# South Texas Onions; Increased Expenses and Establishment of Assessment Rate

> Briefs, arguments, decisions, and more.

URL: https://www.frixlaw.com/law-library/documents/fr%3A94-607

## Record

- **Collection:** Federal Register
- **Document type:** Uncategorized Document
- **Published:** January 11, 1994

## Text

DEPARTMENT OF AGRICULTURE
7 CFR Part 959

[Docket No. FV93-959-1IFR; Amendment 1]

South Texas Onions; Increased Expenses and Establishment of
Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Amended interim final rule with request for comments.

-----------------------------------------------------------------------

SUMMARY: This interim final rule amends a previous interim final rule
which authorized administrative expenses for the South Texas Onion
Committee (Committee) under M.O. No. 959. This interim final rule
increases the level of authorized expenses and establishes an increased
assessment rate to generate funds to pay those expenses. Authorization
of this increased budget enables the Committee to incur expenses that
are reasonable and necessary to administer the program. Funds to
administer this program are derived from assessments on handlers.

DATES: Effective August 1, 1993, through July 31, 1994. Comments
received by February 10, 1994, will be considered prior to issuance of
a final rule.

ADDRESSES: Interested persons are invited to submit written comments
concerning this action. 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, or Belinda G. Garza, McAllen
Marketing Field Office, Fruit and Vegetable Division, AMS, USDA, 1313
East Hackberry, McAllen, TX 78501, telephone 210-682-2833.

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. 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 interim final rule has been reviewed under Executive Order
12778, Civil Justice Reform. Under the marketing order provisions now
in effect, South Texas onions are subject to assessments. It is
intended that the assessment rate as issued herein will be applicable
to all assessable onions handled during the 1993-94 fiscal period,
which began August 1, 1993, and ends July 31, 1994. This interim final
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 requesting 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 in equity to review
the Secretary's ruling on the petition, provided a bill in equity is
filed not later than 20 days after the date of the entry of the ruling.
Pursuant to the requirements set forth in the Regulatory
Flexibility Act (RFA), the Administrator of 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 47 producers of South Texas onions under
this marketing order, and approximately 34 handlers. 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 $3,500,000. The majority of South Texas onion
producers and handlers may be classified as small entities.
The budget of expenses for the 1993-94 fiscal period was prepared
by the South Texas Onion Committee, the agency responsible for local
administration of the marketing order, and submitted to the Department
of Agriculture for approval. 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. The budget was formulated and discussed in a public meeting.
Thus, all directly affected persons have had an opportunity to
participate and provide input.
The assessment rate recommended by the Committee was derived by
dividing anticipated expenses by expected shipments of South Texas
onions. Because that rate will be applied to actual shipments, it must
be established at a rate that will provide sufficient income to pay the
Committee's expenses.
Committee administrative expenses of $80,000 for personnel, office,
and compliance expenses were recommended in a mail vote completed
August 4, 1993. The assessment rate and funding for the research and
promotion projects were to be recommended at a later Committee meeting.
The Committee administrative expenses of $80,000 were published in the
Federal Register as an interim final rule September 28, 1993 (58 FR
50509). That interim final rule added Sec. 959.234, authorizing
expenses for the Committee, and provided that interested persons could
file comments through October 28, 1993. No comments were filed.
The Committee subsequently met on November 9, 1993, and unanimously
recommended increases of $2,500 for personnel expenses and $125,000 for
compliance activities in the recently approved 1993-94 budget. The
compliance increase will provide for funds to operate road guard
stations surrounding the production area. The Committee also
unanimously recommended $210,000 in market development activities and
$105,600 in production research. These expenditures represent increases
over last year's budget of $65,000 for market development and $11,412
for production research. Under this amended budget, expense items for
the 1993-94 fiscal period are as follows: $37,472 for personnel,
$29,028 for office expenses, $141,000 for compliance activities,
$210,000 for market development, and $105,600 for production research.
The initial 1994 budget, published on September 28, 1993, did not
establish an assessment rate. Therefore, the Committee also unanimously
recommended an assessment rate of $0.10 per 50-pound container or
equivalent of onions, $0.03 more than last year's assessment rate. This
rate, when applied to anticipated shipments of approximately 5 million
50-pound containers or equivalents, will yield $500,000 in assessment
income, which, along with $23,100 from the reserve, will be adequate to
cover budgeted expenses. Funds in the reserve as of September 30, 1993,
were $346,415, which is within the maximum permitted by the order of
two fiscal periods' expenses.
While this action will impose some additional costs on handlers,
the costs are in the form of uniform assessments on 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 Administrator of the AMS has determined
that this action will not have a significant economic impact on a
substantial number of small entities.
After consideration of all relevant matter presented, including the
information and recommendations 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 action 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 fiscal
period began on August 1, 1993, and the marketing order requires that
the rate of assessment for the fiscal period apply to all assessable
onions handled during the fiscal period; (3) handlers are aware of this
action which was unanimously recommended by the Committee at a public
meeting and is similar to that taken for the 1992-93 fiscal period; 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 action.

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

1. The authority citation for 7 CFR part 959 is revised to read as
follows:

Authority: 7 U.S.C. 601-674.

2. Section 959.234 is revised to read as follows:

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

Sec. 959.234 Expenses and assessment rate.

Expenses of $523,100 by the South Texas Onion Committee are
authorized and an assessment rate of $0.10 per 50-pound container or
equivalent of onions is established for the fiscal period ending July
31, 1994. Unexpended funds may be carried over as a reserve.

Dated: January 5, 1994.
Robert C. Keeney,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 94-607 Filed 1-10-94; 8:45 am]
BILLING CODE 3410-02-P

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A94-607. Public record. Not legal advice.