[Federal Register Volume 78, Number 60 (Thursday, March 28, 2013)]
[Proposed Rules]
[Pages 18899-18902]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-07180]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 905

[Doc. No. AO-13-0163; AMS-FV-12-0069; FV13-905-1]


Oranges, Grapefruit, Tangerines, and Tangelos Grown in Florida; 
Hearing on Proposed Amendment of Marketing Order No. 905

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Notice of hearing on proposed rulemaking.

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SUMMARY: Notice is hereby given of a public hearing to receive evidence 
on proposed amendments to Marketing Order No. 905 (order), that 
regulates the handling of oranges, grapefruit, tangerines, and tangelos 
(citrus) grown in Florida. Nine amendments are proposed by the Citrus 
Administrative Committee (committee), which is responsible for local 
administration of the order. These proposed amendments would: authorize 
regulation of new varieties and hybrids of citrus fruit, authorize the 
regulation of intrastate shipments of fruit, revise the process for 
redistricting the production area, change the term of office and tenure 
requirements for committee members, authorize mail balloting procedures 
for committee membership nominations, increase the capacity of 
financial reserve funds, authorize pack and container requirements for 
domestic shipments and authorize different regulations for different 
markets, eliminate the use of separate acceptance statements in the 
nomination process, and require handlers to register with the 
committee.
    In addition, the Agricultural Marketing Service (AMS) proposes to 
make any such changes as may be necessary to the order to conform to 
any amendment that may result from the hearing. These proposed 
amendments are intended to update the order to reflect past changes in 
the industry and potential future changes, and to improve the operation 
and administration of the order.

DATES: The hearing dates are April 24, 2013, 9:00 a.m. to 5:00 p.m.; 
and continuing on April 25, 2013, at 9:00

[[Page 18900]]

a.m., if necessary, in Winter Haven, Florida.

ADDRESSES: The hearing will be held at the Florida Department of 
Agriculture and Consumer Services, 500 3rd Street NW., Winter Haven, 
Florida 33881.

FOR FURTHER INFORMATION CONTACT: Melissa Schmaedick, Marketing Order 
and Agreement Division, Fruit and Vegetable Program, AMS, USDA, Post 
Office Box 952, Moab, UT 84532; Telephone: (202) 557-4783, Fax: (435) 
259-1502, or Michelle Sharrow, Marketing Order and Agreement Division, 
Fruit and Vegetable Program, AMS, USDA, 1400 Independence Avenue SW., 
Stop 0237, Washington, DC 20250-0237; Telephone: (202) 720-2491, Fax: 
(202) 720-8938, or Email: [email protected] or 
[email protected].
    Small businesses may request information on this proceeding by 
contacting Jeffrey Smutny, Marketing Order and Agreement Division, 
Fruit and Vegetable Program, AMS, USDA, 1400 Independence Avenue SW., 
Stop 0237, Washington, DC 20250-0237; Telephone: (202) 720-2491, Fax: 
(202) 720-8938, or Email: [email protected].

SUPPLEMENTARY INFORMATION: This administrative action is instituted 
pursuant to the Agricultural Marketing Agreement Act of 1937, as 
amended (7 U.S.C. 601-674), hereinafter referred to as the ``Act.'' 
This action is governed by the provisions of sections 556 and 557 of 
title 5 of the United States Code and, therefore, is excluded from the 
requirements of Executive Order 12866.
    The Regulatory Flexibility Act (5 U.S.C. 601-612) seeks to ensure 
that within the statutory authority of a program, the regulatory and 
informational requirements are tailored to the size and nature of small 
businesses. Interested persons are invited to present evidence at the 
hearing on the possible regulatory and informational impacts of the 
proposals on small businesses.
    The amendments proposed herein have been reviewed under Executive 
Order 12988, Civil Justice Reform. They are not intended to have 
retroactive effect.
    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 USDA 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. 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 USDA's 
ruling on the petition, provided an action is filed not later than 20 
days after the date of the entry of the ruling.
    The hearing is called pursuant to the provisions of the Act and the 
applicable rules of practice and procedure governing the formulation of 
marketing agreements and orders (7 CFR part 900).
    The proposed amendments were recommended by the committee on July 
17, 2012, and submitted to USDA on October 25, 2012. After reviewing 
the proposals and other information submitted by the committee, USDA 
made a determination to schedule this matter for hearing.
    The proposed amendments to the order recommended by the committee 
are summarized as follows:
    1. Amend the definitions of ``fruit'' and ``variety'' in Sec.  
905.4 and Sec.  905.5 to update terminology and authorize regulation of 
additional varieties and hybrids of citrus.
    2. Amend the definition of ``handle or ship'' in Sec.  905.9 to 
authorize regulation of intrastate shipments.
    3. Amend Sec.  905.14 to revise the process for redistricting the 
production area.
    4. Amend Sec.  905.20 to change the term of office of committee 
members from one to two years, and change the tenure requirements for 
committee members from three to four years.
    5. Amend Sec.  905.22 to authorize mail balloting procedures for 
committee membership nominations.
    6. Amend Sec.  905.42 to authorize the committee to increase the 
capacity of its financial reserve funds from approximately six months 
of a fiscal period's expenses to approximately two years' fiscal 
period's expenses.
    7. Amend Sec.  905.52 to authorize pack and container requirements 
for domestic shipments and authorize different regulations for 
different markets.
    8. Amend Sec.  905.28 to eliminate the use of separate acceptance 
statements in the nomination process.
    9. Amend Sec.  905.7 to require handlers to register with the 
committee.
    The committee works with USDA in administering the order. These 
proposals submitted by the committee have not received the approval of 
USDA. The committee believes that its proposed amendments would update 
the order to address changes that have occurred in the industry and 
potential changes that could occur in the future. The amendments are 
intended to improve the operation and administration of the order.
    In addition to the proposed amendments to the order, AMS proposes 
to make any such changes as may be necessary to the order to conform to 
any amendment that may result from the hearing.
    The public hearing is held for the purpose of: (i) Receiving 
evidence about the economic and marketing conditions which relate to 
the proposed amendments of the order; (ii) determining whether there is 
a need for the proposed amendments to the order; and (iii) determining 
whether the proposed amendments or appropriate modifications thereof 
will tend to effectuate the declared policy of the Act.
    Testimony is invited at the hearing on all the proposals and 
recommendations contained in this notice, as well as any appropriate 
modifications or alternatives.
    All persons wishing to submit written material as evidence at the 
hearing should be prepared to submit four copies of such material at 
the hearing. Four copies of prepared testimony for presentation at the 
hearing should also be made available. To the extent practicable, eight 
additional copies of evidentiary exhibits and testimony prepared as an 
exhibit should be made available to USDA representatives on the day of 
appearance at the hearing. Any requests for preparation of USDA data 
for this rulemaking hearing should be made at least 10 days prior to 
the beginning of the hearing.
    From the time the notice of hearing is issued and until the 
issuance of a final decision in this proceeding, USDA employees 
involved in the decisional process are prohibited from discussing the 
merits of the hearing issues on an ex parte basis with any person 
having an interest in the proceeding. The prohibition applies to 
employees in the following organizational units: Office of the 
Secretary of Agriculture; Office of the Administrator, AMS; Office of 
the General Counsel; and the Fruit and Vegetable Program, AMS. 
Procedural matters are not subject to the above prohibition and may be 
discussed at any time.

List of Subjects in 7 CFR Part 905

    Grapefruit, Marketing agreements, Oranges, Reporting and 
recordkeeping requirements, Tangelos, Tangerines.

[[Page 18901]]

PART 905--ORANGES, GRAPEFRUIT, TANGERINES, AND TANGELOS GROWN IN 
FLORIDA

0
1. The authority citation for 7 CFR part 905 continues to read as 
follows:

    Authority: 7 U.S.C. 601-674.

0
2. Testimony is invited on the following proposals or appropriate 
alternatives or modifications to such proposals.

    Proposals submitted by the Citrus Administrative Committee:

Proposal Number 1

0
3. Revise Sec.  905.4 to read as follows:


Sec.  905.4  Fruit.

    Fruit means any or all varieties of the following types of citrus 
fruits grown in the production area:
    (a) Citrus sinensis, Osbeck, commonly called ``oranges'';
    (b) Citrus paradisi, MacFadyen, commonly called ``grapefruit'';
    (c) Citrus reticulata, commonly called ``tangerines'' or 
``mandarin'';
    (d) C.grandis (L.); Osbeck, commonly called ``pummelo''; and,
    (e) ``Citrus hybrids'' that are hybrids between or among one or 
more of the four fruits (a) through (d) of this section and the 
following: trifoliate orange (Poncirus trifoliate), sour orange (C. 
aurantium), lemon (C. limon), lime (C. aurantifolia), citron (C. 
medica), kumquat (Fortunella, species), tangelo (C. reticulata x C. 
paradisi or C. grandis), tangor (C. reticulata x C. sinensis), and 
varieties of these species. In addition, citrus hybrids include: 
tangelo (C. reticulata x C. paradisi or C. grandis), tangor (C. 
reticulata x C. sinensis), and temple oranges, and varieties thereof.
0
4. Revise Sec.  905.5 to read as follows:


Sec.  905.5  Variety.

    Variety or varieties means any one or more of the following 
classifications or groupings of fruit:

    (a) Oranges;
(1) Early and Midseason oranges
(2) Valencia, Lue Gim Gong, and similar late maturing oranges of the 
Valencia type;

(3) Navel oranges
    (b) Grapefruit;

(1) Red Grapefruit, to include all shades of color
(2) White Grapefruit

    (c) Tangerines and Mandarins;

(1) Dancy and similar tangerines
(2) Robinson tangerines
(3) Honey tangerines
(4) Fallglo tangerines
(5) US Early Pride tangerines
(6) Sunburst tangerines
(7) W-Murcott tangerines
(8) Tangors

    (d) Pummelos;
(1) Hirado Buntan and other pink seeded pummelos

    (e) Citrus Hybrids;

(1) Tangelos
(i) Orlando Tangelo
(ii) Minneola Tangelo
(2) Temple Oranges
    (f) Other varieties of citrus fruits specified in 905.4, including 
hybrids, as recommended and approved by the Secretary: Provided, That 
in order to add any hybrid variety of citrus fruit to be regulated 
under this provision, such variety must exhibit similar characteristics 
and be subject to cultural practices common to existing regulated 
varieties.

Proposal Number 2

0
5. Revise Sec.  905.9 to read as follows:


Sec.  905.9  Handle or Ship.

    Handle or ship means to sell, transport, deliver, pack, prepare for 
market, grade, or in any other way to place fruit in the current of 
commerce within the production area or between any point in the 
production area and any point outside thereof.

Proposal Number 3

0
6. Revise Sec.  905.14 to read as follows:


Sec.  905.14  Redistricting.

    The committee may, with the approval of the Secretary, redefine the 
districts into which the production area is divided or reapportion or 
otherwise change the grower membership of districts, or both: Provided, 
That the membership shall consist of at least eight but not more than 
nine grower members, and any such change shall be based, insofar as 
practicable, upon the respective averages for the immediately preceding 
three fiscal periods of: (1) The number of bearing trees in each 
district; (2) the volume of fresh fruit produced in each district; (3) 
the total number of acres of citrus in each district; and (4) other 
relevant factors. Each redistricting or reapportionment shall be 
announced on or prior to March 1 preceding the effective fiscal period.

Proposal Number 4

0
7. Revise Sec.  905.20 to read as follows:


Sec.  905.20  Term of Office.

    The term of office of members and alternate members shall begin on 
the first day of August of even-numbered years and continue for two 
years and until their successors are selected and have qualified. The 
consecutive terms of office of a member shall be limited to two terms. 
The terms of office of alternate members shall not be so limited. 
Members, their alternates, and their respective successors shall be 
nominated and selected by the Secretary as provided in Sec.  905.22 and 
Sec.  905.23.

Proposal Number 5

0
8. In Sec.  905.22 revise paragraphs (a)(1) and (b)(1) and add a new 
paragraph (c) to read as follows:


Sec.  905.22  Nominations.

    (a) Grower members. (1) The committee shall give public notice of a 
meeting of producers in each district to be held not later than June 
10th of even-numbered years, for the purpose of making nominations for 
grower members and alternate grower members. The committee, with the 
approval of the Secretary, shall prescribe uniform rules to govern such 
meetings and the balloting thereat. The chairman of each meeting shall 
publicly announce at such meeting the names of the persons nominated, 
and the chairman and secretary of each such meeting shall transmit to 
the Secretary their certification as to the number of votes so cast, 
the names of the persons nominated, and such other information as the 
Secretary may request. All nominations shall be submitted to the 
Secretary on or before the 20th day of June.
    (2) * * *
    (b) Shipper members. (1) The committee shall give public notice of 
a meeting for bona fide cooperative marketing organizations which are 
handlers, and a meeting for other handlers who are not so affiliated, 
to be held not later than June 10th of even-numbered years, for the 
purpose of making nominations for shipper members and their alternates. 
The committee, with the approval of the Secretary, shall prescribe 
uniform rules to govern each such meeting and the balloting thereat. 
The chairperson of each such meeting shall publicly announce at the 
meeting the names of the persons nominated and the chairman and 
secretary of each such meeting shall transmit to the Secretary their 
certification as to the number of votes cast, the weight by volume of 
those shipments voted, and such other information as the Secretary may 
request. All nominations shall be submitted to the Secretary on or 
before the 20th day of June.
    (2) * * *
    (c) Notwithstanding the provisions of paragraphs (a) and (b) of 
this section, nomination and election of members and alternate members 
to the committee may be conducted by mail, electronic

[[Page 18902]]

mail, or other means according to rules and regulations recommended by 
the committee and approved by the Secretary.

Proposal Number 6

0
9. In Sec.  905.42 revise the first sentence of paragraph (a) to read 
as follows:


Sec.  905.42  Handler's accounts.

    (a) If, at the end of a fiscal period, the assessments collected 
are in excess of expenses incurred, the committee, with the approval of 
the Secretary, may carry over such excess into subsequent fiscal 
periods as a reserve: Provided, That funds already in the reserve do 
not exceed approximately two fiscal period's expenses. * * *

Proposal Number 7

0
10. In Sec.  905.52 revise paragraphs (a)(4) and (a)(5) to read as 
follows:


Sec.  905.52  Issuance of regulations.

    (a) * * *
    (4) Establish, prescribe, and fix the size, capacity, weight, 
dimensions, marking (including labels and stamps), or pack of the 
container or containers which may be used in the packaging, 
transportation, sale, shipment, or other handling of fruit: Provided, 
That such regulation shall not authorize the use of any container or 
markings which are prohibited under Florida statutes and regulations 
effective thereunder.
    (5) Provide that any or all requirements effective pursuant to 
paragraphs (a) (1), (2), (3), and (4) of this section applicable to the 
handling of fruit may be different for the handling of fruit within the 
production area, the handling of fruit for export, or for the handling 
of fruit between the production area and any point outside thereof 
within the United States: Provided, That such requirements shall not 
authorize the handling of fruit in any way that is prohibited under 
Florida statutes and regulations effective thereunder.
* * * * *

Proposal Number 8

0
11. Revise Sec.  905.28 to read as follows:


Sec.  905.28  Qualification and Acceptance.

    Any person nominated to serve as a member or alternate member of 
the committee shall, prior to selection by the Secretary, qualify by 
filing a written qualification and acceptance statement indicating such 
person's qualifications and willingness to serve in the position for 
which nominated.

Proposal Number 9

0
12. Revise Sec.  905.7 to read as follows:


Sec.  905.7  Handler.

    Handler is synonymous with shipper and means any person (except a 
common or contract carrier transporting fruit for another person) who, 
as owner, agent, or otherwise, handles fruit in fresh form, or causes 
fruit to be handled. Each handler shall be registered with the 
committee pursuant to rules recommended by the committee and approved 
by the Secretary.
    Proposal submitted by USDA:

Proposal Number 10

    Make other such changes as may be necessary to the order to conform 
with any amendment thereto that may result from the hearing.

    Dated: March 22, 2013.
Rex A. Barnes,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2013-07180 Filed 3-27-13; 8:45 am]
BILLING CODE 3410-02-P