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

26783

Vol. 66, No. 94

Tuesday, May 15, 2001

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1260

[No. LS–98–005]

Amendment to the Beef Promotion and

Research Rules and Regulations

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Final rule.

SUMMARY: This final rule will amend the

Beef Promotion and Research Rules and

Regulations (Rules and Regulations)

issued under the Beef Promotion and

Research Act of 1985 (Act), to clarify

requirements for documenting cattle

sales transactions for which no

assessments are due. This amendment

specifically requires the timely filing of

Statement of Certification of NonProducer Status forms to obtain

exemption from assessment. Based upon

comments received, this final rule

reflects changes made to the

amendments as proposed.

EFFECTIVE DATE: July 16, 2001.

FOR FURTHER INFORMATION CONTACT:

Ralph L. Tapp, Chief; Marketing

Programs Branch, Room 2627–S;

Livestock and Seed Program;

Agricultural Marketing Service, USDA;

STOP 0251; 1400 Independence

Avenue, SW.; Washington, DC 20250–

0251. Telephone number 202/720–1115.

SUPPLEMENTARY INFORMATION:

Executive Orders 12866 and 12988; the

Regulatory Flexibility Act; and the

Paperwork Reduction Act

This final rule has been reviewed

under Executive Order 12866. The rule

has been determined to be not

significant for the purposes of Executive

Order 12866 and, therefore, has not

been reviewed by the Office of

Management and Budget.

This final rule has been reviewed

under Executive Order 12988, Civil

Justice Reform. It is not intended to

have a retroactive effect. Section 11 of

the Act (7 U.S.C. 2910) 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.

Pursuant to requirements set forth in

the Regulatory Flexibility Act (RFA) (5

U.S.C. 601 et seq.), AMS has considered

the economic impact of this final rule

on 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. The Agricultural

Marketing Service (AMS) has

determined that this final rule will not

have a significant economic impact on

a substantial number of small business

entities.

In the January 26, 2001, issue of

‘‘Cattle,’’ the Department of

Agriculture’s (Department) National

Agricultural Statistics Service estimates

that in 2000 there were 1.1 million

cattle operations in the United States.

The majority of these operations subject

to the Beef Promotion and Research

Order (Order), 7 U.S.C. 1260.101 et seq.,

are considered small businesses under

the criteria established by the Small

Business Administration.

This final rule imposes no new

burden on the industry as it merely

clarifies the timing for filing of the

Statement of Certification of NonProducer Status forms when no

assessment is due on cattle sales

transactions. The regulations provide for

certification of non-producer status for

certain transactions. This action

specifies the time of filing of the

Statement of Certification of NonProducer Status forms in order to obtain

an exemption from paying assessments.

In compliance with the Office of

Management and Budget (OMB)

regulations [5 CFR Part 1320] which

implements the Paperwork Reduction

Act [44 U.S.C. 3501 et seq.], the

information collection requirements

contained in this final rule have been

previously approved by OMB and were

assigned OMB control number 0581–

0093.

Background

The Act authorizes the establishment

of a national beef promotion and

research program. The Order and the

Rules and Regulations govern the

administration of the program. The

program is administered by the

Cattlemen’s Beef Promotion and

Research Board (Board) that is

composed of 110 cattle producers and

importers. The program is funded by a

$1-per-head assessment on producer

marketings of cattle in the United States,

cattle imported into the United States,

and an equivalent amount on imported

beef and beef products. In 45 States,

Qualified State Beef Councils (QSBC)

collect the assessments remitted under

the program. QSBCs retain up to half of

the assessments they collect for Statedirected programs and remit the

remainder to the Board. The Board

receives all producer assessments in five

States with relatively small cattle

numbers that do not have QSBCs and all

assessments on imported cattle, beef,

and beef products.

The domestic assessment, due each

time cattle are sold by a producer, is

collected by the buyer or ‘‘collecting

person’’ for remittance to the Board or

QSBC. The term ‘‘producer’’ is defined

in the Order as follows: ‘‘Producer

means any person who owns or acquires

ownership of cattle; provided, however,

that a person shall not be considered a

producer within the meaning of this

subpart if (a) the person’s only share in

the proceeds of a sale of cattle or beef

is a sales commission, handling fee, or

other service fee; or (b) the person (1)

acquired ownership of cattle to facilitate

the transfer of ownership of such cattle

from the seller to a third party, (2)

resold such cattle no later than 10 days

from the date on which the person

acquired ownership, and (3) certified, as

required by regulations prescribed by

the Board and approved by the

Secretary, that the requirements of this

provision have been satisfied.’’ 7 CFR

1260.116.

When a person who is not a producer,

under the above definition, sells cattle

within 10 days of the date the person

purchased the cattle, the collecting

person is not required to collect the $1

assessment from that person (seller), if

the seller provides the collecting person

with a Statement of Certification of NonProducer Status on a form approved by

the Board and the Secretary. Although,

26784 Federal Register / Vol. 66, No. 94 / Tuesday, May 15, 2001 / Rules and Regulations

the majority of non-producers provide

collecting persons with a Statement of

Certification of Non-Producer Status ‘‘at

the time of sale,’’ the Rules and

Regulations do not specify when the

Statement of Certification of NonProducer Status form is due. Board

audits of collecting persons’ accounting

records have revealed transactions in

which neither the $1 assessment, nor

the Statement of Certification of NonProducer Status required in lieu of the

assessment, was obtained from the seller

of the cattle by the collecting person for

the transaction.

For the purpose of making it clear that

the Statement of Certification of NonProducer Status form must be filed with

the collecting person in a timely

manner, it was proposed that

§ 1260.314(b) of the Rules and

Regulations be amended to read as

follows: ‘‘(b) Each person seeking nonproducer status pursuant to § 1260.116

of this part shall provide to the

collecting person on a form approved by

the Board and the Secretary a Statement

of Certification of Non-Producer Status

at the time the collecting person makes

payment to the seller of cattle, in lieu of

the assessment that would otherwise be

due. If the collecting person is a brand

inspector, as provided for in § 1260.311,

the seller of cattle must provide to the

brand inspector a Statement of

Certification of Non-Producer Status at

the time the physical brand inspection

is completed in lieu of the assessment

that would otherwise be due.’’

On August 28, 1998, AMS published

in the Federal Register (63 FR 45971)

for public comment a proposed rule

providing for the above amendment to

§ 1260.314(b) of the Rules and

Regulations.

The Department received two

comments concerning the proposed

rule. A summary of the comments and

the Department’s responses are set forth

below.

The first commenter urged the

Department to withdraw the proposed

revisions to the timely filing of

Statements of Certification of NonProducer Status forms. The commenter

asserted that the proposed rule lacks

merit because the Department and the

Board have failed to demonstrate any

real need for the revisions to the filing

of Statements of Certification of NonProducer Status.

The Department does not agree with

the commenter’s assertion. The

revisions to the Rules and Regulations

are necessary to clarify that

documentation of non-producer status is

required in conjunction with the

transactions. Board audits have revealed

that some collecting persons believe the

current language permits documentation

to be developed months or years after

the transactions occurred. The revisions

in this final rule are needed to clarify

the Rules and Regulations and to ensure

compliance with them.

The commenter also asserted that the

revisions to the timely filing of

Statements of Certification on NonProducer Status forms could result in

confusion and enforcement problems for

the marketing sector. The Department

believes that the revisions to § 1260.314

in this final rule will not result in any

confusion and enforcement problems for

the marketing sector. In fact, as

discussed further below, the revisions

clarify when the Statement of

Certification of Non-Producer Status is

to be filed.

The commenter stated that groups

representing ‘‘collecting persons’’ were

not consulted prior to development and

publication of the proposed rule.

The proposed rule was promulgated

in accordance with the provisions of the

Administrative Procedure Act, and all

members of the public were given a 60-

day period to submit comments.

The commenter further stated that the

Board ‘‘needs to address the real

problems and issues of the beef

checkoff.’’ The commenter did not give

any further explanation for what was

meant by this statement.

Finally, the commenter objected to

the proposed requirement that the

Statement of Certification of NonProducer Status be filed at the time

payment is made to the seller. The

commenter stated that in many

transactions the seller is not physically

present when payment is made by

auction markets, dealers, order buyers,

feedlots, and packers. The commenter

suggested that the final rule take into

account current marketing practices,

including mailing delays that would

prevent filing of the Statement of

Certification of Non-Producer Status

until several days after payment is

made.

The Department believes that the

commenter’s suggestion has merit.

Accordingly, § 1260.314 is revised in

this final rule to specify that if the seller

is not physically present during a cattle

sales transaction in which the seller

claims non-producer status, such seller

shall deliver to the collecting person an

original Statement of Certification of

Non-Producer Status within 10 business

days of the date the collecting person

makes payment to the seller of the

cattle.

The second commenter supported the

proposed revisions to the Rules and

Regulations, and suggested adding

language to § 1260.314 to reflect

procedures used in several brand

inspected States that do not require

Statement of Certification of NonProducer Status forms from those

reselling cattle within 10 days of

purchase.

The Department agrees with the

commenter’s suggestion. Several brand

inspected States require a brand

inspection certificate which shows that

the assessment has been deducted less

than 10 days prior to resale. Since brand

inspection certificates provide

documentation acceptable to the Board

and the Department that the assessment

has been paid less than 10 days prior to

resale, it serves as proof of non-producer

status under § 1260.314. Consequently,

a non-producer status form is not

required in these transactions. Section

1260.314 has been revised accordingly

in this final rule.

List of Subjects in 7 CFR Part 1260

Advertising, Agricultural research,

Imports, Marketing agreements, Meat

and meat products, Reporting and

recordkeeping requirements.

For the reasons set forth in the

preamble 7 CFR part 1260 is amended

as follows:

PART 1260—BEEF PROMOTION AND

RESEARCH

1. The authority citation of part 1260

continues to read as follows:

Authority: 7 U.S.C. 2901 et seq.

2. Section 1260.314 is amended by

redesignating paragraph (c) as paragraph

(e), revising paragraph (b), and adding

two new paragraphs (c) and (d) to read

as follows:

§ 1260.314 Certification of non-producer

status for certain transactions.

* * * * *

(b) Each person seeking non-producer

status pursuant to § 1260.116 shall

provide the collecting person, on a form

approved by the Board and the

Secretary, with a Statement of

Certification of Non-Producer Status at

the time the collecting person makes

payment to the seller of cattle, in lieu of

the assessment that would otherwise be

due, except as provided for in

paragraphs (c) and (d) of this section.

(c) When the seller of cattle is not

physically present during a sales

transaction in which the seller claims

non-producer status, such seller shall

deliver to the collecting person an

original Statement of Certification of

Non-Producer Status within 10 business

days of the date the collecting person

makes payment to the seller of the

cattle.

Federal Register / Vol. 66, No. 94 / Tuesday, May 15, 2001 / Rules and Regulations 26785

(d) If the collecting person is a brand

inspector, as provided for in § 1260.311,

the seller of cattle claiming nonproducer status shall provide to the

brand inspector at the time the physical

brand inspection is completed, in lieu of

the assessment that would otherwise be

due, either: a Statement of Certification

of Non-Producer Status or a valid brand

inspection certificate which shows

collection of the assessment by a brand

inspector in a transaction which took

place not more than 10 days prior to the

sale of the cattle.

* * * * *

Dated: May 9, 2001.

Kenneth C. Clayton,

Acting Administrator, Agricultural Marketing

Service.

[FR Doc. 01–12141 Filed 5–14–01; 8:45 am]

BILLING CODE 3410–02–P

FARM CREDIT ADMINISTRATION

12 CFR Parts 611 and 615

RIN 3052–AB91

Organization; Funding and Fiscal

Affairs, Loan Policies and Operations,

and Funding Operations; Stock

Issuances; Effective Date

AGENCY: Farm Credit Administration.

ACTION: Notice of effective date.

SUMMARY: The Farm Credit

Administration (FCA) published a final

rule under parts 611 and 615 on March

28, 2001 (66 FR 16841). In this final

rule, we amended our regulations to

allow Farm Credit System (System)

service corporations to sell stock to nonSystem entities, provide adequate

disclosures to investors in service

corporations, and allow System

institutions to issue unlimited amounts

of certain classes of equities. The

purpose of our amendments is to

provide System institutions additional

opportunities to fulfill their borrowers’

needs through service corporations and

more efficient issuance of equities

related to earnings distributions and

transfers of capital. In accordance with

12 U.S.C. 2252, the effective date of the

final rule is 30 days from the date of

publication in the Federal Register

during which either or both Houses of

Congress are in session. Based on the

records of the sessions of Congress, the

effective date of the regulations is May

14, 2001.

EFFECTIVE DATE: The regulation

amending 12 CFR parts 611 and 615

published on March 28, 2001 (66 FR

16841) is effective May 14, 2001.

FOR FURTHER INFORMATION CONTACT: Dale

Aultman, Policy Analyst, Office of

Policy and Analysis, Farm Credit

Administration, McLean, VA 22102–

5090, (703) 883–4498; or Howard Rubin,

Senior Attorney, Office of General

Counsel, Farm Credit Administration,

McLean, VA 22102–5090, (703) 883–

4020, TDD (703) 883–4444.

(12 U.S.C. 2252(a)(9) and (10))

Dated: May 9, 2001.

Jeanette C. Brinkley,

Acting Secretary, Farm Credit Administration

Board.

[FR Doc. 01–12152 Filed 5–14–01; 8:45 am]

BILLING CODE 6705–01–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. 2001–NM–122–AD; Amendment

39–12227; AD 2001–10–02]

RIN 2120–AA64

Airworthiness Directives; Empresa

Brasileira de Aeronautica, S.A.

(EMBRAER) Model EMB–135 and –145

Series Airplanes

AGENCY: Federal Aviation

Administration, DOT.

ACTION: Final rule; request for

comments.

SUMMARY: This amendment adopts a

new airworthiness directive (AD) that is

applicable to certain EMBRAER Model

EMB–135 and –145 series airplanes.

This action requires applying torque to

certain tubing fittings of the fire

extinguishing systems of various areas

of the airplane, and applying torque

paint to the fittings. This action is

necessary to ensure that certain tubing

fittings of the fire extinguishing systems

are properly torqued. Improperly

torqued tubing fittings of the fire

extinguishing systems of the baggage

compartment, auxiliary power units

(APU), and engines, if not corrected,

could become loose and cause the fire

extinguisher to inadvertently discharge.

Inadvertent discharge of a fire

extinguisher could result in reduced fire

protection or the inability to extinguish

a fire in the baggage compartment, APU,

or engine. This action is intended to

address the identified unsafe condition.

DATES: Effective May 30, 2001.

The incorporation by reference of

certain publications listed in the

regulations is approved by the Director

of the Federal Register as of May 30,

2001.

Comments for inclusion in the Rules

Docket must be received on or before

June 14, 2001.

ADDRESSES: Submit comments in

triplicate to the Federal Aviation

Administration (FAA), Transport

Airplane Directorate, ANM–114,

Attention: Rules Docket No. 2001–NM–

122–AD, 1601 Lind Avenue, SW.,

Renton, Washington 98055–4056.

Comments may be inspected at this

location between 9 a.m. and 3 p.m.,

Monday through Friday, except Federal

holidays. Comments may be submitted

via fax to (425) 227–1232. Comments

may also be sent via the Internet using

the following address: 9-anmiarcomment@faa.gov. Comments sent

via the Internet must contain ‘‘Docket

No. 2001–NM–122–AD’’ in the subject

line and need not be submitted in

triplicate. Comments sent via fax or the

Internet as attached electronic files must

be formatted in Microsoft Word 97 for

Windows or ASCII text.

The service information referenced in

this AD may be obtained from Empresa

Brasileira de Aeronautica S.A.

(EMBRAER), P.O. Box 343—CEP 12.225,

Sao Jose dos Campos—SP, Brazil. This

information may be examined at the

FAA, Transport Airplane Directorate,

1601 Lind Avenue, SW., Renton,

Washington; or at the FAA, Atlanta

Aircraft Certification Office, One Crown

Center, 1895 Phoenix Boulevard, suite

450, Atlanta, Georgia; or at the Office of

the Federal Register, 800 North Capitol

Street, NW., suite 700, Washington, DC.

FOR FURTHER INFORMATION CONTACT:

Linda Haynes, Aerospace Engineer,

Airframe and Propulsion Branch, ACE–

117A, FAA, Atlanta Aircraft

Certification Office, One Crown Center,

1895 Phoenix Boulevard, suite 450,

Atlanta, Georgia 30349; telephone (770)

703–6091; fax (770) 703–6097.

SUPPLEMENTARY INFORMATION: The

Departmento de Aviacao Civil (DAC),

which is the airworthiness authority for

Brazil, recently notified the FAA that an

unsafe condition may exist on certain

EMBRAER Model EMB–135 and –145

series airplanes. The DAC advises that

it has received reports of looseness of

some tubing fittings of the fire

extinguishing systems of the engines

located in the pylon inner area. In one

event during maintenance, the fire

extinguisher discharged into the pylon

area. Investigation revealed the

possibility that those fittings had been

undertorqued during production of the

airplanes. This possibility also exists for

all other fittings at the fire extinguishing

systems.

Improperly torqued tubing fittings of

the fire extinguishing systems of the