[Federal Register Volume 61, Number 182 (Wednesday, September 18, 1996)]
[Proposed Rules]
[Pages 49078-49080]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-23833]


      
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 Proposed Rules
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
 
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  Federal Register / Vol. 61, No. 182 / Wednesday, September 18, 1996 / 
Proposed Rules  

[[Page 49078]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 906

[Docket No. FV96-906-2PR]


Oranges and Grapefruit Grown in the Lower Rio Grande Valley in 
Texas; Change in Reporting Requirements and Notice of Request for 
Extension and Revision of a Currently Approved Information Collection

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This proposed rule invites comments on a change to the 
reporting requirements currently prescribed under the Texas orange and 
grapefruit marketing order. This document also announces the 
Agricultural Marketing Service's (AMS) intention to request an 
extension for and revision to the currently approved information 
collection requirements issued under the marketing order. The marketing 
order regulates the handling of oranges and grapefruit grown in three 
counties in the Lower Rio Grande Valley in Texas and is administered 
locally by the Texas Valley Citrus Committee (committee). Shipments of 
oranges and grapefruit out of the production area must meet minimum 
standards of grade, size, quality and pack. Such shipments are subject 
to mandatory inspection. This rule would add language in the order's 
rules and regulations to require that all sales of over 400 pounds of 
oranges and grapefruit for resale inside the production area be covered 
by a ``Buyer's Certification'' form. This requirement would ensure that 
handlers are aware of and accept responsibility for complying with the 
order's requirements and that buyers do not intend to transport 
uninspected oranges and grapefruit out of the three-county production 
area.

DATES: Comments must be received by October 18, 1996.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposal. Comments must be sent in triplicate to the 
Docket Clerk, Fruit and Vegetable Division, AMS, USDA, room 2525-S, 
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: Belinda G. Garza, McAllen Marketing 
Field Office, Marketing Order Administration Branch, Fruit and 
Vegetable Division, 1313 E. Hackberry, McAllen, Texas 78501; telephone: 
(210) 682-2833, Fax # (210) 682-5942; or Charles L. Rush, Marketing 
Order Administration Branch, Fruit and Vegetable Division, AMS, USDA, 
room 2522-S, P.O. Box 96456, Washington, DC 20090-6456; telephone: 
(202) 690-3670, Fax # (202) 720-5698. Small businesses may request 
information on compliance with this regulation by contacting: Jay 
Guerber, Marketing Order Administration Branch, Fruit and Vegetable 
Division, AMS, USDA, P.O. Box 96456, room 2523-S, Washington, DC 20090-
6456; telephone: (202) 720-2491, Fax # (202) 720-5698.

SUPPLEMENTARY INFORMATION: This proposal is issued under Marketing 
Agreement and Order No. 906 (7 CFR Part 906), as amended, regulating 
the handling of oranges and grapefruit grown in the Lower Rio Grande 
Valley in Texas, 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 proposal has been reviewed under Executive Order 12988, Civil 
Justice Reform. This rule is not intended to have retroactive effect. 
If adopted, this proposal 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 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 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 15 handlers of oranges and grapefruit who 
are subject to regulation under the order and approximately 2,000 
orange and grapefruit producers in the regulated area. Small 
agricultural service firms, which includes handlers, 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 having annual receipts of less than 
$500,000. The majority of handlers and producers of Texas oranges and 
grapefruit may be classified as small entities. Interested persons are 
invited to submit information on the regulatory and informational 
impacts of this action on small businesses.
    This proposal invites comments on a change to the reporting 
requirements currently prescribed under the Texas orange and grapefruit 
marketing order. This rule would add language in the

[[Page 49079]]

order's rules and regulations to provide for the use of a ``Buyer's 
Certification'' form (Certification Form). The use of this new form was 
unanimously recommended by the committee at a public meeting on May 29, 
1996.
    This proposed rule (1) Would establish a requirement that handlers 
complete a Certification Form on all sales over 400 pounds of oranges 
or grapefruit, or both, destined for resale inside the production area 
to help ensure that such oranges or grapefruit do not leave the 
production area without meeting order requirements, and (2) provides 
notice of a request for extension and revision of a currently approved 
information collection.
    Implementation of the requirement to submit Certification Forms 
would result in a small increase in reporting requirements imposed on 
handlers. The added cost of complying with this requirement would be 
minimal and would be offset by benefits derived from enhanced 
compliance with the order and more complete statistical data beneficial 
to the entire industry. Therefore, the AMS has determined that this 
action would not have a significant economic impact on a substantial 
number of small entities.
    Under the order, Texas orange and grapefruit shipments to fresh 
markets in the United States, Canada, and Mexico are required to be 
inspected and are subject to grade, size, quality, container and pack 
requirements. Exempt from such handling requirements are shipments 
made: (1) Within the production area (Cameron, Hidalgo, and Willacy 
counties in Texas); (2) in individually addressed gift packages which 
are not for resale; (3) under the 400-pound minimum quantity exemption 
provision; and (4) for relief or charity. In addition, fruit shipped to 
approved processors for processing are exempt from handling 
requirements. These handling requirements do not change substantially 
from season to season, and are in effect on a continuing basis subject 
to amendment, modification, or suspension as may be determined by the 
Secretary. Currently, the handling regulations under the order are 
effective from September 1 through June 30 each year.
    Section 906.51 of the order provides authority for the committee, 
with the approval of the Secretary, to require that each handler 
furnish to the committee reports and other information as may be 
necessary for the committee to perform its duties under the marketing 
order.
    The committee recommended the establishment of a requirement that 
handlers of Texas oranges and grapefruit complete a Certification Form 
on all sales of over 400 pounds of oranges or grapefruit or a 
combination of both that are not intended to leave the production area. 
(The order currently provides that 400 pounds of Texas oranges or 
grapefruit or a combination of both not for resale may be shipped per 
day outside the production area without having to meet marketing order 
requirements.) The form would require the following information: (1) 
Names and addresses of the seller and the buyer; (2) description and 
quantity of the oranges or grapefruit sold; and (3) the destination of 
the fruit. In addition, the buyer would certify that fruit that is 
subsequently taken outside the production area for resale will be 
inspected in accordance with the order and its rules and regulations. 
The information compiled from use of this form would also provide the 
committee, its staff, and the industry with valuable statistics on 
fruit sold and marketed within the production area.
    Handling of oranges and grapefruit inside the production area is 
not regulated. While monitoring compliance during the 1995-96 season, 
committee staff became aware of a lack of documentation on fruit 
intended for use within the production area. Such fruit was on occasion 
found outside the production area without having been inspected and 
certified as meeting marketing order requirements. The committee 
recognized the need to make handlers responsible for ensuring that 
sales of their fruit intended for resale inside the production area, 
but subsequently leaving the production area, meet the provisions of 
the order. The Certification Form was developed to help track such 
sales. Currently, documentation on sales to peddlers and cash buyers, 
and other transactions not supported by an inspection certificate or a 
diversion report (used to track shipments for processing, relief, or 
charity), is minimal or non-existent. In the process of conducting its 
compliance program, the committee encountered difficulty in tracking 
movement of such citrus and detecting violations of the order.
    The form would be completed by the seller (handler) in triplicate. 
The buyer would sign the certification statement on the form. One copy 
would be submitted by the handler to the committee within 7 days after 
the sale. One copy would be retained by the handler and the third copy 
would be given to the buyer. The forms would be reviewed by the 
committee's compliance staff as they are received and would be compared 
against handler records and inspection certificates. In addition, the 
form would also provide valuable statistical information on fruit sold 
and marketed for use within the production area. Currently, there is no 
tracking system for local use fruit. Collection of this information 
would fill a void in the committee's statistical database which would 
be used to determine total utilization of fruit and further assist the 
industry in making marketing decisions.
    Throughout the past season, the committee considered possible 
options to monitor shipments of uninspected oranges and grapefruit. It 
was noted that local use fruit is presently not accounted for, which 
leaves a significant void in the committee's database. The committee 
considered, for example, compiling an ``approved peddler'' list, and 
allowing uninspected fruit to be sold only to those appearing on the 
list. This option was determined to be impractical for the industry, as 
such a list would change constantly and could never be accurately 
maintained. Development of the Certification Form was the only option 
believed to be viable. Use of the form would raise awareness of both 
the handlers' and buyers' responsibility to comply with the provisions 
of the marketing order. This option would result in the smallest 
increase in regulatory burden of the options considered, including the 
establishment of additional regulatory requirements, such as inspection 
of all shipments, regardless of destination. Therefore, the committee 
recommended that Sec. 906.151 be amended by designating the existing 
paragraph in this section as (a) and adding a new paragraph (b).
    Completion of the Certification Form at the time of the sale of 
fruit would total 5 minutes per form. The number of respondents is 
estimated to total 50, and the frequency of response would be 2 
responses per week for a total of 30 weeks. The total information 
collection burden will be adjusted accordingly.
    A 60-day comment period is provided to allow interested persons to 
respond to this proposal. All written comments received within the 
comment period will be considered before a final determination is made 
on this matter.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the AMS announces its intention to request an extension 
for and revision to a currently approved information collection for 
Texas oranges and grapefruit.
    Title: Oranges and Grapefruit Grown in the Lower Rio Grande Valley 
in Texas, Marketing Order No. 906.
    OMB Number: 0581-0068.

[[Page 49080]]

    Expiration Date of Approval: June 30, 1997.
    Type of Request: Extension and revision of a currently approved 
information collection.
    Abstract: Marketing order programs provide an opportunity for 
producers of fresh fruits, vegetables and specialty crops, in a 
specified production area, to work together to solve marketing problems 
that cannot be solved individually. Order regulations help ensure 
adequate supplies of high quality product and adequate returns to 
producers. Under the Act, marketing order programs are established if 
favored in referendum among producers. The handling of the commodity is 
regulated. The Secretary of Agriculture is authorized to oversee the 
orders' operations and issue regulations recommended by a committee of 
representatives from each commodity industry.
    The information collection requirements in this request are 
essential to carry out the intent of the Act, to provide the 
respondents the type of service they request, and to administer the 
Texas orange and grapefruit marketing order, which has been operating 
since 1960.
    The Texas orange and grapefruit marketing order authorizes the 
issuance of grade, size, container and pack regulations. Regulatory 
provisions apply to oranges and grapefruit shipped outside of the 
production area, except for those shipments specifically exempt. The 
order also has authority for marketing research and development 
projects, including paid advertising.
    The order, and rules and regulations issued thereunder, authorize 
the committee to require handlers and producers to submit certain 
information. Much of this information is compiled in aggregate and 
provided to the industry to assist in marketing decisions.
    The committee has developed forms as a means for persons to file 
required information with the committee relating to orange and 
grapefruit supplies, shipments, dispositions, and other information 
needed to effectively carry out the purpose of the Act and order. As 
shipments of Texas oranges and grapefruit are normally from September 
through June, these forms are utilized accordingly. A USDA form is used 
to allow producers to vote on amendments to the order. In addition, 
orange and grapefruit producers and handlers who are nominated by their 
peers to serve as representatives on the committee must file nomination 
forms with the Secretary.
    These forms require the minimum information necessary to 
effectively carry out the requirements of the order, and their use is 
necessary to fulfill the intent of the Act as expressed in the order.
    This proposed rule would establish a requirement that each handler 
complete a form provided by the committee whenever over 400 pounds of 
oranges and grapefruit are handled for resale inside the production 
area. This information will help track the flow of oranges and 
grapefruit handled for resale inside the production area where an 
inspection certificate or special purpose diversion form is not needed. 
The information would also be useful to the committee to determine 
those responsible for complying with the provisions of the marketing 
order. Completion of the Certification Form at the time of the sale of 
fruit would total 5 minutes per form. The number of respondents is 
estimated to total 50, and the frequency of response would be 2 
responses per week for a total of 30 weeks. The total information 
collection burden will be adjusted accordingly.
    The information collected will be used only by authorized 
representatives of the USDA, including AMS, Fruit and Vegetable 
Division regional and headquarters staff, and employees of the 
committee. Committee employees will be the primary users of the 
information and AMS employees will be secondary users.
    Estimate of Burden: Public reporting burden for this proposed 
collection of information is estimated to average .156 hours per 
response.
    Respondents: Texas orange and grapefruit producers, handlers, and 
processors.
    Estimated Number of Respondents: 189.
    Estimated Number of Responses per Respondent: 18.95.
    Estimated Total Annual Burden on Respondents: 561 hours.
    Comments are invited on: (1) Whether the proposed collection of 
information is necessary for the functioning of the Texas orange and 
grapefruit marketing order and the Department's oversight of the 
program; (2) the accuracy of the collection burden estimate including 
the validity of the methodology and assumptions used in estimating the 
burden on respondents; (3) ways to enhance the quality, utility, and 
clarity of the information requested; and (4) ways to minimize the 
burden of the collection, including through the use of automated or 
electronic technologies.
    Comments must be received by November 18, 1996. Comments should 
reference OMB No. 0581-0068 and the Texas Orange and Grapefruit 
Marketing Order No. 906, and be submitted to Belinda G. Garza at the 
above address. All comments received will be available for public 
inspection during regular business hours at the same address.
    All responses to this notice will be summarized and included in the 
request for OMB approval. All comments will also become a matter of 
public record.

List of Subjects in 7 CFR Part 906

    Grapefruit, Marketing agreements, 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. In Sec. 906.151 the existing text is designated as paragraph (a) 
and a new paragraph (b) is added to read as follows:


Sec. 906.151  Reports.

* * * * *
    (b) Each handler who sells over 400 pounds of oranges or grapefruit 
or a combination of both for resale inside the production area shall, 
for each transaction, report to the committee on a form approved by it 
the following information:
    (1) Name and address of seller;
    (2) Name and address of buyer;
    (3) Description and quantity of oranges or grapefruit sold;
    (4) Destination of fruit;
    (5) A statement that the buyer certifies that fruit that is 
subsequently taken outside the production area for resale will be 
inspected; and
    (6) Such other pertinent information as the committee may require.
    The handler shall prepare the report in triplicate. The buyer shall 
sign the certification statement. The pink copy shall be submitted to 
the committee within 7 days. The green copy shall be retained by the 
handler and the blue copy shall be given to the buyer. Such form shall 
be reviewed by the committee staff and the information compiled for the 
committee's use.

    Dated: September 10, 1996.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 96-23833 Filed 9-17-96; 8:45 am]
BILLING CODE 3410-02-P