[Federal Register Volume 62, Number 137 (Thursday, July 17, 1997)]
[Rules and Regulations]
[Pages 38203-38204]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-18820]



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 Rules and Regulations
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  Federal Register / Vol. 62, No. 137 / Thursday, July 17, 1997 / Rules 
and Regulations  

[[Page 38203]]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 959

[Docket No. FV97-959-1 FIR]


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

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: The Department of Agriculture (Department) is adopting as a 
final rule, with change an interim final rule which removed the 
restriction prohibiting handlers from packaging and loading onions on 
Sunday. 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 removing the 
prohibition to increase supplies of South Texas onions in the 
marketplace. Heavy rainfall in the production area during late March 
and most of April prevented handlers from packing and loading enough 
onions to meet buyer needs. Removing the prohibition provided handlers 
additional time to prepare onions for market and meet buyer needs. This 
rule also changes an erroneous regulatory period ending date which 
appeared in the interim final rule.

EFFECTIVE DATE: August 18, 1997.

FOR FURTHER INFORMATION CONTACT: Belinda G. Garza, Regional Manager, 
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 George J. Kelhart, Technical 
Advisor, Marketing Order Administration Branch, Fruit and Vegetable 
Division, AMS, USDA, room 2525-S, P.O. Box 96456, Washington, DC 20090-
6456; telephone: (202) 690-3919; 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, room 2525-S, P.O. Box 96456, 
Washington, DC 20090-6456; telephone: (202) 720-2491; Fax: (202) 720-
5698.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing 
Agreement No. 143 and Order No. 959, both as amended (7 CFR part 959), 
regulating the handling of onions grown in South Texas, hereinafter 
referred to as the ``order.'' The marketing agreement and order are 
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 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 the date of the entry of the ruling.
    Due to record amounts of rainfall during late March and most of 
April 1997, South Texas growers had difficulty harvesting their onions. 
Normally, 1\1/2\ to 2 million 50-lb. equivalents of onions are shipped 
by April 15, but this year only approximately \1/2\ million were 
shipped by that date.
    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 indicated that, since the advent of 
the heavy rains, all onions had to be dried in mechanical dryers prior 
to packing. This disrupted the normal pattern of harvesting, packing, 
and loading. Growers could not harvest more onions until the dryers 
were emptied, and dryers could not be emptied until the dried onions 
could be packed and shipped. Thus, the Sunday packing and loading 
restrictions had placed an undue hardship on growers and handlers. 
There was a need to pack and ship each day of the week.
    The Committee met on April 16, 1997, and, by telephone vote, 
unanimously recommended revising the current handling regulation to 
remove the restriction on packing and loading onions on Sundays for the 
remainder of the 1997 shipping season. That recommendation was intended 
to provide handlers with greater flexibility and additional time to 
prepare the onions for market.
    If this recommendation had not been implemented, crop losses would 
have been significant. In addition, the cessation in harvesting 
activity would have resulted in increased unemployment among onion 
field workers and employees at handlers' facilities. Finally, reduced 
supplies would likely have resulted in consumers paying higher prices 
for South Texas onions.
    Thus, in the interest of growers, handlers, and consumers, the 
interim final rule relaxed 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 onions during the period April 
20, 1997, through May 20, 1997. This final rule finalizes that action. 
In 1998, Sunday packing and loading prohibitions will again apply to 
handlers marketing South Texas onions during the period March 1, 1998, 
through May 20, 1998.
    This final rule also corrects the June 15 ending date in the first 
sentence of

[[Page 38204]]

Sec. 959.322. The correct date is ``June 4'', and the first sentence of 
Sec. 959.322 is changed accordingly.
    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. Accordingly, AMS has 
prepared this final 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. 
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 heavy rains in late March 
and most of April 1997, disrupted the normal pattern of harvesting, 
packing, and loading. All onions had to be dried in mechanical dryers 
prior to packing. Growers could not harvest more onions until the 
dryers had been emptied, and the dryers could not be emptied until the 
dried onions could be packed and shipped. Thus, the Sunday packing and 
loading prohibition placed an undue burden on South Texas onion growers 
and packers.
    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, the Committee believed 
that reduced supplies would likely have resulted in consumers paying 
higher prices for these onions.
    While the level of benefits of the interim final rule are difficult 
to quantify, the stabilizing effects of the relaxation in the packing 
and loading regulation impacted both small and large onion handlers 
positively by helping them maintain markets in the phase of adverse 
harvesting and packing conditions in 1997.
    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 reviewed to reduce or eliminate 
duplicate information collection burdens by industry and public sector 
agencies. This final rule does not change those requirements.
    The Department has not identified any relevant Federal rules that 
duplicate, overlap, or conflict with this regulation.
    An interim final rule regarding this action was issued by the 
Department on April 18, 1997, and published in the Federal Register (62 
FR 19667, April 23, 1997), with an effective date of April 19, 1997. 
That rule provided a 30-day comment period which ended May 23, 1997. No 
comments were received. However, as stated earlier, the interim final 
rule, contained an erroneous regulatory period ending date and this 
document changes it.
    After consideration of all relevant material presented, including 
the Committee's recommendation, and other information, it is found that 
finalizing the interim final rule, with change, 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.

    Accordingly, the interim final rule amending 7 CFR part 959 which 
was published at 62 FR 19667 on April 23, 1997, is adopted as a final 
rule with the following change:

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.


Sec. 959.322  [Amended]

    2. Section 959.322, introductory text, is amended by removing the 
date ``June 15,'' in the first sentence and adding the date ``June 4,'' 
in its place.
* * * * *
    Dated: July 11, 1997.
Sharon Bomer Lauritsen,
Acting Director, Fruit and Vegetable Division.
[FR Doc. 97-18820 Filed 7-16-97; 8:45 am]
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