[Federal Register Volume 61, Number 234 (Wednesday, December 4, 1996)]
[Rules and Regulations]
[Pages 64253-64255]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-30859]
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DEPARTMENT OF AGRICULTURE
7 CFR Part 906
[Docket No. FV96-906-2FR]
Oranges and Grapefruit Grown in the Lower Rio Grande Valley in
Texas; Change in Reporting Requirements
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: This final rule changes the reporting requirements currently
prescribed under the Texas orange and grapefruit marketing order. The
marketing order regulates the handling of oranges and grapefruit grown
in three counties in the Lower Rio Grande Valley in Texas and is
administered locally by the Texas Valley Citrus Committee (committee).
Shipments of oranges and grapefruit out of the production area must
meet minimum standards of grade, size, quality, and pack. Such
shipments are subject to mandatory inspection. This final rule adds
language in the
[[Page 64254]]
order's rules and regulations to require that all sales of over 400
pounds of oranges and grapefruit for resale inside the production area
be covered by a ``Buyer Certification'' form (Certification Form). This
requirement will ensure that handlers are aware of and accept
responsibility for complying with the order's requirements and that
buyers do not transport uninspected oranges and grapefruit out of the
three-county production area.
EFFECTIVE DATE: This final rule becomes effective December 5, 1996.
FOR FURTHER INFORMATION CONTACT: Belinda G. Garza, McAllen Marketing
Field Office, Marketing Order Administration Branch, Fruit and
Vegetable Division, 1313 E. Hackberry, McAllen, Texas 78501; telephone:
(210) 682-2833, Fax # (210) 682-5942; or Charles L. Rush, Marketing
Order Administration Branch, Fruit and Vegetable Division, AMS, USDA,
room 2525-S, P.O. Box 96456, Washington, DC 20090-6456; telephone:
(202) 690-3670, Fax # (202) 720-5698. Small businesses may request
information on compliance with this regulation by contacting: Jay
Guerber, Marketing Order Administration Branch, Fruit and Vegetable
Division, AMS, USDA, P.O. Box 96456, room 2525-S, Washington, DC 20090-
6456; telephone (202) 720-2491; Fax # (202) 720-5698.
SUPPLEMENTARY INFORMATION: This final rule is issued under Marketing
Agreement and Order No. 906 (7 CFR Part 906), as amended, 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 final
rule in conformance with Executive Order 12866.
This final rule has been reviewed under Executive Order 12988,
Civil Justice Reform. This 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 608c(15)(A) of the
Act, any handler subject to an order may file with the Secretary a
petition stating that the order, any provision of the order, or any
obligation imposed in connection with the order is not in accordance
with law and request a modification of the order or to be exempted
therefrom. A handler is afforded the opportunity for a hearing on the
petition. After the hearing the Secretary would rule on the petition.
The Act provides that the district court of the United States in any
district in which the handler is an inhabitant, or has his or her
principal place of business, has jurisdiction to review the Secretary's
ruling on the petition, provided an action is filed not later than 20
days after date of the entry of the ruling.
Pursuant to the requirements set forth in the Regulatory
Flexibility Act (RFA), the Agricultural Marketing Service (AMS) has
considered the economic impact of this final 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 who
are subject to regulation under the order and approximately 2,000
orange and grapefruit producers in the regulated area. Small
agricultural service firms, which includes handlers, have been defined
by the Small Business Administration (13 CFR 121.601) as those having
annual receipts of less than $5,000,000, and small agricultural
producers are defined as those having annual receipts of less than
$500,000. The majority of handlers and producers of Texas oranges and
grapefruit may be classified as small entities.
This final rule establishes a requirement that handlers (sellers)
complete a Certification Form on all sales of over 400 pounds of
oranges or grapefruit, or both, destined for resale inside the
production area to help ensure that such oranges or grapefruit do not
leave the production area without meeting order requirements. The use
of this new form was unanimously recommended by the committee at a
public meeting on May 29, 1996.
Implementation of the requirement to submit Certification Forms
will result in a small increase in reporting requirements imposed on
handlers. The added cost of complying with this requirement will be
minimal and will be offset by benefits derived from enhanced compliance
with the order and more complete statistical data beneficial to the
entire industry. Therefore, the AMS has determined that this action
will not have a significant economic impact on a substantial number of
small entities.
Under the order, Texas orange and grapefruit shipments to fresh
markets in the United States, Canada, and Mexico are required to be
inspected and are subject to grade, size, quality, container and pack
requirements. Exempt from such handling requirements are shipments
made: (1) within the production area (Cameron, Hidalgo, and Willacy
counties in Texas); (2) in individually addressed gift packages which
are not for resale; (3) under the 400-pound minimum quantity exemption
provision; and (4) for relief or charity. In addition, fruit shipped to
approved processors for processing are exempt from handling
requirements. These handling requirements do not change substantially
from season to season, and are in effect on a continuing basis subject
to amendment, modification, or suspension as may be determined by the
Secretary. Currently, the handling regulations under the order are
effective from September 1 through June 30 each year.
Section 906.51 of the order provides authority for the committee,
with the approval of the Secretary, to require that each handler
furnish to the committee reports and other information as may be
necessary for the committee to perform its duties under the marketing
order.
The committee recommended the establishment of a requirement that
handlers of Texas oranges and grapefruit complete a Certification Form
on all sales of over 400 pounds of oranges or grapefruit or a
combination of both that are not intended to leave the production area.
(The order currently provides that 400 pounds of Texas oranges or
grapefruit or a combination of both not for resale may be shipped per
day outside the production area without having to meet marketing order
requirements.) The form will require the following information: (1)
names and addresses of the seller and the buyer; (2) description and
quantity of the oranges or grapefruit sold; and (3) the destination of
the fruit. In addition, the buyer will certify that fruit that is
subsequently taken outside the production area for resale will be
inspected in accordance with the order and its rules and regulations.
The information compiled from use of this form will also provide the
committee, its staff, and the industry with valuable statistics on
fruit sold and marketed within the production area.
Handling of oranges and grapefruit inside the production area is
not
[[Page 64255]]
regulated. While monitoring compliance during the 1995-96 season,
committee staff became aware of a lack of documentation on fruit
intended for use within the production area. Such fruit was on occasion
found outside the production area without having been inspected and
certified as meeting marketing order requirements. The committee
recognized the need to make handlers responsible for ensuring that
sales of their fruit intended for resale inside the production area,
but subsequently leaving the production area, meet the provisions of
the order. The Certification Form was developed to help track such
sales. Currently, documentation on sales to peddlers and cash buyers,
and other transactions not supported by an inspection certificate or a
diversion report (used to track shipments for processing, relief, or
charity), is minimal or non-existent. In the process of conducting its
compliance program, the committee encountered difficulty in tracking
movement of such citrus and detecting violations of the order.
The form will be completed by the seller (handler) in triplicate.
The buyer will sign the certification statement on the form. One copy
will be submitted by the handler to the committee within 7 days after
the sale. One copy will be retained by the handler and the third copy
will be given to the buyer. The forms will be reviewed by the
committee's compliance staff as they are received and will be compared
against handler records and inspection certificates. In addition, the
form will also provide valuable statistical information on fruit sold
and marketed for use within the production area. Currently, there is no
tracking system for local use fruit. Collection of this information
will fill a void in the committee's statistical database which will be
used to determine total utilization of fruit and further assist the
industry in making marketing decisions.
Throughout the past season, the committee considered possible
options to monitor shipments of uninspected oranges and grapefruit. It
was noted that local use fruit is presently not accounted for, which
leaves a significant void in the committee's database. The committee
considered, for example, compiling an ``approved peddler'' list, and
allowing uninspected fruit to be sold only to those appearing on the
list. This option was determined to be impractical for the industry, as
such a list would change constantly and could never be accurately
maintained. Development of the Certification Form was the only option
believed to be viable. Use of the form will raise awareness of both the
sellers' and buyers' responsibility to comply with the provisions of
the marketing order. This option will result in the smallest increase
in regulatory burden of the options considered, including the
establishment of additional regulatory requirements, such as inspection
of all shipments, regardless of destination. Therefore, the committee
recommended that Sec. 906.151 be amended by designating the existing
paragraph in this section as (a) and adding a new paragraph (b).
The proposed rule concerning this action was published in the
September 18, 1996, Federal Register (61 FR 49078), with a 30-day
comment period ending October 18, 1996. No comments were received. The
proposed rule also announced AMS's intention to request a revision to
the currently approved information collection requirements issued under
the marketing order. The informal collection requirements in the
referenced section have been approved by the Office of Management and
Budget (OMB) under the provisions of 44 U.S.C. Chapter 35 and have been
assigned OMB No. 0581-0068.
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.
It is further found that good cause exists for not postponing the
effective date of this rule until 30 days after publication in the
Federal Register (5 U.S.C. 553) because: (1) the Texas citrus shipping
season began in mid-September; (2) this rule was unanimously
recommended by the committee at a public meeting and all interested
persons had an opportunity to express their views and provide input;
(3) Texas orange and grapefruit handlers are aware of this rule and
need no additional time to comply with the requirements; and (4) a 30-
day comment period was provided for in the proposed rule and no
comments were received.
List of Subjects in 7 CFR Part 906
Grapefruit, Marketing agreements, 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 THE 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. In Sec. 906.151 the existing text is designated as paragraph (a)
and new paragraphs (b) and (c) are added to read as follows:
Sec. 906.151 Reports.
* * * * *
(b) Each handler who sells over 400 pounds of oranges or grapefruit
or a combination of both for resale inside the production area shall,
for each transaction, report to the committee on a form approved by it
the following information:
(1) Name and address of seller;
(2) Name and address of buyer;
(3) Description and quantity of oranges or grapefruit sold;
(4) Destination of fruit;
(5) A statement that the buyer certifies that fruit that is
subsequently taken outside the production area for resale will be
inspected; and
(6) Such other pertinent information as the committee may require.
(c) The handler shall prepare the report in triplicate. The buyer
shall sign the certification statement. The pink copy shall be
submitted to the committee within 7 days. The green copy shall be
retained by the handler and the blue copy shall be given to the buyer.
Such form shall be reviewed by the committee staff and the information
compiled for the committee's use.
Dated: November 27, 1996.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 96-30859 Filed 12-3-96; 8:45 am]
BILLING CODE 3410-02-P
