Oranges and Grapefruit Grown in the Lower Rio Grande Valley in Texas; Change in Reporting Requirements and Notice of Request for Extension and Revision of a Currently Approved Information Collection

SUMMARY: This proposed rule invites comments on a change to the

reporting requirements currently prescribed under the Texas orange and

grapefruit marketing order. This document also announces the

Agricultural Marketing Service's (AMS) intention to request an

extension for and revision to the currently approved information

collection requirements issued under the marketing order. The marketing

order regulates the handling of oranges and grapefruit grown in three

counties in the Lower Rio Grande Valley in Texas and is administered

locally by the Texas Valley Citrus Committee (committee). Shipments of

oranges and grapefruit out of the production area must meet minimum

standards of grade, size, quality and pack. Such shipments are subject

to mandatory inspection. This rule would add language in the order's

rules and regulations to require that all sales of over 400 pounds of

oranges and grapefruit for resale inside the production area be covered

by a ``Buyer's Certification'' form. This requirement would ensure that

handlers are aware of and accept responsibility for complying with the

order's requirements and that buyers do not intend to transport

uninspected oranges and grapefruit out of the three-county production

area.

DATES: Comments must be received by October 18, 1996.

ADDRESSES: Interested persons are invited to submit written comments

concerning this proposal. Comments must be sent in triplicate to the

Docket Clerk, Fruit and Vegetable Division, AMS, USDA, room 2525-S,

P.O. Box 96456, Washington, DC 20090-6456, Fax # (202) 720-5698. 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: Belinda G. Garza, McAllen Marketing

Field Office, Marketing Order Administration Branch, Fruit and

Vegetable Division, 1313 E. Hackberry, McAllen, Texas 78501; telephone:

(210) 682-2833, Fax # (210) 682-5942; or Charles L. Rush, Marketing

Order Administration Branch, Fruit and Vegetable Division, AMS, USDA,

room 2522-S, P.O. Box 96456, Washington, DC 20090-6456; telephone:

(202) 690-3670, 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

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

6456; telephone: (202) 720-2491, Fax # (202) 720-5698.

SUPPLEMENTARY INFORMATION: This proposal is issued under Marketing

Agreement and Order No. 906 (7 CFR Part 906), as amended, 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 proposal has been reviewed under Executive Order 12988, Civil

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

If adopted, 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 date of the entry of the ruling.

Pursuant to requirements set forth in the Regulatory Flexibility

Act (RFA), 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 handlers of oranges and grapefruit who

are subject to regulation under the order and approximately 2,000

orange and grapefruit producers in the regulated area. Small

agricultural service firms, which includes 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 having annual receipts of less than

$500,000. The majority of handlers and producers of Texas oranges and

grapefruit may be classified as small entities. Interested persons are

invited to submit information on the regulatory and informational

impacts of this action on small businesses.

This proposal invites comments on a change to the reporting

requirements currently prescribed under the Texas orange and grapefruit

marketing order. This rule would add language in the

[[Page 49079]]

order's rules and regulations to provide for the use of a ``Buyer's

Certification'' form (Certification Form). The use of this new form was

unanimously recommended by the committee at a public meeting on May 29,

1996.

This proposed rule (1) Would establish a requirement that handlers

complete a Certification Form on all sales over 400 pounds of oranges

or grapefruit, or both, destined for resale inside the production area

to help ensure that such oranges or grapefruit do not leave the

production area without meeting order requirements, and (2) provides

notice of a request for extension and revision of a currently approved

information collection.

Implementation of the requirement to submit Certification Forms

would result in a small increase in reporting requirements imposed on

handlers. The added cost of complying with this requirement would be

minimal and would be offset by benefits derived from enhanced

compliance with the order and more complete statistical data beneficial

to the entire industry. Therefore, the AMS has determined that this

action would not have a significant economic impact on a substantial

number of small entities.

Under the order, Texas orange and grapefruit shipments to fresh

markets in the United States, Canada, and Mexico are required to be

inspected and are subject to grade, size, quality, container and pack

requirements. Exempt from such handling requirements are shipments

made: (1) Within the production area (Cameron, Hidalgo, and Willacy

counties in Texas); (2) in individually addressed gift packages which

are not for resale; (3) under the 400-pound minimum quantity exemption

provision; and (4) for relief or charity. In addition, fruit shipped to

approved processors for processing are exempt from handling

requirements. These handling requirements do not change substantially

from season to season, and are in effect on a continuing basis subject

to amendment, modification, or suspension as may be determined by the

Secretary. Currently, the handling regulations under the order are

effective from September 1 through June 30 each year.

Section 906.51 of the order provides authority for the committee,

with the approval of the Secretary, to require that each handler

furnish to the committee reports and other information as may be

necessary for the committee to perform its duties under the marketing

order.

The committee recommended the establishment of a requirement that

handlers of Texas oranges and grapefruit complete a Certification Form

on all sales of over 400 pounds of oranges or grapefruit or a

combination of both that are not intended to leave the production area.

(The order currently provides that 400 pounds of Texas oranges or

grapefruit or a combination of both not for resale may be shipped per

day outside the production area without having to meet marketing order

requirements.) The form would require the following information: (1)

Names and addresses of the seller and the buyer; (2) description and

quantity of the oranges or grapefruit sold; and (3) the destination of

the fruit. In addition, the buyer would certify that fruit that is

subsequently taken outside the production area for resale will be

inspected in accordance with the order and its rules and regulations.

The information compiled from use of this form would also provide the

committee, its staff, and the industry with valuable statistics on

fruit sold and marketed within the production area.

Handling of oranges and grapefruit inside the production area is

not regulated. While monitoring compliance during the 1995-96 season,

committee staff became aware of a lack of documentation on fruit

intended for use within the production area. Such fruit was on occasion

found outside the production area without having been inspected and

certified as meeting marketing order requirements. The committee

recognized the need to make handlers responsible for ensuring that

sales of their fruit intended for resale inside the production area,

but subsequently leaving the production area, meet the provisions of

the order. The Certification Form was developed to help track such

sales. Currently, documentation on sales to peddlers and cash buyers,

and other transactions not supported by an inspection certificate or a

diversion report (used to track shipments for processing, relief, or

charity), is minimal or non-existent. In the process of conducting its

compliance program, the committee encountered difficulty in tracking

movement of such citrus and detecting violations of the order.

The form would be completed by the seller (handler) in triplicate.

The buyer would sign the certification statement on the form. One copy

would be submitted by the handler to the committee within 7 days after

the sale. One copy would be retained by the handler and the third copy

would be given to the buyer. The forms would be reviewed by the

committee's compliance staff as they are received and would be compared

against handler records and inspection certificates. In addition, the

form would also provide valuable statistical information on fruit sold

and marketed for use within the production area. Currently, there is no

tracking system for local use fruit. Collection of this information

would fill a void in the committee's statistical database which would

be used to determine total utilization of fruit and further assist the

industry in making marketing decisions.

Throughout the past season, the committee considered possible

options to monitor shipments of uninspected oranges and grapefruit. It

was noted that local use fruit is presently not accounted for, which

leaves a significant void in the committee's database. The committee

considered, for example, compiling an ``approved peddler'' list, and

allowing uninspected fruit to be sold only to those appearing on the

list. This option was determined to be impractical for the industry, as

such a list would change constantly and could never be accurately

maintained. Development of the Certification Form was the only option

believed to be viable. Use of the form would raise awareness of both

the handlers' and buyers' responsibility to comply with the provisions

of the marketing order. This option would result in the smallest

increase in regulatory burden of the options considered, including the

establishment of additional regulatory requirements, such as inspection

of all shipments, regardless of destination. Therefore, the committee

recommended that Sec. 906.151 be amended by designating the existing

paragraph in this section as (a) and adding a new paragraph (b).

Completion of the Certification Form at the time of the sale of

fruit would total 5 minutes per form. The number of respondents is

estimated to total 50, and the frequency of response would be 2

responses per week for a total of 30 weeks. The total information

collection burden will be adjusted accordingly.

A 60-day comment period is provided to allow interested persons to

respond to this proposal. All written comments received within the

comment period 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), the AMS announces its intention to request an extension

for and revision to a currently approved information collection for

Texas oranges and grapefruit.

Title: Oranges and Grapefruit Grown in the Lower Rio Grande Valley

in Texas, Marketing Order No. 906.

OMB Number: 0581-0068.

[[Page 49080]]

Expiration Date of Approval: June 30, 1997.

Type of Request: Extension and 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, marketing order programs are established if

favored in referendum among producers. The handling of the commodity is

regulated. The Secretary of Agriculture is authorized to oversee the

orders' operations and issue regulations recommended by a committee of

representatives from each commodity industry.

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

Texas orange and grapefruit marketing order, which has been operating

since 1960.

The Texas orange and grapefruit marketing order authorizes the

issuance of grade, size, container and pack regulations. Regulatory

provisions apply to oranges and grapefruit shipped outside of the

production area, except for those shipments specifically exempt. The

order also has authority for marketing research and development

projects, including paid advertising.

The order, and rules and regulations issued thereunder, authorize

the committee to require handlers and producers to submit certain

information. Much of this information is compiled in aggregate and

provided to the industry to assist in marketing decisions.

The committee has developed forms as a means for persons to file

required information with the committee relating to orange and

grapefruit supplies, shipments, dispositions, and other information

needed to effectively carry out the purpose of the Act and order. As

shipments of Texas oranges and grapefruit are normally from September

through June, these forms are utilized accordingly. A USDA form is used

to allow producers to vote on amendments to the order. In addition,

orange and grapefruit producers and handlers who are nominated by their

peers to serve as representatives on the committee must file nomination

forms with the Secretary.

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.

This proposed rule would establish a requirement that each handler

complete a form provided by the committee whenever over 400 pounds of

oranges and grapefruit are handled for resale inside the production

area. This information will help track the flow of oranges and

grapefruit handled for resale inside the production area where an

inspection certificate or special purpose diversion form is not needed.

The information would also be useful to the committee to determine

those responsible for complying with the provisions of the marketing

order. Completion of the Certification Form at the time of the sale of

fruit would total 5 minutes per form. The number of respondents is

estimated to total 50, and the frequency of response would be 2

responses per week for a total of 30 weeks. The total information

collection burden will be adjusted accordingly.

The information collected will be used only by authorized

representatives of the USDA, including AMS, Fruit and Vegetable

Division regional and headquarters staff, and employees of the

committee. Committee employees will be the primary users of the

information and AMS employees will be secondary users.

Estimate of Burden: Public reporting burden for this proposed

collection of information is estimated to average .156 hours per

response.

Respondents: Texas orange and grapefruit producers, handlers, and

processors.

Estimated Number of Respondents: 189.

Estimated Number of Responses per Respondent: 18.95.

Estimated Total Annual Burden on Respondents: 561 hours.

Comments are invited on: (1) Whether the proposed collection of

information is necessary for the functioning of the Texas orange and

grapefruit marketing order and the Department's oversight of the

program; (2) the accuracy of the collection burden estimate including

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 of the collection, including through the use of automated or

electronic technologies.

Comments must be received by November 18, 1996. Comments should

reference OMB No. 0581-0068 and the Texas Orange and Grapefruit

Marketing Order No. 906, and be submitted to Belinda G. Garza at the

above address. All comments received will be available for public

inspection during regular business hours at the same address.

All responses to this notice will be summarized and included in the

request for OMB approval. All comments will also become a matter of

public record.

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

proposed to be amended as follows:

PART 906--ORANGES AND GRAPEFRUIT GROWN IN THE 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. In Sec. 906.151 the existing text is designated as paragraph (a)

and a new paragraph (b) is added to read as follows:

Sec. 906.151 Reports.

* * * * *

(b) Each handler who sells over 400 pounds of oranges or grapefruit

or a combination of both for resale inside the production area shall,

for each transaction, report to the committee on a form approved by it

the following information:

(1) Name and address of seller;

(2) Name and address of buyer;

(3) Description and quantity of oranges or grapefruit sold;

(4) Destination of fruit;

(5) A statement that the buyer certifies that fruit that is

subsequently taken outside the production area for resale will be

inspected; and

(6) Such other pertinent information as the committee may require.

The handler shall prepare the report in triplicate. The buyer shall

sign the certification statement. The pink copy shall be submitted to

the committee within 7 days. The green copy shall be retained by the

handler and the blue copy shall be given to the buyer. Such form shall

be reviewed by the committee staff and the information compiled for the

committee's use.

Dated: September 10, 1996.

Robert C. Keeney,

Director, Fruit and Vegetable Division.

[FR Doc. 96-23833 Filed 9-17-96; 8:45 am]

BILLING CODE 3410-02-P