Sweet Onions Grown in the Walla Walla Valley of Southeast Washington and Northeast Oregon; Assessment Rate

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 956

[Docket No. FV96-956-2 FIR]

Sweet Onions Grown in the Walla Walla Valley of Southeast

Washington and Northeast Oregon; Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: The Department of Agriculture (Department) is adopting as a

final rule, with change, the provisions of an interim final rule that

established an assessment rate for the Walla Walla Sweet Onion

Committee (Committee) under Marketing Order No. 956 for the 1996-97 and

subsequent fiscal periods. The Committee is responsible for local

administration of the marketing order which regulates the handling of

Sweet Onions grown in the Walla Walla Valley of Southeast Washington

and Northeast Oregon. Authorization to assess onion handlers enables

the Committee to incur expenses that are reasonable and necessary to

administer the program.

EFFECTIVE DATE: Effective on June 1, 1996.

FOR FURTHER INFORMATION CONTACT: Martha Sue Clark, Program Assistant,

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, FAX 202-720-5698, or Robert J. Curry, Marketing

Specialist, Northwest Marketing Field Office, Fruit and Vegetable

Division, AMS, USDA, Green-Wyatt Federal Building, room 369, 1220

Southwest Third Avenue, Portland, OR 97204, telephone 503-326-2724, FAX

503-326-7440. Small businesses may request information on compliance

with this regulation by contacting: Jay Guerber, Marketing Order

Administration Branch, Fruit and Vegetable Division, AMS, USDA, P.O.

Box 96456, room 2523-S, Washington, DC 20090-6456, telephone 202-720-

2491, FAX 202-720-5698.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing

Agreement and Order No. 956 (7 CFR part 956)

[[Page 39051]]

regulating the handling of Sweet Onions grown in the Walla Walla Valley

of Southeast Washington and Northeast Oregon, hereinafter referred to

as the ``order.'' The order is 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 rule has been reviewed under Executive Order 12988, Civil

Justice Reform. Under the marketing order now in effect, Walla Walla

Sweet Onion handlers are subject to assessments. Funds to administer

the order are derived from such assessments. It is intended that the

assessment rate as issued herein will be applicable to all assessable

onions beginning June 1, 1996, and continuing until amended, suspended,

or terminated. 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 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 to review the

Secretary's ruling on the petition, provided an action 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 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 50 producers of Walla Walla Sweet Onions in

the production area and approximately 30 handlers subject to regulation

under the marketing order. 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 Walla Walla Sweet Onion producers and

handlers may be classified as small entities.

The Walla Walla Sweet Onion marketing order provides authority for

the Committee, with the approval of the Department, to formulate an

annual budget of expenses and collect assessments from handlers to

administer the program. The members of the Committee are producers and

handlers of Walla Walla Sweet Onions. They are familiar with the

Committee's needs and with the costs for goods and services in their

local area and are thus in a position to formulate an appropriate

budget and assessment rate. The assessment rate is formulated and

discussed in a public meeting. Thus, all directly affected persons have

an opportunity to participate and provide input.

The Committee met on March 12, 1996, and unanimously recommended

1996-97 expenditures of $114,000 and an assessment rate of $0.19 per

50-pound bag or equivalent of onions. In comparison, last year's

budgeted expenditures were $72,000. The assessment rate of $0.19 is

$0.07 higher than last year's established rate. Major expenditures

recommended by the Committee for the 1996-97 year include $34,000 for

administrative expenses, $62,000 for research and promotion, and $9,000

for compliance. Budgeted expenses for these items in 1995-96 were

$28,000, $22,000, and $9,000, respectively.

The assessment rate recommended by the Committee was derived by

dividing anticipated expenses by expected shipments of Walla Walla

Sweet Onions. Onion shipments for the year are estimated at 600,000 50-

pound bags which should provide $114,000 in assessment income, which

will be adequate to cover budgeted expenses.

An interim final rule regarding this action was published in the

May 6, 1996, issue of the Federal Register (61 FR 20121). That interim

final rule added Sec. 956.202 to establish an assessment rate for the

Committee. That rule provided that interested persons could file

comments through June 5, 1996. No comments were received.

While this rule will impose some additional costs on handlers, the

costs are in the form of uniform assessments on all 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 AMS has determined that this rule will

not have a significant economic impact on a substantial number of small

entities.

The assessment rate established in this rule will continue in

effect indefinitely unless modified, suspended, or terminated by the

Secretary upon recommendation and information submitted by the

Committee or other available information.

Although this assessment rate is effective for an indefinite

period, the Committee will continue to meet prior to or during each

fiscal period to recommend a budget of expenses and consider

recommendations for modification of the assessment rate. The dates and

times of Committee meetings are available from the Committee or the

Department. Committee meetings are open to the public and interested

persons may express their views at these meetings. The Department will

evaluate Committee recommendations and other available information to

determine whether modification of the assessment rate is needed.

Further rulemaking will be undertaken as necessary. The Committee's

1996-97 budget and those for subsequent fiscal periods will be reviewed

and, as appropriate, approved by the Department.

After consideration of all relevant material presented, including

the information and recommendation 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.

This final rule also corrects an error in the interim final rule

published May 6, 1996 (61 FR 20121). On page 20122, the note

immediately following amendatory instruction 2 incorrectly states that

Sec. 956.202 will not appear in the annual Code of Federal Regulations.

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 rule 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 1996-97 fiscal period began on

June 1, 1996, and the marketing order requires that the rate of

assessment for each fiscal period apply to all assessable onions

handled during such fiscal period; (3) handlers are aware of this

action which was

[[Page 39052]]

unanimously recommended by the Committee at a public meeting and is

similar to the assessment rate action issued last year; and (4) an

interim final rule was published on this action and provided for a 30-

day comment period, and no comments were received.

List of Subjects in 7 CFR Part 956

Marketing agreements, Onions, Reporting and recordkeeping

requirements.

PART 956--SWEET ONIONS GROWN IN THE WALLA WALLA VALLEY OF SOUTHEAST

WASHINGTON AND NORTHEAST OREGON

The authority citation for 7 CFR part 956 continues to read as

follows:

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

Accordingly, the interim final rule amending 7 CFR part 956 which

was published at 61 FR 20122 on May 6, 1996, is adopted with the

following correction to the note immediately following amendatory

instruction 2. The note should read:

This section will appear in the annual Code of Federal Regulations.

Dated: July 22, 1996.

Sharon Bomer Lauritsen,

Deputy Director, Fruit and Vegetable Division.

[FR Doc. 96-18997 Filed 7-25-96; 8:45 am]

BILLING CODE 3410-02-P