[Federal Register Volume 62, Number 107 (Wednesday, June 4, 1997)]
[Proposed Rules]
[Pages 30468-30469]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-14478]



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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 918

[Docket No. FV-97-918-1PR]


Fresh Peaches Grown in Georgia; Proposed Termination of Marketing 
Order No. 918

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This proposal invites comments on the termination of the 
Federal marketing order regulating the handling of fresh peaches grown 
in Georgia (order) and the rules and regulations issued thereunder. The 
order does not reflect current industry structure and operating 
procedures and there is no industry support for reactivating the order. 
Therefore, there is no need to continue this order.

DATES: Comments must be received by July 7, 1997.

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: William G. Pimental, Southeast 
Marketing Field Office, AMS, USDA, P.O. Box 2276, Winter Haven, Florida 
33883-2276; telephone: (941) 299-4770, Fax: (941) 299-5169; or Caroline 
Thorpe, Marketing Order Administration Branch, F&V, AMS, USDA, room 
2522-S, P.O. Box 96456, Washington, DC 20090-6456; telephone: (202) 
720-8139, 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 governed by provisions of 
section 608(16)(A) of the Agricultural Marketing Agreement Act of 1937, 
as amended (7 U.S.C. 601-674), hereinafter referred to as the Act and 
Sec. 918.81 of the order.
    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. 
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.
    This proposed rule would terminate the order regulating the 
handling of peaches grown in Georgia. Sections 918.81 and 918.82 of the 
order contain the authority and procedures for termination.
    The order was initially established in 1942 to help the industry 
solve specific marketing problems and maintain orderly marketing 
conditions. It was the responsibility of the Peach Industry Committee 
(committee), the agency established for local administration of the 
marketing order, to periodically investigate and assemble data on the 
growing, harvesting, shipping, and marketing conditions of Georgia 
peaches. The committee tried to achieve orderly marketing and improve 
acceptance of Georgia peaches through the establishment of minimum 
size, maturity and quality requirements.
    The Georgia peach industry has not operated under the marketing 
order for four years. The order and all of its accompanying rules and 
regulations were suspended March 1, 1993, for two years (58 FR 8209). 
At the request of the industry, the Department extended the suspension 
for two more years (60 FR 17633). Regulations have not been applied 
under the order since 1992, and no committee has been appointed since 
then. The only regulations the industry is using are for research, 
promotion, and advertising. This is handled locally by the Georgia 
Commodity Commission through a State program.
    In 1942, when the marketing order was issued, there were over 300 
growers of Georgia peaches. Currently, there are approximately 20 peach 
growers.
    The Department contacted many current industry members with respect 
to the need for reinstating the marketing order. Virtually all the 
individuals corresponding with the Department stated they were not 
interested in reestablishing the order. There was a peach industry 
meeting held on February 6, 1997, in Byron, Georgia where the marketing 
order was a topic of discussion. There was no support from the 
attendees for reactivating or amending the order.
    There have been changes in industry structure and operating 
procedures since the order was last amended. Making the marketing order 
reflect these changes could require further amendments. The steps 
necessary to amend and reactivate the existing order would be similar 
to what would be required to establish a new order. The need for a new 
or amended marketing order would have to be justified and supported by 
a large majority of Georgia peach growers. This would require a public 
hearing and a grower referendum. There is no determinable industry 
support for a marketing order. Thus, there is little justification to 
continue the current order.
    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. Accordingly, AMS has 
prepared this regulatory flexibility analysis.
    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 8 handlers of Georgia peaches who would be 
subject to regulation under the marketing order and approximately 20 
peach growers in the regulated area. 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 having annual receipts of 
less than

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$500,000. The majority of the Georgia peach growers and handlers may be 
classified as small entities.
    This proposed rule would terminate the order regulating the 
handling of peaches grown in Georgia. The order and its accompanying 
rules and regulations have been suspended since March 1, 1993. No 
regulations have been implemented since the 1990-91 season, and there 
is no indication that such regulations will again be needed.
    The industry has been operating without a marketing order since its 
suspension. Reestablishing the order would mean additional cost to the 
industry stemming from assessments to maintain the order and any 
associated costs generated by regulation. By not reinstating the 
marketing order, the industry benefits from avoiding these costs. 
Because the industry has been operating without an order for four 
years, the termination of the order would have no noticeable effect on 
either small or large operations.
    The Department attempted to solicit as much industry input on this 
decision as possible. The Department sent a letter to current industry 
members it was able to identify seeking comments on the need for 
reinstating the marketing order. There was a peach industry meeting 
held on February 6, 1997, in Byron, Georgia where the marketing order 
was a topic of discussion. In addition, this action provides the 
opportunity for all interested persons to comment on this proposal.
    The Department believes that conducting a termination referendum 
would merely reaffirm the Georgia peach industry's continued lack of 
interest in reactivating the marketing order and that conducting such a 
referendum would be wasteful of Departmental and public resources.
    Therefore, pursuant to section 608c(16)(A) of the Act and 
Sec. 918.81 of the order, the Department is considering the termination 
of Marketing Order No. 918, covering peaches grown in Georgia. If the 
Secretary decides to terminate the order, trustees would be appointed 
to continue in the capacity of concluding and liquidating the affairs 
of the former committee.
    Section 608c(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 notified of this proposed termination on April 25, 
1997.
    A 30-day comment period is provided to allow interested persons to 
respond to this proposal. All written comments timely received will be 
considered before a final determination is made on this matter.

List of Subjects in 7 CFR Part 918

    Marketing agreements, Peaches, Reporting and recordkeeping 
requirements.

PART 918--[REMOVED]

    For the reasons set forth in the preamble, and under authority of 7 
U.S.C. 601-674, 7 CFR part 918 is proposed to be removed.

    Dated: May 29, 1997.
Michael V. Dunn,
Assistant Secretary, Marketing and Regulatory Programs.
[FR Doc. 97-14478 Filed 6-3-97; 8:45 am]
BILLING CODE 3410-02-P