[Federal Register Volume 62, Number 45 (Friday, March 7, 1997)]
[Rules and Regulations]
[Pages 10420-10421]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-5591]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
7 CFR Part 959
[Docket No. FV96-959-1 FIR]
Onions Grown in South Texas; Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Department of Agriculture (Department) is adopting as a
final rule, without change, the provisions of an interim final rule
establishing an assessment rate for the South Texas Onion Committee
(Committee) under Marketing Order No. 959 for the 1996-97 and
subsequent fiscal periods. The Committee is responsible for local
administration of the marketing order which regulates the handling of
onions grown in South Texas. Authorization to assess Texas onion
handlers enables the Committee to incur expenses that are reasonable
and necessary to administer the program.
EFFECTIVE DATE: August 1, 1996.
FOR FURTHER INFORMATION CONTACT: Belinda G. Garza, Marketing
Specialist, McAllen Marketing Field Office, Fruit and Vegetable
Division, AMS, USDA, 1313 East Hackberry, McAllen, TX 78501, telephone
210-682-2833; FAX 210-682-5942, or Martha Sue Clark, Program Assistant,
Marketing Order Administration Branch, Fruit and Vegetable Division,
AMS, USDA, P.O. Box 96456, room 2525-S, Washington, DC 20090-6456,
telephone 202-720-9918; FAX 202-720-5698. Small businesses may request
information on compliance with this regulation by contacting: Jay
Guerber, Marketing Order Administration Branch, Fruit and Vegetable
Division, AMS, USDA, P.O. Box 96456, room 2525-S, Washington, DC 20090-
6456; telephone 202-720-2491; FAX 202-720-5698.
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, hereinafter
referred to as the ``order.'' 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 12988, Civil
Justice Reform. Under the marketing order now in effect, South Texas
onion handlers are subject to assessments. It is intended that the
assessment rate as issued herein will be applicable to all assessable
onions beginning August 1, 1996, and continuing until amended,
suspended, or terminated. 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 request a modification of the order or to be exempted
therefrom. Such handler is afforded the opportunity for a hearing 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
Secretary's ruling on the petition, provided an action is filed not
later than 20 days after the date of the entry of the ruling.
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA), the
[[Page 10421]]
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
businesses 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 48 producers of South Texas onions in the
production area and approximately 36 handlers subject to regulation
under the marketing order. Small agricultural producers have been
defined by the Small Business Administration (13 CFR 121.601) as those
having annual receipts of less than $500,000, and small agricultural
service firms are defined as those whose annual receipts are less than
$5,000,000. The majority of South Texas onion producers and handlers
may be classified as small entities.
The Texas onion marketing order provides authority for the
Committee, with the approval of the Department, to formulate an annual
budget of expenses and collect assessments from handlers to administer
the program. 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 and assessment rate.
The assessment rate is formulated and discussed in a public meeting.
Thus, all directly affected persons have an opportunity to participate
and provide input.
The Committee, in a telephone vote, unanimously recommended 1996-97
administrative expenses of $100,000 for personnel, office, and the
travel portion of the compliance budget. These expenses were approved
in October 1996. The assessment rate and funding for research and
promotion projects, and the road guard station maintenance portion of
the compliance budget were to be recommended at a later Committee
meeting.
The Committee subsequently met on November 19, 1996, and
unanimously recommended 1996-97 expenditures of $448,000 and an
assessment rate of $0.07 per 50-pound container or equivalent of
onions. In comparison, last year's budgeted expenditures were $585,250.
The assessment rate of $0.07 is $0.03 lower than last year's
established rate. Major expenditures recommended by the Committee for
the 1996-97 fiscal period include $80,000 for personnel and
administrative expenses, $120,000 for compliance, $150,000 for
promotion, and $98,000 for onion breeding research. Budgeted expenses
for these items in 1995-96 were $96,250, $144,000, $246,000, and
$99,000, respectively.
The assessment rate recommended by the Committee was derived by
dividing anticipated expenses by expected shipments of South Texas
onions. Onion shipments for the year are estimated at 5 million 50-
pound equivalents, which should provide $350,000 in assessment income.
Income derived from handler assessments, along with interest income and
funds from the Committee's authorized reserve, will be adequate to
cover budgeted expenses. Funds in the reserve will be kept within the
maximum permitted by the order.
An interim final rule regarding this action was published in the
January 7, 1997, issue of the Federal Register (62 FR 916). That rule
provided for a 30-day comment period. No comments were received.
This action will reduce the assessment obligation imposed on
handlers. While this rule will impose some additional costs on
handlers, the costs are in the form of uniform assessments on all
handlers. Some of the additional costs may be passed on to producers.
However, these costs will be offset by the benefits derived from the
operation of the marketing order. Therefore, the AMS has determined
that this rule will not have a significant economic impact on a
substantial number of small entities.
The assessment rate established in this rule will continue in
effect indefinitely unless modified, suspended, or terminated by the
Secretary upon recommendation and information submitted by the
Committee or other available information.
Although this assessment rate is effective for an indefinite
period, the Committee will continue to meet prior to or during each
fiscal period to recommend a budget of expenses and consider
recommendations for modification of the assessment rate. The dates and
times of Committee meetings are available from the Committee or the
Department. Committee meetings are open to the public and interested
persons may express their views at these meetings. The Department will
evaluate Committee recommendations and other available information to
determine whether modification of the assessment rate is needed. The
Committee's 1996-97 budget and those for subsequent fiscal periods will
be reviewed and, as appropriate, approved by the Department.
After consideration of all relevant material presented, including
the information and recommendation 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.
Pursuant to 5 U.S.C. 553, it is also found and determined that good
cause exists for not postponing the effective date of this rule until
30 days after publication in the Federal Register because: (1) The
Committee needs to have sufficient funds to pay its expenses which are
incurred on a continuous basis; (2) the 1996-97 fiscal period began on
August 1, 1996, and the marketing order requires that the rate of
assessment for each fiscal period apply to all assessable onions
handled during such fiscal period; (3) handlers are aware of this
action which was unanimously recommended by the Committee at a public
meeting and is similar to other assessment rate actions issued in past
years; and (4) an interim final rule was published on this action and
provided for a 30-day comment period; no comments were received.
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
Accordingly, the interim final rule amending 7 CFR part 959 which
was published at 62 FR 916 on January 7, 1997, is adopted as a final
rule without change.
Dated: March 3, 1997.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 97-5591 Filed 3-6-97; 8:45 am]
BILLING CODE 3410-02-P
