[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