94-24776. Oranges and Grapefruit Grown in the Lower Rio Grande Valley in Texas; Revision of Special Purpose Exemption Provisions  

  • [Federal Register Volume 59, Number 193 (Thursday, October 6, 1994)]
    [Unknown Section]
    [Page 0]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 94-24776]
    
    
    [[Page Unknown]]
    
    [Federal Register: October 6, 1994]
    
    
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    DEPARTMENT OF AGRICULTURE
    Agricultural Marketing Service
    
    7 CFR Part 906
    
    [Docket No. FV94-906-2FR]
    
     
    
    Oranges and Grapefruit Grown in the Lower Rio Grande Valley in 
    Texas; Revision of Special Purpose Exemption Provisions
    
    AGENCY: Agricultural Marketing Service, USDA.
    
    ACTION: Final rule.
    
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    SUMMARY: This final rule revises the administrative rules and 
    regulations in effect under the Texas citrus marketing order. The 
    revision eliminates the provision which exempts fruit handled for home 
    use from the order's grade, size, pack, container, inspection and 
    assessment requirements. This rule will help prevent unauthorized 
    shipments of uninspected citrus from being shipped out of the 
    production area. Individuals will continue to be able to handle up to 
    400 pounds of citrus per day exempt from order requirements which 
    should be sufficient for fruit purchased for home use.
    
    EFFECTIVE DATE: November 7, 1994.
    
    FOR FURTHER INFORMATION CONTACT: Belinda Garza, McAllen Marketing Field 
    Office, Fruit and Vegetable Division, AMS, USDA, 1313 East Hackberry, 
    McAllen, Texas 78501, telephone: (210) 682-2833; or Charles L. Rush, 
    Marketing Order Administration Branch, Fruit and Vegetable Division, 
    AMS, USDA, P.O. Box 96456, room 2523-S, Washington, DC 20090-6456, 
    telephone: (202) 690-3670.
    
    SUPPLEMENTARY INFORMATION: This final rule is issued under Marketing 
    Agreement and Order No. 906 [7 CFR part 906] regulating the handling of 
    oranges and grapefruit grown in the Lower Rio Grande Valley in Texas, 
    hereinafter referred to as the order. The order is effective under the 
    Agricultural Marketing Agreement Act of 1937, as amended [7 U.S.C. 601-
    674], hereinafter referred to as the Act.
        The Department of Agriculture (Department) is issuing this rule in 
    conformance with Executive Order 12866.
        This rule has been reviewed under Executive Order 12778, Civil 
    Justice Reform. This final rule is not intended to have retroactive 
    effect. This final rule will not preempt any State or local laws, 
    regulations, or policies, unless they present an irreconcilable 
    conflict with this rule.
        The Act provides that administrative proceedings must be exhausted 
    before parties may file suit in court. Under section 8c(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 requesting a modification of the order or to be exempted 
    therefrom. Such handler is afforded the opportunity for a hearing on 
    the petition. After the hearing the Secretary would rule on the 
    petition. The Act provides that the district court of the United States 
    in any district in which the handler is an inhabitant, or has his or 
    her principal place of business, has jurisdiction in equity to review 
    the Secretary's ruling on the petition, provided a bill in equity is 
    filed not later than 20 days after date of the entry of the ruling.
        Pursuant to the requirements set forth in the Regulatory 
    Flexibility Act (RFA), the Administrator of the Agricultural Marketing 
    Service (AMS) has considered the economic impact of this rule 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 15 handlers of oranges and grapefruit 
    regulated under the order each season and approximately 750 orange and 
    grapefruit producers in Texas. Small agricultural producers have been 
    defined by the Small Business Administration [13 CFR Sec. 121.601] as 
    those having annual receipts of less than $500,000, and small 
    agricultural service firms are defined as those whose annual receipts 
    are less than $5,000,000. The majority of these handlers and producers 
    may be classified as small entities.
        Section 906.40 of the order authorizes the establishment of grade, 
    size, quality, maturity, pack and container requirements for fresh 
    shipments of Texas oranges and grapefruit. Whenever such requirements 
    are in effect, oranges and grapefruit are required to be inspected and 
    certified as meeting applicable standards in accordance with 
    Sec. 906.45 of the order. The program is financed through handler 
    assessments, established pursuant to Sec. 906.34.
        The order provides, in Sec. 906.42, that regulations issued under 
    Secs. 906.34, 906.40, and 906.45 may be modified, suspended or 
    terminated to facilitate the handling of citrus fruit for certain 
    purposes. Under this authority, Sec. 906.120 of the order's rules and 
    regulations provides that oranges and grapefruit may be handled for 
    relief, charity or home use exempt from order requirements. Handlers 
    desiring to utilize this exemption are required to apply to the Texas 
    Valley Citrus Committee (committee), the agency established to 
    administer the order locally. In making an application, the handler is 
    required to submit information such as the quantity of fruit to be 
    handled under the exemption and its intended destination. Based on the 
    information provided, the committee determines whether to approve the 
    application and issue the handler a certificate of privilege.
        The committee met on May 10, 1994, and unanimously recommended 
    revising paragraph (c)(1) of Sec. 906.120 by deleting ``home use'' from 
    the provision which allows fruit to be handled exempt from regulation. 
    Current regulations allow for an unlimited amount of fruit to be 
    shipped for home use (not for resale) exempt from all marketing order 
    requirements. The committee recommended this amendment to reduce the 
    potential for abuse of the home use exemption. The committee has had 
    difficulty in verifying the final disposition of exempted fruit.
        This final rule revises Sec. 906.120(c)(1) by deleting the phrase 
    ``home use''. The committee expressed concern that bulk loads of 
    uninspected fruit may enter fresh, commercial markets and prove 
    detrimental to producer returns if the exemption is not removed.
        Other exemptions from order requirements remain unchanged. Under 
    paragraph (a) of Sec. 906.120, individuals will continue to be able to 
    handle up to 400 pounds of citrus per day exempt from order 
    requirements. The committee believes that this minimum quantity 
    exemption is sufficient to cover fruit purchased for home use and not 
    for resale. Thus, it is not expected that this action will adversely 
    impact those persons who purchase Texas oranges and grapefruit directly 
    from handlers for their own use.
        A proposed rule concerning this revision was issued on July 21, 
    1994, and published in the Federal Register on July 27, 1994, [59 FR 
    38138]. That rule provided a 30-day comment period which ended August 
    26, 1994. No comments were received.
        The information collection requirements contained in the referenced 
    sections have been previously approved by the Office of Management and 
    Budget (OMB) under the provisions of 44 U.S.C. chapter 35 and have been 
    assigned OMB number 0581-0068 for Texas oranges and grapefruit.
        This rule reduces the reporting burden on approximately 6 handlers 
    of oranges and grapefruit who have been completing the Special Purpose 
    Shipments Form (Application for fundraiser-specialty pack), taking 
    about 5 minutes to complete each report.
        Based on the above, the Administrator of the AMS has determined 
    that this action will not have a significant economic impact on a 
    substantial number of small entities.
        After consideration of all relevant matter presented, including the 
    information and recommendations submitted by the committee and other 
    available information, it is hereby found that this final rule, as 
    hereinafter set forth, will tend to effectuate the declared policy of 
    the Act.
    
    List of Subjects in 7 CFR Part 906
    
        Grapefruit, Marketing agreements and orders, Oranges, Reporting and 
    recordkeeping requirements.
        For the reasons set forth in the preamble, 7 CFR Part 906 is 
    amended as follows:
    
    PART 906--ORANGES AND GRAPEFRUIT GROWN IN LOWER RIO GRANDE VALLEY 
    IN TEXAS
    
        1. The authority citation for 7 CFR Part 906 continues to read as 
    follows:
    
        Authority: 7 U.S.C. 601-674.
    
        2. Section 906.120 is amended by revising the first sentence of 
    paragraph (c)(1) to read as follows:
    
    
    Sec. 906.120  Fruit exempt from regulation.
    
        (a) * * *
        (b) *  * *
        (c) Special purpose shipments and safeguards.
        (1) Fruit may be handled for relief or charity exempt from the 
    requirements of Secs. 906.34, 906.40, and 906.45 and the regulations 
    issued thereunder: Provided, That the fruit shall not be offered for 
    resale, and the handler submits, prior to any such handling, an 
    application to the committee on forms provided by the committee. * * *
    * * * * *
        Dated: October 3, 1994.
    Eric M. Forman,
    Deputy Director, Fruit and Vegetable Division.
    [FR Doc. 94-24776 Filed 10-5-94; 8:45 am]
    BILLING CODE 3410-02-P
    
    
    

Document Information

Published:
10/06/1994
Department:
Agricultural Marketing Service
Entry Type:
Uncategorized Document
Action:
Final rule.
Document Number:
94-24776
Dates:
November 7, 1994.
Pages:
0-0 (1 pages)
Docket Numbers:
Federal Register: October 6, 1994, Docket No. FV94-906-2FR
CFR: (2)
7 CFR 906.45
7 CFR 906.120