[Federal Register Volume 62, Number 78 (Wednesday, April 23, 1997)]
[Rules and Regulations]
[Pages 19667-19668]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-10570]



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 Rules and Regulations
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  Federal Register / Vol. 62, No. 78 / Wednesday, April 23, 1997 / 
Rules and Regulations  

[[Page 19667]]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 959

[Docket No. FV97-959-1 IFR]


Onions Grown in South Texas; Amendment of Sunday Packing and 
Loading Prohibitions

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: This interim final rule amends, for the remainder of the 1997 
period, the regulation under the South Texas onion marketing order 
which specifies that no handler may package or load onions on Sunday 
during the period March 1 through May 20 to remove the prohibition. The 
order regulates the handling of onions grown in South Texas and is 
administered locally by the South Texas Onion Committee (Committee). 
The Committee unanimously recommended the change to increase supplies 
of South Texas onions in the marketplace. Recent heavy rainfall in the 
production area has prevented handlers from packing and loading enough 
onions to meet buyer needs.

DATES: Effective April 19, 1997; comments received by May 23, 1997 will 
be considered prior to issuance of a final rule.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this rule. Comments must be sent in triplicate to the Docket 
Clerk, Fruit and Vegetable Division, AMS, USDA, room 2525-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, McAllen Marketing 
Field Office, Marketing Order Administration Branch, F&V, AMS, USDA, 
1313 E. Hackberry, McAllen, Texas 78501; telephone: (210) 682-2833, Fax 
# (210) 682-5942; or James B. Wendland, Marketing Specialist, Marketing 
Order Administration Branch, F&V, AMS, USDA, room 2525-S, P.O. Box 
96456, Washington, DC 20090-6456: telephone: (202) 720-2170, Fax # 
(202) 720-5698. Small businesses may request information on compliance 
with this regulation by contacting: Jay Guerber, Marketing Order 
Administration Branch, Fruit and Vegetable Division, AMS, USDA, P.O. 
Box 96456, room 2525-S, Washington, DC 20090-6456; telephone (202) 720-
2491; Fax # (202) 720-5698.

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.'' 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 issuing this rule in 
conformance with Executive Order 12866.
    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. This rule is not intended to have retroactive effect. 
This 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 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 date of the entry of the ruling.
    Due to record amounts of rainfall in the last 40 days, South Texas 
growers have had difficulty harvesting their onions. Normally, 1\1/2\ 
to 2 million 50-lb. equivalents of onions have been shipped by April 
15, but this year only approximately \1/2\ million were shipped by that 
date.
    Currently, Section 959.322 of the order prohibits the packaging and 
loading of onions on Sundays during the March 1 through May 20 period 
each season. This restriction was implemented to contribute to orderly 
marketing conditions. However, the industry indicates that, since the 
advent of the heavy rains, all onions must be dried in mechanical 
dryers prior to packing. This has disrupted the normal pattern of 
harvesting, packing and loading. Growers cannot harvest more onions 
until the dryers are emptied. The dryers can not be emptied if onions 
are unable to be packed and shipped each day of the week.
    The Committee met on April 16 and, by telephone vote, unanimously 
recommended revising the current handling regulation to remove the 
restriction on packing and loading onions on Sundays. This action will 
provide handlers with greater flexibility and additional time to 
prepare the onions for market.
    If this action is not taken, crop losses will be significant. The 
cessation in harvesting activity will result in increased unemployment 
among onion field workers and employees at handlers' facilities. In 
addition, reduced supplies would likely result in consumers paying 
higher prices for these onions.
    Thus, this rule relaxes requirements by modifying language in the 
order's handling regulation, as authorized by Sec. 959.52 of the order, 
to allow Sunday packing and loading of such onions during the remainder 
of the 1997 period.
    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA), the Agricultural Marketing Service (AMS) has considered the 
economic impact of this action on small entities.

[[Page 19668]]

Accordingly, AMS has prepared this initial regulatory flexibility 
analysis.
    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 36 handlers of South Texas onions who are subject to 
regulation under the order and approximately 60 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.
    Committee meetings are widely publicized in advance and are held in 
a location central to the production area. The meetings are open to all 
industry members (including small business entities) and other 
interested persons--who are encouraged to participate in the 
deliberations and voice their opinions on topics under discussion. 
Thus, Committee recommendations can be considered to represent the 
interests of small business entities in the industry.
    Many years of marketing experience led to the development of the 
current shipping and packing procedures. These procedures have helped 
the industry address marketing problems by keeping supplies and 
movement of packed onions in balance with market needs, and 
strengthening market conditions. However, the recent heavy rains have 
disrupted the normal pattern of harvesting, packing and loading and all 
onions must now be dried in mechanical dryers prior to packing. Growers 
cannot harvest more onions until the dryers are emptied and dryers can 
not be emptied if onions are unable to be packed and shipped each day 
of the week.
    The Committee considered not relaxing the regulation for the 
remainder of the season, but felt that would result in significant crop 
losses. The Committee also felt that a cessation in harvesting activity 
would result in increased unemployment among onion field workers and 
employees at handlers' facilities. In addition, reduced supplies would 
likely result in consumers paying higher prices for these onions.
    While the level of benefits of this rulemaking are difficult to 
quantify, the stabilizing effects of the relaxation in the packing and 
loading regulation impact both small and large handlers positively by 
helping them maintain markets even though onion harvesting and packing 
conditions have fluctuated widely this season.
    There are some reporting, recordkeeping and other compliance 
requirements under the marketing order. The reporting and recordkeeping 
burdens are necessary for compliance purposes and for developing 
statistical data for maintenance of the program. The forms require 
information which is readily available from handler records and which 
can be provided without data processing equipment or trained 
statistical staff. As with other, similar marketing order programs, 
reports and forms are periodically studied to reduce or eliminate 
duplicate information collection burdens by industry and public sector 
agencies. This interim final rule does not change those requirements.
    The Department has not identified any relevant Federal rules that 
duplicate, overlap, or conflict with this regulation.
    A 30-day comment period is provided to allow interested persons to 
respond to this interim final rule. All written comments received 
within the comment period regarding this action or its effect on small 
business entities will be considered prior to finalization of this 
interim final rule.
    After consideration of all relevant material presented, including 
the Committee's recommendation, and other information, it is found that 
this interim final rule, as hereinafter set forth, will tend to 
effectuate the declared policy of the Act.
    Pursuant to 5 U.S.C. 553, it is also found and determined upon good 
cause that it is impracticable, unnecessary, and contrary to the public 
interest to give preliminary notice prior to putting this rule into 
effect and that good cause exists for not postponing the effective date 
of this rule until 30 days after publication in the Federal Register 
because: (1) Record rainfall in the South Texas production area 
necessitates emergency rulemaking and making this action effective on 
the date specified; (2) this rule relaxes requirements on regulated 
handlers; (3) handlers are aware of this action which was unanimously 
recommended by the Committee at an April 16, 1997, meeting; and (4) 
this interim final rule provides a 30-day comment period, and all 
comments timely received will be considered prior to finalization of 
this rule.

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 
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 paragraph is revised to read 
as follows:


Sec. 959.322  Handling regulation.

    During the period beginning March 1 and ending June 15, 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, 
except during the period April 20, 1997, through May 20, 1997.
* * * * *
    Dated: April 18, 1997.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 97-10570 Filed 4-18-97; 4:19 pm]
BILLING CODE 3410-02-P