Onions Grown in South Texas; Changes in Bulk Bin Requirements

DEPARTMENT OF AGRICULTURE

7 CFR Part 959

[FV95-959-1FR]

Onions Grown in South Texas; Changes in Bulk Bin Requirements

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: This final rule removes 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 rule also prohibits 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, may continue.

EFFECTIVE DATE: September 11, 1995.

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 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.'' 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 (Department) is issuing this rule in

conformance with Executive Order 12866.

This rule has been reviewed under Executive Order 12778, Civil

Justice Reform. This action 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

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

[[Page 40748]]

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.

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.

Therefore, subparagraph (i) of paragraph (f)(3) Experimental

shipments. is hereby 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. are redesignated (f)(4)

Experimental shipments. but are otherwise unchanged. Both paragraphs

(f)(3) and (f)(4) 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 rule 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.

A proposed rule was published in the Federal Register on June 12,

1995 (60 FR 30794). That rule provided that interested persons could

file comments through July 12, 1995. No comments were received.

Based on available information, the Administrator of 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 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.

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. 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 (f)(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. (i) 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:

* * * * *

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

handler making shipments for processing and peeling, chopping, and

slicing shall:

* * * * *

Dated: August 4, 1995.

Sharon Bomer Lauritsen,

Deputy Director, Fruit and Vegetable Division.

[FR Doc. 95-19777 Filed 8-9-95; 8:45 am]

BILLING CODE 3410-02-P