Federal Register / Vol. 61, No. 22 / Thursday, February 1, 1996 / Rules and Regulations 3547

Pursuant to requirements set forth in

the Regulatory Flexibility Act (RFA), the

Administrator of the Agricultural

Marketing Service (AMS) has

considered the economic impact of this

action 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 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 65 handlers

of Idaho-Eastern Oregon potatoes that

are subject to regulation under the order

and approximately 1,600 producers in

the production area. Small agricultural

service firms, which include handlers of

Idaho-Eastern Oregon potatoes, have

been defined by the Small Business

Administration (13 CFR 121.601) as

those whose annual receipts are less

than $5,000,000, and small agricultural

producers are defined as those whose

annual receipts are less than $500,000.

A majority of potato handlers regulated

under the order may be classified as

small entities. A majority of producers

may also be classified as small entities.

This rule finalizes an interim final

rule which amended the handling

regulation in § 945.341 by specifying

that: (1) All cartons (except when used

as master containers) be conspicuously

marked as to size of the potatoes in the

carton; (2) for all varieties, when 50-

pound containers are marked with a

count, size, or similar designation, the

potatoes contained therein must meet

the count, average count, and weight

ranges established within the handling

regulation; and (3) all Idaho-Eastern

Oregon potatoes packed in cartons of

any size (except when cartons are used

as master containers) shall be U.S. No.

1 grade or better. The interim final rule

also included several conforming

changes to recognize that the order

regulates shipments of potatoes within,

as well as outside, the production area.

These changes were recommended by

the Committee at its August 9, 1995,

meeting. The Committee’s

recommendations are authorized

pursuant to §§ 945.51 and 945.52 of the

order. This rule will continue the

improvement in the marketing of IdahoEastern Oregon potatoes and improve

returns to producers.

A recent order amendment (60 FR

29724; June 5, 1995), added authority to

§ 945.52 to require accurate and uniform

marking and labeling of containers in

which Idaho-Eastern Oregon potatoes

are shipped. With this authority in the

order, the Committee recommended

requiring that all cartons shall be

conspicuously marked as to potato size;

i.e., marked so that the potato size is

noticeable on the carton. The Committee

recommended this requirement to

reduce confusion in the marketplace as

to the size of the potatoes in cartons.

While most cartons already are marked

as to size, the Committee reported that

there have been many instances when

product size in unmarked cartons was

misrepresented through the marketing

chain; (e.g., 100-count size potatoes in

50-pound cartons being represented as

90-count size). This type of

misrepresentation created market

confusion, damaged buyer acceptance,

and depressed prices. The marking

requirement should continue in effect to

prevent such problems.

In addition, the interim final rule

changed the pack requirements in

§ 945.341(c). For several decades, the

handling regulation specified that when

long varieties of potatoes in 50-pound

containers are marked with a count, size

or similar designation, the potatoes

contained therein must meet the count,

average count and weight ranges

established within the handling

regulation. This benefitted buyers and

sellers by reducing market confusion

and misrepresentation related to the

marking of count and weight ranges on

50-pound containers. In recent years,

there has been an increase in the

number of plantings of round varieties

grown in the Idaho-Eastern Oregon

production area. Therefore, the

Committee recommended that this pack

requirement, which the industry has

found to be beneficial for long varieties,

be extended to all varieties. The

extension of the pack requirement to all

varieties should be continued to further

the marketing of potatoes from the

production area.

The second aspect of the change in

pack requirements recommended by the

Committee was the establishment of a

requirement that all Idaho-Eastern

Oregon potatoes packed in cartons of

any size (except when cartons are used

as master containers) shall be U.S. No.

1 grade or better. Previously, the

handling regulation required this only

of potatoes packed in 50-pound cartons

(except when used as master

containers). Some buyers had indicated

that a smaller carton size is more

desirable than the 50-pound carton.

Those buyers indicated that they need a

smaller carton that takes up less storage

space and is easier to lift and handle.

However, those buyers still want to be

provided with the same quality of

potatoes; i.e., U.S. No. 1 grade or better.

Previously, the grade of potatoes packed

in other than 50-pound cartons had to

be U.S. No. 2 grade or better. This

finalization of change in the handling

regulation reflects the industry’s

intention to provide a high quality

product, regardless of carton size used.

The change should remain in effect so

that goal can be met.

Another order amendment revised

§ 945.9 to broaden the scope of the order

to authorize regulating shipments of

potatoes within, as well as outside, the

production area. Conforming changes

were made in § 945.341(d)(3) regarding

inspection and certification procedures

so these procedures cover all shipments

of potatoes, not only shipments made

outside the production area.

The changes to the handling

regulation were published in the

Federal Register as an interim final rule

on November 24, 1995 (60 FR 57904).

That rule provided that interested

persons could file comments through

December 26, 1995. No comments were

received.

Based on available information, the

Administrator of the AMS has

determined that this action will not

have a significant economic impact on

a substantial number of small entities.

After consideration of all relevant

material presented, including the

Committee’s recommendation and other

available information, it is found that

this rule, as hereinafter set forth, will

tend to effectuate the declared policy of

the Act.

List of Subjects in 7 CFR Part 945

Marketing agreements, Potatoes,

Reporting and recordkeeping

requirements.

For the reasons set forth in the

preamble, 7 CFR part 945 is amended as

follows:

PART 945—IRISH POTATOES GROWN

IN CERTAIN DESIGNATED COUNTIES

IN IDAHO, AND MALHEUR COUNTY,

OREGON

Accordingly, the interim final rule

amending 7 CFR part 945 which was

published at 60 FR 57904 on November

24, 1995, is adopted as a final rule

without change.

Dated: January 24, 1996.

Sharon Bomer Lauritsen

Deputy Director, Fruit and Vegetable Division.

[FR Doc. 96–2065 Filed 1–31–96; 8:45 am]

BILLING CODE 3410–02–P
3548 Federal Register / Vol. 61, No. 22 / Thursday, February 1, 1996 / Rules and Regulations

Commodity Credit Corporation

7 CFR Part 1485

Agreements for the Development of

Foreign Markets for Agricultural

Commodities

AGENCY: Commodity Credit Corporation

(CCC).

ACTION: Interim final rule.

SUMMARY: This interim final rule

amends regulations implementing the

Market Promotion Program (MPP)

authorized by Section 203 of the

Agricultural Trade Act of 1978. This

rule revises procedural and

documentation requirements pertaining

to program participants’ contracts with

third parties. The rule also corrects an

erroneous cross-reference.

DATES: This interim rule is effective on

February 1, 1996. Comments must be

received in writing by February 15, 1996

to be assured of consideration.

ADDRESSES: Sharon L. McClure,

Director, Marketing Operations Staff,

Foreign Agricultural Service, United

States Department of Agriculture, 14th

and Independence Avenue, SW.,

Washington, DC 20250–1042.

FOR FURTHER INFORMATION CONTACT:

Sharon L. McClure, (202) 720–5521.

SUPPLEMENTARY INFORMATION: This

interim final rule is issued in

conformance with Executive Order

12866. It has been determined to be

significant for the purposes of E.O.

12866 and, therefore, has been reviewed

by the Office of Mangement and Budget

(OMB).

Regulatory Flexibility Act

It has been determined that the

Regulatory Flexibility Act is not

applicable to the interim final rule since

CCC is not required by 5 U.S.C. 553 or

any other provision of law to publish a

notice of rulemaking with respect to the

subject matter of this rule.

Executive Order 12372

This program is not subject to the

provisions of Executive Order 12372,

which requires intergovernmental

consultation with State and local

officials. See notice related to 7 CFR

part 3015, subpart V, published at 48 FR

29115 (June 24, 1983).

Executive Order 12778

This rule has been reviewed under the

Executive Order 12778, Civil Justice

Reform. The rule would have

preemptive effect with respect to any

state or local laws, regulations, or

policies which conflict with such

provisions or which otherwise impede

their full implementation. The rule

would not have retroactive effect. The

rule does not require that administrative

remedies be exhausted before suit may

be filed.

Background

The Department of Agriculture is

committed to carrying out its statutory

and regulatory mandates in a manner

that best serves the public interest.

Therefore, where legal discretion

permits, the Department actively seeks

to promulgate regulations that promote

economic growth, create jobs, are

minimally burdensome and are easy for

the public to understand, use or comply

with. In short, the Department is

committed to issuing regulations that

maximize net benefits to society and

minimize costs imposed by those

regulations.

On February 1, 1995, Commodity

Credit Corporation (‘‘CCC’’) published

final rules governing the MPP. These

new rules were applicable beginning

with a participant’s 1995 marketing

year. Following publication, CCC

participated with interested parties in

five information sessions designed to

familiarize participants with the new

regulations and offer participants an

additional opportunity to identify any

problem areas. At these sessions,

participants expressed concern that new

regulatory requirements applicable to a

participant’s contracts with third parties

imposed an undue administrative

burden and, because of the relatively

late announcement of 1995 MPP

allocations, could significantly delay

effective implementation of some

participants’ 1995 programs.

Specifically, participants expressed

concern regarding the requirements for

a price or cost analysis for each contract,

7 CFR 1485.23(c)(2)(v), and for certain

procedural requirements in the

solicitation of bids, 7 CFR

1485.23(c)(2)(vi).

CCC agrees that these requirements

may unnecessarily increase costs to

participants and may delay

implementation of many activities and

thereby be detrimental to the operation

of an efficient market development

program. Consequently, this rule will

eliminate the current requirements in 7

CFR 1485.23(c)(2)(vi) regarding specific

procurement procedures. In addition,

the regulation regarding price or cost

analysis is revised to indicate that CCC

is not requiring a specific type of

analysis or formal procedure for such

analysis. Rather, the regulation makes it

clear that various types of informal

analysis should suffice, e.g., a simple

comparison of price quotes with present

market conditions. In this way, CCC

requires the participant to act in a

reasonable manner when entering into

obligations to be reimbursed with

project funds, without imposing any

undue administrative burden on the

participant.

This rule also revises an erroneous

cross-reference presently in

§ 1485.16(c)(24).

Information Collection Requirements

The amendment set forth in this

interim final rule does not impose any

new reporting or record keeping

requirements. The information

collection requirements for participating

in the MPP were approved for use by

the Office of Management and Budget

under OMB control number 00551–

0027.

List of Subjects in 7 CFR Part 1485

Agricultural commodities, Exports.

PART 1485—AGREEMENTS FOR THE

DEVELOPMENT OF FOREIGN

MARKETS FOR AGRICULTURAL

COMMODITIES

1. The authority citation for Part 1485

continues to read:

Authority: 7 U.S.C. 5623, 5662–5664 and

sec. 1302, Pub. L. 103–66, 107 Stat. 330.

Subpart B—Market Promotion Program

2. Section 1485.16(c)(24) is revised to

read as follows:

§ 1485.16 Reimbursement rules.

* * * * *

(c) * * *

(24) Generic commodity promotions

(see § 1486.16(f));

* * * * *

3. Section 1485.23 is amended by

revising paragraph (c)(2)(v) to read as

follows and by deleting paragraph

(c)(2)(vi):

§ 1485.23 Miscellaneous provisions.

* * * * *

(c) * * *

(2) * * *

(v) Perform some form of price or cost

analysis such as a comparison of price

quotations to market prices or other

price indicia, to determine the

reasonableness of the offered prices.

* * * * *

Signed at Washington, DC, this 25th day of

January 1996.

August Schumacher, Jr.,

Administrator, Foreign Agricultural Service

and Vice President, Commodity Credit

Corporation.

[FR Doc. 96–1206 Filed 1–31–96; 8:45 am]

BILLING CODE 3410–10–P