § 2.2-4007.04 requires that such economic impact analyses include (i) an identification and estimate of the number of small businesses subject to the regulation; (ii) the projected reporting, recordkeeping, and other administrative costs required for small businesses to comply with the regulation, including the type of professional skills necessary for preparing required reports and other documents; (iii) a statement of the probable effect of the regulation on affected small businesses; and (iv) a description of any less intrusive or less costly alternative methods of achieving the purpose of the regulation. The analysis presented above represents DPB's best estimate of these economic impacts.

Agency's Response to Economic Impact Analysis: The Department of Agriculture and Consumer Services concurs with the analysis of the Department of Planning and Budget.

Summary:

Since Virginia has adopted and utilizes the U.S. Department of Agriculture (USDA) grade standards and retains the authority to adopt other grades or standards in addition to or different from those recommended or adopted by the USDA, a separate Virginia Quality Label is not necessary.