[Federal Register Volume 61, Number 97 (Friday, May 17, 1996)]
[Rules and Regulations]
[Pages 24877-24878]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-12434]
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Rules and Regulations
Federal Register
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This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
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Federal Register / Vol. 61, No. 97 / Friday, May 17, 1996 / Rules and
Regulations
[[Page 24877]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 959
[Docket No. FV95-959-3FR]
Onions Grown in South Texas; Change in Regulatory Period
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: This final rule changes the end of the regulatory period for
onions grown in South Texas under Marketing Order 959 from June 15 to
June 4 of each year. Terminating the handling regulation on June 4 will
relieve restrictions on handlers who ship late season onions and help
them become more competitive with handlers from non-marketing order
areas without diminishing South Texas marketing order objectives. A
corresponding change in the dates for the import regulation also will
be made in a second document. This final rule also includes a
conforming change recognizing that the onions previously defined as
``Extra large'' are now defined as ``Colossal'' under the U.S. grade
standards for onions.
EFFECTIVE DATE: June 4, 1996.
FOR FURTHER INFORMATION CONTACT: Belinda G. Garza, Marketing Order
Administration Branch, F&V, AMS, USDA, 1313 E. Hackberry, McAllen, TX
78501; telephone: 210-682-2833; FAX 210-682-5942; or Robert F.
Matthews, Marketing Specialist, Marketing Order Administration Branch,
F&V, AMS, USDA, room 2523-S, P.O. Box 96456, Washington, DC 20090-6456;
telephone: 202-690-0464; FAX 202-720-5698.
SUPPLEMENTARY INFORMATION: This final rule is issued under Marketing
Agreement No. 143 and Marketing Order No. 959 (7 CFR part 959), as
amended, regulating the handling of onions grown in South Texas,
hereinafter referred to as the ``order.'' This 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 (Department) is issuing this rule in
conformance with Executive Order 12866.
This final rule has been reviewed under Executive Order 12778,
Civil Justice Reform. This rule is not intended to have retroactive
effect. This final rule will 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 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. After the hearing the Secretary will 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 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.
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.
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. Thus, both statutes have small
entity orientation and compatibility.
There are 35 handlers of South Texas onions who are subject to
regulation under the marketing order and 89 producers in the regulated
area. Small agricultural service firms, which includes handlers, have
been defined by the Small Business Administration (13 CFR 121.601) 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 $500,000. The majority of handlers and producers of South
Texas onions may be classified as small entities.
At a public meeting on November 8, 1994, the South Texas Onion
Committee (committee) unanimously recommended, under the authority of
Sec. 959.52(c) of the order, changing the termination date of the
regulatory period for all varieties of regulated onions from June 15 to
June 4. Currently, order regulations are in effect from March 1 through
June 15 each year. The early and mid-season crop is produced in the
Lower Rio Grande Valley (District 1), which generally accounts for
about 80 percent of the total. The remaining crop, generally 20
percent, is produced in the Laredo-Winter Garden area of South Texas
(District 2). These are the last regulated shipments to leave the
production area each season.
In April 1994, based on a committee recommendation, the regulatory
period was extended from May 20 to June 15 (59 FR 17265; April 12,
1994). At that time, the committee believed that the application of
quality control requirements over a longer time was necessary to
enhance the South Texas onion industry's market research and promotion
efforts, and protect its quality image. The committee also believed
that District 2 handlers should pay assessments on more of their
shipments for the research and promotion programs that benefit the
entire industry.
After one season's experience, District 2 growers and handlers
requested the committee to reconsider the regulatory extension.
Shipments made from District 2 compete with onions produced in West
Texas and other areas of the United States not regulated under Federal
marketing orders. Onion prices are usually quite low during this period
and unregulated areas have a competitive advantage over District 2
because inspection costs for quality control purposes and
administrative assessments are not incurred by shippers from these
areas. Ending regulations on June 4, rather than June
[[Page 24878]]
15, will relieve restrictions on District 2 shippers and help them
become more competitive with shippers from these production areas
without diminishing program objectives.
Section 8e provides that whenever certain specified commodities,
including onions, are regulated under a Federal marketing order,
imports of that commodity must meet the same or comparable grade, size,
quality, and maturity requirements as those in effect for the
domestically produced commodity, subject to concurrence by the United
States Trade Representative. The Act further provides that when two or
more marketing orders covering the same commodity are concurrently in
effect, imports will be subject to the requirements established for the
commodity grown in the area with which the imported commodity is in
most direct competition. Because this rule changes the regulatory
period under the South Texas onion marketing order, corresponding
changes will be needed in the onion import regulations. Such changes
are addressed in a separate onion import rule.
The proposed rule concerning this action was published in the
February 20, 1996, Federal Register (61 FR 6328), with a 30-day comment
period ending March 21, 1996. One comment was received in opposition to
the proposed rule from a packer. The commenter stated that both South
Texas and Idaho-Eastern Oregon successfully compete with onion
producing areas that are not regulated. He further stated that he
believed that the order was necessary to improve quality and thus make
the production area a stronger competitor in the onion industry. The
committee contends that this competition tends to bring about low
prices to the late producing areas, and sometimes the addition of an
administrative assessment and inspection fee may leave the shipper of
late season South Texas onions at a competitive disadvantage. Thus, the
committee believes that removing inspection and assessment requirements
for a very short period will help shippers of late onions meet the
competition from production areas outside of South Texas without
diminishing program objectives.
After thoroughly analyzing the comment received and other available
information, the Department has concluded that ending the regulatory
period on June 4, rather than June 15, as recommended by the committee
will reduce the regulatory burden on late season shippers and help them
compete more effectively with shippers from unregulated areas in the
United States without adversely affecting the overall objectives of the
marketing order. As mentioned earlier, onion prices are usually quite
low late in the season and unregulated areas have a competitive
advantage over the late season shippers from South Texas because
inspection costs for quality control purposes and administrative
assessments are not incurred by shippers from many of these areas.
This final rule also changes the name of the largest size
classification of onions under the handling regulation (7 CFR
959.322(b)(5)) from ``Extra large'' to ``Colossal'' to bring that
designation into conformity with the designation used in the U.S.
Standards for Grades of Bermuda-Granex-Grano Type Onions (7 CFR
51.3195-51.3209), and the U.S. Standards for Grades of Onions (Other
Than Bermuda-Granex-Grano and Creole Types) (7 CFR 51.2830-51.2854).
The standards were revised effective October 10, 1995 (60 FR 46976).
One of the revisions was the addition of a new size classification
called ``Colossal'' for onions 3\3/4\ inches or larger in diameter. A
conforming change failed to be made in the handling regulations and
onions of this size continued to be referred to as ``Extra large'' in
paragraph (b)(5) of section 959.322. Hence, this term should be changed
to ``Colossal'' to bring the handling regulation into conformity with
the standards. The committee recommended this minor conforming change.
In accordance with section 8e of the Act, the United States Trade
Representative has concurred with the issuance of this final rule.
Based on the above, the AMS has determined that this action will
not have a significant economic impact on a substantial number of small
entities.
After consideration of all relevant matter presented, including the
information and recommendations submitted by the commenter, committee
and other available information, it is hereby found that this rule, as
hereinafter set forth, will tend to effectuate the declared policy of
the Act.
Pursuant to 5 U.S.C 553, it is further found that good cause exists
for not postponing the effective date of this action until 30 days
after publication in the Federal Register because: (1) This regulation
relaxes restrictions on South Texas onion handlers by ending
regulations on June 4 of each season rather than June 15 of each
season; (2) the shipping season for South Texas onions has already
begun and the committee would like this action effective for this
season; (3) changing the ending date of the handling regulation was
discussed at a public meeting, and all interested persons had an
opportunity to provide input; and (4) there are no additional
regulatory burdens imposed by this rule which require special
preparations of handlers.
List of Subjects in 7 CFR Part 959
Marketing agreements, Onions, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 959 is hereby
amended as follows:
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. In Sec. 959.322, the introductory text and paragraph (b)(5) are
revised to read as follows:
Sec. 959.322 Handling regulation.
During the period beginning March 1 and ending June 4, no handler
shall handle any onions unless they comply with paragraphs (a) through
(d), or (e), or (f) of this section. In addition, no handler may
package or load onions on Sunday during the period March 1 through May
20.
* * * * *
(b) * * *
(5) ``Colossal''--3\3/4\ inches or larger in diameter.
* * * * *
Dated: May 14, 1996.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 96-12434 Filed 5-16-96; 8:45 am]
BILLING CODE 3410-02-P
