Over-Order Price Regulation

[Federal Register Volume 64, Number 49 (Monday, March 15, 1999)]
[Proposed Rules]
[Pages 12769-12770]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-6213]


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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. 64, No. 49 / Monday, March 15, 1999 / 
Proposed Rules

[[Page 12769]]


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NORTHEAST DAIRY COMPACT COMMISSION

7 CFR Part 1301


Over-Order Price Regulation

AGENCY: Northeast Dairy Compact Commission.

ACTION: Proposed rule; notice of hearing.

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SUMMARY: The Northeast Dairy Compact Commission proposes to extend the 
exemption from the over-order obligation for fluid milk sold in eight-
ounce containers distributed by handlers under open and competitive bid 
contracts and sold by School Food Authorities in New England through 
the operation of the Over-order Price Regulation. The present 
regulation authorizing the school milk exemption will expire at the 
conclusion of the 1998-1999 school year.

DATES: A public hearing will be held on April 7, 1999 at 9:00 a.m. 
Sworn and notarized written testimony, comments and exhibits may be 
submitted until 5:00 p.m. on April 21, 1999.

ADDRESSES: The public hearing will be held at Tuck Library, Chubb 
Auditorium, 30 Park Street, Concord, New Hampshire. Mail, or deliver, 
sworn and notarized testimony, comments and exhibits to: 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:

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.
    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, the 
Commission further amended specific provisions of the over-order price 
regulation, including the adoption of the school milk exemption 
regulation and the establishment of a reserve account for reimbursement 
to School Food Authorities.3 The current compact over-order 
price regulation is codified at 7 CFR Chapter XIII. The school milk 
exemption is codified at 7 CFR Sec. 1301.13(e).
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    \1\ 62 FR 29626 (May 30, 1997).
    \2\ 62 FR 62810 (Nov. 25, 1997).
    \3\ 63 FR 10104 (Feb. 27, 1998); 63 FR 46385 (Sept. 1, 1998); 
and 63 FR 65517 (Nov. 27, 1998).
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    The Commission proposes to extend the exemption of school milk sold 
by School Food Authorities in eight-ounce containers through the 
operation of the Over-order Price Regulation. As with the exemption for 
the 1998-1999 school year, the extension would be implemented through a 
memorandum of understanding between the Commission and the appropriate 
state agencies. Continuation of the memorandum of understanding process 
would allow the Commission and the state agencies to make any 
improvements in the implementation of the reimbursement program based 
on the experience of the current year.

Official Notice of Technical, Scientific or Other Matters

    Pursuant to the Commission regulations, 7 CFR 1361.5(g)(5), the 
Commission hereby gives public notice that it may take official notice, 
at the public hearing March 3, 1999, 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, 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.

Public Participation in Rulemaking Proceedings

    The Commission seeks and encourages oral and written testimony and 
comments from all interested persons regarding these proposed rules. 
The Commission continues to benefit from the valuable insights and 
active participation of all segments of the affected community 
including consumers, processors and producers in the development and 
administration of the Over-order Price Regulation. The Commission 
especially encourages comments from School Food Authorities and the 
handlers who supply school milk.

Date, Time and Location of the Public Hearing

    The Northeast Dairy Compact Commission will hold a public hearing 
at 9:00 a.m. on April 7, 1999 at the Tuck Library, Chubb Auditorium, 30 
Park Street, Concord, New Hampshire.

Request for Pre-filed Testimony and Written Comments

    Pursuant to the Commission rules, 7 CFR 1361.4, any person may 
participate in the rulemaking proceeding independent of the hearing 
process by submitting written comments or exhibits to the Commission. 
Comments and exhibits may be submitted at any time before 5:00 p.m. on 
April 21, 1999.
    Please note: 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 and 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 p.m. deadline, but the original must then 
be sent by ordinary mail.

[[Page 12770]]

    The Commission is requesting pre-filed testimony from any 
interested person. Pre-filed testimony must include the name, address 
and occupation of the witness 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 p.m. March 29, 1999 to insure 
distribution to Commission members prior to the public hearing.
    Pre-filed testimony, comments and exhibits should be sent to: 
Northeast Dairy Compact Commission, 34 Barre Street, Suite 2, 
Montpelier, Vermont 05602 or by facsimile to (802) 229-2028.

List of Subjects in 7 CFR Part 1301

    Milk.

Codification in Code of Federal Regulations

    For reasons set forth in the preamble, the Northeast Dairy Compact 
Commission proposes to amend 7 CFR Part 1301 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 1301.13 is amended by revising paragraph (e) to read as 
follows:


Sec. 1301.13  Exempt milk.

* * * * *
    (e) All fluid milk distributed by handlers in eight-ounce 
containers under open and competitive bid contracts for the school milk 
contract year with School Food Authorities in New England, as defined 
by 7 CFR 210.2, to the extent that the school authorities can 
demonstrate and document that the costs of such milk have been 
increased by operation of the Compact over-order obligation. In no 
event shall such increase exceed the amount of the Compact over-order 
obligation. Documentation of increased costs shall be in accordance 
with a memorandum of understanding entered into between the Compact 
Commission and the appropriate state agencies for the school milk 
contract year. The memorandum of understanding shall include provisions 
for certification by supplying vendor/processors that their bid and 
contract cost structures do in fact incorporate the over-order 
obligation, in whole or in part, and provisions for defining the 
components of cost structure to be provided in support of such 
certification. The memorandum shall also establish the procedure for 
providing reimbursement to the school food authorities, including the 
scheduling of payments and the amount to be escrowed by the Commission 
to account for such payments.

    Dated: March 9, 1999.
Kenneth M. Becker,
Executive Director.
[FR Doc. 99-6213 Filed 3-12-99; 8:45 am]
BILLING CODE 1650-01-P