Onions Grown in South Texas; Expenses

DEPARTMENT OF AGRICULTURE

7 CFR Part 959

[Docket No. FV95-959-2IFR]

Onions Grown in South Texas; Expenses

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: This interim final rule authorizes expenditures under

Marketing Order No. 959 for the 1995-96 fiscal period. Authorization of

this budget enables the South Texas Onion Committee (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 beginning August 1, 1995, through July 31, 1996.

Comments received by September 18, 1995, will be considered prior to

issuance of a final rule.

[[Page 42775]]

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, Texas

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 of Agriculture (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. This action authorizes expenditures for

the 1995-96 fiscal period, which began August 1, 1995, and ends July

31, 1996. 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 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 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 70 producers of South Texas onions under

this marketing order, and approximately 35 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 $5,000,000. The majority of South Texas onion

producers and handlers may be classified as small entities.

The budget of expenses for the 1995-96 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

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 Committee, in a mail vote, unanimously recommended a 1995-96

budget of $239,250 for personnel, office, and compliance expenses,

which is $21,450 more than the previous year. Budget items for 1995-96

which have increased compared to those budgeted for 1994-95 (in

parentheses) are: Manager's salary, $19,094 ($15,172), office salaries,

$24,000 ($22,600), payroll taxes, $4,000 ($3,100), insurance, $7,000

($6,250), rent and utilities, $6,500 ($5,000), supplies, $2,000

($1,500), postage, $1,500 ($1,000), telephone and telegraph, $4,000

($2,500), furniture and fixtures, $2,000 ($1,000), equipment rental and

maintenance, $3,500 ($2,500), contingencies, $6,706 ($3,978), manager's

travel, $5,000 ($3,000), and $3,750 for deferred compensation

(manager's retirement), which was not a line item expense last year.

All other items are budgeted at last year's amounts.

The assessment rate and funding for the research and promotion

projects will be recommended at the Committee's organizational meeting

this fall. These funds, along with the administrative expenses for

personnel, office, and compliance, will comprise the total budget.

Funds in the reserve as of June 30, 1995, estimated at $607,767, were

within the maximum permitted by the order of two fiscal periods'

expenses. These funds will be adequate to cover any expenses incurred

by the Committee prior to the approval of the assessment rate.

Since no assessment rate is being recommended at this time, no

additional costs will be imposed on handlers. 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 fiscal period began on August 1, 1995, and the

Committee needs to have approval to pay its expenses which are incurred

on a continuous basis; (2) this action is similar to that taken at the

beginning of the 1994-95 fiscal period; and (3) 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 continues to read as

follows:

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

[[Page 42776]]

2. A new Sec. 959.236 is added to read as follows:

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

Regulations.

Sec. 959.236 Expenses.

Expenses of $239,250 by the South Texas Onion Committee are

authorized for the fiscal period ending July 31, 1996. Unexpended funds

may be carried over as a reserve.

Dated: August 11, 1995.

Terry C. Long,

Acting Deputy Director, Fruit and Vegetable Division.

[FR Doc. 95-20356 Filed 8-16-95; 8:45 am]

BILLING CODE 3410-02-P