83_FR_46296 83 FR 46119 - Pears Grown in Oregon and Washington; Decreased Assessment Rate for Processed Pears

83 FR 46119 - Pears Grown in Oregon and Washington; Decreased Assessment Rate for Processed Pears

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 83, Issue 177 (September 12, 2018)

Page Range46119-46121
FR Document2018-19683

This proposed rule would implement a recommendation from the Processed Pear Committee (Committee) to decrease the assessment rate established for ``summer/fall'' varieties of pears for canning for the 2018-2019 and subsequent fiscal periods. The assessment rate would remain in effect indefinitely unless modified, suspended, or terminated.

Federal Register, Volume 83 Issue 177 (Wednesday, September 12, 2018)
[Federal Register Volume 83, Number 177 (Wednesday, September 12, 2018)]
[Proposed Rules]
[Pages 46119-46121]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-19683]


========================================================================
Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

========================================================================


Federal Register / Vol. 83, No. 177 / Wednesday, September 12, 2018 / 
Proposed Rules

[[Page 46119]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 927

[Doc. No. AMS-SC-18-0049; SC18-927-2 PR]


Pears Grown in Oregon and Washington; Decreased Assessment Rate 
for Processed Pears

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: This proposed rule would implement a recommendation from the 
Processed Pear Committee (Committee) to decrease the assessment rate 
established for ``summer/fall'' varieties of pears for canning for the 
2018-2019 and subsequent fiscal periods. The assessment rate would 
remain in effect indefinitely unless modified, suspended, or 
terminated.

DATES: Comments must be received by October 12, 2018.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposed rule. Comments must be sent to the Docket 
Clerk, Marketing Order and Agreement Division, Specialty Crops Program, 
AMS, USDA, 1400 Independence Avenue SW, STOP 0237, Washington, DC 
20250-0237; Fax: (202) 720-8938; or internet: http://www.regulations.gov. Comments should reference the document 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, or can be viewed at: http://www.regulations.gov. All comments submitted in response to this rule 
will be included in the record and will be made available to the 
public. Please be advised that the identity of the individuals or 
entities submitting the comments will be made public on the internet at 
the address provided above.

FOR FURTHER INFORMATION CONTACT: Dale Novotny, Marketing Specialist, or 
Gary Olson, Regional Director, Northwest Marketing Field Office, 
Marketing Order and Agreement Division, Specialty Crops Program, AMS, 
USDA; Telephone: (503) 326-2724, Fax: (503) 326-7440, or Email: 
DaleJ.Novotny@ams.usda.gov or GaryD.Olson@ams.usda.gov. Small 
businesses may request information on complying with this regulation by 
contacting Richard Lower, Marketing Order and Agreement Division, 
Specialty Crops Program, AMS, USDA, 1400 Independence Avenue SW, STOP 
0237, Washington, DC 20250-0237; Telephone: (202) 720-2491, Fax: (202) 
720-8938, or Email: Richard.Lower@ams.usda.gov.

SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553, 
proposes an amendment to regulations issued to carry out a marketing 
order as defined in 7 CFR 900.2(j). This proposed rule is issued under 
Marketing Order No. 927, as amended (7 CFR part 927), regulating the 
handling of pears grown in Oregon and Washington. Part 927, (referred 
to as ``the Order'') is effective under the Agricultural Marketing 
Agreement Act of 1937, as amended (7 U.S.C. 601-674), hereinafter 
referred to as the ``Act.'' The Committee locally administers the Order 
and is comprised of growers, handlers, and processors operating within 
the area of production, and a public member.
    The Department of Agriculture (USDA) is issuing this proposed rule 
in conformance with Executive Orders 13563 and 13175. This proposed 
rule falls within a category of regulatory actions that the Office of 
Management and Budget (OMB) exempted from Executive Order 12866 review. 
Additionally, because this proposed rule does not meet the definition 
of a significant regulatory action, it does not trigger the 
requirements contained in Executive Order 13771. See OMB's Memorandum 
titled ``Interim Guidance Implementing Section 2 of the Executive Order 
of January 30, 2017, titled `Reducing Regulation and Controlling 
Regulatory Costs' '' (February 2, 2017).
    This proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. Under the Order now in effect, Oregon and 
Washington pear handlers are subject to assessments. Funds to 
administer the Order are derived from such assessments. It is intended 
that the assessment rate would be applicable to all assessable 
``summer/fall'' varieties of pears specifically used for canning for 
the 2018-2019 fiscal period, and continue until amended, suspended, or 
terminated.
    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 USDA 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 
handler is afforded the opportunity for a hearing on the petition. 
After the hearing, USDA 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 USDA's ruling on the petition, 
provided an action is filed not later than 20 days after the date of 
the entry of the ruling.
    The Order provides authority for the Committee, with the approval 
of USDA, to formulate an annual budget of expenses and collect 
assessments from handlers to administer the program. The Committee 
members are familiar with the Committee's needs and with the costs of 
goods and services in their local area and are in a position to 
formulate an appropriate budget and assessment rate. The assessment 
rate is formulated and discussed in a public meeting where all directly 
affected persons have an opportunity to participate and provide input.
    This proposed rule would decrease the assessment rate from $8.00, 
the rate that was established for the 2017-2018 and subsequent fiscal 
periods, to $7.15 per ton of ``summer/fall'' varieties of pears for 
canning handled for the 2018-2019 and subsequent fiscal periods. The 
assessment rate for ``winter'' and ``other'' pears for processing would 
remain unchanged at $0.00. The Committee met on May 30, 2018, and 
unanimously recommended 2018-2019 fiscal period expenditures of 
$693,472. In comparison, last year's budgeted expenditures were 
$800,150. The Committee also unanimously recommended an assessment rate 
of $7.15 per ton of ``summer/fall'' varieties

[[Page 46120]]

of pears for canning handled. The proposed assessment rate of $7.15 per 
ton is $0.85 lower than the $8.00 per ton rate currently in effect. The 
Committee recommended the lower assessment rate to balance assessment 
revenue with its budgeted expenditures and to maintain its monetary 
reserve at levels authorized in the Order.
    The major expenditures recommended by the Committee for the 2018-
2019 fiscal period include $495,000 for promotion and paid advertising, 
$136,172 for research, $15,000 for market access programs, $25,000 for 
administrative and management services, and $22,300 for Committee 
expenses. In comparison, these major expense categories for the 2017-
2018 fiscal period were budgeted at $591,030, $147,694, $14,576, 
$25,000, and $21,850; respectively.
    The assessment rate recommended by the Committee was derived by 
considering anticipated expenses, expected shipments, and the amount of 
funds available in the authorized reserve. The quantity of assessable 
``summer/fall'' pears for canning for the 2018-2019 fiscal period is 
estimated at 100,000 tons. Thus, the proposed $7.15 per ton should 
provide handler assessments of $715,000. This amount would be adequate 
to cover budgeted expenses of $693,472, with any excess funds used to 
make a small contribution to the Committee's monetary reserve. Funds in 
the reserve (currently $497,565) would be kept within the maximum 
permitted by Sec.  927.42(a) of approximately one fiscal period's 
expenses.
    The assessment rate proposed in this rule would continue in effect 
indefinitely unless modified, suspended, or terminated by USDA upon 
recommendation and information submitted by the Committee, or other 
available information.
    Although this assessment rate would be in effect for an indefinite 
period, the Committee would continue to meet prior to or during each 
fiscal period to recommend a budget of expenses and consider 
recommendations for modification of the assessment rate. The dates and 
times of Committee meetings are available from the Committee or USDA. 
Committee meetings are open to the public and interested persons may 
express their views at these meetings. USDA would evaluate Committee 
recommendations and other available information to determine whether 
modification of the assessment rate is needed. Further rulemaking would 
be undertaken as necessary. The Committee's budget for subsequent 
fiscal periods would be reviewed and, as appropriate, approved by USDA.

Initial Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS) 
has considered the economic impact of this proposed rule on small 
entities. Accordingly, AMS has prepared this initial regulatory 
flexibility analysis.
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses 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.
    There are approximately 1,500 growers of pears for processing in 
the production area and approximately 43 handlers of processed pears 
subject to regulation under the Order. Small agricultural producers are 
defined by the Small Business Administration (SBA) as those having 
annual receipts less than $750,000, and small agricultural service 
firms are defined as those whose annual receipts are less than 
$7,500,000 (13 CFR 121.201).
    According to data from USDA National Agricultural Statistics 
Service (NASS), the Committee, and the industry for the 2016-2017 
season (the most recent complete season of record) the average f.o.b. 
price for Oregon-Washington processed Bartlett pears (the only variety 
used for canning in the production area) was approximately $390.50 per 
ton. Total shipments for that period were approximately 103,020 tons. 
Using the number of handlers, and assuming a normal distribution, the 
majority of handlers would have average annual receipts of less than 
$7,500,000 ($390.50 per ton times 103,020 tons equals $40,229,310 
divided by 43 handlers equals $935,565 per handler).
    In addition, based on data from the Committee, the industry 
produced 103,020 tons of processed pears in the production area during 
the 2016-2017 season, with an average grower price of $360 per ton. 
Based on the average grower price, production, and the total number of 
Oregon-Washington processed pear growers reported by the Committee 
(1,500), and assuming a normal distribution, the average annual grower 
revenue is below $750,000 ($360 per ton times 103,020 tons equals 
$37,087,200 divided by 1,500 growers equals $24,725 per grower). Thus, 
the majority of Oregon and Washington processed pear handlers and 
growers may be classified as small entities.
    This proposal would decrease the assessment rate collected from 
handlers for the 2018-2019 and subsequent fiscal periods from $8.00 per 
ton to $7.15 per ton of Oregon and Washington ``summer/fall'' pears for 
canning handled. The Committee unanimously recommended 2018-2019 fiscal 
period expenditures of $693,472 and the $7.15 per ton assessment rate. 
The proposed assessment rate of $7.15 per ton is $0.85 lower than the 
rate in effect for the 2017-2018 fiscal period. The quantity of 
assessable ``summer/fall'' pears for canning for the 2018-2019 fiscal 
period is estimated at 100,000 tons. Thus, the proposed $7.15 per ton 
rate should provide $715,000 in assessment income. Income derived from 
handler assessments should be adequate to cover budgeted expenses, with 
any excess funds to be carried over in the Committee's monetary reserve 
to be used in subsequent years.
    The major expenditures recommended by the Committee for the 2018-
2019 fiscal period include $495,000 for promotion and paid advertising, 
$136,172 for research, $15,000 for market access programs, $25,000 for 
administrative and management services, and $22,300 for Committee 
expenses. In comparison, these major expense categories for the 2017-
2018 fiscal period were budgeted at $591,030, $147,694, $14,576, 
$25,000, and $21,850, respectively.
    The proposed lower assessment rate is necessary to balance 
assessment revenue with the Committee's 2018-2019 fiscal period 
budgeted expenditures and to maintain its monetary reserve at levels 
authorized in the Order.
    Prior to arriving at this budget and assessment rate, the Committee 
considered the benefits and costs related to maintaining the current 
assessment rate of $8.00 per ton and establishing other assessment 
rates. However, leaving the assessment rate unchanged would generate 
more revenue than required to meet the Committee's 2018-2019 fiscal 
period budgeted expenses of $693,472, and would add a large amount of 
excess funds to the Committee's already sufficient monetary reserve. 
Based on estimated shipments, the recommended assessment rate of $7.15 
per ton should provide $715,000 in assessment income. The Committee 
determined assessment revenue would be adequate to fully cover budgeted 
expenditures for the 2018-2019 fiscal period, with a small amount of 
excess funds to be added to the Committee's monetary reserve. Reserve 
funds would

[[Page 46121]]

be kept within the amount authorized in the Order.
    A review of historical information and preliminary information 
pertaining to the upcoming fiscal year indicates that the average 
grower price for the 2018-2019 season should be approximately $296 per 
ton of pears for processing. Therefore, the estimated assessment 
revenue for the 2018-2019 fiscal period as a percentage of total grower 
revenue would be about 2.4 percent ($7.15 per ton assessment divided by 
$296 per ton grower price).
    This proposed action would decrease the assessment obligation 
imposed on handlers for the 2018-2019 and subsequent fiscal periods. 
Assessments are applied uniformly on all handlers, and some of the 
costs may be passed on to producers. However, decreasing the assessment 
rate would reduce the burden on handlers, and may reduce the burden on 
producers.
    The Committee's meetings were widely publicized throughout the 
Oregon and Washington processed pear industry. All interested persons 
were invited to attend the meetings and participate in Committee 
deliberations on all issues. Like all Committee meetings, the May 30, 
2018, meeting was a public meeting and all entities, both large and 
small, were able to express views on this issue. Finally, interested 
persons are invited to submit comments on this proposed rule, including 
the regulatory and information collection impacts of this action on 
small businesses.
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
chapter 35), the Order's information collection requirements have been 
previously approved by OMB and assigned OMB No. 0581-0189. No changes 
in those requirements would be necessary because of this action. Should 
any changes become necessary, they would be submitted to OMB for 
approval.
    This proposed rule would not impose any additional reporting or 
recordkeeping requirements on either small or large Oregon and 
Washington processed pear handlers. As with all Federal marketing order 
programs, reports and forms are periodically reviewed to reduce 
information requirements and duplication by industry and public sector 
agencies.
    AMS is committed to complying with the E-Government Act, to promote 
the use of the internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services, and for other purposes.
    USDA has not identified any relevant Federal rules that duplicate, 
overlap, or conflict with this proposed rule.
    A small business guide on complying with fruit, vegetable, and 
specialty crop marketing agreements and orders may be viewed at: http://www.ams.usda.gov/rules-regulations/moa/small-businesses. Any questions 
about the compliance guide should be sent to Richard Lower at the 
previously mentioned address in the FOR FURTHER INFORMATION CONTACT 
section.

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 
proposed to be amended as follows:

PART 927--PEARS GROWN IN OREGON AND WASHINGTON

0
1. The authority citation for 7 CFR part 927 continues to read as 
follows:

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

0
2. In Sec.  927.237 revise the intro paragraph text and paragraph (a) 
to read as follows:


Sec.  927.237   Assessment rate.

    On and after July 1, 2018, the following base rates of assessment 
for pears for processing are established for the Processed Pear 
Committee:
    (a) $7.15 per ton for any or all varieties or subvarieties of pears 
for canning classified as ``summer/fall'' excluding pears for other 
methods of processing;
* * * * *

    Dated: September 6, 2018.
Bruce Summers,
Administrator, Agricultural Marketing Service.
[FR Doc. 2018-19683 Filed 9-11-18; 8:45 am]
BILLING CODE 3410-02-P



                                                                                                                                                                                                  46119

                                                 Proposed Rules                                                                                                Federal Register
                                                                                                                                                               Vol. 83, No. 177

                                                                                                                                                               Wednesday, September 12, 2018



                                                 This section of the FEDERAL REGISTER                    FOR FURTHER INFORMATION CONTACT:         Dale         intended that the assessment rate would
                                                 contains notices to the public of the proposed          Novotny, Marketing Specialist, or Gary                be applicable to all assessable ‘‘summer/
                                                 issuance of rules and regulations. The                  Olson, Regional Director, Northwest                   fall’’ varieties of pears specifically used
                                                 purpose of these notices is to give interested          Marketing Field Office, Marketing Order               for canning for the 2018–2019 fiscal
                                                 persons an opportunity to participate in the            and Agreement Division, Specialty                     period, and continue until amended,
                                                 rule making prior to the adoption of the final
                                                 rules.
                                                                                                         Crops Program, AMS, USDA;                             suspended, or terminated.
                                                                                                         Telephone: (503) 326–2724, Fax: (503)                    The Act provides that administrative
                                                                                                         326–7440, or Email: DaleJ.Novotny@                    proceedings must be exhausted before
                                                 DEPARTMENT OF AGRICULTURE                               ams.usda.gov or GaryD.Olson@                          parties may file suit in court. Under
                                                                                                         ams.usda.gov. Small businesses may                    section 608c(15)(A) of the Act, any
                                                 Agricultural Marketing Service                          request information on complying with                 handler subject to an order may file
                                                                                                         this regulation by contacting Richard                 with USDA a petition stating that the
                                                 7 CFR Part 927                                          Lower, Marketing Order and Agreement                  order, any provision of the order, or any
                                                                                                         Division, Specialty Crops Program,                    obligation imposed in connection with
                                                 [Doc. No. AMS–SC–18–0049; SC18–927–2                    AMS, USDA, 1400 Independence                          the order is not in accordance with law
                                                 PR]                                                     Avenue SW, STOP 0237, Washington,                     and request a modification of the order
                                                                                                         DC 20250–0237; Telephone: (202) 720–                  or to be exempted therefrom. Such
                                                 Pears Grown in Oregon and                               2491, Fax: (202) 720–8938, or Email:                  handler is afforded the opportunity for
                                                 Washington; Decreased Assessment                        Richard.Lower@ams.usda.gov.                           a hearing on the petition. After the
                                                 Rate for Processed Pears                                SUPPLEMENTARY INFORMATION: This                       hearing, USDA would rule on the
                                                                                                         action, pursuant to 5 U.S.C. 553,                     petition. The Act provides that the
                                                 AGENCY:  Agricultural Marketing Service,                                                                      district court of the United States in any
                                                 USDA.                                                   proposes an amendment to regulations
                                                                                                         issued to carry out a marketing order as              district in which the handler is an
                                                 ACTION: Proposed rule.                                  defined in 7 CFR 900.2(j). This proposed              inhabitant, or has his or her principal
                                                                                                         rule is issued under Marketing Order                  place of business, has jurisdiction to
                                                 SUMMARY:   This proposed rule would                                                                           review USDA’s ruling on the petition,
                                                 implement a recommendation from the                     No. 927, as amended (7 CFR part 927),
                                                                                                         regulating the handling of pears grown                provided an action is filed not later than
                                                 Processed Pear Committee (Committee)                                                                          20 days after the date of the entry of the
                                                 to decrease the assessment rate                         in Oregon and Washington. Part 927,
                                                                                                         (referred to as ‘‘the Order’’) is effective           ruling.
                                                 established for ‘‘summer/fall’’ varieties                                                                        The Order provides authority for the
                                                 of pears for canning for the 2018–2019                  under the Agricultural Marketing
                                                                                                         Agreement Act of 1937, as amended (7                  Committee, with the approval of USDA,
                                                 and subsequent fiscal periods. The                                                                            to formulate an annual budget of
                                                 assessment rate would remain in effect                  U.S.C. 601–674), hereinafter referred to
                                                                                                         as the ‘‘Act.’’ The Committee locally                 expenses and collect assessments from
                                                 indefinitely unless modified,                                                                                 handlers to administer the program. The
                                                 suspended, or terminated.                               administers the Order and is comprised
                                                                                                         of growers, handlers, and processors                  Committee members are familiar with
                                                 DATES: Comments must be received by                     operating within the area of production,              the Committee’s needs and with the
                                                 October 12, 2018.                                       and a public member.                                  costs of goods and services in their local
                                                 ADDRESSES: Interested persons are                          The Department of Agriculture                      area and are in a position to formulate
                                                 invited to submit written comments                      (USDA) is issuing this proposed rule in               an appropriate budget and assessment
                                                 concerning this proposed rule.                          conformance with Executive Orders                     rate. The assessment rate is formulated
                                                 Comments must be sent to the Docket                     13563 and 13175. This proposed rule                   and discussed in a public meeting
                                                 Clerk, Marketing Order and Agreement                    falls within a category of regulatory                 where all directly affected persons have
                                                 Division, Specialty Crops Program,                      actions that the Office of Management                 an opportunity to participate and
                                                 AMS, USDA, 1400 Independence                            and Budget (OMB) exempted from                        provide input.
                                                 Avenue SW, STOP 0237, Washington,                       Executive Order 12866 review.                            This proposed rule would decrease
                                                 DC 20250–0237; Fax: (202) 720–8938; or                  Additionally, because this proposed                   the assessment rate from $8.00, the rate
                                                 internet: http://www.regulations.gov.                   rule does not meet the definition of a                that was established for the 2017–2018
                                                 Comments should reference the                           significant regulatory action, it does not            and subsequent fiscal periods, to $7.15
                                                 document number and the date and                        trigger the requirements contained in                 per ton of ‘‘summer/fall’’ varieties of
                                                 page number of this issue of the Federal                Executive Order 13771. See OMB’s                      pears for canning handled for the 2018–
                                                 Register and will be available for public               Memorandum titled ‘‘Interim Guidance                  2019 and subsequent fiscal periods. The
                                                 inspection in the Office of the Docket                  Implementing Section 2 of the Executive               assessment rate for ‘‘winter’’ and
                                                 Clerk during regular business hours, or                 Order of January 30, 2017, titled                     ‘‘other’’ pears for processing would
                                                 can be viewed at: http://                               ‘Reducing Regulation and Controlling                  remain unchanged at $0.00. The
daltland on DSKBBV9HB2PROD with PROPOSALS




                                                 www.regulations.gov. All comments                       Regulatory Costs’ ’’ (February 2, 2017).              Committee met on May 30, 2018, and
                                                 submitted in response to this rule will                    This proposed rule has been reviewed               unanimously recommended 2018–2019
                                                 be included in the record and will be                   under Executive Order 12988, Civil                    fiscal period expenditures of $693,472.
                                                 made available to the public. Please be                 Justice Reform. Under the Order now in                In comparison, last year’s budgeted
                                                 advised that the identity of the                        effect, Oregon and Washington pear                    expenditures were $800,150. The
                                                 individuals or entities submitting the                  handlers are subject to assessments.                  Committee also unanimously
                                                 comments will be made public on the                     Funds to administer the Order are                     recommended an assessment rate of
                                                 internet at the address provided above.                 derived from such assessments. It is                  $7.15 per ton of ‘‘summer/fall’’ varieties


                                            VerDate Sep<11>2014   16:21 Sep 11, 2018   Jkt 244001   PO 00000   Frm 00001   Fmt 4702   Sfmt 4702   E:\FR\FM\12SEP1.SGM   12SEP1


                                                 46120             Federal Register / Vol. 83, No. 177 / Wednesday, September 12, 2018 / Proposed Rules

                                                 of pears for canning handled. The                       fiscal periods would be reviewed and,                 processed pear handlers and growers
                                                 proposed assessment rate of $7.15 per                   as appropriate, approved by USDA.                     may be classified as small entities.
                                                 ton is $0.85 lower than the $8.00 per ton                                                                        This proposal would decrease the
                                                                                                         Initial Regulatory Flexibility Analysis               assessment rate collected from handlers
                                                 rate currently in effect. The Committee
                                                 recommended the lower assessment rate                      Pursuant to requirements set forth in              for the 2018–2019 and subsequent fiscal
                                                 to balance assessment revenue with its                  the Regulatory Flexibility Act (RFA) (5               periods from $8.00 per ton to $7.15 per
                                                 budgeted expenditures and to maintain                   U.S.C. 601–612), the Agricultural                     ton of Oregon and Washington
                                                 its monetary reserve at levels authorized               Marketing Service (AMS) has                           ‘‘summer/fall’’ pears for canning
                                                 in the Order.                                           considered the economic impact of this                handled. The Committee unanimously
                                                    The major expenditures                               proposed rule on small entities.                      recommended 2018–2019 fiscal period
                                                 recommended by the Committee for the                    Accordingly, AMS has prepared this                    expenditures of $693,472 and the $7.15
                                                 2018–2019 fiscal period include                         initial regulatory flexibility analysis.              per ton assessment rate. The proposed
                                                 $495,000 for promotion and paid                            The purpose of the RFA is to fit                   assessment rate of $7.15 per ton is $0.85
                                                 advertising, $136,172 for research,                     regulatory actions to the scale of                    lower than the rate in effect for the
                                                 $15,000 for market access programs,                     businesses subject to such actions in                 2017–2018 fiscal period. The quantity of
                                                 $25,000 for administrative and                          order that small businesses will not be               assessable ‘‘summer/fall’’ pears for
                                                                                                         unduly or disproportionately burdened.                canning for the 2018–2019 fiscal period
                                                 management services, and $22,300 for
                                                                                                         Marketing orders issued pursuant to the               is estimated at 100,000 tons. Thus, the
                                                 Committee expenses. In comparison,
                                                                                                         Act, and the rules issued thereunder, are             proposed $7.15 per ton rate should
                                                 these major expense categories for the
                                                                                                         unique in that they are brought about                 provide $715,000 in assessment income.
                                                 2017–2018 fiscal period were budgeted
                                                                                                         through group action of essentially                   Income derived from handler
                                                 at $591,030, $147,694, $14,576, $25,000,
                                                                                                         small entities acting on their own                    assessments should be adequate to cover
                                                 and $21,850; respectively.
                                                                                                         behalf.                                               budgeted expenses, with any excess
                                                    The assessment rate recommended by                      There are approximately 1,500
                                                 the Committee was derived by                                                                                  funds to be carried over in the
                                                                                                         growers of pears for processing in the                Committee’s monetary reserve to be
                                                 considering anticipated expenses,                       production area and approximately 43
                                                 expected shipments, and the amount of                                                                         used in subsequent years.
                                                                                                         handlers of processed pears subject to                   The major expenditures
                                                 funds available in the authorized                       regulation under the Order. Small                     recommended by the Committee for the
                                                 reserve. The quantity of assessable                     agricultural producers are defined by                 2018–2019 fiscal period include
                                                 ‘‘summer/fall’’ pears for canning for the               the Small Business Administration                     $495,000 for promotion and paid
                                                 2018–2019 fiscal period is estimated at                 (SBA) as those having annual receipts                 advertising, $136,172 for research,
                                                 100,000 tons. Thus, the proposed $7.15                  less than $750,000, and small                         $15,000 for market access programs,
                                                 per ton should provide handler                          agricultural service firms are defined as             $25,000 for administrative and
                                                 assessments of $715,000. This amount                    those whose annual receipts are less                  management services, and $22,300 for
                                                 would be adequate to cover budgeted                     than $7,500,000 (13 CFR 121.201).                     Committee expenses. In comparison,
                                                 expenses of $693,472, with any excess                      According to data from USDA                        these major expense categories for the
                                                 funds used to make a small contribution                 National Agricultural Statistics Service              2017–2018 fiscal period were budgeted
                                                 to the Committee’s monetary reserve.                    (NASS), the Committee, and the                        at $591,030, $147,694, $14,576, $25,000,
                                                 Funds in the reserve (currently                         industry for the 2016–2017 season (the                and $21,850, respectively.
                                                 $497,565) would be kept within the                      most recent complete season of record)                   The proposed lower assessment rate is
                                                 maximum permitted by § 927.42(a) of                     the average f.o.b. price for Oregon-                  necessary to balance assessment
                                                 approximately one fiscal period’s                       Washington processed Bartlett pears                   revenue with the Committee’s 2018–
                                                 expenses.                                               (the only variety used for canning in the             2019 fiscal period budgeted
                                                    The assessment rate proposed in this                 production area) was approximately                    expenditures and to maintain its
                                                 rule would continue in effect                           $390.50 per ton. Total shipments for                  monetary reserve at levels authorized in
                                                 indefinitely unless modified,                           that period were approximately 103,020                the Order.
                                                 suspended, or terminated by USDA                        tons. Using the number of handlers, and                  Prior to arriving at this budget and
                                                 upon recommendation and information                     assuming a normal distribution, the                   assessment rate, the Committee
                                                 submitted by the Committee, or other                    majority of handlers would have average               considered the benefits and costs related
                                                 available information.                                  annual receipts of less than $7,500,000               to maintaining the current assessment
                                                    Although this assessment rate would                  ($390.50 per ton times 103,020 tons                   rate of $8.00 per ton and establishing
                                                 be in effect for an indefinite period, the              equals $40,229,310 divided by 43                      other assessment rates. However,
                                                 Committee would continue to meet                        handlers equals $935,565 per handler).                leaving the assessment rate unchanged
                                                 prior to or during each fiscal period to                   In addition, based on data from the                would generate more revenue than
                                                 recommend a budget of expenses and                      Committee, the industry produced                      required to meet the Committee’s 2018–
                                                 consider recommendations for                            103,020 tons of processed pears in the                2019 fiscal period budgeted expenses of
                                                 modification of the assessment rate. The                production area during the 2016–2017                  $693,472, and would add a large
                                                 dates and times of Committee meetings                   season, with an average grower price of               amount of excess funds to the
                                                 are available from the Committee or                     $360 per ton. Based on the average                    Committee’s already sufficient monetary
                                                 USDA. Committee meetings are open to                    grower price, production, and the total               reserve. Based on estimated shipments,
                                                 the public and interested persons may                   number of Oregon-Washington                           the recommended assessment rate of
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                                                 express their views at these meetings.                  processed pear growers reported by the                $7.15 per ton should provide $715,000
                                                 USDA would evaluate Committee                           Committee (1,500), and assuming a                     in assessment income. The Committee
                                                 recommendations and other available                     normal distribution, the average annual               determined assessment revenue would
                                                 information to determine whether                        grower revenue is below $750,000 ($360                be adequate to fully cover budgeted
                                                 modification of the assessment rate is                  per ton times 103,020 tons equals                     expenditures for the 2018–2019 fiscal
                                                 needed. Further rulemaking would be                     $37,087,200 divided by 1,500 growers                  period, with a small amount of excess
                                                 undertaken as necessary. The                            equals $24,725 per grower). Thus, the                 funds to be added to the Committee’s
                                                 Committee’s budget for subsequent                       majority of Oregon and Washington                     monetary reserve. Reserve funds would


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                                                                   Federal Register / Vol. 83, No. 177 / Wednesday, September 12, 2018 / Proposed Rules                                          46121

                                                 be kept within the amount authorized in                    USDA has not identified any relevant               SUMMARY:    The Food and Drug
                                                 the Order.                                              Federal rules that duplicate, overlap, or             Administration (FDA, the Agency, or
                                                   A review of historical information and                conflict with this proposed rule.                     we) is proposing to repeal a regulation
                                                 preliminary information pertaining to                      A small business guide on complying                that requires an FDA-approved new
                                                 the upcoming fiscal year indicates that                 with fruit, vegetable, and specialty crop             drug application (NDA) or abbreviated
                                                 the average grower price for the 2018–                  marketing agreements and orders may                   new drug application (ANDA) for any
                                                 2019 season should be approximately                     be viewed at: http://www.ams.usda.gov/                drug product that is sterilized by
                                                 $296 per ton of pears for processing.                   rules-regulations/moa/small-businesses.               irradiation (the irradiation regulation).
                                                 Therefore, the estimated assessment                     Any questions about the compliance                    Repealing the irradiation regulation
                                                 revenue for the 2018–2019 fiscal period                 guide should be sent to Richard Lower                 would mean that over-the-counter
                                                 as a percentage of total grower revenue                 at the previously mentioned address in                (OTC) drug products that are generally
                                                 would be about 2.4 percent ($7.15 per                   the FOR FURTHER INFORMATION CONTACT                   recognized as safe and effective, that are
                                                 ton assessment divided by $296 per ton                  section.                                              not misbranded, and that comply with
                                                 grower price).                                          List of Subjects in 7 CFR Part 927                    all applicable regulatory requirements
                                                   This proposed action would decrease                                                                         can be marketed legally without an NDA
                                                 the assessment obligation imposed on                      Marketing agreements, Pears,                        or ANDA, even if they are sterilized by
                                                 handlers for the 2018–2019 and                          Reporting and recordkeeping                           irradiation. FDA is proposing to take
                                                 subsequent fiscal periods. Assessments                  requirements.                                         this action because the irradiation
                                                 are applied uniformly on all handlers,                    For the reasons set forth in the                    regulation is out of date and
                                                 and some of the costs may be passed on                  preamble, 7 CFR part 927 is proposed to               unnecessary. The technology of
                                                 to producers. However, decreasing the                   be amended as follows:                                controlled nuclear radiation for
                                                 assessment rate would reduce the                                                                              sterilization of drugs is now well
                                                 burden on handlers, and may reduce the                  PART 927—PEARS GROWN IN                               understood, and our regulations require
                                                 burden on producers.                                    OREGON AND WASHINGTON                                 that OTC drugs be manufactured in
                                                   The Committee’s meetings were                         ■ 1. The authority citation for 7 CFR                 compliance with current good
                                                 widely publicized throughout the                        part 927 continues to read as follows:                manufacturing practices (CGMPs).
                                                 Oregon and Washington processed pear                                                                          Appropriate and effective sterilization
                                                                                                             Authority: 7 U.S.C. 601–674.                      of drugs, including by irradiation, is
                                                 industry. All interested persons were
                                                 invited to attend the meetings and                      ■ 2. In § 927.237 revise the intro                    adequately addressed by the CGMP
                                                 participate in Committee deliberations                  paragraph text and paragraph (a) to read              requirements. This action is part of
                                                 on all issues. Like all Committee                       as follows:                                           FDA’s implementation of Executive
                                                 meetings, the May 30, 2018, meeting                                                                           Orders (EOs) 13771 and 13777. Under
                                                                                                         § 927.237    Assessment rate.                         these EOs, FDA is comprehensively
                                                 was a public meeting and all entities,
                                                 both large and small, were able to                        On and after July 1, 2018, the                      reviewing existing regulations to
                                                 express views on this issue. Finally,                   following base rates of assessment for                identify opportunities for repeal,
                                                 interested persons are invited to submit                pears for processing are established for              replacement, or modification that will
                                                 comments on this proposed rule,                         the Processed Pear Committee:                         result in meaningful burden reduction
                                                                                                           (a) $7.15 per ton for any or all                    while allowing the Agency to achieve
                                                 including the regulatory and
                                                                                                         varieties or subvarieties of pears for                our public health mission and fulfill
                                                 information collection impacts of this
                                                                                                         canning classified as ‘‘summer/fall’’                 statutory obligations.
                                                 action on small businesses.
                                                                                                         excluding pears for other methods of
                                                   In accordance with the Paperwork                                                                            DATES: Submit either electronic or
                                                                                                         processing;
                                                 Reduction Act of 1995 (44 U.S.C.                                                                              written comments on the proposed rule
                                                 chapter 35), the Order’s information                    *     *     *     *    *                              by November 13, 2018.
                                                 collection requirements have been                         Dated: September 6, 2018.                           ADDRESSES: You may submit comments
                                                 previously approved by OMB and                          Bruce Summers,                                        as follows. Please note that late,
                                                 assigned OMB No. 0581–0189. No                          Administrator, Agricultural Marketing                 untimely filed comments will not be
                                                 changes in those requirements would be                  Service.                                              considered. Electronic comments must
                                                 necessary because of this action. Should                [FR Doc. 2018–19683 Filed 9–11–18; 8:45 am]           be submitted on or before November 13,
                                                 any changes become necessary, they                      BILLING CODE 3410–02–P                                2018. The https://www.regulations.gov
                                                 would be submitted to OMB for                                                                                 electronic filing system will accept
                                                 approval.                                                                                                     comments until midnight Eastern Time
                                                   This proposed rule would not impose                   DEPARTMENT OF HEALTH AND                              at the end of November 13, 2018.
                                                 any additional reporting or                             HUMAN SERVICES                                        Comments received by mail/hand
                                                 recordkeeping requirements on either                                                                          delivery/courier (for written/paper
                                                 small or large Oregon and Washington                    Food and Drug Administration                          submissions) will be considered timely
                                                 processed pear handlers. As with all                                                                          if they are postmarked or the delivery
                                                 Federal marketing order programs,                       21 CFR Part 310                                       service acceptance receipt is on or
                                                 reports and forms are periodically                                                                            before that date.
                                                 reviewed to reduce information                          [Docket No. FDA–2017–N–6924]
                                                 requirements and duplication by                         RIN 0910–AH47                                         Electronic Submissions
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                                                 industry and public sector agencies.                                                                            Submit electronic comments in the
                                                   AMS is committed to complying with                    Repeal of Regulation Requiring an                     following way:
                                                 the E-Government Act, to promote the                    Approved New Drug Application for                       • Federal eRulemaking Portal: https://
                                                 use of the internet and other                           Drugs Sterilized by Irradiation                       www.regulations.gov. Follow the
                                                 information technologies to provide                     AGENCY:     Food and Drug Administration,             instructions for submitting comments.
                                                 increased opportunities for citizen                     HHS.                                                  Comments submitted electronically,
                                                 access to Government information and                                                                          including attachments, to https://
                                                                                                         ACTION:   Proposed rule.
                                                 services, and for other purposes.                                                                             www.regulations.gov will be posted to


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Document Created: 2018-09-12 02:06:31
Document Modified: 2018-09-12 02:06:31
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule.
DatesComments must be received by October 12, 2018.
ContactDale Novotny, Marketing Specialist, or Gary Olson, Regional Director, Northwest Marketing Field Office, Marketing Order and Agreement Division, Specialty Crops Program, AMS, USDA; Telephone: (503) 326-2724, Fax: (503) 326-7440, or Email: [email protected] or [email protected] Small businesses may request information on complying with this regulation by contacting Richard Lower, Marketing Order and Agreement Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue SW, STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-2491, Fax: (202) 720-8938, or Email: [email protected]
FR Citation83 FR 46119 
CFR AssociatedMarketing Agreements; Pears and Reporting and Recordkeeping Requirements

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