[Federal Register Volume 64, Number 247 (Monday, December 27, 1999)]
[Rules and Regulations]
[Pages 72267-72269]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-33509]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 955

[Docket No. FV00-955 2 IFR]


Vidalia Onions Grown in Georgia; Changing the Term of Office and 
Nomination Deadlines

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: This rule changes the term of office for the Vidalia Onion 
Committee (Committee), and the time for conducting and submitting 
Committee nominations under the Vidalia onion marketing order. The 
marketing order regulates the handling of Vidalia onions grown in 
Georgia and is administered locally by the Committee. This rule changes 
the term of office from a 24-month period beginning September 16 and 
ending September 15, to a 24-month period beginning January 1 and 
ending December 31. It also changes the month for conducting and 
submitting Committee producer nominations from August to October of 
each year, and for the public member and alternate member from November 
1 to February 15. These changes are expected to improve Committee and 
program operations.

DATES: Effective January 1, 2000; comments received by January 26, 2000 
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, P.O. Box 2276, Winter Haven, FL 
33883-2276; telephone: (863) 299-4770, Fax: (863) 299-5169; or George 
Kelhart, Technical Advisor, Marketing Order Administration Branch, 
Fruit and Vegetable Programs, AMS, USDA, room 2525-S, P.O. Box 96456, 
Washington, DC 20090-6456; telephone: (202) 720-2491, Fax: (202) 720-
5698.
    Small businesses may request information on complying with this 
regulation by contacting Jay Guerber, Marketing Order Administration 
Branch, Fruit and Vegetable Programs, AMS, USDA, PO Box 96456, room 
2525-S, Washington, DC 20090-6456; telephone (202) 720-2491, Fax: (202) 
720-5698, or E-mail: Jay.G[email protected].

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 955.21 of the order provides that the term of office for 
Committee members and alternates begins on September 16, or such other 
period as the Committee may recommend and the Secretary approves. In 
addition, Sec. 955.22 provides that the Committee shall hold or cause 
to be held not later than August 1 of each year, or such other date as 
may be specified by the Secretary, a meeting or meetings of growers for 
the purpose of designating one nominee for each position as member and 
for each position as alternate member of the Committee which is vacant, 
or which is about to become vacant. Nominations for members and 
alternates are required to be supplied to the Secretary in such manner 
and form as the Secretary may prescribe, not later than August 15 of 
each year, or by such date as may be specified by the Secretary. That 
section further provides that the producer members shall nominate the 
public member and alternate member at the first meeting following the 
selection of members for a new term of office. The members and 
alternates serve two-year terms of office and approximately one-half of 
the total Committee membership is nominated and selected each year.

[[Page 72268]]

Nominations for the public member and alternate member are required to 
be supplied to the Secretary in such manner and form as the Secretary 
may prescribe, not later than November 1, or such other date as may be 
specified by the Secretary.
    An interim final rule was published in the Federal Register on 
September 3, 1999 (64 FR 48243), which changed the fiscal period 
established under the order to a calendar year basis (January 1-
December 31) from September 16-September 15 to more closely coincide 
with the Vidalia onion marketing season. That interim final rule has 
been adopted, without change, in a final rule published in this issue 
of the Federal Register. The new fiscal is specified in Sec. 955.113.
    Over the past decade, technological changes in the industry, 
including the adoption of Controlled Atmosphere (CA) storage of Vidalia 
onions by three-fourths of the industry handlers, have extended the 
harvesting and marketing season from April through June to an almost 
year-round basis. While there are some added storage costs and losses 
due to shrinkage with CA storage, these costs are more than offset by 
prices received for Vidalia onions during the holiday season (November 
and December).
    On September 30, 1999, the Committee unanimously recommended that 
the term of office continue to be established on the same basis as the 
fiscal period. This rule changes the term of office from a 24-month 
period beginning September 16 and ending September 15, to a 24-month 
period beginning January 1 and ending December 31. The new fiscal 
period is established in new Sec. 955.121. Also, for the eight members 
and alternates whose terms of office were scheduled to end on September 
15, 1999, their terms of office will continue through December 31, 
1999, or until qualified successors are selected. Nominations for those 
expiring positions already have been submitted to the Department under 
existing regulations.
    The Committee also recommended changes in the times for conducting 
and submitting Committee producer member and alternate member 
nominations to maintain the same approximate nomination deadlines as 
provided currently. The dates will be changed from August 1 and August 
15 to October 1 and October 15, respectively, and are specified in new 
Sec. 955.122. The deadline for submitting nominations to the Secretary 
for the public member and alternate will be changed from November 1 to 
February 15 to provide the same amount of time for submitting 
nominations as currently provided after the newly selected Committee's 
first meeting sometime after January 1. These changes are expected to 
improve Committee and program operations.
    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 133 producers of Vidalia onions in the 
production area and approximately 86 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 less than $500,000, and small agricultural 
service firms are defined as those whose annual receipts are less than 
$5,000,000.
    Based on the Georgia Agricultural Statistical Service and committee 
data, the average price for fresh Vidalia Onions during the 1998-99 
season was $15.45 per 50-pound bag, or equivalent and shipments totaled 
3,617,017 bags. Many Vidalia onion handlers ship other vegetable 
products which are not included in the committee data, but would 
contribute further to handler receipts.
    Using the average price, about 97.4 percent of Vidalia Onion 
handlers could be considered small businesses under the SBA definition. 
The majority of Vidalia Onion producers and handlers may be classified 
as small entities.
    This rule adds Sec. 955.121 to change the two-year term of office 
to January 1-December 31 from September 16-September 15 to keep the 
term of office on a fiscal year basis. It also adds Sec. 955.122 to 
modify the deadlines when nominations are to be held and reports of the 
nominations are to be made to the Secretary. The new deadlines provide 
the same amount of time for conducting and submitting nominations for 
producer members and alternates and for the public member and alternate 
as are provided currently. For producer member and alternate members, 
the time for conducting nominations will be changed from August 1 to 
October 1, and the time for submitting the nominations to Secretary 
will be changed from August 15 to October 15. The time for submitting 
the public member and alternate public member nominations will be 
changed from November 1 to February 15 for a new term of office. Also, 
for the eight Committee members and alternates whose terms of office 
were scheduled to end on September 15, 1999, their terms of office will 
continue through December 31, 1999, or until qualified successors are 
selected.
    The changes in the term of office and the nomination deadlines 
should not impose any additional costs on large or small firms in the 
Vidalia onion industry. The changes merely bring the term of office and 
the nomination deadlines into conformity with the recent change in the 
fiscal period which was changed to a calendar year basis (January 1-
December 31) from September 16-September 15.
    The Committee discussed the alternative of leaving the term of 
office and nomination deadlines as they are presently. However, the 
Committee believes that the term of office and nomination deadlines 
should continue to be based on the fiscal period, which now is 
established on a calendar year basis.
    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 September 30, 1999, meeting was a public 
meeting and all entities, both large and small, were able to express 
their views on this issue. Finally, interested persons are invited to 
submit information on the regulatory and informational impacts of this 
action on small businesses.
    A small business guide on complying with fruit, vegetable, and 
specialty crop marketing agreements and orders may be viewed at the 
following website: http://www.ams.usda.gov/fv/moab.html. Any questions 
about the compliance guide should be sent to Jay Guerber at the 
previously mentioned

[[Page 72269]]

address in the FOR FURTHER INFORMATION CONTACT section.
    After consideration of all relevant material presented, including 
the Committee's recommendation, and other information, it is found that 
this interim final rule, as hereinafter set forth, will tend to 
effectuate the declared policy of the Act.
    This rule invites comments on a change to the term of office and 
nomination deadlines currently prescribed under the Vidalia onion 
marketing order. A comment period of 30 days is deemed appropriate 
because January 1, 2000, is the beginning of fiscal period established 
by a separate action and the term of office prescribed by this action 
corresponds with that date. Any comments received will be considered 
prior to finalization of this rule.
    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 change in the term of office is January 1, 2000, to 
correspond with the beginning of the fiscal period recently established 
in a separate action; and (2) a 30-day comment period is provided and 
all comments received will be considered in finalizing this action.

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 Sec. 955.121 is added to read as follows:


Sec. 955.121  Change in term of office.

    Pursuant to Sec. 955.21, the term of office for the Committee shall 
be for two years beginning January 1 and ending December 31, except 
that, the term of office for members and alternates whose terms expired 
on September 15, 1999, shall end on December 31, 1999, or until 
qualified successors are selected.
    3. A new Sec. 955.122 is added to read as follows:


Sec. 955.122  Change in nomination deadlines.

    Pursuant to Sec. 955.22, the Committee shall hold or cause to be 
held not later than October 1 of each year a meeting or meetings of 
growers for the purpose of designating one nominee for each position as 
member and for each position as alternate of the Committee which is 
vacant, or about to become vacant. Such nominations shall be supplied 
to the Secretary in such manner and form as the Secretary may 
prescribe, not later than October 15 of each year. The grower members 
shall nominate the public member and alternate public member at the 
first meeting following the selection of members for a new term of 
office. Nominations for the public member and alternate public member 
shall be supplied to the Secretary in such manner and form as the 
Secretary may prescribe, not later than February 15.

    Dated: December 20, 1999.
James R. Frazier,
Acting Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 99-33509 Filed 12-23-99; 8:45 am]
BILLING CODE 3410-02-P