This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

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

The Code of Federal Regulations is sold by

the Superintendent of Documents. Prices of

new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

40627

Vol. 63, No. 146

Thursday, July 30, 1998

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 70

[Docket No. PY–97–004]

Voluntary Poultry and Rabbit Grading

Regulations

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Final rule.

SUMMARY: The Agricultural Marketing

Service (AMS) is amending the

regulations governing the voluntary

poultry and rabbit grading programs.

The revisions simplify the definition

about feathers on poultry, provide an

alternative grademark for poultry and

rabbit products, provide for the use of

a ‘‘Prepared From’’ grademark to

officially identify specialized products

that originate from officially graded

poultry, change the sample plan used by

graders, and increase the lighting

intensity required at grading stations.

From time to time, sections in the

regulations are affected by changes in

processing technology and marketing.

This rule updates the regulations to

reflect these changes.

DATES: This rule is effective August 31,

1998.

FOR FURTHER INFORMATION CONTACT:

Douglas C. Bailey, Chief,

Standardization Branch, (202) 720–

3506.

SUPPLEMENTARY INFORMATION: This rule

has been determined to be not

significant for purposes of Executive

Order 12866 and has not been reviewed

by the Office of Management and

Budget (OMB).

This rule has been reviewed under

Executive Order 12988, Civil Justice

Reform. This action 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. There are no administrative

procedures which must be exhausted

prior to any judicial challenge to the

provisions of this rule.

Pursuant to the requirements set forth

in the Regulatory Flexibility Act (RFA),

AMS has considered the economic

impact of this action on small entities as

defined in the RFA (5 U.S.C. 601). There

are some 200 plants using the Agency’s

voluntary poultry grading services and

many of them are small entities.

The definition Free from protruding

pinfeathers, diminutive feathers, or

hairs is simplified by removing the

words ‘‘pinfeathers’’ and ‘‘diminutive,’’

words no longer commonly used when

discussing feathers and poultry quality.

Additionally, in the definition for

Ready-to-cook poultry, the word

‘‘pinfeathers’’ is changed to ‘‘feathers.’’

These changes merely reflect current

practices and should not have any

additional economic impact on entities

using voluntary poultry grading

services.

Poultry and rabbit processors will be

allowed to use a shield displayed in

three colors on packaging materials to

officially identify USDA graded poultry

and rabbits. Similarly, producers of

products originating from A quality

poultry, for which there are no U.S.

grade standards, will be allowed to use

a ‘‘Prepared From’’ grademark on

packaging materials. The use of these

alternative forms of the USDA

grademark gives processors greater

flexibility in packaging and marketing

their products. Since these alternative

grademarks are used at the processors’

discretion, any economic impact caused

by their use is by the choice of the

processors.

Changing the sampling plan will

enable graders to select a more

representative sample upon which to

base grading decisions. The economic

impact should be no greater than under

the current sampling plan. Increasing

the lighting intensity required at grading

stations will enhance the grader’s ability

to visually evaluate products. Both

changes will provide processors with

fairer, more accurate evaluations. Better

lighting could also help avoid the

economic burden of reprocessing

product or diverting product

unnecessarily downgraded because of

inadequate lighting. The costs, if any,

for increasing the lighting intensity

should be minor.

For the above reasons, the Agency has

certified that this action will not have a

significant impact on a substantial

number of small entities.

Background and Comments

Poultry and rabbit grading are

voluntary programs provided under the

Agricultural Marketing Act of 1946, as

amended, and are offered on a fee-forservice basis. They are designed to assist

the orderly marketing of poultry and

rabbits by providing for the official

certification of quality, quantity, class,

temperature, packaging, and other

factors. Changes in processing

technology and marketing require that

the regulations governing poultry and

rabbit grading be updated from time to

time.

A proposed rule to amend the

voluntary poultry and rabbit grading

regulations was published in the

Federal Register (62 FR 63471) on

December 1, 1997. Comments on the

proposed rule were solicited from

interested parties until January 30, 1998.

During the 60-day comment period, the

Agency received one comment. It was

from a State department of agriculture

in support of the proposed changes.

Freedom from feathers is one of the

factors considered in poultry grading. In

the definition Free from protruding

pinfeathers, diminutive feathers, or

hairs (§ 70.1), the words ‘‘pinfeathers’’

and ‘‘diminutive’’ are removed. These

words are no longer commonly used

when discussing feathers and poultry

quality. Nor are they needed to achieve

the quality standards set by the

regulations. To be consistent, in the

definition Ready-to-cook poultry, the

word ‘‘pinfeathers’’ is changed to

‘‘feathers.’’

The Agency will permit the use of

alternative grademarks (§ 70.51) so that

processors wanting to use them can

have additional flexibility in packaging

and marketing their products.

Processors wanting to use a USDA

grademark to identify their consumerpack USDA graded poultry and rabbit

products could use a new grademark

that contains horizontal bands of three

colors. Processors who use USDA Grade

A poultry to produce specialized

poultry products, for which there are no

U.S. grade standards, could use a

‘‘Prepared From’’ grademark on the
40628 Federal Register / Vol. 63, No. 146 /Thursday, July 30, 1998 /Rules and Regulations

specialized poultry products. The

section is also reorganized for clarity.

The regulations contain a sampling

plan to guide graders when they select

samples upon which to base grading

decisions (§ 70.80(b)). The sampling

plan is changed so that the sample size

more closely reflects the size of the lot

being sampled, thereby fostering a more

representative sample of each lot.

The regulations also specify the

lighting intensity required at grading

stations in the processing plants

(§ 70.110). The lighting intensity is

increased from 50-foot candles to 100-

foot candles to improve the graders

ability to visually evaluate the products

being graded. This is the same intensity

as that required by USDA’s Food Safety

and Inspection Service at all of their

inspection stations.

List of Subjects in 7 CFR Part 70

Food grades and standards, Food

labeling, Poultry and poultry products,

Rabbits and rabbit products, Reporting

and recordkeeping requirements.

For reasons set forth in the preamble,

Title 7, Code of Federal Regulations part

70 is amended as follows:

PART 70—VOLUNTARY GRADING OF

POULTRY PRODUCTS AND RABBIT

PRODUCTS

1. The heading for part 70 is revised

to read as set forth above:

2. The authority citation for part 70

continues to read as follows:

Authority: 7 U.S.C. 1621–1627.

3. In § 70.1, the definition for Readyto-cook poultry is amended by removing

the word ‘‘pinfeathers’’ and adding in

its place the word ‘‘feathers’’ and the

definition for Free from protruding

pinfeathers, diminutive feathers, or

hairs is revised to read as follows:

§ 70.1 Definitions.

* * * * *

Free from protruding feathers or hairs

means that a poultry carcass, part, or

poultry product with the skin on is free

from protruding feathers or hairs which

are visible to a grader during an

examination at normal operating speeds.

However, a poultry carcass, part, or

poultry product may be considered as

being free from protruding feathers or

hairs if it has a generally clean

appearance and if not more than an

occasional protruding feather or hair is

evidenced during a more careful

examination.

* * * * *

4. Section 70.51 is revised to read as

follows:

§ 70.51 Form of grademark and

information required.

(a) Form of official identification

symbol and grademark. (1) The shield

set forth in Figure 1 of this section shall

be the official identification symbol for

purposes of this part and when used,

imitated, or simulated in any manner in

connection with poultry or rabbits, shall

be deemed prima facia to constitute a

representation that the product has been

officially graded for the purposes of

§ 70.2.

(2) Except as otherwise authorized,

the grademark permitted to be used to

officially identify USDA consumergraded poultry and rabbit products shall

be of the form and design indicated in

Figures 2 through 4 of this section. The

shield shall be of sufficient size so that

the printing and other information

contained therein is legible and in

approximately the same proportion as

shown in these figures.

(3) The ‘‘Prepared From’’ grademark

in Figure 5 of this section may be used

to identify specialized poultry products

for which there are no official U.S. grade

standards, provided that these products

are approved by the Agency and are

prepared from U.S. Consumer Grade A

poultry carcasses, parts, or other

products that comply with the

requirements of AMS § 70.220. All

poultry products shall be processed and

labeled in accordance with 9 CFR part

381.

(b) Information required on

grademark. (1) Except as otherwise

authorized by the Administrator, each

grademark used shall include the letters

‘‘USDA’’ and the U.S. grade of the

product it identifies, such as ‘‘A Grade,’’

as shown in Figure 2 of this section.

Such information shall be printed with

the shield and the wording within the

shield in contrasting colors in a manner

such that the design is legible and

conspicuous on the material upon

which it is printed.

(2) Except as otherwise authorized,

the bands of the shield in Figure 4 of

this section shall be displayed in three

colors, with the color of the top, middle,

and bottom bands being blue, white,

and red, respectively.

(3) The ‘‘Prepared From’’ grademark

in Figure 5 of this section may be any

one of the designs shown in Figures 2

through 4 of this section. The text

outside the shield shall be conspicuous,

legible, and in approximately the same

proportion and close proximity to the

shield as shown in Figure 5 of this

section.

(c) Products that may be individually

grademarked. The grademarks set forth

in Figures 2 through 4 of this section

may be applied individually to ready-tocook poultry, rabbits, and specified

poultry food products for which

consumer grades are provided in the

U.S. Classes, Standards, and Grades for

Poultry and Rabbits, AMS 70.200 and

70.300 et seq., respectively, or to the

containers in which such products are

enclosed for the purpose of display and

sale to household consumers, only

when such products qualify for the

particular grade indicated in accordance

with the consumer grades.

BILLING CODE 3410–02–P
Federal Register / Vol. 63, No. 146 /Thursday, July 30, 1998 /Rules and Regulations 40629

BILLING CODE 3410–02–C
40630 Federal Register / Vol. 63, No. 146 /Thursday, July 30, 1998 /Rules and Regulations

5. In § 70.80, the chart is revised to

read as follows:

§ 70.80 General.

* * * * *

Containers in lot Containers in sample

1–4 ............................ All.

5–50 .......................... 4.

51–100 ...................... 5.

101–200 .................... 6.

201–400 .................... 7.

401–600 .................... 8.

For each additional

100 containers, or

fraction thereof, in

excess of 600 containers.

Include one additional

container.

6. In § 70.110, paragraph (b) is revised

to read as follows:

§ 70.110 Requirements for sanitation,

facilities, and operating procedures in

official plants.

* * * * *

(b) With respect to grading services,

there shall be a minimum of 100-foot

candles of light intensity at grading

stations; and acceptable means, when

necessary, of maintaining control and

identity of products segregated for

quality, class, condition, weight, lot, or

any other factor which may be used to

distinguish one type of product from

another.

Dated: July 23, 1998.

Enrique E. Figueroa,

Administrator, Agricultural Marketing

Service.

[FR Doc. 98–20321 Filed 7–29–98; 8:45 am]

BILLING CODE 3410–02–P

DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Parts 400 and 402

RIN 0563–AB68

General Administrative Regulations,

Subpart U; and Catastrophic Risk

Protection Endorsement; Regulations

for the 1999 and Subsequent

Reinsurance Years

AGENCY: Federal Crop Insurance

Corporation, USDA.

ACTION: Interim rule.

SUMMARY: The Federal Crop Insurance

Corporation (FCIC) amends the General

Administrative Regulations, Subpart

U—Ineligibility for Programs Under the

Federal Crop Insurance Act and the

Catastrophic Risk Protection

Endorsement to conform with the

statutory mandates of the Agricultural

Research, Extension, and Education

Reform Act of 1998 (1998 Research Act).

EFFECTIVE DATE: This rule is effective

July 1, 1998. Written comments and

opinions on this rule will be accepted

until the close of business September

28, 1998, and will be considered when

the rule is to be made final.

ADDRESSES: Interested persons are

invited to submit written comments to

the Director, Product Development

Division, Federal Crop Insurance

Corporation, United States Department

of Agriculture, 9435 Holmes Road,

Kansas City, MO 64131. A copy of each

response will be available for public

inspection and copying from 7:00 a.m.

to 4:30 p.m., CDT, Monday through

Friday, except holidays, at the above

address.

FOR FURTHER INFORMATION CONTACT:

Louise Narber, Insurance Management

Specialist, Research and Development,

Product Development Division, Federal

Crop Insurance Corporation, United

States Department of Agriculture, 9435

Holmes Road, Kansas City, MO 64131,

telephone (816) 926–7730.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

This rule has been determined to be

economically significant for the

purposes of Executive Order 12866 and,

therefore, has been reviewed by the

Office of Management and Budget

(OMB).

This action amends FCIC’s regulations

in accordance with the 1998 Research

Act. This rule is being published on an

emergency basis so that affected

producers have the opportunity to make

timely decisions regarding their

insurance plans for the 1999 crop year

for crops with sales closing dates

subsequent to the enactment of the 1998

Research Act. The 1998 Research Act

was signed by the President on June 23,

1998. The first sales closing date

subsequent to the date of signing is July

31, 1998, for raisins in California. This

emergency situation makes timely

compliance with sections 6 (3)(B)(ii)

and (3)(C) of Executive Order 12866

impractical due to the short time to

make this rule effective prior to that

sales closing date. FCIC will complete

the required cost-benefit analysis within

90 days of the publication of this rule

in the Federal Register and will make

such analysis available to the public.

Small Business Regulatory Enforcement

Fairness Act of 1996 (Pub. L. 104–121,

5 U.S.C. Secs. 801–808)

This rule has been designated by the

Office of Information and Regulatory

Affairs, OMB, as a major rule under the

Small Business Regulatory Enforcement

Fairness Act of 1996 (Small Business

Act). However, section 808 of the Small

Business Act exempts a rule from the 60

day delay in effectiveness of a rule

where an agency for good cause finds

that notice and public procedure are

impracticable, unnecessary, or contrary

to the public interest. The Administrator

of the Risk Management Agency (RMA)

has determined that there is good cause

for making this rule effective less than

60 days after submission of the rule to

each House of Congress and to the

Comptroller General because a delay

would be contrary to the public interest.

There are producers affected by this

rule that must make critical risk

management decisions and the deadline

for the first 1999 crop year decisions is

less than 60 days from the July 1, 1998,

effective date of the 1998 Research Act.

A delay in the effective date of this rule

will create instability and inequity

within the program as producers

attempt to determine whether they are

affected and it will create separate

classes of producers who are subjected

to the increased administrative fees and

those who are not.

Further, RMA was required to revise

the Standard Reinsurance Agreement

before the July 1, 1998, start of the 1999

reinsurance year to implement the

provisions of the 1998 Research Act. If

this rule is delayed, it will create

administrative problems for the 1999

reinsurance year because the reinsured

companies will be subject to the

provisions of the 1998 Research Act but

some of their insureds will not.

Paperwork Reduction Act of 1995

Under the provisions of the

Paperwork Reduction Act of 1995 (44

U.S.C. chapter 35), the collections of

information for this rule have been

previously approved by the Office of

Management and Budget (OMB) under

control number 0563–0053 through

October 31, 2000. The amendments set

forth in this rule do not revise the

content or alter the frequency of

reporting for any of the forms or

information collections cleared under

the above-referenced docket.

Unfunded Mandates Reform Act of

1995

Title II of the Unfunded Mandates

Reform Act of 1995 (UMRA), Public

Law 104–4, establishes requirements for

Federal agencies to assess the effects of

their regulatory actions on State, local,

and tribal governments and the private

sector. This rule contains no Federal

mandates (under the regulatory

provisions of title II of UMRA) for State,

local, and tribal governments or the