[Federal Register Volume 59, Number 143 (Wednesday, July 27, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-18213]
[[Page Unknown]]
[Federal Register: July 27, 1994]
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DEPARTMENT OF AGRICULTURE
7 CFR Part 906
[Docket No. FV94-906-2PR]
Oranges and Grapefruit Grown in the Lower Rio Grande Valley in
Texas; Revision of Special Purpose Exemption Provisions
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
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SUMMARY: This proposed rule invites comments on revising the
administrative rules and regulations in effect under the Texas citrus
marketing order. The revision would eliminate the provision which
exempts fruit handled for home use from the order's grade, size, pack,
container, inspection and assessment requirements. This proposed rule
would help prevent unauthorized shipments of uninspected citrus from
being shipped out of the production area. Individuals would 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.
DATES: Comments must be received by August 26, 1994.
ADDRESSES: Interested persons are invited to submit written comments
concerning this proposed rule. Comments must be sent in triplicate to
the Docket Clerk, Fruit and Vegetable Division, AMS, USDA, P.O. Box
96456, Room 2523-S, Washington, D.C. 20090-6456. Fax # (202) 720-5698.
Comments should reference the docket number and the date and page
number of this issue of the Federal Register and will be available for
public inspection in the Office of the Docket Clerk during regular
business hours.
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, D.C. 20090-6456,
telephone: (202) 690-3670.
SUPPLEMENTARY INFORMATION: This proposed 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 agreement and order are
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 proposed rule has been reviewed under Executive Order 12778,
Civil Justice Reform. This proposed rule is not intended to have
retroactive effect. This proposed 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 would
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 marketing order each season and approximately 750
orange and grapefruit producers in south 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 verifing the final disposition of exempted fruit.
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. Section 906.120(c)(1)
is proposed to be amended by deleting the phrase ``home use''.
Other exemptions from order requirements would remain unchanged.
Under paragraph (a) of Sec. 906.120, individuals would 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 would adversely
impact those persons who purchase Texas oranges and grapefruit directly
from handlers for their own use.
Based on the above the Administrator of the AMS has determined that
this action would not have a significant economic impact on a
substantial number of small entities.
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 oranges and grapefruit.
This rule would reduce 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.
Interested persons are invited to submit their views and comments
on this proposal. All comments timely received will be considered prior
to issuance of any final rule.
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
proposed to be 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. 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: July 21, 1994.
Terry C. Long,
Acting Deputy Director, Fruit and Vegetable Division.
[FR Doc. 94-18213 Filed 7-26-94; 8:45 am]
BILLING CODE 3410-02-P
