This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

30920

Vol. 65, No. 94

Monday, May 15, 2000

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 958

[Docket No. FV00–958–1 PR]

Onions Grown in Certain Designated

Counties in Idaho, and Malheur

County, Oregon; Decreased

Assessment Rate

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Proposed rule.

SUMMARY: This rule would decrease the

assessment rate established for the

Idaho-Eastern Oregon Onion Committee

(Committee) under Marketing Order No.

958 for the 2000–2001 and subsequent

fiscal periods from $0.09 to $0.08 per

hundredweight of onions handled. The

Committee is responsible for local

administration of the marketing order

which regulates the handling of onions

grown in designated counties in Idaho,

and Malheur County, Oregon.

Authorization to assess Idaho-Eastern

Oregon onion handlers enables the

Committee to incur expenses that are

reasonable and necessary to administer

the program. The fiscal period begins

July 1 and ends June 30. The assessment

rate would remain in effect indefinitely

unless modified, suspended, or

terminated.

DATES: Comments must be received by

June 14, 2000.

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, P.O. Box 96456, Washington,

DC 20090–6456; Fax: (202) 720–5698, or

E-mail: moab.docketclerk@usda.gov.

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:

Robert J. Curry, Northwest Marketing

Field Office, Marketing Order

Administration Branch, Fruit and

Vegetable Programs, AMS, USDA, 1220

SW Third Avenue, room 385, Portland,

Oregon 97204–2807; telephone: (503)

326–2724, Fax: (503) 326–7440; or

George Kelhart, 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, room 2525–S, P.O. Box

96456, Washington, DC 20090–6456;

telephone: (202) 720–2491, Fax: (202)

720–5698, or E-mail:

Jay.Guerber@usda.gov.

SUPPLEMENTARY INFORMATION: This rule

is issued under Marketing Agreement

No. 130 and Marketing Order No. 958,

both as amended (7 CFR part 958),

regulating the handling of onions grown

in certain designated counties in Idaho,

and Malheur County, Oregon,

hereinafter referred to as the ‘‘order.’’

The order is 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 order now in effect,

Idaho-Eastern Oregon onion handlers

are subject to assessments. Funds to

administer the order are derived from

such assessments. It is intended that the

assessment rate proposed herein would

be applicable to all assessable onions

beginning on July 1, 2000, and continue

until amended, suspended, or

terminated. This rule would 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. 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.

This rule would decrease the

assessment rate established for the

Committee for the 2000–2001 and

subsequent fiscal periods from $0.09 per

hundredweight to $0.08 per

hundredweight of onions handled.

The 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 Committee consists of

six producer members, four handler

members and one public member, each

of whom is familiar with the

Committee’s needs and with the costs

for goods and services in their local area

and are thus in a position to formulate

an appropriate budget and assessment

rate. The budget and assessment rate

were discussed at a public meeting and

all directly affected persons had an

opportunity to participate and provide

input.

For the 1998–99 and subsequent fiscal

periods, the Committee recommended,

and the Department approved, an

assessment rate of $0.09 per

hundredweight that would continue in

effect from fiscal period to fiscal period

unless modified, suspended, or

terminated by the Secretary upon

recommendation and information

submitted by the Committee or other

information available to the Secretary.

The Committee met on April 6, 2000,

and unanimously recommended 2000–

2001 expenditures of $1,047,637 and an

assessment rate of $0.08 per

hundredweight of onions handled

during the 2000–2001 and subsequent

fiscal periods. The Committee estimated

that the 2000–2001 onion crop will

approximate 9,600,000 hundredweight

of onions. In comparison, the 1999–

Federal Register / Vol. 65, No. 94 / Monday, May 15, 2000 / Proposed Rules 30921

2000 fiscal period budget was

established at $1,133,785 on an

estimated assessable onion harvest of

9,200,000 hundredweight of onions. The

Committee recommended the decreased

assessment rate to help offset the

negative effects of the currently

depressed onion market.

The Committee anticipates that

assessment income during the 2000–

2001 fiscal period will be approximately

$768,000, which is $60,000 less than the

$828,000 assessment income estimated

for its 1999–2000 budget. The

Committee now projects a total income

of approximately $944,372 and

expenditures of about $1,025,098 by

June 30, 2000. At the time the 1999–

2000 fiscal period budget was

recommended, the Committee had

estimated that it would draw up to

$260,785 from its operating reserve.

However, since current assessment

income is greater than anticipated and

expenditures are less than budgeted, the

operating reserve may actually be

depleted by about $80,726. Thus, the

Committee has estimated that its

operating reserve will be approximately

$859,793 on July 1, 2000, and, if it

requires an estimated $234,637 from its

monetary reserve as budgeted during the

2000–2001 fiscal period, approximately

$625,156 on July 1, 2001. Lower

assessment rates were considered, but

not recommended because they would

not generate the income necessary to

administer the program with an

adequate operating reserve.

The major expenditures

recommended by the Committee for the

2000–2001 fiscal period include

$235,105 for marketing order

administration, which includes salary,

office, travel and Committee expenses,

$58,532 for production research,

$675,000 for market promotion

including paid advertising, $54,000 for

export market development, and

$25,000 for marketing order

contingencies. Budgeted expenses for

these items in the 1999–2000 fiscal

period were $224,685, $69,100,

$750,000, $60,000, and $30,000,

respectively.

The Committee has based its

recommended assessment rate decrease

on the 2000–2001 crop estimate and

fiscal period expenditures estimate, the

current condition of the onion market,

and the current and projected size of its

monetary reserve. The decreased

assessment rate should provide

$768,000 in income, which, when

combined with interest income of

$45,000 and operating reserve funds of

$234,637, would be adequate to cover

budgeted expenses. As noted above, the

Committee estimates it will have

approximately $859,793 in its operating

reserve at the end of the 1999–2000

fiscal period, which should be adequate

to cover any income shortages. This

amount is within the maximum

permitted by the order of approximately

one fiscal period’s expenditures

(§ 958.44).

The proposed assessment rate would

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 would

be in effect for an indefinite period, the

Committee would 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 and are locally published.

Committee meetings are open to the

public and interested persons may

express their views at these meetings.

The Department would evaluate

Committee recommendations and other

available information to determine

whether modification of the assessment

rate is needed. Further rulemaking

would be undertaken as necessary.

Pursuant to requirements set forth in

the Regulatory Flexibility Act (RFA), the

Agricultural Marketing Service (AMS)

has considered the economic impact

this rule would have on small entities.

Accordingly, the 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 34 handlers

of Idaho-Eastern Oregon onions who are

subject to regulation under the order

and approximately 270 onion producers

in the regulated production area. Small

agricultural service firms have been

defined by the Small Business

Administration (13 CFR 121.201) 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.

The majority of Idaho-Eastern Oregon

onion handlers and producers may be

classified as small entities.

This rule would decrease the

assessment rate established for the

Committee and collected from handlers

for the 2000–2001 and subsequent fiscal

periods from $0.09 per hundredweight

to $0.08 per hundredweight of onions

handled. Both the $0.08 assessment rate

and the 2000–2001 budget of $1,047,637

were unanimously recommended by the

Committee at its April 6, 2000, meeting.

The proposed assessment rate is $0.01

lower than the rate currently in effect.

The Committee recommended a

decreased assessment rate to help offset

the negative effects of the currently

depressed onion market. The

anticipated crop of 9,600,000

hundredweight is approximately

400,000 hundredweight larger than the

crop estimate used to establish the

1999–2000 budget. The $0.08 rate

should provide $768,000 in assessment

income, which, when combined with

interest income of $45,000 and $234,637

from the operating reserve, would be

adequate to meet the 2000–2001 fiscal

period’s budgeted expenses.

The Committee reviewed and

unanimously recommended 2000–2001

expenditures of $1,047,637 which

include increases in administrative

expenses, salaries, and committee

expenses, and decreases in production

research, market promotion, export

market development, and contingency

fund expenses. Prior to recommending

this budget, the Committee considered

information from various sources,

including the Idaho-Eastern Oregon

Onion Executive, Research, Promotion

and Export Market Development

Committees. Alternative expenditure

levels were discussed and rejected by

these subcommittees, and ultimately by

the full Committee, based upon the

relative value of various research and

promotion projects to the Idaho-Eastern

Oregon onion industry.

The major expenditures

recommended by the Committee for the

2000–2001 fiscal period include

$235,105 for marketing order

administration, which includes salary,

office, travel and Committee expenses,

$58,532 for production research,

$675,000 for market promotion

including paid advertising, $54,000 for

export market development, and

$25,000 for marketing order

contingencies. Budgeted expenses for

these items in the 1999–2000 fiscal

period were $224,685, $69,100,

$750,000, $60,000, and $30,000,

respectively.

A review of historical information and

preliminary information pertaining to

the upcoming season indicates that the

F.O.B. price for the 2000–2001 onion

season could average $5.50 per

30922 Federal Register / Vol. 65, No. 94 / Monday, May 15, 2000 / Proposed Rules

hundredweight of onions. Therefore, the

estimated assessment revenue for the

2000–2001 fiscal period ($768,000) as a

percentage of the projected total F.O.B.

revenue ($52,800,000) would be 0.0145

percent. This figure indicates that the

$0.08 assessment rate recommended by

the Committee would have a relatively

insignificant impact on the IdahoEastern Oregon onion industry.

This action would decrease the

assessment obligation imposed on

handlers. While assessments impose

some additional costs on handlers, the

costs are minimal and uniform on all

handlers. Some of the additional costs

may be passed on to producers.

However, these costs would be offset by

the benefits derived by the operation of

the order. In addition, the Committee’s

meeting was widely publicized

throughout the Idaho-Eastern Oregon

onion industry and all interested

persons were invited to attend the

meeting and participate in Committee

deliberations on all issues. Like all

Committee meetings, the April 6, 2000,

meeting was a public meeting and all

entities, both large and small, were able

to express views on this issue. Finally,

interested persons are invited to submit

information on the regulatory and

informational impacts of this action on

small businesses.

This proposed rule would impose no

additional reporting or recordkeeping

requirements on either small or large

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

sector agencies.

The Department has not identified

any relevant Federal rules that

duplicate, overlap, or conflict with this

rule.

A small business guide on complying

with fruit, vegetable, and specialty crop

marketing agreements and orders may

be viewed at the following web site:

http://www.ams.usda.gov/fv/

moab.html. Any questions about the

compliance guide should be sent to Jay

Guerber at the previously mentioned

address in the FOR FURTHER INFORMATION

CONTACT section.

A 30-day comment period is provided

to allow interested persons the

opportunity to respond to this request

for information and comments. Thirty

days is deemed appropriate because: (1)

The Committee needs to have sufficient

funds to pay its expenses which are

incurred on a continuous basis; (2) the

2000–2001 fiscal period begins on July

1, 2000, and the order requires that the

rate of assessment for each fiscal period

apply to all assessable onions handled

during such fiscal period; (3) this action

decreases the assessment rate for

assessable onions beginning with the

2000–2001 fiscal period; and (4)

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.

List of Subjects in 7 CFR Part 958

Onions, Marketing agreements,

Reporting and recordkeeping

requirements.

For the reasons set forth in the

preamble, 7 CFR part 958 is proposed to

be amended as follows:

PART 958—ONIONS GROWN IN

CERTAIN DESIGNATED COUNTIES IN

IDAHO, AND MALHEUR COUNTY,

OREGON

1. The authority citation for 7 CFR

part 958 continues to read as follows:

Authority: 7 U.S.C. 601–674.

2. Section 958.240 is revised to read

as follows:

§ 958.240 Assessment rate.

On and after July 1, 2000, an

assessment rate of $0.08 per

hundredweight is established for IdahoEastern Oregon onions.

Dated: May 9, 2000.

Eric M. Forman,

Acting Deputy Administrator, Fruit and

Vegetable Programs.

[FR Doc. 00–12153 Filed 5–12–00; 8:45 am]

BILLING CODE 3410–02–P

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1220

[No. LS–00–04]

Soybean Promotion and Research:

Amend the Order to Adjust

Representation on the United Soybean

Board

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Proposed Rule.

SUMMARY: This proposed rule would

adjust the number of members for

certain States on the United Soybean

Board (Board) to reflect changes in

production levels that have occurred

since the last time the Board was

reapportioned in 1997. These

adjustments are required by the Soybean

Promotion and Research Order (Order).

The results of the adjustments would be

an additional member for Kansas and

one less member for Maryland. As a

result of these changes, the total Board

membership will remain at 62 members.

These changes to the Board would be

effective with the Secretary’s 2001

appointments.

DATES: Written comments must be

received by July 14, 2000.

ADDRESSES: Send two copies of

comments to Ralph L. Tapp, Chief;

Marketing Programs Branch; Livestock

and Seed Program; Agricultural

Marketing Service (AMS), USDA, Room

2627–S; STOP 0251; 1400 Independence

Avenue, SW., Washington, DC 20250–

0251. Comments may also be sent by email to Ralph.Tapp@usda.gov or by fax

to 202/720–1125. State that your

comment refers to Docket No. LS–00–

04. Comments received may be

inspected at this location between 8:00

a.m. and 4:30 p.m., Monday through

Friday, except holidays.

FOR FURTHER INFORMATION CONTACT:

Ralph L. Tapp, Chief, Marketing

Programs Branch, 202/720–1115, fax

202/270–1125, or e-mail

Ralph.Tapp@usda.gov.

SUPPLEMENTARY INFORMATION:

Executive Orders 12866 and 12988, and

Regulatory Flexibility Act and the

Paperwork Reduction Act

The Department of Agriculture

(Department) is issuing this rule in

conformance with Executive Order

12866.

This rule was reviewed under

Executive Order 12988, Civil Justice

Reform. It is not intended to have a

retroactive effect. This rule would not

preempt any State or local laws,

regulations, or policies unless they

present an irreconcilable conflict with

this rule.

The Soybean Promotion, Research,

and Consumer Information Act (Act)

provides that administrative

proceedings must be exhausted before

parties may file suit in court. Under

§ 1971 of the Act, a person subject to the

Order may file a petition with the

Secretary 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 an exemption from the Order. The

petitioner 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 courts of the United States in

any district in which such person is an

inhabitant, or has their principal place

of business, has jurisdiction to review

the Secretary’s ruling on the petition, if

a complaint for this purpose is filed