[Federal Register Volume 60, Number 65 (Wednesday, April 5, 1995)]
[Proposed Rules]
[Pages 17274-17284]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-8428]



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Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

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Federal Register / Vol. 60, No. 65 / Wednesday, April 5, 1995 / 
Proposed Rules
[[Page 17274]]

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 956

[Docket No. 94AMA-FV-956-1; FV93-956-1PR]


Sweet Onions Grown in the Walla Walla Valley of Southeast 
Washington and Northeast Oregon; Secretary's Decision and Referendum 
Order on the Proposed Marketing Agreement and Order

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This decision proposes the issuance of a marketing agreement 
and order for Walla Walla Sweet Onions in southeast Washington and 
northeast Oregon and provides growers the opportunity to vote in a 
referendum to determine if they favor the proposed order. For the 
purposes of this document, the term ``Walla Walla Sweet Onions'' refers 
to sweet onions grown in the proposed production area, which consists 
of designated parts of Walla Walla County, Washington, and designated 
parts of Umatilla County, Oregon. The proposed order and agreement 
would authorize production and marketing research and marketing 
development and promotion projects, including paid advertising, and 
would authorize container markings. The order would be administered by 
a ten-member committee consisting of six producer members, three 
handler members, and a public member. The order would be financed by 
assessments on handlers of Walla Walla Sweet Onions grown in the 
production area. A primary objective of this program would be to 
improve producer returns by strengthening consumer demand through 
various promotional activities and by reducing production and marketing 
costs through production and marketing research. Walla Walla Sweet 
Onion producers would vote in a referendum to determine if they favor 
issuance of the proposed marketing order.

DATES: The referendum shall be conducted from April 7 through April 14, 
1995. The representative period for the purpose of the referendum 
herein ordered is January 1, 1994, through December 31, 1994.

FOR FURTHER INFORMATION CONTACT: Gary D. Olson, Northwest Marketing 
Field Office, Marketing Order Administration Branch, Fruit and 
Vegetable Division, AMS, USDA, 1220 S.W. Third Avenue, room 369, 
Portland, Oregon, 97204; telephone: 503-326-2724, FAX: 503-326-7440; or 
Robert F. Matthews, Marketing Order Administration Branch, Fruit and 
Vegetable Division, AMS, USDA, P.O. Box 96456, room 2523-S, Washington, 
D.C. 20090-6456; telephone: 202-690-0464, FAX: 202-720-5698.

SUPPLEMENTARY INFORMATION: Prior documents in this proceeding: Notice 
of Hearing, issued October 26, 1993, and published in the Federal 
Register on October 29, 1993 (58 FR 58105); Recommended Decision and 
Opportunity to File Written Exceptions to the Proposed Marketing 
Agreement and Order, issued November 3, 1994, and published in the 
Federal Register on November 10, 1994 (59 FR 56254).
    This administrative action is governed by the provisions of 
sections 556 and 557 of Title 5 of the United States Code, and is 
therefore excluded from the requirements of Executive Order 12866.

Preliminary Statement

    This proposed marketing agreement and order was formulated on the 
record of a public hearing held at Walla Walla, Washington, on November 
15, 1993, to consider a proposed marketing agreement and order 
regulating the handling of sweet onions grown in the Walla Walla Valley 
of Southeast Washington and Northeast Oregon. The hearing was held 
pursuant to the provisions of the Agricultural Marketing Agreement Act 
of 1937, as amended (7 U.S.C. 601-674), hereinafter referred to as the 
Act, and the applicable rules of practice and procedure governing the 
formulation of marketing agreements and marketing orders (7 CFR part 
900). Approximately 25 witnesses, including Walla Walla Sweet Onion 
producers, handlers, and a Washington State University researcher, 
testified in support of the order. Proponents emphasized that Walla 
Walla Sweet Onion producers need a Federal marketing order to 
effectively compete with other sweet onion producing areas. No one 
present at the hearing testified in opposition to the proposed order. 
At the close of the hearing, January 15, 1994, was established as the 
date by which briefs, statements, and proposed corrections to the 
transcript were due. No briefs were received.
    The proponents testified that Walla Walla Sweet Onion producers, in 
order to remain competitive with other sweet onion producing areas, 
must conduct research and promotion programs to reduce production and 
marketing costs and increase sales. Such programs should include 
production and marketing research projects and promotion projects, 
including paid advertising.
    Testimony indicated that voluntary research and development efforts 
by the Walla Walla Sweet Onion industry have not been successful 
because of the lack of a coherent research and development plan with 
broad-based industry support. Also, a relatively small percentage of 
the U.S. onion crop is produced in the proposed production area in 
Walla Walla County, Washington, and Umatilla County, Oregon, and 
individual producers and handlers cannot implement an effective 
research, marketing development, and promotion program. By contrast, 
most other onion growing areas in the United States are large enough to 
convince private entities, such as seed companies, to conduct 
production research and developmental efforts with the result being new 
varieties specifically suited to those areas. Proponents believe that 
an industry-wide program is therefore necessary to enable the pooling 
of resources to address common problems. A single producer or even two 
or three producers cannot marshal the resources necessary to conduct 
effective research, marketing, and promotion programs including paid 
advertising.
    Upon the basis of evidence introduced at the hearing and the record 
thereof, the Administrator of the Agricultural Marketing Service (AMS) 
on November 3, 1994, filed with the Hearing Clerk, U. S. Department of 
Agriculture, a Recommended Decision and Opportunity to File Written 
Exceptions Thereto by December 12, 1994. [[Page 17275]] 
    One exception was received from Mr. David R. Darrington of Agri-
Pack, Inc., Pasco, Washington. Mr. Darrington's exception concerned : 
(1) His belief that the proponent group's intent was to limit the 
production of Walla Walla Sweet Onions and competition among Walla 
Walla producers and handlers; (2) his belief that low producer returns 
in recent years were due to low quality onions; (3) the extent of sweet 
onion production in the State of Washington; (4) the sweetness of Walla 
Walla onions on a season to season basis; and (5) the soil type 
required to grow Walla Walla Sweet Onion varieties that can be marketed 
as Walla Walla Sweet Onions, and the size of the proposed production 
area. These points are discussed in the Findings and Conclusions below.

Small Business Consideration

    In accordance with the Regulatory Flexibility Act (RFA) (5 U.S.C. 
601 et seq.), the Administrator of the Agricultural Marketing Service 
considered the economic impact of this action on small entities. The 
record indicates that there are approximately nine handlers of Walla 
Walla Sweet Onions in the proposed production area and 50 producers. 
Small agricultural service firms have been defined by the Small 
Business Administration (SBA) (13 CFR 121.601) as those whose annual 
receipts are less than $5,000,000, and small agricultural producers as 
those having annual receipts of less than $500,000. The majority of the 
handlers and producers may be classified as small entities.
    During the 1992 season, commercial shipments of Walla Walla Sweet 
Onions totaled about 390,000 hundredweight at an average f.o.b. price 
of $16.60 per hundredweight for a total value of $6,474,000. An 
indeterminate volume, probably about 10 percent, was sold at roadside 
stands. While there is a great variance in the size of individual 
handlers' operations, the record indicates that nearly all of the 
handlers that would be regulated under this order would qualify as 
small firms under the SBA's definition. Witnesses testified that 
because most of the producers and handlers of Walla Walla Sweet Onions 
are small, they are unable to individually finance the types of 
research and promotion efforts needed by the industry. A marketing 
order program would provide a means for these small entities to pool 
their resources and work together to solve their common problems. 
Witnesses testified that such action is necessary for this relatively 
small industry to remain profitable in the face of intense competition 
from larger production areas.
    Acreage and supplies of Walla Walla Sweet Onions have declined in 
recent years, and proponents believe that the order would provide a 
much needed means of halting a drop in grower returns experienced in 
past seasons. This would be achieved by strengthening demand, 
developing new markets for existing supplies and encouraging increased 
production. Also, costs could be reduced through production research. 
Thus, the order would be expected to have a positive impact on producer 
returns.
    The order would authorize the collection of assessments from 
handlers of Walla Walla Sweet Onions grown in designated parts of Walla 
Walla County, Washington, and Umatilla County, Oregon. Assessment funds 
would be used to finance production research projects that could reduce 
costs by reducing the occurrence of onion diseases, controlling plant 
pests, and developing varieties with more desirable flavor, quality, 
and size. Assessment funds could also be used to strengthen demand and 
expand markets for Walla Walla Sweet Onions through marketing research 
and development and product promotion programs, including paid 
advertising. Projects to develop better methods of handling, shipping 
or storing onions, to explore additional or alternative uses of onions, 
to check nutritive values, and similar research are some examples of 
marketing research. Examples of marketing development projects include 
exploring marketing possibilities, contacting buyers, distributing 
educational material relating to the handling and marketing of onions, 
and the dissemination of the results of current or past marketing 
research projects.
    The order would be administered by a committee composed of Walla 
Walla Sweet Onion producers, handlers, and a public member nominated by 
growers and handlers and selected by the Secretary of Agriculture 
(Secretary). Daily administration of the order would be carried out by 
a staff hired by the committee. The order would not regulate the 
production of Walla Walla Sweet Onions and would place no restriction 
on the quality or quantities of Walla Walla Sweet Onions that could be 
handled.
    The principal requirements of the order that would affect handlers 
would be the requirements that they pay assessments on fresh market 
shipments of Walla Walla Sweet Onions to fund research and promotion 
programs and that container markings could be regulated. The amount of 
the assessment rate is not specified in the proposed order, but 
witnesses at the hearing indicated that an appropriate rate might be 
five cents per 50-pound bag for administrative costs; research and 
promotion costs could require an additional five to seven cents per bag 
or more. Any assessment rate to cover committee expenses that may be 
established would be recommended by the committee to the Secretary for 
approval.
    The order would also impose some reporting and recordkeeping 
requirements on handlers. Handler testimony indicated that the expected 
burden that would be imposed with respect to these requirements would 
be negligible. Most of the information that would be reported to the 
committee is already compiled by handlers for other uses and is readily 
available. In compliance with Office of Management and Budget (OMB) 
regulations (5 CFR part 1320) which implement the Paperwork Reduction 
Act of 1980 (44 U.S.C. Chapter 35) and section 3504(h) of that Act, the 
information collection and recordkeeping requirements that may be 
imposed by this order have been submitted to OMB for approval. Those 
requirements would not become effective prior to OMB approval. Any 
requirements imposed would be evaluated against the potential benefits 
to be derived and it is expected that any added burden resulting from 
increased recordkeeping would not be significant when compared to those 
anticipated benefits.
    Reporting and recordkeeping requirements issued under comparable 
marketing order programs impose an average annual burden on each 
regulated handler of about one hour and a two year record retention 
requirement. It is reasonable to expect that a comparable burden may be 
imposed under this order on the estimated nine handlers of Walla Walla 
Sweet Onions.
    The Act requires that prior to the issuance of an order, a 
referendum be conducted of affected producers to determine if they 
favor issuance of the order. The ballot material that will be used in 
conducting the referendum will be submitted to and approved by OMB 
prior to use. It is estimated that it would take an average of 10 
minutes for each of the approximately 50 Walla Walla Sweet Onion 
growers to participate in the voluntary referendum balloting. 
Additionally, it has been estimated that it would take approximately 
ten minutes for each of the nine handlers to complete the marketing 
agreement. In determining that the order would not have a significant 
economic impact on [[Page 17276]] a substantial number of small 
entities, all of the issues discussed above were considered. The order 
provisions have been carefully reviewed and every effort has been made 
to eliminate any unnecessary costs or requirements. Although the order 
may impose some additional costs and requirements on handlers, it is 
anticipated that the order would help to strengthen demand for Walla 
Walla Sweet Onions. Therefore, any additional costs should be offset by 
the benefits derived from expanded markets and sales benefitting 
handlers and producers alike. Accordingly, it is determined that the 
order would not have a significant economic impact on a substantial 
number of small handlers or producers.

Findings and Conclusions

    The material issues, findings and conclusions, rulings, and general 
findings and determinations included in the Recommended Decision set 
forth in the November 10, 1994, issue of the Federal Register (59 FR 
56254) are hereby approved and adopted subject to the following 
additions and modifications:
    In his exception, Mr. Darrington stated his support for research 
and promotion programs. However, he also stated that he believes the 
proponent group's intent is to limit production of Walla Walla Sweet 
Onions and competition among Walla Walla producers and handlers. The 
Act, which is the legislative authority for the proposed order, 
provides no authority to either limit the production of a commodity or 
restrict competition within an industry. The proposed production area 
has been recognized since the beginning of the twentieth century as 
having unique soil properties, properties the adjacent areas do not 
share, to the same degree. However, the production of Walla Walla Sweet 
Onions uses less than half of the acreage in the Walla Walla Valley; 
growers wishing to produce Walla Walla Sweet Onions could buy, lease, 
or rent acreage within the area. Therefore, the size of the production 
area would not adversely affect competition. The order, as proposed, 
would authorize research and development projects, including paid 
advertising. The order also would permit the committee, as 
representatives of the industry, to establish, with Secretarial 
approval, container labeling requirements. No other regulatory activity 
would be authorized.
    Mr. Darrington stated that any low grower returns in recent years 
were due to poor quality onions, not poor market conditions. Poor 
market conditions can be the result of poor quality product sold on the 
market. However, poor market conditions can also be caused by excessive 
supplies of local product in the market place and excessive supplies of 
onions from other growing areas, or a combination of all of these 
factors. Although this part of Mr. Darrington's exception could have 
merit, it does not alter the findings of the Recommended Decision which 
addressed poor market conditions for Walla Walla Sweet Onions because 
poor market conditions often are a result of a poor quality commodity.
    Mr. Darrington disagreed with the statement in the Recommended 
Decision that half or more of the non-storage onions grown in 
Washington came from the Walla Walla Valley and that half of all Walla 
Walla Sweet Onion acreage is outside the Walla Walla Valley. The 
exhibits and testimony presented at the hearing indicate that the Walla 
Walla Valley produces at least half of Washington State's non-storage 
onion crop. The evidence does not support Mr. Darrington's statement.
    Mr. Darrington also stated that there are other areas in the nation 
that have marketing orders for their specific onions, but none of them 
are restricted to such a small area as proposed by this order. This is 
true. However, section 11 (B) of the Act states that orders issued 
under this section shall be limited in their application to the 
smallest regional production areas or regional marketing areas, or 
both, as the case may be, which the Secretary finds practicable, 
consistently with carrying out such declared policy. The record 
indicates that the parts of Walla Walla and Umatilla Counties which are 
the proposed production area constitute the smallest practicable area.
    Mr. Darrington stated that climate and variety are the major 
factors determining the sweetness of an onion; and that there are years 
when Walla Walla sweets are far from being sweet due to the growing 
conditions. This is probably true of all onions, but has no relevance 
on the findings of the recommended decision.
    Mr. Darrington further states that the soil type in the proposed 
production area is not unique to that area. However, testimony was 
given to the contrary; witnesses stated that the unique growing 
conditions in the proposed production area, particularly the low sulfur 
content of the soil, yield a sweeter, milder onion than is grown 
elsewhere. Therefore, in order for an onion to be labeled as a Walla 
Walla Sweet, it would have to be produced in the proposed production 
area.
    Mr. Darrington states that the proposed order allows any onion 
variety, other than a sweet Spanish hybrid, grown in the proposed 
production area to be called a Walla Walla Sweet Onion and that there 
are a number of varieties grown in the production area that are not 
sweet. Mr. Darrington states that the order would permit growers within 
the production area to grow whatever variety they wish and call it a 
Walla Walla Sweet Onion. As the order is proposed, the committee may, 
with the approval of the Secretary, exempt individual varieties from 
any regulations issued under the order. This would allow the committee 
to prevent onions that do not qualify as ``sweet onions'' from being 
marketed as Walla Walla Sweet Onions. Thus, it is the intent that the 
Walla Walla onion industry would have control over the varieties of 
onions marketed as Walla Walla Sweet Onions.
    Mr. Darrington states that the order proposes that onion seeds not 
be regulated under the order, and that producers may sell seed onions 
grown within the production area wherever they wish outside of the 
area. Onions produced from any Walla Walla onion seed planted outside 
of the Walla Walla Sweet Onion production area do not qualify as Walla 
Walla Sweet Onions. For an onion to be assessed and marked as a Walla 
Walla Sweet Onion, it must be grown within the Walla Walla Sweet Onion 
production area established by the order and the variety must be 
recognized by the U.S. Department of Agriculture or recommended by the 
committee and approved by the Secretary as a sweet onion. Onions that 
do not meet these criteria may not be marketed as Walla Walla Sweet 
Onions and would not be assessed. Therefore, although Mr. Darrington's 
statement with respect to onion seeds is correct, it is not relevant to 
this discussion.
    Mr. Darrington states that the proposed area appears to be very 
self-serving to the group that is supporting this order. This is true, 
inasmuch as marketing orders and agreements are self imposed 
instruments that provide industry members with a means to provide 
orderly marketing conditions. This proposed order would authorize 
production and marketing research and marketing development and 
promotion projects, including paid advertising, and would authorize 
container markings. This order would also prohibit onions grown outside 
of the proposed production area from being marketed as Walla Walla 
Sweets, thus improving returns to producers within the production area 
by strengthening consumer demand through various promotional activities 
and by reducing production and marketing costs through 
[[Page 17277]] production and marketing research. Thus, for the reasons 
stated, those parts of Mr. Darrington's exception that are relevant are 
denied.

Rulings on Exceptions

    In arriving at the findings and conclusions and the regulatory 
provisions of this decision, the exceptions to the Recommended Decision 
were carefully considered in conjunction with the record evidence. To 
the extent that the findings and conclusions and the regulatory 
provisions of this decision are at variance with the exceptions, such 
exceptions are denied.

Marketing Agreement and Order

    Annexed hereto and made a part hereof is the document entitled 
``Order Regulating the Handling of Sweet Onions Grown in the Walla 
Walla Valley of Southeast Washington and Northeast Oregon.'' This 
document has been decided upon as the detailed and appropriate means of 
effectuating the foregoing findings and conclusions.
    It is hereby ordered, That this entire decision be published in the 
Federal Register.

Referendum Order

    It is hereby directed that a referendum be conducted in accordance 
with the procedure for the conduct of referenda (7 CFR 900.400 et. 
seq.) to determine whether the issuance of the annexed order regulating 
the handling of sweet onions grown in the Walla Walla Valley of 
southeast Washington and northeast Oregon is approved or favored by 
producers, as defined under the terms of the order, who, during the 
representative period were engaged in the production of sweet onions in 
the Walla Walla Valley of southeast Washington and northeast Oregon.
    The representative period for the conduct of such referendum is 
hereby determined to be January 1, 1994, through December 31, 1994.
    The agents of the Secretary to conduct such referendum are hereby 
designated to be Gary D. Olson and Robert J. Curry, Marketing Order 
Administration Branch, Fruit and Vegetable Division, AMS, USDA, 1220 
S.W. Third Avenue, room 369, Portland Oregon, 97204; telephone 503-326-
2724, FAX 503-326-7440.

List of Subjects in 7 CFR Part 956

    Marketing agreements, Onions, Reporting and recordkeeping 
requirements.

    Dated: March 30, 1995.
Patricia A. Jensen,
Acting Assistant Secretary, Marketing and Regulatory Programs.
    Order Regulating the Handling of Sweet Onions Grown in the Walla 
Walla Valley of Southeast Washington and Northeast Oregon.<SUP>1

    \1\This order shall not become effective unless and until the 
requirements of Sec. 900.14 of the rules of practice and procedure 
governing proceedings to formulate marketing agreements and 
marketing orders have been met.
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    Findings upon the basis of the hearing record. Pursuant to the 
provisions of the Agricultural Marketing Agreement Act of 1937, as 
amended (7 U.S.C. 601 et seq.), and the applicable rules of practice 
and procedure effective thereunder (7 CFR part 900), a public hearing 
was held upon a proposed marketing agreement and order regulating the 
handling of sweet onions grown in the Walla Walla Valley of Southeast 
Washington and Northeast Oregon.
    Upon the basis of the evidence introduced at such hearing and the 
record thereof, it is found that:
    (1) The marketing agreement and order, and all of the terms and 
conditions thereof, will tend to effectuate the declared policy of the 
Act;
    (2) The marketing agreement and order regulate the handling of 
sweet onions grown in the production area in the same manner as, and 
are applicable only to persons in the respective classes of commercial 
and industrial activity specified in the marketing agreement and order 
upon which hearings have been held;
    (3) The marketing agreement and order are limited in their 
application to the smallest regional production area which is 
practicable, consistent with carrying out the declared policy of the 
Act, and the issuance of several orders applicable to subdivisions of 
the production area would not effectively carry out the declared policy 
of the Act;
    (4) There are no differences in the production and marketing of 
Walla Walla Sweet Onions produced in the production area which make 
necessary different terms and provisions applicable to different parts 
of such area; and
    (5) All handling of Walla Walla Sweet Onions grown in the 
production area is in the current of interstate or foreign commerce or 
directly burdens, obstructs, or affects such commerce.

Order Relative to Handling

    It is therefore ordered, that on and after the effective date 
hereof, all handling of sweet onions grown in the Walla Walla Valley of 
Southeast Washington and Northeast Oregon, shall be in conformity to, 
and in compliance with, the terms and conditions of the said order, as 
follows:
    The provisions of the proposed marketing agreement and order 
contained in the Recommended Decision issued by the Administrator on 
November 3, 1994, and published in the Federal Register on November 10, 
1994 (59 FR 56254), shall be and are the terms and provisions of this 
order and are set forth in full herein. Sections 956.97 through 956.99 
apply only to the proposed marketing agreement and not to the proposed 
order.
    1. Title 7, Chapter IX is proposed to be amended by adding part 956 
to read as follows:

PART 956--SWEET ONIONS GROWN IN THE WALLA WALLA VALLEY OF SOUTHEAST 
WASHINGTON AND NORTHEAST OREGON

Subpart--Order Regulating Handling

Definitions

Sec.
956.1  Secretary.
956.2  Act.
956.3  Person.
956.4  Production area.
956.5  Walla Walla Sweet Onions.
956.6  Handler.
956.7  Registered handler.
956.8  Handle.
956.9  Container.
956.10  Producer.
956.11  Varieties.
956.12  Committee.
956.13  Fiscal period.

Administrative Committee

956.20  Establishment and membership.
956.21  Term of office.
956.22  Nominations.
956.23  Selection.
956.24  Qualifications and acceptance.
956.25  Alternates.
956.26  Vacancies.
956.27  Failure to nominate.
956.28  Procedure.
956.29  Expenses.
956.30  Powers.
956.31  Duties.

Expenses and Assessments

956.40  Expenses.
956.41  Budget.
956.42  Assessments.
956.43  Accounting.
956.44  Excess funds.
956.45  Contributions.

Research and Development

956.50  Research and development.

Regulation

956.61  Recommendation for regulations.
956.62  Container markings.
956.63  Handling for specified purposes.
956.64  Minimum quantities.
956.65  Notification of regulations.
956.66  Safeguards. [[Page 17278]] 

Reports

956.80  Reports and recordkeeping.

Miscellaneous Provisions

956.85  Termination or suspension.
956.87  Proceedings after termination.
956.88  Effect of termination or amendment.
956.89  Compliance.
956.90  Right of the Secretary.
956.91  Duration of immunities.
956.92  Agents.
956.93  Derogation.
956.94  Personal liability.
956.95  Separability.
956.96  Amendments.
956.97  Counterparts.
956.98  Additional parties.
956.99  Order with marketing agreement.

    Authority: 7 U.S.C. 601-674.11

Definitions


Sec. 956.1  Secretary.

    Secretary means the Secretary of Agriculture of the United States 
or any officer or employee of the Department of Agriculture who has 
been delegated, or to whom authority may hereafter be delegated, the 
authority to act for the Secretary.


Sec. 956.2  Act.

    Act means Public Act No. 10, 73d Congress (May 12, 1933), as 
amended and as reenacted and amended by the Agricultural Marketing 
Agreement Act of 1937, as amended (Sec. 1-19, 48 Stat. 31, as amended; 
7 U.S.C. 601 et seq.).


Sec. 956.3  Person.

    Person means an individual, partnership, corporation, association, 
or any other business unit.


Sec. 956.4  Production area.

    Production area means a tract of land in Umatilla County, Oregon, 
and Walla Walla County, Washington, based on surveyors' maps, enclosed 
by the following boundaries: Commencing at the Southeast corner of 
Section 13, Township (Twp.) 5 North, Range (Rge.) 36 East, W.M.; thence 
Westerly along the South line of Sections 13, 14, 15, 16, 17, and 18 in 
Twp. 5 North, Rge. 36 East, Sections 13, 14, 15, 16, 17, and 18 in Twp. 
5 North, Rge. 35 East, Sections 13, 14, 15, 16, 17, and 18 in Twp. 5 
North, Rge. 34 East, Sections 13, 14, and 15 in Twp. 5 North, Rge. 33 
East, W.M. to the East right of way line of the Northern Pacific 
Railway, as it runs Northwesterly through Vansyckle Canyon; thence 
Northwesterly along said Easterly right of way line to a point in the 
Northwest 1/4 of Section 20, Twp. 7 North, Rge. 32 East, W.M. where 
said line intersects the South right of way of the Union Pacific 
Railway, said intersection being commonly known as Zangar Junction; 
thence Easterly along said South right of way line of the Union Pacific 
Railway to a point in the Southwest 1/4 of Section 23, Twp. 7 North, 
Rge. 32 East where said line intersects the South right of way line of 
Washington State Highway No. 12; thence Easterly along said South right 
of way line to the intersection with the West line of Section 34, Twp. 
7 North, Rge. 33 East, W.M.; thence North, along the West line of 
Sections 34, 27, 22, 15, 10, and 3 in Twp. 7 North, Rge. 33 East, W.M., 
and the West line of Sections 34, 27, and 22 in Twp. 8 North, Rge. 33 
East, W.M. to the Northwest corner of said Section 22; thence East 
along the North line of said Section 22 to the Northeast corner 
thereof; thence North along the West line of Sections 14, 11, and 2 in 
Twp. 8 North, Rge. 33 East, W.M. to the Northwest corner of said 
Section 2; thence East along North lines of Sections 2 and 1 in Twp. 8 
North, Rge. 33 East, W.M. and the North line of Section 6, Twp. 8 
North, Rge. 34 East, W.M. to the centerline of the Touchet River; 
thence Northerly and Easterly along said centerline of the Touchet 
River as it runs through Twp. 9 North, Rge. 34 East, Twp. 9 North, Rge. 
35 East, Twp. 10 North, Rge. 35 East, Twp. 10 North, Rge. 36 East, Twp. 
9 North, Rge. 36 East, and Twp. 9 North, Rge. 37 East to a point on the 
East line of Section 11 in Twp. 9 North, Rge. 37 East, W.M., thence 
South along the East line of Sections 11, 14, 23, 26, and 35 in Twp. 9 
North, Rge. 37 East, W.M., the East lines of Sections 2, 11, 14, 23, 
26, and 35 in Twp. 8 North, Rge. 37 East, W.M., the East lines of 
Sections 2, 11, 14, 23, 26, and 35 in Twp. 7 North, Rge. 37 East, W.M., 
and the East lines of Sections 2, 11, and fractional Section 14 in Twp. 
6 North, Rge. 37 East, W.M., to a point on the Washington-Oregon State 
line; thence West along said State Line to the closing corner on the 
West side of Section 18 in Twp. 6 North, Rge. 37 East, W.M.; thence 
South along the West line of Sections 18, 19, 30, and 31 in Twp. 6 
North, Rge. 37 East, W.M. and the West line of Sections 6, 7, and 18 in 
Twp. 5 North, Rge. 37 East to the corner common to Sections 18 and 19 
in Twp. 5 North, Rge. 37 East, W.M. and 13 and 24 in Twp. 5 North, Rge. 
36 East, W.M., Being the True Point of Beginning of this Legal 
Description.


Sec. 956.5  Walla Walla Sweet Onions.

    Walla Walla Sweet Onions means all varieties of Allium cepa grown 
within the production area, except Spanish hybrid varieties. The 
committee may, with the approval of the Secretary, exempt individual 
varieties from any or all regulations issued under this part.


Sec. 956.6  Handler.

    Handler is synonymous with shipper and means any person (except a 
common or contract carrier of Walla Walla Sweet Onions owned by another 
person) who handles Walla Walla Sweet Onions or causes Walla Walla 
Sweet Onions to be handled.


Sec. 956.7  Registered handler.

    Registered handler means any person with adequate facilities for 
preparing Walla Walla Sweet Onions for commercial market, who has 
requested such registration and is so recorded by the committee, or any 
person who has access to such facilities and has recorded with the 
committee the ability and willingness to assume customary obligations 
of preparing Walla Walla Sweet Onions for commercial market. The 
committee may recommend, for approval of the Secretary, procedures with 
respect to handler registration.


Sec. 956.8  Handle.

    Handle is synonymous with ship and means to package, load, sell, 
transport, or in any way place Walla Walla Sweet Onions or cause Walla 
Walla Sweet Onions to be placed in the current of commerce within the 
production area or between the production area and any point outside 
thereof. Such term shall not include the transportation, sale, or 
delivery of harvested Walla Walla Sweet Onions to a handler within the 
production area for the purpose of having such Walla Walla Sweet Onions 
prepared for market.


Sec. 956.9  Container.

    Container means a box, bag, crate, hamper, basket, package, or any 
other receptacle used in the packaging, transporting, sale, shipment, 
or other handling of Walla Walla Sweet Onions.


Sec. 956.10  Producer.

    Producer is synonymous with grower and means any person engaged in 
a proprietary capacity in the production of Walla Walla Sweet Onions 
for market.


Sec. 956.11  Varieties.

    Varieties means and includes all classifications, subdivisions, or 
types of Walla Walla Sweet Onions according to those definitive 
characteristics now or hereafter recognized by the United States 
Department of Agriculture or recommended by the committee and approved 
by the Secretary.


Sec. 956.12  Committee.

    Committee means the Walla Walla Sweet Onion Committee established 
pursuant to Sec. 956.20. [[Page 17279]] 


Sec. 956.13  Fiscal period.

    Fiscal period means the period beginning on June 1 and ending on 
May 31 of each year, or other such period as may be recommended by the 
committee and approved by the Secretary.

Administrative Committee


Sec. 956.20  Establishment and membership.

    (a) The Walla Walla Sweet Onion Committee, consisting of ten 
members, is hereby established. The committee shall consist of six 
producer members, three handler members, and one public member. Each 
member shall have an alternate who shall have the same qualifications 
as the member.
    (b) A producer shall have three years of experience in producing 
onions in order to qualify for committee membership. At the time of 
selection, no more than two producer members may be affiliated with the 
same handler.


Sec. 956.21  Term of office.

    (a) Except as otherwise provided in paragraph (b) of this section, 
the term of office of committee members and their respective alternates 
shall be for three fiscal periods beginning on June 1 or such other 
date as recommended by the committee and approved by the Secretary. The 
terms shall be determined so that one-third of the grower membership 
and one-third of the handler membership shall terminate each year. 
Members and alternates shall serve during the term of office for which 
they are selected and have been qualified, or during that portion 
thereof beginning on the date on which they qualify during such term of 
office and continuing until the end thereof, or until their successors 
are selected and have qualified.
    (b) The term of office of the initial members and alternates shall 
begin as soon as possible after the effective date of this subpart. 
One-third of the initial industry members and alternates shall serve 
for a one-year term, one-third shall serve for a two-year term, and 
one-third shall serve for a three-year term. The initial, as well as 
all successive terms of office of the public member and alternate 
member shall be for three years.
    (c) The consecutive terms of office for all members shall be 
limited to two three-year terms. There shall be no such limitation for 
alternate members.


Sec. 956.22  Nominations.

    Nominations from which the Secretary may select the members of the 
committee and their respective alternates may be made in the following 
manner:
    (a) The committee shall hold or cause to be held, within the 
production area and prior to April 1 of each year or by such other date 
as may be specified by the Secretary, one or more meetings of producers 
and handlers for the purpose of designating one nominee for each of the 
member and alternate member positions which are vacant or will be 
vacant at the end of the fiscal period;
    (b) In arranging for such meetings the committee may, if it deems 
such desirable, cooperate with existing organizations and agencies;
    (c) Nominations for committee members and alternate members shall 
be provided to the Secretary, in such manner and form as the Secretary 
may prescribe, not later than 30 days prior to the end of the fiscal 
period within which the current term of office expires;
    (d) Only producers may participate in designating nominees for 
producer committee members and their alternates and only handlers may 
participate in designating nominees for handler committee members and 
their alternates;
    (e) Each person who is both a handler and a producer may vote 
either as a handler or as a producer, but not both;
    (f) Each person is entitled to cast only one vote on behalf of him 
or herself, his or her partners, agents, subsidiaries, affiliates and 
representatives, in designating nominees for committee members and 
alternates. An eligible producer's or handler's privilege of casting 
only one vote, as aforesaid, shall be construed to permit such voter to 
cast one vote for each producer member and alternate member position to 
be filled or each handler member and alternate member position to be 
filled, but not both.
    (g) Every three years, at the first meeting following selection, 
the committee shall nominate the public member and alternate for a 
three-year term of office.
    (h) The committee shall prescribe such additional qualifications, 
administrative rules and procedures for selection and voting for each 
candidate as it deems necessary and as the Secretary approves.


Sec. 956.23  Selection.

    The Secretary shall select members and alternate members of the 
committee from the nominations made pursuant to Sec. 956.22 or from 
other qualified persons.


Sec. 956.24  Qualification and acceptance.

    Any person nominated to serve as a member or alternate member of 
the committee shall, prior to selection by the Secretary, qualify by 
filing a written background and acceptance statement indicating such 
person's willingness to serve in the position for which nominated.


Sec. 956.25  Alternates.

    An alternate member of the committee shall act in the place and 
stead of the member for whom such person is an alternate, during such 
member's absence. In the event of the death, removal, resignation, or 
disqualification of a member, that member's alternate shall serve until 
a successor to such member has qualified and is selected.


Sec. 956.26  Vacancies.

    To fill any vacancy occasioned by the failure of any person 
nominated as a member or as an alternate to qualify, or in the event of 
the death, removal, resignation, or disqualification of a member or 
alternate, a successor for the unexpired term may be selected by the 
Secretary from nominations made pursuant to Sec. 956.22 from previously 
unselected nominees on the current nominee list, or from other eligible 
persons.


Sec. 956.27  Failure to nominate.

    If nominations are not made within the time and manner prescribed 
in Sec. 956.22 the Secretary may, without regard to nominations, select 
the members and alternates on the basis of the representation provided 
for in Sec. 956.20


Sec. 956.28  Procedure.

    (a) Six members of the committee shall constitute a quorum, and six 
concurring votes shall be required to pass any motion or approve any 
committee action, except that recommendations made pursuant to 
Sec. 956.61 shall require seven concurring votes.
    (b) The committee may provide for meetings by telephone, telegraph, 
facsimile, or other means of communication, and any vote cast orally at 
such meetings shall be confirmed promptly in writing: Provided, That if 
an assembled meeting is held, all votes shall be cast in person.


Sec. 956.29  Expenses.

    Members and alternates shall serve without compensation but shall 
be reimbursed for such expenses authorized by the committee and 
necessarily incurred by them in attending committee meetings and in the 
performance of their duties under this part.


Sec. 956.30  Powers.

    The committee shall have the following powers: [[Page 17280]] 
    (a) To administer the provisions of this part in accordance with 
its terms;
    (b) To make rules and regulations to effectuate the terms and 
provisions of this part;
    (c) To receive, investigate, and report to the Secretary complaints 
of violations of the provisions of this part; and
    (d) To recommend to the Secretary amendments to this part.


Sec. 956.31  Duties.

    It shall be among the duties of the committee:
    (a) At the beginning of each fiscal period, or as soon thereafter 
as practicable, to meet and organize, to select a chairperson and such 
other officers as may be necessary, to select subcommittees, and to 
adopt such rules and regulations for the conduct of its business as it 
may deem advisable;
    (b) To act as intermediary between the Secretary and any producer 
or handler;
    (c) To furnish to the Secretary such available information as the 
Secretary may request;
    (d) To appoint such employees, agents, and representatives as it 
may deem necessary and to determine the salaries and define the duties 
of each such person;
    (e) To investigate from time to time and to assemble data on the 
growing, harvesting, shipping, and marketing conditions with respect to 
Walla Walla Sweet Onions and to engage in such research and service 
activities which relate to the production, handling, or marketing of 
Walla Walla Sweet Onions as may be approved by the Secretary;
    (f) To keep minutes, books, and records which clearly reflect all 
of the acts and transactions of the committee. Such minutes, books, and 
records shall be subject to examination at any time by the Secretary or 
the Secretary's authorized agent or representative;
    (g) To make available to producers and handlers the committee 
voting record on recommended regulations and on other matters of 
policy;
    (h) Prior to each fiscal period, to submit to the Secretary a 
budget of its proposed expenses for such fiscal period, together with a 
report thereon, and a recommendation as to the rate of assessment for 
such period;
    (i) To cause its books to be audited by a competent accountant at 
least once each fiscal period, and at such other time as the committee 
may deem necessary or as the Secretary may require; the report of such 
audit shall show the receipt and expenditure of funds collected 
pursuant to this part; a copy of each such report shall be furnished to 
the Secretary, and a copy of each such report shall be made available 
at the principal office of the committee for inspection by producers 
and handlers: Provided, that confidential information shall be removed 
from all copies made available to the public; and
    (j) To consult, cooperate, and exchange information with other 
onion marketing committees and other individuals or agencies in 
connection with all proper committee activities and objectives under 
this subpart.

Expenses and Assessments


Sec. 956.40  Expenses.

    The committee is authorized to incur such expenses as the Secretary 
may find are reasonable and likely to be incurred by the committee for 
its maintenance and functioning, and to enable it to exercise its 
powers and perform its duties in accordance with the provisions of this 
part. The funds to cover such expenses shall be acquired in the manner 
prescribed in Secs. 956.42 and 956.45.


Sec. 956.41  Budget.

    Prior to each fiscal period and as may be necessary thereafter, the 
committee shall prepare an estimated budget of income and expenditures 
necessary for the administration of this part. The committee shall 
recommend a rate of assessment calculated to provide adequate funds to 
defray its proposed expenditures. The committee shall present such 
budget to the Secretary with an accompanying report showing the basis 
for its calculations.


Sec. 956.42  Assessments.

    (a) The funds to cover the committee's expenses shall be acquired 
by the levying of assessments upon handlers as provided in this 
subpart. Each person who first handles Walla Walla Sweet Onions shall 
pay assessments to the committee upon demand, which assessments shall 
be in payment of such handler's pro rata share of the committee's 
expenses.
    (b) Assessments shall be levied upon handlers, at rates established 
by the Secretary. Such rates may be established upon the basis of the 
committee's recommendations or other available information.
    (c) At any time during, or subsequent to, a given fiscal period, 
the committee may recommend the approval of an amended budget and an 
increase in the rate of assessment. Upon the basis of such 
recommendations, or other available information, the Secretary may 
approve an amended budget and increase the assessment rate. Such 
increase in the assessment rate shall be applicable to all Walla Walla 
Sweet Onions which were handled by each handler thereof during such 
fiscal period.
    (d) The payment of assessments for the maintenance and functioning 
of the committee may be required under this part throughout the period 
it is in effect, irrespective of whether particular provisions of this 
part are suspended or become inoperative.
    (e) To provide funds for the administration of the provisions of 
this part during the initial fiscal period or the first part of a 
fiscal period when neither sufficient operating reserve funds nor 
sufficient revenue from assessments on the current season's shipments 
are available, the committee may accept payment of assessments in 
advance or may borrow money for such purposes.
    (f) The committee may impose a late payment charge or an interest 
charge, or both, on any handler who fails to pay any assessment in a 
timely manner. Such time and the rates shall be recommended by the 
committee and approved by the Secretary.


Sec. 956.43  Accounting.

    (a) All funds received by the committee pursuant to the provisions 
of this part shall be used solely for the purposes specified in this 
part.
    (b) The Secretary may at any time require the committee, its 
members and alternate members, employees, agents, and all other such 
persons associated with the committee to account for all receipts, 
disbursements, funds, property, or records for which they are 
responsible. Whenever any person ceases to be a member, alternate 
member, employee, or agent of the committee, such person shall account 
for all receipts, disbursements, funds, property, and records 
pertaining to the committee's activities for which such person was 
responsible, deliver all property and funds in such person's possession 
to the committee, and execute such assignments and other instruments as 
may be necessary or appropriate to vest in the committee full title to 
all of the property, funds, and claims vested in such person pursuant 
to this part.
    (c) The committee may make recommendations to the Secretary for one 
or more of the members thereof, or any other person, to act as a 
trustee for holding records, funds, or any other committee property 
during periods of suspension of this part, or during any period or 
periods when regulations are not in effect and, upon determining such 
action is appropriate, the Secretary may direct that such person or 
persons [[Page 17281]] shall act as trustee or trustees for the 
committee.


Sec. 956.44  Excess funds.

    If, at the end of a fiscal period, the assessments collected are in 
excess of expenses incurred, such excess shall be accounted for as 
follows:
    (a) The committee, with approval of the Secretary, may establish an 
operating reserve and may carry over to subsequent fiscal periods 
excess funds in a reserve so established, except funds in the reserve 
shall not exceed the equivalent of approximately two fiscal period's 
budgeted expenses. Such reserve funds may be used:
    (1) To defray any expenses authorized under this part;
    (2) To defray expenses during any fiscal period prior to the time 
assessment income is sufficient to cover such expenses;
    (3) To cover deficits incurred during any fiscal period when 
assessment income is less than expenses;
    (4) To defray expenses incurred during any period when any or all 
provisions of this part are suspended or are inoperative; and
    (5) To cover necessary expenses of liquidation in the event of 
termination of this part.
    (b) Upon termination of this part, any funds not required to defray 
the necessary expenses of liquidation shall be disposed of in such 
manner as the Secretary may determine to be appropriate except that to 
the extent practicable, such funds shall be returned pro rata to the 
persons from whom such funds were collected.
    (c) If such excess is not retained in a reserve as provided in 
paragraph (a) of this section, each handler entitled to a proportionate 
refund of the excess assessments collected shall be credited at the end 
of a fiscal period with such refund against the operations of the 
following fiscal period unless such handler demands payment thereof, in 
which event such proportionate refund shall be paid as soon as 
practicable.


Sec. 956.45  Contributions.

    The committee may accept voluntary contributions but these shall be 
used only to pay expenses incurred pursuant to Sec. 956.50. Such 
contributions shall be free from any encumbrances by the donor, and the 
committee shall retain complete control of their use.

Research and Development


Sec. 956.50  Research and development.

    (a) The committee, with the approval of the Secretary, may 
establish or provide for the establishment of production research, 
marketing research and development, and marketing promotion projects, 
including paid advertising, designed to assist, improve, or promote the 
marketing, distribution, consumption, or efficient production of Walla 
Walla Sweet Onions. Any such project for the promotion and advertising 
of Walla Walla Sweet Onions may utilize an identifying mark, including 
but not limited to registered trademarks and logos, which shall be made 
available for use by all handlers in accordance with such terms and 
conditions as the committee, with the approval of the Secretary, may 
prescribe. The committee may register such logos with the Commissioner 
of Patents and Trademarks, U.S. Patent and Trademark Office. The 
expense of such projects shall be paid from funds collected pursuant to 
Secs. 956.42 and 956.45.
    (b) In recommending projects pursuant to this section, the 
committee shall give consideration to the following:
    (1) The expected supply of Walla Walla Sweet Onions in relation to 
market requirements;
    (2) The supply situation among competing onion areas and 
communities;
    (3) The anticipated benefits from such projects in relation to 
their costs;
    (4) The need for marketing research with respect to any market 
development activity; and
    (5) Other relevant factors.
    (c) If the committee concludes that a program of research and 
development should be undertaken, or continued, in any fiscal period, 
it shall submit the following for the approval of the Secretary:
    (1) Its recommendations as to the funds to be obtained pursuant to 
Secs. 956.42 and 956.45;
    (2) Its recommendations as to any research projects; and
    (3) Its recommendations as to promotion activity and paid 
advertising.
    (d) Upon conclusion of each activity, but at least annually, the 
committee shall summarize and report the results of such activity to 
the Secretary.
    (e) All marketing promotion activity engaged in by the committee, 
including paid advertising, shall be subject to the following terms and 
conditions:
    (1) No marketing promotion, including paid advertising, shall refer 
to any private brand, private trademark, or private trade name;
    (2) No promotion or advertising shall disparage the quality, use, 
value, or sale of like or any other agricultural commodity or product, 
and no false or unwarranted claims shall be made in connection with the 
product; and
    (3) No promotion or advertising shall be undertaken without reason 
to believe that returns to producers will be improved by such activity.

Regulation


Sec. 956.61  Recommendation for regulations.

    The committee shall recommend regulations to the Secretary whenever 
it deems it advisable, as provided in Sec. 956.62. The committee also 
may recommend modification, suspension, or termination of any 
regulation, or amendments thereto, in order to facilitate the handling 
of Walla Walla Sweet Onions for the purposes authorized in Sec. 956.63. 
The committee may also recommend amendment, modification, termination, 
or suspension of any regulation issued under this part.


Sec. 956.62  Container markings.

    The committee may, with the approval of the Secretary, provide a 
method, through rules and regulations issued pursuant to this part, for 
fixing the marking of containers which may be used in the packaging or 
handling of Walla Walla Sweet Onions, including appropriate logo or 
other container markings to identify the contents thereof. Further, the 
committee may, with the approval of the Secretary, establish through 
rules and regulations such safeguards as may be necessary to ensure 
that such container marking requirements are in compliance with the 
rules and regulations.


Sec. 956.63  Handling for specified purposes.

    Upon the basis of recommendations and information submitted by the 
committee, or other available information, the Secretary may issue 
special regulations, or modify, suspend, or terminate requirements in 
effect pursuant to Secs. 956.42 and 956.62 or any combination thereof, 
in order to facilitate the handling of onions for the following 
purposes:
    (a) Shipments of Walla Walla Sweet Onions for relief or to 
charitable institutions;
    (b) Shipments of Walla Walla Sweet Onions for livestock feed;
    (c) Shipments of Walla Walla Sweet Onions for planting and for 
plants;
    (d) Shipments of Walla Walla Sweet Onions as salad onions;
    (e) Shipments of Walla Walla Sweet Onions for all processing uses 
including, pickling, peeling, dehydration, juicing, or other 
processing;
    (f) Shipments of Walla Walla Sweet Onions for disposal;
    (g) Shipments of Walla Walla Sweet Onions for seed; [[Page 17282]] 
    (h) Shipments of Walla Walla Sweet Onions for packing or storing 
within the production area or outside the production area, but within 
specified locations in the States of Oregon and Washington; and
    (i) Shipments of Walla Walla Sweet Onions for other purposes which 
may be specified.


Sec. 956.64  Minimum quantities.

    The committee, with the approval of the Secretary, may establish 
minimum quantities below which Walla Walla Sweet Onion shipments will 
be free from the requirements in, or pursuant to, Secs. 956.42, 956.62, 
and 956.63, or any combination thereof.


Sec. 956.65  Notification of regulations.

    The Secretary shall notify the committee of each regulation issued 
and of each amendment, modification, suspension, or termination 
thereof. The committee shall give reasonable notice thereof to 
handlers.


Sec. 956.66  Safeguards.

    (a) The committee, with the approval of the Secretary, may 
prescribe adequate safeguards to prevent Walla Walla Sweet Onions 
shipped, pursuant to Secs. 956.63 and 956.64, from entering channels of 
trade for other than the purpose authorized therefor.
    (b) The committee, with the approval of the Secretary, may also 
prescribe rules and regulations governing the issuance, and the 
contents, of Certificates of Privilege, if such certificates are 
prescribed as safeguards by the committee. Such safeguards may include 
requirements that:
    (1) Handlers shall first file applications with the committee to 
ship such Walla Walla Sweet Onions.
    (2) Handlers shall pay the pro rata share of expenses provided by 
Sec. 956.42 in connection with such Walla Walla Sweet Onions.
    (3) Handlers shall obtain Certificates of Privilege from the 
committee prior to effecting the particular onion shipment.
    (c) The committee may rescind any Certificate of Privilege, or 
refuse to issue any Certificate of Privilege, to any handler if proof 
is obtained that Walla Walla Sweet Onions shipped by the handler for 
the purposes stated in the Certificate of Privilege were handled 
contrary to the provisions of this part.
    (d) The Secretary shall have the right to modify, change, alter, or 
rescind any safeguards prescribed and any certificates issued by the 
committee pursuant to the provisions of this section.
    (e) The committee shall make reports to the Secretary as requested, 
showing the number of applications for such certificates, the quantity 
of Walla Walla Sweet Onions covered by such applications, the number of 
such applications denied and certificates granted, the quantity of 
Walla Walla Sweet Onions handled under duly issued certificates, and 
such other information as may be requested.

Reports


Sec. 956.80  Reports and recordkeeping.

    Upon request of the committee, made with the approval of the 
Secretary, each handler shall 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 this part.
    (a) Such reports may include, but are not necessarily limited to, 
the following:
    (1) The acreage of Walla Walla Sweet Onions grown;
    (2) The quantities of Walla Walla Sweet Onions received by such 
handler;
    (3) The quantities of Walla Walla Sweet Onions disposed of by such 
handler;
    (4) The disposition date of such Walla Walla Sweet Onions;
    (5) The manner of disposition of such Walla Walla Sweet Onions; and
    (6) The identification of the carrier transporting such Walla Walla 
Sweet Onions.
    (b) All such reports shall be held under appropriate protective 
classification and custody by the committee, or duly appointed 
employees thereof, so that any information contained therein which may 
adversely affect the competitive position of any handler in relation to 
other handlers will not be disclosed. Compilations of general reports 
from data submitted by handlers is authorized, subject to the 
prohibition of disclosure of individual handler's identity or 
operations.
    (c) Each handler shall maintain for at least two succeeding years 
such records of the Walla Walla Sweet Onions received and disposed of 
by such handler as may be necessary to verify reports submitted to the 
committee pursuant to this section.

Miscellaneous Provisions


Sec. 956.85  Termination or suspension.

    (a) The Secretary may at any time terminate the provisions of this 
subpart by giving at least one day's notice by means of a press release 
or in any other manner which the Secretary may determine.
    (b) The Secretary shall terminate or suspend the operations of any 
or all of the provisions of this subpart whenever it is found that such 
provisions do not tend to effectuate the declared policy of the act.
    (c) The Secretary shall terminate the provisions of this subpart at 
the end of any fiscal period whenever it is found that such termination 
is favored by a majority of producers who, during a representative 
period, have been engaged in the production of Walla Walla Sweet 
Onions: Provided, That such majority has, during such representative 
period, produced for market more than fifty percent of the volume of 
such Walla Walla Sweet Onions produced for market, but such termination 
shall be announced at least 90 days before the end of the current 
fiscal period.
    (d) Within six years of the effective date of this subpart the 
Secretary shall conduct a continuance referendum to ascertain whether 
continuance of this subpart is favored by producers. Subsequent 
referenda to ascertain continuance shall be conducted every six years 
thereafter. The Secretary may terminate the provisions of this part at 
the end of any fiscal period in which the Secretary has found that 
continuance of this subpart is not favored by a majority of producers 
who, during a representative period determined by the Secretary, have 
been engaged in the production for market of Walla Walla Sweet Onions 
in the production area. Such termination shall be announced on or 
before the end of the fiscal period.
    (e) The provisions of this subpart shall, in any event, terminate 
whenever the provisions of the Act authorizing them cease to be in 
effect.


Sec. 956.87  Proceedings after termination.

    (a) Upon the termination of the provisions of this subpart, the 
then functioning members of the committee shall continue as joint 
trustees, for the purpose of liquidating the affairs of the committee, 
of all funds and property then in the possession, or under control, of 
the committee, including claims for any funds unpaid or property not 
delivered at the time of such termination. Action by said trusteeship 
shall require the concurrence of a majority of the said trustees.
    (b) The said trustees shall continue in such capacity until 
discharged by the Secretary; shall, from time to time, account for all 
receipts and disbursements and deliver all property on hand, together 
with all books and records of said committee and of the trustees, to 
such person as the Secretary may direct; and shall upon the request of 
the Secretary, execute such assignments or other instruments 
[[Page 17283]] necessary or appropriate to vest in such person full 
title and right to all of the funds, property, and claims vested in 
said committee or the trustees pursuant to this subpart.
    (c) Any person to whom funds, property, or claims have been 
transferred or delivered by the committee or its members pursuant to 
this section shall be subject to the same obligations imposed upon the 
members of the committee and upon the said trustees.


Sec. 956.88  Effect of termination or amendment.

    Unless otherwise expressly provided by the Secretary, the 
termination of this subpart or of any regulation issued pursuant to 
this subpart, or the issuance of any amendments to either thereof, 
shall not:
    (a) Affect or waive any right, duty, obligation, or liability which 
shall have arisen or which may thereafter arise in connection with any 
provision of this subpart;
    (b) Release or extinguish any violation of this subpart or of any 
regulations issued under this subpart; and
    (c) Affect or impair any rights or remedies of the Secretary or of 
any other person with respect to any such violations.


Sec. 956.89  Compliance.

    No handler shall handle Walla Walla Sweet Onions except in 
conformity to the provisions of this part.


Sec. 956.90  Right of the Secretary.

    The members of the committee, including successors and alternates, 
and any agent or employee appointed or employed by the committee shall 
be subject to removal or suspension by the Secretary at any time. Each 
and every order, regulation, decision, determination, or other act of 
the committee shall be subject to the continuing right of the Secretary 
to disapprove of the same at any time. Upon such disapproval, the 
disapproved action of the committee shall be deemed null and void 
except as to acts done in reliance thereon or in compliance therewith 
prior to such disapproval by the Secretary.


Sec. 956.91  Duration of immunities.

    The benefits, privileges, and immunities conferred upon any person 
by virtue of this subpart shall cease upon the termination of this 
subpart, except with respect to acts done under and during the 
existence of this subpart.


Sec. 956.92  Agents.

    The Secretary may, by designation in writing, name any person, 
including any officer or employee of the Government, or name any agency 
in the United States Department of Agriculture, to act as the 
Secretary's agent or representative in connection with any of the 
provisions of this part.


Sec. 956.93  Derogation.

    Nothing contained in this part is, or shall be construed to be, in 
derogation or in modification of the rights of the Secretary or of the 
United States to exercise any powers granted by the Act or otherwise, 
or, in accordance with such powers, to act in the premises whenever 
such action is deemed advisable.


Sec. 956.94  Personal liability.

    No member or alternate of the committee or any employee or agent 
thereof, shall be held personally responsible, either individually or 
jointly with others, in any way whatsoever, to any handler or to any 
person for errors in judgment, mistakes, or other acts, either of 
commission or omission, as such member, alternate, employee, or agent, 
except for acts of dishonesty, willful misconduct, or gross negligence.


Sec. 956.95  Separability.

    If any provision of this subpart is declared invalid, or the 
applicability thereof to any person, circumstance, or thing is held 
invalid, the validity of the remainder of this subpart, or the 
applicability thereof to any other person, circumstance, or thing shall 
not be affected thereby.


Sec. 956.96  Amendments.

    Amendments to this subpart may be proposed, from time to time, by 
the committee or by the Secretary.


Sec. 956.97  Counterparts.

    This agreement may be executed in multiple counterparts, and when 
one counterpart is signed by the Secretary, all such counterparts shall 
constitute, when taken together, one and the same instrument as if all 
signatures were contained in one original.


Sec. 956.98  Additional parties.

    After the effective date hereof, any handler may become a party to 
this agreement if a counterpart is executed by the handler and 
delivered to the Secretary. This agreement shall take effect as to such 
new contracting party at the time such counterpart is delivered to the 
Secretary, and the benefits, privileges, and immunities conferred by 
this agreement shall then be effective as to such new contracting 
party.


Sec. 956.99  Order with marketing agreement.

    Each signatory handler hereby requests the Secretary to issue, 
pursuant to the Act, an order providing for regulating the handling of 
Walla Walla Sweet Onions in the same manner as is provided for in this 
agreement.

    Note: This marketing agreement will not appear in the Code of 
Federal Regulations.

United States Department of Agriculture, Agricultural Marketing 
Service

Marketing Agreement Regulating the Handling of Onions Grown in 
Walla Walla County, Washington, and Umatilla County, Oregon

    The parties hereto, in order to effectuate the declared policy 
of the Agricultural Marketing Agreement Act of 1937, as amended 
(Secs. 1-19, 48 Stat. 31, as amended; 7 U.S.C. 601-674), and in 
accordance with the applicable rules of practice and procedure 
effective thereunder (7 CFR, Part 900), desire to enter into this 
marketing agreement regulating the handling of onions grown in Walla 
Walla County, Washington, and Umatilla County, Oregon; and each 
party hereto agrees that such handling shall, from the effective 
date of this marketing agreement, be in conformity to, and in 
compliance with, the provisions of said marketing agreement.
    The provisions of Secs. 956.1 to 956.96, inclusive, of Marketing 
Order No. 956, (7 CFR, Part 956) of the order annexed to and made a 
part of the decision of the Secretary of Agriculture with respect to 
a proposed marketing agreement and order regulating the handling of 
onions grown in Walla Walla County, Washington, and Umatilla County, 
Oregon, plus the following additional provisions shall be, and the 
same hereby are, the terms and conditions hereof; and the specified 
provisions of said annexed order are hereby incorporated into this 
marketing agreement as if set forth in full herein.

Sec. 956.97  Counterparts.

    This agreement may be executed in multiple counterparts and when 
one counterpart is signed by the Secretary, all such counterparts 
shall constitute, when taken together, one and the same instrument 
as if all signatures were contained in one original.

Sec. 956.98  Additional parties.

    After the effective date hereof, any handler may become a party 
to this agreement if a counterpart is executed by such handler and 
delivered to the Secretary. This agreement shall take effect as to 
such new contracting party at the time such counterpart is delivered 
to the Secretary, and the benefits, privileges, and immunities 
conferred by this agreement shall then be effective as to such new 
contracting party.

Sec. 956.99  Order with marketing agreement.

    Each signatory handler hereby requests the Secretary to issue, 
pursuant to the act, an order providing for regulating the handling 
of onions in the same manner as is provided in this agreement. 
[[Page 17284]] 
    The undersigned hereby authorizes the Director, or Acting 
Director, Fruit and Vegetable Division, Agricultural Marketing 
Service, United States Department of Agriculture, to correct any 
typographical errors which may have been made in this marketing 
agreement.
    In Witness Whereof, the contracting parties, acting under the 
provisions of the act, for the purpose and subject to the 
limitations therein contained, and not otherwise, have hereto set 
their respective signatures and seals.

----------------------------------------------------------------------
(Firm Name)

----------------------------------------------------------------------
(Mailing Address)

----------------------------------------------------------------------
(City, State, and ZIP Code)

By:\1\-----------------------------------------------------------------

    \1\If one of the contracting parties to this agreement is a 
corporation, my signature constitutes certification that I have the 
power granted to me by the Board of Directors to bind this 
corporation to the marketing agreement.

    Note: Public reporting burden for this collection of information 
is estimated to average 20 minutes per response, including the time 
for reviewing instructions, searching existing data sources, 
gathering and maintaining the data needed, and completing and 
reviewing the collection of information. Send comments regarding 
this burden estimate or any other aspect of this collection of 
information, including suggestions for reducing this burden, to the 
Department of Agriculture, Clearance Officer, OIRM, AG Box 7630, 
Administration Building, Washington, D.C. 20250; and to the Office 
of Management and Budget, Paperwork Reduction Project, Washington, 
D.C. 20503, regarding OMB No. 0581-0089. When replying, refer to the 
OMB Number and Form Number in your letter.
---------------------------------------------------------------------------

(Signature)

----------------------------------------------------------------------
(Title)

----------------------------------------------------------------------
(Date of Execution)

(Corporate Seal: if none, so state)

(For use by incorporated handlers)

Certification of Resolution

(Corporation Only)

    At a duly convened meeting of the Board of Directors of
----------------------------------------------------------------------
held at----------------------------------------------------------------

on the ________ day of ____________ 19____,

Resolved, That---------------------------------------------------------
shall become a party of the marketing agreement regulating the 
handling of onions grown in Walla Walla County, Washington, and 
Umatilla County, Oregon, which annexed to and made part of the 
decision of the Secretary of Agriculture, and it is further, 
Resolved, That
----------------------------------------------------------------------
(Name)

----------------------------------------------------------------------
(Title)

and--------------------------------------------------------------------
(Name)

----------------------------------------------------------------------
(Title)

be, and the same hereby are, authorized and directed severally or 
jointly to sign, execute, and deliver counterparts of the said 
agreement to the Secretary of Agriculture.

I,---------------------------------------------------------------------

Secretary of-----------------------------------------------------------

do hereby certify this is a true and correct copy of a resolution 
adopted at the above named meeting as said resolution appears in the 
minutes thereof.

----------------------------------------------------------------------
(Signature)

----------------------------------------------------------------------
(Address of Firm)

(Corporate Seal: if none, so state)

[FR Doc. 95-8428 Filed 4-4-95; 8:45 am]
BILLING CODE 3410-02-P