[Federal Register: July 18, 2005 (Volume 70, Number 136)]
[Rules and Regulations]
[Page 41129-41134]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr18jy05-1]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
week.
========================================================================
[[Page 41129]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 946
[Docket No. AO-F&V-946-3; FV03-946-01 FR]
Irish Potatoes Grown in Washington; Order Amending Marketing
Order No. 946
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This rule amends the marketing order (order) for Irish
potatoes grown in Washington. Irish potato growers, voting in a mail
referendum held March 18 through April 8, 2005 voted on seven
amendments proposed by the State of Washington Potato Committee
(Committee), which is responsible for local administration of the
order, and two amendments proposed by the Agricultural Marketing
Service of USDA. Of the nine amendments proposed, seven were favored,
including: Adding authority for container and marking regulations;
requiring Committee producer members to have produced potatoes for the
fresh market in at least 3 out of the last 5 years prior to nomination;
updating order provisions pertaining to establishment of districts and
apportionment of Committee membership among those districts; allowing
for nominations to be held at industry meetings or events; adding
authority to change the size of the Committee; adding authority to
allow temporary alternates to serve when a Committee member and that
member's alternate are unable to serve; and, requiring continuance
referenda to be conducted every six years. The two amendments that
failed include: requiring Committee nominees to submit a written
background and acceptance statement prior to selection by USDA and
establishing tenure limitations for Committee members.
DATES: This rule is effective July 19, 2005.
FOR FURTHER INFORMATION CONTACT: Melissa Schmaedick, Marketing Order
Administration Branch, Fruit and Vegetable Programs, Agricultural
Marketing Service, USDA, Post Office Box 1035, Moab, UT 84532,
telephone: (435) 259-7988, fax: (435) 259-4945; or Teresa Hutchinson,
Marketing Order Administration Branch, Fruit and Vegetable Programs,
AMS, USDA, Northwest Marketing Field Office, 1220 SW. Third Avenue,
room 385, Portland, OR 97204; telephone (503) 326-2724 or Fax (503)
326-7440.
Small businesses may request information on this proceeding by
contacting Jay Guerber, Marketing Order Administration Branch, Fruit
and Vegetable Programs, AMS, USDA, 1400 Independence Avenue SW., Stop
0237, Washington, DC 20250-0237; telephone: (202) 720-2491, fax: (202)
720-8938, or E-mail: Jay.Guerber@usda.gov.
SUPPLEMENTARY INFORMATION: Prior documents in this proceeding: Notice
of Hearing issued on October 6, 2003, and published in the October 10,
2003, issue of the Federal Register (68 FR 58638); Recommended Decision
issued on November 19, 2004 and published in the November 26, 2004
issue of the Federal Register (69 FR 68819); and a Secretary's Decision
and Referendum Order issued February 8, 2005, and published in the
Federal Register on February 14, 2005 (70 FR 7437).
This administrative action is governed by the provisions of
sections 556 and 557 of title 5 of the United States Code and is
therefore excluded from the requirements of Executive Order 12866.
Preliminary Statement
This final rule was formulated on the record of a public hearing
held November 20, 2003, in Moses Lake, Washington. Notice of the
hearing was issued October 6, 2003 and published in the October 10,
2003 issue of the Federal Register (68 FR 58638). The hearing was held
to consider the proposed amendment of Marketing Order No. 946,
regulating the handling of Irish potatoes grown in the State of
Washington, hereinafter referred to as the ``order.'' The hearing was
held pursuant to the provisions of the Agricultural Marketing Agreement
Act of 1937, as amended (7 U.S.C. 601 et seq.), hereinafter referred to
as the ``Act,'' and the applicable rules of practice and procedure
governing the formulation of marketing agreements and marketing orders
(7 CFR part 900). The Notice of Hearing contained seven proposals
submitted by the Committee and two proposals by the Agricultural
Marketing Committee (AMS).
Upon the basis of evidence introduced at the hearing and the record
thereof, the Administrator of AMS on November 19, 2004, filed with the
Hearing Clerk, U.S. Department of Agriculture, a Recommended Decision
and Opportunity to File Written Exceptions thereto by December 27,
2004. That document also announced AMS's intent to request approval of
new information collection requirements to implement the program.
Written comments on the proposed information collection requirements
were also due by November 4, 2004. No comments or exceptions were filed
to either the Recommended Decision or the information collection
requirements.
A Secretary's Decision and Referendum Order was issued on February
8, 2005 directing that a referendum be conducted during the period
March 18 through April 8, 2005, among growers of Irish potatoes to
determine whether they favored the proposed amendments to the order.
The voters voting in the referendum favored six of the amendments
proposed by the Committee and one of the amendments proposed by USDA.
The amendments favored by voters and included in this order will:
1. Add authority for the Committee to recommend container and
marking regulations. Regulations could include specification of the
size, capacity, weight, dimensions, pack, and marking or labeling of
containers used in the packaging or handling of Irish potatoes grown in
Washington. This amendment will also add two new definitions to the
order: ``Pack'' and ``container.''
2. Require Committee producer members to have produced potatoes for
the fresh market in at least 3 out of the last 5 years prior to
nomination.
3. Update order provisions pertaining to establishment of districts
and apportionment of Committee membership among those districts. This
[[Page 41130]]
amendment will incorporate language currently in the order's
administrative rules and regulations into the language of the order.
4. Allow for nominations to be held at industry meetings or events
in addition to or in place of meetings held in each of the five
districts.
5. Add authority for the Committee to recommend changes in the size
of the administrative committee. In recommending any such changes, the
following will be considered: (1) Shifts in acreage within districts
and within the production area during recent years; (2) the importance
of new production in its relation to existing districts; (3) equitable
relationship between Committee apportionment and the various districts;
and (4) other relevant factors.
6. Add authority to allow temporary alternates to serve when a
Committee member and that member's alternate are unable to serve. Any
designee must be a current Committee member alternate of the same
classification (handler or producer) to serve in the absent Committee
member's stead.
7. Require continuance referenda to be conducted every six years.
To become effective, the amendments had to be approved by at least
two-thirds of those producers voting or by voters representing at least
two-thirds of the volume of Irish potatoes represented by voters voting
in the referendum.
AMS also proposed to allow such changes as may be necessary to the
order so that all of the order's provisions conform to the effectuated
amendments. None were deemed necessary.
The amended marketing agreement was subsequently mailed to all
Irish potato handlers in the production area for their approval. The
marketing agreement was not approved by handlers representing at least
50 percent of the volume of Irish potatoes handled by all handlers
during the representative period of July 1, 2003, through June 30,
2004.
Small Business Considerations
Pursuant to the requirements set forth in the Regulatory
Flexibility Act (RFA), 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 so that small businesses will not be
unduly or disproportionately burdened. Marketing orders and amendments
thereto are unique in that they are normally brought about through
group action of essentially small entities for their own benefit. Thus,
both the RFA and the Act are compatible with respect to small entities.
Small agricultural producers have been defined by the Small
Business Administration (SBA) (13 CFR 121.201) as those having annual
receipts of less than $750,000. Small agricultural service firms, which
include handlers regulated under the order, are defined as those with
annual receipts of less than $6,000,000.
Interested persons were invited to present evidence at the hearing
on the probable regulatory and informational impact of the proposed
amendments to the order on small businesses. The record evidence is
that while minimal costs may occur upon implementation of some of the
proposed amendments, those costs would be outweighed by the benefits
expected to accrue to the Washington fresh potato industry.
The record indicates that there are about 39 fresh potato handlers
currently regulated under the order. With total fresh sales valued at
$108 million, on average, these handlers each received $2.8 million. In
addition, there are about 160 producers of fresh potatoes in the
production area. With total fresh sales at the producer level valued at
$58 million, each grower's average receipts would be $362,500.
Witnesses testified that about 76 percent of these producers are small
businesses.
It is reasonable to conclude that a majority of the fresh
Washington potato handlers and producers are small businesses.
Potato Industry Overview
Record evidence supplied by the Washington State Potato Commission
indicates that there are approximately 323 potato producers in the
State, of which approximately 160 (50 percent) are producers of fresh
market potatoes. Approximately 76 percent of the fresh market potato
producers are small entities, according to the SBA definition. Many of
these farming operations also produce potatoes for the processing
market. The Washington State potato industry also includes 39 handlers
and 12 processing plants.
A 2001 publication of Washington State University (WSU) Extension
estimated that total demand for potatoes produced in Washington State
was $495 million dollars. Of this total sales value figure for
Washington potato producers, fresh market potato pack-out represented
approximately 12 percent, with producer sales valued at $58 million.
The largest proportion of the crop ($357 million or 72 percent) was
represented by sales to the frozen potato product market, principally
for French fries. Other uses included seed potatoes, dehydration and
potato chips.
The WSU report also explained that the supply of fresh market
potatoes is handled by various potato packers (handlers) whose
operations vary in size. These handlers supply the retail market,
including supermarkets and grocery stores, as well as restaurants and
other foodservice operations. Potatoes are prepared for the fresh
market by cleaning, sorting, grading, and packaging before shipment is
made to final destinations. Due to customer specifications about sizes,
shapes, and blemishes, as well as the minimum quality, size, and
maturity regulations of the order, about 42-43 percent of the potatoes
delivered to handlers are graded out of the fresh market. Potatoes not
meeting grade are generally delivered to processors for use in the
frozen French fry and dehydrated potato markets. The total output of
the fresh pack industry in terms of sales value is $108 million.
Washington State acreage and production is second only to that of
Idaho, but its yields per acre are the highest of any State in the
United States. Produced on 165,000 acres, total potato production in
Washington in 2002 was 92.4 million hundredweight, with an average
yield of 560 hundredweight per acre. Over the last several years,
Washington has produced about 21 percent of the total U.S. potato
production on about 13 percent of the total acreage dedicated to
potatoes. Washington's share of the total value has been about 17
percent of the nation's total. Fresh utilization has varied between 11
percent and 15 percent from 1993 through 2002. These figures are based
on data published by the USDA's National Agricultural Statistical
Service (NASS).
The record indicates that soil type, climate, and number of
irrigated acres combine to make Washington an excellent area to grow
potatoes. In 2000, Washington produced a record crop with 105 million
hundredweight grown on 175,000 acres with a total industry value of
$555.2 million. This represents a substantial increase from 1949--the
year in which the marketing order was established--in which producers
harvested 29,000 acres with a yield of 6.4 million hundredweight of
potatoes valued at $14.8 million. According to testimony, the producer
price per hundredweight of potatoes was $2.30 in 1949 and $5.40 in
2002.
Witnesses at the hearing explained that potato production is
dependent on many factors over which they have little control,
including water availability, weather, and pest and weed pressures.
[[Page 41131]]
For example, the potato crop may be of higher average quality one year,
yielding an increased supply of U.S. No. 1 grade potatoes, and have an
overall lower quality the next year with a preponderance of U.S. No. 2
grade potatoes.
According to testimony, U.S. No. 2 grade potatoes in Washington are
generally diverted for use in making dehydrated potato products. In
addition, U.S. No. 2 grade potatoes are occasionally in demand as
``peelers'' for use in soups and salads, or as ``natural'' fries.
Regardless of the secondary products markets, witnesses explained, the
fresh, table stock market is an important additional market for U.S.
No. 2 grade potatoes. Witnesses explained that the Washington potato
industry cannot currently take advantage of this market without
container marking authority. Having the additional flexibility to pack
U.S. No. 2 grade potatoes in labeled cartons will help the industry
overall.
This final rule amends Sec. 946.52, Issuance of regulations, to
add authority for the Committee to recommend container and marking
regulations to the USDA for subsequent implementation. This will be in
addition to the existing authority for grade, size, quality and
maturity requirements. Two new definitions, Sec. 946.17, Pack, and
Sec. 946.18, Container, will be added to the order.
In testifying in support of this amendment, witnesses cited an
example of how this authority could be used. They stated that the
Committee wants to respond to customer demand for U.S. No. 2 grade
potatoes packed in cartons, but at the same time it wants to ensure
that such cartons will be properly labeled. Three people testified in
favor of this proposal, and no one testified in opposition. The three
witnesses covered similar themes in expressing their views on the
proposal.
Each stated that the U.S. potato market is highly competitive and
that the potato industry in Washington needs to be vigilant in
responding to market needs so as not to lose market share to other
states. Testimony indicated that the fresh market potato industry in
Washington needs to ensure that their customers are receiving what they
order, and must remain flexible and innovative. All three witnesses
emphasized that offering appropriate packaging is a key element of
being flexible and responsive to customers.
The witnesses offered an historical perspective by pointing out
that 40 years ago, the industry standard for potato packaging was a 50-
or 100-pound burlap bag. The passing of 30 years saw the phasing in of
50-pound cartons and polyethylene (poly) bags. Now, potatoes are
shipped in burlap, cartons, poly, mesh, cardboard bulk displays and
baler bags. Container sizes can range from 2 pounds to 100 pounds. It
was emphasized that the industry is constantly looking for new
packaging and delivery methods.
Witnesses stated that as early as 1994, the Committee began
receiving requests from retailers and wholesalers to pack U.S. No. 2
grade potatoes from Washington in 50 lb. cartons. These customers cited
a number of reasons for wanting the U.S. No. 2 grade potatoes in
cartons, including ease of handling and stacking in warehouses,
improved worker safety, and better product protection (for example,
less ``greening'' from exposure to light, and reduced bruising during
transport.)
Although authority exists in the order for the Committee to
recommend regulations to allow packing of U.S. No. 2 grade potatoes in
cartons, witnesses explained that up until now the Committee has chosen
not to permit this lower grade to be packed in cartons because of the
inability to mandate labeling. The current handling regulations specify
that only U.S. No. 1 or better grade potatoes may be packed in cartons,
and as such, buyers of Washington potatoes have learned to expect this
premium grade when purchasing potatoes in cartons. Adding this labeling
authority will provide assurance to customers and to the industry that
the product being shipped is properly identified. Mandatory labeling
prevents handlers from misrepresenting the quality of the potatoes
packed in the carton. Even one handler sending substandard product to
customers can mar the reputation of the Washington State potato
industry, according to witnesses.
Witnesses stated that upholding the integrity of the Washington
State potato industry is as important to producers as meeting customer
specifications. Mandating labeling will help ensure product integrity.
The Committee has discussed that without the labeling authority, a
customer could potentially receive U.S. No. 2 grade potatoes from a
handler, thinking that they are of U.S. No. 1 grade quality. This could
damage customer perceptions of the higher-grade potatoes coming out of
Washington. Labeling authority will help alleviate consumer perception
problems. Further, not only will it help verify that handlers are
putting the right product into the right packaging, but it also will
assure customers that they are actually receiving what they have
ordered.
Witnesses also emphasized the minimal additional cost of
implementing this proposal. They point out that handlers' facilities
are already configured for packing potatoes in cartons, and for
labeling those cartons, so there is no need for any equipment changes
or additions. In the witnesses' view, any additional costs a handler
would have in packing potatoes in cartons rather than sacks would be
offset by the increased selling price.
Requiring labeling of cartons will help to improve market
transactions between seller and buyer by assuring all concerned as to
the exact content of such cartons. Washington producers and handlers
will benefit from taking advantage of another market niche, with
minimal additional cost.
Testimony and industry data together indicate that little to no
differential impact between small versus large producers or handlers
would result from the proposed amendment to authorize container and
labeling requirements. Although not easily quantifiable, the USDA
concurs that benefits to the potato industry appear to substantially
outweigh the potential costs associated with implementing this
proposal.
Remaining amendment proposals are administrative in nature and will
impose no new regulatory burdens on Washington potato producers or
handlers. They should benefit the industry by improving the operation
of the program and making it more responsive to industry needs.
This final rule amends Sec. 946.25, Selection, of the order to
require that producer members of the Committee are current producers of
fresh potatoes. The amendment will ensure that the Committee is
representative of, and responsive to, those producers the program
impacts most directly. No additional costs are anticipated.
This final rule amends Sec. 946.31, Districts, by replacing
obsolete order language pertaining to establishment of districts and
allocation of Committee membership among those districts will simply
update the order. To the extent updating order language simplifies the
program and reduces confusion, it will benefit the industry.
This final rule amends Sec. 946.32, Nomination, of the order to
allow nominations of Committee members to be conducted through mail
balloting or at meetings held in each of the five established
districts. Allowing nominations to be made at larger, industry-wide
meetings will provide the industry with an additional option. This
option could result in the Committee reaching a larger audience of
producers and handlers, thereby broadening
[[Page 41132]]
industry participation and facilitating the nomination process.
This final rule amends Sec. 946.23, Alternate members, by adding
authority to the marketing order that will allow temporary alternates
to serve when a Committee member and that member's alternate are unable
to serve. It will also amend Sec. 946.22, Establishment and
membership, and Sec. 946.24, Procedure, by adding authority to the
marketing order to allow for changes in the size of the Committee. The
Washington Potato Committee consists of 10 producers, 5 handlers, and
their alternates. Changing the size of the Committee will allow the
industry to adjust to changes in fresh potato production patterns and
in the number of active industry participants.
An increase in Committee size could lead to marginally higher
program costs because Committee members are reimbursed for expenses
they incur in attending meetings and performing other duties under the
order. A reduction in Committee size (deemed to be more likely
according to the record) would likewise reduce program costs. Any
recommendation to change the size of the Committee would be considered
in terms of cost and the need to ensure appropriate representation of
producers and handlers in Committee deliberations.
This final rule amends Sec. 946.63, Termination, to require
periodic continuance referenda to ascertain industry support for the
program will allow producers the opportunity to vote on whether to
continue the operation of the order.
Paperwork Reduction Act
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
3501, et seq.), any reporting and recordkeeping provision changes that
would be generated by these amendments would be submitted to the Office
of Management and Budget (OMB). Current information collection
requirements for part 946 are approved by OMB under OMB number 0581-
0178.
The Washington Potato Committee recommended amending producer
eligibility requirements to require production of potatoes for the
fresh market for 3 out of the 5 years of production prior to
nomination. The Committee has also made recommendations that would
streamline the nomination process and increase industry participation
in nominations. In conformance with these recommendations, the
confidential qualification and acceptance statement will be combined in
the appointment of committee members. This form is based on the
currently approved Confidential Background Statement for the Washington
Potato Marketing Committee, and no change in the information collection
burden or further OMB approval is necessary.
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.
USDA has not identified any relevant Federal rules that duplicate,
overlap or conflict with this proposed rule. These amendments are
designed to enhance the administration and functioning of the marketing
order to the benefit of the industry.
Committee meetings regarding these proposals as well as the hearing
dates were widely publicized throughout the Washington potato industry,
and all interested persons were invited to attend the meetings and the
hearing and participate in Committee deliberations on all issues. All
Committee meetings and the hearing were public forums and all entities,
both large and small, were able to express views on these issues.
Civil Justice Reform
The amendments to Marketing Order 946 proposed herein have been
reviewed under Executive Order 12988, Civil Justice Reform. They are
not intended to have retroactive effect. When adopted, these amendments
will not preempt any State or local laws, regulations, or policies,
unless they present an irreconcilable conflict with this proposal.
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 Department 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. A handler is afforded the opportunity for a hearing on the
petition. After the hearing, the USDA 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
Department's ruling on the petition, provided an action is filed not
later than 20 days after the date of the entry of the ruling.
Order Amending the Order Regulating Irish Potatoes Grown in Washington
Findings and Determinations
The findings and determinations set forth hereinafter are
supplementary and in addition to the findings and determination
previously made in connection with the issuance of the order; and all
of said previous findings and determinations are hereby ratified and
affirmed, except as such findings and determinations may be in conflict
with the findings and determinations set forth herein.
(a) Findings and Determinations Upon the Basis of the Hearing Record
Pursuant to the provisions of the Agricultural Marketing Agreement
Act of 1937, as amended (7 U.S.C. 601 et seq.) and the applicable rules
of practice and procedure effective thereunder (7 CFR part 900), a
public hearing was held upon the proposed amendments to Marketing Order
No. 946 (7 CFR part 946), regulating the handling of Irish potatoes
grown in Washington.
Upon the basis of the evidence introduced at such hearing and the
record thereof it is found that:
(1) The marketing order, as amended, and as hereby further amended,
and all of the terms and conditions thereof, will tend to effectuate
the declared policy of the Act;
(2) The marketing order, as amended, and as hereby further amended,
regulates the handling of Irish potatoes grown in the production area
in the same manner as, and is applicable only to persons in the
respective classes of commercial and industrial activity specified in
the marketing order upon which hearings have been held;
(3) The marketing order, as amended, and as hereby further amended,
is limited in application to the smallest regional production area
which is practicable, consistent with carrying out the declared policy
of the Act, and the issuance of several orders applicable to
subdivision of the production area would not effectively carry out the
declared policy of the Act;
(4) The marketing order, as amended, and as hereby further amended,
prescribes, insofar as practicable, such different terms applicable to
different parts of the production area as are necessary to give due
recognition to the differences in the production and marketing of Irish
potatoes grown in the production area; and
(5) All handling of Irish potatoes grown in the production area is
in the current of interstate or foreign commerce or directly burdens,
obstructs, or affects such commerce.
[[Page 41133]]
(b) Additional findings. It is necessary and in the public interest
to make the amendments to this order effective not later than one day
after publication in the Federal Register. A later effective date would
unnecessarily delay implementation of the approved changes, which are
expected to benefit the Washington Irish potato industry. Immediate
implementation of the amendments is necessary in order to make the
amendments effective as specified.
In view of the foregoing, it is hereby found and determined that
good cause exists for making these amendments effective one day after
publication in the Federal Register, and that it would be contrary to
the public interest to delay the effective date for 30 days after
publication in the Federal Register (Sec. 553(d), Administrative
Procedure Act; 5 U.S.C. 551-559).
(c) Determinations. It is hereby determined that:
(1) Handlers (excluding cooperative associations of producers who
are not engaged in processing, distributing, or shipping Irish potatoes
covered by the order as hereby amended) who, during the period July 1,
2003, through June 30, 2004, handled 50 percent or more of the volume
of such Irish potatoes covered by said order, as hereby amended, have
not signed an amended marketing agreement;
(2) The issuance of this amendatory order, further amending the
aforesaid order, is favored or approved by at least two-thirds of the
producers who participated in a referendum on the question of approval
and who, during the period of July 1, 2003, through June 30, 2004
(which has been deemed to be a representative period), have been
engaged within the production area in the production of such Irish
potatoes, such producers having also produced for market at least two-
thirds of the volume of such commodity represented in the referendum;
and
(3) In the absence of a signed marketing agreement, the issuance of
this amendatory order is the only practical means pursuant to the
declared policy of the Act of advancing the interests of producers of
Irish potatoes in the production area.
Order Relative to Handling of Irish Potatoes Grown in Washington
It is therefore ordered, That on and after the effective date
hereof, all handling of Irish potatoes grown in Washington shall be in
conformity to, and in compliance with, the terms and conditions of the
said order as hereby amended as follows:
The provisions of the proposed marketing order amending the order
contained in the Recommended Decision issued by the Administrator on
November 19, 2004, and published in the Federal Register on November
26, 2004, shall be and are the terms and provisions of this order
amending the order and set forth in full herein.
List of Subjects in 7 CFR Part 946
Marketing agreements, Potatoes, Reporting and recordkeeping
requirements.
0
For the reasons set out it the preamble, 7 CFR part 946 is amended as
follows:
PART 946--IRISH POTATOES GROWN IN WASHINGTON
0
1. The authority citation for 7 CFR part 946 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. Add a new Sec. 946.17 to read as follows:
Sec. 946.17 Pack.
Pack means a quantity of potatoes in any type of container and
which falls within the specific weight limits or within specific grade
and/or size limits, or any combination thereof, recommended by the
committee and approved by the Secretary.
0
3. Add a new Sec. 946.18 to read as follows:
Sec. 946.18 Container.
Container means a sack, box, bag, crate, hamper, basket, carton,
package, barrel, or any other type of receptacle used in the packing,
transportation, sale or other handling of potatoes.
0
4. In Sec. 946.22, designate the current text as paragraph (a) and add
a new paragraph (b) to read as follows:
Sec. 946.22 Establishment and membership.
* * * * *
(b) The Secretary, upon recommendation of the committee, may
reestablish districts, may reapportion members among districts, may
change the number of members and alternate members, and may change the
composition by changing the ratio of members, including their
alternates. In recommending any such changes, the following shall be
considered:
(1) Shifts in acreage within districts and within the production
area during recent years;
(2) The importance of new production in its relation to existing
districts;
(3) The equitable relationship between committee apportionment and
districts; and
(4) Other relevant factors.
0
5. In Sec. 946.23, designate the current text as paragraph (a) and add
a new paragraph (b) to read as follows:
Sec. 946.23 Alternate members.
* * * * *
(b) In the event that both a member and his or her alternate are
unable to attend a Committee meeting, the member, the alternate member,
or the Committee members present, in that order, may designate another
alternate of the same classification (handler or producer) to serve in
such member's place and stead.
0
6. Section 946.24 is amended by:
0
A. Revising paragraph (a).
0
B. Redesignating paragraph (b) as paragraph (c).
0
C. Adding a new paragraph (b).
The revisions read as follows:
Sec. 946.24 Procedure.
(a) Sixty percent of the committee members shall constitute a
quorum and a concurring vote of 60 percent of the committee members
will be required to pass any motion or approve any committee action.
(b) The quorum and voting requirements of paragraph (a) of this
section shall not apply to the designation of temporary alternates as
provided in Sec. 946.23.
* * * * *
0
7. Section 946.25 is amended by:
0
A. Revising paragraph (a).
0
B. Revising paragraph (c).
The revisions read as follows:
Sec. 946.25 Selection.
(a) Persons selected as committee members or alternates to
represent producers shall be individuals who are producers of fresh
potatoes in the respective district for which selected, or officers or
employees of a corporate producer in such district. Such individuals
must also have produced potatoes for the fresh market for at least
three out of the five years prior to nomination.
* * * * *
(c) The Secretary shall select committee membership so that, during
each fiscal period, each district, as designated in Sec. 946.31, will
be represented as follows:
(1) District No. 1--Three producer members and one handler member;
(2) District No. 2--Two producer members and one handler member;
(3) District No. 3--Two producer members and one handler member;
(4) District No. 4--Two producer members and one handler member;
(5) District No. 5--One producer member and one handler member.
[[Page 41134]]
0
8. Revise Sec. 946.31 to read as follows:
Sec. 946.31 Districts.
For the purpose of determining the basis for selecting committee
members, the following districts of the production area are hereby
established:
(a) District No. 1--The counties of Ferry, Stevens, Pend Oreille,
Spokane, Whitman, and Lincoln, plus the East Irrigation District of the
Columbia Basin Project, plus the area of Grant County not included in
either the Quincy or South Irrigation Districts which lies east of
township vertical line R27E, plus the area of Adams County not included
in either of the South or Quincy Irrigation Districts.
(b) District No. 2--The counties of Kittitas, Douglas, Chelan, and
Okanogan, plus the Quincy Irrigation District of the Columbia Basin
Project, plus the area of Grant County not included in the East or
South Irrigation Districts which lies west of township line R28E.
(c) District No. 3--The counties of Benton, Klickitat, and Yakima.
(d) District No. 4--The counties of Walla Walla, Columbia,
Garfield, and Asotin, plus the South Irrigation District of the
Columbia Basin Project, plus the area of Franklin County not included
in the South District.
(e) District No. 5--All of the remaining counties in the State of
Washington not included in Districts No. 1, 2, 3, and 4 of this
section.
0
9. Amend Sec. 946.32 by revising paragraph (a) to read as follows:
Sec. 946.32 Nomination.
* * * * *
(a) Nominations for Committee members and alternate members shall
be made at a meeting or meetings of producers and handlers held by the
Committee or at other industry meetings or events not later than May 1
of each year; or the Committee may conduct nominations by mail not
later than May 1 of each year in a manner recommended by the Committee
and approved by the Secretary.
* * * * *
0
10. Amend Sec. 946.52 by adding a new paragraph (a)(5) to read as
follows:
Sec. 946.52 Issuance of regulations.
(a) * * *
(5) To regulate the size, capacity, weight, dimensions, pack, and
marking or labeling of the container, or containers, which may be used
in the packing or handling of potatoes, or both.
* * * * *
0
11. In Sec. 946.63, redesignate paragraph (d) as paragraph (e) and add
a new paragraph (d) to read as follows:
Sec. 946.63 Termination.
* * * * *
(d) The Secretary shall conduct a referendum six years after the
effective date of this paragraph and every sixth thereafter to
ascertain whether producers favor continuance of this part.
* * * * *
Dated: July 11, 2005.
Kenneth C. Clayton,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 05-14004 Filed 7-15-05; 8:45 am]
BILLING CODE 3410-02-P