Sweet Onions Grown in the Walla Walla Valley of Southeast Washington and Northeast Oregon; Increased Assessment Rate, 69876-69879 [2023-22331]
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69876
Federal Register / Vol. 88, No. 194 / Tuesday, October 10, 2023 / Rules and Regulations
the benefits derived by the operation of
the Order.
The Committee’s meetings are widely
publicized throughout the production
area. The olive industry and all
interested persons are invited to attend
the meetings and participate in
Committee deliberations on all issues.
Like all Committee meetings, the
December 13, 2022, meeting was a
public meeting and all entities, both
large and small, were able to express
views on this issue. In addition,
interested persons were invited to
submit comments on this 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. 0581–0178 Vegetable
and Specialty Crops. No changes are
necessary in those requirements as a
result of this action. Should any changes
become necessary, they will be
submitted to OMB for approval.
This final rule will not impose any
additional reporting or recordkeeping
requirements on either small or large
California olive 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.
AMS has not identified any relevant
Federal rules that duplicate, overlap, or
conflict with this action.
A proposed rule concerning this
action was published in the Federal
Register on June 16, 2023 (88 FR 39374).
Copies of the proposed rule were also
mailed or sent via email to California
olive handlers. A copy of the proposed
rule was made available through the
internet by AMS via https://
www.regulations.gov. A 30-day
comment period ending July 17, 2023,
was provided for interested persons to
respond to the proposal. No comments
were received. Accordingly, no changes
have been made to the rule as proposed.
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
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sent to Richard Lower at the previously
mentioned address in the FOR FURTHER
INFORMATION CONTACT section.
After consideration of all relevant
material presented, including the
information and recommendations
submitted by the Committee and other
available information, AMS has
determined that this rule tends to
effectuate the declared policy of the Act.
List of Subjects in 7 CFR Part 932
Marketing agreements, Olives,
Reporting and recordkeeping
requirements.
For the reasons set forth in the
preamble, the Agricultural Marketing
Service amends 7 CFR part 932 as
follows:
PART 932—OLIVES GROWN IN
CALIFORNIA
1. The authority citation for 7 CFR
part 932 continues to read as follows:
■
Authority: 7 U.S.C. 601–674.
2. Section 932.230 is revised to read
as follows:
■
§ 932.230
Assessment rate.
On and after January 1, 2023, an
assessment rate of $35.00 per ton is
established for California olives.
Erin Morris,
Associate Administrator, Agricultural
Marketing Service.
[FR Doc. 2023–22332 Filed 10–6–23; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 956
[Doc. No. AMS–SC–23–0006]
Sweet Onions Grown in the Walla
Walla Valley of Southeast Washington
and Northeast Oregon; Increased
Assessment Rate
Agricultural Marketing Service,
USDA.
ACTION: Final rule.
AGENCY:
This rule implements a
recommendation from the Walla Walla
Sweet Onion Marketing Committee
(Committee) to increase the assessment
rate established for the 2023 and
subsequent fiscal periods. The
assessment rate will remain in effect
indefinitely unless modified,
suspended, or terminated.
DATES: Effective November 9, 2023.
FOR FURTHER INFORMATION CONTACT: Dale
Novotny, Marketing Specialist, or Gary
SUMMARY:
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Olson, Chief, West Region Branch,
Market Development Division, Specialty
Crops Program, AMS, USDA;
Telephone: (503) 326–2724, or Email:
DaleJ.Novotny@usda.gov or
GaryD.Olson@usda.gov.
Small businesses may request
information on complying with this
regulation by contacting Richard Lower,
Market Development Division, Specialty
Crops Program, AMS, USDA, 1400
Independence Avenue SW, STOP 0237,
Washington, DC 20250–0237;
Telephone: (202) 720–8085, or Email:
Richard.Lower@usda.gov.
SUPPLEMENTARY INFORMATION: This
action, pursuant to 5 U.S.C. 553,
amends regulations issued to carry out
a marketing order as defined in 7 CFR
900.2(j). This rule is issued under
Marketing Agreement and Order No.
956, both as amended (7 CFR part 956),
regulating the handling of sweet onions
grown in the Walla Walla Valley of
southeast Washington and northeast
Oregon. Part 956 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
Order and is comprised of producers
and handlers of Walla Walla sweet
onions operating within the area of
production, and a public member.
The Agricultural Marketing Service
(AMS) is issuing this rule in
conformance with Executive Orders
12866, 13563, and 14094. Executive
Orders 12866 and 13563 direct agencies
to assess all costs and benefits of
available regulatory alternatives and, if
regulation is necessary, to select
regulatory approaches that maximize
net benefits (including potential
economic, environmental, public health
and safety effects, distributive impacts,
and equity). Executive Order 13563
emphasizes the importance of
quantifying both costs and benefits,
reducing costs, harmonizing rules, and
promoting flexibility. Executive Order
14094 reaffirms, supplements, and
updates Executive Order 12866 and
further directs agencies to solicit and
consider input from a wide range of
affected and interested parties through a
variety of means. This action falls
within a category of regulatory actions
that the Office of Management and
Budget (OMB) exempted from Executive
Order 12866 review.
This rule has been reviewed under
Executive Order 13175—Consultation
and Coordination with Indian Tribal
Governments, which requires agencies
to consider whether their rulemaking
actions would have Tribal implications.
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AMS has determined that this rule is
unlikely to have substantial direct
effects on one or more Indian Tribes, on
the relationship between the Federal
Government and Indian Tribes, or on
the distribution of power and
responsibilities between the Federal
Government and Indian Tribes.
This rule has been reviewed under
Executive Order 12988—Civil Justice
Reform. Under the Order now in effect,
Walla Walla sweet onion handlers are
subject to assessments. Funds to
administer the Order are derived from
such assessments. It is intended that the
assessment rate will be applicable to all
assessable Walla Walla sweet onions for
the 2023 fiscal period, and continue
until amended, suspended, or
terminated.
The Act provides that administrative
proceedings must be exhausted before
parties may file suit in court. Under
section 608c(15)(A) of the Act, any
handler subject to an order may file
with the 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 rule increases the assessment
rate for Walla Walla sweet onions
handled under the Order from $0.15 per
50-pound bag or equivalent, the rate that
was established for the 2020 and
subsequent fiscal periods, to $0.20 per
50-pound bag or equivalent for the 2023
and subsequent fiscal periods.
The Order authorizes the Committee,
with the approval of AMS, to formulate
an annual budget of expenses and
collect assessments from handlers to
administer the program. The members
of the Committee are familiar with the
Committee’s needs and with the costs of
goods and services in their local area
and are able to formulate an appropriate
budget and assessment rate. The
assessment rate is formulated and
discussed in a public meeting, and all
directly affected persons have an
opportunity to participate and provide
input.
For the 2020 and subsequent fiscal
periods, the Committee recommended,
and AMS approved, an assessment rate
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of $0.15 per 50-pound bag or equivalent
of Walla Walla sweet onions. That rate
continues in effect from fiscal period to
fiscal period until modified, suspended,
or terminated by AMS upon
recommendation and information
submitted by the Committee or other
information available to AMS.
The Committee met on December 5,
2022, and unanimously recommended
2023 fiscal period expenditures of
$70,400 and an assessment rate of $0.20
per 50-pound bag or equivalent of Walla
Walla sweet onions handled for the
2023 and subsequent fiscal periods. In
comparison, last year’s budgeted
expenditures were $85,270. The
proposed assessment rate of $0.20 per
50-pound bag or equivalent is $0.05
higher than the rate currently in effect.
The Committee recommended
increasing the assessment rate to better
fund operations using assessment
revenue and reduce the reliance on
reserve funds. The Committee has
drawn down its financial reserve in
recent years to cover Committee
expenses and to reduce the reserve to
not exceed approximately two fiscal
periods’ budgeted expenses, in
conformance with the Order (7 CFR
956.44(a)). The Committee projects
handler receipts of 262,500 50-pound
bags or equivalent of assessable Walla
Walla sweet onions for the 2023 fiscal
period, which is 16,150 50-pound bags
or equivalent more than was projected
for the 2022 fiscal period.
The major expenditures budgeted by
the Committee for the 2023 fiscal period
include $43,400 for administrative
expenses, $17,000 for promotions,
$5,000 for research, and $5,000 for
Committee travel. Budgeted
expenditures for the 2022 fiscal period
were $43,400, $31,870, $5,000, and
$4,000, respectively.
Walla Walla sweet onions harvested
in 2023 will be marketed mostly in the
spring and summer of the 2023 fiscal
period, which follows the calendar year.
The expected 262,500 50-pound bags or
equivalent of Walla Walla sweet onions
from the 2023 crop will generate
$52,500 in assessment revenue at the
increased assessment rate (262,500 50pound bags or equivalent of Walla Walla
sweet onions multiplied by $0.20
assessment rate). The remaining $17,900
needed to cover budgeted expenditures
will come from reserve funds carried
over from previous fiscal periods. The
2023 fiscal period assessment rate
increase will be appropriate to ensure
the Committee has sufficient revenue,
along with its reserve, to fully fund its
2023 fiscal period budgeted
expenditures and maintain a level of
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69877
reserve funds that the Committee
believes is appropriate.
The Committee derived the
recommended assessment rate by
considering anticipated fiscal period
expenses, an estimated 2023 crop
volume of 262,500 50-pound bags or
equivalent of assessable Walla Walla
sweet onions, and the amount of funds
available in the authorized reserve.
Income derived from handler
assessments ($52,500) and funds from
the Committee’s authorized reserve
($17,900) will be adequate to cover
budgeted expenses ($70,400).
The assessment rate will continue in
effect indefinitely unless modified,
suspended, or terminated by AMS upon
recommendation and information
submitted by the Committee or other
available information.
Although this assessment rate will be
in effect for an indefinite period, the
Committee will 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
AMS. Committee meetings are open to
the public and interested persons may
express their views at these meetings.
AMS 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 2023 budget, and those for
subsequent fiscal periods, will be
reviewed and, as appropriate, approved
by AMS.
Final Regulatory Flexibility Analysis
Pursuant to requirements set forth in
the Regulatory Flexibility Act (RFA) (5
U.S.C. 601–612), AMS has considered
the economic impact of this rule on
small entities. Accordingly, AMS
prepared this final 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 the 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 15 producers
of Walla Walla sweet onions in the
production area and 11 handlers subject
to regulation under the Order. Small
agricultural producers of Walla Walla
sweet onions are defined by the Small
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Business Administration (SBA) as those
having annual receipts of less than
$3,750,000, and small agricultural
service firms are defined as those whose
annual receipts are less than
$34,000,000 (13 CFR 121.201).
According to the National
Agricultural Statistics Service (NASS),
the average annual producer price
received for dry and fresh market onions
sold in Washington between 2018 and
2021 ranged from $9.13 to $13.30 per
hundredweight. The average over those
years was approximately $10.88 per
hundredweight, or $5.44 per 50-pound
bag or equivalent. Total production of
Walla Walla sweet onions for the 2022
season was reported by the Committee
to be 299,993 50-pound bags or
equivalent. Using the average price from
2018–2021, the most recent years for
which there is NASS data, the total 2022
crop value of Walla Walla sweet onions
could therefore be estimated to be
$1,631,962 (299,993 50-pound bags or
equivalent multiplied by $5.44 per 50pounds). Dividing the crop value by the
estimated number of producers (15)
yields an estimated average receipt per
producer of $108,797, which is well
below the SBA threshold for small
producers.
In addition, according to USDA
Market News data, the reported average
2021 terminal market price for Walla
Walla sweet onions was $35 per 40pound carton. Multiplying this figure by
1.25 to adjust for a 50-pound bag or
equivalent yields an average 2021
terminal market price of $43.75 per 50pound bag or equivalent. Multiplying
the 2022 Walla Walla sweet onion
production of 299,993 50-pound bags or
equivalent by the estimated average
price per 50-pound bag or equivalent of
$43.75 equals $13,124,694. Dividing this
figure by the 11 regulated handlers
yields estimated average annual handler
receipts of $1,193,154 ($13,124,694
divided by 11 handlers), which is below
the SBA threshold for small agricultural
service firms. Therefore, using the above
data, all of the producers and handlers
of Walla Walla sweet onions may be
classified as small entities.
This final rule increases the
assessment rate collected from handlers
for the 2023 and subsequent fiscal
periods from $0.15 to $0.20 per 50pound bag or equivalent of Walla Walla
sweet onions. The Committee
unanimously recommended 2023 fiscal
period expenditures of $70,400 and an
assessment rate of $0.20 per 50-pound
bag or equivalent of Walla Walla sweet
onions. The assessment rate of $0.20 is
$.05 higher than the current rate. The
Committee expects the industry to
handle 262,500 50-pound bags or
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equivalent of Walla Walla sweet onions
during the 2023 fiscal period. Thus, the
$0.20 per 50-pound bag or equivalent
rate will provide $52,500 in assessment
income (262,500 50-pound bags or
equivalent multiplied by $0.20). The
Committee also expects to use $17,900
from its financial reserve to cover
remaining expenses. Income derived
from handler assessments, along with
reserve funds, will be adequate to meet
budgeted expenditures for the 2023
fiscal period.
The major expenditures budgeted by
the Committee for the 2023 fiscal period
include $43,400 for administrative
expenses, $17,000 for promotions,
$5,000 for research, and $5,000 for
Committee travel. Budgeted
expenditures for the 2022 fiscal period
were $43,400, $31,870, $5,000 and
$4,000, respectively.
In recent years, the Committee has
utilized reserve funds to partially fund
its budgeted expenditures. The
Committee recommended increasing the
assessment rate to better fund 2023
fiscal period budgeted expenditures and
refrain from excessively drawing down
the funds held in its reserve. This action
will maintain the Committee’s reserve
balance at a level that the Committee
believes is appropriate and is compliant
with the provisions of the Order.
Prior to arriving at this budget and the
current assessment rate, the Committee
discussed various alternatives,
including maintaining the current
assessment rate of $0.15 per 50-pound
bag or equivalent and increasing the
assessment rate by different amounts.
The Committee determined that the
recommended increased assessment rate
will be able to fund most of the
budgeted expenses and avoid drawing
down reserves at an unsustainable rate.
The assessment rate of $0.20 per 50pound bag or equivalent of Walla Walla
sweet onions was derived by
considering anticipated expenses, the
projected volume of assessable Walla
Walla sweet onions, the projected
monetary balance held in reserve, and
additional pertinent factors.
A review of NASS information
indicates that the average producer
price for the 2018–21 fiscal period was
$5.44 per 50-pound bag or equivalent.
Further, the Committee reported the
quantity of assessable Walla Walla
sweet onions harvested in the 2022
fiscal period was 299,993 50-pound bags
or equivalent, which yields estimated
total producer revenue for 2022 of
$1,631,962 ($5.44 per 50-pound bag or
equivalent multiplied by 299,993).
Therefore, utilizing the assessment rate
of $0.20 per 50-pound bag or equivalent,
assessment revenue for the 2022 fiscal
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period, as a percentage of total producer
revenue, will be approximately 3.68
percent ($0.20 multiplied by 299,993
per 50-pound bags or equivalent divided
by $1,631,962 and multiplied by 100).
This action increases 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,
these costs are expected to be offset by
the benefits derived by the operation of
the Order.
The Committee’s meetings are widely
publicized throughout the production
area. The Walla Walla sweet onion
industry and all interested persons are
invited to attend the meetings and
participate in Committee deliberations
on all issues. Like all Committee
meetings, the December 5, 2022,
meeting was a public meeting and all
entities, both large and small, were able
to express views on this issue. Finally,
interested persons were invited to
submit comments on this 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. 0581–0178,
Vegetable and Specialty Crops. No
changes in those requirements will be
necessary as a result of this rule. Should
any changes become necessary, they
would be submitted to OMB for
approval.
This rule will not impose any
additional reporting or recordkeeping
requirements on either small or large
Walla Walla sweet 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.
AMS has not identified any relevant
Federal rules that duplicate, overlap, or
conflict with this rule.
A proposed rule concerning this
action was published in the Federal
Register on June 16, 2023 (88 FR 39377).
Copies of the proposed rule were also
mailed or sent via email to all Walla
Walla sweet onion handlers. A copy of
the proposed rule was made available
through the internet by AMS via https://
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Federal Register / Vol. 88, No. 194 / Tuesday, October 10, 2023 / Rules and Regulations
www.regulations.gov. A 30-day
comment period ending July 17, 2023,
was provided for interested persons to
respond to the proposal. No comments
were received. Accordingly, no changes
have been made to the rule as proposed.
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.
After consideration of all relevant
material presented, including the
information and recommendations
submitted by the Committee and other
available information, AMS has
determined that this rule tends to
effectuate the declared policy of the Act.
DEPARTMENT OF JUSTICE
List of Subjects in 7 CFR Part 956
SUMMARY:
Marketing agreements, Onions,
Reporting and recordkeeping
requirements.
For the reasons set forth in the
preamble, the Agricultural Marketing
Service amends 7 CFR part 956 as
follows:
PART 956—SWEET ONIONS GROWN
IN THE WALLA WALLA VALLEY OF
SOUTHEAST WASHINGTON AND
NORTHEAST OREGON
1. The authority citation for 7 CFR
part 956 continues to read as follows:
■
Authority: 7 U.S.C. 601–674.
■
2. Revise § 956.202 to read as follows:
§ 956.202
Assessment rate.
On and after January 1, 2023, an
assessment rate of $0.20 per 50-pound
bag or equivalent is established for
Walla Walla sweet onions.
Erin Morris,
Associate Administrator, Agricultural
Marketing Service.
[FR Doc. 2023–22331 Filed 10–6–23; 8:45 am]
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Drug Enforcement Administration
21 CFR Part 1307
[Docket No. DEA–407]
RIN 1117–AB40 and 1117–AB78
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
Overview
Second Temporary Extension of
COVID–19 Telemedicine Flexibilities
for Prescription of Controlled
Medications
Drug Enforcement
Administration, Department of Justice;
Substance Abuse and Mental Health
Services Administration, Department of
Health and Human Services.
ACTION: Temporary rule.
AGENCY:
On March 1, 2023 the Drug
Enforcement Administration (DEA), in
concert with the Department of Health
and Human Services (HHS),
promulgated two notices of proposed
rulemakings (NPRMs) soliciting
comments on proposals to allow for
prescribing of controlled medications
pursuant to the practice of telemedicine
in instances where the prescribing
practitioner has never conducted an inperson medical evaluation of the
patient. On May 10, 2023, following
initial review of the comments received,
DEA, jointly with HHS, issued a
temporary rule (First Temporary Rule)
extending certain exceptions granted to
existing DEA regulations in March 2020
as a result of the COVID–19 Public
Health Emergency (COVID–19 PHE).
These exceptions were granted in order
to avoid lapses in care for patients. In
particular, with respect to practitionerpatient relationships formed after the
May 11, 2023, expiration of the COVID–
19 PHE, the First Temporary Rule
extended the temporary exceptions until
November 11, 2023. In this second
temporary rule, as DEA and HHS
continue to consider revisions to the
proposed rules set forth in the March 1,
2023 NPRMs and in light of
Telemedicine Listening Sessions that
DEA hosted on September 12 and 13,
2023, DEA and HHS are further
extending such exceptions to existing
DEA regulations for new practitionerpatient relationships through December
31, 2024.
DATES: As of November 11, 2023, the
end of the effective period for the
temporary rule published at 88 FR
30037 on May 10, 2023, is extended
Frm 00007
Fmt 4700
from November 11, 2024, to December
31, 2024. This rule is effective
November 11, 2023.
FOR FURTHER INFORMATION CONTACT:
Scott A. Brinks, Diversion Control
Division, Drug Enforcement
Administration; Mailing Address: 8701
Morrissette Drive, Springfield, VA
22152, Telephone: (571) 776–3882.
SUPPLEMENTARY INFORMATION:
I. Background
42 CFR Part 12
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Under the Ryan Haight Online
Pharmacy Consumer Protection Act of
2008 (the Ryan Haight Act), a
prescribing practitioner—subject to
certain exceptions—may prescribe
controlled medications to a patient only
after conducting an in-person evaluation
of that patient. In response to the
COVID–19 Public Health Emergency
(COVID–19 PHE), as declared by the
Secretary (the Secretary) of the
Department of Health and Human
Services (HHS) on January 31, 2020,
pursuant to the authority under section
319 of the Public Health Service Act (42
U.S.C. 247), the Drug Enforcement
Administration (DEA) granted
temporary exceptions to the Ryan
Haight Act and DEA’s implementing
regulations under 21 U.S.C. 802(54)(D).
In order to prevent lapses in care,
these exceptions allowed for the
prescribing of controlled medications
via telemedicine encounters even when
the prescribing practitioner had not
conducted an in-person medical
evaluation of the patient. These
telemedicine flexibilities authorized
practitioners to prescribe schedule II–V
controlled medications via audio-video
telemedicine encounters, including
schedule III–V narcotic controlled
medications approved by the Food and
Drug Administration (FDA) for
maintenance and withdrawal
management treatment of opioid use
disorder via audio-only telemedicine
encounters, provided that such
prescriptions otherwise comply with the
requirements outlined in DEA guidance
documents, DEA regulations, and
applicable Federal and State law. DEA
granted those temporary exceptions to
the Ryan Haight Act and DEA’s
implementing regulations via two letters
published in March 2020:
• A March 25, 2020 ‘‘Dear Registrant’’
letter signed by William T. McDermott,
DEA’s then-Assistant Administrator,
Diversion Control Division (the
McDermott Letter); 1 and
1 William T. McDermott, DEA Dear Registrant
letter, Drug Enforcement Administration (March 25,
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[Federal Register Volume 88, Number 194 (Tuesday, October 10, 2023)]
[Rules and Regulations]
[Pages 69876-69879]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-22331]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 956
[Doc. No. AMS-SC-23-0006]
Sweet Onions Grown in the Walla Walla Valley of Southeast
Washington and Northeast Oregon; Increased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: This rule implements a recommendation from the Walla Walla
Sweet Onion Marketing Committee (Committee) to increase the assessment
rate established for the 2023 and subsequent fiscal periods. The
assessment rate will remain in effect indefinitely unless modified,
suspended, or terminated.
DATES: Effective November 9, 2023.
FOR FURTHER INFORMATION CONTACT: Dale Novotny, Marketing Specialist, or
Gary Olson, Chief, West Region Branch, Market Development Division,
Specialty Crops Program, AMS, USDA; Telephone: (503) 326-2724, or
Email: [email protected] or [email protected].
Small businesses may request information on complying with this
regulation by contacting Richard Lower, Market Development Division,
Specialty Crops Program, AMS, USDA, 1400 Independence Avenue SW, STOP
0237, Washington, DC 20250-0237; Telephone: (202) 720-8085, or Email:
[email protected].
SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553,
amends regulations issued to carry out a marketing order as defined in
7 CFR 900.2(j). This rule is issued under Marketing Agreement and Order
No. 956, both as amended (7 CFR part 956), regulating the handling of
sweet onions grown in the Walla Walla Valley of southeast Washington
and northeast Oregon. Part 956 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 Order and is comprised of producers
and handlers of Walla Walla sweet onions operating within the area of
production, and a public member.
The Agricultural Marketing Service (AMS) is issuing this rule in
conformance with Executive Orders 12866, 13563, and 14094. Executive
Orders 12866 and 13563 direct agencies to assess all costs and benefits
of available regulatory alternatives and, if regulation is necessary,
to select regulatory approaches that maximize net benefits (including
potential economic, environmental, public health and safety effects,
distributive impacts, and equity). Executive Order 13563 emphasizes the
importance of quantifying both costs and benefits, reducing costs,
harmonizing rules, and promoting flexibility. Executive Order 14094
reaffirms, supplements, and updates Executive Order 12866 and further
directs agencies to solicit and consider input from a wide range of
affected and interested parties through a variety of means. This action
falls within a category of regulatory actions that the Office of
Management and Budget (OMB) exempted from Executive Order 12866 review.
This rule has been reviewed under Executive Order 13175--
Consultation and Coordination with Indian Tribal Governments, which
requires agencies to consider whether their rulemaking actions would
have Tribal implications.
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AMS has determined that this rule is unlikely to have substantial
direct effects on one or more Indian Tribes, on the relationship
between the Federal Government and Indian Tribes, or on the
distribution of power and responsibilities between the Federal
Government and Indian Tribes.
This rule has been reviewed under Executive Order 12988--Civil
Justice Reform. Under the Order now in effect, Walla Walla sweet onion
handlers are subject to assessments. Funds to administer the Order are
derived from such assessments. It is intended that the assessment rate
will be applicable to all assessable Walla Walla sweet onions for the
2023 fiscal period, and continue until amended, suspended, or
terminated.
The Act provides that administrative proceedings must be exhausted
before parties may file suit in court. Under section 608c(15)(A) of the
Act, any handler subject to an order may file with the 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 rule increases the assessment rate for Walla Walla sweet
onions handled under the Order from $0.15 per 50-pound bag or
equivalent, the rate that was established for the 2020 and subsequent
fiscal periods, to $0.20 per 50-pound bag or equivalent for the 2023
and subsequent fiscal periods.
The Order authorizes the Committee, with the approval of AMS, to
formulate an annual budget of expenses and collect assessments from
handlers to administer the program. The members of the Committee are
familiar with the Committee's needs and with the costs of goods and
services in their local area and are able to formulate an appropriate
budget and assessment rate. The assessment rate is formulated and
discussed in a public meeting, and all directly affected persons have
an opportunity to participate and provide input.
For the 2020 and subsequent fiscal periods, the Committee
recommended, and AMS approved, an assessment rate of $0.15 per 50-pound
bag or equivalent of Walla Walla sweet onions. That rate continues in
effect from fiscal period to fiscal period until modified, suspended,
or terminated by AMS upon recommendation and information submitted by
the Committee or other information available to AMS.
The Committee met on December 5, 2022, and unanimously recommended
2023 fiscal period expenditures of $70,400 and an assessment rate of
$0.20 per 50-pound bag or equivalent of Walla Walla sweet onions
handled for the 2023 and subsequent fiscal periods. In comparison, last
year's budgeted expenditures were $85,270. The proposed assessment rate
of $0.20 per 50-pound bag or equivalent is $0.05 higher than the rate
currently in effect. The Committee recommended increasing the
assessment rate to better fund operations using assessment revenue and
reduce the reliance on reserve funds. The Committee has drawn down its
financial reserve in recent years to cover Committee expenses and to
reduce the reserve to not exceed approximately two fiscal periods'
budgeted expenses, in conformance with the Order (7 CFR 956.44(a)). The
Committee projects handler receipts of 262,500 50-pound bags or
equivalent of assessable Walla Walla sweet onions for the 2023 fiscal
period, which is 16,150 50-pound bags or equivalent more than was
projected for the 2022 fiscal period.
The major expenditures budgeted by the Committee for the 2023
fiscal period include $43,400 for administrative expenses, $17,000 for
promotions, $5,000 for research, and $5,000 for Committee travel.
Budgeted expenditures for the 2022 fiscal period were $43,400, $31,870,
$5,000, and $4,000, respectively.
Walla Walla sweet onions harvested in 2023 will be marketed mostly
in the spring and summer of the 2023 fiscal period, which follows the
calendar year. The expected 262,500 50-pound bags or equivalent of
Walla Walla sweet onions from the 2023 crop will generate $52,500 in
assessment revenue at the increased assessment rate (262,500 50-pound
bags or equivalent of Walla Walla sweet onions multiplied by $0.20
assessment rate). The remaining $17,900 needed to cover budgeted
expenditures will come from reserve funds carried over from previous
fiscal periods. The 2023 fiscal period assessment rate increase will be
appropriate to ensure the Committee has sufficient revenue, along with
its reserve, to fully fund its 2023 fiscal period budgeted expenditures
and maintain a level of reserve funds that the Committee believes is
appropriate.
The Committee derived the recommended assessment rate by
considering anticipated fiscal period expenses, an estimated 2023 crop
volume of 262,500 50-pound bags or equivalent of assessable Walla Walla
sweet onions, and the amount of funds available in the authorized
reserve. Income derived from handler assessments ($52,500) and funds
from the Committee's authorized reserve ($17,900) will be adequate to
cover budgeted expenses ($70,400).
The assessment rate will continue in effect indefinitely unless
modified, suspended, or terminated by AMS upon recommendation and
information submitted by the Committee or other available information.
Although this assessment rate will be in effect for an indefinite
period, the Committee will 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 AMS.
Committee meetings are open to the public and interested persons may
express their views at these meetings. AMS 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 2023 budget, and those for
subsequent fiscal periods, will be reviewed and, as appropriate,
approved by AMS.
Final Regulatory Flexibility Analysis
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA) (5 U.S.C. 601-612), AMS has considered the economic impact of
this rule on small entities. Accordingly, AMS prepared this final
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 the 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 15 producers of Walla Walla sweet onions in
the production area and 11 handlers subject to regulation under the
Order. Small agricultural producers of Walla Walla sweet onions are
defined by the Small
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Business Administration (SBA) as those having annual receipts of less
than $3,750,000, and small agricultural service firms are defined as
those whose annual receipts are less than $34,000,000 (13 CFR 121.201).
According to the National Agricultural Statistics Service (NASS),
the average annual producer price received for dry and fresh market
onions sold in Washington between 2018 and 2021 ranged from $9.13 to
$13.30 per hundredweight. The average over those years was
approximately $10.88 per hundredweight, or $5.44 per 50-pound bag or
equivalent. Total production of Walla Walla sweet onions for the 2022
season was reported by the Committee to be 299,993 50-pound bags or
equivalent. Using the average price from 2018-2021, the most recent
years for which there is NASS data, the total 2022 crop value of Walla
Walla sweet onions could therefore be estimated to be $1,631,962
(299,993 50-pound bags or equivalent multiplied by $5.44 per 50-
pounds). Dividing the crop value by the estimated number of producers
(15) yields an estimated average receipt per producer of $108,797,
which is well below the SBA threshold for small producers.
In addition, according to USDA Market News data, the reported
average 2021 terminal market price for Walla Walla sweet onions was $35
per 40-pound carton. Multiplying this figure by 1.25 to adjust for a
50-pound bag or equivalent yields an average 2021 terminal market price
of $43.75 per 50-pound bag or equivalent. Multiplying the 2022 Walla
Walla sweet onion production of 299,993 50-pound bags or equivalent by
the estimated average price per 50-pound bag or equivalent of $43.75
equals $13,124,694. Dividing this figure by the 11 regulated handlers
yields estimated average annual handler receipts of $1,193,154
($13,124,694 divided by 11 handlers), which is below the SBA threshold
for small agricultural service firms. Therefore, using the above data,
all of the producers and handlers of Walla Walla sweet onions may be
classified as small entities.
This final rule increases the assessment rate collected from
handlers for the 2023 and subsequent fiscal periods from $0.15 to $0.20
per 50-pound bag or equivalent of Walla Walla sweet onions. The
Committee unanimously recommended 2023 fiscal period expenditures of
$70,400 and an assessment rate of $0.20 per 50-pound bag or equivalent
of Walla Walla sweet onions. The assessment rate of $0.20 is $.05
higher than the current rate. The Committee expects the industry to
handle 262,500 50-pound bags or equivalent of Walla Walla sweet onions
during the 2023 fiscal period. Thus, the $0.20 per 50-pound bag or
equivalent rate will provide $52,500 in assessment income (262,500 50-
pound bags or equivalent multiplied by $0.20). The Committee also
expects to use $17,900 from its financial reserve to cover remaining
expenses. Income derived from handler assessments, along with reserve
funds, will be adequate to meet budgeted expenditures for the 2023
fiscal period.
The major expenditures budgeted by the Committee for the 2023
fiscal period include $43,400 for administrative expenses, $17,000 for
promotions, $5,000 for research, and $5,000 for Committee travel.
Budgeted expenditures for the 2022 fiscal period were $43,400, $31,870,
$5,000 and $4,000, respectively.
In recent years, the Committee has utilized reserve funds to
partially fund its budgeted expenditures. The Committee recommended
increasing the assessment rate to better fund 2023 fiscal period
budgeted expenditures and refrain from excessively drawing down the
funds held in its reserve. This action will maintain the Committee's
reserve balance at a level that the Committee believes is appropriate
and is compliant with the provisions of the Order.
Prior to arriving at this budget and the current assessment rate,
the Committee discussed various alternatives, including maintaining the
current assessment rate of $0.15 per 50-pound bag or equivalent and
increasing the assessment rate by different amounts. The Committee
determined that the recommended increased assessment rate will be able
to fund most of the budgeted expenses and avoid drawing down reserves
at an unsustainable rate. The assessment rate of $0.20 per 50-pound bag
or equivalent of Walla Walla sweet onions was derived by considering
anticipated expenses, the projected volume of assessable Walla Walla
sweet onions, the projected monetary balance held in reserve, and
additional pertinent factors.
A review of NASS information indicates that the average producer
price for the 2018-21 fiscal period was $5.44 per 50-pound bag or
equivalent. Further, the Committee reported the quantity of assessable
Walla Walla sweet onions harvested in the 2022 fiscal period was
299,993 50-pound bags or equivalent, which yields estimated total
producer revenue for 2022 of $1,631,962 ($5.44 per 50-pound bag or
equivalent multiplied by 299,993). Therefore, utilizing the assessment
rate of $0.20 per 50-pound bag or equivalent, assessment revenue for
the 2022 fiscal period, as a percentage of total producer revenue, will
be approximately 3.68 percent ($0.20 multiplied by 299,993 per 50-pound
bags or equivalent divided by $1,631,962 and multiplied by 100).
This action increases 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, these costs are
expected to be offset by the benefits derived by the operation of the
Order.
The Committee's meetings are widely publicized throughout the
production area. The Walla Walla sweet onion industry and all
interested persons are invited to attend the meetings and participate
in Committee deliberations on all issues. Like all Committee meetings,
the December 5, 2022, meeting was a public meeting and all entities,
both large and small, were able to express views on this issue.
Finally, interested persons were invited to submit comments on this
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. 0581-0178, Vegetable
and Specialty Crops. No changes in those requirements will be necessary
as a result of this rule. Should any changes become necessary, they
would be submitted to OMB for approval.
This rule will not impose any additional reporting or recordkeeping
requirements on either small or large Walla Walla sweet 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.
AMS has not identified any relevant Federal rules that duplicate,
overlap, or conflict with this rule.
A proposed rule concerning this action was published in the Federal
Register on June 16, 2023 (88 FR 39377). Copies of the proposed rule
were also mailed or sent via email to all Walla Walla sweet onion
handlers. A copy of the proposed rule was made available through the
internet by AMS via https://
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www.regulations.gov. A 30-day comment period ending July 17, 2023, was
provided for interested persons to respond to the proposal. No comments
were received. Accordingly, no changes have been made to the rule as
proposed.
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.
After consideration of all relevant material presented, including
the information and recommendations submitted by the Committee and
other available information, AMS has determined that this rule tends to
effectuate the declared policy of the Act.
List of Subjects in 7 CFR Part 956
Marketing agreements, Onions, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, the Agricultural
Marketing Service amends 7 CFR part 956 as follows:
PART 956--SWEET ONIONS GROWN IN THE WALLA WALLA VALLEY OF SOUTHEAST
WASHINGTON AND NORTHEAST OREGON
0
1. The authority citation for 7 CFR part 956 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. Revise Sec. 956.202 to read as follows:
Sec. 956.202 Assessment rate.
On and after January 1, 2023, an assessment rate of $0.20 per 50-
pound bag or equivalent is established for Walla Walla sweet onions.
Erin Morris,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2023-22331 Filed 10-6-23; 8:45 am]
BILLING CODE P