[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]


 ========================================================================
 Proposed Rules
                                                 Federal Register
 ________________________________________________________________________
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 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  

[[Page 43891]]


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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