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33178 Federal Register / Vol. 71, No.

110 / Thursday, June 8, 2006 / Rules and Regulations

§ 319.56–2rr Administrative instructions; the processing plant from its point of M. Finn, Formal Rulemaking Team
conditions governing the importation of entry into the United States as specified Leader, Marketing Order Administration
untreated grapefruit, sweet oranges, and in the import permit. Such fruit may not Branch, Fruit and Vegetable Programs,
tangerines from Mexico for processing. enter or transit areas other than the AMS, USDA, 1400 Independence
Untreated grapefruit (Citrus paradisi), Texas counties listed in § 301.64–3(c) of Avenue, SW., STOP 0237, Washington,
sweet oranges (Citrus sinensis), and this chapter. DC 20250–0237; telephone: (202) 720–
tangerines (Citrus reticulata) may be (g) Approved destinations. Processing 2491, Fax: (202) 720–8938.
imported into the United States from plants within the United States must be Small businesses may request
Mexico for extracting juice if they located within an area in Texas that is information on complying with this
originate from production sites in under an APHIS-approved preventative regulation by contacting Jay Guerber,
Mexico that are approved by APHIS release program using sterile insect Marketing Order Administration
because they meet the following technique for Mexican fruit fly. Branch, Fruit and Vegetable Programs,
conditions and any other conditions (h) Compliance agreements. AMS, USDA, 1400 Independence
determined by the Administrator to be Processing plants within the United Avenue, SW., STOP 0237, Washington,
necessary to mitigate the pest risk that States must enter into a compliance DC 20250–0237; telephone: (202) 720–
such fruits pose: agreement with APHIS in order to 2491, Fax: (202) 720–8938, or E-mail:
(a) Application of sterile insect handle grapefruit, sweet oranges, and Jay.Guerber@usda.gov.
technique. Production sites, and a tangerines imported from Mexico in
surrounding 1.5 mile buffer area, must SUPPLEMENTARY INFORMATION: This
accordance with this section. APHIS action is being taken pursuant to
be administered under an APHIS- will only enter into compliance
approved preventative release program § 608c(16)(A) of the Agricultural
agreements with facilities that handle Marketing Agreement Act of 1937, as
using sterile insect technique for the and process grapefruit, sweet oranges,
Mexican fruit fly (Anastrepha ludens). amended (7 U.S.C. 601–674), hereinafter
and tangerines from Mexico in such a referred to as the ‘‘Act’’, and § 979.84 of
(b) Fruit fly trapping protocol. (1) way as to eliminate any risk that exotic
Trapping densities. In areas where the order.
fruit flies could be disseminated into the USDA is issuing this rule in
grapefruit, sweet oranges, and United States, as determined by APHIS.
tangerines are produced for export to conformance with Executive Order
(Approved by the Office of Management and 12866.
the United States, APHIS approved
Budget under control number 0579–0264) This final rule has been reviewed
traps and lures must be placed in
production sites and a surrounding 1.5 Done in Washington, DC, this 2nd day of under Executive Order 12988, Civil
mile buffer areas as follows: June 2006. Justice Reform. This rule is not intended
(i) For Mexican fruit fly (Anastrepha Kevin Shea, to have retroactive effect. This rule will
ludens) and sapote fruit fly (A. Acting Administrator, Animal and Plant not preempt any State or local laws,
serpentina): One trap per 50 hectares. Health Inspection Service. regulations, or policies, unless they
(ii) For Mediterranean fruit fly [FR Doc. E6–8935 Filed 6–7–06; 8:45 am] present an irreconcilable conflict with
(Ceratitis capitata): One to four traps per BILLING CODE 3410–34–P
this rule.
250 hectares. The Act provides that administrative
(2) Fruit fly catches. Upon trapping of proceedings must be exhausted before
a Mexican fruit fly, sapote fruit fly, or DEPARTMENT OF AGRICULTURE parties may file suit in court. Under
Mediterranean fruit fly in a production section 608c(15)(A) of the Act, any
site or buffer area, exports from that Agricultural Marketing Service handler subject to an order may file
production site are prohibited until the with USDA a petition stating that the
Administrator determines that the 7 CFR Part 979 order, any provision of the order, or any
phytosanitary measures taken have been [Docket No. FV06–979–1 FR]
obligation imposed in connection with
effective to allow the resumption of the order is not in accordance with law
export from that production site. Melons Grown in South Texas; and request a modification of the order
(3) Monitoring. The trapping program Termination of Marketing Order 979 or to be exempted therefrom. A handler
must be monitored under an APHIS- is afforded the opportunity for a hearing
approved quality control program. AGENCY: Agricultural Marketing Service, on the petition. After the hearing USDA
(c) Safeguarding. Fruit must be USDA. would rule on the petition. The Act
safeguarded against fruit fly infestation ACTION: Final rule, termination of order. provides that the district court of the
using methods approved by APHIS from United States in any district in which
SUMMARY: This final rule terminates the the handler is an inhabitant, or has his
the time of harvest until processing in
Federal marketing order for melons or her principal place of business, has
the United States.
(d) Phytosanitary certificate. Each grown in South Texas (order) and the jurisdiction to review USDA’s ruling on
shipment must be accompanied by a rules and regulations issued thereunder. the petition, provided an action is filed
phytosanitary certificate issued by The Department of Agriculture (USDA) not later than 20 days after the date of
Mexico’s national plant protection has determined the order should be the entry of the ruling.
organization that contains additional terminated given the declining status of This rule terminates the Federal
declarations stating that the the industry. marketing order for melons grown in
requirements of paragraphs (a), (b), and DATES: Effective Date: June 9, 2006. South Texas and the rules and
(c) of this section have been met. FOR FURTHER INFORMATION CONTACT: regulations issued thereunder. The
(e) Ports. The harvested fruit may Martin J. Engeler, Senior Marketing order contains authority to regulate the
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enter the United States only through a Specialist, Marketing Order handling of melons grown in South
port of entry located in one of the Texas Administration Branch, Fruit and Texas and is administered locally by the
counties listed in § 301.64–3(c) of this Vegetable Programs, AMS, USDA, 2202 South Texas Melon Committee
chapter. Monterey Street, Suite 102–B, Fresno, (Committee). At a meeting held on
(f) Route of transit. Harvested fruit California 93721; telephone: (559) 487– September 7, 2005, the Committee
must travel on the most direct route to 5110, Fax: (559) 487–5906; or Kathleen recommended terminating the order.

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Federal Register / Vol. 71, No. 110 / Thursday, June 8, 2006 / Rules and Regulations 33179

USDA suspended indefinitely and assessment collections for the requires USDA to notify Congress at
regulations under the order while it 2004–05 season, except for one least 60 days before terminating a
considered the Committee’s reporting requirement regarding planted Federal marketing order program.
recommendation for termination (70 FR acreage, was published in the Federal Congress was so notified on March 16,
57995; October 5, 2005). USDA issued a Register on November 26, 2004 (69 FR 2006. USDA hereby appoints Committee
proposed rule soliciting comments on 68761), followed by a final rule Chairman Fred Schuster and Committee
proposed termination of the order on published on February 23, 2005 (70 FR member Jimmy Pawlick as trustees to
December 22, 2005 (70 FR 75984). 8709). The 2004–05 season began on conclude and liquidate the affairs of the
Section 979.84 of the order provides, October 1, 2004, and ended on Committee and to continue in such
in pertinent part, that the Secretary shall September 30, 2005. capacity until discharged.
terminate or suspend any or all The Committee met on September 7,
provisions of the order when he finds 2005, to evaluate the industry situation Initial Regulatory Flexibility Analysis
that it does not tend to effectuate the since the regulations were suspended. Pursuant to requirements set forth in
declared policy of the Act. Section Planted acreage continued to decline, the Regulatory Flexibility Act (RFA), the
608c(16)(A) of the Act provides that the from 4,780 acres in 2003–04 to 2,364 Agricultural Marketing Service (AMS)
Secretary shall terminate or suspend the acres in 2004–05. The number of melon has considered the economic impact of
operation of any order whenever the growers and handlers also continued to this action on small entities.
order or provision thereof obstructs or decline. During the 2003–04 season, Accordingly, AMS has prepared this
does not tend to effectuate the declared there were 29 growers and 16 handlers; initial regulatory flexibility analysis.
policy of the Act. Section 608c(16)(A) of in 2004–05 the number of known The purpose of the RFA is to fit
the Act also requires the Secretary to growers decreased to 13 and handlers regulatory actions to the scale of
notify Congress not later than 60 days decreased to seven. In addition, no new business subject to such actions in order
before the date the order would be varieties were introduced to improve that small businesses will not be unduly
terminated. the quality and make the product more or disproportionately burdened.
The order has been in effect since competitive with product from other Marketing orders issued pursuant to the
1979. It contains authority for grade, producing areas. In short, the industry Act, and the rules issued thereunder, are
size, quality, maturity, pack, container, situation continued to worsen. The unique in that they are brought about
and reporting requirements. It also Committee believed that there was no through group action of essentially
authorizes production research and longer a need for the order, and small entities acting on their own
marketing research and development therefore recommended its termination behalf. Thus, both statutes have small
activities. Grade, quality, maturity, by unanimous vote. entity orientation and compatibility.
container, and pack regulations have USDA continued the suspension of During the 2004–05 marketing year,
historically been utilized under the regulations, reporting requirements, and there were approximately seven
order, as well as mandatory inspection assessment collections for an indefinite handlers of South Texas melons subject
to ensure these requirements were met. period, and also suspended the one to regulation under the marketing order
Assessments have been collected to remaining reporting requirement and approximately 13 melon growers in
fund order operations, including regarding planted acreage for an the regulated area. Small agricultural
production research and marketing indefinite period to allow adequate time service firms are defined by the Small
research and promotion activities. to collect additional information in Business Administration (SBA) (13 CFR
Reporting requirements have also been order to determine if terminating the 121.201) as those having annual receipts
implemented under the order. order was warranted. Suspension of of less than $6,500,000, and small
The South Texas melon industry has regulations, reporting requirements, and agricultural growers are defined as those
been shrinking in recent seasons due to assessment collections for an indefinite having annual receipts of less than
the inability to provide a dependable period was published in the Federal $750,000.
supply of good quality fruit, a lack of Register on October 5, 2005 (70 FR Most of the handlers are vertically
success in developing new varieties of 57995). No comments were received as integrated operations involved in
improved quality melons, and intense a result of that publication and a final growing, shipping, and marketing
domestic and foreign competition. rule was published in the Federal melons. For the 2003–04 marketing
Acreage decreased from a high of 27,463 Register on December 7, 2005 (70 FR year, the industry’s 16 handlers shipped
acres in 1987 to 4,780 acres in 2004. The 72699). The rule continued to relieve melons produced on 4,780 acres with
number of producers and handlers has handlers of regulatory requirements the average and median volume handled
decreased significantly as well. while USDA evaluated the Committee’s being 89,012 and 10,655 containers,
Because of the declining status of the recommendation for terminating the respectively. In terms of production
industry, on September 16, 2004, the order. value, total revenue for the 16 handlers
Committee recommended suspending In order to solicit input from was estimated to be $12,175,919, with
all regulatory and reporting interested parties regarding termination the average and median revenues being
requirements and assessment of the order, USDA issued a proposed $760,996 and $91,094, respectively.
collections under the order for the termination order on December 22, 2005 Complete comparable data is not
2004–05 season, except one reporting (70 FR 75984). A 60-day comment available for the 2004–05 marketing
requirement regarding planted acreage. period was provided to allow interested year, but based on a reduction of acreage
The suspension was recommended for parties the opportunity to comment. No from 4,780 acres in 2003–04 to 2,364
one season with the hope that new comments were received. acres in 2004–05, and the reduced
melon varieties may be developed to Pursuant to section 8c(16)(A) of the number of growers and handlers, it
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help revive the industry, and to provide Act and § 979.84 of the order, USDA has follows that the volume handled and the
a period of time to allow the Committee determined that the order and all of its value of production likely declined as
to evaluate whether it believed the provisions should be terminated due to well.
marketing order should be continued. the declining status of the industry and The South Texas melon industry is
An interim final rule suspending the lack of industry support for the characterized by growers and handlers
regulatory and reporting requirements program. Section 8c(16)(A) of the Act whose farming operations generally

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33180 Federal Register / Vol. 71, No. 110 / Thursday, June 8, 2006 / Rules and Regulations

involve more than one commodity, and maturity, container, pack, inspection, handlers by 24.90 hours, and should
whose income from farming operations and related requirements for the 2004– further reduce industry expenses.
is not exclusively dependent on the 05 fiscal period. It decreased industry USDA has not identified any relevant
production of melons. Alternative crops expenses associated with inspection and Federal rules that duplicate, overlap or
provide an opportunity to utilize many payment of assessments. During the conflict with this rule.
of the same facilities and equipment not 2003–04 season, inspection costs A small business guide on complying
in use when the melon production associated with the order were with fruit, vegetable, and specialty crop
season is complete. For this reason, estimated at $46,000 and assessments marketing agreements and orders may
typical melon growers and handlers collected were $102,988. These costs be viewed at: http://www.ams.usda.gov/
either double-crop melons during other were not incurred during the 2004–05 fv/moab.html. Any questions about the
times of the year or produce alternative season as a result of the suspension of compliance guide should be sent to Jay
crops, like onions. regulations and assessment obligations.
Based on the SBA’s definition of Guerber at the previously mentioned
The Committee met on September 7, address in the FOR FURTHER INFORMATION
small entities, it is estimated that all of 2005, to evaluate the industry situation
the seven handlers regulated by the CONTACT section.
since the regulations were suspended.
order would be considered small As previously discussed, planted A proposed rule inviting comments
entities if only their spring melon acreage continued to decline and the on the proposed termination of
revenues are considered. However, number of melon growers and handlers Marketing Order 979 covering melons
revenues from other productive also continued to decline during the grown in South Texas was published in
enterprises might push a number of 2004–05 season. In addition, no new the Federal Register on December 22,
these handlers above the $6,500,000 varieties were introduced to improve 2005 (70 FR 75984). Copies of the rule
annual receipt threshold. Of the 13 the quality and make South Texas were mailed by the Committee’s staff to
growers within the production area, few melons more competitive with other handlers and growers. In addition, the
have sufficient acreage to generate sales producing areas. The Committee rule was made available through the
in excess of $750,000; therefore, the believed that there was no longer a need Internet by the USDA and the Office of
majority of growers may be classified as for the order, and therefore the Federal Register. The rule provided
small entities. unanimously recommended its a 60-day comment period which ended
The South Texas cantaloupe and on February 21, 2006. No comments
termination.
honeydew melon industry has been were received.
Suspension of regulations, reporting
shrinking. South Texas historically had As previously discussed, the South
requirements, and assessment
enjoyed a marketing window of Texas melon industry has continually
collections was continued for an
approximately six weeks beginning declined. Currently, there are 7
about May 1 each season. That window indefinite period, and the one remaining
reporting requirement regarding planted handlers, 13 growers, and a relatively
has steadily eroded in recent years due small 2,364 acres. Further, the
to strong competition from other melon acreage was also suspended indefinitely
pursuant to publication in the Federal Committee recommended unanimously
producing areas, and quality problems to terminate the program, and no
with Texas melons. As a result, acreage Register on October 5, 2005 (70 FR
57995). No comments were received as comments were received concerning the
has decreased dramatically from a high proposed termination published in the
of 27,463 acres in 1987, to 4,780 in a result of that publication and a final
rule was published in the Federal Federal Register. Based on the
2004, and 2,364 acres in 2005. The foregoing, and pursuant to § 608c(16)(A)
number of producers and handlers also Register on December 7, 2005 (70 FR
72699). The rule continued to relieve of the Act and § 979.84 of the order, it
has steadily declined. is hereby found that Federal marketing
Because of the declining status of the handlers of regulatory requirements
while USDA evaluated the Committee’s order 979 covering melons produced in
industry, the Committee recommended
recommendation for terminating the South Texas does not tend to effectuate
suspending all regulatory and reporting
order. the declared policy of the Act, and is
requirements and assessment
In order to solicit input from therefore terminated.
collections under the order for the
2004–05 season, except one reporting interested parties regarding termination It is further found that good cause
requirement regarding planted acreage. of the order, USDA issued a proposed exists for not postponing the effective
The suspension was recommended for termination order on December 22, 2005 date of this rule until 30 days after
one season with the hope that new (70 FR 75984). A 60-day comment publication in the Federal Register (5
melon varieties may be developed to period was provided to allow interested U.S.C. 553 because: (1) This action
help revive the industry, and to provide parties the opportunity to comment. No relieves restrictions on handlers by
a period of time to allow the Committee comments were received. After terminating the requirements of the
to evaluate whether it believed the evaluating all available information, Texas melon marketing order; (2)
marketing order should be continued. USDA has determined that the order regulations under the order have been
An interim final rule suspending the should be terminated. suspended for the past two crop years;
regulatory and reporting requirements In accordance with the Paperwork (3) the Committee unanimously
and assessment collections for the Reduction Act of 1995 (44 U.S.C. recommended termination, and all
2004–05 season, except for one Chapter 35), the information collection handlers and growers in the industry
reporting requirement regarding planted requirements being terminated by this have been notified and have been
acreage, was published in the Federal rule were approved previously by the provided the opportunity to comment;
Register on November 26, 2004 (69 FR Office of Management and Budget and (4) no useful purpose would be
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68761), followed by a final rule (OMB) and assigned OMB No. 0581– served by delaying the effective date.
published on February 23, 2005 (70 FR 0178, Vegetable and Specialty Crops. List of Subjects in 7 CFR Part 979
8709). Termination of all the reporting
Suspending the regulations enabled requirements under the order is Marketing agreements, Melons,
handlers to ship melons without regard expected to reduce the reporting burden Reporting and recordkeeping
to the minimum grade, quality, on small or large South Texas melon requirements.

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Federal Register / Vol. 71, No. 110 / Thursday, June 8, 2006 / Rules and Regulations 33181

PART 979—[REMOVED] accepted accounting principles do not Paperwork Elimination Act, which
reflect the current market value of real requires Government agencies, in
■ For the reasons set forth in the property assets owned by the borrower. general, to provide the public the option
preamble, and under the authority of 7 In the case of all direct or guaranteed of submitting information or transacting
U.S.C. 601–674, 7 CFR part 979 is loan applications, the tangible net business electronically to the maximum
removed. equity calculation may include a extent possible.
Dated: June 2, 2006. restricted universe of qualified
intellectual property. The Agency is also Environmental Impact Statement
Lloyd C. Day,
Administrator, Agricultural Marketing increasing the equity requirements It is the determination of the Agency
Service. applicable to energy businesses. that this action is not a major Federal
[FR Doc. E6–8895 Filed 6–7–06; 8:45 am] EFFECTIVE DATE: July 10, 2006. action significantly affecting the
FOR FURTHER INFORMATION CONTACT: Fred environment. Therefore, in accordance
BILLING CODE 3410–02–P
Kieferle, Rural Business-Cooperative with the National Environmental Policy
Service, USDA, Stop 3224, Room 6845, Act of 1969, an Environmental Impact
DEPARTMENT OF AGRICULTURE 1400 Independence Ave., SW., Statement is not required.
Washington, DC 20250–3224, Executive Order 12988
Rural Business-Cooperative Service Telephone (202) 720–7818, Fax (202)
This final rule has been reviewed in
720–6003, or E-mail:
7 CFR Parts 1980 and 4279 fred.kieferle@wdc.usda.gov. accordance with E.O. 12988, Civil
Justice Reform. In accordance with this
RIN 0570–AA49 SUPPLEMENTARY INFORMATION: rule: (1) All state and local laws and
Classification regulations that are in conflict with this
Business and Industry Guaranteed
Loans—Tangible Balance Sheet Equity rule will be preempted; (2) no
This final rule has been determined to retroactive effect will be given to this
AGENCY: Rural Business-Cooperative be not significant for purposes of rule; and (3) administrative proceedings
Service, USDA. Executive Order (E.O.) 12866 and, in accordance with 7 CFR part 11 must
therefore, has not been reviewed by the be exhausted before bringing suit in
ACTION: Final rule.
Office of Management and Budget. court challenging action taken under
SUMMARY: In this final rule the Rural Programs Affected this rule unless those regulations
Business-Cooperative Service (the specifically allow bringing suit at an
Agency) amends existing regulations The Catalog of Federal Domestic
Assistance Program number assigned to earlier time.
relating to Business and Industry (B&I)
loans made or guaranteed by the Agency the applicable programs is 10.768, Unfunded Mandates Reform Act of
by modifying the provisions that Business and Industry Loans. 1995
address the evaluation of credit quality. Program Administration Title II of the Unfunded Mandates
Changes to these underwriting Reform Act of 1995 (UMRA) establishes
These programs are administered
provisions were originally proposed on requirements for Federal agencies to
through the Business and Industry
January 16, 2004. The scope of this final assess the effects of their regulatory
rule is more limited than originally Division of the Rural Business-
Cooperative Service within the Rural actions on state, local, and tribal
proposed but also implements a change governments and the private sector.
not originally discussed in the proposed Development mission area of USDA and
delivered via the USDA Rural Under section 202 of the UMRA, USDA
rule. Specifically, in the case of the must prepare a written statement,
refinancing of USDA or other Federal Development State Directors.
including a cost benefit analysis, for
agency debt only, the Agency is Executive Order 12372 proposed and final rules with ‘‘Federal
modifying the definition of tangible As stated in the Notice related to 7 mandates’’ that may result in
balance sheet equity to include the off CFR part 3015, subpart V, the programs expenditures to state, local or tribal
balance sheet value of tangible assets to and activities within this rule are governments, in the aggregate, or to the
the extent of the difference between the subject to E.O. 12372 which requires private sector, of $100 million or more
depreciated book value of real property intergovernmental consultation in the in any one year. When such a statement
assets and their current market value manner delineated in 7 CFR part 3015, is needed for a rule, section 205 of
supported by an appraisal or the subpart V. Accordingly, agency UMRA generally requires USDA to
original book value, whichever is less. personnel advise all prospective identify and consider a reasonable
In these limited cases, the adjusted applicants of whether their state has number of regulatory alternatives and
tangible balance sheet equity will also elected to participate in the consultation adopt the least costly, more cost
include qualified subordinated debt process by designating a single point of effective or least burdensome alternative
owed to the owner. As stated above, contact and name of that contact point. that achieves the objectives of the rule.
these adjustments to the equity This rule contains no Federal
calculation will apply only in cases Paperwork Reduction Act mandates (under the regulatory
where the Agency is asked to guarantee In accordance with the Paperwork provisions of title II of the UMRA) for
a refinancing of outstanding debt Reduction Act of 1995, the information state, local, and tribal governments or
currently owed to or guaranteed by a collection requirements contained in the private sector. Therefore this rule is
Federal agency, including the Small this regulation have been approved by not subject to the requirements of
Business Administration. The intended OMB under control numbers 0570–0014 sections 202 and 205 of UMRA.
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effect of this action is to facilitate and 0570–0017.


Agency guarantees of certain Regulatory Flexibility Act
refinancing loans that otherwise would Government Paperwork Elimination In compliance with the Regulatory
not meet the equity requirements Act Flexibility Act (5 U.S.C. 601–612), the
because the financial statements The Agency is committed to undersigned has determined and
prepared in accordance with generally compliance with the Government certified by signature of this document

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