Federal Register / Vol. 60, No. 65 / Wednesday, April 5, 1995 / Rules and Regulations 17201

REFERENCE TO RWY 01/19 TO RWY 02/20.

THIS BECOMES VOR/DME RNAV RWY 20,

AMDT 2A.

Hickory

Hickory Regional

North Carolina

ILS RWY 24 AMDT 6.

FDC Date: 03/08/95

THIS CORRECTS NOTAM IN TL 95–07.

FDC 5/1075/HKY/ FI/P HICKORY

REGIONAL, HICKORY, NC, ILS RWY 24

AMDT 6 . . . ADD NOTE . . . OBTAIN LCL

ALSTG ON CTAF; WHEN NOT RECEIVED,

USE WILKES COUNTY ALSTG AND

INCREASE ALL DH/MDAS 300 FEET AND

ALL VIS 1 MILE. THIS BECOMES ILS RWY

24 AMDT 6A.

Santa Fe

Santa Fe County Muni

New Mexico

ILS RWY 2 AMDT 4.

FDC Date: 03/13/95

FDC 5/1152/SAF/ FI/P SANTA FE

COUNTY MUNI, SANTA FE, NM. ILS RWY

2 AMDT 4 . . . CHG NOTE TO READ . . .

ADF REQUIRED.

[FR Doc. 95–8363 Filed 4–4–95; 8:45 am]

BILLING CODE 4910–13–M

SECURITIES AND EXCHANGE

COMMISSION

17 CFR Part 200

[Release No. 34–35548]

Establishment of Commission Quorum

Requirement

AGENCY: Securities and Exchange

Commission.

ACTION: Final rule.

SUMMARY: The Securities and Exchange

Commission (‘‘Commission’’) is

amending its rules to specify the

number of Commission members that

constitute a quorum. The amendments

are designed to promote flexibility,

finality, and collegiality of agency

decisionmaking.

EFFECTIVE DATE: May 5, 1995.

FOR FURTHER INFORMATION CONTACT:

Walter B. Stahr, Assistant General

Counsel, or C. Hunter Jones, Special

Counsel, Office of the General Counsel,

at (202) 942–0888.

SUPPLEMENTARY INFORMATION: The

Commission is modifying 17 CFR

200.40–200.42 to provide that three

members constitute a quorum of the

Commission, with two important

exceptions. First, if the number of

members in office is two or one, that

number is sufficient for a quorum.

Second, if the number of members in

office minus the number disqualified

with respect to a matter is two, two

constitute a quorum for purposes of that

matter.

The Securities Exchange Act of 1934

(‘‘Exchange Act’’), unlike many statutes

that establish federal agencies, does not

establish a quorum requirement for the

Commission. In the past, the practice of

the Commission has generally been that

three members constitute a quorum. See

In re International Paper & Power Co.,

2 SEC 792, 793 n.1 (1937), rev’d on

other grounds sub nom. Lawless v. SEC,

105 F.2d 574 (1st Cir. 1939). This

practice, however, has never been

formally adopted as a policy or rule.

The Commission, which currently has

only three members, has reconsidered

its quorum practice. It has decided to

adopt a general rule, with the

exceptions discussed below, that three

commissioners are required for a

quorum. Although this rule may create

difficulties when only three

commissioners are in office, these

difficulties are outweighed by the

benefits of having all three

commissioners deliberate and vote on

matters.

Situations arise, however, in which

only two members are able to

participate in a matter. When three

members are in office, for example, one

member may recuse himself or herself

from considering a matter. See 17 CFR

200.60. Similarly, it is possible that, at

some point, there would be only two

commissioners in office. In the past, the

Commission has resorted to the duty

officer procedure to deal with urgent

matters as to which only two

commissioners are available. See 17

CFR 200.42. The duty officer procedure,

however, because it is a form of

delegation, is not available for

rulemaking. See Exchange Act Section

4A(a). Moreover, although a duty

officer’s action is Commission action

unless and until the Commission directs

otherwise, see 17 CFR 200.42(c)(3), the

Commission cannot affirm the duty

officer’s action when only one other

Commission member is available to

consider the matter. Finally, and

perhaps most importantly, it is more

consistent with the collegial nature of

the Commission to allow the two

qualified members to address such

matters as a Commission.

The Commission also believes that it

would be appropriate to preserve the

flexibility necessary to take effective

action in the event, however unlikely,

that there would be a period with only

one commissioner in office. To provide

adequate flexibility in this unlikely

situation, the Commission is providing

that one commissioner would constitute

a quorum if no other commissioners are

in office. The Commission does not

believe it is necessary, at this time, to

provide that one commissioner may

constitute a quorum when

disqualifications result in only one

commissioner being available to deal

with a particular matter.

Accordingly, the Commission is

adopting a new rule, at 17 CFR 200.41,

providing that three members constitute

a quorum unless only two members or

one member are in office, or unless,

because of disqualifications, only two

members are available to deal with a

particular matter. The Commission is

also amending 17 CFR 200.40 to clarify

that it applies only to meetings that are

subject to the Government in the

Sunshine Act.

The Commission has determined that

these amendments and additions to its

procedural rules relate solely to the

agency’s organization, procedure or

practice. Therefore, the provisions of the

Administrative Procedure Act (‘‘APA’’)

regarding notice and comment are not

applicable. See 5 U.S.C. 553. Similarly,

the provisions of the Regulatory

Flexibility Act, which apply only when

notice and comment are required by the

APA or other laws, are not applicable.

See 5 U.S.C. 601–612.

Effects on Competition

Section 23(a)(2) of the Exchange Act

requires the Commission, in adopting

rules under the Exchange Act, to

consider the anti-competitive effects of

such rules, if any, and to balance any

impact against the regulatory benefits

gained in furthering the purposes of the

Exchange Act. See 15 U.S.C. 78w(a)(2).

The Commission has considered the

changes adopted in this release in light

of the standards cited in section 23(a)(2)

and believes that their adoption would

not impose any burden on competition

not necessary or appropriate in

furtherance of the Exchange Act.

Statutory Basis of Rule

The amendments to the Commission’s

rules are adopted pursuant to the

authorities set forth therein.

List of Subjects in 17 CFR Part 200

Administrative practice and

procedure, Authority delegations

(Government agencies).

Text of Amendments

For the reasons set out in the

preamble, title 17, chapter II, part 200 of

the Code of Federal Regulations is

amended as follows:
17202 Federal Register / Vol. 60, No. 65 / Wednesday, April 5, 1995 / Rules and Regulations

PART 200—ORGANIZATION;

CONDUCT AND ETHICS; AND

INFORMATION AND REQUESTS

1. The authority citation for part 200,

subpart B, is revised to read as follows:

Authority: 5 U.S.C. 552b; 15 U.S.C. 78d–

1 and 78w.

2. Section 200.40 is revised to read as

follows:

§ 200.40 Joint disposition of business by

Commission meeting.

Any meeting of the Commission that

is subject to the provisions of the

Government in the Sunshine Act, 5

U.S.C. 552b, shall be held in accordance

with subpart I of this part. The

Commission’s Secretary shall prepare

and maintain a Minute Record reflecting

the official action taken at such

meetings.

§§ 200.41 and 200.42 [Redesignated as

§§ 200.42 and 200.43]

3. Sections 200.41 and 200.42 are

redesignated as §§ 200.42 and 200.43,

and § 200.41 is added to read as follows:

§ 200.41 Quorum of the Commission.

A quorum of the Commission shall

consist of three members; provided,

however, that if the number of

Commissioners in office is less than

three, a quorum shall consist of the

number of members in office; and

provided further that on any matter of

business as to which the number of

members in office, minus the number of

members who either have disqualified

themselves from consideration of such

matter pursuant to § 200.60 or are

otherwise disqualified from such

consideration, is two, two members

shall constitute a quorum for purposes

of such matter.

§ 200.42 [Amended]

4. In newly redesignated § 200.42, in

paragraph (a) the reference to ‘‘§ 200.42’’

is revised to read ‘‘§ 200.43’’ and in

paragraph (b) the reference to

‘‘§ 200.41(a)’’ is revised to read

‘‘§ 200.42(a)’’.

§ 200.43 [Amended]

5. In newly redesignated

§ 200.43(c)(1), the reference to

‘‘§ 200.42(a)’’ is revised to read

‘‘§ 200.43(a)’’ and the reference to

‘‘§ 200.41’’ is revised to read ‘‘§ 200.42’’.

§ 200.401 [Amended]

6. In § 200.401(a), the reference to

‘‘§ 200.41 or § 200.42’’ is revised to read

‘‘§ 200.42 or § 200.43’’.

Dated: March 30, 1995.

By the Commission.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–8259 Filed 4–4–95; 8:45 am]

BILLING CODE 8010–01–P

DEPARTMENT OF HEALTH AND

HUMAN SERVICES

Food and Drug Administration

21 CFR Part 101

[Docket No. 93N–0283]

RIN 0905–AD89

Food Labeling; Placement of the

Nutrition Label on Food Packages

AGENCY: Food and Drug Administration,

HHS.

ACTION: Final rule.

SUMMARY: The Food and Drug

Administration (FDA) is amending its

food labeling regulations to provide

increased flexibility in the placement of

the nutrition label on packaged foods. In

situations in which the principal

display and information panels cannot

accommodate all the required labeling

information, and the package has a total

surface area available to bear labeling of

greater than 40 square inches (sq in), the

amendment allows the nutrition label to

be placed on any panel that can be

readily seen by the consumer. This

action is being taken in response to

comments received on the final rule of

January 6, 1993, entitled ‘‘Food Labeling

Regulations Implementing the Nutrition

Labeling and Education Act of 1990;

Opportunity for Comments,’’

(hereinafter ‘‘the implementation final

rule’’), and on the proposed rule of

August 18, 1993, entitled ‘‘Food

Labeling; Placement of the Nutrition

Label on Food Packages.’’

EFFECTIVE DATE: May 5, 1995.

FOR FURTHER INFORMATION CONTACT:

Arletta M. Beloian, Center for Food

Safety and Applied Nutrition (HFS–

165), Food and Drug Administration,

200 C St. SW., Washington, DC 20204,

202–205–5430.

SUPPLEMENTARY INFORMATION:

I. Background

A. The Principal Display Panel and

Information Panel

Under FDA’s regulations (§ 101.1 (21

CFR 101.1)), the part of a label that is

most likely to be displayed, presented,

shown, or examined by a consumer

under customary conditions of display

for retail sale is called ‘‘the principal

display panel.’’ This panel must include

the statement of identity for the product

and its net weight. In addition, to

provide consistency and uniformity in

the presentation of label information to

consumers, FDA has provided for a

second display panel for information

that must be included on the label but

that is not required to appear on the

principal display panel. This alternate

panel is called ‘‘the information panel’’

(§ 101.2 (21 CFR 101.2)).

The information panel is defined in

§ 101.2(a) as that part of the label that

is immediately contiguous and to the

right of the principal display panel.

Section 101.2(a)(1) specifies that if the

first panel to the right of the principal

display panel is too small to

accommodate the necessary

information, or is otherwise unusable

label space, the panel immediately

contiguous and to the right of that part

of the label may be used as the

information panel. Accordingly, FDA’s

regulations direct manufacturers to

move the information required to appear

on the information panel as a unit when

the first available information panel will

not accommodate all the required

information. Pursuant to § 101.2(e), all

information appearing on the

information panel must be presented in

one place without other intervening

material.

Section 101.2(b) states that the

ingredient listing; name and place of

business of the manufacturer, packer, or

distributor; and nutrition information

must appear either on the principal

display panel or on the information

panel, unless otherwise specified by

regulation. Section 101.2(d)(1) requires

that all information required to appear

on the principal display panel or the

information panel appear on the same

panel unless there is insufficient space,

in which case it may be divided

between the principal display panel and

information panel in accordance with

§§ 101.1 and 101.2. In determining the

sufficiency of the available space, under

§ 101.2(d)(1), any vignettes, designs, and

other nonmandatory label information

are not to be considered.

B. Mandatory Nutrition Labeling

In the Federal Register of January 6,

1993, FDA issued a final rule entitled

‘‘Food Labeling: Mandatory Status of

Nutrition Labeling and Nutrient Content

Revision, Format for Nutrition Label’’

(58 FR 2079) (hereinafter referred to as

‘‘the mandatory nutrition labeling final

rule’’), which included provisions to

require nutrition labeling on most foods

that are regulated by FDA and to specify

a new format for declaring nutrition

labeling. FDA took this action, in part,

to implement the Nutrition Labeling and