[Federal Register Volume 61, Number 90 (Wednesday, May 8, 1996)]
[Rules and Regulations]
[Pages 20718-20719]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-11462]



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DEPARTMENT OF AGRICULTURE
7 CFR Part 979

[Docket No. FV96-979-1FIR]


Melons Grown in South Texas; Change in Cantaloup Container 
Requirements

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: The Department of Agriculture (Department) is adopting as a 
final rule, without change, the provisions of an interim final rule 
that changed the container requirements for cantaloups grown in South 
Texas under Marketing Order No. 979 by increasing the depth of 
cantaloup cartons from 10\3/8\ to 11\3/8\ inches. The South Texas Melon 
Committee (committee), the agency that locally administers the 
marketing order for melons grown in South Texas, unanimously 
recommended this change. That change allowed handlers to use deeper 
cartons in shipping larger cantaloups. The use of deeper cartons is 
expected to result in less damage during packing and shipment and 
foster buyer confidence. The interim final rule also corrected 
telephone area codes and removed out-of-date handler assessment 
information.

EFFECTIVE DATE: June 7, 1996.

FOR FURTHER INFORMATION CONTACT: Belinda G. Garza, Marketing Order 
Administration Branch, Fruit and Vegetable Division, AMS, USDA, 1313 
East Hackberry, McAllen, TX 78501, telephone 210-682-2833, FAX 210-682-
5942, or Robert F. Matthews, Marketing Order Administration Branch, 
Fruit and Vegetable Division, AMS, USDA, P.O. Box 96456, room 2523-S, 
Washington, DC 20090-6456, telephone 202-690-0464, FAX 202-720-5698.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing 
Agreement No. 156 and Order No. 979 (7 CFR part 979) regulating the 
handling of melons grown in South Texas, hereinafter referred to as the 
``order.'' The 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 rule 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 
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 the date of the entry of the ruling.
    Pursuant to the 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.

[[Page 20719]]

    There are 27 handlers of South Texas melons who are subject to 
regulation under the marketing order and 30 producers in the production 
area. Small agricultural service firms, which include 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 South 
Texas melons may be classified as small entities.
    At a public meeting on December 12, 1995, the committee unanimously 
recommended, under the authority of Sec. 979.52 of the order, 
increasing the depth of cantaloup cartons. Section 979.304(b)(1) 
specified that the depth of cantaloup cartons could be not more than 
10\3/8\ nor less than 9\3/4\ inches. A tolerance of \1/4\ inch was 
permitted. The committee recommended a one inch increase in depth to 
11\3/8\ inches.
    In recent years, buyers have requested increased supplies of larger 
cantaloups. Handlers had experienced difficulty in packing larger 
cantaloups without bruising because the container depth did not allow 
sufficient room for the larger fruit and ice packed with the cantaloups 
to keep them cool. Also, without adequate carton space, proper stacking 
on pallets was more difficult and compression damage often occurred to 
the cantaloups when loading and shipping. Increasing the depth of 
cantaloup cartons by one inch to 11\3/8\ inches allows for proper 
stacking and delivery of cantaloups without bruising and other damage. 
This change is expected to foster buyer satisfaction and confidence. 
Handlers will not be prevented from using their current supply of 
smaller cartons if they desire.
    Section 979.304(c)(4) designates inspection stations in Alamo and 
Laredo, for handlers who do not have permanent packing facilities 
recognized by the committee. The telephone area codes specified for 
Alamo and Laredo were not correct. The interim final rule amended 
Sec. 979.304(c)(4) to correct those area codes from (502) and (512), 
respectively, to (210).
    Section 979.304(c)(5) specified that handlers shall pay assessments 
on all assessable melons according to the provisions of Sec. 979.42, at 
the rate of \3/4\ cent per carton. The \3/4\ cent per carton rate of 
assessment has not been in effect for a number of years. The current 
rate of assessment is 7 cents per carton. Also, because the assessment 
rate is established by the Department in a separate rulemaking document 
and handlers are informed of the rate by the committee through handler 
notices, the rate of assessment does not need to be referenced in these 
provisions. Therefore, the words ``at the rate of \3/4\ cent per 
carton'' in Sec. 979.304(c)(5) were removed.
    The interim final rule was published in the Federal Register on 
February 28, 1996 (61 FR 7408). That rule amended Sec. 979.304 to 
change the container requirements for cantaloups, to correct the 
telephone area codes, and to remove the out-of-date handler assessment 
information. That rule provided that interested persons could file 
comments through March 29, 1996. No comments were received.
    Based on the above, the Agricultural Marketing Service 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 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 979

    Marketing agreements, Melons, Reporting and recordkeeping 
requirements.

    For the reason set forth in the preamble, 7 CFR part 979 is amended 
as follows:

PART 979--MELONS GROWN IN SOUTH TEXAS

    Accordingly, the interim final rule amending Sec. 979.304 which was 
published at 61 FR 7408 on February 28, 1996, is adopted as a final 
rule without change.

    Dated: May 2, 1996.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 96-11462 Filed 5-7-96; 8:45 am]
BILLING CODE 3410-02-P