40924 Federal Register / Vol. 62, No. 147 / Thursday, July 31, 1997 / Rules and Regulations

11. Section 2429.24 is amended by

revising paragraph (e) to read as follows:

§ 2429.24 Place and method of filing;

acknowledgment.

* * * * *

(e) All documents filed pursuant to

this section shall be filed in person, by

commercial delivery, by first-class mail,

or by certified mail. Provided, however,

that where facsimile equipment is

available, motions; information

pertaining to prehearing disclosure,

conferences, orders, or hearing dates,

times, and locations; information

pertaining to subpoenas; and other

similar matters may be filed by facsimile

transmission, provided that the entire

individual filing by the party does not

exceed 10 pages in total length, with

normal margins and font sizes.

* * * * *

12. Section 2429.25 is revised to read

as follows:

§ 2429.25 Number of copies and paper

size.

Unless otherwise provided by the

Authority or the General Counsel, or

their designated representatives, as

appropriate, or under this subchapter,

and with the exception of any

prescribed forms, any document or

paper filed with the Authority, General

Counsel, Administrative Law Judge,

Regional Director, or Hearing Officer, as

appropriate, under this subchapter,

together with any enclosure filed

therewith, shall be submitted on 81⁄2 x

11 inch size paper, using normal

margins and font sizes, in an original

and four (4) legible copies. Where

facsimile filing is permitted pursuant to

§ 2429.24(e), one (1) legible copy,

capable of reproduction, shall be

sufficient. A clean copy capable of being

used as an original for purposes such as

further reproduction may be substituted

for the original.

13. Section 2429.27 is amended by

revising paragraphs (b) and (d) to read

as follows:

§ 2429.27 Service; statement of service.

* * * * *

(b) Service of any document or paper

under this subchapter, by any party,

including documents and papers served

by one party on any other party, shall

be accomplished by certified mail, firstclass mail, commercial delivery, or in

person. Where facsimile equipment is

available, service by facsimile of

documents described in § 2429.24(e) is

permissible.

* * * * *

(d) The date of service or date served

shall be the day when the matter served

is deposited in the U.S. mail, delivered

in person, received from commercial

delivery, or, in the case of facsimile

transmissions, the date transmitted.

Dated: July 28, 1997.

Solly Thomas,

Executive Director, Federal Labor Relations

Authority.

[FR Doc. 97–20244 Filed 7–30–97; 8:45 am]

BILLING CODE 6727–01–P

DEPARTMENT OF AGRICULTURE

Office of the Secretary

7 CFR Parts 3, 278, and 400

Department of Agriculture Civil

Monetary Penalties Adjustment

AGENCY: Office of the Secretary, USDA.

ACTION: Final rule.

SUMMARY: In accordance with Federal

Civil Penalties Inflation Adjustment Act

of 1990, as amended by the Debt

Collection Improvement Act of 1996,

this final rule adjusts civil monetary

penalties imposed by agencies within

USDA to incorporate an inflation

adjustment.

EFFECTIVE DATE: This rule will become

effective on September 2, 1997.

FOR FURTHER INFORMATION CONTACT: Rey

Gonzalez, OCFO, FPD, USDA, Room

3022–S, 1400 Independence Avenue,

SW, Washington DC 20250 (202) 720–

1168.

SUPPLEMENTARY INFORMATION:

I. The Debt Collection Improvement Act

of 1996

The Federal Civil Penalties Inflation

Adjustment Act of 1990 (Pub. L. No.

101–410) (Act) was amended by the

Debt Collection Improvement Act of

1996 (Pub. L. No. 104–134) to require

Federal agencies to regularly adjust

certain civil monetary penalties (CMP)

for inflation. The Act applies to any

CMP provided by law, except for any

penalty under the Internal Revenue

Code of 1986, the Tariff Act of 1930, the

Occupational Safety and Health Act of

1970, and the Social Security Act. The

Act defines CMP to be any penalty, fine,

or other sanction in which a Federal

statute specifies a monetary amount, a

maximum amount, or a range of

amounts for such penalty, fine, or

sanction.

As amended, the Act requires each

agency to make an initial inflation

adjustment for all applicable CMP, and

to make further inflation adjustments at

least once every 4 years thereafter. The

Debt Collection Improvement Act of

1996 stipulates that any increases in

CMP due to the calculated inflation

adjustments (i) applies only to

violations which occur after the date the

increase takes effect, which will be

thirty (30) days after publication of this

final rule; and (ii) the first adjustment

may not exceed 10 percent of the

penalty indicated.

Method of Calculation

Under the Act, the inflation

adjustment for each applicable CMP is

determined by increasing the minimum

or maximum CMP amount or range of

CMP’s per violation or the range of

minimum and maximum civil monetary

penalties, as applicable, by the ‘‘cost-ofliving adjustment.’’ The ‘‘cost-of-living

adjustment’’ is defined as the percentage

of each CMP by which the Consumer

Price Index (CPI) for the month of June

of the calendar year preceding the

adjustment, exceeds the CPI for the

month of June of the calendar year in

which the amount of the CMP was last

set or adjusted in accordance with the

law. The adjustment of these penalties

contained in this notice were limited in

two ways by the Act. First, the initial

adjustment of any penalty may not

exceed 10 percent of the unadjusted

penalty. Second, any calculated increase

under this adjustment is subject to a

specific rounding formula contained in

the Act. As a result of the application of

these rounding rules, some penalties

may not be adjusted. Among the

penalties adjusted in this notice, the

length of time covered by the

adjustment varied, which means the rate

and the amount of the adjustment, if

any, applied to these penalties also

varied.

The rule contained in this notice

reflects the initial adjustment to the

listed civil monetary penalties required

by the Act. This rule will be amended

to reflect any subsequent adjustments to

the listed civil monetary penalties made

in accordance with the Act.

II. Civil Monetary Penalties Affected by

This Rule

A number of USDA agencies

including the Agricultural Marketing

Service; the Federal Crop Insurance

Corporation; the Animal and Plant

Health Inspection Service; the Grain

Inspection, Packers and Stockyards

Administration; the Food Safety

Inspection Service; the Food and

Consumer Service; and the Forest

Service administer laws which provide

for the imposition of civil monetary

penalties.

This final rule lists the specific

penalty or penalty range for each civil

monetary penalty covered by this rule

and reflects the required inflation
Federal Register / Vol. 62, No. 147 / Thursday, July 31, 1997 / Rules and Regulations 40925

adjustment. This final rule also amends

regulations which currently specify civil

monetary amounts, by deleting these

amounts and where appropriate

inserting a cross reference to this rule.

III. Waiver of Proposed Rulemaking

In developing this final rule, we are

waiving the usual notice of proposed

rulemaking and public comment

procedures contained in 5 U.S.C. 553.

We have determined that, under 5

U.S.C. 553(b)(3)(B), good cause exists for

dispensing with the notice of proposed

rulemaking and public comment

procedures for this rule. Specifically,

this rulemaking comports and is

consistent with the statutory authority

required by the Debt Collection

Improvement Act of 1996, with no issue

of policy discretion. Accordingly, we

believe that opportunity for prior

comment is unnecessary and contrary to

the public interest, and are issuing these

revised regulations as a final rule that

will apply to all future cases.

IV. Procedural Requirements

Executive Order 12866

The Office of Management and Budget

(OMB) has reviewed this final rule in

accordance with the provisions of

Executive Order 12866, and has

determined that it does not meet the

criteria for a significant regulatory

action. As indicated above, the

provisions contained in this final

rulemaking contained inflation

adjustments in compliance with the

Debt Collection Improvement Act of

1996 for specific applicable civil

monetary penalties. The great majority

of individuals, organizations and

entities affected by these regulations do

not engage in prohibited activities and

practices, and as a result, we believe

that any aggregate economic impact of

these revised regulations will be

minimal, affecting only those limited

few who may engage in prohibited

behavior in violation of the statutes.

Executive Order 12988

This final rule has been reviewed

under Executive Order 12988, Civil

Justice Reform. This rule: (1) Preempts

all State and local laws and regulations

that are inconsistent with this rule; (2)

has no retroactive effect; and (3) does

not require administrative proceedings

before parties may file suit in court

challenging this rule.

Regulatory Flexibility Act of 1995

The provisions of the Regulatory

Flexibility Act relating to an initial and

final regulatory flexibility analysis (5

U.S.C. 603, 604) are not applicable to

this final rule because the agency was

not required to publish a notice of

proposed rulemaking under 5 U.S.C.

553 or any other law. Accordingly, a

regulatory flexibility analysis is not

required.

Paperwork Reduction Act

This final rule imposes no new

reporting or recordkeeping requirements

necessitating clearance by OMB.

List of Subjects in 7 CFR Parts 3, 278

and 400

Administrative practice and

procedure, Claims, Debt Management,

Penalties.

Accordingly, 7 CFR parts 3, 278, and

400 are amended as set forth below:

PART 3—DEBT MANAGEMENT

7 CFR part 3 is amended by adding at

the end the following new subpart:

Subpart E—Adjusted Civil Monetary

Penalties

Authority: 28 U.S.C. 2461 note.

§ 3.91 Adjusted civil monetary penalties.

(a) In General. The Secretary will

adjust the civil monetary penalties,

listed in paragraph (b), to take account

of inflation at least once every 4 years

as required by the Federal Civil

Penalties Inflation Adjustment Act of

1990 (Pub. L. No. 101–410), as amended

by the Debt Collection Improvement Act

of 1996 (Pub. L. No. 104–134).

(b) Penalties. (1) Agricultural

Marketing Service— (i) Civil penalty for

improper pesticide recordkeeping,

codified at 7 U.S.C. 136i-1(d), has:

(A) A maximum of $550 in the case

of the first offense, and

(B) A minimum of $1,100 in the case

of subsequent offenses unless the

Secretary determines that the person

made a good faith effort to comply.

(ii) Civil penalty for a violation of

unfair conduct rule under the Perishable

Agricultural Commodities Act, in lieu of

license revocation or suspension,

codified at 7 U.S.C. 499b(5), has a

maximum of $2,200.

(iii) Civil penalty for a violation of the

licensing requirements under the

Perishable Agricultural Commodities

Act, codified at 7 U.S.C. 499c(a), has—

(A) A maximum of $1,000 for each

such offense and not more than $250 for

each day it continues; or

(B) A maximum of $250 for each such

offense if the Secretary determines the

violation was not willful.

(iv) Civil penalty in lieu of license

suspension under the Perishable

Agricultural Commodities Act, codified

at 7 U.S.C. 499h(e), has a maximum of

$2,000 for each violative transaction or

each day the violation continues.

(v) Civil penalty for a violation of

Export Apple and Pear Act, codified at

7 U.S.C. 586, has a minimum of $110

and a maximum of $11,000.

(vi) Civil penalty for a violation of the

Export Grape and Plum Act, codified at

7 U.S.C. 596, has a minimum of $110

and a maximum of $11,000.

(vii) Civil penalty for a violation of an

order issued by the Secretary, under the

Agricultural Marketing Agreement Act

of 1937, codified at 7 U.S.C. 608c(14)(B),

has a maximum of $1,100.

(viii) Civil penalty for failing to file

certain reports under the Agricultural

Marketing Agreement Act of 1937,

codified at 7 U.S.C. 610(c), has a

maximum civil penalty of $110.

(ix) Civil penalty for a violation of

seed program under the Federal Seed

Act, codified at 7 U.S.C. 1596(b), has a

minimum civil penalty of $27.50 and a

maximum of $550.

(x) Civil penalty for a failure to collect

an assessment or fee or for a violation

of the Cotton Research and Promotion

Act, codified at 7 U.S.C. 2112(b), has a

maximum of $1,100.

(xi) Civil penalty for a violation of a

cease and desist order or for deceptive

marketing under the Plant Variety

Protection Act, codified at 7 U.S.C.

2568(b), has a minimum of $550 and a

maximum of $11,000.

(xii) Civil penalty for failing to pay,

collect, remit any assessment or fee or

for violating a program regarding Potato

Research and Promotion Act, codified at

7 U.S.C. 2621(b)(1), has a minimum of

$550 and a maximum of $5,500.

(xiii) Civil penalty for failing to obey

a cease and desist order under the

Potato Research and Promotion Act,

codified at 7 U.S.C. 2621(b)(3), has a

maximum of $550.

(xiv) Civil penalty for failing to pay,

collect, remit any assessment or fee or

for violating a program under the Egg

Research and Consumer Information

Act, codified at 7 U.S.C. 2714(b)(1), has

a minimum of $550 and a maximum of

$5,500.

(xv) Civil penalty for failing to obey

a cease and desist order for a program

under the Egg Research and Consumer

Information Act, codified at 7 U.S.C.

2714(b)(3), has a maximum of $550.

(xvi) Civil penalty for failing to remit

any assessment or fee or for violating a

program under the Beef Research and

Information Act, codified at 7 U.S.C.

2908(a)(2), has a maximum of $5,500.

(xvii) Civil penalty for failing to remit

any assessment or for violating a

program regarding wheat and wheat

foods research, codified at 7 U.S.C.

3410(b), has a maximum of $1,100.

(xviii) Civil penalty for failing to pay,

collect, or remit any assessment or fee
40926 Federal Register / Vol. 62, No. 147 / Thursday, July 31, 1997 / Rules and Regulations

or violating a program under the Floral

Research and Consumer Information

Act, codified at 7 U.S.C. 4314(b)(1), has

a minimum $550 and a maximum of

$5,500.

(xix) Civil penalty for failing to obey

a cease and desist order under the Floral

Research and Consumer Information

Act, codified at 7 U.S.C. 4314(b)(3), has

a maximum of $550.

(xx) Civil penalty for a violation of an

order under the Dairy Promotion

Program, codified at 7 U.S.C. 4510(b),

has a maximum of $1,100.

(xxi) Civil penalty for failing to pay,

collect, or remit any assessment or fee

or for violating the Honey Research,

Promotion, and Consumer Information

Act, codified at 7 U.S.C. 4610(b)(1), has

a minimum civil penalty of $550 and a

maximum of $5,500.

(xxii) Civil penalty for failing to obey

a cease and desist order of the Honey

Research, Promotion, and Consumer

Information Act, codified at 7 U.S.C.

4610(b)(3), has a maximum civil penalty

of $550.

(xxiii) Civil penalty for a violation of

a program of the Pork Promotion,

Research, and Consumer Information

Act, codified at 7 U.S.C.

4815(b)(1)(A)(i), has a maximum of

$1,100.

(xxiv) Civil penalty for failing to obey

a cease and desist order under the Pork

Promotion, Research, and Consumer

Information Act, codified at 7 U.S.C.

4815(b)(3)(A), has a maximum of $550.

(xxv) Civil penalty for failing to pay,

collect, or remit any assessments or fee

or for violating a program under the

Watermelon Research and Promotion

Act, codified at 7 U.S.C. 4910(b)(1), has

a minimum of $550 and a maximum of

$5,500.

(xxvi) Civil penalty for failing to obey

a cease and desist order for a program

under the Watermelon Research and

Promotion Act, codified at 7 U.S.C.

4910(b)(3), has a maximum of $550.

(xxvii) Civil penalty for failing to pay,

collect, or remit any assessments or fee

or for a violation of program under the

Pecan Promotion and Research Act,

codified at 7 U.S.C. 6009(c)(1), has a

minimum of $1,100 and a maximum of

$11,000.

(xviii) Civil penalty for failing to obey

a cease and desist order of the Pecan

Promotion and Research Act, codified at

7 U.S.C. 6009(e), has a maximum of

$1,100.

(xxix) Civil penalty for failing to pay,

collect, or remit any assessments or fee

or for violating a program of the

Mushroom Promotion, Research, and

Consumer Information Act, codified at 7

U.S.C. 6107(c)(1), has a minimum of

$550 and a maximum of $5,500.

(xxx) Civil penalty for failing to obey

a cease and desist order under the

Mushroom Promotion, Research, and

Consumer Information Act, codified at 7

U.S.C. 6107(e), has a maximum of $550.

(xxxi) Civil penalty for failing to pay,

collect, or remit any assessments or fee

or for violation of the Lime Research,

Promotion, and Consumer Information

Act, codified at 7 U.S.C. 6207(c)(1), has

a minimum of $550 and a maximum of

$5,500.

(xxxii) Civil penalty for failing to obey

a cease and desist order under the Lime

Research, Promotion, and Consumer

Information Act, codified at 7 U.S.C.

6207(e), has a maximum of $550.

(xxxiii) Civil penalty for failing to

pay, collect, or remit any assessments or

fee or for violating a program under the

Soybean Promotion, Research, and

Consumer Information Act, codified at 7

U.S.C. 6307(c)(1), has a maximum civil

penalty of $1,100.

(xxxiv) Civil penalty for failing to

obey a cease and desist order under the

Soybean Promotion, Research, and

Consumer Information Act, codified at 7

U.S.C. 6307(e), has a maximum of

$5,500.

(xxxv) Civil penalty for failing to pay,

collect, or remit any assessments or fee

or for violating a program of the Fluid

Milk Promotion Act, codified at 7 U.S.C.

6411(c)(1)(A), has a minimum of $550

and a maximum civil penalty of $5,500;

or in the case of a violation which is

willful, codified at 7 U.S.C.

6411(c)(1)(B), has a minimum of

$11,000 and a maximum of $110,000.

(xxxvi) Civil penalty for failing to

obey a cease and desist order for a

program under the Fluid Milk

Promotion Act of 1990, codified at 7

U.S.C. 6411(e), has a maximum of

$5,500.

(xxxvii) Civil penalty for knowingly

labeling or selling a product as organic

except in accordance with the Organic

Foods Production Act, codified at 7

U.S.C. 6519(a), has a maximum of

$11,000.

(xxxviii) Civil penalty for failing to

pay, collect, or remit any assessments or

fee or for violation of a program of the

Fresh Cut Flowers and Fresh Cut Greens

Promotion and Information Act,

codified at 7 U.S.C. 6808(c)(1), has a

minimum of $530 and a maximum of

$5,300.

(xxxix) Civil penalty for failing to

obey a cease and desist order for a

program of the Fresh Cut Flowers and

Fresh Cut Greens Promotion and

Information Act, codified at 7 U.S.C.

6808(e), has a maximum of $5,300.

(xl) Civil penalty for a violation of

program of the Sheep Promotion,

Research, and Consumer Information

Act, codified at 7 U.S.C. 7107(c)(1), has

a maximum of $1,030.

(xli) Civil penalty for failing to obey

a cease and desist order for a program

of the Sheep Promotion, Research, and

Consumer Information Act, codified at 7

U.S.C. 7107(e), has a maximum of $520.

(xlii) Civil penalty for a violation of

an order or regulation issued under the

Commodity Promotion, Research, and

Information Act of 1996, codified at 7

U.S.C. 7419(c)(1), has a minimum of

$1,000 and a maximum of $10,000 for

each violation.

(xliii) Civil penalty for a violation of

a cease and desist order issued under

the Commodity Promotion, Research,

and Information Act of 1996, codified at

7 U.S.C. 7419(e), has a minimum of

$1,000 and a maximum of $10,000 for

each day the violation occurs.

(xliv) Civil penalty for a violation of

an order or regulation issued under the

Canola and Rapeseed Research,

Promotion, and Consumer Information

Act, codified at 7 U.S.C. 7448(c)(1), has

a maximum of $1,000 for each violation.

(xlv) Civil penalty for a violation of a

cease and desist order issued under the

Canola and Rapeseed Research,

Promotion, and Consumer Information

Act, codified at 7 U.S.C. 7448(e), has a

maximum of $5,000 for each day the

violation occurs.

(xlvi) Civil penalty for a violation of

an order or regulation issued under the

National Kiwifruit Research, Promotion,

and Consumer Information Act, codified

at 7 U.S.C. 7468(c)(1), has a minimum

of $500 and a maximum of $5,000 for

each violation.

(xlvii) Civil penalty for a violation of

a cease and desist order issued under

the National Kiwifruit Research,

Promotion, and Consumer Information

Act, codified at 7 U.S.C. 7468(e), has a

maximum of $500 for each day the

violation occurs.

(xlviii) Civil penalty for a violation of

an order or regulation issued under the

Popcorn Promotion, Research, and

Consumer Information Act, codified at 7

U.S.C. 7487, has a maximum of $1,000

for each violation.

(xlix) Civil penalty for a violation of

an order or regulation issued under the

egg surveillance provisions of the Eggs

Product Inspection Act, codified at 21

U.S.C. 1041(c)(1)(A), has a maximum of

$5,500 for each violation.

(2) Animal and Plant Health

Inspection Service—(i) Civil penalty for

a violation of the Act of January 31,

1942, plant and pest regulations,

codified at 7 U.S.C. 149(b)(2), has a

maximum of $1,100.

(ii) Civil penalty for a violation of the

Federal Plant Pest Act, codified at 7
Federal Register / Vol. 62, No. 147 / Thursday, July 31, 1997 / Rules and Regulations 40927

U.S.C. 150gg(b), has a maximum of

$1,100.

(iii) Civil penalty for a violation of the

Act of August 20, 1912 (commonly

known as the Plant Quarantine Act),

codified at 7 U.S.C. 163, has a maximum

of $1,100.

(iv) Civil penalty for a violation of the

Federal Seed Act, codified at 7 U.S.C.

1596(b), has a minimum of $27.50 and

a maximum of $550.

(v) Civil penalty for a violation of

Animal Welfare Act, codified at 7 U.S.C.

2149(b), has a maximum of $2,750; and

knowing failure to obey a cease and

desist order has a civil penalty of

$1,650.

(vi) Civil penalty for a violation of

Swine Health Protection Act, codified at

7 U.S.C. 3805(a), has a maximum of

$11,000.

(vii) Civil penalty for a violation of

Horse Protection Act, codified at 15

U.S.C. 1825(b)(1), has a maximum of

$2,200.

(viii) Civil penalty for failure to obey

Horse Protection Act disqualification,

codified at 15 U.S.C. 1825(c), has a

maximum of $3,300 and exhibition of

disqualified horse, codified at 15 U.S.C.

1825(c), has a maximum of $3,300.

(xix) Civil penalty for a violation of

the Act of August 30, 1890, codified at

21 U.S.C. 104, has a maximum of

$1,100.

(xx) Civil penalty for a violation of the

Act of May 29, 1884 (commonly known

as the Animal Industry Act), codified at

21 U.S.C. 117(b), has a maximum of

$1,100.

(xxi) Civil penalty for a violation of

the Act of February 2, 1903 (commonly

known as the Cattle Contagious Disease

Act), codified at 21 U.S.C. 122, has a

maximum of $1,100.

(xxii) Civil penalty for a violation of

the Act of March 3, 1905, codified at 21

U.S.C. 127, has a maximum of $1,100.

(xxiii) Civil penalty for a violation of

the Act of July 2, 1962, codified at 21

U.S.C. 134e(a)(2), has a maximum of

$1,100.

(xxiv) Civil penalty for a violation of

the Act of May 6, 1970, codified at 21

U.S.C. 135a(b), has a maximum of

$1,100.

(xxv) Civil penalty for knowingly

violating, or, if in the business,

violating, with respect to terrestrial

plants, any provision of the Endangered

Species Act of 1973 (16 U.S.C. 1531 et

seq.) any permit or certificate issued

thereunder, or any regulation issued

pursuant to section 9(a)(1)(A) through

(F), (a)(2)(A) through (D), (c), (d), as set

forth at 16 U.S.C. 1540(a) (other than

regulations relating to recordkeeping or

filing reports), (f), or (g) of the

Endangered Species Act of 1973 (16

U.S.C. 1538(a)(1)(A) through (F),

(a)(2)(A) through (D), (c), (d), (f), and

(g)), has a maximum of $25,000.

(xxvi) Civil penalty for knowingly

violating, or, if in the business,

violating, with respect to terrestrial

plants, any regulation issued under the

Endangered Species Act (16 U.S.C. 1531

et seq.), as set forth at 16 U.S.C. 1540(a)

[except as provided in subparagraph

(O)], has a maximum of $12,000.

(xxvii) Civil penalty for any violation,

with respect to terrestrial plants, of the

Endangered Species Act (16 U.S.C. 1531

et seq.), as set forth at 16 U.S.C. 1540(a)

[except as provided in subparagraphs

(O) and (P)], has a maximum of $500.

(3) Food and Consumer Service—(i)

Civil penalty for hardship fine in lieu of

disqualification, codified at 7 U.S.C.

2021(a), has a maximum of $11,000 per

violation.

(ii) Civil penalty for trafficking in food

coupons, codified at 7 U.S.C.

2021(b)(3)(B), has a maximum of

$20,000 for each violation, except that

the maximum penalty for violations

occurring during a single investigation

is $40,000.

(iii) Civil penalty for the sale of

firearms, ammunition, explosives, or

controlled substances for coupons,

codified at 7 U.S.C. 2021(b)(3)(C), has a

maximum of $20,000 for each violation

except that the maximum penalty for

violations occurring during a single

investigation is $40,000.

(iv) Civil penalty for any entity that

submits a bid to supply infant formula

to carry out the Special Supplemental

Nutrition Program for Women, Infants

and Children and discloses the amount

of the bid, rebate or discount practices

in advance of the bid opening or for any

entity that makes a statement prior to

the opening of the bids for the purpose

of influencing a bid, codified at 42

U.S.C. 1786(h)(8)(H)(i), has a maximum

of $100,000,000.

(4) Food Safety and Inspection

Service—(i) Civil penalty for a violation

of the Eggs Products Inspection Act,

codified at 21 U.S.C. 1041(c)(1)(A), has

a maximum penalty of $5,500 for each

violation.

(ii) Civil penalty for a failure to file

timely certain reports, codified at 21

U.S.C. 467d, has a maximum civil

penalty of $11 per day for each day the

report is not filed.

(iii) Civil penalty for a failure to file

timely certain reports codified at 21

U.S.C. 677, has a maximum civil

penalty of $11 per day for each day the

report is not filed.

(iv) Civil penalty for a failure to file

timely certain reports codified at 21

U.S.C. 1051, has a maximum civil

penalty of $11 per day for each day the

report is not filed.

(5) Forest Service—(i) Civil penalty

for a willful disregard of the prohibition

against the export of unprocessed timber

originating from Federal lands has a

maximum of $550,000 per violation or

three times the gross value of the

unprocessed timber whichever is

greater, codified at 16 U.S.C.

620d(c)(1)(A).

(ii) Civil penalty for a violation in

disregard of the Forest Resources

Conservation and Shortage Relief Act of

1990 (16 U.S.C. 620 et seq.) or the

regulations that implement such Act

regardless of whether such violation

caused the export of unprocessed timber

originating from Federal lands, has a

maximum penalty of $82,500 per

violation, codified at 16 U.S.C.

620d(c)(2)(A)(i).

(iii) Civil penalty for a person that

should have known that an action was

a violation of the Forest Resources

Conservation and Shortage Relief Act of

1990 (16 U.S.C. 620 et seq.) or the

regulations that implement such Act

regardless of whether such violation

caused the export of unprocessed timber

originating from Federal lands, has a

maximum penalty of $55,000 per

violation, codified at 16 U.S.C.

620d(c)(2)(A)(ii).

(iv) Civil penalty for a willful

violation of the Forest Resources

Conservation and Shortage Relief Act of

1990 (16 U.S.C. 620 et seq.) or the

regulations that implement such Act

regardless of whether such violation

caused the export of unprocessed timber

originating from Federal lands, has a

maximum penalty of $550,000 per

violation, codified at 16 U.S.C.

620d(c)(2)(A)(iii).

(v) Civil penalty for a violation

involving protections of caves, codified

at 16 U.S.C. 4307(a)(2), has a maximum

of $11,000.

(6) Grain Inspection, Packers and

Stockyards Administration—(i) Civil

penalty for a packer violation, codified

at 7 U.S.C. 193(b), has a maximum of

$11,000.

(ii) Civil penalty for livestock market

agency, dealer, failure to register,

codified at 7 U.S.C. 203, has a maximum

of $550 and not more than $27.50 for

each day the violation continues.

(iii) Civil penalty for a violation of

stockyard rate, regulation or practice,

codified at 7 U.S.C. 207(g), has a

maximum civil penalty of $550 and not

more than $27.50 for each day the

violation continues.

(iv) Civil penalty for a stockyard

owner, livestock market agency and

dealer violations, codified at 7 U.S.C.

213(b), has a maximum of $11,000.
40928 Federal Register / Vol. 62, No. 147 / Thursday, July 31, 1997 / Rules and Regulations

(v) Civil penalty for a stockyard

owner, livestock market agency and

dealer compliance order violations,

codified at 7 U.S.C. 215(a), has a

maximum of $550.

(vi) Civil penalty for a failure to file

required reports, codified at 15 U.S.C.

50, has a maximum of $110.

(vii) Civil penalty for live poultry

dealer violations, codified at 7 U.S.C.

228b-2(b), has a maximum of $22,000.

(viii) Civil penalty for a violation,

codified at 7 U.S.C. 86(c), has a

maximum civil penalty of $82,500.

(7) Federal Crop Insurance

Corporation—Civil penalty for any

person who willfully and intentionally

provides materially false or inaccurate

information to the Federal Crop

Insurance Corporation or an approved

insurance provider reinsured by the

Federal Crop Insurance Corporation,

codified at 7 U.S.C. 1506(n)(1)(A), has a

maximum civil penalty of $10,000.

(8) All USDA Agencies—Civil penalty

for work hours and safety violations,

codified at 40 U.S.C. 328, has a

maximum of $11 per day of violation.

PART 278—PARTICIPATION OF

RETAIL FOOD STORES, WHOLESALE

FOOD CONCERNS, AND INSURED

FINANCIAL INSTITUTIONS

1. The authority citation for part 278

continues to read as follows:

Authority: 7 U.S.C. 2011–2032.

§ 278.6 [Amended]

2. 7 CFR 278.6(a) is amended by—(a)

striking ‘‘$10,000’’ and inserting ‘‘an

amount specified in § 3.91(b)(3)(A) of

this title’’; and (b) striking ‘‘$20,000’’

and inserting ‘‘amount specified in Sec.

3.91(b)(3)(B) of this title’’.

PART 400—FEDERAL CROP

INSURANCE CORPORATION,

GENERAL ADMINISTRATIVE

REGULATIONS

1. The authority citation for part 400

continues to read as follows:

Authority: 7 U.S.C. 1506(l).

§ 400.454 [Amended]

2. 7 CFR 400.454(a) introductory text

is amended by striking ‘‘$10,000’’ and

inserting ‘‘an amount specified in

§ 3.91(b)(7) of this title’’.

Dan Glickman,

Secretary of Agriculture.

[FR Doc. 97–19967 Filed 7–30–97; 8:45 am]

BILLING CODE 3410–01–P

NATIONAL CREDIT UNION

ADMINISTRATION

12 CFR Part 701

Loan Interest Rates

AGENCY: National Credit Union

Administration (NCUA).

ACTION: Final rule.

SUMMARY: The current 18 percent per

year federal credit union loan rate

ceiling is scheduled to revert to 15

percent on September 9, 1997, unless

otherwise provided by the NCUA Board

(Board). A 15 percent ceiling would

restrict certain categories of credit and

adversely affect the financial condition

of a number of federal credit unions. At

the same time, prevailing market rates

and economic conditions do not justify

a rate higher than the current 18 percent

ceiling. Accordingly, the Board hereby

continues an 18 percent federal credit

union loan rate ceiling for the period

from September 9, 1997 through March

8, 1999. Loans and lines of credit

balances existing prior to May 18, 1987,

may continue to bear their contractual

rate of interest, not to exceed 21 percent.

The Board is prepared to reconsider the

18 percent ceiling at any time should

changes in economic conditions

warrant.

EFFECTIVE DATE: September 9, 1997.

ADDRESSES: National Credit Union

Administration, 1775 Duke Street,

Alexandria, Virginia, 22314–3428.

FOR FURTHER INFORMATION CONTACT:

Evan Gillette, Investment Officer, Office

of Investment Services, at the above

address, telephone number: (703) 518–

6620.

SUPPLEMENTARY INFORMATION:

Background

Public Law 96–221, enacted in 1979,

raised the loan interest rate ceiling for

federal credit unions from 1 percent per

month (12 percent per year) to 15

percent per year. It also authorized the

Board to set a higher limit, after

consulting with Congress, the

Department of Treasury and other

federal financial agencies, for a period

not to exceed 18 months, if the Board

determined that: (1) Money market

interest rates have risen over the

preceding 6 months; and (2) prevailing

interest rate levels threaten the safety

and soundness of individual credit

unions as evidenced by adverse trends

in growth, liquidity, capital and

earnings.

On December 3, 1980, the Board

determined that the foregoing

conditions had been met. Accordingly,

the Board raised the loan ceiling for 9

months to 21 percent. In the unstable

environment of the first-half of the

1980s, the Board extended the 21

percent ceiling four times. On March 11,

1987, the Board lowered the loan rate

ceiling from 21 percent to 18 percent

effective May 18, 1987. This action was

taken in an environment of falling

market interest rates from 1980 to early

1987. The ceiling has remained at 18

percent to the present.

The Board believes that the 18 percent

ceiling will permit credit unions to

continue to meet their current lending

programs, permit flexibility so that

credit unions can react to any adverse

economic developments, and ensure

that any increase in the cost of funds

would not affect the safety and

soundness of federal credit unions.

The Board would prefer not to set

loan interest rate ceilings for federal

credit unions. Credit unions are

cooperatives and balance loan and share

rates consistent with the needs of their

members and prevailing market rates.

The Board supports free lending

markets and the ability of federal credit

union boards of directors to establish

loan rates that reflect current market

conditions and the interests of their

members. Congress has, however,

imposed loan rate ceilings since 1934.

In 1979, Congress set the ceiling at 15

percent but authorized the Board to set

a ceiling in excess of 15 percent, if

conditions warrant. The following

analysis justifies a ceiling above 15

percent, but at the same time does not

support a ceiling above the current 18

percent. The Board is prepared to

reconsider this action at any time

should changes in economic conditions

warrant.

Money Market Interest Rates

During the 16-month period following

the Board’s March 1996 decision to

continue the 18 percent ceiling, shortterm Treasury rates (3, 6 and 12 months)

increased from 11 to 19 basis points

(Table 1).

TABLE 1.—TREASURY RATES

Maturity

Yields

as of

Mar.

11,

1996

(percent)

Yields

as of

July

17,

1997

(percent)

Change

in basis

points

3-month ............. 5.09 5.20 11

6-month ............. 5.17 5.31 14

1-year ................ 5.37 5.56 19

Treasury rates rose slightly during the

recent six-month period from January 1

to July 17, 1997. Treasury rates on the

3, 6 and 12 month maturities increased