[Federal Register: April 4, 2007 (Volume 72, Number 64)]
[Rules and Regulations]
[Page 16267-16269]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr04ap07-4]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1207
[Docket No. AMS-FV-06-0177; FV-06-703-FIR]
Potato Research and Promotion Plan; Amendment of Administrative
Committee Structure
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: The Department of Agriculture (USDA) is adopting, as a final
rule, without change, an interim final rule amending the structure of
the Administrative Committee (Committee) of the National Potato
Promotion Board (Board) as prescribed in the Potato Research and
Promotion Plan. This rule continues in effect the action that increased
the number of Vice-Chairperson positions on the Committee from six to
seven. The change is intended to more closely correlate the Committee's
representation with potato production in the Northwest district--a five
state region which accounts for more than half of all U.S. potato
production.
DATES: Effective Date: May 4, 2007.
FOR FURTHER INFORMATION CONTACT: Barry Broadbent, Marketing Specialist,
or Gary Olson, Regional Manager, Northwest Marketing Field Office,
Marketing Order Administration Branch, Fruit and Vegetable Programs,
AMS, USDA, 1220 SW., Third Avenue, Suite 385, Portland, OR 97204;
Telephone: (503) 326-2724, Fax: (503) 326-7440, or e-mail:
Barry.Broadbent@usda.gov or GaryD.Olson@usda.gov.
Small businesses may request information on complying with this
regulation 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: This rule is issued under the Potato
Research and Promotion Plan [7 CFR Part 1207], hereinafter referred to
as the ``Plan.'' The Plan is authorized by the Potato Research and
Promotion Act, as amended [7 U.S.C. 2611-2627], hereinafter referred to
as the ``Act.''
The Office of Management and Budget (OMB) has waived the review
process required by Executive Order 12866 for this action.
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. This rule is not intended to have retroactive effect.
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 311 of the Act, a
person subject to a plan may file a petition with the U.S. Department
of Agriculture (USDA) stating that such plan, any provision of such
plan, or any obligation imposed in connection with such plan is not in
accordance with law and request a modification of such plan or to be
exempted therefrom. Such person is afforded the opportunity for a
hearing on the petition. After the hearing, USDA would rule on the
petition. The Act provides that the district court of the United States
in any district in which such person is an inhabitant, or has his or
her principal place of business, has jurisdiction to review USDA's
ruling on the petition, provided that a complaint is filed not later
than 20 days after date of the entry of the ruling.
This rule adopts the interim rule that modified the structure of
the Board's Administrative Committee as prescribed in the Plan by
increasing the number of Vice-Chairperson positions on the Committee
from six to seven. This additional position is allocated, as provided
in the Board's bylaws, to the Northwest district. This rule increased
[[Page 16268]]
from 25 percent to 33 percent Board representation at the executive
level for potato producers in Montana, Idaho, Oregon, Washington, and
Alaska is. The change was recommended by a large majority of the Board,
with only 3 of 84 members dissenting at the Board's meeting on March
18, 2006.
Section 1207.327(b) of the Plan provides the authority to make
rules and regulations, with USDA approval, to effectuate the terms and
conditions of the Plan. Section 1207.328(a) of the Plan provides the
authority to select from its members such officers as may be necessary
and to adopt such rules for the conduct of its business as the Board
may deem advisable.
Section 1207.507(a) of the Plan's administrative rules delineates
the structure of Board's Administrative Committee. The Committee is
selected from among Board members and must be composed of producer
members, one or more importer member(s), and the public member. The
Board, through the adoption of their bylaws, may prescribe the manner
of selection and the number of members; except that the regulations
mandate that the Committee shall include a Chairperson and a fixed
number of Vice-Chairpersons. The bylaws also designate the officers and
the immediate past Chairperson as the Board's Executive Committee.
Prior to this modification, the Plan provided for six Vice-
Chairperson positions on the Committee. Vice-Chairperson positions are
allocated in the Board's bylaws to represent production districts as
determined by the Board. This rule adopts the interim rule that
increased the number of Vice-Chairperson positions to seven. The
additional Vice-Chairperson position is allocated to the Northwest
district, which historically has been the district with the greatest
production.
At its meeting on March 18, 2006, the Board discussed the structure
of its model of governance as it relates to adequate representation of
their constituents. The Board had been studying this issue for a number
of years. Representatives from the potato producing districts that have
experienced increases over the last 30 years expressed a desire for
greater Board representation.
The Northwest district, which includes the States of Montana,
Idaho, Oregon, Washington, and Alaska, has increased production such
that the district now accounts for 49.5 percent of all potatoes
produced by or imported into the U.S. Under the current Plan, the
Northwest district accounts for 47.4 percent of the votes of the full
Board, which the Board has determined to be equitable. In contrast,
membership on the Executive Committee, the governing body of the
Administrative Committee, is not representative of current production.
The Northwest district has held only two of the eight executive
positions, which represents only 25 percent of the Executive Committee
vote, while production in the district has increased to nearly 50
percent.
The members agreed to a compromise solution to increase the number
of officer positions on the Administrative Committee by one and,
through a change in the Board's bylaws, to allocate the additional
Vice-Chairperson position to the Northwest district. Eighty-one Board
members voted in favor of the proposal and three members were opposed.
Those in opposition represented the Northeast district and were
concerned, even after the compromise proposal, that too much influence
on the Board would shift to the West.
Final Regulatory Flexibility Analysis and Paperwork Reduction Act
In accordance with the Regulatory Flexibility Act (RFA)[5 U.S.C.
601 et seq.], the Agricultural Marketing Service has examined the
impact of this rule on small entities. The purpose of the RFA is to fit
regulatory actions to the scale of businesses subject to such action so
that small businesses will not be disproportionately burdened.
There are approximately 1,353 handlers, 5,223 producers, and 300
importers of potatoes and potato products who are subject to the
provisions of the Plan. The Small Business Administration (SBA) defines
small agricultural service firms, which includes handlers and
importers, as those having annual receipts of less than $6,500,000, and
small agricultural producers are defined as those having annual
receipts of less than $750,000. Most of the producers and handlers, and
some of the importers would be classified as small businesses under the
criteria established by the SBA (13 CFR 121.201). In addition,
producers of less than 5 acres of potatoes are exempt from this
program.
This rule adopts the interim rule that modified the structure of
the Administrative Committee of the Board, as delineated under Sec.
1207.507 of the Plan, by increasing the number of Vice-Chairperson
positions from six to seven. The Plan requires that the Committee be
comprised of producer Board members, one or more importer Board
member(s), and the public Board member. The exact number of members
seated on the Committee is determined by the Board through the Board's
bylaws. Additionally, the Plan regulations require that the Board elect
a Committee Chairperson and a fixed number of Vice-Chairpersons.
The Board, through their bylaws, allocates the Committee's officer
positions according to production districts, so as to provide equitable
representation at the executive level. The Northwest district, which
has historically represented a large percentage of total potato
production, has in the past been allocated two officer positions, while
the other five districts have each been allocated one. Currently,
producers within the Northwest district collectively produce over 50
percent of the total U.S. potato production. The additional Vice-
Chairperson position created by this rule is allocated by the Board's
revised bylaws to the Northwest district, thereby increasing
representation for that district at the executive level from 25 percent
to 33 percent. The authority for this action is provided in Sec. Sec.
1207.327 and 1207.328 of the Plan.
At their March 18, 2006, meeting, the Board discussed the factors
leading up to this action and the potential impact on the industry
after the change. However, there is no direct financial impact to
producers, handlers, or importers as a result of this action.
The Board discussed alternatives to this change, including reducing
the number of districts, defining Committee representation as a ratio
relative to Board members from each district, and reducing the size of
the Board to the size of the existing Administrative Committee. None of
the proposals garnered much support and were ultimately dropped from
consideration because the changes were deemed to be too divisive to the
industry.
The AMS is committed to complying with the E-Government Act, to
promote the use of the Internet and other information technologies to
provide increased opportunities for citizen access to Government
information and services, and for other purposes.
This rule will not impose any additional reporting or recordkeeping
requirements on either small or large potato handlers or importers. As
with all Federal research and promotion programs, reports and forms are
periodically reviewed to reduce information requirements and
duplication by industry and public sector agencies. In addition, USDA
has not identified any relevant Federal rules that duplicate, overlap,
or conflict with this rule.
Further, the Board's meetings were widely publicized throughout the
potato industry and all interested persons were
[[Page 16269]]
invited to attend the meetings and participate in Board deliberations.
Like all Board meetings, the March 18, 2006, meeting was a public
meeting and all entities, both large and small, were able to express
their views on this issue. Finally, interested persons were invited to
submit information on the regulatory and informational impacts of this
action on small businesses.
An interim final rule concerning this action was published in the
Federal Register on December 22, 2006. Copies of the rule were mailed
by the Board's staff to all Board members and potato handlers. In
addition, the rule was made available through the Internet by USDA and
the Office of the Federal Register. The interim final rule provided for
a 60-day comment period which ended February 20, 2007. Two comments
were received, both of which were in support of the change.
A small business guide on complying with fruit, vegetable, and
specialty crop marketing agreements and orders may be viewed at the
following Web site: http://www.ams.usda.gov/fv/moab.html. Any questions
about the compliance guide should be sent to Jay Guerber at the
previously mentioned address in the FOR FURTHER INFORMATION CONTACT
section.
After consideration of all relevant material presented, including
the Board's recommendation, and other information, the interim final
rule as published in the Federal Register (71 FR 76899, December 22,
2006), is adopted, as a final rule, without change.
List of Subjects in 7 CFR Part 1207
Advertising, Agricultural research, Imports, Potatoes, Reporting
and recordkeeping requirements.
PART 1207--POTATO RESEARCH AND PROMOTION PLAN
0
Accordingly, the interim final rule amending 7 CFR part 1207 which was
published at 71 FR 76899 on December 22, 2006, is adopted as a final
rule without change.
Dated: March 29, 2007.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. E7-6274 Filed 4-3-07; 8:45 am]
BILLING CODE 3410-02-P