Onions Grown in South Texas; Proposed Amendment to Marketing Order 959, 8804-8807 [2018-04076]
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Federal Register / Vol. 83, No. 41 / Thursday, March 1, 2018 / Proposed Rules
industry. The Committee ultimately
determined that 2018 expenditures of
$119,000 were appropriate, and the
recommended assessment rate and the
use of $25,000 from the carry-over
financial reserves would provide
sufficient revenue to meet its expenses.
A review of historical crop and price
information, as well as preliminary
information pertaining to the upcoming
fiscal period, indicates that the shipping
point price for the 2017 season averaged
about $21.62 per 18-pound lug of
California desert grapes handled. If the
2018 price is similar to the 2017 price,
estimated assessment revenue as a
percentage of total estimated handler
revenue would be 0.09 percent for the
2018 season ($0.020 divided by $21.62
per 18-pound lug).
This action would decrease the
assessment obligation imposed on
handlers. Assessments are applied
uniformly on all handlers, and some of
the costs may be passed on to
producers. However, decreasing the
assessment rate would reduce the
burden on handlers, and may reduce the
burden on producers. In addition, the
Committee’s meeting was widely
publicized throughout the production
area. The grape industry and all
interested persons were invited to
attend the meeting and participate in
Committee deliberations on all issues.
Like all Committee meetings, the
November 30, 2017, meeting was a
public meeting and all entities, both
large and small, were able to express
views on this issue. Finally, interested
persons are invited to submit comments
on this proposed rule, including the
regulatory and information collection
impacts of this action on small
businesses.
In accordance with the Paperwork
Reduction Act of 1995, (44 U.S.C.
Chapter 35), the Order’s information
collection requirements have been
previously approved by OMB and
assigned OMB No. 0581–0189. No
changes in those requirements are
necessary as a result of this action.
Should any changes become necessary,
they would be submitted to OMB for
approval.
This proposed rule would impose no
additional reporting or recordkeeping
requirements on either small or large
southeastern California grape 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.
AMS is committed to complying with
the E-Government Act, to promote the
use of the internet and other
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information technologies to provide
increased opportunities for citizen
access to Government information and
services, and for other purposes.
USDA has not identified any relevant
Federal rules that duplicate, overlap, or
conflict with this action.
A small business guide on complying
with fruit, vegetable, and specialty crop
marketing agreements and orders may
be viewed at: https://www.ams.usda.gov/
rules-regulations/moa/small-businesses.
Any questions about the compliance
guide should be sent to Richard Lower
at the previously-mentioned address in
the FOR FURTHER INFORMATION CONTACT
section.
A 30-day comment period is provided
to allow interested persons to respond
to this proposed rule. All written
comments timely received will be
considered before a final determination
is made on this rule.
List of Subjects in 7 CFR Part 925
Grapes, Marketing agreements,
Reporting and recordkeeping
requirements.
For the reasons set forth in the
preamble, 7 CFR part 925 is proposed to
be amended as follows:
PART 925—GRAPES GROWN IN A
DESIGNATED AREA OF
SOUTHEASTERN CALIFORNIA
1. The authority citation for part 925
continues to read as follows:
■
Authority: 7 U.S.C. 601–674.
2. Sections 925.1 through 925.69 are
designated as subpart A under a heading
to read as follows:
■
Subpart A—Order Regulating Handling
[Subpart Redesignated as Subpart B
and Amended]
3. Redesignate ‘‘Subpart—Rules and
Regulations’’ as subpart B and revise the
heading to read as follows:
■
Subpart B—Administrative
Requirements [Subpart Redesignated
as Subpart C]
4. Redesignate ‘‘Subpart—Assessment
Rates’’ as ‘‘Subpart C Assessment
Rates’’.
■ 5. Section 925.215 is revised to read
as follows:
■
§ 925.215
Assessment rate.
On and after January 1, 2018, an
assessment rate of $0.020 per 18-pound
lug is established for grapes grown in a
designated area of southeastern
California.
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Dated: February 22, 2018.
Bruce Summers,
Acting Administrator, Agricultural Marketing
Service.
[FR Doc. 2018–04010 Filed 2–28–18; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 959
[AMS–SC–17–0067; SC17–959–4]
Onions Grown in South Texas;
Proposed Amendment to Marketing
Order 959
Agricultural Marketing Service,
USDA.
ACTION: Proposed rule.
AGENCY:
This proposed rule invites
comments on a proposed amendment to
Marketing Order No. 959, which
regulates the handling of onions grown
in south Texas. The proposed
amendment would reduce the size of
the South Texas Onion Committee
(Committee) and make conforming and
clarifying amendments as needed. The
amendment would adjust the number of
handlers and producers on the
Committee to reflect a decrease in the
number of onion producers and
handlers in recent years.
DATES: Comments must be received by
April 30, 2018.
ADDRESSES: Interested persons are
invited to submit written comments
concerning this proposed rule.
Comments must be sent to the Docket
Clerk, Marketing Order and Agreement
Division, Specialty Crops Program,
AMS, USDA, 1400 Independence
Avenue SW, STOP 0237, Washington,
DC 20250–0237; Fax: (202) 720–8938; or
internet: https://www.regulations.gov. All
comments should reference the
document 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: https://
www.regulations.gov. All comments
submitted in response to this proposed
rule will be included in the record and
will be made available to the public.
Please be advised that the identity of the
individuals or entities submitting the
comments will be made public on the
internet at the address provided above.
FOR FURTHER INFORMATION CONTACT:
Geronimo Quinones, Marketing
Specialist, or Julie Santoboni,
Rulemaking Branch Chief, Marketing
SUMMARY:
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Order and Agreement Division,
Specialty Crops Program, AMS, USDA,
1400 Independence Avenue SW, Stop
0237, Washington, DC 20250–0237;
Telephone: (202) 720–2491, Fax: (202)
720–8938, or Email:
Geronimo.Quinones@ams.usda.gov or
Julie.Santoboni@ams.usda.gov.
Small businesses may request
information on complying with this
regulation by contacting Richard Lower,
Marketing Order and Agreement
Division, Specialty Crops Program,
AMS, USDA, 1400 Independence
Avenue SW, STOP 0237, Washington,
DC 20250–0237; Telephone: (202) 720–
2491, Fax: (202) 720–8938, or Email:
Richard.Lower@ams.usda.gov.
SUPPLEMENTARY INFORMATION: This
action, pursuant to 5 U.S.C. 553,
proposes an amendment to regulations
issued to carry out a marketing order as
defined in 7 CFR 900.2(j). This proposal
is issued under Marketing Order No.
959, as amended (7 CFR part 959),
regulating the handling of onions grown
in south Texas. Part 959 (referred to as
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
Committee locally administers the
Marketing Order and is comprised of
onion producers and handlers operating
within the area of production.
Section 608c(17) of the Act and the
applicable rules of practice and
procedure governing the formulation of
marketing agreements and orders (7 CFR
part 900) authorizes amendment of the
Order through this informal rulemaking
action. The Agricultural Marketing
Service (AMS) will consider comments
received in response to this proposed
rule, and based on all the information
available, will determine if the Order
amendment is warranted. If AMS
determines amendment of the Order is
warranted, a subsequent proposed rule
and notice of referendum would be
issued and producers would be allowed
to vote for or against the proposed Order
amendment. AMS would then issue a
final rule effectuating any amendments
approved by producers in the
referendum.
The Department of Agriculture
(USDA) is issuing this proposed rule in
conformance with Executive Orders
13563 and 13175. This action falls
within a category of regulatory actions
that the Office of Management and
Budget (OMB) exempted from Executive
Order 12866 review. Additionally,
because this proposed rule does not
meet the definition of a significant
regulatory action it does not trigger the
requirements contained in Executive
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Order 13771. See OMB’s Memorandum
titled ‘‘Interim Guidance Implementing
Section 2 of the Executive Order of
January 30, 2017, titled ‘Reducing
Regulation and Controlling Regulatory
Costs’ ’’ (February 2, 2017).
This proposal has been reviewed
under Executive Order 12988, Civil
Justice Reform. This rule is not intended
to have retroactive effect. This rule shall
not be deemed to preclude, preempt, or
supersede any State program covering
onions grown in south Texas.
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
no later than 20 days after the date of
entry of the ruling.
Section 1504 of the Food,
Conservation, and Energy Act of 2008
(2008 Farm Bill) (Pub. L. 110–246)
amended section 8c(17) of the Act,
which in turn required the addition of
supplemental rules of practice to 7 CFR
part 900 (73 FR 49307; August 21,
2008). The amendment of section 8c(17)
of the Act and additional supplemental
rules of practice authorize the use of
informal rulemaking (5 U.S.C. 553) to
amend Federal fruit, vegetable, and nut
marketing agreements and orders. USDA
may use informal rulemaking to amend
marketing orders based on the nature
and complexity of the proposed
amendments, the potential regulatory
and economic impacts on affected
entities, and any other relevant matters.
AMS has considered these factors and
has determined that the amendment
proposed is not unduly complex and the
nature of the proposed amendment is
appropriate for utilizing the informal
rulemaking process to amend the Order.
A discussion of the potential regulatory
and economic impacts on affected
entities is discussed later in the ‘‘Initial
Regulatory Flexibility Analysis’’ section
of this proposed rule.
The proposed amendment was
unanimously recommended by the
Committee following deliberations at a
public meeting held on June 7, 2017.
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8805
The proposal would amend the Order
by reducing the size of the Committee
from 34 to 26 members. The change
would remove one voting producer and
handler member, and one alternate
producer and handler member from
each of the two districts.
Proposal—Reduce Committee Size
Section 959.22 provides that the
Committee consists of seventeen
members, ten of whom shall be
producers and seven of whom shall be
handlers. For each member of the
Committee there shall be an alternate.
This proposal would amend § 959.22
by reducing the size of the Committee
from 34 to 26 members. The Committee
size is based on membership per
district. The Order initially established
five districts, which were reestablished
as two districts in § 959.110. Section
959.111 reapportioned the 34
Committee members between the two
districts so that District 1 was
comprised of 20 members and alternates
and District 1 was comprised of 14
members and alternates. However, due
to contractions in the size of the
industry, the Committee has had
difficulties finding nominees to fill
positions on the Committee. The change
would remove one voting producer and
handler member, and one alternate
producer and handler member from
each of the two districts (eight members
total). Conforming and clarifying
changes would also be made to
§§ 959.24, 959.26, 959.32, and
§§ 959.110 and 959.111 would be
removed.
This proposed action is necessary to
adjust the number of handlers and
producers on the Committee to reflect
industry consolidation. There has been
a decrease in the number of onion
producers and handlers over the past 15
years. The current structure of the
Committee requires 34 members, with
half the members elected on biennial
terms. Many seats remain vacant, as
finding sufficient members to nominate
has been challenging. Having a smaller
size committee would enable it to fulfill
membership and quorum requirements,
thereby ensuring a more efficient and
orderly flow of business.
For the reasons stated above, it is
proposed that § 959.22 be modified to
reduce the size of the Committee from
34 to 26 members. Conforming and
clarifying changes would also be made
to §§ 959.24, 959.26, 959.32, and
§§ 959.110 and 959.111 would be
removed.
Initial Regulatory Flexibility Analysis
Pursuant to the requirements set forth
in the Regulatory Flexibility Act (RFA)
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(5 U.S.C. 601–612), 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
businesses subject to such actions in
order that small businesses will not be
unduly or disproportionately burdened.
Marketing orders issued pursuant to the
Act, and rules issued thereunder, are
unique in that they are brought about
through group action of essentially
small entities acting on their own
behalf.
There are approximately 60 producers
of onions in the production area and
approximately 30 handlers subject to
regulation under the marketing order.
Small agricultural producers are defined
by the Small Business Administration as
those having annual receipts less than
$750,000, and small agricultural service
firms are defined as those whose annual
receipts are less than $7,500,000 (13
CFR 121.201).
Based on information from the
National Agricultural Statistics Service,
the weighted grower price for South
Texas onions during the 2015–16 season
was approximately $12.30 per 50-pound
equivalent. Furthermore, according to
Committee data, total shipments were
approximately three million 50-pound
equivalents for the 2015–16 season with
a total 2015–16 crop value estimated at
$37 million. Dividing the crop value by
the estimated number of producers (60)
yields an estimated average receipt per
producer of $617,000. This is below the
$750,000 SBA definition of small
producers. The average handler price for
South Texas onions during the 2015–16
season was approximately $14.05 per
50-pound equivalent. Multiplying the
average handler price by shipment
information of 3 million 50-pound
equivalent results in an estimated
handler-level value of $42 million.
Dividing this figure by the number of
handlers (30) yields an estimated
average annual handler receipts of $1.4
million, which is below the SBA
definition of small agricultural service
firms. Assuming a normal distribution,
the majority of producers and handlers
of South Texas onions may be classified
as small entities.
The amendment proposed by the
Committee would reduce the size of the
Committee from 34 to 26 members
under the Order. The reduction would
remove one voting producer and
handler member, and one alternate
producer and handler member from
each of the two districts.
The Committee’s proposed
amendment was unanimously
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recommended at a meeting on June 7,
2017. If this proposal is approved in
referendum, there would be no direct
financial effects on producers or
handlers. Over the past 15 years there
has been a 31-percent decrease in the
number of onion producers, and a 34percent decrease in the number of
handlers in the production area. Many
seats on the Committee remain vacant,
as it has been challenging to find
sufficient nominees. Having a smaller
size Committee would enable it to fulfill
membership and quorum requirements,
thereby ensuring a more efficient and
orderly flow of business.
The Committee believes this change
will serve the needs of the Committee
and the industry. No economic impact
is expected if the amendment is
approved because it would not establish
any regulatory requirements on
handlers, nor does it contain any
assessment or funding implications.
There would be no change in financial
costs, reporting, or recordkeeping
requirements if this proposal is
approved.
Alternatives to this proposal,
including making no changes at this
time, were considered. However, the
Committee believes that given
reductions in the size of the industry, a
smaller Committee size is necessary in
order to ensure its ability to locally
administer the program. Reducing the
size of the Committee would enable it
to fulfill membership and quorum
requirements, thereby ensuring a more
efficient and orderly flow of business.
Paperwork Reduction Act
In accordance with the Paperwork
Reduction Act of 1995 (44 U.S.C.
Chapter 35), the Order’s information
collection requirements have been
previously approved by OMB and
assigned OMB No. 0581–0178
(Vegetable and Specialty Crops). No
changes in those requirements are
necessary as a result of this action.
Should any changes become necessary,
they would be submitted to OMB for
approval.
This proposed rule would impose no
additional reporting or recordkeeping
requirements on either small or large
South Texas 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.
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
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access to Government information and
services, and for other purposes.
USDA has not identified any relevant
Federal rules that duplicate, overlap, or
conflict with this action.
The Committee’s meeting was widely
publicized throughout the South Texas
onion production area. All interested
persons were invited to attend the
meeting and encouraged to participate
in Committee deliberations on all
issues. Like all Committee meetings, the
June 7, 2017, meeting was public, and
all entities, both large and small, were
encouraged to express their views on
the proposal.
Finally, interested persons are invited
to submit comments on the proposed
amendment to the Order, including
comments on the regulatory and
information collection impacts of this
action on small businesses.
Following analysis of any comments
received on the amendment proposed in
this proposed rule, AMS will evaluate
all available information and determine
whether to proceed. If appropriate, a
proposed rule and notice of referendum
would be issued, and producers would
be provided the opportunity to vote for
or against the proposed amendment.
Information about the referendum,
including dates and voter eligibility
requirements, would be published in a
future issue of the Federal Register. A
final rule would then be issued to
effectuate any amendment favored by
producers participating in the
referendum.
A small business guide on complying
with fruit, vegetable, and specialty crop
marketing agreements and orders may
be viewed at: https://www.ams.usda.gov/
rules-regulations/moa/small-businesses.
Any questions about the compliance
guide should be sent to Richard Lower
at the previously mentioned address in
the FOR FURTHER INFORMATION CONTACT
section.
General Findings
The findings hereinafter set forth are
supplementary to the findings and
determinations which were previously
made in connection with the issuance of
Marketing Order 959; and all said
previous findings and determinations
are hereby ratified and affirmed, except
insofar as such findings and
determinations may be in conflict with
the findings and determinations set
forth herein.
1. Marketing Order 959 as hereby
proposed to be amended and all of the
terms and conditions thereof, would
tend to effectuate the declared policy of
the Act;
2. Marketing Order 959 as hereby
proposed to be amended regulates the
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handling of onions grown in South
Texas and is applicable only to persons
in the respective classes of commercial
and industrial activity specified in the
Marketing Order;
3. Marketing Order 959 as hereby
proposed to be amended is limited in
application to the smallest regional
production area which is practicable,
consistent with carrying out the
declared policy of the Act, and the
issuance of several marketing orders
applicable to subdivisions of the
production area would not effectively
carry out the declared policy of the Act;
4. Marketing Order 959 as hereby
proposed to be amended prescribes,
insofar as practicable, such different
terms applicable to different parts of the
production area as are necessary to give
due recognition to the differences in the
production and marketing of onions
produced or packed in the production
area; and
5. All handling of onions produced or
packed in the production area as
defined in Marketing Order 959 is in the
current of interstate or foreign
commerce or directly burdens,
obstructs, or affects such commerce.
A 60-day comment period is provided
to allow interested persons to respond
to this proposal. Any comments
received on the amendment proposed in
this proposed rule will be analyzed, and
if AMS determines to proceed based on
all the information presented, a
producer referendum would be
conducted to determine producer
support for the proposed amendment. If
appropriate, a final rule would then be
issued to effectuate the amendment
favored by producers participating in
the referendum.
List of Subjects in 7 CFR Part 959
Onions, Marketing agreements,
Reporting and recordkeeping
requirements.
For the reasons set forth in the
preamble, 7 CFR part 959 is proposed to
be amended as follows:
PART 959—ONIONS GROWN IN
SOUTH TEXAS
1. The authority citation for 7 CFR
part 959 continues to read as follows:
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Establishment and membership.
The South Texas Onion Committee,
consisting of thirteen members, eight of
whom shall be producers and five of
whom shall be handlers, is hereby
established. For each member of the
Committee there shall be an alternate.
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§ 959.24
[Docket No. FAA–2018–0117; Product
Identifier 2017–NM–104–AD]
Districts.
To determine a basis for selecting
Committee members, the following
districts of the production area are
hereby established:
District No. 1: (Coastal Bend-Lower
Valley) The Counties of Victoria,
Calhoun, Goliad, Refugio, Bee, Live
Oak, San Patricio, Aransas, Jim Wells,
Nueces, Kleberg, Brooks, Kenedy,
Duval, McMullen, Cameron, Hidalgo,
Starr, and Willacy in the State of Texas.
District No. 2: (Laredo-Winter Garden)
The Counties of Zapata, Webb, Jim Hogg
De Witt, Wilson, Atascosa, Karnes Val
Verde, Frio, Kinney, Uvalde, Medina,
Maverick, Zavala, Dimmit, and La Salle
in the State of Texas.
■ 4. Revise 959.26 to read as follows:
§ 959.26
Selection.
The Secretary shall select members
and respective alternates from districts
established pursuant to § 959.24 or
§ 959.25. Selections shall be as follows:
District No. 1: five producer members
and alternates; three handler members
and alternates.
District No. 2: three producer
members and alternates; two handler
members and alternates.
■ 5. Revise 959.32 paragraph (a) to read
as follows:
§ 959.32
Procedure.
(a) Nine members of the Committee
shall be necessary to constitute a
quorum. Seven concurring votes, or
two-thirds of the votes cast, whichever
is greater, shall be required to pass any
motion or approve any Committee
action. At assembled meetings all votes
shall be cast in person.
*
*
*
*
*
[Removed and
6. Remove and reserve §§ 959.110 and
959.111.
2. Revise 925.22 to read as follows:
§ 925.22
DEPARTMENT OF TRANSPORTATION
■
Authority: 7 U.S.C. 601–674.
■
Producer members and alternates shall
not have a proprietary interest in or be
employees of a handler organization.
■ 3. Revise 959.24 to read as follows:
§§ 959.110 and 959.111
Reserved]
■
8807
Dated: February 23, 2018.
Bruce Summers,
Acting Administrator, Agricultural Marketing
Service.
[FR Doc. 2018–04076 Filed 2–28–18; 8:45 am]
BILLING CODE 3410–02–P
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Federal Aviation Administration
14 CFR Part 39
RIN 2120–AA64
Airworthiness Directives; Dassault
Aviation Airplanes
Federal Aviation
Administration (FAA), DOT.
ACTION: Notice of proposed rulemaking
(NPRM).
AGENCY:
We propose to supersede
Airworthiness Directive (AD) 2017–01–
07, which applies to all Dassault
Aviation Model FAN JET FALCON
airplanes, FAN JET FALCON SERIES C,
D, E, F, and G airplanes; Model
MYSTERE–FALCON 200 airplanes;
Model MYSTERE–FALCON 20–C5, 20–
D5, 20–E5, and 20–F5 airplanes; and
MYSTERE–FALCON 50 airplanes. AD
2017–01–07 requires a functional test or
check of the main entry door closure
and warning system, and applicable
door closing inspections, adjustments,
operational tests, and corrective actions
if necessary. Since we issued AD 2017–
01–07, we have determined that the
required actions must be repetitively
performed to ensure continued safety.
This proposed AD would require
repetitive door closing inspections,
adjustments, operational tests, and
corrective actions if necessary. We are
proposing this AD to address the unsafe
condition on these products.
DATES: We must receive comments on
this proposed AD by April 16, 2018.
ADDRESSES: You may send comments,
using the procedures found in 14 CFR
11.43 and 11.45, by any of the following
methods:
• Federal eRulemaking Portal: Go to
https://www.regulations.gov. Follow the
instructions for submitting comments.
• Fax: 202–493–2251.
• Mail: U.S. Department of
Transportation, Docket Operations, M–
30, West Building Ground Floor, Room
W12–140, 1200 New Jersey Avenue SE,
Washington, DC 20590.
• Hand Delivery: Deliver to Mail
address above between 9 a.m. and 5
p.m., Monday through Friday, except
Federal holidays.
For service information identified in
this NPRM, contact Dassault Falcon Jet
Corporation, Teterboro Airport, P.O.
Box 2000, South Hackensack, NJ 07606;
telephone: 201–440–6700; internet:
https://www.dassaultfalcon.com. You
may view this referenced service
SUMMARY:
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]]>Agencies
[Federal Register Volume 83, Number 41 (Thursday, March 1, 2018)]
[Proposed Rules]
[Pages 8804-8807]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-04076]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 959
[AMS-SC-17-0067; SC17-959-4]
Onions Grown in South Texas; Proposed Amendment to Marketing
Order 959
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: This proposed rule invites comments on a proposed amendment to
Marketing Order No. 959, which regulates the handling of onions grown
in south Texas. The proposed amendment would reduce the size of the
South Texas Onion Committee (Committee) and make conforming and
clarifying amendments as needed. The amendment would adjust the number
of handlers and producers on the Committee to reflect a decrease in the
number of onion producers and handlers in recent years.
DATES: Comments must be received by April 30, 2018.
ADDRESSES: Interested persons are invited to submit written comments
concerning this proposed rule. Comments must be sent to the Docket
Clerk, Marketing Order and Agreement Division, Specialty Crops Program,
AMS, USDA, 1400 Independence Avenue SW, STOP 0237, Washington, DC
20250-0237; Fax: (202) 720-8938; or internet: https://www.regulations.gov. All comments should reference the document 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: https://www.regulations.gov. All comments submitted in response to this
proposed rule will be included in the record and will be made available
to the public. Please be advised that the identity of the individuals
or entities submitting the comments will be made public on the internet
at the address provided above.
FOR FURTHER INFORMATION CONTACT: Geronimo Quinones, Marketing
Specialist, or Julie Santoboni, Rulemaking Branch Chief, Marketing
[[Page 8805]]
Order and Agreement Division, Specialty Crops Program, AMS, USDA, 1400
Independence Avenue SW, Stop 0237, Washington, DC 20250-0237;
Telephone: (202) 720-2491, Fax: (202) 720-8938, or Email:
[email protected] or [email protected].
Small businesses may request information on complying with this
regulation by contacting Richard Lower, Marketing Order and Agreement
Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue
SW, STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-2491,
Fax: (202) 720-8938, or Email: [email protected].
SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553,
proposes an amendment to regulations issued to carry out a marketing
order as defined in 7 CFR 900.2(j). This proposal is issued under
Marketing Order No. 959, as amended (7 CFR part 959), regulating the
handling of onions grown in south Texas. Part 959 (referred to as 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 Committee locally administers the Marketing Order and is
comprised of onion producers and handlers operating within the area of
production.
Section 608c(17) of the Act and the applicable rules of practice
and procedure governing the formulation of marketing agreements and
orders (7 CFR part 900) authorizes amendment of the Order through this
informal rulemaking action. The Agricultural Marketing Service (AMS)
will consider comments received in response to this proposed rule, and
based on all the information available, will determine if the Order
amendment is warranted. If AMS determines amendment of the Order is
warranted, a subsequent proposed rule and notice of referendum would be
issued and producers would be allowed to vote for or against the
proposed Order amendment. AMS would then issue a final rule
effectuating any amendments approved by producers in the referendum.
The Department of Agriculture (USDA) is issuing this proposed rule
in conformance with Executive Orders 13563 and 13175. This action falls
within a category of regulatory actions that the Office of Management
and Budget (OMB) exempted from Executive Order 12866 review.
Additionally, because this proposed rule does not meet the definition
of a significant regulatory action it does not trigger the requirements
contained in Executive Order 13771. See OMB's Memorandum titled
``Interim Guidance Implementing Section 2 of the Executive Order of
January 30, 2017, titled `Reducing Regulation and Controlling
Regulatory Costs'[thinsp]'' (February 2, 2017).
This proposal has been reviewed under Executive Order 12988, Civil
Justice Reform. This rule is not intended to have retroactive effect.
This rule shall not be deemed to preclude, preempt, or supersede any
State program covering onions grown in south Texas.
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 no later than 20 days after the date of
entry of the ruling.
Section 1504 of the Food, Conservation, and Energy Act of 2008
(2008 Farm Bill) (Pub. L. 110-246) amended section 8c(17) of the Act,
which in turn required the addition of supplemental rules of practice
to 7 CFR part 900 (73 FR 49307; August 21, 2008). The amendment of
section 8c(17) of the Act and additional supplemental rules of practice
authorize the use of informal rulemaking (5 U.S.C. 553) to amend
Federal fruit, vegetable, and nut marketing agreements and orders. USDA
may use informal rulemaking to amend marketing orders based on the
nature and complexity of the proposed amendments, the potential
regulatory and economic impacts on affected entities, and any other
relevant matters.
AMS has considered these factors and has determined that the
amendment proposed is not unduly complex and the nature of the proposed
amendment is appropriate for utilizing the informal rulemaking process
to amend the Order. A discussion of the potential regulatory and
economic impacts on affected entities is discussed later in the
``Initial Regulatory Flexibility Analysis'' section of this proposed
rule.
The proposed amendment was unanimously recommended by the Committee
following deliberations at a public meeting held on June 7, 2017. The
proposal would amend the Order by reducing the size of the Committee
from 34 to 26 members. The change would remove one voting producer and
handler member, and one alternate producer and handler member from each
of the two districts.
Proposal--Reduce Committee Size
Section 959.22 provides that the Committee consists of seventeen
members, ten of whom shall be producers and seven of whom shall be
handlers. For each member of the Committee there shall be an alternate.
This proposal would amend Sec. 959.22 by reducing the size of the
Committee from 34 to 26 members. The Committee size is based on
membership per district. The Order initially established five
districts, which were reestablished as two districts in Sec. 959.110.
Section 959.111 reapportioned the 34 Committee members between the two
districts so that District 1 was comprised of 20 members and alternates
and District 1 was comprised of 14 members and alternates. However, due
to contractions in the size of the industry, the Committee has had
difficulties finding nominees to fill positions on the Committee. The
change would remove one voting producer and handler member, and one
alternate producer and handler member from each of the two districts
(eight members total). Conforming and clarifying changes would also be
made to Sec. Sec. 959.24, 959.26, 959.32, and Sec. Sec. 959.110 and
959.111 would be removed.
This proposed action is necessary to adjust the number of handlers
and producers on the Committee to reflect industry consolidation. There
has been a decrease in the number of onion producers and handlers over
the past 15 years. The current structure of the Committee requires 34
members, with half the members elected on biennial terms. Many seats
remain vacant, as finding sufficient members to nominate has been
challenging. Having a smaller size committee would enable it to fulfill
membership and quorum requirements, thereby ensuring a more efficient
and orderly flow of business.
For the reasons stated above, it is proposed that Sec. 959.22 be
modified to reduce the size of the Committee from 34 to 26 members.
Conforming and clarifying changes would also be made to Sec. Sec.
959.24, 959.26, 959.32, and Sec. Sec. 959.110 and 959.111 would be
removed.
Initial Regulatory Flexibility Analysis
Pursuant to the requirements set forth in the Regulatory
Flexibility Act (RFA)
[[Page 8806]]
(5 U.S.C. 601-612), 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
businesses subject to such actions in order that small businesses will
not be unduly or disproportionately burdened. Marketing orders issued
pursuant to the Act, and rules issued thereunder, are unique in that
they are brought about through group action of essentially small
entities acting on their own behalf.
There are approximately 60 producers of onions in the production
area and approximately 30 handlers subject to regulation under the
marketing order. Small agricultural producers are defined by the Small
Business Administration as those having annual receipts less than
$750,000, and small agricultural service firms are defined as those
whose annual receipts are less than $7,500,000 (13 CFR 121.201).
Based on information from the National Agricultural Statistics
Service, the weighted grower price for South Texas onions during the
2015-16 season was approximately $12.30 per 50-pound equivalent.
Furthermore, according to Committee data, total shipments were
approximately three million 50-pound equivalents for the 2015-16 season
with a total 2015-16 crop value estimated at $37 million. Dividing the
crop value by the estimated number of producers (60) yields an
estimated average receipt per producer of $617,000. This is below the
$750,000 SBA definition of small producers. The average handler price
for South Texas onions during the 2015-16 season was approximately
$14.05 per 50-pound equivalent. Multiplying the average handler price
by shipment information of 3 million 50-pound equivalent results in an
estimated handler-level value of $42 million. Dividing this figure by
the number of handlers (30) yields an estimated average annual handler
receipts of $1.4 million, which is below the SBA definition of small
agricultural service firms. Assuming a normal distribution, the
majority of producers and handlers of South Texas onions may be
classified as small entities.
The amendment proposed by the Committee would reduce the size of
the Committee from 34 to 26 members under the Order. The reduction
would remove one voting producer and handler member, and one alternate
producer and handler member from each of the two districts.
The Committee's proposed amendment was unanimously recommended at a
meeting on June 7, 2017. If this proposal is approved in referendum,
there would be no direct financial effects on producers or handlers.
Over the past 15 years there has been a 31-percent decrease in the
number of onion producers, and a 34-percent decrease in the number of
handlers in the production area. Many seats on the Committee remain
vacant, as it has been challenging to find sufficient nominees. Having
a smaller size Committee would enable it to fulfill membership and
quorum requirements, thereby ensuring a more efficient and orderly flow
of business.
The Committee believes this change will serve the needs of the
Committee and the industry. No economic impact is expected if the
amendment is approved because it would not establish any regulatory
requirements on handlers, nor does it contain any assessment or funding
implications. There would be no change in financial costs, reporting,
or recordkeeping requirements if this proposal is approved.
Alternatives to this proposal, including making no changes at this
time, were considered. However, the Committee believes that given
reductions in the size of the industry, a smaller Committee size is
necessary in order to ensure its ability to locally administer the
program. Reducing the size of the Committee would enable it to fulfill
membership and quorum requirements, thereby ensuring a more efficient
and orderly flow of business.
Paperwork Reduction Act
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
Chapter 35), the Order's information collection requirements have been
previously approved by OMB and assigned OMB No. 0581-0178 (Vegetable
and Specialty Crops). No changes in those requirements are necessary as
a result of this action. Should any changes become necessary, they
would be submitted to OMB for approval.
This proposed rule would impose no additional reporting or
recordkeeping requirements on either small or large South Texas 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.
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.
USDA has not identified any relevant Federal rules that duplicate,
overlap, or conflict with this action.
The Committee's meeting was widely publicized throughout the South
Texas onion production area. All interested persons were invited to
attend the meeting and encouraged to participate in Committee
deliberations on all issues. Like all Committee meetings, the June 7,
2017, meeting was public, and all entities, both large and small, were
encouraged to express their views on the proposal.
Finally, interested persons are invited to submit comments on the
proposed amendment to the Order, including comments on the regulatory
and information collection impacts of this action on small businesses.
Following analysis of any comments received on the amendment
proposed in this proposed rule, AMS will evaluate all available
information and determine whether to proceed. If appropriate, a
proposed rule and notice of referendum would be issued, and producers
would be provided the opportunity to vote for or against the proposed
amendment. Information about the referendum, including dates and voter
eligibility requirements, would be published in a future issue of the
Federal Register. A final rule would then be issued to effectuate any
amendment favored by producers participating in the referendum.
A small business guide on complying with fruit, vegetable, and
specialty crop marketing agreements and orders may be viewed at: https://www.ams.usda.gov/rules-regulations/moa/small-businesses. Any questions
about the compliance guide should be sent to Richard Lower at the
previously mentioned address in the FOR FURTHER INFORMATION CONTACT
section.
General Findings
The findings hereinafter set forth are supplementary to the
findings and determinations which were previously made in connection
with the issuance of Marketing Order 959; and all said previous
findings and determinations are hereby ratified and affirmed, except
insofar as such findings and determinations may be in conflict with the
findings and determinations set forth herein.
1. Marketing Order 959 as hereby proposed to be amended and all of
the terms and conditions thereof, would tend to effectuate the declared
policy of the Act;
2. Marketing Order 959 as hereby proposed to be amended regulates
the
[[Page 8807]]
handling of onions grown in South Texas and is applicable only to
persons in the respective classes of commercial and industrial activity
specified in the Marketing Order;
3. Marketing Order 959 as hereby proposed to be amended is limited
in application to the smallest regional production area which is
practicable, consistent with carrying out the declared policy of the
Act, and the issuance of several marketing orders applicable to
subdivisions of the production area would not effectively carry out the
declared policy of the Act;
4. Marketing Order 959 as hereby proposed to be amended prescribes,
insofar as practicable, such different terms applicable to different
parts of the production area as are necessary to give due recognition
to the differences in the production and marketing of onions produced
or packed in the production area; and
5. All handling of onions produced or packed in the production area
as defined in Marketing Order 959 is in the current of interstate or
foreign commerce or directly burdens, obstructs, or affects such
commerce.
A 60-day comment period is provided to allow interested persons to
respond to this proposal. Any comments received on the amendment
proposed in this proposed rule will be analyzed, and if AMS determines
to proceed based on all the information presented, a producer
referendum would be conducted to determine producer support for the
proposed amendment. If appropriate, a final rule would then be issued
to effectuate the amendment favored by producers participating in the
referendum.
List of Subjects in 7 CFR Part 959
Onions, Marketing agreements, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 959 is
proposed to be amended as follows:
PART 959--ONIONS GROWN IN SOUTH TEXAS
0
1. The authority citation for 7 CFR part 959 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. Revise 925.22 to read as follows:
Sec. 925.22 Establishment and membership.
The South Texas Onion Committee, consisting of thirteen members,
eight of whom shall be producers and five of whom shall be handlers, is
hereby established. For each member of the Committee there shall be an
alternate. Producer members and alternates shall not have a proprietary
interest in or be employees of a handler organization.
0
3. Revise 959.24 to read as follows:
Sec. 959.24 Districts.
To determine a basis for selecting Committee members, the following
districts of the production area are hereby established:
District No. 1: (Coastal Bend-Lower Valley) The Counties of
Victoria, Calhoun, Goliad, Refugio, Bee, Live Oak, San Patricio,
Aransas, Jim Wells, Nueces, Kleberg, Brooks, Kenedy, Duval, McMullen,
Cameron, Hidalgo, Starr, and Willacy in the State of Texas.
District No. 2: (Laredo-Winter Garden) The Counties of Zapata,
Webb, Jim Hogg De Witt, Wilson, Atascosa, Karnes Val Verde, Frio,
Kinney, Uvalde, Medina, Maverick, Zavala, Dimmit, and La Salle in the
State of Texas.
0
4. Revise 959.26 to read as follows:
Sec. 959.26 Selection.
The Secretary shall select members and respective alternates from
districts established pursuant to Sec. 959.24 or Sec. 959.25.
Selections shall be as follows:
District No. 1: five producer members and alternates; three handler
members and alternates.
District No. 2: three producer members and alternates; two handler
members and alternates.
0
5. Revise 959.32 paragraph (a) to read as follows:
Sec. 959.32 Procedure.
(a) Nine members of the Committee shall be necessary to constitute
a quorum. Seven concurring votes, or two-thirds of the votes cast,
whichever is greater, shall be required to pass any motion or approve
any Committee action. At assembled meetings all votes shall be cast in
person.
* * * * *
Sec. Sec. 959.110 and 959.111 [Removed and Reserved]
0
6. Remove and reserve Sec. Sec. 959.110 and 959.111.
Dated: February 23, 2018.
Bruce Summers,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2018-04076 Filed 2-28-18; 8:45 am]
BILLING CODE 3410-02-P
