[Federal Register Volume 60, Number 112 (Monday, June 12, 1995)]
[Proposed Rules]
[Pages 30794-30795]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-14277]



 ========================================================================
 Proposed Rules
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
 
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 

  Federal Register / Vol. 60, No. 112 / Monday, June 12, 1995 / 
Proposed Rules  

[[Page 30794]]

DEPARTMENT OF AGRICULTURE


Agricultural Marketing Service

7 CFR Part 959

[FV95-959-1PR]
Onions Grown in South Texas; Changes in Bulk Bin Requirements
AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This proposed rule would remove a requirement that 
polyethylene liners be used in bulk shipping bins. Such liners limit 
air flow inside the container and may cause the onions to decay more 
easily and result in a loss of product. Removal of this requirement 
should reduce product loss due to excessive decay and lessen the 
chances of receiver rejection. This proposed rule also would prohibit 
the use of bulk bins for shipments of onions for fresh whole use 
because the arrival condition of such onions is critical. Onions 
transported in bulk bins are not protected from damage, such as 
bruising, as well as those packed in smaller size cartons or bags. 
However, the arrival condition of onions for fresh chopping, slicing, 
or peeling, or other fresh use in which the form of the onion is 
changed is not as critical. The use of bulk bins, which are more cost 
effective for such shipments, would continue.

DATES: Comments must be received by July 12, 1995.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposal. Comments must be sent in triplicate to the 
Docket Clerk, Fruit and Vegetable Division, AMS, USDA, room 2523-S, 
P.O. Box 96456, Washington, DC 20090-6456, FAX (202) 720-5698. All 
comments should reference the docket number and the date and page 
number of this issue of the Federal Register and will be made available 
for public inspection in the Office of the Docket Clerk during regular 
business hours.

FOR FURTHER INFORMATION CONTACT: Robert F. Matthews, Marketing 
Specialist, Marketing Order Administration Branch, F&V, AMS, USDA, room 
2523-S, P.O. Box 96456, Washington, DC 20090-6456, telephone: (202) 
690-0464; or Belinda G. Garza, McAllen Marketing Field Office, 
Marketing Order Administration Branch, F&V, AMS, USDA, 1313 East 
Hackberry, McAllen, Texas 78501; telephone: (210) 682-2833, FAX (210) 
682-5942.

SUPPLEMENTARY INFORMATION: This proposal is issued under Marketing 
Agreement No. 143 and Marketing Order No. 959 (7 CFR part 959), as 
amended, regulating the handling of onions grown in South Texas, 
hereinafter referred to as the ``order.'' The order is effective under 
the Agricultural Marketing Agreement of 1937, as amended (7 U.S.C. 601-
674), hereinafter referred to as the ``Act.''
    The Department of Agriculture (Department) is issuing this rule in 
conformance with Executive Order 12866.
    This proposal has been reviewed under Executive Order 12778, Civil 
Justice Reform. This action is not intended to have retroactive effect. 
This proposed rule will not preempt any State or local laws, 
regulations, or policies, unless they present an irreconcilable 
conflict with this action.
    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 Secretary 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 the Secretary 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 in equity to review the 
Secretary's ruling on the petition, provided a bill in equity is filed 
not later than 20 days after the date of the entry of the ruling.
    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA), the Administrator of the Agricultural Marketing Service 
(AMS) has considered the economic impact of this action on small 
entities.
    The purpose of the RFA is to fit regulatory actions to the scale of 
business subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened. Marketing orders issued 
pursuant to the Act, and rules issued thereunder, are unique in that 
they are brought about through group action of essentially small 
entities acting on their own behalf. Thus, both statutes have small 
entity orientation and compatibility.
    There are approximately 35 handlers of South Texas onions who are 
subject to regulation under the order and approximately 70 producers in 
the regulated area. Small agricultural service firms, which includes 
handlers, have been defined by the Small Business Administration (13 
CFR 121.601) as those having annual receipts of less than $5,000,000, 
and small agricultural producers are defined as those having annual 
receipts of less than $500,000. The majority of handlers and producers 
of South Texas onions may be classified as small entities.
    At a public meeting on November 8, 1994, the South Texas Onion 
Committee (committee) recommended deleting a requirement that 
perforated polyethylene liners (poly liners) be used in the bulk bins 
under the authority for experimental shipments. It also recommended 
limiting the use of bulk bins to shipments of onions for peeling, 
slicing, chopping, or other fresh use in which the form of the onion is 
changed. Fourteen members and alternates were present, and all 
recommendations were unanimous.
    Sweet onions normally have a high moisture content, and a poly 
liner, even when perforated, acts as a vapor barrier. Moisture remains 
inside the bin, or container, which can cause mold, bacteria, and other 
decay micro-organisms to develop. To avoid such a warm, damp 
environment, air circulation is necessary. However, use of the poly 
liner blocks air movement and may cause ``sweating'' and decay of the 
onions. Because satisfactory arrival condition is important to onion 
receivers, the committee recommended that the requirement for poly 
liners be removed. This should lessen the chances of receiver 
rejections due to excessive decay. [[Page 30795]] 
    At the meeting, the committee also recommended permitting onions 
for fresh peeling, chopping, or slicing to be shipped in bulk bins, as 
authorized by the provision for experimental shipments in the handling 
regulation. Although bags and cartons provide better protection during 
shipping, the committee does not believe that such additional 
protection is necessary for onions moving to processing outlets. 
Handlers have found that both bags and cartons are more difficult to 
load and unload than are bulk containers. In addition, bags and cartons 
are more expensive to buy and only last for one shipment, while bins 
can be used repeatedly. Also, bags and cartons must be disposed of at 
the destination, an additional cost, while bins can be returned for 
further use. It is therefore proposed that sub-paragraph (i) of 
paragraph (f)(3) Experimental shipments. be revised to remove the 
requirement for a poly liner and be limited to shipments for peeling, 
slicing, and chopping, and redesignated as (f)(3) Peeling, slicing, and 
chopping. The remaining parts of paragraph (3) Experimental shipments. 
would be redesignated (f)(4) Experimental shipments. but would be 
otherwise unchanged. Both paragraph (f)(3) and (f)(4) would continue to 
be subject to the safeguards under paragraph (g).
    In accordance with the Paperwork Reduction Act of 1988 (44 U.S.C. 
Chapter 35), the information collection requirements that are contained 
in this proposal have been previously approved by the Office of 
Management and Budget (OMB) under the provisions of 44 U.S.C. Chapter 
35 and have been assigned OMB number 0581-0074.
    Based on available information, the Administrator of the AMS has 
determined that this action would not have a significant economic 
impact on a substantial number of small entities.

List of Subjects in 7 CFR Part 959

    Marketing agreements, Onions, 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:

    Authority: 7 U.S.C. 601-674.

    2. Paragraphs (f)(4) and (f)(5) of Sec. 959.322 are redesignated 
(f)(5) and (f)(6) respectively; paragraphs (f)(3)(ii) and (f)(3)(iii) 
are redesignated (f)(4)(i) and (f)(4)(ii) and revised; paragraph 
(f)(3)(i) is redesignated as (b)(3) and revised; and the introductory 
text of paragraphs (g) and (g)(4) are revised to read as follows:

Sec. 959.222  Handling regulation.

* * * * *

    (f) * * *

    (3) Peeling, chopping, and slicing. Upon approval of the committee, 
onions for peeling, chopping, and slicing may be shipped in bulk bins 
with inside dimensions of 47 inches x 37 1/2 inches x 36 inches deep 
and having a volume of 63,450 cubic inches, or containers deemed 
similar by the committee. Such shipments shall be exempt from paragraph 
(c) of this section, but shall be handled in accordance with the 
safeguard provisions of Sec. 959.54 and shall meet the requirements of 
paragraphs (a), (b), (d), and (g) of this section.
    (4) Experimental shipments. (i) Upon approval by the committee, 
onions may be shipped for experimental purposes exempt from regulations 
issued pursuant to Secs. 959.42, 959.52, and 959.60, provided they are 
handled in accordance with the safeguard provisions of Sec. 959.54 and 
paragraph (g) of this section.

    (ii) Upon approval of the committee, onions may be shipped for 
testing in types and sizes of containers other than those specified in 
paragraphs (c) and (f)(2) of this section, provided that the handling 
of onions in such experimental containers shall be under the 
supervision of the committee.

* * * * *

    (g) Safeguards. Each handler making shipments of onions for relief, 
charity, processing, experimental purposes, or peeling, chopping and 
slicing shall: * * *

    (g)(4) In addition to provisions in the preceding paragraphs, each 
handler making shipments for processing and peeling, chopping, and 
slicing shall:

* * * * *

    Dated: June 6, 1995.

Sharon Bomer Lauritsen,

Deputy Director, Fruit and Vegetable Division.

[FR Doc. 95-14277 Filed 6-9-95; 8:45 am]

BILLING CODE 3410-02-P