[Federal Register Volume 59, Number 67 (Thursday, April 7, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-8293]


[[Page Unknown]]

[Federal Register: April 7, 1994]


                                                    VOL. 59, NO. 67

                                            Thursday, April 7, 1994

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1212

[FV-93-707PR]
RIN 0581-AB19

 

Lime Research, Promotion, and Consumer Information Order; 
Proposed Amendments

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: This rule gives notice of proposed amendments to the Lime 
Research, Promotion, and Consumer Information Order. These amendments 
would revise the definition of the term ``lime'' in order to cover 
seedless rather than seeded limes; increase the exemption level from 
less than 35,000 pounds annually to less than 200,000; alter the size, 
composition, and term of office of the Lime Board; and make necessary 
conforming changes. This action is necessary to implement amendments to 
the Lime Research, Promotion, and Consumer Information Act of 1990.

DATES: Comments must be received by May 9, 1994.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposed rule to: Docket Clerk, Fruit and Vegetable 
Division, AMS, USDA, P.O. Box 96456, room 2535-S, Washington, DC 20090-
6456. Three copies of all written materials should be submitted, and 
they will be made available for public inspection in the Office of the 
Docket Clerk during regular working hours. All comments should 
reference the docket number of this issue of the Federal Register.
    All comments concerning the new information collection requirement 
contained in this action (importer reimbursement application) should be 
sent to the Office of Information and Regulatory Affairs, Office of 
Management and Budget, Washington, DC 20503. Attn: Desk Officer for the 
Agricultural Marketing Service.

FOR FURTHER INFORMATION CONTACT: Richard Schultz at the above address 
or telephone (202) 720-5976.

SUPPLEMENTARY INFORMATION: This proposed rule would amend the Lime 
Research, Promotion, and Consumer Information Order (7 CFR part 1212), 
herein referred to as the Order. The Order is effective under the Lime 
Research, Promotion, and Consumer Information Act of 1990 (1990 Act) 
(Pub. L. 101-624, 7 U.S.C. 6201-6212), as amended by the Lime Research, 
Promotion, and Consumer Information Improvement Act (1993 Act) (Pub. L. 
103-194, Dec. 14, 1993).
    This rule has been determined to be non-significant for the 
purposes of Executive Order 12866 and therefore has not been reviewed 
by the Office of Management and Budget (OMB).
    This rule has been reviewed under Executive Order 12778, Civil 
Justice Reform. It is not intended to have retroactive effect. This 
rule would 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 1957 of the Act, a 
person subject to the Order may file a petition with the Secretary of 
Agriculture (Secretary) stating that the Order or 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 from the Order. The petitioner is afforded the opportunity 
for a hearing on the petition. After such hearing, the Secretary will 
make a ruling on the petition. The Act provides that the district 
courts of the United States in any district in which a person who is a 
petitioner resides or carries on business are vested with jurisdiction 
to review the Secretary's ruling on the petition, if a complaint for 
that purpose is filed within 20 days after the date of the entry of the 
ruling.

Regulatory Impact Analysis

    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 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.
    The 1990 Act exempted lime producers who produce less than 35,000 
pounds annually for the fresh market from being subject to the Order. 
When the 1990 Act was enacted, there were an estimated 325 producers 
who produced at least 35,000 pounds annually and were subject to the 
Order. When the 1993 Act was enacted, the exemption level was increased 
to less than 200,000 pounds annually. At this exemption level, there 
are an estimated 50 producers who produce at least 200,000 pounds and 
would be subject to the Order. Despite this increase in exemption 
level, the majority of producers subject to the Order would still be 
classified as small entities. Small agricultural producers have been 
defined by the Small Business Administration (SBA) (13 CFR 121.601) as 
those having annual receipts of less than $500,000.
    The increase in exemption level is not expected to significantly 
affect the number of first handlers who are responsible for collecting 
and remitting producer assessments to the Lime Board (Board). The 
number of first handlers remains at approximately 25. The increase in 
exemption level, which also applies to imports, is not expected to 
significantly affect the number of importers of fresh market limes. The 
number of importers subject to the Order would increase from 5 to 35. 
However, this increase in importers is not primarily due to the 
increase in the exemption level but rather to the changing character of 
the lime industry. As in the case of producers, the majority of first 
handlers and importers subject to the Order would still be classified 
as small entities. Small agricultural service firms, which include 
handlers and importers, have been defined by the SBA as those having 
annual receipts of less than $3,500,000.
    Since the enactment of the 1990 Act, the character of the lime 
industry has significantly changed. As a result of the extensive damage 
to lime orchards in Florida by Hurricane Andrew in August 1992, 
domestic production has plummeted and the volume of imports has 
increased dramatically. Domestic production is not expected to reach 
pre-Hurricane Andrew levels for possibly two to three years because 
Florida accounted for a majority of domestic production.
    Shipment reports of domestic limes, from January 1, 1993, through 
December 31, 1993, indicate truck shipments of 8.71 million pounds from 
Florida and 8.24 million pounds from California, for a total of 16.95 
million pounds. In contrast, shipment reports of imported limes for 
this period indicate truck shipments of 248.22 million pounds from 
Mexico plus an additional 8.78 million pounds from 12 other countries. 
Imports currently represent roughly 93 percent of lime shipments in the 
United States.
    The Order currently requires lime producers, producer-handlers, and 
importers who produce or import 35,000 pounds or more annually for 
fresh market to pay an assessment not to exceed one cent per pound of 
limes. This proposal would limit assessment obligations to producers, 
producer-handlers, and importers of 200,000 pounds or more annually. 
The expected results of this amendment would significantly decrease the 
number of persons subject to the Order and decrease the amount of 
assessments collected.
    This proposal would also alter the size and composition of the 
Board, the administrative body appointed by the Secretary to operate 
the Order, from 11 members to seven. Further, this proposal would 
reduce the number of producer members serving on the Board from seven 
to three. The number of importer members would remain at three. The 
seventh member would be the public member. These changes to the Board's 
size and membership are reflective of the current structure of the lime 
industry.
    Accordingly, the Administrator of the AMS has determined that the 
changes reflected in this action would not have a significant economic 
impact on a substantial number of small entities.

Paperwork Reduction

    In accordance with the Paperwork Reduction Act of 1980 (44 U.S.C. 
chapter 35) the information collection requirements contained in the 
Order have been approved by the OMB and were assigned OMB number 0581-
0093, except for the Board nominee background statement form which was 
assigned OMB number 0505-0001. This action would generally reduce the 
number of information collections, and hence the reporting burden. The 
information collection requirements of the Order are as follows:
    (1) A periodic report by each first handler who handles limes for 
fresh market. When the amended Order is implemented, the estimated 
number of respondents required to complete this report would be 25, 
each submitting a maximum of 12 responses per year, with an estimated 
average reporting burden of 30 minutes per response. The change in 
exemption level, from less than 35,000 pounds to less than 200,000 
pounds, should not affect the number of first handlers. However, this 
change could reduce their reporting burden because less information may 
be required from persons who previously would not be exempt from the 
Order. First handlers may alternatively prepay assessments annually, 
requiring only an initial report of anticipated assessments and a final 
annual report of actual handling;
    (2) A periodic report by each importer who imports 200,000 or more 
pounds annually for fresh market. The estimated number of respondents 
completing this report would be 35, each submitting a maximum of 12 
responses per year, with an estimated average reporting burden of 15 
minutes per response. The change in character of the lime industry due 
to increased imports since 1992 would raise the number of respondents 
filing this report from 5 to 35;
    (3) A refund application form for persons who desire a refund of 
their assessments. The estimated number of respondents completing this 
application would be five, each submitting two responses per year, with 
an estimated average reporting burden of 15 minutes per response. The 
change in exemption level would reduce the number of respondents filing 
this application from 200 to 5;
    (4) An importer reimbursement application for persons who import 
less than 200,000 pounds annually and desire to be reimbursed for 
assessments collected by the U.S. Customs Service. The estimated number 
of respondents completing this application would be 20, each submitting 
one response per year, with an estimated average reporting burden of 15 
minutes per response. Because this is a new form, no comparative data 
regarding an increase or decrease in reporting burden is available;
    (5) An exemption application for persons who produce or import less 
than 200,000 pounds annually for fresh market to be exempt from 
assessments and recordkeeping requirements. The estimated number of 
respondents completing this application would be 600, each submitting 
one response per year, with an estimated average burden of 15 minutes 
per response. The changes in exemption level and character of the lime 
industry would reduce the number of respondents filing this application 
from 680 to 600;
    (6) A referendum ballot to be used not later than 30 months after 
assessments begin under the amended Order and periodically thereafter 
to indicate whether producers and importers favor continuance of the 
Order. The estimated number of respondents completing this ballot would 
be 85, each submitting one response approximately every five years, or 
an annual average of 10 respondents, with an estimated average 
reporting burden of 15 minutes per response. The change in exemption 
level would reduce the number of respondents completing this ballot 
from 325 to 85;
    (7) A nominee background statement form for Board member and 
alternate positions. Two nominees would be nominated for each open 
position on the Board. The estimated number of respondents completing 
this form would be 28 during the first year of Order operations, and 
approximately eight per year thereafter, with an estimated average 
reporting burden of 30 minutes per response. The change in the 
composition of the Board would reduce the number of respondents 
completing this form from 44 to 28; and
    (8) A requirement to maintain records sufficient to verify reports 
submitted under the Order. The estimated number of persons required to 
comply with this requirement would be 70, each of whom will have an 
estimated annual burden of seven minutes. The change in exemption level 
would reduce the number of recordkeepers from 350 to 70.

Background

    The 1990 Act was enacted on November 28, 1990, for the purpose of 
establishing an orderly procedure for the development and financing of 
an effective and coordinated program of research, promotion, and 
consumer information to strengthen the domestic and foreign markets for 
limes. The Order required by the 1990 Act became effective on January 
27, 1992 (57 FR 2985), after notice and comment rulemaking.
    In March 1992 the Department of Agriculture (Department) conducted 
nomination meetings to nominate lime producers and importers for 
appointment to the Board. The Board members were appointed by the 
Secretary in September 1992, and the Board conducted its first meeting 
at the Department in Washington, DC in October 1992. During the course 
of this meeting, the Board and the Department concluded that a 
technical amendment was needed to cover seedless rather than seeded 
limes. Consequently, full implementation of the Order was delayed until 
the enactment of such technical amendment.
    The 1993 Act contained the necessary technical amendment to cover 
seedless limes (citrus latifolia) rather than seeded limes (citrus 
aurantifolia) under the Order. The 1993 Act also provided for (1) 
increasing the exemption level from less than 35,000 pounds annually to 
less than 200,000; (2) terminating the initial Board; (3) changing the 
size and composition of the Board; and (4) delaying the initial 
referendum date.
    This proposed rule invites comments on amending the Order to 
reflect the provisions of the 1993 Act. The Act, as amended, will (1) 
revise the definition of the term ``lime'' from citrus aurantifolia to 
citrus latifolia; (2) increase the exemption level from less than 
35,000 pounds annually to less than 200,000; (3) alter the size, 
composition, and term of office of the Board; and (4) make conforming 
changes.
    This rule would change the definition of the ``lime'' from citrus 
aurantifolia (seeded lime) to citrus latifolia (seedless lime) in 
Sec. 1212.5 of the Order. Although the intent of the Act was to cover 
seedless limes, the definition of ``lime'' in Sec. 1953(6) of the 1990 
applied only to seeded limes.
    This rule would increase the producer and importer exemption level 
from less than 35,000 pounds annually to less than 200,000 pounds 
annually. This revised exemption level was reached through industry 
consensus. Therefore, this rule would change references to 35,000 
pounds in Secs. 1212.65, 1212.68, and 1212.69 of the Order to 200,000 
pounds. In addition, a new paragraph (d) has been added to Sec. 1212.68 
of the Order whereby exempt importers may obtain a refund of 
assessments collected by the U.S. Customs Service.
    Moreover, this rule would change the size of the Board from 11 
members to seven. The Board is currently composed of seven producer 
members, three importer members, and their alternates. The public 
member position is currently vacant. This action would decrease the 
number of producer members from seven to three, which would more fairly 
reflect the current structure of the lime industry. Therefore, 
Secs. 1212.30, 1212.32, and 1212.34 of the Order would be revised to 
make these changes in the Board's composition.
    This rule would also change the Board's composition in 
Sec. 1212.30(b) relative to representation of producer and importer 
members within the two districts established under the Order. District 
1 includes the States east of the Mississippi River, Puerto Rico, and 
the District of Columbia. District 2 includes the States west of the 
Mississippi River. Currently, the Order provides for six producer 
members and one importer member and their alternates from District 1, 
and one producer member and two importer members and their alternates 
from District 2. This action would reduce the number of producer 
members from District 1 from six to two by revising section 1212.30 of 
the Order.
    Further, as a result of this allocation of Board membership, the 
realignment of districts or reapportionment of membership between 
Districts 1 and 2 on the basis of changes in production and importation 
would no longer be necessary. Such realignment or reapportionment would 
be inconsistent with the 1993 Act. Therefore, any references to such 
realignment or reapportionment would be removed from Secs. 1212.18, 
1212.30, and 1212.40 of the Order.
    Reducing the size of the Board affects the current requirements for 
a quorum and the number of trustees which would be designated if the 
program were to be terminated. Therefore, this action would revise 
Sec. 1212.37 of the Order to decrease from six to four the number of 
members needed to constitute a quorum at Board meetings and change the 
number of trustees designated in Sec. 1212.84 of the Order from five to 
four.
    The 1993 Act requires the appointments of the current Board members 
to be terminated. New appointments would then be made by the Secretary. 
The 1993 Act also specifies that the initial Board members under the 
amended Order would serve initial terms of office of 30 months. This 
change is directly related to the provision of the 1993 Act which 
delays the deadline for the initial referendum until 30 months after 
the date on which the collection of assessments begin under the amended 
Order. We are also proposing a conforming change in Sec. 1212.67 of the 
Order pursuant to the 1993 provision.
    In order to provide administrative continuity during the 30 months 
prior to the initial continuance referendum, the 1993 Act provides that 
the initial Board members under the amended Order serve 30-month 
concurrent terms of office. The 1990 Act provided for the staggering of 
the terms of office of the initial Board members. Although staggered 
terms of office are generally desirable, this created a situation where 
30 percent or more of the Board's membership could change prior to the 
initial referendum. In contrast, the 1993 Act provides that the initial 
Board members under the amended Order serve 30-month concurrent terms 
of office and that staggered terms be reinstituted after the referendum 
if the program continues. The purpose of this change is to minimize the 
organizational uncertainties associated with Board member turnover and 
to facilitate organizational continuity during the period prior to the 
initial referendum. Therefore, this action would also amend section 
1212.34 of the Order.
    All written comments received in response to this publication by 
the date specified herein will be considered prior to any finalization 
of the proposed amendments.

List of Subjects in 7 CFR Part 1212

    Administrative practice and procedure, Advertising, Limes, 
Marketing agreements, Reporting and recordkeeping requirements.

    For the reasons set forth in the preamble, 7 CFR part 1212 is 
proposed to be amended as follows:

PART 1212--LIME RESEARCH, PROMOTION, AND CONSUMER INFORMATION

    1. The authority citation for 7 CFR part 1212 revised to read as 
follows:

    Authority: 7 U.S.C. 6201-6212.

Subpart A--Lime Research, Promotion, and Consumer Information Order


Sec. 1212.2  [Amended]

    2. Section 1212.2 is amended by removing the phrase ``and any 
amendments thereto'' and adding in its place ``as amended''.


Sec. 1212.5  [Amended]

    3. Section 1212.5 is amended by removing the word ``aurantifolia'' 
and adding in its place ``latifolia''.


Sec. 1212.18  [Amended]

    4. Section 1212.18 is amended by removing the phrase ``or other 
subdivisions as may be prescribed pursuant to Sec. 1212.40(o)''.
    5. In Sec. 1212.30 paragraph (a) is amended by removing the word 
``Seven'' and adding in its place ``Three''; by revising paragraph (b); 
and by removing paragraph (c) to read as follows:


Sec. 1212.30  Establishment and membership.

* * * * *
    (b) Two of the three producer members shall be producers of limes 
in District 1, and one producer member shall be a producer of limes in 
District 2. One of the three importer members shall be an importer of 
limes in District 1, and two importer members shall be importers of 
limes in District 2. The public member shall be selected at large.
    6. Section 1212.31 is amended by revising the section heading and 
paragraph (a), by designating the existing text of paragraph (k) as 
paragraph (k)(1) and revising it, and by designating the concluding 
text at the end of the section as paragraph (k)(2), to read as follows:


Sec. 1212.31  Nominations.

* * * * *
    (a) Except for the member and alternate member who represent the 
general public, nominations of initial members to the Board shall be 
submitted to the Secretary for selection as soon as practicable after 
[the effective date of the amendment of this subpart]. In subsequent 
years, nominations of members to the Board shall be submitted to the 
Secretary by the Board by August 1. Nominations may be made by means of 
group meetings for producer and importer members or by mail ballot.
* * * * *
    (k)(1) In the event of a mail ballot, all qualified persons 
interested in serving on the Board or who are interested in nominating 
another person to serve on the Board shall submit to the Board in 
writing such information as name, mailing address, number of pounds 
produced, marketed, handled, or imported, or other information as may 
be required, in order to place that person on the ballot: Provided, 
That in the case of nominating the initial Board under the amended Act, 
the Secretary shall mail out the ballots and cause press releases 
concerning the distribution of ballots and pertinent information on 
balloting to be distributed to the media in the lime producing and 
importing areas. These ballots shall be returned to the Secretary.
* * * * *


Sec. 1212.32  [Amended]

    7. Section 1212.32 is amended by removing the word ``seven'' and 
adding in its place ``three''.
    8. Section 1212.34 is revised to read as follows:


Sec. 1212.34  Term of office.

    (a) The initial members of the Board and their respective 
alternates shall serve 30-month concurrent terms of office.
    (b) The term of office for the initial Board shall begin 
immediately following appointment by the Secretary. In subsequent 
years, the term of office shall begin on January 1 or such other period 
which may be approved by the Secretary.
    (c) Subsequent appointments to the Board will be for a term of 3 
years, except that during the initial 3-year appointments, members and 
their alternates shall serve terms as follows: One producer member from 
District 1 and one importer member from District 2 shall be appointed 
for a term of 1 year; the importer member from District 1 and the 
producer member from District 2 shall be appointed for a term of 2 
years; and one producer member from District 1 and one importer member 
from District 2 shall be appointed for a term of 3 years.
    (d) Board members and alternates shall serve during the term of 
office for which they are selected and have qualified, and until their 
successors are selected and have qualified.
    (e) No member or alternate shall serve more than two successive 
terms. However, members and alternates serving a term of 1 year, after 
having served a 30-month concurrent term, may serve a third successive 
term.


Sec. 1212.37  [Amended]

    9. In Sec. 1212.37 paragraph (a) is amended by removing the word 
``Six'' and adding in its place ``Four''.


Sec. 1212.40  [Amended]

    10. Section 1212.40 is amended by removing paragraph (o) and 
redesignating paragraphs (p), (q), and (r) as paragraphs (o), (p), and 
(q) respectively.


Sec. 1212.65  [Amended]

    11. In Sec. 1212.65 paragraph (c)(2)(viii) is amended by removing 
the number ``35,000'' and adding in its place ``200,000''.
    12. Section 1212.67 is amended by revising the introductory text of 
paragraph (a) to read as follows:


Sec. 1212.67  Refunds.

    (a) Subject to the provisions of this section any producer, 
producer-handler, or importer shall have the right to personally demand 
and receive from the Board a refund of assessments paid by or on behalf 
of such producer, producer-handler, or importer for any calendar month 
during the period beginning on the date on which the collection of 
assessments begins under this Order and ending on the effective date of 
the referendum mandated by section 1960(a) of the Act; Provided, That:
* * * * *
    13. In Sec. 1212.68 paragraph (a) is amended by removing the number 
``35,000'' and adding in its place ``200,000''; and by adding a new 
paragraph (d) to read as follows:


Sec. 1212.68  Exemption from assessment.

* * * * *
    (d) Importers who are exempt from assessment shall be entitled to 
reimbursement of assessments collected by the U.S. Customs Service and 
shall apply to the Board for reimbursement of such assessments paid on 
a marketing year basis. The Board shall reimburse such assessments 
within 30 days of receiving an importer's application.


Sec. 1212.69  [Amended]

    14. Section 1212.69 is amended by removing the number ``35,000'' 
and adding in its place ``200,000''.


Sec. 1212.84  [Amended]

    15. In Sec. 1212.84 paragraph (a) is amended by removing the word 
``five'' and adding in its place ``four''.

    Dated: March 31, 1994.
Lon Hatamiya,
Administrator.
[FR Doc. 94-8293 Filed 4-6-94; 8:45 am]
BILLING CODE 3410-02-P