Amendments to the Marketing Order for Oranges, Grapefruit, Tangerines, and Pummelos Grown in Florida, 2862-2867 [2023-00856]

Agencies

• Agricultural Marketing Service
• DEPARTMENT OF AGRICULTURE

[Federal Register Volume 88, Number 11 (Wednesday, January 18, 2023)]
[Proposed Rules]
[Pages 2862-2867]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-00856]


========================================================================
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.

========================================================================


Federal Register / Vol. 88, No. 11 / Wednesday, January 18, 2023 / 
Proposed Rules

[[Page 2862]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 905

[Doc. No.: AMS-SC-21-0054]


Amendments to the Marketing Order for Oranges, Grapefruit, 
Tangerines, and Pummelos Grown in Florida

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule and referendum order.

-----------------------------------------------------------------------

SUMMARY: This rulemaking proposes amendments to Marketing Order 905, 
which regulates the handling of oranges, grapefruit, tangerines, and 
pummelos grown in Florida. The proposed amendments reduce the size of 
the Citrus Administrative Committee (Committee) and lower quorum 
requirements, revise the nomination and selection processes, remove the 
requirement to allocate committee seats on the basis of volume from 
each district, and add a new section to provide the Committee authority 
to receive voluntary contributions for promotion and research projects. 
Conforming changes to align the marketing order with the proposed 
amendments are also proposed.

DATES: The referendum will be conducted from April 3 through May 1, 
2023. The representative period for the referendum is August 1, 2021, 
through July 31, 2022.

ADDRESSES: Interested persons with questions and comments are invited 
to submit written questions and comments to the Docket Clerk, Market 
Development Division, Specialty Crops Program, AMS, USDA, 1400 
Independence Avenue SW, STOP 0237, Washington, DC 20250-0237; or 
Telephone: (202) 720-2491.

FOR FURTHER INFORMATION CONTACT: Geronimo Quinones, Marketing 
Specialist, or Matthew Pavone, Chief, Rulemaking Services Branch, 
Market Development Division, Specialty Crops Program, AMS, USDA, 1400 
Independence Avenue SW, Stop 0237, Washington, DC 20250-0237; 
Telephone: (202) 720-2491, or Email: [email protected] or 
[email protected].
    Small businesses may request information on complying with this 
regulation by contacting Richard Lower, Market Development Division, 
Specialty Crops Program, AMS, USDA, 1400 Independence Avenue SW, STOP 
0237, Washington, DC 20250-0237; Telephone: (202) 720-2491, or Email: 
[email protected].

SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553, 
proposes amendments to regulations issued to carry out a marketing 
order as defined in 7 CFR 900.2(j). This proposal 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 citrus producers and shippers 
operating within the area of production, and a non-industry member.
    The Agricultural Marketing Service (AMS) is issuing this proposed 
rule in conformance with Executive Orders 12866 and 13563. Executive 
Orders 12866 and 13563 direct agencies to assess all costs and benefits 
of available regulatory alternatives and, if regulation is necessary, 
to select regulatory approaches that maximize net benefits (including 
potential economic, environmental, public health and safety effects, 
distributive impacts, and equity). Executive Order 13563 emphasizes the 
importance of quantifying both costs and benefits, reducing costs, 
harmonizing rules, and promoting flexibility. This action falls within 
a category of regulatory actions that the Office of Management and 
Budget (OMB) exempted from Executive Order 12866 review.
    In addition, this proposed rule has been reviewed under Executive 
Order 13175--Consultation and Coordination with Indian Tribal 
Governments, which requires agencies to consider whether their 
rulemaking actions would have tribal implications. AMS has determined 
this proposed rule is unlikely to have substantial direct effects on 
one or more Indian tribes, on the relationship between the Federal 
Government and Indian tribes, or on the distribution of power and 
responsibilities between the Federal Government and Indian tribes.
    This proposal has also been reviewed under Executive Order 12988, 
Civil Justice Reform. This proposed rule is not intended to have 
retroactive effect. This proposed rule shall not be deemed to preclude, 
preempt, or supersede any State program covering oranges, grapefruit, 
tangerines, and pummelos grown in Florida.
    The Act provides that administrative proceedings must be exhausted 
before parties may file suit in court. Under section 8c(15)(A) of the 
Act (7 U.S.C. 608(15)(A)), any handler subject to an order may file 
with the United States of Department of Agriculture (USDA) 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, 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 no later than 20 days after the date of 
entry of the ruling.
    Section 1504 Section 8c(17) of the Act and the supplemental rules 
of practice authorize the use of informal rulemaking (5 U.S.C. 553) to 
amend Federal fruit, vegetable, and nut marketing agreements and 
orders. AMS may use informal rulemaking to amend marketing orders 
depending upon the nature and complexity of the proposed amendments, 
the potential regulatory and economic impacts on affected entities, and 
any other relevant matters.
    AMS has considered these factors and has determined that the 
amendments proposed herein are not unduly complex and the nature of the 
proposed amendments is appropriate for utilizing the informal 
rulemaking process to amend the Order.
    The Committee unanimously recommended the amendments

[[Page 2863]]

following deliberations at a public meeting held on November 19, 2020. 
The proposals would reduce the size of the Committee and lower quorum 
requirements, revise the nomination and selection processes, eliminate 
the requirement to allocate Committee seats on the basis of volume from 
each district, and add a new section to provide the Committee authority 
to receive voluntary contributions for promotion/research projects. 
Other conforming changes to align the marketing order with the proposed 
amendments were also recommended.
    A proposed rule soliciting comments on the proposed amendments was 
published in the Federal Register on June 30, 2022 (87 FR 39003). Seven 
comments were received in response to the proposed rule, all of which 
were in support of the proposal. Based on all the information available 
to AMS at this time, including the comments received in response to the 
proposed rule, no substantive changes will be made to the proposed 
amendments.
    AMS will conduct a producer referendum to determine support for the 
proposed amendments. If appropriate, a final rule will then be issued 
to effectuate the amendments, if they are favored by producers in the 
referendum.

Proposal 1--Reduce Committee Size

    Section 905.19 currently provides that the Committee consists of at 
least eight but not more than nine grower members, and eight shipper 
members. A differentiation between grower and shipper members on the 
Committee is also provided in Sec.  905.19.
    This proposal would amend Sec.  905.19 by reducing the size of the 
Committee from at least eight but not more than nine grower members, 
and eight shipper members, to 10 grower members. The Committee would be 
grower-based, consisting of 10 members and 10 alternate members, which 
would eliminate the designation of shipper members. The grower members 
would be producers who produce within the district for which they are 
nominated and selected to represent. The proposed revisions would allow 
grower members to also be shippers or employees of shippers, which is 
limited under the current regulations. However, the Committee may 
establish alternative qualifications for such grower members with 
approval of the Secretary. The option to increase the Committee by one 
non-industry member nominated by the Committee and selected by the 
Secretary would remain unchanged.
    Section 905.14 currently provides that the Committee can redefine 
the districts, reapportion or change the grower membership of 
districts, or both, provided that Committee membership consists of at 
least eight but not more than nine grower members.
    This proposal would amend Sec.  905.14 by revising the reference to 
total number of member seats from at least eight but not more than nine 
grower members, to 10 grower members. This change would align this 
section with the proposed new Committee size.
    Section 905.20 provides that members and their alternates serve a 
2-year term of office, but that has not included non-industry members 
due to the current Sec.  905.150(d). This proposal would align the 
terms of office for all members by removing language from Sec.  
905.150(d), which created a 1-year term of office for non-industry 
members, and replacing it with language specifying a 2-year term of 
office for non-industry members.
    Since promulgation of the Order in 1957, the Florida citrus 
industry has undergone consolidation and crop loss. Increasing labor 
costs, real estate pressures, and citrus greening have been 
contributing factors. Current industry structure shows there are few 
growers who are not affiliated with handlers, and most of the handlers 
are also growers. Total citrus acreage is about half of what it was at 
its peak production and has declined 22 percent from 2010 to 2020. Not 
distinguishing between grower and shipper members and decreasing the 
Committee's size to 10 members and 10 alternate members would make 
Committee membership more reflective of today's industry. The Committee 
would be able to fill all its member positions with less difficulty. 
Aligning the term of the public member to the same 2-year term as the 
rest of the Committee will also improve efficiency and the 
effectiveness of the position. A 2-year term will help ensure that the 
public member can contribute to the work of the Committee at a higher 
level.

Proposal 2--Revise Nomination and Selection Process

    For grower members, Sec.  905.22 currently provides that, on even 
numbered years, nominees for open grower member and alternate member 
positions shall be chosen by ballot. In support of this nomination 
process, Sec.  905.22(a) further provides that the Committee will 
publicly announce and hold grower meetings no later than June 10 to 
make those nominations. The nominees chosen in this manner, along with 
the vote certification and any other information requested, will be 
submitted by the secretary and chairman of each grower-meeting to the 
Secretary of Agriculture (Secretary) on or before June 20. At least two 
of the grower-nominees and their alternates will be affiliated with a 
bona fide cooperative marketing organization. Section 905.22(b) 
outlines the process for nominating shipper members and their 
alternates.
    This proposal would amend Sec.  905.22 by removing the designation 
of shipper members. Section 905.22(a)(1) would be revised by changing 
the deadline for Committee nominees from June 10 to April 10, and the 
deadline for presenting nominees for selection to the Secretary from 
June 20 to April 20. A revision to paragraph 905.22(a)(2) would add 
language to clarify that grower members are producers who may also be 
shippers or who are also employees of shippers. The requirement that at 
least two of the grower nominees and their alternates be affiliated 
with a bona fide cooperative marketing organization would be changed to 
one grower nominee and their alternate.
    Section 905.23 currently provides that the Secretary will select 
members and alternate members from each district. The grower 
nominations will be made from qualified persons and at least two 
members and their alternates shall be affiliated with bona fide 
cooperative marketing organizations. Furthermore, the Secretary shall 
select at least two shipper members and their alternates to represent 
bona fide cooperative marketing organizations of handlers. The 
remaining shipper members and their alternates represent handlers who 
are not affiliated. Section 905.29 currently provides that when a 
member and that member's alternate are unable to attend a meeting, any 
alternate designated by the member or Committee to act in his or her 
stead for that meeting must represent the same affiliation as the 
member.
    Section 905.23 would be amended by removing the allocation of 
Committee seats by district from the selection process and providing 
that only one nominee and their alternate be affiliated with a bona 
fide cooperative marketing organization. Proposed changes to Sec.  
905.29 would eliminate the requirement that any person designated to 
serve on the Committee in the absence of a member and his or her 
alternate represent the same group affiliation as the absent member and 
alternate. This would not apply to the public member.
    Currently there are three districts. A nomination meeting is 
scheduled in each district for growers and shippers. Votes are cast by 
each respective district for each member type and the corresponding 
alternate. Growers participate in the nomination process for grower 
members and alternates,

[[Page 2864]]

while shippers participate in the nomination process for shippers and 
their alternates. Alternates must meet the same requirements of the 
member, which further complicates finding suitable candidates for 
nomination. Because handlers crisscross the state buying fruit, the 
differentiation of districts no longer serves a practical purpose since 
all but one shipper sources fruit from multiple districts. With the 
current shrinking of the industry and the number of growers and 
shippers working as both, eliminating the distinction between growers 
and shippers will make it easier to facilitate the nomination and 
selection process and better reflect the current industry.

Proposal 3--Revise Quorum Requirements

    Currently, Sec.  905.34 states that 10 members of the Committee 
shall constitute a quorum, and any action of the committee shall 
require at least 10 concurring votes. Five of those concurring votes 
must be grower votes. It also states that the Committee may provide for 
meeting by telephone, telegraph, or other means of communication.
    This proposal would modify Sec.  905.34 to allow seven members to 
constitute a quorum, with six concurring votes required to pass any 
motion or approve any Committee action. Finally, a small change would 
eliminate ``telegraph'' as a valid means of communication.
    The Committee is experiencing difficulties obtaining a quorum at 
meetings to conduct business activities. Many industry members are 
fulfilling multiple roles. Reductions in staff due to rising 
operational costs has made it difficult for smaller growers and 
handlers to leave their businesses to participate in meetings. These 
factors are making it more difficult to fill the seats on the 
Committee. Adjusting the current requirements would enable the 
Committee to operate fully and reduce the risk of not establishing a 
quorum during scheduled meetings or not having the required votes to 
pass any action. These changes would help to increase the Committee's 
effectiveness.

Proposal 4--Authority To Accept Voluntary Contributions From Domestic 
Sources

    Section 905.54 of the Order authorizes the Committee, with the 
approval of the Secretary, to establish research, marketing, and 
promotional projects. This proposal would add a new Sec.  905.43 to 
provide the Committee with authority to receive voluntary contributions 
from domestic sources to fund promotional and research projects. Any 
contributions made to the Committee will be free from any encumbrances 
by the donor and the Committee will retain complete control of their 
use.
    Presently, research and promotional activities are administered by 
the Florida Department of Citrus, which is a state agency. Such 
projects are generally funded by grower assessments through the Florida 
Department of Citrus and are administered by the Florida Citrus 
Commission. At the Committee's request, research and promotional 
authority was added to the Order in 2009 (74 FR 46303) to ensure that a 
mechanism exists for the Committee to conduct those activities. Such 
activities are paid by assessments authorized by the Order. 
Consequently, increases to the assessment rate may be needed if the 
Committee desires to increase its research or promotional activities. 
Furthermore, while it is expected that the state agency will continue 
to exist and offer these services, should the agency close, the 
Committee could ensure that fresh citrus research continues. The 
Committee believes that the ability to receive voluntary contributions 
toward such projects may eliminate the need to use or increase the 
assessment rate, thereby minimizing financial pressure on producers. 
Contributions would be used for more research and promotional 
activities that would benefit the entire industry.
    The following concurring changes would also be made to align the 
Order with the above amendments:
    Section 905.114 would be revised to create a single district, down 
from the current number of three. Florida Citrus acreage has declined 
from approximately 900,000 acres to approximately 435,000 acres. As 
previously discussed in Proposal 1, because of the effects of citrus 
greening, handlers must access fruit from statewide sources. Currently, 
only one handler packs fruit exclusively from its own district, while 
all other handlers access fruit from all districts and production 
areas. The changes to Sec.  905.114 would create one statewide 
district, better reflecting current industry structure and practices.
    Section 905.120 would be revised to eliminate any reference to 
handlers as a distinct class for purposes of nominations, since such 
designations will no longer be relevant to the process. The volume vote 
for shipper nominations and shipper designations would also be 
eliminated from Sec.  905.120. By eliminating the volume vote, the 
Committee expects this would provide small growers greater opportunity 
and representation moving forward.
    Finally, changes to Sec.  905.150 would revise the current 1-year 
term of office for the public member to a 2-year term. This would align 
the public member with all members and their alternates, which serve a 
2-year term of office.

Initial Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), AMS has considered the economic impact of 
this proposed rule 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 so that small businesses will not be 
unduly or disproportionately burdened.
    There are approximately 15 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 as those having annual 
receipts of no more than $30,000,000, and small agricultural producers 
of orange groves are defined as those having annual receipts of no more 
than $3,500,000 (13 CFR 121.201).
    According to data from the National Agricultural Statistics Service 
(NASS) and the Citrus Administrative Committee, the weighted average 
packing house door equivalent price for fresh Florida citrus for the 
2020-21 season was approximately $6.52 per carton with total shipments 
of around 6,022,426 cartons. Based on this information, the majority of 
handlers have average annual receipts of significantly less than 
$30,000,000 ($6.52 times 6,022,426 cartons equals $39,266,217.52, 
divided by 15 handlers equals $2,617,747.83 per handler).
    In addition, based on the NASS data, the weighted average grower 
price for the 2020-21 season was estimated at $4.95 per carton of fresh 
citrus. Based on grower price, shipment data, and the total number of 
Florida citrus growers, the average annual grower revenue is well below 
$3,500,000 ($4.95 times 6,022,426 million cartons equals 
$29,811,008.70, divided by 500 growers equals $59,622.02 per grower). 
Thus, the majority of Florida citrus handlers and growers may be 
classified as small entities.
    AMS has determined that the proposed amendments would not have a 
significant impact on a substantial number of small businesses. Rather, 
large and small entities alike would be expected to benefit from the

[[Page 2865]]

Committee's improved ability to address important issues of interest to 
all on a timely basis. The proposed reduction in the number of seats on 
the Committee, and the reduced quorum and lowered voting requirements, 
would not require any significant changes in producer or handler 
business operations, and no significant industry educational effort 
would be needed. Producers and handlers, large and small alike, would 
incur no additional costs. No small businesses would be unduly or 
disproportionately burdened as a result of this proposal going into 
effect.
    The Committee unanimously recommended the proposed amendments at a 
public meeting on November 19, 2020. If these proposals are approved in 
a referendum, there would be no direct financial effects on producers 
or handlers.
    The Florida citrus industry has undergone consolidation and crop 
reduction. Because of this fact, it has become difficult to fill the 
member seats on the Committee and to obtain a quorum to conduct 
business activities. Decreasing the Committee's size would make it more 
reflective of today's industry and easier to fulfill the quorum 
requirement. The current districts are not relevant because handlers 
routinely source fruit from across the state, therefore the 
differentiation of districts no longer serves a practical purpose. 
Authority to accept voluntary contributions from domestic sources would 
allow the Committee to collaborate with other organizations for 
research/promotional activities. No economic impact is expected if the 
proposed amendments are approved because they would not establish any 
new regulatory requirements on handlers, nor would they have any 
assessment or funding implications. There would be no change in 
financial costs, reporting, or recordkeeping requirements if this 
proposal is approved.
    As an alternative to this proposal, the Committee considered making 
no revisions to the Order at this time. However, due to changes in the 
industry, the Committee believes the proposals are justified and 
necessary to ensure its ability to locally administer the program. AMS 
concurs with that conclusion.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
chapter 35), the Order's information collection requirements have been 
previously approved by OMB and assigned OMB No. 0581-0189, Fruit Crops. 
No changes in those requirements are necessary because of this action. 
Should any changes become necessary, they would be submitted to OMB for 
approval.
    This proposed rule would impose no additional reporting or 
recordkeeping requirements on either small or large Florida citrus 
handlers. 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 proposed 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 November 19, 2020, Committee meeting was widely publicized 
throughout the production area. Meetings are held virtually or in a 
hybrid style. Participants both large and small, have a choice whether 
to attend in person or virtually and can participate in the Committee's 
deliberations on all issues.
    A proposed rule concerning this action was published in the Federal 
Register on June 30, 2022 (87 FR 39003). A copy of the rule was sent 
via email to the Committee Manager for disposal to all Committee 
members and Florida citrus handlers. Finally, the proposed rule was 
made available by USDA through the internet and the Office of the 
Federal Register. A 60-day comment period ending August 29, 2022, was 
provided to allow interested persons to respond to the proposals. Seven 
comments were received during the comment period, all of which were in 
support of the proposed amendments. Based on all the information 
available to AMS at this time, including the comments received in 
response to the proposed rule, no substantive changes will be made to 
the amendments as proposed.
    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.

Findings and Conclusions

    AMS has determined that the findings and conclusions, and general 
findings and determinations included in the proposed rule set forth in 
the June 30, 2022, issue of the Federal Register (87 FR 39003) are 
appropriate and necessary and are hereby approved and adopted.

Marketing Order

    Annexed hereto and made a part hereof is the document entitled 
``Order Amending the Order Regulating the Handling of Oranges, 
Grapefruit, Tangerines, and Pummelos Grown in Florida.'' This document 
has been decided upon as the detailed and appropriate means of 
effectuating the foregoing findings and conclusions. It is hereby 
ordered that this entire proposed rule be published in the Federal 
Register.

Referendum Order

    It is hereby directed that a referendum be conducted in accordance 
with the procedure for the conduct of referenda (7 CFR 900.400 through 
407) to determine whether the annexed order amending the Order 
regulating the handling of oranges, grapefruit, tangerines, and 
pummelos grown in Florida is approved by growers, as defined under the 
terms of the Order, who during the representative period were engaged 
in the production of oranges, grapefruit, tangerines, and pummelos in 
the production area. The representative period for the conduct of such 
referendum is hereby determined to be August 1, 2021, through July 31, 
2022.
    The agents designated by the Secretary to conduct the referendum 
are Dolores Lowenstine, Christian Nissen, and Jennie Varela, Southeast 
Region Branch, Market Development Division, Specialty Crops Program, 
AMS, USDA; Telephone: (863) 324-3375, Fax: (863) 291-8614, or Email: 
[email protected], [email protected], and 
[email protected], respectively.

Order Amending the Order Regulating the Handling of Oranges, 
Grapefruit, Tangerines, and Pummelos Grown in Florida1
---------------------------------------------------------------------------

    \1\ This order shall not become effective unless and until the 
requirements of Sec.  900.14 of the rules of practice and procedure 
governing proceedings to formulate marketing agreements and 
marketing orders have been met.
---------------------------------------------------------------------------

Findings and Determinations

    The findings and determinations hereinafter set forth are 
supplementary to the findings and determinations which were previously 
made in connection with the issuance of Marketing Order 905; and all 
said previous findings and determinations are hereby ratified and 
affirmed, except

[[Page 2866]]

insofar as such findings and determinations may be in conflict with the 
findings and determinations set forth herein.
    1. Marketing Order 905 as hereby proposed to be amended and all the 
terms and conditions thereof, would tend to effectuate the declared 
policy of the Act;
    2. Marketing Order 905 as hereby proposed to be amended regulates 
the handling of oranges, grapefruit, tangerines, and pummelos grown in 
Florida and is applicable only to persons in the respective classes of 
commercial and industrial activity specified in the Order;
    3. Marketing Order 905, as hereby proposed to be amended, is 
limited in application to the smallest regional production area which 
is practicable, consistent with carrying out the declared policy of the 
Act, and the issuance of several marketing orders applicable to 
subdivisions of the production area would not effectively carry out the 
declared policy of the Act;
    4. Marketing Order 905, as hereby proposed to be amended, 
prescribes insofar as practicable, such different terms applicable to 
different parts of the production area as are necessary to give due 
recognition to the differences in the production and marketing of 
oranges, grapefruit, tangerines, and pummelos produced or packed in the 
production area; and
    5. All handling of oranges, grapefruit, tangerines, and pummelos 
produced or packed in the production area as defined in marketing order 
905 is in the current of interstate or foreign commerce or directly 
burdens, obstructs, or affects such commerce.

Order Relative to Handling

    It is therefore ordered, that on and after the effective date 
hereof, all handling of oranges, grapefruit, tangerines, and pummelos 
grown in Florida shall be in conformity to, and in compliance with, the 
terms and conditions of the said Order as hereby proposed to be amended 
as follows:
    The provisions of the proposed marketing order amending the Order 
contained in the proposed rule issued by the Administrator and 
published in the Federal Register (87 FR 39003) on June 30, 2022, will 
be and are the terms and provisions of this order amending the Order 
and are set forth in full herein.

List of Subjects in 7 CFR Part 905

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

    For the reasons set forth in the preamble, the Agricultural 
Marketing Service proposes to amend 7 CFR part 905 as follows:

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

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

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

0
2. Amend Sec.  905.14 by revising paragraph (a) introductory text to 
read as follows:


Sec.  905.14  Redistricting.

    (a) The Committee may, with the approval of the Secretary, redefine 
the districts into which the production area is divided or reapportion 
or otherwise change the grower membership of districts, or both: 
Provided, that the membership shall consist of 10 grower members, and 
any such change shall be based, insofar as practicable, upon the 
respective averages for the immediately preceding three fiscal periods 
of:
* * * * *
0
3. Amend Sec.  905.19 by revising paragraph (a) to read as follows:


Sec.  905.19  Establishment and membership.

    (a) There is hereby established a Citrus Administrative Committee 
consisting of 10 grower members. Grower members shall be producers who 
produce within the district for which they are nominated and selected 
to represent. Grower members may be persons who, in addition to being 
producers, are shippers or employees of shippers: Provided, that the 
committee, with the approval of the Secretary, may establish 
alternative qualifications for such grower members. The committee may 
be increased by one non-industry member nominated by the committee and 
selected by the Secretary. The committee, with approval of the 
Secretary, shall prescribe qualifications, term of office, and the 
procedure for nominating the non-industry member.
* * * * *
0
4. Revise Sec.  905.22 to read as follows:


Sec.  905.22  Nominations.

    (a) The Committee shall give public notice of a meeting of 
producers in each district, to be held not later than April 10th of 
even-numbered years, for the purpose of making nominations for grower 
members and alternate grower members. The Committee, with the approval 
of the Secretary, shall prescribe uniform rules to govern such meetings 
and the balloting thereat. The chairman of each meeting shall publicly 
announce at such meeting the names of the persons nominated, and the 
chairman and secretary of each such meeting shall transmit to the 
Secretary their certification as to the number of votes so cast, the 
names of the persons nominated, and such other information as the 
Secretary may request. All nominations shall be submitted to the 
Secretary on or before the 20th day of April.
    (b) Each nominee shall be a producer in the district from which he 
or she is nominated. In voting for nominees, each producer shall be 
entitled to cast one vote for each nominee in each of the districts in 
which he or she is a producer. At least one of the nominees and their 
alternates so nominated shall be affiliated with a bona fide 
cooperative marketing organization.
    (c) Notwithstanding the provisions of paragraph (a) of this 
section, nomination and election of members and alternate members to 
the Committee may be conducted by mail, electronic mail, or other means 
according to rules and regulations recommended by the Committee and 
approved by the Secretary.
0
5. Revise Sec.  905.23 to read as follows:


Sec.  905.23  Selection.

    (a) From the nominations made pursuant to Sec.  905.22(a) or from 
other qualified persons, the Secretary shall select 10 members and 10 
alternates. At least one such member and their alternate shall be 
affiliated with a bona fide cooperative marketing organization.
0
6. Amend Sec.  905.29 by revising paragraph (b) to read as follows:


Sec.  905.29  Inability of members to serve.

* * * * *
    (b) If both a member and his or her respective alternate are unable 
to attend a committee meeting, such member may designate another 
alternate to act in his or her place in order to obtain a quorum. If 
the member is unable to designate such an alternate, the committee 
members present may designate such alternate.
* * * * *
0
7. Amend Sec.  905.34 by revising paragraphs (a) through (c) to read as 
follows:


Sec.  905.34  Procedure of committees.

    (a) Seven members of the committee shall constitute a quorum.
    (b) For any decision or recommendation of the Committee to be 
valid, six concurring votes shall be necessary: Provided, that the 
Committee may recommend a regulation restricting the shipment of 
grapefruit grown in Regulation Area I or Regulation Area II which meets 
the requirements of the

[[Page 2867]]

Improved No. 2 grade or the Improved No. 2 Bright grade only upon the 
affirmative vote of a majority of its members present from the 
regulation area in which such restriction would apply; and whenever a 
meeting to consider a recommendation for release of such grade is 
requested by a majority of the members from the affected area, the 
committee shall hold a meeting within a reasonable length of time for 
the purpose of considering such a recommendation. If after such 
consideration the requesting area majority present continues to favor 
such release for their area, the request shall be considered a valid 
recommendation and transmitted to the Secretary. The votes of each 
member cast for or against any recommendation made pursuant to this 
subpart shall be duly recorded. Whenever an assembled meeting is held 
each member must vote in person.
    (c) The committee may provide for meeting by telephone, or other 
means of communication, and any vote cast at such a meeting shall be 
promptly confirmed in writing: Provided, that if any assembled meeting 
is held, all votes shall be cast in person.
* * * * *
0
8. Add Sec.  905.43 to read as follows:


Sec.  905.43  Contributions.

    The Committee may accept voluntary contributions. Such 
contributions shall be free from any encumbrances by the donor and the 
Committee shall retain complete control of their use.
0
9. Revise Sec.  905.80 to read as follows:


Sec.  905.80  Fruit not subject to regulation.

    (a) Except as otherwise provided in this section, any person may, 
without regard to the provisions of Sec. Sec.  905.52 and 905.53 and 
the regulations issued thereunder, ship any variety for the following 
purposes:
    (1) To a charitable institution for consumption by such 
institution;
    (2) To a relief agency for distribution by such agency;
    (3) To a commercial processor for conversion by such processor into 
canned or frozen products or into a beverage base;
    (4) By U.S. Mail or private courier; or
    (5) In such minimum quantities, types of shipments, or for such 
purposes as the committee with the approval of the Secretary may 
specify.
    (b) No assessment shall be levied on fruit so shipped. The 
committee shall, with the approval of the Secretary, prescribe such 
rules, regulations, or safeguards as it may deem necessary to prevent 
varieties handled under the provisions of this section from entering 
channels of trade for other than the purposes authorized by this 
section. Such rules, regulations, and safeguards may include the 
requirements that handlers shall file applications with the committee 
for authorization to handle a variety pursuant to this section, and 
that such applications be accompanied by a certification by the 
intended purchaser or receiver that the variety will not be used for 
any purpose not authorized by this section.
0
10. Revise Sec.  905.114 to read as follows:


Sec.  905.114  Redistricting of citrus districts and reapportionment of 
grower members.

    Pursuant to Sec.  905.14, the citrus districts and membership 
allotted each district shall be as follows:
    (a) Citrus District One shall include that portion of the State of 
Florida, which is bounded by the Suwannee River, the Georgia border, 
the Atlantic Ocean, and the Gulf of Mexico. This district shall have 10 
members and 10 alternates.
    (b) Reserved.
0
11. Amend Sec.  905.120 by revising paragraphs (d) and (e) and removing 
paragraphs (f) and (g) to read as follows.


Sec.  905.120  Nomination procedure.

* * * * *
    (d) At each meeting each eligible person may cast one vote for each 
of the persons to be nominated to represent the district or group, as 
the case may be.
    (e) Voting may be by written ballot. If written ballots are used, 
all ballots shall be delivered by the chairman or the secretary of the 
meeting to the agent of the Secretary. If written ballots are not used, 
the committee's representative shall deliver to the Secretary's agent a 
listing of each person nominated and a count of the number of votes 
cast for each nominee for grower member and alternate. Said 
representative shall also provide the agent the register of eligible 
voters present at each meeting, a listing of each person nominated, and 
the number of votes cast.
0
12. Amend Sec.  905.150 by revising paragraph (d) as follows:


Sec.  905.150  Eligibility requirements for public member and alternate 
member.

* * * * *
    (d) The public member should be nominated by the Citrus 
Administrative Committee and should serve a 2-year term which coincides 
with the term of office of grower members of the Committee.

Erin Morris,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2023-00856 Filed 1-17-23; 8:45 am]
BILLING CODE 3410-02-P