Clear Title Technical Changes, 56338-56344 [06-8268]
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Federal Register / Vol. 71, No. 187 / Wednesday, September 27, 2006 / Rules and Regulations
PART 301—DOMESTIC QUARANTINE
NOTICES
Accordingly, we are adopting as a
final rule, without change, the interim
rule that amended 7 CFR part 301 and
that was published at 71 FR 35491–
35493 on June 21, 2006.
I
Done in Washington, DC, this 21st day of
September 2006.
Elizabeth E. Gaston,
Acting Administrator, Animal and Plant
Health Inspection Service.
[FR Doc. E6–15899 Filed 9–26–06; 8:45 am]
BILLING CODE 3410–34–P
DEPARTMENT OF AGRICULTURE
Animal and Plant Health Inspection
Service
9 CFR Part 93
[Docket No. APHIS–2006–0107]
Spring Viremia of Carp; Import
Restrictions on Certain Live Fish,
Fertilized Eggs, and Gametes
Animal and Plant Health
Inspection Service, USDA.
ACTION: Interim rule; delay of effective
date.
AGENCY:
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SUMMARY: We recently amended the
regulations to restrict the importation
into the United States of live fish,
fertilized eggs, and gametes of fish
species that are susceptible to spring
viremia of carp, a serious contagious
viral disease of carp. That interim rule
was scheduled to become effective on
September 29, 2006. We are delaying
that effective date by 30 days. This
delay is needed to give importers and
foreign exporters additional time to
meet requirements of the rule.
DATES: The effective date for the interim
rule amending 9 CFR part 93, published
at 71 FR 51429, August 30, 2006, is
delayed until October 30, 2006.
FOR FURTHER INFORMATION CONTACT: Dr.
Peter L. Merrill, Aquaculture Specialist,
National Center for Import and Export,
VS, APHIS, 4700 River Road Unit 39,
Riverdale, MD 20737–1231; (301) 734–
0649; or Dr. Jill B. Rolland, Fishery
Biologist, National Center for Animal
Health Programs, VS, APHIS, 4700 River
Road Unit 46, Riverdale, MD 20737–
1231; (301) 734–7727.
SUPPLEMENTARY INFORMATION:
Background
Spring viremia of carp (SVC) is a
disease of certain species of finfish,
caused by an eponymous rhabdovirus.
The following species are considered
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susceptible to SVC: Common carp,
including koi (Cyprinus carpio), grass
carp (Ctenopharyngodon idellus), silver
carp (Hypophthalmichthys molitrix),
bighead carp (Aristichthys nobilis),
Crucian carp (Carassius carassius),
goldfish (Carassius auratus), tench
(Tinca tinca), and sheatfish (Silurus
glanis). SVC was first reported in
Yugoslavia in 1969 and has since spread
to other European countries as well as
Asia. SVC is considered extremely
contagious, and there are currently no
U.S.-approved vaccines or treatments
for the virus.
On August 30, 2006, we published a
final rule in the Federal Register (71 FR
51429–51437) amending 9 CFR part 93
by establishing regulations to restrict the
importation into the United States of
live fish, fertilized eggs, and gametes of
fish species that are susceptible to
spring viremia of carp, a serious
contagious viral disease of carp. Under
that rule, importers of SVC-susceptible
species must obtain an import permit
and a health certificate from the
shipment’s region of origin certifying
that the live fish, fertilized eggs, or
gametes originated in an SVC-free
region. This certification must be
supported by ongoing SVC surveillance
for 2 years conducted under specific
conditions. In addition, live fish,
fertlized eggs, and gametes of SVCsusceptible species will be subject to
other restrictions that they have not
been in the past, such as having to be
imported through designated ports of
entry and meeting containment
requirements for shipments that are in
transit through the United States.
Importers will also be subject to user
fees for obtaining import permits and
port of entry inspections. Live cultures
of SVC virus, preserved SVC virus viral
RNA or DNA, tissue samples containing
viable SVC virus, or other specimens
intended for diagnostic or research
purposes and which contain viable SVC
virus will also be allowed importation
only under permit in accordance with 9
CFR part 122.
Delay in Effective Date
Since the rule’s publication, APHIS
has received requests from U.S.
importers and foreign exporters of these
fish species (which include koi and
goldfish, two economically important
commodities) as well as from a number
of foreign government authorities
seeking an additional period of time in
which to prepare to meet these
requirements. In response, we are
delaying the effective date until
October 30, 2006.
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Authority: 7 U.S.C. 1622 and 8301–8317;
21 U.S.C. 136 and 136a; 31 U.S.C. 9701; 7
CFR 2.22, 2.80, and 371.4.
Done in Washington, DC, this 22nd day of
September 2006.
W. Ron DeHaven,
Administrator, Animal and Plant Health
Inspection Service.
[FR Doc. 06–8322 Filed 9–26–06; 8:45 am]
BILLING CODE 3410–34–P
DEPARTMENT OF AGRICULTURE
Grain Inspection, Packers and
Stockyards Administration
9 CFR Part 205
RIN 0580–AA93
Clear Title Technical Changes
Grain Inspection, Packers and
Stockyards Administration, USDA.
ACTION: Interim rule.
AGENCY:
SUMMARY: We are issuing this interim
rule to allow States to use an approved
unique identifier as an alternative to a
social security number or taxpayer
identification number in their systems
providing clear title information. We are
making additional changes to the clear
title regulations as required by
amendments made by the 2002 Farm
Bill. The primary effect of these changes
will be to protect the identity of the
producers of farm products. Secondary
effects of the technical changes will be
to improve the operation of the program
and provide the States with more
flexibility.
DATES: Effective Date: September 27,
2006.
Comment Date: We will consider
comments that we receive by November
27, 2006.
ADDRESSES: We invite you to submit
comments on this rule. You may submit
comments by any of the following
methods:
• E-Mail: Send comments via
electronic mail to
comments.gipsa@usda.gov.
• Mail: Send hardcopy written
comments to Tess Butler, GIPSA, USDA,
1400 Independence Avenue, SW., Room
1647–S, Washington, DC 20250–3604.
• Fax: Send comments by facsimile
transmission to: (202) 690–2755.
• Hand Delivery or Courier: Deliver
comments to: Tess Butler, GIPSA,
USDA, 1400 Independence Avenue,
SW., Room 1647–S, Washington, DC
20250–3604.
• Federal eRulemaking Portal: Go to
https://www.regulation.gov. Follow the
on-line instruction for submitting
comments.
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To read comments: All comments
received will be made available for
public review at the above address
during regular business hours (7 CFR
1.27(b)).
FOR FURTHER INFORMATION CONTACT: Jens
Knutson, Economist, Industry Analysis
Division, USDA GIPSA, (202) 720–3128
or e-mail at Jens.N.Knutson@usda.gov.
SUPPLEMENTARY INFORMATION: The Grain
Inspection, Packers and Stockyards
Administration (GIPSA) administers the
clear title program for the Secretary of
Agriculture. The clear title program is
authorized by Section 1324 of the Food
Security Act of 1985 (7 U.S.C. 1631) and
requires that States implementing a
central filing system for notification to
the public of liens on farm products
must have such systems certified by the
Secretary of Agriculture. When someone
purchases a farm product in one of the
19 states that currently have certified
central filing systems, they can check
for liens against that farm product
through the State’s central filing system.
USDA, through GIPSA’s Packers and
Stockyards Program, certifies the State’s
Central Filing System.
Our regulations in 9 CFR part 205
(regulations) provide guidance to the
States about the requirements for their
clear title program and requirements for
approval of their systems.
Changes to the Regulations
This interim final rule encompasses
several changes to our clear title
regulations that are mandated by
changes to the clear title authorizing
legislation. We discuss in the following
section changes to authorizing
legislation that require changes to our
current clear title regulations and then
identify the regulatory changes to be
made. The changes are presented by
topic rather than by section. Then, at the
end of this document, we present the
complete changes to 9 CFR part 205,
Clear Title—Protection for Purchasers of
Farm Products, which this interim rule
implements.
Section 776 of Division A, Title VII,
Public Law 108–447, amended Section
1324(c) of the Food Security Act of 1985
(7 U.S.C. 1631(c)) for the privacy
protection of certain sellers of farm
products to allow States to use ‘‘an other
approved unique identifier’’ as an
alternative to a social security number
or Internal Revenue Service (IRS)
taxpayer identification number in their
systems providing clear title
information. The amendment further
specified that the term ‘‘approved
unique identifier’’ means ‘‘a number,
combination of numbers and letters, or
other identifier selected by the Secretary
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of State using a selection system or
method approved by the Secretary of
Agriculture.’’
One of the requirements in our
current regulations is that the social
security number or an IRS taxpayer
identification number of the debtor
must be provided. Sections 205.103 and
205.105 require (1) the social security
number or IRS taxpayer identification
number be included as necessary
information on an effective financing
statement (EFS) filed with the State and
(2) the master list developed by the
State must be able to be delivered to a
registrant in numerical order by social
security number or IRS taxpayer
identification number.
We are revising the regulations to
implement the addition of ‘‘an other
approved unique identifier’’ made in the
authorizing legislation. We considered
the option of specifying what an
approved unique identifier would be,
but decided to allow each State the
flexibility to request approval of the
method or system used to select a
unique identifier that will work best in
its clear title program.
We have been in contact in recent
months with several States interested in
amending their clear title systems and
believe sufficient interest exists in
States’ implementation of the
legislatively-mandated changes to the
clear title program—including the use of
an approved unique identifier as an
alternative to a social security or IRS
taxpayer identification number in a
State’s EFS and clear title master list—
to warrant this interim final rule at this
time. If States opt to discontinue the
publication of social security numbers
as a means of identification in States’
clear title master lists, the resulting
increased privacy protection will benefit
individuals identified in those master
lists. Discontinuing the publication of
social security numbers is an increasing
practice in regulatory and business
transactions throughout the United
States.
We are making the following changes
in the clear title regulations to allow the
use of an approved unique identifier in
the certified State systems providing
clear title information:
• In section 205.1, Definitions, we are
adding a definition for ‘‘approved
unique identifier’’.
• In section 205.101, Certification—
request and processing, we are adding a
new paragraph (b)(11) to show what the
State will be required to provide when
applying to us for certification of its
central filing system when it will use an
approved unique identifier.
• In section 205.103, EFS—minimum
information, we are revising paragraph
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(a)(5) to allow either a social security
number, IRS taxpayer identification
number, or other approved unique
identifier of each debtor be included in
the minimum information necessary on
an EFS.
• In section 205.105, Master list and
portion thereof distributed to
registrants—format, we are revising
paragraph (a) to allow an approved
unique identifier to be used in place of
a social security number or IRS taxpayer
identification number for the
numerically ordered information that
the State’s system must report.
Revisions to the regulations are also
needed to correspond to the 2002 Farm
Bill amendments. The 2002 Farm Bill
amendments to Section 1324 of the
Food Security Act relate to electronic
filing, EFS content, and Central Filing
System procedure. The intent of these
amendments was to relax some
signature requirements, clarify terms,
and facilitate electronic filing of lenders’
security interests. These technical
modifications will improve the
operation of the program and provide
the States with more flexibility.
Specifically, the legislation:
(1) Allows the non-electronically
reproduced copy of the EFS to be
signed, authorized, or otherwise
authenticated by the debtor and filed by
the secured party in place of the
requirement for the statement to be
signed by both the debtor and the
secured party and filed by the secured
party;
(2) Allows the written amendments to
the EFS to be signed, authorized, or
otherwise authenticated by the debtor in
place of the requirement for the
statement to be signed and filed;
(3) Allows notices that an EFS has
lapsed to be signed, authorized, or
otherwise authenticated by the secured
party in place of the requirement for the
notice to be signed by the secured party;
(4) Allows the EFS to identify the
county or parish in which the farm
product is produced or located, instead
of requiring a reasonable description of
the property;
(5) Allows the written notice of the
security interest to identify the county
or parish in which the farm product is
produced or located, instead of
requiring a reasonable description of the
property;
(6) Allows the written amendments to
the security interest notice to be signed,
authorized, or otherwise authenticated
in place of the requirement for the
amendment to be signed;
(7) Allows notice of lapse of the
written notice of the security interest to
be signed, authorized, or otherwise
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authenticated in place of the
requirement for the notice to be signed;
(8) Allows the notice of security
interest to the commission merchant or
selling agent to identify the county or
parish in which the farm product is
produced or located, instead of
requiring a reasonable description of the
property;
(9) Allows the written amendments to
the notice of security interest to the
commission merchant or selling agent to
be signed, authorized, or otherwise
authenticated in place of the
requirement for the statement to be
signed; and
(10) Allows the notice that the
statement related to security interest has
lapsed to be signed, authorized, or
otherwise authenticated by the secured
party in place of the requirement for the
statement to be signed by the secured
party.
In addition, the following
miscellaneous nonsubstantive changes
were made to the legislation:
a. Redesignated subsections after
deleting a subsection,
b. inserted ‘‘contains’’ to start two
subsections,
c. changed references to
‘‘subparagraphs’’ to ‘‘subsections,’’
d. replaced ‘‘; and’’ with a period in
a final subsection, and
e. inserted the word ‘‘and’’ at the end
of the next to the last subsections.
Our regulations currently include
requirements about the information of
the location of farm products related to
the county or parish in which the farm
product is produced and require a
reasonable description of the property.
We are making the following changes in
the clear title regulations to correspond
to the changes made in the legislation in
reference to the location of the farm
products:
• In section 205.103, EFS—minimum
information, we are revising paragraph
(a)(3) to allow the locations of the farm
product to be included in the minimum
information necessary on an EFS to be
an identification of each county or
parish in the same State where the farm
product is produced or located.
• In section 205.104, Registration of
buyer, commission merchant, or selling
agency—minimum information, we are
revising paragraph (a)(3) by adding the
words ‘‘or located’’ after the word
‘‘produced.’’
• In section 205.105, Master list and
portion thereof distributed to
registrants—format, we are revising
paragraph (a) to allow the State’s system
to deliver information for any farm
product produced or located in any
county or parish of the State.
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• In section 205.207, ‘‘Amount’’ and
‘‘reasonable description of the
property,’’ we are revising the heading
to refer to the county or parish in which
the property is located instead of a
reasonable description of the property.
• In section 205.207, ‘‘Amount’’ and
‘‘county or parish,’’ we are revising
paragraph (a) to specify that the county
or parish in which the product is
located or produced does not need to be
shown on every EFS and master list
entry.
• In section 205.207, ‘‘Amount’’ and
‘‘county or parish,’’ we are revising
paragraph (c) to allow the option for any
EFS and master list entry to identify
each county or parish in which the farm
product is produced or located.
• In section 205.207, ‘‘Amount’’ and
‘‘county or parish,’’ we are revising
paragraph (e) to describe what
additional information about the
amount is sufficient.
• In section 205.210, Effect of EFS
outside State in which filed, we are
revising paragraph (b) to expand the
ability to file an EFS to cover products
in the system for the State in which it
is produced or located.
Currently, the regulations require the
secured party and debtor to sign an EFS
filed on paper with the State and EFS
amendments filed on paper documents.
We are making the following changes in
the clear title regulations to correspond
to changes made in the legislation in
reference to allowing alternatives to
signatures and other changes related to
options to providing information on
paper, such as electronic information:
• In section 205.202, ‘‘Effective
financing statement’’ or EFS, we are
revising paragraph (b) to require an EFS
to be signed, authorized, or otherwise
authenticated only by the debtor.
• In section 205.209, Amendment or
continuation of EFS, we are revising
paragraph (c) to specify that if an
amendment is filed on a paper
document that it must be signed,
authorized, or otherwise authenticated
only by the debtor.
• In section 205.209, Amendment or
continuation of EFS, we are revising
paragraph (d) to specify that a
continuation statement to continue the
effective period of an EFS for 5 years
need not be signed, authorized, or
otherwise authenticated by the debtor.
Our current regulations refer to
sections of the authorizing legislation
that were renumbered in the 2002 Farm
Bill amendments. We are making the
following corrections in the clear title
regulations to correspond to changes
made in the legislation:
• In sections 205.106, 205.206, and
205.207, we are correcting the
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references to subsection (c)(4)(D)(iv) to
refer to subsection (c)(4)(C)(iv).
• In section 205.107, we are
correcting the reference to subsection
(c)(4)(F) to refer to subsection (c)(4)(E).
• In section 205.203, we are
correcting the reference to subsection
(c)(4)(D) to refer to subsection (c)(4)(C).
• In section 205.205, we are
correcting both of the references to
subsection (c)(4)(H) to refer to
subsection (c)(4)(G).
• In section 205.209, we are
correcting both of the references to
subsection (c)(4)(E) to refer to
subsection (c)(4)(D).
We are also making several
nonsubstantive changes to our
regulations. In keeping with the
guidance the Office of the Federal
Register provides for listing definitions,
we are deleting the lettered paragraph
designations for the definitions in
section 205.1 and rearranging the
definitions in alphabetical order of the
terms being defined.
Information collection activities,
which include recordkeeping, reporting,
and third party disclosure, are reviewed
and approved by the Office of
Management and Budget (OMB). We
have approval from OMB for the
information collection activities related
to the clear title program; this approval
was granted under OMB control number
0580–0016. OMB grants information
collection approval for no more than 3
years at a time; the current approval for
the clear title program expires on
November 30, 2007. To comply with the
requirement to display the control
numbers assigned by OMB approving
the information collection activities, we
are adding the control number at the
end of sections 205.101, 205.102,
205.103, 205.104, 205.105, 205.106,
205.107, 205.202, 205.203, 205.204,
205.206, 205.207, 205.208, 205.209, and
205.213 for which the information
collection activities have been
approved.
Section 1324 of the Food Security Act
of 1985 is the authorizing legislation for
the clear title program. Throughout the
regulations in 9 CFR part 205 the term
‘‘the Section’’ is used, as defined in 9
CFR 205.1, to mean Section 1324 of the
Food Security Act of 1985. In the
regulation in 9 CFR 205.101 (e), the term
‘‘the Act’’ is used, without having been
defined or any other clarifying
information. For consistency with the
rest of the clear title regulations, we are
replacing the term ‘‘the Act’’ with the
term ‘‘the Section’’ both times it appears
in 9 CFR 205.101 (e).
Finally, we are making minor
editorial corrections in sections 205.101
and 205.206. In section 205.101, we are
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(1) inserting a serial comma in the list
in paragraph (11)(ii) and (2) correcting
the reference to the Agency and program
in paragraph (c). In section 205.206, we
are removing an unnecessary comma.
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Interim Rule
We are issuing an interim rule with
request for comments rather than a
proposed rule because the Federal
statutory language governing the
operation of States’ clear title programs,
and hence GIPSA’s certification of these
programs, has changed, and GIPSA’s
clear title regulations must reflect these
statutory changes. Further, there is a
strong public interest in issuing this rule
as an interim rule. Several States have
contacted GIPSA in recent months with
requests to approve amendments to
their clear title programs that reflect
some, if not all, of the statutory changes
governing the operation of the clear title
program. GIPSA has approved all such
State requests to amend their clear title
requirements if the amendments adhere
to the amended statutory language
governing clear title programs.
Additionally, GIPSA believes the
regulatory changes in this interim rule
are in the public interest to the extent
they reduce the possibility of identity
theft by allowing the use of approved
unique identifiers in lieu of social
security numbers or IRS taxpayer
identification numbers in States’
published clear title master lists. The
regulatory changes are also in the public
interest in that they facilitate timelier
and less restrictive operation of States’
clear title programs.
Executive Order 12866 and Regulatory
Flexibility Act
The Office of Management and Budget
(OMB) designated this interim rule as
not significant for the purposes of
Executive Order 12866. This interim
rule changes GIPSA’s clear title
regulations by allowing the use of
approved unique identifiers in place of
the former requirement that States use
debtors’ social security numbers or IRS
taxpayer identification numbers. The
interim rule also makes changes to the
clear title regulations as required by
amendments made by the 2002 Farm
Bill. These Farm Bill technical changes
to the clear title program (1) facilitate
electronic transmission of lien notices
in States that have adopted central filing
systems for farm products by no longer
requiring signatures of the secured party
and debtor, (2) alter the required
description of products by allowing
notices to indicate where a product is
produced or located rather than only
where it is produced, and (3)
incorporate minor editorial changes.
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The parties primarily affected by the
changes are producers and purchasers of
farm products, State Secretaries of State
in those States operating GIPSAcertified clear title central filing
systems, and lending institutions in
States or operating in States that have
GIPSA-certified clear title central filing
systems. There are 19 States currently
operating clear title central filing
systems certified by GIPSA. Some of
these States’ clear title central filing
systems cover all farm products
produced in the State, while other
State’s systems cover only certain farm
products. A listing of the States with
GIPSA-certified clear title certified
central filing systems is available
through the Internet on the GIPSA Web
site (go to https://www.gipsa/usda/gov,
click on ‘‘Learn About Clear Title Farm
Products,’’ go to‘‘Regulations Under the
Food Security Act’’at the bottom of the
page and then click on the highlighted
‘‘Clear Title Notices’’). Farm products
covered by a State’s clear title central
filing system are also identified through
the GIPSA Web site.
This interim rule’s most significant
benefit is enhanced protection of the
personal identities of debtors, primarily
producers of farm products, whose
social security numbers or, if they are
incorporated as a business, IRS taxpayer
identification numbers are now
provided on States’ master lists. These
master lists, whose purpose is to
provide buyers of farm products the
ability to check for liens against the
farm product the buyer is interested in,
are made available to the public in
different ways by different States. By
providing States the alternative of
identifying debtors by an approved
unique identifier other than by social
security number or IRS taxpayer
identification number, GIPSA believes
this interim rule mitigates the risk of
identity theft.
The producers of farm products,
generally the debtors in a State’s central
filing system, and lenders will also
benefit from the added flexibility of not
having to sign an EFS and related
documents, thus facilitating their ability
to file these documents. The ability to
authorize or otherwise authenticate the
EFS may also save them time and
money in reproduction and delivery
expenses. This interim rule’s revision of
some current signature requirements,
which will enhance a lender’s electronic
filing of security interests, and the
interim rule’s simplification of the
description of the location of the farm
product should also enhance the
timeliness and effectiveness of both a
State’s operation of, and a farm product
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56341
buyer’s use of, a State’s GIPSA-certified
clear title central filing system.
Costs to implement this interim rule’s
changes will fall primarily on State
Departments of State that maintain
GIPSA-certified clear title central filing
systems. Costs associated with
implementing the changes specified in
this interim rule involve the States’
development of unique identifiers,
changing how debtor’s and lender’s
documents can be submitted to the
States, and approval by GIPSA of these
modified clear title central filing
systems if the changes take the form of
amendments to a GIPSA-certified clear
title central filing system. If the changes
result in a State developing a new
central filing system, that system will
have to be certified by GIPSA. We
believe most State changes will come to
GIPSA as requests for amendments to
existing central filing systems. Given the
variety of State-specific systems, it is
difficult to estimate the cost of these
changes, but we expect each State that
decides to implement changes will do
so in the most cost effective way for its
system. State Departments of State are
not classified as small entities.
Lenders to producers of farm products
may experience some costs, which
GIPSA anticipates should be relatively
small in those instances where they do
arise, in converting their systems to
accommodate a State’s choice to use
approved unique identifiers as an
alternative to social security numbers.
We do not know how many lenders
might be affected by these changes, and
have no reason to believe that small
lenders will be unduly affected by them
relative to larger lenders. The Small
Business Administration (SBA)
identifies small business size standards
for business entities grouped according
to the North American Industry
Classification System (NAICS) codes,
and has identified small business
lending institutions for commercial
banking (NAICS subsector 445) as those
entities with assets of $165 million or
less. Small business consumer lending
and mortgage and non-mortgage loan
brokers (NAICS 522291 and 522310,
respectively) have assets of $6.5 million
or less. GIPSA believes the costs to
lenders to accommodate a State?s choice
to use approved unique identifiers,
whatever they might be, will be offset by
the lenders’ cost and time savings
associated with changed signature
requirements that facilitate timelier and
more efficient transmission of an EFS.
Producers of farm products and
buyers of farm products should
experience no additional costs
associated with this interim rule. The
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Federal Register / Vol. 71, No. 187 / Wednesday, September 27, 2006 / Rules and Regulations
majority of these producers and buyers
of farm products are small entities.
The SBA small business size
standards vary for producers of farm
products, based on the products, but for
most agricultural producers the small
business threshold is $0.75 million in
annual receipts for crop and animal
production (NAICS 111110—112990).
The 2002 Agricultural Census reported
2,100,309 farms had annual sales of
farm products totaling less than $1
million, which is the census’ closest
sales category to SBA’s definition of
small business producers of farm
products having annual receipts less
than $0.75 million. These small
business farms accounted for 98 percent
of all farms reported in the census.
Many buyers of farm products will be
the same producers discussed above, the
majority of whom SBA defines as small
entities. SBA’s small business size
standards for other buyers of farm
products vary depending on industry
sector, and within sectors on the type of
company. For example, SBA’s small
business threshold for food
manufacturers (NAICS subsector 311)
can be 500, 750, or 1,000 employees,
depending on the type of food
manufacturer. SBA’s small business
threshold for merchant wholesalers of
non-durable goods (NAICS subsector
424) is 100 employees. SBA’s small
business thresholds for food and
beverage stores are $6.5 million and $25
million, depending on the type of store.
Small entities affected by this interim
rule include primarily producers of farm
products who will no longer have their
social security numbers posted for
public viewing by State certified central
filing system that opt to use an other
approved unique identifier.
GIPSA foresees no substantive change
to reporting or recordkeeping burden
imposed on small entities resulting from
this interim rule.
Therefore, I certify that this interim
rule will have no significant economic
impact on a substantial number of small
entities, as required by the Regulatory
Flexibility Act (5 U.S.C. 601–612).
sroberts on PROD1PC70 with RULES
Executive Order 12988
This interim rule has been reviewed
under E.O. 12988, Civil Justice Reform,
and is not intended to have retroactive
effect. This interim rule will not preempt State or local laws, regulations, or
policies unless they present an
irreconcilable conflict with this interim
rule. There are no administrative
procedures that must be exhausted prior
to any judicial challenge to the
provisions of this interim rule.
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Paperwork Reduction Act
In accordance with the Paperwork
Reduction Act of 1995 (44 U.S.C. 3501—
3520), the information collection or
recordkeeping requirements included in
this rule have been approved by the
Office of Management and Budget
(OMB) under OMB control number
0580–0016. This interim rule will add
the OMB control number at the end of
each section of the regulations
previously approved for information
collection activities.
Stockyards Administration Packers and
Stockyards Programs’’ and add the
words ‘‘Packers and Stockyards
Program, Grain Inspection, Packers and
Stockyards Administration (GIPSA)’’ in
their place.
I f. In paragraph (e), removing the
words ‘‘the Act’’ and adding the words
‘‘the Section’’ in their place both times
they appear.
I g. At the end of the section, add an
information collection citation to read
as follows:
E-Government Act Compliance
We are committed to complying with
the E-Government Act, to promote the
use of the Internet and other
information technologies to provide
increased opportunities for citizen
access to Government information and
services, and for other purposes.
§ 205.101 Certification—request and
processing.
List of Subjects in 9 CFR Part 205
Agricultural commodities, Archives
and records, Intergovernmental
relations, Reporting and recordkeeping
requirements.
I For the reasons set forth in the
preamble, GIPSA amends 9 CFR part
205 as follows:
*
*
*
*
*
(b) * * *
(11) If a unique identifier will be used
in the system, explain how the unique
identifier will be selected and how it
will be used by the system, including,
but not limited to, how lists will be
organized, and how searches may be
performed, using the unique identifier.
*
*
*
*
*
(Approved by the Office of Management and
Budget under control number 0580–0016)
4. Amend § 205.102 by adding an
information collection citation at the
end of the section to read as follows:
I
PART 205—CLEAR TITLE—
PROTECTION FOR PURCHASERS OF
FARM PRODUCTS
§ 205.102 Name of person subjecting a
farm product to a security interest, on EFS
and master list—format.
1. Revise the authority citation to read
as follows:
(Approved by the Office of Management and
Budget under control number 0580–0016)
I
Authority: 7 U.S.C. 1631; 7 CFR 2.22 and
2.81.
2. Amend § 205.1 as follows:
a. Remove paragraph designations (a)
through (i) and arrange the terms in
alphabetical order.
I b. Add a definition of ‘‘approved
unique identifier,’’ in alphabetical
order, to read as follows:
I
I
§ 205.1
Definitions.
*
*
*
*
Approved Unique Identifier means a
number, combination of numbers and
letters, or other identifier selected by the
Secretary of State using a selection
system or method approved by the
Secretary of Agriculture.
*
*
*
*
*
I 3. Amend § 205.101 as follows:
I a. Remove the word ‘‘and’’ at the end
of paragraph (b)(10).
I b. Redesignate paragraph (b)(11) as
paragraph (b)(12).
I c. Add new paragraph (b)(11) to read
as set forth below.
I d. In newly redesignated paragraph,
(b)(12)(ii), add a comma after the word
‘‘rules’’.
I e. In paragraph (c), remove the words
‘‘Grain Inspection, Packers and
Frm 00008
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*
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*
*
*
5. Amend § 205.103, as follows:
a. Revise paragraph (a)(3) to read as
set forth below.
I b. Revise paragraph (a)(5), to read as
set forth below.
I c. Amend § 205.103 by adding an
information collection citation at the
end of the section to read as set forth
below:
I
I
§ 205.103
*
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*
EFS—minimum information.
(a) * * *
(3) Each county or parish in the same
State where the farm product is
produced or located;
(4) * * *
(5) Social security number or other
approved unique identifier or, if other
than a natural person, IRS taxpayer
identification number or other approved
unique identifier of each such person;
*
*
*
*
*
(Approved by the Office of Management and
Budget under control number 0580–0016)
6. Amend § 205.104 as follows:
a. In paragraph, (a)(3), add the words
‘‘or located’’ after the word ‘‘produced’’.
I b. At the end of the section, add an
information collection citation to read
as follows:
I
I
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Federal Register / Vol. 71, No. 187 / Wednesday, September 27, 2006 / Rules and Regulations
§ 205.104 Registration of buyer,
commission merchant, or selling agent—
minimum information.
*
*
*
*
*
(Approved by the Office of Management and
Budget under control number 0580–0016)
I a. Remove the words ‘‘subsection
(c)(4)(D)’’ and add the words
‘‘subsection (c)(4)(C)’’ in their place.
I b. At the end of the section, add an
information collection citation to read
as follows:
7. Amend § 205.105 as follows:
a. In paragraph (a), in the first
sentence, add the words ‘‘or located’’
after the word ‘‘produced’’.
I b. In paragraph (a), in both of the
following places in the last sentence,
add the words ‘‘or approved unique
identifier’’ after ‘‘in numerical order by
social security number’’ and after ‘‘IRS
taxpayer identification number’’.
I c. At the end of the section, add an
information collection citation to read
as follows:
§ 205.203
Place of filing EFS.
*
*
§ 205.105 Master list and portion thereof
distributed to registrants—format.
§ 205.205
*
13. Amend § 205.205, by removing the
words ‘‘subsection (c)(4)(H)’’ and adding
the words ‘‘subsection (c)(4)(G)’’ in their
place both times they appear.
I 14. Amend § 205.206 as follows:
I a. In paragraph (a), remove the comma
immediately after the words ‘‘subsection
(c)(2)’’; remove the words ‘‘subsection
(c)(4)(D)(iv)’’ and add the words
‘‘subsection (c)(4)(C)(iv)’’ in their place.
I b. At the end of the section, add an
information collection citation to read
as follows:
I
I
*
*
*
(Approved by the Office of Management and
Budget under control number 0580–0016)
8. Amend § 205.106 as follows:
a. Remove the words ‘‘subsection
(c)(4)(D)(iv)’’ and add the words
‘‘subsection (c)(4)(C)(iv)’’ in their place.
I b. At the end of the section, add an
information collection citation to read
as follows:
I
I
Farm products.
*
*
*
*
*
(Approved by the Office of Management and
Budget under control number 0580–0016)
9. Amend § 205.107
a. In paragraph (b), remove the words
‘‘subsection (c)(4)(F)’’ and add the
words ‘‘subsection (c)(4)(E)’’ in their
place.
I b. At the end of the section, add an
information collection citation to read
as follows:
I
I
§ 205.107
Crop year.
*
*
*
*
*
(Approved by the Office of Management and
Budget under control number 0580–0016)
10. Amend § 205.202 as follows:
a. In paragraph (b), remove the words
‘‘signed by both the secured party and
the debtor,’’ and add the words ‘‘signed,
authorized, or otherwise authenticated
by the debtor’’ in their place.
I b. At the end of the section, add an
information collection citation to read
as follows:
sroberts on PROD1PC70 with RULES
I
I
§ 205.202 ‘‘Effective
or EFS.
*
*
*
*
financing statement’’
*
(Approved by the Office of Management and
Budget under control number 0580–0016)
I
11. Amend § 205.203 as follows:
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16:20 Sep 26, 2006
*
*
(Approved by the Office of Management and
Budget under control number 0580–0016)
Jkt 208001
(Approved by the Office of Management and
Budget under control number 0580–0016)
16. Amend § 205.208 by adding at the
end of the section an information
collection citation to read as follows:
I
§ 205.208 Distribution of portions of
master list—registration—information to
non-registrants on request.
*
*
*
*
*
12. Amend § 205.204 by adding at the
end of the section an information
collection citation to read as follows:
(Approved by the Office of Management and
Budget under control number 0580–0016)
§ 205.204
17. Amend § 205.209 as follows:
a. In paragraph (a), remove the words
‘‘subsection (c)(4)(E)’’ and add the
words ‘‘subsection (c)(4)(D)’’ in their
place.
I b. Revise paragraph (c), to read as set
forth below.
I c. In paragraph (d), remove the words
‘‘contain the signature of the debtor’’
and add the words ‘‘be signed,
authorized, or otherwise authenticated
by the debtor’’ in their place.
I d. At the end of the section, add an
information collection citation to read
as follows:
I
*
*
Filing ‘‘notice’’ of EFS.
*
*
*
(Approved by the Office of Management and
Budget under control number 0580–0016)
[Amended]
§ 205.206
Farm products.
*
*
*
*
I
I
I
*
§ 205.106
*
56343
*
(Approved by the Office of Management and
Budget under control number 0580–0016)
15. Amend § 205.207 as follows:
a. Revise the section heading to read
as set forth below.
I b. In paragraph (a), remove the words
‘‘and ‘‘reasonable description of the
property including county or parish,’’’’
and add the words ‘‘and ‘‘county or
parish,’’’’ in their place.
I c. In paragraph (a), remove the words
‘‘subsections (c)(4)(D)(iv)’’ and add the
words ‘‘subsection (c)(4)(C)(iv)’’ in their
place.
I d. In paragraph (c), remove the words
‘‘product is or is to be produced’’ and
add the words ‘‘product is produced or
located’’ in their place.
I e. In paragraph (e), in the first
sentence, remove the words ‘‘and
property’’.
I f. In paragraph (e), in the last
sentence, remove the words ‘‘and
location’’.
I g. At the end of the section, add an
information collection citation to read
as follows:
I
I
§ 205.209
EFS.
Amendment or continuation of
*
*
*
*
*
(c) The amendment must be filed in
the same manner as the original filing.
Note the requirement of subsection
(c)(4)(D). The amendment may be filed
electronically provided a State allows
electronic filing of financing statements
without the signature of the debtor
under applicable State law under
provisions of the Uniform Commercial
Code. An electronically filed
amendment need not be signed.
However, if an original or reproduced
paper document is filed, the amendment
must be signed, authorized, or otherwise
authenticated by the debtor, and be filed
by the secured party.
*
*
*
*
*
(Approved by the Office of Management and
Budget under control number 0580–0016)
§ 205.210
[Amended]
18. Amend § 205.210, in paragraph,
(b), add the words ‘‘or located’’ after the
word ‘‘produced’’ both times it appears.
I
19. Amend § 205.213 by adding an
information collection citation at the
end of the section to read as follows:
I
§ 205.207 ‘‘Amount’’ and ‘‘County or
parish’’.
§ 205.213 Obligations subject—‘‘person
indebted’’—‘‘debtor’’.
*
*
PO 00000
*
*
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*
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*
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*
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*
*
56344
Federal Register / Vol. 71, No. 187 / Wednesday, September 27, 2006 / Rules and Regulations
(Approved by the Office of Management and
Budget under control number 0580–0016)
James E. Link,
Administrator, Grain Inspection, Packers and
Stockyards Administration.
[FR Doc. 06–8268 Filed 9–26–06; 8:45 am]
BILLING CODE 3410–KD–P
NUCLEAR REGULATORY
COMMISSION
10 CFR Part 70
RIN 3150–AH96
Facility Change Process Involving
Items Relied on for Safety
Nuclear Regulatory
Commission.
ACTION: Direct final rule.
AGENCY:
SUMMARY: The Nuclear Regulatory
Commission (NRC) is amending its
regulations to clarify a requirement
pertaining to items relied on for safety
(IROFS). This rulemaking corrects an
inconsistency in the regulations
pertaining to IROFS.
DATES: The final rule is effective on
December 11, 2006, unless significant
adverse comments are received by
October 27, 2006. As detailed in the
Procedural Background section, a
significant adverse comment is a
comment where the commenter
explains why the rule would be
inappropriate, including challenges to
the rule’s underlying premise or
approach, or would be ineffective or
unacceptable without a change. If the
NRC receives any significant adverse
comments, the NRC will publish a
document that withdraws the direct
final rule and addresses the comments
received in a final rule as a response to
the companion proposed rule published
elsewhere in this issue of the Federal
Register.
You may submit comments
by any one of the following methods.
Please include the following number
(RIN 3150–AH96) in the subject line of
your comments. Comments on
rulemakings submitted in writing or in
electronic form will be made available
for public inspection. Because your
comments will not be edited to remove
any identifying or contact information,
the NRC cautions you against including
personal information such as social
security numbers and birth dates in
your submission.
Mail comments to: Secretary, U.S.
Nuclear Regulatory Commission,
Washington, DC 20555–0001, ATTN:
Rulemakings and Adjudications Staff.
sroberts on PROD1PC70 with RULES
ADDRESSES:
VerDate Aug<31>2005
16:20 Sep 26, 2006
Jkt 208001
E-mail comments to: SECY@nrc.gov. If
you do not receive a reply e-mail
confirming that we have received your
comments, contact us directly at (301)
415–1966. You may also submit
comments via the NRC’s rulemaking
Web site at https://ruleforum.llnl.gov.
Address questions about our rulemaking
website to Carol Gallagher (301) 415–
5905; e-mail cag@nrc.gov. Comments
can also be submitted via the Federal
eRulemaking Portal https://
www.regulations.gov.
Hand deliver comments to: 11555
Rockville Pike, Rockville, Maryland
20852, between 7:30 a.m. and 4:15 p.m.
Federal workdays. (Telephone (301)
415–1966).
Fax comments to: Secretary, U.S.
Nuclear Regulatory Commission at (301)
415–1101.
Publicly available documents related
to this rulemaking may be viewed
electronically on the public computers
located at the NRC’s Public Document
Room (PDR), O1 F21, One White Flint
North, 11555 Rockville Pike, Rockville,
Maryland. The PDR reproduction
contractor will copy documents for a
fee. Selected documents, including
comments, may be viewed and
downloaded electronically via the NRC
rulemaking Web site at https://
ruleforum.llnl.gov.
Publicly available documents created
or received at the NRC after November
1, 1999, are available electronically at
the NRC’s Electronic Reading Room at
https://www.nrc.gov/reading-rm/
adams.html. From this site, the public
can gain entry into the NRC’s
Agencywide Document Access and
Management System (ADAMS), which
provides text and image files of NRC’s
public documents. If you do not have
access to ADAMS or if there are
problems in accessing the documents
located in ADAMS, contact the NRC
PDR Reference staff at 1–800–397–4209,
301–415–4737 or by e-mail to
pdr@nrc.gov.
Dr.
Anthony N. Tse, Office of Nuclear
Material Safety and Safeguards, U.S.
Nuclear Regulatory Commission,
Washington, DC 20555–0001, telephone
(301) 415–6233, e-mail ant@nrc.gov.
SUPPLEMENTARY INFORMATION:
FOR FURTHER INFORMATION CONTACT:
Background
NRC’s regulations at 10 CFR part 70
govern the domestic licensing of special
nuclear material (SNM), including the
licensing of uranium enrichment
facilities. On September 18, 2000 (65 FR
56211), the NRC added subpart H
requirements (§§ 70.60 to 70.76) to 10
CFR part 70. Subpart H applies to
PO 00000
Frm 00010
Fmt 4700
Sfmt 4700
licensees possessing greater than a
critical mass of SNM, such as those
engaged in enriched uranium
processing, fabrication of uranium fuel
or fuel assemblies, enriched uranium
hexafluoride conversion, plutonium
processing, fabrication of mixed-oxide
fuel or fuel assemblies, and the scrap
recovery of SNM. Section 70.61 sets
forth performance requirements, and
requires that the controls needed to
meet the performance requirements be
designated as IROFS. Section 70.62
requires the establishment of a safety
program based on an integrated safety
analysis (ISA). Under § 70.65, a
summary of the ISA must be submitted
to the NRC for approval, and the
summary must contain the IROFS upon
which the licensee relies in order to
meet the performance requirements. In
§ 70.4, the definition of IROFS specifies
that, in addition to the IROFS needed to
meet the performance requirements in
§ 70.61 (i.e., the minimum set), a
licensee may designate additional
IROFS (i.e., beyond those in the
minimum set necessary for compliance
with the performance requirements).
The only revision to the subpart H
requirements now being made is to 10
CFR 70.72(c)(2), as discussed further in
this document.
Discussion
Section 70.72 contains requirements
which control changes licensees (subject
to subpart H) make to their facilities,
and specifies criteria for determining if
these changes require the NRC staff’s
review and approval before they are
made. Section 70.72(c)(2) specifies that
a licensee may remove an IROFS that is
listed in the ISA summary, without
prior NRC approval, if the licensee
replaces the IROFS with an equivalent
replacement of the safety function.
Unlike other subpart H provisions (i.e.,
§ 70.72(c)(3) and paragraphs (a)(4) and
(a)(5) of Appendix A to Part 70), which
distinguish between the minimum set of
IROFS needed to meet the performance
requirements and the larger set of IROFS
a licensee may choose to identify,
§ 70.72(c)(2) does not make this
distinction in stating as follows:
(c) The licensee may make changes to the
site, structures, processes, systems,
equipment, components, computer programs,
and activities of personnel, without prior
Commission approval, if the change * * *
(2) Does not remove, without at least an
equivalent replacement of the safety
function, an item relied on for safety that is
listed in the integrated safety analysis
summary.
Questions have arisen about whether
changes involving licensee-identified
IROFS that are not needed to meet the
E:\FR\FM\27SER1.SGM
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]]>Agencies
[Federal Register Volume 71, Number 187 (Wednesday, September 27, 2006)]
[Rules and Regulations]
[Pages 56338-56344]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-8268]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Grain Inspection, Packers and Stockyards Administration
9 CFR Part 205
RIN 0580-AA93
Clear Title Technical Changes
AGENCY: Grain Inspection, Packers and Stockyards Administration, USDA.
ACTION: Interim rule.
-----------------------------------------------------------------------
SUMMARY: We are issuing this interim rule to allow States to use an
approved unique identifier as an alternative to a social security
number or taxpayer identification number in their systems providing
clear title information. We are making additional changes to the clear
title regulations as required by amendments made by the 2002 Farm Bill.
The primary effect of these changes will be to protect the identity of
the producers of farm products. Secondary effects of the technical
changes will be to improve the operation of the program and provide the
States with more flexibility.
DATES: Effective Date: September 27, 2006.
Comment Date: We will consider comments that we receive by November
27, 2006.
ADDRESSES: We invite you to submit comments on this rule. You may
submit comments by any of the following methods:
E-Mail: Send comments via electronic mail to
comments.gipsa@usda.gov.
Mail: Send hardcopy written comments to Tess Butler,
GIPSA, USDA, 1400 Independence Avenue, SW., Room 1647-S, Washington, DC
20250-3604.
Fax: Send comments by facsimile transmission to: (202)
690-2755.
Hand Delivery or Courier: Deliver comments to: Tess
Butler, GIPSA, USDA, 1400 Independence Avenue, SW., Room 1647-S,
Washington, DC 20250-3604.
Federal eRulemaking Portal: Go to https://
www.regulation.gov. Follow the on-line instruction for submitting
comments.
[[Page 56339]]
To read comments: All comments received will be made available for
public review at the above address during regular business hours (7 CFR
1.27(b)).
FOR FURTHER INFORMATION CONTACT: Jens Knutson, Economist, Industry
Analysis Division, USDA GIPSA, (202) 720-3128 or e-mail at
Jens.N.Knutson@usda.gov.
SUPPLEMENTARY INFORMATION: The Grain Inspection, Packers and Stockyards
Administration (GIPSA) administers the clear title program for the
Secretary of Agriculture. The clear title program is authorized by
Section 1324 of the Food Security Act of 1985 (7 U.S.C. 1631) and
requires that States implementing a central filing system for
notification to the public of liens on farm products must have such
systems certified by the Secretary of Agriculture. When someone
purchases a farm product in one of the 19 states that currently have
certified central filing systems, they can check for liens against that
farm product through the State's central filing system. USDA, through
GIPSA's Packers and Stockyards Program, certifies the State's Central
Filing System.
Our regulations in 9 CFR part 205 (regulations) provide guidance to
the States about the requirements for their clear title program and
requirements for approval of their systems.
Changes to the Regulations
This interim final rule encompasses several changes to our clear
title regulations that are mandated by changes to the clear title
authorizing legislation. We discuss in the following section changes to
authorizing legislation that require changes to our current clear title
regulations and then identify the regulatory changes to be made. The
changes are presented by topic rather than by section. Then, at the end
of this document, we present the complete changes to 9 CFR part 205,
Clear Title--Protection for Purchasers of Farm Products, which this
interim rule implements.
Section 776 of Division A, Title VII, Public Law 108-447, amended
Section 1324(c) of the Food Security Act of 1985 (7 U.S.C. 1631(c)) for
the privacy protection of certain sellers of farm products to allow
States to use ``an other approved unique identifier'' as an alternative
to a social security number or Internal Revenue Service (IRS) taxpayer
identification number in their systems providing clear title
information. The amendment further specified that the term ``approved
unique identifier'' means ``a number, combination of numbers and
letters, or other identifier selected by the Secretary of State using a
selection system or method approved by the Secretary of Agriculture.''
One of the requirements in our current regulations is that the
social security number or an IRS taxpayer identification number of the
debtor must be provided. Sections 205.103 and 205.105 require (1) the
social security number or IRS taxpayer identification number be
included as necessary information on an effective financing statement
(EFS) filed with the State and (2) the master list developed by the
State must be able to be delivered to a registrant in numerical order
by social security number or IRS taxpayer identification number.
We are revising the regulations to implement the addition of ``an
other approved unique identifier'' made in the authorizing legislation.
We considered the option of specifying what an approved unique
identifier would be, but decided to allow each State the flexibility to
request approval of the method or system used to select a unique
identifier that will work best in its clear title program.
We have been in contact in recent months with several States
interested in amending their clear title systems and believe sufficient
interest exists in States' implementation of the legislatively-mandated
changes to the clear title program--including the use of an approved
unique identifier as an alternative to a social security or IRS
taxpayer identification number in a State's EFS and clear title master
list--to warrant this interim final rule at this time. If States opt to
discontinue the publication of social security numbers as a means of
identification in States' clear title master lists, the resulting
increased privacy protection will benefit individuals identified in
those master lists. Discontinuing the publication of social security
numbers is an increasing practice in regulatory and business
transactions throughout the United States.
We are making the following changes in the clear title regulations
to allow the use of an approved unique identifier in the certified
State systems providing clear title information:
In section 205.1, Definitions, we are adding a definition
for ``approved unique identifier''.
In section 205.101, Certification--request and processing,
we are adding a new paragraph (b)(11) to show what the State will be
required to provide when applying to us for certification of its
central filing system when it will use an approved unique identifier.
In section 205.103, EFS--minimum information, we are
revising paragraph (a)(5) to allow either a social security number, IRS
taxpayer identification number, or other approved unique identifier of
each debtor be included in the minimum information necessary on an EFS.
In section 205.105, Master list and portion thereof
distributed to registrants--format, we are revising paragraph (a) to
allow an approved unique identifier to be used in place of a social
security number or IRS taxpayer identification number for the
numerically ordered information that the State's system must report.
Revisions to the regulations are also needed to correspond to the
2002 Farm Bill amendments. The 2002 Farm Bill amendments to Section
1324 of the Food Security Act relate to electronic filing, EFS content,
and Central Filing System procedure. The intent of these amendments was
to relax some signature requirements, clarify terms, and facilitate
electronic filing of lenders' security interests. These technical
modifications will improve the operation of the program and provide the
States with more flexibility.
Specifically, the legislation:
(1) Allows the non-electronically reproduced copy of the EFS to be
signed, authorized, or otherwise authenticated by the debtor and filed
by the secured party in place of the requirement for the statement to
be signed by both the debtor and the secured party and filed by the
secured party;
(2) Allows the written amendments to the EFS to be signed,
authorized, or otherwise authenticated by the debtor in place of the
requirement for the statement to be signed and filed;
(3) Allows notices that an EFS has lapsed to be signed, authorized,
or otherwise authenticated by the secured party in place of the
requirement for the notice to be signed by the secured party;
(4) Allows the EFS to identify the county or parish in which the
farm product is produced or located, instead of requiring a reasonable
description of the property;
(5) Allows the written notice of the security interest to identify
the county or parish in which the farm product is produced or located,
instead of requiring a reasonable description of the property;
(6) Allows the written amendments to the security interest notice
to be signed, authorized, or otherwise authenticated in place of the
requirement for the amendment to be signed;
(7) Allows notice of lapse of the written notice of the security
interest to be signed, authorized, or otherwise
[[Page 56340]]
authenticated in place of the requirement for the notice to be signed;
(8) Allows the notice of security interest to the commission
merchant or selling agent to identify the county or parish in which the
farm product is produced or located, instead of requiring a reasonable
description of the property;
(9) Allows the written amendments to the notice of security
interest to the commission merchant or selling agent to be signed,
authorized, or otherwise authenticated in place of the requirement for
the statement to be signed; and
(10) Allows the notice that the statement related to security
interest has lapsed to be signed, authorized, or otherwise
authenticated by the secured party in place of the requirement for the
statement to be signed by the secured party.
In addition, the following miscellaneous nonsubstantive changes
were made to the legislation:
a. Redesignated subsections after deleting a subsection,
b. inserted ``contains'' to start two subsections,
c. changed references to ``subparagraphs'' to ``subsections,''
d. replaced ``; and'' with a period in a final subsection, and
e. inserted the word ``and'' at the end of the next to the last
subsections.
Our regulations currently include requirements about the
information of the location of farm products related to the county or
parish in which the farm product is produced and require a reasonable
description of the property. We are making the following changes in the
clear title regulations to correspond to the changes made in the
legislation in reference to the location of the farm products:
In section 205.103, EFS--minimum information, we are
revising paragraph (a)(3) to allow the locations of the farm product to
be included in the minimum information necessary on an EFS to be an
identification of each county or parish in the same State where the
farm product is produced or located.
In section 205.104, Registration of buyer, commission
merchant, or selling agency--minimum information, we are revising
paragraph (a)(3) by adding the words ``or located'' after the word
``produced.''
In section 205.105, Master list and portion thereof
distributed to registrants--format, we are revising paragraph (a) to
allow the State's system to deliver information for any farm product
produced or located in any county or parish of the State.
In section 205.207, ``Amount'' and ``reasonable
description of the property,'' we are revising the heading to refer to
the county or parish in which the property is located instead of a
reasonable description of the property.
In section 205.207, ``Amount'' and ``county or parish,''
we are revising paragraph (a) to specify that the county or parish in
which the product is located or produced does not need to be shown on
every EFS and master list entry.
In section 205.207, ``Amount'' and ``county or parish,''
we are revising paragraph (c) to allow the option for any EFS and
master list entry to identify each county or parish in which the farm
product is produced or located.
In section 205.207, ``Amount'' and ``county or parish,''
we are revising paragraph (e) to describe what additional information
about the amount is sufficient.
In section 205.210, Effect of EFS outside State in which
filed, we are revising paragraph (b) to expand the ability to file an
EFS to cover products in the system for the State in which it is
produced or located.
Currently, the regulations require the secured party and debtor to
sign an EFS filed on paper with the State and EFS amendments filed on
paper documents. We are making the following changes in the clear title
regulations to correspond to changes made in the legislation in
reference to allowing alternatives to signatures and other changes
related to options to providing information on paper, such as
electronic information:
In section 205.202, ``Effective financing statement'' or
EFS, we are revising paragraph (b) to require an EFS to be signed,
authorized, or otherwise authenticated only by the debtor.
In section 205.209, Amendment or continuation of EFS, we
are revising paragraph (c) to specify that if an amendment is filed on
a paper document that it must be signed, authorized, or otherwise
authenticated only by the debtor.
In section 205.209, Amendment or continuation of EFS, we
are revising paragraph (d) to specify that a continuation statement to
continue the effective period of an EFS for 5 years need not be signed,
authorized, or otherwise authenticated by the debtor.
Our current regulations refer to sections of the authorizing
legislation that were renumbered in the 2002 Farm Bill amendments. We
are making the following corrections in the clear title regulations to
correspond to changes made in the legislation:
In sections 205.106, 205.206, and 205.207, we are
correcting the references to subsection (c)(4)(D)(iv) to refer to
subsection (c)(4)(C)(iv).
In section 205.107, we are correcting the reference to
subsection (c)(4)(F) to refer to subsection (c)(4)(E).
In section 205.203, we are correcting the reference to
subsection (c)(4)(D) to refer to subsection (c)(4)(C).
In section 205.205, we are correcting both of the
references to subsection (c)(4)(H) to refer to subsection (c)(4)(G).
In section 205.209, we are correcting both of the
references to subsection (c)(4)(E) to refer to subsection (c)(4)(D).
We are also making several nonsubstantive changes to our
regulations. In keeping with the guidance the Office of the Federal
Register provides for listing definitions, we are deleting the lettered
paragraph designations for the definitions in section 205.1 and
rearranging the definitions in alphabetical order of the terms being
defined.
Information collection activities, which include recordkeeping,
reporting, and third party disclosure, are reviewed and approved by the
Office of Management and Budget (OMB). We have approval from OMB for
the information collection activities related to the clear title
program; this approval was granted under OMB control number 0580-0016.
OMB grants information collection approval for no more than 3 years at
a time; the current approval for the clear title program expires on
November 30, 2007. To comply with the requirement to display the
control numbers assigned by OMB approving the information collection
activities, we are adding the control number at the end of sections
205.101, 205.102, 205.103, 205.104, 205.105, 205.106, 205.107, 205.202,
205.203, 205.204, 205.206, 205.207, 205.208, 205.209, and 205.213 for
which the information collection activities have been approved.
Section 1324 of the Food Security Act of 1985 is the authorizing
legislation for the clear title program. Throughout the regulations in
9 CFR part 205 the term ``the Section'' is used, as defined in 9 CFR
205.1, to mean Section 1324 of the Food Security Act of 1985. In the
regulation in 9 CFR 205.101 (e), the term ``the Act'' is used, without
having been defined or any other clarifying information. For
consistency with the rest of the clear title regulations, we are
replacing the term ``the Act'' with the term ``the Section'' both times
it appears in 9 CFR 205.101 (e).
Finally, we are making minor editorial corrections in sections
205.101 and 205.206. In section 205.101, we are
[[Page 56341]]
(1) inserting a serial comma in the list in paragraph (11)(ii) and (2)
correcting the reference to the Agency and program in paragraph (c). In
section 205.206, we are removing an unnecessary comma.
Interim Rule
We are issuing an interim rule with request for comments rather
than a proposed rule because the Federal statutory language governing
the operation of States' clear title programs, and hence GIPSA's
certification of these programs, has changed, and GIPSA's clear title
regulations must reflect these statutory changes. Further, there is a
strong public interest in issuing this rule as an interim rule. Several
States have contacted GIPSA in recent months with requests to approve
amendments to their clear title programs that reflect some, if not all,
of the statutory changes governing the operation of the clear title
program. GIPSA has approved all such State requests to amend their
clear title requirements if the amendments adhere to the amended
statutory language governing clear title programs. Additionally, GIPSA
believes the regulatory changes in this interim rule are in the public
interest to the extent they reduce the possibility of identity theft by
allowing the use of approved unique identifiers in lieu of social
security numbers or IRS taxpayer identification numbers in States'
published clear title master lists. The regulatory changes are also in
the public interest in that they facilitate timelier and less
restrictive operation of States' clear title programs.
Executive Order 12866 and Regulatory Flexibility Act
The Office of Management and Budget (OMB) designated this interim
rule as not significant for the purposes of Executive Order 12866. This
interim rule changes GIPSA's clear title regulations by allowing the
use of approved unique identifiers in place of the former requirement
that States use debtors' social security numbers or IRS taxpayer
identification numbers. The interim rule also makes changes to the
clear title regulations as required by amendments made by the 2002 Farm
Bill. These Farm Bill technical changes to the clear title program (1)
facilitate electronic transmission of lien notices in States that have
adopted central filing systems for farm products by no longer requiring
signatures of the secured party and debtor, (2) alter the required
description of products by allowing notices to indicate where a product
is produced or located rather than only where it is produced, and (3)
incorporate minor editorial changes.
The parties primarily affected by the changes are producers and
purchasers of farm products, State Secretaries of State in those States
operating GIPSA-certified clear title central filing systems, and
lending institutions in States or operating in States that have GIPSA-
certified clear title central filing systems. There are 19 States
currently operating clear title central filing systems certified by
GIPSA. Some of these States' clear title central filing systems cover
all farm products produced in the State, while other State's systems
cover only certain farm products. A listing of the States with GIPSA-
certified clear title certified central filing systems is available
through the Internet on the GIPSA Web site (go to https://www.gipsa/
usda/gov, click on ``Learn About Clear Title Farm Products,'' go
to``Regulations Under the Food Security Act''at the bottom of the page
and then click on the highlighted ``Clear Title Notices''). Farm
products covered by a State's clear title central filing system are
also identified through the GIPSA Web site.
This interim rule's most significant benefit is enhanced protection
of the personal identities of debtors, primarily producers of farm
products, whose social security numbers or, if they are incorporated as
a business, IRS taxpayer identification numbers are now provided on
States' master lists. These master lists, whose purpose is to provide
buyers of farm products the ability to check for liens against the farm
product the buyer is interested in, are made available to the public in
different ways by different States. By providing States the alternative
of identifying debtors by an approved unique identifier other than by
social security number or IRS taxpayer identification number, GIPSA
believes this interim rule mitigates the risk of identity theft.
The producers of farm products, generally the debtors in a State's
central filing system, and lenders will also benefit from the added
flexibility of not having to sign an EFS and related documents, thus
facilitating their ability to file these documents. The ability to
authorize or otherwise authenticate the EFS may also save them time and
money in reproduction and delivery expenses. This interim rule's
revision of some current signature requirements, which will enhance a
lender's electronic filing of security interests, and the interim
rule's simplification of the description of the location of the farm
product should also enhance the timeliness and effectiveness of both a
State's operation of, and a farm product buyer's use of, a State's
GIPSA-certified clear title central filing system.
Costs to implement this interim rule's changes will fall primarily
on State Departments of State that maintain GIPSA-certified clear title
central filing systems. Costs associated with implementing the changes
specified in this interim rule involve the States' development of
unique identifiers, changing how debtor's and lender's documents can be
submitted to the States, and approval by GIPSA of these modified clear
title central filing systems if the changes take the form of amendments
to a GIPSA-certified clear title central filing system. If the changes
result in a State developing a new central filing system, that system
will have to be certified by GIPSA. We believe most State changes will
come to GIPSA as requests for amendments to existing central filing
systems. Given the variety of State-specific systems, it is difficult
to estimate the cost of these changes, but we expect each State that
decides to implement changes will do so in the most cost effective way
for its system. State Departments of State are not classified as small
entities.
Lenders to producers of farm products may experience some costs,
which GIPSA anticipates should be relatively small in those instances
where they do arise, in converting their systems to accommodate a
State's choice to use approved unique identifiers as an alternative to
social security numbers. We do not know how many lenders might be
affected by these changes, and have no reason to believe that small
lenders will be unduly affected by them relative to larger lenders. The
Small Business Administration (SBA) identifies small business size
standards for business entities grouped according to the North American
Industry Classification System (NAICS) codes, and has identified small
business lending institutions for commercial banking (NAICS subsector
445) as those entities with assets of $165 million or less. Small
business consumer lending and mortgage and non-mortgage loan brokers
(NAICS 522291 and 522310, respectively) have assets of $6.5 million or
less. GIPSA believes the costs to lenders to accommodate a State?s
choice to use approved unique identifiers, whatever they might be, will
be offset by the lenders' cost and time savings associated with changed
signature requirements that facilitate timelier and more efficient
transmission of an EFS.
Producers of farm products and buyers of farm products should
experience no additional costs associated with this interim rule. The
[[Page 56342]]
majority of these producers and buyers of farm products are small
entities.
The SBA small business size standards vary for producers of farm
products, based on the products, but for most agricultural producers
the small business threshold is $0.75 million in annual receipts for
crop and animal production (NAICS 111110--112990). The 2002
Agricultural Census reported 2,100,309 farms had annual sales of farm
products totaling less than $1 million, which is the census' closest
sales category to SBA's definition of small business producers of farm
products having annual receipts less than $0.75 million. These small
business farms accounted for 98 percent of all farms reported in the
census.
Many buyers of farm products will be the same producers discussed
above, the majority of whom SBA defines as small entities. SBA's small
business size standards for other buyers of farm products vary
depending on industry sector, and within sectors on the type of
company. For example, SBA's small business threshold for food
manufacturers (NAICS subsector 311) can be 500, 750, or 1,000
employees, depending on the type of food manufacturer. SBA's small
business threshold for merchant wholesalers of non-durable goods (NAICS
subsector 424) is 100 employees. SBA's small business thresholds for
food and beverage stores are $6.5 million and $25 million, depending on
the type of store.
Small entities affected by this interim rule include primarily
producers of farm products who will no longer have their social
security numbers posted for public viewing by State certified central
filing system that opt to use an other approved unique identifier.
GIPSA foresees no substantive change to reporting or recordkeeping
burden imposed on small entities resulting from this interim rule.
Therefore, I certify that this interim rule will have no
significant economic impact on a substantial number of small entities,
as required by the Regulatory Flexibility Act (5 U.S.C. 601-612).
Executive Order 12988
This interim rule has been reviewed under E.O. 12988, Civil Justice
Reform, and is not intended to have retroactive effect. This interim
rule will not pre-empt State or local laws, regulations, or policies
unless they present an irreconcilable conflict with this interim rule.
There are no administrative procedures that must be exhausted prior to
any judicial challenge to the provisions of this interim rule.
Paperwork Reduction Act
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
3501--3520), the information collection or recordkeeping requirements
included in this rule have been approved by the Office of Management
and Budget (OMB) under OMB control number 0580-0016. This interim rule
will add the OMB control number at the end of each section of the
regulations previously approved for information collection activities.
E-Government Act Compliance
We are committed to complying with the E-Government Act, to promote
the use of the Internet and other information technologies to provide
increased opportunities for citizen access to Government information
and services, and for other purposes.
List of Subjects in 9 CFR Part 205
Agricultural commodities, Archives and records, Intergovernmental
relations, Reporting and recordkeeping requirements.
0
For the reasons set forth in the preamble, GIPSA amends 9 CFR part 205
as follows:
PART 205--CLEAR TITLE--PROTECTION FOR PURCHASERS OF FARM PRODUCTS
0
1. Revise the authority citation to read as follows:
Authority: 7 U.S.C. 1631; 7 CFR 2.22 and 2.81.
0
2. Amend Sec. 205.1 as follows:
0
a. Remove paragraph designations (a) through (i) and arrange the terms
in alphabetical order.
0
b. Add a definition of ``approved unique identifier,'' in alphabetical
order, to read as follows:
Sec. 205.1 Definitions.
* * * * *
Approved Unique Identifier means a number, combination of numbers
and letters, or other identifier selected by the Secretary of State
using a selection system or method approved by the Secretary of
Agriculture.
* * * * *
0
3. Amend Sec. 205.101 as follows:
0
a. Remove the word ``and'' at the end of paragraph (b)(10).
0
b. Redesignate paragraph (b)(11) as paragraph (b)(12).
0
c. Add new paragraph (b)(11) to read as set forth below.
0
d. In newly redesignated paragraph, (b)(12)(ii), add a comma after the
word ``rules''.
0
e. In paragraph (c), remove the words ``Grain Inspection, Packers and
Stockyards Administration Packers and Stockyards Programs'' and add the
words ``Packers and Stockyards Program, Grain Inspection, Packers and
Stockyards Administration (GIPSA)'' in their place.
0
f. In paragraph (e), removing the words ``the Act'' and adding the
words ``the Section'' in their place both times they appear.
0
g. At the end of the section, add an information collection citation to
read as follows:
Sec. 205.101 Certification--request and processing.
* * * * *
(b) * * *
(11) If a unique identifier will be used in the system, explain how
the unique identifier will be selected and how it will be used by the
system, including, but not limited to, how lists will be organized, and
how searches may be performed, using the unique identifier.
* * * * *
(Approved by the Office of Management and Budget under control
number 0580-0016)
0
4. Amend Sec. 205.102 by adding an information collection citation at
the end of the section to read as follows:
Sec. 205.102 Name of person subjecting a farm product to a security
interest, on EFS and master list--format.
* * * * *
(Approved by the Office of Management and Budget under control
number 0580-0016)
0
5. Amend Sec. 205.103, as follows:
0
a. Revise paragraph (a)(3) to read as set forth below.
0
b. Revise paragraph (a)(5), to read as set forth below.
0
c. Amend Sec. 205.103 by adding an information collection citation at
the end of the section to read as set forth below:
Sec. 205.103 EFS--minimum information.
(a) * * *
(3) Each county or parish in the same State where the farm product
is produced or located;
(4) * * *
(5) Social security number or other approved unique identifier or,
if other than a natural person, IRS taxpayer identification number or
other approved unique identifier of each such person;
* * * * *
(Approved by the Office of Management and Budget under control
number 0580-0016)
0
6. Amend Sec. 205.104 as follows:
0
a. In paragraph, (a)(3), add the words ``or located'' after the word
``produced''.
0
b. At the end of the section, add an information collection citation to
read as follows:
[[Page 56343]]
Sec. 205.104 Registration of buyer, commission merchant, or selling
agent--minimum information.
* * * * *
(Approved by the Office of Management and Budget under control
number 0580-0016)
0
7. Amend Sec. 205.105 as follows:
0
a. In paragraph (a), in the first sentence, add the words ``or
located'' after the word ``produced''.
0
b. In paragraph (a), in both of the following places in the last
sentence, add the words ``or approved unique identifier'' after ``in
numerical order by social security number'' and after ``IRS taxpayer
identification number''.
0
c. At the end of the section, add an information collection citation to
read as follows:
Sec. 205.105 Master list and portion thereof distributed to
registrants--format.
* * * * *
(Approved by the Office of Management and Budget under control
number 0580-0016)
0
8. Amend Sec. 205.106 as follows:
0
a. Remove the words ``subsection (c)(4)(D)(iv)'' and add the words
``subsection (c)(4)(C)(iv)'' in their place.
0
b. At the end of the section, add an information collection citation to
read as follows:
Sec. 205.106 Farm products.
* * * * *
(Approved by the Office of Management and Budget under control
number 0580-0016)
0
9. Amend Sec. 205.107
0
a. In paragraph (b), remove the words ``subsection (c)(4)(F)'' and add
the words ``subsection (c)(4)(E)'' in their place.
0
b. At the end of the section, add an information collection citation to
read as follows:
Sec. 205.107 Crop year.
* * * * *
(Approved by the Office of Management and Budget under control
number 0580-0016)
0
10. Amend Sec. 205.202 as follows:
0
a. In paragraph (b), remove the words ``signed by both the secured
party and the debtor,'' and add the words ``signed, authorized, or
otherwise authenticated by the debtor'' in their place.
0
b. At the end of the section, add an information collection citation to
read as follows:
Sec. 205.202 ``Effective financing statement'' or EFS.
* * * * *
(Approved by the Office of Management and Budget under control
number 0580-0016)
0
11. Amend Sec. 205.203 as follows:
0
a. Remove the words ``subsection (c)(4)(D)'' and add the words
``subsection (c)(4)(C)'' in their place.
0
b. At the end of the section, add an information collection citation to
read as follows:
Sec. 205.203 Place of filing EFS.
* * * * *
(Approved by the Office of Management and Budget under control
number 0580-0016)
0
12. Amend Sec. 205.204 by adding at the end of the section an
information collection citation to read as follows:
Sec. 205.204 Filing ``notice'' of EFS.
* * * * *
(Approved by the Office of Management and Budget under control
number 0580-0016)
Sec. 205.205 [Amended]
0
13. Amend Sec. 205.205, by removing the words ``subsection (c)(4)(H)''
and adding the words ``subsection (c)(4)(G)'' in their place both times
they appear.
0
14. Amend Sec. 205.206 as follows:
0
a. In paragraph (a), remove the comma immediately after the words
``subsection (c)(2)''; remove the words ``subsection (c)(4)(D)(iv)''
and add the words ``subsection (c)(4)(C)(iv)'' in their place.
0
b. At the end of the section, add an information collection citation to
read as follows:
Sec. 205.206 Farm products.
* * * * *
(Approved by the Office of Management and Budget under control
number 0580-0016)
0
15. Amend Sec. 205.207 as follows:
0
a. Revise the section heading to read as set forth below.
0
b. In paragraph (a), remove the words ``and ``reasonable description of
the property including county or parish,'''' and add the words ``and
``county or parish,'''' in their place.
0
c. In paragraph (a), remove the words ``subsections (c)(4)(D)(iv)'' and
add the words ``subsection (c)(4)(C)(iv)'' in their place.
0
d. In paragraph (c), remove the words ``product is or is to be
produced'' and add the words ``product is produced or located'' in
their place.
0
e. In paragraph (e), in the first sentence, remove the words ``and
property''.
0
f. In paragraph (e), in the last sentence, remove the words ``and
location''.
0
g. At the end of the section, add an information collection citation to
read as follows:
Sec. 205.207 ``Amount'' and ``County or parish''.
* * * * *
(Approved by the Office of Management and Budget under control
number 0580-0016)
0
16. Amend Sec. 205.208 by adding at the end of the section an
information collection citation to read as follows:
Sec. 205.208 Distribution of portions of master list--registration--
information to non-registrants on request.
* * * * *
(Approved by the Office of Management and Budget under control
number 0580-0016)
0
17. Amend Sec. 205.209 as follows:
0
a. In paragraph (a), remove the words ``subsection (c)(4)(E)'' and add
the words ``subsection (c)(4)(D)'' in their place.
0
b. Revise paragraph (c), to read as set forth below.
0
c. In paragraph (d), remove the words ``contain the signature of the
debtor'' and add the words ``be signed, authorized, or otherwise
authenticated by the debtor'' in their place.
0
d. At the end of the section, add an information collection citation to
read as follows:
Sec. 205.209 Amendment or continuation of EFS.
* * * * *
(c) The amendment must be filed in the same manner as the original
filing. Note the requirement of subsection (c)(4)(D). The amendment may
be filed electronically provided a State allows electronic filing of
financing statements without the signature of the debtor under
applicable State law under provisions of the Uniform Commercial Code.
An electronically filed amendment need not be signed. However, if an
original or reproduced paper document is filed, the amendment must be
signed, authorized, or otherwise authenticated by the debtor, and be
filed by the secured party.
* * * * *
(Approved by the Office of Management and Budget under control
number 0580-0016)
Sec. 205.210 [Amended]
0
18. Amend Sec. 205.210, in paragraph, (b), add the words ``or
located'' after the word ``produced'' both times it appears.
0
19. Amend Sec. 205.213 by adding an information collection citation at
the end of the section to read as follows:
Sec. 205.213 Obligations subject--``person indebted''--``debtor''.
* * * * *
[[Page 56344]]
(Approved by the Office of Management and Budget under control
number 0580-0016)
James E. Link,
Administrator, Grain Inspection, Packers and Stockyards Administration.
[FR Doc. 06-8268 Filed 9-26-06; 8:45 am]
BILLING CODE 3410-KD-P
