[Federal Register: June 15, 2006 (Volume 71, Number 115)]
[Rules and Regulations]
[Page 34507-34510]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr15jn06-1]
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Rules and Regulations
Federal Register
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[[Page 34507]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 955
[Docket No. FV06-955-1 IFR]
Vidalia Onions Grown in Georgia; Revision of Reporting and
Assessment Requirements
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim final rule with request for comments.
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SUMMARY: This rule revises 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 changes the reporting requirements for handlers from filing
weekly shipment reports to monthly reporting. It also changes when
assessments are due and how delinquent assessments are handled. This
change is expected to benefit handlers without negatively affecting
program compliance.
DATES: Effective June 16, 2006; comments received by August 14, 2006
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,
Marketing Order Administration Branch, Fruit and Vegetable Programs,
AMS, USDA, 1400 Independence Avenue, SW., STOP 0237, Washington, DC
20250-0237; Fax: (202) 720-8938; E-mail: moab.docketclerk@usda.gov; or
Internet: http://www.regulations.gov. 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, or can be viewed at:
http://www.ams.usda.gov/fv/moab.html.
FOR FURTHER INFORMATION CONTACT: Doris Jamieson, Southeast Marketing
Field Office, Marketing Order Administration Branch, Fruit and
Vegetable Programs, AMS, USDA; telephone: (863) 324-3378, Fax: (863)
325-8793; or Christian Nissen, Regional Manager, Southeast Marketing
Field Office, Marketing Order Administration Branch, Fruit and
Vegetable Programs, AMS, USDA; telephone: (863) 324-3378, Fax: (863)
325-8793.
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.''
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. 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 revises the reporting and assessment requirements
prescribed under the order. This rule changes the reporting
requirements for handlers from filing weekly shipment reports to
monthly reporting. It also changes when assessments are due and how
delinquent assessments are handled. This change is 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 amends Sec. 955.101 to require handlers to file shipping
reports on a monthly basis rather than weekly. This rule also revises
Sec. 955.142 to specify when assessments are due and to adjust the way
interest is applied to delinquent assessments.
Prior to this rule, Sec. 955.101 required handlers to provide the
Committee with information regarding the volume of Vidalia onions they
received and
[[Page 34508]]
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 has been
receiving 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 current reporting requirements,
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 data base 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 if
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 will reflect that
information. The handler can then be notified a report is due.
The Committee has also hired a part-time compliance officer. The
compliance officer will visit handlers on a routine basis throughout
the season to ensure compliance with the order, including the timely
submission of reports and payment of assessments.
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 the adjustments to its compliance and
assessment collection process and the addition of a compliance officer
will 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 revises 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 changes 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 makes changes to 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 revises Sec. 955.142 by
adjusting the way interest charges are applied so 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.
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 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 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 revises the reporting and assessment requirements
prescribed under the order. This rule changes the reporting
requirements for handlers
[[Page 34509]]
from filing weekly shipment reports to monthly reporting. It also
changes when assessments are due and how delinquent assessments are
handled. This change reduces the number of reports a handler must
submit annually and is expected to benefit handlers without negatively
affecting program compliance. This rule revises 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 reduces 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 reduces 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 current regulation. However, the change to monthly reporting would
reduce the number of reports a handler must submit annually and the
Committee believes it would benefit 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.
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 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 sectors.
AMS is committed to compliance with the Government Paperwork
Elimination Act (GPEA), which requires Government agencies in general
to provide the public the option of submitting information or
transacting business electronically to the maximum extent possible.
In addition, 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. 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: 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.
This rule revises the provisions requiring handlers to file
shipment reports from weekly reporting to monthly reporting. It also
changes when assessments are due and how delinquent assessments are
handled. Any comments received will be considered prior to finalization
of this rule.
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.
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) Vidalia onion handlers began shipping onions April 17; (2)
this issue has been widely discussed at industry meetings, and the
Committee has kept the industry well informed; (3) the Committee
unanimously recommended these changes at a public meeting and
interested parties had an opportunity to provide input; and (4) this
rule provides a 60-day comment period and any comments received will be
considered prior to finalization of this rule.
List of Subjects in 7 CFR Part 955
Onions, Marketing agreements, Reporting and recordkeeping
requirements.
0
For the reasons set forth in the preamble, 7 CFR part 955 is amended as
follows:
PART 955--VIDALIA ONIONS GROWN IN GEORGIA
0
1. The authority citation for 7 CFR part 955 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. Amend Sec. 955.101 by replacing the word ``weekly'' with the word
``monthly'' both times it appears in paragraph (a) and by revising
paragraph (b) to read as follows:
Sec. 955.101 Vidalia Onion Handler Report.
(a) * * *
(b) Handlers shall file reports each fiscal period beginning the
first month they make shipments and shall continue filing reports until
they submit a final report for the season. Each such report shall be
filed with the Committee not later than 5 p.m. on the fifth day of each
month following the month in which any shipments were made. Should the
fifth day of the month fall on a weekend or holiday, reports are due by
the first business day prior to the fifth day of the month.
0
3. Revise Sec. 955.142 to read as follows:
Sec. 955.142 Delinquent assessments.
Each handler shall submit assessments to the Vidalia Onion
Committee on a monthly basis for each month during the fiscal period in
which they made shipments. Each such assessment shall be paid to the
Committee not later than 5 p.m. on the fifth day of each month
following the month in which any shipments were
[[Page 34510]]
made. Should the fifth day of the month fall on a weekend or holiday,
assessments are due by the first business day prior to the fifth day of
the month.
Each handler shall pay interest of one percent per month on any
unpaid assessments levied pursuant to Sec. 955.42 and on any accrued
unpaid interest beginning the day immediately after the date the
monthly assessments were due, until the delinquent handler's
assessments, plus applicable interest, has been paid in full.
Dated: June 8, 2006.
Kenneth C. Clayton,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. E6-9235 Filed 6-14-06; 8:45 am]
BILLING CODE 3410-02-P