[Federal Register Volume 64, Number 238 (Monday, December 13, 1999)]
[Rules and Regulations]
[Pages 69371-69375]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-32231]
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Rules and Regulations
Federal Register
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Federal Register / Vol. 64, No. 238 / Monday, December 13, 1999 /
Rules and Regulations
[[Page 69371]]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 905
[Docket No. FV99-905-4 FIR]
Oranges, Grapefruit, Tangerines, and Tangelos Grown in Florida;
Modification of Procedures for Limiting the Volume of Small Red
Seedless Grapefruit
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: The Department of Agriculture (Department) is adopting, as a
final rule, without change, the provisions of an interim final rule
modifying the procedures used in limiting the volume of small red
seedless grapefruit prescribed under the marketing order for oranges,
grapefruit, tangerines, and tangelos grown in Florida. The marketing
order is administered locally by the Citrus Administrative Committee
(committee). The changes will help the committee better monitor handler
compliance with any percentage size regulations in effect. This rule
continues the changes in handler reporting requirements on shipments of
size 48 and/or 56 red seedless grapefruit to standardize and assure
continuity of reporting. Provisions on new handlers are also continued
to assure equitable application of the percentage size regulation to
new and established handlers. These modifications are expected to help
the committee better administer the percentage size regulations, when
such regulations are effective.
EFFECTIVE DATE: January 12, 2000.
FOR FURTHER INFORMATION CONTACT: William G. Pimental, Southeast
Marketing Field Office, F&V, AMS, USDA, P.O. Box 2276, Winter Haven,
Florida 33883-2276; telephone: (941) 299-4770, Fax: (941) 299-5169; or
George Kelhart, Technical Advisor, Marketing Order Administration
Branch, F&V, AMS, USDA, room 2522-S, P.O. Box 96456, Washington, DC
20090-6456; telephone: (202) 690-3919, Fax: (202) 720-5698.
Small businesses may request information on complying with this
regulation by contacting Jay Guerber, Marketing Order Administration
Branch, Fruit and Vegetable Programs, AMS, USDA, room 2525-S, P.O. Box
96456, Washington, DC 20090-6456; telephone (202) 720-2491, Fax: (202)
720-5698 or E-mail: Jay.G[email protected].
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement No. 84 and Marketing Order No. 905, both as amended (7 CFR
part 905), regulating the handling of oranges, grapefruit, tangerines,
and tangelos grown in Florida, hereinafter referred to as the
``order.'' The marketing agreement and order are 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 12988, Civil
Justice Reform. This rule is not intended to have retroactive effect,
and 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 the date of the entry of the ruling.
Section 905.52 of the order provides authority to limit shipments
of any grade or size, or both, of any variety of Florida citrus. Such
limitations may restrict the shipment of a portion of a specified grade
or size of a variety.
Section 905.153 of the regulations provides procedures for limiting
the volume of small red seedless grapefruit entering the fresh market.
Under the procedures, the committee may recommend that only a certain
percentage of size 48 (3\9/16\ minimum diameter in inches) and/or size
56 (3\5/16\ minimum diameter in inches) red seedless grapefruit be made
available for shipment into fresh market channels for any week or weeks
during the regulation period. The regulation period is 11 weeks long
and begins the third Monday in September. Under such a limitation, the
quantity of sizes 48 and/or 56 red seedless grapefruit that may be
shipped by a handler during a regulated week is calculated using the
recommended percentage. By taking the recommended weekly percentage
times the average weekly volume of red seedless grapefruit handled by
such handler in the previous five seasons, handlers can calculate the
volume of sizes 48 and/or 56 they may ship in a regulated week.
Provisions also are included in paragraph (a) for handlers with less
than five previous seasons of shipments and new handlers with no record
of shipments. The committee performs the specified calculations when
regulation is established by the Secretary for a given week, and
provides the calculations to each handler.
Section 905.153 contains a variety of provisions designed to
provide handlers with some marketing flexibility. Paragraphs (d) and
(e) of that section provide allowances for overshipments, loans, and
transfers of allotment. These allowances allow handlers the opportunity
to supply their markets while limiting the impact of small sizes on a
weekly basis.
Pursuant to paragraph (d) of Sec. 905.153, during any week for
which the Secretary fixes the percentage of sizes 48 and/or 56 red
seedless grapefruit, any handler can handle an amount of sizes 48 and/
or 56 red seedless grapefruit not to exceed 110
[[Page 69372]]
percent of their allotment for that week. The quantity of overshipments
(the amount shipped in excess of a handler's weekly allotment) is
deducted from the handler's allotment for the following week.
If handlers fail to use their entire allotments in a given week,
the amounts undershipped cannot be carried forward to the following
week. However, pursuant to paragraph (e) of Sec. 905.153, a handler to
whom an allotment has been issued can lend or transfer all or part of
such allotment (excluding the overshipment allowance) to another
handler. In the event of a loan, each party, prior to the completion of
the loan agreement, notifies the committee of the proposed loan and
date of repayment. If a transfer of allotment is desired, each party
promptly notifies the committee so that proper adjustments of the
records can be made. In each case, the committee confirms in writing
all such transactions prior to the following week. Under these
provisions, the committee can act on behalf of handlers wanting to
arrange allotment loans or participate in the transfer of allotment.
The committee computes each handler's allotment by multiplying the
handler's average week by the percentage established by regulation for
that week. The committee notifies each handler prior to that particular
week of the quantity of sizes 48 and 56 red seedless grapefruit such
handler could handle during a particular week, making the necessary
adjustments for overshipments and loan repayments.
This rule continues in effect reporting procedures in paragraphs
(d) and (e) of Sec. 905.153, and the addition of a new paragraph (f) on
new handler participation. The changes were recommended unanimously by
the committee at its meeting on April 6, 1999.
This rule does not establish any volume regulation. A proposed rule
to establish volume regulation during the 1999-2000 season was
published in the Federal Register on August 26, 1999 (64 FR 46603). The
period for the receipt of written comments on that proposal ended
September 10, 1999. Subsequently, an interim final rule adjusting the
proposed percentages as recommended by the committee was published in
the Federal Register on September 17, 1999 (64 FR 50419). Comments were
invited until September 27, 1999, and none was received. An action
finalizing the interim final rule was published November 18, 1999 (64
FR 63159).
The changes continued in effect by this rule are intended to
standardize and foster uniformity of reporting, help the committee
better monitor compliance with any percentage size regulations in
effect, and improve overall administration of the program. The
provisions on ``new handler'' registration are intended to ensure that
the shipment calculations for such handlers are correct and that the
shipment allotments are appropriately applied. According to committee
management, these improvements have worked well.
This rule continues in effect the revisions to paragraph (d) of
Sec. 905.153 requiring handlers to report red seedless grapefruit
shipments to interstate and export markets by day for each regulation
week. The report is required to be completed and received by the
committee no later than 2 p.m. of the business day following the
shipments. The committee previously obtained shipment information from
daily manifest reports from the Florida Department of Agriculture and
Consumer Services' Fruit and Vegetable Division, but the information
needed to be reformatted by the committee for use in checking handler
compliance with the weekly percentage size regulation, and in arranging
loans or transfers of excess allotments among handlers. This had been
costly and time consuming for the committee.
When percentage size regulations were applied last season, most
handlers voluntarily supplied (electronically or by fax) the committee
with daily shipment information on their size 48 and/or 56 size red
seedless grapefruit. This helped the committee expedite the compilation
and dissemination of shipment information on the small-sized red
seedless grapefruit. The more timely information helped the handlers
make marketing plans to service their customers better, and enabled the
committee to verify handler compliance in a more timely and less
burdensome manner.
The information provided by handlers shipping 48 and/or 56 size red
seedless grapefruit is maintained by them as part of their regular
business operations so the burden in supplying this information has
been minimal. Thus, the addition of this reporting requirement to the
procedures in Sec. 905.153(d) merely standardizes the collection of
information which handlers maintain as part of their regular business
operations. The report has ensured that the daily shipment information
received by the committee is in the same format from all handlers
shipping 48 and/or 56 size red seedless grapefruit.
Paragraph (e) of Sec. 905.153 previously specified, among other
things, that each handler party to a transfer or loan of any or all of
their shipping allotment (excluding the overshipment allowance) shall
promptly notify the committee so the proper adjustment of records may
be made. To provide uniformity in reporting and help the committee
confirm such transactions prior to the following week to the handlers
involved, the committee recommended that the notification be made no
later than noon on the Wednesday following the regulation week.
With a precise reporting deadline, the committee has been able to
adjust its records in a more timely manner and more easily confirm the
transactions in writing to the handlers involved prior to the following
week. It also has enabled the committee to do a more effective job when
acting on behalf of handlers in arranging allotment loans or transfers.
Continuation of this change will not be unduly burdensome on handlers
because most had already been filing their reports by the specified
deadline prior to the issuance of the interim final rule.
The committee also recommended precluding sales agents of handlers
from filing weekly cumulative handler reports on transfers or loans for
all of the handlers they represent, rather than reports for each
handler involved in such transactions. The current provisions require
individual reports to be filed and the individual handlers involved are
required to certify that the information on the reports submitted to
the committee is accurate. Thus, no change in Sec. 905.153 is needed to
require sales agents to submit individual handler reports on such
transactions for each of the participating handlers for which they act
as sales agents.
A new paragraph (f) was added to Sec. 905.153 covering new handler
registration. The new paragraph specifies that new handlers without a
shipment history shall register with the committee for their red
seedless grapefruit allotments prior to the regulation period. On a
form provided by the committee, each new handler indicates its name,
address, telephone and fax number, its Florida citrus dealer's license
number, the packinghouse registration number issued by the Florida
Department of Agriculture and Consumer Services' Fruit and Vegetable
Division, and the physical location of the packinghouse where the red
seedless grapefruit will be prepared for market. New handler
registrations have allowed the committee to place the handler on its
[[Page 69373]]
mailing list to assure that the handler receives needed information.
The addition of these registration procedures for new handlers will
assure that these handlers continue to receive the shipment allocations
to which they are entitled during the regulation period, and help the
committee with its handler audits and compliance checks.
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
Chapter 35), the information collection requirements that are contained
in this rule have been previously approved by the Office of Management
and Budget (OMB) and have been assigned OMB No. 0581-0094. Also,
pursuant to requirements set forth in the Regulatory Flexibility Act
(RFA), AMS has considered the economic impact of this action on small
entities. Accordingly, AMS has prepared this final 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 80 grapefruit handlers subject to
regulation under the order and approximately 11,000 growers of citrus
in the regulated area. Small agricultural service firms, which includes
handlers, have been defined by the Small Business Administration (SBA)
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 (13 CFR 121.601).
Based on industry and committee data, the average annual f.o.b.
price for fresh Florida red grapefruit during the 1998-99 season was
around $7.20 per \4/5\ bushel carton, and total fresh shipments for the
1998-99 season are estimated at 14.6 million cartons of red grapefruit.
Approximately 20 percent of all handlers handled 60 percent of Florida
grapefruit shipments. In addition, many of these handlers ship other
citrus fruit and products which are not included in committee data but
would contribute further to handler receipts. Using the average f.o.b.
price, about 80 percent of grapefruit handlers could be considered
small businesses under SBA's definition, and about 20 percent of the
handlers could be considered large businesses. The majority of Florida
grapefruit handlers and growers may be classified as small entities.
Section 905.52 of the order provides authority to limit shipments
of any grade or size, or both, of any variety of Florida citrus. Such
limitations may restrict the shipment of a portion of a specified grade
or size of a variety.
Section 905.153 of the regulations provides procedures for limiting
the volume of small red seedless grapefruit entering the fresh market.
Under the procedures, the committee may recommend that only a certain
percentage of size 48 (3\9/16\ minimum diameter in inches) and/or size
56 (3\5/16\ minimum diameter in inches) red seedless grapefruit be made
available for shipment into fresh market channels for any week or weeks
during the regulation period. The regulation period is 11 weeks long
and begins the third Monday in September. Under such a limitation, the
quantity of sizes 48 and/or 56 red seedless grapefruit that may be
shipped by a handler during a regulated week is calculated using the
recommended percentage. By taking the recommended weekly percentage
times the average weekly volume of red seedless grapefruit handled by
such handler in the previous five seasons, handlers can calculate the
volume of sizes 48 and/or 56 they may ship in a regulated week.
Provisions also are included in paragraph (a) for handlers with less
than five previous seasons of shipments and new handlers with no record
of shipments. The committee staff performs the specified calculations
when regulation is established by the Secretary for a given week, and
provides the calculations to each handler.
Section 905.153 contains a variety of provisions designed to
provide handlers with some marketing flexibility. Paragraphs (d) and
(e) of that section provide allowances for overshipments, loans, and
transfers of allotment. These allowances allow handlers the opportunity
to supply their markets while limiting the impact of small sizes on a
weekly basis.
Pursuant to paragraph (d) of Sec. 905.153, during any week for
which the Secretary fixes the percentage of sizes 48 and/or 56 red
seedless grapefruit, any handler can handle an amount of sizes 48 and/
or 56 red seedless grapefruit not to exceed 110 percent of their
allotment for that week. The quantity of overshipments (the amount
shipped in excess of a handler's weekly allotment) is deducted from the
handler's allotment for the following week.
If handlers fail to use their entire allotments in a given week,
the amounts undershipped cannot be carried forward to the following
week. However, pursuant to paragraph (e) of Sec. 905.153 a handler to
whom an allotment has been issued can lend or transfer all or part of
such allotment (excluding the over shipment allowance) to another
handler. In the event of a loan, each party, prior to the completion of
the loan agreement, notifies the committee of the proposed loan and
date of repayment. If a transfer of allotment is desired, each party
promptly notifies the committee so that proper adjustments of the
records can be made. In each case, the committee confirms in writing
all such transactions prior to the following week. Under these
provisions, the committee can act on behalf of handlers wanting to
arrange allotment loans or participate in the transfer of allotment.
The committee computes each handler's allotment by multiplying the
handler's average week by the percentage established by regulation for
that week. The committee notifies each handler prior to that particular
week of the quantity of sizes 48 and 56 red seedless grapefruit such
handler could handle during a particular week, making the necessary
adjustments for overshipments and loan repayments.
This rule continues in effect the modified reporting procedures in
paragraphs (d) and (e) of Sec. 905.153, and the addition of a new
paragraph (f) on new handler participation. The changes were
recommended unanimously by the committee at its meeting on April 6,
1999.
This rule does not establish any volume regulation. A proposed rule
to establish volume regulation during the 1999-2000 season was
published in the Federal Register on August 26, 1999 (64 FR 46603). The
period for the receipt of written comments on that proposal ended
September 10, 1999. Subsequently, an interim final rule was published
in the Federal Register on September 27, 1999 (64 FR 51888)
establishing adjusted percentages recommended by the committee. The
period for written comments ended on October 27, 1999, and none was
received. An action finalizing the interim final rule was published on
November 18, 1999 (64 FR 63159).
The changes continued by this rule are intended to standardize and
foster uniformity of reporting, help the committee better monitor
compliance with any percentage size regulations in effect, and improve
overall administration of the program. The provisions on ``new
handler'' registration are intended to ensure that new handlers receive
shipment allotments, that the shipment calculations for such handlers
are correct, and that the shipment allotments are appropriately
applied.
[[Page 69374]]
According to committee management, these improvements have worked well
during 1999.
This action continues in effect the revisions to paragraph (d) of
Sec. 905.153 requiring handlers to report red seedless grapefruit
shipments to interstate and export markets by day for each regulation
week. The report is required to be completed and received by the
committee no later than 2 p.m. of the business day following the
shipments. The committee previously obtained shipment information from
daily manifest reports from the Florida Department of Agriculture's
Division of Fruit and Vegetable, but the information needed to be
reformatted by the committee for use in checking handler compliance
with the weekly percentage size regulation, and in arranging loans or
transfers of excess allotment among handlers. This had proven to be
costly and time consuming for the committee.
When percentage size regulations were applied last season, most
handlers voluntarily supplied (electronically or by fax) the committee
daily shipment information on their size 48 and/or 56 size red seedless
grapefruit to help the committee expedite the compilation and
dissemination of shipment information on the small-sized red seedless
grapefruit. The more timely information helped the handlers make
marketing plans, and enabled the committee to verify handler compliance
in a more timely and less burdensome manner.
The information provided by handlers shipping 48 and/or 56 size red
seedless grapefruit is maintained by them as part of their regular
business operations so the burden in supplying this information has
been minimal. Thus, the continuation of this reporting requirement in
the procedures in Sec. 905.153(d) merely standardizes the collection of
information which handlers maintain as part of their regular business
operations.
Paragraph (e) of Sec. 905.153 specifies, among other things, that
each handler party to a transfer or loan of any or all of their
shipping allotment (excluding the over shipment allowance) shall
promptly notify the committee so the proper adjustment of records may
be made. To provide uniformity in reporting and help the committee
confirm such transactions prior to the following week to the handlers
involved, the committee recommended that the notification be made no
later than noon on the Wednesday following the regulation week.
With a precise reporting deadline, the committee has been able to
adjust its records in a more timely manner and more easily confirm the
transactions in writing to the handlers involved prior to the following
week. It also has been able to do a more effective job when acting on
behalf of handlers in arranging allotment loans or transfers. This
change will not be unduly burdensome on handlers because most are
already filing their reports by the specified deadline.
The committee also recommended precluding sales agents of handlers
from filing weekly cumulative handler reports on transfers or loans for
all of the handlers they represent, rather than reports for each
handler involved in such transactions. The current provisions require
individual reports to be filed and the individual handlers involved are
required to certify that the information on the reports submitted to
the committee is accurate. Thus, no change is required to the
procedures in Sec. 905.153 to require sales agents to report
information on an individual handler basis.
Regarding the provisions on new handler registration, a new
paragraph (f) was added to Sec. 905.153. The new paragraph specifies
that new handlers without a shipment history shall register for their
red seedless grapefruit allotments prior to the regulation period. On a
form provided by the committee, each new handler indicates its name,
address, telephone and fax number, its Florida citrus dealer's license
number, the packinghouse registration number issued by the Florida
Department of Agriculture and Consumer Services' Fruit and Vegetable
Division, and the physical location of the packinghouse where the red
seedless grapefruit will be prepared for market.
The addition of these registration procedures for new handlers will
continue to assure that these handlers receive the shipment allocations
to which they are entitled during the regulation period, and help the
committee with its handler audits and compliance checks.
Handlers will be required to submit a form to the committee on
their daily shipments of size 48 and/or 56 red seedless grapefruit, and
new handlers also will have to submit a registration form to ship fruit
pursuant to any allotment percentage established by the Secretary. The
rule will increase the reporting burden on approximately 80 handlers of
red seedless grapefruit who will take about 0.05 of an hour to complete
each report regarding allotment loans or transfers, and shipments. New
handlers without a record of shipments registering with the committee
will take about 0.03 of an hour to complete the ``new handler''
registration form. The information collection requirements contained in
Sec. 905.153 have been approved by the Office of Management and Budget
(OMB) under the provisions of the Paperwork Reduction Act of 1995 (44
U.S.C. Chapter 35) and assigned OMB number 0581-0094.
The committee considers the changes made by this rule the most
viable ways to improve the percentage size volume regulation
procedures.
As with all Federal marketing order programs, reports and forms are
periodically reviewed to reduce information requirements and
duplication by industry and public sectors. The Department has not
identified any relevant Federal rules that duplicate, overlap or
conflict with this proposed rule. However, red seedless grapefruit must
meet the requirements as specified in the U.S. Standards for Grades of
Florida Grapefruit (7 CFR 51.750 through 51.784) issued under the
Agricultural Marketing Act of 1946 (7 U.S.C. 1621 through 1627).
In addition, the committee's meeting was widely publicized
throughout the citrus industry and all interested persons were invited
to attend the meeting and participate in committee deliberations on all
issues. Like all committee meetings, the April 6, 1999, meeting was a
public meeting and all entities, both large and small, were able to
express views on this issue.
A small business guide on complying with fruit, vegetable, and
specialty crop marketing agreements and orders may be viewed at the
following web site: http://www.ams.usda.gov/fv/moab/.html. Any
questions about the compliance guide should be sent to Jay Guerber at
the previously mentioned address in the FOR FURTHER INFORMATION CONTACT
section.
An interim final rule concerning this action was published in the
Federal Register on September 27, 1999. Copies of the rule were mailed
by the Committee's staff to all Committee members and grapefruit
handlers. In addition, the rule was made available through the Internet
by the Office of the Federal Register. That rule provided for a 30-day
comment period which ended October 27, 1999. No comments were received.
After consideration of all relevant material presented, including
the information and recommendations submitted by the committee and
other available information, it is hereby found that finalizing the
interim final rule, without change, as published in the Federal
Register (64 FR 51888, September 27, 1999) will tend to effectuate the
declared policy of the Act.
[[Page 69375]]
List of Subjects in 7 CFR Part 905
Grapefruit, Marketing agreements, Oranges, Reporting and
recordkeeping requirements, Tangelos, Tangerines.
PART 905--ORANGES, GRAPEFRUIT, TANGERINES, AND TANGELOS GROWN IN
FLORIDA
Accordingly, the interim final rule amending 7 CFR part 905 which
was published at 64 FR 51888 on September 27, 1999, is adopted as a
final rule without change.
Dated: December 7, 1999.
Robert C. Keeney,
Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 99-32231 Filed 12-10-99; 8:45 am]
BILLING CODE 3410-02-P