Vidalia Onions Grown in Georgia; Interest Charges on Delinquent Assessments

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 955

[Docket No. FV93-955-3PR]

Vidalia Onions Grown in Georgia; Interest Charges on Delinquent

Assessments

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule with request for comments.

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SUMMARY: This rule proposes to revise the administrative rules and

regulations established under the Federal marketing order for Vidalia

onions grown in Georgia. This proposal would allow the Vidalia Onion

Committee (Committee) to impose interest charges on handler assessments

that are paid late. This proposal would encourage handlers to pay

assessments in a timely manner. This proposal is based on a unanimous

recommendation of the Committee, which is responsible for local

administration of the order.

DATES: Comments which are received by April 1, 1994 will be considered

prior to any finalization of this proposed rule.

ADDRESSES: Interested persons are invited to submit written comments

concerning this proposed rule. Comments must be sent in triplicate to

the Docket Clerk, Marketing Order Administrative Branch, F&V, AMS,

USDA, Room 2523-S, P.O. Box 96456, Washington, DC 20090-6456, FAX

number (202) 720-5698. Comments should reference this docket number,

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.

FOR FURTHER INFORMATION CONTACT: Shoshana Avrishon, Marketing

Specialist, Marketing Order Administration Branch, Fruit and Vegetable

Division, AMS, USDA, room 2536-S., P.O. Box 96456, Washington, DC

20090-6456; telephone (202) 720-3610, or FAX (202) 720-5698; or William

G. Pimental, Marketing Specialist, Southeast Marketing Field Office,

Fruit and Vegetable Division, AMS, USDA, P.O. Box 2276, Winter Haven,

Florida 33883-2276; (813) 299-4770, or FAX (813) 299-5169.

SUPPLEMENTARY INFORMATION: This proposed rule is issued under Marketing

Agreement and Order No. 955 (7 CFR part 955) regulating the handling of

Vidalia onions grown in Georgia. The marketing agreement and order are

authorized by the Agricultural Marketing Agreement Act of 1937, as

amended (7 U.S.C. 601-674), hereinafter referred to as the Act.

The U.S. 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. This proposal is not intended to have retroactive

effect. This proposal 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 8c(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. A handler is afforded the opportunity for a hearing on the

petition. After a 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 requirements set forth in the Regulatory Flexibility

Act (RFA), the Administrator of the Agricultural Marketing Service

(AMS) has considered the economic impact of this proposal 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 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 145 handlers of Vidalia onions that are

subject to regulation under the marketing order and approximately 250

producers in the production area. Small agricultural service firms are

defined by the Small Business Administration (13 CFR 121.601) as those

whose annual receipts are less than $3,500,000, and small agricultural

producers have been defined as those having annual receipts of less

than $500,000. The majority of the Vidalia onion handlers and producers

may be classified as small entities.

This rule proposes adding a new Sec. 955.142 to Subpart--

Administrative Rules and Regulations and is based on a unanimous

recommendation of the Committee and other available information.

Section 955.42(f), of the marketing order provides authority for

the Committee to impose a late payment or an interest charge or both,

on any handlers who fail to pay assessments in a timely manner.

On November 18, 1993, the Committee met to discuss, among other

things, the difficulty it has experienced in collecting assessments

from some handlers. It reported that during the past season

approximately 20 handlers paid assessments late. When this occurred,

handlers who paid their assessments on time were placed in an unfair

situation compared to those handlers who failed to do so. The

delinquent handlers were able to use the money which was due the

Committee for other financial obligations and thus eliminate interest

charges on money that they might otherwise have had to borrow to pay

those other financial obligations. This money could also have been

invested to earn interest for the delinquent handlers.

At the meeting, the Committee determined that it was important to

encourage all handlers to pay their assessments promptly, thereby

eliminating these inequities and avoiding additional and unnecessary

collection costs. The Committee recommended the following proposal. If

a handler does not pay all of the handler's assessments 30 days after

the date of billing, the unpaid portion of the account would be

considered delinquent and subject to interest charges at the rate of

one percent per month. Handlers would be charged interest charges on

unpaid assessments and interest charges on any unpaid interest charges

until the late obligation is paid in full. The Committee assesses

handlers on a monthly basis.

The Committee believes that the proposed interest charge is high

enough to discourage handlers from delaying assessment payments. Thus,

this proposal is expected to encourage all handlers to pay their

assessments in a timely manner, and facilitate the collection of funds

to pay expenses necessary for the maintenance and functioning of the

Committee.

Based on the above, the Administrator of the AMS has determined

that this proposed rule would not have a significant economic impact on

a substantial number of small entities.

A period of fifteen days is provided for all interested persons to

submit written comments. The Committee would like the proposal to be

effective as soon as possible so that efforts to encourage timely

payments can be implemented early in 1994. All comments timely received

will be considered before issuing a final decision on this proposal.

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 proposed to be added to read as follows:

Sec. 955.142 Delinquent assessments.

Each handler shall pay interest of one percent per month on any

unpaid assessments levied pursuant to section 955.42 and any accrued

unpaid interest beginning 30 days after date of billing, until the

delinquent handler's assessment plus applicable interest has been paid

in full.

Dated: March 11, 1994.

Martha B. Ransom,

Acting Deputy Director, Fruit and Vegetable Division.

[FR Doc. 94-6150 Filed 3-16-94; 8:45 am]

BILLING CODE 3410-02-P