46378 Federal Register / Vol. 72, No. 160 / Monday, August 20, 2007 / Rules and Regulations 

FDA found in the shell egg refrigeration 

and labeling final rule that preemption 

is needed because State and local laws 

that are less stringent than the Federal 

requirements will significantly interfere 

with the important public health goals 

of this regulation (65 FR 76092 at 

76109–76110). This final rule amends 

the shell egg refrigeration and labeling 

final rule to permit the egg industry to 

place the safe handling statement for 

shell eggs on the inside lid of egg 

cartons if the statement ‘‘Keep 

Refrigerated’’ appears on the PDP or 

information panel. FDA believes that 

preemption of State and local labeling 

requirements that are the same as or 

more stringent than the requirements of 

this regulation would not be necessary, 

as enforcement of such State and local 

requirements would not interfere with 

the food safety goals of this regulation. 

Further, it is likely that any states that 

enacted similar labeling requirements to 

those in this final rule would change 

those requirements to be consistent with 

any changes made by FDA as a result of 

this rulemaking. Accordingly, the 

preemptive effect of this rule would be 

limited to State or local requirements 

that are not as stringent as the 

requirements of this regulation. 

Requirements that are the same as or 

more stringent than FDA’s requirement 

would remain in effect. 

Further, section 4(e) of the Executive 

Order provides that ‘‘when an agency 

proposes to act through adjudication or 

rulemaking to preempt State law, the 

agency shall provide all affected State 

and local officials notice and an 

opportunity for appropriate 

participation in the proceedings.’’ FDA 

provided the States with an opportunity 

for appropriate participation in this 

rulemaking when it sought input from 

all stakeholders through publication of 

the 2005 proposed rule. FDA received 

two comments from a State Department 

of Agriculture, which agreed with the 

proposal. 

In addition, on March 12, 2007, FDA’s 

Division of Federal and State Relations 

provided notice by fax and e-mail 

transmission to State health 

commissioners, State agriculture 

commissioners, and food program 

directors of FDA’s intended amendment 

to its food labeling regulations to permit 

the egg industry to place the safe 

handling statement for shell eggs on the 

inside lid of egg cartons if the statement 

‘‘Keep Refrigerated’’ appears on the PDP 

or information panel (§ 101.17(h)). The 

notice provided the States with further 

opportunity for input on this 

rulemaking. It advised the States of the 

intended publication of the final rule 

and encouraged State and local 

governments to review the notice and to 

provide any comments to the docket 

(Docket Number 2004N–0382), opened 

May 5, 2005, when the 2005 proposed 

rule was published in the Federal 

Register, by a date 30 days from the date 

of the notice (i.e., by April 11, 2007). 

FDA received no comments in response 

to this notice. The notice has been filed 

in the previously referenced docket. 

For the reasons set forth previously in 

this document, the agency believes that 

it has complied with all of the 

applicable requirements under the 

Executive order. In conclusion, FDA has 

determined that the preemptive effects 

of this rule are consistent with 

Executive Order 13132. 

VII. References 

The following references have been 

placed on display in the Division of 

Dockets Management (see ADDRESSES) 

and may be seen by interested persons 

between 9 a.m. and 4 p.m., Monday 

through Friday. 

1. Tuominen, R., ‘‘Why Do Some Yellow 

Page Advertisements Capture Attention 

Better Than Others?,’’ Acta Odontologica 

Scandinavia, 59: 79–82, 2001. 

2. Dietrich, D.A., ‘‘Enhancing Label 

Readability for Over-the-Counter 

Pharmaceuticals by Elderly Consumers,’’

Journal of Safety Research, 27: 132, 1996. 

3. RTI International, ‘‘FDA Labeling Cost 

Model, Final Report,’’ prepared by Mary 

Muth, Erica Gledhill, and Shawn Karns, RTI, 

prepared for Amber Jessup, FDA, Center for 

Food Safety and Applied Nutrition, April 

2002. 

List of Subjects in 21 CFR Part 101 

Food labeling, Nutrition, Reporting 

and recordkeeping requirements. 

■ Therefore, under the Federal Food, 

Drug, and Cosmetic Act and under 

authority delegated to the Commissioner 

of Food and Drugs, 21 CFR part 101 is 

amended as follows: 

PART 101—FOOD LABELING 

■ 1. The authority citation for 21 CFR 

part 101 continues to read as follows: 

Authority: 15 U.S.C. 1453, 1454, 1455; 21 

U.S.C. 321, 331, 342, 343, 348, 371; 42 U.S.C. 

243, 264, 271. 

■ 2. Section 101.17 is amended by 

revising paragraph (h)(2) to read as 

follows: 

§ 101.17 Food labeling warning, notice, 

and safe handling statements. 

* * * * * 

(h) * * * 

(2) The label statement required by 

paragraph (h)(1) of this section shall 

appear prominently and conspicuously, 

with the words ‘‘SAFE HANDLING 

INSTRUCTIONS’’ in bold type, on the 

principal display panel, the information 

panel, or on the inside of the lid of egg 

cartons. If this statement appears on the 

inside of the lid, the words ‘‘Keep 

Refrigerated’’ must appear on the 

principal display panel or information 

panel. 

* * * * * 

Dated: May 25, 2007. 

Jeffrey Shuren, 

Assistant Commissioner for Policy. 

[FR Doc. E7–16272 Filed 8–17–07; 8:45 am] 

BILLING CODE 4160–01–S 

DEPARTMENT OF THE TREASURY 

Fiscal Service 

31 CFR Part 208 

RIN 1510–AB07 

Management of Federal Agency 

Disbursements 

AGENCY: Financial Management Service, 

Fiscal Service, Treasury. 

ACTION: Final rule. 

SUMMARY: On August 7, 2006, the 

Financial Management Service (FMS) 

published an interim final rule 

amending 31 CFR Part 208 (Part 208) to 

facilitate the delivery of Federal 

payments to victims of disasters and 

emergencies. See 71 FR 44584. The 

interim final rule was published 

without prior notice and comment and 

took effect immediately upon 

publication due to the need to be 

prepared to deliver Federal assistance 

and benefit payments during the 2006 

hurricane season. However, we invited 

comments on the interim rule and 

indicated that we would consider all 

comments received. We have reviewed 

and considered the comments received 

on the interim rule and are adopting 

that rule as final without change. 

DATES: Effective August 20, 2007, the 

interim rule published on August 7, 

2006 (71 FR 44584) is confirmed as 

final. 

ADDRESSES: You can download this rule 

at the following Web site: http:// 

www.fms.treas.gov/ach. You may also 

inspect and copy this rule at: Treasury 

Department Library, Freedom of 

Information Act (FOIA) Collection, 

Room 1428, Main Treasury Building, 

1500 Pennsylvania Avenue, NW., 

Washington, DC 20220. Before visiting, 

you must call (202) 622–0990 for an 

appointment. 

FOR FURTHER INFORMATION CONTACT: 

Sally Phillips, Director, EFT Strategy 

Division, at (202) 874–7106 or 


rfrederick on PROD1PC67 with RULES
Federal Register / Vol. 72, No. 160 / Monday, August 20, 2007 / Rules and Regulations 46379 

sally.phillips@fms.treas.gov; or Natalie 

H. Diana, Senior Counsel, at (202) 874–

6680 or natalie.diana@fms.treas.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

Part 208 implements the provisions of 

31 U.S.C. 3332, which generally 

requires that Federal payments be made 

by electronic funds transfer (EFT). 

Under 31 U.S.C. 3332, the Secretary of 

the Treasury (Secretary) must ensure 

that any individual required to receive 

a Federal payment by EFT have access 

to an account at a financial institution 

at a reasonable cost and with certain 

consumer protections. On August 7, 

2006, Treasury issued an interim final 

rule amending Part 208 in order to 

facilitate the delivery of Federal benefit 

and assistance payments to victims of 

emergencies and disasters. The purpose 

of the interim rule was to provide 

regulatory authority for Treasury, in the 

event of a disaster or emergency, to 

establish accounts at a financial 

institution for affected individuals in 

order to allow for the delivery by EFT 

of Federal payments. 

The possibility that a future 

emergency or disaster could disrupt the 

delivery of Federal payments through 

conventional methods such as direct 

deposit and check was made apparent 

by Hurricane Katrina in 2005. During 

the aftermath of Hurricane Katrina, 

many individuals who had been 

displaced from their homes were in 

immediate need of financial assistance. 

As Hurricane Katrina illustrated, in the 

extraordinary circumstance of a disaster, 

many individuals may not have access 

to their bank accounts and may not be 

able to readily establish new bank 

accounts. Such individuals would have 

no way to receive an electronic Federal 

assistance or benefit payment. 

Moreover, the postal delivery of checks 

may be delayed or disrupted in a 

disaster situation, at the very time when 

the expeditious delivery of Federal 

assistance and benefit payments is 

critical in assisting people in disaster 

situations who urgently need funds in 

order to pay for food, clothing and 

shelter. Even where Treasury checks can 

be expeditiously delivered to disaster 

victims, individuals who have been 

displaced from their homes may be 

unable to establish their identities due 

to lost or inaccessible documentation. 

As a result, financial institutions may be 

unwilling to cash Treasury checks for 

these individuals, because they cannot 

determine the identity of the individual 

or whether a Treasury check that an 

individual is seeking to cash has been 

stolen and fraudulently endorsed. 

Finally, check payments may raise 

security concerns in disaster situations, 

since individuals who cash checks will 

typically be carrying significant 

amounts of cash in order to make 

purchases. 

In light of these concerns, we 

published an interim final rule to 

provide regulatory authority for 

Treasury to establish accounts at 

financial institutions for victims of a 

disaster or emergency in order to allow 

for the electronic delivery of Federal 

payments. 

Summary and Response to Comments 

We received three comment letters on 

the interim final rule. One comment 

letter, from a national payments 

association, expressed support for the 

rule and noted that the rule appears to 

provide the flexibility that would be 

critical in the event of a future disaster 

or emergency that disrupts the delivery 

of payments. The letter also urged 

Treasury give advance consideration to 

issues such as how long accounts would 

remain open, where people would go to 

open accounts and how ACH files 

would be transferred if there were no 

electricity and/or telecommunications 

capacity. Another comment letter, from 

a trade association, agreed with the need 

for flexibility in disaster situations but 

urged Treasury to provide disaster 

victims with the opportunity to receive 

Federal payments through the financial 

institution of their choosing whenever 

possible. The letter also urged Treasury 

to use all available communications 

media to apprise disaster victims, the 

financial services sector and emergency 

assistance organizations of the plan to 

deliver Federal payments in the 

aftermath of a disaster. 

The third comment letter was from a 

Federal agency. The agency questioned 

how Treasury could deliver payments 

electronically in the event that the 

infrastructure supporting direct deposit 

were disrupted. The agency also raised 

other questions, such as how financial 

institutions would provide account 

access to disaster victims who do not 

have documentary evidence of their 

identities. Finally, the agency argued 

that agency relief personnel and 

individual victims are in the best 

position to decide how disaster relief 

payments should be delivered, and that 

individuals should not be required to 

receive payments electronically through 

accounts established for them by 

Treasury. 

We are aware that, depending on the 

nature of an emergency, the delivery of 

payments by direct deposit could be 

disrupted by damage to the payment 

system infrastructure. The purpose of 

the amendment to Part 208 was to 

provide Treasury with maximum 

flexibility for developing payment 

solutions even in the event of 

disruptions to payment networks, 

electricity and/or telecommunications. 

For example, in the event that the direct 

deposit network were not operational, it 

might be possible to deliver payments 

via other established electronic payment 

networks, such as ATM networks and 

credit/debit card networks, or through 

other means that might be developed 

depending upon the contingencies of a 

particular situation. In the event that 

individuals could not provide the 

standard identity documents that 

financial institutions typically require, 

Treasury would work with benefit and 

relief agencies and financial institutions 

to issue passwords that disaster victims 

could use to access payments following 

the agencies’ confirmation of victims’

identities on the basis of verifiable 

information held by the agency. 

It is important to note that the interim 

final rule permits, but does not require, 

Treasury to establish accounts for 

disaster victims. Treasury intends to 

work closely with benefit and relief 

agencies to determine how best to 

deliver funds in the event of an 

emergency. Because it is impossible to 

know in advance precisely the 

circumstances that a future disaster or 

emergency could present, the rule 

allows the terms and conditions of such 

accounts to be established on the basis 

of whatever is appropriate in a given 

situation. Thus, for example, Treasury 

might consider establishing accounts for 

disaster victims through which relief 

and assistance funds could be accessed 

at ATMs and/or point-of-sale locations. 

Alternatively, in more exigent 

circumstances, Treasury might work 

with one or more financial institutions 

to provide electronic funds access 

through proprietary arrangements with 

retailers, charitable organizations or 

other unconventional means of access. 

The interim final rule gives Treasury the 

authority to quickly establish accounts 

for disaster and emergency victims, as 

well as the flexibility to determine what 

features such accounts should have in 

order to meet the needs of agencies and 

payment recipients. 

Amendment of Part 208 

The interim rule amended 31 CFR 

Part 208 by adding a new § 208.11 that 

provides that Treasury may establish 

accounts at financial institutions for 

victims of a disaster or emergency in 

order to allow for the electronic delivery 

of Federal payments. New § 208.11 gives 

the Secretary flexibility to determine 

what features such accounts should 


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46380 Federal Register / Vol. 72, No. 160 / Monday, August 20, 2007 / Rules and Regulations 

have in light of the particular nature of 

the disaster or emergency. Sections 

208.4, 208.6, 208.7 and 210.5 of title 31 

CFR do not apply to the establishment 

of accounts or issuance of payments 

pursuant to this section. For example, 

the waivers set forth in § 208.4 are not 

applicable in situations where Treasury 

is establishing accounts for the express 

purpose of allowing for the delivery by 

EFT of Federal payments to disaster 

victims. The requirement in §§ 208.6 

and 210.5 that a Federal non-vendor 

electronic payment be deposited to a 

deposit account in the name of the 

recipient does not apply to accounts 

established pursuant to § 208.11, nor are 

agencies required to notify check 

recipients and newly-eligible payment 

recipients of options available to them, 

as is normally required under § 208.7. 

Further, Treasury will be able to deliver 

payments to accounts established 

pursuant to § 208.11, notwithstanding 

any other instructions from the payment 

recipient. 

Regulatory Analyses 

Request for Comment on Plain Language 

On June 1, 1998, the President issued 

a memorandum directing each agency in 

the Executive branch to write its rules 

in plain language. This directive is 

effective for all new proposed and final 

rulemaking documents issued on or 

after January 1, 1999. We invite 

comment on how to make this final rule 

clearer. For example, you may wish to 

discuss: (1) Whether we have organized 

the material to suit your needs; (2) 

whether the requirements of this final 

rule are clear; or (3) whether there is 

something else we could do to make this 

rule easier to understand. 

Regulatory Planning and Review 

The final rule does not meet the 

criteria for a ‘‘significant regulatory 

action’’ as defined in Executive Order 

12866. Therefore, the regulatory review 

procedures contained therein do not 

apply. 

Regulatory Flexibility Act Analysis 

Because no notice of proposed 

rulemaking was required for this final 

rule, the provisions of the Regulatory 

Flexibility Act (5 U.S.C. 601 et. seq.) do 

not apply. 

List of Subjects in 31 CFR Part 208 

Accounting, Automated Clearing 

House, Banks, Banking, Electronic funds 

transfer, Financial institutions, 

Government payments. 

Adoption of the Amendment 

■ For the reasons set out in the 

preamble, under the authority of 5 

U.S.C. 301 the interim rule amending 31 

CFR Part 208 published at 71 FR 44584 

is adopted as a final rule without 

change. 

Dated: August 14, 2007. 

Kenneth R. Papaj, 

Commissioner. 

[FR Doc. 07–4053 Filed 8–17–07; 8:45 am] 

BILLING CODE 4810–35–M 

DEPARTMENT OF DEFENSE 

Office of the Secretary 

32 CFR Part 199 

[DOD–2006–HA–0207] 

RIN 0720–AB15 

Civilian Health and Medical Program of 

the Uniformed Services (CHAMPUS); 

TRICARE Reserve Select for Members 

of the Selected Reserve 

AGENCY: Office of the Secretary, DoD. 

ACTION: Interim final rule with comment 

period. 

SUMMARY: This interim final rule revises 

requirements and procedures for 

TRICARE Reserve Select and 

restructures eligibility to include all 

Selected Reservists, except for those 

individuals either enrolled or eligible to 

enroll in a health benefit plan under 

Chapter 89 of Title 5, United States 

Code. The rule is being published as an 

interim final rule with comment period 

in order to comply with statutory 

effective dates. 

DATES: Effective Date: This rule is 

effective October 1, 2007. Submit 

comments on or before September 19, 

2007. 

ADDRESSES: You may submit comments, 

identified by docket number and or RIN 

number and title, by any of the 

following methods: Federal 

eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

Mail: Federal Docket Management 

System Office, 1160 Defense Pentagon, 

Washington, DC 20301–1160. 

Instructions: All submissions received 

must include the agency name and 

docket number or Regulatory 

Information Number (RIN) for this 

Federal Register document. The general 

policy for comments and other 

submissions from members of the public 

is to make these submissions available 

for public viewing on the Internet at 

http://regulations.gov as they are 

received without change, including any 

personal identifiers or contact 

information. 

FOR FURTHER INFORMATION CONTACT: Jody 

Donehoo, TRICARE Management 

Activity, TRICARE Operations, 

telephone (703) 681–0039. 

Questions regarding payment of 

specific claims under the TRICARE 

allowable charge method should be 

addressed to the appropriate TRICARE 

contractor. 

SUPPLEMENTARY INFORMATION: 

I. Introduction and Background 

A previous interim final rule was 

published in the Federal Register on 

March 16, 2005, (70 FR 12798–12805) 

that established requirements and 

procedures to implement TRICARE 

Reserve Select under section 701 of the 

Ronald W. Reagan National Defense 

Authorization Act for Fiscal Year 2005 

(NDAA–05) (Pub. L. 108–375). Section 

701 of NDAA–05 authorized premiumbased medical coverage for certain 

members of the Selected Reserve and 

their family members. By April 2005, 

Selected Reserve members who served 

on active duty in support of a 

contingency operation and fulfilled 

other statutory qualifications could 

purchase TRICARE Reserve Select 

coverage for periods proportional to 

their period of active duty. 

A second interim final rule was 

published in the Federal Register on 

June 21, 2006, (71 FR 35527–35537). 

That interim final rule revised 

requirements and procedures for 

TRICARE Reserve Select pursuant to 

sections 701 and 702 of the National 

Defense Authorization Act for Fiscal 

Year 2006 (NDAA–06) (Pub. L. 109–

163). Section 701 enhanced the existing 

TRICARE Reserve Select program. 

Section 702 added two new tiers of 

premium sharing by the government (50 

percent and 85 percent member portion) 

to the existing premium tier (28 percent 

member portion), making TRICARE 

Reserve Select available to all Selected 

Reservists. 

Before a final rule could be issued 

subsequent to the interim final rule 

published in the Federal Register on 

June 21, 2006, (71 FR 35527–35537) for 

the TRICARE Reserve Select program, 

Section 706 of the NDAA–07 amended 

the statutory provisions in sections 701 

and 702 of the NDAA–06 which were 

implemented in the interim final rule. 

Therefore, this interim rule addresses 

provisions of the National Defense 

Authorization Act for Fiscal Year 2007 

(NDAA–07) (Pub. L. 109–364). First, 

section 706 of the NDAA–07 expands 

the availability of the 28 percent 

premium tier to all Selected Reservists 

with one exception. Those individuals 

either enrolled or eligible to enroll in a 


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