[Federal Register Volume 61, Number 88 (Monday, May 6, 1996)]
[Rules and Regulations]
[Pages 20121-20122]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-11150]



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DEPARTMENT OF AGRICULTURE
7 CFR Part 956

[Docket No. FV96-956-2IFR]


Sweet Onions Grown in the Walla Walla Valley of Southeast 
Washington and Northeast Oregon; Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: This interim final rule establishes an assessment rate for the 
Walla Walla Sweet Onion Committee (Committee) under Marketing Order No. 
956 for the 1996-97 and subsequent fiscal periods. The Committee is 
responsible for local administration of the marketing order which 
regulates the handling of Sweet Onions grown in the Walla Walla Valley 
of Southeast Washington and Northeast Oregon. Authorization to assess 
onion handlers enables the Committee to incur expenses that are 
reasonable and necessary to administer the program.

DATES: Effective on June 1, 1996. Comments received by June 5, 1996, 
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 in triplicate to the Docket 
Clerk, Fruit and Vegetable Division, AMS, USDA, P.O. Box 96456, room 
2523-S, Washington, DC 20090-6456, FAX 202-720-5698. 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: Martha Sue Clark, Marketing Order 
Administration Branch, Fruit and Vegetable Division, AMS, USDA, P.O. 
Box 96456, room 2523-S, Washington, DC 20090-6456, telephone 202-720-
9918, FAX 202-720-5698, or Robert J. Curry, Northwest Marketing Field 
Office, Fruit and Vegetable Division, AMS, USDA, Green-Wyatt Federal 
Building, room 369, 1220 Southwest Third Avenue, Portland, OR 97204, 
telephone 503-326-2724, FAX 503-326-7440.

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 12778, Civil 
Justice Reform. Under the marketing 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 will be applicable to all assessable 
onions beginning June 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. 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.
    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.
    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 50 producers of Walla Walla Sweet Onions in 
the production area and approximately 30 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 Walla Walla Sweet Onion producers and 
handlers may be classified as small entities.
    The Walla Walla Sweet 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 Walla Walla Sweet Onions. They are 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 assessment rate is formulated and 
discussed in a public meeting. Thus, all directly affected persons have 
an opportunity to participate and provide input.

[[Page 20122]]

    The Committee met on March 12, 1996, and unanimously recommended 
1996-97 expenditures of $114,000 and an assessment rate of $0.19 per 
50-pound bag or equivalent of onions. In comparison, last year's 
budgeted expenditures were $72,000. The assessment rate of $0.19 is 
$0.07 higher than last year's established rate. Major expenditures 
recommended by the Committee for the 1996-97 year include $34,000 for 
administrative expenses, $62,000 for research and promotion, and $9,000 
for compliance. Budgeted expenses for these items in 1995-96 were 
$28,000, $22,000, and $9,000, respectively.
    The assessment rate recommended by the Committee was derived by 
dividing anticipated expenses by expected shipments of Walla Walla 
Sweet Onions. Onion shipments for the year are estimated at 600,000 50-
pound bags which should provide $114,000 in assessment income, which 
will be adequate to cover budgeted expenses. Funds in the reserve at 
the beginning of the 1996-97 fiscal period are estimated at $27,000. 
Funds in the reserve will be kept within the maximum permitted by the 
order.
    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 by the operation of the 
marketing order. Therefore, the Agricultural Marketing Service 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. 
Further rulemaking will be undertaken as necessary. 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 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 Committee needs to have sufficient funds to 
pay its expenses which are incurred on a continuous basis; (2) the 
1996-97 fiscal period begins on June 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 the assessment rate 
action issued last year; and (4) this interim final rule provides a 30-
day comment period, and all comments timely received will be considered 
prior to finalization of this rule.

List of Subjects in 7 CFR Part 956

    Marketing agreements, Onions, 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. A new Sec. 956.202 is added to read as follows:

    Note: This section will not appear in the Annual Code of Federal 
Regulations.


Sec. 956.202   Assessment rate.

    On and after June 1, 1996, an assessment rate of $0.19 per 50 pound 
bag or equivalent is established for Walla Walla Sweet Onions.

    Dated: April 30, 1996.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 96-11150 Filed 5-03-96; 8:45 am]
BILLING CODE 3410-02-P