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

28359

Vol. 66, No. 100

Wednesday, May 23, 2001

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 29

[Docket No. TB–00–04]

RIN 0581–AB86

Tobacco Fees and Charges for

Permissive Inspection and

Certification; Fee Revisions

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Interim final rule with request

for comments.

SUMMARY: This rule revises the fee

structure and increases fees for domestic

permissive inspection and grading of

tobacco. Under the Tobacco Inspection

Act, fees collected must cover, as nearly

as practicable, the Department’s costs

for performing the inspection service,

including administrative and

supervisory costs. The fee for

permissive inspection of tobacco at

receiving points will be based upon

poundage and will be set at the same

rate as for mandatory inspection at

auction, which is $.01 per pound. The

fee for permissive inspection at redrying

plants will continue to be on an hourly

basis and will be increased by about 46

percent. These revisions do not affect

the fee for the mandatory inspection of

tobacco sold at designated auction

markets or permissive export

certification.

DATES: Effective May 24, 2001;

comments received by June 22, 2001

will be considered prior to issuance of

a final rule.

ADDRESSES: Send comments to John P.

Duncan III, Deputy Administrator,

Tobacco Programs, Agricultural

Marketing Service (AMS), U.S.

Department of Agriculture (USDA),

Room 502 Annex Building, P.O. Box

96456, Washington, DC 20090–6456; or

Fax: (202) 205–0235. Comments will be

made available for public inspection at

this location during regular business

hours.

FOR FURTHER INFORMATION CONTACT: John

P. Duncan III, Deputy Administrator,

Tobacco Programs, AMS, USDA, Stop

0280, Room 502 Annex Building, P.O.

Box 96456, Washington, D.C. 20090–

6456; telephone: (202) 205–0567, Fax:

(202) 205–0235.

SUPPLEMENTARY INFORMATION:

Permissive inspections, as authorized

under the Tobacco Inspection Act (7

U.S.C. 511–511q), are made available to

interested parties on a fee basis

sufficient to cover the costs incurred by

the Department for the inspection and

certification, and other services,

including administrative and

supervisory costs. This rule revises the

fee structure and increase fees for

domestic permissive inspection and

grading of tobacco.

The AMS conducts reviews of the

financial status of this program to

determine whether a fee is sufficient. As

a result of this review, it has been

determined that, at the current fees,

insufficient revenue is generated to meet

the costs of the program and to maintain

an adequate reserve fund. The current

hourly fee schedule for domestic

permissive inspection has been in effect

since October 1, 1991, as published in

the Federal Register (56 FR 41921) on

August 26, 1991. The major factors

causing the need for additional funds

are increases in Government salaries

and benefits, travel allowances, and

overall administrative costs since 1991.

The crop-year 2000 revenues for

permissive inspection and certification

services at redrying plants were

$213,000 and obligations were

$300,000. Without a fee increase, cropyear 2001 and crop-year 2002 revenues

for permissive inspection and

certification services at redrying plants

are projected at about $213,000 per year

and obligations are projected at about

$300,000 per year, and with a fee

increase, crop-year 2001 and crop-year

2002 revenues are projected at $312,000

and obligations are projected at

$300,000. This interim final rule will

increase the hourly rates charged to

users of domestic permissive inspection

and certification services performed at

redrying plants by about 46 percent. The

AMS estimates that the increase in the

hourly rate will yield about an

additional $100,000 during crop-year

2001 and maintain an adequate reserve.

This rule also revises the fee structure

for permissive inspection and

certification at receiving points from an

hourly basis to a poundage basis at the

same rate as for mandatory inspection at

auction. A poundage-basis structure is

more appropriate for the permissive

inspection of tobacco at receiving

points. Although it is anticipated that

60–75 percent of the 2001 tobacco crop

will be sold by direct contract, and that

some of this will be permissively

inspected at receiving points, it would

be difficult to predict the number of

pounds for which permissive inspection

will be requested and the resulting

revenues. However, based upon the

experience of the AMS with mandatory

inspection at auction, a fee of $.01 per

pound is estimated to cover costs of

$841,115 and an adequate reserve

(assuming 120 million pounds of

contract tobacco will be inspected in

crop-year 2001 with revenue of

$1,200,000). The costs to entities would

be proportional to their use of the

service so that costs are shared equitably

by all interested parties.

In the past, virtually all quota tobacco

was marketed through the auction

system under the mandatory inspection

program. Mandatory inspection, as

required under the Act, takes

precedence over other services and fees

are assessed based on the pounds

graded. AMS has maintained a core

grading staff for mandatory inspection

and utilized personnel from this staff to

provide permissive grading. Other than

recertification services performed at

redrying plants, only a small amount of

tobacco was inspected under the

permissive grading program.

Consequently, overhead costs and a

reserve fund for permissive inspection

were covered by the mandatory

inspection fees.

However, tobacco marketing practices

are changing. During the 2000 marketing

year, tobacco companies implemented

programs with producers to procure

tobacco through direct contracting.

Permissive grading services were

requested for tobacco beginning in 2000.

Tobacco companies also have indicated

they will request increased permissive

grading services for tobacco purchased

directly from producers through

contractual sales during the 2001

marketing year. It is anticipated that 60–

28360 Federal Register / Vol. 66, No. 100 / Wednesday, May 23, 2001 / Rules and Regulations

75 percent of the 2001 tobacco crop will

be sold by contractual sales. With the

projected increase in permissive grading

requests from contractual tobacco sales,

it is necessary for the permissive

grading program to be self-supporting.

The procedures for grading tobacco and

the associated costs are virtually the

same at both auction markets and

receiving points. The National Advisory

Committee for Tobacco Inspection

Services, which is mandated by the

Omnibus Budget Reconciliation Act of

1981, met on March 6, 2001, and

unanimously recommended that the fee

structure and rates for permissive

inspection at receiving points be the

same as for mandatory inspection at

auction. Accordingly, the fee structure

for permissive inspection at receiving

points will be based on poundage and

will be set at the same level as for

mandatory inspection, which is $.01 per

pound.

It is also necessary to increase the

hourly rates for permissive inspection

and to specify that the hourly rates are

for permissive inspection at redrying

plants. In the past, virtually all

permissive inspection was provided at

redrying plants for grower cooperatives.

These grading services involve

confirming the grade previously

assigned to tobacco sold on the auction

markets to maintain blend consistency

for the grower cooperatives.

Accordingly, the hourly fee structure

will be retained. However, as necessary,

the hourly rate will be increased to

recover costs. The base hourly rate of

$32.40 is raised to $47.40, the overtime

rate of $38.70 is raised to $53.70, and

Sunday and holiday rate of $48.45 is

raised to $64.45. These fees would cover

expenses and maintain a reserve that

would meet any reasonable

contingency. The Department is

required by law to fix and collect fees

and charges to cover the Department s

cost in operating the permissive tobacco

inspection program.

Finally, although the provisions are

seldom used, the same changes in

hourly rates are made for the inspection

and certification of nonquota tobacco

produced and marketed in a quota area,

because this is a similar kind of

permissive inspection.

Further, it is hereby found and

determined upon good cause that it is

impracticable, unnecessary, and

contrary to the public interest to give

preliminary notice prior to putting this

rule into effect and that good cause

exists for not postponing the effective

date of this rule until 30 days after

publication in the Federal Register

because: (1) The tobacco marketing

season will begin in June and this action

is needed, as soon as possible, so as to

treat all types of tobacco on an equal

basis, (2) the National Advisory

Committee for Tobacco Inspection

Services unanimously recommended

that the fee structure and rates for

permissive inspection at receiving

points be the same as for mandatory

inspection at auction, and (3) this

interim final rule provides a 30-day

comment period, which is considered

appropriate in this action, and all

comments timely received will be

considered prior to the finalization of

this rule.

Executive Order 12866

This rule has been determined to be

not significant for purposes of Executive

Order 12866, and therefore, has not

been reviewed by the Office of

Management and Budget.

Regulatory Flexibility Act

Pursuant to the requirements set forth

in the Regulatory Flexibility Act (5

U.S.C. 601 et seq.), full consideration

has been given to the potential

economic impact upon small business.

Small agricultural producers have been

defined by the Small Business

Administration (13 CFR 121.201) as

those having annual receipts of less than

$500,000 and small agricultural service

firms are defined as those whose annual

receipts are less than $5,000,000. There

are about 300 tobacco warehouses and

about 90,000 producers and almost all

warehouses and producers may be

classified as small entities. The AMS

has determined that this action will not

have a significant economic impact on

a substantial number of small entities.

This rule revises the fee structure and

increases fees for domestic permissive

grading of tobacco. Under the Tobacco

Inspection Act of 1935, as amended (7

U.S.C. 511–511q), fees collected must

cover, as nearly as practicable, the

Department s cost for performing the

inspection service, including

administrative and supervisory costs.

These revisions do not affect the fee for

the mandatory inspection of tobacco

sold at designated auction markets or

permissive export certification.

The AMS conducts reviews of the

financial status of this program to

determine whether the fee is sufficient.

As a result of this review, it has been

determined that, at the current fees,

insufficient revenue is generated to meet

the costs of the program and to maintain

an adequate reserve fund. The major

factors causing the need for additional

funds are increases in Government

salaries and benefits, travel allowances,

and overall administrative costs since

1991. The crop-year 2000 revenues for

permissive inspection and certification

services at redrying plants were

$213,000 and obligations were

$300,000. Without a fee increase, cropyear 2001 and crop-year 2002 revenues

for permissive inspection and

certification services at redrying plants

are projected at about $213,000 per year

and obligations are projected at about

$300,000 per year, and with a fee

increase, crop-year 2001 and crop-year

2002 revenues are projected at $312,000

and obligations are projected at

$300,000. This interim final rule will

increase the hourly rates charged to

users of domestic permissive inspection

and certification services performed at

redrying plants by about 46 percent. The

AMS estimates that the increase in the

hourly rate will yield about an

additional $100,000 during crop-year

2001 and maintain an adequate reserve.

This rule also revises the fee structure

for permissive inspection and

certification at receiving points from an

hourly basis to a poundage basis at the

same rate as for mandatory inspection at

auction. The procedures for grading

tobacco and associated costs are

virtually the same at both auction

markets and receiving points. The

National Advisory Committee for

Tobacco Inspection Services, which is

mandated by the Omnibus

Reconciliation Act of 1981, met on

March 6, 2001, and unanimously

recommended that the fee structure and

rates for permissive inspection at

receiving points be the same as for

mandatory inspection at auction.

Although it is anticipated that 60–75

percent of the 2001 tobacco crop will be

sold by direct contract, and that some of

this will be permissively inspected at

receiving points, it would be difficult to

predict the number of pounds for which

permissive inspection will be requested

and the resulting revenues. However,

based upon the experience of the AMS

with mandatory inspection at auction, a

fee of $.01 per pound is estimated to

cover the costs of $841,115 and an

adequate reserve (assuming 120 million

pounds of contract tobacco will be

inspected in crop-year 2001 with the

revenue of $1,200,000). The costs to

entities would be proportional to their

use of the service so that costs are

shared equitably by all interested

parties.

Finally, although the provisions are

seldom used, the same changes in

hourly rates are made for the inspection

and certification of nonquota tobacco

produced and marketed in a quota area,

because this is a similar kind of

permissive inspection.

These fees represent the minimum

level needed to cover costs for the 2001

Federal Register / Vol. 66, No. 100 / Wednesday, May 23, 2001 / Rules and Regulations 28361

crop-year. In the future, AMS will

continue to review the program to

ensure that fees are adequate.

Accordingly, we believe that the impact

of this rule would not be significant on

the users of the inspection and

certification services.

Civil Justice Reform

This interim final 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.

Lists of Subjects in 7 CFR Part 29

Administrative practice and

procedure, Advisory committees,

Government publications, Imports,

Pesticides and pests, Reporting and

recordkeeping requirements, Tobacco.

For the reasons set forth in the

preamble, 7 CFR part 29 is amended as

follows:

PART 29—TOBACCO INSPECTION

Subpart B—Regulations

1. The authority citation for Part 29,

subpart B continues to read as follows:

Authority: 7 U.S.C. 511m and 511r.

2. In § 29.123, paragraph (b) is revised

to read as follows:

§ 29.123 Fees and charges.

* * * * *

(b) Domestic permissive inspection

and certification. (1) Fees and charges

for inspection at redrying plants shall

comprise the cost of salaries, travel, per

diem, and related expenses to cover the

cost of performing the service. Fees

shall be for the actual time required to

render the service calculated to the

nearest 30-minute period. The hourly

rate shall be $47.40 per hour. The

overtime rate for service performed

outside the inspector’s regularly

scheduled tour of duty shall be $53.70

per hour. The rate of $64.45 per hour

shall be charged for work performed on

Sundays and holidays. These same fees

shall be applicable for hogshead, bale,

cases or sample inspections. (2) Fees

and charges for inspection of tobacco

performed at receiving points is $.01 per

pound.

Subpart F—Policy Statement and

Regulations Governing the

Identification and Certification of

Nonquota Tobacco Produced and

Marketed in a Quota Area

3. The authority citation for subpart F

continues to read as follows:

Authority: Pub. L. 97–98. 95 Stat. 1266, as

amended (7 U.S.C. 1314f).

§ 29.9251 Fees and charges.

4. In § 29.9251 the words ‘‘$32.40’’,

‘‘$38.70’’ and ‘‘$48.45’’ are removed and

the words ‘‘$47.40’’ ‘‘$53.70’’ and

‘‘$64.45’’ are added in their place,

respectively.

Dated: May 17, 2001.

Kenneth C. Clayton,

Acting Administrator, Agricultural Marketing

Service.

[FR Doc. 01–12935 Filed 5–22–01; 8:45 am]

BILLING CODE 3410–02–P

FARM CREDIT ADMINISTRATION

12 CFR Part 650

RIN 3052–AB56

Federal Agricultural Mortgage

Corporation; Risk-Based Capital

Requirements; Effective Date

AGENCY: Farm Credit Administration.

ACTION: Notice of effective date.

SUMMARY: The Farm Credit

Administration (FCA) published a final

rule under part 650 on April 12, 2001

(66 FR 19048). In this final rule, we

amended our regulations, through the

Office of Secondary Market Oversight

(OSMO), by establishing risk-based

capital regulations for the Federal

Agricultural Mortgage Corporation

(Farmer Mac). The final rule in part 650

sets forth the risk-based capital

regulations for Farmer Mac, including

definitions, methods, parameters and

guidelines for developing and

implementing the risk-based capital

stress test; specifies capital calculation,

reporting, and compliance

requirements; and delineates our

monitoring, examination, supervisory,

and enforcement activities with respect

to Farmer Mac’s compliance with the

rule’s risk-based capital requirements;

and prescribes certain requirements for

business and capital planning. 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 23, 2001.

EFFECTIVE DATE: The regulation

amending 12 CFR part 650 published on

April 12, 2001 (66 FR 19048) is effective

May 23, 2001.

FOR FURTHER INFORMATION CONTACT:

Carl A. Clinefelter, Director, Office of

Secondary Market Oversight, Farm

Credit Administration, McLean, VA

22102–5090, (703) 883–4280, TDD

(703) 883–4444, or

Dennis K. Carpenter, Senior Policy

Analyst, Office of Policy and

Analysis, Farm Credit Administration,

McLean, VA 22102–5090, (703) 883–

4498, TDD (703) 883–4444, or

Joy Strickland, Senior Counsel, 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 18, 2001.

Kelly Mikel Williams,

Secretary, Farm Credit Administration Board.

[FR Doc. 01–13071 Filed 5–22–01; 8:45 am]

BILLING CODE 6705–01–U

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. 2001–CE–08–AD; Amendment

39–12235; AD 2001–10–09]

RIN 2120–AA64

Airworthiness Directives; Honeywell

KC 225 Automatic FlightControl

Systems

AGENCY: Federal Aviation

Administration, DOT.

ACTION: Final rule; request for

comments.

SUMMARY: This amendment adopts a

new airworthiness directive (AD) that

applies to certain Honeywell KC 225

automatic flight control systems (AFCS)

that are installed on airplanes. This AD

requires you to inspect the KC 225

AFCS to determine the computer

modifications (Mods) that are

incorporated, deactivate any units with

only Mods 1 and/or 2 incorporated, and

fabricate and install an appropriate

placard if the unit is deactivated/

inoperative. The AD would provide, as

an alternative method of compliance,

the option of installing a unit that

incorporated MOD 3 or higher. This AD

is the result of several reports that the

AFCS is disconnecting without warning