Oranges and Grapefruit Grown in the Lower Rio Grande Valley in Texas; Final Rule To Temporarily Relax Size Requirements for Texas Grapefruit

SUMMARY: The Department of Agriculture (Department) is adopting as a

final rule, without change, the provisions of an interim final rule

which temporarily relaxed the minimum size requirements for Texas

grapefruit for the entire 1995-96 season. This interim final rule is

designed to help the Texas citrus industry successfully market the

1995-96 season grapefruit crop.

EFFECTIVE DATE: January 17, 1996.

FOR FURTHER INFORMATION CONTACT: 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; or Belinda G. Garza, McAllen Marketing Field Office, USDA/AMS,

1313 East Hackberry, McAllen, Texas 78501; telephone: 210-682-2833.

SUPPLEMENTARY INFORMATION: This final rule is issued under Marketing

Agreement and Marketing 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. 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 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 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 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 requesting 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 the 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 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 15 citrus handlers subject to regulation

under the order covering oranges and grapefruit grown in Texas, and

approximately 1,500 producers of these citrus fruits in Texas. Small

agricultural service firms, which includes grapefruit handlers, have

been defined by the Small Business Administration (13 CFR 121.601) as

those having annual receipts of less than $5,000,000, and small

agricultural producers are defined as those whose annual receipts are

less than $500,000. A majority of these handlers and producers may be

classified as small entities.

This rule finalizes the temporary relaxation of the minimum size

requirements for grapefruit as prescribed under the Texas citrus

marketing order. The rule provides that pack size 112 grapefruit may be

shipped throughout the entire 1995-96 season if such grapefruit grade

at least U.S. No. 1. This relaxation is similar to the relaxations

which were issued for the 1993-94 and 1994-95 seasons. This relaxation

was unanimously recommended by the Texas Valley Citrus Committee

(TVCC).

The interim final rule was issued on October 17, 1995, and

published in the October 23, 1995, Federal Register (60 FR 54291),

providing a 30-day comment period ending November 22, 1995. No comments

were received.

Minimum grade and size requirements for fresh grapefruit grown in

Texas are in effect under Sec. 906.365 (7 CFR 906.365). This rule

amends Sec. 906.365 by revising paragraph (a)(4) to permit shipment of

grapefruit measuring at least 3\5/16\ inches in diameter (pack size

112) and grading at least U.S. No. 1 for the entire 1995-96 season

ending June 30, 1996.

Section 906.365 establishes minimum size requirements for Texas

grapefruit. During the period November 16 through January 31 each

season, grapefruit must be at least pack size 96, that is the minimum

diameter for the grapefruit in any lot is 3\9/16\ inches. At other

times, grapefruit that is pack size 112, except that the minimum

diameter for grapefruit in any lot is 3\5/16\ inches, may be shipped if

it grades at least U.S. No. 1. The minimum grade requirement for

grapefruit is Texas Choice.

Permitting shipments of pack size 112 grapefruit grading at least

U.S. No. 1 for the remainder of the 1995-96 season will enable Texas

grapefruit handlers to meet market needs and compete with similar sized

grapefruit expected to be shipped from Florida.

The relaxation is expected to help the Texas citrus industry

successfully market its 1995-96 season grapefruit crop and have a

positive effect on producer returns. Permitting shipments of pack size

112 grapefruit grading at least U.S. No. 1 for the entire 1995-96

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season will enable Texas grapefruit handlers to meet market needs. This

final rule is based on the current and prospective crop and market

conditions for Texas grapefruit. Fresh Texas grapefruit shipments began

in late September this season.

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 TVCC and other

available information, it is found that finalizing this rule without

change, as published in the Federal Register (60 FR 54291, October 23,

1995) will tend to effectuate the declared policy of the Act.

List of Subjects in 7 CFR Part 906

Grapefruit, Marketing agreements, 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 THE LOWER RIO GRANDE

VALLEY IN TEXAS

Accordingly, the interim final rule amending 7 CFR part 906 which

was published at 60 FR 54291 on October 23, 1995, is adopted as a final

rule without change.

Dated: December 12, 1995.

Sharon Bomer Lauritsen,

Deputy Director, Fruit and Vegetable Division.

[FR Doc. 95-30672 Filed 12-15-95; 8:45 am]

BILLING CODE 3410-02-P