[Federal Register Volume 61, Number 196 (Tuesday, October 8, 1996)]
[Rules and Regulations]
[Pages 52681-52682]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-25706]



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 Rules and Regulations
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  Federal Register / Vol. 61, No. 196 / Tuesday, October 8, 1996 / 
Rules and Regulations  

[[Page 52681]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 927 and 931

[Docket No. FV96-927-2 FIR]


Assessment Rates for Specified Marketing Orders

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: The Department of Agriculture (Department) is adopting as a 
final rule, without change, the provisions of an interim final rule 
that established assessment rates for Marketing Order Nos. 927 and 931 
for the 1996-97 and subsequent fiscal periods. The Winter Pear Control 
Committee and the Northwest Fresh Bartlett Marketing Committee 
(Committees) are responsible for local administration of the marketing 
orders which regulate the handling of winter pears grown in Oregon, 
Washington, and California and fresh Bartlett pears grown in Oregon and 
Washington. Authorization to assess winter pear and fresh Bartlett pear 
handlers enables the Committees to incur expenses that are reasonable 
and necessary to administer the programs.

EFFECTIVE DATE: July 1, 1996.

FOR FURTHER INFORMATION CONTACT: Tershirra Yeager, Marketing Assistant, 
Marketing Order Administration Branch, Fruit and Vegetable Division, 
AMS, USDA, P.O. Box 96456, Room 2522-S, Washington, DC 20090-6456, 
telephone (202) 720-5127, FAX# (202) 720-5698, or Teresa L. Hutchinson, 
Marketing Specialist, Northwest Marketing Field Office, Fruit and 
Vegetable Division, AMS, USDA, 1220 SW Third Avenue, room 369, 
Portland, OR 97204, telephone (503) 326-2724, FAX# (503) 326-7440. 
Small businesses may request information on compliance with this 
regulation by contacting: Jay Guerber, Marketing Order Administration 
Branch, Fruit and Vegetable Division, AMS, USDA, P.O. Box 96456, Room 
2523-S, Washington, DC 20090-6456; telephone: (202) 720-2491, FAX# 
(202) 720-5698.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing 
Agreement and Order No. 927 [7 CFR part 927], regulating the handling 
of winter pears grown in Oregon, Washington, and California, and 
Marketing Order No. 931 [7 CFR part 931] regulating the handling of 
fresh Bartlett pears grown in Oregon and Washington, hereinafter 
referred to as the ``orders.'' The marketing agreements and orders are 
effective under the Agricultural Marketing Agreement Act of 1937, as 
amended (7 U.S.C. 601-674), hereinafter referred to as the ``Act.''
    The Department of Agriculture (Department) is issuing this rule in 
conformance with Executive Order 12866.
    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. Under the marketing orders now in effect, handlers in 
designated areas are subject to assessments. Funds to administer the 
orders are derived from such assessments. It is intended that the 
assessment rates as issued herein will be applicable to all assessable 
winter pears and fresh Bartlett pears beginning July 1, 1996, and 
continuing until amended, suspended, or terminated. This rule will not 
preempt any State or local laws, regulations, or policies, unless they 
present an irreconcilable conflict with this rule.
    The Act provides that administrative proceedings must be exhausted 
before parties may file suit in court. Under section 608c(15)(A) of the 
Act, any handler subject to an order may file with the Secretary a 
petition stating that the order, any provision of the order, or any 
obligation imposed in connection with the order is not in accordance 
with law and request a modification of the order or to be exempted 
therefrom. Such handlers are afforded the opportunity for a hearing on 
the petition. After the hearing the Secretary would rule on the 
petition. The Act provides that the district court of the United States 
in any district in which the handler is an inhabitant, or has his or 
her principal place of business, has jurisdiction to review the 
Secretary's ruling on the petition, provided an action is filed not 
later than 20 days after the date of the entry of the ruling.
    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA), the Agricultural Marketing Service (AMS) has considered the 
economic impact of this rule on small entities.
    The purpose of the RFA is to fit regulatory actions to the scale of 
business subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened. Marketing orders issued 
pursuant to the Act, and the rules issued thereunder, are unique in 
that they are brought about through group action of essentially small 
entities acting on their own behalf. Thus, both statutes have small 
entity orientation and compatibility.
    There are approximately 90 handlers of winter pears and 65 handlers 
of fresh Bartlett pears subject to regulation under the marketing 
orders. In addition, there are about 1,800 winter pear and fresh 
Bartlett pear producers in the respective production areas. Small 
agricultural producers have been defined by the Small Business 
Administration (13 CFR 121.601) as those having annual receipts of less 
than $500,000, and small agricultural service firms are defined as 
those whose annual receipts are less than $5,000,000. The majority of 
winter pear and fresh Bartlett pear producers and handlers may be 
classified as small entities.
    The orders provide authority for the Committees, with the approval 
of the Department, to formulate annual budgets of expenses and collect 
assessments from handlers to administer the programs. The members of 
the Committees are producers and handlers of Oregon, Washington, and 
California pears. They are familiar with the Committees' needs and with 
the costs for goods and services in their local areas and are thus in a 
position to formulate appropriate budgets and assessment rates. The 
assessment rates are formulated and discussed in public meetings. Thus, 
all directly affected persons have an opportunity to participate and 
provide input.
    The Winter Pear Control Committee met on May 31, 1996, and 
unanimously recommended 1996-97 expenditures of $5,887,084 and an 
assessment rate of $0.405 per standard box. In comparison,

[[Page 52682]]

last year's budgeted expenditures were $7,384,440.
    The assessment rate recommended by the Committee was derived by 
dividing anticipated expenses by expected shipments of winter pears 
grown in Oregon, Washington, and California. Winter pear shipments for 
the year are estimated at 12,465,800 standard boxes which should 
provide assessment revenue of $5,048,649. Income derived from handler 
assessments, along with interest income and funds from the Committee's 
authorized reserve, will be adequate to cover budgeted expenses. Funds 
in the reserve will be kept within the maximum permitted by the order.
    Major expenditures recommended by the Winter Pear Control Committee 
for the 1996-97 year include $154,387 for salaries, $4,674,675 for paid 
advertising, and $249,316 for production research. Budgeted expenses 
for these items in 1995-96 were $147,152, $6,064,163, and $323,422, 
respectively.
    The Northwest Fresh Bartlett Marketing Committee met on May 30, 
1996, and unanimously recommended 1996-97 expenditures of $89,774 and 
an assessment rate of $0.0375 per western standard pear box. In 
comparison, last year's budgeted expenditures were $92,254.
    The assessment rate recommended by the Committee was derived by 
dividing anticipated expenses by expected shipments of fresh Bartlett 
pears grown in Oregon and Washington. Shipments for the year are 
estimated at 1,842,000 packed boxes which should provide $69,075 in 
assessment income. Income derived from handler assessments, along with 
interest income and funds from the Committee's authorized reserve, will 
be adequate to cover budgeted expenses. Funds in the reserve will be 
kept within the maximum permitted by the order.
    Major expenditures recommended by the Northwest Fresh Bartlett 
Marketing Committee for the 1996-97 year include $46,306 for salaries, 
$4,991 for health insurance, and $7,016 for office rent. Budgeted 
expenses for these items in 1995-96 were $44,135, $4,989 and $5,206, 
respectively.
    An interim final rule regarding this action was published in the 
August 16, 1996, issue of the Federal Register (61 FR 42529). That rule 
provided a 30-day comment period. No comments were received.
    While this rule will impose some additional costs on handlers, the 
costs are in the form of uniform assessments on all handlers. Some of 
the additional costs may be passed on to producers. However, these 
costs will be offset by the benefits derived by the operation of the 
marketing orders. Therefore, the AMS has determined that this rule will 
not have a significant economic impact on a substantial number of small 
entities.
    The assessment rates established in this rule will continue in 
effect indefinitely unless modified, suspended, or terminated by the 
Secretary upon recommendation and information submitted by the 
Committees or other available information.
    Although these assessment rates are effective for an indefinite 
period, the Committees will continue to meet prior to or during each 
fiscal period to consider recommendations for modification of the 
assessment rates.
    The dates and times of Committee meetings are available from the 
Committees or the Department. Committee meetings are open to the public 
and interested persons may express their views at these meetings. The 
Department will evaluate Committee recommendations and other available 
information to determine whether modifications of the assessment rates 
are needed. Further rulemaking will be undertaken as necessary. The 
Committees' 1996-97 budgets and those for subsequent fiscal periods 
will be reviewed and, as appropriate, approved by the Department.
    After consideration of all relevant material presented, including 
the information and recommendation submitted by the Committees and 
other available information, it is hereby found that this rule, as 
hereinafter set forth, will tend to effectuate the declared policy of 
the Act.
    Pursuant to 5 U.S.C. 553, it is also found and determined that good 
cause exists for not postponing the effective date of this rule until 
30 days after publication in the Federal Register because: (1) The 
Committees need to have sufficient funds to pay their expenses which 
are incurred on a continuous basis; (2) the 1996-97 fiscal periods 
began on July 1, 1996, and the marketing orders require that the rates 
of assessment for each fiscal period apply to all assessable winter 
pears and fresh Bartlett pears handled during such fiscal period; (3) 
handlers are aware of the actions which were recommended by the 
Committees at public meetings and are similar to other assessment rate 
actions issued in past years; and (4) an interim final rule was 
published on this action, providing a 30-day comment period, and no 
comments were received.

List of Subjects

7 CFR Part 927

    Marketing agreements, Pears, Reporting and recordkeeping 
requirements.

7 CFR Part 931

    Marketing agreements, Pears, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR parts 927 and 931 
are amended as follows:

PART 927--WINTER PEARS GROWN IN OREGON, WASHINGTON AND CALIFORNIA

PART 931--FRESH BARTLETT PEARS GROWN IN OREGON AND WASHINGTON

    Accordingly, the interim final rule amending 7 CFR parts 927 and 
931 which was published at 61 FR 42529 on August 16, 1996, is adopted 
as a final rule without change.

    Dated: October 1, 1996.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 96-25706 Filed 10-7-96; 8:45 am]
BILLING CODE 3410-02-P