[Federal Register Volume 68, Number 68 (Wednesday, April 9, 2003)]
[Proposed Rules]
[Pages 17325-17327]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-8648]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 956

[Docket No. FV03-956-1 PR]


Sweet Onions Grown in the Walla Walla Valley of Southeast 
Washington and Northeast Oregon; Fiscal Period Change

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This rule invites comments on a proposed change in the fiscal 
period under the Walla Walla sweet onion marketing order from June 1 
through May 31 to January 1 through December 31. This rule was 
recommended by the Walla Walla Sweet Onion Marketing Committee 
(Committee), the agency responsible for local administration of the 
marketing order regulating the handling of sweet onions grown in the 
Walla Walla Valley of Southeast Washington and Northeast Oregon. The 
current fiscal period has been in place since the marketing order's 
inception in 1995. Because of advance planning needed for market 
promotion, including paid advertising, the Committee now develops its 
budget of expenditures before June 1, but delays actual expenditures 
until that date. This has made it more difficult for the Committee to 
coordinate the timing of marketing promotion activities with the short 
harvest and marketing season for Walla Walla sweet onions. The 
recommended change is expected to help the Committee better coordinate 
its marketing promotion activities with the marketing season--mid-June 
into September.

DATES: Comments must be received by June 9, 2003.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this rule. Comments must be sent to the Docket Clerk, 
Marketing Order Administration Branch, Fruit and Vegetable Programs, 
AMS, USDA, 1400 Independence Avenue SW., STOP 0237, Washington, DC 
20250-0237; Fax: (202) 720-8938; or E-mail: [email protected]. 
Comments should reference the docket number and the date and page 
number of this issue of the Federal Register and will be available for 
public inspection in the Office of the Docket Clerk during regular 
business hours, or can be viewed at: http://www.ams.usda.gov/fv/moab.html.

FOR FURTHER INFORMATION CONTACT: Robert J. Curry, Northwest Marketing 
Field Office, Marketing Order Administration Branch, Fruit and 
Vegetable Programs, AMS, USDA, 1220 SW Third Avenue, suite 385, 
Portland, Oregon 97204-2807; telephone: (503) 326-2724, Fax: (503) 326-
2724; or George Kelhart, Technical Advisor, Marketing Order 
Administration Branch, Fruit and Vegetable Programs, AMS, USDA, 1400 
Independence Avenue SW., STOP 0237, Washington, DC 20250-0237; 
telephone: (202) 720-2491, Fax: (202) 720-8938.
    Small business may request information on complying with this 
regulation by contacting Jay Guerber, Marketing Order Administration 
Branch, Fruit and Vegetable Programs, AMS, USDA, 1400 Independence 
Avenue SW., STOP 0237, Washington, DC 20250-0237; telephone: (202) 720-
2491, Fax: (202) 720-8938, or E-mail: [email protected].

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing 
Agreement and Order No. 956 (7 CFR part 956) regulating the handling of 
Walla Walla sweet onions grown in Southeast Washington and Northeast 
Oregon, hereinafter referred to as the ``order.'' The 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 (USDA) is issuing this rule in 
conformance with Executive Order 12866.

[[Page 17326]]

    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. This rule is not intended to have retroactive effect. 
This rule would 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 USDA 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 USDA 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 USDA's ruling on the petition, 
provided an action is filed not later than 20 days after the date of 
the entry of the ruling.
    This proposed rule would change the fiscal period from June 1 
through May 31 to January 1 through December 31. This rule would also 
make conforming changes to the order's administrative rules and 
regulations. This change was unanimously recommended by the Committee 
at its December 17, 2003, meeting.
    Section 956.40 of the order provides authority for the Committee to 
incur expenses that are reasonable and necessary to operate the 
program. Section 956.42 provides that these expenses be paid by 
assessments levied on fresh shipments of Walla Walla sweet onions. 
Further, Sec.  956.41 provides that an annual budget of expenses be 
prepared by the Committee based on the defined fiscal period. Section 
956.13 of the order defines ``fiscal period'' to mean the period 
beginning on June 1 and ending on May 31 of each year, or such other 
period as may be recommended by the Committee and approved by USDA.
    Walla Walla sweet onions are traditionally harvested from about 
mid-June through about mid-August, although in recent years harvest has 
been extended into September due to an increase in spring planted 
onions and the use of better storage facilities. Walla Walla sweet 
onions have a short shelf life and are therefore generally marketed 
within a relatively short period of time following harvest. During the 
promulgation of the order in 1995, the proponent industry committee--
the organization responsible for drafting the order and presenting it 
during the promulgation hearing--was of the opinion that the new 
order's fiscal period should begin shortly before the marketing season 
began. Testimony during the hearing supported the position that the 
start of the fiscal period should be close to the beginning of the 
season. This was so a minimum of expenses would be incurred prior to 
the time assessment revenue was received by the Committee following the 
sweet onion harvest.
    Experience gained over the last eight years has shown the Committee 
that the June 1 through May 31 fiscal period is not conducive to 
coordinating the timing of its marketing promotion, including paid 
advertising activities, with the short harvest and marketing season for 
Walla Walla sweet onions. The crop is harvested and marketed during a 
four-month period--mid-June into September.
    Because of advance planning needed for marketing promotion 
projects, the Committee now develops its budget of expenditures before 
June 1, but delays actual expenditures until that date. This has made 
it more difficult for the Committee to coordinate the timing of its 
promotion activities with the short harvest and marketing season. The 
Committee believes that better timing of marketing promotion activities 
with the harvest and marketing of Walla Walla sweet onions would 
improve the distribution and consumption of sweet onions. Hence, the 
Committee recommended that the fiscal period begin January 1 and end 
December 31 each year.
    As previously stated, the Committee's current fiscal period is June 
1 through May 31. The Committee plans on formulating a budget for the 
twelve-month period beginning June 1, 2003, and submitting it to the 
USDA for approval prior to that date. The Committee could then begin 
expending funds in early June for its 2003-2004 promotion and research 
plans, as well as for administration costs. Any final rule issued as a 
consequence of this proposed rule would be made effective January 1, 
2004. Thus, the Committee would meet after this proposed change is 
issued as a final rule, but prior to January 1, 2004, to reformulate 
and resubmit a new budget for USDA approval for the new fiscal period 
beginning January 1, 2004, and ending December 31, 2004.
    As conforming changes to the proposed fiscal period change, this 
rule would also update language in Sec.  956.142, Interest charges, and 
Sec.  956.180, Reports by removing the words ``of each fiscal period'' 
wherever they appear.

Regulatory Flexibility Analysis

    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 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 the 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 21 handlers of Walla Walla sweet onions 
subject to regulation under the order and approximately 37 Walla Walla 
sweet onion producers in the regulated area. Small agricultural service 
firms are defined by the Small Business Administration (SBA)(13 CFR 
121.201) 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 $750,000.
    The Committee estimates that in 2002, 611,955 50-pound units of 
Walla Walla sweet onions were marketed at an average FOB price of about 
$9.00 per unit. Thus the total industry value at shipping point was 
about $5,507,595. Thus, a majority of handlers and producers of Walla 
Walla sweet onions may be classified as small entities.
    This proposal would change the current fiscal period from June 1 
through May 31 to January 1 through December 31. The current fiscal 
period has been in place since the marketing order's inception in 1995. 
Because of advance planning needed for marketing promotion projects, 
including paid advertising, the Committee now develops its budget of 
expenditures before June 1, but delays actual expenditures until that 
date. This has made it more difficult for the Committee to coordinate 
the timing of marketing promotion activities with the short harvest and 
marketing season for Walla Walla sweet onions--mid-June into September. 
The Committee believes that better timing of marketing promotion and 
marketing would result with a January 1 through December 31 fiscal 
period and improve the distribution and consumption of Walla Walla 
sweet onions.

[[Page 17327]]

    Section 956.13 of the order defines ``fiscal period'' and provides 
the authority by which this recommended change is being proposed. This 
rule is a change to Committee operations which would not impose any new 
requirements or costs on Walla Walla sweet onion handlers or producers. 
It could, on the other hand, simplify the business operations within 
the Walla Walla sweet onion industry by putting the order's fiscal 
period on the same basis as that of normal business recordkeeping 
practices.
    The Committee discussed the alternative of leaving the fiscal 
period as it presently exists, but unanimously concluded that this 
change, as recommended, would improve program administration.
    This rule would not impose any additional reporting or 
recordkeeping requirements on either small or large Walla Walla sweet 
onion handlers. As with all Federal marketing order programs, reports 
and forms are periodically reviewed to reduce information requirements 
and duplication by industry and public sectors. In addition, USDA has 
not identified any relevant Federal rules that duplicate, overlap or 
conflict with this rule.
    The Committee's meeting was widely publicized throughout the Walla 
Walla sweet onion industry and all interested persons were invited to 
attend the meeting and participate in Committee deliberations. Like all 
Committee meetings, the December 17, 2002, meeting was a public meeting 
and all entities, both large and small, were able to express their 
views on this issue. Finally, interested persons are invited to submit 
information on the regulatory and informational impacts of this action 
on small businesses.
    A small business guide on complying with fruit, vegetable, and 
specialty crop marketing agreements and orders may be viewed at: http://www.ama.usda.gov/fv/moab.html. Any questions about the compliance 
guide should be sent to Jay Guerber at the previously mentioned address 
in the FOR FURTHER INFORMATION CONTACT section.
    A 60-day comment period is provided to allow interested persons to 
respond to this proposal. All written comments timely received will be 
considered before a final determination is made on this matter.

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 
proposed to 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. A new Sec.  956.113 is added to subpart ``Rules and 
Regulations'' to read as follows:


Sec.  956.113  Fiscal period.

    Pursuant to Sec.  956.13, fiscal period shall mean the period 
beginning January 1 and ending December 31 of each year.


Sec.  956.142  [Amended]

    3. Section 956.142 is amended by removing the words ``of each 
fiscal period'' in the second sentence.


Sec.  956.180  [Amended]

    4. Section 956.180 is amended by removing the words ``of each 
fiscal period'' in the introductory text.

    Dated: April 3, 2003.
A. J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 03-8648 Filed 4-8-03; 8:45 am]
BILLING CODE 3410-02-P