This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

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new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

29089

Vol. 63, No. 102

Thursday, May 28, 1998

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 956

[Docket No. FV98–956–2 FR]

Sweet Onions Grown in the Walla

Walla Valley of Southeast Washington

and Northeast Oregon; Increased

Assessment Rate

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Final rule.

SUMMARY: This rule increases the

assessment rate established for the

Walla Walla Sweet Onion Committee

(Committee) under Marketing Order No.

956 for the 1998–99 and subsequent

fiscal periods from $0.19 to $0.21 per

50-pound bag or equivalent of onions

handled. The Committee is responsible

for local administration of the marketing

order which regulates the handling of

sweet onions grown in portions of Walla

Walla County, Washington, and

Umatilla County, Oregon. Authorization

to assess Walla Walla sweet onion

handlers enables the Committee to incur

expenses that are reasonable and

necessary to administer the program.

The fiscal period begins June 1 and ends

May 31. The assessment rate will

remain in effect indefinitely unless

modified, suspended, or terminated.

EFFECTIVE DATE: May 29, 1998.

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 369, 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) 205–6632. Small

businesses may request information on

compliance 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) 205–6632.

SUPPLEMENTARY INFORMATION: This rule

is issued under Marketing Agreement

and Order No. 956 (7 CFR part 956),

regulating the handling of sweet onions

grown in the Walla Walla Valley of

southeast Washington and northeast

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,

Walla Walla sweet onion handlers are

subject to assessments. Funds to

administer the order are derived from

such assessments. It is intended that the

assessment rate as issued herein would

be applicable to all assessable sweet

onions beginning on June 1, 1998, and

continue 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. 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 increases the assessment

rate established for the Committee for

the 1998–99 and subsequent fiscal

periods from $0.19 to $0.21 per 50-

pound bag or equivalent of Walla Walla

sweet 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, three 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 1996–97 and subsequent fiscal

periods, the Committee recommended,

and the Department approved, an

assessment rate 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 February 17,

1998, and unanimously recommended

1998–99 expenditures of $97,272. In a

vote with six favoring, three opposing,

and one abstaining, the Committee

recommended an assessment rate of

$0.21 per 50-pound bag or equivalent of

Walla Walla sweet onions handled

during the 1998–99 and subsequent

fiscal periods. The members opposed

believed that the assessment rate should

be increased more than $0.02 per 50-

pound bag or equivalent, so more funds

could be earmarked for promotion and

paid advertising. The public member

abstained because of his desire to

remain neutral on these issues. The

Committee estimated that the 1998

sweet onion crop will approximate

463,200 50-pound bags or equivalents of

onions. In comparison, the 1997–98

fiscal period budget was established at

$126,682 with an estimated assessable

sweet onion crop of 667,750 50-pound

bags or equivalents. In an effort to

partially offset the loss of assessment

income due to the more conservative
29090 Federal Register / Vol. 63, No. 102 /Thursday, May 28, 1998 /Rules and Regulations

1998 crop estimate, the Committee

recommended the $0.02 increase.

In both the 1996 and 1997 seasons,

the actual quantity of assessable sweet

onions produced for the fresh market

was less than the Committee had

estimated for the purpose of establishing

the respective budgets. Actual

assessment income earned during the

1997–98 fiscal period was

approximately $30,000 less than was

estimated for the 1997–98 budget, and

for the 1996–97 fiscal period, actual

assessment income was approximately

$26,000 less than was budgeted. For the

1998–99 fiscal period, the Committee

made its 1998 assessable crop estimate

based on a lower average yield per acre

than was used during the past two

seasons. Based on a reported 772 acres

planted, the Committee is anticipating a

1998 harvest averaging 600 50-pound

bags or equivalents per acre. Thus, the

1998–99 fiscal period budget is based on

a crop estimate of 463,200 50-pound

bags or equivalents of Walla Walla

sweet onions.

After much discussion, the major

expenditures recommended by the

Committee for the 1998–99 fiscal period

include $43,890 for administration,

$10,000 for production research,

$35,890 for market promotion including

paid advertising, and $4,500 for

marketing order compliance. Budgeted

expenses for these items in the 1997–98

fiscal period were $41,700, $15,000,

$51,000, and $9,000, respectively.

The Committee based its

recommended assessment rate increase

on the 1998 crop estimate and its

estimate of 1998–99 fiscal period

expenditures, including administrative

costs and desired research and

promotion projects. The Committee also

took into consideration the impact an

increase in the assessment rate would

have on producers and handlers. The

increased assessment rate should

provide $97,272 in income which

would be adequate to cover budgeted

expenses. In the event the 1998

assessable sweet onion crop falls short

of anticipated yields, the Committee

estimates it will have approximately

$25,000 in its operating reserve at the

beginning of the 1998–99 fiscal period

(June 1, 1998), which should be

adequate to cover any assessment

shortages. This amount is within the

maximum permitted by the order of

approximately two fiscal period’s

budgeted expenses (§ 956.44).

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 will be

in effect 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 and are locally published.

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.

Pursuant to requirements set forth in

the Regulatory Flexibility Act (RFA), the

Agricultural Marketing Service (AMS)

has considered the economic impact of

this rule on small entities. Accordingly,

the AMS has prepared this final

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 60 producers

of Walla Walla sweet onions in the

production area and approximately 35

handlers subject to regulation under the

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. The

majority of Walla Walla sweet onion

producers and handlers may be

classified as small entities.

This rule increases the assessment

rate established for the Committee and

collected from handlers for the 1998–99

and subsequent fiscal periods from

$0.19 to $0.21 per 50-pound bag or

equivalent of Walla Walla sweet onions

handled. The Committee unanimously

recommended 1998–99 expenditures of

$97,272, and, with 6 members favoring,

3 members opposing and 1 member

abstaining, recommended the $0.21 per

50-pound bag or equivalent assessment

rate. This assessment rate is $0.02

higher than the 1997–98 rate. The

Committee recommended an increased

assessment rate to help offset the

smaller projected crop of assessable

sweet onions in 1998. The anticipated

crop of 463,200 50-pound bags or

equivalents is approximately 30 percent

less than each of the 1996 and 1997

crops. The $0.21 rate should provide

$97,272 in assessment income and be

adequate to meet 1998–99 fiscal period

expenses.

The Committee discussed alternatives

to this rule, including alternative

expenditure and assessment levels. The

Committee discussed various alternative

expenditure levels for promotion,

production research, and marketing

order compliance. Further, the

Committee discussed various levels of

assessment from the 1997–98 rate of

$0.19 to as much as $0.25 per 50-pound

bag or equivalent of sweet onions.

Action was taken by the Committee on

a motion to increase the assessment rate

by $0.01. The vote failed to carry a

majority, however, since a $0.01

increase would not have adequately

funded desired expenditures. The

members opposed believed that the

assessment rate should be increased

more than $0.02 per 50-pound bag or

equivalent, so more funds could be

dedicated to promotion and paid

advertising. The public member

abstained because of his desire to

remain neutral on these issues.

The major expenditures

recommended by the Committee for the

1998–99 fiscal period include $43,000

for administration, $10,000 for

production research, $35,890 for market

promotion including paid advertising,

and $4,500 for marketing order

compliance. Budgeted expenses for

these items in the 1997–98 fiscal period

were $41,700, $15,000, $51,000, and

$9,000, respectively.

Recent price information indicates

that producer prices for all sizes and

grades of Walla Walla sweet onions for

the 1998 shipping season may range

between $4.50 and $12.00 per 50-pound

bag or equivalent. Thus, the estimated

assessment revenue for the 1998–99

fiscal period as a percentage of total

producer revenue could range between

0.017 and 0.046 percent.

This action increases 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 will

be offset by the benefits derived by the

operation of the order. In addition, the

Committee’s meeting was widely

publicized throughout the Walla Walla

sweet onion industry and all interested

persons were invited to attend the
Federal Register / Vol. 63, No. 102 /Thursday, May 28, 1998 /Rules and Regulations 29091

meeting and participate in Committee

deliberations on all issues. Like all

Committee meetings, the February 17,

1998, meeting was a public meeting and

all entities, both large and small, were

able to express views on this issue.

This rule imposes no additional

reporting or recordkeeping requirements

on either small or large Walla Walla

sweet 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 proposed rule concerning this

action was published in the Federal

Register on April 8, 1998 (63 FR 17125).

A copy of the proposed rule was also

sent via facsimile to the administrative

office of the Committee, which in turn

notified Committee members and

industry members. The proposal was

also made available through the Internet

by the Government Printing Office.

A 30-day comment period ending

May 8, 1998, was provided to allow

interested persons the opportunity to

respond to the request for information

and comments. No comments were

received in response to the proposal.

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 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

Committee’s 1998–99 fiscal period

begins June 1, 1998, and the order

requires that the assessment rate apply

to all assessable sweet onions handled

during that fiscal period; (3) the 1998

sweet onion harvest is expected to begin

in early June due to unseasonably warm

temperatures experienced in early

Spring; (4) handlers are aware of this

action which was recommended by the

Committee at a public meeting; and (5)

a 30-day comment period was provided

for in the proposed rule, and no

comments were received.

List of Subjects in 7 CFR Part 956

Sweet onions, Marketing agreements,

Reporting and recordkeeping

requirements.

For the reasons set forth in the

preamble, 7 CFR part 956 is amended as

follows:

PART 956—SWEET ONIONS GROWN

IN THE WALLA WALLA VALLEY OF

SOUTHEAST WASHINGTON AND

NORTHEAST OREGON

1. The authority citation for 7 CFR

part 956 continues to read as follows:

Authority: 7 U.S.C. 601–674.

2. Section 956.202 is revised to read

as follows:

§ 956.202 Assessment rate.

On and after June 1, 1998, an

assessment rate of $0.21 per 50-pound

bag or equivalent is established for

Walla Walla Sweet Onions.

Dated: May 21, 1998.

Robert C. Keeney,

Deputy Administrator, Fruit and Vegetable

Programs.

[FR Doc. 98–14017 Filed 5–27–98; 8:45 am]

BILLING CODE 3410–02–P

DEPARTMENT OF AGRICULTURE

Rural Housing Service

Rural Business-Cooperative Service

Rural Utilities Service

Farm Service Agency

7 CFR Parts 1806, 1910, 1922, 1944,

1951, 1955, 1956, 1965, and 3550

RIN 0575–AB99

Reengineering and Reinvention of the

Direct Section 502 and 504 Single

Family Housing (SFH) Programs;

Reopening of Comment Period

AGENCIES: Rural Housing Service, Rural

Business-Cooperative Service, Rural

Utilities Service, and Farm Service

Agency, USDA.

ACTION: Reopening of comment period

on interim final rule.

SUMMARY: The Rural Housing Service

(RHS) is reopening the comment period

on proposed revisions to the Agency’s

standards for modest housing in the

direct Single Family Housing (SFH)

program. The Agency published

proposed changes to these standards in

the Federal Register on April 8, 1996

(61 FR 15395), and subsequently

published an interim final rule on

November 22, 1996 (61 FR 59762). This

current action is being taken to solicit

additional comments from the public.

The intended effect is to ensure that the

Agency has regulations in effect which

best define modest housing, and provide

homeownership opportunities to the

maximum number of families within

allocated resources.

DATES: Written comments must be

received June 29, 1998.

ADDRESSES: Written comments may be

submitted, in duplicate, to the Chief,

Regulations and Paperwork

Management Branch, U.S. Department

of Agriculture, Stop 0742, 1400

Independence Avenue, SW,

Washington, D.C. 20250–0742.

Comments may be submitted via the

Internet by addressing them to

‘‘comments@rus.usda.gov’’ and must

contain the word ‘‘modest’’ in the

subject. All written comments will be

available for public inspection at 300 E

Street, SW, Third Floor, Washington,

D.C. 20546 during normal working

hours.

FOR FURTHER INFORMATION CONTACT:

David J. Villano, Special Assistant to the

Administrator, RHS, U.S. Department of

Agriculture, Room 5017–S, Stop 0701,

1400 Independence Avenue, SW,

Washington, D.C. 20250–0701,

telephone (202) 720–1628.

SUPPLEMENTARY INFORMATION:

Background

On April 8, 1996, the Agency

published a proposed rule in the

Federal Register (61 FR 15395) to

reinvent and reengineer the direct SFH

programs. An interim final rule was

subsequently published in the Federal

Register (61 FR 59762) on November 22,

1996. The interim final rule requested

additional comments on four sections of

the rule. One of these sections [7 CFR

3550.57(a)] dealt with the Agency’s

standards for modest housing in the

direct SFH program. In brief, the

primary factor for determining whether

a house is modest is whether the cost is

below the section 203(b) maximum loan

limits established by the Department of

Housing and Urban Development. Use

of the section 203(b) limits are not

required by statute in the direct SFH

program; however, they were adopted

by the Agency in 1995 as the primary

factor for determining whether a house

was modest. Prior to 1995, the Agency

used square footage and amenity

standards to make such a determination.

Different square footage requirements

existed for different family sizes, and

the regulations contained an extensive

list of amenities which were not

permitted in houses to be financed by

the Agency. These standards were

overly cumbersome, especially for