[Federal Register: February 14, 2005 (Volume 70, Number 29)]
[Proposed Rules]
[Page 7437-7442]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr14fe05-20]
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Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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[[Page 7437]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 946
[Docket No. AO-F&V-946-3; FV03-946-01]
Irish Potatoes Grown in Washington; Secretary's Decision and
Referendum Order on Proposed Amendments to Marketing Agreement and
Order No. 946
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule and referendum order.
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SUMMARY: This decision proposes amending the marketing agreement and
order (order) for Irish potatoes grown in Washington, and provides
producers with the opportunity to vote in a referendum to determine if
they favor the changes. The amendments are based on those proposed by
the State of Washington Potato Committee (Committee), which is
responsible for local administration of the order. These amendments
include: 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; requiring
Committee nominees to submit a written background and acceptance
statement prior to selection by USDA; allowing for nominations to be
held at industry meetings or events; adding authority to change the
size of the Committee; and adding authority to allow temporary
alternates to serve when a Committee member and that member's alternate
are unable to serve.
The USDA proposed two additional amendments: to establish tenure
limitations for Committee members, and to require that continuance
referenda be conducted on a periodic basis to ascertain producer
support for the order. The proposed amendments are intended to improve
the operation and functioning of the marketing order program.
DATES: The referendum will be conducted from March 18 through April 8,
2005. The representative period for the purpose of the referendum is
July 1, 2003 through June 30, 2004.
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.
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.
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), and a Recommended
Decision issued on November 19, 2004 and published in the November 26,
2004 issue of the Federal Register (69 FR 68819).
This 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
The amendments are based on the record of a public hearing held
November 20, 2003, in Moses Lake, Washington. The hearing was held to
consider the proposed amendment of Marketing Agreement and 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 numerous proposals
submitted by the Committee and two proposals by the Agricultural
Marketing Committee (AMS).
The amendments included in this decision would: add authority to
establish container and marking regulations; 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; update provisions
pertaining to districts and allocation of Committee membership among
those districts; require Committee nominees to submit a written
background and acceptance statement prior to selection by USDA; allow
for nominations to be held at industry meetings or events; add
authority to change the size of the Committee; and add authority to
allow temporary alternates to serve when a Committee member and that
member's alternate are unable to serve.
The USDA proposed two additional amendments: to establish tenure
limitations for Committee members, and require that continuance
referenda be conducted on a periodic basis to ascertain producer
support for the order. In addition, USDA proposed to allow such changes
as may be necessary to the order, if any of the proposed changes are
adopted, so that all of the order's provisions conform to the
effectuated amendments.
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. No exceptions were filed.
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.
[[Page 7438]]
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 $5,000,000.
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.
The Role of U.S. No. 2 Grade Potatoes in the Washington Potato Industry
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. 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 would help the industry
overall.
Economic Impact of Proposal 1, Adding Container and Marking Regulatory
Authority
The proposal described in Material Issue No. 1 would amend 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 would be in addition to the existing authority for
grade, size, quality and maturity requirements.
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 would 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
[[Page 7439]]
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 would 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 would 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 would help alleviate consumer perception
problems. Further, not only would it help verify that handlers are
putting the right product into the right packaging, but it also would
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.
The USDA concurs that adding container and marking authority would
be a useful market-facilitating improvement to the order. Requiring
labeling of cartons would 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 would 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.
Economic Impact of Remaining Amendment Proposals
Remaining amendment proposals are administrative in nature and
would 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.
Producer members of the Committee are currently required to be
producers in the district they are nominated to represent. Adding
another eligibility requirement--that they be producers of fresh
potatoes--would ensure that the Committee is representative of, and
responsive to, those producers the program impacts most directly. No
additional costs would be incurred.
Replacing obsolete order language pertaining to establishment of
districts and allocation of Committee membership among those districts
would simply update the order. To the extent updating order language
simplifies the program and reduces confusion, it would benefit the
industry.
Currently, Committee member nominees are required to complete a
Background Statement before selection by USDA, and an Acceptance Letter
subsequent to selection. Combining these into a single form would
streamline the appointment process and reduce reporting requirements
imposed on Committee members.
Nominations of Committee members can 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 would provide the industry with an additional option. This
option could result in the Committee reaching a larger audience of
producers and handlers, thereby broadening industry participation and
facilitating the nomination process.
The Washington Potato Committee consists of 10 producers, 5
handlers, and their alternates. Changing the size of the Committee
would 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.
Committee members serve 3-year terms of office, with no limit on
the number of terms they may serve. The proposed amendment to add
tenure requirements, limiting persons to two consecutive three-year
terms, would allow more persons the opportunity to serve as Committee
members. It would provide for more diverse membership, provide new
perspectives and ideas, and increase the number of individuals in the
industry with Committee experience. No additional costs are expected to
incur because of this proposed amendment.
The recommendation to require periodic continuance referenda to
ascertain industry support for the program would allow producers the
opportunity to vote on whether to continue the operation of the order.
Most of the costs associated with referenda are borne by USDA. Ensuring
that the program is administered in response to producer needs would
outweigh these costs.
[[Page 7440]]
Paperwork Reduction Act
In accordance with the Paperwork Reduction Act of 1980 (44 U.S.C.
35), any reporting and recordkeeping provision changes that would be
generated by the proposed 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.
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. If adopted, the proposed
amendments would 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
therefrom. 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.
Findings and Conclusions
The findings and conclusions, rulings, and general findings and
determinations included in the Recommended Decision set forth in the
November 26, 2004, issue of the Federal Register are hereby approved
and adopted.
Marketing Agreement and Order
Annexed hereto and made a part hereof is the document entitled
``Order Amending the Order Regulating the Handling of Irish Potatoes
Grown in Washington.'' This document has been decided upon as the
detailed and appropriate means of effectuating the foregoing findings
and conclusions.
It is hereby ordered, That this entire decision be published in the
Federal Register.
Referendum Order
It is hereby directed that a referendum be conducted in accordance
with the procedure for the conduct of referenda (7 CFR 900.400 et seq.)
to determine whether the annexed order amending the order regulating
the handling of Irish potatoes grown in Washington is approved or
favored by producers, as defined under the terms of the order, who
during the representative period were engaged in the production of
Irish potatoes in the production area.
The representative period for the conduct of such referendum is
hereby determined to be July 1, 2003, through June 30, 2004.
The agent of the Secretary to conduct such referendum is hereby
designated to be Teresa Hutchinson and Gary Olson, Northwest Marketing
Field Office, Marketing Order Administration Branch, Fruit and
Vegetable Programs, AMS, USDA, 1220 SW. Third Avenue, room 369,
Portland, Oregon 97204; telephone (503) 326-2724.
List of Subjects in 7 CFR Part 946
Marketing agreements, Potatoes, Reporting and recordkeeping
requirements.
Dated: February 8, 2005.
Kenneth C. Clayton,
Acting Administrator, Agricultural Marketing Service.
Order Amending the Order Regulating the Handling of Irish Potatoes
Grown in Washington \1\
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\1\ This order shall not become effective unless and until the
requirements of Sec. 900.14 of the rules of practice and procedure
governing proceedings to formulate marketing agreements and
marketing orders have been met.
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Findings and Determinations
The findings hereinafter set forth are supplementary to the
findings and determinations which were previously made in connection
with the issuance of the marketing agreement and order; and all said
previous findings and determinations are hereby ratified and affirmed,
except insofar 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 the Marketing
Agreement and 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 agreement and order, as amended, and as hereby
proposed to be further amended, and all of the terms and conditions
thereof, would tend to effectuate the declared policy of the Act;
(2) The marketing agreement and order, as amended, and as hereby
proposed to be further amended, regulate the handling of Irish potatoes
grown in the production area in the same manner as, and are applicable
only to, persons in the respective classes of commercial and industrial
activity specified in the marketing agreement and order upon which a
hearing has been held;
(3) The marketing agreement and order, as amended, and as hereby
proposed to be further amended, are limited in their 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 subdivisions of the production area would
not effectively carry out the declared policy of the Act;
(4) The marketing agreement and order, as amended, and as hereby
proposed to be further amended, prescribe, 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 as
defined
[[Page 7441]]
in the marketing agreement and order, is in the current of interstate
or foreign commerce or directly burdens, obstructs, or affects such
commerce.
Order Relative to Handling
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 proposed to be amended as follows:
The provisions of the proposed marketing agreement and 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, will be and are the terms and provisions
of this order amending the order and are set forth in full herein.
PART 946--IRISH POTATOES GROWN IN WASHINGTON
1. The authority citation for 7 CFR part 946 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
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.
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.
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.
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.
6. Section 946.24 is revised to read as follows:
A. Revising paragraph (a).
B. Redesignating paragraph (b) as paragraph (c).
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.
(c) The committee may provide for meetings by telephone, telegraph,
or other means of communication and any vote cast at such a meeting
shall be confirmed promptly in writing: Provided, That if any assembled
meeting is held, all votes shall be cast in person.
7. Section 946.25 is amended by:
A. Revising paragraph (a).
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.
(b) * * *
(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.
8. Revise Sec. 946.26 to read as follows:
Sec. 946.26 Acceptance.
Any person nominated to serve as a member or alternate member of
the committee shall, prior to selection by USDA, qualify by filing a
written background and acceptance statement indicating such person's
willingness to serve in the position for which nominated.
9. Amend Sec. 946.27 by revising paragraph (a) to read as follows:
Sec. 946.27 Term of office.
(a) The term of office of each member and alternate member of the
committee shall be for 3 years beginning July 1 and continuing until
their successors are selected and have qualified. The terms of office
of members and alternates shall be determined so that about one-third
of the total committee membership is selected each year. Committee
members shall not serve more than 2 consecutive terms. Members who have
served for 2 consecutive terms will be ineligible to serve as a member
for 1 year.
* * * * *
10. 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.
[[Page 7442]]
(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.
11. 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 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.
* * * * *
12. 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.
* * * * *
13. 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 year thereafter to
ascertain whether producers favor continuance of this part.
* * * * *
[FR Doc. 05-2743 Filed 2-11-05; 8:45 am]
BILLING CODE 3410-02-P