[Federal Register Volume 60, Number 104 (Wednesday, May 31, 1995)]
[Rules and Regulations]
[Pages 28318-28319]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-13237]



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DEPARTMENT OF AGRICULTURE
7 CFR Part 948

[Docket No. FV95-948-1IFR]


Irish Potatoes Grown in Colorado; Expenses and Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: This interim final rule authorizes expenditures and 
establishes an assessment rate under Marketing Order No. 948 for the 
1995-96 fiscal period. Authorization of this budget enables the 
Colorado Potato Administrative Committee, Northern Colorado Office 
(Area III) (Committee) to incur expenses that are reasonable and 
necessary to administer the program. Funds to administer this program 
are derived from assessments on handlers.

DATES: Effective July 1, 1995, through June 30, 1996. Comments received 
by June 30, 1995, will be considered prior to issuance of a final rule.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this interim final rule. Comments must be sent in triplicate 
to the Docket Clerk, Fruit and Vegetable Division, AMS, USDA, P.O. 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, 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. 97 and Marketing Order No. 948, both as amended (7 CFR 
part 948), regulating the handling of Irish potatoes grown in Colorado. 
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 of Agriculture (Department) is issuing this rule in 
conformance with Executive Order 12866.
    This interim final rule has been reviewed under Executive Order 
12778, Civil Justice Reform. Under the marketing order now in effect, 
Colorado potatoes are subject to assessments. Funds to administer the 
Colorado potato marketing order are derived from such assessments. It 
is intended that the assessment rate as issued herein will be 
applicable to all assessable potatoes during the 1995-96 fiscal period, 
which begins July 1, 1995, and ends June 30, 1996. 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 8c(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 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 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 85 producers of Colorado Area III potatoes 
under the marketing order and approximately 15 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 
[[Page 28319]] Colorado Area III potato producers and handlers may be 
classified as small entities.
    The budget of expenses for the 1995-96 fiscal period was prepared 
by the Colorado Potato Administrative Committee, Northern Colorado 
Office (Area III), 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 Colorado Area 
III 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. 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 Colorado Area 
III 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.
    In Colorado, both a State and a Federal marketing order operate 
simultaneously. The State order authorizes promotion, including paid 
advertising, which the Federal order does not. All expenses in this 
category are financed under the State order. The jointly operated 
programs consume about equal administrative time and the two orders 
continue to split administrative costs equally.
    The Committee met on April 13, 1995, and unanimously recommended a 
1995-96 budget of $27,362.50, $3,037.50 more than the previous year. 
Budget items for the 1995-96 Federal portion of the administrative 
budget which have increased compared to those budgeted for 1994-95 (in 
parentheses) are: Audit, $450 ($400), medical insurance, $685 ($620), 
office equipment, $4,500 ($2,000), payroll tax, $902.50 ($880), Federal 
meetings, $500 ($400), and $300 for other salary for which no funding 
was recommended last year.
    The Committee also unanimously recommended an assessment rate of 
$0.02 per hundredweight, the same as last season. This rate, when 
applied to anticipated potato shipments of 1,200,500 hundredweight, 
will yield $24,010 in assessment income. This, along with $1,500 in 
interest income, $1,200 in rent from the sublease of office space to 
the State inspection service, and $652.50 from the Committee's 
authorized reserve will be adequate to cover budgeted expenses. Funds 
in the reserve at the end of the 1995-96 fiscal period, estimated at 
$35,195, will be within the maximum permitted by the order of two 
fiscal periods' expenses.
    While this action 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 action 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.
    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 fiscal 
period begins on July 1, 1995, and the marketing order requires that 
the rate of assessment for the fiscal period apply to all assessable 
potatoes handled during the 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 budget 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 948

    Marketing agreements, Potatoes, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 948 is 
amended as follows:

PART 948--IRISH POTATOES GROWN IN COLORADO

    1. The authority citation for 7 CFR part 948 continues to read as 
follows:

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

    2. A new Sec. 948.213 is added to read as follows:

    Note: This section will not appear in the Code of Federal 
Regulations.


Sec. 948.213  Expenses and assessment rate.

    Expenses of $27,362.50 by the Colorado Potato Administrative 
Committee, Northern Colorado Office (Area III) are authorized, and an 
assessment rate of $0.02 per hundredweight of assessable potatoes is 
established for the fiscal period ending June 30, 1996. Unexpended 
funds may be carried over as a reserve.

    Dated: May 24, 1995.
Sharon Bomer Lauritsen,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 95-13237 Filed 5-30-95; 8:45 am]
BILLING CODE 3410-02-P