[Federal Register Volume 63, Number 94 (Friday, May 15, 1998)]
[Proposed Rules]
[Pages 26999-27001]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-13005]
========================================================================
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.
========================================================================
Federal Register / Vol. 63, No. 94 / Friday, May 15, 1998 / Proposed
Rules
[[Page 26999]]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 958
[Docket No. FV98-958-1 PR]
Onions Grown in Certain Designated Counties in Idaho, and Malheur
County, Oregon; Decreased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: This rule would decrease the assessment rate established for
the Idaho-Eastern Oregon Onion Committee (Committee) under Marketing
Order No. 958 for the 1998-99 and subsequent fiscal periods from $0.10
to $0.09 per hundredweight of onions handled. The Committee is
responsible for local administration of the marketing order which
regulates the handling of onions grown in designated counties in Idaho,
and Malheur County, Oregon.
Authorization to assess Idaho-Eastern Oregon onion handlers enables
the Committee to incur expenses that are reasonable and necessary to
administer the program. The fiscal period begins July 1 and ends June
30. The assessment rate would remain in effect indefinitely unless
modified, suspended, or terminated.
DATES: Comments must be received by June 1, 1998.
ADDRESSES: Interested persons are invited to submit written comments
concerning this rule. Comments must be sent to the Docket Clerk, Fruit
and Vegetable Programs, AMS, USDA, room 2525-S, P.O. Box 96456,
Washington, DC 20090-6456; Fax: (202) 205-6632. Comments should
reference the docket number and the date and page number of this issue
of the Federal Register and will be available for public inspection in
the Office of the Docket Clerk during regular business hours.
FOR FURTHER INFORMATION CONTACT: Robert J. Curry, Northwest Marketing
Field Office, Marketing Order Administration Branch, Fruit and
Vegetable Programs, AMS, USDA, 1220 SW Third Avenue, room 369,
Portland, Oregon 97204-2807; telephone: (503) 326-2724, Fax: (503) 326-
7440; or George Kelhart, Marketing Order Administration Branch, Fruit
and Vegetable Programs, AMS, USDA, room 2525-S, P.O. Box 96456,
Washington, DC 20090-6456; telephone: (202) 720-2491, Fax: (202) 205-
6632. Small businesses may request information on compliance with this
regulation by contacting Jay Guerber, Marketing Order Administration
Branch, Fruit and Vegetable Programs, AMS, USDA, room 2525-S, P.O. Box
96456, Washington, DC 20090-6456; telephone: (202) 720-2491, Fax: (202)
205-6632.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement and Order No. 958 (7 CFR part 958), regulating the handling
of onions grown in certain designated counties in Idaho, and Malheur
County, Oregon, hereinafter referred to as the ``order.'' The order is
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 of Agriculture (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 order now in effect, Idaho-Eastern Oregon
onion handlers are subject to assessments. Funds to administer the
order are derived from such assessments. It is intended that the
assessment rate proposed herein would be applicable to all assessable
onions beginning on July 1, 1998, and continue until amended,
suspended, or terminated. This rule would 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. 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 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.
This rule would decrease the assessment rate established for the
Committee for the 1998-99 and subsequent fiscal periods from $0.10 per
hundredweight to $0.09 per hundredweight of onions handled.
The 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
Committee consists of six producer members, four handler members and
one public member, each of whom is familiar with the Committee's needs
and with the costs for goods and services in their local area and are
thus in a position to formulate an appropriate budget and assessment
rate. The budget and assessment rate were discussed at a public meeting
and all directly affected persons had an opportunity to participate and
provide input.
For the 1996-97 and subsequent fiscal periods, the Committee
recommended, and the Department approved, an assessment rate of $0.10
per hundredweight that would continue in effect from fiscal period to
fiscal period unless modified, suspended, or terminated by the
Secretary upon recommendation and information submitted by the
Committee or other information available to the Secretary.
The Committee met on April 2, 1998, and unanimously recommended
1998-99 expenditures of $1,155,205 and an assessment rate of $0.09 per
hundredweight of onions handled during the 1998-99 and subsequent
fiscal periods. The Committee estimated that the 1998-99 onion crop
will approximate 9,200,000 hundredweight of onions. In comparison, the
1997-98 fiscal period budget was established at $1,146,916 on an
estimated assessable onion harvest of 8,800,000 hundredweight of
onions. The decrease is necessary to prevent expected
[[Page 27000]]
assessment income from exceeding the amount necessary to administer the
program for the 1998-99 fiscal period.
The Committee anticipates that assessment income during the 1997-98
fiscal period will be approximately $100,000 higher than that estimated
for its 1997-98 budget. This is due to a greater level of onion
production than anticipated by the Committee during its 1997-98 budget
deliberations. The Committee also anticipates that it will not expend
$1,146,916 as budgeted for the 1997-98 fiscal period, but rather will
have expenditures totaling approximately $950,000. At the time the
1997-98 fiscal period budget was recommended, the Committee had
estimated that it would draw up to $216,916 from its operating reserve.
However, since current assessment income is greater than anticipated
and expenditures are less than budgeted, the operating reserve may
actually increase by the end of the fiscal period rather than decrease.
As a consequence, the Committee has estimated that its operating
reserve will approximate $1,141,700 by June 30, 1998. Thus, to help
ensure that the operating reserve does not exceed the maximum allowed
by the order of approximately one fiscal period's expenditures, the
Committee recommended that the assessment rate be decreased. Lower
assessment rates were considered, but not recommended because they
would not generate the income necessary to administer the program with
an adequate operating reserve.
The major expenditures recommended by the Committee for the 1998-99
fiscal period include $215,205 for administration, $55,000 for
production research, $750,000 for market promotion including paid
advertising, $60,000 for export market development, and $75,000 for
marketing order contingencies. Budgeted expenses for these items in the
1997-98 fiscal period were $206,716, $55,200, $750,000, $60,000, and
$75,000, respectively.
The Committee has based its recommended assessment rate decrease on
the 1998-99 crop estimate, the 1998-99 fiscal period expenditures
estimate, as well as the current and projected balance of the operating
reserve. The decreased assessment rate should provide $828,000 in
income, which, when combined with interest income of $55,000 and
operating reserve funds of $272,205, would be adequate to cover
budgeted expenses. As noted above, the Committee estimates it will have
approximately $1,141,700 in its operating reserve at the end of the
current fiscal period, which should be adequate to cover any income
shortages. This amount is within the maximum permitted by the order of
approximately one fiscal period's expenditures (Sec. 958.44).
The proposed assessment rate would 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 would be in effect for an indefinite
period, the Committee would 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 and are locally published. Committee meetings are open to
the public and interested persons may express their views at these
meetings. The Department would evaluate Committee recommendations and
other available information to determine whether modification of the
assessment rate is needed. Further rulemaking would be undertaken as
necessary.
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA), the Agricultural Marketing Service (AMS) has considered the
economic impact this rule would have on small entities. Accordingly,
the 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 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 35 handlers of Idaho-Eastern Oregon onions
who are subject to regulation under the order and approximately 260
onion producers in the regulated production area. Small agricultural
service firms have been defined by the Small Business Administration
(13 CFR 121.601) as those having annual receipts of less than
$5,000,000, and small agricultural producers are defined as those
having annual receipts of less than $500,000. The majority of Idaho-
Eastern Oregon onion handlers and producers may be classified as small
entities.
This rule would decrease the assessment rate established for the
Committee and collected from handlers for the 1998-99 and subsequent
fiscal periods from $0.10 per hundredweight to $0.09 per hundredweight
of onions handled. Both the $0.09 assessment rate and the 1998-99
budget of $1,155,205 were unanimously recommended by the Committee at
its April 2, 1998, meeting. The proposed assessment rate is $0.01 lower
than the rate currently in effect. The Committee recommended a
decreased assessment rate to help ensure that the operating reserve
does not exceed the maximum allowed by the order of approximately one
fiscal period's expenditures. The anticipated crop of 9,200,000
hundredweight is approximately 400,000 hundredweight larger than the
crop estimate used to establish the 1997-98 budget. The $0.09 rate
should provide $828,000 in assessment income, which, when combined with
interest income of $55,000 and $272,205 from the operating reserve,
would be adequate to meet the 1998-99 fiscal period's budgeted
expenses.
The Committee reviewed and unanimously recommended 1998-99
expenditures of $1,155,205 which includes increases in administrative
expenses, salaries, and committee expenses. Prior to recommending this
budget, the Committee considered information from various sources,
including the Idaho-Eastern Oregon Onion Executive, Research, Promotion
and Export Development Committees. Alternative expenditure levels were
discussed and rejected by these subcommittees, and ultimately by the
full Committee, based upon the relative value of various research and
promotion projects to the Idaho-Eastern Oregon onion industry.
The major expenditures recommended by the Committee for the 1998-99
fiscal period include $215,205 for administration, $55,000 for
production research, $750,000 for market promotion including paid
advertising, $60,000 for export market development, and $75,000 for
marketing order contingencies. Budgeted expenses for these items in the
1997-98 fiscal period were $206,716, $55,200, $750,000, $60,000, and
$75,000, respectively.
A review of historical information and preliminary information
pertaining to the upcoming season indicates that the F.O.B. price for
the 1998-99 onion season could average $13.10 per hundredweight of
onions. Therefore, the estimated assessment revenue for the 1998-99
fiscal period ($828,000) as a percentage of the projected total F.O.B.
revenue ($120,520,000) would be 0.007 percent. This figure indicates
that the $0.09 assessment rate recommended by the Committee would have
a relatively
[[Page 27001]]
insignificant impact on the Idaho-Eastern Oregon onion industry.
This action would decrease the assessment obligation imposed on
handlers. While assessments impose some additional costs on handlers,
the costs are minimal and uniform on all handlers. Some of the
additional costs may be passed on to producers. However, these costs
would be offset by the benefits derived by the operation of the order.
In addition, the Committee's meeting was widely publicized throughout
the Idaho-Eastern Oregon onion industry and all interested persons were
invited to attend the meeting and participate in Committee
deliberations on all issues. Like all Committee meetings, the April 2,
1998, meeting was a public meeting and all entities, both large and
small, were able to express views on this issue. Finally, interested
persons are invited to submit information on the regulatory and
informational impacts of this action on small businesses.
This proposed rule would impose no additional reporting or
recordkeeping requirements on either small or large onion handlers. 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.
The Department has not identified any relevant Federal rules that
duplicate, overlap, or conflict with this rule.
A 15-day comment period is provided to allow interested persons the
opportunity to respond to this request for information and comments.
Fifteen days is deemed appropriate because: (1) The Committee needs to
have sufficient funds to pay its expenses which are incurred on a
continuous basis; (2) the 1998-99 fiscal period begins on July 1, 1998,
and the order requires that the rate of assessment for each fiscal
period apply to all assessable onions handled during such fiscal
period; and (3) handlers are aware of this action which was recommended
by the Committee at a public meeting and is similar to other assessment
rate actions issued in past years.
List of Subjects in 7 CFR Part 958
Marketing agreements, Onions, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 958 is
proposed to be amended as follows:
PART 958--ONIONS GROWN IN CERTAIN DESIGNATED COUNTIES IN IDAHO, AND
MALHEUR COUNTY, OREGON
1. The authority citation for 7 CFR part 958 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
2. Section 958.240 is proposed to be revised to read as follows:
Sec. 958.240 Assessment rate.
On and after July 1, 1998, an assessment rate of $0.09 per
hundredweight is established for Idaho-Eastern Oregon onions.
Dated: May 11, 1998.
Robert C. Keeney,
Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 98-13005 Filed 5-14-98; 8:45 am]
BILLING CODE 3410-02-P
