[Federal Register Volume 59, Number 214 (Monday, November 7, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-27519]


[[Page Unknown]]

[Federal Register: November 7, 1994]


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DEPARTMENT OF AGRICULTURE
7 CFR Part 928

[Docket No. FV94-928-4FR]

 

Papayas Grown in Hawaii; Final Rule to Change the Membership of 
the Papaya Administrative Committee

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: This final rule changes the membership of the Papaya 
Administrative Committee (committee), the agency responsible for local 
administration of the Hawaiian papaya marketing order. This rule 
increases the number of grower members on the committee from six to 
nine and reduces the number of handler members from six to three. The 
number of growers in the industry has increased in recent years, during 
the same period the number of handlers has remained constant.

EFFECTIVE DATE: This final rule becomes effective December 7, 1994.

FOR FURTHER INFORMATION CONTACT: Charles L. Rush, Marketing Order 
Administration Branch, Fruit and Vegetable Division, AMS, USDA, P.O. 
Box 96456, Room 2526-S, Washington, DC 20090-6456; telephone (202) 690-
3670; or Martin J. Engeler, Assistant Officer-In-Charge, California 
Marketing Field Office, Fruit and Vegetable Division, AMS, USDA, 2202 
Monterey Street, Suite 102B, Fresno, California 93721; telephone (209) 
487-5901.

SUPPLEMENTARY INFORMATION: This final rule is issued under Marketing 
Order No. 928 [7 CFR Part 928], as amended, regulating the handling of 
papayas grown in Hawaii, hereinafter referred to as the order. This 
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 final rule has been reviewed under Executive Order 12778, 
Civil Justice Reform. This rule is not intended to have retroactive 
effect. This 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 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 requesting a modification of the order or an exemption 
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 in equity to review the 
Secretary's ruling on the petition, provided a bill in equity is filed 
not later than 20 days after the 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 impact of this rule on small entities.
    The purpose of the RFA is to fit regulatory rules to the scale of 
business subject to such rules 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 120 papaya handlers subject to regulation 
under the marketing order covering fresh papayas grown in Hawaii, and 
approximately 400 producers of papayas in Hawaii. Small agricultural 
producers have been defined by the Small Business Administration [13 
CFR 121.601] as those having annual receipts of less than $500,000, and 
small agricultural service firms as those whose annual receipts are 
less than $5,000,000. A majority of these handlers and producers may be 
classified as small entities.
    Pursuant to Sec. 928.120, the committee currently consists of 13 
members. Each member has an alternate. Six members are growers, six are 
handlers, and one is a public member. The six handler members and 
alternates are nominated from the production area at large. Grower 
membership on the committee is apportioned among three districts. 
District 1 (the Island of Hawaii) is represented by four members and 
alternates, and District 2 (the Islands of Kauai, Niihau, Maui, 
Molakai, Lanai, Kahoolawe; and Kalawao county), and District 3 (the 
Island of Oahu) by one member and alternate each. Any grower 
organization is limited to two members on the committee. Any handler 
organization is limited to one member on the committee.
    Section 928.20 also allows the number of grower and handler members 
and alternate members on the committee and the composition of the 
committee between growers and handlers to be changed as provided in 
Sec. 928.31(o). Paragraph (o) of Sec. 928.31 also authorizes the 
committee, with the approval of the Secretary, to redefine the 
districts into which the production area is divided, reapportion 
membership on the committee. Any such changes are required to reflect, 
insofar as practicable, structural changes within the industry and 
shifts in papaya production within the production area.
    This final rule changes the composition of the committee by 
increasing grower representation on the committee from six grower 
members to nine and reducing handler representation from six members to 
three. This change was recommended by the committee on April 22, 1994, 
by a vote of 7 in favor, 3 opposed, and 2 abstentions.
    The papaya industry has historically demonstrated a policy of 
maintaining equitable representation among handlers and growers. In 
1989, committee membership was changed by allocating three grower 
member positions from District 1 to handlers in the State of Hawaii. 
This resulted in an increase from three to six handler members and a 
decrease in grower members from District 1 from seven to four. The 
committee indicated that the number of growers in the industry has 
increased from 325 to 400 since 1989, while the number of handlers has 
remained constant. The committee contends that these factors support 
their recommendation to change committee membership. This action is 
intended to provide increased grower representation on the committee 
consistent with the increased number of growers. This rule will not 
impose any additional costs on growers or handlers.
    Members supporting this change stated that the marketing order is 
designed to primarily benefit growers and for that reason growers 
should have a majority on the committee. Members supporting the 
recommendation also stated that this change will increase growers' 
influence in matters concerning amendments to the marketing order, and 
market research and development and promotion activities. The majority 
of that increase occurred in District 1. Members opposed to the change 
in the current committee membership stated that the marketing order 
should benefit the entire industry, and believe the current composition 
of the committee provides a good balance for the industry.
    The committee indicated that the increase in the number of growers 
producing papayas in District 1, justified increasing from four to 
seven the number of growers representing District 1 on the committee. 
Committee members supporting this change contend that the vast majority 
of growers and the highest level of papaya production are located in 
District 1. District 1 is expected to produce 55.6 million pounds 
during the 1993-94 season. Over the last four years District 1 has had 
an average annual production of 54.1 million pounds of papayas. For the 
same period District 2 has an average production of 760,000 pounds, and 
District 3 has an average production of 1,020,000 pounds of papayas.
    The proposed rule concerning this action was published in the 
September 2, 1994, Federal Register [59 FR 45630], with a 30-day 
comment period ending October 3, 1994. No comments were received.
    Based on the available information, the Administrator of the AMS 
has determined that this final rule 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 rule, as 
hereinafter set forth, will tend to effectuate the declared policy of 
the Act.

List of Subjects in 7 CFR Part 928

    Marketing agreements, Papayas, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR Part 928 is 
amended as follows:

PART 928--PAPAYAS GROWN IN HAWAII

    1. The authority citation for 7 CFR Part 928 continues to read as 
follows:

    Authority: 7 U.S.C. 601-674.

    2. Section 928.120 is revised to read as follows:


Sec. 928.120  Committee reapportionment

    The Papaya Administrative Committee shall consist of 13 members and 
alternate members. Nine of the members shall represent growers, and 
three shall represent handlers. Seven grower members and their 
alternates shall represent District 1, one grower member and alternate 
shall represent District 2, and one grower member and alternate shall 
represent District 3. No grower organization shall have more than two 
members on the committee. The three handler members shall be nominated 
from the production area at large. No handler organization is permitted 
to have more than one handler member on the committee. One voting 
public member and alternate shall also be included on the committee. 
The eligibility requirements and nomination procedures for the public 
member and alternate are specified in Sec. 928.122.

    Dated: November 1, 1994.
Eric M. Forman,
Deputy Director; Fruit and Vegetable Division.
[FR Doc. 94-27519 Filed 11-4-94; 8:45 am]
BILLING CODE 3410-02-P