[Federal Register Volume 75, Number 69 (Monday, April 12, 2010)]
[Proposed Rules]
[Pages 18428-18430]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-8267]


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 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.
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  Federal Register / Vol. 75, No. 69 / Monday, April 12, 2010 / 
Proposed Rules  

[[Page 18428]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 956

[Doc. No. AMS-FV-10-0020; FV10-956-1 PR]


Sweet Onions Grown in the Walla Walla Valley of Southeast 
Washington and Northeast Oregon; Changes to Reporting and Assessment 
Due Dates

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This rule invites comments on proposed changes to the 
reporting and assessment date requirements prescribed under the 
marketing order regulating the handling of sweet onions grown in the 
Walla Walla Valley of southeast Washington and northeast Oregon. The 
marketing order is administered locally by the Walla Walla Sweet Onion 
Marketing Committee (hereinafter referred to as the ``Committee''). 
This rule would revise the submission due date for certain handler 
reports and assessment payments from September 1 to September 30. The 
proposed changes would allow handlers additional time to compile 
requisite information and submit it to the Committee. It is expected 
that this action would improve handler compliance with the 
administrative requirements of the marketing order.

DATES: Comments must be received by May 12, 2010.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposal. 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 Internet: http://www.regulations.gov. All comments should reference the document 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.regulations.gov. All comments submitted in response to this rule 
will be included in the record and will be made available to the 
public. Please be advised that the identity of the individuals or 
entities submitting the comments will be made public on the Internet at 
the address provided above.

FOR FURTHER INFORMATION CONTACT: Barry Broadbent, Marketing Specialist 
or Gary Olson, Regional Manager, Northwest Marketing Field Office, 
Marketing Order Administration Branch, Fruit and Vegetable Programs, 
AMS, USDA; Telephone: (503) 326-2724, Fax: (503) 326-7440, or E-mail: 
[email protected] or [email protected]. Small 
businesses may request information on complying with this regulation by 
contacting Antoinette Carter, 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 proposal is issued under Marketing 
Agreement and Order No. 956, both as amended (7 CFR part 956), 
regulating the handling of sweet onions in the Walla Walla Valley of 
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 proposal has been reviewed under Executive Order 12988, Civil 
Justice Reform. This rule is not intended to have retroactive effect.
    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 proposal invites comments on revisions to the due dates 
currently prescribed in the order's administrative rules for certain 
reports and assessment payments. This rule would change the submission 
due date for handler shipment statements and assessment payments for 
Walla Walla sweet onions shipped prior to September 1 (hereinafter 
referred to as ``regular season'') from September 1 to September 30. 
The proposed due date change would allow handlers needed time to 
compile information, file reports, and pay assessments. It is expected 
that this action would improve handler compliance with the order's 
reporting and assessment requirements. The proposed rule was 
unanimously recommended by the Committee at its February 2, 2010, 
meeting.
    Currently, Sec.  956.80 of the order provides that, upon request of 
the Committee, with the approval of the Secretary, each handler shall 
furnish to the Committee, in such manner and at such time as it may 
prescribe, such reports and other information as may be necessary for 
the Committee to perform its duties. In addition, Sec.  956.42(a) 
provides that each person who first handles Walla Walla sweet onions 
shall pay assessments to the Committee upon demand.
    Section 956.180(b) of the order's administrative rules currently 
prescribes that each handler shall furnish to the Committee a Handler's 
Statement of Walla Walla Sweet Onion Shipments. For Walla Walla sweet 
onions handled prior to September 1, such report shall be furnished to 
the Committee by September 1. In addition, Sec.  956.142 currently 
provides that, for Walla Walla Sweet Onions handled prior to September 
1, annual assessments are due September 1.
    At its meeting on February 2, 2010, the Committee recommended that 
the

[[Page 18429]]

order's reporting and assessment due dates for regular season shipments 
be changed to allow handlers additional time to fulfill these 
requirements. At the time the order was promulgated in 1995, the Walla 
Walla sweet onion shipping season typically concluded at the end of 
July or early in August. As such, the Committee established a September 
1 deadline for submitting reports and paying assessments, which gave 
handlers most of the month of August to accumulate information and 
prepare their reports and assessment payments.
    Recently, however, handlers have indicated to the Committee that 
advancements in Walla Walla sweet onion production and storage 
techniques have extended the regular season for the shipment of such 
onions until the end of August. As a result, it has become more 
difficult for handlers to gather the information required in time to 
meet the September 1 deadline for reporting shipments and paying 
assessments. Changing the due date for submission of the handler's 
shipment statement and assessment payment for regular season shipments 
from September 1 to September 30 would allow handlers the needed time 
to complete the requirements and submit them to the Committee.

Initial Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), 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 rules issued thereunder, are unique in that 
they are brought about through group action of essentially small 
entities acting on their own behalf.
    There are approximately 28 handlers of Walla Walla sweet onions who 
are subject to regulation under the marketing 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 $7,000,000, and small agricultural producers are defined 
as those having annual receipts of less than $750,000.
    Based on information from the Committee for the 2009 shipping 
season, handlers shipped 621,218 50-pound equivalents of Walla Walla 
sweet onions. At an average price of $11.50 per 50-pound equivalent, 
total handler revenue was approximately $7,144,000 and average revenue 
per handler was approximately $255,100. Also based on information from 
the Committee, producers harvested an average of 24 acres of Walla 
Walla sweet onions, with an average production of 699 50-pound 
equivalents per acre. With an average farm gate value of $8.75 per 50-
pound equivalent, Walla Walla sweet onion producers averaged 
approximately $146,800 in gross receipts for the year. Based on this 
information, the majority of handlers and producers of Walla Walla 
sweet onions may be classified as small entities under SBA's standards.
    This proposal would revise the due dates currently contained in 
Sec. Sec.  956.180 and 956.142 of the order for the submission of 
regular season handler reports and assessment payments for Walla Walla 
sweet onions handled from June 1 through August 31. The deadline for 
submitting reports and assessment payments for such onion shipments 
would be revised from September 1 to September 30. The proposed change 
would not affect reporting and assessment payment due dates for late 
season Walla Walla sweet onions shipped during the September 1 through 
May 31 period, which would remain 30 days after the end of the month in 
which the onions were handled. The proposed due date change would allow 
handlers needed time to compile information, file reports and pay 
assessments. Authority for this action is provided in Sec. Sec.  
956.42(f) and 956.80.
    The order provides that each handler who ships Walla Walla sweet 
onions shall furnish to the Committee a Handler's Statement of Walla 
Walla Sweet Onion Shipments and shall pay a pro rata assessment. 
Currently, handlers who handle Walla Walla sweet onions prior to 
September 1 are required to submit the shipment statement by September 
1. Late season shipments of Walla Walla sweet onions handled after 
September 1 are required to be reported within 30 days after the last 
day of the month in which the sweet onions were shipped. Handler 
assessments are due the same date that the shipment statements are due. 
Interest charges of 1\1/2\ percent of the unpaid balance are imposed on 
any assessments which are not paid within 30 days of their due date.
    At its February 2, 2010, meeting, the Committee discussed whether 
the current due dates for certain reports and assessment payments 
needed to be changed to allow more time for handlers to comply with the 
marketing order's requirements. Handlers stated at the meeting that 
advancements in both the production and storage of Walla Walla sweet 
onions had extended the marketability of their product well into 
August, whereas, traditionally, their primary marketing season ended 
around the end of July. As such, the handlers explained that there is 
now less time between the end of their shipping period and the 
reporting deadline to compile information, complete reports and pay 
their assessments. The Committee staff indicated that compliance with 
the order's reporting and assessment requirements would likely improve 
if handlers were given additional time to fulfill them.
    The Committee discussed alternatives to this change, including 
extending the due dates even further; requiring submission of reports 
and assessments monthly instead of at the end of the regular season; 
changing the due dates, but adding a late penalty; and not making any 
changes. However, the Committee believes that the proposed changes 
adequately address the concerns of the handlers while maintaining 
sufficient consequences for noncompliance and reasonable timelines for 
the administration of the order.
    This rule is not expected to have any economic impact on handlers 
or producers of any size. The benefits of this rule are not expected to 
be disproportionately greater or less for small handlers or producers 
than for larger entities.
    Information collected under this order is currently approved under 
OMB No. 0581-0178. This proposed rule would not impose any additional 
reporting or recordkeeping requirements on either small or large Walla 
Walla sweet onion handlers. As stated above, information collected 
would not change with this rule; only the date on which the collection 
is required to be submitted would be revised. 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.
    AMS is committed to complying with the E-Government Act, to promote 
the use of the Internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services, and for other purposes.
    USDA has not identified any relevant Federal rules that duplicate, 
overlap or conflict with this proposed rule.
    In addition, the Committee's meeting was widely publicized 
throughout the

[[Page 18430]]

Walla Walla sweet onion industry and all interested persons were 
invited to attend the meeting and participate in Committee 
deliberations on all issues. Like all Committee meetings, the February 
2, 2010, meeting was a public meeting and all entities, both large and 
small, were able to express views on this issue. Finally, interested 
persons are invited to submit comments on this proposed rule, including 
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. Any questions about the compliance guide should be 
sent to Antoinette Carter at the previously mentioned address in the 
FOR FURTHER INFORMATION CONTACT section.
    A 30-day comment period is provided to allow interested persons to 
respond to this proposal. Thirty days is deemed appropriate because 
this rule, if adopted, should be in place as soon as possible to inform 
handlers of the new reporting and assessment payment deadlines for the 
upcoming shipping season, which begins in June 2010. 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. Revise Sec.  956.142 to read as follows:


Sec.  956.142  Interest charges.

    For Walla Walla Sweet Onions handled prior to September 1, the 
Committee shall impose an interest charge on any handler who fails to 
pay his or her annual assessments within thirty (30) days of the due 
date of September 30. For Walla Walla Sweet Onions handled during the 
period September 1 through May 31, the Committee shall impose an 
interest charge on any handler who fails to pay his or her assessments 
within thirty (30) days of the last day of the month in which such 
shipments are made. The interest charge shall be 1\1/2\ percent of the 
unpaid assessment balance. In the event the handler fails to pay the 
delinquent assessment amount within 60 days following the due date, the 
1\1/2\ percent interest charge shall be applied monthly thereafter to 
the unpaid balance, including any accumulated interest. Any amount paid 
by a handler as an assessment, including any charges imposed pursuant 
to this paragraph, shall be credited when the payment is received in 
the Committee office.
    3. Revise the introductory text of Sec.  956.180(b) to read as 
follows:


Sec.  956.180  Reports.

* * * * *
    (b) Each handler shall furnish to the Committee a Handler's 
Statement of Walla Walla Sweet Onion Shipments containing the 
information in 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 30, and that for Walla Walla Sweet Onions 
handled during the period September 1 through May 31, 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:
* * * * *

    Dated: April 7, 2010.
Rayne Pegg,
Administrator, Agricultural Marketing Service.
[FR Doc. 2010-8267 Filed 4-9-10; 8:45 am]
BILLING CODE 3410-02-P