10420 Federal Register / Vol. 62, No. 45 / Friday, March 7, 1997 / Rules and Regulations

cover budgeted expenses. Funds in the

reserve will be kept within the

maximum permitted by the order.

An interim final rule regarding this

action was published January 17, 1997,

issue of the Federal Register (62 FR

2547). That rule provided for a 30-day

comment period. No comments were

received.

While this rule will impose 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 by 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.

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 year 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 1997 budget and those for

subsequent fiscal years 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 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

have sufficient funds to pay its expenses

which are incurred on a continuous

basis; (2) the 1997 fiscal year began on

January 1, 1997, and the marketing

order requires that the rate of

assessment for each fiscal year apply to

all assessable table grapes handled

during such fiscal year;

(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) an

interim final rule was published on this

action and provided a 30-day comment

period, no comments were received.

List of Subjects in 7 CFR Part 925

Grapes, Marketing agreements,

Reporting and recordkeeping

requirements.

For the reasons set forth in the

preamble, 7 CFR part 925 is amended as

follows:

PART 925—GRAPES GROWN IN A

DESIGNATED AREA OF

SOUTHEASTERN CALIFORNIA

Accordingly, the interim final rule

amending 7 CFR part 925 which was

published at 62 FR 2547 on January 17,

1997, is adopted as a final rule without

change.

Dated: March 3, 1997.

Robert C. Keeney,

Director, Fruit and Vegetable Division.

[FR Doc. 97–5589 Filed 3–6–97; 8:45 am]

BILLING CODE 3410–02–P

7 CFR Part 959

[Docket No. FV96–959–1 FIR]

Onions Grown in South Texas;

Assessment Rate

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Final rule.

SUMMARY: The Department of

Agriculture (Department) is adopting as

a final rule, without change, the

provisions of an interim final rule

establishing 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.

EFFECTIVE DATE: August 1, 1996.

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

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 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
Federal Register / Vol. 62, No. 45 / Friday, March 7, 1997 / Rules and Regulations 10421

Agricultural Marketing Service (AMS)

has considered the economic impact of

this rule on small entities.

The purpose of the RFA is to fit

regulatory actions to the scale of

businesses 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 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.

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.

An interim final rule regarding this

action was published in the January 7,

1997, issue of the Federal Register (62

FR 916). That rule provided for a 30-day

comment period. No comments were

received.

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.

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. 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 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

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) an interim

final rule was published on this action

and provided for a 30-day comment

period; no comments were received.

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

Accordingly, the interim final rule

amending 7 CFR part 959 which was

published at 62 FR 916 on January 7,

1997, is adopted as a final rule without

change.

Dated: March 3, 1997.

Robert C. Keeney,

Director, Fruit and Vegetable Division.

[FR Doc. 97–5591 Filed 3–6–97; 8:45 am]

BILLING CODE 3410–02–P