[Federal Register Volume 62, Number 4 (Tuesday, January 7, 1997)]
[Rules and Regulations]
[Pages 916-918]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-282]


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DEPARTMENT OF AGRICULTURE
7 CFR Part 959

[Docket No. FV96-959-1 IFR]


Onions Grown in South Texas; 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 
South Texas Onion Committee (Committee) under Marketing Order No. 959 
for the 1996-97 and subsequent fiscal periods. The Committee is 
responsible for local administration of the marketing order which 
regulates the handling of onions grown in South Texas. Authorization to 
assess Texas onion handlers enables the Committee to incur expenses 
that are reasonable and necessary to administer the program.

DATES: Effective on August 1, 1996. Comments received by February 6, 
1997, 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 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: Belinda G. Garza, Marketing 
Specialist, McAllen Marketing Field Office, Fruit and Vegetable 
Division, AMS, USDA, 1313 East Hackberry, McAllen, TX 78501, telephone 
210-682-2833, FAX 210-682-5942, 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 202-720-9918; FAX 202-720-5698. 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 202-720-2491; FAX 202-720-5698.

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

[[Page 917]]

Texas, hereinafter referred to as the ``order.'' 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 rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. Under the marketing order now in effect, South Texas 
onion handlers are subject to assessments. It is intended that the 
assessment rate as issued herein will be applicable to all assessable 
onions beginning August 1, 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. 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 action to the scale of 
businesses subject to such action 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 48 producers of South Texas onions in the 
production area and approximately 36 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 South Texas onion producers and handlers 
may be classified as small entities.
    Texas onion producers and handlers may be classified as small 
entities.
    The Texas 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 
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 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, in a telephone vote, unanimously recommended 1996-97 
administrative expenses of $100,000 for personnel, office, and the 
travel portion of the compliance budget. These expenses were approved 
in October 1996. The assessment rate and funding for research and 
promotion projects, and the road guard station maintenance portion of 
the compliance budget were to be recommended at a later Committee 
meeting.
    The Committee subsequently met on November 19, 1996, and 
unanimously recommended 1996-97 expenditures of $448,000 and an 
assessment rate of $0.07 per 50-pound container or equivalent of 
onions. In comparison, last year's budgeted expenditures were $585,250. 
The assessment rate of $0.07 is $0.03 lower than last year's 
established rate. Major expenditures recommended by the Committee for 
the 1996-97 fiscal period include $80,000 for personnel and 
administrative expenses, $120,000 for compliance, $150,000 for 
promotion, and $98,000 for onion breeding research. Budgeted expenses 
for these items in 1995-96 were $96,250, $144,000, $246,000, and 
$99,000, respectively.
    The assessment rate recommended by the Committee was derived by 
dividing anticipated expenses by expected shipments of South Texas 
onions. Onion shipments for the year are estimated at 5 million 50-
pound equivalents, which should provide $350,000 in assessment income. 
Income derived from handler assessments, along with interest income and 
funds from the Committee's authorized reserve, will be adequate to 
cover budgeted expenses. Funds in the reserve will be kept within the 
maximum permitted by the order.
    This action will reduce the assessment obligation imposed on 
handlers. 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 from 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 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

[[Page 918]]

have sufficient funds to pay its expenses which are incurred on a 
continuous basis; (2) the 1996-97 fiscal period began on August 1, 
1996, and the marketing order requires that the rate of assessment for 
each fiscal period apply to all assessable 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 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 continues to read as 
follows:

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

    2. A new subpart titled ``Assessment Rates'' consisting of a new 
Sec. 959.237 and a new subpart heading titled ``Handling Regulations'' 
are added immediately preceding Sec. 959.322, to read as follows:

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

Subpart--Assessment Rates


Sec. 959.237  Assessment rate.

    On and after August 1, 1996, an assessment rate of $0.07 per 50-
pound container or equivalent is established for South Texas onions.

Subpart--Handling Regulations

* * * * *
    Dated: December 31, 1996.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 97-282 Filed 1-6- 97; 8:45 am]
BILLING CODE 3410-02-P