This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents. Prices of

new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

6851

Vol. 62, No. 31

Friday, February 14, 1997

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 966

[Docket No. FV96–966–1 FIR]

Tomatoes Grown in Florida;

Assessment Rate

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Final rule.

SUMMARY: The Department of

Agriculture (Department) is adopting as

a final rule, without change, the

provisions of an interim final rule

establishing an assessment rate for the

Florida Tomato Committee (Committee)

under Marketing Order No. 966 for the

1996–97 and subsequent fiscal periods.

The Committee is responsible for local

administration of the marketing order

which regulates the handling of

tomatoes grown in Florida.

Authorization to assess Florida tomato

handlers enables the Committee to incur

expenses that are reasonable and

necessary to administer the program.

EFFECTIVE DATE: August 1, 1996.

FOR FURTHER INFORMATION CONTACT:

Doris Jamieson, Marketing Assistant,

Southeast Marketing Field Office, Fruit

and Vegetable Division, AMS, USDA,

P.O. Box 2276, Winter Haven, FL

33883–2276, telephone 941–299–4770;

FAX 941–299–5169, or Martha Sue

Clark, Program Assistant, Marketing

Order Administration Branch, Fruit and

Vegetable Division, AMS, USDA, P.O.

Box 96456, room 2525–S, Washington,

DC 20090–6456, telephone 202–720–

9918, FAX 202–720–5698. Small

businesses may request information on

compliance with this regulation by

contacting: Jay Guerber, Marketing

Order Administration Branch, Fruit and

Vegetable Division, AMS, USDA, P.O.

Box 96456, room 2525–S, Washington,

DC 20090–6456; telephone 202–720–

2491; FAX 202–720–5698.

SUPPLEMENTARY INFORMATION: This rule

is issued under Marketing Agreement

No. 125 and Order No. 966, both as

amended (7 CFR part 966), regulating

the handling of tomatoes grown in

Florida, hereinafter referred to as the

‘‘order.’’ The marketing agreement and

order are effective under the

Agricultural Marketing Agreement Act

of 1937, as amended (7 U.S.C. 601–674),

hereinafter referred to as the ‘‘Act.’’

The Department is issuing this rule in

conformance with Executive Order

12866.

This rule has been reviewed under

Executive Order 12988, Civil Justice

Reform. Under the marketing order now

in effect, Florida tomato handlers are

subject to assessments. Funds to

administer the order are derived from

such assessments. It is intended that the

assessment rate as issued herein will be

applicable to all assessable Florida

tomatoes beginning August 1, 1996, and

continuing until amended, suspended,

or terminated. This rule will not

preempt any State or local laws,

regulations, or policies unless they

present an irreconcilable conflict with

this rule.

The Act provides that administrative

proceedings must be exhausted before

parties may file suit in court. Under

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

handler subject to an order may file

with the Secretary a petition stating that

the order, any provision of the order, or

any obligation imposed in connection

with the order is not in accordance with

law and request a modification of the

order or to be exempted therefrom. Such

handler is afforded the opportunity for

a hearing on the petition. After the

hearing the Secretary would rule on the

petition. The Act provides that the

district court of the United States in any

district in which the handler is an

inhabitant, or has his or her principal

place of business, has jurisdiction to

review the Secretary’s ruling on the

petition, provided an action is filed not

later than 20 days after the date of the

entry of the ruling.

Pursuant to requirements set forth in

the Regulatory Flexibility Act (RFA), the

Agricultural Marketing Service (AMS)

has considered the economic impact of

this rule on small entities.

The purpose of the RFA is to fit

regulatory actions to the scale of

business subject to such actions in order

that small businesses will not be unduly

or disproportionately burdened.

Marketing orders issued pursuant to the

Act, and the rules issued thereunder, are

unique in that they are brought about

through group action of essentially

small entities acting on their own

behalf. Thus, both statutes have small

entity orientation and compatibility.

There are approximately 90 producers

of Florida tomatoes in the production

area and approximately 75 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 Florida

tomato producers and handlers may be

classified as small entities.

The Florida tomato marketing order

provides authority for the Committee,

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 Committee are

producers of Florida tomatoes. They are

familiar with the Committee’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 Committee met on September 5,

1996, and unanimously recommended

1996–97 expenditures of $1,189,000 and

an assessment rate of $0.03 per 25-

pound container of tomatoes. In

comparison, last year’s budgeted

expenditures were $2,025,000. The

assessment rate of $0.03 is $0.01 less

than last year’s established rate. Major

expenditures recommended by the

Committee for the 1996–97 fiscal period

compared to those budgeted for 1995–96

(in parentheses) include: $500,000 for

education and promotion ($1,225,000),

$5,000 for miscellaneous promotion

($5,000), $284,650 for office salaries

($319,100), $180,000 for research

($245,000), $45,500 for employees’

retirement program ($50,500), $30,000

for employees’ travel ($30,000), $24,500
6852 Federal Register / Vol. 62, No. 31 / Friday, February 14, 1997 / Rules and Regulations

for office rent ($24,500), $22,150 for

payroll taxes ($22,150), $20,000 for

employees’ health insurance ($29,500),

$19,150 for depreciation on the office

furniture and automobiles ($19,000),

$14,000 for communications ($12,000),

$12,000 for Committee member travel

($12,000), $9,000 for supplies and

printing ($8,500), $8,000 for insurance

and bonds ($8,000), and $7,000 for

postage ($7,000).

The assessment rate recommended by

the Committee was derived by dividing

anticipated expenses by expected

shipments of Florida tomatoes. Tomato

shipments for the year are estimated at

40,000,000 25-pound containers which

should provide $1,200,000 in

assessment income, which will be

adequate to cover projected expenses.

An interim final rule regarding this

action was published in the November

29, 1996, issue of the Federal Register

(61 FR 60510). That rule provided for a

30-day comment period. No comments

were received.

This action will reduce the

assessment obligation imposed on

handlers. 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 from

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

Committee or other available

information.

Although this assessment rate is

effective for an indefinite period, the

Committee will continue to meet prior

to or during each fiscal period to

recommend a budget of expenses and

consider recommendations for

modification of the assessment rate. The

dates and times of Committee meetings

are available from the Committee or the

Department. Committee meetings are

open to the public and interested

persons may express their views at these

meetings. The Department will evaluate

Committee recommendations and other

available information to determine

whether modification of the assessment

rate is needed. The Committee’s 1996–

97 budget and those for subsequent

fiscal periods 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 Committee 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 Committee needs to

have sufficient funds to pay its expenses

which are incurred on a continuous

basis; (2) the 1996–97 fiscal period

began on August 1, 1996, and the

marketing order requires that the rate of

assessment for each fiscal period apply

to all assessable tomatoes handled

during such fiscal period; (3) handlers

are aware of this action which was

unanimously recommended by the

Committee 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 966

Marketing agreements, Reporting and

recordkeeping requirements, Tomatoes.

For the reasons set forth in the

preamble, 7 CFR part 966 is amended as

follows:

Note: This action will appear in the Code

of Federal Regulations.

PART 966—TOMATOES GROWN IN

FLORIDA

Accordingly, the interim final rule

amending 7 CFR part 966 which was

published at 61 FR 60510 on November

29, 1996, is adopted as a final rule

without change.

Dated: February 10, 1997.

Robert C. Keeney

Director, Fruit and Vegetable Division.

[FR Doc. 97–3793 Filed 2–13–97; 8:45 am]

BILLING CODE 3410–02–P

FEDERAL DEPOSIT INSURANCE

CORPORATION

12 CFR Part 335

RIN 3064–AB79

Securities of Nonmember Insured

Banks

AGENCY: Federal Deposit Insurance

Corporation (FDIC).

ACTION: Final rule.

SUMMARY: The Federal Deposit

Insurance Corporation (FDIC) is revising

its regulations which prescribe

registration and reporting requirements

for non-member insured banks with

securities required to be registered

under section 12 of the Securities

Exchange Act of 1934 (Exchange Act).

The final rule incorporates through

cross reference the corresponding

regulations of the Securities and

Exchange Commission (SEC) into the

provisions of the FDIC’s securities

regulations. Incorporation through cross

reference will assure that the FDIC’s

regulations remain substantially similar

to the SEC’s regulations, as required by

law.

DATES: Effective date. These revisions

are effective January 1, 1998, with the

exception of § 335.901, which is

effective July 1, 1997.

Early compliance. These revisions

may be immediately followed by the

affected party, except that the SEC’s

regulation regarding proposals of

security holders (17 CFR 240.14a–8),

which is cross referenced in § 335.401

may not be followed prior to January 1,

1998.

FOR FURTHER INFORMATION CONTACT: M.

Eric Dohm, Staff Accountant, Division

of Supervision (202–898–8921),

Lawrence H. Pierce, Securities

Activities Officer, Division of

Supervision (202–898–8902), or Jamey

G. Basham, Counsel, Legal Division

(202–898–7265), Federal Deposit

Insurance Corporation, 550 17th Street

N.W., Washington, D.C. 20429.

SUPPLEMENTARY INFORMATION:

I. Background

Section 12(i) of the Securities

Exchange Act of 1934 as amended, 15

U.S.C. 78l(i), grants authority to the

FDIC to issue regulations applicable to

the securities of insured banks

(including foreign banks having an

insured branch) which are neither

members of the Federal Reserve System

nor District banks (collectively referred

to as nonmember banks), which are

substantially similar to the SEC’s

regulations under sections 12 (securities

registration), 13 (periodic reporting),

14(a) (proxies and proxy solicitation),

14(c) (information statements), 14(d)

(tender offers), 14(f) (election of

directors contests), and 16 (beneficial

ownership and reporting) of the

Exchange Act. Section 12(i) does not,

however, require the FDIC to issue

substantially similar regulations in the

event that the FDIC finds that

implementation of such regulation is

not necessarily in the public interest or

appropriate for protection of investors