Increase in Expenses for the 1994-95 Fiscal Year; Winter Pears Grown in Oregon, Washington, and California

SUMMARY: The Department of Agriculture (Department) is amending the

final rule that authorized expenses and established an assessement rate

for the Winter Pear Control Committee (Committee) under Marketing Order

No. 927 for the 1994-95 fiscal year. This final rule authorizes an

increased level of expenses for the 1994-95 fiscal year. Authorization

of this budget enables the Committee to incur expenses that are

reasonable and necessary to administer the program. Funds to administer

the program are derived from assessments on handlers.

EFFECTIVE DATE: July 1, 1994, through June 30, 1995.

FOR FURTHER INFORMATION CONTACT: Britthany E. Beadle, Marketing Order

Administration Branch, Fruit and Vegetable Division, AMS, USDA, P.O.

Box 96456, room 2523-S, Washington, DC 20090-6456, telephone:(202) 720-

5127; or Teresa L. Hutchinson, Northwest Marketing Field Office, Fruit

and Vegetable Division, AMS, Green-Wyatt Federal Building, room 369,

Portland, Oregon, telephone: (503) 326-2724.

SUPPLEMENTARY INFORMATION: This final 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. The 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 is issuing this rule in conformance with Executive

Order 12866.

This final rule has been reviewed under Executive Order 12778,

Civil Justice Reform. Under the marketing order provisions now in

effect, winter pears grown in Oregon, Washington, and California are

subject to assessments. It is intended that the assessment rate will be

applicable to all assessable pears handled during the 1994-95 fiscal

year, which began July 1, 1994, and ends June 30, 1995. This final 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 requesting 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 in equity to review

the Secretary's ruling on the petition, provided a bill in equity is

filed not later than 20 days after date of the entry of the ruling.

Pursuant to the requirements set forth in the Regulatory

Flexibility Act (RFA), the Administrator of 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 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 regulated under

the marketing order each season and approximately 1,850 winter pear

producers in Oregon, Washington, and California. 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 these handlers and

producers may be classified as small entities.

The Oregon, Washington, and California winter pear marketing order,

administered by the Department, requires that the assessment rate for a

particular fiscal year apply to all assessable winter pears handled

from the beginning of such year. Annual budgets of expenses are

prepared by the Committee, the agency responsible for local

administration of this marketing order, and submitted to the Department

for approval. The members of the Committee are handlers and producers

of Oregon, Washington, and California winter pears. They are familiar

with the Committee's needs and with the costs for goods, services, and

personnel in their local area, and are thus in a position to formulate

appropriate budgets. The Committee's budget is formulated and discussed

in public meetings. Thus, all directly affected persons have an

opportunity to participate and provide input.

The assessment rate recommended by the Committee is derived by

dividing the anticipated expenses by expected shipments of pears.

Because this rate is applied to actual shipments, it must be

established at a rate which will provide sufficient income to pay the

Committee's expected expenses.

The Committee met on June 3, 1994, and unanimously recommended

total expenses of $6,835,926 for the 1994-95 fiscal year. In

comparison, the 1993-94 fiscal year expense amount was $6,933,615,

which is $97,689 more than the amount recommended for the 1994-95

fiscal year.

The Committee also unanimously recommended an assessment rate of

$0.43 per standard box, or equivalent for winter pears. The Committee

did not recommend a supplemental assessment rate for Anjou variety

pears this fiscal year. In comparison, the 1993-94 winter

[[Page 17984]] pear assessment rate was $0.45 per standard box, or

equivalent and $0.04 for the supplemental assessment rate on Anjou

variety pears. This represents a $0.02 decrease in the assessment rate

recommended for this fiscal year.

This rate, when applied to anticipated winter pear shipments of

13,817,000 boxes or equivalent, will yield a total of $5,941,310 in

assessment income. Assessment income, along with $401,324 from other

income sources, and $493,292 from the Committee's authorized reserve,

will be adequate to cover budgeted expenses. The $493,292 withdrawal of

funds from the Committee's authorized reserve will result in no reserve

remaining at the end of the 1994-95 fiscal period.

Major expense categories for the 1994-95 fiscal year include

$5,572,500 for advertising, $276,340 for SOPP data research, $276,340

for winter pear improvement, $142,310 for salaries and benefits, and

$612,442 for unshared contingency.

The expenses and assessment rate were authorized in the

finalization of the interim final rule issued on November 1, 1994, and

published in the Federal Register [59 FR 55333, November 7, 1994]. The

interim final rule provided a 30-day comment period for interested

persons. No comments were received.

The Committee conducted a mail vote during January 1995, and

unanimously recommended to increase 1994-95 expenses from $6,835,926 to

$7,460,160, an increase of $624,234 from the previously authorized

amount. The increase is necessary because the winter pear crop, which

was previously estimated at 13,817,000 boxes or equivalent, is now

estimated at 15,500,000 boxes.

This under-estimation of over one million boxes, caused the

Committee to calculate less assessment income. The Committee is

increasing funds for promotion and advertisement for what has become

the largest crop of winter pears in the industry's history.

With the approved assessment rate of $0.43, when applied to winter

pear shipments of 15,500,000 boxes or equivalent, will yield a total of

$6,665,000 in assessment income. Assessment income, along with $368,086

from other income sources, and $427,074 from the Committee's authorized

reserve, will be adequate to cover budgeted expenses.

Major expense categories for the 1994-95 fiscal year are to be

revised as follows; $5,812,500 for advertising, $538,322 for unshared

contingency, $310,000 for SOPP data research, and $310,000 for winter

pear improvement ($5,572,500, $612,442, $276,340, and $276,340,

respectively, are the amounts from the previously approved budget).

This action will not impose additional costs on handlers.

Therefore, the Administrator of the AMS has determined that this action

will not have a significant economic impact on a substantial number of

small entities.

After consideration of all relevant matter presented, including the

information and recommendations 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 or to engage in further public procedure and that good cause

exists for not postponing the effective date of this action until 30

days after publication in the Federal Register because: (1) The fiscal

year for the Committee began July 1, 1994, and the Committee needs to

have approval to pay its expenses which are incurred on a continuous

basis; (2) handlers are aware of this action which was unanimously

recommended by the Committee by mail vote; and (3) no increase in the

assessment rate is being recommended so no additional funds will need

to be collected from handlers.

List of Subjects in 7 CFR Part 927

Marketing agreements and orders, Pears, Reporting and recordkeeping

requirements.

For the reasons set forth in the preamble, 7 CFR part 927 is

amended as follows:

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

1. The authority citation for 7 CFR part 927 continues to read as

follows:

Authority: 7 U.S.C. 601-674.

Note: This section will not appear in the annual Code of Federal

Regulations.

Sec. 927.234 [Amended]

2. Sec. 927.234 is amended by removing ``$6,835,926'' and adding in

its place ``$7,460,160''.

Dated: March 31, 1995.

Sharon Bomer Lauritsen,

Deputy Director, Fruit and Vegetable Division.

[FR Doc. 95-8424 Filed 4-7-95; 8:45 am]

BILLING CODE 3410-02-P