37300 Federal Register / Vol. 65, No. 115 / Wednesday, June 14, 2000 / Proposed Rules

shall be based on the applicable rates

specified in this section.

(b) Fees for grading services will be

based on the time required to perform

such services for class, quality, quantity

(weight test), or condition, whether

ready-to-cook poultry, ready-to-cook

rabbits, or specified poultry food

products are involved. The hourly

charge shall be $51.32 and shall include

the time actually required to perform

the work, waiting time, travel time, and

any clerical costs involved in issuing a

certificate.

(c) Grading services rendered on

Saturdays, Sundays, or legal holidays

shall be charged for at the rate of $59.12

per hour. Information on legal holidays

is available from the Supervisor.

Dated: June 8, 2000.

Kathleen A. Merrigan,

Administrator, Agricultural Marketing

Service.

[FR Doc. 00–15013 Filed 6–13–00; 8:45 am]

BILLING CODE 3410–02–P

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 982

[Docket No. FV00–982–2 PR]

Hazelnuts Grown in Oregon and

Washington; Increased Assessment

Rate

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Proposed rule.

SUMMARY: This rule would increase the

assessment rate established for the

Hazelnut Marketing Board (Board) for

the 2000–2001 and subsequent

marketing years from $0.004 to $0.005

per pound of hazelnuts handled. The

Board locally administers the marketing

order, which regulates the handling of

hazelnuts grown in Oregon and

Washington. Authorization to assess

hazelnut handlers enables the Board to

incur expenses that are reasonable and

necessary to administer the program.

The marketing year begins July 1 and

ends June 30. The assessment rate

would remain in effect indefinitely

unless modified, suspended, or

terminated.

DATES: Comments must be received by

July 14, 2000.

ADDRESSES: Interested persons are

invited to submit written comments

concerning this rule. Comments must be

sent to the Docket Clerk, Marketing

Order Administration Branch, Fruit and

Vegetable Programs, AMS, USDA, room

2525–S, P.O. Box 96456, Washington,

DC 20090–6456; Fax: (202) 720–5698, or

E-mail: moab.docketclerk@usda.gov.

Comments should reference the docket

number and the date and page number

of this issue of the Federal Register and

will be available for public inspection in

the Office of the Docket Clerk during

regular business hours, or can be viewed

at: http://www.ams.usda.gov/fv/

moab.html.

FOR FURTHER INFORMATION CONTACT:

Teresa L. Hutchinson, Northwest

Marketing Field Office, Fruit and

Vegetable Programs, AMS, USDA, 1220

SW Third Avenue, suite 385, Portland,

Oregon 97204; telephone: (503) 326–

2724, Fax: (503) 326–7440; or George

Kelhart, Technical Advisor, Marketing

Order Administration Branch, Fruit and

Vegetable Programs, AMS, USDA, room

2525–S, P.O. Box 96456, Washington,

DC 20090–6456; telephone: (202) 720–

2491, Fax: (202) 720–5698.

Small businesses may request

information on complying with this

regulation by contacting Jay Guerber,

Marketing Order Administration

Branch, Fruit and Vegetable Programs,

AMS, USDA, P.O. Box 96456, room

2525–S, Washington, DC 20090–6456;

telephone: (202) 720–2491, Fax: (202)

720–5698, or E-mail:

Jay.Guerber@usda.gov.

SUPPLEMENTARY INFORMATION: This rule

is issued under Marketing Agreement

No. 115 and Order No. 982, both as

amended (7 CFR part 982), regulating

the handling of hazelnuts grown in

Oregon and Washington, hereinafter

referred to as the ‘‘order.’’ The

marketing agreement and order are

effective under the Agricultural

Marketing Agreement Act of 1937, as

amended (7 U.S.C. 601–674), hereinafter

referred to as the ‘‘Act.’’

The Department of Agriculture

(Department) is issuing this rule in

conformance with Executive Order

12866.

This rule has been reviewed under

Executive Order 12988, Civil Justice

Reform. Under the marketing order now

in effect, hazelnut handlers are subject

to assessments. Funds to administer the

order are derived from such

assessments. It is intended that the

assessment rate as proposed herein

would be applicable to all assessable

hazelnuts beginning on July 1, 2000,

and continue until amended,

suspended, or terminated. This rule

would not preempt any State or local

laws, regulations, or policies, unless

they present an irreconcilable conflict

with this rule.

The Act provides that administrative

proceedings must be exhausted before

parties may file suit in court. Under

section 608c(15)(A) of the Act, any

handler subject to an order may file

with the Secretary a petition stating that

the order, any provision of the order, or

any obligation imposed in connection

with the order is not in accordance with

law and request a modification of the

order or to be exempted therefrom. Such

handler is afforded the opportunity for

a hearing on the petition. After the

hearing the Secretary would rule on the

petition. The Act provides that the

district court of the United States in any

district in which the handler is an

inhabitant, or has his or her principal

place of business, has jurisdiction to

review the Secretary’s ruling on the

petition, provided an action is filed not

later than 20 days after the date of the

entry of the ruling.

This rule would increase the

assessment rate established for the

Board for the 2000–2001 and

subsequent marketing years from $0.004

to $0.005 per pound of hazelnuts

handled.

The order provides authority for the

Board, with the approval of the

Department, to formulate an annual

budget of expenses and collect

assessments from handlers to administer

the program. The members of the Board

are producers and handlers of

hazelnuts. They are familiar with the

Board’s needs and with the costs for

goods and services in their local area

and are thus in a position to formulate

an appropriate budget and assessment

rate. The assessment rate and budget

were recommended by a mail vote. The

recommendation will be discussed and

reconfirmed at the Board’s next

scheduled public meeting. Thus, all

directly affected persons will have an

opportunity to participate and provide

input.

For the 1997–98 and subsequent

marketing years, the Board

recommended, and the Department

approved, an assessment rate that would

continue in effect from marketing year

to marketing year unless modified,

suspended, or terminated by the

Secretary upon recommendation and

information submitted by the Board or

other information available to the

Secretary.

The Board, in a mail vote completed

at the end of April 2000, unanimously

recommended 2000–2001 expenditures

of $596,293 and an assessment rate of

$0.005 per pound of hazelnuts. In

comparison, last year’s budgeted

expenditures were $568,457. The

assessment rate of $0.005 is $0.001

higher than the rate currently in effect.

At the current rate of $0.004 per pound

and an estimated 2000–2001 hazelnut

Federal Register / Vol. 65, No. 115 / Wednesday, June 14, 2000 / Proposed Rules 37301

production of 50,000,000 pounds, the

Board believes that the projected reserve

on June 30, 2001, would not be adequate

to administer the program. The

increased assessment rate is expected to

result in an operating reserve of

$150,147 at the end of the 2000–2001

marketing year.

The major expenditures

recommended by the Board for the

2000–2001 marketing year include

$39,613 for personal services (salaries

and benefits), $7,416 for rent, $5,000 for

compliance, $23,000 for the crop

estimate, $275,000 for promotion, and

$182,364 for an emergency fund.

Budgeted expenses for these items in

1999–2000 were $51,385, $7,308,

$5,000, $21,000, $275,000, and

$182,364, respectively. The Board

would consider using emergency funds

for authorized activities when it is

reasonably certain that its estimate of

assessable hazelnuts is reached. It

would not be able to make this

determination until December 2000, the

month in which the hazelnut harvest

and deliveries to handlers usually are

completed.

The Board based its recommended

assessment rate increase on the 2000–

2001 crop estimate, the 2000–2001

marketing year expenditures estimate,

as well as the current and projected

balance of the operating reserve.

Hazelnut shipments for the 2000–2001

marketing year are estimated at

50,000,000 pounds, which should

provide $250,000 in assessment income.

Income derived from handler

assessments, along with interest income

($13,000) and funds from the Board’s

authorized reserve ($333,293), would be

adequate to cover budgeted expenses.

Funds in the reserve (currently

$483,440) would be kept within the

maximum permitted by the order

(approximately one marketing year’s

operational expenses). Excess funds

may be maintained and used by the

Board until December 1 following the

end of a marketing year (§ 982.62(b)).

The Board shall refund to each handler

upon request, or credit to the handler’s

account with the Board, the handler’s

share of such excess prior to January 1.

The proposed assessment rate would

continue in effect indefinitely unless

modified, suspended, or terminated by

the Secretary upon recommendation

and information submitted by the Board

or other available information.

Although this assessment rate would

be in effect for an indefinite period, the

Board would continue to conduct a mail

vote prior to or during each marketing

year to recommend a budget of expenses

and consider recommendations for

modification of the assessment rate. Any

mail votes would be discussed and

reconfirmed at a public meeting. The

dates and times of Board meetings are

available from the Board or the

Department. Board meetings are open to

the public and interested persons may

express their views at these meetings.

The Department would evaluate Board

recommendations and other available

information to determine whether

modification of the assessment rate is

needed. Further rulemaking would be

undertaken as necessary. The Board’s

2000–2001 budget and those for

subsequent marketing years would be

reviewed and, as appropriate, approved

by the Department.

Pursuant to requirements set forth in

the Regulatory Flexibility Act (RFA), the

Agricultural Marketing Service (AMS)

has considered the economic impact of

this rule on small entities. Accordingly,

the AMS has prepared this initial

regulatory flexibility analysis.

The purpose of the RFA is to fit

regulatory actions to the scale of

business subject to such actions in order

that small businesses will not be unduly

or disproportionately burdened.

Marketing orders issued pursuant to the

Act, and the rules issued thereunder, are

unique in that they are brought about

through group action of essentially

small entities acting on their own

behalf. Thus, both statutes have small

entity orientation and compatibility.

There are approximately 800

producers of hazelnuts in the

production area and approximately 22

handlers subject to regulation under the

marketing order. Small agricultural

producers are defined by the Small

Business Administration (SBA) (13 CFR

121.201) as those having annual receipts

less than $500,000, and small

agricultural service firms are defined as

those whose annual receipts are less

than $5,000,000. Currently, about 86

percent of hazelnut handlers could be

considered small businesses under

SBA’s definition, excluding receipts

from other sources. It is estimated that

virtually all hazelnut producers have

annual receipts of less than $500,000,

excluding receipts from other sources.

Thus, the majority of handlers and

producers of hazelnuts may be classified

as small entities.

This rule would increase the

assessment rate established for the

Board and collected from handlers for

the 2000–2001 and subsequent

marketing years from $0.004 to $0.005

per pound of hazelnuts. The Board, in

a mail vote completed at the end of

April 2000, unanimously recommended

2000–2001 expenditures of $596,293

and an assessment rate of $0.005 per

pound. The proposed assessment rate of

$0.005 per pound is $0.001 higher than

the $0.004 per pound rate currently in

effect. The quantity of assessable

hazelnuts for the 2000–2001 marketing

year is estimated at 50,000,000 pounds.

Income derived from handler

assessments, along with interest income

and funds from the Board’s authorized

reserve, would be adequate to cover

budgeted expenses.

The major expenditures

recommended by the Board for the

2000–2001 marketing year include

$39,613 for personal services (salaries

and benefits), $7,416 for rent, $5,000 for

compliance, $23,000 for the crop

estimate, $275,000 for promotion, and

$182,364 for an emergency fund.

Budgeted expenses for these items in

1999–2000 were $51,385, $7,308,

$5,000, $21,000, $275,000, and

$182,364, respectively. As mentioned

earlier, the Board would not make any

decision on using emergency funds

until December 2000, at the earliest.

The Board based its recommended

assessment rate increase on the 2000–

2001 crop estimate, the 2000–2001

marketing year expenditures estimate,

as well as the current and projected

balance of the operating reserve.

Hazelnut shipments for the 2000–2001

marketing year are estimated at

50,000,000 pounds, which should

provide $250,000 in assessment income.

Income derived from handler

assessments, along with interest income

($13,000) and funds from the Board’s

authorized reserve ($333,293), would be

adequate to cover budgeted expenses.

Funds in the reserve (currently

$483,440) would be kept within the

maximum permitted by the order

(approximately one marketing year’s

operational expenses). Excess funds

may be maintained and used by the

Board until December 1 following the

end of a marketing year (§ 982.62(b)).

The Board is required to refund or

credit, upon request, each handler’s

share of the excess prior to January 1.

The Board reviewed and unanimously

recommended 2000–2001 expenditures

of $596,293. With the 2000–2001

marketing year assessable hazelnut crop

estimated at 50,000,000 pounds, or

26,000,000 pounds less than for 1999–

2000, the Board recommended the

assessment rate increase to prevent its

operating reserve from going lower than

$150,000. The Board believes that a

reserve less than this is too low. Prior

to arriving at this budget, the Board

considered information from various

sources, such as the Proration

Committee, the Budget Committee, and

the Marketing and Promotion

Committee. Alternative expenditure

levels were discussed by these groups,

37302 Federal Register / Vol. 65, No. 115 / Wednesday, June 14, 2000 / Proposed Rules

based upon the relative value of various

research, marketing, and promotion

projects to the hazelnut industry.

A review of historical information and

preliminary information pertaining to

the upcoming marketing year indicates

that the grower price for the 2000–2001

marketing year could range between

$0.32 and $0.49 per pound of hazelnuts.

Therefore, the estimated assessment

revenue for the 2000–2001 marketing

year as a percentage of total grower

revenue could range between 1.02 and

1.56 percent.

This action would increase the

assessment obligation imposed on

handlers. While assessments impose

some additional costs on handlers, the

costs are minimal and uniform on all

handlers. Some of the additional costs

may be passed on to producers.

However, these costs would be offset by

the benefits derived by the operation of

the marketing order. In addition,

interested persons are invited to submit

information on the regulatory and

informational impacts of this action on

small businesses.

This proposed rule would impose no

additional reporting or recordkeeping

requirements on either small or large

hazelnut handlers. As with all Federal

marketing order programs, reports and

forms are periodically reviewed to

reduce information requirements and

duplication by industry and public

sector agencies.

The Department has not identified

any relevant Federal rules that

duplicate, overlap, or conflict with this

rule.

A small business guide on complying

with fruit, vegetable, and specialty crop

marketing agreements and orders may

be viewed at: http://www.ams.usda.gov/

fv/moab.html. Any questions about the

compliance guide should be sent to Jay

Guerber at the previously mentioned

address in the FOR FURTHER INFORMATION

CONTACT section.

A 30-day comment period is provided

to allow interested persons to respond

to this proposed rule. Thirty days is

deemed appropriate because: (1) The

2000–2001 marketing year begins on

July 1, 2000, and the marketing order

requires that the rate of assessment for

each marketing year apply to all

assessable hazelnuts handled during

such marketing year; (2) the Board

needs to have sufficient funds to pay its

expenses which are incurred on a

continuous basis; and (3) handlers are

aware of this action which was

unanimously recommended by the

Board in a mail vote and is similar to

other assessment rate actions issued in

past years.

List of Subjects in 7 CFR Part 982

Filberts, Hazelnuts, Marketing

agreements, Nuts, Reporting and

recordkeeping requirements.

For the reasons set forth in the

preamble, 7 CFR part 982 is proposed to

be amended as follows:

PART 982—HAZELNUTS GROWN IN

OREGON AND WASHINGTON

1. The authority citation for 7 CFR

part 982 continues to read as follows:

Authority: 7 U.S.C. 601–674.

2. Section 982.340 is revised to read

as follows:

§ 982.340 Assessment rate.

On and after July 1, 2000, an

assessment rate of $0.005 per pound is

established for Oregon and Washington

hazelnuts.

Dated: June 8, 2000.

James R. Frazier,

Acting Deputy Administrator, Fruit and

Vegetable Programs.

[FR Doc. 00–15014 Filed 6–13–00; 8:45 am]

BILLING CODE 3410–02–P

NATIONAL CREDIT UNION

ADMINISTRATION

12 CFR Part 748

Guidelines for Safeguarding Member

Information

AGENCY: National Credit Union

Administration (NCUA).

ACTION: Notice of proposed rulemaking

and request for comment.

SUMMARY: The NCUA Board is

proposing a modification to the security

program requirements to include

security of member information.

Further, the NCUA Board is requesting

comment on proposed Guidelines for

safeguarding member information

published to implement certain

provisions of the Gramm-Leach-Bliley

Act (the GLB Act or Act).

The GLB Act requires the NCUA

Board to establish appropriate standards

for federally-insured credit unions

relating to administrative, technical, and

physical safeguards for member records

and information. These safeguards are

intended to: insure the security and

confidentiality of member records and

information; protect against any

anticipated threats or hazards to the

security or integrity of such records; and

protect against unauthorized access to

or use of such records or information

that could result in substantial harm or

inconvenience to any member.

DATES: NCUA must receive comments

not later than August 14, 2000.

ADDRESSES: Direct comments to: Becky

Baker, Secretary of the Board. Mail or

hand-deliver comments to: National

Credit Union Administration, 1775

Duke Street, Alexandria, Virginia

22314–3428. You may fax comments to

(703) 518–6319, or e-mail comments to

boardmail@ncua.gov. Please send

comments by one method only.

FOR FURTHER INFORMATION CONTACT:

Matthew Biliouris, Information Systems

Officer, or Jodee Jackson, Compliance

Officer, Office of Examination and

Insurance, at the above address or

telephone (703) 518–6360.

SUPPLEMENTARY INFORMATION: The

contents of this preamble are listed in

the following outline:

I. Background

II. Section-by-Section Analysis

III. Regulatory Procedures

A. Paperwork Reduction Act

B. Regulatory Flexibility Act

C. Executive Order 13132

D. Treasury and General Government

Appropriations Act, 1999

IV. Agency Regulatory Goal

I. Background

On November 12, 1999, President

Clinton signed the GLB Act (Pub. L.

106–102) into law. Section 501, entitled

Protection of Nonpublic Personal

Information, requires the NCUA Board,

the federal banking agencies, including

the Office of the Comptroller of the

Currency, the Board of Governors of the

Federal Reserve System, the Federal

Deposit Insurance Corporation, and the

Office of Thrift Supervision, the

Securities and Exchange Commission,

state insurance authorities, and the

Federal Trade Commission (collectively,

the ‘‘Agencies’’) to establish appropriate

standards for the financial institutions

subject to their respective jurisdictions

relating to the administrative, technical,

and physical safeguards for customer

records and information. These

safeguards are intended to: (1) Insure

the security and confidentiality of

customer records and information; (2)

protect against any anticipated threats

or hazards to the security or integrity of

such records; and (3) protect against

unauthorized access to or use of such

records or information that would result

in substantial harm or inconvenience to

any customer.

Section 505(b) of the GLB Act

provides that these standards are to be

implemented by the NCUA and the

federal banking agencies in the same

manner, to the extent practicable, as

standards pursuant to section 39(a) of

the Federal Deposit Insurance Act

(FDIA). Section 39(a) of the FDIA