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

27919 

Vol. 76, No. 93 

Friday, May 13, 2011 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 955 

[Doc. No. AMS–FV–11–0016; FV11–955–1 

PR] 

Vidalia Onions Grown in Georgia; 

Change in Late Payment and Interest 

Requirements on Past Due 

Assessments 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Proposed rule. 

SUMMARY: This proposed rule invites 

comments on changes to the delinquent 

assessment requirements in effect under 

the marketing order for Vidalia onions 

grown in Georgia (order). The order 

regulates the handling of Vidalia onions 

grown in Georgia and is administered 

locally by the Vidalia Onion Committee 

(Committee). This rule would establish 

a late payment charge of 10 percent on 

unpaid assessments that are 10 days 

past due and would increase the interest 

rate applied to delinquent assessments 

from 1 percent to 1.5 percent per month. 

This action would improve handler 

compliance with the assessment and 

reporting provisions of the order and 

would help reduce the Committee’s 

collection expenditures. 

DATES: Comments must be received by 

May 31, 2011. 

ADDRESSES: Interested persons are 

invited to submit written comments 

concerning this proposal. Comments 

must be sent to the Docket Clerk, 

Marketing Order Administration 

Branch, Fruit and Vegetable Programs, 

AMS, USDA, 1400 Independence 

Avenue, SW., STOP 0237, Washington, 

DC 20250–0237; Fax: (202) 720–8938; or 

Internet: http://www.regulations.gov. All 

comments should reference the 

document 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, or can be viewed at: http:// 

www.regulations.gov. All comments 

submitted in response to this rule will 

be included in the record and will be 

made available to the public. Please be 

advised that the identity of the 

individuals or entities submitting the 

comments will be made public on the 

Internet at the address provided above. 

FOR FURTHER INFORMATION CONTACT: 

Jennie M. Varela, Marketing Specialist, 

or Christian D. Nissen, Regional 

Manager, Southeast Marketing Field 

Office, Marketing Order Administration 

Branch, Fruit and Vegetable Programs, 

AMS, USDA; Telephone: (863) 324– 

3375, Fax: (863) 325–8793, or E-mail: 

Jennie.Varela@ams.usda.gov or 

Christian.Nissen@ams.usda.gov. 

Small businesses may request 

information on complying with this 

regulation by contacting Laurel May, 

Marketing Order Administration 

Branch, Fruit and Vegetable Programs, 

AMS, USDA, 1400 Independence 

Avenue, SW., STOP 0237, Washington, 

DC 20250–0237; Telephone: (202) 720– 

2491, Fax: (202) 720–8938, or E-mail: 

Laurel.May@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: This 

proposal is issued under Marketing 

Agreement and Order No. 955, both as 

amended (7 CFR part 955), regulating 

the handling of Vidalia onions grown in 

Georgia, 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 

(USDA) is issuing this rule in 

conformance with Executive Order 

12866. 

This proposal has been reviewed 

under Executive Order 12988, Civil 

Justice Reform. This rule is not intended 

to have retroactive effect. 

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 USDA 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, USDA 

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 USDA’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 proposal invites comments on 

changes to the delinquent assessment 

requirements in effect under the order. 

This rule would establish a late 

payment charge of 10 percent on unpaid 

assessments that are 10 days past due 

and would increase the interest rate 

applied to delinquent assessments from 

1 percent to 1.5 percent per month. The 

change was recommended unanimously 

by the Committee at a meeting on 

February 17, 2011. 

Section 955.42 of the order provides 

authority for imposition of a late charge 

or interest rate or both on delinquent 

assessments. Section 955.142 of the 

order’s rules and regulations prescribes 

the requirements for delinquent 

assessments. Section 955.142 currently 

specifies that each handler pay an 

interest charge of 1 percent per month 

on any unpaid assessments and accrued 

unpaid interest beginning the day after 

the assessments are due. This rule 

would modify § 955.142 to include a 

10 percent late charge on delinquent 

assessments that are 10 days past due 

and increase the interest rate on 

delinquent assessments to 1.5 percent 

per month. 

The order requires handlers to pay to 

the Committee a pro rata assessment on 

the volume of onions handled. The 

volume of onions handled is based on 

a monthly shipping report handlers are 

required to submit to the Committee. 

The monthly shipping report and its 

associated assessments are due in the 

Committee office by the fifth day of the 

month following the month in which 

the shipments were made, unless the 

fifth day falls on a weekend or holiday, 

and then the due date is the first prior 

business day. 

At the Committee’s January 20, 2011, 

meeting, Committee staff indicated that 

some handlers have been late in 

reporting shipments and paying the 

associated assessments, and that this 

has been an ongoing problem for the last 

few seasons. The handlers eventually 

comply with the order requirements, but 

late payments deprive the Committee of 

expected operating income and increase 

Committee costs. 

WReier-Aviles on DSKGBLS3C1PROD with PROPOSALS

27920 Federal Register / Vol. 76, No. 93 / Friday, May 13, 2011 / Proposed Rules 

Vidalia onions are typically shipped 

from late April through August of each 

year. This creates a compressed window 

in which the Committee collects the 

funds it uses throughout the year for its 

operating expenses. In addition, the 

Committee spends the majority of funds 

allocated to promotion during the 

shipping season. With promotional 

expenses accounting for more than 50 

percent of the Committee’s total budget, 

timely payment of assessments is 

necessary for the Committee to have 

funds available to cover expenditures. 

When several handlers are late in 

paying assessments, the Committee can 

lack the operating funds required. If 

sufficient operating funds are not 

available, the Committee has to borrow 

money, increasing operating costs. 

Further, there are costs associated 

with trying to collect the delinquent 

assessments. Some handlers require 

numerous contacts from Committee staff 

by mail and telephone, with others 

requiring on-site visits from the 

Committee’s compliance officer. 

Throughout a season, these collection 

activities expend time and resources. 

In addition to the costs associated 

with unpaid assessments, the failure of 

handlers to report on time is also a 

problem for the Committee. The 

monthly shipping report serves several 

functions, including providing volume 

information on which handler 

assessments are based. Without 

complete shipping information, the 

Committee is unable to provide timely 

and accurate market information to the 

industry. Also, monthly reports play an 

important role in terms of order 

compliance. 

In an effort to address this problem, 

the Committee staff has provided 

additional information to handlers on 

when reports and assessments are due 

and on the importance of timely 

submission. They have also increased 

the number of reminder calls made to 

handlers when submissions are late, and 

visits have been made to delinquent 

handler facilities to collect late reports 

and payments. However, these efforts 

have not been successful in resolving 

this concern. 

In its discussion of this issue, the 

Committee agreed the current interest 

rate applied to unpaid assessments does 

not provide sufficient incentive for 

handlers to turn in monthly reports and 

their associated assessments on time. As 

it stands, the rate is low enough that 

some handlers view the interest rate as 

a cost of doing business, and only 

submit reports and assessments after 

numerous contacts from the Committee 

staff. 

Committee members wanted to find a 

solution that would encourage handlers 

to submit their reports and payments as 

required. Initially, at its January 

meeting, the Committee favored 

changing the way the interest rate was 

compounded and calculated as a way to 

address the problem. However, it was 

determined that such a change could 

exceed what USDA would consider 

reasonable and customary under 

marketing order programs. At its 

meeting in February, the Committee 

reviewed different scenarios imposed by 

other marketing orders to address this 

issue. Several other marketing orders 

utilize late payment charges to 

encourage compliance, and while that 

authority is available under the order for 

Vidalia onions, it had never been 

utilized. As such, the Committee 

decided to impose a late payment 

charge, as well as increasing the 

monthly interest rate. 

Committee members agreed that 

establishing a 10 percent late charge on 

late assessments would help provide 

some additional incentive for handlers 

to submit their reports and assessments 

on time. The Committee also discussed 

what would be an appropriate grace 

period to set before the late penalty was 

applied. Recognizing the importance of 

the timely receipt of reports and 

payments, the Committee did not want 

to set an overly long grace period. The 

Committee agreed that 10 days would 

provide a sufficient buffer for those who 

may mistakenly miss a due date, while 

still supporting timely reports and 

payments. 

As an added incentive to report and 

pay on time, the Committee also 

believed the monthly interest charge on 

delinquent assessments should also be 

increased. Consequently, the Committee 

unanimously recommended imposing a 

late payment charge of 10 percent on 

any assessments paid 10 days after the 

date the shipping report and 

assessments are due and increasing the 

interest rate applied to unpaid 

assessments by .5 percent to 1.5 percent 

per month. 

Initial Regulatory Flexibility Analysis 

Pursuant to requirements set forth in 

the Regulatory Flexibility Act (RFA) 

(5 U.S.C. 601–612), 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 rules issued thereunder, are 

unique in that they are brought about 

through group action of essentially 

small entities acting on their own 

behalf. 

There are approximately 50 handlers 

of Vidalia onions subject to regulation 

under the order and around 80 

producers in the designated production 

area. Small agricultural service firms are 

defined by the Small Business 

Administration (SBA) as those whose 

annual receipts are less than $7,000,000, 

and small agricultural producers are 

defined as those whose annual receipts 

are less than $750,000 (13 CFR 121.201). 

Based on National Agricultural 

Statistical Service and Committee data, 

the average annual grower price for 

fresh Vidalia onions during the 2010 

season was around $20 per 40-pound 

container, and total Vidalia onion 

shipments were around 4,503,000 40- 

pound containers. Using available data, 

more than 90 percent of Vidalia onion 

handlers have annual receipts less than 

$7,000,000. However, the average 

receipts for Vidalia producers were 

around $1,118,970 in 2010, which is 

higher than the SBA threshold for small 

producers. Assuming a normal 

distribution, the majority of handlers of 

Vidalia onions may be classified as 

small entities, while the majority of 

producers may be classified as large 

entities, according to the SBA 

definition. 

This action would establish a late 

payment charge of 10 percent on unpaid 

assessments that are 10 days past due 

and would increase the interest rate 

applied to delinquent assessments from 

1 percent to 1.5 percent per month. This 

change is expected to motivate handlers 

to submit shipping reports and 

assessments on time. This change would 

also help lower or offset the 

Committee’s compliance expenditures 

associated with delinquent reports and 

assessments. The authority for this 

action is provided in § 955.42 of the 

order. This change would amend 

§ 955.142. The Committee unanimously 

recommended this action at its February 

17, 2011, meeting. 

The proposed rule would not impose 

any additional costs on handlers that are 

complying with the requirements under 

the order. This action would only 

represent additional costs for handlers 

who are delinquent in submitting their 

reports and assessments. A 10 day grace 

period would also be provided before 

the late penalty would be applied, 

giving delinquent handlers additional 

time to avoid the costs associated with 

the late payment charge. 

WReier-Aviles on DSKGBLS3C1PROD with PROPOSALS

Federal Register / Vol. 76, No. 93 / Friday, May 13, 2011 / Proposed Rules 27921 

In addition, the recommended late 

charge and interest rate were considered 

reasonable by industry members who 

participated in the discussion of this 

issue. Since the proposed late payment 

charge and interest rate are percentages 

of amounts due, the costs, when 

applicable, are proportionate and would 

not place an extra burden on small 

entities as compared to large entities. In 

addition, the industry overall would 

benefit if handler reports and 

assessments were collected on time and 

the Committee’s compliance costs were 

reduced regardless of entity size. 

The Committee discussed alternatives 

to this change, including not making a 

change to the delinquent assessment 

requirements. However, a number of 

members commented that if some 

handlers were not paying on time, a 

change was necessary. The Committee 

also considered increasing the interest 

rate accrual to daily rather than 

monthly, but this option could result in 

an interest charge that was 

disproportionately large and was 

considered to be beyond the scope of 

what is reasonable and customary under 

marketing order programs. Thus, these 

alternatives were rejected. 

The proposed action would 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 

sector agencies. 

AMS is committed to complying with 

the E–Government Act, to promote the 

use of the Internet and other 

information technologies to provide 

increased opportunities for citizen 

access to Government information and 

services, and for other purposes. 

USDA has not identified any relevant 

Federal rules that duplicate, overlap or 

conflict with this proposed rule. 

In addition, 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 on all issues. 

Like all Committee meetings, the 

February 17, 2011, 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 comments on this 

proposed rule, including 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: http://www.ams.usda.gov/ 

MarketingOrdersSmallBusinessGuide. 

Any questions about the compliance 

guide should be sent to Laurel May at 

the previously mentioned address in the 

FOR FURTHER INFORMATION CONTACT

section. 

A 15-day comment period is provided 

to allow interested persons to respond 

to this proposal. Fifteen days is deemed 

appropriate because this rule would 

need to be in place as soon as possible 

as the Committee’s fiscal period began 

in January 2011 and handlers began 

shipping onions in April. Further, 

handlers are aware of the action, which 

was unanimously recommended by the 

Committee at a public meeting on 

February 17, 2011. All written 

comments timely received will be 

considered before a final determination 

is made on this matter. 

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 proposed to 

be 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. Section 955.142 is amended by 

designating the first paragraph as (a) and 

the second, (b), and revising newly 

designated paragraph (b) to read as 

follows: 

§ 955.142 Delinquent assessments. 

* * * * * 

(b) Each handler shall pay interest of 

1.5 percent per month on any 

assessments levied pursuant to § 955.42 

and on any accrued unpaid interest 

beginning the day immediately after the 

date the monthly assessments were due, 

until the delinquent handler’s 

assessments, plus applicable interest, 

have been paid in full. In addition to the 

interest charge, the Committee shall 

impose a late payment charge on any 

handler whose assessment payment has 

not been received within 10 days of the 

due date. The late payment charge shall 

be 10 percent of the late assessments. 

Dated: May 9, 2011. 

Ellen King, 

Acting Administrator, Agricultural Marketing 

Service. 

[FR Doc. 2011–11711 Filed 5–12–11; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 989 

[Docket No. AMS–FV–11–0013; FV11–989– 

1 PR] 

Raisins Produced From Grapes Grown 

in California; Increase in Desirable 

Carryout Used To Compute Trade 

Demand 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Proposed rule. 

SUMMARY: This rule would increase the 

desirable carryout used to compute the 

yearly trade demand for Natural (sundried) Seedless (NS) raisins covered 

under the Federal marketing order for 

California raisins (order). The order 

regulates the handling of raisins 

produced from grapes grown in 

California and is administered locally 

by the Raisin Administrative Committee 

(committee). This rule would increase 

the amount of tonnage available early in 

the season when volume regulation is 

implemented, and is expected to help 

the industry meet its market needs. 

DATES: Comments must be received by 

June 13, 2011. 

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, 1400 

Independence Avenue, SW., STOP 

0237, Washington, DC 20250–0237; Fax: 

(202) 720–8938; or Internet: http:// 

www.regulations.gov. All comments 

submitted in response to this rule will 

be included in the record and will be 

made available to the public. Please be 

advised that the identity of the 

individuals or entities submitting the 

comments will be made public on the 

Internet at the address provided above. 

FOR FURTHER INFORMATION CONTACT: 

Terry Vawter, Senior Marketing 

Specialist, or Kurt J. Kimmel, Regional 

Manager, California Marketing Field 

Office, Fruit and Vegetable Programs, 

AMS, USDA, 2202 Monterey Street, 

Suite 102B, Fresno, California 93721; 

Telephone: (559) 487–5901, Fax: (559) 

487–5906; or E-mail: 

Terry.Vawter@ams.usda.gov or 

Kurt.Kimmel@ams.usda.gov. 

Small businesses may request 

information on complying with this 

regulation by contacting Laurel May, 

Marketing Order Administration 

Branch, Fruit and Vegetable Programs, 

AMS, USDA, 1400 Independence 

Avenue, SW., STOP 0237, Washington, 

WReier-Aviles on DSKGBLS3C1PROD with PROPOSALS