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

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URL: https://www.frixlaw.com/law-library/documents/fr%3A95-8424

## Record

- **Collection:** Federal Register
- **Document type:** Rule
- **Published:** April 10, 1995
- **Citation:** 60 FR 17983

## Text

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

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A95-8424. Public record. Not legal advice.