Oranges and Grapefruit Grown in the Lower Rio Grande Valley in Texas; Revision of Special Purpose Exemption Provisions

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 906

[Docket No. FV94-906-2FR]

Oranges and Grapefruit Grown in the Lower Rio Grande Valley in

Texas; Revision of Special Purpose Exemption Provisions

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: This final rule revises the administrative rules and

regulations in effect under the Texas citrus marketing order. The

revision eliminates the provision which exempts fruit handled for home

use from the order's grade, size, pack, container, inspection and

assessment requirements. This rule will help prevent unauthorized

shipments of uninspected citrus from being shipped out of the

production area. Individuals will continue to be able to handle up to

400 pounds of citrus per day exempt from order requirements which

should be sufficient for fruit purchased for home use.

EFFECTIVE DATE: November 7, 1994.

FOR FURTHER INFORMATION CONTACT: Belinda Garza, McAllen Marketing Field

Office, Fruit and Vegetable Division, AMS, USDA, 1313 East Hackberry,

McAllen, Texas 78501, telephone: (210) 682-2833; or Charles L. Rush,

Marketing Order Administration Branch, Fruit and Vegetable Division,

AMS, USDA, P.O. Box 96456, room 2523-S, Washington, DC 20090-6456,

telephone: (202) 690-3670.

SUPPLEMENTARY INFORMATION: This final rule is issued under Marketing

Agreement and Order No. 906 [7 CFR part 906] regulating the handling of

oranges and grapefruit grown in the Lower Rio Grande Valley in Texas,

hereinafter referred to as the order. The order is effective under the

Agricultural Marketing Agreement Act of 1937, as amended [7 U.S.C. 601-

674], hereinafter referred to as the Act.

The Department of Agriculture (Department) is issuing this rule in

conformance with Executive Order 12866.

This rule has been reviewed under Executive Order 12778, Civil

Justice Reform. This final rule is not intended to have retroactive

effect. This final rule 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 8c(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 requesting a modification of the order or to be exempted

therefrom. Such 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 in equity to review

the Secretary's ruling on the petition, provided a bill in equity is

filed not later than 20 days after date of the entry of the ruling.

Pursuant to the requirements set forth in the Regulatory

Flexibility Act (RFA), the Administrator of the Agricultural Marketing

Service (AMS) has considered the economic impact of this rule on small

entities.

The purpose of the RFA is to fit regulatory actions to the scale of

business subject to such actions in order that small businesses will

not be unduly or disproportionately burdened. Marketing orders issued

pursuant to the Act, and rules issued thereunder, are unique in that

they are brought about through group action of essentially small

entities acting on their own behalf. Thus, both statutes have small

entity orientation and compatibility.

There are approximately 15 handlers of oranges and grapefruit

regulated under the order each season and approximately 750 orange and

grapefruit producers in Texas. Small agricultural producers have been

defined by the Small Business Administration [13 CFR Sec. 121.601] as

those having annual receipts of less than $500,000, and small

agricultural service firms are defined as those whose annual receipts

are less than $5,000,000. The majority of these handlers and producers

may be classified as small entities.

Section 906.40 of the order authorizes the establishment of grade,

size, quality, maturity, pack and container requirements for fresh

shipments of Texas oranges and grapefruit. Whenever such requirements

are in effect, oranges and grapefruit are required to be inspected and

certified as meeting applicable standards in accordance with

Sec. 906.45 of the order. The program is financed through handler

assessments, established pursuant to Sec. 906.34.

The order provides, in Sec. 906.42, that regulations issued under

Secs. 906.34, 906.40, and 906.45 may be modified, suspended or

terminated to facilitate the handling of citrus fruit for certain

purposes. Under this authority, Sec. 906.120 of the order's rules and

regulations provides that oranges and grapefruit may be handled for

relief, charity or home use exempt from order requirements. Handlers

desiring to utilize this exemption are required to apply to the Texas

Valley Citrus Committee (committee), the agency established to

administer the order locally. In making an application, the handler is

required to submit information such as the quantity of fruit to be

handled under the exemption and its intended destination. Based on the

information provided, the committee determines whether to approve the

application and issue the handler a certificate of privilege.

The committee met on May 10, 1994, and unanimously recommended

revising paragraph (c)(1) of Sec. 906.120 by deleting ``home use'' from

the provision which allows fruit to be handled exempt from regulation.

Current regulations allow for an unlimited amount of fruit to be

shipped for home use (not for resale) exempt from all marketing order

requirements. The committee recommended this amendment to reduce the

potential for abuse of the home use exemption. The committee has had

difficulty in verifying the final disposition of exempted fruit.

This final rule revises Sec. 906.120(c)(1) by deleting the phrase

``home use''. The committee expressed concern that bulk loads of

uninspected fruit may enter fresh, commercial markets and prove

detrimental to producer returns if the exemption is not removed.

Other exemptions from order requirements remain unchanged. Under

paragraph (a) of Sec. 906.120, individuals will continue to be able to

handle up to 400 pounds of citrus per day exempt from order

requirements. The committee believes that this minimum quantity

exemption is sufficient to cover fruit purchased for home use and not

for resale. Thus, it is not expected that this action will adversely

impact those persons who purchase Texas oranges and grapefruit directly

from handlers for their own use.

A proposed rule concerning this revision was issued on July 21,

1994, and published in the Federal Register on July 27, 1994, [59 FR

38138]. That rule provided a 30-day comment period which ended August

26, 1994. No comments were received.

The information collection requirements contained in the referenced

sections have been previously approved by the Office of Management and

Budget (OMB) under the provisions of 44 U.S.C. chapter 35 and have been

assigned OMB number 0581-0068 for Texas oranges and grapefruit.

This rule reduces the reporting burden on approximately 6 handlers

of oranges and grapefruit who have been completing the Special Purpose

Shipments Form (Application for fundraiser-specialty pack), taking

about 5 minutes to complete each report.

Based on the above, the Administrator of the AMS has determined

that this action will not have a significant economic impact on a

substantial number of small entities.

After consideration of all relevant matter presented, including the

information and recommendations submitted by the committee and other

available information, it is hereby found that this final rule, as

hereinafter set forth, will tend to effectuate the declared policy of

the Act.

List of Subjects in 7 CFR Part 906

Grapefruit, Marketing agreements and orders, Oranges, Reporting and

recordkeeping requirements.

For the reasons set forth in the preamble, 7 CFR Part 906 is

amended as follows:

PART 906--ORANGES AND GRAPEFRUIT GROWN IN LOWER RIO GRANDE VALLEY

IN TEXAS

1. The authority citation for 7 CFR Part 906 continues to read as

follows:

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

2. Section 906.120 is amended by revising the first sentence of

paragraph (c)(1) to read as follows:

Sec. 906.120 Fruit exempt from regulation.

(a) * * *

(b) * * *

(c) Special purpose shipments and safeguards.

(1) Fruit may be handled for relief or charity exempt from the

requirements of Secs. 906.34, 906.40, and 906.45 and the regulations

issued thereunder: Provided, That the fruit shall not be offered for

resale, and the handler submits, prior to any such handling, an

application to the committee on forms provided by the committee. * * *

* * * * *

Dated: October 3, 1994.

Eric M. Forman,

Deputy Director, Fruit and Vegetable Division.

[FR Doc. 94-24776 Filed 10-5-94; 8:45 am]

BILLING CODE 3410-02-P