[Federal Register Volume 61, Number 145 (Friday, July 26, 1996)]
[Rules and Regulations]
[Pages 39050-39052]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-18997]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 956
[Docket No. FV96-956-2 FIR]
Sweet Onions Grown in the Walla Walla Valley of Southeast
Washington and Northeast Oregon; Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Department of Agriculture (Department) is adopting as a
final rule, with change, the provisions of an interim final rule that
established 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.
EFFECTIVE DATE: Effective on June 1, 1996.
FOR FURTHER INFORMATION CONTACT: Martha Sue Clark, Program Assistant,
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, Marketing
Specialist, 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. 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 2523-S, Washington, DC 20090-6456, telephone 202-720-
2491, FAX 202-720-5698.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement and Order No. 956 (7 CFR part 956)
[[Page 39051]]
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 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, 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.
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.
An interim final rule regarding this action was published in the
May 6, 1996, issue of the Federal Register (61 FR 20121). That interim
final rule added Sec. 956.202 to establish an assessment rate for the
Committee. That rule provided that interested persons could file
comments through June 5, 1996. No comments were received.
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 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.
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.
This final rule also corrects an error in the interim final rule
published May 6, 1996 (61 FR 20121). On page 20122, the note
immediately following amendatory instruction 2 incorrectly states that
Sec. 956.202 will not appear in the annual Code of Federal Regulations.
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
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
[[Page 39052]]
unanimously recommended by the Committee at a public meeting and is
similar to the assessment rate action issued last year; and (4) an
interim final rule was published on this action and provided for a 30-
day comment period, and no comments were received.
List of Subjects in 7 CFR Part 956
Marketing agreements, Onions, Reporting and recordkeeping
requirements.
PART 956--SWEET ONIONS GROWN IN THE WALLA WALLA VALLEY OF SOUTHEAST
WASHINGTON AND NORTHEAST OREGON
The authority citation for 7 CFR part 956 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
Accordingly, the interim final rule amending 7 CFR part 956 which
was published at 61 FR 20122 on May 6, 1996, is adopted with the
following correction to the note immediately following amendatory
instruction 2. The note should read:
This section will appear in the annual Code of Federal Regulations.
Dated: July 22, 1996.
Sharon Bomer Lauritsen,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 96-18997 Filed 7-25-96; 8:45 am]
BILLING CODE 3410-02-P
