63644 Federal Register / Vol. 62, No. 231 / Tuesday, December 2, 1997 / Rules and Regulations

function for detection of firearms,

explosives, and incendiary devices must

be accomplished through the use of both

firearms and explosive detection

equipment capable of detecting those

devices. The licensee shall subject all

persons except bona fide Federal, State,

and local law enforcement personnel on

official duty to these equipment

searches upon entry into a protected

area. Armed security guards who are on

duty and have exited the protected area

may reenter the protected area without

being searched for firearms. When the

licensee has cause to suspect that an

individual is attempting to introduce

firearms, explosives, or incendiary

devices into protected areas, the

licensee shall conduct a physical patdown search of that individual.

Whenever firearms or explosives

detection equipment at a portal is out of

service or not operating satisfactorily,

the licensee shall conduct a physical

pat-down search of all persons who

would otherwise have been subject to

equipment searches. The individual

responsible for the last access control

function (controlling admission to the

protected area) must be isolated within

a bullet-resisting structure as described

in paragraph (c)(6) of this section to

assure his or her ability to respond or

to summon assistance.

* * * * *

(4) All vehicles, except under

emergency conditions, must be searched

for items which could be used for

sabotage purposes prior to entry into the

protected area. Vehicle areas to be

searched must include the cab, engine

compartment, undercarriage, and cargo

area. All vehicles, except as indicated in

this paragraph, requiring entry into the

protected area must be escorted by a

member of the security organization

while within the protected area and, to

the extent practicable, must be off

loaded in the protected area at a specific

designated materials receiving area that

is not adjacent to a vital area. Escort is

not required for designated licensee

vehicles or licensee-owned or leased

vehicles entering the protected area and

driven by personnel having unescorted

access. Designated licensee vehicles

shall be limited in their use to onsite

plant functions and shall remain in the

protected area except for operational,

maintenance, repair, security and

emergency purposes. The licensee shall

exercise positive control over all such

designated vehicles to assure that they

are used only by authorized persons and

for authorized purposes.

(5)(i) A numbered picture badge

identification system must be used for

all individuals who are authorized

access to protected areas without escort.

An individual not employed by the

licensee but who requires frequent and

extended access to protected and vital

areas may be authorized access to such

areas without escort provided that he or

she displays a licensee-issued picture

badge upon entrance into the protected

area which indicates:

(A) Non-employee no escort required;

(B) Areas to which access is

authorized; and

(C) The period for which access has

been authorized.

(ii) Badges shall be displayed by all

individuals while inside the protected

area. Badges may be removed from the

protected area when measures are in

place to confirm the true identity and

authorization for access of the badge

holder upon entry into the protected

area.

* * * * *

(7) * * *

(i) * * *

(A) Establish a current authorization

access list for all vital areas. The access

list must be updated by the cognizant

licensee manager or supervisor at least

once every 31 days and must be

reapproved at least quarterly. The

licensee shall include on the access list

only individuals whose specific duties

require access to vital areas during

nonemergency conditions.

* * * * *

(8) All keys, locks, combinations, and

related access control devices used to

control access to protected areas and

vital areas must be controlled to reduce

the probability of compromise.

Whenever there is evidence or suspicion

that any key, lock, combination, or

related access control devices may have

been compromised, it must be changed

or rotated. The licensee shall issue keys,

locks, combinations and other access

control devices to protected areas and

vital areas only to persons granted

unescorted facility access. Whenever an

individual’s unescorted access is

revoked due to his or her lack of

trustworthiness, reliability, or

inadequate work performance, keys,

locks, combinations, and related access

control devices to which that person

had access, must be changed or rotated.

* * * * *

Dated at Rockville, Maryland, this 24th day

of November, 1997.

For the Nuclear Regulatory Commission.

John C. Hoyle,

Secretary of the Commission.

[FR Doc. 97–31515 Filed 12–1–97; 8:45 am]

BILLING CODE 7590–01–P

FARM CREDIT ADMINISTRATION

12 CFR Part 614

RIN 3052–AB78

Loan Policies and Operations; Loan

Sales Relief

AGENCY: Farm Credit Administration.

ACTION: Direct final rule with

opportunity for comment.

SUMMARY: The Farm Credit

Administration (FCA), through the FCA

Board (Board), issues a direct final rule

amending its regulations relating to loan

sales into a secondary market. This

action conforms FCA regulations to

recent statutory amendments to the

Farm Credit Act of 1971, as amended,

(Act) made by sections 206 and 208 of

the Farm Credit System Reform Act of

1996 (1996 Act). These amendments

provide that loans designated by Farm

Credit System institutions for sale into

a secondary market are not subject to

minimum stock purchase or borrower

rights requirements.

DATES: If no significant adverse

comment is received on or before

January 2, 1998, these regulations shall

be effective upon the expiration of 30

days after publication in the Federal

Register during which either or both

Houses of Congress are in session.

Notice of the effective date will be

published in the Federal Register. If

significant adverse comment is received,

the FCA will publish a notice of

withdrawal of the regulations and

indicate how the Agency expects to

proceed with further rulemaking.

ADDRESSES: Comments may be

submitted via electronic mail to ‘‘regcomm@fca.gov’’ or facsimile

transmission to (703) 734–5784.

Comments also may be mailed or

delivered to Patricia W. DiMuzio,

Director, Regulation Development

Division, Office of Policy Development

and Risk Control, Farm Credit

Administration, 1501 Farm Credit Drive,

McLean, Virginia 22102–5090. Copies of

all communications received will be

available for review by interested parties

in the Office of Policy Development and

Risk Control, Farm Credit

Administration.

FOR FURTHER INFORMATION CONTACT:

John J. Hays, Policy Analyst, Regulation

Development Division, Office of

Policy Development and Risk Control,

(703) 883–4498, TDD (703) 883–4444;

or

William Larsen, Senior Attorney, Legal

Counsel Division, Office of General

Counsel, (703) 883–4020, TDD (703)

883–4444.
Federal Register / Vol. 62, No. 231 / Tuesday, December 2, 1997 / Rules and Regulations 63645

SUPPLEMENTARY INFORMATION: The Farm

Credit System Reform Act of 1996 i

made significant changes in title VIII of

the Act, which governs the secondary

market for agricultural loans. The 1996

Act also provided regulatory relief to

Farm Credit System (FCS) institutions.

This rulemaking conforms FCA

regulations with provisions of the 1996

Act that grant relief from minimum

stock purchase requirements and

borrower rights for Loans designated by

FCS institutions for sale into a

secondary market.ii

I. Changes Pursuant to Section 206 of

The 1996 Act

Section 206 of the 1996 Act amended

section 4.3A of the Act by granting relief

from stock purchase requirements for

loans designated for sale into a

secondary market. As amended, section

4.3A of the Act establishes that an

institution’s bylaws may provide that:

(1) For loans made on or after enactment

of section 206 that are designated for

sale into a secondary market, no voting

stock or participation certificate

(collectively, equity or equities)

purchase requirement shall apply; and

(2) for loans made before the enactment

of section 206 that are sold into a

secondary market, all equities

purchased with respect to these loans

shall, subject to the institution meeting

its regulatory minimum permanent

capital requirements, be retired. Section

206 further provides that if such

designated loans are not sold into a

secondary market within 180 days, the

otherwise applicable equity purchase

requirement shall then apply. However,

an institution’s bylaws may provide that

if a designated loan is subsequently sold

into a secondary market, the equities

relating to the loan shall be retired.

Pursuant to these amendments to

section 4.3A of the Act, the FCA is

making conforming amendments to

§ 614.4335 pertaining to borrower stock

requirements. Amended § 614.4335(a)

provides that, in general, a borrower

must meet the institution’s minimum

borrower stock purchase requirement as

a condition of obtaining a loan.

However, under amended § 614.4335(b),

an institution’s bylaws may provide that

the institution’s minimum borrower

stock purchase requirement does not

apply if a loan is designated, at the time

the loan is made, for sale into a

secondary market. Amended

§ 614.4335(b) also implements the

statutory requirement that if a

designated loan is not sold into a

secondary market upon the expiration of

180 days, the minimum borrower stock

purchase requirement will apply to the

loan.

Further reflecting the 1996 Act

amendments to section 4.3A of the Act,

§ 614.4335 is amended to add

provisions concerning the retirement of

borrower stock for loans sold into a

secondary market. Amended

§ 614.4335(c)(2) states that an

institution’s bylaws may provide that all

outstanding voting stock held by a

borrower with respect to a loan shall be

retired when the loan is sold into a

secondary market. Thus, if the

institution’s bylaws so provide, if a

designated loan is sold into a secondary

market after 180 days, all outstanding

stock with respect to the loan shall be

retired. An institution’s bylaws also may

provide that all stock held by a borrower

with respect to a loan made before the

enactment of the 1996 Act and sold into

a secondary market shall be retired.

Existing provisions of § 614.4335 that

require an institution to meet minimum

permanent capital requirements and

specify the treatment of loans sold with

or without recourse are not affected by

the 1996 Act amendments and are

redesignated to § 614.4335(c)(1). Finally,

amended § 614.4335(d) provides that

paragraphs (b)(1) and (c)(2) apply

regardless of whether the institution

retains a subordinated participation

interest in a loan or pool of loans or

contributes to a cash reserve.

II. Changes Pursuant to Section 208 of

The 1996 Act

Section 208 of the 1996 Act amended

section 4.14A of the Act by changing the

definition of the term ‘‘loan’’ to exclude

from that definition loans designated, at

the time the loans are made, for sale into

a secondary market. The effect of this

statutory change is that the borrower

rights provisions of the Act do not apply

to loans designated, at the time the

loans are made, for sale into a secondary

market.iii As is the case with respect to

the reattachment of stock purchase

requirements under section 206 of the

1996 Act, if a designated loan is not sold

into a secondary market within 180 days

of designation, borrower rights become

applicable unless and until the loan is

subsequently sold into a secondary

market.

The FCA is amending § 614.4336 in

order to conform it to amended section

4.14A of the Act. Amended § 614.4336

sets forth treatment of borrower rights in

three loan sale situations: (1) Loan sales

to Farm Credit System institutions; (2)

loans designated for sale into a

secondary market; and (3) other loan

sales. Under amended § 614.4336(a), a

loan sold to another qualified lender

retains borrower rights. Under amended

§ 614.4336(b), loans made on or after

February 10, 1996, that are designated at

the time they are made for sale into a

secondary market are not subject to

borrower rights, unless the loan is not

sold within 180 days of the date of

designation. After 180 days, borrower

rights apply to a designated loan unless

and until it is subsequently sold into a

secondary market. Amended

§ 614.4336(c) retains the notice and

relinquishment provisions that

currently apply to loan sales to other

lenders.

In addition to amending the definition

of ‘‘loan’’ in section 4.14A of the Act to

remove borrower rights protections from

loans designated for sale into a

secondary market, section 208(b) of the

1996 Act applied the amended

definition of ‘‘loan’’ to section 8.9(b) of

the Act, effectively removing the section

8.9(b) borrower rights protections that

applied before a loan was sold into the

secondary market for agricultural loans

established by title VIII of the Act. This

statutory change requires the removal of

current § 614.4367(b) to conform FCA

regulations to the amended Act. In its

current form, § 614.4367(b)

implemented section 8.9(b) of the Act

by requiring certain disclosures for

loans that will or may be pooled for sale

into the secondary market. The required

disclosures included notice that an

applicant could refuse to have his or her

loan pooled and thus retain statutory

borrower rights.

Disclosure was also required that,

within 3 days of commitment, the

applicant had the right to refuse to

allow the loan to be pooled. Because

section 208 of the 1996 Act effectively

provides that borrower rights do not

apply to loans designated for sale into

a secondary market, the disclosures and

approvals required by § 614.4367(b) no

longer apply. Accordingly, the FCA is

removing paragraph (b) of § 614.4367

and redesignating the remaining

paragraphs.

In the event that a designated loan is

not sold into the secondary market

within 180 days, the terms of the

borrower’s loan will change in two

material respects. The borrower is

required to purchase stock, which will

increase the effective interest rate on the

loan. The borrower will also be entitled

to borrower rights under the Act.

Institutions should ensure that

borrowers fully understand their

obligations and rights at the time the

loan is made. The FCA has not included

special disclosure obligations for loans

designated for sale into the secondary

market because the existing

requirements of § 614.4367 are sufficient

to ensure that borrowers are

appropriately informed of: (1) Their

obligation to purchase stock if the loan
63646 Federal Register / Vol. 62, No. 231 / Tuesday, December 2, 1997 / Rules and Regulations

is not sold as intended; (2) the change

in the effective interest rate resulting

from the stock purchase requirement;

and (3) the borrower rights that will

apply.

III. Direct Final Rulemaking

With the promulgation of these

regulations, the FCA is using, for the

first time, the ‘‘direct final’’ procedure

for rulemaking. Direct final rulemaking

permits agencies to adopt

noncontroversial rules on an expedited

basis, without going through the usual

proposal and final stages of notice-andcomment rulemaking. Direct final

rulemaking was recommended for

promulgation of noncontroversial rules

by the Administrative Conference of the

United States (ACUS) in its

Recommendation 95–4, adopted June

15, 1995. Vice President Gore also

recommended direct final rulemaking in

his report on the National Performance

Review (NPR) as a means for agencies to

streamline the rulemaking process. See

‘‘Improving Regulatory Systems,’’

Accompanying Report of the NPR,

September, 1993.

The FCA is committed to the use of

innovative rule-making techniques to

further its strategic goal of

implementing effective and efficient

regulations. The FCA believes that the

use of direct final rulemaking in

appropriate circumstances offers the

means to streamline the rulemaking

process for noncontroversial rules by

reducing the time and resources needed

for development, review, clearance, and

publication, while still affording the

public adequate opportunity to

comment on or object to a rule.

In direct final rulemaking, the agency

gives notice that a rule will become final

at a specified future date unless the

agency receives significant adverse

comment on the rule during the

comment period established in the

rulemaking notice. The Administrative

Procedure Act, 5 U.S.C. 551–59, et seq.

(APA), supports this streamlined

technique of rulemaking. Direct final

rulemaking is justified under section

553(b)(B) of the APA. Section 553(b)(B)

is the APA’s ‘‘good cause’’ exemption

for omitting notice and comment on a

rule where an agency finds ‘‘that notice

and public procedure thereon are

impracticable, unnecessary, or contrary

to the public interest.’’ In direct final

rulemaking, the agency finds that the

rule is sufficiently straightforward and

noncontroversial to make normal notice

and comment unnecessary under the

APA. However, rather than eliminating

public comment altogether, as would be

permissible under section 553(b)(B), the

agency gives the public an opportunity

to rebut the agency’s conclusion that

public input on the rule is unnecessary.

Notwithstanding this ‘‘good cause’’

rationale under section 553(b)(B), direct

final rulemaking also meets the basic

notice-and-comment requirements of

the APA, although the timing and

format of notice and opportunity for

comment necessarily differs from a

typical notice-and-comment

rulemaking. If, during the comment

period provided, the agency receives a

significant adverse comment on a direct

final rule, the agency commits to

withdraw the rule and may either issue

another direct final rule or promulgate

the rule in proposed form. A significant

adverse comment is defined as one

where the commenter explains why the

rule would be inappropriate, including

challenges to the rule’s underlying

premise or approach, or would be

ineffective or unacceptable without a

change. In general, a significant adverse

comment would raise an issue serious

enough to warrant a substantive

response from the agency in a noticeand-comment proceeding.

The FCA believes that the secondary

market loan sale amendments fit the

category of rules appropriate for direct

final rulemaking. These changes merely

conform the regulations to the 1996 Act.

The changes remove or amend current

regulatory requirements that do not

reflect the changes in the Act. As such,

the changes are straightforward and

noncontroversial. For these reasons, the

FCA does not anticipate that there will

be significant adverse comment on this

rulemaking. Nonetheless, in keeping

with the procedures recommended by

ACUS for direct final rulemaking, the

FCA is providing a 30-day period from

publication during which members of

the public may comment on the rule. If

significant adverse comment is received

during the comment period, the FCA

will publish a notice of withdrawal of

the rule that will also indicate how

further rulemaking will proceed. If no

significant adverse comment is received,

the FCA will publish its customary

notice of the effective date of the rule

following the required Congressional

waiting period under section 5.17(c)(1)

of the Act.

List of Subjects in 12 CFR Part 614

Agriculture, Banks, banking, Flood

insurance, Foreign trade, Reporting and

recordkeeping requirements, Rural

areas.

For the reasons set out in the

preamble, part 614 of chapter VI, title 12

of the Code of Federal Regulations is

amended to read as follows:

PART 614—LOAN POLICIES AND

OPERATIONS

1. The authority citation for part 614

is revised to read as follows:

Authority: 42 U.S.C. 4012a, 4104a, 4104b,

4106, and 4128; secs. 1.3, 1.5, 1.6, 1.7, 1.9,

1.10, 2.0, 2.2, 2.3, 2.4, 2.10, 2.12, 2.13, 2.15,

3.0, 3.1, 3.3, 3.7, 3.8, 3.10, 3.20, 3.28, 4.3A,

4.12, 4.12A, 4.13, 4.13B, 4.14, 4.14A, 4.14C,

4.14D, 4.14E. 4.18, 4.18A, 4.19, 4.36, 4.37,

5.9, 5.10, 5.17, 7.0, 7.2, 7.6, 7.7, 7.8, 7.12,

7.13, 8.0, 8.5, 8.9 of the Farm Credit Act (12

U.S.C. 2011, 2013, 2014, 2015, 2017, 2018,

2019, 2071, 2073, 2074, 2075, 2091, 2093,

2094, 2096, 2121, 2122, 2124, 2128, 2129,

2131, 2141, 2149, 2154a, 2183, 2184, 2199,

2201, 2202, 2202a, 2202c, 2202d, 2202e,

2206, 2206a, 2207, 2219a, 2219b, 2243, 2244,

2252, 2279a, 2279a–2, 2279b, 2279b–1,

2279b–2, 2279f, 2279f–1, 2279aa, 2279aa–5,

2279aa–9); sec. 413 of Pub. L. 100–233, 101

Stat. 1568, 1639.

Subpart H—Loan Purchases and Sales

2. Sections 614.4335 and 614.4336 are

revised to read as follows:

§ 614.4335 Borrower stock requirements.

(a) In general. Except as provided in

paragraph (b) of this section, a borrower

shall meet the institution’s minimum

borrower stock purchase requirements

as a condition of obtaining a loan.

(b) Loans designated for sale into a

secondary market. (1) An institution’s

bylaws may provide that the

institution’s minimum borrower stock

purchase requirements do not apply if a

loan is designated, at the time it is

made, for sale into a secondary market.

(2) If a loan designated for sale under

paragraph (b)(1) of this section is not

sold into a secondary market during the

180-day period that begins on the date

of designation, the institution’s

minimum borrower stock purchase

requirements shall apply.

(c) Retirement of borrower stock. (1) In

general. Borrower stock may be retired

only if the institution meets the

minimum permanent capital

requirements imposed by the FCA

pursuant to the Act or regulations and,

except as provided in paragraph (c)(2) of

this section, in accordance with the

following:

(i) Borrower stock may be retired if

the entire loan is sold without recourse,

provided that when the loan is sold

without recourse to another Farm Credit

System institution, the borrower may

elect to hold stock in either the selling

or purchasing institution.

(ii) Borrower stock may not be retired

when the entire loan is sold with

recourse.

(iii) When an interest in a loan is sold

without recourse, a proportionate

amount of borrower stock may be
Federal Register / Vol. 62, No. 231 / Tuesday, December 2, 1997 / Rules and Regulations 63647

iPub. L. 104–105 (February 10, 1996).

ii Generally, for each loan made by a qualified

lender, a borrower is subject to minimum stock

purchase requirements of 2 percent of the loan or

$1,000, whichever is less. The borrower rights

provisions of the Act impose certain disclosure and

other obligations on lenders.

iiiThe specific borrower rights under the Act that

are affected by the section 4.14A definitional

change include reconsideration of actions (sec.

4.14), restructuring distressed loans (sec. 4.14A),

effect of restructuring on borrower stock (sec.

4.14B), review of restructuring denials (sec. 4.14C),

protection of borrowers who meet all loan

obligations (sec. 4.14D), and right of first refusal

(sec. 4.36).

As enacted, the language of section 208 of the

1996 Act amending the definition of ‘‘loan’’ leaves

no doubt that Congress intended to include the

section 4.36 borrower’s right of first refusal among

the borrower rights that become inapplicable when

a loan is designated for sale into a secondary

market. This is consistent with section 8.9(a) of the

Act, which specifically exempts loans pooled under

title VIII from section 4.36 borrower rights.

However, section 208 of the 1996 Act did not

amend the introductory paragraph of section

4.14A(a), which limits the applicability of the

section’s definitions to those ‘‘used in this part [C

of title IV].’’ Since section 4.36 is located in part

G (‘‘Miscellaneous’’) of title IV, it could technically

be argued that the amended definition of ‘‘loan’’

does not apply to section 4.36. Notwithstanding this

apparent drafting inconsistency, the FCA believes

Congressional intent is clear and interprets the 1996

Act to exempt loans designated for sale into a

secondary market from the section 4.36 borrower’s

right of first refusal.

retired, but in no event may stock be

retired below the institution’s minimum

stock purchase requirements for the

interest retained.

(iv) If an institution repurchases a

loan on which the stock has been

retired, the borrower shall be required to

repurchase stock in the amount of the

minimum stock purchase requirement.

(2) Loans sold into a secondary

market. An institution’s bylaws may

provide that all outstanding voting stock

held by a borrower with respect to a

loan shall be retired when the loan is

sold into a secondary market.

(d) Applicability. In the case of a loan

sold into a secondary market under title

VIII of the Act, paragraphs (b)(1) and

(c)(2) of this section apply regardless of

whether the institution retains a

subordinated participation interest in a

loan or pool of loans or contributes to

a cash reserve.

§ 614.4336 Borrower rights in connection

with loan sales.

(a) Loan sales to Farm Credit System

institutions. Loans made by qualified

lenders (as defined in section

4.14A(a)(6) of the Act) and interests in

such loans that are sold to other

qualified lenders are subject to the

borrower rights provisions of title IV of

the Act.

(b) Loans designated for sale into a

secondary market. (1) Except as

provided in paragraph (b)(2) of this

section, the borrower rights provisions

of sections 4.14, 4.14A, 4.14B, 4.14C,

4.14D, and 4.36 of the Act do not apply

to a loan made on or after February 10,

1996, that is designated for sale into a

secondary market at the time it is made.

(2) If a loan designated for sale under

paragraph (b)(1) of this section is not

sold into a secondary market during the

180-day period that begins on the date

of designation, the borrower rights

provisions specified as inapplicable

pursuant to paragraph (b)(1) of this

section shall apply, provided that if the

loan is subsequently sold into a

secondary market, the borrower rights

specified in paragraph (b)(1) of this

section become inapplicable beginning

on the date of the subsequent sale.

(c) Other loan sales. (1) Except for

loans sold to another Farm Credit

institution or designated for sale into a

secondary market, a qualified lender

must comply with one of the following

two requirements before selling a loan

or interest in a loan that is subject to the

borrower rights provisions of title IV of

the Act:

(i) Include provisions in the contract

with the borrower, or a written

modification thereto, that ensure that

the purchaser of the loan will be

obligated to accord the borrower the

same rights qualified lenders must

provide under the Act; or

(ii) Obtain from the borrower a signed

written consent to the sale that

explicitly states that the borrower

relinquishes the statutory borrower

rights. The consent to the loan sale and

the relinquishment of the borrower

rights shall have no effect until the loan

is actually sold and shall be ineffective

in the event that the lender or any other

Farm Credit System institution

repurchases the loan or any interest

therein.

(2) Before obtaining the borrower’s

consent to the sale of the loan and the

relinquishment of borrower rights

pursuant to paragraph (c)(1)(ii) of this

section, the lending institution shall

disclose in writing to the borrower:

(i) A full and complete description of

the statutory rights that the borrower is

asked to relinquish;

(ii) Any changes in the loan terms or

conditions that will occur if the loan is

not sold; and

(iii) The fact that the relinquishment

of the statutory borrower rights will not

become effective unless the loan is

actually sold and shall become

ineffective in the event that the lender

or any other Farm Credit System

institution repurchases the loan or any

interest therein.

(3) The making of a loan may not be

conditioned on the borrower’s consent

to its sale and relinquishment of

statutory borrower rights.

Subpart K—Disclosure of Loan

Information

§ 614.4367 [Amended]

3. Section 614.4367 is amended by

removing paragraph (b) and

redesignating paragraphs (c) through (e)

as paragraphs (b) through (d).

Dated: November 24, 1997.

Nan P. Mitchem,

Acting Secretary, Farm Credit Administration

Board.

[FR Doc. 97–31569 Filed 12–1–97; 8:45 am]

BILLING CODE 6705–01–P

DEPARTMENT OF HEALTH AND

HUMAN SERVICES

Food and Drug Administration

21 CFR Part 101

[Docket No. 93P–0448]

Food Labeling; Serving Sizes;

Reference Amount for Salt, Salt

Substitutes, Seasoning Salts (e.g.,

Garlic Salt)

AGENCY: Food and Drug Administration,

HHS.

ACTION: Final rule.

SUMMARY: The Food and Drug

Administration (FDA) is amending the

nutrition labeling regulations to change

the reference amount customarily

consumed per eating occasion for the

food category ‘‘Salt, salt substitutes,

seasoning salts (e.g., garlic salt)’’ from a

weight-based reference amount of 1

gram (g) to a volume-based reference

amount of 1/4 teaspoon (tsp). This

action is necessary to provide

consistency with the agency’s criteria

for determining volume-based versus

weight-based reference amounts for all

product categories.

DATES: Effective January 1, 2000. This

regulation applies to all affected

products initially introduced or initially

delivered for introduction into interstate

commerce on or after this date.

Voluntary compliance may begin

January 2, 1998. Written comments on

the information collection provisions

should be submitted by January 2, 1998.

ADDRESSES: Submit written comments

on the information collection provisions

to the Office of Information and

Regulatory Affairs, Office of

Management and Budget (OMB), New

Executive Office Bldg., 725 17th St.