[Federal Register: October 3, 2006 (Volume 71, Number 191)]
[Rules and Regulations]
[Page 58249-58252]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr03oc06-3]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 955
[Docket No. FV06-955-1 FIR]
Vidalia Onions Grown in Georgia; Revision of Reporting and
Assessment Requirements
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: The Department of Agriculture (USDA) is adopting, as a final
rule, without change, an interim final rule changing the reporting and
assessment requirements under the marketing order for Vidalia onions
grown in Georgia (order). The order regulates the handling of Vidalia
onions grown in Georgia and is administered locally by the Vidalia
Onion Committee (Committee). This rule continues in effect the action
that changed the reporting requirements for handlers from filing weekly
shipment reports to monthly reporting. It also continues in effect a
change in when assessments are due and how delinquent assessments are
handled. These changes are expected to benefit handlers without
negatively affecting program compliance.
DATES: Effective Date: November 2, 2006.
FOR FURTHER INFORMATION CONTACT: Doris Jamieson, Marketing Specialist,
or Christian Nissen, Regional Manager, Southeast Marketing Field
Office, Marketing Order Administration Branch, Fruit and Vegetable
Programs,
[[Page 58250]]
AMS, USDA; telephone: (863) 324-3375, fax: (863) 325-8793, or e-mail:
Doris.Jamieson@usda.gov, or Christian.Nissen@usda.gov.
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.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement and Order No. 955, both as amended (7 CFR part 955),
regulating the handling of Vidalia onions grown in Georgia, 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.''
USDA 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 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. A
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 rule continues in effect the action that revised the reporting
and assessment requirements prescribed under the order. This rule
continues in effect to change the reporting requirements for handlers
from filing weekly shipment reports to monthly reporting. It also
continues in effect to change when assessments are due and how
delinquent assessments are handled. These changes are expected to
benefit handlers without negatively affecting program compliance. The
Committee unanimously recommended these changes at a meeting on January
19, 2006.
Section 955.60 of the order provides authority for the Committee to
require handlers to file reports and provide other information as may
be necessary for the Committee to perform its duties. Section 955.101
of the regulations provides the requisite reporting requirements. Prior
to this action, handlers were required to file weekly reports that
included, among other things, the name and address of the handler, the
period covered in the report, the total volume of Vidalia onions
received by the handler, and the handler's total fresh market
shipments.
Section 955.42 provides the authority for the formulation of an
annual budget of expenses and the collection of assessments from
handlers to administer the order. Section 955.42(f) provides the
authority to impose a late payment charge or an interest charge or
both, on any handler who fails to pay assessments in a timely manner
and the authority to establish the time and rate of such charges.
Section 955.142 of the rules and regulations outlines the procedures
for applying interest charges to delinquent assessments.
This rule continues in effect the action that revised Sec. 955.101
to require handlers to file shipping reports on a monthly basis rather
than weekly. This rule also continues in effect the action that revised
Sec. 955.142 to specify when assessments are due and to adjust the way
interest is applied to delinquent assessments.
Previously, Sec. 955.101 required handlers to provide the
Committee with information regarding the volume of Vidalia onions they
received and shipped during each week of the shipping season. The
shipping reports were to be filed no later than 4 p.m. on the Tuesday
immediately following the shipping week. The Committee provided a form
to assist handlers with supplying the required shipping information.
Fresh Vidalia onions are primarily shipped from April through June with
some limited shipments through December with the use of Controlled
Atmosphere storage.
Handler reports are used by the Committee to calculate the
assessments owed by each handler. When handler reports are not received
in a timely manner, it delays the receipt of assessment payments and in
turn, the collection process the Committee uses to pursue late
payments. Thus, timely receipt of handler reports is important.
In 2002, the Committee changed from monthly reporting and
assessment collection to weekly (67 FR 58511). This change was made to
address the problems the Committee staff was experiencing in receiving
monthly reports and assessment payments in a timely manner. The change
was made in an effort to provide an earlier indication to Committee
staff of potential problems with handlers not reporting or paying their
assessments so these potential problems could be addressed before the
amounts involved grew to significant levels.
After several seasons of weekly reporting, the Committee received
requests from the industry to return to monthly reporting. It was
reported that several handlers considered weekly reporting too
cumbersome and unnecessary. In discussing this issue, Committee members
stated that during harvest, handlers utilize all their resources to get
the onions harvested and to market. They stated that weekly reporting
is very time consuming and puts an additional burden on their staff to
ensure weekly reports are submitted on time to avoid penalties and
interest. In addition, many handlers do not ship onions every week of
the season. Nevertheless, under the reporting requirements then in
effect, handlers had to file a report each week.
Committee members recognized that monthly reporting would reduce
Committee expenditures. The Committee also recognized that several
adjustments have been made in the compliance and assessment collection
process which have helped address some of the problems relating to late
reporting and assessment collection. The Committee has implemented an
electronic tracking system to ensure all reports and assessment
payments are received from each handler. A database has been created
with each handler's name and the date reports are due. As reports are
received from each handler, the data is entered into the computer. A
detailed report listing all handlers, the date reports are due, and
whether all handlers have submitted reports for each due date can be
generated to assist with compliance efforts. If a handler fails to file
a report for a specific reporting date, the tracking report reflects
that information. The handler can then be notified that a report is
due.
The Committee has also hired a part-time compliance officer. The
compliance officer visits handlers on a routine basis throughout the
season to ensure compliance with the order, including the timely
submission of reports and payment of assessments.
[[Page 58251]]
Further, the Committee's compliance plan has been modified to
better address late reports and assessment payments. Consequently, the
Committee follows up more rapidly on late reports and assessments.
These efforts will help prevent an accumulation of a large assessment
debt from handlers.
The Committee believes that the adjustments to its compliance and
assessment collection process and the addition of a compliance officer
better address the problems with late payment and reporting that were
experienced previously during monthly reporting. Therefore, the
Committee voted unanimously to return to monthly reporting.
This rule also continues in effect to revise the rules and
regulations specifying when reports and assessments are to be received
by the Committee office. Prior to this change, handler reports and
assessments were both due at 4 p.m. the Tuesday immediately following
the week in which the shipments were made. This action continues in
effect to change Sec. Sec. 955.101 and 955.142 to require that reports
and assessments must be submitted to the Committee office by 5 p.m. on
the fifth day of each month following a month of active shipping.
Should the fifth day of the month fall on a weekend or holiday,
payments and reports are due by the first business day prior to the
fifth day of the month.
This rule also continues in effect to change the way delinquent
assessments are handled to reflect the change to monthly reporting.
Previously, Sec. 955.142 specified that handlers must pay interest
charges of 1 percent per week on any unpaid assessments and on any
accrued unpaid interest beginning the day immediately after the date
the weekly assessments were due, until the delinquent handler's
assessments, plus applicable interest, had been paid in full. This rule
continues in effect to revise Sec. 955.142 by adjusting the way
interest charges are applied so that interest accrues at 1 percent per
month on any unpaid assessments and on any accrued unpaid interest
beginning the day immediately after the date the monthly assessments
are due until the delinquent handler's assessments plus applicable
interest has been paid in full.
Final 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 action on small entities. Accordingly, AMS has
prepared this final 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 100 producers of Vidalia onions in the
production area and approximately 100 handlers of Vidalia onions who
are subject to regulation under the marketing order. Small agricultural
producers are defined by the Small Business Administration (SBA) as
those having annual receipts of less than $750,000, and small
agricultural service firms, which include handlers, are defined as
those whose annual receipts are less than $6,500,000 (13 CFR 121.201).
Based on the Georgia Agricultural Statistical Service and Committee
data, the average annual grower price for fresh Vidalia onions during
the 2005 season was around $12 per 40-pound bag. Total Vidalia onion
shipments for the 2005 season were around 3,571,500 40-pound bags.
Using available data, more than 90 percent of Vidalia onion handlers
could be considered small businesses under the SBA definition. In
addition, based on acreage, production, grower prices as reported by
the National Agricultural Statistics Service, and the total number of
Vidalia onion growers, the average annual grower revenue is below
$750,000. Thus, the majority of handlers and producers of Vidalia
onions may be classified as small entities.
This rule continues in effect the action that revised the reporting
and assessment requirements prescribed under the order. This rule
continues in effect to change the reporting requirements for handlers
from filing weekly shipment reports to monthly reporting. It also
continues in effect to change when assessments are due and how
delinquent assessments are handled. These changes reduce the number of
reports a handler must submit annually and are expected to benefit
handlers without negatively affecting program compliance. This rule
continues in effect to revise Sec. Sec. 955.101 and 955.142. Authority
for this action is provided for in Sec. Sec. 955.42 and 955.60 of the
order. This change was unanimously recommended by the Committee at a
meeting held on January 19, 2006.
Requiring handlers to file shipping reports on a monthly basis
rather than weekly reduces the reporting burden on both small and large
handlers. Fresh Vidalia onions are primarily shipped from April through
June with some limited shipments through December. Therefore, total
reporting requirements per handler for weekly reporting totaled around
60 minutes per handler annually (5 minutes per response times
approximately 12 responses). This resulted in a total annual industry
burden of about 100 hours (60 minutes per handler times 100 handlers).
Requiring handlers to report monthly decreases the annual burden on
a handler to around 15 minutes annually (5 minutes per response times
approximately 3 responses), for a total annual industry burden of
approximately 25 hours (15 minutes times 100 handlers). Thus, the total
annual burden for handlers is decreased by around 75 hours, which is
expected to benefit all handlers.
This rule is not expected to result in any additional costs for
handlers. This rule continues in effect to reduce the number of reports
and assessment payments handlers are required to submit annually, which
reduces the amount of time necessary for handlers to file reports and
assessments.
It also continues in effect to reduce the amount of time required
by the Committee staff to monitor shipping reports and assessment
payments by reducing the number of submissions. Thus, this rule offers
the potential for cost savings. The potential reduction in Committee
costs would benefit all handlers regardless of their size.
Consequently, the benefits of this rule are expected to be equally
available to all.
The Committee did consider the alternative of making no change in
the regulation. However, the change to monthly reporting reduces the
number of reports a handler must submit annually and the Committee
believes it benefits handlers without negatively affecting program
compliance. Therefore, this alternative was rejected and the Committee
unanimously agreed to return to monthly reporting and assessment
collection requirements.
The AMS is committed to complying with the E-Government Act, to
promote the use of the Internet and other information technologies to
provide increased opportunities for citizen access to Government
information and services, and for other purposes.
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
Chapter 35), the information collection requirements contained in this
rule have been previously approved by the Office of Management and
Budget (OMB) and
[[Page 58252]]
assigned OMB No. 0581-0178, Vegetable and Specialty Crops. 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. In addition, as noted in the initial
regulatory flexibility analysis, USDA 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 January 19, 2006, meeting was a public meeting
and all entities, both large and small, were able to express their
views on this issue.
An interim final rule concerning this action was published in the
Federal Register on June 15, 2006. Copies of the rule were mailed by
the Committee's staff to all Committee members and Vidalia onion
handlers. In addition, the rule was made available through the Internet
by USDA and the Office of the Federal Register. That rule provided for
a 60-day comment period which ended August 14, 2006. No comments were
received.
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.
Any questions about the compliance
guide should be sent to Jay Guerber at the previously mentioned 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
finalizing the interim final rule, without change, as published in the
Federal Register (71 FR 34507, June 15, 2006) will tend to effectuate
the declared policy of the Act.
List of Subjects in 7 CFR Part 955
Onions, Marketing agreements, Reporting and recordkeeping
requirements.
PART 955--VIDALIA ONIONS GROWN IN GEORGIA
0
Accordingly, the interim final rule amending 7 CFR part 955 which was
published at 71 FR 34507 on June 15, 2006, is adopted as a final rule
without change.
Dated: September 27, 2006.
Kenneth C. Clayton,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. E6-16257 Filed 10-2-06; 8:45 am]
BILLING CODE 3410-02-P