[Federal Register Volume 62, Number 96 (Monday, May 19, 1997)]
[Rules and Regulations]
[Pages 27169-27171]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-12999]
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Rules and Regulations
Federal Register
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This section of the FEDERAL REGISTER contains regulatory documents
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Federal Register / Vol. 62, No. 96 / Monday, May 19, 1997 / Rules and
Regulations
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 947
[Docket No. FV97-947-1 IFR]
Irish Potatoes Grown in Modoc and Siskiyou Counties, California,
and in all Counties in Oregon, Except Malheur County; Define Fiscal
Period and Decrease 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, in the regulatory text,
the fiscal period of the Oregon-California Potato Committee (Committee)
to begin July 1 of each year and end June 30 of the following year, and
decreases the assessment rate established under Marketing Order No. 947
for the 1997-98 and subsequent fiscal periods. The Committee is
responsible for local administration of the marketing order which
regulates the handling of Irish potatoes grown in Modoc and Siskiyou
Counties, California, and in all counties in Oregon, except Malheur
County. 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, 1997. Comments received by June 18, 1997,
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
2525-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 2525-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. 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. 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 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 of Agriculture (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, 1997, 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
there from. 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.
This rule establishes, in regulatory text, the fiscal period of the
Committee to begin July 1 of each year and end June 30 of the following
year, and decreases the assessment rate established for the Committee
for the 1997-98 and subsequent fiscal periods from $0.005 to $0.004 per
hundredweight.
The Oregon-California potato marketing order provides authority for
the Committee, with the approval of the Department, to establish a
fiscal period. The Committee has operated under a fiscal period of July
1 through June 30 for many years. This rule adds to the order's rules
and regulations a definition of the fiscal period of the Committee to
be the 12 month period beginning July 1 and ending June 30 of the
following year, both dates inclusive.
The Oregon-California potato marketing order also 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.
For the 1996-97 and subsequent fiscal periods, the Committee
recommended, and the Department approved, an assessment rate that would
continue in
[[Page 27170]]
effect from fiscal period to fiscal period indefinitely unless
modified, suspended, or terminated by the Secretary upon recommendation
and information submitted by the Committee or other information
available to the Secretary.
The Committee met on March 5, 1997, and unanimously recommended
1997-98 expenditures of $53,600 and an assessment rate of $0.004 per
hundredweight of potatoes. In comparison, last year's budgeted
expenditures were $61,200. The assessment rate of $0.004 is $0.001 less
than the rate currently in effect. As the Committee's reserve exceeds
the amount authorized in the order of one fiscal period's operational
expenses, the Committee voted to lower its assessment rate and use more
of the reserve to cover its expenses. The Committee discussed
alternatives to this rule, including alternative expenditure levels,
but recommended that the major expenditures for the 1997-98 fiscal
period should include $30,000 for an agreement with the Oregon Potato
Commission to provide miscellaneous services to the Committee, $4,000
for Committee meeting expenses, $3,000 for staff travel, and $3,000 for
investigation and compliance. Budgeted expenses for these items in
1996-97 were $30,000, $4,200, $3,000, and $3,000, respectively.
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
8,500,000 hundredweight, which should provide $34,000 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.
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA), the Agricultural Marketing Service (AMS) has considered the
economic impact of this action on small entities. Accordingly, AMS has
prepared this initial regulatory flexibility analysis.
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 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.
This rule establishes, in the regulatory text, the fiscal period of
the Committee to begin July 1 of each year and end June 30 of the
following year, and decreases the assessment rate established for the
Committee and collected from handlers for the 1997-98 and subsequent
fiscal periods from $0.005 to $0.004 per hundredweight. The Committee
unanimously recommended 1997-98 expenditures of $53,600 and an
assessment rate of $0.004 per hundredweight of potatoes. The assessment
rate of $0.004 is $0.001 less than the rate currently in effect. As the
Committee's reserve exceeds the amount authorized in the order of one
fiscal period's operational expenses, the Committee voted to lower its
assessment rate and use more of the reserve to cover its expenses.
The Committee discussed alternatives to this rule, including
alternative expenditure levels, but recommended that the major
expenditures for the 1997-98 fiscal period should include $30,000 for
an agreement with the Oregon Potato Commission to provide miscellaneous
services to the Committee, $4,000 for Committee meeting expenses,
$3,000 for staff travel, and $3,000 for investigation and compliance.
The Committee also discussed the alternative of not decreasing the
assessment rate. However, it decided against this course of action
because continuation of the higher rate would not allow it to bring its
operating reserve in line with the maximum amount authorized under the
order. The reduced assessment rate will require the Committee to use
more of its reserve for authorized expenses, and help bring the reserve
within authorized levels.
Potato shipments for the year are estimated at 8,500,000
hundredweight, which should provide $34,000 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.
Recent price information indicates that the grower price for the
1997-98 marketing season will range between $4.00 and $7.00 per
hundredweight of potatoes. Therefore, the estimated assessment revenue
for the 1997-98 fiscal period as a percentage of total grower revenue
will range between .100 and .057 percent.
This action will reduce the assessment obligation imposed on
handlers. While this rule will impose some additional costs on
handlers, the costs are minimal and 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. In addition, the Committee's
meeting was widely publicized throughout the Oregon-California potato
industry and all interested persons were invited to attend the meeting
and participate in Committee deliberations on all issues. Like all
Committee meetings, the March 5, 1997, meeting was a public meeting and
all entities, both large and small, were able to express views on this
issue. Finally, interested persons are invited to submit information on
the regulatory and informational impacts of this action on small
businesses.
This action will not impose any additional reporting or
recordkeeping requirements on either small or large Oregon-California
potato handlers. As with all Federal marketing order programs, reports
and forms are periodically reviewed to reduce information requirements
and duplication by industry and public sector agencies.
The Department has not identified any relevant Federal rules that
duplicate, overlap, or conflict with this rule.
After consideration of all relevant matter 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) This action reduces the current assessment rate;
(2) the 1997-98 fiscal period begins on July 1, 1997, and the marketing
order requires that the rate of assessment for each fiscal period apply
to all assessable
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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 Sec. 947.114 is added to Subpart--Rules and Regulations to
read as follows:
Sec. 947.114 Fiscal period.
The fiscal period shall begin July 1 of each year and end June 30
of the following year, both dates inclusive.
Sec. 947.247 [Amended]
3. Section 947.247 is amended by removing the words ``July 1,
1996,'' and adding in its place the words ``July 1, 1997,'' and by
removing ``$0.005'' and adding in its place ``$0.004.''
Dated: May 12, 1997.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 97-12999 Filed 5-16-97; 8:45 am]
BILLING CODE 3410-02-P
