[Federal Register Volume 59, Number 165 (Friday, August 26, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-21079]
[[Page Unknown]]
[Federal Register: August 26, 1994]
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DEPARTMENT OF AGRICULTURE
7 CFR Parts 907, 908, and 910
[Docket No. FV94-907-2]
Termination of Provisions of Marketing Orders 907, 908, and 910;
Navel and Valencia Oranges Grown in Arizona and Designated Parts of
California; Lemons Grown in California and Arizona
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Termination order.
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SUMMARY: This document terminates the Federal marketing orders
regulating the handling of navel and Valencia oranges grown in Arizona
and designated parts of California and lemons grown in California and
Arizona. The Secretary of Agriculture has found that these marketing
orders no longer tend to effectuate the declared policy of the
Agricultural Marketing Agreement Act of 1937. In a press release issued
on May 16, 1994, the Department of Agriculture announced the intention
to terminate the orders for California-Arizona navel oranges, Valencia
oranges, and lemons, noting the division and turmoil in the industry
and that the programs are not functioning as they should.
EFFECTIVE DATE: August 26, 1994.
FOR FURTHER INFORMATION CONTACT: Christian Nissen, 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; or Maureen Pello, California Marketing Field Office,
Marketing Order Administration Branch, F&V, AMS, USDA, 2202 Monterey
Street, Suite 102B, Fresno, California 93721; telephone: (209) 487-
5901.
SUPPLEMENTARY INFORMATION: This action is governed by the provisions of
section 608c(16)(A) of the Agricultural Marketing Agreement Act of
1937, as amended [7 U.S.C. 601-674], hereinafter referred to as the
``Act.''
Marketing Order Nos. 907 and 908 [7 CFR Parts 907 and 908], as
amended, regulate the handling of navel and Valencia oranges grown in
Arizona and designated parts of California. Marketing Order No. 910 [7
CFR Part 910], as amended, regulates the handling of lemons grown in
California and Arizona.
The Department of Agriculture (Department) is issuing this rule in
conformance with Executive Order 12866.
This termination order has been reviewed under Executive Order
12778, Civil Justice Reform. It is not intended to have retroactive
effect. This action 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 of 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 140 handlers of navel oranges, 125 handlers
of Valencia oranges, and 70 handlers of lemons who were subject to
regulation under the respective marketing orders and there are
approximately 3,750 producers of navel oranges, 3,700 producers of
Valencia oranges, and 2,000 producers of lemons in the regulated areas.
Small agricultural service firms 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. The
majority of handlers and producers of California-Arizona navel oranges,
Valencia oranges, and lemons may be classified as small entities.
Marketing Order No. 907 has been in effect since 1953, Marketing
Order No. 908 since 1954, and Marketing Order No. 910 since 1958. When
order authorities were utilized, the orders provided for the
establishment of weekly volume regulation and size requirements. In
addition, the marketing orders authorized marketing research and
development and provided for reporting and recordkeeping requirements
for affected handlers.
This action terminates the provisions of the marketing orders
regulating the handling of navel and Valencia oranges grown in Arizona
and designated parts of California and lemons grown in California and
Arizona.
On May 16, 1994, the Deputy Secretary announced in a press release
that it was the Department's intention to terminate the marketing
orders for California-Arizona navel oranges, Valencia oranges, and
lemons. The decision noted the division and turmoil in the industry
surrounding the California-Arizona citrus orders. The press release
stated that there is a clear indication that the programs are not
working as they should.
The California-Arizona citrus orders have been marked by industry
divisiveness and widespread order violations. In an effort to reach a
satisfactory resolution of industry differences, the Secretary
suspended the weekly volume regulation provisions of the orange orders
on June 18, 1993, and invited the industry to submit proposed
amendments to the orders that could achieve the program objectives.
After a year, serious differences remain, with no apparent consensus
among the industry. Instead, the orders themselves are contributing to
the divisiveness in the industry and are working to the detriment of
growers, packers, and consumers.
Therefore, based on the above considerations, pursuant to section
8c(16)(A) of the Act and Sec. 907.83, Sec. 908.83, and Sec. 910.84 of
the respective marketing orders, it is found that 7 CFR Parts 907, 908,
and 910 no longer tend to effectuate the declared policy of the Act,
and they are hereby terminated.
Section 8c(16)(A) of the Act requires the Secretary to notify
Congress 60 days in advance of the termination of a Federal marketing
order. Congress was so notified on May 16, 1994, and the termination of
Marketing Orders Nos. 907, 908, and 910 shall become effective on
August 26, 1994.
Based on the unanimous recommendations of the Navel Orange
Administrative Committee (NOAC), the Valencia Orange Administrative
Committee (VOAC), and the Lemon Administrative Committee (LAC), the
Secretary has determined that Alvin Freisen (VOAC chairperson), and all
five members of the joint executive committee for the NOAC and the
VOAC, will serve as trustees for the NOAC and the VOAC and that all six
members of the executive committee of the LAC (including alternates)
will serve as trustees for the LAC in order to oversee the
administrative affairs of the respective orders.
The trustees will be responsible for completing the orders'
unfinished business, including ensuring termination of all outstanding
agreements and contracts, and the payment of all obligations. The
trustees will be responsible for safeguarding program assets, holding
committee records, and arranging for a financial audit to be conducted.
All such actions by the trustees are subject to the approval of the
Secretary. Those designated as trustees for the NOAC and VOAC are Ms.
Darlene V. Ohnemus (VOAC and NOAC member), Mr. Robert O. Bream (NOAC
member), Mr. Christopher R. Frame (NOAC chairperson), Mr. William E.
Slattery (VOAC member), Mr. David R. Giller (VOAC member), and Mr.
Alvin Friesen (VOAC chairperson). Those designated as trustees for the
LAC are Mr. Solon J. Boydston (LAC member), Ms. Darlene V. Ohnemus (LAC
member), Mr. David R. Giller (LAC member), Mr. Alvin Friesen (LAC
member), Mr. Charles R. Bell (LAC member), and Mr. Christopher R. Frame
(LAC member). The trustees shall continue in their capacity until
discharged by the Secretary.
The remainder of the reserves, after immediate expenses are paid,
will be held by the trustees to be used to cover unforeseen,
outstanding expenses obligated by the committees.
It is also found and determined upon good cause that it is
impracticable, unnecessary, and contrary to the public interest to give
preliminary notice or to engage in further public procedure prior to
putting this action into effect and that good cause exists for not
postponing the effective date of this action until 30 days after
publication because: (1) Growers and handlers are aware of this action
since notice was given to Congress and the termination was announced in
a press release issued by the Secretary on May 16, 1994; (2) this
action relieves restrictions on handlers by terminating the
requirements of the marketing orders regulating the handling of
California-Arizona navel oranges, Valencia oranges, and lemons; and (3)
no useful purpose would be served by delaying this action.
Based on available information, the Administrator of the AMS has
determined that this action will not have a significant economic impact
on a substantial number of small entities.
List of Subjects
7 CFR Parts 907 and 908
Marketing agreements, Oranges, Reporting and recordkeeping
requirements.
7 CFR Part 910
Lemons, Marketing agreements, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, under the authority of 7
U.S.C. 601-674, 7 CFR Parts 907, 908, and 910 are amended as follows:
PART 907--[REMOVED]
1. Part 907--Navel Oranges Grown in Arizona and Designated Part of
California is removed.
PART 908--[REMOVED]
2. Part 908--Valencia Oranges Grown in Arizona and Designated Part
of California is removed.
PART 910--[REMOVED]
3. Part 910--Lemons Grown in California and Arizona is removed.
Dated: August 22, 1994.
Patricia Jensen,
Acting Assistant Secretary, Marketing and Inspection Services.
[FR Doc. 94-21079 Filed 8-25-94; 8:45 am]
BILLING CODE 3410-02-P