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

13839

Vol. 66, No. 46

Thursday, March 8, 2001

DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR Parts 1469 and 1470

RIN 0560–AG35

Wool and Mohair Market Loss

Assistance Program and Apple Market

Loss Assistance Program

AGENCY: Commodity Credit Corporation,

USDA.

ACTION: Final rule.

SUMMARY: This rule implements

provisions of the Agriculture, Rural

Development, Food and Drug

Administration, and Related Agencies

Appropriations Act, 2001 (the 2001

Act), related to the Wool and Mohair

Market Loss Assistance Payment

Program and the Apple Market Loss

Assistance Payment Program. Other

provisions of the 2001 Act will be

implemented under separate rules.

DATES: Effective March 5, 2001.

FOR FURTHER INFORMATION CONTACT:

Danielle Cooke, (202) 720–1919.

SUPPLEMENTARY INFORMATION:

Notice and Comment

Section 840 of the Agriculture, Rural

Development, Food and Drug

Administration, and Related Agencies

Appropriations Act, 2001 (Pub. L. 106–

387) requires that the regulations

necessary to implement these provisions

be issued as soon as practicable and

without regard to the notice and

comment provisions of 5 U.S.C. 553 or

the Statement of Policy of the Secretary

of Agriculture (the Secretary) effective

July 24, 1971 (36 FR 13804) relating to

notices of proposed rulemaking and

public participation in rulemaking.

These provisions are thus issued as final

and are effective immediately.

Executive Order 12866

This final rule is issued in

conformance with Executive Order

12866 and has been determined to be

Economically Significant and has been

reviewed by the Office of Management

and Budget. A cost-benefit assessment

was completed and is summarized after

the background section explaining the

actions this rule will take.

Regulatory Flexibility Act

The Regulatory Flexibility Act is not

applicable to this rule because USDA 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 this rule.

Environmental Evaluation

It has been determined by an

environmental evaluation that this

action will have no significant impact

on the quality of the human

environment. Therefore, neither an

environmental assessment nor an

Environmental Impact Statement is

needed.

Executive Order 12372

This program is not subject to the

provisions of Executive Order 12372,

which require intergovernmental

consultation with State and local

officials. See the notice related to 7 CFR

part 3015, subpart V, published at 48 FR

29115 (June 24, 1983).

Executive Order 12988

This rule has been reviewed in

accordance with Executive Order 12988.

The provisions of this rule preempt

State laws to the extent such laws are

inconsistent with the provisions of this

rule. Before any judicial action may be

brought concerning the provisions of

this rule, the administrative remedies

must be exhausted.

Unfunded Mandates

The provisions of Title II of the

Unfunded Mandates Reform Act of 1995

are not applicable to this rule because

the USDA 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 this

rule. Further, in any case, these

provisions do not impose any mandates

on State, local or tribal governments, or

the private sector.

Small Business Regulatory Enforcement

Fairness Act of 1996

Section 840 of Pub. L. 106–387

requires that the regulations necessary

to implement these provisions be issued

as soon as practicable and without

regard to the notice and comment

provisions of 5 U.S.C. 553 or the

Statement of Policy of the Secretary of

Agriculture effective July 24, 1971 (36

FR 13804) relating to notices of

proposed rulemaking and public

participation in rulemaking. It also

requires that the Secretary use the

provisions of 5 U.S.C. 808 (the Small

Business Regulatory Enforcement

Fairness Act (SBREFA)), which provides

that a rule may take effect at such time

as the agency may determine if the

agency finds for good cause that public

notice is impracticable, unnecessary, or

contrary to the public purpose, and thus

does not have to meet the requirements

of § 801 of SBREFA requiring a 60-day

delay for Congressional review of a

major regulation before the regulation

can go into effect. This rule is

considered a major rule for the purposes

of SBREFA. However, the rule affects

the incomes of a large number of

agricultural producers who have been

hit hard by natural disasters and poor

market conditions. Accordingly,

because it would be contrary to the

public interest to delay those provisions

of this rule, as expressed in Pub. L. 106–

387, they are issued as final and are

effective immediately.

Paperwork Reduction Act

Section 824 of Pub. L. 106–78 requires

that the regulations implementing these

provisions be promulgated without

regard to the Paperwork Reduction Act.

This means that the normal 60-day

public comment period and OMB

approval of the information collections

required by this rule are not required

before the regulations may be made

effective. However, the 60-day public

comment period and OMB approval

under the provisions of 44 U.S.C.

chapter 35 are still required after the

rule is published, and Information

Collection Packages and requests for

approval will be submitted to OMB.

Background

This rule will implement

requirements of Pub. L. 106–387 related

to the Wool and Mohair and Apple

Market Loss Assistance Programs.

13840 Federal Register / Vol. 66, No. 46 / Thursday, March 8, 2001 / Rules and Regulations

Descriptions of this rule’s provisions

follow.

(1) 7 CFR Part 1469—Wool and Mohair

Market Loss Assistance Payment

Program

This rule implements the

requirements of § 814 of Pub. L. 106–

387 related to the Wool and Mohair

Market Loss Assistance Payment

Program. Section 814 provides that the

Secretary shall use no more than $20

million of CCC funds to make payments

directly to producers of wool, and

producers of mohair, for the 2000

marketing year. Pub. L. 106–554

mandated a Government-wide

rescission of 0.22 percent of

appropriated funds, reducing the

funding for the Wool and Mohair

Market Loss Assistance Payment

Program to $19.956 million. The 2001

Act requires the Secretary of Agriculture

to make direct payments equal to 40

cents per pound for wool and mohair.

Producers wanting to participate in the

program must file an application for

payment by April 13, 2001, or such

other date as may be set by the Deputy

Administrator for Farm Programs, CCC.

Applications will be spot-checked and

validated by FSA. Payment will be

made only for wool and mohair shorn

in the United States in 2000 from live

domestic animals owned by the

producer for 30 days or more. These

restrictions are intended to insure that

coverage is limited to actual wool

producers, as opposed to meat

producers, for wool actually produced

as wool, not a by-product, during the

relevant time period allowed for by the

statute. Other restrictions will also

apply.

(2) 7 CFR Part 1470—Apple Market Loss

Assistance Payment Program

This rule implements § 811 of Pub. L.

106–387, which directs the Secretary of

Agriculture to use $100 million of the

Commodity Credit Corporation (CCC)

funds to provide assistance to producers

for their 1998 and 1999 apple

production. The Government-wide

0.22% rescission of appropriated funds

reduces that amount to $99.78 million.

During the past few years a number of

factors have produced a serious

economic crisis that threatens the

existence of apple producers throughout

the United States. Apples are grown in

every State in the continental United

States, and are grown commercially in

36 States. Twenty years of increasing

world production, stagnant domestic

consumption, natural disasters and lowpriced imports converged 2 years ago,

resulting in apple growers receiving the

lowest prices since the late 1980’s for

1998 and 1999 apples bound for fresh

market sale. At the same time, a flood

of cheap apple juice concentrate imports

from the People’s Republic of China

dramatically reduced the demand for

processing apples and caused juice

apple prices to plummet, further

eroding the industry’s overall price

structure. The revenue of apple

producers plummeted in 1998 and

recovered in 1999, but failed to reach

revenue earned in previous years. U.S.

apple growers received an average of

21.2 cents per pound for fresh market

apples from the 1999 crop, up from 17.3

cents per pound in 1998, a historical

low. Apple growers receive about 80

percent of their gross income by

providing fresh fruit and 20 percent by

providing fruit for juice, applesauce and

other processed products. Without a

significant improvement in the market

price on sales of apples, many apple

producers will not be able to remain in

business.

This rule addresses that situation by

providing for a new program to be

administered by FSA utilizing the

foregoing authority. Payments to apple

operations under the program provided

for by this rule will offset a portion of

the per-bushel losses producers have

incurred marketing apples in the U.S.

Payments under this new program will

provide those eligible for the payments

with an immediate infusion of funds to

help pay operating expenses and meet

other financial obligations.

Producers of apples can receive a

payment per pound for the higher of

either 1998 or 1999 apple production

from a qualifying apple operation.

Producers will only be paid on a

maximum quantity of 1,600,000 pounds

per separate apple operation. Payments

will not be subject to administrative

offset or withholding, as provided by

§ 842 of Pub. L. 106–387.

To receive cash payments, eligible

apple producers must: (1) have

produced and harvested apples during

the 1998 and/or 1999 crop year, (2) not

have received a payment from any other

Federal program, other that crop

insurance, for the same market loss, and

(3) apply for cash payments during the

application period for each apple

operation. Pub. L. 106–387, also

specified that benefits under the

program would not be subject, to the

extent practicable, to the gross income

means test and payment limitations,

other than those provided in this part.

To participate in the program, eligible

apple producers must: (1) self-certify to

the gross pounds of production that

were produced and harvested during the

higher of their 1998 and 1999 crop year

apple production, and (2) apply for

payments during the sign-up period set

by the CCC pursuant to these

regulations. At the close of the sign-up

period, a national per pound payment

rate will be determined based on the

factoring of the available $99.78 million

divided by the total pounds of eligible

apple production from each applying

apple operation, with no operation

exceeding 1,600,000 pounds of apple

production. Because outlays for this

program are a fixed amount, the

national average payment rate and

individual payments can only be

calculated after the total eligible

quantity of apple production has been

determined from approved applications.

Apple producers will be subject to

random spot checks performed by local

FSA personnel. Penalties for inaccurate

certifications by producers can be easily

assessed and will inhibit false reports.

Apple operations may, during the

applicable period, apply in person at

county FSA offices during regular

business hours. Alternatively, program

applications may be obtained by mail,

telephone, and facsimile from their

designated county FSA office or

obtained via the Internet. The Internet

website is located at www.fsa.usda.gov/

dafp/psd/.

Cost-Benefit Assessment Summary

Wool and Mohair Market Loss

Assistance (MLA) Payment Program

Payments of 40 cents per pound on

2000 wool production could amount to

about $18 million, assuming wool

production does not fall from 1999

levels, and could potentially double

proceeds from wool production.

Continuing low market prices for wool

will likely further reduce wool

production in 2001. However, some

additional production may be

stimulated in 2001 for producers who

otherwise lack financing. Continued

heavy textile imports likely will mean

stagnant mill demand for wool. MLA

payments may contribute to continued

depressed prices in the future to the

extent that they stimulate additional

production.

Mohair producers will also receive 40

cents per pound, totaling about $2

million. The income impact of this

program on mohair producers is not as

significant as it is on wool producers,

since prices are much higher for mohair

than for wool. Consequently, its impact

on the supply/use situation for mohair

should be even less than its impact on

the wool situation.

Federal Register / Vol. 66, No. 46 / Thursday, March 8, 2001 / Rules and Regulations 13841

Apple Market Loss Assistance Payment

Program

The principal benefit of the market

loss assistance program will be the

approximately $100 million in financial

assistance that apple growers receive,

which could determine if some of them

remain in business. The per-pound

payment hinges on the total eligible

production reported by applicants, so

FSA will be unable to calculate the final

rate until around April 2001.

Using 2001 projected farm numbers,

FSA’s preliminary payment rate

projection is about 2 cents per pound of

eligible production. Payments to

growers with the smallest apple

acreages would be inconsequential—

with those having less than an acre

receiving average payments under $20.

Many of those growers will be among

those whose fruit is for home use only,

or certainly is not expected to provide

an important part of family income.

Given the input-intensive nature of

apple production, many growers may

need annual loans to cover operating

expenses such as labor and pesticides.

However, recent poor returns may make

lenders wary of assuming the risk of

loaning to apple growers. This program

could improve the financial position of

some producers enough to allow them

to acquire the loans they need to

continue operating

The Apple Market Loss Assistance

Program could aid some producers on

the brink of insolvency to remain in

business but the effect of this program

on the long-run viability of the industry

will be minimal. In fact, if the program

encourages overproduction it will slow

structural changes needed to enhance

industry viability.

List of Subjects

Part 1469

Loan programs—agriculture, Price

support programs, Reporting and

recordkeeping requirements.

Part 1470

Apple, Reporting and recordkeeping

requirements.

For the reasons set out in the

preamble, 7 CFR Chapter XIV is

amended as set forth below.

PART 1469—WOOL AND MOHAIR

PRICE SUPPORT PROGRAMS

1. The authority citation for part 1469

is revised to read as follows:

Authority: Pub. L. 105–277, 112 Stat. 2681;

Sec. 801, Pub. L. 106–78, 113 Stat. 1135; Sec.

204(d), Pub. L. 106–224; Sec. 814, Pub. L.

106–387 (114 Stat. 1549A–55).

2. Add subpart C to part 1469 to read

as follows:

Subpart C—Wool and Mohair Market

Loss Assistance Program II

Sec.

1469.201 Applicability.

1469.202 Administration.

1469.203 Definitions.

1469.204 Time and method of application.

1469.205 Eligibility.

1469.206 Availability of funds.

1469.207 Payment rate and amount.

1469.208 Offsets.

1469.209 Appeals.

1469.210 Misrepresentation.

1469.211 Maintaining records.

1469.212 Estates, trust and minors.

1469.213 Death, incompetency, or

disappearance.

1469.214 Refunds; joint and several

liability.

Subpart C—Wool and Mohair Market

Loss Assistance Program II

§ 1469.201 Applicability.

The regulations of this subpart

provide the terms and conditions under

which the Commodity Credit

Corporation (CCC) shall make payments

directly to producers of wool, and

producers of mohair, for the 2000

marketing year.

§ 1469.202 Administration.

(a) The Wool and Mohair Market Loss

Assistance Program shall be

administered under the general

supervision of the Executive Vice

President, CCC, or designee and shall be

carried out in the field by State and

county Farm Service Agency

committees (State and county

committees) and FSA employees.

(b) State and county committees, and

FSA employees, do not have the

authority to modify or waive any of the

provisions of the regulations of this

subpart.

(c) The State committee shall take any

action required by these regulations that

has not been taken by the county

committee. The State committee shall

also:

(1) Correct, or require the county

committee to correct, any action taken

by such county committee that is not in

accordance with the regulations of this

subpart; and

(2) Require a county committee to

withhold taking any action that is not in

accordance with the regulations of this

subpart.

(d) No provision or delegation herein

to a State or county committee shall

preclude the Executive Vice President,

CCC, or a designee, from determining

any question arising under the program

or from reversing or modifying any

determination made by the State or

county committee.

(e) The Deputy Administrator, Farm

Programs, FSA, may authorize State and

county committees to waive or modify

deadlines and other program

requirements in cases where lateness or

failure to meet such other requirements

does not adversely affect the operation

of the Wool and Mohair Market Loss

Assistance Program II and does not

violate statutory limitations on the

program.

§ 1469.203 Definitions.

The definitions set forth in this

section shall be applicable for all

purposes of administering the Wool and

Mohair Market Loss Assistance Program

II established by this subpart.

Application means Form CCC–1155,

the Wool and Mohair Market Loss

Assistance Program II Application.

Application period means March 5,

2001 through April 13, 2001.

CCC means the Commodity Credit

Corporation.

County committee means the FSA

county committee.

County office is the local FSA office.

Farm Service Agency or FSA means

the Farm Service Agency of the United

States Department of Agriculture.

Goat means an adult Angora goat or

the kid of an Angora goat.

Grease mohair means mohair as it

comes from the Angora goat or the kid

of an Angora goat before applying any

process to remove the natural oils or

fats.

Grease wool means wool as it comes

from the sheep or lambs before applying

any process to remove the natural oils

or fats.

Hide means thick tough skin of the

animal.

Lamb means a young ovine animal

that has not cut the second pair of

permanent teeth. The term includes

animals referred to in the livestock trade

as lambs, yearlings, or yearling lambs.

Marketing year means a period

beginning January 1, and ending the

following December 31, both dates

inclusive.

Mohair means the hair sheared from

a live Angora goat before applying any

process that removes the natural oils or

fats or produces a mohair product.

Mohair does not include grease mohair

shorn from pelts or hides.

Pelt means the skin of the animal with

wool still attached to the skin.

Person means any individual, group

of individuals, partnership, corporation,

estate, trust, association, cooperative, or

other business enterprise or other legal

entity who is, or whose members are, a

citizen or citizens of, or legal resident

alien or aliens, in the United States.

13842 Federal Register / Vol. 66, No. 46 / Thursday, March 8, 2001 / Rules and Regulations

Producer means any person or group

of persons who as a single unit produce

wool or mohair and whose production

and facilities are located in the United

States.

Pulled mohair means mohair obtained

from the pelts or hides of dead goat.

Pulled wool means wool obtained

from the pelts or hides of dead sheep.

Shorn mohair means grease mohair

sheared from a live Angora goat or the

kid of an Angora goat. Shorn mohair

does not include pelts, hides, or pulled

mohair.

Shorn wool means grease wool

sheared from live sheep or lambs. Shorn

wool does not include pelts, hides, or

pulled wool.

State committee is the FSA committee

so designated for the applicable State.

United States means the 50 United

States of America, the District of

Columbia, and the Commonwealth of

Puerto Rico.

Wool means the hair sheared from a

live sheep before applying any process

that removes the natural oils or fats or

produces a wool product. Wool does not

include grease wool shorn from pelts or

hides.

§ 1469.204 Time and method of

application.

(a) Wool and mohair producers may

obtain an application, Form CCC–1155

(Wool and Mohair Market Loss

Assistance Program II Application), in

person, by mail, by telephone, or by

facsimile from any county FSA office. In

addition, applicants may download a

copy of Form CCC–1155 at http://

www.sc.egov.usda.gov

(b) A request for payments under this

subpart must be submitted on a

completed Form CCC–1155. Form CCC–

1155 should be submitted to the FSA

county office servicing the county

where the producer is located but, in

any case, must be received by the FSA

county office by the close of business on

April 13, 2001. Applications not

received by the close of business on

April 13, 2001, will be returned as not

having been timely filed and the

producer will not be eligible for

payments under this program.

(c) The wool and mohair producer

requesting payments under this subpart

must certify with respect to the accuracy

and truthfulness of the information

provided in their application for

payments. All information provided is

subject to a spot check by CCC. Refusal

to allow CCC or any other agency of the

Department of Agriculture to verify any

information provided will result in a

determination of ineligibility. Data

furnished by the applicant will be used

to determine eligibility for program

payments. Furnishing the data is

voluntary; however, without it program

payments will not be approved.

Providing a false certification to the

Government is punishable by

imprisonment, fines and other penalties.

§ 1469.205 Eligibility.

(a) Producers. To be eligible to receive

a payment under this subpart, a

producer must:

(1) Have produced domestic wool

and/or domestic mohair during the

period of January 1, 2000, through

December 31, 2000.

(2) Be engaged in the business of

producing and marketing agricultural

products at the time of filing the

application; and

(3) Apply for payment during the

application period.

(b) Eligible wool and mohair.

(1) Wool and mohair is eligible to

generate payments under this subpart

only if the wool or mohair was

produced by shearing live animals (not

wool or mohair which is pulled or

which is shorn from hides or pelts) and

only if such shearing occurred in 2000

and in the United States.

(2) The producer applying for

payment must have owned the wool or

mohair at the time of shearing and must

have owned in the United States the

sheep, lambs, or goats from which the

wool or mohair was shorn for 30 days

or more at any time prior to shearing

and actually owned the animal at the

time of shearing.

§ 1469.206 Availability of funds.

The total available program funds

shall be $19.956 million as provided by

section 814 of Public Law 106–387 and

amended by section 1403 of Public Law

106–554.

§ 1469.207 Payment rate and amount.

(a) Benefits under this subpart may be

made to producers of wool and mohair

during the 2000 marketing year.

(1) Payment rate.

(i) The payment rate for wool is 40

cents per pound.

(ii) The payment rate for mohair is 40

cents per pound.

(2) Payment amount. The payment

amount for wool or mohair will be

calculated, after the conclusion of the

sign-up period, by multiplying the

certified pounds by the payment rate.

(b) In the event that approval of all

eligible applications would result in

expenditures in excess of the $19.956

million appropriated, CCC will calculate

payments by tabulating all eligible

pounds of wool and mohair and

dividing the sum by $19.956 million to

get a national payment rate per pound

for wool and mohair.

§ 1469.208 Offsets.

(a) Any payment or portion thereof

due any person under this subpart shall

be allowed without regard to questions

of title under State law, and without

regard to any claim or lien against the

wool, the sheep, the mohair or the

angora goats thereof, or proceeds

thereof, in favor of the producer or any

other creditors except agencies of the

U.S. Government.

(b) Any payments received by a

producer are not subject to assignments,

administrative offsets or withholdings,

including administrative offset under

chapter 37 of title 31, United States

Code, as provided by section 842 of

Public Law 106–387.

(c) The regulations governing offsets

and withholdings found at 7 CFR Part

1403 shall not be applicable to this

subpart.

§ 1469.209 Appeals.

Any producer who is dissatisfied with

a determination made pursuant to this

subpart may make a request for

reconsideration or appeal of such

determination in accordance with the

appeal regulations set forth at 7 CFR

parts 11 and 780.

§ 1469.210 Misrepresentation.

(a) Whoever issues a false document

or otherwise acts in violation of the

provisions of this program so as to

enable a producer to obtain a payment

to which such producer is not entitled,

shall become liable to CCC for any

payment which CCC may have made in

reliance on such sales document or as

a result of such other action.

(b) The issuance of a false document

or the making of a false statement in an

application for payment or other

document, for the purpose of enabling

the producer to obtain a payment to

which such producer is not entitled,

may subject the person issuing such

document or making such statement to

liability under applicable Federal civil

and criminal statutes.

§ 1469.211 Maintaining records.

Producers making application for a

payment under this program must

maintain accurate records and accounts

that will document that they meet all

eligibility requirements specified

herein. Such records and accounts must

be retained for 3 years after the date of

payment to the producer under this

subpart.

§ 1469.212 Estates, trust, and minors.

(a) Program documents executed by

persons legally authorized to represent

estates or trusts will be accepted only if

such person furnishes evidence of the

authority to execute such documents.

Federal Register / Vol. 66, No. 46 / Thursday, March 8, 2001 / Rules and Regulations 13843

(b) A minor who is an otherwise

eligible producer of wool or mohair

shall be eligible for assistance under this

subpart only if such producer meets one

of the following requirements:

(1) The minor establishes that the

right of majority has been conferred on

the minor by court proceedings or by

statute;

(2) A guardian has been appointed to

manage the minor’s property and has

executed the applicable program

documents; or

(3) A bond is furnished under which

the surety guarantees any loss incurred

for which the minor would be liable had

the minor been an adult.

§ 1469.213 Death, incompetency, or

disappearance.

In the case of death, incompetency,

disappearance or dissolution of a wool

or mohair producer that is eligible to

receive benefits in accordance with this

subpart, such person or persons

specified in part 707 of this title may

receive such benefits, as determined

appropriate by CCC.

§ 1469.214 Refunds; joint and several

liability.

(a) In the event there is a failure to

comply with any term, requirement, or

condition for payment arising under the

application or this subpart, and if any

refund of a payment to CCC shall

otherwise become due in connection

with the application or this subpart, all

payments made under this subpart to

any producer shall be refunded to CCC

together with interest as determined in

accordance with paragraph (c) of this

section and late payment charges as

provided in part 1403 of this chapter.

(b) All producers signing an

application for payment as having an

interest shall be jointly and severally

liable for any refund, including related

charges, that is determined to be due for

any reason under the terms and

conditions of the application or this

subpart.

(c) Interest shall be applicable to

refunds required of any producer under

this subpart if CCC determines that

payments or other assistance were

provided to a producer who was not

eligible for such assistance. Such

interest shall be charged at the rate of

interest that the United States Treasury

charges the CCC for funds, as of the date

CCC made benefits available. Such

interest shall accrue from the date of

repayment or the date interest increases

as determined in accordance with

applicable regulations. CCC may waive

the accrual of interest if CCC determines

that the cause of the erroneous

determination was not due to any action

of the producer.

(d) Interest determined in accordance

with paragraph (c) of this section may

not be waived on refunds required of

the producer when there was

intentional misaction on the part of the

producer, as determined by CCC.

(e) Late payment interest shall be

assessed on all refunds in accordance

with the provisions of, and subject to

the rates prescribed in, part 1403 of this

chapter.

(f) Producers must refund to CCC any

excess payments made by CCC with

respect to such application.

(g) In the event that a benefit under

this subpart was provided as the result

of erroneous information provided by

any producer, the benefit must be repaid

with any applicable interest.

2. Amend 7 CFR Chapter VII by

adding a new part 1470 to read as

follows:

PART 1470—APPLE MARKET LOSS

ASSISTANCE PAYMENT PROGRAM

Sec.

1470.1 Applicability.

1470.2 Administration.

1470.3 Definitions.

1470.4 Time and method of application.

1470.5 Eligibility.

1470.6 Proof of production.

1470.7 Availability of funds.

1470.8 Applicant payment quantity.

1470.9 Payment rate and apple operation

payment.

1470.10 Offsets.

1470.11 Appeals.

1470.12 Misrepresentation and scheme or

device.

1470.13 Estates, trusts, and minors.

1470.14 Death, incompetency, or

disappearance.

1470.15 Maintaining records.

1470.16 Refunds; joint and several liability.

Authority: Sec. 811, Pub. L. 106–387, 114

Stat 1549.

§ 1470.1 Applicability.

(a) The regulations in this subpart are

applicable to producers of 1998 and

1999 crop of apple production. These

regulations set forth the terms and

conditions under which the Commodity

Credit Corporation (CCC) shall provide

payments to apple producers who have

applied to participate in the Apple

Market Loss Assistance Payment

Program in accordance with section 811

of Public Law 106–387. Additional

terms and conditions may be set forth in

the payment application that must be

executed by participants to receive a

market loss payment for apples.

(b) Payments shall be available only

for apples produced and harvested in

the United States.

§ 1470.2 Administration

(a) The Apple Market Loss Payment

Program shall be administered under

the general supervision of the Executive

Vice President, CCC, or a designee, and

shall be carried out in the field by State

and county Farm Service Agency

committees (State and county

committees) and FSA employees.

(b) State and county committees, and

representatives and employees thereof,

do not have the authority to modify or

waive any of the provisions of the

regulations of this subpart.

(c) The State committee shall take any

action required by the regulations of this

subpart that has not been taken by the

county committee. The State committee

shall also:

(1) Correct, or require the county

committee to correct, any action taken

by such county committee that is not in

accordance with the regulations of this

subpart; and

(2) Require a county committee to

withhold taking any action that is not in

accordance with the regulations of this

subpart.

(d) No provision or delegation of this

subpart to a State or county committee

shall preclude the Executive Vice

President, CCC, or a designee, from

determining any question arising under

the program or from reversing or

modifying any determination made by

the State or county committee.

(e) The Deputy Administrator, Farm

Programs, FSA, may authorize State and

county committees to waive or modify

deadlines and other program

requirements in cases where lateness or

failure to meet such other requirements

do not affect adversely the operation of

the Apple Market Loss Assistance

Payment program and does not violate

statutory limitations on the program.

(f) Payment applications and related

documents not executed in accordance

with the terms and conditions

determined and announced by CCC,

including any purported execution

outside of the dates authorized by CCC,

shall be null and void unless the

Executive Vice President, CCC, shall

otherwise allow.

§ 1470.3 Definitions.

The definitions set forth in this

section shall be applicable for all

purposes of administering the Apple

Market Loss Assistance Payment

program established by this subpart.

Apple Operation means any person or

group of persons who as a single unit as

determined by CCC, produce and

market apples in the United States and

which has elected to participate in the

program authorized by the part.

13844 Federal Register / Vol. 66, No. 46 / Thursday, March 8, 2001 / Rules and Regulations

Application means Form CCC–891,

the Apple Market Loss Assistance

Payment Application.

Application period means March 5,

2001 through April 13, 2001.

Commodity Credit Corporation or

CCC means the Commodity Credit

Corporation.

County committee means the FSA

county committee.

County office means the local FSA

office.

Department or USDA means the

United States Department of

Agriculture.

Deputy Administrator means the

Deputy Administrator for Farm

Programs (DAFP), Farm Service Agency

or a designee.

Farm Service Agency or FSA means

the Farm Service Agency of the

Department.

Eligible production means apples that

had been produced in the United States

anytime during the 1998 and or 1999

crop year, subject to a maximum of

1,600,000 pounds per apple operation.

Higher production year means the

crop year, either 1998 or 1999, as

selected by the apple operation, during

which apples were produced.

Payment pounds means the pounds of

apples for which an operation is eligible

to be paid under this subpart.

Person means any individual, group

of individuals, partnership, corporation,

estate, trust association, cooperative, or

other business enterprise or other legal

entity who is, or whose members are, a

citizen of, or legal resident alien or

aliens in the United States.

United States means the 50 States of

the United States of America, the

District of Columbia, and the

Commonwealth of Puerto Rico.

Verifiable production records means

evidence that is used to substantiate the

amount of production reported and that

can be verified by CCC through an

independent source.

§ 1470.4 Time and method of application.

(a) Apple producers may obtain an

application, Form CCC–891 (Apple

Market Loss Assistance Payment

Application), in person, by mail, by

telephone, or by facsimile from any

county FSA office. In addition,

applicants may download a copy of the

CCC–891 at http://

www.sc.egov.usda.gov.

(b) A request for benefits under this

subpart must be submitted on a

completed Form CCC–891. The Form

CCC–891 should be submitted to the

county FSA office serving the county

where the apple operation is located

but, in any case, must be received by the

county FSA office by the close of

business on April 13, 2001.

Applications not received by the close

of business on April 13, 2001, will be

disapproved as not having been timely

filed and the apple operation will not be

eligible for benefits under this program.

(c) All persons who share in an apple

operation’s total production must certify

on the same CCC–891 in order to obtain

the maximum eligible quantity of the

higher crop year of 1998 and 1999 of the

apple operation before the application is

complete.

(d) The apple operation requesting

benefits under this subpart must certify

with respect to the accuracy and

truthfulness of the information provided

in their application for benefits. All

information provided is subject to

verification and spot checks by CCC.

Refusal to allow CCC or any other

agency of the Department of Agriculture

to verify any information provided will

result in a determination of ineligibility.

Data furnished by the applicant will be

used to determine eligibility for program

benefits. Furnishing the data is

voluntary; however, without it program

benefits will not be approved. Providing

a false certification to the Government is

punishable by imprisonment, fines and

other penalties.

§ 1470.5 Eligibility.

(a) To be eligible to receive cash

payment under this subpart, an apple

operation must:

(1) Have produced apples in the

United States anytime during the 1998

and/or 1999 crop year;

(2) Not have been compensated for the

same market loss by any other Federal

programs, except an indemnity

provided under a policy or plan or

insurance offered under the Federal

Crop Insurance Act (7 U.S.C. 1501).

(3) Apply for payments during the

application period.

(b) Payments may be made for losses

suffered by an eligible producer who is

now deceased or is a dissolved entity if

a representative who currently has

authority to enter into a contract for the

producer signs the application for

payment. Proof of authority to sign for

the deceased producer or dissolved

entity must be provided. If a producer

is now a dissolved general partnership

or joint venture, all members of the

general partnership or joint venture at

the time of dissolution or their duly

authorized representatives must sign the

application for payment.

(c) An apple operation must submit a

timely application and comply with all

other terms and conditions of this

subpart and instructions issued by CCC,

as well as comply with those

instructions that are otherwise

contained in the application to be

eligible for benefits under this subpart.

§ 1470.6 Proof of production.

(a) Apple operations selected for spotchecks by CCC must, in accordance with

instructions issued by the Deputy

Administrator, provide adequate proof

of the apples produced during the 1998

and/or 1999 crop year to verify the

higher year of production. The

documentary evidence of apple

production claimed for payment shall

be reported to CCC together with any

supporting documentation under

paragraph (b) of this section. The

pounds of 1998 or 1999 crop year

production must be documented using

actual records developed at the time of

production.

(b) All persons involved in an apple

operation producing apples during the

1998 or 1999 crop year shall provide

any available supporting documents to

assist the county FSA office in verifying

the operation’s apple production

indicated on Form CCC–891. Examples

of supporting documentation include,

but are not limited to: picking, packout,

and payroll records, RMA records, sales

documents, copies of receipts, ledgers of

income, or any other documents

available to confirm the production and

production history of the apple

operation. In the event that supporting

documentation is not presented to the

county FSA office requesting the

information, the apple operation will be

determined ineligible for benefits.

§ 1470.7 Availability of funds.

The total available program funds

shall be $99.78 million as provided by

Section 811 of Public Law 106–387 and

amended by Section 1403 of Public Law

106–554.

§ 1470.8 Applicant payment quantity.

(a) The applicant’s payment quantity

of apples will be determined by the

CCC, based on the higher production of

1998 or 1999 crop of apples that was

produced by each operation, as selected

by the apple operation.

(b) The maximum quantity of the

1998 or 1999 crop of apples for which

producers are eligible for a payment for

an operation under this subpart shall be

1,600,000 pounds.

§ 1470.9 Payment rate and apple operation

payment.

(a) Payments under this subpart may

be made to apple operations only up to

1,600,000 pounds of apples produced in

the United States during the higher

production year of 1998 or 1999. A

payment rate will be determined after

the conclusion of the application

period, and shall be calculated by:

Federal Register / Vol. 66, No. 46 / Thursday, March 8, 2001 / Rules and Regulations 13845

(1) Totaling the higher production of

the eligible quantity (not to exceed

1,600,000 pounds) of apples produced

from the 1998 or 1999 crop year from all

approved applications; and

(2) Dividing the amount available for

the Apple Market Loss Assistance

Payment program by the total pounds of

eligible production submitted and

approved for payment (the quantity

determined under paragraph (a)(1) of

this section).

(b) Each apple operation payment will

be calculated by multiplying the

payment rate determined in paragraph

(a) of this section by the apple

operation’s eligible production.

(c) In the event that approval of all

eligible applications would result in

expenditures in excess of the amount

available, CCC shall reduce the payment

rate in such manner as CCC, in its sole

discretion, finds fair and reasonable.

§ 1470.10 Offsets.

(a) Any payment or portion thereof

due any person under this part shall be

allowed without regard to questions of

title under State law, and without regard

to any claim or lien against an

operation, an operation’s apple

production, or proceeds thereof, in favor

of the producer or any other creditors,

including agencies of the U.S.

Government.

(b) Payments received by an apple

operation under this part are not subject

to administrative offsets or

withholdings, including administrative

offset under chapter 37 of title 31,

United States Code, as provided by

Public Law 106–387.

(c) The regulations governing offsets

and withholdings found at 7 CFR Part

1403 shall not be applicable to this part.

§ 1470.11 Appeals.

Any producer who is dissatisfied with

a determination made pursuant to this

part may make a request for

reconsideration or appeal of such

determination in accordance with the

appeal regulations set forth at 7 CFR

parts 11 and 780.

§ 1470.12 Misrepresentation and scheme

or device.

(a) An apple operation shall be

ineligible to receive assistance under

this program if it is determined by the

State committee or the county

committee to have knowingly:

(1) Adopted any scheme or device

which tends to defeat the purpose of

this program;

(2) Made any fraudulent

representation; or

(3) Misrepresented any fact affecting a

determination under this program. CCC

will notify the appropriate investigating

agencies of the United States and take

steps deemed necessary to protect the

interests of the government.

(b) Any funds disbursed pursuant to

this part to any person or operation

engaged in a misrepresentation, scheme,

or device, shall be refunded to CCC,

with interest together with such other

sums as may become due. Any apple

operation or person engaged in acts

prohibited by this section and any apple

operation or person receiving payment

under this part shall be jointly and

severally liable with other persons or

operations involved in such claim for

benefits for any refund due under this

section and for related charges. The

remedies provided in this part shall be

in addition to other civil, criminal, or

administrative remedies which may

apply.

§ 1470.13 Estates, trusts, and minors.

(a) Program documents executed by

persons legally authorized to represent

estates or trusts will be accepted only if

such person furnishes evidence of the

authority to execute such documents.

(b) A minor who is otherwise eligible

for assistance under this part must also:

(1) Establish that the right of majority

has been conferred on the minor by

court proceedings or by statute;

(2) Show that a guardian has been

appointed to manage the minor’s

property and the applicable program

documents are executed by the

guardian; or

(3) Furnish a bond under which the

surety guarantees any loss incurred for

which the minor would be liable had

the minor been an adult.

§ 1470.14 Death, incompetency, or

disappearance.

In the case of death, incompetency,

disappearance or dissolution of a person

that is eligible to receive benefits in

accordance with this part, such person

or persons specified in part 707 of this

title may receive such benefits, as

determined appropriate by CCC.

§ 1470.15 Maintaining records.

Apple operations making application

for benefits under this program must

maintain accurate records and accounts

that will document that they meet all

eligibility requirements specified

herein, as may be requested by CCC.

Such records and accounts must be

retained for 3 years after the date of

payment to the apple operation under

this program. Such records shall be

available at all reasonable times for an

audit or inspection by authorized

representatives of CCC, United States

Department of Agriculture, or the

Comptroller General of the United

States. Failure to keep, or make

available, such records may result in

refund to CCC of all payments received

plus interest thereon, as determined by

CCC. Nothing in this section, shall,

however, authorize the destruction of

any records where there is an on-going

dispute or where the party involved has

reason to know that such records remain

material to the operation of the program.

Destruction of the records after such

date shall be at the risk of the party

undertaking the destruction.

§ 1470.16 Refunds; joint and several

liability.

(a) In the event there is a failure to

comply with any term, requirement, or

condition for payment arising under the

application, or this part, and if any

refund of a payment to CCC shall

otherwise become due in connection

with the application, or this part, all

payments made under this part to any

apple operation shall be refunded to

CCC together with interest as

determined in accordance with

paragraph (c) of this section and late

payment charges as provided in part

1403 of this title.

(b) All persons signing an apple

operation’s application for payment as

having an interest in the operation shall

be jointly and severally liable for any

refund, including related charges, that is

determined to be due for any reason

under the terms and conditions of the

application or this part with respect to

such operation.

(c) Interest shall be applicable to

refunds required of any person under

this part if CCC determines that

payments or other assistance was

provided to a person who was not

eligible for such assistance. Such

interest shall be charged at the rate of

interest that the United States Treasury

charges the CCC for funds, from the date

CCC made such benefits available to the

date of repayment or the date interest

increases as determined in accordance

with applicable regulations. CCC may

waive the accrual of interest if CCC

determines that the cause of the

erroneous determination was not due to

any action of the person.

(d) Interest determined in accordance

with paragraph (c) of this section may

be waived at the discretion of CCC alone

for refunds resulting from those

violations determined by CCC to have

been beyond the control of the person

committing the violation.

(e) Late payment interest shall be

assessed on all refunds in accordance

with the provisions of, and subject to

the rates prescribed in, 7 CFR part 1403.

13846 Federal Register / Vol. 66, No. 46 / Thursday, March 8, 2001 / Rules and Regulations

(f) Any excess payments made by CCC

with respect to any application under

this part must be refunded.

(g) In the event that a benefit under

this subpart was provided as the result

of erroneous information provided by

any person, the benefit must be repaid

with any applicable interest.

Signed in Washington, D.C., on March 1,

2001.

Diane Sharp,

Acting Executive Vice President, Commodity

Credit Corporation.

[FR Doc. 01–5491 Filed 3–5–01; 4:58 pm]

BILLING CODE 3410–05–P

DEPARTMENT OF HEALTH AND

HUMAN SERVICES

Food and Drug Administration

21 CFR Part 172

[Docket No. 00F–0175]

Food Additives Permitted for Direct

Addition to Food for Human

Consumption; Natamycin (Pimaricin)

AGENCY: Food and Drug Administration,

HHS.

ACTION: Final rule.

SUMMARY: The Food and Drug

Administration (FDA) is amending the

food additive regulations to provide for

the safe use of natamycin on cheese.

This action is in response to a petition

filed by Cultor Food Science, Inc.; DSM

Food Specialities; and Protein

Technologies International.

DATES: This rule is effective March 8,

2001. Submit written objections and

requests for a hearing by April 9, 2001.

The Director of the Office of the Federal

Register approves the incorporation by

reference in accordance with 5 U.S.C.

552(a) and 1 CFR part 51 of certain

publications in 21 CFR 172.155(c), as of

March 8, 2001.

ADDRESSES: Submit written objections to

the Dockets Management Branch (HFA–

305), Food and Drug Administration,

5630 Fishers Lane, rm. 1061, Rockville,

MD 20852.

FOR FURTHER INFORMATION CONTACT:

Andrew J. Zajac, Center for Food Safety

and Applied Nutrition (HFS–206), Food

and Drug Administration, 200 C St. SW.,

Washington, DC 20204–001, 202–418–

3095.

SUPPLEMENTARY INFORMATION: In a notice

published in the Federal Register of

January 24, 2000 (65 FR 3719), FDA

announced that a food additive petition

(FAP 0A4704) had been filed by Cultor

Food Science, Inc., 430 Saw Mill River

Rd., Ardsley, NY 10502; DSM Food

Specialties, 700 American Ave., suite

300, King of Prussia, PA 19406; and

Protein Technologies International,

Checkerboard Square, St. Louis, MO

63164. The petitioners proposed that the

food additive regulations in § 172.155

Natamycin (pimaricin) (21 CFR 172.155)

be amended by listing only the use level

of natamycin permitted in cheese and

by eliminating the reference for the

method of application.

Natamycin is currently approved in

§ 172.155 for use as an antimycotic

agent on the surface of cuts and slices

of cheese(s). Under the current

regulation, natamycin may be applied to

the surface of cuts and slices of cheese

to inhibit mold spoilage with the

following limitations: (1) The additive

may be applied as a dry mix containing

the additive and safe and suitable

anticaking agents, resulting in no more

than 20 parts per million (ppm) of the

additive in the finished product, or by

dipping or spraying, using an aqueous

solution containing 200 to 300 ppm of

the additive; (2) the additive may be

applied to the surface of those cuts and

slices of cheese(s) listed in part 133 (21

CFR part 133) only if the cheese

standards provide for the use of ‘‘safe

and suitable’’ mold-inhibiting

ingredients.

The agency is revoking the limitations

on the application of natamycin to the

surface of cuts and slices of cheese in

§ 172.155(c)(1) and (c)(2), and is revising

§ 172.155(c) to set forth a limitation for

the amount of natamycin on cheese that

may remain in the finished product,

regardless of the method of application.

The agency is setting forth a test

method in revised § 172.155(c) that will

ensure that natamycin does not exceed

20 milligrams per kilogram (20 ppm) in

the finished product. This limitation

will not restrict the process of

application of natamycin to cheese nor

the physical form (e.g., cuts, slices, or

grated) of the cheese to which

natamycin may be applied. The agency

has concluded that the dietary exposure

to natamycin will not change as a result

of the use of the new test method for the

application of natamycin to cheese and

new physical forms of cheese to which

natamycin may be applied. Further,

because of the existing limitation in part

133 for when ‘‘safe and suitable’’ mold

inhibiting ingredients, such as

natamycin, may be used in cheese, the

agency has determined that repeating

such limitations in § 172.155 is not

necessary. Therefore, omitting the

previous limitation in § 172.155(c)(2)

from revised § 172.155(c) does not

change the varieties of cheeses in which

natamycin may be used. Consequently,

because the dietary exposure to

natamycin in cheese remains the same

as considered in the previous safety

assessment for § 177.155(c)(1) and (c)(2),

no new safety issues are raised and no

new safety evaluation is needed for this

rule.

In accordance with § 171.1(h) (21 CFR

171.1(h)), the petition and the

documents that FDA considered and

relied upon in reaching its decision to

approve the petition are available for

inspection at the Center for Food Safety

and Applied Nutrition by appointment

with the information contact person

listed above. As provided in § 171.1(h),

the agency will delete from the

documents any materials that are not

available for public disclosure before

making the documents available for

inspection.

The agency has previously considered

the environmental effects of this rule as

announced in the notice of filing for

FAP 0A4704. No new information or

comments have been received that

would affect the agency’s previous

determination that there is no

significant impact on the human

environment and that an environmental

impact statement is not required.

This final rule contains no collection

of information. Therefore, clearance by

the Office of Management and Budget

under the Paperwork Reduction Act of

1995 is not required.

Any person who will be adversely

affected by this regulation may at any

time file with the Dockets Management

Branch (address above) written

objections by April 9, 2001. Each

objection shall be separately numbered,

and each numbered objection shall

specify with particularity the provisions

of the regulation to which objection is

made and the grounds for the objection.

Each numbered objection on which a

hearing is requested shall specifically so

state. Failure to request a hearing for

any particular objection shall constitute

a waiver of the right to a hearing on that

objection. Each numbered objection for

which a hearing is requested shall

include a detailed description and

analysis of the specific factual

information intended to be presented in

support of the objection in the event

that a hearing is held. Failure to include

such a description and analysis for any

particular objection shall constitute a

waiver of the right to a hearing on the

objection. Three copies of all documents

are to be submitted and are to be

identified with the docket number

found in brackets in the heading of this

document. Any objections received in

response to the regulation may be seen

in the Dockets Management Branch