This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

16067

Vol. 60, No. 60

Wednesday, March 29, 1995

DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection

Service

7 CFR Parts 301 and 319

[Docket No. 94–069–1]

Unshu Oranges From Korea

AGENCY: Animal and Plant Health

Inspection Service, USDA.

ACTION: Proposed rule.

SUMMARY: We are proposing to amend

the regulations governing the

importation and interstate movement of

citrus fruit to allow, under certain

conditions, Unshu oranges grown in

citrus-canker free zones on Cheju Island,

Republic of Korea, to be imported into

the United States and moved interstate.

This action would relieve restrictions on

the importation into and distribution

within the United States of Unshu

oranges from Cheju Island, Republic of

Korea, without presenting a significant

risk of spreading citrus canker.

DATES: Consideration will be given only

to comments received on or before April

28, 1995.

ADDRESSES: Please send an original and

three copies of your comments to

Docket No. 94–069–1, Animal and Plant

Health Inspection Service, Policy and

Program Development, Regulatory

Analysis and Development, 4700 River

Road Unit 118, Riverdale, MD 20737–

1228. Please state that your comments

refer to Docket No. 94–069–1.

Comments received may be inspected at

USDA, room 1141, South Building, 14th

Street and Independence Avenue SW.,

Washington, DC, between 8 a.m. and

4:30 p.m., Monday through Friday,

except holidays. Persons wishing to

inspect comments are requested to call

ahead on (202) 690–2817 to facilitate

entry into the comment reading room.

FOR FURTHER INFORMATION CONTACT: Mr.

Peter Grosser or Mr. Frank Cooper,

Senior Operations Officers, Animal and

Plant Health Inspection Service, Plant

Protection and Quarantine, Port

Operations, 4700 River Road Unit 139,

Riverdale, MD 20737–1228, (301) 734–

6799.

SUPPLEMENTARY INFORMATION:

Background

Citrus canker is a disease which

affects citrus, and is caused by the

infectious bacterium Xanthomonas

campestris pv. citri (Hasse) Dye. The

strain of citrus canker that occurs in

Korea infects the twigs, leaves, and fruit

of a wide spectrum of Citrus species.

Currently, the regulations in 7 CFR

319.28 (the regulations) prohibit the

importation of citrus from Eastern and

Southeastern Asia, Japan, Brazil,

Paraguay, and other designated areas,

except for Unshu oranges (Citrus

reticulata Blanco var. unshu, also

known as Satsuma) grown in citrus

canker-free areas in Japan. After meeting

certain growing, packing, and

inspection requirements, Japanese

Unshu oranges may be imported into

any area of the United States except

American Samoa, Arizona, California,

Florida, Louisiana, the Northern

Mariana Islands, Puerto Rico, Texas,

and the Virgin Islands of the United

States. Also, under the regulations in 7

CFR 301.83, Unshu oranges grown in

Japan are prohibited from being moved

interstate from any quarantined area

into or through any nonquarantined area

of the United States; all areas of the

United States, except for American

Samoa, Arizona, California, Florida,

Louisiana, the Northern Mariana

Islands, Puerto Rico, Texas, and the

Virgin Islands of the United States, are

quarantined.

We are proposing to amend the

regulations to allow the importation and

interstate movement, under identical

restrictions, of Unshu oranges grown in

citrus canker-free areas on Cheju Island,

Republic of Korea. To qualify for

importation into the United States, the

oranges would have to meet the

following requirements:

(1) They must be grown and packed

in isolated, canker-free export areas

where only Unshu orange trees are

grown. These areas must be surrounded

by a disease-free buffer zone in which

only certain varieties of citrus may be

grown;

(2) Korean and U.S. plant protection

officials must jointly inspect the canker

free export areas and buffer zones, and

must jointly inspect Unshu oranges in

the groves prior to and during harvest

and in the packinghouses during

packing operations;

(3) Before packing, the Unshu oranges

must be given a USDA-prescribed

surface sterilization with a bleach and

water solution;

(4) On boxes in which Unshu oranges

are packed and on the tissue paper

wrapping of individual Unshu oranges

there must be stamped or printed a

statement specifying the States into

which the Unshu oranges may be

imported and from which they are

prohibited removal under a Federal

plant quarantine;

(5) The Unshu oranges must also be

accompanied by a certificate from the

Korean Plant Protection Service

certifying that the fruit is apparently

free of citrus canker.

Also, we are proposing to amend the

regulations in § 301.83 to prohibit the

movement of Cheju Island Unshu

oranges from any quarantined area into

or through any nonquarantined area of

the United States. The quarantined areas

in the United States for Unshu oranges

from Cheju Island would be the same as

those established for Unshu oranges

from Japan.

These safeguards would be adequate

to ensure that the Unshu oranges from

Cheju Island, Republic of Korea, would

not disseminate citrus canker if

permitted into the United States.

Miscellaneous

Currently, under § 319.28 (b)(1) and

(b)(2) of the regulations, the Animal and

Plant Health Inspection Service (APHIS)

requires that qualified Japanese and U.S.

plant pathologists jointly inspect the

canker-free export areas, buffer zones,

and Unshu oranges. APHIS believes that

these joint inspections could be carried

out effectively by plant protection

officers from APHIS and the country of

origin of the Unshu oranges, either

Japan or the Republic of Korea, rather

than by plant pathologists. Plant

protection officers given this duty

would be trained to examine trees and

fruit for the presence of citrus canker

and other diseases. Therefore, we are

proposing to allow plant protection

officers from APHIS and Japan or the

Republic of Korea to carry out these

joint inspections.

Also, under § 319.28(a)(1) of the

regulations, APHIS prohibits the

importation of citrus fruit from eastern,

southeastern Asia, and other areas.
16068 Federal Register / Vol. 60, No. 60 / Wednesday, March 29, 1995 / Proposed Rules

Several countries, including India,

Burma, Ceylon, Thailand, Indochina,

China, and Japan are mentioned. APHIS

considers the Republic of Korea to be

part of eastern Asia and prohibits the

importation of Korean citrus, even

though Korea is not specifically listed

under § 319.28(a)(1). We are proposing

to add the Republic of Korea to this list

in order to clarify the prohibition on the

importation of Korean citrus.

Finally, under § 319.28(b)(7) of the

regulations, Unshu oranges grown in

Japan are subject to a final examination

at the port of arrival in the United States

by APHIS inspectors to determine if

they are infected with citrus canker.

This requirement is redundant, since

§ 319.56–6 of the Fruits and Vegetables

regulations contains a similar provision

that applies to all imported produce. We

are proposing, therefore, to remove

§ 319.28(b)(7) from the regulations.

Executive Order 12866 and Regulatory

Flexibility Act

This proposed rule has been reviewed

under Executive Order 12866. The 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.

In accordance with 5 U.S.C. 603, we

have performed an Initial Regulatory

Flexibility Analysis, which is set out

below, regarding the impact of this rule

on small entities. However, we do not

currently have all the data necessary for

a comprehensive analysis of the effects

of this rule on small entities. Therefore,

we are inviting comments concerning

potential effects. In particular, we are

interested in determining the number

and kind of small entities that may

incur benefits or costs from

implementation of this proposed rule.

This proposed rule would allow

Unshu oranges grown on Cheju Island,

Republic of Korea, to be imported into

and through 45 States after meeting

certain requirements.

Unshu oranges are imported for a

small market in the United States and

sell for two to three times the price of

the domestically grown Satsuma

tangerines, a citrus fruit similar to the

Unshu orange. Imported Unshu oranges

are available for only a short period of

time each year, from early November

into mid-January.

In the 1992–93 growing season,

domestic producers grew approximately

362 million pounds of tangerines in

Arizona, California and Florida. We

estimate annual domestic production of

Satsuma tangerines to be about 1.9 to

2.4 million pounds, less than one onehundredth of one percent of total

tangerine production.

We anticipate that following the

promulgation of this rule, the Republic

of Korea initially could export about 1.1

million pounds of Unshu oranges to the

United States and increase this amount

to around 3.3 to 4.4 million pounds

within a few years. While 4.4 million

pounds of imported Korean Unshu

oranges would amount to less than one

percent of the total domestic tangerine

production, it would constitute twice

the annual domestic production of

satsuma tangerines. Again, however,

these Korean Unshu oranges could cost

up to three times as much as

domestically produced Satsuma

tangerines.

Executive Order 12778

This proposed rule would allow

Unshu oranges to be imported into the

United States from Cheju Island,

Republic of Korea. If this proposed rule

is adopted, State and local laws and

regulations regarding Unshu oranges

imported under this rule would be

preempted while the fruit is in foreign

commerce. Fresh Unshu oranges are

generally imported for immediate

distribution and sale to the consuming

public, and would remain in foreign

commerce until sold to the ultimate

consumer. The question of when foreign

commerce ceases in other cases must be

addressed on a case-by-case basis. If this

proposed rule is adopted, no retroactive

effect will be given to this rule, and this

rule will not require administrative

proceedings before parties may file suit

in court challenging this rule.

Paperwork Reduction Act

In accordance with the Paperwork

Reduction Act of 1980 (44 U.S.C. 3501

et seq.), the information collection or

recordkeeping requirements included in

this proposed rule will be submitted for

approval to the Office of Management

and Budget. Please send written

comments to the Office of Information

and Regulatory Affairs, OMB, Attention:

Desk Officer for APHIS, Washington, DC

20503. Please send a copy of your

comments to: (1) Docket No. 94–069–1,

Animal and Plant Health Inspection

Service, Policy and Program

Development, Regulatory Analysis and

Development, 4700 River Road Unit

118, Riverdale, MD 20737–1228, and (2)

Clearance Officer, OIRM, USDA, room

404–W, 14th Street and Independence

Avenue SW., Washington, DC 20250.

List of Subjects

7 CFR Part 301

Agricultural commodities, Plant

diseases and pests, Quarantine,

Reporting and recordkeeping

requirements, Transportation.

7 CFR Part 319

Bees, Coffee, Cotton, Fruits, Honey,

Imports, Incorporation by reference,

Nursery stock, Plant diseases and pests,

Quarantine, Reporting and

recordkeeping requirements, Rice,

Vegetables.

Accordingly, 7 CFR parts 301 and 319

would be amended as follows:

PART 301—DOMESTIC QUARANTINE

NOTICES

1. The authority citation for part 301

would continue to read as follows:

Authority: 7 U.S.C. 150bb, 150dd, 150ee,

150ff; 161, 162, and 164–167; 7 CFR 2.17,

2.51, and 371.2(c).

§ 301.83 [Amended]

2. In § 301.83, paragraph (a) would be

amended by adding the phrase ‘‘or on

Cheju Island, Republic of Korea,’’

immediately following ‘‘Japan’’.

PART 319—FOREIGN QUARANTINE

NOTICES

3. The authority citation for part 319

would continue to read as follows:

Authority: 7 U.S.C. 150dd, 150ee, 150ff,

151–167, 450; 21 U.S.C. 136 and 136a; 7 CFR

2.17, 2.51, and 371.2(c).

§ 319.28 [Amended]

4. Section 319.28 would be amended

as follows:

a. Paragraph (a)(1) would be amended

by adding the phrase ‘‘the Republic of

Korea,’’ immediately following the

phrase ‘‘Japan and adjacent islands,’’.

b. Paragraph (b) introductory text

would be amended by adding the phrase

‘‘or on Cheju Island, Republic of Korea,’’

immediately following ‘‘Japan’’.

c. In paragraph (b)(1), the first

sentence would be amended by

removing the phrase ‘‘Japanese Plant

Protection Service’’ and adding the

phrase ‘‘plant protection service of the

country of origin’’ in its place; and in

the third and sixth sentences, the word

‘‘pathologists’’ would be removed and

the phrase ‘‘protection officers’’ would

be added in its place and the word

‘‘Japan’’ would be removed and the

phrase ‘‘the country of origin’’ would be

added in its place.

d. Paragraph (b)(2) would be amended

by removing the word ‘‘pathologists’’

and adding the phrase ‘‘protection

officers’’ in its place and by removing
Federal Register / Vol. 60, No. 60 / Wednesday, March 29, 1995 / Proposed Rules 16069

1 The Comprehensive Thrift and Bank Fraud

Prosecution and Taxpayer Recovery Act of 1990 is

title XXV of the Crime Control Act of 1990, S. 3266,

which was passed by Congress on October 27, 1990

and signed by the President on November 29, 1990.

2 The terms ‘‘golden parachute payment’’ and

‘‘golden parachute’’ are used interchangeably

throughout this discussion.

3 The use of the term ‘‘troubled’’ in this preamble

shall refer to an institution or holding company

which meets any of the criteria set forth in

§§ 359.1(f)(1)(ii) (A) through (E) of the Second

Proposal.

the word ‘‘Japan’’ and adding the phrase

‘‘the country of origin’’ in its place.

e. Paragraph (b)(4)(ii) would be

amended by removing the phrase

‘‘Japanese Plant Protection Service’’ and

adding the phrase ‘‘plant protection

service of the country of origin’’ in its

place.

f. Paragraph (b)(7) would be removed.

g. In paragraph (f), the word ‘‘Japan’’

would be removed and the phrase ‘‘the

country of origin of the Unshu oranges’’

would be added in its place.

Done in Washington, DC, this 22nd day of

March 1995.

Terry L. Medley,

Acting Administrator, Animal and Plant

Health Inspection Service.

[FR Doc. 95–7600 Filed 3–28–95; 8:45 am]

BILLING CODE 3410–34–P

FEDERAL DEPOSIT INSURANCE

CORPORATION

12 CFR Parts 303 and 359

RIN 3064–AB11

Regulation of Golden Parachutes and

Other Benefits Which May Be Subject

to Misuse

AGENCY: Federal Deposit Insurance

Corporation (FDIC or Corporation).

ACTION: Notice of proposed rulemaking.

SUMMARY: The FDIC is proposing a rule

limiting golden parachute and

indemnification payments to

institution-affiliated parties by insured

depository institutions and depository

institution holding companies. The

purpose of this rule is to prevent the

improper disposition of institution

assets and to protect the financial

soundness of insured depository

institutions, depository institution

holding companies, and the federal

deposit insurance funds.

DATES: Comments must be received by

May 30, 1995.

ADDRESSES: Send comments to Robert E.

Feldman, Acting Executive Secretary,

Federal Deposit Insurance Corporation,

550 17th Street, N.W., Washington, D.C.

20429. Comments may be handdelivered to room 400, 1776 F Street,

N.W., Washington, D.C. 20429, on

business days between 8:30 a.m. and

5:00 p.m. [FAX number: (202) 898–

3838.]

FOR FURTHER INFORMATION CONTACT:

Robert F. Miailovich, Associate Director,

Division of Supervision, (202) 898–

6918, 550 17th Street, N.W.,

Washington, D.C.; Michael D. Jenkins,

Examination Specialist, Division of

Supervision, (202) 898–6896, 1776 F

Street, N.W., Washington, D.C. 20429;

Jeffrey M. Kopchik, Counsel, Legal

Division, (202) 898–3872; Federal

Deposit Insurance Corporation, 550 17th

Street, N.W., Washington, D.C. 20429.

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

No collection of information pursuant

to section 3504(h) of the Paperwork

Reduction Act (44 U.S.C. 3501 et seq.)

is contained in the proposed rule.

Consequently, no information was

submitted to the Office of Management

and Budget for review.

Regulatory Flexibility Act

Pursuant to section 605(b) of the

Regulatory Flexibility Act (Pub. L. 96–

354, 5 U.S.C. 601 et seq.), it is certified

that the proposed rule will not have a

significant impact on a substantial

number of small entities.

Background

Section 2523 of the Comprehensive

Thrift and Bank Fraud Prosecution and

Taxpayer Recovery Act of 1990 1 (Fraud

Act) amended the Federal Deposit

Insurance Act (FDI Act) by adding a

new section 18(k). Pub. L. No. 101–647,

§ 2523 (1990). This section 18(k)(1)

provides that ‘‘[t]he Corporation may

prohibit or limit, by regulation or order,

any golden parachute payment or

indemnification payment’’. 12 U.S.C.

1828(k)(1). The terms ‘‘golden parachute

payment’’ and ‘‘indemnification

payment’’ are defined in sections

18(k)(4) and (5)(A) of the FDI Act,

respectively. Id. at 1828(k) (4) and

(5)(A). The statute’s proscriptions are

applicable to insured depository

institutions and depository institution

holding companies. Id.

On October 7, 1991, the FDIC

published a notice of proposed

rulemaking entitled ‘‘Regulation of

Golden Parachutes and Other Benefits

Which Are Subject to Misuse’’ to

implement this provision of the Fraud

Act. 56 FR 50529 (1991) (to be codified

at 12 CFR Part 359). By the end of the

sixty day comment period, the FDIC

received 186 letters commenting on the

proposed regulation. The majority of

these comment letters suggested that the

FDIC revise the proposed rule in order

to strike a more equitable balance

between the protection of the deposit

insurance funds and the needs of

depository institutions and depository

institution holding companies to attract

and retain qualified directors and

management. Many of the comment

letters also suggested certain technical

amendments to the proposed rule to

make it reflect more accurately the

FDIC’s intentions as stated in the

preamble. A few comment letters

requested that no regulation be

promulgated. These letters expressed

the opinion that abuses should be dealt

with on a case-by-case basis through the

use of enforcement proceedings. It

should be noted that the FDIC was

gratified to observe the exceptionally

high level of preparation and thought

which went into many of the comment

letters.

Due to the significant amount of time

which has passed since the publication

of the first proposed rule (the First

Proposal), the FDIC has decided to

publish a second proposal for public

comment (the Second Proposal). The

Second Proposal incorporates many of

the suggestions which were made by the

commenters to the First Proposal.

Summary of the Second Proposal

The golden parachute portion of the

Second Proposal affects insured

depository institutions seeking to make

the golden parachute payments 2 only if

the institution is in a ‘‘troubled’’

condition.3 The proposed regulation

would apply to affiliated depository

institution holding companies either if

the holding company itself is troubled

or if it seeks to make a golden parachute

payment to an institution-affiliated

party (IAP) of a troubled subsidiary

insured depository institution. The

indemnification portion of the Second

Proposal is applicable to all insured

depository institutions and their

holding companies regardless of their

financial condition.

Generally, the Second Proposal

prohibits institutions which are

insolvent, in conservatorship or

receivership, rated ‘‘4’’ or ‘‘5’’, in a

troubled condition as defined in the

regulations of the appropriate federal

banking agency, or which are subject to

a proceeding to terminate deposit

insurance from making any payment to

an institution-affiliated party which is

contingent on the termination of that

person’s affiliation with the institution,

except payments of death or disability

benefits, payments pursuant to qualified

retirement plans and employee welfare