[Federal Register Volume 60, Number 142 (Tuesday, July 25, 1995)]
[Rules and Regulations]
[Pages 37934-37935]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-18245]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 953
[Docket No. FV95-953-1FIR]
Southeastern Potatoes; Expenses and 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 authorized expenses and established an assessment rate that
generated funds to pay those expenses. Authorization of this budget
enables the Southeastern 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 DATE: June 1, 1995, through May 31, 1996.
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.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement No. 104 and Order No. 953, both as amended (7 CFR part 953),
regulating the handling of Irish potatoes grown in two southeastern
States (Virginia and North Carolina). 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.
[[Page 37935]]
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 provisions of the marketing order now in
effect, Virginia-North Carolina potatoes are subject to assessments. It
is intended that the assessment rate as issued herein will be
applicable to all assessable potatoes during the 1995-96 fiscal period,
which began June 1, 1995, and ends May 31, 1996. 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 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 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 150 producers of Southeastern potatoes
under this marketing order, and approximately 60 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
Southeastern potato producers and handlers may be classified as small
entities.
The budget of expenses for the 1995-96 fiscal period was prepared
by the Southeastern 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 Southeastern 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 Southeastern
potatoes, based on last season's assessable shipments of approximately
1,124,736 hundredweight. 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 met April 20, 1995, and unanimously recommended a
1995-96 budget of $12,000, $1,000 more than the previous year. The
budget item for 1995-96 which has increased compared to that budgeted
for 1994-95 (in parentheses) is: Manager's salary, $5,800 ($4,800). All
other items are budgeted at last year's amounts.
The Committee also recommended an assessment rate of $0.0050 per
hundredweight, $0.0025 less than last season's rate. When the Committee
met, planting for the 1995 crop had not been completed. Current
indications are that assessable shipments may be slightly higher than
last season and that about $6,000 in assessment income will be
generated. This, along with funds from the Committee's reserve, will be
adequate to cover the expenses incurred. Funds remaining at the end of
the 1995-96 fiscal period should be within the maximum permitted by the
order of approximately one fiscal period's expenses.
An interim final rule was published in the Federal Register on June
2, 1995 (60 FR 28701). That interim final rule added Sec. 953.252 to
authorize expenses and establish an assessment rate for the Committee.
That rule provided that interested persons could file comments through
July 3, 1995. No comments were received.
While this action will impose some additional costs on handlers,
the costs are in the form of uniform assessments on 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 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 rule 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 1995-96 fiscal period began on June 1, 1995. The marketing
order requires that the rate of assessment for the fiscal period apply
to all assessable Irish potatoes handled during the fiscal period. In
addition, handlers are aware of this rule which was recommended by the
Committee at a public meeting and published in the Federal Register as
an interim final rule.
List of Subjects in 7 CFR Part 953
Marketing agreements, Potatoes, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 953 is
amended as follows:
Note: This section will not appear in the Code of Federal
Regulations.
PART 953--IRISH POTATOES GROWN IN SOUTHEASTERN STATES
Accordingly, the interim final rule adding Sec. 953.252 which was
published at 60 FR 28701, is adopted as a final rule without change.
Dated: July 20, 1995.
Sharon Bomer Lauritsen,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 95-18245 Filed 7-24-95; 8:45 am]
BILLING CODE 3410-02-P