[Federal Register Volume 59, Number 51 (Wednesday, March 16, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-6139]
[[Page Unknown]]
[Federal Register: March 16, 1994]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 959
[Docket No. FV93-959-1FIR]
South Texas Onions; Increased Expenses and Establishment of
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 amended interim final
rule that increased the level of authorized expenses and established an
assessment rate that generated funds to pay those expenses.
Authorization of this budget enables the South Texas Onion 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: August 1, 1993, through July 31, 1994.
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, or Belinda G. Garza, McAllen Marketing Field Office, Fruit and
Vegetable Division, AMS, USDA, 1313 East Hackberry, McAllen, TX 78501,
telephone 210-682-2833.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement No. 143 and Order No. 959, both as amended (7 CFR part 959),
regulating the handling of onions grown in South Texas. The marketing
agreement and order are effective under the Agricultural Marketing
Agreement Act of 1937, as amended (7 U.S.C. 601-674), hereinafter
referred to as the Act.
The Department is issuing this rule in conformance with Executive
Order 12866.
This rule has been reviewed under Executive Order 12778, Civil
Justice Reform. Under the marketing order provisions now in effect,
South Texas onions are subject to assessments. It is intended that the
assessment rate as issued herein will be applicable to all assessable
onions handled during the 1993-94 fiscal period, which began August 1,
1993, and ends July 31, 1994. This rule will not preempt any State or
local laws, regulations, or policies, unless they present an
irreconcilable conflict with this rule.
The Act provides that administrative proceedings must be exhausted
before parties may file suit in court. Under section 608c(15)(A) of the
Act, any handler subject to an order may file with the Secretary a
petition stating that the order, any provision of the order, or any
obligation imposed in connection with the order is not in accordance
with law and requesting 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 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 97 producers of South Texas onions under
this marketing order, and approximately 38 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 $3,500,000. The majority of South Texas onion
producers and handlers may be classified as small entities.
The budget of expenses for the 1993-94 fiscal period was prepared
by the South Texas Onion 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 South Texas onions. 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 South Texas
onions. 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.
Committee administrative expenses of $80,000 for personnel, office,
and compliance expenses were recommended in a mail vote completed
August 4, 1993. The assessment rate and funding for the research and
promotion projects were to be recommended at a later Committee meeting.
The Committee administrative expenses of $80,000 were published in the
Federal Register as an interim final rule September 28, 1993 (58 FR
50509). That interim final rule added Sec. 959.234, authorizing
expenses for the Committee, and provided that interested persons could
file comments through October 28, 1993. No comments were filed.
The Committee subsequently met on November 9, 1993, and unanimously
recommended increases of $2,500 for personnel expenses and $125,000 for
compliance activities in the recently approved 1993-94 budget. The
compliance increase will provide for funds to operate road guard
stations surrounding the production area. The Committee also
unanimously recommended $210,000 in market development activities and
$105,600 in production research. These expenditures represent increases
over last year's budget of $65,000 for market development and $11,412
for production research. Under this amended budget, expense items for
the 1993-94 fiscal period are as follows: $37,472 for personnel,
$29,028 for office expenses, $141,000 for compliance activities,
$210,000 for market development, and $105,600 for production research.
The initial 1993-94 budget, published on September 28, 1993, did
not establish an assessment rate. Therefore, the Committee also
unanimously recommended an assessment rate of $0.10 per 50-pound
container or equivalent of onions, $0.03 more than last year's
assessment rate. This rate, when applied to anticipated shipments of
approximately 5 million 50-pound containers or equivalents, will yield
$500,000 in assessment income, which, along with $23,100 from the
reserve, will be adequate to cover budgeted expenses. Funds in the
reserve as of December 31, 1993, were $346,415, which is within the
maximum permitted by the order of two fiscal periods' expenses.
An amended interim final rule was published in the Federal Register
on January 11, 1994 (59 FR 1452). That interim final rule amended
Sec. 959.234 to increase the level of authorized expenses and establish
an assessment rate for the Committee. That rule provided that
interested persons could file comments through February 10, 1994. No
comments were received.
While this rule 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 rule 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 1993-94 fiscal period began on August 1, 1993. The marketing
order requires that the rate of assessment for the fiscal period apply
to all assessable onions 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 amended
interim final rule.
List of Subjects in 7 CFR Part 959
Marketing agreements, Onions, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 959 is
amended as follows:
PART 959--ONIONS GROWN IN SOUTH TEXAS
1. The authority citation for 7 CFR part 959 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
Accordingly, the amended interim final rule revising Sec. 959.234
which was published at 59 FR 1452 on January 11, 1994, is adopted as a
final rule without change.
Dated: March 8, 1994.
Martha B. Ransom,
Acting Deputy Director, Fruit and Vegetable Division.
[FR Doc. 94-6139 Filed 3-15-94; 8:45 am]
BILLING CODE 3410-02-P
