This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents. Prices of

new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

24853

Vol. 65, No. 83

Friday, April 28, 2000

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 46

[Docket No. FV99–361]

Perishable Agricultural Commodities

Act: Recognizing Limited Liability

Companies

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Final rule.

SUMMARY: The Department of

Agriculture (USDA) has amended the

regulations under the Perishable

Agricultural Commodities Act (PACA or

Act) to recognize a limited liability

company (LLC) as a legal entity, and

also to recognize each member of an

LLC, and/or any other person

authorized by the members to conduct

business on behalf of an LLC, as

‘‘responsibly connected’’ with the LLC,

as defined in the PACA.

EFFECTIVE DATE: May 30, 2000.

FOR FURTHER INFORMATION CONTACT:

Charles W. Parrott, Acting Chief, PACA

Branch, Fruit and Vegetable Programs,

AMS, USDA, Room 2095, So. Bldg., P.O.

Box 96456, Washington, DC 20090–

6456, phone (202) 720–2272. Email—

charles.parrott@usda.gov.

SUPPLEMENTARY INFORMATION: This

regulation is issued under authority of

section 15 of the PACA (7 U.S.C. 499o).

Background

The Perishable Agricultural

Commodities Act (PACA or Act)

establishes a code of fair trade practices

covering the marketing of fresh and

frozen fruits and vegetables in interstate

and foreign commerce. The PACA

protects growers, shippers, distributors,

and retailers dealing in those

commodities by prohibiting unfair and

fraudulent trade practices. In this way,

the law fosters an efficient nationwide

distribution system for fresh and frozen

fruits and vegetables, benefiting the

whole marketing chain from farmer to

consumer. USDA’s Agricultural

Marketing Service (AMS) administers

and enforces the PACA.

Any person who buys or sells

commercial quantities of fruits and

vegetables in interstate or foreign

commerce must be licensed under the

PACA. Under the Act and regulations,

the term ‘‘person’’ means any

individual, partnership, corporation,

association, or separate legal entity. 7

USC 499a(b)(1); 7 CFR 46.2(i). Separate

licenses are required for each person. A

person is designated as ‘‘responsibly

connected’’ with a firm under the PACA

if that person is affiliated as an owner,

as a partner in a partnership, or as an

officer, director or holder of more than

10 percent of the outstanding stock of a

corporation or association. 7 USC

499a(b)(9); 7 CFR 46.2(ff). In the event

that a licensee is found to have violated

the Act and USDA suspends or revokes

the firm’s license, then the licensee and

its ‘‘responsibly connected’’ principals

face PACA licensing and employment

restrictions which may include the

denial of a license, a prohibition on

employment with another PACA

licensee, or the requirement that a bond

be posted as a prerequisite to licensing

or employment in the fruit and

vegetable industry. 7 USC 499h.

Previously, the PACA regulations did

not specifically define a limited liability

company as a ‘‘person,’’ although USDA

policy was to recognize an LLC as a

separate legal entity, just as LLC’s are

recognized in most states, subject to

licensing under the PACA. The

regulatory amendments herein codify

that policy by expanding the current

regulations to include LLC’s under the

PACA, especially with regard to the

licensing of LLC’s and the responsibly

connected status of LLC members and

managers.

Comments

A proposed rule to amend PACA

regulations was published in the

Federal Register on October 25, 1999

(64 FR 57405). The proposal sought to

amend several of Title 7, Part 46, to

recognize an LLC as a legal entity, and

also to recognize each member of an

LLC, and/or any other person

authorized by the members to conduct

business on behalf of an LLC, as

‘‘responsibly connected’’ with the LLC,

as defined in the PACA. The proposal

also sought revision of an information

collection previously approved by the

Office of Management and Budget

(OMB). AMS received no comments,

and therefore, is making no changes to

the final rule.

Executive Orders 12866 and 12988

This final rule is issued under the

Perishable Agricultural Commodities

Act (7 U.S.C. 499 et seq.), as amended,

and has been determined to be not

significant for the purposes of Executive

Order 12866, and therefore, has not

been reviewed by OMB.

This final rule has been reviewed

under Executive Order 12988, Civil

Justice Reform and is not intended to

have retroactive effect. This final rule

will not preempt any State or local laws,

regulations, or policies, unless they

present an irreconcilable conflict with

this rule. There are no administrative

procedures that must be exhausted prior

to any judicial challenge to the

provisions of this rule.

Effects on Small Businesses

Pursuant to requirements set forth in

the Regulatory Flexibility Act (RFA) (5

U.S.C. 601 et seq., USDA has considered

the economic impact of this final rule

on small entities. The purpose of the

RFA is to fit regulatory actions to the

scale of businesses subject to such

actions in order that small businesses

will not be unduly or disproportionately

burdened. Small agricultural service

firms have been defined by the Small

Business Administration (13 CFR 121)

as those with less than 500 employees.

The PACA requires all businesses that

operate subject to its provisions to

maintain a license issued by USDA.

There are approximately 15,700 PACA

licensees, the majority of which may be

classified as small entities.

The amendments to the PACA

regulations recognize a limited liability

company (LLC) as a legal entity under

the PACA regulations, and revise the

definition of ‘‘responsibly connected’’

under the regulations to include any

member of an LLC, and/or any other

person authorized by the members to

conduct business on behalf of an LLC.

The LLC business structure has become

widely accepted throughout the United

States as a new legal entity and these

regulatory amendments clarify how

24854 Federal Register / Vol. 65, No. 83 / Friday, April 28, 2000 / Rules and Regulations

USDA deals with these entities and

their principals under the PACA.

Like a sole proprietorship,

partnership, corporation, or any other

separate legal entity, a LLC, whether a

small or large business, must obtain and

maintain a valid PACA license if it buys

or sells commercial quantities of fruits

and vegetables in interstate or foreign

commerce. AMS believes that this final

rule will have no more impact on an

LLC than the current PACA regulations

have on sole proprietorships,

partnerships, associations, or

corporations operating subject to the

PACA, whether large or small.

Since LLC’s are required to be

licensed under the PACA as a ‘‘separate

legal entity,’’ they are subject to

disciplinary actions by USDA for

violating the PACA and regulations.

Therefore, these regulatory amendments

mainly impact those persons USDA

considers as ‘‘responsibly connected’’

with the LLC. If USDA suspends or

revokes a firm’s license for PACA

violations, the firm and any person

found ‘‘responsibly connected’’ with the

firm are restricted for a certain period of

time from holding a PACA license or

from being employed with another

PACA licensee. These restrictions apply

to any firm which has been found to

have violated the PACA, regardless of

the firm’s size or type of ownership.

Given the preceding discussion, AMS

has determined that the provisions of

this final rule would not have a

significant economic impact on a

substantial number of small entities.

Paperwork Reduction Act

In compliance with Office of

Management and Budget (OMB)

regulations (5 CFR part 1320) which

implement the Paperwork Reduction

Act of 1995 (Pub. L. 104–13), the

information collection and record

keeping requirements covered by this

final rule were approved by OMB on

November 29, 1999, and expire on April

30, 2001.

List of Subjects in 7 CFR Part 46

Agricultural commodities, Brokers,

Penalties, Reporting and recordkeeping

requirements.

For the reasons set forth in the

preamble, 7 CFR part 46 is amended as

follows:

PART 46—[AMENDED]

1. The authority citation for part 46

continues to read as follows:

Authority: Sec. 15, 46 Stat. 537; 7 U.S.C.

499o.

2. In § 46.2, paragraphs (i) and (ff) are

revised to read as follows:

§ 46.2 Definitions.

* * * * *

(i) Person means any individual,

partnership, limited liability company,

corporation, association, or separate

legal entity.

* * * * *

(ff) Responsibly connected means

affiliation as individual owner, partner

in a partnership, member, manager,

officer, director or holder of more than

a 10 percent ownership stake in a

limited liability company, or officer,

director or holder of more than 10

percent of the outstanding stock of a

corporation or association.

3. § 46.4 is amended as follows:

a. Paragraphs (b)(3) and (b)(4) are

revised,

b. Paragraphs (b)(6)(ii) and (b)(6)(iii)

are removed,

c. Paragraph (b)(6)(iv) is redesignated

as paragraph (b)(6)(ii) and revised,

d. Paragraphs (b)(6)(v) and (b)(6)(vi)

are redesignated as paragraphs (b)(6)(iii)

and (b)(6)(iv), and

e. The introductory text of paragraph

(b)(6), and paragraph (c) are revised to

read as follows:

§ 46.4 Application for license.

* * * * *

(b) * * *

* * * * *

(3) Type of ownership. If a corporation

or limited liability company, the

applicant shall furnish the month, day,

and year incorporated or organized; the

State in which incorporated or

organized; the name in which

incorporated or organized; and the

address of the principal office. A limited

liability company shall also furnish a

copy of its articles of organization and

its operating agreement.

(4) Full legal name, all other names

used, if any, and home address of

owner. If a partnership, the applicant

shall furnish the legal names, all other

names used, if any, and home address

of all partners, indicating whether

general, limited, or special partners. If a

limited liability company, the applicant

shall furnish the full legal names, all

other names used, if any, and home

address of all members, managers,

officers, directors and holders of more

than 10 percent of the ownership stake,

and the percentage of ownership in the

company held by each such person. If

an association or corporation, the

applicant shall furnish the full legal

names, all other names used, if any, and

home address of all officers, directors

and holders of more than 10 percent of

the outstanding stock and the

percentage of stock held by each such

person. Minors shall also furnish the

full name and home address of their

guardian. If the applicant is a trust, the

name of the trust and the full name and

home address of the trustee must be

furnished. If the applicant is a limited

liability company and a member or

holder of more than 10 percent of the

ownership stake is a partnership,

another limited liability company,

corporation, association, or separate

legal entity, the applicant shall furnish

the full legal names and home address

of that member’s partners, members,

managers, directors, and officers.

* * * * *

(6) Whether the applicant, or in case

the applicant is a partnership, any

partner, or in case the applicant is a

limited liability company, any member,

manager, officer, director or holder of

more than 10 percent of the ownership

stake, or in case the applicant is an

association or corporation, any officer,

director, or holder of more than 10

percent of the outstanding stock, has

prior to the filing of the application:

(i) * * *

(ii) Within three years been

adjudicated or discharged as a bankrupt

or was an officer, director, stockholder,

partner, member, manager or owner of

a firm adjudicated or discharged as a

bankrupt. * * *

* * * * *

(c) The application shall be signed by

the owner, all general partners, or in

case the applicant is a limited liability

company, a member or manager, or in

case the applicant is an association, or

corporation, a duly authorized officer.

* * * * *

4. In § 46.11, the first sentence is

revised to read as follows:

§ 46.11 What constitutes valid license,

form and use.

Each license shall bear a serial

number, the names in which authorized

to conduct business, type of ownership,

if the business is individually owned,

the name of the owner; if a partnership,

the names of all general partners; if a

limited liability company, the names of

all members, managers, officers,

directors and holders of more than 10

percent of the ownership stake, and the

percentage of ownership in the

company held by each such person; if

a corporation or association, the names

of all officers, directors, and

shareholders of more than 10 percent of

the outstanding stock and the

percentage of stock held by each such

person; the facsimile signature of the

Deputy Administrator, the seal of the

Department and shall be duly

countersigned. * * *

Federal Register / Vol. 65, No. 83 / Friday, April 28, 2000 / Rules and Regulations 24855

5. In § 46.13, paragraphs (a)(2) and

(a)(5) are revised to read as follows:

§ 46.13 Address, ownership, changes in

trade name, changes in number of

branches, changes in members of

partnership, and bankruptcy.

* * * * *

(a) * * *

(2) Any change in officers, directors,

members, managers, holders of more

than 10 percent of the outstanding stock

in a corporation, with the percentage of

stock held by such person, and holders

of more than 10 percent of the

ownership stake in a limited liability

company, and the percentage of

ownership in the company held by each

such person;

* * * * *

(5) When the licensee, or if the

licensee is a partnership, any partner is

subject to proceedings under the

bankruptcy laws. A new license is

required in case of a change in the

ownership of a firm, the addition or

withdrawal of partners in a partnership,

or in case business is conducted under

a different corporate charter, or in case

a limited liability company conducts

business under different articles or

organization from those under which

the license was originally issued.

* * * * *

Dated: April 21, 2000.

Robert C. Keeney,

Deputy Administrator, Fruit and Vegetable

Programs.

[FR Doc. 00–10481 Filed 4–27–00; 8:45 am]

BILLING CODE 3410–02–P

NUCLEAR REGULATORY

COMMISSION

10 CFR Part 72

RIN 3150–AG 30

List of Approved Spent Fuel Storage

Casks: TN–68 Addition

AGENCY: Nuclear Regulatory

Commission.

ACTION: Final rule.

SUMMARY: The Nuclear Regulatory

Commission (NRC) is amending its

regulations to add the Transnuclear TN–

68 cask system to the list of approved

spent fuel storage casks. This

amendment allows holders of power

reactor operating licenses to store spent

fuel in the Transnuclear TN–68 cask

system under a general license.

DATES: The final rule is effective May

30, 2000.

FOR FURTHER INFORMATION CONTACT:

Gordon Gundersen, telephone (301)

415–6195, e-mail, GEG1@nrc.gov of the

Office of Nuclear Material Safety and

Safeguards, U.S. Nuclear Regulatory

Commission, Washington, DC 20555–

0001.

SUPPLEMENTARY INFORMATION:

Background

Section 218(a) of the Nuclear Waste

Policy Act of 1982, as amended

(NWPA), requires that ‘‘[t]he Secretary

[of Energy] shall establish a

demonstration program for the dry

storage of spent nuclear fuel at civilian

nuclear power reactor sites, with the

objective of establishing one or more

technologies the [Nuclear Regulatory]

Commission may, by rule, approve for

use at the sites of civilian nuclear power

reactors without, to the maximum

extent practicable, the need for

additional site-specific approvals by the

Commission.’’ Section 133 of the NWPA

states, in part, that ‘‘[t]he Commission

shall, by rule, establish procedures for

the licensing of any technology

approved by the Commission under

Section 218(a) for use at the site of any

civilian nuclear power reactor.’’

To implement this mandate, the NRC

approved dry storage of spent nuclear

fuel in NRC-approved casks under a

general license, publishing a final rule,

in 10 CFR part 72 entitled ‘‘General

License for Storage of Spent Fuel at

Power Reactor Sites’’ (55 FR 29181, July

18, 1990). This rule also established a

new Subpart L within 10 CFR part 72

entitled, ‘‘Approval of Spent Fuel

Storage Casks’’ containing procedures

and criteria for obtaining NRC approval

of dry storage cask designs.

Discussion

This rule will add the Transnuclear

TN–68 cask system to the list of NRC

approved casks for spent fuel storage in

10 CFR 72.214. Following the

procedures specified in 10 CFR 72.230

of Subpart L, Transnuclear submitted an

application for NRC approval with the

Safety Analysis Report (SAR) entitled

‘‘Final Safety Analysis Report for the

TN–68 Dry Storage Cask,’’ dated January

23, 1998. The NRC evaluated the

Transnuclear submittal and issued a

preliminary Safety Evaluation Report

(SER) and proposed Certificate of

Compliance (CoC) for the Transnuclear

TN–68 cask system. The NRC published

a proposed rule in the Federal Register

(64 FR 45920; August 23, 1999) to add

TN–68 cask system to the listing in 10

CFR 72.214. The comment period ended

on November 8, 1999. Three comment

letters were received on the proposed

rule.

Based on NRC review and analysis of

public comments, the NRC staff has

modified, as appropriate, its proposed

CoC, including its appendices, the

Technical Specifications (TSs), and the

Approved Contents and Design Features

for the Transnuclear TN–68 cask

system. The NRC staff has also modified

its preliminary SER.

The NRC finds that the Transnuclear

TN–68 cask system, as designed and

when fabricated and used in accordance

with the conditions specified in its CoC,

meets the requirements of 10 CFR part

72. Thus, use of the Transnuclear TN–

68 cask system, as approved by the

NRC, will provide adequate protection

of public health and safety and the

environment. With this final rule, the

NRC is approving the use of the

Transnuclear TN–68 cask system under

the general license in 10 CFR part 72,

subpart K, by holders of power reactor

operating licenses under 10 CFR part 50.

Simultaneously, the NRC is issuing a

final SER and CoC that will be effective

on May 30, 2000. Single copies of the

CoC and SER are available for public

inspection and/or copying for a fee at

the NRC Public Document Room, 2120

L Street, NW (Lower Level),

Washington, DC.

Summary of Public Comments on the

Proposed Rule

The NRC received three comment

letters on the proposed rule. The

commenters included an industry

representative, an individual member of

the public, and a utility. Copies of the

public documents are available for

review in the NRC Public Document

Room, 2120 L Street, NW (Lower Level),

Washington DC.

Comments on the Transnuclear TN–68

Cask System

The comments and responses have

been grouped into eight subject areas:

General, materials, crud, miscellaneous

issues, technical specifications,

comments on applicant’s SAR,

accidents, and radiation protection. To

the extent possible, all of the comments

on a particular subject are grouped

together. A review of the comments and

the NRC staff’s responses follow:

A. General Comments

Comment A–1: One commenter

requested that the general comments

submitted by the commenter on the TN–

32 rule apply to this rule as well.

Response: Comments that were

general enough to apply to both the TN–

32 and the TN–68 casks, were addressed

in the response to the comments on the

TN–32 rule (65 FR 14790, March 20,

2000). Specific comments are addressed

in this rulemaking for the TN–68 cask.