[Federal Register Volume 59, Number 169 (Thursday, September 1, 1994)] [Unknown Section] [Page 0] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 94-21674] [[Page Unknown]] [Federal Register: September 1, 1994] ----------------------------------------------------------------------- DEPARTMENT OF AGRICULTURE 7 CFR Part 947 [Docket No. FV94-947-2FIR] Oregon-California Potatoes; Expenses and Assessment Rate AGENCY: Agricultural Marketing Service, USDA. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: The Department of Agriculture (Department) is adopting as a final rule, without change, the provisions of an interim final rule that authorized expenses and established an assessment rate that will generate funds to pay those expenses. Authorization of this budget enables the Oregon-California Potato Committee (Committee) to incur expenses that are reasonable and necessary to administer the program. Funds to administer this program are derived from assessments on handlers. EFFECTIVE DATES: July 1, 1994, through June 30, 1995. 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, 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. 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. The marketing agreement and order are 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 12778, Civil Justice Reform. Under the marketing order now in effect Oregon- California potato handlers are subject to assessments. Funds to administer the Oregon-California potato order are derived from such assessments. It is intended that the assessment rate as issued herein will be applicable to all assessable potatoes during the 1994-95 fiscal period, which began July 1, 1994, and ends June 30, 1995. This final 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 8c(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 requesting 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 in equity to review the Secretary's ruling on the petition, provided a bill in equity is filed not later than 20 days after the date of the entry of the ruling. Pursuant to the requirements set forth in the Regulatory Flexibility Act (RFA), the Administrator of 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 under this marketing order, and approximately 40 handlers. 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 budget of expenses for the 1994-95 fiscal period was prepared by the Oregon-California Potato Committee, the agency responsible for local administration of the marketing order, and submitted to the Department for approval. 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 of goods and services in their local area and are thus in a position to formulate an appropriate budget. The budget was formulated and discussed in a public meeting. Thus, all directly affected persons have had an opportunity to participate and provide input. The assessment rate recommended by the Committee was derived by dividing anticipated expenses by expected shipments of Oregon- California potatoes. Because that rate will be applied to actual shipments, it must be established at a rate that will provide sufficient income to pay the Committee's expenses. The Committee unanimously recommended a budget of $45,100, $1,500 more than last season. Increases in expenditures, which include $150 for the Committee's annual report, $50 for the Committee's audit, $1,000 for inspection fees, $500 for investigation and compliance, and $50 for miscellaneous, will be partially offset by a decrease of $250 in staff travel. Major expense items include $24,000 for the Oregon Potato Commission (Commission) contract agreement, $4,500 for Committee expenses, $3,000 each for investigation and compliance and staff travel, $2,000 for inspection fees, $1,500 for telephone, $1,400 for the annual report, $1,250 for postage, and $1,000 each for Committee compensation and office supplies. The Commission provides certain services to the Committee as specified in a memorandum of understanding. The Committee also unanimously recommended an assessment rate of $0.006 per hundredweight, $0.001 more than last season. This rate, when applied to anticipated shipments of 7,500,000 hundredweight, will yield $45,000 in assessment income. This, along with $100 from the Committee's authorized reserve, will be adequate to cover budgeted expenses. Funds in the reserve at the beginning of the 1994-95 fiscal period, estimated at $6,561, will be within the maximum permitted by the order of one fiscal period's expenses. An interim final rule was published in the Federal Register on July 1, 1994 (59 FR 33900). That interim final rule added Sec. 947.245 to authorize expenses and establish an assessment rate for the Committee. That rule provided that interested persons could file comments through August 1, 1994. No comments were received. While this action 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, those costs will be offset by the benefits derived by the operation of the marketing order. Therefore, the Administrator of the AMS has determined that this action will not have a significant economic impact on a substantial number of small entities. After consideration of all relevant matter presented, including the information and recommendations 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. It is further found that good cause exists for not postponing the effective date of this action until 30 days after publication in the Federal Register (5 U.S.C. 553) because the Committee needs to have sufficient funds to pay its expenses which are incurred on a continuous basis. The 1994-95 fiscal period began on July 1, 1994. The marketing order requires that the rate of assessment for the fiscal period apply to all assessable potatoes handled during the fiscal period. In addition, handlers are aware of this action which was unanimously recommended by the Committee at a public meeting and confirmed by a mail vote and published in the Federal Register as an interim final 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 Accordingly, the interim final rule amending 7 CFR part 947 which was published at 59 FR 33900 on July 1, 1994, is adopted as a final rule without change. Dated: August 25, 1994. Martha B. Ransom, Acting Deputy Director, Fruit and Vegetable Division. [FR Doc. 94-21674 Filed 8-31-94; 8:45 am] BILLING CODE 3410-02-P
