[Federal Register Volume 64, Number 171 (Friday, September 3, 1999)]
[Rules and Regulations]
[Pages 48243-48245]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-23012]



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 Rules and Regulations
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  Federal Register / Vol. 64, No. 171 / Friday, September 3, 1999 / 
Rules and Regulations  

[[Page 48243]]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 955

[Docket No. FV99-955-1 IFR]


Vidalia Onions Grown in Georgia; Fiscal Period Change

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: This rule changes the fiscal period under the Vidalia onion 
marketing order (order) to January 1-December 31 from September 16-
September 15. It also extends the current fiscal period which began 
September 16, 1998, through December 31, 1999. The order is 
administered locally by the Vidalia Onion Committee (Committee), which 
recommends its program expenses on a fiscal period basis. An assessment 
rate, levied on fresh Vidalia onion shipments, is established to pay 
those expenses. When the current fiscal period was established, it 
coincided with the Vidalia onion marketing season which ran from April 
through June. Due largely to the use of Controlled Atmosphere (CA) 
storage, Vidalia onions are now shipped through the fall. This action 
will make the fiscal period consistent with the current marketing 
season.

DATES: Effective September 7, 1999; comments received by November 2, 
1999 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 to the Docket Clerk, Fruit 
and Vegetable Programs, AMS, USDA, room 2525-S, PO Box 96456, 
Washington, DC 20090-6456; Fax: (202) 720-5698; or E-mail: 
[email protected]. All comments should reference the docket 
number and 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: William G. Pimental, Southeast 
Marketing Field Office, F&V, AMS, USDA, PO Box 2276, Winter Haven, FL 
33883-2276; telephone: (941) 299-4770, Fax: (941) 299-5169; or George 
Kelhart, Technical Advisor, Marketing Order Administration Branch, 
Fruit and Vegetable Programs, AMS, USDA, room 2525-S, PO Box 96456, 
Washington, DC 20090-6456; telephone: (202) 720-2491, Fax: (202) 720-
5698.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing 
Agreement and Order No. 955 (7 CFR part 955) regulating the handling of 
Vidalia onions grown in Georgia, 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. This rule is not intended to have retroactive effect. 
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. A 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 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.
    Section 955.40 of the order provides authority for the Committee to 
incur expenses that are reasonable and necessary to operate the 
program. The order also provides that these expenses be paid by 
assessments levied on fresh shipments of Vidalia onions. The Committee 
prepares an annual budget of expenses on a fiscal year basis. Section 
955.13 of the order defines ``fiscal period'' to mean September 16 
through September 15 of the following year, or such other period that 
may be recommended by the Committee and approved by the Secretary.
    This rule changes the fiscal period to January 1 through December 
31, making it consistent with the current Vidalia onion marketing 
season. It also extends the 1998-99 fiscal period, currently September 
16, 1998 through September 15, 1999, through December 31, 1999. These 
changes were unanimously recommended by the Committee at its November 
19, 1998, meeting.
    When the order was first issued in 1989, the harvesting and 
marketing season for Vidalia onions ran from April through June. The 
September 16 through September 15 fiscal period thus covered the entire 
marketing season and was appropriate for budget planning purposes. Over 
the past decade, changes in the industry have extended the marketing 
season. In particular, the adoption of Controlled Atmosphere (CA) 
storage by three-fourths of the handlers has allowed them to 
economically store Vidalia onions through December. While there are 
some added storage costs and losses due to shrinkage, these costs are 
more than offset by prices received for Vidalia onions during the 
holiday season (November and December).
    The Committee's current annual budget is $373,577, and the 
assessment rate is set at 7 cents per 50-pound bag. Major expenses 
include $131,600 for marketing and promotion, $75,000 for research, 
$135,127 for administrative expenses, and $31,850 for compliance. It is 
appropriate that the Committee plan and finance its activities 
consistent with the Vidalia onion marketing season.
    The Committee will begin operating under the revised fiscal period 
on January 1, 2000. Therefore, this rule also extends the current 
fiscal period

[[Page 48244]]

through December 31, 1999. This will provide for continuous operation 
of the program. The Committee will revise its current budget of 
expenses to cover the 3\1/2\ months being added to the current fiscal 
period.
    The fiscal period change is designed to improve the functioning and 
operation of the program. The majority of handlers maintain their 
business records on a calendar year basis. Therefore, this rule will 
better reflect current industry practices.
    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA), the Agricultural Marketing Service (AMS) has considered the 
economic impact of this action on small entities. Accordingly, AMS has 
prepared this initial regulatory flexibility analysis.
    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 86 handlers of Vidalia onions who are 
subject to regulation under the order and approximately 133 Vidalia 
onion producers in the regulated area. Small agricultural service firms 
have been defined by the Small Business Administration (SBA) (13 CFR 
121.601) as those having annual receipts of less than $5,000,000, and 
small agricultural producers are defined as those having annual 
receipts of less than $500,000.
    During the 1996-97 fiscal year, about 14 percent of the handlers 
shipped about 2,771,000 50-pound bags of Vidalia onions, for an average 
of about 197,930 bags. The remaining 86 percent of the handlers shipped 
about 1,262,940 bags, for an average of about 14,685 bags. Using an 
average f.o.b. price of $12.80 per bag, the majority of handlers could 
be considered small businesses under SBA's definition. Likewise, the 
majority of Vidalia onion growers may be classified as small 
businesses.
    Section 955.40 of the order provides authority for the Committee to 
incur expenses that are reasonable and necessary to operate the 
program. The order also provides that these expenses be paid by 
assessments levied on fresh shipments of Vidalia onions. The Committee 
prepares an annual budget of expenses on a fiscal year basis. Section 
955.13 of the order defines ``fiscal period'' to mean September 16 
through September 15 of the following year, or such other period that 
may be recommended by the Committee and approved by the Secretary.
    This rule changes the fiscal period to January 1 through December 
31, making it consistent with the current Vidalia onion marketing 
season. It also extends the 1998-99 fiscal period, currently September 
16, 1998, through September 15, 1999, through December 31, 1999. These 
changes were unanimously recommended by the Committee at its November 
19, 1998, meeting.
    When the order was first issued in 1989, the harvesting and 
marketing season for Vidalia onions ran from April through June. The 
September 16 through September 15 fiscal period thus covered the entire 
marketing season and was appropriate for budget and planning purposes. 
Over the past decade, changes in the industry have extended the 
marketing season. In particular, the adoption of Controlled Atmosphere 
(CA) storage by three-fourths of the handlers has allowed them to 
economically store Vidalia onions through December. While there are 
some added storage costs and losses due to shrinkage, these costs are 
more than offset by prices received for Vidalia onions during the 
holiday season (November and December).
    The Committee's current annual budget is $373,577, and the 
assessment rate is set at 7 cents per 50-pound bag. Major expenses 
include $131,600 for marketing and promotion, $75,000 for research, 
$135,127 for administrative expenses, and $31,850 for compliance. It is 
appropriate that the Committee plan and finance its activities 
consistent with the Vidalia onion marketing season.
    The Committee will begin operating under the revised fiscal period 
on January 1, 2000. Therefore, this rule also extends the current 
fiscal period through December 31, 1999. This will provide for 
continuous operation of the program. The Committee will revise its 
current budget of expenses to cover the 3\1/2\ months being added to 
the current fiscal period.
    This rule is a change to Committee operations which would not 
impose any new requirements on Vidalia onion handlers. It could, on the 
other hand, simplify handler operations by putting the program fiscal 
period on the same basis as handlers' internal reporting and 
recordkeeping procedures.
    The Committee discussed the alternative of leaving the fiscal 
period as it presently exists, but unanimously concluded that this 
change would improve program operations.
    This rule will not impose any additional reporting or recordkeeping 
requirements on either small or large Vidalia onion handlers. As with 
all Federal marketing order programs, reports and forms are 
periodically reviewed to reduce information requirements and 
duplication by industry and public sectors. In addition, the Department 
has not identified any relevant Federal rules that duplicate, overlap 
or conflict with this rule.
    Further, the Committee's meeting was widely publicized throughout 
the Vidalia onion industry and all interested persons were invited to 
attend the meeting and participate in Committee deliberations. Like all 
Committee meetings, the November 19, 1998, meeting was a public meeting 
and all entities, both large and small, were able to express their 
views on this issue. The Committee itself is composed of nine members: 
eight producers and one public member.
    Finally, interested persons are invited to submit information on 
the regulatory and informational impacts of this action on small 
businesses.
    Small businesses may request information on compliance with this 
regulation, or obtain a guide on complying with fruit, vegetable, and 
specialty crop marketing agreements and orders by contacting Jay 
Guerber, Marketing Order Administration Branch, Fruit and Vegetable 
Programs, AMS, USDA, room 2525-S, PO Box 96456, Washington, DC 20090-
6456; telephone: (202) 720-2491, Fax: (202) 720-5698, or E-mail: 
Jay.G[email protected]. You may view the marketing agreement and order 
small business compliance guide at the following web site: http://
www.ams.usda.gov/fv/moab.html.
    This rule invites comments on these changes to the fiscal period 
currently prescribed under the order. Any comments received will be 
considered prior to finalization of this rule.
    After consideration of all relevant material presented, including 
the Committee's recommendation, and other information, it is 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 1998-99 fiscal period ends on September 15, 1999, and 
this action is needed to be taken as soon as possible to assure 
continuity in

[[Page 48245]]

Committee operations; (2) handlers are aware of this action which was 
unanimously recommended by the Committee at a public meeting; and (3) 
this interim final rule provides a 60-day comment period, and all 
comments timely received will be considered prior to finalization of 
this rule.

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 
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. A new Subpart--Rules and Regulations is added preceding 
Sec. 955.101 to read as follows:

Subpart--Rules and Regulations

    3. A new Sec. 955.113 is added to read as follows:


Sec. 955.113  Fiscal period.

    Pursuant to Sec. 955.13, fiscal period shall mean the period 
beginning January 1 and ending December 31 of each year, except that 
the fiscal period that began on September 16, 1998, shall end on 
December 31, 1999.

    Dated: August 30, 1999.
Robert C. Keeney
Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 99-23012 Filed 9-2-99; 8:45 am]
BILLING CODE 3410-02-P