Vidalia Onions Grown in Georgia; Expenses and Assessment Rate

SUMMARY: This interim final rule authorizes expenditures and

establishes an assessment rate under Marketing Order No. 955 for the

1995-96 fiscal period. Authorization of this budget enables the Vidalia

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 September 16, 1995, through September 15, 1996.

Comments received by October 19, 1995, 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. 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 Aleck J. Jonas, Southeast Marketing Field Office, Fruit and

Vegetable Division, AMS, USDA, P.O. Box 2276, Winter Haven, FL 33883-

2276, telephone 941-299-4770.

SUPPLEMENTARY INFORMATION: This 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 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. Under the provisions of the marketing

order now in effect, Vidalia 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 1995-96 fiscal period,

which begins September 16, 1995, and ends September 15, 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 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. 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 250 producers of Georgia Vidalia onions

under this marketing order, and approximately 145 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

Vidalia onion producers and handlers may be classified as small

entities.

The budget of expenses for the 1995-96 fiscal period was prepared

by the Vidalia 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 Vidalia 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 Vidalia 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.

The Committee met July 20, 1995, and unanimously recommended a

1995-96 budget of $343,000, $11,000 more than the previous year. Budget

items for 1995-96 which have increased compared to those budgeted for

1994-95 (in parentheses) are: Dues and subscriptions, $2,500 ($2,000),

equipment maintenance, $1,600 ($750), office overhead, $6,000 ($3,000),

office supplies, $3,500 ($3,000), telephone, $5,000 ($4,000), printing,

$2,200 ($2,000), postage and courier, $6,000 ($5,000), employee

salaries, $65,000

[[Page 48362]]

($60,000), miscellaneous general and administrative, $1,700 ($1,000),

marketing, $146,500 ($132,000), $6,500 for retirement, which was

included in the employee benefits category last year, and $25,400 for a

newly created compliance category. Items which have decreased compared

to those budgeted for 1994-95 (in parentheses) are: Equipment

purchases, $2,000 ($3,000), FICA employer, $3,100 ($4,250), employee

benefits (health and dental), $7,000 ($13,500), research, $48,500

($80,000), and ($8,000) for contract outside labor, for which no

funding was recommended this year.

The Committee also unanimously recommended an assessment rate of

$0.10 per 50-pound bag or equivalent of Vidalia onions, the same as

last year. This rate, when applied to anticipated shipments of

3,017,500 50-pound bags or equivalents of Vidalia onions, would yield

$301,750. The Committee also anticipates shipments of 50,000 50-pound

bags of previously unassessed Vidalia onions which have been in

storage, which will yield an additional $5,000 in assessment income.

This, along with $4,250 in interest income and $32,000 from the

Committee's authorized reserve, will be adequate to cover budgeted

expenses. Funds in the Committee's authorized reserve of $167,766 are

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

expenses.

While this rule 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 by the operation of the

marketing order. Therefore, the Administrator of the AMS has determined

that this rule 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 begins on September 16, 1995, 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 other budget actions issued in

past years; 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 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 is revised to read as

follows:

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

2. A new Sec. 955.208 is added to read as follows:

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

Regulations.

Sec. 955.208 Expenses and assessment rate.

Expenses of $343,000 by the Vidalia Onion Committee are authorized,

and an assessment rate of $0.10 per 50-pound bag or equivalent of

Vidalia onions is established for the fiscal period ending September

15, 1996. Unexpended funds may be carried over as a reserve.

Dated: September 13, 1995.

Sharon Bomer Lauritsen,

Deputy Director, Fruit and Vegetable Division.

[FR Doc. 95-23192 Filed 9-18-95; 8:45 am]

BILLING CODE 3410-02-P