[Federal Register Volume 59, Number 52 (Thursday, March 17, 1994)] [Unknown Section] [Page 0] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 94-6146] [[Page Unknown]] [Federal Register: March 17, 1994] ----------------------------------------------------------------------- DEPARTMENT OF AGRICULTURE 7 CFR Part 927 [Docket No. FV93-927-1FR; Amendment 1] Increase in Expenses; Winter Pears Grown in Oregon, Washington, and California AGENCY: Agricultural Marketing Service, USDA. ACTION: Final rule; amendment. ----------------------------------------------------------------------- SUMMARY: This document amends a final rule to authorize an increase in expenses for the Winter Pear Control Committee (Committee) under Marketing Order No. 927 for the 1993-94 fiscal year. This final rule amendment will enable the Committee to incur increased 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, 1993, through June 30, 1994. FOR FURTHER INFORMATION CONTACT: Britthany Beadle, Marketing Order Administration Branch, Fruit and Vegetable Division, AMS, USDA, P.O. Box 96456, room 2523-S, Washington, D.C. 20090-6456, telephone: (202) 720-5127; or Teresa L. Hutchinson, Northwest Marketing Field Office, Fruit and Vegetable Division, AMS, USDA, 1220 SW. Third Avenue, room 369, Portland, Oregon 97204, telephone: (503) 326-2724. SUPPLEMENTARY INFORMATION: This final rule amendment is issued under Marketing Agreement and Order No. 927 (7 CFR part 927) regulating the handling of winter pears grown in Oregon and Washington. 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 amendment 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 rates specified herein will be applicable to all assessable pears handled during the 1993-94 fiscal year, which began July 1, 1993, through June 30, 1994. This final rule amendment 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 Sec. 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 $3,500,000. 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 rates 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 rates recommended by the Committee are derived by dividing the anticipated expenses by expected shipments of pears. Because these rates are applied to actual shipments, they must be established at rates which will provide sufficient income to pay the Committee's expected expenses. The Winter Pear Control Committee met on June 4, and June 24, 1993, and unanimously recommended total expenses of $6,933,615 for the 1993- 94 fiscal year. In comparison, the 1992-93 fiscal year expense amount was $6,716,983, which is $216,632 less than the recommended amount for this fiscal year. The Committee also unanimously recommended an assessment rate of $0.45 per standard box, or equivalent and a supplemental assessment rate of $0.04 per standard box, or equivalent for Anjou variety pears. In comparison, the 1992-93 pear assessment rate was $0.43 per standard box, or equivalent and $0.09 for the supplemental assessment rate on Anjou variety pears. This represents a $0.02 increase and $0.05 decrease, respectively, in the assessment rates recommended for this fiscal year because the current rates should generate sufficient income to cover the increased expenses. Major expense categories for the 1993-94 fiscal year include $4,937,803 for advertising, $566,433 for contingency, $422,826 for Ethoxyquin data research, and $174,775 for salaries and benefits. Comparable 1992-93 budgeted expenses are $4,562,500, $490,578, $855,000, and $160,905, respectively. The Committee's approved 1993-94 fiscal year expenses and assessment rates were adopted in a final rule and published in the Federal Register (58 FR 54926, October 25, 1993). On December 1, 1993, the Committee conducted a mail ballot and on a vote of 13 in favor and 1 opposed, recommended to increase expenses to $7,931,925. This is a $998,310 increase in expenses from the previously approved 1993-94 budget. No changes in the approved assessment rates were recommended because the current rates should generate sufficient income to cover the increased expenses. The increase is deemed necessary by the Committee because the crop estimate, which is now approximated at 15,250,000 standard boxes of winter pears was underestimated by nearly 2 million boxes. Due to the larger crop, additional funding in major categories is needed. This includes a total of $639,322 for contingency, $5,718,750 for paid advertising, $305,000 for winter pear improvement, $305,000 for SOPP, and $484,000 for Ethoxyquin data research which represent increases of $72,889, $780,947, $41,650; $41,650, and $61,174 respectively, from the previously approved budget. This action will not impose additional costs on handlers because the previously established assessment rates are not being changed. Further, the increased expenses should benefit the industry by assisting in marketing a record-large crop. 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 found that the specified expenses for the marketing order covered in this final rule amendment are reasonable and likely to be incurred and that such expenses and the specified assessment rates to cover such expenses will tend to effectuate the declared policy of the Act. It is also found and determined upon good cause that it is impracticable, unnecessary, and contrary to the public interest to give preliminary notice or to engage in further public procedure 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 Committee needs to have sufficient funds to conduct a more aggressive advertising and promotional program to market the largest crop in the industry's history; (2) the marketing season is well underway and further delays in authorizing this increase in expenditures would reduce the program's effectiveness; (3) handlers are aware of this action and need no additional time to comply because the assessment rates are not being changed; (4) no comments were received during the rulemaking proceeding to establish the assessment rates for the current fiscal year which remain unchanged by this action; and (5) no useful purpose would be served by delaying this action. List of Subjects in 7 CFR Part 927 Marketing agreements, 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. 2. Section 927.233 is revised to read as follows: Note: This section will not appear in the annual Code of Federal Regulations. Sec. 927.233 Expenses and assessment rates. Expenses of $7,931,925 by the Winter Pear Control Committee are authorized and an assessment of $0.45 per standard box, or equivalent, on assessable winter pears and a supplemental assessment of $0.04 per standard box, or equivalent, on assessable Anjou variety pears are established for the fiscal year ending June 30, 1994. Unexpended funds may be carried over as a reserve. Dated: March 11, 1994. Robert C. Keeney, Deputy Director, Fruit and Vegetable Division. [FR Doc. 94-6146 Filed 3-16-94; 8:45 am] BILLING CODE 3410-02-P