[Federal Register Volume 61, Number 34 (Tuesday, February 20, 1996)]
[Proposed Rules]
[Pages 6328-6329]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-3610]



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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 959

[Docket No. FV95-959-3PR]


Onions Grown in South Texas; Change in Regulatory Period

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule with request for comments.

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SUMMARY: This proposed rule would change the end of the regulatory 
period for onions grown in South Texas under Marketing Order 959 from 
June 15 to June 4 of each year. Terminating the handling regulation on 
June 4 would relieve restrictions on handlers who ship late season 
onions and help them become more competitive with handlers from non-
marketing order areas without diminishing South Texas marketing order 
objectives. A corresponding change in the dates for the import 
regulation also would be made in a second document.

DATES: Comments which are received by March 21, 1996 will be considered 
prior to issuance of any final rule.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this action. 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: Belinda G. Garza, Marketing Order 
Administration Branch, F&V, AMS, USDA, 1313 E. Hackberry, McAllen, TX 
78501; telephone: 210-682-2833; FAX 210-682-5942; or 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; FAX 202-720-5698.

SUPPLEMENTARY INFORMATION: This proposed 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.'' This 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 proposing this rule 
in conformance with Executive Order 12866.
    This proposed rule has been reviewed under Executive Order 12778, 
Civil Justice Reform. This rule 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 rule.
    The Act provides that administrative proceedings must be exhausted 
before parties may file suit in court. Under section 608c(15)(A) of the 
Act, any handler subject to an order may file with 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 

[[Page 6329]]
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 35 handlers of South Texas onions who are subject to 
regulation under the marketing order and 89 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) unanimously recommended, under the authority of 
Sec. 959.52(c) of the order, changing the termination date of the 
regulatory period for all varieties of regulated onions from June 15 to 
June 4. Currently, order regulations are in effect from March 1 through 
June 15 each year. The early and mid-season crop is produced in the 
Lower Rio Grande Valley (District 1), which generally accounts for 
about 80 percent of the total. The remaining crop, generally 20 
percent, is produced in the Laredo-Winter Garden area of South Texas 
(District 2). These are the last regulated shipments to leave the 
production area each season.
    In April 1994, based on a committee recommendation, the regulatory 
period was extended from May 20 to June 15 [59 FR 17265; April 12, 
1994]. At that time, the committee believed that the application of 
quality control requirements over a longer time was necessary to 
enhance the South Texas onion industry's market research and promotion 
efforts, and protect its quality image. The committee also believed 
that District 2 handlers should pay assessments on more of their 
shipments for the research and promotion programs that benefit the 
entire industry.
    After one season's experience, District 2 growers and handlers 
requested the committee to reconsider the regulatory extension. 
Although assessment funds are still needed and maintaining the quality 
of the shipments remains of great importance, experience appears to 
indicate that the strong competition from other growing areas outweighs 
these problems.
    Shipments made from District 2 compete with onions produced in West 
Texas and other areas of the United States not regulated under Federal 
marketing orders. Onion prices are usually quite low during this period 
and these unregulated areas have a competitive advantage over District 
2 because inspection costs for quality control purposes and 
administrative assessments are not incurred by shippers from these 
areas. Ending regulations on June 4, rather than June 15, apparently 
would relieve restrictions on District 2 shippers and help them become 
more competitive with shippers from these production areas without 
diminishing program objectives.
    Section 8e provides that whenever certain specified commodities, 
including onions, are regulated under a Federal marketing order, 
imports of that commodity must meet the same or comparable grade, size, 
quality, and maturity requirements as those in effect for the 
domestically produced commodity, subject to concurrence by the United 
States Trade Representative. The Act further provides that when two or 
more marketing orders covering the same commodity are concurrently in 
effect, imports will be subject to the requirements established for the 
commodity grown in the area with which the imported commodity is in 
most direct competition. Because this rule would change the regulatory 
period under the South Texas onion marketing order, corresponding 
changes would be needed in the onion import regulations. Such changes 
are to be addressed in a separate onion import rule.
    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. In Sec. 959.322, the introductory text is revised to read as 
follows:


Sec. 959.322  Handling regulation.

    During the period beginning March 1 and ending June 4, no handler 
shall handle any onions unless they comply with paragraphs (a) through 
(d), or (e), or (f) of this section. In addition, no handler may 
package or load onions on Sunday during the period March 1 through May 
20.
* * * * *
    Dated: February 12, 1996.
Sharon Bomer Lauritsen,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 96-3610 Filed 2-16-96; 8:45 am]
BILLING CODE 3410-02-P