[Federal Register Volume 61, Number 106 (Friday, May 31, 1996)]
[Rules and Regulations]
[Pages 27247-27248]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-13699]



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DEPARTMENT OF AGRICULTURE
7 CFR Part 947

[Docket No. FV96-947-1IFR]


Oregon-California Potatoes; Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: This interim final rule establishes an assessment rate for the 
Oregon-California Potato Committee (Committee) under Marketing Order 
No. 947 for the 1996-97 and subsequent fiscal periods. The Committee is 
responsible for local administration of the marketing order which 
regulates the handling of Irish potatoes grown in Oregon-California. 
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, 1996. Comments received by July 1, 1996, 
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, PO 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, PO Box 
96456, room 2523-S, Washington, DC 20090-6456, telephone 202-720-9918, 
FAX 202-720-5698, or Teresa L. Hutchinson, 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.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing 
Agreement No. 114 and Order No. 947, both as amended (7 CFR part 947), 
regulating the handling of Irish potatoes grown in Oregon-California, 
hereinafter referred to as the ``order.'' 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 Department of Agriculture (Department) is issuing this rule in 
conformance with Executive Order 12866.
    This rule has been reviewed under Executive Order 12778, Civil 
Justice Reform. Under the marketing order now in effect, Oregon-
California 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, 1996, 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.
    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA), the Agricultural Marketing Service (AMS) has considered the 
economic impact of this 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 550 producers of Oregon-California 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 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 Oregon-California potato 
producers and handlers may be classified as small entities.
    The Oregon-California 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 Oregon-California 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.
    The Committee met on March 28, 1996, and unanimously recommended 
1996-97 expenditures of $61,200 and an assessment rate of $0.005 per 
hundredweight of potatoes. In comparison, last year's budgeted 
expenditures were $46,200. The assessment rate of $0.005 is $0.001 less 
than last year's established rate. Major expenditures recommended by 
the Committee for the 1996-97 year include $30,000 for an agreement 
with the Oregon Potato Commission to provide services to the Committee 
and $8,100 for a contingency fund. Budgeted expenses for these items in 
1995-96 were $24,000 and $100, respectively. The contingency fund was 
increased as the Committee is considering a possible marketing research 
and development project in conjunction with the Oregon Potato 
Commission.
    The assessment rate recommended by the Committee was derived by 
dividing anticipated expenses by expected shipments of Oregon-
California potatoes. Potato shipments for the year

[[Page 27248]]

are estimated at 7,400,000 hundredweight which should provide $37,000 
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 at the beginning of the 
1996-97 fiscal period are estimated at $55,245. Funds in the reserve 
will be kept within the maximum permitted by the order.
    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 AMS has determined that this rule will 
not have a significant economic impact on a substantial number of small 
entities.
    The assessment rate established in this rule will continue in 
effect indefinitely unless modified, suspended, or terminated by the 
Secretary upon recommendation and information submitted by the 
Committee or other available information.
    Although this assessment rate is effective 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 the 
Department. Committee meetings are open to the public and interested 
persons may express their views at those meetings. The Department 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 
1996-97 budget and those for subsequent fiscal periods will be reviewed 
and, as appropriate, approved by the Department.
    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 
1996-97 fiscal period begins on July 1, 1996, 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 947

    Marketing agreements, Potatoes, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 947 is 
amended as follows:

PART 947--IRISH POTATOES GROWN IN MODOC AND SISKIYOU COUNTIES, 
CALIFORNIA, AND IN ALL COUNTIES IN OREGON, EXCEPT MALHEUR COUNTY

    1. The authority citation for 7 CFR part 947 continues to read as 
follows:

    Authority: 7 U.S.C. 601-674.

    2. A new subpart--Assessment Rates and a new Sec. 947.247 are added 
to read as follows:

    Note: This section will appear in the Code of Federal 
Regulations.

Subpart--Assessment Rates


Sec. 947.247  Assessment rate.

    On and after July 1, 1996, an assessment rate of $0.005 per 
hundredweight is established for Oregon-California potatoes.

    Dated: May 24, 1996.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 96-13699 Filed 5-30-96; 8:45 am]
BILLING CODE 3410-02-P