40010 Federal Register / Vol. 63, No. 143 / Monday, July 27, 1998 /Rules and Regulations

§ 145.3 [Amended]

3. In § 145.3, in the introductory text

of paragraph (c), the second sentence is

amended by adding the words ‘‘or, in

the case of ostriches, before the birds

reach 20 months of age’’ immediately

after the word ‘‘age’’.

§ 145.5 [Amended]

4. In § 145.5, paragraph (c) is

amended by removing the words ‘‘or E’’

and adding the words ‘‘E, or F’’ in their

place.

§ 145.10 [Amended]

5. In § 145.10, the introductory text of

the section is amended by removing the

words ‘‘or E’’ and adding the words ‘‘E,

or F’’ in their place, and paragraph (b)

is amended by removing the words ‘‘and

§ 145.53(b)’’ and adding the words

‘‘§ 145.53(b), and § 145.63(a)’’ in their

place.

§ 145.14 [Amended]

6. In § 145.14, in the introductory text

of the section, the first sentence is

amended by adding the words ‘‘, and

ostriches blood tested under subpart F

must be more than 12 months of age’’

immediately after the word ‘‘first’’.

7. In § 145.14, paragraph (a)(5) is

amended by removing the words ‘‘and

145.53’’ and adding the words ‘‘, 145.53,

and 145.63’’ in their place.

8. A new subpart F is added to read

as follows:

Subpart F—Special Provisions for Ostrich

Breeding Flocks and Products

145.61 Definitions.

145.62 Participation.

145.63 Terminology and classification;

flocks and products.

Subpart F—Special Provisions for

Ostrich Breeding Flocks and Products

§ 145.61 Definitions.

Except where the context otherwise

requires, for the purposes of this subpart

the following terms shall be construed,

respectively, to mean:

Ostrich. Birds of the species Struthio

camelus, including all subspecies and

subspecies hybrids.

§ 145.62 Participation.

Participating flocks of ostriches, and

the eggs and chicks produced from

them, shall comply with the applicable

general provisions of subpart A of this

part and the special provisions of this

subpart.

(a) Started poultry shall lose their

identity under Plan terminology when

not maintained by Plan participants

under the conditions prescribed in

§ 145.5(a).

(b) Hatching eggs produced by

primary breeding flocks shall be

fumigated or otherwise sanitized (see

§ 147.22 of this chapter).

§ 145.63 Terminology and classification;

flocks and products.

Participating flocks, and the eggs and

baby poultry produced from them, that

have met the respective requirements

specified in this section may be

designated by the following terms and

their corresponding designs illustrated

in § 145.10.

(a) U.S. Pullorum-Typhoid Clean. A

flock in which freedom from pullorum

and typhoid has been demonstrated to

the Official State Agency under the

criteria in paragraph (a)(1) or (a)(2) of

this section. (See § 145.14(a) relating to

the official blood test for pullorumtyphoid where applicable.)

(1) It has been officially blood tested

within the past 12 months with no

reactors.

(2) It is a multiplier or primary

breeding flock in which a sample of

each bird in flocks of 30 or fewer birds,

a minimum of 30 birds from flocks up

to 300 birds, or 10 percent of all birds

from flocks exceeding 300 birds has

been officially tested for pullorumtyphoid within the past 12 months with

no reactors: Provided, That a

bacteriological examination monitoring

program for ostriches acceptable to the

Official State Agency and approved by

the Service may be used in lieu of

annual blood testing: And provided

further, That when a flock is a

multiplier breeding flock located in a

State which has been deemed to be a

U.S. Pullorum-Typhoid Clean State for

the past 3 years, and during which time

no isolation of pullorum or typhoid has

been made that can be traced to a source

in that State, a bacteriological

examination monitoring program or a

serological examination monitoring

program acceptable to the Official State

Agency and approved by the Service

may be used in lieu of annual blood

testing.

(b) [Reserved]

Done in Washington, DC, this 22nd day of

July 1998.

Charles P. Schwalbe,

Acting Administrator, Animal and Plant

Health Inspection Service.

[FR Doc. 98–19997 Filed 7–24–98; 8:45 am]

BILLING CODE 3410–34–P

DEPARTMENT OF AGRICULTURE

Food Safety and Inspection Service

9 CFR Parts 391 and 381

[Docket No. 98–030N]

Meat, Poultry, and Egg Products

Labeling Review Process; Elimination

of Appointments With Label Courier/

Expediting Firms

AGENCY: Food Safety and Inspection

Service, USDA.

ACTION: Notice of procedural change;

request for comments.

SUMMARY: The Food Safety and

Inspection Service (FSIS) is announcing

a procedural change for reviewing

labeling submitted to the Labeling

Review Branch (LRB) of the Labeling

and Compounds Review Division

(LCRD). The new procedure will

eliminate routine, daily, time-set, faceto-face appointments with label courier/

expediting firms. Elimination of the

daily, face-to-face appointments will not

change the present system of labeling

review and will not limit access to all

LCRD staff. The labeling review staff

will continue to receive and approve

labels for meat, poultry, and egg

products in a timely and orderly

manner. However, the procedural

change will lead to a more effective and

efficient use of LRB staff time and

enable staff to perform labeling reviews

and other duties concurrently.

DATES: The change in procedures for

labeling review will be effective

September 10, 1998.

FOR FURTHER INFORMATION CONTACT: Mr.

William J. Hudnall, Assistant Deputy

Administrator, Office of Policy,

Planning and Evaluation; telephone

(202) 205–0495 or FAX (202) 401–1760.

SUPPLEMENTARY INFORMATION: FSIS has

stated repeatedly its intent to increase

the proportional share of its resources

that are devoted to food safety. The

Agency reorganization of 1996 reduced

the number of administrative support

positions, eliminated several

management levels, improved

supervisor-to-employee ratios, and

restructured an expanded front line

inspection workforce to perform more

effectively. The Agency continues to

seek ways to improve the efficiency

with which it carries out its consumer

protection activities that are not related

to food safety. Therefore, FSIS is

reviewing all operations in an effort to

achieve greater efficiency while

improving the level of consumer

protection.

The Prior Label Approval System

(PLAS) is conducted as part of the
Federal Register / Vol. 63, No. 143 / Monday, July 27, 1998 /Rules and Regulations 40011

Agency’s mandate to ensure that

labeling for meat, poultry, and egg

products is truthful, not misleading, and

in compliance with the misbranding

provisions of the Federal Meat

Inspection Act, the Poultry Products

Inspection Act, the Egg Products

Inspection Act, and implementing

regulations. FSIS streamlined the

system in a final rule issued on

December 29, 1995, (60 FR 67444) that

became effective July 1, 1996, by

expanding the categories of products for

which labeling can be approved

generically by industry. For example,

the rule allows Federal establishments

to design and use labeling that conforms

to the regulatory requirements for meat,

poultry, and egg products that have

standards of identity and composition

defined in the regulations (9 CFR 319

and 381) or in the Food Standards and

Labeling Policy Book. The Agency also

maintains a prior label approval system

for reviewing and approving sketches

and temporary labeling for certain

categories of meat and poultry products

that are not defined by standards of

identity and composition; products that

are prepared using novel production

methods; products that are formulated

with novel additives or ingredients; or

products whose labeling bears nutrition,

health, quality, or other types of claims.

The final rule on PLAS also indicated

that the Agency would implement a

Generic Labeling Audit System (GLAS)

to determine the extent to which

Federal establishments are applying

labeling regulations and policies in

approving generic labeling, in

compliance with the regulations. The

Agency is currently developing this

audit system. The prospective goals of

PLAS include developing and

implementing GLAS simultaneously to

conducting PLAS, and to devote more

time to devising a prior approval system

that will be more consistent with

Hazard Analysis and Critical Control

Point (HACCP) systems and the labeling

concepts of the future. The changes to

PLAS and the development of a generic

labeling system are based on concepts

that are consistent with the Agency’s

effort to proportionally shift resources to

food safety and to afford processors

flexibility in preparing and modifying

their labeling to fit their marketing

needs.

Presently, labeling for meat, poultry,

or egg products that requires prior

approval is submitted daily for review

and approval to the LCRD via regular

mail; expedited mail and delivery

services (such as Federal Express);

personal visits to the division by

company and trade representatives; and

through the services provided by courier

firms/expediter services located in the

Washington, DC area. Labeling reviews

for courier firms/expediter services are

conducted during routine, daily, timeset, face-to-face appointments with

labeling review staff during a 4-hour

core time period each workday.

Representatives of courier firms/

expediter services submit labeling for

meat, poultry, or egg products for

processors who choose to use their

services. Each courier firm has a

designated time period in a day to have

its labeling reviewed by members of the

Labeling Review Branch. During these

time periods, courier firms could meet

with up to four FSIS staff members in

1-hour intervals. FSIS believes that

operating in this manner is no longer

consistent with the efforts to better use

personnel resources. The following

factors compel the need to alter the

current process:

• An increase in the submission of

labeling with complex technical issues

has occurred. Greater concentration and

more time are needed by the labeling

review staff to evaluate labeling that

reflects new initiatives within the

industry. The current process of

reviewing, approving, or rejecting

labeling during daily, face-to-face

labeling reviews does not allow this

time.

• Greater time is needed to research

labeling policy issues, such as use of the

novel additives not currently approved

for use in meat, poultry, or egg products;

chemical analysis reviews; variations in

nutrition labeling claims; and labeling

with animal production claims. Such

comprehensive reviews require

interaction among the division staff, and

with other parts of the Agency, other

Federal Agencies, and experts outside

FSIS. However, daily appointments

with courier firms have taken

precedence over the other duties of the

staff. Therefore, the effective use of

labeling review staff time is restricted

because half of the workday of the

labeling review staff is devoted to the

structured allotment of time for courier

service.

• Maintaining a fixed, daily schedule

of face-to-face labeling reviews is no

longer critical because the immediacy of

the need for an on-the-spot labeling

approval provided by someone on the

labeling review staff has diminished.

Before the December 1995 final rule on

PLAS took effect, the division was

responsible for approving essentially all

labeling in both sketch and final form.

However, effective July 1, 1996, this

requirement changed. Of the labeling

that must be submitted for prior

approval now, only sketch labeling

needs to be submitted. The industry

need not submit such labeling in final

form. This has shifted the issue of the

timeliness of the approvals of final

labeling to meet industry’s marketing

needs to one controlled by industry.

• Given the diminished need for

immediate, on-the-spot approval of

labeling by labeling review staff,

continuing the existing procedure is

unfair to companies choosing to mail

their labeling to the division or have

company employees deliver it for them

for review in person. Currently, labeling

submitted by mail or submitted

personally by processors is not given

time for review that is equal to that

given to labeling submitted by labeling

courier firms/expediter services during

face-to-face reviews. It is necessary that

staff time be more equitably arranged to

review labeling that is mailed to the

branch or division or delivered by

processors themselves by individuals

representing meat, poultry, or egg

processors. This can only be done by

eliminating face-to-face reviews.

The division will continue to review

and approve labeling in a timely and

efficient manner and accommodate

representatives of industry and other

representatives who wish to meet with

staff members for consultation on any

issues relating to labeling, standards, or

ingredients. Labeling approvals will be

handled on a first-come, first-served

basis, as they are delivered to the LCRD,

including expedited labeling, labeling

mailed directly to the division, and

labeling delivered in person by

representatives of the industry. As

needed, representatives of industry and

other representatives will have the

opportunity to arrange appointments

with division staff on a time-available

basis to discuss novel product and

ingredient issues and appeals, and to

receive regulatory guidance. The LRB

will continue, to the extent possible, to

accommodate emergency situations

regarding labeling approvals on a caseby-case basis. The Agency believes this

procedural change will result in a more

productive use of LCRD staffing

resources, and most importantly,

improve the quality of meat, poultry,

and egg products labeling.

It is the Agency’s intent to implement

the policy described in this notice 45

days from the date it is published.

However, the Agency is interested in

receiving substantive comments within

30 days of publication on how it can

better implement the procedural

changes contained in the notice.
40012 Federal Register / Vol. 63, No. 143 / Monday, July 27, 1998 /Rules and Regulations

Done at Washington DC, on: July 14, 1998.

Thomas J. Billy,

Administrator.

[FR Doc. 98–20002 Filed 7–24–98; 8:45 am]

BILLING CODE 3410–DM–P

FEDERAL RESERVE SYSTEM

12 CFR Parts 220 and 224

Regulations T and X

Securities Credit Transactions; List of

Marginable OTC Stocks; List of

Foreign Margin Stocks

AGENCY: Board of Governors of the

Federal Reserve System.

ACTION: Final rule; determination of

applicability of regulations.

SUMMARY: The List of Marginable OTC

Stocks (OTC List) is composed of stocks

traded over-the-counter (OTC) in the

United States that qualify as margin

securities under Regulation T, Credit by

Brokers and Dealers. The List of Foreign

Margin Stocks (Foreign List) is

composed of foreign equity securities

that qualify as margin securities under

Regulation T. The OTC List and the

Foreign List are published four times a

year by the Board. This document sets

forth additions to and deletions from the

previous OTC List and a complete

edition of the Foreign List.

EFFECTIVE DATE: August 10, 1998.

FOR FURTHER INFORMATION CONTACT:

Peggy Wolffrum, Securities Regulation

Analyst, Division of Banking

Supervision and Regulation, (202) 452–

2837, Board of Governors of the Federal

Reserve System, Washington, D.C.

20551. For the hearing impaired only,

contact Diane Jenkins,

Telecommunications Device for the Deaf

(TDD) at (202) 452–3544.

SUPPLEMENTARY INFORMATION: Listed

below are the deletions from and

additions to the Board’s OTC List,

which was last published on April 28,

1998 (63 FR 23195), and became

effective May 11, 1998. A copy of the

complete OTC List is available from the

Federal Reserve Banks.

The OTC List includes those stocks

traded over-the-counter in the United

States that qualify as OTC margin stock

under Regulation T (12 CFR Part 220) by

meeting the requirements of section

220.11. This determination also affects

the applicability of Regulation X (12

CFR Part 224). These stocks have the

degree of national investor interest, the

depth and breadth of market, and the

availability of information respecting

the stock and its issuer to warrant

regulation in the same fashion as

exchange-traded securities. The OTC

List also includes any OTC stock

designated for trading in the national

market system (NMS security) under

rules approved by the Securities and

Exchange Commission (SEC).

Additional OTC stocks may be

designated as NMS securities in the

interim between the Board’s quarterly

publications. They will become

automatically marginable upon the

effective date of their NMS designation.

The names of these stocks are available

at the SEC and at the National

Association of Securities Dealers, Inc.

Pursuant to amendments recently

adopted by the Board (see, 63 FR 2805,

January 16, 1998), the definition of OTC

margin stock in § 220.2 and the

eligibility criteria for these stocks in

§ 220.11(a) and (b) will be removed from

Regulation T on January 1, 1999, and

broker-dealers will be permitted to

extend margin credit against all equity

securities listed in the Nasdaq Stock

Market. Lenders subject to Regulation T

and borrowers subject to Regulation X

who are required under § 224.3(a) to

conform credit they obtain to Regulation

T will use the OTC List until

publication of the next OTC List,

anticipated for November, 1998. The

November 1998 OTC List will expire on

January 1, 1999.

Also listed below is a complete

edition of the Foreign List. This

supercedes the previous Foreign List,

which was last published on April 28,

1998, (63 FR 23195), and became

effective May 11, 1998. Pursuant to

amendments recently adopted by the

Board that became effective for all

broker-dealers on July 1, 1998 (see, 63

FR 2805, January 16, 1998), the Foreign

List is composed of those foreign equity

securities that qualify as margin

securities because they have been found

to meet the criteria in section 220.11 of

Regulation T. Additional foreign equity

securities qualify as margin securities if

they are deemed by the Securities and

Exchange Commission to have a ‘‘ready

market’’ for purposes of SEC Rule 15c3–

1. This includes all foreign stocks listed

on the Financial Times/Standard &

Poor’s Actuaries World Indices.

Although the Board has included these

stocks on its Foreign List since 1996, the

recent amendments allow broker-dealers

to extend credit on such stocks without

regard to the Foreign List.

Public Comment and Deferred Effective

Date

The requirements of 5 U.S.C. 553 with

respect to notice and public

participation were not followed in

connection with the issuance of this

amendment due to the objective

character of the criteria for inclusion

and continued inclusion on the Lists

specified in 12 CFR 220.17(a), (b), (c)

and (d). No additional useful

information would be gained by public

participation. The full requirements of 5

U.S.C. 553 with respect to deferred

effective date have not been followed in

connection with the issuance of this

amendment because the Board finds

that it is in the public interest to

facilitate investment and credit

decisions based in whole or in part

upon the composition of these Lists as

soon as possible. The Board has

responded to a request by the public

and allowed approximately a two-week

delay before the Lists are effective.

List of Subjects

12 CFR Part 220

Banks, Banking, Brokers, Credit,

Margin, Margin requirements,

Investments, National Market System

(NMS Security), Reporting and

recordkeeping requirements, Securities.

12 CFR Part 224

Banks, Banking, Borrowers, Credit,

Margin, Margin requirements, Reporting

and recordkeeping requirements,

Securities.

Accordingly, pursuant to the

authority of sections 7 and 23 of the

Securities Exchange Act of 1934, as

amended (15 U.S.C. 78g and 78w), and

in accordance with 12 CFR 220.2 and

220.11, there is set forth below a listing

of deletions from and additions to the

OTC List and a complete edition of the

Foreign List.

Deletions From the List of Marginable

OTC Stocks

Stocks Removed For Failing Continued

Listing Requirements

ALTRIS SOFTWARE, INC.

No par common

AMERICAN CINEMASTORES INC.

$.001 par common

AMERICAN INTERNATIONAL

PETROLEUM CORP.

Class A, warrants (expire 04–09–1998)

AQUAGENIX INC.

$.01 par common

Warrants (expire 09–13–1999)

ARIELY ADVERTISING, LIMITED

Ordinary Shares

ATKINSON, GUY F., COMPANY OF

CALIFORNIA

No par common

AUTOINFO, INC.

$.01 par common

BIOCIRCUITS CORPORATION

$.001 par common

BPI PACKAGING TECHNOLOGIES,

INC.

Series A, $.01 par redeemable