[Federal Register Volume 60, Number 128 (Wednesday, July 5, 1995)]
[Rules and Regulations]
[Pages 34843-34844]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-16409]



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 Rules and Regulations
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  Federal Register / Vol. 60, No. 128 / Wednesday, July 5, 1995 / Rules 
and Regulations  


[[Page 34843]]


DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 956

[Docket No. FV95-956-1IFR]


Sweet Onions Grown in the Walla Walla Valley of Southeast 
Washington and Northeast Oregon; Expenses and Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: This interim final rule authorizes expenditures and 
establishes an assessment rate under Marketing Order No. 956 for the 
1995-96 fiscal period. Authorization of this budget enables the Walla 
Walla Sweet Onion Committee (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 June 1, 1995, through May 31, 1996. Comments received 
by August 4, 1995, will be considered prior to issuance of a final 
rule.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this interim final rule. 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 Robert J. Curry, 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.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing 
Agreement and Order No. 956 (7 CFR part 956) regulating the handling of 
Sweet Onions grown in the Walla Walla Valley of Southeast Washington 
and Northeast Oregon. 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 of Agriculture (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 now in effect 
Walla Walla Sweet Onion handlers are subject to assessments. Funds to 
administer the Walla Walla Sweet Onion order are derived from such 
assessments. It is intended that the assessment rate as issued herein 
will be applicable to all assessable onions during the 1995-96 fiscal 
period, which began June 1, 1995, and ends May 31, 1996. 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 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 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 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 50 producers of Walla Walla Sweet Onions 
under this marketing order, and approximately 9 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 $5,000,000. The majority of 
Walla Walla Sweet Onion producers and handlers may be classified as 
small entities.
    The budget of expenses for the 1995-96 fiscal period was prepared 
by the Walla Walla Sweet Onion Committee, the agency responsible for 
local administration of the marketing order, and submitted to the 
Department for approval. 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 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 Walla Walla 
Sweet 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.
    The order became effective May 19, 1995, and the Committee met on 
June 7, 1995, and unanimously recommended 

[[Page 34844]]
an initial budget of $72,000. Expense items include $12,000 for a 
manager or management services, $15,000 for management support 
services, $1,000 for a financial audit, $1,000 for staff travel, $2,500 
for Committee travel, $10,000 for research projects, $12,000 for 
promotion projects, $3,000 for compliance, $6,000 for Perishable 
Agricultural Commodities Act expenses, and $9,500 for a miscellaneous 
fund for contingency and reserve.
    The Committee also unanimously recommended an assessment rate of 
$0.12 per 50 pound bag or equivalent. This rate when applied to 
anticipated onion shipments of 600,000 bags will yield $72,000 in 
assessment income, which will be adequate to cover budgeted expenses.
    While this action 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 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 June 1, 1995, 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 (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 956

    Marketing agreements, Onions, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 956 is 
amended as follows:

PART 956--SWEET ONIONS GROWN IN THE WALLA WALLA VALLEY OF SOUTHEAST 
WASHINGTON AND NORTHEAST OREGON

    1. The authority citation for 7 CFR part 956 continues to read as 
follows:

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

    2. A new Sec. 956.201 is added to read as follows:

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


Sec. 956.201  Expenses and assessment rate.

    Expenses of $72,000 by the Walla Walla Sweet Onion Committee are 
authorized, and an assessment rate of $0.12 per 50 pound bag or 
equivalent of assessable onions is established for the fiscal period 
ending May 31, 1996. Unexpended funds may be carried over as a reserve.

    Dated: June 28, 1995.
Sharon Bomer Lauritsen,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 95-16409 Filed 7-3-95; 8:45 am]
BILLING CODE 3410-02-P