[Federal Register Volume 59, Number 193 (Thursday, October 6, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-24776]


[[Page Unknown]]

[Federal Register: October 6, 1994]


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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

7 CFR Part 906

[Docket No. FV94-906-2FR]

 

Oranges and Grapefruit Grown in the Lower Rio Grande Valley in 
Texas; Revision of Special Purpose Exemption Provisions

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: This final rule revises the administrative rules and 
regulations in effect under the Texas citrus marketing order. The 
revision eliminates the provision which exempts fruit handled for home 
use from the order's grade, size, pack, container, inspection and 
assessment requirements. This rule will help prevent unauthorized 
shipments of uninspected citrus from being shipped out of the 
production area. Individuals will 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.

EFFECTIVE DATE: November 7, 1994.

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, DC 20090-6456, 
telephone: (202) 690-3670.

SUPPLEMENTARY INFORMATION: This final 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 order is 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 rule has been reviewed under Executive Order 12778, Civil 
Justice Reform. This final rule is not intended to have retroactive 
effect. This final 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 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 15 handlers of oranges and grapefruit 
regulated under the order each season and approximately 750 orange and 
grapefruit producers in 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 verifying the final disposition of exempted fruit.
    This final rule revises Sec. 906.120(c)(1) by deleting the phrase 
``home use''. 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.
    Other exemptions from order requirements remain unchanged. Under 
paragraph (a) of Sec. 906.120, individuals will 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 will adversely 
impact those persons who purchase Texas oranges and grapefruit directly 
from handlers for their own use.
    A proposed rule concerning this revision was issued on July 21, 
1994, and published in the Federal Register on July 27, 1994, [59 FR 
38138]. That rule provided a 30-day comment period which ended August 
26, 1994. No comments were received.
    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 Texas oranges and grapefruit.
    This rule reduces 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.
    Based on the above, the Administrator of the AMS has determined 
that this action will not have a significant economic impact on a 
substantial number of small entities.
    After consideration of all relevant matter presented, including the 
information and recommendations submitted by the committee and other 
available information, it is hereby found that this final rule, as 
hereinafter set forth, will tend to effectuate the declared policy of 
the Act.

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 
amended as follows:

PART 906--ORANGES AND GRAPEFRUIT GROWN IN 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: October 3, 1994.
Eric M. Forman,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 94-24776 Filed 10-5-94; 8:45 am]
BILLING CODE 3410-02-P