[Federal Register Volume 60, Number 154 (Thursday, August 10, 1995)]
[Rules and Regulations]
[Pages 40747-40748]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-19777]



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DEPARTMENT OF AGRICULTURE
7 CFR Part 959

[FV95-959-1FR]


Onions Grown in South Texas; Changes in Bulk Bin Requirements

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: This final rule removes 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 rule also prohibits 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, may continue.

EFFECTIVE DATE: September 11, 1995.

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 rule 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 Act 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 rule has been reviewed under Executive Order 12778, Civil 
Justice Reform. This action is not intended to have retroactive effect. 
This final 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 

[[Page 40748]]
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.
    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.
    Therefore, subparagraph (i) of paragraph (f)(3) Experimental 
shipments. is hereby 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. are redesignated (f)(4) 
Experimental shipments. but are otherwise unchanged. Both paragraphs 
(f)(3) and (f)(4) 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 rule 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.
    A proposed rule was published in the Federal Register on June 12, 
1995 (60 FR 30794). That rule provided that interested persons could 
file comments through July 12, 1995. No comments were received.
    Based on available information, the Administrator of the AMS has 
determined that this action will not have a significant economic impact 
on a substantial number of small entities.
    After consideration of all relevant matter presented, including the 
information and recommendations submitted by the committee and other 
available information, it is hereby found that this rule, as 
hereinafter set forth, will tend to effectuate the declared policy of 
the Act.

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 hereby 
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 (f)(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. (i) 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:
* * * * *
    (4) In addition to provisions in the preceding paragraphs, each 
handler making shipments for processing and peeling, chopping, and 
slicing shall:
* * * * *
    Dated: August 4, 1995.
Sharon Bomer Lauritsen,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 95-19777 Filed 8-9-95; 8:45 am]
BILLING CODE 3410-02-P