[Federal Register Volume 60, Number 66 (Thursday, April 6, 1995)]
[Rules and Regulations]
[Pages 17433-17434]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-8425]



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Rules and Regulations
                                                Federal Register
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Federal Register / Vol. 60, No. 66 / Thursday, April 6, 1995 / Rules 
and Regulations
[[Page 17433]]

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 946

[Docket No. FV95-946-1IFR]


Irish Potatoes Grown in Washington; Expenses and Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: This interim final rule authorizes expenditures and 
establishes an assessment rate under Marketing Order No. 946 for the 
1995-96 fiscal period. Authorization of this budget enables the State 
of Washington Potato Committee (Committee) to incur expenses that are 
reasonable and necessary to administer the program. Funds to administer 
this program are derived from assessments on handlers.

DATES: Effective July 1, 1995, through June 30, 1996. Comments received 
by May 8, 1995, 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 
2523-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 2523-S, Washington, DC 20090-6456, telephone 202-720-
9918, 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.

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. 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 is issuing this rule in conformance with Executive 
Order 12866.
    This interim final rule has been reviewed under Executive Order 
12778, Civil Justice Reform. Under the provisions of the marketing 
order now in effect, Washington potatoes are subject to assessments. It 
is intended that the assessment rate as issued herein will be 
applicable to all assessable potatoes handled during the 1995-96 fiscal 
period, which begins July 1, 1995, and ends June 30, 1996. This interim 
final 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 requesting 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 in equity to review 
the Secretary's ruling on the petition, provided a bill in equity is 
filed not later than 20 days after the date of the entry of the ruling.
    Pursuant to the requirements set forth in the Regulatory 
Flexibility Act (RFA), the Administrator of the Agricultural Marketing 
Service (AMS) has considered the economic impact of the rule on small 
entities.
    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 under 
this marketing order, and approximately 50 handlers. Small agricultural 
producers have been defined by the Small Business Administration (13 
CFR 121.601) as those having annual receipts of 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.
    The budget of expenses for the 1995-96 fiscal period was prepared 
by the State of Washington Potato Committee, the agency responsible for 
local administration of the marketing order, and submitted to the 
Department for approval. The members of the Committee are producers and 
handlers of Washington potatoes. They are familiar with the Committee's 
needs and with the costs of goods and services in their local area and 
are thus in a position to formulate an appropriate budget. The budget 
was formulated and discussed in a public meeting. Thus, all directly 
affected persons have had an opportunity to participate and provide 
input.
    The assessment rate recommended by the Committee was derived by 
dividing anticipated expenses by expected shipments of Washington 
potatoes. Because that rate will be applied to actual shipments, it 
must be established at a rate that will provide sufficient income to 
pay the Committee's expenses.
    The Committee met February 22, 1995, and unanimously recommended a 
1995-96 budget of $42,300, $4,200 more than the previous year. Budget 
items for 1995-96 which have increased compared to those budgeted for 
1994-95 (in parentheses) are: Miscellaneous, $2,000 ($1,500), audit, 
$1,500 ($1,000), and compliance audits, $6,000 ($5,200). 
[[Page 17434]] The Committee also recommended workman's compensation 
tax expenses of $400 for which no funding was recommended last year and 
$17,400 for an agreement with the Washington State Potato Commission to 
provide certain services to the Committee as specified in the 
agreement. Included in the $17,400 for this year are salaries and 
salary expenses which were budgeted separately last year at $11,200 and 
$1,800 and other expenses which were $2,400 for last year. In this 
year's budget, these items are included under the Commission agreement.
    The Committee also unanimously recommended an assessment rate of 
$0.003 per hundredweight, $0.002 less than last season. This rate, when 
applied to anticipated shipments of 9 million hundredweight, will yield 
$27,000 in assessment income. This, along with $15,300 from the 
Committee's authorized reserve will be adequate to cover budgeted 
expenses. Funds in the reserve as of January 31, 1995, were $75,025, 
which is within the maximum permitted by the order of two fiscal 
periods' expenses.
    While this rule will impose some additional costs on handlers, the 
costs are 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. Therefore, the Administrator of the AMS has determined 
that this rule will not have a significant economic impact on a 
substantial number of small entities.
    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, 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 because: (1) The Committee needs to have sufficient funds to pay 
its expenses which are incurred on a continuous basis; (2) the fiscal 
period begins on July 1, 1995, and the marketing order requires that 
the rate of assessment for the fiscal period apply to all assessable 
potatoes handled during the fiscal period; (3) handlers are aware of 
this rule which was unanimously recommended by the Committee at a 
public meeting and is similar to other budget rules 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.

    2. A new Sec. 946.247 is added to read as follows:

    Note: This section will not appear in the Code of Federal 
Regulations.


Sec. 946.247  Expenses and assessment rate.

    Expenses of $42,300 by the State of Washington Potato Committee are 
authorized, and an assessment rate of $0.003 per hundredweight of 
assessable potatoes is established for the fiscal period ending June 
30, 1996. Unexpended funds may be carried over as a reserve.

    Dated: March 31, 1995.
Sharon Bomer Lauritsen,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 95-8425 Filed 4-5-95; 8:45 am]
BILLING CODE 3410-02-P