[Federal Register Volume 59, Number 165 (Friday, August 26, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-21079]


[[Page Unknown]]

[Federal Register: August 26, 1994]


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DEPARTMENT OF AGRICULTURE
7 CFR Parts 907, 908, and 910

[Docket No. FV94-907-2]

 

Termination of Provisions of Marketing Orders 907, 908, and 910; 
Navel and Valencia Oranges Grown in Arizona and Designated Parts of 
California; Lemons Grown in California and Arizona

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Termination order.

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SUMMARY: This document terminates the Federal marketing orders 
regulating the handling of navel and Valencia oranges grown in Arizona 
and designated parts of California and lemons grown in California and 
Arizona. The Secretary of Agriculture has found that these marketing 
orders no longer tend to effectuate the declared policy of the 
Agricultural Marketing Agreement Act of 1937. In a press release issued 
on May 16, 1994, the Department of Agriculture announced the intention 
to terminate the orders for California-Arizona navel oranges, Valencia 
oranges, and lemons, noting the division and turmoil in the industry 
and that the programs are not functioning as they should.

EFFECTIVE DATE: August 26, 1994.

FOR FURTHER INFORMATION CONTACT: Christian Nissen, Marketing 
Specialist, Marketing Order Administration Branch, F&V, AMS, USDA, Room 
2522-S, P.O. Box 96456, Washington, DC 20090-6456; telephone: (202) 
720-5127; or Maureen Pello, California Marketing Field Office, 
Marketing Order Administration Branch, F&V, AMS, USDA, 2202 Monterey 
Street, Suite 102B, Fresno, California 93721; telephone: (209) 487-
5901.

SUPPLEMENTARY INFORMATION: This action is governed by the provisions of 
section 608c(16)(A) of the Agricultural Marketing Agreement Act of 
1937, as amended [7 U.S.C. 601-674], hereinafter referred to as the 
``Act.''
    Marketing Order Nos. 907 and 908 [7 CFR Parts 907 and 908], as 
amended, regulate the handling of navel and Valencia oranges grown in 
Arizona and designated parts of California. Marketing Order No. 910 [7 
CFR Part 910], as amended, regulates the handling of lemons grown in 
California and Arizona.
    The Department of Agriculture (Department) is issuing this rule in 
conformance with Executive Order 12866.
    This termination order has been reviewed under Executive Order 
12778, Civil Justice Reform. It is not intended to have retroactive 
effect. This action will not preempt any state or local laws, 
regulations, or policies, unless they present an irreconcilable 
conflict with this action.
    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 of 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 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.
    There are approximately 140 handlers of navel oranges, 125 handlers 
of Valencia oranges, and 70 handlers of lemons who were subject to 
regulation under the respective marketing orders and there are 
approximately 3,750 producers of navel oranges, 3,700 producers of 
Valencia oranges, and 2,000 producers of lemons in the regulated areas. 
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 whose annual receipts are less than $500,000. The 
majority of handlers and producers of California-Arizona navel oranges, 
Valencia oranges, and lemons may be classified as small entities.
    Marketing Order No. 907 has been in effect since 1953, Marketing 
Order No. 908 since 1954, and Marketing Order No. 910 since 1958. When 
order authorities were utilized, the orders provided for the 
establishment of weekly volume regulation and size requirements. In 
addition, the marketing orders authorized marketing research and 
development and provided for reporting and recordkeeping requirements 
for affected handlers.
    This action terminates the provisions of the marketing orders 
regulating the handling of navel and Valencia oranges grown in Arizona 
and designated parts of California and lemons grown in California and 
Arizona.
    On May 16, 1994, the Deputy Secretary announced in a press release 
that it was the Department's intention to terminate the marketing 
orders for California-Arizona navel oranges, Valencia oranges, and 
lemons. The decision noted the division and turmoil in the industry 
surrounding the California-Arizona citrus orders. The press release 
stated that there is a clear indication that the programs are not 
working as they should.
    The California-Arizona citrus orders have been marked by industry 
divisiveness and widespread order violations. In an effort to reach a 
satisfactory resolution of industry differences, the Secretary 
suspended the weekly volume regulation provisions of the orange orders 
on June 18, 1993, and invited the industry to submit proposed 
amendments to the orders that could achieve the program objectives. 
After a year, serious differences remain, with no apparent consensus 
among the industry. Instead, the orders themselves are contributing to 
the divisiveness in the industry and are working to the detriment of 
growers, packers, and consumers.
    Therefore, based on the above considerations, pursuant to section 
8c(16)(A) of the Act and Sec. 907.83, Sec. 908.83, and Sec. 910.84 of 
the respective marketing orders, it is found that 7 CFR Parts 907, 908, 
and 910 no longer tend to effectuate the declared policy of the Act, 
and they are hereby terminated.
    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 May 16, 1994, and the termination of 
Marketing Orders Nos. 907, 908, and 910 shall become effective on 
August 26, 1994.
    Based on the unanimous recommendations of the Navel Orange 
Administrative Committee (NOAC), the Valencia Orange Administrative 
Committee (VOAC), and the Lemon Administrative Committee (LAC), the 
Secretary has determined that Alvin Freisen (VOAC chairperson), and all 
five members of the joint executive committee for the NOAC and the 
VOAC, will serve as trustees for the NOAC and the VOAC and that all six 
members of the executive committee of the LAC (including alternates) 
will serve as trustees for the LAC in order to oversee the 
administrative affairs of the respective orders.
    The trustees will be responsible for completing the orders' 
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 for the NOAC and VOAC are Ms. 
Darlene V. Ohnemus (VOAC and NOAC member), Mr. Robert O. Bream (NOAC 
member), Mr. Christopher R. Frame (NOAC chairperson), Mr. William E. 
Slattery (VOAC member), Mr. David R. Giller (VOAC member), and Mr. 
Alvin Friesen (VOAC chairperson). Those designated as trustees for the 
LAC are Mr. Solon J. Boydston (LAC member), Ms. Darlene V. Ohnemus (LAC 
member), Mr. David R. Giller (LAC member), Mr. Alvin Friesen (LAC 
member), Mr. Charles R. Bell (LAC member), and Mr. Christopher R. Frame 
(LAC member). 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 committees.
    It is also found and determined upon good cause that it is 
impracticable, unnecessary, and contrary to the public interest to give 
preliminary notice or to engage in further public procedure prior to 
putting this action into effect and that good cause exists for not 
postponing the effective date of this action until 30 days after 
publication because: (1) Growers and handlers are aware of this action 
since notice was given to Congress and the termination was announced in 
a press release issued by the Secretary on May 16, 1994; (2) this 
action relieves restrictions on handlers by terminating the 
requirements of the marketing orders regulating the handling of 
California-Arizona navel oranges, Valencia oranges, and lemons; and (3) 
no useful purpose would be served by delaying this action.
    Based on available information, the Administrator of the AMS has 
determined that this action will not have a significant economic impact 
on a substantial number of small entities.

List of Subjects

7 CFR Parts 907 and 908

    Marketing agreements, Oranges, Reporting and recordkeeping 
requirements.

7 CFR Part 910

    Lemons, Marketing agreements, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, under the authority of 7 
U.S.C. 601-674, 7 CFR Parts 907, 908, and 910 are amended as follows:

PART 907--[REMOVED]

    1. Part 907--Navel Oranges Grown in Arizona and Designated Part of 
California is removed.

PART 908--[REMOVED]

    2. Part 908--Valencia Oranges Grown in Arizona and Designated Part 
of California is removed.

PART 910--[REMOVED]

    3. Part 910--Lemons Grown in California and Arizona is removed.

    Dated: August 22, 1994.
Patricia Jensen,
Acting Assistant Secretary, Marketing and Inspection Services.
[FR Doc. 94-21079 Filed 8-25-94; 8:45 am]
BILLING CODE 3410-02-P