[Federal Register Volume 61, Number 88 (Monday, May 6, 1996)]
[Rules and Regulations]
[Pages 20121-20122]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-11150]
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DEPARTMENT OF AGRICULTURE
7 CFR Part 956
[Docket No. FV96-956-2IFR]
Sweet Onions Grown in the Walla Walla Valley of Southeast
Washington and Northeast Oregon; Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim final rule with request for comments.
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SUMMARY: This interim final rule establishes an assessment rate for the
Walla Walla Sweet Onion Committee (Committee) under Marketing Order No.
956 for the 1996-97 and subsequent fiscal periods. The Committee is
responsible for local administration of the marketing order which
regulates the handling of Sweet Onions grown in the Walla Walla Valley
of Southeast Washington and Northeast Oregon. Authorization to assess
onion handlers enables the Committee to incur expenses that are
reasonable and necessary to administer the program.
DATES: Effective on June 1, 1996. Comments received by June 5, 1996,
will be considered prior to issuance of a final rule.
ADDRESSES: Interested persons are invited to submit written comments
concerning this rule. Comments must be sent in triplicate to the Docket
Clerk, Fruit and Vegetable Division, AMS, USDA, P.O. Box 96456, room
2523-S, Washington, DC 20090-6456, FAX 202-720-5698. 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: 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, FAX 202-720-5698, or Robert J. Curry, Northwest Marketing Field
Office, Fruit and Vegetable Division, AMS, USDA, Green-Wyatt Federal
Building, room 369, 1220 Southwest Third Avenue, Portland, OR 97204,
telephone 503-326-2724, FAX 503-326-7440.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement and Order No. 956 (7 CFR part 956) regulating the handling of
Sweet Onions grown in the Walla Walla Valley of Southeast Washington
and Northeast 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 12778, Civil
Justice Reform. Under the marketing order now in effect, Walla Walla
Sweet Onion handlers are subject to assessments. Funds to administer
the order are derived from such assessments. It is intended that the
assessment rate as issued herein will be applicable to all assessable
onions beginning June 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. 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.
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA), 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 50 producers of Walla Walla Sweet Onions in
the production area and approximately 30 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 Walla Walla Sweet Onion producers and
handlers may be classified as small entities.
The Walla Walla Sweet 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 Walla Walla Sweet Onions. They are 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 assessment rate is formulated and
discussed in a public meeting. Thus, all directly affected persons have
an opportunity to participate and provide input.
[[Page 20122]]
The Committee met on March 12, 1996, and unanimously recommended
1996-97 expenditures of $114,000 and an assessment rate of $0.19 per
50-pound bag or equivalent of onions. In comparison, last year's
budgeted expenditures were $72,000. The assessment rate of $0.19 is
$0.07 higher than last year's established rate. Major expenditures
recommended by the Committee for the 1996-97 year include $34,000 for
administrative expenses, $62,000 for research and promotion, and $9,000
for compliance. Budgeted expenses for these items in 1995-96 were
$28,000, $22,000, and $9,000, respectively.
The assessment rate recommended by the Committee was derived by
dividing anticipated expenses by expected shipments of Walla Walla
Sweet Onions. Onion shipments for the year are estimated at 600,000 50-
pound bags which should provide $114,000 in assessment income, which
will be adequate to cover budgeted expenses. Funds in the reserve at
the beginning of the 1996-97 fiscal period are estimated at $27,000.
Funds in the reserve will be kept within the maximum permitted by the
order.
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 by the operation of the
marketing order. Therefore, the Agricultural Marketing Service 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.
Further rulemaking will be undertaken as necessary. 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 upon good
cause that it is impracticable, unnecessary, and contrary to the public
interest to give preliminary notice prior to putting this rule into
effect, and 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 begins on June 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 the assessment rate
action issued last year; and (4) this interim final rule provides a 30-
day comment period, and all comments timely received will be considered
prior to finalization of this rule.
List of Subjects in 7 CFR Part 956
Marketing agreements, Onions, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 956 is
amended as follows:
PART 956--SWEET ONIONS GROWN IN THE WALLA WALLA VALLEY OF SOUTHEAST
WASHINGTON AND NORTHEAST OREGON
1. The authority citation for 7 CFR part 956 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
2. A new Sec. 956.202 is added to read as follows:
Note: This section will not appear in the Annual Code of Federal
Regulations.
Sec. 956.202 Assessment rate.
On and after June 1, 1996, an assessment rate of $0.19 per 50 pound
bag or equivalent is established for Walla Walla Sweet Onions.
Dated: April 30, 1996.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 96-11150 Filed 5-03-96; 8:45 am]
BILLING CODE 3410-02-P
