Sweet Onions Grown in the Walla Walla Valley of Southeast Washington and Northeast Oregon; Proposed Establishment of Handler Reporting Requirements and Interest Charges on Overdue Assessment Payments, and Notice of Request for Revision of a Currently Approved Information Collection

SUMMARY: This proposed rule would establish handler reporting

requirements and establish interest charges on overdue assessments.

This action also announces the Agricultural Marketing Service's (AMS)

intention to request a revision to the currently approved information

collection requirements issued under the marketing order. This proposed

rule would contribute to the efficient operation of the program by

helping to ensure that assessments are available in a timely manner to

cover budgeted expenses incurred under the marketing order. The

Committee believes that this is the only alternative available to

ensure timely payments of assessments. These proposed changes are

expected to reduce the need for compliance efforts and thereby reduce

the costs to administer the order.

DATES: Comments must be received by July 30, 1996. Pursuant to the

Paperwork Reduction Act, comments to the information collection burden

must be received by September 13, 1996.

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, South

Building, 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 J. Curry, Northwest Marketing

Field Office, Marketing Order Administration Branch, Fruit and

Vegetable Division, AMS, USDA, 1220 SW Third Avenue, room 369,

Portland, Oregon 97204-2807; telephone: (503) 326-2724; or Robert F.

Matthews, Marketing Order Administration Branch, Fruit and Vegetable

Division, AMS, USDA, P.O. Box 96456, room 2523-S, Washington, DC 20090-

6456; telephone: (202) 690-0464.

SUPPLEMENTARY INFORMATION: This rule is proposed under Marketing

Agreement and Order No. 956 (7 CFR part 956; 60 FR 27624, May 24,

1995), regulating the handling of sweet onions grown in the Walla Walla

Valley of southeast Washington and northeast Oregon, hereinafter

referred to as the ``order.'' The order is authorized by the

Agricultural Marketing Agreement Act of 1937, as amended (7 U.S.C. 601-

674), hereinafter referred to as the ``Act.'' This proposed rule was

recommended by the Walla Walla Sweet Onion Committee (Committee), the

agency responsible for the local administration of the marketing order

for sweet onions grown in the Walla Walla Valley.

The Department of Agriculture (Department) is issuing this rule in

conformance with Executive Order 12866.

This proposed rule has been reviewed under Executive Order 12778,

Civil Justice Reform. It is not intended to have retroactive effect. If

adopted, the proposed rule would not preempt any State or local laws,

regulations, or policies, unless they present an irreconcilable

conflict with the proposal.

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 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.

In compliance with the Small Business Regulatory Enforcement Act of

1996, the Agricultural Marketing Service (AMS) has published a ``Small

Business Guide for Complying with Marketing Agreements and Orders for

Fruits, Vegetables and Specialty Crops.'' Interested persons may obtain

a copy of the Guide by contacting: Jay Guerber, Marketing Order

Administration Branch, P.O. Box 96456, room 2523-S, Washington, DC

29909-6456; telephone (202) 720-2491, FAX (202) 720-5698.

Pursuant to requirements set forth in the Regulatory Flexibility

Act (RFA), the Agricultural Marketing Service 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 30 handlers of Walla Walla Sweet Onions

subject to regulation under the marketing order and approximately 50

producers in the regulated production area. Small agricultural service

firms 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 whose annual receipts

are less than $500,000. The majority of Walla Walla Sweet Onion

handlers and producers may be classified as small entities.

This proposed rule would establish interest charges on overdue

assessments

[[Page 36828]]

and establish handler reporting requirements.

This proposed rule would contribute to the efficient operation of

the program by helping to ensure that assessments are available in a

timely manner to cover budgeted expenses incurred under the marketing

order. Those persons large and small who pay in a timely manner would

not be subject to an interest charge. The proposed changes establishing

interest charges are expected to reduce the need for compliance efforts

and thereby reduce the costs to administer the order which will benefit

all persons who are subject to assessments.

The preparation of one form one time each year should not

constitute a significant burden on a business unit, small or large. The

estimated reporting burden per response is 0.323 hours. In addition,

gift box and roadside stand sales would be exempt from reporting the

region to which shipments are made, which should be particularly

favorable to small entities.

Therefore, the AMS has determined that this action would not have a

significant economic impact on a substantial number of small entities.

Interested persons are invited to submit information on the regulatory

and informational impacts of the proposal on small businesses.

The Committee meets prior to each season to consider

recommendations for modification, suspension, or termination of the

regulatory requirements for Walla Walla Sweet Onions. Committee

meetings are open to the public and interested persons may express

their views at these meetings. The Department reviews Committee

recommendations and information submitted by the Committee and other

available information, and determines whether modification, suspension,

or termination of the regulatory requirements would tend to effectuate

the declared policy of the Act.

At its February 15, 1996, meeting the Committee unanimously

proposed the addition of administrative rules and regulations that

would provide a late payment charge for delinquent assessments and a

reporting requirement for handlers.

The Act provides that each handler shall pay to the Committee such

handler's pro rata share of Committee expenses that the Secretary finds

are reasonable and likely to be incurred for the maintenance and

functioning of the Committee. Section 956.42 authorizes the Committee

to levy assessments on handlers of Walla Walla Sweet Onions to cover

each handler's share of Committee expenses.

Section 956.42(f) provides the authority for the Committee to

impose, with the approval of the Secretary, a late payment or an

interest charge on handlers who fail to pay any assessment in a timely

manner. This proposed rule would establish an interest charge of 1 \1/

2\ percent per month to be applied to any assessment balance remaining

unpaid on October 1 of each year.

The Committee depends upon handler assessments for operating funds.

Last year, the first season of operation of the order, some handlers

were late with their assessment payments, with fewer than half

submitting their assessment payments when due. When assessments are not

paid in a timely manner, the handlers paying assessments on time are

placed in an unfair situation compared to the delinquent handlers.

As part of its collection efforts, the Committee requested

delinquent handlers to promptly submit assessment payments. However,

such requests did not substantially hasten the payment of such

delinquent assessments, a few of which were over 120 days delinquent.

To facilitate the collection of assessments needed for the maintenance

and functioning of the Committee, the Committee recommended the

establishment of an interest charge of 1 \1/2\ percent per month to be

applied to assessment balances unpaid after 30 days. Annual assessments

are due from handlers on September 1. The 1-\1/2\ percent interest

charge would be applied monthly, after September 30, to the unpaid

balance, including any accumulated interest.

This proposed change is intended to encourage handlers to pay their

assessments when due, thereby eliminating potential inequities towards

handlers who pay their assessments on time. It would contribute to the

efficient operation of the program by ensuring that adequate funds are

available to cover expenses incurred under the marketing order.

Section 956.80 provides authority for the Committee, with the

approval of the Secretary, to require that each handler 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 under the marketing order.

This proposed rule would also establish a requirement that each

handler submit an annual report, on a form provided by the Committee,

showing their weekly and total yearly shipments of Walla Walla Sweet

Onions by geographical region. The annual handler reporting requirement

would provide the Committee with statistical information regarding

total industry shipments which would be useful to the Committee in

developing a budget and in making marketing and promotion plans for the

upcoming season. The form would include the total number of 50 pound

equivalents of Walla Walla Sweet Onions shipped during each week of the

shipping season and an end of season total. The form will also require

handlers to indicate the geographical regions to which onions are

shipped. The geographical region to which shipments are made would be

useful in planning marketing and promotional activities. The Committee

has drawn up boundaries of 11 geographical regions to help it in

developing its marketing and promotional plans. To effectively promote

and market Walla Walla Sweet Onions, knowledge of market conditions and

access to accurate statistical information is invaluable. The Committee

recommended that handlers be exempt from having to indicate the

geographical region to where the onions were shipped when making

roadside stand and gift box sales. The Committee felt that having to

report the geographical region shipped for every bag of onions sold in

these outlets would be burdensome to handlers making such shipments.

The form would also require handlers to provide their name and

address to properly identify the firm, as a basis for verifying

compliance with the assessment provisions of the order.

In addition to marketing and promotion planning, the information on

the form would help compliance efforts by keeping the committee

informed of handlers' operations. It would enable the Committee manager

to become aware of potential problems and discuss them with the

handlers involved before violations occurred, thus reducing the need

for, and the expense of, compliance action by the Committee and the

Department.

To implement these changes, a new Subpart--Rules and Regulations is

proposed to be added to part 956. Sections 956.142 Interest charges.,

and 956.180 Reports. would be included in that subpart.

A 15-day comment period is provided to allow interested persons to

respond to this proposal. This period is deemed appropriate because the

shipping season, which begins soon, is relatively short and the

Committee needs to gather information on shipments made during the

shipping period. The proposal was recommended by the Committee in a

public meeting and all interested persons were invited to provide

input.

[[Page 36829]]

All written comments received within the comment period will be

considered before a final determination is made on this matter.

Paperwork Reduction Act

In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.

Chapter 35), the AMS announces its intention to request a revision to a

currently approved information collection for Walla Walla sweet onions.

Title: Sweet Onions Grown in the Walla Walla Valley of Southeast

Washington and Northeast Oregon, Marketing Order No. 956.

OMB Number: 0581-0172.

Expiration Date of Approval: March 31, 1998.

Type of Request: Revision of a currently approved information

collection.

Abstract: The information collection requirements in this request

are essential to carry out the intent of the Agricultural Marketing

Agreement Act, to provide the respondents the type of service they

request, and to administer the program.

This proposed rule would establish a requirement that each handler

submit an annual report, on a form provided by the Committee, showing

Walla Walla Sweet Onion shipment information. This information would

facilitate the billing and collection of handler assessments needed for

the maintenance and functioning of the Committee. The information would

also be useful to the Committee in developing a budget and in making

marketing plans for the upcoming season.

The information collected is used only by authorized

representatives of the USDA, including AMS, Fruit and Vegetable

Division regional and headquarter's staff, and employees of the

Committee. Committee employees are the primary users of the information

and AMS employees are secondary users.

Estimate of Burden: Public reporting burden for this proposed

collection of information is estimated to average 0.323 hours per

response.

Respondents: Walla Walla Sweet Onion producers and for-profit

businesses handling fresh Walla Walla Sweet Onions produced in

southwestern Washington and northeastern Oregon.

Estimated Number of Respondents: 82.

Estimated Number of Responses per Respondent: 0.756.

Estimated Total Burden on Respondents: 25 hours.

Comments are invited on: (1) Whether the proposed collection of

information is necessary for the functioning of the Walla Walla Sweet

Onion Marketing Order and the Department's oversight of the program;

(2) the accuracy of the collection burden estimate and the validity of

methodology and assumptions used in estimating the burden on

respondents; (3) ways to enhance the quality, utility, and clarity of

the information requested; and (4) ways to minimize the burden,

including use of automated or electronic technologies.

Comments must be received by September 13, 1996. Comments should

reference OMB No. 0581-0172 and the Walla Walla Sweet Onion Marketing

Order No. 956, and be submitted to Teresa L. Hutchinson, Marketing

Specialist, Northwest Marketing Field Office, Fruit and Vegetable

Division, AMS, USDA, 1220 SW Third Avenue, room 369, Portland, OR

97204; fax 503-326-7440. All comments received will be available for

public inspection during regular business hours at the same address.

All responses to this notice will be summarized and included in the

request for OMB approval.

Because there is insufficient time for normal clearance procedures,

AMS is seeking temporary approval from OMB for the use of this form for

the coming season. The form would be added to the other 5 forms

currently approved for use under OMB Number 0581-0172.

List of Subjects in 7 CFR Part 956

Marketing agreements, Onions, Reporting and record keeping

requirements.

For the reasons set forth in the preamble, it is proposed that 7

CFR part 956 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. In part 956, a new Subpart--Rules and Regulations consisting of

sections 956.142 and 956.180 is added to read as follows:

Subpart--Rules and Regulations

Sec. 956.142 Interest charges.

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 1. The interest charge shall, after 30 days,

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.

Sec. 956.180 Reports.

Each handler shall furnish to the Committee by September 1 of each

year an annual report containing the following information, except that

gift-box and roadside stand sales shall be exempt from paragraph (b):

(a) The number of 50 lb. equivalents of Walla Walla Sweet Onions

shipped by each handler during each week of the shipping season and the

total for the season;

(b) The geographical regions as defined by the Committee to which

each shipment is made; and

(c) The name, address, and signature of each handler.

Dated: July 8, 1996.

Robert C. Keeney,

Director, Fruit and Vegetable Division.

[FR Doc. 96-17868 Filed 7-12-96; 8:45 am]

BILLING CODE 3410-02-P