This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents.

Rules and Regulations Federal Register

43501 

Vol. 83, No. 166 

Monday, August 27, 2018 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 948 

[Doc. No. AMS–SC–18–0022; SC18–948–1 

FR] 

Irish Potatoes Grown in Colorado; 

Increased Assessment Rate for Area 

No. 2 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: This rule implements a 

recommendation from the Colorado 

Potato Administrative Committee 

(Committee) to increase the assessment 

rate established for Area No. 2 for the 

2018–2019 and subsequent fiscal 

periods. The assessment rate will 

remain in effect indefinitely unless 

modified, suspended, or terminated. 

DATES: Effective September 26, 2018. 

FOR FURTHER INFORMATION CONTACT: 

Barry Broadbent, Senior Marketing 

Specialist, or Gary Olson, Regional 

Director, Northwest Marketing Field 

Office, Marketing Order and Agreement 

Division, Specialty Crops Program, 

AMS, USDA; Telephone: (503) 326– 

2724, Fax: (503) 326–7440, or email: 

Barry.Broadbent@ams.usda.gov or 

GaryD.Olson@ams.usda.gov. 

Small businesses may request 

information on complying with this 

regulation by contacting Richard Lower, 

Marketing Order and Agreement 

Division, Specialty Crops Program, 

AMS, USDA, 1400 Independence 

Avenue SW, STOP 0237, Washington, 

DC 20250–0237; Telephone: (202) 720– 

2491, Fax: (202)720–8938, or email: 

Richard.Lower@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: This 

action, pursuant to 5 U.S.C. 553, 

amends regulations issued to carry out 

a marketing order as defined in 7 CFR 

900.2(j). This rule is issued under 

Marketing Agreement No. 97 and Order 

No. 948, as amended (7 CFR part 948), 

regulating the handling of Irish potatoes 

grown in Colorado. Part 948, (referred to 

as the ‘‘Order’’) is effective under the 

Agricultural Marketing Agreement Act 

of 1937, as amended (7 U.S.C. 601–674), 

hereinafter referred to as the ‘‘Act.’’ The 

Committee locally administers the 

Order and is comprised of producers 

and handlers operating within the area 

of production. 

The Department of Agriculture 

(USDA) is issuing this final rule in 

conformance with Executive Orders 

13563 and 13175. This action falls 

within a category of regulatory actions 

that the Office of Management and 

Budget (OMB) exempted from Executive 

Order 12866 review. Additionally, 

because this rule does not meet the 

definition of a significant regulatory 

action, it does not trigger the 

requirements contained in Executive 

Order 13771. See OMB’s Memorandum 

titled ‘‘Interim Guidance Implementing 

Section 2 of the Executive Order of 

January 30, 2017, titled ‘Reducing 

Regulation and Controlling Regulatory 

Costs’ ’’ (February 2, 2017). 

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. Under the Order, Colorado Area 

No. 2 potato handlers are subject to 

assessments. Funds to administer the 

Order are derived from such 

assessments. It is intended that the 

assessment rate as established herein 

will be applicable to all assessable 

potatoes in Area No. 2 for the 2018– 

2019 fiscal period, and continue until 

amended, suspended, or terminated. 

The Act provides that administrative 

proceedings must be exhausted before 

parties may file suit in court. Under 

section 608c(15)(A) of the Act, any 

handler subject to an order may file 

with USDA a petition stating that the 

order, any provision of the order, or any 

obligation imposed in connection with 

the order is not in accordance with law 

and request a modification of the order 

or to be exempted therefrom. Such 

handler is afforded the opportunity for 

a hearing on the petition. After the 

hearing, USDA would rule on the 

petition. The Act provides that the 

district court of the United States in any 

district in which the handler is an 

inhabitant, or has his or her principal 

place of business, has jurisdiction to 

review USDA’s ruling on the petition, 

provided an action is filed not later than 

20 days after the date of the entry of the 

ruling. 

The Order provides authority for each 

area Committee, with the approval of 

USDA, to formulate an annual budget of 

expenses and collect assessments from 

handlers to administer the program. The 

members are familiar with the 

Committee’s needs and with the costs of 

goods and services in their local area 

and are in a position to formulate an 

appropriate budget and assessment rate. 

The assessment rate is formulated and 

discussed in a public meeting and all 

directly affected persons have an 

opportunity to participate and provide 

input. 

This rule increases the assessment 

rate for Area No. 2 from $0.0033 to 

$0.006 per hundredweight of potatoes 

handled for the 2018–2019 and 

subsequent fiscal periods. The 

Committee established the current rate 

in 2013–2014 fiscal period to reduce the 

Committee’s monetary reserve to a level 

that it determined to be appropriate 

under the Order. Since that action, the 

reserve fund has been drawn down to 

approximately 15 percent of annual 

budgeted expenditures. The $0.006 per 

hundredweight assessment rate realigns 

annual assessment revenue with 

expected administrative expenses 

moving forward and will no longer 

require the utilization of the monetary 

reserve to fund a portion of the 

Committee’s budgeted expenditures. 

The Committee met on March 15, 

2018 to consider the Committee’s 

projected 2018–2019 financial 

requirements, the size of the 

Committee’s operating reserve, and the 

Order’s continuing assessment rate. The 

Committee unanimously recommended 

an assessment rate of $0.006 per 

hundredweight of potatoes for the 2018– 

2019 fiscal period. The $0.006 

assessment rate is $0.0027 higher than 

the rate previously in effect. Without the 

increase, anticipated assessment 

revenue would not have been sufficient 

to fund the Committee’s ongoing 

administrative function, and the balance 

in the Committee’s monetary reserve 

would not have been enough to cover 

the deficit. The assessment rate increase 

is necessary to maintain the 

Committee’s oversight activities at 

current levels and avoid a reduction in 

the program’s effectiveness. 

For the 2017–2018 fiscal period, the 

Committee adopted a budget of $79,623. 


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43502 Federal Register / Vol. 83, No. 166 / Monday, August 27, 2018 / Rules and Regulations 

The Committee recommended a similar 

level of budgeted expenditures for the 

2018–2019 fiscal period at its meeting in 

May 2018. The Committee anticipates 

its expenditures for the 2018–2019 fiscal 

period to be close to the amounts for the 

2017–2018 fiscal period. Budgeted 

expenditures for the 2017–2018 fiscal 

period included $66,110 for 

administrative expenses, $6,138 for 

office expenses, and $7,375 for 

facilities/utilities. The Committee’s 

annual budget has been relatively stable 

over the past five years, with average 

growth of approximately 2.7 percent. 

The Committee’s budget five years ago 

for the 2013–2014 fiscal period was 

$71,227, compared to the 2017–2018 

fiscal period budget of $79,623. 

The assessment rate recommended by 

the Committee was derived by 

considering anticipated expenses, 

expected shipments, and the amount of 

funds available in the authorized 

reserve. Expected income derived from 

handler assessments of $84,000 

(estimated 14,000,000 hundredweight 

times $0.006 per hundredweight) 

should be adequate to cover budgeted 

expenses of between $81,000 and 

$83,000 and put a small amount back 

into the Committee’s monetary reserve 

fund. Funds in the reserve (currently 

expected to be $11,848 at the end of the 

2017–2018 fiscal period) would be kept 

within the maximum permitted by 

§ 948.78. 

The assessment rate established by 

this rule will continue in effect 

indefinitely unless modified, 

suspended, or terminated by USDA 

upon recommendation and information 

submitted by the Committee or other 

available information. 

Although this assessment rate will be 

in effect for an indefinite period, the 

Committee will continue to meet prior 

to or during each fiscal period to 

recommend a budget of expenses and 

consider recommendations for 

modification of the assessment rate. The 

dates and times of Committee meetings 

are available from the Committee or 

USDA. Committee meetings are open to 

the public and interested persons may 

express their views at these meetings. 

USDA will evaluate Committee 

recommendations and other available 

information to determine whether 

modification of the assessment rate is 

needed. Further rulemaking will be 

undertaken as necessary. The 

Committee’s budget for subsequent 

fiscal periods will be reviewed and, as 

appropriate, approved by USDA. 

Final Regulatory Flexibility Analysis 

Pursuant to requirements set forth in 

the Regulatory Flexibility Act (RFA) (5 

U.S.C. 601–612), the Agricultural 

Marketing Service (AMS) has 

considered the economic impact of this 

rule on small entities. Accordingly, 

AMS has prepared this final regulatory 

flexibility analysis. 

The purpose of the RFA is to fit 

regulatory actions to the scale of 

businesses subject to such actions in 

order that small businesses will not be 

unduly or disproportionately burdened. 

Marketing orders issued pursuant to the 

Act, and the rules issued thereunder, are 

unique in that they are brought about 

through group action of essentially 

small entities acting on their own 

behalf. 

There are approximately 160 

producers of Colorado Area No. 2 

potatoes in the production area and 

approximately 60 handlers subject to 

regulation under the Order. Small 

agricultural producers are defined by 

the Small Business Administration 

(SBA) as those having annual receipts 

less than $750,000, and small 

agricultural service firms are defined as 

those whose annual receipts are less 

than $7,500,000 (13 CFR 121.201). 

According to data from USDA’s 

Market News, the 2016–2017 season 

weighted average f.o.b. price for 

Colorado potatoes was approximately 

$12.06 per hundredweight. The 

Committee reported that shipments for 

the 2016–2017 fiscal period were 13.9 

million hundredweight. Using the 

number of handlers, and assuming a 

normal distribution, the majority of 

handlers would have average annual 

receipts of less than $7,500,000 ($12.06 

times 13.9 million equals $167,634,000 

divided by 60 handlers equals 

$2,793,900 per handler). 

In addition, based on data from 

USDA’s National Agricultural Statistics 

Service, the season average producer 

price for Colorado potatoes for the 

2016–2017 crop year was approximately 

$9.60 per hundredweight. Based on 

producer price, shipment data, and the 

total number of Colorado Area No. 2 

potato producers, and assuming a 

normal distribution, the average annual 

producer revenue is above $750,000 

($9.60 times 13.9 million 

hundredweight equals $133,440,000 

divided by 160 producers equals 

$834,000 per producer). Thus, the 

majority of Colorado Area No. 2 potato 

handlers may be classified as small 

entities, while many of the Colorado 

Area No. 2 potato producers may be 

classified as large entities. 

This rule increases the assessment 

rate collected from handlers for the 

2018–2019 and subsequent fiscal 

periods from $0.0033 to $0.006 per 

hundredweight of Colorado Area No. 2 

potatoes. The Committee unanimously 

recommended the increase. The $0.006 

per hundredweight assessment rate 

established by this rule is $0.0027 

higher than the 2017–2018 rate. The 

quantity of assessable potatoes for the 

2018–2019 fiscal period is estimated at 

14 million hundredweight. Thus, the 

$0.006 rate is expected to provide 

$84,000 in assessment income. Income 

derived from handler assessments is 

expected to be adequate to cover 

budgeted expenses. 

The Committee adopted a budget of 

$79,623 for the 2017–2018 fiscal period 

and recommended a similar amount of 

budgeted expenditures for the 2018– 

2019 fiscal period at its scheduled May 

2018 meeting. The major budgeted 

expenditures for the 2017–2018 year 

included $66,110 for administrative 

expenses, $6,138 for office expenses, 

and $7,375 for facilities/utilities. 

Budgeted expenses for these items in 

2016–2017 were $65,894, $6,587, and 

$6,313, respectively. 

Prior to arriving at the recommended 

assessment rate, the Committee 

considered the benefits and costs related 

to establishing other assessment rates. 

However, the Committee determined 

that any assessment rate other than the 

$0.006 per hundredweight rate would 

either generate insufficient revenue to 

meet the Committee’s expected 

expenses for the 2018–2019 fiscal 

period or would result in a larger than 

desired addition to the Committee’s 

reserve. Based on estimated shipments, 

the established assessment rate of 

$0.006 should provide $84,000 in 

assessment income. The Committee 

determined that this level of assessment 

revenue would be adequate to cover 

budgeted expenses for the 2018–2019 

fiscal period without unduly increasing 

reserve funds. 

A review of historical information and 

preliminary information pertaining to 

the upcoming fiscal year indicates that 

the average producer price for the 2018– 

2019 season should be approximately 

$9.26 per hundredweight of potatoes. 

Therefore, the estimated assessment 

revenue for the 2018–2019 fiscal period 

as a percentage of total producer 

revenue would be about 0.06 percent. 

This action increases the assessment 

obligation imposed on handlers. While 

assessments impose some additional 

costs, such costs are minimal and 

uniform on all handlers. Some of the 

additional costs may be passed on to 

producers. However, these costs are 

offset by the benefits derived by the 

operation of the Order. 

In addition, the Committee’s meeting 

was widely publicized throughout the 

Colorado potato industry. All interested 


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Federal Register / Vol. 83, No. 166 / Monday, August 27, 2018 / Rules and Regulations 43503 

persons were invited to attend the 

meetings and participate in Committee 

deliberations on all issues. Like all 

Committee meetings, the March 15, 

2018, meeting was a public meeting and 

all entities, both large and small, were 

able to express views on this issue. 

In accordance with the Paperwork 

Reduction Act of 1995 (44 U.S.C. 

Chapter 35), the Order’s information 

collection requirements have been 

previously approved by the OMB and 

assigned OMB No. 0581–0178, 

Vegetable and Specialty Crops. No 

changes in those requirements are 

necessary as a result of this action. 

Should any changes become necessary, 

they would be submitted to OMB for 

approval. 

This rule imposes no additional 

reporting or recordkeeping requirements 

on either small or large Colorado potato 

handlers. As with all Federal marketing 

order programs, reports and forms are 

periodically reviewed to reduce 

information requirements and 

duplication by industry and public 

sector agencies. As mentioned in the 

initial regulatory flexibility analysis, 

USDA has not identified any relevant 

Federal rules that duplicate, overlap, or 

conflict with this final rule. 

AMS is 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. 

A proposed rule concerning this 

action was published in the Federal 

Register on May 24, 2018 (83 FR 24045). 

A copy of the proposed rule was 

provided to the handlers by the 

Committee. Finally, the proposal was 

made available through the internet by 

USDA and the Office of the Federal 

Register. A 30-day comment period 

ending June 25, 2018, was provided for 

interested persons to respond to the 

proposal. No comments were received. 

A small business guide on complying 

with fruit, vegetable, and specialty crop 

marketing agreements and orders may 

be viewed at: http://www.ams.usda.gov/ 

rules-regulations/moa/small-businesses. 

Any questions about the compliance 

guide should be sent to Richard Lower 

at the previously mentioned address in 

the FOR FURTHER INFORMATION CONTACT

section. 

After consideration of all relevant 

material presented, including the 

information and recommendation 

submitted by the Committee and other 

available information, it is hereby found 

that this rule will tend to effectuate the 

declared policy of the Act. 

List of Subjects in 7 CFR Part 948 

Marketing agreements, Potatoes, 

Reporting and recordkeeping 

requirements. 

For the reasons set forth in the 

preamble, 7 CFR part 948 is amended as 

follows: 

PART 948—IRISH POTATOES GROWN 

IN COLORADO 

■ 1. The authority citation for 7 CFR 

part 948 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

■ 2. Section 948.216 is revised to read 

as follows: 

§ 948.216 Assessment rate. 

On and after September 1, 2018, an 

assessment rate of $0.006 per 

hundredweight is established for 

Colorado Area No. 2 potatoes. 

Dated: August 22, 2018 

Bruce Summers, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. 2018–18560 Filed 8–24–18; 8:45 am] 

BILLING CODE 3410–02–P 

BUREAU OF CONSUMER FINANCIAL 

PROTECTION 

12 CFR Part 1026 

Truth in Lending (Regulation Z) Annual 

Threshold Adjustments (Credit Cards, 

HOEPA, and Qualified Mortgages) 

AGENCY: Bureau of Consumer Financial 

Protection. 

ACTION: Final rule; official 

interpretation. 

SUMMARY: The Bureau of Consumer 

Financial Protection (Bureau) is issuing 

this final rule amending the regulation 

text and official interpretations for 

Regulation Z, which implements the 

Truth in Lending Act (TILA). The 

Bureau is required to calculate annually 

the dollar amounts for several 

provisions in Regulation Z; this final 

rule revises, as applicable, the dollar 

amounts for provisions implementing 

TILA and amendments to TILA, 

including under the Credit Card 

Accountability Responsibility and 

Disclosure Act of 2009 (CARD Act), the 

Home Ownership and Equity Protection 

Act of 1994 (HOEPA), and the DoddFrank Wall Street Reform and Consumer 

Protection Act (Dodd-Frank Act). The 

Bureau is adjusting these amounts, 

where appropriate, based on the annual 

percentage change reflected in the 

Consumer Price Index (CPI) in effect on 

June 1, 2018. 

DATES: This final rule is effective 

January 1, 2019. 

FOR FURTHER INFORMATION CONTACT: 

Monique Chenault, Paralegal, and 

Shelley Thompson, Counsel, Office of 

Regulations, at (202) 435–7700. If you 

require this document in an alternative 

electronic format, please contact CFPB_

Accessibility@cfpb.gov. 

SUPPLEMENTARY INFORMATION: The 

Bureau is amending the regulation text 

and official interpretations for 

Regulation Z, which implements TILA, 

to update the dollar amounts of various 

thresholds that are adjusted annually 

based on the annual percentage change 

in the CPI as published by the Bureau 

of Labor Statistics (BLS). Specifically, 

for open-end consumer credit plans 

under TILA, the threshold that triggers 

requirements to disclose minimum 

interest charges will remain unchanged 

at $1.00 in 2019. For open-end 

consumer credit plans under the CARD 

Act amendments to TILA, the adjusted 

dollar amount in 2019 for the safe 

harbor for a first violation penalty fee 

will increase by $1 to $28 and the 

adjusted dollar amount for the safe 

harbor for a subsequent violation 

penalty fee will increase by $1 to $39. 

For HOEPA loans, the adjusted total 

loan amount threshold for high-cost 

mortgages in 2019 will be $21,549. The 

adjusted points-and-fees dollar trigger 

for high-cost mortgages in 2019 will be 

$1,077. For qualified mortgages, which 

receive certain protections from liability 

under the ability-to-repay rule, the 

maximum thresholds for total points 

and fees in 2019 will be 3 percent of the 

total loan amount for a loan greater than 

or equal to $107,747; $3,232 for a loan 

amount greater than or equal to $64,648 

but less than $107,747; 5 percent of the 

total loan amount for a loan greater than 

or equal to $21,549 but less than 

$64,648; $1,077 for a loan amount 

greater than or equal to $13,468 but less 

than $21,549; and 8 percent of the total 

loan amount for a loan amount less than 

$13,468. 

I. Background 

A. Credit Card Annual Adjustments 

Minimum Interest Charge Disclosure 

Thresholds 

Sections 1026.6(b)(2)(iii) and 

1026.60(b)(3) of Regulation Z implement 

sections 127(a)(3) and 127(c)(1)(A)(ii)(II) 

of TILA. Sections 1026.6(b)(2)(iii) and 

1026.60(b)(3) require the disclosure of 

any minimum interest charge exceeding 

$1.00 that could be imposed during a 

billing cycle and provide that, for openend consumer credit plans, the 

minimum interest charge thresholds 


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