Assessment Rates for Specified Marketing Orders

SUMMARY: This interim final rule establishes assessment rates for

Marketing Order Nos. 927 and 931 for the 1996-97 and subsequent fiscal

periods. The Winter Pear Control Committee and the Northwest Fresh

Bartlett Marketing Committee (Committees) are responsible for local

administration of the marketing orders which regulate the handling of

winter pears grown in Oregon, Washington, and California and fresh

Bartlett pears grown in Oregon and Washington. Authorization to assess

winter pear and fresh Bartlett pear handlers enables the Committees to

incur expenses that are reasonable and necessary to administer the

programs.

DATES: Effective on July 1, 1996. Comments received by September 16,

1996, 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 in triplicate to the Docket

Clerk, Fruit and Vegetable Division, AMS, USDA, P.O. Box 96456, room

2523-S, Washington, DC 20090-6456, FAX (202) 720-5698. 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.

FOR FURTHER INFORMATION CONTACT: Tershirra Yeager, Marketing Assistant,

Marketing Order Administration Branch, Fruit and Vegetable Division,

AMS, USDA, P.O. Box 96456, Room 2522-S, Washington, DC 20090-6456,

telephone (202) 720-5127, FAX (202) 720-5698, or Teresa L. Hutchinson,

Marketing Specialist, Northwest Marketing Field Office, Fruit and

Vegetable Division, AMS, USDA, 1220 SW Third Avenue, room 369,

Portland, OR 97204, telephone (503) 326-2724, FAX (503) 326-7440. Small

businesses may request information on compliance with this regulation

by contacting: Jay Guerber, Marketing Order Administration Branch,

Fruit and Vegetable Division, AMS, USDA, P.O. Box 96456, Room 2523-S,

Washington, D.C. 20090-6456; telephone: (202) 720-2491, FAX (202) 720-

5698.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing

Agreement and Order No. 927 [7 CFR part 927], regulating the handling

of winter pears in Oregon, Washington, and California; and Marketing

Order No. 931 [7 CFR part 931] regulating the handling of fresh

Bartlett pears in Oregon and Washington, hereinafter referred to as the

``orders.'' The marketing agreements and orders 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 orders now in effect, handlers in

designated areas are subject to assessments. Funds to administer the

orders are derived from such assessments. It is intended that the

assessment rates as issued herein will be applicable to all assessable

winter pears and fresh Bartlett pears beginning July 1, 1996, 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 handlers are 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.

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.

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 90 handlers of winter pears and 65 handlers

of fresh Bartlett pears subject to regulation under the marketing

orders. In addition, there are about 1,800 winter pear and fresh

Bartlett pear producers in the respective production areas. 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

winter pear and fresh Bartlett pear producers and handlers may be

classified as small entities. Interested persons are invited to submit

information on the regulatory and informational impacts of this action

on small businesses.

The orders provide authority for the Committees, with the approval

of the Department, to formulate annual budgets of expenses and collect

assessments from handlers to administer the programs. The members of

the

[[Page 42530]]

Committees are producers and handlers of Oregon, Washington, and

California pears. They are familiar with the Committees' needs and with

the pears costs for goods and services in their local areas and are

thus in a position to formulate appropriate budgets and assessment

rates. The assessment rates are formulated and discussed in public

meetings. Thus, all directly affected persons have an opportunity to

participate and provide input.

The Winter Pear Control Committee met on May 31, 1996, and

unanimously recommended 1996-97 expenditures of $5,887,084 and an

assessment rate of $0.405 per standard box. In comparison, last year's

budgeted expenditures were $7,384,440, respectively.

The assessment rate recommended by the Committee was derived by

dividing anticipated expenses by expected shipments of winter pears

grown in Oregon, Washington, and California. Winter pear shipments for

the year are estimated at 12,465,800 standard boxes which should

provide $4,674,675 for paid advertising. 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 Winter Pear Control Committee

for the 1996-97 year include $154,387 for salaries, $16,893 for health

insurance, and $23,392 for office rent. Budgeted expenses for these

items in 1995-96 were $147,152, $16,634, and $17,357, respectively.

The Northwest Fresh Bartlett Marketing Committee met on May 30,

1996, and unanimously recommended 1996-97 expenditures of $89,774 and

an assessment rate of $0.0375 per western standard pear box. In

comparison, last year's budgeted expenditures were $92,254,

respectively.

The assessment rate recommended by the Committee was derived by

dividing anticipated expenses by expected shipments of fresh Bartlett

pears grown in Oregon and Washington. Shipments for the year are

estimated at 1,842,000 packed boxes which should provide $69,075 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 Northwest Fresh Bartlett

Marketing Committee for the 1996-97 year include $46,306 for salaries,

$4,991 for health insurance, and $7,016 for office rent. Budgeted

expenses for these items in 1995-96 were $44,135, $4,989 and $5,206,

respectively.

While this rule will impose some additional costs on handlers, the

costs are 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 orders. Therefore, the AMS has determined that this rule will

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

entities.

The assessment rates established in this rule will continue in

effect indefinitely unless modified, suspended, or terminated by the

Secretary upon recommendation and information submitted by the

Committees or other available information.

Although these assessment rates are effective for an indefinite

period, the Committees will continue to meet prior to or during each

fiscal period to consider recommendations for modification of the

assessment rates. The dates and times of Committee meetings are

available from the Committees 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 rates are needed. Further rulemaking will be undertaken

as necessary. The Committees' 1996-97 budgets and those for subsequent

fiscal periods will be reviewed and, as appropriate, approved by the

Department.

After consideration of all relevant material presented, including

the information and recommendation submitted by the Committees 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) The Committees need to have sufficient funds to

pay their expenses which are incurred on a continuous basis; (2) the

1996-97 fiscal periods began on July 1, 1996, and the marketing orders

require that the rates of assessment for each fiscal period apply to

all assessable winter pears and fresh Bartlett pears handled during

such fiscal period; (3) handlers are aware of the actions which were

recommended by the Committees at public meetings and are similar to

other assessment rate actions issued in past years; and (4) this

interim final rule provides a 30-day comment period, and all comments

timely received will be considered prior to finalization of this rule.

List of Subjects

7 CFR Part 927

Winter Pears, Marketing agreements, Reporting and recordkeeping

requirements.

7 CFR Part 931

Fresh Bartlett Pears, Marketing agreements, Reporting and

recordkeeping requirements.

For the reasons set forth in the preamble, 7 CFR parts 927 and 931

are amended as follows:

1. The authority citation for 7 CFR parts 927 and 931 continue to

read as follows:

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

Note: These sections will appear in the Code of Federal

Regulations.

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

2. A new center heading--Assessment Rate consisting of a new

Sec. 927.236 is added to read as follows:

Assessment Rate

Sec. 927.236 Assessment Rate.

On and after July 1, 1996, an assessment rate of $0.405 per

standard box is established for the Winter Pear Control Committee.

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

3. A new center heading--Assessment Rate consisting of a new

Sec. 931.231 is added to read as follows:

Assessment Rate

Sec. 931.231 Assessment Rate.

On and after July 1, 1996, an assessment rate of $.0375 per western

standard pear box is established for the Northwest Fresh Bartlett

Marketing Committee.

Dated: August 9, 1996.

Robert C. Keeney,

Director, Fruit and Vegetable Division.

[FR Doc. 96-20789 Filed 8-15-96; 8:45 am]

BILLING CODE 3410-02-P