[Federal Register Volume 61, Number 136 (Monday, July 15, 1996)]
[Proposed Rules]
[Pages 36827-36829]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-17868]


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 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. 61, No. 136 / Monday, July 15, 1996 / 
Proposed Rules  

[[Page 36827]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 956

[FV96-956-1PR]


Sweet Onions Grown in the Walla Walla Valley of Southeast 
Washington and Northeast Oregon; Proposed Establishment of Handler 
Reporting Requirements and Interest Charges on Overdue Assessment 
Payments, and Notice of Request for Revision of a Currently Approved 
Information Collection

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This proposed rule would establish handler reporting 
requirements and establish interest charges on overdue assessments. 
This action also announces the Agricultural Marketing Service's (AMS) 
intention to request a revision to the currently approved information 
collection requirements issued under the marketing order. This proposed 
rule would contribute to the efficient operation of the program by 
helping to ensure that assessments are available in a timely manner to 
cover budgeted expenses incurred under the marketing order. The 
Committee believes that this is the only alternative available to 
ensure timely payments of assessments. These proposed changes are 
expected to reduce the need for compliance efforts and thereby reduce 
the costs to administer the order.

DATES: Comments must be received by July 30, 1996. Pursuant to the 
Paperwork Reduction Act, comments to the information collection burden 
must be received by September 13, 1996.

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, South 
Building, 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 J. Curry, Northwest Marketing 
Field Office, Marketing Order Administration Branch, Fruit and 
Vegetable Division, AMS, USDA, 1220 SW Third Avenue, room 369, 
Portland, Oregon 97204-2807; telephone: (503) 326-2724; or Robert F. 
Matthews, Marketing Order Administration Branch, Fruit and Vegetable 
Division, AMS, USDA, P.O. Box 96456, room 2523-S, Washington, DC 20090-
6456; telephone: (202) 690-0464.

SUPPLEMENTARY INFORMATION: This rule is proposed under Marketing 
Agreement and Order No. 956 (7 CFR part 956; 60 FR 27624, May 24, 
1995), regulating the handling of sweet onions grown in the Walla Walla 
Valley of southeast Washington and northeast Oregon, hereinafter 
referred to as the ``order.'' The order is authorized by the 
Agricultural Marketing Agreement Act of 1937, as amended (7 U.S.C. 601-
674), hereinafter referred to as the ``Act.'' This proposed rule was 
recommended by the Walla Walla Sweet Onion Committee (Committee), the 
agency responsible for the local administration of the marketing order 
for sweet onions grown in the Walla Walla Valley.
    The Department of Agriculture (Department) is issuing this rule in 
conformance with Executive Order 12866.
    This proposed rule has been reviewed under Executive Order 12778, 
Civil Justice Reform. It is not intended to have retroactive effect. If 
adopted, the proposed rule would not preempt any State or local laws, 
regulations, or policies, unless they present an irreconcilable 
conflict with the proposal.
    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 to review the Secretary's 
ruling on the petition, provided an action is filed not later than 20 
days after the date of the entry of the ruling.
    In compliance with the Small Business Regulatory Enforcement Act of 
1996, the Agricultural Marketing Service (AMS) has published a ``Small 
Business Guide for Complying with Marketing Agreements and Orders for 
Fruits, Vegetables and Specialty Crops.'' Interested persons may obtain 
a copy of the Guide by contacting: Jay Guerber, Marketing Order 
Administration Branch, P.O. Box 96456, room 2523-S, Washington, DC 
29909-6456; telephone (202) 720-2491, FAX (202) 720-5698.
    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA), the Agricultural Marketing Service 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 30 handlers of Walla Walla Sweet Onions 
subject to regulation under the marketing order and approximately 50 
producers in the regulated production area. Small agricultural service 
firms 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 whose annual receipts 
are less than $500,000. The majority of Walla Walla Sweet Onion 
handlers and producers may be classified as small entities.
    This proposed rule would establish interest charges on overdue 
assessments

[[Page 36828]]

and establish handler reporting requirements.
    This proposed rule would contribute to the efficient operation of 
the program by helping to ensure that assessments are available in a 
timely manner to cover budgeted expenses incurred under the marketing 
order. Those persons large and small who pay in a timely manner would 
not be subject to an interest charge. The proposed changes establishing 
interest charges are expected to reduce the need for compliance efforts 
and thereby reduce the costs to administer the order which will benefit 
all persons who are subject to assessments.
    The preparation of one form one time each year should not 
constitute a significant burden on a business unit, small or large. The 
estimated reporting burden per response is 0.323 hours. In addition, 
gift box and roadside stand sales would be exempt from reporting the 
region to which shipments are made, which should be particularly 
favorable to small entities.
    Therefore, the AMS has determined that this action would not have a 
significant economic impact on a substantial number of small entities. 
Interested persons are invited to submit information on the regulatory 
and informational impacts of the proposal on small businesses.
    The Committee meets prior to each season to consider 
recommendations for modification, suspension, or termination of the 
regulatory requirements for Walla Walla Sweet Onions. Committee 
meetings are open to the public and interested persons may express 
their views at these meetings. The Department reviews Committee 
recommendations and information submitted by the Committee and other 
available information, and determines whether modification, suspension, 
or termination of the regulatory requirements would tend to effectuate 
the declared policy of the Act.
    At its February 15, 1996, meeting the Committee unanimously 
proposed the addition of administrative rules and regulations that 
would provide a late payment charge for delinquent assessments and a 
reporting requirement for handlers.
    The Act provides that each handler shall pay to the Committee such 
handler's pro rata share of Committee expenses that the Secretary finds 
are reasonable and likely to be incurred for the maintenance and 
functioning of the Committee. Section 956.42 authorizes the Committee 
to levy assessments on handlers of Walla Walla Sweet Onions to cover 
each handler's share of Committee expenses.
    Section 956.42(f) provides the authority for the Committee to 
impose, with the approval of the Secretary, a late payment or an 
interest charge on handlers who fail to pay any assessment in a timely 
manner. This proposed rule would establish an interest charge of 1 \1/
2\ percent per month to be applied to any assessment balance remaining 
unpaid on October 1 of each year.
    The Committee depends upon handler assessments for operating funds. 
Last year, the first season of operation of the order, some handlers 
were late with their assessment payments, with fewer than half 
submitting their assessment payments when due. When assessments are not 
paid in a timely manner, the handlers paying assessments on time are 
placed in an unfair situation compared to the delinquent handlers.
    As part of its collection efforts, the Committee requested 
delinquent handlers to promptly submit assessment payments. However, 
such requests did not substantially hasten the payment of such 
delinquent assessments, a few of which were over 120 days delinquent. 
To facilitate the collection of assessments needed for the maintenance 
and functioning of the Committee, the Committee recommended the 
establishment of an interest charge of 1 \1/2\ percent per month to be 
applied to assessment balances unpaid after 30 days. Annual assessments 
are due from handlers on September 1. The 1-\1/2\ percent interest 
charge would be applied monthly, after September 30, to the unpaid 
balance, including any accumulated interest.
    This proposed change is intended to encourage handlers to pay their 
assessments when due, thereby eliminating potential inequities towards 
handlers who pay their assessments on time. It would contribute to the 
efficient operation of the program by ensuring that adequate funds are 
available to cover expenses incurred under the marketing order.
    Section 956.80 provides authority for the Committee, with the 
approval of the Secretary, to require that each handler furnish to the 
Committee, in such manner and at such time as it may prescribe, such 
reports and other information as may be necessary for the Committee to 
perform its duties under the marketing order.
    This proposed rule would also establish a requirement that each 
handler submit an annual report, on a form provided by the Committee, 
showing their weekly and total yearly shipments of Walla Walla Sweet 
Onions by geographical region. The annual handler reporting requirement 
would provide the Committee with statistical information regarding 
total industry shipments which would be useful to the Committee in 
developing a budget and in making marketing and promotion plans for the 
upcoming season. The form would include the total number of 50 pound 
equivalents of Walla Walla Sweet Onions shipped during each week of the 
shipping season and an end of season total. The form will also require 
handlers to indicate the geographical regions to which onions are 
shipped. The geographical region to which shipments are made would be 
useful in planning marketing and promotional activities. The Committee 
has drawn up boundaries of 11 geographical regions to help it in 
developing its marketing and promotional plans. To effectively promote 
and market Walla Walla Sweet Onions, knowledge of market conditions and 
access to accurate statistical information is invaluable. The Committee 
recommended that handlers be exempt from having to indicate the 
geographical region to where the onions were shipped when making 
roadside stand and gift box sales. The Committee felt that having to 
report the geographical region shipped for every bag of onions sold in 
these outlets would be burdensome to handlers making such shipments.
    The form would also require handlers to provide their name and 
address to properly identify the firm, as a basis for verifying 
compliance with the assessment provisions of the order.
    In addition to marketing and promotion planning, the information on 
the form would help compliance efforts by keeping the committee 
informed of handlers' operations. It would enable the Committee manager 
to become aware of potential problems and discuss them with the 
handlers involved before violations occurred, thus reducing the need 
for, and the expense of, compliance action by the Committee and the 
Department.
    To implement these changes, a new Subpart--Rules and Regulations is 
proposed to be added to part 956. Sections 956.142 Interest charges., 
and 956.180 Reports. would be included in that subpart.
    A 15-day comment period is provided to allow interested persons to 
respond to this proposal. This period is deemed appropriate because the 
shipping season, which begins soon, is relatively short and the 
Committee needs to gather information on shipments made during the 
shipping period. The proposal was recommended by the Committee in a 
public meeting and all interested persons were invited to provide 
input.

[[Page 36829]]

All written comments received within the comment period will be 
considered before a final determination is made on this matter.
Paperwork Reduction Act
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the AMS announces its intention to request a revision to a 
currently approved information collection for Walla Walla sweet onions.
    Title: Sweet Onions Grown in the Walla Walla Valley of Southeast 
Washington and Northeast Oregon, Marketing Order No. 956.
    OMB Number: 0581-0172.
    Expiration Date of Approval: March 31, 1998.
    Type of Request: Revision of a currently approved information 
collection.
    Abstract: The information collection requirements in this request 
are essential to carry out the intent of the Agricultural Marketing 
Agreement Act, to provide the respondents the type of service they 
request, and to administer the program.
    This proposed rule would establish a requirement that each handler 
submit an annual report, on a form provided by the Committee, showing 
Walla Walla Sweet Onion shipment information. This information would 
facilitate the billing and collection of handler assessments needed for 
the maintenance and functioning of the Committee. The information would 
also be useful to the Committee in developing a budget and in making 
marketing plans for the upcoming season.
    The information collected is used only by authorized 
representatives of the USDA, including AMS, Fruit and Vegetable 
Division regional and headquarter's staff, and employees of the 
Committee. Committee employees are the primary users of the information 
and AMS employees are secondary users.
    Estimate of Burden: Public reporting burden for this proposed 
collection of information is estimated to average 0.323 hours per 
response.
    Respondents: Walla Walla Sweet Onion producers and for-profit 
businesses handling fresh Walla Walla Sweet Onions produced in 
southwestern Washington and northeastern Oregon.
    Estimated Number of Respondents: 82.
    Estimated Number of Responses per Respondent: 0.756.
    Estimated Total Burden on Respondents: 25 hours.
    Comments are invited on: (1) Whether the proposed collection of 
information is necessary for the functioning of the Walla Walla Sweet 
Onion Marketing Order and the Department's oversight of the program; 
(2) the accuracy of the collection burden estimate and the validity of 
methodology and assumptions used in estimating the burden on 
respondents; (3) ways to enhance the quality, utility, and clarity of 
the information requested; and (4) ways to minimize the burden, 
including use of automated or electronic technologies.
    Comments must be received by September 13, 1996. Comments should 
reference OMB No. 0581-0172 and the Walla Walla Sweet Onion Marketing 
Order No. 956, and be submitted to Teresa L. Hutchinson, Marketing 
Specialist, Northwest Marketing Field Office, Fruit and Vegetable 
Division, AMS, USDA, 1220 SW Third Avenue, room 369, Portland, OR 
97204; fax 503-326-7440. All comments received will be available for 
public inspection during regular business hours at the same address. 
All responses to this notice will be summarized and included in the 
request for OMB approval.
    Because there is insufficient time for normal clearance procedures, 
AMS is seeking temporary approval from OMB for the use of this form for 
the coming season. The form would be added to the other 5 forms 
currently approved for use under OMB Number 0581-0172.

List of Subjects in 7 CFR Part 956

    Marketing agreements, Onions, Reporting and record keeping 
requirements.

    For the reasons set forth in the preamble, it is proposed that 7 
CFR part 956 be amended 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. In part 956, a new Subpart--Rules and Regulations consisting of 
sections 956.142 and 956.180 is added to read as follows:

Subpart--Rules and Regulations


Sec. 956.142  Interest charges.

    The Committee shall impose an interest charge on any handler who 
fails to pay his or her annual assessments within thirty (30) days of 
the due date of September 1. The interest charge shall, after 30 days, 
be 1 1/2 percent of the unpaid assessment balance. In the event the 
handler fails to pay the delinquent assessment amount within 60 days 
following the due date, the 1 1/2 percent interest charge shall be 
applied monthly thereafter to the unpaid balance, including any 
accumulated interest. Any amount paid by a handler as an assessment, 
including any charges imposed pursuant to this paragraph, shall be 
credited when the payment is received in the Committee office.


Sec. 956.180  Reports.

    Each handler shall furnish to the Committee by September 1 of each 
year an annual report containing the following information, except that 
gift-box and roadside stand sales shall be exempt from paragraph (b):
    (a) The number of 50 lb. equivalents of Walla Walla Sweet Onions 
shipped by each handler during each week of the shipping season and the 
total for the season;
    (b) The geographical regions as defined by the Committee to which 
each shipment is made; and
    (c) The name, address, and signature of each handler.

    Dated: July 8, 1996.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 96-17868 Filed 7-12-96; 8:45 am]
BILLING CODE 3410-02-P