Oranges and Grapefruit Grown in the Lower Rio Grande Valley in Texas; Reapportionment of Membership on the Texas Valley Citrus Committee

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 906

[Docket No. FV96-906-4PR]

Oranges and Grapefruit Grown in the Lower Rio Grande Valley in

Texas; Reapportionment of Membership on the Texas Valley Citrus

Committee

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This proposed rule would reapportion the membership of the 15-

member Texas Valley Citrus Committee (committee) established under the

Federal marketing order regulating the handling of oranges and

grapefruit grown in the Lower Rio Grande Valley in Texas. This action

would provide for more equitable representation between cooperative and

independent producers and handlers. This reapportionment would reduce

the number of cooperative producer member positions from four to two

and provide independent producers with those two positions, thus,

increasing independent producer membership to seven positions. In

addition, the number of cooperative handler member positions would be

reduced from two to one, thereby increasing independent handler

membership to five positions.

DATES: Comments must be received by February 3, 1997.

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, P.O. Box 96456,

room 2525-S, 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:

t 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,

P.O. Box 96456, room 2525-S, 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 2525-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

ct, 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 17 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.

This proposed rule would reapportion the membership of the

committee. This action is intended to provide for equitable and

balanced representation between cooperative and independent producers

and handlers and would not impose additional costs or burdens on

producers and handlers.

Therefore, the AMS has determined that this proposed rule would not

have a significant economic impact on a substantial number of small

entities. Interested persons are invited to submit information on the

regulatory and informational impacts of this action on small

businesses.

Pursuant to section 906.18 of the order, the committee consists of

15 members. Each member has an alternate. Nine of the members are

producers and six are handlers. Section 906.122 of the order's rules

and regulations provides that the nine producer representatives be

allocated so that four members represent cooperative marketing

organizations, hereinafter referred to as cooperative producers, and

five members represent independent marketing organizations, hereinafter

referred to as independent producers

f the members are

producers and six are handlers. Section 906.122 of the order's rules

and regulations provides that the nine producer representatives be

allocated so that four members represent cooperative marketing

organizations, hereinafter referred to as cooperative producers, and

five members represent independent marketing organizations, hereinafter

referred to as independent producers. Section 906.122 further provides

that the six handler representatives on the committee be allocated so

that two members represent cooperative marketing organizations,

hereinafter referred to as cooperative handlers, and four represent

independent marketing organizations, hereinafter referred to as

independent handlers.

Section 906.19 provides for a three-year term of office for

committee members and their alternates. The terms of office of the

committee are staggered so that one-third of the terms end every third

year. Members and alternates serve in their designated positions during

the portion of the term of office for which they are selected or until

their respective successors are selected and have qualified.

Section 906.21 of the order authorizes the committee, with the

Secretary's

approval, to reapportion membership between cooperative producer and

handler members and independent producer and handler members as

necessary to assure equitable representation on the committee. Such

changes are authorized in order to reflect structural changes within

the industry and changes in the amount of fruit handled by cooperative

handlers in relation to fruit handled by independent handlers.

On August 27, 1996, the committee met to discuss, among other

issues, committee representation and to determine whether any changes

were warranted to foster more equitable representation. Changes in the

Texas citrus industry have resulted in a reduction of the number of

cooperative handlers in that industry subsequently resulting in a

decrease in the amount of fruit handled by cooperative handlers

gust 27, 1996, the committee met to discuss, among other

issues, committee representation and to determine whether any changes

were warranted to foster more equitable representation. Changes in the

Texas citrus industry have resulted in a reduction of the number of

cooperative handlers in that industry subsequently resulting in a

decrease in the amount of fruit handled by cooperative handlers.

According to the committee's records, there were four cooperative

organizations operating until 1984, prior to a freeze in the production

area. From 1985 to 1995, there were two cooperative organizations

handling Texas citrus. Presently, only one cooperative handler remains

in operation.

As the number of cooperative handlers has decreased, so has the

volume of fresh fruit accounted for by cooperatives. At the time

committee membership was last reapportioned in 1969, cooperatives

accounted for about 30 percent of fresh fruit shipments and about 45

percent of fruit harvested (which includes processed citrus). The

volume of fresh fruit shipments accounted for by cooperatives has

declined since that time, particularly after the last two freezes.

The committee is concerned that the cooperative segment of the

industry is currently over-represented on the committee and that

committee representation no longer reflects the current structure of

the industry. The present situation has recently made it difficult to

acquire cooperative representation on the committee, which could lead

to potential problems in the future.

This proposed rule would change the composition of the committee by

reducing cooperative producer positions on the committee from four to

two, and increasing independent producer member positions from five to

seven. In addition, cooperative handler representation would be reduced

from two member positions to one, and independent handler positions

would be increased from four to five

future.

This proposed rule would change the composition of the committee by

reducing cooperative producer positions on the committee from four to

two, and increasing independent producer member positions from five to

seven. In addition, cooperative handler representation would be reduced

from two member positions to one, and independent handler positions

would be increased from four to five. The proposed change would bring

committee representation more in line with the Texas citrus industry's

current structure. This change was unanimously recommended by the

committee at its August 27 meeting.

The committee further recommended that current committee members

complete their current terms of office where possible and new members

be nominated where applicable to provide for full three-year terms of

office for unexpired terms. Presently, the term of office of one of the

four cooperative producer members expires on July 31, 1997, and three

expire on July 31, 1999. The 1997 position, in addition to one of the

1999 positions, would be relinquished to independent producers. Also,

there are presently two cooperative handler members, one of whose terms

expires on July 31, 1998, and the other on July 31, 1999. One of those

positions would be relinquished to independent handlers. The three

terms of office relinquished to the independents would terminate on

July 31 of the appropriate term. Determination of which cooperative

producer and handler members currently serving unexpired terms would

remain in their respective positions would be made by lot at the

committee's subsequent nomination meetings.

The Texas citrus industry has historically demonstrated a policy of

maintaining equitable representation among cooperative and independent

producers and handlers. When the order was promulgated in 1960, two of

the nine producer member positions and one of the six handler positions

were allocated to cooperative members

ns would be made by lot at the

committee's subsequent nomination meetings.

The Texas citrus industry has historically demonstrated a policy of

maintaining equitable representation among cooperative and independent

producers and handlers. When the order was promulgated in 1960, two of

the nine producer member positions and one of the six handler positions

were allocated to cooperative members. In 1969, committee membership

was reallocated to the present apportionment to reflect changes in the

composition of the industry.

Cooperative producer member positions were increased from two to

four and cooperative handler representation was increased from one to

two. The changes also provided for a reduction in the number of

independent producer and handler positions. Following the two major

freezes, only one cooperative handler remains in operation. The

committee recommended returning to the order's original apportionment

to accommodate the shift in production. Reducing the total number of

cooperative positions to three would bring representation closer in

line with the proportion of fresh fruit shipments accounted for by the

cooperative. Therefore, the committee's recommendation to revert to the

committee's original apportionment would be achieved by removing

Sec. 906.122, which would result in reallocation of cooperative and

independent producers and handlers to that reflected in Sec. 906.18 of

the order. Section 906.122, which provides that the production area be

considered as one district for purposes of committee representation,

would not be affected by this rule.

A 30-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 prior to finalization of this rule.

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:

rovided to allow interested persons to

respond to this proposal. All written comments received within the

comment period will be considered prior to finalization of this rule.

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. Section 906.122 is removed.

Dated: December 26, 1996.

Robert C. Keeney,

Director, Fruit and Vegetable Division.

[FR Doc. 96-33328 Filed 12-31-96; 8:45 am]

BILLING CODE 3410-02-P