[Federal Register Volume 71, Number 103 (Tuesday, May 30, 2006)]
[Proposed Rules]
[Pages 30629-30631]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-8208]


 ========================================================================
 Proposed Rules
                                                 Federal Register
 ________________________________________________________________________
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
 
 ========================================================================
 

  Federal Register / Vol. 71, No. 103 / Tuesday, May 30, 2006 / 
Proposed Rules  

[[Page 30629]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 959

[Docket No. AO-322-A4; FV06-959-1]


Onions Grown in South Texas; Hearing on Proposed Amendment of 
Marketing Agreement No. 143 and Order No. 959

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Notice of hearing on proposed rulemaking.

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SUMMARY: Notice is hereby given of a public hearing to receive evidence 
on proposed amendments to Marketing Agreement No. 143 and Order No. 959 
(order), which regulate the handling of onions grown in South Texas. 
Four amendments are proposed by the South Texas Onion Committee 
(committee), which is responsible for local administration of the 
order. These proposed amendments would: Add authority to the order to 
establish supplemental assessment rates on specified containers; 
authorize interest and late payment charges on assessments not paid 
within a prescribed time period; add authority for the committee to 
engage in marketing promotion and paid advertising activities; and 
authorize container marking requirements on containers of onions prior 
to shipment. Three additional amendments are proposed by the 
Agricultural Marketing Service (AMS). These amendments would: (1) 
Require that a continuance referendum be conducted every six years to 
determine grower support for the order; (2) limit the number of 
consecutive terms of office a member can serve on the committee; and 
(3) make such changes as may be necessary to the order to conform with 
any amendment thereto that may result from the hearing. The proposals 
are intended to provide the industry with additional tools to aid in 
the marketing of onions and to improve the operation and administration 
of the order.

DATES: The hearing will be held on June 15, 2006, in Mission, Texas, 
beginning at 8:30 a.m. and continuing until completed.

ADDRESSES: The hearing location is: 901 Business Park Drive, Texas 
Sweet Conference Room, Mission, Texas 78572.

FOR FURTHER INFORMATION CONTACT: Martin Engeler, Marketing Order 
Administration Branch, Fruit and Vegetable Programs, AMS, USDA, 2202 
Monterey Street, Fresno, California 93721; telephone: (559) 487-5110, 
Fax: (559) 487-5906; or Kathleen M. Finn, 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 this proceeding 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.

SUPPLEMENTARY INFORMATION: This administrative action is instituted 
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 the proposals.
    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. 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.
    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 proposed amendments were recommended by the committee and 
initially submitted to USDA on March 15, 2005. Additional information 
was submitted in October 2005 at the request of USDA and a 
determination was subsequently made to schedule this matter for 
hearing.
    The proposed amendments to the order recommended by the committee 
are summarized as follows:
    1. Amend Sec.  959.42 of the order to authorize establishment of 
supplemental assessment rates for onions packed in specified 
containers.
    2. Amend Sec.  959.42 of the order to authorize charging interest 
and/or late payment fees for assessments not paid within a prescribed 
time period.
    3. Amend Sec.  959.48 of the order to authorize the committee to 
engage in marketing promotion activities, including paid advertising.
    4. Amend Sec.  959.52 of the order to authorize establishment of 
marking requirements to be placed on containers of onions prior to 
shipping.
    The committee works with USDA in administering the order. These 
proposals submitted by the committee have not received the approval of 
USDA. The committee believes that its proposed changes would provide 
additional tools to assist in the

[[Page 30630]]

marketing of South Texas onions and that they would improve the 
administration and operation of the order.
    In addition to the committee proposals, AMS proposes three 
amendments to the order which are summarized as follows:
    5. Amend Sec.  959.84 of the order to require that a continuance 
referendum be conducted every six years to determine grower support for 
the order.
    6. Amend Sec.  959.23 of the order to limit the number of 
consecutive terms of office a member can serve on the committee.
    7. Make such changes as may be necessary to the order to conform 
with any amendment thereto that may result from the hearing.
    The AMS proposals are intended to increase industry participation 
and experience with the order, and to provide a means to measure grower 
support for the order on a periodic basis, consistent with current USDA 
policy. The final AMS proposal would allow such changes to the order as 
may be necessary to conform to any amendment 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.
    Testimony is invited at the hearing on all the proposals and 
recommendations contained in this notice, as well as any appropriate 
modifications or alternatives.
    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, USDA 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 employee of the General 
Counsel assigned to represent the committee in this 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 959

    Marketing agreements, Onions, Reporting and recordkeeping 
requirements.

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

Proposal Number 1

    3. Revise paragraph (b) of Sec.  959.42 to read as follows:


Sec.  959.42  Assessments.

* * * * *
    (b) Based upon the recommendation of the committee or other 
available data, the Secretary shall fix a base rate of assessment that 
handlers shall pay on all onions handled during each fiscal period. 
Upon recommendation of the committee, the Secretary may also fix 
supplemental rates on specified containers, including premium 
containers, identified by the committee and used in the production 
area.
* * * * *

Proposal Number 2

    4. Add a new paragraph (e) to Sec.  959.42 to read as follows:


Sec.  959.42  Assessments.

* * * * *
    (e) If a handler does not pay assessments within the time 
prescribed by the committee, the assessment may be increased by a late 
payment charge or an interest rate charge at amounts prescribed by the 
committee with approval of the Secretary.

Proposal Number 3

    5. Revise Sec.  959.48 to read as follows:


Sec.  959.48  Research and Development.

    The committee, with approval of the Secretary, may establish or 
provide for the establishment of production research, marketing 
research, development projects, and marketing promotion, including paid 
advertising, designed to assist, improve, or promote the marketing, 
distribution, consumption, or efficient production of onions. The 
expenses of such projects shall be paid from funds collected pursuant 
to Sec.  959.42.

Proposal Number 4

    6. In Sec.  959.52, redesignate paragraphs (b)(5) and (b)(6) as 
paragraphs (b)(6) and (b)(7) and add a new paragraph (b)(5) to read as 
follows:


Sec.  959.52  Issuance of Regulations.

* * * * *
    (b) * * *
    (5) Provide a method, through rules and regulations issued pursuant 
to this part, for fixing markings on the container or containers, which 
may be used in the packaging or handling of onions, including 
appropriate logos or other container markings to identify the contents 
thereof.
* * * * *
    Proposals submitted by USDA:

Proposal Number 5

    7. Revise paragraph (a) of Sec.  959.23 to read as follows:


Sec.  959.23  Term of Office.

    (a) The term of office of committee members and their respective 
alternates shall be for two years and shall begin as of August 1 and 
end as of July 31. The terms shall be so determined that about one-half 
of the total committee membership shall terminate each year. Committee 
members shall not serve more than three consecutive terms. Members who 
have served for three consecutive terms may not serve as members for at 
least one year before becoming eligible to serve again. A person who 
has served less than six consecutive years on the committee may not be 
nominated to a new two-year term if his or her total consecutive years 
on the committee at the end of that new term would exceed six years. 
This limitation does not apply to service on the committee prior to the 
enactment of this provision and does not apply to alternates.
* * * * *

Proposal Number 6

    8. In Sec.  959.84, redesignate paragraph (d) as paragraph (e) and 
add a new paragraph (d) to read as follows:


Sec.  959.84  Termination.

* * * * *
    (d) The Secretary shall conduct a referendum within six years after 
the effective date of this paragraph and every sixth year thereafter to 
ascertain whether continuance is favored by producers.
* * * * *

[[Page 30631]]

Proposal Number 7

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

    Dated: May 23, 2006.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
 [FR Doc. E6-8208 Filed 5-26-06; 8:45 am]
BILLING CODE 3410-02-P