[Federal Register Volume 59, Number 7 (Tuesday, January 11, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-607]


[[Page Unknown]]

[Federal Register: January 11, 1994]


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DEPARTMENT OF AGRICULTURE
7 CFR Part 959

[Docket No. FV93-959-1IFR; Amendment 1]

 

South Texas Onions; Increased Expenses and Establishment of 
Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Amended interim final rule with request for comments.

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SUMMARY: This interim final rule amends a previous interim final rule 
which authorized administrative expenses for the South Texas Onion 
Committee (Committee) under M.O. No. 959. This interim final rule 
increases the level of authorized expenses and establishes an increased 
assessment rate to generate funds to pay those expenses. Authorization 
of this increased budget enables the Committee to incur expenses that 
are reasonable and necessary to administer the program. Funds to 
administer this program are derived from assessments on handlers.

DATES: Effective August 1, 1993, through July 31, 1994. Comments 
received by February 10, 1994, will be considered prior to issuance of 
a final rule.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this action. 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, or Belinda G. Garza, McAllen 
Marketing Field Office, Fruit and Vegetable Division, AMS, USDA, 1313 
East Hackberry, McAllen, TX 78501, telephone 210-682-2833.

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. 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 interim final rule has been reviewed under Executive Order 
12778, Civil Justice Reform. Under the marketing order provisions now 
in effect, South Texas onions are subject to assessments. It is 
intended that the assessment rate as issued herein will be applicable 
to all assessable onions handled during the 1993-94 fiscal period, 
which began August 1, 1993, and ends July 31, 1994. This interim final 
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 requesting 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 in equity to review 
the Secretary's ruling on the petition, provided a bill in equity is 
filed not later than 20 days after the date of the entry of the ruling.
    Pursuant to the requirements set forth in the Regulatory 
Flexibility Act (RFA), the Administrator of 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 47 producers of South Texas onions under 
this marketing order, and approximately 34 handlers. 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 $3,500,000. The majority of South Texas onion 
producers and handlers may be classified as small entities.
    The budget of expenses for the 1993-94 fiscal period was prepared 
by the South Texas Onion Committee, the agency responsible for local 
administration of the marketing order, and submitted to the Department 
of Agriculture for approval. 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. The budget was formulated and discussed in a public meeting. 
Thus, all directly affected persons have had an opportunity to 
participate and provide input.
    The assessment rate recommended by the Committee was derived by 
dividing anticipated expenses by expected shipments of South Texas 
onions. Because that rate will be applied to actual shipments, it must 
be established at a rate that will provide sufficient income to pay the 
Committee's expenses.
    Committee administrative expenses of $80,000 for personnel, office, 
and compliance expenses were recommended in a mail vote completed 
August 4, 1993. The assessment rate and funding for the research and 
promotion projects were to be recommended at a later Committee meeting. 
The Committee administrative expenses of $80,000 were published in the 
Federal Register as an interim final rule September 28, 1993 (58 FR 
50509). That interim final rule added Sec. 959.234, authorizing 
expenses for the Committee, and provided that interested persons could 
file comments through October 28, 1993. No comments were filed.
    The Committee subsequently met on November 9, 1993, and unanimously 
recommended increases of $2,500 for personnel expenses and $125,000 for 
compliance activities in the recently approved 1993-94 budget. The 
compliance increase will provide for funds to operate road guard 
stations surrounding the production area. The Committee also 
unanimously recommended $210,000 in market development activities and 
$105,600 in production research. These expenditures represent increases 
over last year's budget of $65,000 for market development and $11,412 
for production research. Under this amended budget, expense items for 
the 1993-94 fiscal period are as follows: $37,472 for personnel, 
$29,028 for office expenses, $141,000 for compliance activities, 
$210,000 for market development, and $105,600 for production research.
    The initial 1994 budget, published on September 28, 1993, did not 
establish an assessment rate. Therefore, the Committee also unanimously 
recommended an assessment rate of $0.10 per 50-pound container or 
equivalent of onions, $0.03 more than last year's assessment rate. This 
rate, when applied to anticipated shipments of approximately 5 million 
50-pound containers or equivalents, will yield $500,000 in assessment 
income, which, along with $23,100 from the reserve, will be adequate to 
cover budgeted expenses. Funds in the reserve as of September 30, 1993, 
were $346,415, which is within the maximum permitted by the order of 
two fiscal periods' expenses.
    While this action will impose some additional costs on handlers, 
the costs are in the form of uniform assessments on 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 Administrator of the AMS has determined 
that this action will not have a significant economic impact on a 
substantial number of small entities.
    After consideration of all relevant matter presented, including the 
information and recommendations 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 action 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 fiscal 
period began on August 1, 1993, and the marketing order requires that 
the rate of assessment for the fiscal period apply to all assessable 
onions handled during the fiscal period; (3) handlers are aware of this 
action which was unanimously recommended by the Committee at a public 
meeting and is similar to that taken for the 1992-93 fiscal period; 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 action.

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

    1. The authority citation for 7 CFR part 959 is revised to read as 
follows:

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

    2. Section 959.234 is revised to read as follows:

    Note: This section will not appear in the Code of Federal 
Regulations.


Sec. 959.234  Expenses and assessment rate.

    Expenses of $523,100 by the South Texas Onion Committee are 
authorized and an assessment rate of $0.10 per 50-pound container or 
equivalent of onions is established for the fiscal period ending July 
31, 1994. Unexpended funds may be carried over as a reserve.

    Dated: January 5, 1994.
Robert C. Keeney,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 94-607 Filed 1-10-94; 8:45 am]
BILLING CODE 3410-02-P