[Federal Register Volume 63, Number 112 (Thursday, June 11, 1998)]
[Proposed Rules]
[Pages 31943-31945]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-15547]
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NORTHEAST DAIRY COMPACT COMMISSION
7 CFR Parts 1301, 1304 and 1306
Over-Order Price Regulation
AGENCY: Northeast Dairy Compact Commission.
ACTION: Proposed rule.
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SUMMARY: The Northeast Dairy Compact Commission proposes to amend the
current Compact Over-order Price Regulation to exclude milk from the
pool which is either diverted or
[[Page 31944]]
transferred, in bulk, out of the Compact regulated area. The proposal
will limit the payment of the compact over-order producer price to milk
disposed of within the Compact regulated area.
The Compact Commission also proposes a new rule to establish a
reserve fund for reimbursement to school food authorities. The proposed
reserve fund is required to implement the previously issued regulation
exempting certain milk sold by school food authorities from the Over-
order Price Regulation.
DATES: Written comments and exhibits may be submitted until 5:00 PM,
July 15, 1998. A public hearing to take testimony and receive
documentary evidence relevant to the proposed rules will be held on
July 1, 1998 at 9:00 am.
ADDRESSES: Send comments to Northeast Dairy Compact Commission, 43
State Street, P.O. Box 1058, Montpelier, Vermont 05601.
The hearing will be held at the Capitol Center for the Arts,
Governor's Hall, 44 South Main Street, Concord, New Hampshire.
FOR FURTHER INFORMATION CONTACT: Kenneth M. Becker, Executive Director,
Northeast Dairy Compact Commission at the above address or by telephone
at (802) 229-1941, or by facsimile at (802) 229-2028.
SUPPLEMENTARY INFORMATION:
Background
The Northeast Dairy Compact Commission (the ``Commission'') was
established under authority of the Northeast Interstate Dairy Compact
(``Compact''). The Compact was enacted into law by each of the six
participating New England states as follows: Connecticut--Pub. L. 93-
320; Maine--Pub. L. 89-437, as amended, Pub. L. 93-274; Massachusetts--
Pub. L. 93-370; New Hampshire--Pub. L. 93-336; Rhode Island--Pub. L.
93-106; Vermont--Pub. L. 89-95, as amended, Pub. L. 93-57. In
accordance with Article I, Section 10 of the United States
Constitution, Congress consented to the Compact in Pub. L. 104-127
(FAIR ACT), Section 147, codified at 7 U.S.C. 7256. Subsequently, the
United States Secretary of Agriculture, pursuant to 7 U.S.C. 7256(1),
authorized implementation of the Compact.
Pursuant to its authority under Article V, Section 11 of the
Compact, the Commission conducted an informal rulemaking proceeding to
adopt a Compact Over-order Price Regulation. See, 62 FR 29626 (May 30,
1997). The Commission amended and extended the Compact Over-order Price
Regulation on October 23, 1997. See 62 FR 62810 (November 25, 1997).
The Commission further amended the Over-order Price Regulation relative
to certain milk sold by school food authorities in New England. See 63
FR 10104 (February 27, 1998).
Pursuant to its authority under Article V, Section 11 of the
Compact, the Commission is proposing to amend the current Compact Over-
order Price Regulation to exclude milk from the pool which is either
diverted or transferred, in bulk, out of the Compact regulated area and
to establish a reserve fund to implement the Commission's regulation
relative to certain milk sold by school food authorities. The current
Compact Over-order Price Regulation is codified at 7 CFR 1300 through
1308.
Diverted or Transferred Milk
The current Compact Over-order Price Regulation permits certain
milk to be qualified for payment of the compact over-order producer
price which is not disposed of in the compact regulated area. In the
exercise of its administrative discretion, as a matter of policy, the
Compact Commission proposes to amend the rules governing the
definitions of ``producer milk'' and ``diverted milk,'' as well as the
rule governing the classification of transfers and diversions to
exclude milk, which is transferred or diverted, in bulk, from a pool
plant to a plant located outside of the regulated area, from the pool
and disqualify it from the compact over-order producer payment. The
proposed amendments do not affect milk diverted or transferred to a
partially regulated plant having Class 1 disposition in the regulated
area.
Producer milk is currently defined to mean milk that the handler
has received from producers. The proposed amendment would add to this
definition the requirement that such milk is physically moved to a pool
plant in the regulated area or is diverted pursuant to Sec. 1301.23(c).
The proposed regulation amends the definition of diverted milk, at
Sec. 1301.23(c), to exclude that volume of milk from the definition of
producer milk that is moved from a dairy farmer's farm to a plant
located outside of the regulated area, except a partially regulated
plant having Class I disposition in the regulated area.
The proposed amendment also adds a provision regarding the
classification of transfers and diversions of milk. This proposed
amendment excludes from the definition of producer milk that volume of
fluid milk (not including bulk transfers of skimmed milk and condensed
milk) that is transferred or diverted, in bulk, from a pool plant to a
plant located outside of the regulated area, except a partially
regulated plant having Class 1 disposition in the regulated area. The
proposed amendment further requires that all milk excluded under this
provision shall be prorated to all sources of milk received at this
plant.
Reserve Fund for School Milk Program
The Compact Commission proposes to establish a reserve fund in
order to implement the Commission's regulation at Sec. 1301.13(e).
Pursuant to that regulation, the Commission has entered into a
Memorandum of Understanding with each of the six New England states
regarding the school milk reimbursement program. Through the Memorandum
of Understanding, the Commission has created a school milk
reimbursement program for the 1998-1999 school year which will permit
the Commission to reimburse school food authorities, as defined by 7
CFR 210.2, to the extent that the school food authorities can
demonstrate and document that the costs of eight-ounce cartons of milk
have been increased by operation of the Compact Over-order Price
Regulation. The proposed regulation authorizes the Commission to
establish the reserve fund necessary to process any qualified
reimbursement claims that are submitted by school food authorities.
Date, Time and Location of the Public Hearing
The Northeast Dairy Compact Commission will hold a public hearing
at 9:00 AM on July 1, 1998 at the Capitol Center for the Arts,
Governor's Hall, 44 South Main Street, Concord, New Hampshire.
Request for Written Comments
Pursuant to Article VI(D) of the Commission's Bylaws, any person
may participate in the rulemaking proceeding independent of the hearing
process by submitting written comments and exhibits to the Commission.
Comments and exhibits may be submitted at any time before 5:00 PM on
July 15, 1998. Comments and exhibits will be made part of the record of
the rulemaking proceeding only if they identify the author's name,
address and occupation, and if they include a sworn notarized statement
indicating that the comment and/or exhibit is presented based upon the
author's personal knowledge and belief. Facsimile copies will be
accepted up until the 5:00 PM deadline but the original must then be
sent by ordinary mail.
Comments and exhibits should be sent to: Northeast Dairy Compact
[[Page 31945]]
Commission, 43 State Street, P.O. Box 1058, Montpelier, Vermont 05601,
(802) 229-2028 (fax).
For more information contact the Compact Commission offices.
List of Subjects in 7 CFR Parts 1301, 1304 and 1306
Milk.
Codification in Code of Federal Regulations
For reasons set forth in the preamble, the Northeast Dairy Compact
Commission proposes to amend 7 CFR Chapter XIII as follows:
PART 1301--DEFINITIONS
1. The authority citation for part 1301 continues to read as
follows:
Authority: 7 U.S.C. 7256.
2. Section 1301.12 is revised to read as follows:
Sec. 1301.12 Producer milk.
Producer milk means milk that the handler has received from
producers and is physically moved to a pool plant in the regulated area
or is diverted pursuant to Sec. 1301.23(c) . The quantity of milk
received by a handler from producers shall include any milk of a
producer that was not received at any plant but which the handler or an
agent of the handler has accepted, measured, sampled, and transferred
from the producer's farm tank into a tank truck during the month. Such
milk shall be considered as having been received at the pool plant at
which other milk from the same farm of that producer is received by the
handler during the month, except that in the case of a cooperative
association in its capacity as a handler under Sec. 1301.9(d), the milk
shall be considered as having been received at a plant in the zone
location of the pool plant, or pool plants within the same zone, to
which the greatest aggregate quantity of the milk of the cooperative
association in such capacity was moved during the current month or the
most recent month.
3. In Sec. 1301.23, paragraph (c) is revised to read as follows:
Sec. 1301.23 Diverted milk.
* * * * *
(c) Milk moved, as described in paragraphs (a) and (b) of this
section, from dairy farmers' farms to partially regulated plants having
Class I distribution in the regulated area in excess of 35 percent in
the months of September through November and 45 percent in other
months, of the total quantity of producer milk received (including
diversions) by the handler during the month shall not be diverted milk.
Such milk, and any other milk reported as diverted milk that fails to
meet the requirements set forth in this section, shall be considered as
having been moved directly from the dairy farmers' farms to the plant
of physical receipt, and if that plant is a nonpool plant the milk
shall be excluded from producer milk. Milk moved, as described in
paragraph (a) and (b) of this section, from a dairy farmer's farm to a
plant located outside of the regulated area, except a partially
regulated plant having Class I disposition in the regulated area, that
volume of milk shall be excluded from producer milk.
PART 1304--CLASSIFICATION OF MILK
1. The authority citation of part 1304 continues to read as
follows:
Authority: 7 U.S.C. 7256.
2. Section 1304.2 is amended by adding paragraph (c) to read as
follows:
Sec. 1304.2 Classification of transfers and diversions.
* * * * *
(c) Fluid milk products (not including bulk transfers of skimmed
milk and condensed milk) transferred or diverted in bulk from a pool
plant to a plant located outside of the regulated area, except a
partially regulated plant having Class I disposition in the regulated
area, that volume shall be excluded from producer milk. The milk
excluded pursuant to this paragraph shall be prorated to all sources of
milk received at this plant.
PART 1306--COMPACT OVER-ORDER PRODUCER PRICE
1. The authority for part 1306 continues to read as follows:
Authority: 7 U.S.C. 7256.
2. In Sec. 1306.3 redesignate paragraphs (d) through (f) as
paragraphs (e) through (g) and add new paragraph (d) to read as
follows:
Sec. 1306.3 Computation of basic over-order producer price
* * * * *
(d) Beginning with the August 1998 pool, subtract from the total
value computed pursuant to paragraph (a) of this section, an amount
estimated by the Commission for the purpose of retaining a reserve for
payment of obligations pursuant to Sec. 1301.13(e) of this chapter.
Surplus funds from this reserve shall be returned to the producer-
settlement fund.
* * * * *
Dated: June 5, 1998.
Kenneth M. Becker,
Executive Director.
[FR Doc. 98-15547 Filed 6-10-98; 8:45 am]
BILLING CODE 1650-01-P
