[Federal Register Volume 63, Number 158 (Monday, August 17, 1998)]
[Proposed Rules]
[Pages 43891-43893]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-21989]
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Proposed Rules
Federal Register
________________________________________________________________________
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.
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Federal Register / Vol. 63, No. 158 / Monday, August 17, 1998 /
Proposed Rules
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NORTHEAST DAIRY COMPACT COMMISSION
7 CFR Parts 1301 and 1304
Over-Order Price Regulation
AGENCY: Northeast Dairy Compact Commission.
ACTION: Proposed rule; extension of comment period; request for
additional comments.
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SUMMARY: The Northeast Dairy Compact Commission previously proposed to
amend the current Compact Over-order Price Regulation to exclude all
milk from the pool which is either diverted or transferred, in bulk,
out of the Compact regulated area. The Commission is extending the
comment period on these proposed amendments and is requesting
additional comment and testimony on issues regarding diverted and
transferred milk. In conjunction with its continuing deliberations
regarding diverted and transferred milk, the Commission also proposes
to amend the definition of producer to be consistent with the
previously proposed amendments regarding diverted and transferred milk
and to update this rule to include December 1998 as an additional
requirement.
DATES: Written comments and exhibits for the proposed amendments to
parts 1301 and 1304 published at 63 FR 31943, June 11, 1998, and the
proposed amendment in this document may be submitted until 5:00 p.m.,
September 16, 1998. A public hearing to take testimony and receive
documentary evidence relevant to the proposed rules will be held on
September 2, 1998 at 9:00 a.m. Pre-filed testimony is requested and
encouraged and may be submitted until 5:00 p.m., August 26, 1998.
ADDRESSES: Send comments and pre-filed testimony to Northeast Dairy
Compact Commission, 43 State Street, P.O. Box 1058, Montpelier, Vermont
05601.
The public hearing will be held at the Holiday Inn, Capitol Room,
172 North 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 concluded an informal rulemaking process and
voted to adopt a Compact Over-order Price Regulation. See, 62 FR 29626
(May 30, 1997). The Commission subsequently 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).
The current Compact Over-order Price Regulation is codified at 7 CFR
Part 1300.
Pursuant to its authority under Article V, Section 11 of the
Compact, the Commission previously proposed to amend the current
Compact Over-order Price Regulation to exclude all milk from the pool
which is either diverted or transferred, in bulk, out of the Compact
regulated area and to establish a reserve fund for reimbursement to
school food authorities. 63 FR 31943 (June 11, 1998). A public hearing
was held on July 1, 1998 and comments were received until July 15,
1998.
The Commission held its deliberative meeting, pursuant to 7 C.F.R.
1361.8, on August 5, 1998 to consider whether to propose for producer
referendum the amendments to the Compact Over-order Price Regulation.
At this meeting, the Commission adopted the amendment establishing a
reserve fund for school food authorities, subject to a producer
referendum to be held between August 14, 1998 and August 24, 1998.
The Commission also decided, at the August 5, 1998 meeting, to
continue its deliberations and seek additional testimony and comment on
the previously proposed amendments to the diverted and transferred milk
provisions. The Commission is continuing to consider these proposed
amendments, but believes that additional testimony, data and comment in
response to specific questions would be of assistance to it. The
Commission additionally decided to propose conforming amendments to the
definition of producer in the Compact Over-order Price Regulation. The
Commission will hold a public hearing on September 2, 1998 to hear
additional testimony and receive documentary evidence regarding the
previously proposed amendments to the diverted and transferred milk
provisions and the definition of producer milk and also regarding the
newly proposed amendments to the definition of producer. The comments
on any of these proposed amendments will be accepted until 5:00 p.m. on
September 16, 1998.
Diverted or Transferred Milk
The current Compact Over-order Price Regulation permits certain
milk, which is not disposed of in the compact regulated area, to be
qualified for payment of the Compact Over-order producer premium. In
the exercise of its administrative discretion, the Compact Commission
previously proposed, as a matter of policy, to amend the rules
governing the definitions of ``producer milk'' (at section 1301.12) and
``diverted milk'' (at section 1301.23), as well as the rule governing
the ``classification of transfers and diversions'' (at section 1304.2)
to exclude from the pool milk that is transferred or diverted, in bulk,
from a pool plant to a plant located
[[Page 43892]]
outside of the regulated area, and thereby disqualify it from the
Compact Over-order producer premium.\1\ The proposed amendments do not
affect milk diverted or transferred to a partially regulated plant.\2\
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\1\ 63 FR 31943 (June 11, 1998).
\2\ The Compact and Commission regulations define a partially
regulated plant to mean a milk plant not located in the regulated
area, but having Class I distribution within the regulated area, or
receipts from producers located in the regulated area. Compact
Article II, Section 2(7); 7 C.F.R. 1301.6.
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In conjunction with its continuing deliberations regarding diverted
and transferred milk, the Commission is now also proposing certain
conforming amendments to the definition of producer at section 1301.11.
This section establishes the criteria a producer must meet to qualify
for Compact Over-order producer premiums. The Commission proposes to
amend this section to be consistent with the proposed rules regarding
diverted and transferred milk by adding a cross-reference to the
definition of producer milk. This reference is required to prevent any
ambiguity caused by the proposed amendment to the definition of
producer milk which cross-references the proposed amendment to the
definition of diverted milk.
The Commission also proposes to amend the definition of producer,
as needed, to be consistent with any amendments adopted by the
Commission to the rules regarding diverted and transferred milk.
Specifically, sections 1301.11(b) (2) and (3) may require amendment to
maintain internal consistency of the regulations if the Commission
adopts amendments to the previously noticed rules regarding the
definitions of ``producer milk'' (at section 1301.12) and ``diverted
milk'' (at section 1301.23), as well as the rule governing the
``classification of transfers and diversions'' (at section 1304.2).
Although the proposed amendments are merely conforming, the Commission
invites comment on these provisions as currently contained in the Over-
order Price Regulation.
Finally, the Commission proposes to amend the definition of
producer to update the criteria for producers historically associated
with the New England market to add the requirement that these producers
moved their milk to a pool plant in the regulated area in December of
1998, in addition to December 1996 and December 1997, as currently
provided in the regulation.
Accordingly, the Commission extends the comment period and
specifically requests additional comments, data and testimony on issues
relating to diverted and transferred milk, including:
1. Historical data regarding the volume and percentage of milk
diverted and transferred out of the compact regulated area;
2. Information and statistical data regarding the impact, if any,
of implementation of a cap on the volume and/or percentage of diverted
and transferred milk eligible for Compact Over-order producer premiums
and, assuming that some cap is implemented, what percentage that cap
should be, with supporting documentation for the recommended cap, and
recommendations for a methodology for calculating a cap, with
supporting documentation for the methodology;
3. Information and identification of statistical data regarding the
seasonal variability of milk production and milk consumption in the
compact regulated area and the impact, if any, such variability has on
the volume and percentage of milk diverted and transferred out of the
compact regulated area;
4. Information and identification of statistical data regarding
other influences, if any, on the volume and percentage of milk diverted
and transferred out of the compact regulated area; and
5. Information and identification of statistical data regarding the
impact, if any, of the provisions contained in the regulation defining
the term producer on the volume and percentage of milk diverted or
transferred out of the regulated area.
Official Notice of Technical, Scientific or Other Matters
Pursuant to the Commission regulations, 7 C.F.R. 1361.5(g)(5), the
Commission hereby gives public notice that it may take official notice,
at the public hearing on September 2, 1998, or afterward, of relevant
facts, statistics, data, conclusions and other information provided by
or through the United States Department of Agriculture, including but
not limited to such matters reported by the National Agricultural
Statistics Service, the Market Administrators, the Economic Research
Service, the Agricultural Marketing Service and information, data and
statistics developed and maintained by the Departments of Agriculture
of the States or Commonwealth within the Compact regulated area.
Extension of Time for Submission of Comments
The Commission extends the comment period until 5:00 p.m. September
16, 1998 on the proposed rules amending parts 1301 and 1304 published
at 63 FR 31943, June 11, 1998, amending the provisions regarding
diverted and transferred milk.
Date, Time and Location of the Public Hearing
The Northeast Dairy Compact Commission will hold a public hearing
at 9:00 AM on September 2, 1998 at the Holiday Inn, Capitol Room, 172
North Main Street, Concord, New Hampshire.
Request for Written Comments and Pre-filed Testimony
Pursuant to the Commission rules, 7 C.F.R. 1361.4, 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 p.m. on
September 16, 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.
The Commission is requesting pre-filed testimony from any
interested person. Pre-filed testimony must include the witness's name,
address and occupation and a sworn notarized statement indicating that
the testimony is presented based upon the author's personal knowledge
and belief. Pre-filed testimony must be received in the Commission
office no later than 5:00 PM August 26, 1998.
Pre-filed testimony, comments and exhibits should be sent to:
Northeast Dairy Compact 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 and 1304
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:
[[Page 43893]]
Authority: 7 U.S.C. 7256.
2. Section 1301.11 is amended by revising paragraph (b) to read as
follows:
Sec. 1301.11 Producer.
* * * * *
(b) A dairy farmer who produces milk outside of the regulated area
that is moved to a pool plant, provided that on more than half of the
days on which the handler caused milk to be moved from the dairy
farmer's farm during December 1996 and December 1997 and December 1998,
all of that milk was physically moved to a pool plant in the regulated
area. Or: to be considered a qualified producer, on more than half of
the days on which the handler caused milk to be moved from the dairy
farmer's farm during the current month and for five (5) months
subsequent to July of the preceding calendar year, all of that milk
must have moved to a pool plant and be defined as producer milk under
Sec. 1301.12, provided that the total amount of milk at a pool plant
eligible to qualify producer who did not qualify in December 1996 and
December 1997 and December 1998 shall not exceed the total bulk
receipts of fluid milk products less:
(1) Producer receipts as described in paragraph (a) of this section
and producer receipts as described in paragraph (b) of this section who
are qualified based on December 1996 and December 1997 and December
1998;
(2) 90% of the total bulk transfers of fluid milk products (not
including bulk transfers of skimmed milk and condensed milk) disposed
outside of the regulated area; and
(3) 100% of packaged fluid milk products disposed outside of the
regulated area.
* * * * *
Dated: August 11, 1998.
Kenneth M. Becker,
Executive Director.
[FR Doc. 98-21989 Filed 8-14-98; 8:45 am]
BILLING CODE 1650-01-P
