[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] ----------------------------------------------------------------------- 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. ----------------------------------------------------------------------- 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