Vidalia Onions Grown in Georgia; Changing the Term of Office and Nomination Deadlines

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 955

[Docket No. FV00-955 2 IFR]

Vidalia Onions Grown in Georgia; Changing the Term of Office and

Nomination Deadlines

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: This rule changes the term of office for the Vidalia Onion

Committee (Committee), and the time for conducting and submitting

Committee nominations under the Vidalia onion marketing order. The

marketing order regulates the handling of Vidalia onions grown in

Georgia and is administered locally by the Committee. This rule changes

the term of office from a 24-month period beginning September 16 and

ending September 15, to a 24-month period beginning January 1 and

ending December 31. It also changes the month for conducting and

submitting Committee producer nominations from August to October of

each year, and for the public member and alternate member from November

1 to February 15. These changes are expected to improve Committee and

program operations.

DATES: Effective January 1, 2000; comments received by January 26, 2000

will be considered prior to issuance of a final rule.

ADDRESSES: Interested persons are invited to submit written comments

concerning this rule. Comments must be sent to the Docket Clerk, Fruit

and Vegetable Programs, AMS, USDA, room 2525-S, PO Box 96456,

Washington, DC 20090-6456; Fax: (202) 720-5698; or E-mail:

[email protected]. All comments should reference the docket

number and 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: William G. Pimental, Southeast

Marketing Field Office, F&V, AMS, USDA, P.O. Box 2276, Winter Haven, FL

33883-2276; telephone: (863) 299-4770, Fax: (863) 299-5169; or George

Kelhart, Technical Advisor, Marketing Order Administration Branch,

Fruit and Vegetable Programs, AMS, USDA, room 2525-S, P.O. Box 96456,

Washington, DC 20090-6456; telephone: (202) 720-2491, Fax: (202) 720-

5698.

Small businesses may request information on complying with this

regulation by contacting Jay Guerber, Marketing Order Administration

Branch, Fruit and Vegetable Programs, AMS, USDA, PO Box 96456, room

2525-S, Washington, DC 20090-6456; telephone (202) 720-2491, Fax: (202)

720-5698, or E-mail: Jay.G[email protected].

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, hereinafter referred to as the

``order.'' 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 rule has been reviewed under Executive Order 12988, 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 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. A 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.

Section 955.21 of the order provides that the term of office for

Committee members and alternates begins on September 16, or such other

period as the Committee may recommend and the Secretary approves. In

addition, Sec. 955.22 provides that the Committee shall hold or cause

to be held not later than August 1 of each year, or such other date as

may be specified by the Secretary, a meeting or meetings of growers for

the purpose of designating one nominee for each position as member and

for each position as alternate member of the Committee which is vacant,

or which is about to become vacant. Nominations for members and

alternates are required to be supplied to the Secretary in such manner

and form as the Secretary may prescribe, not later than August 15 of

each year, or by such date as may be specified by the Secretary. That

section further provides that the producer members shall nominate the

public member and alternate member at the first meeting following the

selection of members for a new term of office. The members and

alternates serve two-year terms of office and approximately one-half of

the total Committee membership is nominated and selected each year.

[[Page 72268]]

Nominations for the public member and alternate member are required to

be supplied to the Secretary in such manner and form as the Secretary

may prescribe, not later than November 1, or such other date as may be

specified by the Secretary.

An interim final rule was published in the Federal Register on

September 3, 1999 (64 FR 48243), which changed the fiscal period

established under the order to a calendar year basis (January 1-

December 31) from September 16-September 15 to more closely coincide

with the Vidalia onion marketing season. That interim final rule has

been adopted, without change, in a final rule published in this issue

of the Federal Register. The new fiscal is specified in Sec. 955.113.

Over the past decade, technological changes in the industry,

including the adoption of Controlled Atmosphere (CA) storage of Vidalia

onions by three-fourths of the industry handlers, have extended the

harvesting and marketing season from April through June to an almost

year-round basis. While there are some added storage costs and losses

due to shrinkage with CA storage, these costs are more than offset by

prices received for Vidalia onions during the holiday season (November

and December).

On September 30, 1999, the Committee unanimously recommended that

the term of office continue to be established on the same basis as the

fiscal period. This rule changes the term of office from a 24-month

period beginning September 16 and ending September 15, to a 24-month

period beginning January 1 and ending December 31. The new fiscal

period is established in new Sec. 955.121. Also, for the eight members

and alternates whose terms of office were scheduled to end on September

15, 1999, their terms of office will continue through December 31,

1999, or until qualified successors are selected. Nominations for those

expiring positions already have been submitted to the Department under

existing regulations.

The Committee also recommended changes in the times for conducting

and submitting Committee producer member and alternate member

nominations to maintain the same approximate nomination deadlines as

provided currently. The dates will be changed from August 1 and August

15 to October 1 and October 15, respectively, and are specified in new

Sec. 955.122. The deadline for submitting nominations to the Secretary

for the public member and alternate will be changed from November 1 to

February 15 to provide the same amount of time for submitting

nominations as currently provided after the newly selected Committee's

first meeting sometime after January 1. These changes are expected to

improve Committee and program operations.

Pursuant to requirements set forth in the Regulatory Flexibility

Act (RFA), the Agricultural Marketing Service (AMS) has considered the

economic impact of this action on small entities. Accordingly, AMS has

prepared this initial regulatory flexibility analysis.

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 133 producers of Vidalia onions in the

production area and approximately 86 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 less than $500,000, and small agricultural

service firms are defined as those whose annual receipts are less than

$5,000,000.

Based on the Georgia Agricultural Statistical Service and committee

data, the average price for fresh Vidalia Onions during the 1998-99

season was $15.45 per 50-pound bag, or equivalent and shipments totaled

3,617,017 bags. Many Vidalia onion handlers ship other vegetable

products which are not included in the committee data, but would

contribute further to handler receipts.

Using the average price, about 97.4 percent of Vidalia Onion

handlers could be considered small businesses under the SBA definition.

The majority of Vidalia Onion producers and handlers may be classified

as small entities.

This rule adds Sec. 955.121 to change the two-year term of office

to January 1-December 31 from September 16-September 15 to keep the

term of office on a fiscal year basis. It also adds Sec. 955.122 to

modify the deadlines when nominations are to be held and reports of the

nominations are to be made to the Secretary. The new deadlines provide

the same amount of time for conducting and submitting nominations for

producer members and alternates and for the public member and alternate

as are provided currently. For producer member and alternate members,

the time for conducting nominations will be changed from August 1 to

October 1, and the time for submitting the nominations to Secretary

will be changed from August 15 to October 15. The time for submitting

the public member and alternate public member nominations will be

changed from November 1 to February 15 for a new term of office. Also,

for the eight Committee members and alternates whose terms of office

were scheduled to end on September 15, 1999, their terms of office will

continue through December 31, 1999, or until qualified successors are

selected.

The changes in the term of office and the nomination deadlines

should not impose any additional costs on large or small firms in the

Vidalia onion industry. The changes merely bring the term of office and

the nomination deadlines into conformity with the recent change in the

fiscal period which was changed to a calendar year basis (January 1-

December 31) from September 16-September 15.

The Committee discussed the alternative of leaving the term of

office and nomination deadlines as they are presently. However, the

Committee believes that the term of office and nomination deadlines

should continue to be based on the fiscal period, which now is

established on a calendar year basis.

This rule will not impose any additional reporting or recordkeeping

requirements on either small or large Vidalia onion handlers. As with

all Federal marketing order programs, reports and forms are

periodically reviewed to reduce information requirements and

duplication by industry and public sectors. In addition, the Department

has not identified any relevant Federal rules that duplicate, overlap

or conflict with this rule.

Further, the Committee's meeting was widely publicized throughout

the Vidalia onion industry and all interested persons were invited to

attend the meeting and participate in Committee deliberations. Like all

Committee meetings, the September 30, 1999, meeting was a public

meeting and all entities, both large and small, were able to express

their views on this issue. Finally, interested persons are invited to

submit information on the regulatory and informational impacts of this

action on small businesses.

A small business guide on complying with fruit, vegetable, and

specialty crop marketing agreements and orders may be viewed at the

following website: http://www.ams.usda.gov/fv/moab.html. Any questions

about the compliance guide should be sent to Jay Guerber at the

previously mentioned

[[Page 72269]]

address in the FOR FURTHER INFORMATION CONTACT section.

After consideration of all relevant material presented, including

the Committee's recommendation, and other information, it is found that

this interim final rule, as hereinafter set forth, will tend to

effectuate the declared policy of the Act.

This rule invites comments on a change to the term of office and

nomination deadlines currently prescribed under the Vidalia onion

marketing order. A comment period of 30 days is deemed appropriate

because January 1, 2000, is the beginning of fiscal period established

by a separate action and the term of office prescribed by this action

corresponds with that date. Any comments received will be considered

prior to finalization of this rule.

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 rule until 30 days after publication in the Federal Register

because: (1) The change in the term of office is January 1, 2000, to

correspond with the beginning of the fiscal period recently established

in a separate action; and (2) a 30-day comment period is provided and

all comments received will be considered in finalizing 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 continues to read as

follows:

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

2. A new Sec. 955.121 is added to read as follows:

Sec. 955.121 Change in term of office.

Pursuant to Sec. 955.21, the term of office for the Committee shall

be for two years beginning January 1 and ending December 31, except

that, the term of office for members and alternates whose terms expired

on September 15, 1999, shall end on December 31, 1999, or until

qualified successors are selected.

3. A new Sec. 955.122 is added to read as follows:

Sec. 955.122 Change in nomination deadlines.

Pursuant to Sec. 955.22, the Committee shall hold or cause to be

held not later than October 1 of each year a meeting or meetings of

growers for the purpose of designating one nominee for each position as

member and for each position as alternate of the Committee which is

vacant, or about to become vacant. Such nominations shall be supplied

to the Secretary in such manner and form as the Secretary may

prescribe, not later than October 15 of each year. The grower members

shall nominate the public member and alternate public member at the

first meeting following the selection of members for a new term of

office. Nominations for the public member and alternate public member

shall be supplied to the Secretary in such manner and form as the

Secretary may prescribe, not later than February 15.

Dated: December 20, 1999.

James R. Frazier,

Acting Deputy Administrator, Fruit and Vegetable Programs.

[FR Doc. 99-33509 Filed 12-23-99; 8:45 am]

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