[Federal Register Volume 59, Number 101 (Thursday, May 26, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-12882]


[[Page Unknown]]

[Federal Register: May 26, 1994]


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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

7 CFR Part 946

[Docket No. FV94-946-1FIR]

 

Irish Potatoes Grown in Washington; Expenses and Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: The Department of Agriculture (Department) is adopting as a 
final rule, without change, the provisions of an amended interim final 
rule that authorized expenses and established an assessment rate that 
generated funds to pay those expenses. 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.

EFFECTIVE DATE: July 1, 1994, through June 30, 1995.

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 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 1994-95 fiscal period, which 
begins July 1, 1994, and ends June 30, 1995. 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 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 hereunder, 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 35 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 1994-95 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 23, 1994, and unanimously recommended a 
1994-95 budget of $38,100, the same as the previous year. The Committee 
also unanimously recommended an assessment rate of $0.005 per 
hundredweight, the same as last season. This rate, when applied to 
anticipated shipments of 7.5 million hundredweight, will yield $37,500 
in assessment income. This, along with $600 from the Committee's 
authorized reserve will be adequate to cover budgeted expenses. Funds 
in the reserve at the beginning of the 1994-95 fiscal period, estimated 
at $51,953, will be within the maximum permitted by the order of two 
fiscal periods' expenses.
    An increase in the 1994-95 budget of $700 for compliance audits, 
$200 for salary expense, $100 for audit expense, and $500 for postage 
will be offset by a decrease of $1,000 in Committee expense and $500 in 
the miscellaneous category. Major expense items include $4,000 for 
Committee member compensation for meeting attendance, $2,000 for 
surveillance inspection, $1,800 for office supplies, $3,000 for 
postage, $1,500 for miscellaneous, $1,000 for audit, $2,400 for 
Washington Potato Commission contract fees, $11,200 for salaries, 
$1,800 for salary expense, and $5,200 for compliance audits. The 
Commission provides certain services to the Committee as specified in a 
memorandum of understanding.
    An interim final rule was published in the Federal Register on 
March 31, 1994 (59 FR 15039). That interim final rule added 
Sec. 946.246 to authorize expenses and establish an assessment rate for 
the Committee. That rule provided that interested persons could file 
comments through May 2, 1994. No comments were received.
    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.

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.

    Accordingly, the interim final rule adding Sec. 946.246 which was 
published at 59 FR 15039, is adopted as a final rule without change.

    Dated: May 20, 1994.
Eric M. Forman,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 94-12882 Filed 5-25-94; 8:45 am]
BILLING CODE 3410-02-P