Agricultural Marketing Service

SUMMARY: This proposed rule would remove a requirement that

polyethylene liners be used in bulk shipping bins. Such liners limit

air flow inside the container and may cause the onions to decay more

easily and result in a loss of product. Removal of this requirement

should reduce product loss due to excessive decay and lessen the

chances of receiver rejection. This proposed rule also would prohibit

the use of bulk bins for shipments of onions for fresh whole use

because the arrival condition of such onions is critical. Onions

transported in bulk bins are not protected from damage, such as

bruising, as well as those packed in smaller size cartons or bags.

However, the arrival condition of onions for fresh chopping, slicing,

or peeling, or other fresh use in which the form of the onion is

changed is not as critical. The use of bulk bins, which are more cost

effective for such shipments, would continue.

DATES: Comments must be received by July 12, 1995.

ADDRESSES: Interested persons are invited to submit written comments

concerning this proposal. Comments must be sent in triplicate to the

Docket Clerk, Fruit and Vegetable Division, AMS, USDA, room 2523-S,

P.O. Box 96456, Washington, DC 20090-6456, FAX (202) 720-5698. 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.

FOR FURTHER INFORMATION CONTACT: 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; or Belinda G. Garza, McAllen Marketing Field Office,

Marketing Order Administration Branch, F&V, AMS, USDA, 1313 East

Hackberry, McAllen, Texas 78501; telephone: (210) 682-2833, FAX (210)

682-5942.

SUPPLEMENTARY INFORMATION: This proposal 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.'' The order is effective under

the Agricultural Marketing Agreement 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 proposal has been reviewed under Executive Order 12778, Civil

Justice Reform. This action is not intended to have retroactive effect.

This proposed rule will not preempt any State or local laws,

regulations, or policies, unless they present an irreconcilable

conflict with this action.

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 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 in equity to review the

Secretary's ruling on the petition, provided a bill in equity 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 Administrator of 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 approximately 35 handlers of South Texas onions who are

subject to regulation under the order and approximately 70 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) recommended deleting a requirement that

perforated polyethylene liners (poly liners) be used in the bulk bins

under the authority for experimental shipments. It also recommended

limiting the use of bulk bins to shipments of onions for peeling,

slicing, chopping, or other fresh use in which the form of the onion is

changed. Fourteen members and alternates were present, and all

recommendations were unanimous.

Sweet onions normally have a high moisture content, and a poly

liner, even when perforated, acts as a vapor barrier. Moisture remains

inside the bin, or container, which can cause mold, bacteria, and other

decay micro-organisms to develop. To avoid such a warm, damp

environment, air circulation is necessary. However, use of the poly

liner blocks air movement and may cause ``sweating'' and decay of the

onions. Because satisfactory arrival condition is important to onion

receivers, the committee recommended that the requirement for poly

liners be removed. This should lessen the chances of receiver

rejections due to excessive decay. [[Page 30795]]

At the meeting, the committee also recommended permitting onions

for fresh peeling, chopping, or slicing to be shipped in bulk bins, as

authorized by the provision for experimental shipments in the handling

regulation. Although bags and cartons provide better protection during

shipping, the committee does not believe that such additional

protection is necessary for onions moving to processing outlets.

Handlers have found that both bags and cartons are more difficult to

load and unload than are bulk containers. In addition, bags and cartons

are more expensive to buy and only last for one shipment, while bins

can be used repeatedly. Also, bags and cartons must be disposed of at

the destination, an additional cost, while bins can be returned for

further use. It is therefore proposed that sub-paragraph (i) of

paragraph (f)(3) Experimental shipments. be revised to remove the

requirement for a poly liner and be limited to shipments for peeling,

slicing, and chopping, and redesignated as (f)(3) Peeling, slicing, and

chopping. The remaining parts of paragraph (3) Experimental shipments.

would be redesignated (f)(4) Experimental shipments. but would be

otherwise unchanged. Both paragraph (f)(3) and (f)(4) would continue to

be subject to the safeguards under paragraph (g).

In accordance with the Paperwork Reduction Act of 1988 (44 U.S.C.

Chapter 35), the information collection requirements that are contained

in this proposal have been previously approved by the Office of

Management and Budget (OMB) under the provisions of 44 U.S.C. Chapter

35 and have been assigned OMB number 0581-0074.

Based on available information, the Administrator of the AMS has

determined that this action would not have a significant economic

impact on a substantial number of small entities.

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

proposed to be 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. Paragraphs (f)(4) and (f)(5) of Sec. 959.322 are redesignated

(f)(5) and (f)(6) respectively; paragraphs (f)(3)(ii) and (f)(3)(iii)

are redesignated (f)(4)(i) and (f)(4)(ii) and revised; paragraph

(f)(3)(i) is redesignated as (b)(3) and revised; and the introductory

text of paragraphs (g) and (g)(4) are revised to read as follows:

Sec. 959.222 Handling regulation.

* * * * *

(f) * * *

(3) Peeling, chopping, and slicing. Upon approval of the committee,

onions for peeling, chopping, and slicing may be shipped in bulk bins

with inside dimensions of 47 inches x 37 1/2 inches x 36 inches deep

and having a volume of 63,450 cubic inches, or containers deemed

similar by the committee. Such shipments shall be exempt from paragraph

(c) of this section, but shall be handled in accordance with the

safeguard provisions of Sec. 959.54 and shall meet the requirements of

paragraphs (a), (b), (d), and (g) of this section.

(4) Experimental shipments. (i) Upon approval by the committee,

onions may be shipped for experimental purposes exempt from regulations

issued pursuant to Secs. 959.42, 959.52, and 959.60, provided they are

handled in accordance with the safeguard provisions of Sec. 959.54 and

paragraph (g) of this section.

(ii) Upon approval of the committee, onions may be shipped for

testing in types and sizes of containers other than those specified in

paragraphs (c) and (f)(2) of this section, provided that the handling

of onions in such experimental containers shall be under the

supervision of the committee.

* * * * *

(g) Safeguards. Each handler making shipments of onions for relief,

charity, processing, experimental purposes, or peeling, chopping and

slicing shall: * * *

(g)(4) In addition to provisions in the preceding paragraphs, each

handler making shipments for processing and peeling, chopping, and

slicing shall:

* * * * *

Dated: June 6, 1995.

Sharon Bomer Lauritsen,

Deputy Director, Fruit and Vegetable Division.

[FR Doc. 95-14277 Filed 6-9-95; 8:45 am]

BILLING CODE 3410-02-P