Lemons Grown in California and Arizona; Increase in the Organic Exemption Provision

DEPARTMENT OF AGRICULTURE

7 CFR Part 910

[FV93-910-3 FIR]

Lemons Grown in California and Arizona; Increase in the Organic

Exemption Provision

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: This document finalizes without change an interim final rule

that amended the rules and regulations established under the marketing

order covering California-Arizona lemons to increase from 350 to 500

cartons per week, the amount of organic lemons handlers may ship

without regard to volume and size regulations. The marketing order

regulates the handling of lemons grown in California and Arizona and is

administered locally by the Lemon Administrative Committee (Committee).

This final rule recognizes additional opportunity to market organic

lemons to organic or health food wholesalers and retailers.

EFFECTIVE DATE: February 9, 1994.

FOR FURTHER INFORMATION CONTACT: Kellee J. Hopper, Marketing

Specialist, California Marketing Field Office, Marketing Order

Administration Branch, F&V, AMS, USDA, 2202 Monterey Street, suite

102B, Fresno, California, 93721; telephone: (209) 487-5901; or Kenneth

G. Johnson, Marketing Specialist, Marketing Order Administration

Branch, F&V, AMS, USDA, room 2522-S, P.O. Box 96456, Washington, DC

20090-6456: telephone: (202) 720-5127.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing Order

No. 910 [7 CFR part 910], as amended, regulating the handling of lemons

grown in California and Arizona, hereinafter referred to as the

``order.'' This 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 is issuing this rule in conformance with Executive

Order 12866.

This rule has been reviewed under Executive Order 12778, Civil

Justice Reform. This action is not intended to have retroactive effect.

This rule will not preempt any state or local laws, regulations, or

policies, unless they present an irreconcilable conflict with this

action.

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 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 requirements set forth in the Regulatory Flexibility

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

(AMS) has considered the economic impact of this action 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 2,000 producers of lemons in the production

area and approximately 70 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 of less than $500,000, and small agricultural service firms

are defined as those whose annual receipts are less than $3,500,000.

The majority of these handlers and producers may be classified as small

entities.

Section 910.80 of the order authorizes the Committee, with the

approval of the Secretary, to establish minimum quantities and types of

shipments which shall be free from regulation under this order. Section

910.180(d)(3) of the administrative rules and regulations prescribes

procedures governing exemption from volume and size regulations for

organic lemons handled in minimum quantities.

On July 23, 1993, Mr. Rich Hart, President of Rainbow Valley

Orchards, sent a letter to the Committee requesting an increase in the

amount of organic lemons a handler may ship free of order regulations

to 500 cartons per week. Currently, handlers can ship up to 350 cartons

of such lemons weekly. At its August 3, 1993, meeting, the Committee

recommended increasing the organic exemption provision from 350 to 500

cartons per week that handlers may ship to organic or health food

wholesalers and retailers without regard to volume and size

regulations. The vote on the recommendation was 12 in favor and 1

abstention. The person who abstained expressed a concern with the

definition of organic.

Shippers of organic lemons have indicated that organic fruit

markets can absorb more fruit than in the past, and that they need to

take advantage of the additional marketing opportunity. The Committee

expects the increase in shipments allowed will provide shipping

flexibility for organic shippers and will facilitate the marketing of

organic lemons. The Committee also believes that sales of organic

lemons will not adversely impact sales of regulated lemons.

The interim final rule was issued on October 4, 1993, with an

effective date of October 8, 1993, and published in the Federal

Register [58 FR 52401, October 8, 1993]. The interim final rule

provided a 30-day comment period ending November 8, 1993, and no

comments were received.

The interim final rule amended the rules and regulations of the

lemon marketing order. This rule modifies language in the order's rules

and regulations to increase from 350 to 500 cartons per week, the

amount of organic lemons handlers may ship free of order regulations.

Based on these considerations, the Administrator of the AMS has

determined that this action will not have a significant economic impact

on a substantial number of small entities.

In accordance with the Paperwork Reduction Act of 1980 (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. 0581-0120.

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 rule as hereinafter

set forth will tend to effectuate the declared policy of the Act.

List of Subjects in 7 CFR Part 910

Lemons, Marketing agreements, Reporting and recordkeeping

requirements.

For the reasons set forth in the preamble, 7 CFR part 910 is

amended as follows:

1. The authority citation for 7 CFR part 910 continues to read as

follows:

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

PART 910--LEMONS GROWN IN CALIFORNIA AND ARIZONA

2. Accordingly, the interim final rule amending Sec. 910.180, which

was published in the Federal Register [58 FR 52401, October 8, 1993],

is adopted as a final rule without change.

Dated: January 3, 1994.

Robert C. Keeney,

Deputy Director, Fruit and Vegetable Division.

[FR Doc. 94-422 Filed 1-7-94; 8:45 am]

BILLING CODE 3410-02-P