[Federal Register Volume 59, Number 52 (Thursday, March 17, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-6150]


[[Page Unknown]]

[Federal Register: March 17, 1994]


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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

7 CFR Part 955

[Docket No. FV93-955-3PR]

 

Vidalia Onions Grown in Georgia; Interest Charges on Delinquent 
Assessments

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule with request for comments.

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SUMMARY: This rule proposes to revise the administrative rules and 
regulations established under the Federal marketing order for Vidalia 
onions grown in Georgia. This proposal would allow the Vidalia Onion 
Committee (Committee) to impose interest charges on handler assessments 
that are paid late. This proposal would encourage handlers to pay 
assessments in a timely manner. This proposal is based on a unanimous 
recommendation of the Committee, which is responsible for local 
administration of the order.

DATES: Comments which are received by April 1, 1994 will be considered 
prior to any finalization of this proposed rule.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposed rule. Comments must be sent in triplicate to 
the Docket Clerk, Marketing Order Administrative Branch, F&V, AMS, 
USDA, Room 2523-S, P.O. Box 96456, Washington, DC 20090-6456, FAX 
number (202) 720-5698. Comments should reference this docket number, 
the date and page number of this issue of the Federal Register and will 
be made available for public inspection in the Office of the Docket 
Clerk during regular business hours.

FOR FURTHER INFORMATION CONTACT: Shoshana Avrishon, Marketing 
Specialist, Marketing Order Administration Branch, Fruit and Vegetable 
Division, AMS, USDA, room 2536-S., P.O. Box 96456, Washington, DC 
20090-6456; telephone (202) 720-3610, or FAX (202) 720-5698; or William 
G. Pimental, Marketing Specialist, Southeast Marketing Field Office, 
Fruit and Vegetable Division, AMS, USDA, P.O. Box 2276, Winter Haven, 
Florida 33883-2276; (813) 299-4770, or FAX (813) 299-5169.

SUPPLEMENTARY INFORMATION: This proposed rule is issued under Marketing 
Agreement and Order No. 955 (7 CFR part 955) regulating the handling of 
Vidalia onions grown in Georgia. The marketing agreement and order are 
authorized by the Agricultural Marketing Agreement Act of 1937, as 
amended (7 U.S.C. 601-674), hereinafter referred to as the Act.
    The U.S. 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. This proposal is not intended to have retroactive 
effect. This proposal 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 8c(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. A handler is afforded the opportunity for a hearing on the 
petition. After a 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 requirements set forth in the Regulatory Flexibility 
Act (RFA), the Administrator of the Agricultural Marketing Service 
(AMS) has considered the economic impact of this proposal 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 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 145 handlers of Vidalia onions that are 
subject to regulation under the marketing order and approximately 250 
producers in the production area. Small agricultural service firms are 
defined by the Small Business Administration (13 CFR 121.601) as those 
whose annual receipts are less than $3,500,000, and small agricultural 
producers have been defined as those having annual receipts of less 
than $500,000. The majority of the Vidalia onion handlers and producers 
may be classified as small entities.
    This rule proposes adding a new Sec. 955.142 to Subpart-- 
Administrative Rules and Regulations and is based on a unanimous 
recommendation of the Committee and other available information.
    Section 955.42(f), of the marketing order provides authority for 
the Committee to impose a late payment or an interest charge or both, 
on any handlers who fail to pay assessments in a timely manner.
    On November 18, 1993, the Committee met to discuss, among other 
things, the difficulty it has experienced in collecting assessments 
from some handlers. It reported that during the past season 
approximately 20 handlers paid assessments late. When this occurred, 
handlers who paid their assessments on time were placed in an unfair 
situation compared to those handlers who failed to do so. The 
delinquent handlers were able to use the money which was due the 
Committee for other financial obligations and thus eliminate interest 
charges on money that they might otherwise have had to borrow to pay 
those other financial obligations. This money could also have been 
invested to earn interest for the delinquent handlers.
    At the meeting, the Committee determined that it was important to 
encourage all handlers to pay their assessments promptly, thereby 
eliminating these inequities and avoiding additional and unnecessary 
collection costs. The Committee recommended the following proposal. If 
a handler does not pay all of the handler's assessments 30 days after 
the date of billing, the unpaid portion of the account would be 
considered delinquent and subject to interest charges at the rate of 
one percent per month. Handlers would be charged interest charges on 
unpaid assessments and interest charges on any unpaid interest charges 
until the late obligation is paid in full. The Committee assesses 
handlers on a monthly basis.
    The Committee believes that the proposed interest charge is high 
enough to discourage handlers from delaying assessment payments. Thus, 
this proposal is expected to encourage all handlers to pay their 
assessments in a timely manner, and facilitate the collection of funds 
to pay expenses necessary for the maintenance and functioning of the 
Committee.
    Based on the above, the Administrator of the AMS has determined 
that this proposed rule would not have a significant economic impact on 
a substantial number of small entities.
    A period of fifteen days is provided for all interested persons to 
submit written comments. The Committee would like the proposal to be 
effective as soon as possible so that efforts to encourage timely 
payments can be implemented early in 1994. All comments timely received 
will be considered before issuing a final decision on this proposal.

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 
proposed to be 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. Section 955.142 is proposed to be added to read as follows:


Sec. 955.142  Delinquent assessments.

    Each handler shall pay interest of one percent per month on any 
unpaid assessments levied pursuant to section 955.42 and any accrued 
unpaid interest beginning 30 days after date of billing, until the 
delinquent handler's assessment plus applicable interest has been paid 
in full.

    Dated: March 11, 1994.
Martha B. Ransom,
Acting Deputy Director, Fruit and Vegetable Division.
[FR Doc. 94-6150 Filed 3-16-94; 8:45 am]
BILLING CODE 3410-02-P