42012 Federal Register / Vol. 76, No. 137 / Monday, July 18, 2011 / Rules and Regulations 

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

that good cause exists for not 

postponing the effective date of this 

action until one day after publication in 

the Federal Register because the Board’s 

term of office begins January 1, 2012, 

and this rule will allow the upcoming 

nominations and appointments to be 

conducted in a timely manner for the 

new members to be appointed to the 

Board so they can begin serving during 

the next term of office. 

List of Subjects in 7 CFR Part 1210 

Administrative practice and 

procedure, Advertising, Consumer 

information, Marketing agreements, 

Reporting and recordkeeping 

requirements, Watermelon promotion. 

For the reasons set forth in the 

preamble, Part 1210, Chapter XI of Title 

7 is amended as follows: 

PART 1210—WATERMELON 

RESEARCH AND PROMOTION PLAN 

■ 1. The authority citation for 7 CFR 

Part 1210 continues to read as follows: 

Authority: 7 U.S.C. 4901–4916 and 7 

U.S.C. 7401. 

Subpart C—Rules and Regulations 

■ 2. Section 1210.501 is revised to read 

as follows: 

§ 1210.501 Realignment of districts. 

Pursuant to § 1210.320(c) of the Plan, 

the districts shall be as follows: 

(a) District 1—The Florida counties of 

Brevard, Broward, Charlotte, Collier, 

Dade, Desoto, Glades, Hardee, Hendry, 

Highlands, Hillsborough, Indian River, 

Lake, Lee, Manatee, Martin, Monroe, 

Okeechobee, Orange, Osceola, Palm 

Beach, Pasco, Pinellas, Polk, Sarasota, 

Seminole, St. Lucie, and Volusia. 

(b) District 2—The Florida counties of 

Alachua, Baker, Bay, Bradford, Calhoun, 

Citrus, Clay, Columbia, Dixie, Duval, 

Escambia, Flagler, Franklin, Gadsden, 

Gilchrist, Gulf, Hamilton, Hernando, 

Holmes, Jackson, Jefferson, Lafayette, 

Leon, Levy, Liberty, Madison, Marion, 

Nassau, Okaloosa, Putnam, Santa Rosa, 

St. Johns, Sumter, Suwannee, Taylor, 

Union, Wakulla, Walton, and 

Washington, and the States of North 

Carolina and South Carolina. 

(c) District 3—The State of Georgia. 

(d) District 4—The States of Alabama, 

Connecticut, Delaware, Illinois, Indiana, 

Kentucky, Maine, Maryland, 

Massachusetts, Michigan, New 

Hampshire, New Jersey, New York, 

Ohio, Pennsylvania, Rhode Island, 

Tennessee, Virginia, Vermont, 

Wisconsin, West Virginia, and 

Washington, DC. 

(e) District 5—The State of California. 

(f) District 6—The State of Texas. 

(g) District 7—The States of Alaska, 

Arkansas, Arizona, Colorado, Hawaii, 

Idaho, Iowa, Kansas, Louisiana, 

Minnesota, Mississippi, Missouri, 

Montana, Nebraska, Nevada, New 

Mexico, North Dakota, Oklahoma, 

Oregon, South Dakota, Utah, 

Washington, and Wyoming. 

■ 3. Section 1210.502 is added to read 

as follows: 

§ 1210.502 Importer members. 

Pursuant to § 1210.320(d) of the Plan, 

there are eight importer representatives 

on the Board based on the proportionate 

percentage of assessments paid by 

importers to the Board. 

Dated: July 12, 2011. 

Rayne Pegg, 

Administrator. 

[FR Doc. 2011–17882 Filed 7–15–11; 8:45 am] 

BILLING CODE P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 1260 

[No. AMS–LS–10–0086] 

Beef Promotion and Research; 

Reapportionment 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: This final rule adjusts 

representation on the Cattlemen’s Beef 

Promotion and Research Board (Board), 

established under the Beef Promotion 

and Research Act of 1985 (Act), to 

reflect changes in cattle inventories and 

cattle and beef imports that have 

occurred since the most recent Board 

reapportionment rule became effective 

in October 2008. These adjustments are 

required by the Beef Promotion and 

Research Order (Order) and will result 

in a decrease in Board membership from 

106 to 103, effective with the U.S. 

Department of Agriculture’s (USDA) 

appointments for terms beginning early 

in the year 2012. 

DATES: Effective July 19, 2011. 

FOR FURTHER INFORMATION CONTACT: 

Craig Shackelford, Marketing Programs 

Branch, on 202/720–1115, fax 202/720– 

1125, or by e-mail at 

craig.shackelford@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: 

Executive Order 12866 

The Office of Management and Budget 

has waived the review process required 

by Executive Order 12866 for this 

action. 

Executive Order 12988 

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. It is not intended to have 

retroactive effect. 

Section 11 of the Act provides that 

nothing in the Act may be construed to 

preempt or supersede any other program 

relating to beef promotion organized 

and operated under the laws of the 

United States or any State. There are no 

administrative proceedings that must be 

exhausted prior to any judicial 

challenge to the provisions of this rule. 

Regulatory Flexibility Act and 

Paperwork Reduction Act 

Pursuant to the requirements set forth 

in the Regulatory Flexibility Act 

(RFA)(5 U.S.C. 601–612), the 

Administrator of the Agricultural 

Marketing Service (AMS) has 

considered the economic effect of this 

action on small entities and has 

determined that this final rule will not 

have a significant economic impact on 

a substantial number of small entities. 

The purpose of RFA is to fit regulatory 

actions to the scale of businesses subject 

to such actions in order that small 

businesses will not be unduly burdened. 

In the February 2010 publication of 

‘‘Farms, Land in Farms, and Livestock 

Operations,’’ USDA’s National 

Agricultural Statistics Service (NASS) 

estimates that in 2009 the number of 

operations in the United States with 

cattle totaled approximately 950,000. 

The majority of these operations that are 

subject to the Order may be classified as 

small entities. 

The final rule imposes no new burden 

on the industry. It only adjusts 

representation on the Board to reflect 

changes in domestic cattle inventory 

and cattle and beef imports. The 

adjustments are required by the Order 

and will result in a decrease in Board 

membership from 106 to 103. 

Background and Final Action 

The Board was initially appointed 

August 4, 1986, pursuant to the 

provisions of the Act (7 U.S.C. 2901– 

2911) and the Order issued thereunder. 

Domestic representation on the Board is 

based on cattle inventory numbers, and 

importer representation is based on the 

conversion of the volume of imported 

cattle, beef, or beef products into live 

animal equivalencies. 

Section 1260.141(b) of the Order 

provides that the Board shall be 

composed of cattle producers and 

importers appointed by the Secretary of 

Agriculture (Secretary) from 

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Federal Register / Vol. 76, No. 137 / Monday, July 18, 2011 / Rules and Regulations 42013 

nominations submitted by certified 

producer organizations. A producer may 

only be nominated to represent the unit 

in which that producer is a resident. 

Section 1260.141(c) of the Order 

provides that at least every 3 years and 

not more than every 2 years, the Board 

shall review the geographic distribution 

of cattle inventories throughout the 

United States and the volume of 

imported cattle, beef, and beef products 

and, if warranted, shall reapportion 

units and/or modify the number of 

Board members from units in order to 

reflect the geographic distribution of 

cattle production volume in the United 

States and the volume of cattle, beef, or 

beef products imported into the United 

States. 

Section 1260.141(d) of the Order 

authorizes the Board to recommend to 

USDA modifications to the number of 

cattle per unit necessary for 

representation on the Board. 

Section 1260.141(e)(1) provides that 

each geographic unit or State that 

includes a total cattle inventory equal to 

or greater than 500,000 head of cattle 

shall be entitled to one representative 

on the Board. Section 1260.141(e)(2) 

provides that States that do not have 

total cattle inventories equal to or 

greater than 500,000 head shall be 

grouped, to the extent practicable, into 

geographically-contiguous units, each of 

which have a combined total inventory 

of not less than 500,000 head. Such 

grouped units are entitled to at least one 

representative on the Board. Each unit 

that has an additional 1 million head of 

cattle within a unit qualifies for 

additional representation on the Board 

as provided in § 1260.141(e)(4). As 

provided in § 1260.141(e)(3), importers 

are represented by a single unit, with 

the number of Board members based on 

a conversion of the total volume of 

imported cattle, beef, or beef products 

into live animal equivalencies. 

The initial Board appointed in 1986 

was composed of 113 members. 

Reapportionment, based on a 3-year 

average of cattle inventory numbers and 

import data, reduced the Board to 111 

members in 1990 and 107 members in 

1993 before the Board was increased to 

111 members in 1996. The Board was 

decreased to 110 members in 1999, 108 

members in 2001, 104 members in 2005, 

and increased to 106 members in 2009. 

This final rule will decrease the number 

of Board members from 106 to 103 with 

appointments for terms effective early in 

2012. 

The current Board representation by 

States or units was based on an average 

of the January 1, 2005, 2006, and 2007, 

inventory of cattle in the various States 

as reported by NASS. Current importer 

representation was based on a combined 

total average of the 2005, 2006, and 

2007 live cattle imports as published by 

USDA’s Foreign Agricultural Service 

and the average of the 2004, 2005, and 

2006 live animal equivalents for 

imported beef products. 

In considering reapportionment, the 

Board reviewed cattle inventories as 

well as cattle, beef, and beef product 

import data for the period of January 1, 

2008, to January 1, 2010. The Board 

recommended that a 3-year average of 

cattle inventories and import numbers 

should be continued. The Board 

determined that an average of the 

January 1, 2008, 2009, and 2010, cattle 

inventory numbers would best reflect 

the number of cattle in each State or 

unit since publication of the last 

reapportionment rule published in 2008 

(73 FR 60097). 

The Board recommended the use of a 

combined total of the average of the 

2008, 2009, and 2010, cattle import data 

and the average of the 2007, 2008, and 

2009, live animal equivalents for 

imported beef products. The method 

used to calculate the total number of 

live animal equivalents was the same as 

that used in the previous 

reapportionment of the Board. The live 

animal equivalent weight was changed 

in 2006 from 509 pounds to 592 pounds. 

The final rule decreases the number of 

representatives on the Board from 106 to 

103. Kansas, Nebraska, Nevada, and the 

Southeast Region will each lose one 

Board seat. Montana will gain a Board 

seat. The importers will lose two Board 

seats. The Southeast Region will be 

expanded to include Alabama, 

permitting the new unit three Board 

members. California and Nevada will be 

combined to form a Southwest unit. 

The States and units affected by the 

reapportionment plan and the current 

and revised member representation per 

unit are as follows: 

State/unit Current 

representation 

Revised 

representation 

Alabama .... 1 0 

Kansas ...... 7 6 

Nebraska .. 7 6 

Nevada ..... 1 0 

California ... 5 0 

Southeast .. 3 1 3 

Importers ... 9 7 

Montana .... 2 3 

Southwest 

Unit ........ N/A 2 6 

1Lost one seat but added a seat with Alabama joining the unit. 2 California and Nevada. 

On April 4, 2011, USDA published in 

the Federal Register (76 FR 18422) for 

public comment a proposed rule 

providing for the adjustment in Board 

membership. Comments were due to 

USDA by May 4, 2011. 

USDA received five comments 

concerning the proposed rule for Board 

reapportionment. One commenter raised 

a number of points regarding the Board 

and the beef industry as a whole that are 

not pertinent to the proposal and 

therefore are not addressed. The 

commenter also suggested that the 

membership of the Board be limited to 

one member per State and that 

importers should not have members on 

the Board. Section 5 of the Act and 

section 1260.141 of the Order contain 

provisions that determine the structure 

of the Board based on cattle inventory. 

Therefore, USDA has not adopted this 

suggestion. 

One commenter suggested that 

Checkoff collections would be a more 

appropriate value to use for 

apportioning Board seats and that Board 

seats could be determined by each 

State’s total checkoff collections, less 

the amount returned to other States 

under the existing State-of-origin rules. 

Section 5 of the Act and Section 

1260.141 of the Order contain 

provisions that determine the structure 

of the Board based on cattle inventory. 

Therefore, USDA has not adopted this 

suggestion. 

One commenter offered support for 

the proposed rule but also suggested 

that USDA go further and ensure that 

Board representation reflect the 

diversity of interests of all ranchers, 

representing all sizes and make-ups of 

operations, and include representation 

from a multitude of organizations at 

both the State and national level as well 

as non-affiliated ranchers. Section 5 of 

the Act and Section 1260.141 of the 

Order contain provisions that determine 

the structure of the Board based on 

cattle inventory. Therefore, USDA has 

not adopted this suggestion. However, 

the Secretary of Agriculture remains 

committed to ensuring that the Board 

reflects diversity in the size of 

operations, experience of members, 

methods of production and distribution, 

marketing strategies, and other 

distinguishing factors that will bring 

different perspectives and ideas to the 

table. This communication has been 

distributed to all organizations that 

nominate members to the Board. 

Two commenters stated their 

preference that California and Nevada 

not be combined, but understood that 

section 1260.141 of the Order provides 

for the action. The commenters further 

suggested that the Southwest Unit be 

dissolved when Nevada cattle numbers 

increase to appropriate levels. Section 

1260.141 of the Order provides that at 

least every 3 years and not more than 

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42014 Federal Register / Vol. 76, No. 137 / Monday, July 18, 2011 / Rules and Regulations 

every 2 years, the Board shall review the 

geographic distribution of cattle 

inventories throughout the United 

States and the volume of imported 

cattle, beef, and beef products and, if 

warranted, shall reapportion units and/ 

or modify the number of Board members 

from units in order to reflect the 

geographic distribution of cattle 

production volume in the United States 

and the volume of cattle, beef, or beef 

products imported into the United 

States. This comment is consistent with 

the provisions of the Order and will be 

considered in future proposals. The 

commenters also made a number of 

suggestions regarding the nomination of 

members within the proposed 

Southwest Unit. These suggestions are 

beyond the scope of the proposed rule 

and are not considered in the final rule. 

It is found that good cause exists to 

make this rule effective less than 30 

days after the date of publication in the 

Federal Register because this rule 

should be in effect as soon as possible 

for the Board appointments that will be 

effective early in the year 2012. 

List of Subjects in 7 CFR Part 1260 

Administrative practice and 

procedure, Advertising, Agricultural 

research, Imports, Marketing agreement, 

Meat and meat products, Reporting and 

recordkeeping requirements. 

For reasons set forth in the preamble, 

7 CFR part 1260 is amended as follows: 

PART 1260—BEEF PROMOTION AND 

RESEARCH 

■ 1. The authority citation for 7 CFR 

part 1260 continues to read as follows: 

Authority: 7 U.S.C. 2901–2911 and 7 

U.S.C. 7401. 

■ 2. In § 1260.141, paragraph (a) and the 

table immediately following it, are 

revised to read as follows: 

§ 1260.141 Membership of Board. 

(a) Beginning with the 2011 Board 

nominations and the associated 

appointments effective early in the year 

2012, the United States shall be divided 

into 37 geographical units and, 1 unit 

representing importers, for a total of 38 

units. The number of Board members 

from each unit shall be as follows: 

CATTLE AND CALVES 1

State/unit 1,000 head Directors 

1. Arizona ......................................................................................................................................................................... 983 1 

2. Arkansas ...................................................................................................................................................................... 1,837 2 

3. Colorado ...................................................................................................................................................................... 2,650 3 

4. Florida .......................................................................................................................................................................... 1,710 2 

5. Idaho ............................................................................................................................................................................ 2,153 2 

6. Illinois ........................................................................................................................................................................... 1,200 1 

7. Indiana ......................................................................................................................................................................... 873 1 

8. Iowa ............................................................................................................................................................................. 3,933 4 

9. Kansas ......................................................................................................................................................................... 6,317 6 

10. Kentucky .................................................................................................................................................................... 2,333 2 

11. Louisiana ................................................................................................................................................................... 873 1 

12. Michigan .................................................................................................................................................................... 1,080 1 

13. Minnesota .................................................................................................................................................................. 2,407 2 

14. Mississippi ................................................................................................................................................................. 957 1 

15. Missouri ..................................................................................................................................................................... 4,217 4 

16. Montana ..................................................................................................................................................................... 2,583 3 

17. Nebraska ................................................................................................................................................................... 6,350 6 

18. New Mexico ............................................................................................................................................................... 1,540 2 

19. New York ................................................................................................................................................................... 1,410 1 

20. North Carolina ........................................................................................................................................................... 833 1 

21. North Dakota ............................................................................................................................................................. 1,763 2 

22. Ohio ........................................................................................................................................................................... 1,270 1 

23. Oklahoma .................................................................................................................................................................. 5,417 5 

24. Oregon ....................................................................................................................................................................... 1,290 1 

25. Pennsylvania ............................................................................................................................................................. 1,607 2 

26. South Dakota ............................................................................................................................................................. 3,733 4 

27. Tennessee ................................................................................................................................................................. 2,040 2 

28. Texas ......................................................................................................................................................................... 13,500 14 

29. Utah ........................................................................................................................................................................... 820 1 

30. Virginia ....................................................................................................................................................................... 1,530 2 

31. Wisconsin .................................................................................................................................................................. 3,367 3 

32. Wyoming .................................................................................................................................................................... 1,327 1 

33. Northwest ................................................................................................................................................................... .................... 1 

Alaska ....................................................................................................................................................................... 15 ....................

Hawaii ....................................................................................................................................................................... 151 ....................

Washington ............................................................................................................................................................... 1,070 ....................

Total ................................................................................................................................................................... 1,236 ....................

34. Northeast ................................................................................................................................................................... .................... 1 

Connecticut ............................................................................................................................................................... 50 ....................

Delaware ................................................................................................................................................................... 21 ....................

Maine ........................................................................................................................................................................ 88 ....................

Massachusetts .......................................................................................................................................................... 44 ....................

New Hampshire ........................................................................................................................................................ 38 ....................

New Jersey ............................................................................................................................................................... 37 ....................

Rhode Island ............................................................................................................................................................ 5 ....................

Vermont .................................................................................................................................................................... 267 ....................

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Federal Register / Vol. 76, No. 137 / Monday, July 18, 2011 / Rules and Regulations 42015 

CATTLE AND CALVES 1—Continued 

State/unit 1,000 head Directors 

Total ................................................................................................................................................................... 550 ....................

35. Mid-Atlantic ................................................................................................................................................................ .................... 1 

Maryland ................................................................................................................................................................... 192 ....................

West Virginia ............................................................................................................................................................ 400 ....................

Total ................................................................................................................................................................... 592 ....................

36. Southeast ................................................................................................................................................................... .................... 3 

Alabama .................................................................................................................................................................... 1,253 ....................

Georgia ..................................................................................................................................................................... 1,100 ....................

South Carolina .......................................................................................................................................................... 385 ....................

Total ................................................................................................................................................................... 2,738 ....................

37. Southwest .................................................................................................................................................................. .................... 6 

California ................................................................................................................................................................... 5,283 ....................

Nevada ..................................................................................................................................................................... 450 ....................

Total ................................................................................................................................................................... 5,733 ....................

38. Importer 2 ................................................................................................................................................................... 6,887 7 

1 2008, 2009, and 2010 average of January 1 cattle inventory data. 

2 2007, 2008, and 2009 average of annual import data. 

* * * * * 

Dated: July 12, 2011. 

Rayne Pegg, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. 2011–17885 Filed 7–15–11; 8:45 am] 

BILLING CODE P 

FEDERAL RESERVE SYSTEM 

12 CFR Parts 204, 217, and 230 

Regulations D, Q, and DD 

[Docket No. R–1413] 

RIN 7100–AD 72 

Prohibition Against Payment of 

Interest on Demand Deposits 

AGENCY: Board of Governors of the 

Federal Reserve System (Board) 

ACTION: Final rule. 

SUMMARY: The Board is publishing a 

final rule repealing Regulation Q, 

Prohibition Against Payment of Interest 

on Demand Deposits, effective July 21, 

2011. Regulation Q was promulgated to 

implement the statutory prohibition 

against payment of interest on demand 

deposits by institutions that are member 

banks of the Federal Reserve System set 

forth in Section 19(i) of the Federal 

Reserve Act (‘‘Act’’). Section 627 of the 

Dodd-Frank Wall Street Reform and 

Consumer Protection Act (‘‘Dodd-Frank 

Act’’) repeals Section 19(i) of the 

Federal Reserve Act effective July 21, 

2011. The final rule implements the 

Dodd-Frank Act’s repeal of Section 

19(i). The final rule also repeals the 

Board’s published interpretation of 

Regulation Q and removes references to 

Regulation Q found in the Board’s other 

regulations, interpretations, and 

commentary. 

DATES: Effective Date: July 21, 2011. 

FOR FURTHER INFORMATION CONTACT: 

Sophia H. Allison, Senior Counsel (202/ 

452–3565), Legal Division, or Joshua S. 

Louria, Financial Analyst (202/263– 

4885), Division of Monetary Affairs; for 

users of Telecommunications Device for 

the Deaf (TDD) only, contact (202/263– 

4869); Board of Governors of the Federal 

Reserve System, 20th and C Streets, 

NW., Washington, DC 20551. 

SUPPLEMENTARY INFORMATION: 

I. Prohibition Against Payment of 

Interest on Demand Deposits 

Section 19(i) of the Federal Reserve 

Act (‘‘Act’’) (12 U.S.C. 371a) generally 

provides that no member bank ‘‘shall, 

directly or indirectly, by any device 

whatsoever, pay any interest on any 

deposit which is payable on demand. 

* * *’’ Section 19(i) was added to the 

Act by Section 11 of the Banking Act of 

1933 (48 Stat. 162, 181). Section 324 of 

the Banking Act of 1935 (49 Stat. 684, 

714) amended Section 19(a) of the Act 

to authorize the Board, ‘‘for the 

purposes of this section, to define the 

terms ‘demand deposits’, ‘gross demand 

deposits,’ ‘deposits payable on demand’ 

[and] to determine what shall be 

deemed to be a payment of interest, and 

to prescribe such rules and regulations 

as it may deem necessary to effectuate 

the purposes of this section and prevent 

evasions thereof. * * *’’ The Board 

promulgated Regulation Q on August 

29, 1933 to implement Section 19(i) of 

the Act. Section 627 of the Dodd-Frank 

Act repeals Section 19(i) of the Act in 

its entirety, effective July 21, 2011. 

II. Request for Public Comment 

On April 14, 2011, the Board 

published in the Federal Register a 

request for comment on its proposal to 

repeal Regulation Q effective July 21, 

2011 (76 FR 20892, Apr. 14, 2011). In 

its request for comment, the Board also 

sought comment on all aspects of the 

proposal, and also sought comment on 

four specific issues related to the 

proposal: 

1. Does the repeal of Regulation Q 

have significant implications for the 

balance sheets and income of depository 

institutions? What are the anticipated 

effects on bank profits, on the allocation 

of deposit liabilities among product 

offerings, and on the rates offered and 

fees assessed on demand deposits, 

sweep accounts, and compensating 

balance arrangements? 

2. Does the repeal of Regulation Q 

have any implications for short-term 

funding markets such as the overnight 

federal funds market and Eurodollar 

markets, or for institutions such as 

institution-only money market mutual 

funds that are active investors in shortterm funding markets? 

3. Is the repeal of Regulation Q likely 

to result in strong demand for interestbearing demand deposits? 

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