[Federal Register Volume 65, Number 34 (Friday, February 18, 2000)]
[Proposed Rules]
[Pages 8313-8318]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-3874]


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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. 65, No. 34 / Friday, February 18, 2000 / 
Proposed Rules  

[[Page 8313]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 928

[Docket No. FV00-928-1 PR]


Papayas Grown in Hawaii; Removal of Suspension Regarding Grade, 
Inspection, and Related Reporting Requirements and Notice of Request 
for Revision of a Currently Approved Information Collection

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: This rule invites comments on removing the suspension of 
grade, inspection, inspection waiver procedure, and related exempt 
shipment reporting requirements under the marketing order regulating 
papayas grown in Hawaii. These requirements were suspended in July of 
1994 because the industry was exploring alternative methods of quality 
control to reduce costs. The alternative methods have not been as 
successful as the industry had hoped. This rule also announces the 
Agricultural Marketing Service's (AMS) intention to request a revision 
to the currently approved information collection requirements issued 
under the marketing order. This action is expected to facilitate the 
shipment of satisfactory quality papayas and program compliance.

DATES: Comments must be received by April 18, 2000.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposal. Comments must be sent to the Docket Clerk, 
Fruit and Vegetable Programs, AMS, USDA, room 2525-S, P.O. Box 96456, 
Washington, DC 20090-6456; Fax: (202) 720-5698; or E-mail: 
[email protected]. 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: Terry Vawter, Marketing Specialist, 
California Marketing Field Office, Marketing Order Administration 
Branch, Fruit and Vegetable Programs, AMS, USDA, 2202 Monterey Street, 
suite 102B, Fresno, California 93721; telephone: (559) 487-5901, Fax: 
(559) 487-5906; or George Kelhart, Technical Advisor, 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.
    Small businesses may request information on compliance 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: [email protected].

SUPPLEMENTARY INFORMATION: This proposal is issued under Marketing 
Agreement No. 155 and Marketing Order No. 928, both as amended (7 CFR 
part 928), regulating the handling of papayas grown in Hawaii, 
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 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 the date of the entry of the ruling.
    Pursuant to a recommendation of the Papaya Administrative Committee 
(committee or PAC), this proposal invites comments on the removal of 
the suspension of three sections of the order's rules and regulations 
regarding grade and inspection (Sec. 928.313), maturity shipment 
exemptions (Sec. 928.152), and inspection waiver procedures 
(Sec. 928.150). The proposal also would amend Sec. 928.160 regarding 
reporting requirements to require handlers to add the inspection 
certificate number on PAC Form 1, Papaya Utilization. The removal of 
the suspension of the grade requirements in Sec. 928.313 would require 
handlers of papayas to adhere to the minimum quality requirements that 
were in effect prior to their suspension on July 1, 1994, except that a 
5 percent tolerance for immature papayas in Hawaii No. 1 would be 
removed, as recommended by the committee. An interim final rule 
implementing these suspensions was published in the Federal Register on 
July 27, 1994 (59 FR 38102). A final rule finalizing the interim final 
rule was published in the Federal Register on October 18, 1994, (59 FR 
52409).
    Removal of the suspension on minimum quality requirements would 
require handlers to obtain inspection through the Federal or Federal-
State Inspection Service (inspection service) prior to shipment. 
Removal of the suspension of the maturity exemption and related 
reporting requirements in Sec. 928.152 would require handlers 
interested in becoming approved handlers of immature papayas to apply 
to the committee for approval, and to report handling of immature 
papayas. Immature papayas are used in a popular dish called green 
papaya salad and as a vegetable substitute in recipes. In addition, 
amendment of Sec. 928.160 would require handlers to include the number 
of the inspection certificate issued by the inspection service on each

[[Page 8314]]

PAC Form 1, Utilization Report, filed with the committee. Finally, 
removal of the suspension of the inspection waiver procedures in 
Sec. 928.150 would allow handlers to ship papayas without inspection 
under certain conditions when it is not practicable for the inspection 
service to provide such inspection.
    This proposal was recommended by the committee at its meeting on 
February 18, 1999, by a vote of seven in favor, two opposed, and one 
abstention. The two dissenters believed that the cost of mandatory 
inspection continues to outweigh its benefits to the industry and that 
there are other less expensive methods of achieving quality control, 
and that voluntary quality control should be continued. Those in favor 
believed that voluntary controls have not been effective, and that 
mandatory controls were needed to ensure that buyers receive the 
quality they desire and help the industry compete more effectively in 
the marketplace.
    Section 928.52 of the papaya marketing order authorizes the 
establishment of grade, size, quality, maturity, and pack and container 
regulations for shipments of papayas. Section 928.53 allows for the 
modification, suspension, or termination of such regulations when 
warranted. Section 928.55 provides that whenever papayas are regulated 
pursuant to Secs. 928.52 or 928.53, such papayas must be inspected by 
the inspection service and certified as meeting the applicable 
requirements. The cost of inspection and certification is borne by 
handlers. Section 928.54 authorizes regulation exemptions when shipping 
papayas for commercial processing, relief agencies, or charitable 
institutions. In addition, the Secretary may relieve from any or all 
requirements under or established pursuant to Secs. 928.41, 928.52, 
928.53, and 928.55, the handling of papayas in such minimum quantities, 
in such types of shipments, or for such specified purposes (including 
shipments to facilitate the conduct of marketing research and 
development projects established pursuant to Sec. 928.45) as the 
committee, with the approval of the Secretary, may prescribe. Section 
928.60 of the papaya marketing order authorizes handler reporting 
requirements.
    In 1994, Secs. 928.150, 928.152, and 928.313 of the order's rules 
and regulations were suspended. Section 928.313 established minimum 
grade requirements for shipments of papayas prior to its suspension. 
This section required that papayas grade at least Hawaii No. 1, except 
that not more than 5 percent of the fruit may be immature. Also, the 
weight requirements specified in the Hawaiian grade standards did not 
apply. This proposed rule would remove the suspension of these 
regulations with some changes. First, paragraph (a) of Sec. 928.313 
would be amended to remove the 5 percent tolerance for immature fruit. 
The committee believes that the quality of papayas shipped needs to 
improve for the industry to regain buyer confidence and that removal of 
that tolerance would improve the quality shipped into the fresh market. 
Second, paragraph (b) of that section would be amended to correct the 
information regarding the name, address, and telephone number of the 
Department contact to obtain copies of the Hawaii papaya quality 
standards which are incorporated by reference. The standards for 
Hawaii-grown papaya are dated August 6, 1990, and replace standards 
dated May 29, 1981, previously incorporated.
    As a result of removing the suspension of the grade regulations 
issued pursuant to Sec. 928.52, mandatory inspection would also be 
required, except where specifically exempted.
    Prior to its suspension, Sec. 928.152 of the order's rules and 
regulations defined immature papayas and established the procedures for 
handling immature papayas exempt from regulation. This section also 
required handlers to apply to the PAC to become approved handlers of 
immature papayas and report the handling of immature papayas. This rule 
would remove the suspension of these regulations in their entirety, 
thus affording approved handlers the opportunity to handle immature 
papayas, exempt from minimum grade, size, quality, and maturity 
regulations. PAC Form 7 (Application to be an Approved Handler of 
Immature Papayas) and PAC Form 7(c) (Maturity Exemption Report) would 
also be reinstated so the committee could approve handlers of immature 
papayas and such handlers could report their handling of immature 
papayas. Handlers pay assessments on such shipments.
    Section 928.150 established the procedures for granting inspection 
waivers under certain conditions prior to its suspension. This rule 
would remove the suspension of Sec. 928.150, giving the inspection 
service the flexibility to issue inspection waivers to handlers when it 
is impracticable to provide inspection services. For example, a handler 
might be in a remote location and the inspection service might not be 
able to provide an inspector to perform the inspection at the time and 
place requested.
    Section 928.160 was amended in 1994 as a result of the suspension 
of Secs. 928.150, 928.152, and 928.313. Because the quality 
requirements, and, thus, the requirement for mandatory inspection was 
suspended, Sec. 928.160 was amended to remove the requirement to 
include the inspection certificate number on the PAC Form 1, 
Utilization Report. Since the quality and inspection requirements would 
be reinstituted, a change would be necessary in Sec. 928.160 to require 
the inspection certificate number to be reported by the handler on the 
PAC Form 1. PAC Form 1 would also be revised to include this additional 
information collection.
    Minimum grade and inspection requirements were initially 
established to assure that only acceptable quality fruit entered fresh 
market channels, thereby ensuring consumer satisfaction, increasing 
sales, and improving returns to papaya producers. The reporting 
requirements were established to authorize the committee to allow 
approved handlers to handle immature papayas, and to aid the committee 
in assessment billings and program compliance.
    In committee discussions on the suspension of grade, inspection, 
and reporting requirements in 1994, members who supported the 
suspension advised that the papaya industry was committed to 
instituting alternative quality assurance procedures in the absence of 
mandatory inspection. This was to be achieved by handlers providing 
financial incentives to producers to harvest and deliver only high 
quality fruit. Such a program was to be arranged with handlers by the 
newly-formed producers' bargaining cooperative. It was anticipated that 
this program would provide incentives for growers to deliver high-
quality fruit to handlers. However, the producer's bargaining 
cooperative was not as successful as hoped in implementing this 
program. To date, the industry has not instituted any effective 
alternative means of quality control. As a result, the overall quality 
of papayas shipped from Hawaii has declined and the industry has lost 
market share.
    Most committee members also believed that the elimination of 
inspection requirements would increase producer returns because 
handlers would pass on to producers the savings they realized when 
inspection costs were eliminated. This has happened to a limited 
extent. Finally, the committee hoped that buyers of fresh papayas would 
encourage handlers to continue to ship high-quality fruit by paying 
premium prices for higher-quality fruit.

[[Page 8315]]

As handlers became more aware of the price differentials between 
various quality levels, the committee believed that competition among 
handlers would ensure shipments of good quality fruit. This has not 
occurred like the committee had hoped.
    At the time the suspension was recommended, the industry was 
suffering from an infestation of Papaya Ringspot Virus (PRSV), a 
debilitating disease which attacks papaya trees, eventually killing 
them. Production from the Island of Hawaii, the primary growing region, 
declined substantially, and the papayas produced from those trees were 
of lower quality.
    Since 1994, the committee has reported deteriorating wholesale 
buyer and consumer confidence with Hawaiian papayas, resulting in lost 
market share. The condition of poor quality papayas often deteriorates 
during shipment, frequently requiring buyers to discard some fruit and 
repack the rest. This has resulted in financial losses for some buyers, 
decreased buyer confidence, and reduced market opportunities for 
handlers of Hawaii papayas. As a result, competing supplies from the 
Philippines, Brazil, and Mexico have made inroads into existing Hawaii 
papaya markets.
    This is of great concern to the committee, especially because the 
domestic production from two PRSV-resistant papaya varieties is 
increasing significantly, and production is expected to continue 
growing. The committee would like to regain the confidence of buyers by 
shipping high-quality Hawaii papayas. It believes that mandatory 
quality control is needed to ensure buyers the quality they prefer. 
Removing the suspension of the grade, inspection, and reporting 
requirements in place prior to July 1, 1994, should help the industry 
achieve its goals and compete more effectively in the marketplace.
    During its deliberations on the removal of the suspension of grade, 
inspection, and reporting requirements on February 18, 1999, the 
committee discussed the current state of the industry and what actions 
the committee could take to enhance the quality of shipments, improve 
grower and handler returns, increase wholesale buyer and consumer 
confidence, and regain lost market share. The committee decided that to 
successfully market the increasing production from the PRSV-resistant 
papaya varieties, the industry must reestablish a quality image for 
Hawaii papayas among buyers and consumers. It would be 
counterproductive, they noted, to utilize assessment dollars promoting 
a product which was not of acceptable quality.
    In addition, the committee noted that reinstituting mandatory 
inspection would augment information available to the committee on 
assessments owed by handlers. Once inspections begin, a copy of each 
inspection certificate would be provided to the committee staff by the 
inspection service. This third-party information would permit the 
committee staff to have accurate and timely data upon which to bill 
each handler for papayas handled. Currently, the committee staff 
utilizes information gathered from transshippers (air freight and 
shipping companies) to augment and confirm information provided by 
handlers' reports for assessment collection compliance purposes under 
Sec. 928.31(n). This information is obtained at a significant cost of 
committee time and resources. While information from transshippers 
would continue to be used as a random check, data provided from the 
inspection certificates would be the primary source of third-party 
information for assessment billings by the committee staff.
    Inspection costs on handlers would result from this action. 
Inspection costs incurred would total $24.24 per hour for on site 
inspections and mileage travel costs of 37 cents a mile round-trip from 
the office to the processing plant or handler's premises. For a trip 
less than 10 minutes or 7 miles, no travel time cost is charged, just 
the mileage cost. For a trip taking 10 or more minutes, or covering 7 
or more miles, the travel time cost is based on the $24.24 hourly rate.
    The committee members who opposed the recommendation believe that 
the cost of inspection would be passed on to producers, lowering 
overall producer returns, and that the benefits of mandatory quality 
control would not outweigh the costs. In addition, they believed that 
voluntary quality control should be given more time to work. However, 
most committee members favored the recommendation, as they believe the 
alternatives attempted have not been successful, and that prompt action 
is imperative to assure the long-term viability of the Hawaii papaya 
industry.
    The committee's recommendation resulted from the efforts of a task 
force assigned by the committee chairman in 1998. The task force 
reviewed the current marketing and quality conditions affecting the 
Hawaii papaya industry for several months, and urged the committee to 
consider removing the suspension of quality control-related 
requirements.
    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 initial 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 400 producers of papayas in the production 
area and approximately 60 handlers subject to regulation under the 
marketing order. Small agricultural producers have been defined by the 
Small Business Administration (13 CFR 121.601) as those having annual 
receipts less than $500,000, and small agricultural service firms are 
defined as those whose annual receipts are less than $5,000,000.
    Based on a reported average f.o.b. price of $1.30 per pound of 
papayas, a handler would have to ship in excess of 3.85 million pounds 
of papayas to have annual receipts of $5,000,000. Last year, two 
handlers each shipped in excess of 3.85 million pounds of papayas, and, 
therefore, could be considered large businesses. The remaining handlers 
could be considered small businesses under SBA's definition.
    Based on a reported average grower price of $0.45 per pound and 
industry shipments of 36 million pounds, total grower revenues would be 
$16.2 million. Average grower revenue would, thus, be $40,500. Based on 
the foregoing, the majority of handlers and producers of papayas may be 
classified as small entities.
    This proposal would remove the suspension of grade, inspection, and 
related reporting requirements under the order's rules and regulations. 
As a result of removing the suspension, Secs. 928.150, 928.152, and 
928.313 would be reinstated; and Sec. 928.160 would be amended to 
include the requirement that inspection certificate numbers be added to 
the utilization reports filed by handlers. Section 928.313 would also 
be amended to remove the 5 percent tolerance for immature papayas since 
the committee believes that the quality of papayas shipped into fresh 
market channels must be improved dramatically. Section 928.313 would 
also be amended to correct the name and address of Department 
references

[[Page 8316]]

for obtaining copies of the Hawaii papaya quality standards which are 
incorporated by reference. References to Department contacts are 
outdated, as is the mailing address listed in that section. The quality 
standards for Hawaii-grown papayas have been revised as of August 6, 
1990, and would replace the standards dated May 29, 1981, currently 
incorporated by reference.
    During its deliberations, the committee discussed the current state 
of the industry with the advent of the two PRSV-resistant papaya 
varieties. Production is increasing and overall production levels of 
Hawaii papayas are expected to reach pre-1994 levels by the 2001 crop 
year, and then continue growing. Such increasing production could 
reduce handler and producer returns if the quality of papayas shipped 
is not improved.
    Since the suspension of the grade and inspection requirements in 
1994, the quality of Hawaii papayas in the marketplace has been 
deteriorating. The condition of poor quality fruit has often 
deteriorated during shipment, requiring buyers to discard some fruit 
and repack the remaining fruit. This has resulted in financial losses 
for some buyers and caused decreased buyer confidence in Hawaii papaya 
quality, resulting in reduced market share.
    With the new varieties, the industry is now in a position to 
provide ample supplies of good quality fruit, and restore wholesale 
buyer and consumer confidence in Hawaii papayas. Ample supplies of good 
quality fruit would allow the industry to regain its market share, 
thus, improving returns to handlers and producers.
    The committee discussed continuing the suspension as an alternative 
to this change. However, the committee believes that removing the 
suspension of the grade, inspection, and reporting requirements would 
benefit producers and handlers by enhancing the market quality of 
papayas grown in Hawaii. The committee estimated that the increased 
cost of inspection would be offset by the increased market value of the 
inspected papayas. Inspection costs incurred would total $24.24 per 
hour for on site inspections and mileage travel costs of 37 cents a 
mile round-trip from the office to the processing plant or handler's 
premises. For a trip of less than 10 minutes or 7 miles, no travel time 
cost is charged, just the mileage cost. For a trip taking 10 or more 
minutes, or covering 7 or more miles, the travel time cost is based on 
the $24.24 hourly rate. The majority of committee members agreed that 
removing the suspension of the grade, inspection, and reporting 
requirements is in the long-term best interests of the industry. 
Improved quality of Hawaii papayas is expected to result in increased 
consumer satisfaction and repeat purchases, thereby improving handler 
and producer returns. The increased handling costs due to mandatory 
inspection is expected to be offset by the aforementioned benefits. In 
addition, greater information collection authority may result in 
enhanced assessment collections, permitting the committee to utilize 
more funds to promote a larger and higher-quality crop, if they deem it 
appropriate.
    This action would impose additional reporting requirements on an 
estimated five papaya handlers by requiring handlers to file PAC Form 
7, the Application to be an Approved Handler of Immature Papayas, and 
PAC Form 7(c), Maturity Exemption Report. It would also require 
including the inspection certificate number on PAC Form 1. PAC Form 7 
is estimated to take 15 minutes to complete, and PAC Form 7(c) is 
estimated to take less than 10 minutes to complete. There is no 
additional measurable reporting burden estimated for PAC Form 1. In 
all, requiring both forms would result in an estimated additional 
reporting burden to the previously-mentioned five handlers of 9.25 
annual hours. The current burden is approximately 1,000 hours. The 
benefits of the additional reporting requirements are expected to 
outweigh the costs. Handlers would be able to utilize exemptions to the 
grade and inspection requirements, and the committee would have 
additional information to aid in assessment collections and program 
compliance.
    As with all Federal marketing order programs, reports and forms are 
periodically reviewed to reduce information requirements and 
duplication by industry and public sector agencies.
    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 are being submitted to the Office of Management and Budget 
(OMB) for approval. This rule would not become effective until this 
additional information collection is approved by the OMB. In addition, 
the Department has not identified any relevant Federal rules that 
duplicate, overlap, or conflict with this proposed rule.
    In addition, the committee's meeting was widely publicized 
throughout the papaya industry and all interested persons were 
encouraged to attend the meeting and participate in committee 
deliberations on all issues. Like all committee meetings, the February 
18, 1999, meeting was a public meeting and all entities, both large and 
small, were encouraged to express views on this issue. The committee 
itself is comprised of 13 members, of which nine are producers and 
three are handlers. The committee also includes a public member who 
does not represent an agricultural interest nor have a financial 
interest in papayas. Finally, interested persons are invited to submit 
information on the regulatory and informational impacts of this action 
on small businesses.
    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.
    A 60-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.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), this notice announces AMS'' intention to request a 
revision to a currently approved information collection for Papayas 
Grown in Hawaii, Marketing Order No. 928.
    Title: Papayas Grown in Hawaii, Marketing Order No. 928.
    OMB Number: 0581-0102.
    Expiration Date of Approval: November 30, 2000.
    Type of Request: 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, industries enter into marketing order 
programs. The Secretary of Agriculture is authorized to oversee the 
order's operations and issue regulations recommended by a committee of 
representatives from each commodity industry.
    The Hawaii papaya marketing order program, which has been in 
operation since 1971, authorizes the issuance of grade, size, maturity 
regulations,

[[Page 8317]]

inspection requirements, and marketing and production research, 
including paid advertising. Regulatory provisions apply to papayas 
shipped within and out of the area of production to any market, except 
those specifically exempted by the marketing order.
    The order, and rules and regulations issued thereunder, authorize 
the committee, the agency responsible for local administration of the 
order, to require handlers and growers to submit certain information. 
Much of this information is compiled in aggregate and provided to the 
industry to assist in marketing decisions. 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 Hawaii papaya marketing order program.
    The committee has developed forms as a convenience to persons who 
are required to file information with the committee that is needed to 
carry out the purposes of the Act and the order. 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, and the rules and 
regulations issued thereunder. Papayas may be shipped year-round and 
these forms are utilized accordingly.
    The information collected is used only by authorized 
representatives of the USDA, including AMS, Fruit and Vegetable Program 
regional and headquarters staff, and authorized employees of the 
committee. Authorized committee employees and the industry are the 
primary users of the information and AMS is the secondary user.
    This proposed collection consists of the requirement for handlers 
to provide information on PAC Forms 7 and 7(c) for their application to 
become an approved handler of immature papayas and on their handling of 
immature papayas. Shipments of immature papayas for special markets are 
exempt from certain requirements under the order. A conforming change 
to the PAC Form 1, the papaya utilization report, would require the 
addition of the inspection certificate number on the form. Use of these 
forms is authorized under Secs. 928.152 and 928.160 of the order. Form 
7 would be filed once annually and Form 7(c) would be filed 
approximately 10 times per year by each of the estimated five reporting 
handlers. The estimated increase in burden hours is 1.25 hours for PAC 
Form 7 and 8 hours for PAC Form 7(c), bringing the total annual hours 
added to the current response burden to 9.25. The current burden is 
approximately 1,000 hours. There would be no measurable increase in 
burden hours resulting from including the number of the inspection 
certificate on PAC Form 1.
    The committee recommended reinstating the reporting requirement in 
conjunction with removing the suspension of the grade and inspection 
requirements. With information provided by handlers, the committee 
would be able to approve handlers' requests to handle immature papayas 
exempt from regulation and to track such handling of immature papayas. 
In addition, by adding the inspection certificate number to the PAC 
Form 1, the committee will have accurate and timely data with which to 
bill handlers for assessments. Such revisions to the information 
collection authority would enhance program administration and improve 
information available to the committee for assessment billings.
    The proposed revision to the currently approved information 
requirements issued under the order is as follows:
    Estimate of Burden``: Public reporting burden for PAC Form 7 of 
this collection of information is estimated to average 15 minutes per 
response.
    Respondents: Handlers of papayas grown in the production area of 
Hawaii.
    Estimated Number of Respondents: 5.
    Estimated Number of Responses per Respondent: 1.
    Estimated Total Annual Burden on Respondents: 1.25 hours.
    Estimate of Burden: Public reporting burden for PAC Form 7(c) of 
this collection of information is estimated to average 9.60 minutes per 
response.
    Respondents: Handlers of papayas grown in the production area of 
Hawaii.
    Estimated Number of Respondents: 5.
    Estimated Number of Responses per Respondent: 10.
    Estimated Total Annual Burden on Respondents: 8.00 hours.
    Comments are invited on: (1) Whether the proposed collection of 
information is necessary for the functioning of the Hawaii papaya 
marketing order program and USDA's oversight of that program; (2) the 
accuracy of the collection burden estimate and 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, 
including use of the collection of information on those who are to 
respond, including the use of appropriate automated, electronic, 
mechanical, or other technological collection techniques or other forms 
of information technology.
    Comments should reference OMB No. 0581-0102 and Hawaii Papaya 
Marketing Order No. 928, and be sent to the USDA in care of the docket 
clerk at the address referenced above. All comments received will be 
available for public inspection in the Office of the Docket Clerk 
during regular USDA business hours at the same address.
    All responses to this notice will be summarized and included in the 
request for OMB approval. All comments also will become a matter of the 
public record.
    A 60-day comment period is provided to allow interested persons to 
respond to this proposal.

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 
proposed to be 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. The suspensions of Secs. 928.150 and 928.152 are removed.
    3. In Sec. 928.160, paragraph (a)(1) is revised to read as follows:


Sec. 928.160  Utilization reports.

    (a) * * *
    (1) Quantity of papayas handled subject to assessments and 
regulations including the date, destination, and inspection certificate 
number of each shipment;
* * * * *
    3. The suspension of Sec. 928.313 is removed and the section is 
revised to read as follows:


Sec. 928.313  Hawaiian Papaya Regulation 13.

    (a) No handler shall ship any container of papayas to any 
destination (except immature papayas handled pursuant to Sec. 928.152) 
unless such papayas grade at least Hawaii No. 1: Provided, That the 
weight requirements specified in this grade shall not apply to such 
shipments.
    (b) ``Hawaii No. 1'' cited in this section is specified in the 
Hawaii Department of Agriculture Standards for Fruits and Vegetables 
(Title 4, Subtitle 4, Chapter 41, Subchapter 7, Sec. 4-41-52) (8/6/90). 
Copies of the grade specifications are available from the Chief, 
Marketing Order Administration Branch, F&V, AMS, USDA, Washington, DC 
20250; and they are also available for inspection at the Office of the

[[Page 8318]]

Federal Register Information Center, 800 North Capitol Street, NW., 
suite 700, Washington, DC 20408; telephone: (202) 720-2491. This 
incorporation by reference was approved by the Director of the Federal 
Register. The materials are incorporated as they exist on the date of 
approval and a notice of any changes in the material will be published 
in the Federal Register.

    Dated: February 14, 2000.
Eric M. Forman,
Acting Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 00-3874 Filed 2-17-00; 8:45 am]
BILLING CODE 3410-02-P