Oranges, Grapefruit, Tangerines, and Pummelos Grown in Florida; Establishment of Reporting Requirements and New Information Collection, 27159-27163 [2020-09346]

Download as PDF 27159 Proposed Rules Federal Register Vol. 85, No. 89 Thursday, May 7, 2020 This section of the FEDERAL REGISTER contains notices to the public of the proposed issuance of rules and regulations. The purpose of these notices is to give interested persons an opportunity to participate in the rule making prior to the adoption of the final rules. DEPARTMENT OF AGRICULTURE Agricultural Marketing Service 7 CFR Parts 905 [Doc. No. AMS–SC–19–0008; SC19–905–1 PR] Oranges, Grapefruit, Tangerines, and Pummelos Grown in Florida; Establishment of Reporting Requirements and New Information Collection Agricultural Marketing Service, USDA. ACTION: Proposed rule. AGENCY: This proposed rule invites comments on a recommendation from the Citrus Administrative Committee (Committee) to establish reporting requirements under the Federal marketing order for oranges, grapefruit, tangerines, and pummelos grown in Florida. This action would require Florida citrus handlers who handle citrus grown within the production area to register with the Committee. This proposal also announces the Agricultural Marketing Service’s (AMS) intention to request approval from the Office of Management and Budget (OMB) of a new information collection. DATES: Comments must be received by July 6, 2020. Pursuant to the Paperwork Reduction Act, comments on the information collection burden must be received by July 6, 2020. ADDRESSES: Interested persons are invited to submit written comments concerning this proposal. Comments must be sent to the Docket Clerk, Marketing Order and Agreement Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue SW, STOP 0237, Washington, DC 20250–0237; Fax: (202) 720–8938; or internet: https://www.regulations.gov. All comments should reference the document 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 khammond on DSKJM1Z7X2PROD with PROPOSALS SUMMARY: VerDate Sep<11>2014 16:10 May 06, 2020 Jkt 250001 Docket Clerk during regular business hours, or can be viewed at: https:// www.regulations.gov. All comments submitted in response to this proposal will be included in the record and will be made available to the public. Please be advised that the identity of the individuals or entities submitting the comments will be made public on the internet at the address provided above. FOR FURTHER INFORMATION CONTACT: Jennie M. Varela, Marketing Specialist, or Christian D. Nissen, Regional Director, Southeast Marketing Field Office, Marketing Order and Agreement Division, Specialty Crops Program, AMS, USDA; Telephone: (863) 324– 3375, Fax: (863) 291–8614, or Email: Jennie.Varela@usda.gov or Christian.Nissen@usda.gov. Small businesses may request information on complying with this regulation by contacting Richard Lower, Marketing Order and Agreement Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue SW, STOP 0237, Washington, DC 20250–0237; Telephone: (202) 720– 2491, Fax: (202) 720–8938, or Email: Richard.Lower@usda.gov. SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553, proposes an amendment to regulations issued to carry out a marketing order as defined in 7 CFR 900.2(j). This proposed rule is issued under Marketing Order No. 905, as amended (7 CFR part 905), regulating the handling of oranges, grapefruit, tangerines, and pummelos grown in Florida. Part 905 (referred to as 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 Committee locally administers the Order and is comprised of producers and handlers of citrus operating within the area of production, and a public member. The Department of Agriculture (USDA) is issuing this proposed rule in conformance with Executive Orders 13563 and 13175. This action falls within a category of regulatory actions that the Office of Management and Budget (OMB) exempted from Executive Order 12866 review. Additionally, because this proposed rule does not meet the definition of a significant regulatory action, it does not trigger the requirements contained in Executive Order 13771. See OMB’s Memorandum PO 00000 Frm 00001 Fmt 4702 Sfmt 4702 titled ‘‘Interim Guidance Implementing Section 2 of the Executive Order of January 30, 2017, titled ‘Reducing Regulation and Controlling Regulatory Costs’ ’’ (February 2, 2017). This proposed rule has been reviewed under Executive Order 12988, Civil Justice Reform. This proposed rule is not intended to have retroactive effect. 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 a marketing order may file with USDA a petition stating that the marketing order, any provision of the marketing order, or any obligation imposed in connection with the marketing order, is not in accordance with law and request a modification of the marketing order or to be exempted therefrom. A handler is afforded the opportunity for a hearing on the petition. After the hearing, USDA 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 USDA’s ruling on the petition, provided an action is filed not later than 20 days after the date of the entry of the ruling. This proposed rule would establish handler reporting requirements under the Order. This action would require Florida citrus handers to register annually with the Committee. This would allow the Committee to verify citrus handler information and would assist with the administration of the Order, including compliance. These changes were unanimously recommended by the Committee at a public meeting on November 14, 2019. Section 905.7 of the Order provides the authority to require handlers to be registered with the Committee pursuant to rules recommended by the Committee and approved by the Secretary. This proposed rule would use this authority to establish a new § 905.107 in the administrative provisions of the Order, which would require Florida citrus handlers to be registered with the Committee at the beginning of each fiscal year and establish the requirements for registration. It would also require that handlers must be registered and obtain the Committee’s certification as a registered handler to E:\FR\FM\07MYP1.SGM 07MYP1 khammond on DSKJM1Z7X2PROD with PROPOSALS 27160 Federal Register / Vol. 85, No. 89 / Thursday, May 7, 2020 / Proposed Rules ship any citrus outside the production area. A final rule published in the Federal Register on March 1, 2016, (81 FR 10451) amended the Order to, in part, provide the authority to the Committee to require handlers to register with the Committee. Based on the formal rulemaking hearing record, the Committee recommended this action to provide an accurate and timely record of handlers for the purposes of fostering more efficient communication with handlers and strengthening the compliance provisions of the Order. The addition of this proposed authority, along with the other amendments included in the 2016 amendatory action, were supported by 96 percent of the growers voting and by 99 percent of the volume voted in the amendatory grower referendum. The Committee met on November 14, 2019, and discussed establishing a requirement for handlers to register with the Committee under the Order. The issue had been raised over the course of previous meetings and Committee members recognized the need to maintain an accurate list of handlers in operation for the purposes of administering the Order and communicating with the industry. The Committee believes requiring handlers to register with the Committee at the beginning of each fiscal period would provide current and accurate handler information, improve communication between the Committee and the handlers, and assist with administering the Order, including compliance. Currently, the Committee depends on third-party handler data from the Florida Department of Agriculture and Consumer Services (FDACS). FDACS licenses handlers pursuant to a State program and carries out the inspections required by the Order. The Committee contracts with FDACS annually to provide handler data and shipment information used to calculate handler assessments. However, given the continuing changes in the industry, and the timing of when this information is collected by FDACS, it is not always current and accurate. During the above-mentioned Committee meetings, participants discussed that consolidation and other changes within the Florida citrus handler community have made it difficult for the Committee to maintain accurate information. Implementing the proposed handler registration in the Order would assist the Committee in its administration of the Order by updating handler contact information each fiscal period. VerDate Sep<11>2014 16:10 May 06, 2020 Jkt 250001 In recent years, citrus greening has significantly reduced Florida’s fresh citrus production. For fiscal year 2012– 2013, Committee data indicate fresh citrus production totaled 5.9 million boxes and was being handled by 45 handler businesses. By fiscal year 2018– 2019, fresh citrus production dropped to 4.5 million boxes handled by approximately 20 handlers. These numbers obtained from the Committee represent a 24-percent decline in fresh production and a 60-percent decline in the number of handlers over a five-year period. Due to the rapid consolidation and changing resources within the fresh citrus industry, the Committee is concerned that FDACS may, at some point, stop collecting and providing handler information. Implementing a handler registration requirement would serve as an efficient means to obtain accurate and timely handler data and assist the Committee in administering the Order relying on its own information and resources. In accordance with the proposed registered handler requirements, handlers would need to apply for registration with the Committee prior to beginning of each fiscal year on forms provided by the Committee. The application would require handler information, including: The address for each packing facility; contact information (including telephone and email if available); and handler business classification as an individual, partnership, corporation or cooperative. Handlers would need to submit this form to the Committee no later than August 1 of each fiscal period. To meet the requirements to become a registered handler, the handler’s facilities would need to be in the production area in permanent, nonportable buildings with nonportable equipment for grading, sizing, washing and packing Florida-grown citrus. Additionally, each handler would be annually inspected by Committee staff or its authorized agents to verify compliance with these requirements. The Committee indicated all current handlers already meet these criteria. Committee staff would also verify that all assessments, reporting, and any other Order requirements have been met by the handler prior to approval of the application. If the applicant meets all of the above criteria, the applicant would be certified as a registered handler and be notified in writing by email or mail. The Committee also agreed that the registered handler requirement would assist with administering compliance under the Order, including encouraging the timely payment of assessments. PO 00000 Frm 00002 Fmt 4702 Sfmt 4702 While the Committee and industry are not currently experiencing major compliance issues, given the ongoing changes to the industry and resource allocation, the Committee believes unforeseen compliance issues may arise. The handler registration requirement would serve as a preemptive measure for compliance and enforcement. With this proposed change, the Committee would be able to cancel or deny a handler’s registration certification, for good cause, with approval of Secretary. Should the handler fail to pay assessments within 90 days of the date of invoice, fail to provide required reports, or no longer have adequate facilities, the Committee would have the authority to cancel a registered handler’s certification with the approval of the Secretary. Under the Committee’s compliance plan, Committee staff currently refers cases of nonpayment of assessments to USDA for possible enforcement action at 60 days after the invoice is issued. The Committee determined that allowing an additional 30 days before cancellation of registration would afford handlers sufficient notice and opportunity to comply with the assessment requirements. The enforcement process for failure to submit required reports is similar. Should a handler ship fruit without inspection, the handler’s certification would be cancelled for a minimum of two weeks. In this type of situation where there is no opportunity to correct the violation, the Committee determined that a brief cancellation of certification was the most appropriate penalty. Handlers could remain in business but would not be able to ship regulated citrus out of State. The time period of cancellation could be extended, up to the maximum of the remainder of the shipping season, with the approval of the Secretary, if the violation were more serious or repetitive. If a handler’s certification is cancelled, the Committee would notify the handler in writing outlining the effective date and the reason(s) for the cancellation. If the handler corrects the deficiencies which resulted in cancellation, and notifies the Committee in writing of the correction, the Committee would recertify the handler after verification of compliance. If the handler opts to appeal the cancellation, the handler may do so by appealing to the Secretary. If a handler is not certified as a registered handler, inspection certificates issued for lots handled by that handler would include a statement to that effect. The inspection certificate for all such lots would read ‘‘Fails to E:\FR\FM\07MYP1.SGM 07MYP1 Federal Register / Vol. 85, No. 89 / Thursday, May 7, 2020 / Proposed Rules khammond on DSKJM1Z7X2PROD with PROPOSALS meet the requirements of Marketing Order 905 because the handler is not a registered handler.’’ These failing certificates would be issued, regardless of the grade, size or container of the citrus inspected. The Committee would keep FDACS apprised of each handler’s certification status. The FDACS Office of Agricultural Law Enforcement releases citrus shipments for interstate commerce only if the inspection certificates indicate the shipments meet the Order’s requirements. Thus, if the proposal is implemented, handlers not certified as a registered handler by the Committee would not be able to ship regulated citrus outside of the regulated area. This proposed action should serve as a strong tool to encourage compliance with the Order requirements, helping the industry to avoid potential compliance issues moving forward, or to address compliance issues without having to move to other enforcement actions. Any handler who is denied a registered handler certificate or has a registered handler certificate cancelled would be able to appeal to the Secretary for consideration. An appeal would have to be submitted in writing to the Secretary within 90 days of the denial. After the appeal request is reviewed and considered by the Secretary, the handler would be notified of the Secretary’s decision in writing. This proposed action would require that all Florida citrus handlers register with the Committee annually. Establishing this handler registration requirement would help facilitate operations under the Order and assist with compliance, including ensuring that product is correctly inspected, and assessments are paid in a timely manner. Initial Regulatory Flexibility Analysis Pursuant to requirements set forth in the Regulatory Flexibility Act (RFA) (5 U.S.C. 601–612), the Agricultural Marketing Service (AMS) has considered the economic impact of this action on small entities. Accordingly, AMS has prepared this initial regulatory flexibility analysis. The purpose of the RFA is to fit regulatory actions to the scale of businesses subject to such actions in order that small businesses will not be unduly or disproportionately burdened. Marketing orders issued pursuant to the Act, and the rules issued thereunder, are unique in that they are brought through group action of essentially small entities acting on their own behalf. There are approximately 20 handlers of Florida citrus who are subject to regulation under the Order and VerDate Sep<11>2014 16:10 May 06, 2020 Jkt 250001 approximately 500 citrus producers in the regulated area. Small agricultural service firms are defined by the Small Business Administration (SBA) as those having annual receipts of less than $30,000,000, and small agricultural producers are defined as those having annual receipts of less than $1,000,000 (13 CFR 121.201). According to data from the National Agricultural Statistics Service (NASS), the industry, and the Committee, the weighted average free on board price for fresh Florida citrus for the 2018–19 season was approximately $16.69 per carton with total shipments of around 9 million cartons. Using the number of handlers, and assuming a normal bellcurve distribution, the majority of handlers have average annual receipts of less than $30,000,000 ($16.69 times 9,023,704 cartons equals $150,605,620 divided by 20 handlers equals $7,530,281 per handler). In addition, based on the NASS data, the weighted average grower price for the 2018–19 season was estimated at $11.05 per carton of fresh citrus. Based on grower price, shipment data, and the total number of Florida citrus growers, and assuming a normal bell-curve distribution, the average annual grower revenue is below $1,000,000 ($11.05 × 9,023,704 million cartons equals $99,711,929 divided by 500 growers equals $199,424 per grower). Thus, the majority of Florida citrus handlers and growers may be classified as small entities. This proposed rule would establish handler reporting requirements in the Order. This action would require Florida citrus handlers to register annually with the Committee. This would allow the Committee to collect information to verify who is handling Florida citrus and would be used to assist with administering the Order, including compliance. This proposal would establish a new § 905.107 in Subpart B, Administrative Requirements, of the Order using the authority provided in § 905.7. It is not anticipated that this change would result in any significant cost to the industry. Requiring handlers to register with the Committee would impose an increase in the reporting burden on all Florida citrus handlers. However, the information requested is readily available and would only be required to be submitted once a year. Regarding the other requirements to qualify as a registered handler, such as nonportable buildings and having the necessary equipment to prepare fruit for market, all current handlers already meet these requirements. Consequently, no additional cost would be needed to PO 00000 Frm 00003 Fmt 4702 Sfmt 4702 27161 comply with the requirements to be a registered handler. Should a handler fall out of compliance with Order requirements and lose its registered handler status, there could be some cost relative to not being able to ship regulated citrus outside of the regulated area. However, such a handler would still be able to market fruit within the regulated area and be able to address and rectify the problems that resulted in the cancellation of its registered handler status. Therefore, these costs should be minimal, and only impact handlers that have failed to comply with requirements. This proposed action would assist the Committee in administering compliance with the Order, including the timely collection of assessments. The benefits of this proposed rule are expected to be equally available to all citrus growers and handlers, regardless of their size. The Committee discussed the alternative of not establishing a registered handler requirement but determined that obtaining current and accurate handler information and having another enforcement tool under the Order are important. The Committee considered multiple options regarding the potential problem of a handler shipping fruit without inspection. The Committee discussed cancelling a handler’s certification indefinitely or for the rest of the fiscal period. However, the Committee recognized that there could be varying degrees of noncompliance with the inspection requirement. The Committee determined that the two-week cancellation minimum would serve as an appropriate deterrent and afford the Committee the flexibility to extend that period up to the maximum of the end of the shipping season, if the handler repeatedly violates the inspection requirements or any other requirements of the Order. The Committee also discussed several options regarding the proposed appeals process, ranging from 30 days to appeal to an open-ended process, and whether Committee members should review appeals themselves. After discussion, the Committee determined that a 90-day period from the date of denial or cancellation would allow the handler sufficient time to contact the Committee staff and resolve the issue in a timely manner. To maintain confidentiality of information, the Committee also agreed that members themselves would not be involved in the appeal review process. The Committee agreed that an appeal could be made to the Secretary. Thus, the alternatives were rejected. E:\FR\FM\07MYP1.SGM 07MYP1 27162 Federal Register / Vol. 85, No. 89 / Thursday, May 7, 2020 / Proposed Rules khammond on DSKJM1Z7X2PROD with PROPOSALS This proposal would establish one new reporting requirement for handlers and would require one new Committee form. Therefore, this proposed rule would impose an increase in the reporting burden for all handlers, which is discussed in the Paperwork Reduction Act section of this document. As with all Federal marketing order programs, reports and forms are periodically reviewed to reduce information requirements and duplication by industry and public sector agencies. USDA has not identified any relevant Federal rules that duplicate, overlap, or conflict with this rule. AMS is committed to complying with the E-Government Act, to promote the use of the internet and other information technologies to provide increased opportunities for citizen access to Government information and services, and for other purposes. The 2019 Committee meeting was widely publicized throughout the citrus industry, and all interested persons were invited to attend the meeting and participate in Committee deliberations. Like all Committee meetings, the November 14, 2019 meeting was a public meeting, and all entities, both large and small, were able to express their views on this issue, and both producer and handler Committee members were able to assist in the development of the recommended form and procedures submitted to USDA. Interested persons are invited to submit comments on this proposed rule, including the regulatory and information collection impacts of this action on small businesses. A small business guide on complying with fruit, vegetable, and specialty crop marketing agreements and orders may be viewed at: https:// www.ams.usda.gov/rules-regulations/ moa/small-businesses. Any questions about the compliance guide should be sent to Richard Lower at the previously mentioned address in the FOR FURTHER INFORMATION CONTACT section. A 60-day comment period is provided to allow interested persons to respond to this proposal. All written comments timely received 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), this notice announces AMS’s intent to request approval from OMB for a new information collection under OMB No. 0581–NEW. The new form will be merged with the forms VerDate Sep<11>2014 16:10 May 06, 2020 Jkt 250001 currently approved under OMB No. 0581–0189 Fruit Crops. This proposed rule would create a new form for Florida citrus handlers, titled Application for Registration as Fresh Citrus Handler. Title: Oranges, Grapefruit, Tangerines, and Pummelos Grown in Florida; Marketing Order No. 905. OMB Number: 0581–NEW. Type of Request: New Collection. Abstract: The information 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 Federal marketing order for oranges, grapefruit, tangerines, and pummelos grown in Florida. USDA is responsible for overseeing the Order regulating the handling of Florida citrus. The Order is effective under the Act. The Committee unanimously recommended that Florida citrus handlers subject to the Order provide the Committee with location and contact information at the beginning of each fiscal period. This form, titled ‘‘Application for Registration as Fresh Citrus Handler’’ would be submitted directly to the Committee once each year no later than August 1. The report would provide the Committee with information on each handler location, the type of business, and the names and contact information of individuals having a financial interest in each business. The Order authorizes the Committee to collect certain information from handlers. The information collected would only be used by authorized representatives of the USDA, including the AMS Specialty Crops Program regional and headquarters staff, and authorized employees of the Committee. All proprietary information would be kept confidential in accordance with the Act and the Order. The proposed request for new information collection under the Order is as follows: Application for Registration as Fresh Citrus Handler Estimate of Burden: Public reporting burden for this collection of information is estimated to be an average of 0.165 hours per response. Respondents: Handlers subject to the marketing order regulating oranges, grapefruit, tangerines, and pummelos grown in Florida. Estimated Number of Respondents: 20. Estimated Number of Responses per Respondent: 1. Estimated Total Annual Responses: 20. PO 00000 Frm 00004 Fmt 4702 Sfmt 4702 Estimated Total Annual Burden on Respondents: 3.3 hours. Comments are invited on: (1) Whether the proposed collection of information is necessary for the proper performance of the functions of the Agency, including whether the information will have practical utility; (2) the accuracy of the Agency’s estimate of the burden of the proposed collection of information, including the validity of the methodology and assumptions used; (3) ways to enhance the quality, utility, and clarity of the information to be collected; and (4) ways to minimize the burden of the collection of information on those who are to respond, including the use of appropriate automated, electronic, mechanical, or other technological collection techniques or other forms of information technology. Comments should reference OMB No. 0581–NEW and the Marketing Order for Oranges, Grapefruit, Tangerines, and Pummelos Grown in Florida and should be sent to the USDA in care of the Docket Clerk at the previously mentioned address or at https:// www.regulations.gov. All responses to this notice will be summarized and included in the request for OMB approval. All comments received will become a matter of public record and will be available for public inspection during regular business hours at the address of the Docket Clerk or at https://www.regulations.gov. If this proposed rule is finalized, this information collection will be merged with the forms currently approved under OMB No. 0581–0189, Fruit Crops. List of Subjects 7 CFR Part 905 Grapefruit, Marketing agreements, Oranges, Pummelos, Reporting and recordkeeping requirements, Tangerines. For the reasons set forth in the preamble, 7 CFR part 905 is proposed to be amended as follows: PART 905—ORANGES, GRAPEFRUIT, TANGERINES, AND PUMMELOS GROWN IN FLORIDA 1. The authority citation for 7 CFR part 905 continues to read as follows: ■ Authority: 7 U.S.C. 601–674. ■ 2. Add § 905.107 to read as follows: § 905.107 Registered handler certification. Each handler who handles citrus grown in the production area must be certified as a registered handler by the Committee in order to ship such regulated citrus outside of the regulated area. A handler who is certified as a registered handler is a handler who has E:\FR\FM\07MYP1.SGM 07MYP1 khammond on DSKJM1Z7X2PROD with PROPOSALS Federal Register / Vol. 85, No. 89 / Thursday, May 7, 2020 / Proposed Rules adequate facilities to meet the requirements for preparing citrus for market, obtains inspection on citrus handled, agrees to handle citrus in compliance with the Order’s grade, size and container requirements, pays applicable assessments on a timely basis, submits reports required by the Committee, and agrees to comply with other regulatory requirements on the handling of citrus grown in the production area. (a) Eligibility. Based on the criteria specified in this section, the Committee shall determine eligibility for certification as a registered handler. The Committee or its authorized agent shall inspect a handler’s facilities to determine if the facilities are adequate for preparing citrus for market. To be adequate for such purposes, the facilities must be permanent, nonportable buildings located in the production area with equipment that is nonportable for the proper washing, grading, sizing and packing of citrus grown in the production area. (b) Application for certification. Application for certification shall be executed by the handler by August 1st of fiscal period and filed with the Committee on a form, prescribed by and available at the principal office of the Committee, containing the following information: (1) Business name, (2) Address of handling facilities (including telephone, email and facsimile number), (3) Mailing address (if different from handling facility address), (4) Number of years in the citrus business in Florida, (5) Type of business entity, and (6) Names of senior officers, partners, or principal owners with financial interest in the business. (c) Determination of certification. If the Committee determines from available information that an applicant meets the criteria specified in this section, the applicant shall be certified as a registered handler and informed by written notice from the Committee. Certification is effective for a fiscal period unless the Committee determines, based on criteria herein, that cancellation is warranted. If certification is denied, the handler shall be informed by the Committee in writing, stating the reasons for denial. (d) Cancellation of certification. A registered handler’s certification shall be cancelled by the Committee, with the approval of the Secretary, if the handler fails to pay assessments within 90 days of the invoice date, fails to provide reports to the Committee, or no longer has adequate facilities as described in VerDate Sep<11>2014 16:10 May 06, 2020 Jkt 250001 this section. Cancellation of a handler’s certification shall be made in writing to the handler and shall specify the reason(s) for and effective date of the cancellation. Cancellation shall be for a minimum two-week period if a handler is found to be shipping without proper inspection. The Committee shall recertify the handler’s registration at such time as the handler corrects the deficiencies which resulted in the cancellation and the Committee or its agent verifies compliance. The Committee shall notify the handler in writing of its recertification. (e) Inspection certification. During any period in which the handling of citrus is regulated pursuant to this part, no handler shall obtain an inspection certifying that the handler’s citrus meets the requirements of the Order unless the handler has been certified as a registered handler by the Committee. Any person who is not certified as a registered handler may receive inspection from the Federal-State Inspection Service, however, the inspection certificate shall state ‘‘Fails to meet the requirements of Marketing Order No. 905 because the handler is not a registered handler.’’ (f) Contrary shipping. The Committee may cancel or deny a handler’s registration if the handler has shipped citrus contrary to the provisions of this part. The cancellation or denial of a handler’s registration shall be effective for a minimum of two weeks and not exceed the applicable shipping season as determined by the Committee. (g) Appeals. Any handler who has been denied a handler’s registration or who has had a handler’s registration cancelled, may appeal to the Secretary, supported by any arguments and evidence the handler may wish to offer as to why the application for certification or recertification should have been approved. The appeal shall be in writing and received at the Specialty Crops Program office in Washington, DC within 90 days of the date of notification of denial or cancellation. Bruce Summers, Administrator, Agricultural Marketing Service. [FR Doc. 2020–09346 Filed 5–6–20; 8:45 am] DEPARTMENT OF AGRICULTURE Agricultural Marketing Service 7 CFR Part 1250 [Document No. AMS–LP–19–0113] Egg Research and Promotion; Reapportionment Agricultural Marketing Service, USDA. ACTION: Proposed rule. AGENCY: This proposed rule would adjust representation on the American Egg Board (Board), established under the Egg Research and Consumer Information Act of 1974 (Act), and outlines changes to geographic areas based on sustained changes in egg production in several States. The Egg Research and Promotion Order (Order) establishes a Board composed of 18 members. Currently, the 48 contiguous States are divided into 6 areas with 3 members representing each area. This proposed rule would reduce the number of geographic areas from six to three. The number of Board members representing each geographic area would change to six. The total Board membership would remain at 18. DATES: Submit comments on or before June 8, 2020. ADDRESSES: Comments should be posted online at www.regulations.gov. Comments received will be posted without change, including any personal information provided. All comments should reference the docket number AMS–LP–19–0113, the date of submission, and the page number of this issue of the Federal Register. Comments may also be sent to Craig Shackelford, Agricultural Marketing Specialist; Research and Promotion Division; Livestock and Poultry Program, AMS, USDA; Room 2608–S, STOP 0251, 1400 Independence Avenue SW, Washington, DC 20250–0251; or via fax to (202) 720– 1125. Comments will be made available for public inspection at the above address during regular business hours or via the internet at www.regulations.gov. FOR FURTHER INFORMATION CONTACT: Craig Shackelford, Research and Promotion Division, at (470) 315–4246; fax (202) 720–1125; or by email at Craig.shackelford@usda.gov. SUPPLEMENTARY INFORMATION: SUMMARY: Background and Proposed Action BILLING CODE P PO 00000 27163 The Act authorizes the Secretary to establish an Egg Board composed of egg producers or representatives of egg producers appointed by the Secretary so that the representation of egg producers Frm 00005 Fmt 4702 Sfmt 4702 E:\FR\FM\07MYP1.SGM 07MYP1

Agencies

[Federal Register Volume 85, Number 89 (Thursday, May 7, 2020)]
[Proposed Rules]
[Pages 27159-27163]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-09346]


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Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

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Federal Register / Vol. 85, No. 89 / Thursday, May 7, 2020 / Proposed 
Rules

[[Page 27159]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 905

[Doc. No. AMS-SC-19-0008; SC19-905-1 PR]


Oranges, Grapefruit, Tangerines, and Pummelos Grown in Florida; 
Establishment of Reporting Requirements and New Information Collection

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This proposed rule invites comments on a recommendation from 
the Citrus Administrative Committee (Committee) to establish reporting 
requirements under the Federal marketing order for oranges, grapefruit, 
tangerines, and pummelos grown in Florida. This action would require 
Florida citrus handlers who handle citrus grown within the production 
area to register with the Committee. This proposal also announces the 
Agricultural Marketing Service's (AMS) intention to request approval 
from the Office of Management and Budget (OMB) of a new information 
collection.

DATES: Comments must be received by July 6, 2020. Pursuant to the 
Paperwork Reduction Act, comments on the information collection burden 
must be received by July 6, 2020.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposal. Comments must be sent to the Docket Clerk, 
Marketing Order and Agreement Division, Specialty Crops Program, AMS, 
USDA, 1400 Independence Avenue SW, STOP 0237, Washington, DC 20250-
0237; Fax: (202) 720-8938; or internet: https://www.regulations.gov. 
All comments should reference the document 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, or can be viewed at: https://www.regulations.gov. All 
comments submitted in response to this proposal will be included in the 
record and will be made available to the public. Please be advised that 
the identity of the individuals or entities submitting the comments 
will be made public on the internet at the address provided above.

FOR FURTHER INFORMATION CONTACT: Jennie M. Varela, Marketing 
Specialist, or Christian D. Nissen, Regional Director, Southeast 
Marketing Field Office, Marketing Order and Agreement Division, 
Specialty Crops Program, AMS, USDA; Telephone: (863) 324-3375, Fax: 
(863) 291-8614, or Email: [email protected] or 
[email protected].
    Small businesses may request information on complying with this 
regulation by contacting Richard Lower, Marketing Order and Agreement 
Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue 
SW, STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-2491, 
Fax: (202) 720-8938, or Email: [email protected].

SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553, 
proposes an amendment to regulations issued to carry out a marketing 
order as defined in 7 CFR 900.2(j). This proposed rule is issued under 
Marketing Order No. 905, as amended (7 CFR part 905), regulating the 
handling of oranges, grapefruit, tangerines, and pummelos grown in 
Florida. Part 905 (referred to as 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 Committee locally 
administers the Order and is comprised of producers and handlers of 
citrus operating within the area of production, and a public member.
    The Department of Agriculture (USDA) is issuing this proposed rule 
in conformance with Executive Orders 13563 and 13175. This action falls 
within a category of regulatory actions that the Office of Management 
and Budget (OMB) exempted from Executive Order 12866 review. 
Additionally, because this proposed rule does not meet the definition 
of a significant regulatory action, it does not trigger the 
requirements contained in Executive Order 13771. See OMB's Memorandum 
titled ``Interim Guidance Implementing Section 2 of the Executive Order 
of January 30, 2017, titled `Reducing Regulation and Controlling 
Regulatory Costs'[thinsp]'' (February 2, 2017).
    This proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. This proposed rule is not intended to have 
retroactive effect.
    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 a marketing order may file with USDA a 
petition stating that the marketing order, any provision of the 
marketing order, or any obligation imposed in connection with the 
marketing order, is not in accordance with law and request a 
modification of the marketing order or to be exempted therefrom. A 
handler is afforded the opportunity for a hearing on the petition. 
After the hearing, USDA 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 USDA's ruling on the petition, 
provided an action is filed not later than 20 days after the date of 
the entry of the ruling.
    This proposed rule would establish handler reporting requirements 
under the Order. This action would require Florida citrus handers to 
register annually with the Committee. This would allow the Committee to 
verify citrus handler information and would assist with the 
administration of the Order, including compliance. These changes were 
unanimously recommended by the Committee at a public meeting on 
November 14, 2019.
    Section 905.7 of the Order provides the authority to require 
handlers to be registered with the Committee pursuant to rules 
recommended by the Committee and approved by the Secretary. This 
proposed rule would use this authority to establish a new Sec.  905.107 
in the administrative provisions of the Order, which would require 
Florida citrus handlers to be registered with the Committee at the 
beginning of each fiscal year and establish the requirements for 
registration. It would also require that handlers must be registered 
and obtain the Committee's certification as a registered handler to

[[Page 27160]]

ship any citrus outside the production area.
    A final rule published in the Federal Register on March 1, 2016, 
(81 FR 10451) amended the Order to, in part, provide the authority to 
the Committee to require handlers to register with the Committee. Based 
on the formal rulemaking hearing record, the Committee recommended this 
action to provide an accurate and timely record of handlers for the 
purposes of fostering more efficient communication with handlers and 
strengthening the compliance provisions of the Order. The addition of 
this proposed authority, along with the other amendments included in 
the 2016 amendatory action, were supported by 96 percent of the growers 
voting and by 99 percent of the volume voted in the amendatory grower 
referendum.
    The Committee met on November 14, 2019, and discussed establishing 
a requirement for handlers to register with the Committee under the 
Order. The issue had been raised over the course of previous meetings 
and Committee members recognized the need to maintain an accurate list 
of handlers in operation for the purposes of administering the Order 
and communicating with the industry. The Committee believes requiring 
handlers to register with the Committee at the beginning of each fiscal 
period would provide current and accurate handler information, improve 
communication between the Committee and the handlers, and assist with 
administering the Order, including compliance.
    Currently, the Committee depends on third-party handler data from 
the Florida Department of Agriculture and Consumer Services (FDACS). 
FDACS licenses handlers pursuant to a State program and carries out the 
inspections required by the Order. The Committee contracts with FDACS 
annually to provide handler data and shipment information used to 
calculate handler assessments. However, given the continuing changes in 
the industry, and the timing of when this information is collected by 
FDACS, it is not always current and accurate.
    During the above-mentioned Committee meetings, participants 
discussed that consolidation and other changes within the Florida 
citrus handler community have made it difficult for the Committee to 
maintain accurate information. Implementing the proposed handler 
registration in the Order would assist the Committee in its 
administration of the Order by updating handler contact information 
each fiscal period.
    In recent years, citrus greening has significantly reduced 
Florida's fresh citrus production. For fiscal year 2012-2013, Committee 
data indicate fresh citrus production totaled 5.9 million boxes and was 
being handled by 45 handler businesses. By fiscal year 2018-2019, fresh 
citrus production dropped to 4.5 million boxes handled by approximately 
20 handlers. These numbers obtained from the Committee represent a 24-
percent decline in fresh production and a 60-percent decline in the 
number of handlers over a five-year period.
    Due to the rapid consolidation and changing resources within the 
fresh citrus industry, the Committee is concerned that FDACS may, at 
some point, stop collecting and providing handler information. 
Implementing a handler registration requirement would serve as an 
efficient means to obtain accurate and timely handler data and assist 
the Committee in administering the Order relying on its own information 
and resources.
    In accordance with the proposed registered handler requirements, 
handlers would need to apply for registration with the Committee prior 
to beginning of each fiscal year on forms provided by the Committee. 
The application would require handler information, including: The 
address for each packing facility; contact information (including 
telephone and email if available); and handler business classification 
as an individual, partnership, corporation or cooperative. Handlers 
would need to submit this form to the Committee no later than August 1 
of each fiscal period.
    To meet the requirements to become a registered handler, the 
handler's facilities would need to be in the production area in 
permanent, nonportable buildings with nonportable equipment for 
grading, sizing, washing and packing Florida-grown citrus. 
Additionally, each handler would be annually inspected by Committee 
staff or its authorized agents to verify compliance with these 
requirements. The Committee indicated all current handlers already meet 
these criteria. Committee staff would also verify that all assessments, 
reporting, and any other Order requirements have been met by the 
handler prior to approval of the application. If the applicant meets 
all of the above criteria, the applicant would be certified as a 
registered handler and be notified in writing by email or mail.
    The Committee also agreed that the registered handler requirement 
would assist with administering compliance under the Order, including 
encouraging the timely payment of assessments. While the Committee and 
industry are not currently experiencing major compliance issues, given 
the ongoing changes to the industry and resource allocation, the 
Committee believes unforeseen compliance issues may arise. The handler 
registration requirement would serve as a preemptive measure for 
compliance and enforcement.
    With this proposed change, the Committee would be able to cancel or 
deny a handler's registration certification, for good cause, with 
approval of Secretary. Should the handler fail to pay assessments 
within 90 days of the date of invoice, fail to provide required 
reports, or no longer have adequate facilities, the Committee would 
have the authority to cancel a registered handler's certification with 
the approval of the Secretary. Under the Committee's compliance plan, 
Committee staff currently refers cases of nonpayment of assessments to 
USDA for possible enforcement action at 60 days after the invoice is 
issued. The Committee determined that allowing an additional 30 days 
before cancellation of registration would afford handlers sufficient 
notice and opportunity to comply with the assessment requirements. The 
enforcement process for failure to submit required reports is similar.
    Should a handler ship fruit without inspection, the handler's 
certification would be cancelled for a minimum of two weeks. In this 
type of situation where there is no opportunity to correct the 
violation, the Committee determined that a brief cancellation of 
certification was the most appropriate penalty. Handlers could remain 
in business but would not be able to ship regulated citrus out of 
State. The time period of cancellation could be extended, up to the 
maximum of the remainder of the shipping season, with the approval of 
the Secretary, if the violation were more serious or repetitive.
    If a handler's certification is cancelled, the Committee would 
notify the handler in writing outlining the effective date and the 
reason(s) for the cancellation. If the handler corrects the 
deficiencies which resulted in cancellation, and notifies the Committee 
in writing of the correction, the Committee would recertify the handler 
after verification of compliance. If the handler opts to appeal the 
cancellation, the handler may do so by appealing to the Secretary.
    If a handler is not certified as a registered handler, inspection 
certificates issued for lots handled by that handler would include a 
statement to that effect. The inspection certificate for all such lots 
would read ``Fails to

[[Page 27161]]

meet the requirements of Marketing Order 905 because the handler is not 
a registered handler.'' These failing certificates would be issued, 
regardless of the grade, size or container of the citrus inspected. The 
Committee would keep FDACS apprised of each handler's certification 
status.
    The FDACS Office of Agricultural Law Enforcement releases citrus 
shipments for interstate commerce only if the inspection certificates 
indicate the shipments meet the Order's requirements. Thus, if the 
proposal is implemented, handlers not certified as a registered handler 
by the Committee would not be able to ship regulated citrus outside of 
the regulated area. This proposed action should serve as a strong tool 
to encourage compliance with the Order requirements, helping the 
industry to avoid potential compliance issues moving forward, or to 
address compliance issues without having to move to other enforcement 
actions.
    Any handler who is denied a registered handler certificate or has a 
registered handler certificate cancelled would be able to appeal to the 
Secretary for consideration. An appeal would have to be submitted in 
writing to the Secretary within 90 days of the denial. After the appeal 
request is reviewed and considered by the Secretary, the handler would 
be notified of the Secretary's decision in writing.
    This proposed action would require that all Florida citrus handlers 
register with the Committee annually. Establishing this handler 
registration requirement would help facilitate operations under the 
Order and assist with compliance, including ensuring that product is 
correctly inspected, and assessments are paid in a timely manner.

Initial Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS) 
has considered the economic impact of this action on small entities. 
Accordingly, AMS has prepared this initial regulatory flexibility 
analysis.
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened. Marketing orders issued 
pursuant to the Act, and the rules issued thereunder, are unique in 
that they are brought through group action of essentially small 
entities acting on their own behalf.
    There are approximately 20 handlers of Florida citrus who are 
subject to regulation under the Order and approximately 500 citrus 
producers in the regulated area. Small agricultural service firms are 
defined by the Small Business Administration (SBA) as those having 
annual receipts of less than $30,000,000, and small agricultural 
producers are defined as those having annual receipts of less than 
$1,000,000 (13 CFR 121.201).
    According to data from the National Agricultural Statistics Service 
(NASS), the industry, and the Committee, the weighted average free on 
board price for fresh Florida citrus for the 2018-19 season was 
approximately $16.69 per carton with total shipments of around 9 
million cartons. Using the number of handlers, and assuming a normal 
bell-curve distribution, the majority of handlers have average annual 
receipts of less than $30,000,000 ($16.69 times 9,023,704 cartons 
equals $150,605,620 divided by 20 handlers equals $7,530,281 per 
handler).
    In addition, based on the NASS data, the weighted average grower 
price for the 2018-19 season was estimated at $11.05 per carton of 
fresh citrus. Based on grower price, shipment data, and the total 
number of Florida citrus growers, and assuming a normal bell-curve 
distribution, the average annual grower revenue is below $1,000,000 
($11.05 x 9,023,704 million cartons equals $99,711,929 divided by 500 
growers equals $199,424 per grower). Thus, the majority of Florida 
citrus handlers and growers may be classified as small entities.
    This proposed rule would establish handler reporting requirements 
in the Order. This action would require Florida citrus handlers to 
register annually with the Committee. This would allow the Committee to 
collect information to verify who is handling Florida citrus and would 
be used to assist with administering the Order, including compliance. 
This proposal would establish a new Sec.  905.107 in Subpart B, 
Administrative Requirements, of the Order using the authority provided 
in Sec.  905.7.
    It is not anticipated that this change would result in any 
significant cost to the industry. Requiring handlers to register with 
the Committee would impose an increase in the reporting burden on all 
Florida citrus handlers. However, the information requested is readily 
available and would only be required to be submitted once a year. 
Regarding the other requirements to qualify as a registered handler, 
such as nonportable buildings and having the necessary equipment to 
prepare fruit for market, all current handlers already meet these 
requirements. Consequently, no additional cost would be needed to 
comply with the requirements to be a registered handler.
    Should a handler fall out of compliance with Order requirements and 
lose its registered handler status, there could be some cost relative 
to not being able to ship regulated citrus outside of the regulated 
area. However, such a handler would still be able to market fruit 
within the regulated area and be able to address and rectify the 
problems that resulted in the cancellation of its registered handler 
status. Therefore, these costs should be minimal, and only impact 
handlers that have failed to comply with requirements.
    This proposed action would assist the Committee in administering 
compliance with the Order, including the timely collection of 
assessments. The benefits of this proposed rule are expected to be 
equally available to all citrus growers and handlers, regardless of 
their size.
    The Committee discussed the alternative of not establishing a 
registered handler requirement but determined that obtaining current 
and accurate handler information and having another enforcement tool 
under the Order are important.
    The Committee considered multiple options regarding the potential 
problem of a handler shipping fruit without inspection. The Committee 
discussed cancelling a handler's certification indefinitely or for the 
rest of the fiscal period. However, the Committee recognized that there 
could be varying degrees of noncompliance with the inspection 
requirement. The Committee determined that the two-week cancellation 
minimum would serve as an appropriate deterrent and afford the 
Committee the flexibility to extend that period up to the maximum of 
the end of the shipping season, if the handler repeatedly violates the 
inspection requirements or any other requirements of the Order.
    The Committee also discussed several options regarding the proposed 
appeals process, ranging from 30 days to appeal to an open-ended 
process, and whether Committee members should review appeals 
themselves. After discussion, the Committee determined that a 90-day 
period from the date of denial or cancellation would allow the handler 
sufficient time to contact the Committee staff and resolve the issue in 
a timely manner. To maintain confidentiality of information, the 
Committee also agreed that members themselves would not be involved in 
the appeal review process. The Committee agreed that an appeal could be 
made to the Secretary. Thus, the alternatives were rejected.

[[Page 27162]]

    This proposal would establish one new reporting requirement for 
handlers and would require one new Committee form. Therefore, this 
proposed rule would impose an increase in the reporting burden for all 
handlers, which is discussed in the Paperwork Reduction Act section of 
this document.
    As with all Federal marketing order programs, reports and forms are 
periodically reviewed to reduce information requirements and 
duplication by industry and public sector agencies. USDA has not 
identified any relevant Federal rules that duplicate, overlap, or 
conflict with this rule.
    AMS is committed to complying with the E-Government Act, to promote 
the use of the internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services, and for other purposes.
    The 2019 Committee meeting was widely publicized throughout the 
citrus industry, and all interested persons were invited to attend the 
meeting and participate in Committee deliberations. Like all Committee 
meetings, the November 14, 2019 meeting was a public meeting, and all 
entities, both large and small, were able to express their views on 
this issue, and both producer and handler Committee members were able 
to assist in the development of the recommended form and procedures 
submitted to USDA. Interested persons are invited to submit comments on 
this proposed rule, including the regulatory and information collection 
impacts of this action on small businesses.
    A small business guide on complying with fruit, vegetable, and 
specialty crop marketing agreements and orders may be viewed at: 
https://www.ams.usda.gov/rules-regulations/moa/small-businesses. Any 
questions about the compliance guide should be sent to Richard Lower at 
the previously mentioned address in the FOR FURTHER INFORMATION CONTACT 
section.
    A 60-day comment period is provided to allow interested persons to 
respond to this proposal. All written comments timely received 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), this notice announces AMS's intent to request approval 
from OMB for a new information collection under OMB No. 0581-NEW. The 
new form will be merged with the forms currently approved under OMB No. 
0581-0189 Fruit Crops.
    This proposed rule would create a new form for Florida citrus 
handlers, titled Application for Registration as Fresh Citrus Handler.
    Title: Oranges, Grapefruit, Tangerines, and Pummelos Grown in 
Florida; Marketing Order No. 905.
    OMB Number: 0581-NEW.
    Type of Request: New Collection.
    Abstract: The information 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 Federal 
marketing order for oranges, grapefruit, tangerines, and pummelos grown 
in Florida. USDA is responsible for overseeing the Order regulating the 
handling of Florida citrus. The Order is effective under the Act.
    The Committee unanimously recommended that Florida citrus handlers 
subject to the Order provide the Committee with location and contact 
information at the beginning of each fiscal period. This form, titled 
``Application for Registration as Fresh Citrus Handler'' would be 
submitted directly to the Committee once each year no later than August 
1. The report would provide the Committee with information on each 
handler location, the type of business, and the names and contact 
information of individuals having a financial interest in each 
business.
    The Order authorizes the Committee to collect certain information 
from handlers. The information collected would only be used by 
authorized representatives of the USDA, including the AMS Specialty 
Crops Program regional and headquarters staff, and authorized employees 
of the Committee. All proprietary information would be kept 
confidential in accordance with the Act and the Order.
    The proposed request for new information collection under the Order 
is as follows:

Application for Registration as Fresh Citrus Handler

    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to be an average of 0.165 hours per response.
    Respondents: Handlers subject to the marketing order regulating 
oranges, grapefruit, tangerines, and pummelos grown in Florida.
    Estimated Number of Respondents: 20.
    Estimated Number of Responses per Respondent: 1.
    Estimated Total Annual Responses: 20.
    Estimated Total Annual Burden on Respondents: 3.3 hours.
    Comments are invited on: (1) Whether the proposed collection of 
information is necessary for the proper performance of the functions of 
the Agency, including whether the information will have practical 
utility; (2) the accuracy of the Agency's estimate of the burden of the 
proposed collection of information, including the validity of the 
methodology and assumptions used; (3) ways to enhance the quality, 
utility, and clarity of the information to be collected; and (4) ways 
to minimize the burden of the collection of information on those who 
are to respond, including the use of appropriate automated, electronic, 
mechanical, or other technological collection techniques or other forms 
of information technology.
    Comments should reference OMB No. 0581-NEW and the Marketing Order 
for Oranges, Grapefruit, Tangerines, and Pummelos Grown in Florida and 
should be sent to the USDA in care of the Docket Clerk at the 
previously mentioned address or at https://www.regulations.gov.
    All responses to this notice will be summarized and included in the 
request for OMB approval. All comments received will become a matter of 
public record and will be available for public inspection during 
regular business hours at the address of the Docket Clerk or at https://www.regulations.gov.
    If this proposed rule is finalized, this information collection 
will be merged with the forms currently approved under OMB No. 0581-
0189, Fruit Crops.

List of Subjects 7 CFR Part 905

    Grapefruit, Marketing agreements, Oranges, Pummelos, Reporting and 
recordkeeping requirements, Tangerines.

    For the reasons set forth in the preamble, 7 CFR part 905 is 
proposed to be amended as follows:

PART 905--ORANGES, GRAPEFRUIT, TANGERINES, AND PUMMELOS GROWN IN 
FLORIDA

0
1. The authority citation for 7 CFR part 905 continues to read as 
follows:

    Authority:  7 U.S.C. 601-674.

0
2. Add Sec.  905.107 to read as follows:


Sec.  905.107   Registered handler certification.

    Each handler who handles citrus grown in the production area must 
be certified as a registered handler by the Committee in order to ship 
such regulated citrus outside of the regulated area. A handler who is 
certified as a registered handler is a handler who has

[[Page 27163]]

adequate facilities to meet the requirements for preparing citrus for 
market, obtains inspection on citrus handled, agrees to handle citrus 
in compliance with the Order's grade, size and container requirements, 
pays applicable assessments on a timely basis, submits reports required 
by the Committee, and agrees to comply with other regulatory 
requirements on the handling of citrus grown in the production area.
    (a) Eligibility. Based on the criteria specified in this section, 
the Committee shall determine eligibility for certification as a 
registered handler. The Committee or its authorized agent shall inspect 
a handler's facilities to determine if the facilities are adequate for 
preparing citrus for market. To be adequate for such purposes, the 
facilities must be permanent, nonportable buildings located in the 
production area with equipment that is nonportable for the proper 
washing, grading, sizing and packing of citrus grown in the production 
area.
    (b) Application for certification. Application for certification 
shall be executed by the handler by August 1st of fiscal period and 
filed with the Committee on a form, prescribed by and available at the 
principal office of the Committee, containing the following 
information:
    (1) Business name,
    (2) Address of handling facilities (including telephone, email and 
facsimile number),
    (3) Mailing address (if different from handling facility address),
    (4) Number of years in the citrus business in Florida,
    (5) Type of business entity, and
    (6) Names of senior officers, partners, or principal owners with 
financial interest in the business.
    (c) Determination of certification. If the Committee determines 
from available information that an applicant meets the criteria 
specified in this section, the applicant shall be certified as a 
registered handler and informed by written notice from the Committee. 
Certification is effective for a fiscal period unless the Committee 
determines, based on criteria herein, that cancellation is warranted. 
If certification is denied, the handler shall be informed by the 
Committee in writing, stating the reasons for denial.
    (d) Cancellation of certification. A registered handler's 
certification shall be cancelled by the Committee, with the approval of 
the Secretary, if the handler fails to pay assessments within 90 days 
of the invoice date, fails to provide reports to the Committee, or no 
longer has adequate facilities as described in this section. 
Cancellation of a handler's certification shall be made in writing to 
the handler and shall specify the reason(s) for and effective date of 
the cancellation. Cancellation shall be for a minimum two-week period 
if a handler is found to be shipping without proper inspection. The 
Committee shall recertify the handler's registration at such time as 
the handler corrects the deficiencies which resulted in the 
cancellation and the Committee or its agent verifies compliance. The 
Committee shall notify the handler in writing of its recertification.
    (e) Inspection certification. During any period in which the 
handling of citrus is regulated pursuant to this part, no handler shall 
obtain an inspection certifying that the handler's citrus meets the 
requirements of the Order unless the handler has been certified as a 
registered handler by the Committee. Any person who is not certified as 
a registered handler may receive inspection from the Federal-State 
Inspection Service, however, the inspection certificate shall state 
``Fails to meet the requirements of Marketing Order No. 905 because the 
handler is not a registered handler.''
    (f) Contrary shipping. The Committee may cancel or deny a handler's 
registration if the handler has shipped citrus contrary to the 
provisions of this part. The cancellation or denial of a handler's 
registration shall be effective for a minimum of two weeks and not 
exceed the applicable shipping season as determined by the Committee.
    (g) Appeals. Any handler who has been denied a handler's 
registration or who has had a handler's registration cancelled, may 
appeal to the Secretary, supported by any arguments and evidence the 
handler may wish to offer as to why the application for certification 
or recertification should have been approved. The appeal shall be in 
writing and received at the Specialty Crops Program office in 
Washington, DC within 90 days of the date of notification of denial or 
cancellation.

Bruce Summers,
Administrator, Agricultural Marketing Service.
[FR Doc. 2020-09346 Filed 5-6-20; 8:45 am]
 BILLING CODE P