[Federal Register Volume 59, Number 165 (Friday, August 26, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-21087]


[[Page Unknown]]

[Federal Register: August 26, 1994]


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DEPARTMENT OF AGRICULTURE
7 CFR Part 1207

[FV-94-703 IFR]
RIN: 0581-AB26

 

Potato Research and Promotion Plan; Amendments of the Rules and 
Regulations to Permit Changes in the Size of the Administrative 
Committee

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: This interim final rule provides the National Potato Promotion 
Board (Board) the flexibility to change the number of producer members 
on the Administrative Committee to reflect changes in potato production 
in the United States through amendment of the Board's bylaws, with the 
Secretary's approval, updates the address of the Board's office, and 
revises the Harmonized Tariff Schedule code number for imported potato 
starch for human consumption.

DATES: Interim final rule effective August 26, 1994. Comments must be 
received by September 26, 1994.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this action. Comments must be sent in triplicate to the 
Docket Clerk, Research and Promotion Branch, Fruit and Vegetable 
Division, AMS, USDA, room 2535-So., P.O. Box 96456, Washington, DC 
20090-6456. 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: Georgia C. Abraham, Research and 
Promotion Branch, Fruit and Vegetable Division, AMS, USDA, room 2535-
So., P.O. Box 96456, Washington, DC 20090-6456; telephone (202) 720-
5057.

SUPPLEMENTARY INFORMATION: This interim final rule is issued under the 
Potato Research and Promotion Plan (Plan) [7 CFR Part 1207]. The Plan 
is authorized by the Potato Research and Promotion Act, as amended [7 
U.S.C. 2611-2627], hereinafter referred to as the Act.
    This rule is exempt from Executive Order 12866.
    This rule has been reviewed under Executive Order 12778, Civil 
Justice Reform. It is not intended to have retroactive effect. This 
rule would 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 311 of the Act, a 
person subject to a plan may file a petition with the Secretary stating 
that such plan, any provision of such plan or any obligation imposed in 
connection with such plan is not in accordance with law; and requesting 
a modification of the plan or an exemption from the plan. Such person 
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 
such person is an inhabitant, or has principal place of business, has 
jurisdiction to review the Secretary's ruling on the petition, provided 
that a complaint is filed within 20 days after the date of 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 action on 
small entities.
    There are an estimated 2,000 handlers, 6,000 producers, 80 
importers of potatoes and potato products for human consumption, and 25 
importers of seed potatoes who are subject to the provisions of the 
Plan. The majority of these persons may be classified as small 
agricultural producers and small agricultural service firms. Small 
agricultural producers are 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 million. The majority of potato handlers and 
producers may be classified as small entities.
    The National Potato Promotion Board (Board) administers a national 
program of research, development, advertising, and promotion designed 
to strengthen potatoes' competitive position and to maintain and expand 
domestic and foreign markets for potatoes and potato products. The 
program is financed by assessments on producers of 5 or more acres of 
potatoes (collected by the first handler) and on all imported fresh or 
processed potatoes for human consumption and seed potatoes (collected 
by the U.S. Customs Service). There are currently 103 members on the 
Board: 100 producers, 2 importers, and a public member.
    Due to the large size of the Board, the Plan authorizes the Board 
to appoint an Administrative Committee which has the authority to 
conduct Board business on the Board's behalf. As currently set forth in 
paragraph (a) of section 1207.507 of the rules and regulations issued 
under the Plan, the Board is authorized to appoint up to 27 members to 
the Administrative Committee which includes 25 producer members, 1 
importer member, and the public member. Producer membership on the 
Administrative Committee is allocated among six regions established in 
the Board's bylaws on the percentage of U.S. potato production in each 
region.
    Since the six regions were established in 1972, potato production 
in the U.S. has increased and shifted to the extent that the number of 
producer members in each region is no longer representative of the 
percentage of production in each region.
    At its March 20, 1993, annual meeting, the Board directed its Long-
Range Planning Subcommittee to study the increase and shifts in potato 
production to determine whether or not producer member allocation by 
region was equitable and to recommend corrective action the following 
year.
    Using data from the Department of Agriculture's National 
Agricultural Statistical Service, the subcommittee determined that, 
based on the percentage of U.S. potato production, some regions were 
under-represented and other regions were over-represented on the 
Administrative Committee. The subcommittee also determined that if the 
25 producer members on the Administrative Committee were apportioned 
based on current production, some regions would lose representation 
disproportionately to the decrease in production in that region. 
Therefore, at the Administrative Committee's January 12, 1994, meeting, 
the subcommittee presented to the Administrative Committee four 
proposals for the Administrative Committee's consideration. The 
Administrative Committee approved a proposal to add 5 producer members 
to the Administrative Committee and to reallocate the 30 producer 
members to reflect, as closely as possible, the percentage of U.S. 
potato production in each region. The proposal approved by the 
Administrative Committee for presentation to the full Board would 
increase the total number of Administrative Committee members from 27 
to 32 (30 producer members, 1 importer member, and the public member) 
and would reallocate the 30 producer members among the regions as 
follows: Northwest, from 8 members to 13; North Central, from 5 members 
to 6; Northeast, from 5 members to 4; Southwest, from 3 members to 2; 
South Central, from 2 members to 3; and Southeast, 2 members (no 
change).
    This recommendation was presented to and approved by the full Board 
at the Board's annual meeting on March 18, 1994. The Board approved an 
amendment to Article VI, Section 1 of the Board's bylaws, which sets 
forth the allocation of Administrative Committee members, and 
recommended amending paragraph (a) of section 1207.507 of the Plan's 
rules and regulations, which sets forth the number of members and 
composition of the Administrative Committee.
    While the Board, with the Secretary's concurrence, may amend its 
bylaws to reflect changes to the regional boundaries and allocation of 
the producer members, paragraph (a) of section 1207.507 of the rules 
and regulations issued under the Plan must be amended to change the 
number of Board members who may serve on the Administrative Committee. 
However, U.S. potato production and the distribution of that production 
among the states is subject to future change which would affect 
producer representation on the Administrative Committee. Therefore, in 
order to provide more flexibility to the Board in adjusting the size of 
its Administrative Committee based on current production trends and, at 
the same time, eliminate unnecessary rulemaking, this rule amends 
paragraph (a) of section 1207.507 to provide that the number of 
producer members on the Administrative Committee be as set forth in the 
Board's bylaws.
    This action also revises section 1207.501 of the rules and 
regulations to reflect the Board's current place of business.
    In addition, the Committee for Statistical Annotation of Tariff 
Schedules of the International Trade Commission, at the request of the 
Department, has revised the statistical reporting requirements for 
imported potato starch. As a result, Harmonized Tariff Schedule (HTS) 
code numbers which differentiate between imported potato starch for 
human consumption and imported potato starch for other uses have been 
established. Paragraph (b)(3) of section 1207.510 provides the HTS 
categories and assessment rates on imported tablestock potatoes and 
frozen or processed potatoes for ultimate consumption by humans and on 
imported seed potatoes. The Act provides the authority for the Board to 
assess only those potatoes and potato products intended for human 
consumption and for use as seed. Because the tariff schedule did not 
provide a statistical breakout to identify product intended for 
different uses, the present HTS code number in this section identifying 
potato starch does not differentiate between the above uses. As a 
result, it is possible that assessments on potato starch not intended 
for human consumption are being collected by the U.S. Customs Service 
on the Board's behalf. Amending this section to list the correct HTS 
code for potato starch for human consumption will eliminate the need 
for importers to request a refund from the Board of assessments that 
might be erroneously collected by Customs on the Board's behalf. 
Therefore, this rule also amends paragraph (b)(3) of section 1207.510 
to reflect the new HTS code number identifying potato starch for human 
consumption.
    Based on the above, the Administrator of the AMS has determined 
that the issuance of this rule would not have a significant economic 
effect on a substantial number of small entities.
    Pursuant to the provisions in 5 U.S.C. 553, it is 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 and that good cause exists for not 
postponing the effective date of this action until 30 days after 
publication in the Federal Register because: (1) This action formalizes 
the Department's approval of amendments to the Board's bylaws which 
were approved by the full Board and makes other amendments to the rules 
and regulations that ensure effective administration of the Act; (2) a 
30-day period is provided to allow interested parties to comment prior 
to finalization; and (3) no useful purpose would be served by a delay 
of the effective date.
    All written comments received in response to this rule by the date 
specified herein will be considered prior to finalizing this action.

List of Subjects in 7 CFR Part 1207

    Advertising, Agricultural research, Marketing agreements, Potatoes, 
Reporting and recordkeeping requirements.

    For the reasons set forth in the preamble, 7 CFR part 1207 is 
revised as follows:

PART 1207--POTATO RESEARCH AND PROMOTION PLAN

    1. The authority citation for 7 CFR part 1207 continues to read as 
follows:

    Authority: 7 U.S.C. 2611-2627.

    2. Section 1207.501 is revised to read as follows:


Sec. 1207.501  Communications.

    All communications in connection with the Potato Research and 
Promotion Plan shall be addressed to: National Potato Promotion Board, 
7555 East Hampden Avenue, Suite 412, Denver, Colorado 80231.
    3. Section 1207.507 is amended by revising the first sentence in 
paragraph (a) to read as follows:


Sec. 1207.507  Administrative Committee.

    (a) The Board shall annually select from among its members an 
Administrative Committee composed of producer members as provided for 
in the Board's bylaws, one or more importer members, and the public 
member. * * *
* * * * *
    4. The table in paragraph (b)(3) of Sec. 1207.510 is revised to 
read as follows:


Sec. 1207.510  Levy of assessments.

* * * * *
    (b) * * *
    (3) * * * 

------------------------------------------------------------------------
                                                         Assessment     
  Tablestock potatoes, processed potato products,  ---------------------
                 and seed potatoes                  Cents/cwt           
                                                                Cents/kg
------------------------------------------------------------------------
0701.10.0020......................................       2.00     0.0441
0701.10.0040......................................       2.00     0.0441
0701.90.1000......................................       2.00     0.0441
0701.90.5010......................................       2.00     0.0441
0701.90.5020......................................       2.00     0.0441
0701.90.5030......................................       2.00     0.0441
0701.90.5040......................................       2.00     0.0441
0710.10.0000......................................       4.00     0.0882
2004.10.4000......................................       4.00     0.0882
2004.10.8020......................................       4.00     0.0882
2004.10.8040......................................       4.00     0.0882
2005.20.6060......................................     3.1446     0.0693
0712.10.0000......................................    14.2857     0.3149
1105.10.0000......................................    14.2857     0.3149
1105.20.0000......................................    14.2857     0.3149
2005.20.6040......................................    14.2857     0.3149
2005.20.2000......................................     8.1633     0.1800
1108.13.0010......................................    18.0018     0.3969
------------------------------------------------------------------------

* * * * *
    Dated: August 22, 1994.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 94-21087 Filed 8-25-94; 8:45 am]
BILLING CODE 3410-02-P