Federal Register / Vol. 62, No. 28 / Tuesday, February 11, 1997 / Rules and Regulations 6111

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 5,000

producers of walnuts in the production

area and approximately 55 handlers

subject to regulation under the

marketing order. Small agricultural

producers have been defined by the

Small Business Administration (13 CFR

121.601) 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. The majority of

California walnut producers and

handlers may be classified as small

entities.

The California walnut marketing

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 California walnuts. 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 is formulated and

discussed in a public meeting. Thus, all

directly affected persons have an

opportunity to participate and provide

input.

The Board met on September 6, 1996,

and unanimously recommended 1996–

97 expenditures of $2,301,869 and an

assessment rate of $0.0117 per

kernelweight pound of merchantable

walnuts certified. In comparison, last

year’s budgeted expenditures were

$2,280,175. The assessment rate of

$0.0117 is $0.0001 higher than last

year’s established rate. Major

expenditures recommended by the

Board for the 1996–97 year include

$232,684 for general expenses, $150,508

for office expenses, $1,840,677 for

research expenses, $48,000 for a

production research director, and

$30,000 for the reserve. Budgeted

expenses for these items in 1995–96

were $246,847, $140,908, $1,828,420,

$34,000, and $30,000, respectively.

The assessment rate recommended by

the Board was derived by dividing

anticipated expenses by expected

merchantable certifications of California

walnuts. Walnut shipments for the year

are estimated at 198,000,000

kernelweight pounds which will yield

$2,316,600 in assessment income,

which will be adequate to cover

budgeted expenses. Unexpended funds

may be used temporarily to defray

expenses of the subsequent marketing

year, but must be made available to the

handlers from whom collected within

five months after the end of the year.

An interim final rule regarding this

action was published in the November

29, 1996, issue of the Federal Register

(61 FR 60512). That rule provided for a

30-day comment period. No comments

were received.

While this rule will impose some

additional costs on handlers, the costs

are in the form of uniform assessments

on all handlers. Some of the additional

costs may be passed on to producers.

However, these costs will be offset by

the benefits derived by the operation of

the marketing order. Therefore, the AMS

has determined that this rule will not

have a significant economic impact on

a substantial number of small entities.

The assessment rate established in

this rule will 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 is

effective for an indefinite period, the

Board will continue to meet prior to or

during each marketing year to

recommend a budget of expenses and

consider recommendations for

modification of the assessment rate. 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 will evaluate Board

recommendations and other available

information to determine whether

modification of the assessment rate is

needed. Further rulemaking will be

undertaken as necessary. The Board’s

1996–97 budget and those for

subsequent marketing years will be

reviewed and, as appropriate, approved

by the Department.

After consideration of all relevant

material presented, including the

information and recommendation

submitted by the Board and other

available information, it is hereby found

that this rule, as hereinafter set forth,

will tend to effectuate the declared

policy of the Act.

Pursuant to 5 U.S.C. 553, it is also

found and determined that good cause

exists for not postponing the effective

date of this rule until 30 days after

publication in the Federal Register

because: (1) The Board needs to have

sufficient funds to pay its expenses

which are incurred on a continuous

basis; (2) the 1996–97 marketing year

began on August 1, 1996, and the

marketing order requires that the rate of

assessment for each marketing year

apply to all assessable walnuts handled

during such marketing year; (3) handlers

are aware of this action which was

unanimously recommended by the

Board at a public meeting and is similar

to other assessment rate actions issued

in past years; and (4) an interim final

rule was published on this action and

provided for a 30-day comment period;

no comments were received.

List of Subjects in 7 CFR Part 984

Marketing agreements, Nuts,

Reporting and recordkeeping

requirements, Walnuts.

For the reasons set forth in the

preamble, 7 CFR part 984 is amended as

follows:

PART 984—WALNUTS GROWN IN

CALIFORNIA

Accordingly, the interim final rule

amending 7 CFR part 984 which was

published at 61 FR 60512 on November

29, 1996, is adopted as a final rule

without change.

Dated: February 5, 1997.

Robert C. Keeney

Director, Fruit and Vegetable Division.

[FR Doc. 97–3284 Filed 2–10–97; 8:45 am]

BILLING CODE 3410–02–P

Food Safety and Inspection Service

9 CFR Part 391

[Docket No. 96–013C]

RIN 0583–AC13

Fee Changes for Inspection Services

AGENCY: Food Safety and Inspection

Service, USDA.

ACTION: Correcting amendments.

SUMMARY: This document contains

corrections to the final regulation, ‘‘Fee

Increase for Inspection Services,’’ which

was published on December 13, 1996

(61 FR 65459). The final rule changed

the fees charged to meat and poultry

establishments, importers, and exporters

for providing voluntary inspection,

identification, and certification services;

overtime and holiday services; and

laboratory services.

EFFECTIVE DATE: February 11, 1997.

FOR FURTHER INFORMATION CONTACT:

William L. West, Director, Budget and

Finance Division, Administrative

Management, (202) 720–3367.
6112 Federal Register / Vol. 62, No. 28 / Tuesday, February 11, 1997 / Rules and Regulations

1A reportable position is any open position held

or controlled by a trader at the close of business in

any one futures contract of a commodity traded on

any one contract market that is equal to or in excess

of the quantities fixed by the Commission in § 15.03

of the regulations, 17 CFR § 15.03 (1996).

SUPPLEMENTARY INFORMATION: On

December 13, 1996, FSIS published

‘‘Fee Increase for Inspection Services’’

(61 FR 65459). Although the preamble

discussion of the fee changes was

correct, the regulatory amendments

were incorrect. The regulation continues

to list the old fees. This notice corrects

this oversight.

List of Subjects in 9 CFR Part 391

Fees and charges, Meat inspection,

Poultry products inspection.

PART 391—FEES AND CHARGES FOR

INSPECTION SERVICES

Accordingly, 9 CFR 391 is corrected

by making the following correcting

amendments:

1. The authority citation for part 391

continues to read as follows:

Authority: 7 U.S.C. 138f; 7 U.S.C. 394,

1622, and 1624; 21 U.S.C. 451 et seq.; 21

U.S.C. 601–695; 7 CFR 2.18 and 2.53.

2. Sections 391.2, 391.3, and 391.4 are

revised to read as follows:

§ 391.2 Base time rate.

The base time rate for inspection

services provided pursuant to §§ 350.7,

351.8, 351.9, 352.5, 354.101, 355.12, and

362.5 shall be $32.88 per hour, per

program employee.

§ 391.3 Overtime and holiday rate.

The overtime and holiday rate for

inspection services provided pursuant

to §§ 307.5, 350.7, 351.8, 351.9, 352.5,

354.101, 355.12, 362.5, and 381.38 shall

be $33.76 per hour, per program

employee.

§ 391.4 Laboratory services rate.

The rate for laboratory services

provided pursuant to §§ 350.7, 351.9,

352.5, 354.101, 355.12, and 362.5 shall

be $48.56 per hour, per program

employee.

Done at Washington, DC, on February 5,

1997.

Thomas J. Billy,

Administrator.

[FR Doc. 97–3371 Filed 2–10–97; 8:45 am]

BILLING CODE 3410–DM–P

COMMODITY FUTURES TRADING

COMMISSION

17 CFR Parts 15, 18 and 19

Reports by Large Traders; Cash

Position Reports in Grains (including

Soybeans) and Cotton

AGENCY: Commodity Futures Trading

Commission.

ACTION: Final rulemaking.

SUMMARY: The Commodity Futures

Trading Commission (Commission) is

amending Parts 15, 18 and 19 of the

regulations under the Commodity

Exchange Act (‘‘Act’’), 17 CFR Parts 15,

18 and 19 (1996). The amendments to

Part 18 require that traders who hold

reportable futures or option positions

file the CFTC Form 40, ‘‘Statement of

Reporting Trader,’’ only upon request by

the Commission or its designee. The

amendments to Parts 15 and 19 provide

that monthly cash position reports are

required only if a trader’s net long or net

short combined futures and futures

equivalent options position exceeds the

levels specified in rule 150.2. The

proposal to amend Parts 15, 18 and 19

was included with a number of other

proposed amendments that primarily

concerned option large trader reports.

The Commission has determined to

proceed with the changes to Parts 15, 18

and 19 immediately and will consider

the remaining changes separately at a

later time. Consideration of final rules

on those changes relating to options

reporting are dependent, in part, on the

completion of upgrades to the

Commission’s computer system.

EFFECTIVE DATE: April 14, 1997.

FOR FURTHER INFORMATION CONTACT:

Lamont Reese, Commodity Futures

Trading Commission, Division of

Economic Analysis, Three Lafayette

Centre, 1155 21st Street, N.W.,

Washington, D.C. 20581.

SUPPLEMENTARY INFORMATION:

I. Background

On July 18, 1996, the Commission

published a notice of proposed

rulemaking in the Federal Register that

affects reports from large traders filed

pursuant to rules 18.04 and 19.01(a)(1).

See 61 FR 37409 (July 18, 1996). The

amendments to Parts 18 and 19 were

included with a number of other

proposed amendments to the

Commission’s reporting rules that

primarily concerned options large trader

reports. Consideration of final rules

with respect to option reporting is

dependent, in part, on implementation

of certain upgrades to the Commission’s

computer system.

Under Commission rule 18.04, traders

who become reportable in futures must

file a CFTC Form 40, ‘‘Statement of

Reporting Trader,’’ within ten business

days following the day that the trader’s

position equals or exceeds specified

levels.1 Additional filings are required

to be made annually as specified in rule

18.04(d). 17 CFR 18.04 (1996). Traders

who become reportable in options are

required to file the Form 40 only in

response to a special call by the

Commission. The Form 40 requires the

disclosure of information about

ownership and control of futures and

option positions held by the reporting

trader as well as the trader’s use of the

markets for hedging.

As explained in the Notice of

Proposed Rulemaking, when an account

first becomes reportable in futures, the

futures commission merchant, clearing

member or foreign broker reporting the

account files a CFTC Form 102 that

identifies all persons having a ten

percent or more financial interest in the

account and those persons who control

the trading of the account. Although all

persons named on the Form 102 may be

considered a ‘‘trader’’ according to the

Commission’s definition, as a matter of

administrative practice Commission

staff has not initiated requests for initial

and updated Form 40s from all such

traders. Generally staff has taken action

against traders only if the traders had

failed to respond to the staff’s written

request. 61 FR 37414 (July 18, 1996). In

view of this, the Commission proposed

to amend rule 18.04 to codify this

practice by requiring that traders file

Form 40s only in response to a special

call and to delegate the authority to

make these calls to the Director of the

Division of Economic Analysis.

With regard to Part 19, the

Commission requires that persons

owning or controlling futures positions

in commodities for which the

Commission has established speculative

limits file reports concerning their long

and short cash positions, i.e., stocks of

the commodities owned and the

quantity of their fixed-price purchase

and sale commitments. See 17 CFR Part

19 (1996). These commodities include

the grains, the soybean complex and

cotton. See 17 CFR Part 150 (1996). The

primary purpose for these reports is to

determine if the futures and option

positions of traders that exceed the

Commission’s speculative limits qualify

as hedging as defined in section 1.3(z)

of the Commission’s regulations.

Although the speculative limits set forth

in rule 150.2 apply to the net long or net

short combined futures and futures

equivalent option position of a trader,

the Commission’s definition of a

reportable position contained in rule

15.00 considers only the futures

position to determine if a trader is

reportable for purposes of reports filed