This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

42283

Vol. 63, No. 152

Friday, August 7, 1998

DEPARTMENT OF AGRICULTURE

Office of the Secretary

7 CFR Part 17

RIN 0551–AA54

Regulations Governing the Financing

of Commercial Sales of Agricultural

Commodities

AGENCY: Commodity Credit Corporation.

ACTION: Proposed rule.

SUMMARY: The Commodity Credit

Corporation (CCC) proposes to revise

the regulations applicable to the

financing of the sale and exportation of

agricultural commodities pursuant to

title I of the Agricultural Trade

Development and Assistance Act of

1954, as amended (Pub. L. 480). The

proposed rule would permit a waiver of

the present requirement that only

private entities with a business office or

agent in the United States are eligible to

enter into title I, Pub. L. 480 agreements

when the General Sales Manager

determines that there is adequate

assurance of repayment to CCC. This

change would allow additional foreign

private entities to participate in title I,

and thereby increase exports of U.S.

agricultural commodities.

DATES: Comments on this rule must be

received by September 8, 1998.

ADDRESSES: Comments should be sent to

Grant Pettrie, Acting Director, Program

Development Division, Foreign

Agricultural Service, U.S. Department of

Agriculture, Room 4506, South

Building, Stop 1034, Washington, D.C.

20250–1034.

FOR FURTHER INFORMATION CONTACT:

Grant Pettrie, Acting Director, Program

Development Division, Foreign

Agricultural Service, U.S. Department of

Agriculture, Room 4506, South

Building, Stop 1034, Washington, D.C.

20250–1034; telephone: (202) 720–4221;

Facsimile: (202) 690–0251.

SUPPLEMENTARY INFORMATION: This

proposed rule is issued in conformance

with Executive Order 12866. Based on

information compiled by the

Department, it has been determined that

this proposed rule:

(1) Would have an annual effect on

the economy of less than $100 million;

(2) Would not adversely affect in a

material way the economy, a sector of

the economy, productivity, competition,

jobs, the environment, public health or

safety, or State, local, or tribal

governments or communities;

(3) Would not create a serious

inconsistency or otherwise interfere

with an action taken or planned by

another agency;

(4) Would not alter the budgetary

impact of entitlements, grants, user fees,

or loan programs or rights and

obligations of recipients thereof; and

(5) Would not raise novel legal or

policy issues arising out of legal

mandates, the President’s priorities, or

principles set forth in Executive Order

12866.

Regulatory Flexibility Act

This proposed rule has been reviewed

with regard to the requirements of the

Regulatory Flexibility Act. The Vice

President, CCC, who is the General

Sales Manager, has certified that this

rule will not have a significant

economic impact on a substantial

number of small entities.

Under title I, P. L. 480 CCC enters into

agreements with foreign governments or

private entities to finance their purchase

and importation of U.S. agricultural

commodities. The proposed rule would

allow a waiver of an existing program

requirement that restricts the eligibility

of businesses in foreign countries to

enter into these agreements with CCC. A

copy of this proposed rule has been

submitted to the General Counsel, Small

Business Administration.

Executive Order 12372

This program is not subject to the

provisions of Executive Order 12372

which requires intergovernmental

consultation with state and local

officials. See the Notice related to 7 CFR

Part 3015, Subpart V, published at 48

FR 29115 (June 24, 1983).

Paperwork Reduction Act

The information collection

requirements imposed by this proposed

rule have been previously submitted to

the Office of Management and Budget

(OMB) under the Paperwork Reduction

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

OMB has assigned control number

0551–0005 for this information

collection. This proposed rule would

not require the collection of additional

information.

Executive Order 12988

This proposed rule has been reviewed

under Executive Order 12988, Civil

Justice Reform. The proposed rule

would have preemptive effect with

respect to any state or local laws,

regulations, or policies which conflict

with such provisions or which

otherwise impede their full

implementation. The final rule would

not have retroactive effect. The rule

does not require that administrative

remedies be exhausted before suit may

be filed.

Background

Title I of the Agricultural Trade

Development and Assistance Act of

1954, as amended (Pub. L. 480)

authorizes CCC to finance the sale and

exportation of agricultural commodities

on concessional credit terms, 7 U.S.C.

1701 et seq. On October 10, 1997, CCC

published a final rule (62 FR 52929)

amending the regulations governing

Pub. L. 480 to, among other things,

provide that CCC may enter into title I,

P. L. 480 agreements with private

entities. However, that rule requires

that, in order to be eligible for a title I,

P. L. 480 agreement, a private entity

must maintain a bona fide business

office in the United States and have a

person, principal, or agent on whom

service of judicial process may be had

in the United States.

The purpose of requiring that private

entities have a presence in the United

States was to make them more amenable

to legal process in the case of a default

in repayment to CCC. It appears,

however, that this requirement could

restrict participation by some foreign

private entities that could not meet this

requirements in a practical manner.

This could limit CCC’s flexibility in

programming and eliminate

consideration of viable export

opportunities that would otherwise

further the purposes of title I, Pub. L.

480. Consequently, this proposed rule

would allow the General Sales Manager

to waive this requirement if the foreign

private entity provides adequate

assurances of repayment to CCC for the

financing extended to it under the Pub.

L. 480 agreement. It is not necessary to
42284 Federal Register / Vol. 63, No. 152 / Friday, August 7, 1998 / Proposed Rules

identify in advance what may constitute

adequate assurances of repayment

because options may vary considerably

depending upon foreign private entities

and the country involved.

List of Subjects in 7 CFR Part 17

Agricultural commodities, Exports,

Finance, Maritime carriers.

Accordingly, it is proposed to amend

Part 17 of 7 CFR as follows:

PART 17—SALES OF AGRICULTURAL

COMMODITIES MADE AVAILABLE

UNDER TITLE I OF THE

AGRICULTURAL TRADE

DEVELOPMENT AND ASSISTANCE

ACT OF 1954, AS AMENDED

1. The authority citation for part 17

continues to read as follows:

Authority: 7 U.S.C. 1701–1704, 1731–

1736b, 1736f, 5676; E.O. 12220, 45 FR 44245.

2. Section 17.1(b)(3) is revised to read

as follows:

§ 17.1 General

* * * * *

(b) * * *

(3) A private entity must maintain a

bona fide business office in the United

States and have a person, principal, or

agent on whom service of judicial

process may be had in the United States

unless the General Sales Manager

determines that there are adequate

assurances of repayment to CCC for the

financing extended by CCC.

* * * * *

Signed at Washington D.C. on July 27,

1998.

Lon Hatamiya,

Administrator, Foreign Agricultural Service

and Vice President, Commodity Credit

Corporation.

[FR Doc. 98–20755 Filed 8–6–98; 8:45 am]

BILLING CODE 3410–10–P

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 993

[Docket No. FV98–993–2 PR]

Dried Prunes Produced in California;

Increased Assessment Rate

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Proposed rule.

SUMMARY: This rule would increase the

assessment rate from $1.60 to $2.16 per

ton of salable dried prunes established

for the Prune Marketing Committee

(Committee) under Marketing Order No.

993 for the 1998–99 and subsequent

crop years. The Committee is

responsible for local administration of

the marketing order which regulates the

handling of dried prunes grown in

California. Authorization to assess dried

prune handlers enables the Committee

to incur expenses that are reasonable

and necessary to administer the

program. The crop year begins August 1

and ends July 31. The assessment rate

would remain in effect indefinitely

unless modified, suspended, or

terminated.

DATES: Comments must be received by

September 8, 1998.

ADDRESSES: Interested persons are

invited to submit written comments

concerning this rule. Comments must be

sent to the Docket Clerk, Fruit and

Vegetable Programs, AMS, USDA, room

2525–S, P.O. Box 96456, Washington,

DC 20090–6456; Fax: (202) 205–6632.

Comments should reference the docket

number and the date and page number

of this issue of the Federal Register and

will be available for public inspection in

the Office of the Docket Clerk during

regular business hours.

FOR FURTHER INFORMATION CONTACT:

Diane Purvis, Marketing Assistant, or

Richard P. Van Diest, Marketing

Specialist, California Marketing Field

Office, Fruit and Vegetable Programs,

AMS, USDA, 2202 Monterey Street,

suite 102B, Fresno, California 93721;

telephone (209) 487–5901; Fax (209)

487–5906; or George Kelhart, Technical

Advisor, Marketing Order

Administration Branch, Fruit and

Vegetable Programs, AMS, USDA, room

2525–S, P.O. Box 96456, Washington,

DC 20090–6456; telephone: (202) 720–

2491, Fax: (202) 205–6632. Small

businesses may request information on

compliance with this regulation by

contacting Jay Guerber, Marketing Order

Administration Branch, Fruit and

Vegetable Programs, AMS, USDA, room

2525–S, P.O. Box 96456, Washington,

DC 20090–6456; telephone: (202) 720–

2491, Fax: (202) 205–6632.

SUPPLEMENTARY INFORMATION: This rule

is issued under Marketing Agreement

and Order No. 993, both as amended (7

CFR part 993), regulating the handling

of dried prunes grown in California,

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 of Agriculture

(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, California dried prune

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 dried prunes beginning on

August 1, 1998, and continue 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.

This rule would increase the

assessment rate established for the

Committee for the 1998–99 and

subsequent crop years from $1.60 per

ton to $2.16 per ton of salable dried

prunes.

The California dried prune 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 and handlers

of California dried prunes. 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.

For the 1997–98 and subsequent crop

years, the Committee recommended,

and the Department approved, an

assessment rate that would continue in

effect from crop year to crop year unless

modified, suspended, or terminated by

the Secretary upon recommendation