[Federal Register: July 9, 2003 (Volume 68, Number 131)]
[Proposed Rules]
[Page 40815-40817]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr09jy03-27]
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[[Page 40815]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 958
[Docket No. FV03-958-01 PR]
Onions Grown in Certain Designated Counties in Idaho, and Malheur
County, OR; Increased Assessment Rate and Defined Fiscal Period
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
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SUMMARY: This proposed rule would increase the assessment rate
established for the Idaho-Eastern Oregon Onion Committee (Committee)
for the 2003-2004 and subsequent fiscal periods from $0.08 to $0.095
per hundredweight of onions handled, and would establish, in the
regulatory text, the Committee's fiscal period beginning July 1 of each
year and ending June 30 of the following year. The Committee locally
administers the marketing order that regulates the handling of onions
grown in designated counties in Idaho, and Malheur County, Oregon.
Authorization to assess onion handlers enables the Committee to incur
expenses that are reasonable and necessary to administer the program.
The assessment rate would remain in effect indefinitely unless
modified, suspended, or terminated.
DATE: Comments must be received by July 24, 2003.
ADDRESSES: Interested persons are invited to submit written comments
concerning this proposed rule. Comments must be sent to the Docket
Clerk, Marketing Order Administration Branch, Fruit and Vegetable
Programs, AMS, USDA, 1400 Independence Avenue SW, STOP 0237,
Washington, DC 20250-0237; Fax: (202) 720-8938, or E-mail:
moab.docketclerk@usda.gov <mailto:
moab.docketclerk@usda.gov>. 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, or can be viewed at: http://www.ams.usda.gov/fv/moab.html <http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.ams.usda.gov/fv/moab.html>
.
FOR FURTHER INFORMATION CONTACT: Susan M. Hiller, Northwest Marketing
Field Office, Marketing Order Administration Branch, Fruit and
Vegetable Programs, AMS, USDA, 1220 SW Third Ave, suite 385, Portland,
OR 97204; Phone: (503) 326-2724; Fax: (503) 326-7440; or George
Kelhart, Technical Advisor, Marketing Order Administration Branch,
Fruit and Vegetable Programs, AMS, USDA, 1400 Independence Avenue SW,
STOP 0237, Washington, DC 20250-0237; telephone: (202) 720-2491, Fax:
(202) 720-8938.
Small businesses may request information on complying with this
regulation by contacting Jay Guerber, Marketing Order Administration
Branch, Fruit and Vegetable Programs, AMS, USDA, 1400 Independence
Avenue SW, STOP 0237, Washington, DC 20250-0237; telephone: (202) 720-
2491, Fax: (202) 720-8938, or E-mail: Jay.Guerber@usda.gov <mailto:Jay.Guerber@usda.gov>.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement No. 130 and Marketing Order No. 958, both as amended (7 CFR
part 958), regulating the handling of onions grown in certain
designated counties in Idaho, and Malheur County, 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 of Agriculture (USDA) 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, Idaho-Eastern
Oregon onion handlers are subject to assessments. Funds to administer
the order are derived from such assessments. It is intended that the
assessment rate as proposed herein would be applicable to all
assessable onions beginning on July 1, 2003, and continue until
amended, suspended, or terminated. This rule would 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 USDA 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 USDA 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 USDA's ruling on the petition,
provided an action is filed not later than 20 days after the date of
the entry of the ruling.
This proposed rule would increase the assessment rate established
for the Committee for the 2003-2004 and subsequent fiscal periods from
$0.08 to $0.095 per hundredweight of onions handled, and would
establish, in the regulatory text, the Committee's fiscal period. The
fiscal period begins July 1 of each year and ends June 30 of the
following year.
The order provides authority for the Committee, with the approval
of USDA, to establish a fiscal period. The Committee has operated under
a fiscal period of July 1 through June 30 since its inception in the
late 1950's, but this period has never been specified in the regulatory
text. This rule would add to the order's rules and regulations a
definition of the Committee's fiscal period. The fiscal period would be
defined to be the 12 month period beginning July 1 and ending June 30
of the following year, both dates inclusive.
The order also provides authority for the Committee, with the
approval of USDA, to formulate an annual budget of expenses and collect
assessments from handlers to administer the program. The Committee
consists of six producer members, four handler members and one public
member. 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.
[[Page 40816]]
For the 2000-2001 and subsequent fiscal periods, the Committee
recommended, and USDA approved, an assessment rate that would continue
in effect from fiscal period to fiscal period unless modified,
suspended, or terminated by USDA upon recommendation and information
submitted by the Committee or other information available to USDA.
The Committee met on April 3, 2003, and in a vote of seven in
favor, one against, and one abstention, recommended an assessment rate
of $0.095 per hundredweight of onions handled. The assessment rate of
$0.095 is $0.015 higher than the rate currently in effect. The order
authorizes the Committee to establish an operating reserve of up to one
fiscal period's operational expense. However, the Committee has
maintained the operating reserve at a level of approximately one-half
of one fiscal period's operational expenses. The Committee, over the
last four fiscal periods, has reduced its operating reserve to this
level. The Committee recommended the $0.015 increase so the total of
assessment income ($870,200), contributions ($79,800), interest income
($6,000), and other income ($1,000) would equal the recommended
expenses for 2003-2004 of $957,000. With these revenue sources, the
Committee would not need to access its operating reserve and would
maintain the reserve at the current level.
The Committee met on June 12, 2003 and unanimously recommended
2003-2004 expenditures of $957,000. In comparison, last year's budgeted
expenditures were $1,044,824. The major expenditures for the 2003-2004
fiscal period include $10,000 for committee expenses, $148,353 for
salary expenses, $72,610 for travel/office expenses, $59,170 for
research expenses, $27,250 for export expenses, $589,617 for promotion
expenses, and $50,000 for unforeseen marketing order contingencies.
Budgeted expenses for these items in 2002-2003 were $10,000, $143,814,
$77,460, $59,550, $54,000, $675,000, and $25,000, respectively.
The Committee estimates that onion shipments for the 2003-2004
fiscal period will be approximately 9,160,000 hundredweight, which
should provide $870,200 in assessment income. Income derived from
handler assessments, along with contributions ($79,800), interest
income ($6,000), and other income ($1,000) would equal expenses. The
Committee estimates that its operating reserve will be approximately
$434,303 at the beginning of the 2003-2004 fiscal period. Funds in the
reserve would be kept within the maximum permitted by the order of
approximately one fiscal years's operational expenses (Sec. 958.44).
The proposed assessment rate would continue in effect indefinitely
unless modified, suspended, or terminated by USDA upon recommendation
and information submitted by the Committee or other available
information.
Although this assessment rate would be in effect for an indefinite
period, the Committee would 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 USDA.
Committee meetings are open to the public and interested persons may
express their views at these meetings. USDA would evaluate Committee
recommendations and other available information to determine whether
modification of the assessment rate is needed. Further rulemaking would
be undertaken as necessary. The Committee's 2003-2004 budget and those
for subsequent fiscal periods would be reviewed and, as appropriate,
approved by USDA.
Initial Regulatory Flexibility Analysis
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. 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 37 handlers of Idaho-Eastern Oregon onions
who are subject to regulation under the order and approximately 250
onion producers in the regulated production area. Small agricultural
service firms are defined by the Small Business Administration (SBA)
(13 CFR 121.201) as those whose annual receipts are less than
$5,000,000, and small agricultural producers are defined as those whose
annual receipts are less than $750,000.
The Committee estimates that 32 of the 37 handlers of Idaho-Eastern
Oregon onions ship under $5,000,000 worth of onions on an annual basis.
According to the Vegetables 2002 Summary reported by the National
Agricultural Statistics Service, the total farm gate value of onions in
the regulated production area for 2002 was $93,807,000. Therefore, the
2002 average gross revenue for an onion producer in the regulated
production area was $375,228. Based on this information, it can be
concluded that the majority of handlers and producers of Idaho-Eastern
Oregon onions may be classified as small entities.
This rule would specify in the regulatory text the Committee's
fiscal period beginning July 1 of each year and ending June 30 of the
following year, and increase the assessment rate established for the
Committee for the 2003-2004 and subsequent fiscal periods from $0.08 to
$0.095 per hundredweight of onions handled, and would establish, in the
regulatory text, the Committee's fiscal period beginning July 1 of each
year and ending June 30 of the following year. The Committee
recommended an assessment rate of $0.095 per hundredweight, which is
$0.015 higher than the rate currently in effect. The quantity of
assessable onions for the 2003-2004 fiscal period is estimated at
9,160,000 hundredweight. Thus, the $0.095 rate should provide $870,200
in assessment income, which along with anticipated contributions,
interest income, and other income is balanced to cover budgeted
expenses expected to total about $957,000.
The major expenditures recommended by the Committee for the 2003-
2004 fiscal period include $10,000 for committee expenses, $148,353 for
salary expenses, $72,610 for travel/office expenses, $59,170 for
research expenses, $27,250 for export expenses, $589,617 for promotion
expenses, and $50,000 for unforeseen marketing order contingencies.
Budgeted expenses for these items in 2002-2003 were $10,000, $143,814,
$77,460, $59,550, $54,000, $675,000, and $25,000, respectively.
The Committee reviewed and unanimously recommended 2003-2004
expenditures of $957,000. This budget will increase the budget line
items for salary expenses and marketing order contingencies, and
decrease the budget line items for travel and office expenses, research
expenses, export expenses, and promotion expenses. Prior to arriving at
this budget, the Committee considered information from various sources,
including the Idaho-Eastern Oregon Onion Executive, Research, Export,
and Promotion Committees. These subcommittees discussed alternative
expenditure levels, based upon the relative value of various research
and promotion projects to the Idaho-Eastern Oregon onion industry. The
assessment rate of $0.095 per hundredweight of
[[Page 40817]]
assessable onions was then determined by taking into consideration the
estimated level of assessable shipments, other revenue sources, and the
Committee's goal of not having to use reserve funds during 2003-2004.
A review of historical information and preliminary information
pertaining to the upcoming fiscal period indicates that the producer
price for the 2003-2004 season could be about $5.00 per hundredweight.
Therefore, the estimated assessment revenue for the 2003-2004 fiscal
period as a percentage of total producer revenue could be about 1.9
percent.
This proposed rule would increase the assessment obligation imposed
on handlers. While assessments impose some additional costs on
handlers, the costs are minimal and uniform on all handlers. Some of
the additional costs may be passed on to producers. However, these
costs would be offset by the benefits derived by the operation of the
marketing order. In addition, the Committee's meetings were widely
publicized throughout the Idaho-Eastern Oregon onion industry and all
interested persons were invited to attend the meetings and participate
in Committee deliberations on all issues. Like all Committee meetings,
the April 3, and the June 12, 2003, meetings were open to the public
and all entities, both large and small, were able to express views on
this issue. Finally, interested persons are invited to submit
information on the regulatory and informational impacts of this action
on small businesses.
This proposed rule would not impose additional reporting or
recordkeeping requirements on either small or large Idaho-Eastern
Oregon 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 sector agencies.
USDA has not identified any relevant Federal rules that duplicate,
overlap, or conflict with this rule.
A small business guide on complying with fruit, vegetable, and
specialty crop marketing agreements and orders may be viewed at: http://www.ams.usda.gov/fv/moab.html <http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.ams.usda.gov/fv/moab.html>.
Any questions about the compliance
guide should be sent to Jay Guerber at the previously mentioned address
in the FOR FURTHER INFORMATION CONTACT section.
A 15-day comment period is provided to allow interested persons to
respond to this proposed rule. Fifteen days is deemed appropriate
because: (1) The 2003-2004 fiscal period begins on July 1, 2003, and
the order requires that the rate of assessment for each fiscal period
apply to all assessable onions handled during such fiscal period; (2)
the Committee needs to have sufficient funds to pay its expenses which
are incurred on a continuous basis; and (3) handlers are aware of this
action which was recommended by the Committee at a public meeting and
is similar to other assessment rate actions issued in past years.
List of Subjects in 7 CFR Part 958
Onions, Marketing agreements, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 958 is
proposed to be amended as follows:
PART 958--ONIONS GROWN IN CERTAIN DESIGNATED COUNTIES IN IDAHO, AND
MALHEUR COUNTY, OREGON
1. The authority citation for 7 CFR part 958 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
2. A new section 958.112 is added to read as follows:
Sec. 958.112 Fiscal period.
The fiscal period shall begin July 1 of each year and end June 30
of the following year, both dates inclusive.
3. Section 958.240 is revised to read as follows:
Sec. 958.240 Assessment rate.
On and after July 1, 2003, an assessment rate of $0.095 per
hundredweight is established for Idaho-Eastern Oregon onions.
Dated: July 2, 2003.
A.J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 03-17277 Filed 7-8-03; 8:45 am]
BILLING CODE 3410-02-P
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