[Federal Register Volume 61, Number 117 (Monday, June 17, 1996)] [Rules and Regulations] [Pages 30495-30497] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 96-15350] ----------------------------------------------------------------------- DEPARTMENT OF AGRICULTURE Agricultural Marketing Service 7 CFR Part 922 [Docket No. FV96-922-1IFR] Apricots Grown in Designated Counties in Washington; Temporary Suspension of Grade Requirements AGENCY: Agricultural Marketing Service, USDA. ACTION: Interim final rule with request for comments. ----------------------------------------------------------------------- SUMMARY: This interim final rule suspends, for the 1996 season only, the minimum grade requirements (Washington No. 1) currently in effect for fresh shipments of apricots grown in Washington. This change was recommended by the Washington Apricot Marketing Committee (committee), which works with the Department of Agriculture (Department) in administering the marketing order covering apricots grown in designated counties in Washington. This rule will enable handlers to ship more fruit in fresh market channels, taking into consideration the damage caused to Washington apricots by freezing temperatures during the growing season. This change is expected to increase returns to producers and to make more fresh apricots available to consumers. DATES: This interim final rule is effective June 15, 1996. Comments which are received by July 17, 1996, will be considered prior to the issuance of a final rule. ADDRESSES: Interested persons are invited to submit written comments concerning this interim final rule. Comments must be sent in triplicate to the Docket Clerk, Fruit and Vegetable Division, AMS, USDA, Room 2525, South Building, P.O. Box 96456, Washington, DC 20090-6456, Fax: (202) 720-5698. All comments should reference the docket number and the date and page number of this issue of the Federal Register and will be made available for public inspection in the Office of the Docket Clerk during regular business hours. FOR FURTHER INFORMATION CONTACT: Teresa L. Hutchinson, Northwest Marketing Field Office, Fruit and Vegetable Division, AMS, USDA, 1220 SW Third Avenue, Room 369, Portland, OR 97204; telephone: (503) 326- 2724; or Britthany E. Beadle, Marketing Order Administration Branch, Fruit and Vegetable Division, Agricultural Marketing Service, U.S. Department of Agriculture, Room 2523-S, P.O. Box 96456, Washington, DC 20090-6456; telephone: (202) 720-5331. SUPPLEMENTARY INFORMATION: This rule is issued under Marketing Agreement No. 132 and Marketing Order No. 922 [7 CFR Part 922], both as amended, regulating the handling of apricots grown in designated counties in Washington, hereinafter referred to as the ``order.'' The order is authorized by the Agricultural Marketing Agreement Act of 1937, as amended [7 U.S.C. 601-674], hereinafter referred to as the ``act.'' The Department is issuing this rule in conformance with Executive Order 12866. This 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 request a modification of the order or to be exempted therefrom. A handler is afforded the opportunity for [[Page 30496]] 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 to review the Secretary's ruling on the petition, provided an action is filed not later than 20 days after the date of the entry of the ruling. Pursuant to requirements set forth in the Regulatory Flexibility Act (RFA), 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 75 handlers of Washington apricots who are subject to regulation under the order and approximately 400 producers in the regulated area. Small agricultural service firms, which includes handlers of Washington apricots, 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 Washington apricot handlers and producers may be classified as small entities. Section 922.52 of the order authorizes the issuance of grade, size, quality, maturity, container markings, pack, and container regulations for any variety or varieties of apricots grown in any district or districts of the production area. Section 922.53 further authorizes the modification, suspension, or termination of regulations issued under Sec. 922.52. Section 922.55 provides that whenever apricots are regulated pursuant to Secs. 922.52 or 922.53, such apricots must be inspected by the Federal-State Inspection Service, and certified as meeting the applicable requirements of such regulations. Minimum grade, maturity, color, and size requirements for Washington apricots regulated under the order are specified in Sec. 922.321 Apricot Regulation 21 [7 CFR 922.321]. Section 922.321 provides that no handler shall handle any container of apricots unless such apricots grade not less than Washington No. 1, except for shipments subject to exemption under the regulation. In addition, the section provides that the Moorpark variety in open containers must be generally well matured. Also, that section provides that, with the exception of exempt shipments, apricots must be at least reasonably uniform in color, and be at least 1\5/8\ inches in diameter, except for the Blenheim, Blenril, and Tilton varieties which must be at least 1\1/ 4\ inches in diameter. Individual shipments of apricots are exempt from these requirements if sold for home use only, do not exceed 500 pounds net weight, and containers are stamped or marked with the words ``not for resale.'' This rule amends paragraph (a)(1) of Sec. 922.321 by temporarily suspending the minimum grade requirements for fresh shipments of apricots for the 1996 season only. The grade requirements currently specified in Sec. 922.321 will resume April 1, 1997, for 1997 and future seasons. At its May 16, 1996, meeting, the committee unanimously recommended suspending the grade requirements for the 1996 season. The committee requested that this suspension be effective by June 15, the date shipments of the 1996 Washington apricot crop are expected to begin. The committee meets prior to and during each season to consider recommendations for modification, suspension, or termination of the regulatory requirements for Washington apricots which have been issued on a continuing basis. Committee meetings are open to the public and interested persons may express their views at these meetings. The Department reviews committee recommendations and information submitted by the committee and other available information, and determines whether modification, suspension, or termination of the regulatory requirements would tend to effectuate the declared policy of the act. The committee reports that the apricot crop was severely damaged by several freezes last winter and early this spring. The severe weather conditions resulted in a high percentage of damage from russeting, scab spots, and other grade defects making it difficult for apricots to meet the minimum grade requirements of Washington No. 1. The committee estimates that only 2,300 tons of apricots will be shipped fresh during the 1996 season, even with the grade requirements suspended as requested. This amount is 52 percent of last season's fresh shipments of 4,452 tons and 46 percent of the five-year average of 4,965 tons. This rule suspends only the grade requirements specified in Sec. 922.321. Thus, the color and minimum size requirements for all varieties and the well matured requirements for the Moorpark variety will remain unchanged. This rule will enable handlers to ship a larger portion of their crop to the fresh market this season, taking into account the abnormal growing conditions, than they would be allowed if the minimum grade requirements were not suspended. Suspension of the grade requirements for Washington apricots is intended to increase fresh shipments to meet consumer needs and improve returns to producers. It is the Department's view that the impact of this action upon producers and handlers, both large and small, will be beneficial because it will enable handlers to provide apricots consistent with 1996 season growing conditions. Therefore, 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 relevent material presented, the information and recommendation submitted by the committee, and other available information, it is found that suspending the minimum grade requirements, as set forth in this rule, will tend to effectuate the declared policy of the Act. Pursuant to 5 U.S.C. 553, it is also found and determined upon good cause that it is impracticable, unnecessary, and contrary to the public interest to give preliminary notice prior to putting this rule into effect and that good cause exists for not postponing the effective date of this rule until 30 days after publication in the Federal Register because: (1) This rule suspends the current grade requirements for Washington apricots; (2) this rule was unanimously recommended by the committee at an open public meeting and all interested persons had an opportunity to express their views and provide input; (3) Washington apricot handlers are aware of this rule and need no additional time to comply with the relaxed requirements; (4) this rule should be in effect by June 15, 1996, the date 1996 season shipments of the Washington apricot crop are expected to begin, and this action should apply to the entire season's shipments; and (5) this rule provides a 30-day comment period, and any comments received will be considered prior to finalization of this rule. List of Subjects in 7 CFR Part 922 Marketing agreements, Apricots, Reporting and recordkeeping requirements. [[Page 30497]] For the reasons set forth in the preamble, 7 CFR Part 922 is amended as follows: PART 922--APRICOTS GROWN IN DESIGNATED COUNTIES IN WASHINGTON 1. The authority citation for 7 CFR Part 922 continues to read as follows: Authority: 7 U.S.C. 601-674. 2. Section 922.321 is amended by revising paragraph (a)(1) to read as follows: Sec. 922.321 Apricot Regulation 21. (a) * * * (1) Minimum grade and maturity requirements. Such apricots that grade not less than Washington No. 1 and are at least reasonably uniform in color: Provided, That the grade requirement shall not apply to apricots handled from June 15, 1996, through March 31, 1997; Provided further, That such apricots of the Moorpark variety in open containers shall be generally well matured; and * * * * * Dated: June 12, 1996. Sharon Bomer Lauritsen, Deputy Director, Fruit and Vegetable Division. [FR Doc. 96-15350 Filed 6-14-96; 8:45 am] BILLING CODE 3410-02-P