2680 Federal Register / Vol. 60, No. 7 / Wednesday, January 11, 1995 / Rules and Regulations

commuting area are limited or

nonexistent;

(3) Placement opportunities within

the employee’s own or other Federal

agencies in the local commuting area are

limited or nonexistent; or

(4) If eligible for optional retirement,

the employee has not filed a retirement

application or otherwise indicated in

writing an intent to retire.

(c) A certification is to be addressed

to each individual eligible employee

and must be signed by an appropriate

agency official. A certification must

contain the expected date of reduction

in force, a statement that each factor in

paragraph (b) of this section has been

satisfied, and a description of Job

Training Partnership Act programs, the

Interagency Placement Program, and the

Reemployment Priority List.

(d) A certification may not be used to

satisfy any of the notice requirements

elsewhere in this subpart.

(e) An agency determination of

eligibility for certification may not be

appealed to OPM or the Merit Systems

Protection Board.

(f) An agency may also enroll eligible

employees in the Interagency Placement

Program and the Reemployment Priority

List up to 6 months in advance of a

reduction in force. For requirements and

criteria for these programs, see subparts

B and C of part 330 of this chapter.

[FR Doc. 95–643 Filed 1–10–95; 8:45 am]

BILLING CODE 6325–01–M

DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR Part 1425

RIN 0560–AD70

Cooperative Marketing Associations;

Eligibility Requirements for Price

Support

AGENCY: Commodity Credit Corporation,

USDA.

ACTION: Final rule.

SUMMARY: This final rule adopts,

without change, the proposed rule

published in the Federal Register at 59

FR 44947–44952 on August 31, 1994.

This rule amends the regulations

governing the participation of

cooperative marketing associations

(CMA) in Commodity Credit

Corporation (CCC) price support

programs to ensure: the equitable

treatment of CMA members and

individual producers; the Government

does not accept undue risk in providing

CMA price support program benefits;

and the efficient delivery of CMA price

support program benefits. This rule:

changes CMA bylaw requirements to

reflect current CMA organizational and

operational procedures; requires

approved cotton CMA retention of

services provided by servicing agent

banks; requires approved CMA

monitoring of payment they receive on

behalf of their members to ensure that

member payments do not exceed

payment limits; and makes other

administrative changes.

EFFECTIVE DATE: January 11, 1995.

FOR FURTHER INFORMATION CONTACT:

Richard M. Ackley, Chief, Cooperative

and Analysis Branch; Cotton, Grain, and

Rice Price Support Division,

Consolidated Farm Service Agency,

USDA, P.O. Box 2415, Washington, DC

20013–2415.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

This final rule has been determined to

be not significant for purposes of

Executive Order 12866 and, therefore,

has not been reviewed by Office of

Management and Budget (OMB).

Federal Assistance Program

The title and number of the Federal

Assistance Program, as found in the

Catalog of Federal Domestic Assistance,

to which this rule applies are

Commodity Loans and Purchases—

10.051.

Regulatory Flexibility Act

It has been determined that the

Regulatory Flexibility Act is not

applicable because CCC is not required

by 5 U.S.C. 553 or any other provision

of law to publish a notice of proposed

rulemaking with respect to the subject

matter of these determinations.

Environmental Evaluation

It has been determined by an

environmental evaluation that this

action will have no significant impact

on the quality of human environment.

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, into Federal

Register at 48 FR 29115 (June 24, 1983).

Executive Order 12778

This final rule has been reviewed

pursuant to Executive Order 12778. To

the extent State and local laws are in

conflict with these regulatory

provisions, it is the intent of CCC that

the terms of the regulations prevail.

Prior to any judicial action in a court of

competent jurisdiction, administrative

review under 7 CFR part 780 must be

exhausted.

Paperwork Reduction Act

Public reporting burden for all

collections is estimated to average from

1 to 2 hours per response, including

time for reviewing instructions,

searching existing data sources,

gathering and maintaining the data

needed, and competing and reviewing

the collection of information. The

information collections have previously

been cleared under the current

regulations by OMB, and assigned OMB

No. 0560–0040.

Comments

No comments were received during

the comment period which ended on

September 30, 1994.

List of Subjects in 7 CFR Part 1425

Cooperatives, Price support programs,

Reporting and recordkeeping

requirements.

Accordingly, 7 CFR part 1425 is

amended as follows:

PART 1425—COOPERATIVE

MARKETING ASSOCIATIONS

1. The authority citation for 7 CFR

part 1425 is revised to read as follows:

Authority: 7 U.S.C. 1421(a), 1441, 1444(a),

1446(d), and 1447; 15 U.S.C. 714b, 714c, and

714j.

2. Section 1425.3 is amended.

A. Revising paragraph (d),

B. Redesignating paragraphs (i) and (j)

as paragraphs (j) and (k) respectively,

C. Adding a new paragraph (i), and

D. Revising redesignated newly

redesignated paragraphs (j) and (k):

§ 1425.3 Definitions.

* * * * *

(d) Authorized commodity means

those commodities for which an

approved cooperative may apply for

price support, including barley, canola,

corn, cotton, flaxseed, honey, shorn

mohair, mustard seed, oats, rapeseed,

rice, rye, safflower, seed cotton, shorn

wool, sorghum, soybeans, sunflower

seed, and wheat.

* * * * *

(i) Participate in a Price Support

Program means the pledging, on behalf

of members, of an eligible commodity as

collateral for CCC price support loans,

entering into purchase agreements, and,

when applicable, obtaining loan

deficiency payments.

(j) Person means an individual, joint

stock company, corporation, estate or
Federal Register / Vol. 60, No. 7 / Wednesday, January 11, 1995 / Rules and Regulations 2681

trust, association, or other legal entity,

except that two or more entities shall be

combined as one person in accordance

with:

(1) The regulations found at part 1497

of this chapter for the purpose of

administering maximum payment

limitation provisions of the Food

Security Act of 1985;

(2) The regulations found at part 796

of this title for the purpose of

administering the provisions of the

Food Security Act of 1985 with respect

to the production of controlled

substances; and

(3) The regulations found at part 12 of

this title pertaining to the highly

erodible land and wetland provisions

(commonly know as ‘‘sodbuster and

swampbuster’’ provisions) of the Food

Security Act of 1985.

(k) Producer means a person who, as

owner, landlord, tenant, or

sharecropper, shares in the risk of

producing the crop, and is entitled to

share in the crops available for

marketing from the farm, or would have

shared had the crops been produced.

3. In § 1425.4, paragraphs (a), (b)(7),

and paragraph (c) introductory text are

revised and paragraphs (e) and (f) are

added to read as follows:

§ 1425.4 Approval.

(a) Application. In order for a

cooperative to participate in a price

support program with respect to the

1994 and subsequent crops of

authorized commodities, a cooperative

must submit an application for approval

with respect to such authorized

commodities to CCC.

(b) * * *

(7) A detailed description of the

method by which proceeds from a pool

of eligible commodities for which price

support is obtained will be distributed

as provided for in § 1425.18.

* * * * *

(c) Annual recertification. An

approved cooperative must submit, on

an annual basis, the following

information to CCC:

* * * * *

(e) Reapplication. Approved

cooperatives must submit revised

applications as required by this section

instead of an annual recertification

every 5 years, or more often if CCC

determines that such application is

necessary to determine if a cooperative

has implemented an organizational or

operational change that would affect

compliance with the provisions of this

part.

(f) Form CCC-Cotton G. Cooperative

marketing associations applying for

approval to participate in the price

support program for cotton shall execute

Form CCC-Cotton G, Cotton Cooperative

Loan Agreement, with CCC.

4. Section 1425.6 (b)(2) is revised to

read as follows:

§ 1425.6 Approved cooperatives.

* * * * *

(b) * * *

(2) Conditionally approved. (i) A

cooperative may be conditionally

approved if CCC determines that it has

substantially met all the requirements of

this part, and the failure to meet the

remaining requirements is due to

reasons beyond the control of the

cooperative and not due to the

cooperative’s negligence; and

(ii) Such cooperative must agree in

writing to meet all requirements for

approval set forth in this part within the

time period specified by CCC. When a

cooperative can only comply with the

regulations by amending its articles of

incorporation or bylaws at a

membership meeting, CCC may accept a

board of directors’ resolution agreeing to

recommend to the members at the next

meeting of the members the required

changes to the articles of incorporation

or bylaws as compliance with the

requirements for approval for purposes

of this section.

Board resolutions in which the

cooperative agrees to comply with other

provisions of this part may be accepted

by CCC as compliance with the

requirements for approval for purposes

of this section.

* * * * *

5. Section 1425.7 (a) is revised to read

as follows:

§ 1425.7 Suspension and termination of

approval.

(a) Suspension. An approved

cooperative may be suspended by CCC

from further participation in a price

support program if CCC determines that

the cooperative or a member

cooperative, as specified in § 1425.19:

(1) Has not operated in accordance

with the conditions specified in such

cooperative’s application for approval;

(2) Has not complied with applicable

regulations; or

(3) Has failed to correct deficiencies

noted during an administrative review

or an audit of the cooperative’s

operations with respect to a price

support program. Such suspension may

be lifted upon the receipt of documents

indicating that the cooperative has

complied with all requirements for

approval. If such documents are not

received within one year from the date

of the suspension, the cooperative’s

approval for participation in a price

support program shall be terminated.

* * * * *

6. In § 1425.8, paragraphs (b)(2) and

(e) are revised to read as follows:

§ 1425.8 Ownership and control.

* * * * *

(b) * * *

(2) The allocated equity of any active

member that has acquired equity as a

result of a loan from the cooperative

unless such member is obligated to

repay the loan within one year.

* * * * *

(e) Approved plan. An applicant or an

approved cooperative not under the

ownership or control, or both, of its

active members, may be approved by

CCC to participate in a price support

program if the cooperative is able to

establish that, by retiring the equity of

its inactive members or by obtaining

new members, the cooperative can vest

ownership and control in its active

members, as required by this section, by

a date specified by CCC.

7. Section 1425.9 is amended by

revising the introductory text and

paragraphs (d) and (g) to read as follows:

§ 1425.9 Charter and bylaw provisions.

The articles of incorporation, articles

of association, or the bylaws of the

cooperative shall comply with each of

the following requirements:

* * * * *

(d) Nominations. (1) Nominations for

election of delegates and directors shall

be made by members.

(2) Nominations for officers shall be

made by elected directors or by

members when nomination by members

is authorized in the cooperative’s

articles of incorporation or bylaws.

(3) Nominations may be made by

balloting, nominating committee,

petition of members, or from the floor,

provided that nominations from the

floor shall be requested in addition to

nominations made by a nominating

committee or by petition.

* * * * *

(g) Proxy. (1) Except as provided in

paragraph (g)(2) of this section, voting

by proxy shall be prohibited.

(2) Voting by proxy may be permitted

if a cooperative:

(i) Determines that it is necessary to

amend the cooperative’s articles of

incorporation, articles of association, or

bylaws, and

(ii) Establishes to the satisfaction of

CCC that the law of the State in which

the cooperative is incorporated permits

voting by proxy, but does not permit

members to vote by mail, with respect

to such issue.

* * * * *
2682 Federal Register / Vol. 60, No. 7 / Wednesday, January 11, 1995 / Rules and Regulations

8. In § 1425.10, paragraph (b)(3) is

revised to read as follows:

§ 1425.10 Financial condition.

* * * * *

(b) * * *

(3)(i) The net worth of the

cooperative. The cooperative shall be

considered to have a sufficient net

worth if such net worth is equal to the

product of an amount per unit for a

commodity (as set forth in table 1)

multiplied by the total number of such

units of commodity for which the

cooperative is approved, or requesting

approval, to participate in price support

and handled by the cooperative during

the preceding marketing year, or, if the

cooperative is in its first full marketing

year of operations, the estimated

quantity of such commodity that it will

handle during such year.

(ii) (A) If the amount of the net worth

of the cooperative is between 34 and 99

percent of the amount computed in

accordance with paragraph (b)(3)(i) of

this section and the cooperative is

determined by CCC to be otherwise

financially sound, CCC may determine

that such cooperative meets the

requirements of this section. Such a

determination by CCC may be made if:

(1) The board of directors of the

cooperative agrees to make a capital

retain in the amount set forth in table 2

with respect to each unit of the

commodity delivered to the cooperative

until the net worth of the cooperative is

at least equal to the amount computed

in accordance with paragraph (b)(3)(i) of

this section, and

(2) The cooperative agrees to deduct

from pool proceeds the full amount of

the estimated expenses of handling the

commodities received by the

cooperative.

(B) The failure to carry out such

agreements shall be grounds for

suspending a cooperative’s approval.

TABLE 1

Commodity Unit Amount

per unit

Barley ................ Bushel ............... 0.13

Canola ............... Hundredweight .. 0.62

Corn .................. Bushel ............... 0.13

Cotton ................ Bale ................... 6.40

Flaxseed ............ Hundredweight .. 0.62

Honey ................ Hundredweight .. 1.90

Mustard Seed .... Hundredweight .. 0.62

Oats ................... Bushel ............... 0.13

Rapeseed .......... Hundredweight .. 0.62

Rice ................... Hundredweight .. 0.52

Rye .................... Bushel ............... 0.13

Safflower ........... Hundredweight .. 0.62

Seed Cotton (lint

basis).

Pound ............... 0.008

Shorn Mohair .... Pound ............... 0.16

Shorn Wool ....... Pound ............... 0.38

TABLE 1—Continued

Commodity Unit Amount

per unit

Sorghum ............ Hundredweight .. 0.19

Soybeans .......... Bushel ............... 0.43

Sunflower Seed . Hundredweight .. 0.62

Wheat ................ Bushel ............... 0.15

TABLE 2

Commodity Unit Amount

per unit

Barley ................ Bushel ............... 0.07

Canola ............... Hundredweight .. 0.32

Corn .................. Bushel ............... 0.07

Cotton ................ Bale ................... 3.20

Flaxseed ............ Hundredweight .. 0.32

Honey ................ Hundredweight .. 0.95

Mustard Seed .... Hundredweight .. 0.32

Oats ................... Bushel ............... 0.07

Rapeseed .......... Hundredweight .. 0.32

Rice ................... Hundredweight .. 0.26

Rye .................... Bushel ............... 0.07

Safflower ........... Hundredweight .. 0.32

Seed Cotton (lint

basis).

Pound ............... 0.004

Shorn Mohair .... Pound ............... 0.08

Shorn Wool ....... Pound ............... 0.19

Sorghum ............ Hundredweight .. 0.10

Soybeans .......... Bushel ............... 0.22

Sunflower Seed . Hundredweight .. 0.32

Wheat ................ Bushel ............... 0.08

* * * * *

9. In § 1425.11, paragraph (c)(3) is

revised to read as follows:

§ 1425.11 Operations.

* * * * *

(c) * * *

(3) Require that all proceeds from the

marketing operation be distributed as

provided in § 1425.18.

10. In § 1425.14, paragraph (c) is

revised to read as follows:

§ 1425.14 Member business.

* * * * *

(c) The cooperative has a plan,

approved by CCC, which CCC

determines to be in the cooperative

members’ best interest and will bring

the cooperative into compliance with

the provisions of this section.

Commodities purchased or acquired

from CCC and processed products

acquired from other processors or

merchandisers shall not be considered

in determining the volume of member or

nonmember business.

§§ 1425.16–1425.21, 1425.22, 1425.23

[Redesignated as §§ 1425.17–1425.22,

1425.24, 1425.25]

11. Sections 1425.16 through 1425.21

and §§ 1425.22 and 1425.23 are

redesignated as §§ 1425.17 through

1425.22 and §§ 1425.24 and 1425.25,

respectively, and a new § 1425.16 is

added to read as follows:

§ 1425.16 Payment limitation.

Approved cooperatives shall monitor

marketing loan gains, loan deficiency

payments, and other payments they

receive from CCC on behalf of their

members and ensure that the sum of the

amounts received for each member does

not exceed the member’s payment

limitation determined in accordance

with part 1497 of this title that, for

purposes of administering such part, is

assigned by CCC to the cooperative.

12. Redesignated § 1425.17 is

amended by revising paragraphs (a)(2),

(b)(1)(i), (b)(1)(ii), (b)(1)(iii), (b)(2), (c)(2),

and adding paragraph (c)(5) to read as

follows:

§ 1425.17 Eligible commodity and pooling.

(a) * * *

(2) Price support will be made

available to approved cooperatives with

respect to a quantity of an eligible

commodity included in an eligible pool

as provided in paragraph (c) of this

section and the beneficial interest

provisions of parts 1421, 1427, 1435,

and 1468 of this chapter.

(b) * * *

(1) * * *

(i) All of the commodity included in

the pool is eligible for price support,

except as provided in paragraph (b)(2) of

this section;

(ii) The eligible commodity in such

pool was:

(A) Delivered to the cooperative for

marketing for the benefit of the members

of the cooperative, and

(B) Delivered by members who retain

the right to share in the proceeds from

the marketing of the commodity in

accordance with § 1425.18.

(iii) Except with respect to a quantity

of a commodity pledged as collateral for

a price support loan and which is

redeemed within 15 work days from the

date the cooperative receives the

proceeds from CCC, all of the

commodity placed in such pool was

delivered by members who have agreed

to accept a payment of the initial

advances made available to such

producers by the cooperative with

respect to such commodity in

accordance with § 1425.18(a).

(2) If CCC determines that a

cooperative has inadvertently included

in a pool a quantity of commodity

which is ineligible for price support

because of grade, quality, bale weight or

repacking in the case of cotton, or other

factors, the remaining quantity of

commodity shall remain eligible for

price support.

(c) * * *
Federal Register / Vol. 60, No. 7 / Wednesday, January 11, 1995 / Rules and Regulations 2683

1The Office of the Comptroller of the Currency

(OCC), Federal Deposit Insurance Corporation

(FDIC), Federal Reserve Board (FRB), and the Office

of Thrift Supervision (OTS).

(2) Price support will be available to

the cooperative for the quantity of a

farm-stored commodity that is, pursuant

to such cooperative’s marketing

agreement with a member, part of the

cooperative’s pool.

* * * * *

(5) Commodities pledged as collateral

for CCC price support loans shall be free

and clear of all liens and encumbrances

based on an approved cooperative’s

financial agreements or the cooperative

shall obtain a completed Form CCC–

679, Lien Waiver. Approved

cooperatives shall not take any action to

cause a lien or encumbrance to be

placed on a commodity after a loan is

approved.

* * * * *

13. Redesignated § 1425.18 is

amended by revising paragraphs (a) and

(a)(1) and adding paragraph (b)(5) to

read as follows:

§ 1425.18 Distribution of proceeds.

(a) CCC loans, purchases, and loan

deficiency payments. (1) If CCC makes

available price support loans,

purchases, or loan deficiency payments

with respect to any quantity of the

eligible commodity in a pool, the

proceeds from such loans, purchases, or

loan deficiency payments shall be

distributed to members participating in

such pool on the basis of the quantity

and quality of the commodity delivered

by each member which is included in

the pool less any authorized charges for

services performed or paid by the

cooperative which are necessary to

condition the commodity or otherwise

make the commodity eligible for price

support. Except with respect to

commodities which are pledged as

collateral for a price support loan and

which are redeemed within 15 work

days from the date the cooperative

receives the loan proceeds from CCC,

such proceeds shall be distributed

within 15 work days from such date.

Loan deficiency payments received from

CCC shall be distributed within 15 work

days of receipt from CCC.

* * * * *

(b) * * *

(5) When notified by CCC that pool

distributions to a member of any eligible

pool must be reduced for a program

year, farm, or crop, cooperatives shall

refrain from making such pool

distributions and shall, if appropriate,

reimburse CCC for such distributions.

* * * * *

14. Redesignated § 1425.20 is revised

to read as follows:

§ 1425.20 Nondiscrimination.

The cooperative shall not, on the basis

of race, color, age, sex, religion, marital

status, national origin, physical

disability, or mental disability, deny any

producer participation in, or otherwise

subject any producer to discrimination

with respect to any benefits resulting

from its approval to obtain price support

and shall comply with the provisions of

Title VI of the Civil Rights Act of 1964

and the Secretary’s regulations issued

thereunder, appearing in §§ 15.1

through 15.12 of this title; section 504

of the Rehabilitation Act of 1973, as

amended by the Rehabilitation

Comprehensive Services and

Developmental Disabilities

Amendments of 1978; and provisions of

the Age Discrimination Act of 1975, as

amended. The cooperative shall not

discriminate against employees under

Title VII of the Civil Rights Act of 1964,

as amended, or the Equal Pay Act of

1963 or Title VI of the Civil Rights Act

of 1964 as administered by the Equal

Employment Opportunity Commission,

and shall handle employee

discrimination complaints as provided

for in 28 CFR part 42 and 29 CFR part

1691. The United States shall have the

right to enforce compliance with such

statutes and regulations by suit or by

any other action authorized by law. The

cooperative shall submit a certification

with its application that the regulations

cited in this section have been read and

understood and that the cooperative

will abide by them.

15. A new § 1425.23 is added to read

as follows:

§ 1425.23 Reports.

(a) Approved cooperatives shall

annually provide CCC with a PSL–86R

report to applicable county

Consolidated Farm Service Agency

offices. The report shall include all

eligible and ineligible commodity

receipts by Farm Service Agency farm

number for each member.

(b) Approved cooperatives shall at

least annually report by commodity and

by crop the marketing loan gains, loan

deficiency payments, and any other CCC

program payments received on behalf of

each producer member.

Signed in Washington, DC, on December

23, 1994.

Bruce R. Weber,

Acting Executive Vice President, Commodity

Credit Corporation.

[FR Doc. 95–560 Filed 1–10–95; 8:45 am]

BILLING CODE 3410–05–P

FARM CREDIT ADMINISTRATION

12 CFR Parts 614 and 618

RIN 3052–AB51

Loan Policies and Operations; General

Provisions; Collateral Evaluation

Requirements, Actions on

Applications, Review of Credit

Decisions, and Releasing Information

AGENCY: Farm Credit Administration.

ACTION: Notice of effective date;

technical amendment.

SUMMARY: The Farm Credit

Administration (FCA) published an

interim rule with request for comments

on September 12, 1994 (59 FR 46725),

amending 12 CFR parts 614 and 618 to

change collateral evaluation

requirements for Farm Credit System

(FCS or System) institutions. The rule

also made conforming changes related

to Board of Governors of the Federal

Reserve (FRB) regulations interpreting

the Equal Credit Opportunity Act

(ECOA). In accordance with 12 U.S.C.

2252, the effective date of the 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 January 4, 1995.

DATES: The regulations amending 12

CFR parts 614 and 618, published on

September 12, 1994 (59 FR 46725) are

effective January 4, 1995.

FOR FURTHER INFORMATION CONTACT:

Dennis K. Carpenter, Senior Policy

Analyst, Office of Examination, Farm

Credit Administration, McLean, VA

22102–5090, (703) 883–4498, TDD

(703) 883–4444, or

James M. Morris, Senior Attorney,

Office of General Counsel, Farm

Credit Administration, McLean, VA

22102–5090, (703) 883–4020, TDD

(703) 883–4444.

SUPPLEMENTARY INFORMATION:

I. General

The amendments to 12 CFR parts 614

and 618, as published (59 FR 46725),

address issues raised by recent

regulatory revisions by the other Federal

financial institutions’ regulatory

agencies (Federal regulatory agencies),1

comments received in response to the

FCA’s published request for ‘‘regulatory

burden’’ comments (58 FR 34003, June

23, 1993), and amendments made to