Oregon-California Potatoes; Assessment Rate

DEPARTMENT OF AGRICULTURE

7 CFR Part 947

[Docket No. FV96-947-1IFR]

Oregon-California Potatoes; 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

Oregon-California Potato Committee (Committee) under Marketing Order

No. 947 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 Oregon-California.

Authorization to assess potato handlers enables the Committee to incur

expenses that are reasonable and necessary to administer the program.

DATES: Effective on July 1, 1996. Comments received by July 1, 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, PO 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, PO Box

96456, room 2523-S, Washington, DC 20090-6456, telephone 202-720-9918,

FAX 202-720-5698, or Teresa L. Hutchinson, 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. 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 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, 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, 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 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

[[Page 27248]]

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 at the beginning of the

1996-97 fiscal period are estimated at $55,245. 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.

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 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) 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 947

Marketing agreements, Potatoes, Reporting and recordkeeping

requirements.

For the reasons set forth in the preamble, 7 CFR part 947 is

amended as follows:

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.

2. A new subpart--Assessment Rates and a new Sec. 947.247 are added

to read as follows:

Note: This section will appear in the Code of Federal

Regulations.

Subpart--Assessment Rates

Sec. 947.247 Assessment rate.

On and after July 1, 1996, an assessment rate of $0.005 per

hundredweight is established for Oregon-California potatoes.

Dated: May 24, 1996.

Robert C. Keeney,

Director, Fruit and Vegetable Division.

[FR Doc. 96-13699 Filed 5-30-96; 8:45 am]

BILLING CODE 3410-02-P