[Federal Register Volume 62, Number 226 (Monday, November 24, 1997)]
[Rules and Regulations]
[Pages 62506-62508]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-30785]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 931

[Docket No. FV97-931-2 FIR]


Fresh Bartlett Pears Grown in Oregon and Washington; Reduced 
Assessment Rate

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 
which decreased the assessment rate established for the Fresh Bartlett 
Pear Marketing Committee (Committee) under Marketing Order No. 931 for 
the 1997-98, and subsequent fiscal periods. The Committee is 
responsible for local administration of the marketing order which 
regulates the handling of fresh Bartlett pears grown in Oregon and 
Washington. Authorization to assess fresh Bartlett pear handlers 
enables the Committee to incur expenses that are reasonable and 
necessary to administer the program. The 1997-98 fiscal period began 
July 1 and ends June 30. The assessment rate will continue in effect 
indefinitely unless modified, suspended, or terminated.

EFFECTIVE DATE: December 24, 1997.

FOR FURTHER INFORMATION CONTACT: Teresa L. Hutchinson, Northwest 
Marketing Field Office, Fruit and Vegetable Programs, AMS, USDA, 1220 
SW Third Avenue, Room 369, Portland, OR 97204; telephone: (503) 326-
2724, Fax: (503) 326-7440 or George J. Kelhart, Marketing Order 
Administration Branch, Fruit and Vegetable Programs, AMS, USDA, Room 
2525-S, P.O. Box 96456, Washington, DC 20090-6456; telephone: (202) 
720-2491, Fax: (202) 205-6632. Small businesses may request information 
on compliance with this regulation by contacting Jay Guerber, Marketing 
Order Administration Branch, Fruit and Vegetable Programs, AMS, USDA, 
Room 2525-S, P.O. Box 96456, Washington, DC 20090-6456; telephone: 
(202) 720-2491, Fax: (202) 205-6632.


[[Page 62507]]


SUPPLEMENTARY INFORMATION: This rule is issued under Marketing 
Agreement No. 141 and Order No. 931, both as amended (7 CFR part 931), 
regulating the handling of fresh Bartlett pears grown in Oregon and 
Washington, hereinafter referred to as the ``order.'' The marketing 
agreement and order 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 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 order now in effect, fresh Bartlett 
pear handlers are subject to assessments. Funds to administer the order 
are derived from such assessments. It is intended that the assessment 
rate as issued herein will be applicable to all assessable fresh 
Bartlett pears beginning July 1, 1997, 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 handler is afforded the opportunity for a hearing on 
the petition. After the hearing the Secretary would rule on the 
petition. The Act provides that the district court of the United States 
in any district in which the handler is an inhabitant, or has his or 
her principal place of business, has jurisdiction to review the 
Secretary's ruling on the petition, provided an action is filed not 
later than 20 days after the date of the entry of the ruling.
    This rule continues in effect the assessment rate established for 
the Committee for the 1997-98, and subsequent fiscal periods of $0.03 
per standard box of fresh Bartlett pears.
    The order provides authority for the Committee, with the approval 
of the Department, to formulate an annual budget of expenses and 
collect assessments from handlers to administer the program. The 
members of the Committee are producers and handlers of fresh Bartlett 
pears. They are familiar with the Committee's needs and with the costs 
for goods and services in their local area and are thus in a position 
to formulate an appropriate budget and assessment rate. The assessment 
rate is formulated and discussed in a public meeting. Thus, all 
directly affected persons have an opportunity to participate and 
provide input.
    For the 1996-97 and subsequent fiscal periods, the Committee 
recommended, and the Department approved, an assessment rate that would 
continue in effect from fiscal period to fiscal period indefinitely 
unless modified, suspended, or terminated by the Secretary upon 
recommendation and information submitted by the Committee or other 
information available to the Secretary.
    The Committee met on May 29, 1997, and unanimously recommended 
1997-98 expenditures of $111,441 and an assessment rate of $0.03 per 
standard box of fresh Bartlett pears. In comparison, last year's 
budgeted expenditures were $89,774. The assessment rate of $0.03 is 
$0.0075 less than the rate previously in effect. The former rate of 
$0.0375 would have resulted in a reserve that exceeded the level the 
Committee believes is necessary to administer the program. The 
Committee discussed alternatives to this rule, including alternative 
assessment levels, but decided that an assessment rate of less than 
$0.03 would not generate the income necessary to administer the program 
with an adequate reserve.
    The assessment rate recommended by the Committee was derived by 
dividing anticipated expenses by expected shipments of fresh Bartlett 
pears. Applying the $0.03 per standard box rate of assessment to the 
Committee's 3,150,000 standard box shipment estimate should provide 
$94,500 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 Committee for the 1997-98 
year include $48,454 for salaries, $8,187 for office rent, and $4,956 
for health insurance. Budgeted expenses for these items in 1996-97 were 
$46,306, $7,016, and $4,991, respectively.
    The assessment rate established in this rule will continue in 
effect indefinitely unless modified, suspended, or terminated by the 
Secretary upon recommendation and information submitted by the 
Committee or other available information.
    Although this assessment rate is effective for an indefinite 
period, the Committee will continue to meet prior to or during each 
fiscal period to recommend a budget of expenses and consider 
recommendations for modification of the assessment rate. The dates and 
times of Committee meetings are available from the Committee 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 modification of the assessment rate is needed. 
Further rulemaking will be undertaken as necessary. The Committee's 
1997-98 budget was approved by the Department on August 26, 1997, and 
those for subsequent fiscal periods will be reviewed and, as 
appropriate, approved by the Department.
    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA), the Agricultural Marketing Service (AMS) has considered the 
economic impact of this action on small entities. Accordingly, AMS has 
prepared this final regulatory flexibility analysis.
    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 1,800 producers of fresh Bartlett pears in 
the production area and approximately 65 handlers subject to regulation 
under the marketing order. Small agricultural producers have been 
defined by the Small Business Administration (13 CFR 121.601) as those 
having annual receipts 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 fresh Bartlett pear producers and handlers 
may be classified as small entities.
    This rule continues in effect a decreased assessment rate 
established for the Committee and collected from handlers for the 1997-
98 and subsequent fiscal periods. The Committee unanimously recommended 
1997-98 expenditures of $111,441 and an assessment rate of $0.03 per 
standard box of fresh Bartlett pears. The assessment rate of $0.03 is 
$0.0075 less than the rate previously in effect. Fresh Bartlett pear 
shipments for the year

[[Page 62508]]

were estimated at 3,150,000 standard boxes, which should provide 
$94,500 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.
    The Committee discussed alternatives to this rule, including 
alternative expenditure levels. The former rate of $0.0375 would have 
resulted in a reserve that exceeded the level the Committee believes is 
necessary to administer the program. Lower assessment rates were 
considered, but not recommended because they would not generate the 
income necessary to administer the program with an adequate reserve. 
Major expenses recommended by the Committee for the 1997-98 fiscal 
period include $48,454 for salaries, $8,187 for office rent, and $4,956 
for health insurance. Budgeted expenses for these items in 1996-97 were 
$46,306, $7,016, and $4,991, respectively.
    Recent price information indicates that the grower price for the 
1997-98 season will range between $5.79 and $12.72 per standard box of 
fresh Bartlett pears. Therefore, the estimated assessment revenue for 
the 1997-98 fiscal period as a percentage of total grower revenue will 
range between 0.24 and 0.52 percent.
    This action will reduce the assessment obligation imposed on 
handlers. While this rule will impose some additional costs on 
handlers, the costs are minimal and 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 order. In addition, the Committee's 
meeting was widely publicized throughout the fresh Bartlett pear 
industry and all interested persons were invited to attend the meeting 
and participate in Committee deliberations on all issues. Like all 
Committee meetings, the May 29, 1997, meeting was a public meeting and 
all entities, both large and small, were able to express views on this 
issue.
    This action will not impose any additional reporting or 
recordkeeping requirements on either small or large fresh Bartlett pear 
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.
    The Department has not identified any relevant Federal rules that 
duplicate, overlap, or conflict with this final rule.
    The interim final rule published in the Federal Register (62 FR 
44884) on August 25, 1997, requested comments to be received by 
September 24, 1997. A copy of the interim final rule was also made 
available on the Internet by the U.S. Government Printing Office. No 
comments were received.
    After consideration of all relevant material presented, including 
the information and recommendation submitted by the Committee and other 
available information, it is hereby found that this rule, as 
hereinafter set forth, will tend to effectuate the declared policy of 
the Act.

List of Subjects in 7 CFR Part 931

    Fresh Bartlett pear, Marketing agreements, Reporting and 
recordkeeping requirements.

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

    Accordingly, the interim final rule amending 7 CFR part 931 which 
was published at 62 FR 44884 on August 25, 1997, is adopted as a final 
rule without change.

    Dated: November 18, 1997.
Robert C. Keeney,
Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 97-30785 Filed 11-21-97; 8:45 am]
BILLING CODE 3410-02-P