Irish Potatoes Grown in Certain Designated Counties in Idaho, and Malheur County, Oregon; Assessment Rate

DEPARTMENT OF AGRICULTURE

7 CFR Part 945

[Docket No. FV96-945-1 FIR]

Irish Potatoes Grown in Certain Designated Counties in Idaho, and

Malheur County, Oregon; 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, without change, the provisions of an interim final rule

that established an assessment rate for the Idaho-Eastern Oregon Potato

Committee (Committee) under Marketing Order No. 945 for the 1996-97 and

subsequent fiscal periods. The Committee is responsible for local

administration of the marketing order which regulates the handling of

potatoes grown in designated counties in Idaho, and Malheur County,

Oregon. Authorization to assess potato handlers enables the Committee

to incur expenses that are reasonable and necessary to administer the

program.

EFFECTIVE DATE: August 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 2525-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. 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 2525-S, Washington, DC 20090-6456, telephone 202-720-

2491; FAX 202-720-5698.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing

Agreement No. 98 and Order No. 945, both as amended (7 CFR part 945),

regulating the handling of Irish potatoes grown in designated counties

in Idaho, and Malheur County, Oregon, 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, Idaho-Eastern

Oregon 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 August 1, 1996, and continuing until amended,

suspended, or terminated. This rule will not preempt any State or local

laws, regulations, or policies, unless they

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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 2,100 producers of Idaho-Eastern Oregon

potatoes in the production area and approximately 61 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 Idaho-Eastern Oregon potato

producers and handlers may be classified as small entities.

The Idaho-Eastern Oregon 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 Idaho-Eastern Oregon potatoes. They are familiar with the

Committee's needs and with the costs of 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 June 4, 1996, and unanimously recommended

1996-97 expenditures of $122,046 and an assessment rate of $0.0026 per

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

expenditures were $111,732. The assessment rate of $0.0026 is the same

as last year's established rate. Major expenditures recommended by the

Committee for the 1996-97 year include $63,896 for salaries, $7,000 for

the manager's travel, $5,500 for Federal payroll taxes, and $15,000 for

reserve/auto purchase. Budgeted expenses for these items in 1995-96

were $63,232, $6,000, $5,300, and $9,000, respectively.

The assessment rate recommended by the Committee was derived by

dividing anticipated expenses by expected shipments of Idaho-Eastern

Oregon potatoes. Potato shipments for the year are estimated at

34,000,000 hundredweight, which should provide $88,400 in assessment

income. Income derived from handler assessments, along with funds from

interest income and 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

July 29, 1996, issue of the Federal Register (61 FR 39270). That

interim final rule added Sec. 945.249 to establish an assessment rate

for the Committee. That rule provided that interested persons could

file comments through August 28, 1996. No comments were received.

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 these 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 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

August 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.

List of Subjects in 7 CFR Part 945

Marketing agreements, Potatoes, Reporting and recordkeeping

requirements.

For the reasons set forth in the preamble, 7 CFR part 945 is

amended as follows:

Note: This section will appear in the Code of Federal

Regulations.

PART 945--IRISH POTATOES GROWN IN CERTAIN DESIGNATED COUNTIES IN

IDAHO AND MALHEUR COUNTY, OREGON

Accordingly, the interim final rule amending 7 CFR part 945 which

was published at 61 FR 39270 on July 29,

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1996, is adopted as a final rule without change.

Dated: September 25, 1996.

Sharon Bomer Lauritsen,

Acting Director, Fruit and Vegetable Division.

[FR Doc. 96-25103 Filed 10-1-96; 8:45 am]

BILLING CODE 3410-02-P