Federal Register / Vol. 62, No. 71 / Monday, April 14, 1997 / Rules and Regulations 18033

acquired by handlers during the crop

year beginning on August 1, 1996,

which shall be free tonnage and reserve

tonnage, respectively, are designated as

follows:

Varietal type

Free

percentage

Reserve

percentage

Natural (sun-dried) Seedless ................................ 86 14

Dated: April 7, 1997.

Robert C. Keeney,

Director, Fruit and Vegetable Division.

[FR Doc. 97–9476 Filed 4–11–97; 8:45 am]

BILLING CODE 3410–02–M

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1208

[FV–97–701FR]

Fresh Cut Flowers and Fresh Cut

Greens Promotion and Information

Order; Referendum Procedures

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Final rule.

SUMMARY: This rule provides procedures

that the Department of Agriculture

(Department) will use in conducting the

referendum to determine whether to

continue the Fresh Cut Flowers and

Fresh Cut Greens Promotion and

Information Order (Order). In order to

continue, the program must be approved

by a simple majority of the qualified

handlers voting in the referendum.

EFFECTIVE DATE: This rule is effective

from May 14, 1997 through August 15,

1997.

FOR FURTHER INFORMATION CONTACT:

Sonia N. Jimenez, Research and

Promotion Branch, Fruit and Vegetable

Division, AMS, USDA, P.O. Box 96456,

Room 2535–S, Washington, DC 20090–

6456, telephone (202) 720–9916 or (888)

720–9917.

SUPPLEMENTARY INFORMATION: This rule

is issued under the Fresh Cut Flowers

and Fresh Cut Greens Promotion and

Information Act of 1993 (7 U.S.C. 6801

et seq.), hereinafter referred to as the

Act, and the Order.

This rule provides the procedures

under which the referendum will be

conducted.

Executive Order 12988

This rule has been reviewed under

Executive Order 12988, Civil Justice

Reform. It is not intended to have

retroactive effect. 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 8 of the Act, after an Order is

implemented, a person subject to the

Order may file a petition with the

Secretary stating that the Order or any

provision of the Order, or any obligation

imposed in connection with the Order,

is not in accordance with law and

requesting a modification of the Order

or an exemption from the Order. The

petitioner is afforded the opportunity

for a hearing on the petition. After such

hearing, the Secretary will make a ruling

on the petition. The Act provides that

the district courts of the United States

in any district in which a person who

is a petitioner resides or carries on

business are vested with jurisdiction to

review the Secretary’s ruling on the

petition, if a complaint for that purpose

is filed within 20 days after the date of

the entry of the ruling.

Executive Order 12866 and Regulatory

Flexibility Act

This rule has been determined not

significant for purposes of Executive

Order 12866, and therefore has not been

reviewed by the Office of Management

and Budget.

In accordance with the Regulatory

Flexibility Act (5 U.S.C. 601 et seq.), the

Agency has examined the impact of this

rule on small entities. Accordingly, we

have performed this Final Regulatory

Flexibility Analysis.

The Act, which authorizes the

creation of a generic program of

promotion and information for fresh cut

flowers and greens, became effective on

December 14, 1993.

Section 7 of the Act provides that the

Secretary of Agriculture (Secretary)

shall conduct a referendum not later

than 3 years after the issuance of an

order to ascertain whether the order

then in effect shall be continued. The

Order was issued on December 29, 1994.

Paragraph (a)(2) of section 7 of the Act

requires that the Order be approved by

a simple majority of all votes cast in the

referendum. In addition, paragraph (b)

of section 7 of the Act specifies that

each qualified handler eligible to vote in

the referendum shall be entitled to cast

one vote for each separate facility of the

person that is an eligible separate

facility. Eligible separate facility is

defined in paragraph (b)(2) of section 7

of the Act as a handling or marketing

facility of a qualified handler that is

physically located away from other

facilities of the qualified handler or that

the business function of the separate

facility is substantially different from

the functions of other facilities owned

or operated by the qualified handler and

the annual sales of cut flowers and cut

greens to retailers and exempt handlers

from the facility are $750,000 or more

annually.

Only those wholesale handlers

(including but not limited to, wholesale

jobbers, bouquet and floral article

manufacturers, auction houses that clear

the sale of cut flowers and greens, and

retail distribution centers), producers

and importers who have annual sales of

$750,000 or more of fresh cut flowers

and greens and who sell those products

to exempt handlers, retailers, or

consumers are considered qualified

handlers and assessed under the Order.

The referendum procedures provide

definitions of who is eligible to vote and

instructions for referendum agents

regarding subagents, publicity for the

referendum and the results, ballots,

voting, ballot handling and tabulation,

reporting, and confidentiality of

referendum materials. The

representative period for establishing

voter eligibility for the referendum will

be announced by the Secretary in a

separate referendum order published

later in the Federal Register.

There are approximately 525

wholesale handlers, 84 importers, and

83 producers who are qualified

handlers. Small agricultural service

firms, which include the qualified

handlers covered under the Order, have

been defined by the Small Business

Administration (SBA) (13 CFR 121.601)

as those whose annual receipts are less

than $5 million. Only 127 qualified

handlers have been identified to have $5

million in annual sales.

It is concluded that the majority of

qualified handlers may be classified as

small entities.

Statistics reported by the National

Agricultural Statistics Service show that

in 1995 sales of domestic cut flowers

and cut greens totaled approximately

$521.3 million at the wholesale level.

The leading producing states by

wholesale value are California, with

about 49 percent of the total of flower

and cut green production, followed by

Florida, Colorado and Hawaii. Sales

information for 1996 will not be

available until after publication of this

rule.

Exports in 1996 of U.S. cut flowers

were valued at $29.4 million, with about

52 percent of the value from exports to

Canada, and 16 percent from exports to

the Netherlands, about 14 percent from

exports to Germany, and 13 percent
18034 Federal Register / Vol. 62, No. 71 / Monday, April 14, 1997 / Rules and Regulations

from exports to Japan. Exports of cut

greens are not reported by the Bureau of

the Census as a separate item; they are

included in a ‘‘basket’’ export category

that includes other types of fresh cut

plant exports such as branches without

flowers or buds, evergreens, and grasses,

which are suitable for ornamental

purposes. In 1996 the value of these

exports was $52.0 million. In 1995, the

value of exports was $45.8 million.

The value of imports of cut flowers in

1996 was $557.7 million. Major

countries exporting cut flowers to the

United States, by value, are Colombia

which accounts for about 66 percent of

the value, followed by the Netherlands

(10 percent), Ecuador (12 percent), Costa

Rica (3 percent), and Mexico (3 percent).

Imports of cut greens are reported in a

category that includes some other fresh

cut plant items suitable for ornamental

purposes such as grasses, branches

without flowers or buds, and other plant

parts, but excludes fresh evergreens. In

1996 this ‘‘basket category’’ of imports

had a value of $27.6 million. The value

of imports of cut flowers in 1995 was

$495.2 million with a ‘‘basket category’’

of $24.1 million.

This rule provides the procedures

under which qualified handlers may

vote on whether they want the fresh cut

flowers and fresh cut greens promotion

and information program to be

continued. Qualified handlers of

$750,000 or more in annual gross sales

are eligible to vote in the referendum.

There are approximately 692 eligible

voters representing approximately 923

votes some of which represent separate

facilities. It will take an average of 15

minutes for each voter to read the voting

instructions and complete the

referendum ballot. The total burden on

the total number of voters will be 77

hours.

The Department is keeping all these

individuals informed throughout the

referendum process to ensure that they

are aware of and are able to participate

in the process. In addition, trade

associations and related industry media

will receive news releases and other

information regarding the referendum

process.

Voting in the referendum is optional.

However, if qualified handlers choose to

vote, the burden of voting will be offset

by the benefits of having the

opportunity to vote on whether they

want to continue the program or not.

The Department considered requiring

eligible voters to vote in person at

various Department offices across the

country. However, conducting the

referendum from one central location by

mail ballot is more cost effective for this

program. Also, the Department will

provide easy access to information for

potential voters through a toll free

telephone line. A referendum will be

conducted in June to maximize industry

participation.

Lastly, in the initial regulatory

flexibility analysis comments were

requested regarding the impact of the

rule on small entities. No such

comments were received.

Paperwork Reduction Act

In accordance with the Office of

Management and Budget (OMB)

regulations (5 CFR Part 1320) which

implements the Paperwork Reduction

Act of 1995 (44 U.S.C. Chapter 35), the

referendum ballot has been approved by

the Office of Management and Budget

(OMB) and has been assigned OMB

number 0581–0093. It is estimated that

there are 692 qualified handlers,

representing 923 votes, who will be

eligible to vote in the referendum. It will

take an average of 15 minutes for each

voter to read the voting instructions and

complete the referendum ballot. The

total burden on the total number of

voters will be 77 hours.

Background

The Act authorized the Secretary to

establish a national cut flowers and cut

greens promotion and consumer

information program. The program is

funded by an assessment of 1⁄2 percent

of gross sales of cut flowers and greens

which is levied on qualified handlers.

The program is administered by the

National PromoFlor Council (Council)

under the supervision of the Department

of Agriculture (Department).

Assessments are used to pay for:

Research, promotion, and consumer

information; administration,

maintenance, and functioning of the

Board; and expenses incurred by the

Secretary in implementing and

administering the Order, including

referendum costs.

Section 7 of the Act requires that a

referendum be conducted not later than

3 years after the issuance of the Order

among eligible qualified handlers of

fresh cut flowers and fresh cut greens to

determine whether they favor

continuance of the Order. The Order

shall continue in effect if it is approved

by a simple majority of qualified

handlers voting in the referendum.

In accordance with section 3(4) of the

Act, qualified handler is defined in the

Order as a person operating in the cut

flowers and greens marketing system

that sells domestic or imported cut

flowers and greens to retailers and

exempt handlers and whose annual

sales of cut flowers and greens to

retailers and exempt handlers are

$750,000 or more. The term also

includes, but is not limited to, the

following entities when they have the

requisite volume of $750,000 sales of

cut flowers and greens a year: A

wholesale handler; a manufacturer of

bouquets or floral articles for sale to

retailers if the cut flowers and greens

used are a substantial portion of the

value of the manufactured floral article;

an auction house that clears the sale of

cut flowers and greens to retailers and

exempt handlers through a central

clearinghouse; a distribution center that

is owned or controlled by a retailer if

the predominant retail business activity

is floral sales; an importer whose

principal activity is the importation of

cut flowers and greens into the United

States and sells to retailers and exempt

handlers or directly to consumers; and

a producer that sells cut flowers and cut

greens directly to retailers or consumers.

Paragraph (b) of section 7 of the Act

specifies that each qualified handler

eligible to vote in the referendum shall

be entitled to cast one vote for each

separate facility of the person that is an

eligible separate facility. Eligible

separate facility is defined in paragraph

(b)(2) of section 7 of the Act as a

handling or marketing facility of a

qualified handler that is physically

located away from other facilities of the

qualified handler or that the business

function of the separate facility is

substantially different from the

functions of other facilities owned or

operated by the qualified handler and

the annual sales of cut flowers and cut

greens to retailers and exempt handlers

from the facility are $750,000 or more

annually.

This rule provides the procedures

under which fresh cut flowers and

greens qualified handlers may vote on

whether they want the fresh cut flowers

and greens promotion and consumer

information program to continue.

Qualified handlers of $750,000 gross

sales annually can vote in the

referendum. There are approximately

692 eligible voters representing

approximately 923 votes.

This rule adds a new subpart which

establishes procedures to be used in the

referendum. This subpart will be in

effect for the referendum period only

and will not be part of the Code of

Federal Regulations. This subpart covers

definitions, voting, instructions, use of

subagents, ballots, the referendum

report, and confidentiality of

information.

A proposed rule was published in the

March 19, 1997, issue of the Federal

Register (62 FR 12976). Ten comments

were received and are addressed in this

rule. The comments were from qualified
Federal Register / Vol. 62, No. 71 / Monday, April 14, 1997 / Rules and Regulations 18035

handlers and the National PromoFlor

Council.

A comment was received from a cut

flowers and greens wholesale handler.

The commentor expressed the view that

it would be unconstitutional for a

company to qualify for more than one

vote because the company has decided

to distribute their product through

multiple locations instead of one central

location. The commentor opposes

multiple votes for a single company.

As previously explained in this rule,

paragraph (b) of section 7 of the Act

specifies that each qualified handler

eligible to vote in the referendum shall

be entitled to cast one vote for each

separate facility that is an eligible

separate facility. Separate facility is

defined in the Act as a handling or

marketing facility of a qualified handler

that is physically located away from

other facilities of the qualified handler

or that the business function of the

separate facility is substantially

different from the functions of other

facilities owned or operated by the

qualified handler and the annual sales

of cut flowers and greens to retailers and

exempt handlers from the facility are

$750,000 or more annually.

A facility may be located separately

from the main operation of the qualified

handlers or the function of the facility

may be substantially different in order

to qualify under the definition of

separate facility. Each separate facility

must handle $750,000 annually in sales

to retailers and exempted handlers. The

concept of one vote per facility is not

unknown for this type of program and

referendum. It became part of the

legislation authorizing this program.

Alternatively, the statute could have,

but did not, provide for a weighted vote,

under which both the number of votes

and annual sales volume of voters, for

and against continuation of the program,

would have been tabulated.

The commentor also stated that the

Council forces companies under

$750,000 annual sales to pay the

assessment because the companies that

they buy from are forced to pay the

assessment. In addition, the commentor

stated that it is unconstitutional to force

people to pay their tax and not allow

them a vote.

The Act requires qualified handlers of

$750,000 annual sales to pay the

assessment. Exempt handlers are not

required to pay the assessment. It is a

business decision between the parties

involved, and not a statutory

requirement or provision, as to whether

the qualified handler passes the cost to

the exempt handler and whether the

exempt handler pays that charge. Each

qualified handler as defined under the

Act is eligible to vote in the referendum.

The commentor requested the USDA

to stop the Council from using funds to

influence the vote in the referendum.

Funds collected under this program may

not be used for activities that are not

authorized under the Act. The

Department monitors activities in this

area very carefully. The Council may

explain what the program is doing and

its impact on sales. It may also

encourage the industry to vote.

However, it may not encourage the

industry to vote in a particular way.

Finally, the commentor requested a

definition of qualified handler in the

voting process. The definition of

qualified handlers used for the

referendum is the same used for

determining who is qualified under the

program. The status of the handler, i.e.,

paying or not paying assessments,

against or in favor of the program, does

not affect the definition of who is a

qualified handler under the program

and eligible to vote. Every qualified

handler as defined in the Act and the

Order is eligible to vote in the

referendum.

Five commentors stated that the

timing for the referendum is unfortunate

in that it falls within the peak sales

months for the industry. In addition, the

commentors stated that the period from

July to September is ideal for all

qualified handlers to have the time to

adequately evaluate the impact of the

program. Furthermore, the commentors

requested that the referendum be

conducted in September.

The Council, however, submitted a

comment in favor of holding the

referendum in June for the following

reasons: timely preparation and

submission of a 1998 budget for the

Department’s approval prior to the start

of the new fiscal period; a June

referendum will allow the Council to

buy media in the ‘‘up front market’’

when the selection of commercial slots

is better and the prices are discounted;

a June referendum will allow the

Council to produce these commercials

in an area at a considerable savings; the

handlers are ready for a referendum; the

Council is reporting to the industry the

effects of the program and the return on

investment to handlers; qualified

handlers feel well informed about the

program and are prepared to make an

informed decision; the Council

communicates its programs twice a

month through its newsletter; qualified

handlers have received video tapes and

an annual report with information about

the program; almost every trade

publication has carried information

about the Council for the last year; the

Council is present at every major show

and convention to answer questions;

and the Council has a toll free number

to answer questions.

The Department agrees that the

referendum must be conducted during a

period that maximizes voting

representation. June is after the peak

period of Secretary’s Day and Mother’s

Day. In addition, if the program is

supported in the referendum,

conducting the referendum in June will

allow enough time for the Council to

plan a budget and marketing plan for

the 1998 fiscal year which begins on

October 1, 1997. The Department

believes that conducting the referendum

in June will maximize participation in

the referendum and will assist the

Council in the planning of next year’s

program in the event the program is

approved in the referendum. In

addition, the industry is familiar with

the program which has been in effect

since December 1994 and has had time

to form a view on whether the program

should continue. Further, voting is not

a time-consuming process.

One commentor stated that qualified

handlers that paid assessments in the

past and are out of business or whose

businesses have changed and are no

longer qualified handlers should be

allowed to vote in the referendum.

A qualified handlers whose gross

sales of fresh cut flowers and greens

were $750,000 during the representative

period and who is a qualified handler at

the time of the referendum, is eligible to

vote. The representative period, the

period used to determine who is an

eligible qualified handler for

referendum purposes, will be

announced in a referendum order that

will be published separately in the

Federal Register. A handler who is not

a qualified handler at the time of the

referendum should not be eligible to

vote because this individual is not

currently covered by the program and is

not required to pay assessments into the

program.

Two of the comments received

addressed issues not directly related to

the referendum procedures. Instead they

related to the program in general

including the financial impact of

assessments.

Accordingly, no changes to the text of

the regulation as proposed are made in

this final rule. After consideration of all

relevant material presented, it is found

that this final rule effectuates the

declared policy of the Act.

List of Subjects in 7 CFR Part 1208

Administrative practice and

procedure, Advertising, Consumer

information, Marketing agreements, Cut
18036 Federal Register / Vol. 62, No. 71 / Monday, April 14, 1997 / Rules and Regulations

flowers, Cut greens, Promotion,

Reporting and recordkeeping

requirements.

For the reasons set forth in the

preamble, Title 7 of Chapter XI of the

Code of Federal Regulations is amended

as follows:

1. Part 1208 is amended by adding a

new subpart C to read as follows:

PART 1208—FRESH CUT FLOWERS

AND FRESH CUT GREENS

PROMOTION AND INFORMATION

ORDER

Subpart C—Procedure for the Conduct of

Referenda in Connection With the Fresh Cut

Flowers and Fresh Cut Greens Promotion

and Information Order

Sec.

1208.200 General.

1208.201 Definitions.

1208.202 Voting.

1208.203 Instructions.

1208.204 Subagents.

1208.205 Ballots.

1208.206 Referendum report.

1208.207 Confidential information.

Authority: 7 U.S.C. 6801 et seq.

Subpart C—Procedure for the Conduct

of Referenda in Connection With the

Fresh Cut Flowers and Fresh Cut

Greens Promotion and Information

Order

§ 1208.200 General.

A referendum to determine whether

qualified handlers favor continuance of

the Fresh Cut Flowers and Fresh Cut

Greens Promotion and Information

Order shall be conducted in accordance

with these procedures.

§ 1208.201 Definitions.

Unless otherwise defined below, the

definition of terms used in these

procedures shall have the same meaning

as the definitions in the Order.

(a) Administrator means the

Administrator of the Agricultural

Marketing Service, with power to

redelegate, or any officer or employee of

the Department to whom authority has

been delegated or may hereafter be

delegated to act in the Administrator’s

stead.

(b) Order means the Fresh Cut

Flowers and Fresh Cut Greens

Promotion and Information Order.

(c) Referendum agent or agent means

the individual or individuals designated

by the Secretary to conduct the

referendum.

(d) Representative period means the

period designated by the Secretary.

(e) Person means any individual,

group of individuals, firm, partnership,

corporation, joint stock company,

association, society, cooperative, or any

other legal entity. For the purpose of

this definition, the term ‘‘partnership’’

includes, but is not limited to:

(1) A husband and wife who has title

to, or leasehold interest in, fresh cut

flowers and greens facilities and

equipment as tenants in common, joint

tenants, tenants by the entirety, or,

under community property laws, as

community property, and

(2) So-called ‘‘joint ventures’’,

wherein one or more parties to the

agreement, informal or otherwise,

contributed capital and others

contributed labor, management,

equipment, or other services, or any

variation of such contributions by two

or more parties so that it results in the

handling of fresh cut flowers and greens

and the authority to transfer title to the

fresh cut flowers and greens handled.

(f) Eligible qualified handler means a

person who is a qualified handler under

§ 1208.16 of the Order that operates in

the cut flowers and greens marketing

system and sells domestic or imported

cut flowers and greens to retailers and

exempt handlers and has annual sales of

cut flowers and greens to retailers and

exempt handlers that are $750,000 or

more.

(g) Separate facility means a handling

or marketing facility of a qualified

handler that is physically located away

from other facilities of the qualified

handler or that the business function of

the separate facility is substantially

different from the functions of other

facilities owned or operated by the

qualified handler and the annual sales

of cut flowers and cut greens to retailers

and exempt handlers from the facility

are $750,000 or more annually.

§ 1208.202 Voting.

(a) Each person who is an eligible

qualified handler as defined in this

subpart, at the time of the referendum

and during the representative period,

shall be entitled to cast one vote for

each separate facility of the person that

is an eligible separate facility.

(b) Proxy voting is not authorized, but

an officer or employee of an eligible

qualified handler, or an administrator,

executor, or trustee of an eligible

qualified handler entity may cast a

ballot on behalf of such qualified

handler entity. Any individual so voting

in a referendum shall certify that such

individual is an officer or employee of

the eligible qualified handler, or an

administrator, executor, or trustee of an

eligible qualified handler entity, and

that such individual has the authority to

take such action. Upon request of the

referendum agent, the individual shall

submit adequate evidence of such

authority.

(c) All ballots are to be cast by mail.

§ 1208.203 Instructions.

The referendum agent shall conduct

the referendum, in the manner herein

provided, under the supervision of the

Administrator. The Administrator may

prescribe additional instructions, not

inconsistent with the provisions hereof,

to govern the procedure to be followed

by the referendum agent. Such agent

shall:

(a) Determine the time of

commencement and termination of the

period during which ballots may be

cast.

(b) Provide ballots and related

material to be used in the referendum.

Ballot material shall provide for

recording essential information

including that needed for ascertaining

whether the person voting, or on whose

behalf the vote is cast, is an eligible

voter;

(c) Give reasonable advance public

notice of the referendum:

(1) By utilizing available media or

public information sources, without

incurring advertising expense, to

publicize the dates, places, method of

voting, eligibility requirements, and

other pertinent information. Such

sources of publicity may include, but

are not limited to, print and radio; and

(2) By such other means as the agent

may deem advisable.

(d) Mail to eligible qualified handlers,

whose names and addresses are known

to the referendum agent, the

instructions on voting, a ballot, and a

summary of the terms and conditions of

the Order. No person who claims to be

eligible to vote shall be refused a ballot.

(e) At the end of the voting period,

collect, open, number, and review the

ballots and tabulate the results in the

presence of an agent of the Office of

Inspector General.

(f) Prepare a report on the referendum.

(g) Announce the results to the public.

§ 1208.204 Subagents.

The referendum agent may appoint

any individual or individuals deemed

necessary or desirable to assist the agent

in performing such agent’s functions

hereunder. Each individual so

appointed may be authorized by the

agent to perform any or all of the

functions which, in the absence of such

appointment, shall be performed by the

agent.

§ 1208.205 Ballots.

The referendum agent and subagents

shall accept all ballots cast; but, should

they, or any of them, deem that a ballot

should be questioned for any reason, the

agent or subagent shall endorse above
Federal Register / Vol. 62, No. 71 / Monday, April 14, 1997 / Rules and Regulations 18037

their signature, on the ballot, a

statement to the effect that such ballot

was questioned, by whom questioned,

the reasons therefore, the results of any

investigations made with respect

thereto, and the disposition thereof.

Ballots invalid under this subpart shall

not be counted.

§ 1208.206 Referendum report.

Except as otherwise directed, the

referendum agent shall prepare and

submit to the Administrator a report on

results of the referendum, the manner in

which it was conducted, the extent and

kind of public notice given, and other

information pertinent to analysis of the

referendum and its results.

§ 1208.207 Confidential information.

The ballots and other information or

reports that reveal, or tend to reveal, the

vote of any person covered under the

Act and the voting list shall be held

confidential and shall not be disclosed.

Dated: April 8, 1997.

Sharon Bomer Lauritsen,

Acting Director, Fruit and Vegetable Division.

[FR Doc. 97–9569 Filed 4–11–97; 8:45 am]

BILLING CODE 3410–02–P

DEPARTMENT OF AGRICULTURE

Rural Utilities Service

7 CFR Part 1710

RIN 0572–AB30

Pre-Loan Procedures for Electric

Loans

AGENCY: Rural Utilities Service, USDA.

ACTION: Direct final rule; confirmation of

effective date.

SUMMMARY: On Thursday, February 20,

1997 the Rural Utilities Service (RUS)

published a direct final rule. (See 62 FR

7663). The direct final rule notified the

public of RUS’ intention to issue a

minor amendment to its pre-loan

procedures that will clarify that use of

a conventional utility indenture as a

security instrument for loans to power

supply borrowers is permissible. The

rule will also enhance loan security and

by conforming more closely to private

lending practice, allow easier access to

private sector financing.

We did not receive any written

adverse comments or any written notice

of intent to submit adverse comments in

response to the direct final rule.

EFFECTIVE DATE: The effective date of the

direct final rule is confirmed as April 7,

1997.

FOR FURTHER INFORMATION CONTACT: F.

Lamont Heppe, Jr., Director, Program

Support and Regulatory Analysis, Rural

Utilities Service, U.S. Department of

Agriculture, Room 4036–S, 1400

Independence Avenue, SW., STOP

1522, Washington, DC 20250–1522.

Telephone: 202 720–0736. FAX: 202

720–4120. E-mail: fheppe@rus.usda.gov.

Authority: 7 U.S.C. 901–950(b); Pub. L. 99–

591, 100 Stat. 3341; Pub. L. 103–354, 108 Stat

3178 (7 U.S.C. 6941 et seq.).

Dated: April 7, 1997.

Wally Beyer,

Administrator, Rural Utilities Service.

[FR Doc. 97–9474 Filed 4–11–97; 8:45 am]

BILLING CODE 3410–15–P

FARM CREDIT ADMINISTRATION

12 CFR Parts 600, 603, 611, 614, 615,

618, and 619

RIN 3052–AB61

Organization and Functions; Privacy

Act Regulations; Organization; Loan

Policies and Operations; Funding and

Fiscal Affairs, Loan Policies and

Operations, and Funding Operations;

General Provisions; Definitions

AGENCY: Farm Credit Administration.

ACTION: Final rule and notice of effective

date.

SUMMARY: The Farm Credit

Administration (FCA or Agency)

through the Farm Credit Administration

Board adopts as final without change an

interim rule that updates the regulations

in parts 600, 603, 611, 614, 615, 618,

and 619. This rule eliminates

unnecessary, outdated, duplicative, or

burdensome regulatory requirements,

replaces outdated regulatory language

with more current terminology, and

clarifies the intended meaning of certain

regulatory provisions.

EFFECTIVE DATE: March 4, 1997.

FOR FURTHER INFORMATION CONTACT:

Linda C. Sherman, Policy Analyst,

Regulation Development Division,

Office of Policy Development and

Risk Control, Farm Credit

Administration, McLean, VA 22102–

5090, (703) 883–4498, TDD (703) 883–

4444.

or

Wendy R. Laguarda, Senior Attorney,

Legal Counsel Division, Office of

General Counsel, Farm Credit

Administration, McLean, VA 22102–

5090, (703) 883–4020, TDD (703) 883–

4444.

SUPPLEMENTARY INFORMATION: On

December 20, 1996, the FCA published

an interim rule with request for public

comments (61 FR 67181). The interim

rule is part of the FCA’s ongoing efforts

to streamline the regulatory process and

reduce regulatory burden. The

regulatory changes made in parts 600,

603, 611, 614, 615, 618, and 619 update

the regulatory language with more

current terminology, remove

contradictions between the regulations

and the Farm Credit Act of 1971, as

amended (Act), clarify certain

regulations, and eliminate regulations or

sections of regulations that are

burdensome or unnecessary. These

changes cover a wide variety of

technical issues, such as bylaw

amendments, Federal records retention,

liquidation of associations and banks,

interest rate programs, loan servicing

requirements, purchasing automobiles

through the General Services

Administration, retirement of eligible

borrower stock, the definition of banks

for cooperatives, disclosure of data

regarding borrowers to credit bureaus,

disposal of obsolete records, Farm

Credit System (System) institution

employees being summoned as

witnesses, and issues on borrower rights

and agricultural credit banks.

The public comment period closed on

January 31, 1997. The FCA received two

comments on the interim rule, both

from System institutions. One

commenter thanked the FCA for

clarifying an issue regarding release of

borrower information to consumer

reporting agencies at § 618.8320. The

comment letter stated that the change

would eliminate uncertainty in a

sensitive area of lending operations and

result in benefits to borrowers and the

System.

The other comment received

responded to the FCA’s request that

institutions inform the Agency of any

Federal records still in their possession.

The commenter stated that they do not

have any of the records referred to in the

previous FCA regulation at § 618.8390.

As noted in the preamble to the interim

rule, the FCA’s goal is to identify all

Federal records still retained by System

institutions so that they can either be

destroyed (at the institution’s

discretion) or archived, as appropriate.

Additional guidance on the

maintenance and disposition of Federal

records will be provided by the Agency

in the near future.

The FCA Board adopts the interim

rule amending 12 CFR parts 600, 603,

611, 614, 615, 618, and 619, which was

published at 61 FR 67181 on December

20, 1996, as final without change.