[Federal Register Volume 65, Number 130 (Thursday, July 6, 2000)]
[Rules and Regulations]
[Pages 41557-41559]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-16990]



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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 931

[Docket No. FV00-931-1 IFR]


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

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: This interim final rule decreases the assessment rate 
established for the Northwest Fresh Bartlett Pear Marketing Committee 
(Committee) under Marketing Order No. 931 for the 2000-2001 and 
subsequent fiscal periods from $0.025 to $0.02 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 2000-2001 fiscal period begins July 1 and ends June 30. The 
assessment rate will continue in effect indefinitely unless modified, 
suspended, or terminated.

DATES: Effective July 7, 2000. Comments received by September 5, 2000, 
will be considered prior to issuance of a final rule.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this rule. Comments must be sent to the Docket Clerk, 
Marketing Order Administration Branch, Fruit and Vegetable Programs, 
AMS, USDA, room 2525-S, P.O. Box 96456, Washington, DC 20090-6456; Fax: 
(202) 720-5698, or E-mail: [email protected]. Comments should 
reference the docket number and the date and page number of this issue 
of the Federal Register and will be available for public inspection in 
the Office of the Docket Clerk during regular business hours, or can be 
viewed at: http://www.ams.usda.gov/fv/moab.html.

FOR FURTHER INFORMATION CONTACT: Teresa L. Hutchinson, Northwest 
Marketing Field Office, Fruit and Vegetable Programs, AMS, USDA, 1220 
SW Third Avenue, suite 385, 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: 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, P.O. Box 96456, room 
2525-S, Washington, DC 20090-6456; telephone: (202) 720-2491, Fax: 
(202) 720-5698, or E-mail: [email protected].

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, 2000, and continuing 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 decreases the assessment rate established for the 
Committee for the 2000-2001 and subsequent fiscal periods from $0.025 
to $0.02 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 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 1999-2000 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 June 1, 2000, and unanimously recommended 
2000-2001 expenditures of $81,060 and an assessment rate of $0.02 per 
standard box of fresh Bartlett pears handled. In comparison, last 
year's budgeted expenditures were $77,231. The assessment rate of $0.02 
is $0.005 less than the rate now in effect and will reduce the 
financial burden on handlers. At the current rate of $0.025 per 
standard box and with estimated 2000-2001 fresh Bartlett pear shipments 
of 3,200,000 standard boxes, the projected reserve on June 30, 2001, 
would exceed the level the Committee believes to be adequate to 
administer the program. The Committee discussed lower assessment rates, 
but decided that an assessment rate of less than $0.02 would not 
generate the income necessary to administer the program with an 
adequate reserve. The decreased assessment rate is expected to result 
in an operating reserve of $19,261 on June 30, 2001.
    Major expenses recommended by the Committee for the 2000-2001 
fiscal period include $44,468 for salaries, $4,847 for office rent, and 
$3,891 for health insurance. Budgeted expenses for these items in 1999-
2000 were $40,433, $5,323, and $4,048, respectively.

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    The Committee based its recommended assessment rate on the 2000-
2001 crop estimate, the 2000-2001 fiscal period expenditures estimate, 
and the current and projected balance of the operating reserve. With 
fresh Bartlett pear shipments for 2000-2001 estimated at 3,200,000 
standard boxes, the $0.02 per standard box assessment rate should 
provide $64,000 in assessment income. Income derived from handler 
assessments, along with $13,060 from the Committee's authorized reserve 
(currently $32,321) and miscellaneous income ($3,000), will be adequate 
to cover budgeted expenses. Funds in the reserve (estimated to be 
$19,261 at the end of the 2000-2001 fiscal period) will be kept within 
the maximum permitted by the order (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 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 
2000-2001 budget 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 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 
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 are defined by 
the Small Business Administration (13 CFR 121.201) 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 under $5,000,000 worth of fresh Bartlett pears and 1.5 percent 
ship over $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 
$9,800. 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, excluding receipts from other sources.
    This rule decreases the assessment rate established for the 
Committee and collected from handlers for the 2000-2001 and subsequent 
fiscal periods from $0.025 to $0.02 per standard box of fresh Bartlett 
pears handled. The Committee unanimously recommended 2000-2001 
expenditures of $81,060 and an assessment rate of $0.02 per standard 
box of fresh Bartlett pears handled. In comparison, last year's 
budgeted expenditures were $77,231. The assessment rate of $0.02 is 
$0.005 less than the rate currently in effect. At the rate of $0.025 
per standard box and with 2000 fresh Bartlett pear shipments estimated 
at 3,200,000 standard boxes, the projected reserve on June 30, 2001, 
would exceed the level the Committee believes to be adequate to 
administer the program. The assessment rate reduction would also lessen 
the financial burden on handlers. The Committee decided that an 
assessment rate of less than $0.02 would not generate the income 
necessary to administer the program with an adequate reserve.
    Major expenses recommended by the Committee for the 2000-2001 
fiscal period include $44,468 for salaries, $4,847 for office rent, and 
$3,891 for health insurance. Budgeted expenses for these items in 1999-
2000 were $40,433, $5,323, and $4,048, respectively.
    With fresh Bartlett pear shipments for 2000-2001 estimated at 
3,200,000 standard boxes, the $0.02 rate of assessment should provide 
$64,000 in assessment income. Income derived from handler assessments, 
along with $13,060 from the Committee's authorized reserve (currently 
$32,321) and miscellaneous income ($3,000), will be adequate to cover 
budgeted expenses. Funds in the reserve (estimated to be $19,261 at the 
end of the 2000-2001 fiscal period) will be kept within the maximum 
permitted by the order (approximately one fiscal year's operational 
expenses; 931.42).
    Recent price information indicates that the grower price for the 
2000-2001 marketing season will range between $8.60 and $11.30 per 
standard box of fresh Bartlett pears. Therefore, the estimated 
assessment revenue for the 2000-2001 fiscal period as a percentage of 
total grower revenue will range between 0.18 and 0.23 percent.
    This action decreases 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, decreasing the 
assessment rate reduces the burden on handlers and may reduce the 
burden on producers.
    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 1, 
2000, meeting was a public meeting and all entities, both large and 
small, were able to express views on this issue. Finally, interested 
persons are invited to submit information on the regulatory and 
informational impacts of this action on small businesses.
    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 rule.
    A small business guide on complying with fruit, vegetable, and 
specialty crop marketing agreements and orders may be viewed at: 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 matter presented, including the

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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 is also found and determined upon good 
cause that it is impracticable, unnecessary, and contrary to the public 
interest to give preliminary notice prior to putting this rule into 
effect, and that good cause exists for not postponing the effective 
date of this rule until 30 days after publication in the Federal 
Register because: (1) This action reduces the current assessment rate 
for fresh Bartlett pears; (2) the 2000-2001 fiscal period begins on 
July 1, 2000, and the marketing order requires that the rate of 
assessment for each fiscal period apply to all assessable fresh 
Bartlett pears handled during such fiscal period; (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; and (4) this interim final rule provides a 60-day 
comment period, and all comments timely received will be considered 
prior to finalization of this 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, 2000, an assessment rate of $0.02 per western 
standard pear box is established for the Northwest Fresh Bartlett Pear 
Marketing Committee.

    Dated: June 27, 2000.
Robert C. Keeney,
Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 00-16990 Filed 7-5-00; 8:45 am]
BILLING CODE 3410-02-P