[Federal Register Volume 62, Number 159 (Monday, August 18, 1997)]
[Rules and Regulations]
[Pages 43922-43924]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-21732]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 918
[Docket No. FV-97-918-1 FR]
Fresh Peaches Grown in Georgia; Termination of Marketing Order
No. 918
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule; Termination of Order.
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SUMMARY: This rule terminates the Federal marketing order regulating
the handling of fresh peaches grown in Georgia (order) and the rules
and regulations issued thereunder. The Georgia peach industry has not
operated under the order since its provisions were suspended March 1,
1993. The order does not reflect current industry structure and
operating procedures and there is no industry support for reactivating
the order. Therefore, there is no need to continue this order.
EFFECTIVE DATE: September 17, 1997.
FOR FURTHER INFORMATION CONTACT: William G. Pimental, Southeast
Marketing Field Office, AMS, USDA, P.O. Box 2276, Winter Haven, Florida
33883-2276; telephone: (941) 299-4770, Fax: (941) 299-5169; or Kathleen
Finn, Marketing Order Administration Branch, F&V, AMS, USDA, room 2530-
S, P.O. Box 96456, Washington, DC 20090-6456; telephone: (202) 720-
2491, 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.
[[Page 43923]]
Box 96456, room 2523-S, Washington, DC 20090-6456; telephone (202) 720-
2491, Fax: (202) 720-5698.
SUPPLEMENTARY INFORMATION: This final rule is governed by provisions of
Sec. 608(16)(A) of the Agricultural Marketing Agreement Act of 1937, as
amended (7 U.S.C. 601-674), hereinafter referred to as the Act and
Sec. 918.81 of the order.
The Department of Agriculture (Department) is issuing this 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 polices, 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.
This final rule terminates the order regulating the handling of
peaches grown in Georgia. Sections 918.81 and 918.82 of the order
contain the authority and procedures for termination.
The order was initially established in 1942 to help the industry
solve specific marketing problems and maintain orderly marketing
conditions. It was the responsibility of the Peach Industry Committee
(committee), the agency established for local administration of the
marketing order, to periodically investigate and assemble data on the
growing, harvesting, shipping, and marketing conditions of Georgia
peaches. The committee tried to achieve orderly marketing and improve
acceptance of Georgia peaches through the establishment of minimum
size, maturity and quality requirements.
The Georgia peach industry has not operated under the marketing
order for over four years. The order and all of its accompanying rules
and regulations were suspended March 1, 1993, for two years (58 FR
8209). At the request of the industry, the Department extended the
suspension for two more years (60 FR 17633). Regulations have not been
applied under the order since 1992, and no committee has been appointed
since then. The only regulations the industry is using are for
research, promotion, and advertising. This is handled locally by the
Georgia Commodity Commission through a State program.
In 1942, when the marketing order was issued, there were over 300
growers of Georgia peaches. Currently, there are approximately 20 peach
growers.
The Department contacted many current industry members with respect
to the need for reinstating the marketing order. Virtually all the
individuals corresponding with the Department stated they were not
interested in reestablishing the order. There was a peach industry
meeting held on February 6, 1997, in Byron, Georgia where the marketing
order was a topic of discussion. There was no support from the
attendees for reactivating or amending the order.
There have been changes in industry structure and operating
procedures since the order was last amended. Making the marketing order
reflect these changes could require further amendments. The steps
necessary to amend and reactivate the existing order would be similar
to what would be required to establish a new order. The need for a new
or amended marketing order would have to be justified and supported by
a large majority of Georgia peach growers. This would require a public
hearing and a grower referendum. There is no determinable industry
support for a marketing order. Thus, there is little justification to
continue the current order.
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA), the Agricultural Marketing Service (AMS) has considered the
economic impact of this action on small entities. Accordingly, AMS has
prepared this regulatory flexibility analysis.
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 8 handlers of Georgia peaches who would be
subject to regulation under the marketing order and approximately 20
peach growers in the regulated area. Small agricultural service firms
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 the Georgia peach growers and
handlers may be classified as small entities.
This final rule terminates the order regulating the handling of
peaches grown in Georgia. The order and its accompanying rules and
regulations have been suspended since March 1, 1993. No regulations
have been implemented since the 1990-91 season, and there is no
indication that such regulations will again be needed.
The industry has been operating without a marketing order since its
suspension. Reestablishing the order would mean additional cost to the
industry stemming from assessments to maintain the order and any
associated costs generated by regulation. By not reinstating the
marketing order, the industry benefits from avoiding these costs.
Because the industry has been operating without an order for four
years, the termination of the order would have no noticeable effect on
either small or large operations.
The Department attempted to solicit as much industry input on this
decision as possible. The Department sent a letter to current industry
members it was able to identify seeking comments on the need for
reinstating the marketing order. There was a peach industry meeting
held on February 6, 1997, in Byron, Georgia where the marketing order
was a topic of discussion. In addition, the proposed rule provided the
opportunity for all interested persons to comment on the termination of
the marketing order.
A proposed rule was published in the June 4, 1997, issue of the
Federal Register giving interested persons until July 7, 1997, to file
written comments. No comments were received.
The Department believes that conducting a termination referendum
would merely reaffirm the Georgia peach industry's continued lack of
interest in reactivating the marketing order and that conducting such a
referendum would be wasteful of Departmental and public resources.
Therefore, pursuant to Sec. 608c(16)(A) of the Act and Sec. 918.81
of the order, the Secretary has determined that Marketing Order No.
918, covering peaches grown in Georgia, and the rules and regulations
issued thereunder, no longer tend to
[[Page 43924]]
effectuate the declared policy of the Act, and are hereby terminated.
Trustees have been appointed to continue in the capacity of
concluding and liquidating the affairs of the former committee. The
trustees will be responsible for completing the order's unfinished
business, including ensuring termination of all outstanding agreements
and contracts, and the payment of all obligations. The trustees will be
responsible for safeguarding program assets, holding committee records,
and arranging for a financial audit to be conducted. All such actions
by the trustees are subject to the approval of the Secretary. Those
designated as trustees are Robert L. Dickey III, William H. Davidson,
and Al Pearson. The trustees shall continue in their capacity until
discharged by the Secretary.
The remainder of the reserves, after immediate expenses are paid,
will be held by the trustees to be used to cover unforeseen,
outstanding expenses obligated by the trustees.
Section 608c(16)(A) of the Act requires the Secretary to notify
Congress 60 days in advance of the termination of a Federal marketing
order. Congress has been so notified.
List of Subjects in 7 CFR Part 918
Marketing agreements, Peaches, Reporting and recordkeeping
requirements.
PART 918--[REMOVED]
For the reasons set forth in the preamble, and under authority of 7
U.S.C. 601-674, 7 CFR part 918 is removed.
Dated: August 12, 1997.
Lon Hatamiya,
Administrator.
[FR Doc. 97-21732 Filed 8-15-97; 8:45 am]
BILLING CODE 3410-02-P
