[Federal Register Volume 63, Number 62 (Wednesday, April 1, 1998)]
[Proposed Rules]
[Pages 15787-15790]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-8434]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 956

[Docket No. 98AMA-FV-956-1; FV98-956-1]


Sweet Onions Grown in the Walla Walla Valley of Southeast 
Washington and Northeast Oregon; Hearing on Proposed Amendment of 
Marketing Agreement and Order No. 956

AGENCY: Agricultural Marketing Service, USDA.


[[Page 15788]]


ACTION: Notice of hearing on proposed rulemaking.

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SUMMARY: Notice is hereby given of a public hearing to consider 
amending Marketing Agreement and Order No. 956, hereinafter referred to 
as the ``order.'' The order regulates the handling of Walla Walla Sweet 
Onions grown in the Walla Walla Valley of Southeast Washington and 
Northeast Oregon. The purpose of the hearing is to receive evidence on 
proposals to amend provisions of the order. The Walla Walla Sweet Onion 
Committee (committee), responsible for local administration of the 
order, has submitted several proposed amendments. The proposed 
amendments would broaden the scope of the order by adding authority for 
grade, size, quality, maturity, and pack regulations, mandatory 
inspection, marketing policy statements, and minimum quantity 
exemptions. In addition, a proposal is included to make a minor change 
in the committee name.

DATES: The hearing will begin at 10:00 a.m. in Walla Walla, Washington, 
on April 7, 1998, and, if necessary, will continue the next day 
beginning at 9:00 a.m.

ADDRESSES: The hearing will be held at the WSU/Walla Walla County 
Extension Office, 317 West Rose Street, Fifth Street entrance, Walla 
Walla, Washington 99362.

FOR FURTHER INFORMATION CONTACT: Robert Curry, Marketing Specialist, 
Northwest Marketing Field Office, Fruit and Vegetable Programs, AMS, 
USDA, 1220 S.W. Third Avenue, room 369, Portland, Oregon 97204; 
telephone: (503) 326-2043, Fax: (503) 326-7440; or Anne M. Dec, 
Rulemaking Team Leader, Marketing Order Administration Branch, Fruit 
and Vegetable Programs, AMS, USDA, P. O. Box 96456, room 2525-S, 
Washington, DC 20090-6456; telephone: (202) 720-2491, Fax: (202) 205-
6632. Small businesses may request information on compliance with this 
regulation by contacting Jay Guerber, Marketing Order Administration 
Branch, Fruit and Vegetable Programs, AMS, USDA, room 2525-S, P.O. Box 
96456, Washington, DC 20090-6456; telephone: (202) 720-2491, Fax: (202) 
205-6632.

SUPPLEMENTARY INFORMATION: This administrative action is taken pursuant 
to the Agricultural Marketing Agreement Act of 1937, as amended (7 
U.S.C. 601-674), hereinafter referred to as the ``Act.'' This action is 
governed by the provisions of sections 556 and 557 of title 5 of the 
United States Code and, therefore, is excluded from the requirements of 
Executive Order 12866.
    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) seeks to 
ensure that within the statutory authority of a program, the regulatory 
and informational requirements are tailored to the size and nature of 
small businesses. Interested persons are invited to present evidence at 
the hearing on the possible regulatory and informational impacts of the 
proposals on small businesses.
    The amendments proposed herein have been reviewed under Executive 
Order 12988, Civil Justice Reform. They are not intended to have 
retroactive effect. If adopted, the proposed amendments would not 
preempt any State or local laws, regulations, or policies, unless they 
present an irreconcilable conflict with this proposed 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. 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.
    The hearing is called pursuant to the provisions of the Act and the 
applicable rules of practice and procedure governing the formulation of 
marketing agreements and orders (7 CFR part 900).
    The committee submitted proposals to broaden the scope of the order 
by adding authority for grade, size, quality, maturity, and pack 
regulations, mandatory inspection, marketing policy statements, and 
minimum quantity exemptions. In addition, a committee proposal is 
included to change the name of the committee from the Walla Walla Sweet 
Onion Committee to the Walla Walla Sweet Onion Marketing Committee.
    The committee works with the Department in administering the order. 
These proposals have not received the approval of the Secretary of 
Agriculture.
    The committee believes that the proposed changes would improve the 
administration, operation, and functioning of the order.
    Also, the Fruit and Vegetable Programs of the Agricultural 
Marketing Service (AMS) proposes to allow such changes as may be 
necessary to the order to conform with any amendment thereto that may 
result from the hearing.
    The public hearing is held for the purpose of: (i) Receiving 
evidence about the economic and marketing conditions which relate to 
the proposed amendments of the order; (ii) determining whether there is 
a need for the proposed amendments to the order; and (iii) determining 
whether the proposed amendments or appropriate modifications thereof 
will tend to effectuate the declared policy of the Act.
    All persons wishing to submit written material as evidence at the 
hearing should be prepared to submit four copies of such material at 
the hearing and should have prepared testimony available for 
presentation at the hearing.
    From the time the notice of hearing is issued and until the 
issuance of a final decision in this proceeding, Department employees 
involved in the decisional process are prohibited from discussing the 
merits of the hearing issues on an ex parte basis with any person 
having an interest in the proceeding. The prohibition applies to 
employees in the following organizational units: Office of the 
Secretary of Agriculture; Office of the Administrator, AMS; Office of 
the General Counsel, except any designated employees of the General 
Counsel assigned to represent the committee in this rulemaking 
proceeding; and the Fruit and Vegetable Programs, AMS.
    Procedural matters are not subject to the above prohibition and may 
be discussed at any time.

List of Subjects in 7 CFR Part 956

    Marketing agreements, Onions, Reporting and recordkeeping 
requirements.

PART 956--SWEET ONIONS GROWN IN THE WALLA WALLA VALLEY OF SOUTHEAST 
WASHINGTON AND NORTHWEST OREGON

    1. The authority citation for 7 CFR part 956 continues to read as 
follows:

    Authority: 7 U.S.C. 601-674.

    2. Testimony is invited on the following proposals or appropriate 
alternatives or modifications to such proposals: Proposals submitted by 
the Walla Walla Sweet Onion Committee:

Proposal No. 1

    Add a new Sec. 956.14 to read as follows:


Sec. 956.14  Grading.

    Grading is synonymous with ``prepare for market'' and means the 
sorting or separation of Walla Walla Sweet Onions

[[Page 15789]]

into grades, sizes, and packs for market purposes.

Proposal No. 2

    Add a new Sec. 956.15 to read as follows:


Sec. 956.15  Grade and size.

    Grade means any of the officially established grades of onions, 
including maturity requirements and size means any of the officially 
established sizes of onions as set forth in the United States standards 
for grades of onions or amendments thereto, or modifications thereof, 
or variations based thereon, or States of Washington or Oregon 
standards of onions or amendments thereto or modifications thereof or 
variations based thereon, recommended by the committee and approved by 
the Secretary.

Proposal No. 3

    Add a new Sec. 956.16 to read as follows:


Sec. 956.16  Pack.

    Pack means a quantity of Walla Walla Sweet Onions specified by 
grade, size, weight, or count, or by type or condition of container, or 
any combination of these recommended by the committee and approved by 
the Secretary.

Proposal No. 4

    In Sec. 956.20, revise paragraph (a) to read as follows:


Sec. 956.20  Establishment and membership.

    (a) The Walla Walla Sweet Onion Marketing Committee, consisting of 
ten members, is hereby established. The committee shall consist of six 
producer members, three handler members, and one public member. Each 
member shall have an alternate who shall have the same qualifications 
as the member.
* * * * *

Proposal No. 5

    Add a new Sec. 956.60 to read as follows:


Sec. 956.60  Marketing policy.

    (a) Preparation. Prior to each marketing season, the committee 
shall consider and prepare a proposed policy for the marketing of Walla 
Walla Sweet Onions. In developing its marketing policy, the committee 
shall investigate relevant supply and demand conditions for Walla Walla 
Sweet Onions. In such investigations, the committee shall give 
appropriate consideration to the following:
    (1) Market prices for sweet onions, including prices by variety, 
grade, size, quality, and maturity, and by different packs;
    (2) Supply of sweet onions by grade, size, quality, maturity, and 
variety in the production area and in other sweet onion producing 
sections;
    (3) The trend and level of consumer income;
    (4) Establishing and maintaining orderly marketing conditions for 
Walla Walla Sweet Onions;
    (5) Orderly marketing of Walla Walla Sweet Onions as will be in the 
public interest; and
    (6) Other relevant factors.
    (b) Reports. (1) The committee shall submit a report to the 
Secretary setting forth the aforesaid marketing policy, and the 
committee shall notify producers and handlers of the contents of such 
report.
    (2) In the event it becomes advisable to shift from such marketing 
policy because of changed supply and demand conditions, the committee 
shall prepare an amended or revised marketing policy in accordance with 
the manner previously outlined. The committee shall submit a report 
thereon to the Secretary and notify producers and handlers of the 
contents of such report on the revised or amended marketing policy.

Proposal No. 6

    Amend Sec. 956.62 by revising the section to read as follows:


Sec. 956.62  Issuance of regulations.

    (a) Except as otherwise provided in this part, the Secretary shall 
limit the shipment of Walla Walla Sweet Onions by any one or more of 
the methods hereinafter set forth whenever the Secretary finds from the 
recommendations and information submitted by the committee, or from 
other available information, that such regulation would tend to 
effectuate the declared policy of the Act. Such limitation may:
    (1) Regulate in any or all portions of the production area, the 
handling of particular grades, sizes, qualities, or maturities of any 
or all varieties of Walla Walla Sweet Onions, or combinations thereof, 
during any period or periods;
    (2) Regulate the handling of particular grades, sizes, qualities, 
or maturities of Walla Walla Sweet Onions differently, for different 
varieties or packs, or for any combination of the foregoing, during any 
period or periods;
    (3) Provide a method, through rules and regulations issued pursuant 
to this part, for fixing the size, capacity, weight, dimensions, 
markings or pack of the container or containers, which may be used in 
the packaging or handling of Walla Walla Sweet Onions, including 
appropriate logo or other container markings to identify the contents 
thereof;
    (4) Regulate the handling of Walla Walla Sweet Onions by 
establishing, in terms of grades, sizes, or both, minimum standards of 
quality and maturity.
    (b) The Secretary may amend any regulation issued under this part 
whenever the Secretary finds that such amendment would tend to 
effectuate the declared policy of the Act. The Secretary may also 
terminate or suspend any regulation or amendment thereof whenever the 
Secretary finds that such regulation or amendment obstructs or no 
longer tends to effectuate the declared policy of the Act.

Proposal No. 7

    Revise Sec. 956.64 to read as follows:


Sec. 956.64  Minimum quantities.

    During any period in which shipments of Walla Walla Sweet Onions 
are regulated pursuant to this part, each handler may handle up to, but 
not to exceed, 2,000 pounds of Walla Walla Sweet Onions per shipment 
without regard to the inspection requirements of this part: Provided, 
That such Walla Walla Sweet Onion shipments meet the minimum 
requirements in effect at the time of the shipment pursuant to 
Sec. 956.62. The committee, with the approval of the Secretary, may 
recommend modifications to this section and the establishment of such 
other minimum quantities below which Walla Walla Sweet Onion shipments 
will be free from the requirements in, or pursuant to, Secs. 956.42, 
956.62, and 956.63, or any combination thereof.

Proposal No. 8

    Add a new undesignated center heading and a new Sec. 956.70 to read 
as follows:

Inspection


Sec. 956.70  Inspection and certification.

    (a) During any period in which shipments of Walla Walla Sweet 
Onions are regulated pursuant to this subpart, no handler shall handle 
Walla Walla Sweet Onions unless such onions are inspected by an 
authorized representative of the Federal-State Inspection Service, or 
such other inspection service as the Secretary shall designate and are 
covered by a valid inspection certificate, except when relieved from 
such requirements pursuant to Secs. 956.63 and 956.64, or both. Upon 
recommendation of the committee, with approval of the Secretary, 
inspection providers and certification requirements may be

[[Page 15790]]

modified to facilitate the handling of Walla Walla Sweet Onions.
    (b) Regrading, resorting, or repacking any lot of Walla Walla Sweet 
Onions shall invalidate prior inspection certificates insofar as the 
requirements of this section are concerned. No handler shall ship Walla 
Walla Sweet Onions after they have been regraded, resorted, repacked, 
or in any other way further prepared for market, unless such onions are 
inspected by an authorized representative of the Federal-State 
Inspection Service, or such other inspection service as the Secretary 
shall designate: Provided, That such inspection requirements on 
regraded, resorted, or repacked Walla Walla Sweet Onions may be 
modified, suspended, or terminated under rules and regulations 
recommended by the committee, and approved by the Secretary.
    (c) Upon recommendation of the committee, and approval of the 
Secretary, all Walla Walla Sweet Onions that are required to be 
inspected and certified in accordance with this section shall be 
identified by appropriate seals, stamps, tags, or other identification 
to be furnished by the committee and affixed to the containers by the 
handler under the direction and supervision of the Federal-State or 
Federal inspector, or the committee. Master containers may bear the 
identification instead of the individual containers within said master 
container.
    (d) Insofar as the requirements of this section are concerned, the 
length of time for which an inspection certificate is valid may be 
established by the committee with the approval of the Secretary.
    (e) When Walla Walla Sweet Onions are inspected in accordance with 
the requirements of this section, a copy of each inspection certificate 
issued shall be made available to the committee by the inspection 
service.
    (f) The committee may enter into an agreement with the Federal and 
Federal-State Inspection Services with respect to the costs of the 
inspection required by paragraph (a) of this section, and may collect 
from handlers their respective pro rata shares of such costs.
    The Fruit and Vegetable Programs, Agricultural Marketing Service, 
submitted the following proposal:

Proposal No. 9

    Make such changes as may be necessary to the order to conform with 
any amendment thereto that may result from the hearing.

    Dated: March 25, 1998.
Enrique E. Figueroa,
Administrator, Agricultural Marketing Service.
[FR Doc. 98-8434 Filed 3-31-98; 8:45 am]
BILLING CODE 3410-02-P