Assessment Rates for Specified Marketing Orders

SUMMARY: The Department of Agriculture (Department) is adopting as a

final rule, without change, the provisions of an interim final rule

that established 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.

EFFECTIVE DATE: July 1, 1996.

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, DC 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 grown in Oregon, Washington, and California, and

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

fresh Bartlett pears grown 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.

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 Committees are producers and handlers of Oregon, Washington, and

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

the 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,

[[Page 52682]]

last year's budgeted expenditures were $7,384,440.

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 assessment revenue of $5,048,649. 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, $4,674,675 for paid

advertising, and $249,316 for production research. Budgeted expenses

for these items in 1995-96 were $147,152, $6,064,163, and $323,422,

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.

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.

An interim final rule regarding this action was published in the

August 16, 1996, issue of the Federal Register (61 FR 42529). That rule

provided a 30-day comment period. No comments were received.

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 modifications 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 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) an interim final rule was

published on this action, providing a 30-day comment period, and no

comments were received.

List of Subjects

7 CFR Part 927

Marketing agreements, Pears, Reporting and recordkeeping

requirements.

7 CFR Part 931

Marketing agreements, Pears, Reporting and recordkeeping

requirements.

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

are amended as follows:

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

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

Accordingly, the interim final rule amending 7 CFR parts 927 and

931 which was published at 61 FR 42529 on August 16, 1996, is adopted

as a final rule without change.

Dated: October 1, 1996.

Robert C. Keeney,

Director, Fruit and Vegetable Division.

[FR Doc. 96-25706 Filed 10-7-96; 8:45 am]

BILLING CODE 3410-02-P