[Federal Register Volume 61, Number 136 (Monday, July 15, 1996)]
[Rules and Regulations]
[Pages 36813-36814]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-17867]


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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

7 CFR Part 948

[Docket No. FV96-948-2IFR]


Irish Potatoes Grown in Colorado; 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 
Colorado Potato Administrative Committee, San Luis Valley Office (Area 
II) (Committee) under Marketing Order No. 948 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 Colorado. Authorization to assess potato 
handlers enables the Committee to incur expenses that are reasonable 
and necessary to administer the program.

DATES: Effective on September 1, 1996. Comments received by August 14, 
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, 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, Program Assistant, 
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, FAX 202-720-5698, or Dennis L. West, Marketing 
Specialist, 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. 97 and Order No. 948, both as amended (7 CFR part 948), 
regulating the handling of Irish potatoes grown in Colorado, 
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, Colorado 
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 September 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 285 producers of Colorado Area II potatoes 
in the production area and approximately 118 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 Colorado Area II potato 
producers and handlers may be classified as small entities.
    The Colorado 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 
Colorado Area II 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

[[Page 36814]]

formulated and discussed in a public meeting. Thus, all directly 
affected persons have an opportunity to participate and provide input.
    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 May 23, 1996, and unanimously recommended 
1996-97 expenditures of $60,999 and an assessment rate of $0.0030 per 
hundredweight of potatoes. In comparison, last year's budgeted 
expenditures were $62,328. The assessment rate of $0.0030 is the same 
as last year's established rate. Major expenditures recommended by the 
Committee for the 1996-97 year include $34,624 for salaries for the 
Executive Director, Administrator, and Assistant Administrator, and 
$3,000 for utilities. Budgeted expenses for these items in 1995-96 were 
$36,978 and $3,000, respectively.
    The assessment rate recommended by the Committee was derived by 
dividing anticipated expenses by expected shipments of Colorado Area II 
potatoes. Potato shipments for the year are estimated at 16,500,000 
hundredweight which should provide $49,500 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 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. Interested persons are invited to submit information on the 
regulatory and informational impacts of this action on small 
businesses.
    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 September 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 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. 948.216 is added to read as follows:

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


Sec. 948.216  Assessment rate.

    On and after September 1, 1996, an assessment rate of $0.0030 per 
hundredweight is established for Colorado Area II potatoes.

    Dated: July 8, 1996.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 96-17867 Filed 7-12-96; 8:45 am]
BILLING CODE 3410-02-P