Federal Register / Vol. 62, No. 71 / Monday, April 14, 1997 / Rules and Regulations 18021

For reasons set forth in the preamble,

title 7, Code of Federal Regulations,

parts 56 and 70 is amended as follows:

PART 56—GRADING OF SHELL EGGS

1. The authority citation for part 56

continues to read as follows:

Authority: 7 U.S.C. 1621–1627.

2. Section 56.46 is amended by

revising paragraphs (b) and (c) to read

as follows:

§ 56.46 On a fee basis.

* * * * *

(b) Fees for grading services will be

based on the time required to perform

the services. The hourly charge shall be

$38.96 and shall include the time

actually required to perform the grading,

waiting time, travel time, and any

clerical costs involved in issuing a

certificate.

(c) Grading services rendered on

Saturdays, Sundays, or legal holidays

shall be charged for at the rate of $43.24

per hour. Information on legal holidays

is available from the Supervisor.

3. Section 56.47 is revised to read as

follows:

§ 56.47 Fees for appeal grading or review

of a grader’s decision.

The cost of an appeal grading or

review of a grader’s decision shall be

borne by the appellant at an hourly rate

of $30.56 for the time spent in

performing the appeal and travel time to

and from the site of the appeal, plus any

additional expenses. If the appeal

grading or review of a grader’s decision

discloses that a material error was made

in the original determination, no fee or

expenses will be charged.

4. Section 56.52 is amended by

revising paragraph (a)(4) to read as

follows:

§ 56.52 Continuous grading performed on

resident basis.

* * * * *

(a) * * *

(4) An administrative service charge

based upon the aggregate number of 30-

dozen cases of all shell eggs handled in

the plant per billing period multiplied

by $0.038, except that the minimum

charge per billing period shall be $225

and the maximum charge shall be

$2,250. The minimum charge also

applies where an approved application

is in effect and no product is handled.

* * * * *

5. Section 56.54 is amended by

revising paragraph (a)(2) to read as

follows:

§ 56.54 Charges for continuous grading

performed on a nonresident basis.

* * * * *

(a) * * *

(2) An administrative service charge

equal to 25 percent of the grader’s total

salary costs. A minimum charge of $225

will be made each billing period. The

minimum charge also applies where an

approved application is in effect and no

product is handled.

* * * * *

PART 70—VOLUNTARY GRADING OF

POULTRY PRODUCTS AND RABBIT

PRODUCTS

6. The authority citation for part 70

continues to read as follows:

Authority: 7 U.S.C. 1621–1627.

7. Section 70.71 is amended by

revising paragraphs (b) and (c) to read

as follows:

§ 70.71 On a fee basis.

* * * * *

(b) Fees for grading services will be

based on the time required to perform

such services for class, quality, quantity

(weight test), or condition, whether

ready-to-cook poultry, ready-to-cook

rabbits, or specified poultry food

products are involved. The hourly

charge shall be $38.96 and shall include

the time actually required to perform

the work, waiting time, travel time, and

any clerical costs involved in issuing a

certificate.

(c) Grading services rendered on

Saturdays, Sundays, or legal holidays

shall be charged for at the rate of $43.24

per hour. Information on legal holidays

is available from the Supervisor.

8. Section 70.72 is revised to read as

follows:

§ 70.72 Fees for appeal grading, or

examination or review of a grader’s

decision.

The costs of an appeal grading, or

examination or review of a grader’s

decision, will be borne by the appellant

at an hourly rate of $30.56 for the time

spent in performing the appeal and

travel time to and from the site of the

appeal, plus any additional expenses. If

the appeal grading, or examination or

review of a grader’s decision, discloses

that a material error was made in the

original determination, no fee or

expenses will be charged.

9. Section 70.76 is amended by

revising paragraph (a)(2) to read as

follows:

§ 70.76 Charges for continuous poultry

grading performed on a nonresident basis.

* * * * *

(a) * * *

(2) An administrative service charge

equal to 25 percent of the grader’s total

salary costs. A minimum charge of $225

will be made each billing period. The

minimum charge also applies where an

approved application is in effect and no

product is handled.

* * * * *

10. Section 70.77 is amended by

revising paragraphs (a)(4) and (a)(5) to

read as follows:

§ 70.77 Charges for continuous poultry or

rabbit grading performed on a resident

basis.

* * * * *

(a) * * *

(4) For poultry grading: An

administrative service charge based

upon the aggregate weight of the total

volume of all live and ready-to-cook

poultry handled in the plant per billing

period computed in accordance with the

following: Total pounds per billing

period multiplied by $0.00033, except

that the minimum charge per billing

period shall be $225 and the maximum

charge shall be $2,250. The minimum

charge also applies where an approved

application is in effect and no product

is handled.

(5) For rabbit grading: An

administrative service charge equal to

25 percent of the grader’s total salary

costs. A minimum charge of $225 will

be made each billing period. The

minimum charge also applies where an

approved application is in effect and no

product is handled.

* * * * *

Dated: April 7, 1997.

Lon Hatamiya,

Administrator.

[FR Doc. 97–9478 Filed 4–11–97; 8:45 am]

BILLING CODE 3410–02–P

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 946

[Docket No. FV97–946–1 IFR]

Irish Potatoes Grown in Washington;

Amended Assessment Rate

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Interim final rule with request

for comments.

SUMMARY: This interim final rule

decreases the assessment rate

established for the State of Washington

Potato Committee (Committee) under

Marketing Order No. 946 for the 1997–

98 and subsequent fiscal periods. The

Committee is responsible for local

administration of the marketing order

which regulates the handling of Irish

potatoes grown in Washington.
18022 Federal Register / Vol. 62, No. 71 / Monday, April 14, 1997 / Rules and Regulations

Authorization to assess potato handlers

enables the Committee to incur

expenses that are reasonable and

necessary to administer the program.

DATES: Effective on July 1, 1997.

Comments received by May 14, 1997,

will be considered prior to issuance of

a final rule.

ADDRESSES: Interested persons are

invited to submit written comments

concerning this rule. Comments must be

sent in triplicate to the Docket Clerk,

Fruit and Vegetable Division, AMS,

USDA, P.O. Box 96456, room 2525–S,

Washington, DC 20090–6456, FAX 202–

720–5698. Comments should reference

the docket number and the date and

page number of this issue of the Federal

Register and will be available for public

inspection in the Office of the Docket

Clerk during regular business hours.

FOR FURTHER INFORMATION CONTACT:

Martha Sue Clark, Marketing Order

Administration Branch, Fruit and

Vegetable Division, AMS, USDA, P.O.

Box 96456, room 2525–S, Washington,

DC 20090–6456; telephone 202–720–

9918; FAX 202–720–5698, or Dennis L.

West, Northwest Marketing Field Office,

Fruit and Vegetable Division, AMS,

USDA, Green-Wyatt Federal Building,

room 369, 1220 Southwest Third

Avenue, Portland, OR 97204; telephone

503–326–2724; FAX 503–326–7440.

Small businesses may request

information on compliance with this

regulation by contacting Jay Guerber,

Marketing Order Administration

Branch, Fruit and Vegetable Division,

AMS, USDA, P.O. Box 96456, room

2525–S, Washington, DC 20090–6456;

telephone 202–720–2491; FAX 202–

720–5698.

SUPPLEMENTARY INFORMATION: This rule

is issued under Marketing Agreement

No. 113 and Order No. 946, both as

amended (7 CFR part 946) regulating the

handling of Irish potatoes grown in

Washington, hereinafter referred to as

the ‘‘order.’’ The marketing agreement

and order are effective under the

Agricultural Marketing Agreement Act

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

hereinafter referred to as the ‘‘Act.’’

The Department of Agriculture

(Department) is issuing this rule in

conformance with Executive Order

12866.

This rule has been reviewed under

Executive Order 12988, Civil Justice

Reform. Under the marketing order now

in effect, Washington potato handlers

are subject to assessments. Funds to

administer the order are derived from

such assessments. It is intended that the

assessment rate as issued herein will be

applicable to all assessable potatoes

beginning July 1, 1997, and continuing

until amended, suspended, or

terminated. This rule will not preempt

any State or local laws, regulations, or

policies, unless they present an

irreconcilable conflict with this rule.

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 the Secretary 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 the Secretary 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 the Secretary’s ruling on the

petition, provided an action is filed not

later than 20 days after the date of the

entry of the ruling.

This rule decreases the assessment

rate established for the Committee for

the 1997–98 and subsequent fiscal

periods from $0.003 to $0.002 per

hundredweight.

The Washington potato marketing

order provides authority for the

Committee, with the approval of the

Department, to formulate an annual

budget of expenses and collect

assessments from handlers to administer

the program. The members of the

Committee are producers and handlers

of Washington potatoes. They are

familiar with the Committee’s needs and

with the costs for goods and services in

their local area and are thus in a

position to formulate an appropriate

budget and assessment rate. The

assessment rate is formulated and

discussed in a public meeting. Thus, all

directly affected persons have an

opportunity to participate and provide

input.

For the 1996–97 and subsequent fiscal

periods, the Committee recommended,

and the Department approved, an

assessment rate that would continue in

effect from fiscal period to fiscal period

indefinitely unless modified,

suspended, or terminated by the

Secretary upon recommendation and

information submitted by the

Committee or other information

available to the Secretary.

The Committee met on February 7,

1997, and unanimously recommended

1997–98 expenditures of $44,400 and an

assessment rate of $0.002 per

hundredweight of potatoes. In

comparison, last year’s budgeted

expenditures were $42,500. The

assessment rate of $0.002 is $0.001 less

than the rate currently in effect. As the

Committee’s reserve exceeds the amount

authorized in the order of two fiscal

periods’ operational expenses, the

Committee voted to lower its assessment

rate and use more of the reserve to cover

its expenses. The Committee discussed

alternatives to this rule, including

alternative expenditure levels, but

recommended that the major

expenditures for the 1997–98 fiscal

period should include $18,800 for an

agreement with the Washington State

Potato Commission to provide

miscellaneous services to the Committee

and $6,000 for compliance audits.

Budgeted expenses for these items in

1996–97 were $17,400 and $6,000,

respectively.

The assessment rate recommended by

the Committee was derived by dividing

anticipated expenses by expected

shipments of Washington potatoes.

Potato shipments for the year are

estimated at 10,000,000 hundredweight,

which should provide $20,000 in

assessment income. Income derived

from handler assessments, along with

funds from the Committee’s authorized

reserve, will be adequate to cover

budgeted expenses. Funds in the reserve

will be kept within the maximum

permitted by the order.

Pursuant to requirements set forth in

the Regulatory Flexibility Act (RFA), the

Agricultural Marketing Service (AMS)

has considered the economic impact of

this action on small entities.

Accordingly, AMS has prepared this

initial regulatory flexibility analysis.

The purpose of the RFA is to fit

regulatory actions to the scale of

business 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. Thus, both statutes have small

entity orientation and compatibility.

There are approximately 450

producers of Washington potatoes in the

production area and approximately 40

handlers subject to regulation under the

marketing order. Small agricultural

producers have been defined by the

Small Business Administration (13 CFR

121.601) as those having annual receipts

less than $500,000 and small

agricultural service firms are defined as

those whose annual receipts are less

than $5,000,000. The majority of

Washington potato producers and

handlers may be classified as small

entities.
Federal Register / Vol. 62, No. 71 / Monday, April 14, 1997 / Rules and Regulations 18023

This rule decreases the assessment

rate established for the Committee and

collected from handlers for the 1997–98

and subsequent fiscal periods from

$0.003 to $0.002 per hundredweight.

The Committee unanimously

recommended 1997–98 expenditures of

$44,400 and an assessment rate of

$0.002 per hundredweight of potatoes.

The assessment rate of $0.002 is $0.001

less than the rate currently in effect. As

the Committee’s reserve exceeds the

amount authorized in the order of two

fiscal periods’ operational expenses, the

Committee voted to lower its assessment

rate and use more of the reserve to cover

its expenses.

The Committee discussed alternatives

to this rule, including alternative

expenditure levels, but recommended

that the major expenditures for the

1997–98 fiscal period should include

$18,800 for an agreement with the

Washington State Potato Commission to

provide miscellaneous services to the

Committee and $6,000 for compliance

audits. The Committee also discussed

the alternative of not decreasing the

assessment rate. However, it decided

against this course of action because

continuation of the higher rate would

not allow it to bring its operating reserve

in line with the maximum amount

authorized under the order. The

reduced assessment rate will require the

Committee to use more of its reserve for

authorized expenses, and help bring the

reserve within authorized levels.

Potato shipments for the year are

estimated at 10,000,000 hundredweight,

which should provide $20,000 in

assessment income. Income derived

from handler assessments, along with

funds from the Committee’s authorized

reserve, will be adequate to cover

budgeted expenses. Funds in the reserve

will be kept within the maximum

permitted by the order.

Recent price information indicates

that the grower price for the 1997–98

marketing season will range between

$5.00 and $8.00 per hundredweight of

potatoes. Therefore, the estimated

assessment revenue for the 1997–98

fiscal period as a percentage of total

grower revenue will range between .025

and .04 percent.

This action will reduce the

assessment obligation imposed on

handlers. While this rule will impose

some additional costs on handlers, the

costs are minimal and in the form of

uniform assessments on all handlers.

Some of the additional costs may be

passed on to producers.

However, these costs will be offset by

the benefits derived by the operation of

the marketing order. In addition, the

Committee’s meeting was widely

publicized throughout the Washington

potato industry and all interested

persons were invited to attend the

meeting and participate in Committee

deliberations on all issues. Like all

Committee meetings, the February 7,

1997, meeting was a public meeting and

all entities, both large and small, were

able to express views on this issue.

Finally, interested persons are invited to

submit information on the regulatory

and informational impacts of this action

on small businesses.

This action will not impose any

additional reporting or recordkeeping

requirements on either small or large

Washington 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.

After consideration of all relevant

matter presented, including the

information and recommendation

submitted by the Committee and other

available information, it is hereby found

that this rule, as hereinafter set forth,

will tend to effectuate the declared

policy of the Act.

Pursuant to 5 U.S.C. 553, it is also

found and determined upon good cause

that it is impracticable, unnecessary,

and contrary to the public interest to

give preliminary notice prior to putting

this rule into effect, and that good cause

exists for not postponing the effective

date of this rule until 30 days after

publication in the Federal Register

because: (1) The Committee needs to

have sufficient funds to pay its expenses

which are incurred on a continuous

basis; (2) the 1997–98 fiscal period

begins on July 1, 1997, and the

marketing order requires that the rate of

assessment for each fiscal period apply

to all assessable potatoes handled

during such fiscal period; (3) handlers

are aware of this action which was

unanimously recommended by the

Committee at a public meeting and is

similar to other assessment rate actions

issued in past years; and (4) this interim

final rule provides a 30-day comment

period, and all comments timely

received will be considered prior to

finalization of this rule.

List of Subjects in 7 CFR Part 946

Marketing agreements, Potatoes,

Reporting and recordkeeping

requirements.

For the reasons set forth in the

preamble, 7 CFR part 946 is amended as

follows:

PART 946—IRISH POTATOES GROWN

IN WASHINGTON

1. The authority citation for 7 CFR

part 946 continues to read as follows:

Authority: 7 U.S.C. 601–674.

§ 946.248 [Amended]

2. Section 946.248 is amended by

removing ‘‘July 1, 1996,’’ and adding in

its place ‘‘July 1, 1997,’’ and by

removing ‘‘$0.003’’ and adding in its

place ‘‘$0.002.’’

Dated: April 7, 1997.

Sharon Bomer Lauritsen,

Acting Director, Fruit and Vegetable Division.

[FR Doc. 97–9477 Filed 4–11–97; 8:45 am]

BILLING CODE 3410–02–P

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 956

[FV96–956–3 FR]

Sweet Onions Grown in the Walla

Walla Valley of Southeast Washington

and Northeast Oregon; Establishment

of Container Marking Requirements

and Special Purpose Shipment

Exemptions

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Final rule.

SUMMARY: This final rule (1) establishes

container marking requirements for all

shipments of Walla Walla Sweet

Onions, and (2) establishes exemptions

from assessment and container marking

requirements for certain special purpose

shipments of Walla Walla Sweet

Onions. This rule will contribute to the

efficient marketing of Walla Walla

Sweet Onions and assist in program

compliance. This rule was

recommended by the Walla Walla Sweet

Onion Committee (Committee), the

agency responsible for the local

administration of the marketing order

for sweet onions grown in the Walla

Walla Valley.

EFFECTIVE DATE: This final rule becomes

effective April 15, 1997.

FOR FURTHER INFORMATION CONTACT:

Robert J. Curry, Northwest Marketing

Field Office, Marketing Order

Administration Branch, Fruit and

Vegetable Division, AMS, USDA, 1220

SW Third Avenue, room 369, Portland,

Oregon 97204–2807; telephone: (503)

326–2043; or George J. Kelhart,

Marketing Order Administration

Branch, Fruit and Vegetable Division,

AMS, USDA, P.O. Box 96456, room