96-24241. Vidalia Onions Grown in Georgia; Assessment Rate

[Federal Register Volume 61, Number 186 (Tuesday, September 24, 1996)]
[Rules and Regulations]
[Pages 49952-49954]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-24241]


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DEPARTMENT OF AGRICULTURE
7 CFR Part 955

[Docket No. FV96-955-1 IFR]


Vidalia Onions Grown in Georgia; 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 
Vidalia Onion Committee (Committee) under Marketing Order No. 955 for 
the 1996-97 and subsequent fiscal periods. The Committee is responsible 
for local administration of the marketing order which regulates the 
handling of Vidalia onions grown in Georgia. Authorization to assess 
Vidalia onion handlers enables the Committee to incur expenses that

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are reasonable and necessary to administer the program.

DATES: Effective on September 15, 1996. Comments received by October 
24, 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 
2525-S, Washington, DC 20090-6456, FAX [phone]. 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: Doris Jamieson, Marketing Assistant, 
Southeast Marketing Field Office, Fruit and Vegetable Division, AMS, 
USDA, P.O. Box 2276, Winter Haven, FL 33883-2276, telephone 941-299-
4770; FAX [phone], 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 [phone]; FAX [phone]. 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 [phone]; FAX [phone].

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing 
Agreement and Order No. 955, both as amended (7 CFR part 955), 
regulating the handling of Vidalia onions grown in Georgia, 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 marketing order now in effect, Vidalia 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 Vidalia onions 
beginning September 15, 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 250 producers of Vidalia onions in the 
production area and approximately 145 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 Vidalia onion producers and handlers may be 
classified as small entities.
    The Vidalia 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 
Vidalia 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 August 1, 1996, and unanimously recommended 
1996-97 expenditures of $370,000 and an assessment rate of $0.10 per 
50-pound bag or equivalent of Vidalia onions. In comparison, last 
year's budgeted expenditures were $343,000. The assessment rate of 
$0.10 is the same as last year's established rate. Major expenditures 
recommended by the Committee for the 1996-97 fiscal period include 
$110,000 for marketing, $95,000 for research, $139,000 for program 
administration, and $26,000 for compliance. Budgeted expenses for these 
items in 1995-96 were $146,500, $48,500, $122,600, and $25,400, 
respectively.
    The assessment rate recommended by the Committee was derived by 
dividing anticipated expenses by expected shipments of Vidalia onions. 
Vidalia onion shipments for the year are estimated at 3,614,000 which 
should provide $361,400 in assessment income. The Committee also 
anticipates shipments of 70,000 50-pound bags of previously unassessed 
Vidalia onions which have been in storage, which will yield an 
additional $7,000 in assessment income. Income derived from handler 
assessments, along with interest income, will be adequate to cover 
budgeted expenses. 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 AMS has determined that this rule will 
not have a significant economic impact on a substantial number of small 
entities. Interested persons are invited to submit information on the 
regulatory and informational impacts of this action on small 
businesses.
    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

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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 began on September 15, 1996, and the marketing 
order requires that the rate of assessment for each fiscal period apply 
to all assessable Vidalia 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) 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 955

    Marketing agreements, Onions, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 955 is 
amended as follows:

PART 955--VIDALIA ONIONS GROWN IN GEORGIA

    1. The authority citation for 7 CFR part 955 continues to read as 
follows:

    Authority: 7 U.S.C. 601-674.

    2. A new undesignated center heading--Assessment Rates and a new 
Sec. 955.209 are added to read as follows:

    Note: This section will appear in the Code of Federal 
Regulations.

Assessment Rates


Sec. 955.209  Assessment rate.

    On and after September 15, 1996, an assessment rate of $0.10 per 
50-pound bag or equivalent is established for Vidalia onions.

    Dated: September 17, 1996.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 96-24241 Filed 9-23-96; 8:45 am]
BILLING CODE 3410-02-P