[Federal Register Volume 69, Number 80 (Monday, April 26, 2004)]
[Rules and Regulations]
[Pages 22377-22382]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-9426]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 956

[Docket No. FV04-956-1 IFR]


Sweet Onions Grown in the Walla Walla Valley of Southeast 
Washington and Northeast Oregon; Establishment of Special Purpose 
Shipping Regulations and Modification of Reporting Requirements

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: This rule establishes procedures to allow the grading, 
packing, or storing of Walla Walla sweet onions outside the production 
area established under the Walla Walla sweet onion marketing order and 
also modifies handler reporting requirements. The marketing order 
regulates the handling of sweet onions grown in the Walla Walla Valley 
of Southeast Washington and Northeast Oregon and is administered 
locally by the Walla Walla Sweet Onion Marketing Committee (Committee). 
Allowing sweet onion market preparation to occur outside the production 
area will increase marketing options for Walla Walla sweet onions and 
may reduce marketing costs. Modification of the reporting requirements 
will contribute to the efficient operation of the program and enhance 
compliance with the special purpose shipment procedures as established 
in this rule.

DATES: Effective April 27, 2004; comments received by June 25, 2004 
will be considered prior to issuance of a final rule. Pursuant to the 
Paperwork Reduction Act, comments on the information collection burden 
must be received by June 25, 2004.

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] 
or www.regulations.gov. 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, or can be viewed at: http://www.ams.usda.gov/fv/moab.html.

FOR FURTHER INFORMATION CONTACT: Barry Broadbent, Marketing Specialist, 
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) 326-7440; or e-mail: [email protected]; 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 businesses 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, both as amended (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.
    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,

[[Page 22378]]

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 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 the 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 the 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.
    Minimum grade, size, maturity, container, and pack requirements are 
authorized under the order, but currently only container markings are 
regulated. This rule establishes procedures and safeguard requirements 
that allow grading, packing, or storing of Walla Walla sweet onions 
outside the production area, but within the States of Oregon and 
Washington. Persons desiring to ship, as well as those desiring to 
receive Walla Walla sweet onions for grading, packing, or storing 
outside the production area will apply and report to the Committee on 
forms provided by the Committee. This rule also increases the existing 
reporting requirements for handlers regulated under the order with the 
addition of a preseason handler registration form and the expansion of 
the current handler shipment statement.
    Section 956.63 of the order provides authority for the USDA to 
issue special regulations to facilitate the shipping of Walla Walla 
sweet onions for grading, packing, or storing outside the production 
area. Further, Sec.  956.66 provides authority for the establishment of 
such safeguards as may be necessary to ensure that Walla Walla sweet 
onions are shipped for the purpose so authorized. Reporting 
requirements are authorized in Sec.  956.80.
    The Committee met on December 8, 2003, and unanimously recommended 
the establishment of procedures and safeguard requirements to allow 
grading, packing, or storing of Walla Walla sweet onions outside the 
production area. At that meeting, the Committee also unanimously 
recommended expanding current handler reporting requirements to include 
a preseason registration form. The Committee met again on February 10, 
2004, and made a unanimous recommendation to broaden the scope of the 
handler shipment statement to include the listing of producers whose 
product was handled and the quantity thereof. Committee members believe 
that this rule will: (1) Allow shippers to use grading, packing, or 
storing facilities that will be most beneficial to their individual 
circumstances; (2) contribute to the efficient operation of the program 
by improving Committee information; and (3) enhance compliance with the 
provisions of the order.
    The grading, packing, and storing costs associated with preparing 
Walla Walla sweet onions for market may vary between onion packing 
facilities inside and outside the production area. There may also be 
differences in the type and variety of packaging options, the 
transportation alternatives available, or the level of services offered 
by individual onion packing facilities inside and outside the 
production area. This rule allows shippers of Walla Walla sweet onions 
the flexibility to pack and ship product from the most advantageous 
facility available, regardless of where in Oregon or Washington that 
facility is located.
    Some examples of situations in which this rule will benefit the 
industry are: (1) A packer outside the area of production is 
experimenting with modified atmosphere packaging that increases the 
shelf life of sweet onions; (2) a Walla Walla sweet onion producer is 
part owner of a packing facility located outside the area of production 
and wishes to pack and store sweet onions in that facility; (3) a 
packing facility outside the area of production can offer rail service 
for shipping and a rail siding is not available within the production 
area; and (4) a fresh produce marketing company that has a packing 
facility outside the area of production desires to begin packing and 
shipping Walla Walla sweet onions.
    The Committee believes that the regulations established under the 
order create orderly marketing, are good for consumers, encourage 
repeat purchases, and ultimately improve returns to producers. 
Therefore, the Committee also recommended the establishment of 
safeguards to ensure that all Walla Walla sweet onions graded, packed 
or stored outside the production area are ultimately subject to the 
requirements established under the order.
    Persons desiring to ship or receive Walla Walla sweet onions for 
grading, packing, or storing outside the production area will apply to 
the Committee on a Shippers/Receivers Application for Certificate of 
Privilege, (SRACP) Form No. 3. Applicants will complete and submit a 
SRACP form each year prior to shipping or receiving Walla Walla sweet 
onions for grading, packing, or storing outside the production area. 
Information collected on the application includes the company name, 
contact name, address, contact telephone numbers, signature of the 
shipper or receiver, date, and such other information as the Committee 
may require. Applicants will agree to furnish reports on shipments of 
sweet onions made under the Certificate of Privilege and will certify 
that all shipments of production area onions for grading, packing, or 
storing outside the production area will be made in accordance with 
order provisions. Those parties acting as receivers under the 
Certificate of Privilege must further agree to forward all assessments 
due on sweet onions handled to the Committee office. If approved, the 
Committee manager will sign the application, assign a Certificate of 
Privilege number for tracking purposes, and return a copy of the 
application to the applicant. If denied, the applicant will be notified 
in writing of the reasons for denial and have an opportunity to appeal 
the Committee's decision.
    After the Committee approves the applications of both the shipper 
and the receiver, Walla Walla sweet onions may be shipped out of the 
production area for grading, packing, or storing. When the parties 
conclude shipping or receiving, both the shipper and receiver will be 
required to submit a Special Purpose Shipment Report, (SPSR) Form No. 
4. Information collected on the SPSR will include the Certificate of 
Privilege number as assigned by the Committee, company name, contact 
name, address, contact telephone numbers, names of the individuals or 
companies shipped to or received from, the total quantities of onions 
shipped or received in 50-pound equivalents, signature of the shipper 
or receiver, date, and such other information as the Committee may 
require.
    The SPSR, as well as any assessments due, will be submitted to the 
Committee no later than 30 days after the date of the last shipment or 
receipt of Walla Walla sweet onions under the Certificate of Privilege. 
The SPSR will also reiterate that it is the receiver of sweet onions 
shipped under the Certificate of Privilege that is responsible for 
payment of the administrative assessment. Shippers and receivers will 
only be required to submit one (1) of these reports annually.

[[Page 22379]]

    This rule also increases handler-reporting requirements by 
requiring the submission of a Walla Walla Sweet Onion Handler 
Registration Form, (Registration) Form No. 2, and by expanding the 
scope of the information required on the existing Handler's Statement 
of Walla Walla Sweet Onion Shipments, (Form No. 1; Form FV-141) 
(Statement). Each year prior to the shipping season, but in no case 
later than May 31, all persons desiring to handle Walla Walla sweet 
onions during the forthcoming season will be required to complete a 
Registration form and submit it to the Committee. Information collected 
on this form includes: Company name, contact name, signature, date, 
addresses, and contact telephone numbers; brands or labels to be 
marketed; estimated acres of production to be packed; and such other 
information as the Committee may require.
    The current Statement, which is submitted to the Committee at the 
end of each shipping season, requires handlers to report the quantity 
of Walla Walla sweet onions handled during the season. This action 
expands the information collected on the Statement to include reporting 
the quantity of Walla Walla sweet onions handled on behalf of each 
producer. Information collected on the Registration and modified 
Statement will greatly enhance order compliance by allowing the 
Committee to compare the two required reports, the pre-season handler 
registration form and the post-season shipment report. This will 
ultimately assist the Committee in monitoring onion shipments and the 
collection of assessments. For example, acreage and production 
information provided by producers will be reconciled with similar 
information collected from handlers to help ensure that all assessable 
sweet onion shipments have been properly reported and that assessments 
have been correctly collected.
    This information collection is important to the Committee in light 
of the regulation relaxation that allows grading, packing, or storing 
outside the production area. The Committee believes that enhancing the 
scope of the reporting requirements is the best way to maintain 
oversight of the special purpose shipment procedures as modified 
herein. In addition to enhancing the Committee's compliance efforts, 
the collection of handler profile information such as addresses and 
contact numbers will also be useful to the Committee for maintaining 
contact throughout the season.

Initial 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 28 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 2003, 674,038 50-pound containers 
of Walla Walla sweet onions were marketed at an average FOB price of 
about $11.50 per container. The total industry value at shipping point 
was approximately $7,751,437, leaving an average annual gross receipt 
per handler of $276,837. Thus, a majority of handlers and producers of 
Walla Walla sweet onions may be classified as small entities.
    Committee meetings are widely publicized in advance of the meetings 
and are held in a location central to the production area. The meetings 
are open to all industry members 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 representative of small business interests in the industry.
    This rule will allow persons to ship or receive Walla Walla sweet 
onions outside the area of production for grading, packing, or storing 
purposes. Persons desiring to do so will first be required to apply to 
the Committee. The applicants will be required to certify that all 
Walla Walla sweet onions graded, packed or stored outside the 
production area would meet any minimum grade, size, maturity, 
container, pack, or inspection requirements established under the 
order. Currently, only container, assessment, and reporting 
requirements are implemented under the order.
    After the Committee completes its review of the application and 
determines that everything is in order, applicants will be granted a 
Certificate of Privilege authorizing them to ship or receive Walla 
Walla sweet onions outside the production area for market preparation. 
At the end of the shipping season, both the shipper and receiver will 
submit reports to the Committee regarding the quantity of Walla Walla 
sweet onions handled under Certificate of Privilege. The authority for 
this action is provided in Sec. Sec.  956.63 and 956.66.
    In addition, this rule expands handler-reporting requirements by 
adding a preseason registration form and by expanding the scope of 
information currently required on the handler's shipment report. These 
changes will provide the Committee with more comprehensive handler 
information that the Committee believes will improve handler compliance 
and enhance safeguards that are currently in place. The additional 
information gathered from the new mandatory report will complement the 
modification to the current reporting requirements and will contribute 
to greater efficiency in the operation of the program. The improved 
safeguards and oversight afforded the Committee with these reporting 
requirement changes is essential to maintaining compliance with 
procedures for market preparation outside the production area. The 
authority for this action is provided in Sec.  956.80.
    Regarding the impact of this action on affected entities, this rule 
will impose minimal additional costs. The Committee estimates that 
about 10 persons may desire to ship or receive Walla Walla sweet onions 
for grading, packing, or storing outside the production area during 
each marketing year. Such shippers and receivers will complete a 
Shippers/Receivers Application for Certificate of Privilege, (Form No. 
3) and submit it to the Committee for approval each year prior to 
shipping or receiving any Walla Walla sweet onions for grading, 
packing, or storing outside the production area. Once the Committee has 
approved the application, the parties will be free to handle sweet 
onions for market preparation out of the production area. After Walla 
Walla sweet onions have been handled pursuant to the Certificate of 
Privilege, both the shipper and receiver will be required to submit a 
Special Purpose Shipment Report, (Form No. 4) to the Committee no later

[[Page 22380]]

than 30 days after the date of the last shipment or receipt of onions. 
The Committee estimates that 10 shippers and receivers will each be 
obligated to submit one (1) of these reports annually. The annual 
industry burden associated with the information collection on both 
forms is estimated to total approximately 3.60 hours.
    The addition of a preseason registration form and the expansion of 
the existing reporting requirements for all Walla Walla sweet onion 
handlers will also impose minimal additional costs on the industry. 
Persons desiring to handle Walla Walla sweet onions will be required to 
complete and submit a Walla Walla Sweet Onion Handler Registration 
Form, (Form No. 2) prior to May 31 of each year. Handlers of sweet 
onions will be required to submit a Handler's Statement of Walla Walla 
Sweet Onion Shipments (Form No. 1; Form FV-141) that is more detailed 
than the one currently in use. The Committee estimates that 28 handlers 
will be affected with a total annual industry burden of approximately 
25.76 hours for both forms.
    The Committee considered one alternative to the part of this 
proposal that allows Walla Walla sweet onions to be graded, packed, or 
stored out of the area. The alternative was to prohibit any grading, 
packing, or storing of Walla Walla sweet onions outside the production 
area. The Committee felt that this alternative would have limited the 
flexibility of shippers in making marketing decisions related to the 
grading, packing, or storing of Walla Walla sweet onions and was 
rejected. Allowing the shipment of Walla Walla sweet onions outside the 
production area for grading, packing, or storing is a relaxation of 
order requirements and any costs related to additional reporting is 
outweighed by the benefits of allowing such shipments.
    The alternatives that the Committee discussed with regard to 
increasing handler reporting requirements were: (1) Maintain the status 
quo and make no changes in the reporting requirements; and (2) make the 
submission of the registration form and producer information on the 
shipment statement voluntary instead of mandatory. Both of these 
options were rejected as not sufficiently addressing the need for 
better handler information to help improve the Committee's ability to 
ensure industry compliance with the order, especially in light of the 
relaxation changes to the order regulations allowing grading, packing, 
or storing outside the production area.
    In addition, the Committee's meetings were widely publicized 
throughout the sweet onion industry and all interested persons were 
invited to attend the meetings and participate in Committee 
deliberations on all issues. Like all Committee meetings, the December 
8, 2003, and the February 10, 2004, meetings were public meetings and 
all entities, both large and small, were able to express 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.ams.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.
    This rule imposes additional reporting and recordkeeping burdens on 
handlers, as well as on producers and marketers who ship or receive 
Walla Walla sweet onions for grading, packing, or storing outside the 
production area. This action requires three new Committee forms and the 
modification of an existing Committee form. The information collection 
requirements are discussed later in this document. As with all Federal 
marketing order programs, reports and forms are periodically reviewed 
to reduce information requirements and duplication by industry and 
public sector agencies. The USDA has not identified any relevant 
Federal rules that duplicate, overlap or conflict with this rule.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
chapter 35), this notice announces that AMS has requested and obtained 
emergency approval from the Office of Management and Budget (OMB) for a 
new information collection request and to revise a currently approved 
information collection for Marketing Order No. 956, regulating the 
handling of sweet onions grown in the Walla Walla Valley of Southeast 
Washington and Northeast Oregon. This emergency approval was assigned 
OMB No. 0581-0221. The emergency request was necessary because 
insufficient time was available to follow normal clearance procedures. 
Upon publication of the final rule, this collection will be merged with 
the forms currently approved for use under OMB No. 0581-0178 ``Generic 
OMB Vegetable Crops.''
    Title: Sweet Onions Grown in the Walla Walla Valley of Southeast 
Washington and Northeast Oregon; Marketing Order No. 956.
    OMB Number: 0581-0221.
    Type of Request: New collection; revision of a currently approved 
information collection.
    Abstract: The information collection requirements in this request 
are essential to carry out the intent of the Act, to provide the 
respondents the type of service they request, and to administer the 
Walla Walla sweet onion marketing order program, which has been 
operating since 1995.
    On December 8, 2003, the Committee unanimously recommended the 
establishment of procedures and safeguard requirements to allow the 
grading, packing, or storing of Walla Walla sweet onions outside the 
production area. At that meeting, the Committee also recommended the 
addition of a preseason handler registration form to the reporting 
requirements. The information requirements created by this action will 
be reported on three new Committee forms. Safeguard requirements 
require any person who wishes to ship or receive Walla Walla sweet 
onions for grading, packing, or storing outside the production area to 
first apply to the Committee on a Shippers/Receivers Application for 
Certificate of Privilege, Form No. 3 prior to shipping or receiving 
product. After the Committee approves the application, the applicant 
will be required to submit a Special Purpose Shipment Report, Form No. 
4 to the Committee after Walla Walla sweet onions are shipped or 
received out of the production area pursuant to a Certificate of 
Privilege. The Committee also recommended expanding current handler 
reporting requirements to include a Walla Walla Sweet Onion Handler 
Registration Form, Form No. 2. The new reporting requirement will help 
ensure compliance with the marketing order regulations and assist the 
Committee and the USDA with oversight and planning.
    The Committee met again on February 10, 2004, and unanimously 
recommended the revision of the current Handler's Statement of Walla 
Walla Sweet Onion Shipments, Form FV-141, Form No. 1 to require that 
sweet onion shipment information be segregated by producer as well as 
by week and region. This additional information will increase the time 
it takes each handler to complete the form from 25 minutes to 40 
minutes, or an additional 6.16 burden hours for this form. The 
Committee believes that this information, used in conjunction with 
other information obtained, will improve their ability to administer 
the

[[Page 22381]]

order. This form has already been approved for 12.60 burden hours by 
OMB under OMB No. 0581-0178.
    The information collected will be used only by authorized 
representatives of the USDA, including AMS, Fruit and Vegetable 
Programs' regional and headquarters' staff, and authorized Committee 
employees. Authorized Committee employees are the primary users of the 
information and AMS is the secondary user.
    The request for approval of the new information collection under 
the order is as follows:

Shippers/Receivers Application for Certificate of Privilege, Form No. 3

    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 2 minutes per response.
    Respondents: Persons who wish to ship or receive Walla Walla sweet 
onions for grading, packing, or storing outside the production area.
    Estimated Number of Respondents: 10.
    Estimated Number of Responses per Respondent: 1.
    Estimated Total Annual Burden on Respondents: 0.30 hours.

Special Purpose Shipment Report, Form No. 4

    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 20 minutes per response.
    Respondents: Persons who ship or receive Walla Walla sweet onions 
for grading, packing, or storing outside the production area.
    Estimated Number of Respondents: 10.
    Estimated Number of Responses per Respondent: 1.
    Estimated Total Annual Burden on Respondents: 3.30 hours.

Walla Walla Sweet Onion Handler Registration Form, Form No. 2

    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 15 minutes per response.
    Respondents: All persons who wish to handle Walla Walla sweet 
onions.
    Estimated Number of Respondents: 28.
    Estimated Number of Responses per Respondent: 1.
    Estimated Total Annual Burden on Respondents: 7.00 hours.

Handler's Statement of Walla Walla Sweet Onion Shipments, Form FV-141; 
Form No. 1

    As previously mentioned, Form FV-141, Handler's Statement of Walla 
Walla Sweet Onion Shipments, is already approved under OMB No. 0581-
0178, for 12.60 hours (30 respondents x .42 hours, equals 12.60 burden 
hours). Because of the additional information being requested, and the 
decrease in the number of respondents (from 30 to 28), the burden for 
this form is being increased to 18.76 burden hours (28 respondents x 
.67 hours), or an additional burden of 6.16 hours.
    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 40 minutes. This is an increase 
from the previous estimate of 25 minutes.
    Respondents: Walla Walla sweet onion handlers.
    Estimated Number of Respondents: 28.
    Estimated Number of Responses per Respondent: 1.
    Estimated Total Annual Burden on Respondents: 18.76 hours.
    Comments: Comments are invited on: (1) Whether this collection of 
information is necessary for the proper performance of the functions of 
the agency, including whether the information will have practical 
utility; (2) the accuracy of the agency's estimate of the burden of the 
proposed collection of information, including the validity of the 
methodology and assumptions used; (3) ways to enhance the quality, 
utility, and clarity of the information to be collected; and (4) ways 
to minimize the burden of the collection of information on those who 
are to respond, including the use of appropriate automated, electronic, 
mechanical, or other technological collection techniques or other forms 
of information technology.
    Comments should reference OMB No. 0581-0221 and the Marketing Order 
for Sweet Onions Grown in the Walla Walla Valley of Southeast 
Washington and Northeast Oregon and be sent to the USDA in care of the 
Docket Clerk at the previously mentioned address. All comments timely 
received will be available for public inspection during regular 
business hours at the same address.
    All responses to this notice will be summarized and included in the 
request for OMB approval. All comments will become a matter of public 
record. As mentioned before, because there was insufficient time for a 
normal clearance procedure and prompt implementation is needed, AMS has 
obtained emergency approval from OMB for the use of this collection of 
forms for the 2004 regulation period, which begins June 2004. Upon 
publication of the final rule, this collection will be merged with the 
forms currently approved for use under OMB No. 0581-0178 ``Generic OMB 
Vegetable Crops.''
    In summary, this rule establishes procedures to allow the grading, 
packing, or storing of Walla Walla sweet onions outside the production 
area established under the Walla Walla sweet onion marketing order and 
also modifies handler reporting requirements. Allowing the preparation 
of sweet onions for market to occur outside the production area will 
increase marketing options for producers and may reduce marketing 
costs. The additional reporting requirements will contribute to the 
efficient operation of the program and assist in ensuring handler 
compliance with marketing order provisions. Any comments received will 
be considered prior to finalization of this 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 good cause exists for not postponing the effective date of 
this rule until 30 days after publication in the Federal Register 
because: (1) The Walla Walla sweet onion marketing season normally 
starts in mid-June and these changes should be in effect by that time 
to achieve their intended purpose; (2) the Committee unanimously 
recommended these changes at public meetings and all interested parties 
had an opportunity to provide input; (3) Walla Walla sweet onion 
producers and handlers are aware of this rule and need no additional 
time to comply with the relaxed requirements; (4) this rule provides a 
30-day comment period on the regulation changes which is deemed 
appropriate, and a 60-day comment period on the reporting reguirement 
changes, and any comments received will be considered prior to 
finalization of this rule.

List of Subjects in 7 CFR Part 956

    Marketing agreements, Onions, Reporting and recordkeeping 
requirements.

0
For the reasons set forth in the preamble, 7 CFR part 956 is amended as 
follows:

[[Page 22382]]

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

0
1. The authority citation for 7 CFR part 956 continues to read as 
follows:

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

0
2. Section 956.163 is amended by adding a new paragraph (b) to read as 
follows:


Sec.  956.163  Handling for specified purposes.

* * * * *
    (b) Market preparation outside the production area. (1) Persons 
desiring to ship or receive Walla Walla sweet onions for grading, 
packing, or storing outside the production area, but within Oregon and 
Washington, shall apply to the Committee on a ``Shippers/Receivers 
Application for Certificate of Privilege'' form. Such application shall 
contain the following:
    (i) Company name, contact name, address, contact telephone numbers, 
date, and signature of the applicant;
    (ii) Whether the applicant is the shipper or receiver;
    (iii) Agreement to provide a Special Purpose Shipment Report to the 
Committee as required after shipping or receiving Walla Walla sweet 
onions for grading, packing, or storing out of the production area 
under a Certificate of Privilege.
    (iv) Certification by the applicant that all provisions of the 
rules and regulations of this part will be adhered to including, but 
not limited to, any grade, size, quality, maturity, pack, or container 
requirements that may be currently in effect;
    (v) Certification by the applicant, if a receiver under the 
Certificate of Privilege, that they will forward to the Committee 
office all assessments due on Walla Walla sweet onions handled.
    (vi) Such other information as the Committee may require.
    (2) Each approved applicant shall furnish to the Committee a 
Special Purpose Shipment Report form no later than thirty (30) days 
after the final shipment of sweet onions are shipped or received 
pursuant to the Certificate of Privilege. That report shall contain the 
following information:
    (i) Company name, contact name, address, contact telephone numbers, 
signature, and date;
    (ii) Names of shippers or receivers who have either shipped Walla 
Walla sweet onions out of the production area or received the same;
    (iii) The total quantity of Walla Walla sweet onions shipped or 
received under this section during the period covered;
    (iv) Certification by the receiver that all assessments due on 
Walla Walla sweet onions handled under the respective Certificate of 
Privilege are being forwarded to the Committee; and
    (v) Such other information as the Committee may require.
    (3) The Committee may cancel any Certificate of Privilege if proof 
satisfactory to the Committee is obtained that any Walla Walla sweet 
onions shipped or received were done so contrary to the provisions of 
this section. Upon cancellation of such Certificate of Privilege the 
shipper or receiver may appeal to the Committee for reconsideration.

0
3. Section 956.180 is revised to read as follows:


Sec.  956.180  Reports.

    (a) Each handler shall furnish to the Committee, no later than May 
31 each year, a preseason Walla Walla Sweet Onion Handler Registration 
Form. Such form shall include:
    (1) Company name, contact name, mailing and physical addresses, 
contact telephone numbers, and signature of handler;
    (2) Season covered by registration;
    (3) Brand names or labels to be used; and
    (4) Estimated number of acres of fall planted and spring planted 
Walla Walla Sweet Onions to be packed during the season.
    (b) Each handler shall furnish to the Committee a Handler's 
Statement of Walla Walla Sweet Onion Shipments containing the 
information paragraphs (a)(1), (a)(2), and (a)(3) of this section, 
except that gift box and roadside stand sales shall be exempt from 
paragraph (a)(2) of this section: Provided, That for Walla Walla Sweet 
Onions handled prior to September 1, such report shall be furnished to 
the Committee by September 1, and that for Walla Walla Sweet Onions 
handled during the period September 1 through May 31 of each fiscal 
period, such report shall be furnished to the Committee no later than 
thirty (30) days after the end of the month in which such onions were 
handled:
    (1) 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;
    (2) The geographical regions as defined by the Committee to which 
each shipment is made;
    (3) The name, address, and signature of each handler; and
    (4) The name of each producer and the number of 50 lb. equivalents 
of Walla Walla Sweet Onions that were handled on behalf of or acquired 
from that producer.

    Dated: April 21, 2004.
Kenneth C. Clayton,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 04-9426 Filed 4-23-04; 8:45 am]
BILLING CODE 3410-02-P