Irish Potatoes Grown in Colorado; Assessment Rate

SUMMARY: This interim final rule establishes an assessment rate for the

Colorado Potato Administrative Committee, Northern Colorado Office

(Area III) (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 July 1, 1996. Comments received by July 12, 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, 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, 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 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 85 producers of Colorado Area III potatoes

in the production area and approximately 15 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 III 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 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 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.

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.

[[Page 29636]]

The Committee met on April 11, 1996, and unanimously recommended

1996-97 expenditures of $24,462.50 and an assessment rate of $0.01 per

hundredweight of potatoes. In comparison, last year's budgeted

expenditures were $27,362.50. The assessment rate of $0.01 is $0.01

less than last year's established rate. Major expenditures recommended

by the Committee for the 1996-97 year include $11,500 for the manager's

salary, $2,400 for rent, and $1,500 for office supplies, the same as in

1995-96.

The assessment rate recommended by the Committee was derived by

dividing anticipated expenses by expected shipments of Colorado Area

III potatoes. Potato shipments for the year are estimated at 1,450,750

hundredweight which should provide $14,507.50 in assessment income.

Income derived from handler assessments, interest, and rent from the

sublease of office space to the State inspection service, 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 $36,551. 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 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. 948.215 is added to read as follows:

Note: This section will appear in the Code of Federal

Regulations.

Sec. 948.215 Assessment rate.

On and after July 1, 1996, an assessment rate of $0.01 per

hundredweight is established for Colorado Area III potatoes.

Dated: June 3, 1996.

Sharon Bomer Lauritsen,

Acting Director, Fruit and Vegetable Division.

[FR Doc. 96-14756 Filed 6-11-96; 8:45 am]

BILLING CODE 3410-02-P