Vidalia Onions Grown in Georgia; Interest Charges on Delinquent Assessments

DEPARTMENT OF AGRICULTURE

7 CFR Part 955

[Docket No. FV93-955-3FR]

Vidalia Onions Grown in Georgia; Interest Charges on Delinquent

Assessments

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: This final rule revises the administrative rules and

regulations established under the Federal marketing order for Vidalia

onions grown in Georgia. This rule allows the Vidalia Onion Committee

(Committee) to impose interest charges on handler assessments that are

paid late. This rule will encourage handlers to pay assessments in a

timely manner. This rule is based on a unanimous recommendation of the

Committee, which is responsible for local administration of the order.

EFFECTIVE DATE: April 21, 1994.

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 final 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 rule

is not intended to have retroactive effect. 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 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 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 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 adds 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 procedures

for delinquent assessments. If a handler does not pay all assessments

due 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 interest charge is high enough to

discourage handlers from delaying assessment payments. Thus, this rule

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.

Notice of this action was published in the Federal Register on

March 17, 1994, (59 FR 12554). The proposed rule provided a 15-day

comment period which ended April 1, 1994. No comments were received.

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

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

substantial number of small entities.

After consideration of all relevant information presented,

including the Committee's unanimous recommendation and other

information, it is found that this final rule 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 final rule

until 30 days after publication in the Federal Register because: (1)

Assessments are based on the quantity of Vidalia onions handled by each

handler during the fiscal period; (2) the most active part of the 1994

crop shipping season is about to begin and the Committee would like

authority to impose interest charges if they are warranted; (3) this

action does not impose regulatory burdens on handlers for which they

need additional time to comply; and (4) the proposed rule provided a

15-day comment period and no comments were received.

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

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 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 Sec. 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: April 15, 1994.

Robert C. Keeney,

Deputy Director, Fruit and Vegetable Division.

[FR Doc. 94-9588 Filed 4-20-94; 8:45 am]

BILLING CODE 3410-02-P