[Federal Register Volume 61, Number 168 (Wednesday, August 28, 1996)]
[Rules and Regulations]
[Pages 44150-44152]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-21958]



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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

7 CFR Part 956

[FV96-956-1 FR]


Sweet Onions Grown in the Walla Walla Valley of Southeast 
Washington and Northeast Oregon; Establishment of Handler Reporting 
Requirements and Interest Charges on Overdue Assessment Payments

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: This final rule establishes handler reporting requirements and 
establishes interest charges on overdue assessments. This rule will 
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 Walla Walla 
Sweet Onion Committee (Committee) believes that these actions are the 
only alternatives available to ensure timely payments of assessments. 
These actions are expected to reduce the need for compliance efforts 
and thereby reduce the costs to administer the order.

EFFECTIVE DATE: August 29, 1996.

FOR FURTHER INFORMATION CONTACT: Robert J. Curry, Marketing Specialist, 
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 Specialist, Marketing Order 
Administration Branch, Fruit and Vegetable Division, AMS, USDA, PO Box 
96456, room 2523-S, Washington, DC 20090-6456; telephone: (202) 690-
0464. Small businesses may request information on compliance with this 
regulation by contacting: Jay Guerber, Marketing Order Administration 
Branch, PO Box 96456, room 2523-S, Washington, DC 29909- 6456; 
telephone (202) 720-2491, FAX (202) 720-5698.

SUPPLEMENTARY INFORMATION: This rule is effective under Marketing 
Agreement and Order No. 956 (7 CFR part 956), 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 final rule was recommended by the 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 final rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. It is not intended to have retroactive effect. If 
adopted, the rule will 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.
    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA), the 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 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 final rule establishes interest charges on overdue assessments 
and establishes handler reporting requirements.
    This final rule will 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 will not be 
subject to an interest charge. The 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 with shipment 
information 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 are 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 will not have a 
significant economic impact on a substantial number of small entities.
    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 tends to effectuate the 
declared policy of the Act.
    At its February 15, 1996, meeting the Committee unanimously 
recommended the addition of administrative rules and regulations that 
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

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payment or an interest charge on handlers who fail to pay any 
assessment in a timely manner. This final rule establishes 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 will be applied monthly, after September 30, to the unpaid 
balance, including any accumulated interest.
    This 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 contributes 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.
    Pursuant to this authority, this final rule also establishes 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 will provide the Committee with 
statistical information regarding total industry shipments which will 
be useful to the Committee in developing a budget and in making 
marketing and promotion plans for the upcoming season. The form 
includes 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. Information on the 
geographical region to which shipments are made will be useful to the 
Committee 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 
feels that having to report the geographical region shipped for every 
bag of onions sold in these outlets will be burdensome to handlers 
making such shipments.
    The form also requires 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 will help compliance efforts by keeping the Committee informed 
of handlers' operations. It will enable the Committee manager to become 
aware of potential problems and discuss them with the handlers involved 
before violations occur, 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 
added to part 956. Sections 956.142 Interest charges., and 956.180 
Reports. are included in that subpart.
    The proposed rule concerning these actions was published in the 
July 15, 1996, Federal Register (61 FR 36827), with a 15-day comment 
period ending July 30, 1996. No comments were received.
    The proposed rule also announced that AMS intended to request a 
revision to the currently approved information collection for Walla 
Walla Sweet Onions under the Paperwork Reduction Act of 1955 (44 U.S.C. 
Chapter 35). The revision of the approved information collection is 
necessary to cover the new annual shipment report to be submitted by 
handlers to the Committee. Comments concerning this revision must be 
received not later than September 13, 1996.
    Because there is insufficient time for normal clearance procedures, 
AMS has received temporary approval from the Office of Management and 
Budget (OMB) for the use of this form for the 1996 shipping season. The 
form has been added to the other 5 forms currently approved for use 
under OMB Number 0581-0172. The information collection revision will be 
sent to OMB for final approval after September 13, 1996. All comments 
received on the revision will be summarized and included in the request 
for final OMB approval.
    After consideration of all relative material presented, including 
the committee's recommendation, and other available information, it is 
hereby found that this final rule, as hereinafter set forth, will tend 
to effectuate the declared policy of the Act.
    It is further found that good cause exists for not postponing the 
effective date of this action until 30 days after publication in the 
Federal Register because: (1) This rule should be effective promptly so 
the Committee can gather information on shipments prior to the 
September 1 assessment billing date; (2) this rule was unanimously 
recommended at a public meeting and all interested persons had an 
opportunity to express their views and provide input; and (3) Walla 
Walla Sweet Onion handlers are aware of this rule and need no 
additional time to comply with the requirements.

List of Subjects in 7 CFR Part 956

    Marketing agreements, Onions, Reporting and recordkeeping 
requirements.
    For the reasons set forth in the preamble, 7 CFR part 956 is 
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. A new Subpart--Rules and Regulations consisting of sections 
956.142 and 956.180 are 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

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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: August 22, 1996.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 96-21958 Filed 8-27-96; 8:45 am]
BILLING CODE 3410-02-P