[Federal Register Volume 59, Number 148 (Wednesday, August 3, 1994)] [Unknown Section] [Page 0] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 94-18876] [[Page Unknown]] [Federal Register: August 3, 1994] VOL. 59, NO. 148 Wednesday, August 3, 1994 DEPARTMENT OF AGRICULTURE Agricultural Marketing Service 7 CFR Part 947 [FV94-947-1PR] Irish Potatoes Grown in Oregon and California; Establishment of Interest and Late Payment Charges on Overdue Assessment Payments AGENCY: Agricultural Marketing Service, USDA. ACTION: Proposed rule. ----------------------------------------------------------------------- SUMMARY: This proposed rule would allow the Oregon-California Potato Committee (committee) to impose interest and late payment charges on overdue assessments under the marketing order. Some handlers are frequently late paying their assessments, which tends to cause cash flow problems for the committee and is inequitable to handlers who pay assessments when due. Imposing interest and late payment charges on handlers would encourage such handlers to pay their assessment obligations in a timely manner and help the committee maintain sufficient funds to carry on normal operations. DATES: Comments must be received by August 18, 1994. ADDRESSES: Interested persons are invited to submit written comments concerning this proposal. Comments must be sent in triplicate to the Docket Clerk, Fruit and Vegetable Division, AMS, USDA, Room 2523-S, P.O. Box 96456, Washington, DC 20090-6456, FAX (202) 720-5698. All comments should reference the docket number and the date and page number of this issue of the Federal Register and will be made available for public inspection in the Office of the Docket Clerk during regular business hours. FOR FURTHER INFORMATION CONTACT: Robert Matthews, Marketing Specialist, Marketing Order Administration Branch, F&V, AMS, USDA, Room 2523-S, P.O. Box 96456, Washington, DC, 20090-6456, telephone: (202) 690-0464; or Teresa Hutchinson, Northwest Marketing Field Office, Marketing Order Administration Branch, F&V, AMS, USDA, 1220 Southwest Third Avenue, Room 369, Portland, Oregon 97204; telephone: (503) 326-2724. SUPPLEMENTARY INFORMATION: This proposal is issued under Marketing Agreement No. 114 and Marketing Order No. 947 [7 CFR part 947], as amended, regulating the handling of potatoes grown in Modoc and Siskiyou Counties in California, and all counties in Oregon, except Malheur County, hereinafter referred to as the ``order.'' The order is effective under the Agricultural Marketing Agreement 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 proposal has been reviewed under Executive Order 12778, Civil Justice Reform. This action is not intended to have retroactive effect. This proposed rule will not preempt any State or local laws, regulations, or policies, unless they present an irreconcilable conflict with this action. 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. A 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 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 40 handlers of Oregon-California potatoes who are subject to regulation under the order and approximately 450 producers in the regulated area. Small agricultural service firms, which includes handlers, have been defined by the Small Business Administration [13 CFR 121.601] as those having annual receipts of less than $5,000,000, and small agricultural producers are defined as those having annual receipts of less than $500,000. The majority of handlers and producers of Oregon-California potatoes may be classified as small entities. On May 25, 1994, a mail ballot was completed in accordance with Sec. 947.26 during which the committee recommended, under the authority of Sec. 947.41(a) of the order, that handlers who are delinquent in paying their assessments be subject to late payment and interest charges. Nine affirmative ballots were received, meeting the minimum number for a quorum for the fourteen-member committee. The committee depends upon handler assessments for operating funds. Handlers are invoiced by the committee on a monthly basis. However, some handlers are continually late with their assessment payments and a few wait until the end of the season to remit to the committee what is owed. When assessments are not paid in a timely manner, the handlers paying assessments on time are placed in an unfair situation compared to the delinquent handlers. As part of its collection efforts, the committee has requested delinquent handlers to promptly submit assessment payments. However, such requests have not substantially decreased the frequency of delinquent payments. To facilitate the collection of assessments needed for the maintenance and functioning of the committee, the committee recommended that a late payment charge of five (5) percent of the unpaid assessment balance be applied to any handler account more than thirty days overdue, and an interest charge of one (1) percent per month be applied to any assessment balance, plus the late payment charge, remaining unpaid after sixty days. The interest charge added to the bill after 60 days would be compounded monthly until the delinquent handler's assessment plus late payment charge and unpaid interest charges have been paid in full. The committee believes these charges are high enough to encourage timely payment of assessments, and are within the interest range customarily charged by banks on commercial accounts. This proposal is intended to encourage handlers to pay their assessments when due, thereby eliminating potential inequities. The committee believes that the recommended action is the only alternative available to ensure timely payments. The proposal is expected to reduce the need for Department involvement with compliance efforts and thereby reduce the costs for the government to administer the marketing order program. Based on available information, the Administrator of the AMS has determined that this action would not have a significant economic impact on a substantial number of small entities. In accordance with the Paperwork Reduction Act of 1988 [44 U.S.C. Chapter 35], the information collection requirements that are contained in this proposal have been previously approved by the Office of Management and Budget (OMB) under the provisions of 44 U.S.C. Chapter 35 and have been assigned OMB number 0581-0112. Interested persons are invited to submit their views and comments on this proposal. A 15-day comment period is considered appropriate because any changes to the regulations, if adopted, should be in effect as soon as possible to encourage timely payments. All comments timely received will be considered prior to finalization of this proposed 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 proposed to be amended as follows: 1. The authority citation for 7 CFR part 947 continues to read as follows: Authority: 7 U.S.C. 601-674. PART 947--IRISH POTATOES GROWN IN MODOC AND SIKIYOU COUNTIES, CALIFORNIA, AND ALL COUNTIES IN OREGON, EXCEPT MALHEUR COUNTY 2. A new Sec. 947.141 is added to read as follows: Sec. 947.141 Late payment and interest charges. The committee shall impose a late payment charge on any handler who fails to pay his or her assessment within thirty (30) days of the billing date shown on the handler's assessment statement received from the committee. The late payment charge shall, after 30 days, be five percent of the unpaid assessment balance. In the event the handler fails to pay the delinquent assessment amount, plus the late payment charge, within 60 days following the billing date, an additional one percent interest charge shall be applied monthly thereafter to the unpaid balance, including any accumulated interest. Any amount paid by a handler as an assessment, including any charges imposed pursuant to this paragraph, shall be credited when the payment is received in the committee office. Dated: July 28, 1994. Robert C. Keeney, Deputy Director, Fruit and Vegetable Division. [FR Doc. 94-18876 Filed 8-2-94; 8:45 am] BILLING CODE 3410-02-P