[Federal Register Volume 60, Number 114 (Wednesday, June 14, 1995)]
[Rules and Regulations]
[Pages 31229-31230]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-14473]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
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Federal Register / Vol. 60, No. 114 / Wednesday, June 14, 1995 /
Rules and Regulations
[[Page 31229]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 971
[Docket No. FV95-971-1FR]
Termination of Marketing Order 971; Lettuce Grown in the Lower
Rio Grande Valley in South Texas
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Termination order.
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SUMMARY: This action terminates the Federal marketing order for lettuce
grown in the Lower Rio Grande Valley in South Texas (order) and the
rules and regulations issued thereunder. The Secretary of Agriculture
(Secretary) has determined that the order no longer tends to effectuate
the declared policy of the Agricultural Marketing Agreement Act of 1937
(Act). In recent years, this industry has declined significantly in
numbers of producers and handlers. In 1980, there were 42 producers and
11 handlers. In 1992, there were three producers and one handler. All
known commercial production and handling of South Texas lettuce has
ceased since 1992 and there are no indications that the industry will
be revived.
EFFECTIVE DATE: July 14, 1995.
FOR FURTHER INFORMATION CONTACT: Jim Wendland, Marketing Order
Administration Branch, Fruit and Vegetable Division, AMS, USDA, P.O.
Box 96456, room 2523-S, Washington, DC 20090-6456, telephone 202-720-
2170, or Belinda G. Garza, McAllen Marketing Field Office, Fruit and
Vegetable Division, AMS, USDA, 1313 East Hackberry, McAllen, Texas,
78501, telephone 210-682-2833.
SUPPLEMENTARY INFORMATION: This action is governed by the provisions of
section 8c(16)(A) of 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 action
in conformance with Executive Order 12866.
This termination order has been reviewed under Executive Order
12778, Civil Justice Reform. This action is not intended to have
retroactive effect. This termination order 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 a 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 requirements set forth in the Regulatory Flexibility
Act (RFA), the Administrator of the Agricultural Marketing Service
(AMS) has considered the economic impact of this action on small
entities.
The purpose of the RFA is to fit regulatory actions to the scale of
business subject to such actions in order that small businesses will
not be unduly or disproportionately burdened. Marketing orders issued
pursuant to the Act, and rules issued thereunder, are unique in that
they are brought about through group action of essentially small
entities acting on their own behalf. Thus, both statutes have small
entity orientation and compatibility.
In recent years, this industry has declined significantly in
numbers of producers and handlers. During the first year the order was
in effect, there were 68 producers and 31 handlers. In 1980, there were
42 producers and 11 handlers. In 1992, there were three producers and
one handler. All known commercial production and handling of South
Texas lettuce has since ceased. 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 are defined as those whose annual receipts are less than
$5,000,000. The majority of the former South Texas lettuce producers
and handlers had been classified as small entities.
The South Texas Lettuce Committee (committee) met on May 29, 1991,
and unanimously recommended that the order's handling regulation that
was currently in effect be suspended for the 1991-92 lettuce marketing
period. The recommendation was made to eliminate the continued expense
of administering the order. The Department issued an interim final
rule, which was published in the October 31, 1991, issue of the Federal
Register (56 FR 55986). The rule suspended the 1991-92 handling
regulation in effect under the order and invited public comment through
December 2, 1991. No comments were received.
On July 13, 1992, the Department issued a suspension order, which
was published in the July 17, 1992, issue of the Federal Register (57
FR 31631). The action suspended all of the provisions of and
established pursuant to the order from July 17, 1992, through July 17,
1995, because the Secretary determined that the order no longer tended
to effectuate the declared policy of the Act. The action also indicated
that, during this period, the Department would monitor lettuce
production and the number of active producers and handlers in the
production area. At the end of that period an evaluation would be made
by the Secretary on whether there was a revival in lettuce production
and whether to reactivate the order or begin termination proceedings.
As an interim step in this evaluation, in December 1992, the
Department conducted a survey of former industry handlers to determine
whether they expected a revival of South Texas lettuce production in
the next two years, and if not, whether they wanted a refund of excess
reserve funds prior to the end of the evaluation period.
The overwhelming consensus of the respondents was that they did not
plan to resume lettuce production and the
[[Page 31230]]
handlers wanted all but $3,000 of the reserve fund to be refunded to
them as soon as practicable. On February 26, 1993, the Department
issued refund checks totaling approximately $25,000 to handlers based
on their pro rata share of assessments paid during the 1988-89 through
1990-91 marketing seasons. The remaining $3,000 reserve was considered
sufficient to cover unforeseen expenses during the period of suspension
and to cover necessary expenses of liquidation in the event the
marketing order would be terminated.
Commercial production and handling of South Texas lettuce ceased in
1992; there are currently no indications that the industry will be
revived. Without a sufficient number of producers and handlers, it is
impossible for the Secretary to appoint the required committee or
otherwise continue the operation of the order.
Therefore, based on the foregoing considerations, pursuant to
section 8c(16)(A) of the Act and Sec. 971.84 of the order, it is found
that Marketing Order No. 971, covering lettuce grown in the Lower Rio
Grande Valley in South Texas, does not tend to effectuate the declared
policy of the Act and is hereby terminated. The trustees appointed by
the Secretary shall continue in the capacity of concluding and
liquidating the affairs of the former committee, until discharged by
the Secretary.
Section 8c(16)(A) of the Act requires the Secretary to notify
Congress 60 days in advance of the termination of a Federal marketing
order. Congress was so notified on March 15, 1995.
Pursuant to 5 U.S.C. 553, it is also found and determined, upon
good cause that it is impracticable, unnecessary, and contrary to the
public interest to give additional preliminary notice, or to engage in
further procedure with respect to this action, because: (1) This action
relieves all restrictions on handlers by terminating the provisions of
part 971; (2) in 1992, the Department issued a rule suspending all
provisions of the order for two years to allow sufficient time for a
possible revival of the lettuce industry before termination of the
order; and (3) such commercial lettuce production and handling cease in
1992 and when former industry members were polled, they did not expect
a revival of the industry, and the consensus was that the order should
be terminated.
List of Subjects in 7 CFR Part 971
Lettuce, Marketing agreements, Reporting and recordkeeping
requirements.
PART 971--[REMOVED]
1. The authority citation for 7 CFR part 971 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
2. Accordingly, 7 CFR part 971 is removed.
Dated: June 6, 1995.
David R. Shipman,
Acting Deputy Assistant Secretary, Marketing and Regulatory Programs.
[FR Doc. 95-14473 Filed 6-12-95; 8:45 am]
BILLING CODE 3410-02-P
