[Federal Register Volume 59, Number 214 (Monday, November 7, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-27519]
[[Page Unknown]]
[Federal Register: November 7, 1994]
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DEPARTMENT OF AGRICULTURE
7 CFR Part 928
[Docket No. FV94-928-4FR]
Papayas Grown in Hawaii; Final Rule to Change the Membership of
the Papaya Administrative Committee
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: This final rule changes the membership of the Papaya
Administrative Committee (committee), the agency responsible for local
administration of the Hawaiian papaya marketing order. This rule
increases the number of grower members on the committee from six to
nine and reduces the number of handler members from six to three. The
number of growers in the industry has increased in recent years, during
the same period the number of handlers has remained constant.
EFFECTIVE DATE: This final rule becomes effective December 7, 1994.
FOR FURTHER INFORMATION CONTACT: Charles L. Rush, Marketing Order
Administration Branch, Fruit and Vegetable Division, AMS, USDA, P.O.
Box 96456, Room 2526-S, Washington, DC 20090-6456; telephone (202) 690-
3670; or Martin J. Engeler, Assistant Officer-In-Charge, California
Marketing Field Office, Fruit and Vegetable Division, AMS, USDA, 2202
Monterey Street, Suite 102B, Fresno, California 93721; telephone (209)
487-5901.
SUPPLEMENTARY INFORMATION: This final rule is issued under Marketing
Order No. 928 [7 CFR Part 928], as amended, regulating the handling of
papayas grown in Hawaii, hereinafter referred to as the order. This
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 final rule has been reviewed under Executive Order 12778,
Civil Justice Reform. This rule is not intended to have retroactive
effect. This 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 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 requesting a modification of the order or an exemption
therefrom. A handler is afforded the opportunity for a hearing on the
petition. After the hearing the Secretary would rule on the petition.
The Act provides that the district court of the United States in any
district in which the handler is an inhabitant, or has his or her
principal place of business, has jurisdiction in equity to review the
Secretary's ruling on the petition, provided a bill in equity is filed
not later than 20 days after the date of the entry of the ruling.
Pursuant to the requirements set forth in the Regulatory
Flexibility Act (RFA), the Administrator of the Agricultural Marketing
Service (AMS) has considered the impact of this rule on small entities.
The purpose of the RFA is to fit regulatory rules to the scale of
business subject to such rules 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 120 papaya handlers subject to regulation
under the marketing order covering fresh papayas grown in Hawaii, and
approximately 400 producers of papayas in Hawaii. Small agricultural
producers have been defined by the Small Business Administration [13
CFR 121.601] as those having annual receipts of less than $500,000, and
small agricultural service firms as those whose annual receipts are
less than $5,000,000. A majority of these handlers and producers may be
classified as small entities.
Pursuant to Sec. 928.120, the committee currently consists of 13
members. Each member has an alternate. Six members are growers, six are
handlers, and one is a public member. The six handler members and
alternates are nominated from the production area at large. Grower
membership on the committee is apportioned among three districts.
District 1 (the Island of Hawaii) is represented by four members and
alternates, and District 2 (the Islands of Kauai, Niihau, Maui,
Molakai, Lanai, Kahoolawe; and Kalawao county), and District 3 (the
Island of Oahu) by one member and alternate each. Any grower
organization is limited to two members on the committee. Any handler
organization is limited to one member on the committee.
Section 928.20 also allows the number of grower and handler members
and alternate members on the committee and the composition of the
committee between growers and handlers to be changed as provided in
Sec. 928.31(o). Paragraph (o) of Sec. 928.31 also authorizes the
committee, with the approval of the Secretary, to redefine the
districts into which the production area is divided, reapportion
membership on the committee. Any such changes are required to reflect,
insofar as practicable, structural changes within the industry and
shifts in papaya production within the production area.
This final rule changes the composition of the committee by
increasing grower representation on the committee from six grower
members to nine and reducing handler representation from six members to
three. This change was recommended by the committee on April 22, 1994,
by a vote of 7 in favor, 3 opposed, and 2 abstentions.
The papaya industry has historically demonstrated a policy of
maintaining equitable representation among handlers and growers. In
1989, committee membership was changed by allocating three grower
member positions from District 1 to handlers in the State of Hawaii.
This resulted in an increase from three to six handler members and a
decrease in grower members from District 1 from seven to four. The
committee indicated that the number of growers in the industry has
increased from 325 to 400 since 1989, while the number of handlers has
remained constant. The committee contends that these factors support
their recommendation to change committee membership. This action is
intended to provide increased grower representation on the committee
consistent with the increased number of growers. This rule will not
impose any additional costs on growers or handlers.
Members supporting this change stated that the marketing order is
designed to primarily benefit growers and for that reason growers
should have a majority on the committee. Members supporting the
recommendation also stated that this change will increase growers'
influence in matters concerning amendments to the marketing order, and
market research and development and promotion activities. The majority
of that increase occurred in District 1. Members opposed to the change
in the current committee membership stated that the marketing order
should benefit the entire industry, and believe the current composition
of the committee provides a good balance for the industry.
The committee indicated that the increase in the number of growers
producing papayas in District 1, justified increasing from four to
seven the number of growers representing District 1 on the committee.
Committee members supporting this change contend that the vast majority
of growers and the highest level of papaya production are located in
District 1. District 1 is expected to produce 55.6 million pounds
during the 1993-94 season. Over the last four years District 1 has had
an average annual production of 54.1 million pounds of papayas. For the
same period District 2 has an average production of 760,000 pounds, and
District 3 has an average production of 1,020,000 pounds of papayas.
The proposed rule concerning this action was published in the
September 2, 1994, Federal Register [59 FR 45630], with a 30-day
comment period ending October 3, 1994. No comments were received.
Based on the available information, the Administrator of the AMS
has determined that this final rule will not have a significant
economic impact on a substantial number of small entities.
After consideration of all relevant matter presented, including the
information and recommendations submitted by the committee and other
available information, it is hereby found that this rule, as
hereinafter set forth, will tend to effectuate the declared policy of
the Act.
List of Subjects in 7 CFR Part 928
Marketing agreements, Papayas, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR Part 928 is
amended as follows:
PART 928--PAPAYAS GROWN IN HAWAII
1. The authority citation for 7 CFR Part 928 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
2. Section 928.120 is revised to read as follows:
Sec. 928.120 Committee reapportionment
The Papaya Administrative Committee shall consist of 13 members and
alternate members. Nine of the members shall represent growers, and
three shall represent handlers. Seven grower members and their
alternates shall represent District 1, one grower member and alternate
shall represent District 2, and one grower member and alternate shall
represent District 3. No grower organization shall have more than two
members on the committee. The three handler members shall be nominated
from the production area at large. No handler organization is permitted
to have more than one handler member on the committee. One voting
public member and alternate shall also be included on the committee.
The eligibility requirements and nomination procedures for the public
member and alternate are specified in Sec. 928.122.
Dated: November 1, 1994.
Eric M. Forman,
Deputy Director; Fruit and Vegetable Division.
[FR Doc. 94-27519 Filed 11-4-94; 8:45 am]
BILLING CODE 3410-02-P
