[Federal Register Volume 64, Number 187 (Tuesday, September 28, 1999)]
[Rules and Regulations]
[Pages 52214-52216]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-25092]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 931
[Docket No. FV99-931-1 FR]
Fresh Bartlett Pears Grown in Oregon and Washington; Increased
Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: This rule increases the assessment rate established for the
Northwest Fresh Bartlett Pear Marketing Committee (Committee) under
Marketing Order No. 931 for the 1999-2000 and subsequent fiscal periods
from $0.02 to $0.025 per standard box of fresh Bartlett pears handled.
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 1999-2000 fiscal period
began July 1 and ends June 30. The assessment rate will remain in
effect indefinitely unless modified, suspended, or terminated.
EFFECTIVE DATE: September 29, 1999.
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) 720-5698. Small businesses may request information
on complying 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) 720-5698, or E-mail: Jay.G[email protected].
[[Page 52215]]
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement No. 141 and Order No. 931 (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 (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 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, 1999, and continue until modified,
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 increases the assessment rate established for the
Committee for the 1999-2000 and subsequent fiscal periods from $0.02 to
$0.025 per standard box of fresh Bartlett pears handled.
The fresh Bartlett pear marketing 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 Committee consists of eight grower members and six
handler members, each of whom is 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 budget and assessment rate were discussed at a public meeting
and all directly affected persons have an opportunity to participate
and provide input.
For the 1998-99 and subsequent fiscal periods, the Committee
recommended, and the Department approved, an assessment rate of $0.02
per standard box 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 June 3, 1999, and unanimously recommended
1999-2000 expenditures of $77,231 and an assessment rate of $0.025 per
standard box of fresh Bartlett pears handled. In comparison, last
year's budgeted expenditures were $97,000. The assessment rate of
$0.025 is $0.005 higher than the rate currently in effect. The
Committee recommended an increased assessment rate because assessable
1999-2000 tonnage is expected to be less than the five-year average of
2,910,048 standard boxes, and the current rate will not generate enough
income to adequately administer the program.
Major expenses recommended by the Committee for the 1999-2000
fiscal period include $40,433 for salaries, $5,323 for office rent, and
$4,048 for health insurance. Budgeted expenses for these items in 1998-
99 were $38,878, $5,323, and $4,062, respectively.
The assessment rate recommended by the Committee was derived by
dividing anticipated expenses by expected shipments of fresh Bartlett
pears. Fresh Bartlett pear shipments for the year are estimated at
2,630,450 standard boxes, which should provide $65,761 in assessment
income. Income derived from handler assessments, along with funds from
the Committee's authorized reserve and miscellaneous income, should be
adequate to cover budgeted expenses. Funds in the reserve (currently
$23,604) will be kept within the maximum permitted by the order of
approximately one fiscal year's operational expenses (Sec. 931.42).
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 will be in effect 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
1999-2000 budget and those for subsequent fiscal periods would 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 rule on small entities. Accordingly, the 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.
Currently, about 98.5 percent of the fresh Bartlett pear handlers
ship less that $5,000,000 worth of fresh Bartlett pears and 1.5 percent
ship more than $5,000,000 worth on an annual basis. In addition, based
on acreage, production, and producer prices reported by the National
Agricultural Statistics Service, and the total number of fresh Bartlett
pear producers, the average annual producer revenue is approximately
$12,250. In view of the foregoing, it can be concluded that the
majority of fresh Bartlett pear producers and handlers may be
classified as small entities.
[[Page 52216]]
This rule increases the assessment rate established for the
Committee and collected from handlers for the 1999-2000 and subsequent
fiscal periods from $0.02 to $0.025 per standard box of fresh Bartlett
pears handled. The Committee met on June 3, 1999, and unanimously
recommended 1999-2000 expenditures of $77,231 and an assessment rate of
$0.025 per standard box of fresh Bartlett pears handled. In comparison,
last year's budgeted expenditures were $97,000. The assessment rate of
$0.025 is $0.005 more than the rate currently in effect. The Committee
recommended an increased assessment rate because assessable 1999-2000
tonnage is expected to be smaller than the five-year average of
2,910,048 standard boxes, and the current rate will not generate enough
income to adequately administer the program.
Major expenses recommended by the Committee for the 1999-2000
fiscal period include $40,433 for salaries, $5,323 for office rent, and
$4,048 for health insurance. Budgeted expenses for these items in 1998-
99 were $38,878, $5,323, and $4,062, respectively.
The assessment rate recommended by the Committee was derived by
dividing anticipated expenses by expected shipments of fresh Bartlett
pears. Fresh Bartlett pear shipments for the year are estimated at
2,630,450 standard boxes, which should provide $65,761 in assessment
income. Income derived from handler assessments, along with funds from
the Committee's authorized reserve and miscellaneous income, should be
adequate to cover budgeted expenses. The reserve is within the maximum
permitted by the order of approximately one fiscal period's operational
expenses (Sec. 931.42).
The Committee considered alternative levels of assessment but
determined that, with the reduced estimate of assessable tonnage,
increasing the assessment rate to $0.025 per standard box would be
appropriate. The Committee decided that an assessment rate of more than
$0.025 per standard box would generate income in excess of that needed
to adequately administer the program.
A review of historical information and preliminary information
pertaining to the upcoming crop indicates that the producer price for
the 1999-2000 marketing season could range between $8.56 and $12.72 per
standard box of fresh Bartlett pears handled. Therefore, the estimated
assessment revenue for the 1999-2000 fiscal period as a percentage of
total producer revenue should range between 0.29 and 0.20 percent.
This action increases the assessment obligation imposed on
handlers. While assessments impose some additional costs on handlers,
the costs are minimal and uniform on all handlers. Some of the
additional costs may be passed on to producers. However, these costs
would 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 June 3, 1999, meeting was a public meeting and all entities, both
large and small, were able to express views on this issue.
This rule imposes no 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 rule.
A proposed rule concerning this action was published in the Federal
Register on August 6, 1999 (64 FR 42858). The proposal was made
available through the Internet by the Office of the Federal Register. A
copy of the proposed rule was also mailed to the Committee's
administrative office for distribution to producers and handlers. A 30-
day comment period ending September 7, 1999, was provided for
interested persons to respond to the proposal. No comments were
received.
A small business guide on complying with fruit, vegetable, and
speciality crop marketing agreements and orders may be viewed at the
following web site: http://www.ams.usda.gov/fv/moab.html. Any questions
about the compliance guide should be sent to Jay Guerber at the
previously mentioned address in the FOR FURTHER INFORMATION CONTACT
section.
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.
Pursuant to 5 U.S.C. 553, it 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
1999-2000 fiscal period began on July 1, 1999, and the order requires
that the rate of assessment for each fiscal period apply to all
assessable fresh Bartlett pears handled during such fiscal period; (2)
the Committee needs to have sufficient funds to pay its expenses which
are incurred on a continuous basis; (3) handlers are aware of this
action which was unanimously recommended by the Committee at a public
meeting and is similar to other assessment rate actions issued in past
years. Also, a 30-day comment period was provided for in the proposed
rule.
List of Subjects in 7 CFR Part 931
Marketing agreements, Pears, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 931 is
amended as follows:
PART 931--FRESH BARTLETT PEARS GROWN IN OREGON AND WASHINGTON
1. The authority citation for 7 CFR part 931 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
2. Section 931.231 is revised to read as follows:
Sec. 931.231 Assessment rate.
On and after July 1, 1999, an assessment rate of $0.025 per western
standard pear box is established for the Northwest Fresh Bartlett Pear
Marketing Committee.
Dated: September 21, 1999.
Larry B. Lace,
Acting Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 99-25092 Filed 9-27-99; 8:45 am]
BILLING CODE 3410-02-P