# 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

> Briefs, arguments, decisions, and more.

URL: https://www.frixlaw.com/law-library/documents/fr%3A96-17868

## Record

- **Collection:** Federal Register
- **Document type:** Proposed Rule
- **Published:** July 15, 1996
- **Citation:** 61 FR 36827

## Text

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

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A96-17868. Public record. Not legal advice.