[Federal Register Volume 65, Number 59 (Monday, March 27, 2000)]
[Rules and Regulations]
[Pages 16118-16122]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-7413]


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NORTHEAST DAIRY COMPACT COMMISSION

7 CFR Parts 1301, 1304, 1305, 1306, 1307 and 1308


Over-Order Price Regulation

AGENCY: Northeast Dairy Compact Commission.

ACTION: Final rule.

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SUMMARY: The Northeast Dairy Compact Commission amends the over-order 
price regulation to make technical amendments to certain definitions 
and to change certain dates of required action. The amendments are 
necessary to conform the over-order price regulation to similar 
regulations recently reformed by the United States Department of 
Agriculture regarding milk marketed in the New England states. These 
amendments will ensure continuity of regulatory definitions and 
compliance dates in the New England milk market. The Commission also 
amends the definition of producer to specify every December since 1996 
as a condition of qualification.

EFFECTIVE DATE: May 1, 2000.

ADDRESSES: Northeast Dairy Compact Commission, 34 Barre Street, Suite 
2, Montpelier, Vermont 05602.

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:

I. Background

    The Northeast Dairy Compact Commission (``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. 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. Authorization 
of the Compact was extended until September 30, 2001 in the 
Consolidated Appropriations Act for Fiscal Year 2000, Pub. L. 106-113, 
115 Stat. 1501, November 29, 1999.
    Pursuant to its rulemaking 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 on May 30, 
1997.\1\ The Commission subsequently amended and extended the compact 
over-order price regulation.\2\ In 1998 and 1999, the Commission 
further amended specific provisions of the over-order price 
regulation.\3\ The current compact over-order price regulation is 
codified at 7 CFR Chapter XIII.
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    \1\ 62 FR 29626 (May 30, 1997).
    \2\ 62 FR 62810 (Nov. 25, 1997).
    \3\ See, e.g., 63 FR 10104 (Feb. 27, 1998); 63 FR 46385 (Sept. 
1, 1998); 63 FR 65517 (Nov. 27, 1998); 64 FR 23532 (May 3, 1999); 
and 64 FR 34511 (June 28, 1999).
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    On November 29, 1999, the President signed into law the 
Consolidated Appropriations Act, 2000 (Pub. L. 106-113, 115 Stat. 
1501.) That Act required the United States Secretary of Agriculture to 
immediately implement certain reforms to the federal milk order 
regulations. The required regulation was published in the Federal 
Register on December 17, 1999, implementing and amending the final rule 
that was initially published on September 1, 1999.\4\
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    \4\ 64 FR 70868 (Dec. 17, 1999); 64 FR 47898 (Sept. 1, 1999).
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    On January 12, 2000, the Commission issued a notice of proposed 
rulemaking to consider amendments to the Compact Over-order Price 
Regulation that would bring the Commission's regulations into 
conformity with the reformed federal milk market order regulations and 
provide consistency and uniformity in definitions and compliance dates 
for regulated entities in the New England milk market and to amend the 
definition of producer.\5\ The Commission held a public hearing to 
receive testimony on the proposed amendments on February 2, 2000 and 
additional comments and exhibits were accepted until 5:00 PM on 
February 16, 2000. The Commission held a deliberative meeting on March 
1, 2000, pursuant to 7 CFR 1361.8, to consider the testimony and 
comments received and to deliberate and act on the proposed amendments. 
The Commission hereby amends the Over-order Price Regulation to make 
technical amendments to certain definitions and to change certain dates 
of required action and to amend the definition of producer to specify 
every December since 1996 as a condition of qualification.
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    \5\ 65 FR 1825 (Jan. 12, 2000).

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[[Page 16119]]

II. Summary of Amendments and Analysis of Issues and Comments

    The Commission held a duly noticed public hearing on February 2, 
2000, however, no one appeared to testify. The Commission received one 
letter of comment that generally supported the proposed amendments to 
the Over-order Price Regulation.\6\
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    \6\ Robert Wellington, Written Comments (hereinafter ``WC'') at 
1.
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    The Commission amends the definition of producer in section 1301.11 
to change the qualification condition from ``December 1996, December 
1997 and December 1998'' to ``every December since 1996.'' This 
language clarifies the future application of this condition, without 
necessitating annual rulemaking proceedings.
    The Commission also amends definitions in Part 1301 sections 
1301.9, 1301.10, 1301.14 and 1301.17 to conform to recent amendments to 
definitions in the federal market order regulations. The amendment to 
section 1301.9, the definition of handler, brings that section into 
conformity with the federal amendment to the definition of handler in 7 
CFR 1000.9 by adding certain milk brokers to the definition. The 
amendment to section 1301.10, the definition of producer-handler, 
brings that section into conformity with the definition of the same 
term in 7 CFR 1001.10, through uniform reformatting of the definition 
and changing the minimum from 300 quarts per day to 150,000 pounds per 
month. Similarly, the amendments to section 1301.14, fluid milk 
products (adds eggnog and changes descriptive terms for various 
products, such as skim milk) and section 1301.17, cooperative 
association (includes federation of cooperatives) bring those 
definitions into conformity with the reformed federal regulations at 7 
CFR 1000.15 and 1000.18, respectively.
    The amendment to Part 1304 section 1304.1, deletes eggnog from the 
list in subsection (b)(4)(iv), in conformity with the new federal 
regulation at 7 CFR 1000.40(b)(2)(iv), reclassifying eggnog from Class 
II to Class I. The amendment to Part 1305 section 1305.1 changes the 
reference to the federal Class I price from the prior regulation 
reference to Zone 1, Class 1 to the reformed reference in 7 CFR 1000.52 
to the Class I Price for Suffolk County, Massachusetts.
    The Commission amends Part 1306 sections 1306.1 and 1306.2 to 
remove the existing minimum of a daily average of 300 quarts to the new 
federal minimum of 150,000 pounds per month as codified at 7 CFR 
1000.8(d)(4).
    The amendments in Parts 1305, 1307 and 1308 sections 1305.2, 
1307.2, 1307.3, 1307.4, 1307.7, 1307.9 and 1308.1 change the prescribed 
dates for required action to conform to the new dates used under the 
federal market order reform regulations for similar required 
activities. The amendments change the dates required for: (1) 
announcing the over-order obligation (from the 5th of the month to the 
23rd); (2) issuing statements (from the 15th to the 13th); (3) for 
making payments (including adjustments and administrative assessments) 
to the producer-settlement fund (from the 18th to the 15th) and (4) for 
issuing payments (including adjustments) from the fund (from the 20th 
to the 16th).
    The amendment to Part 1307 section 1307.8 conforms to the federal 
regulation at 7 CFR 1000.78 by changing the language regarding charges 
on overdue accounts to include funds due to both the producer-
settlement fund and the administrative assessment fund and includes the 
new requirement that all interest accrues to the administrative 
assessment fund. The only comment received opposed the part of this 
amendment that provides that late charges accrue to the Commission's 
administrative fund.\7\ The Commission carefully considered the 
commenter's analysis. However, the Commission notes that the amount of 
money involved is so small as to not affect the producer price and that 
the costs to enforce late payments can be significant. Therefore, the 
Commission determines that accrual of late charges to the 
administrative fund is appropriate under all the circumstances.
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    \7\ Wellington, WC at 1.
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    The Commission also adds a new section at Part 1307 section 1307.9, 
in conformance with the federal regulation at 7 CFR 1000.90, specifying 
that if a required date falls on a weekend or holiday, the action is 
required on the next business day.

III. Summary and Explanation of Findings

    Article V, Section 12 of the Compact directs the Commission to make 
four findings of fact before an amendment of the Over-order Price 
Regulation can become effective. Each required finding is discussed 
below.

a. Whether the Public Interest Will Be Served by the Amendments to the 
Over-Order Price Regulation

    The first finding considers whether the amendments to the Compact 
Over-order Price Regulation serve the public interest. The Commission 
determines that the public interest is served by conforming the 
definitions and compliance dates in the Over-order Price Regulation 
with the definitions of the same terms and compliance dates for similar 
actions under the federal milk market order regulations to ensure 
uniformity and continuity for regulated entities in the New England 
Milk Market.
    The Commission also determines that the public interest is served 
by amending the definition of producer to specify every December since 
1996 as a condition of qualification. This amendment simply keeps the 
qualification condition current, without requiring annual rulemaking to 
update the definition.

b. The Impact on the Price Level Needed To Assure a Sufficient Price to 
Producers and an Adequate Local Supply of Milk

    The amendments to the Compact Over-order Price Regulation adopted 
in this rulemaking proceeding are related to the administration of the 
Over-order Price Regulation and do not affect the local supply of milk 
or price received by producers.

c. Whether the Major Provisions of the Order, Other Than Those Fixing 
Minimum Milk Prices, Are in the Public Interest and Are Reasonably 
Designed To Achieve the Purposes of the Order

    The Commission concludes that, for the same reasons identified in 
the first finding, the amendments adopted in this rulemaking proceeding 
are in the public interest. The Commission further concludes that the 
Over-order Price Regulation, as hereby amended, remains in the public 
interest in the manner contemplated by this finding.

d. Whether the Terms of the Proposed Amendments Are Approved by 
Producers

    The fourth finding, requires the determination of whether the 
amendment has been approved by producer referendum pursuant to Article 
V, Section 13 of the Compact. In this final rule, as in the previous 
final rules, the Commission makes this finding premised upon 
certification of the results of the producer referendum. The procedure 
for the producer referendum and certification of the results is set 
forth in 7 CFR Part 1371.
    Pursuant to 7 CFR Sec. 1371.3 and the referendum procedure 
certified by the Commission, a referendum was held during the period of 
March 10 through March 20, 2000. All producers who were producing milk 
pooled in Federal Order #1 for consumption in New

[[Page 16120]]

England, during December 1999, the representative period determined by 
the Commission, were deemed eligible to vote. Ballots were mailed to 
these producers on or before March 10, 2000 by the Federal Market Order 
#1 Market Administrator. The ballots included an official summary of 
the Commission's action. Producers were notified that, to be counted, 
their ballots had to be returned to the Commission offices by 5:00 p.m. 
on March 20, 2000. The ballots were opened and counted in the 
Commission offices on March 21, 2000 under the direction and 
supervision of Commissioner Robert Starr, designated ``Referendum 
Agent.''
    Eleven Cooperative Associations were notified of the procedures 
necessary to block vote by letter dated March 3, 2000. Cooperatives 
were required to provide prior written notice of their intention to 
block vote to all members on a form provided by the Commission, and to 
certify to the Commission that (1) timely notice was provided, and (2) 
that they were qualified under the Capper-Volstead Act. Cooperative 
Associations were further notified that the Cooperative Association 
block vote had to be received in the Commission office by 5:00 p.m. on 
March 20, 2000. Certified and notarized notification to its members of 
the Cooperative's intent to block vote or not to block vote had to be 
mailed by March 14, 2000 with notice mailed to the Commission offices 
no later than March 16, 2000.
Notice
    On March 21, 2000, the duly authorized referendum agent verified 
all ballots according to procedures and criteria established by the 
Commission. The ballots cast were reviewed and counted. A total of 3982 
ballots were mailed to eligible producers. All producer ballots and 
cooperative block vote ballots received by the Commission were opened 
and counted. Producer ballots and cooperative block vote ballots were 
verified or disqualified based on criteria established by the 
Commission, including timeliness, completeness, appearance of 
authenticity, appropriate certifications by cooperative associations 
and other steps taken to avoid duplication of ballots. Ballots 
determined by the referendum agent to be invalid were marked 
``disqualified'' with a notation as to the reason.
    Block votes cast by Cooperative Associations were then counted. 
Producer votes against their cooperative associations block vote were 
then counted for each cooperative association. These votes were 
deducted from the cooperative association's total and were counted 
appropriately. Ballots returned by cooperative members who cast votes 
in agreement with their cooperative block vote were disqualified as 
duplicative of the cooperative block vote.
    Votes of independent producers not members of any cooperative 
association were then counted.
    The referendum agent then certified the following for the ballot on 
the amendments:
    A total of 3,982 ballots were mailed to eligible producers.
    A total of 3064 ballots were returned to the Commission.
    A total of 42 ballots were disqualified--late, incomplete or 
duplicate.
    A total of 3022 ballots were verified.
    A total of 3015 verified ballots were cast in favor of the 
amendments.
    A total of 7 verified ballots were cast in opposition to the 
amendments.
    Accordingly, notice is hereby provided that of the 3022 verified 
ballots cast, 99.8%, or 3015, a minimum of two-thirds were in the 
affirmative.
    Therefore, the Commission concludes that the terms of the 
amendments are approved by producers.

IV. Required Findings of Fact

    Pursuant to Compact Article V, Section 12, the Compact Commission 
hereby finds:
    (1) That the public interest continues to be served by 
establishment of minimum milk prices to dairy farmers under Article IV, 
as hereby amended.
    (2) That the previously established level price of $16.94 (Zone 1) 
to dairy farmers under Article IV, is unaffected by these amendments, 
and will continue to assure that producers supplying the New England 
market receive a price sufficient to cover their costs of production 
and will elicit an adequate supply of milk for the inhabitants of the 
regulated area and for manufacturing purposes.
    (3) That the major provisions of the order, other than those fixing 
minimum milk prices, are and continue to be in the public interest and 
are reasonably designed to achieve the purposes of the order.
    (4) That the terms of the proposed amendments are approved by 
producers pursuant to a producer referendum required by Article V, 
Section 13.

List of Subjects in 7 CFR Parts 1301, 1304, 1305, 1306, 1307 and 
1308

    Milk Price support programs.

Codification in Code of Federal Regulations

    For reasons set forth in the preamble, the Northeast Dairy Compact 
Commission amends 7 CFR Parts 1301, 1304, 1305, 1306, 1307 and 1308 as 
follows:

PART 1301--DEFINITIONS

    1. The authority citation for Part 1301 continues to read as 
follows:

    Authority: 7 U.S.C. 7256.


    2. Amend Sec. 1301.9 to revise paragraph (e) to read as follows:


Sec. 1301.9  Handler.

    Handler means:
* * * * *
    (e) Any person who does not operate a plant but who engages in the 
business of receiving fluid milk products for resale and distributes to 
retail or wholesale outlets packaged fluid milk products received from 
any plant described in paragraph (a), (b) or (c) of this section. Any 
person who as a broker negotiates a purchase or sale of fluid milk 
products or fluid cream products from or to any pool, partially 
regulated or nonpool plant, and any person who by purchase or direction 
causes milk of producers to be picked up at the farm and/or moved to a 
plant. Persons who qualify as handlers only under this paragraph are 
not subject to the payment provisions of Secs. 1307.3 and 1308.1.

    3. Revise Sec. 1301.10 to read as follows:


Sec. 1301.10  Producer-handler.

    Producer-handler means a person who:
    (a) Operates a dairy farm and a distributing plant from which there 
is monthly route disposition in the regulated area during the month;
    (b) Receives milk solely from own farm production or receives milk 
that is fully subject to the pricing and pooling provisions of any 
Federal order;
    (c) Receives at its plant or acquires for route disposition no more 
than 150,000 pounds of fluid milk products from handlers fully 
regulated under any Federal order. This limitation shall not apply if 
the producer-handler's own farm production is less than 150,000 pounds 
during the month;
    (d) Disposes of no other source milk as Class I milk except by 
increasing the nonfat milk solids content of the fluid milk products; 
and
    (e) Provides proof satisfactory to the compact commission that the 
care and management of the dairy animals and other resources necessary 
to produce all Class I milk handled (excluding receipts from handlers 
fully regulated under any Federal order) and the processing and 
packaging operations are the producer-handler's own enterprise and at 
its own risk.

[[Page 16121]]


    4. Amend section 1301.11 to revise paragraphs (b) introductory text 
and (b) (1) to read as follows:


Sec. 1301.11  Producer.

    Producer means:
* * * * *
    (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 in every December since 1996, 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, provided that the total amount of milk at a pool plant eligible 
to qualify producers who did not qualify in every December since 1996, 
shall not exceed the total bulk receipts of fluid milk products less:
    (1) Producers 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 every December since 1996;
* * * * *

    5. Revise section 1301.14 to read as follows:


Sec. 1301.14  Fluid milk product.

    (a) Except as provided in paragraph (b) of this section fluid milk 
product means any milk products in fluid or frozen form containing less 
than nine percent butterfat, that are intended to be used as beverages. 
Such products include, but are not limited to: Milk, fat-free milk, low 
fat milk, light milk, reduced fat milk, milk drinks, eggnog and 
cultured buttermilk, including any such beverage products that are 
flavored, cultured, modified with added nonfat milk solids, sterilized, 
concentrated or reconstituted. As used in this Part, the term 
concentrated milk means milk that contains not less than 25.5 percent, 
and not more than 50 percent, total milk solids.
    (b) The term fluid milk product shall not include:
    (1) Plain or sweetened evaporated milk/skim milk, sweetened 
condensed milk /skim milk, formulas especially prepared for infant 
feeding or dietary use (meal replacement) that are packaged in 
hermetically-sealed containers, any product that contains by weight 
less than 6.5 percent nonfat milk solids, and whey; and
    (2) The quantity of skim milk equivalent in any modified product 
specified in paragraph (a) of this section that is greater than an 
equal volume of an unmodified product of the same nature and butterfat 
content.

    6. Revise section 1301.17 to read as follows:


Sec. 1301.17  Cooperative association.

    Cooperative association means any cooperative marketing association 
of producers which the Secretary of Agriculture of the United States 
determines is qualified under the provisions of the Capper-Volstead 
Act, has full authority in the sale of milk of its members and is 
engaged in marketing milk or milk products for its members. A 
federation of two or more cooperatives incorporated under the laws of 
any state will be considered a cooperative association if all member 
cooperatives meet the requirements of this section.

PART 1304--CLASSIFICATION OF MILK

    1. The authority citation for Part 1304 continues to read as 
follows:

    Authority: 7 U.S.C. 7256.

    2. Amend section 1304.1 to revise paragraph (b)(4)(iv) to read as 
follows:


Sec. 1304.1  Classification of milk.

* * * * *
    (b) * * *
    (4) * * *
    (iv) Custards, puddings, pancake mixes, buttermilk biscuit mixes, 
coatings, batter and similar products;
* * * * *

PART 1305--CLASS PRICE

    1. The authority citation for Part 1305 continues to read as 
follows:

    Authority: 7 U.S.C. 7256.

    2. Amend section 1305.1 to revise paragraph (b)(2) to read as 
follows:


Sec. 1305.1  Compact over-order class I price and compact over-order 
obligation.

* * * * *
    (b) * * *
    (2) Deduct Class I Price for Suffolk County, Massachusetts.
* * * * *

    3. Revise section 1305.2 to read as follows:


Sec. 1305.2  Announcement of compact over-order class I price and 
compact over-order obligation.

    The compact commission shall announce publicly on or before the 
23rd day of each month the Class I over-order price and the compact 
over-order obligation for the following month.

PART 1306--COMPACT OVER-ORDER PRODUCER PRICE

    1. The authority citation for Part 1306 continues to read as 
follows:

    Authority: 7 U.S.C. 7256.

    2. Revise section 1306.1 to read as follows:


Sec. 1306.1  Handler's value of milk for computing basic over-order 
producer price.

    For the purpose of computing the basic over-order producer price, 
the compact commission shall determine for each month the value of milk 
of each handler with respect to each of the handler's pool plants and 
of each handler described in Sec. 1301.9(d) of this chapter with 
respect to milk that was not received at a pool plant, as directed in 
this section. Any pool plant that does not exceed 150,000 pounds of 
disposition in the compact regulated area in the month shall not be 
subject to the compact over-order obligation. The total assessment for 
each handler is to be calculated by multiplying the pounds of Class I 
fluid milk products as determined pursuant to Sec. 1304.1(a) of this 
chapter by the compact over-order obligation.

    3. Revise Sec. 1306.2 to read as follows:


Sec. 1306.2  Partially regulated plant operator's value of milk for 
computing basic over-order producer price.

    For the purpose of computing the basic over-order producer price, 
the compact commission shall determine for each month the value of milk 
disposition in the regulated area by the operator of a partially 
regulated plant as directed in this section. Any partially regulated 
plant that does not exceed 150,000 of disposition in the compact 
regulated area in the month shall not be subject to the compact over-
order obligation. The total assessment for each handler is to be 
calculated by multiplying the pounds of Class I fluid milk products as 
determined pursuant to Sec. 1304.1(a) of this chapter by the compact 
over-order obligation.

PART 1307--PAYMENTS FOR MILK

    1. The authority citation for Part 1307 continues to read as 
follows:

    Authority: 7 U.S.C. 7256.

    2. Revise the introductory text of Sec. 1307.2 to read as follows:


Sec. 1307.2  Handlers' producer-settlement fund debits and credits.

    On or before the 13th day after the end of the month, the compact

[[Page 16122]]

commission shall render a statement to each handler showing the amount 
of the handler's producer-settlement fund debit or credit, as 
calculated in this section.
* * * * *

    3. Revise 1307.3 to read as follows:


Sec. 1307.3  Payments to and from the producer-settlement fund.

    (a) On or before the 15th day after the end of the month, each 
handler shall pay to the compact commission the handler's producer-
settlement fund debit for the month as determined under Sec. 1307.2(a).
    (b) On or before the 16th day after the end of the month, the 
compact commission shall pay to each handler the handler's producer-
settlement fund credit for the month as determined under Sec. 
1307.2(b). If the unobligated balance in the producer-settlement fund 
is insufficient to make such payments, the compact commission shall 
reduce uniformly such payments and shall complete them as soon as the 
funds are available.

    4. Revise section 1307.5 paragraph (a) to read as follows:


Sec. 1307.5  Payments to producers.

    (a) For milk received during the month, payment shall be made so 
that it is received by each producer no later than the day after the 
payment date required in section 1307.3(b). Each handler shall make 
payment to each producer for the milk received from him during the 
month at not less than the basic over-order producer price per 
hundredweight computer under Sec. 1306.3. If the handler has not 
received full payment for the compact commission under Sec. 1307.3(b) 
by the date payments are due under this paragraph, he may reduce pro 
rata his payments to producers by an amount not to exceed such 
underpayment. Such payments shall be completed after receipt of the 
balance due from the compact commission by the next following date for 
making payments under this paragraph.
* * * * *

    5. Revise section 1307.7 to read as follows:


Sec. 1307.7  Adjustment of accounts.

    (a) Whenever the compact commission verification of a handler's 
reports or payments discloses an error in payments to or from the 
compact commission under Sec. 1307.3 or Sec. 1308.1, the compact 
commission shall promptly issue to the handler a charge bill or a 
credit, as the case may be, for the amount of the error. Adjustment 
charge bills issued during the period beginning with the 10th day of 
the prior month and ending with the 9th day of the current month shall 
be payable by the handler to the compact commission on or before the 
15th day of the current month. Adjustment credits issued during that 
period shall be payable by the compact commission to the handler on or 
before the 16th day of the current month.
    (b) Whenever the compact commission's verification of a handler's 
payments discloses payment to a producer or a cooperative association 
of an amount less than is required by Sec. 1307.4, the handler shall 
make payment of the balance due the producer not later than the 16th 
day after the end of the month in which the handler is notified of the 
deficiency.

    6. Revise section 1307.8 to read as follows:


Sec. 1307.8  Charges on overdue accounts.

    Any unpaid obligation due the compact commission from a handler 
pursuant to the provisions of 7 CFR parts 1307 and 1308 shall be 
increased 1.0 percent each month beginning with the day following the 
date such obligation was due under the regulation. Any remaining amount 
due shall be increased at the same rate on the corresponding day of 
each succeeding month until paid. The amounts payable pursuant to this 
section shall be computed monthly on each unpaid obligation and shall 
include any unpaid charges previously computed pursuant to this 
section. The late charges shall accrue to the administrative assessment 
fund. For the purpose of this section, any obligation that was 
determined at a date later than prescribed by 7 CFR parts 1307 and 1308 
because of a handler's failure to submit a report to the compact 
commission when due shall be considered to have been payable by the 
date it would have been due if the report had been filed when due.

    7. Add a new section 1307.9 to read as follows:


Sec. 1307.9  Dates.

    If a date required for payment contained in 7 CFR parts 1307 and 
1308 falls on a Saturday, Sunday, or national holiday, such payment 
will be due on the next day that the compact commission office is open 
for public business.

PART 1308--ADMINISTRATIVE ASSESSMENT

    1. The authority citation for Part 1308 continues to read as 
follows:

    Authority: 7 U.S.C. 7256.


    2. Revise the introductory text of section 1308.1 to read as 
follows:


Sec. 1308.1  Assessment for pricing regulations administration.

    On or before the 15th day after the end of the month, each handler 
shall pay to the compact commission his pro rata share of the expense 
of administration of this pricing regulation. The payment shall be at 
the rate of 3.2 cents per hundredweight. The payment shall apply to:
* * * * *

    Dated: March 21, 2000.
Kenneth M. Becker,
Executive Director.
[FR Doc. 00-7413 Filed 3-24-00; 8:45 am]
BILLING CODE 1650-01-P