[Federal Register Volume 61, Number 163 (Wednesday, August 21, 1996)]
[Rules and Regulations]
[Pages 43144-43146]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-20662]


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DEPARTMENT OF AGRICULTURE
7 CFR Part 947

[Docket No. FV96-947-1 FIR]


Oregon-California Potatoes; 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, with an addition, the provisions of an interim final rule 
that established an assessment rate for the Oregon-California Potato 
Committee (Committee) under Marketing Order No. 947 for the 1967-97 and 
subsequent fiscal periods. The Committee is responsible for local 
administration of the marketing order which regulates the handling of 
Irish potatoes grown in Oregon-California. Authorization to assess 
potato handlers enables the Committee to incur expenses that are 
reasonable and necessary to administer the program.

EFFECTIVE DATE: Effective on July 1, 1996.

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 Teresa L. Hutchinson, 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. Small 
businesses may request information on compliance with this regulation 
by contacting: Jay Guerber, Marketing Order Administration Branch, 
Fruit and Vegetable Division, AMS, USDA, P.O. Box 96456, room 2523-S, 
Washington, DC 20090-6456, telephone 202-720-2491, FAX 202-720-5698.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing 
Agreement No. 114 and Order No. 947, both as amended (7 CFR part 947), 
regulating the handling of Irish potatoes grown in Oregon-California, 
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 is issuing this rule in conformance with Executive 
Order 12866.
    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. Under the marketing order now in effect, Oregon-
California 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 July 1,

[[Page 43145]]

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 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 (FRA), 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 550 producers of Oregon-California potatoes 
in the production area and approximately 40 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 Oregon-California potato 
producers and handlers may be classified as small entities.
    The Oregon-California 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 Oregon-California 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 formulated and 
discussed in a public meeting. Thus, all directly affected persons have 
an opportunity to participate and provide input.
    The Committee met on March 28, 1996, and unanimously recommended 
1996-97 expenditures of $61,200 and an assessment rate of $0.005 per 
hundredweight of potatoes. In comparison, last year's budgeted 
expenditures were $46,200. The assessment rate of $0.005 is $0.001 less 
than last year's established rate. Major expenditures recommended by 
the Committee for the 1996-97 year include $30,000 for an agreement 
with the Oregon Potato Commission to provide services to the Committee 
and $8,100 for a contingency fund. Budgeted expenses for these items in 
1995-96 were $24,000 and $100, respectively. The contingency fund was 
increased as the Committee is considering a possible marketing research 
and development project in conjunction with the Oregon Potato 
Commission.
    The assessment rate recommended by the Committee was derived by 
dividing anticipated expenses by expected shipments of Oregon-
California potatoes. Potato shipments for the year are estimated at 
7,400,000 hundredweight which should provide $37,000 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.
    An interim final rule regarding this action was published in the 
May 31, 1996, issue of the Federal Register (61 FR 27247). That interim 
final rule added a new subpart heading--Assessment Rates and 
Sec. 947.247 to establish an assessment rate for the Committee. That 
rule provided that interested persons could file comments through July 
1, 1996. No comments were received.
    This action will reduce the assessment obligation imposed on 
handlers. 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 from 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.
    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 thee 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.
    This final rule also adds a new subpart heading--Handling 
Regulations to the Code of Federal Regulations immediately preceding 
Sec. 947.340 Handling regulation.
    Pursuant to 5 U.S.C. 553, it is also found and determined that good 
cause exists for not postponing the effective date of this rule until 
30 days after publication in the Federal Register 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 began on 
July 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) an interim final rule was published on this action and 
provided for a 30-day comment period, and no comments were received.

[[Page 43146]]

List of Subjects in 7 CFR Part 947

    Marketing agreements, Potatoes, Reporting and recordkeeping 
requirements.

    Accordingly, the interim final rule amending 7 CFR part 947 which 
was published at 61 FR 27247 on May 31, 1996, is adopted as a final 
rule with the following change:

PART 947--IRISH POTATOES GROWN IN MODOC AND SISKIYOU COUNTIES, 
CALIFORNIA, AND IN ALL COUNTIES IN OREGON EXCEPT MALHEUR COUNTY

    1. The authority citation for 7 CFR part 947 continues to read as 
follows:

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

PART 947--[AMENDED]

    2. Part 947 is amended by adding a new subpart heading immediately 
preceding Sec. 947.340 to read as follows:

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

Subpart--Handling Regulations

    Dated: August 8, 1996.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 96-20662 Filed 8-20-96; 8:45 am]
BILLING CODE 3410-02-M