83_FR_56474 83 FR 56255 - Pears Grown in Oregon and Washington; Increased Assessment Rate for Fresh Pears

83 FR 56255 - Pears Grown in Oregon and Washington; Increased Assessment Rate for Fresh Pears

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 83, Issue 219 (November 13, 2018)

Page Range56255-56257
FR Document2018-24728

This rule implements a recommendation from the Fresh Pear Committee (Committee) to increase the assessment rate established for the 2018-2019 and subsequent fiscal periods. The assessment rate will remain in effect indefinitely unless modified, suspended, or terminated.

Federal Register, Volume 83 Issue 219 (Tuesday, November 13, 2018)
[Federal Register Volume 83, Number 219 (Tuesday, November 13, 2018)]
[Rules and Regulations]
[Pages 56255-56257]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-24728]



========================================================================
Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 

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


Federal Register / Vol. 83, No. 219 / Tuesday, November 13, 2018 / 
Rules and Regulations

[[Page 56255]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 927

[Doc. No. AMS-SC-18-0048; SC18-927-1 FR]


Pears Grown in Oregon and Washington; Increased Assessment Rate 
for Fresh Pears

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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

SUMMARY: This rule implements a recommendation from the Fresh Pear 
Committee (Committee) to increase the assessment rate established for 
the 2018-2019 and subsequent fiscal periods. The assessment rate will 
remain in effect indefinitely unless modified, suspended, or 
terminated.

DATES: Effective December 13, 2018.

FOR FURTHER INFORMATION CONTACT: Barry Broadbent, 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: 
Barry.Broadbent@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, 
amends regulations issued to carry out a marketing order as defined in 
7 CFR 900.2(j). This 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 and 
handlers operating within the area of production, and a public member.
    The Department of Agriculture (USDA) is issuing this final rule in 
conformance with Executive Orders 13563 and 13175. This 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 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'[thinsp]'' (February 2, 2017).
    This 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. The assessment rate established by 
this rule will be applicable to all assessable pears 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 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 rule increases the assessment rate from $0.449 to $0.463 per 
44-pound standard box or equivalent of fresh ``summer/fall'' and 
``winter'' pears handled for the 2018-2019 and subsequent fiscal 
periods. The higher rate is necessary to fully cover the Committee's 
2018-2019 fiscal period budgeted expenditures. The Committee has had to 
draw from its monetary reserve to partially fund program activities 
during the last two fiscal periods. Drawing from reserves to fund 
operations on an on-going basis is not a sustainable strategy. 
Therefore, increasing the continuing assessment rate will allow the 
Committee to fully fund budgeted expenses and replenish its financial 
reserve.
    The Committee met on May 31, 2018, and unanimously recommended 
2018-2019 fiscal period expenditures of $9,213,133 and an assessment 
rate of $0.463 per standard box or equivalent of fresh ``summer/fall'' 
and ``winter'' pears handled. In comparison, last year's budgeted 
expenditures were $9,282,059. The new assessment rate of $0.463 is 
$0.014 higher than the $0.449 rate previously in effect. The Committee 
recommended the assessment rate increase because expenditures have 
exceeded assessment revenue in the previous two fiscal periods.
    The major expenditures recommended by the Committee for the 2018-
2019 fiscal period include $550,790 for contracted administration by 
Pear Bureau Northwest, $190,700 for administrative expenses, $771,643 
for production research and market development, and $7,700,000 for 
promotion and paid advertising for both ``summer/fall'' and ``winter'' 
varieties of fresh pears. In comparison, major expenses for the 2017-
2018 fiscal period included $512,928 for contracted

[[Page 56256]]

administration, $232,200 for administrative expenses, $836,931 for 
production research and market development, and $7,700,000 for 
promotion and paid advertising.
    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. Anticipated income derived 
from handler assessments of $9,260,000 (20 million standard boxes or 
equivalent at $0.463 per box) should be adequate to cover budgeted 
expenses of $9,213,133, with any excess funds used to replenish the 
Committee's monetary reserve. Funds in the reserve (currently 
$1,096,332) will be kept within the maximum permitted by Sec.  
927.42(a) and will not exceed the expenses of approximately one fiscal 
period.
    The assessment rate established in this rule will 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 will be in effect for an indefinite 
period, the Committee will 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 will 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 will be reviewed and, as appropriate, approved by USDA.

Final 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 rule on small entities. 
Accordingly, AMS has prepared this final 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 827 growers of fresh pears in the 
production area and approximately 38 handlers 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 Market News, the industry, and the 
Committee, for the 2016-17 season, the weighted average f.o.b. price 
for Oregon-Washington fresh pears was approximately $26.99 per standard 
44-pound box. Total shipments for that period were 17,878,219 standard 
boxes or equivalent. Using the number of handlers, and assuming a 
normal distribution, the majority of handlers may have average annual 
receipts of more than $7,500,000 ($26.99 per box times 17,878,219 
equals $482,533,130 divided by 38 handlers equals $12,698,240 per 
handler).
    In addition, based on National Agricultural Statistics Service 
data, the industry produced 441,950 tons of fresh pears in the 
production area during the 2016-2017 season, with an average grower 
price of $797 per ton. Based on the average grower price, production, 
and the total number of Oregon-Washington fresh pear growers, and 
assuming a normal distribution, the average annual grower revenue is 
below $750,000 ($797 per ton times 441,950 tons equals $352,234,150 
divided by 827 growers equals $425,918 per grower). Thus, the majority 
of Oregon and Washington fresh pear handlers may be classified as large 
entities, while the majority of growers may be classified as small 
entities.
    This rule increases the assessment rate collected from handlers for 
the 2018-2019 and subsequent fiscal periods from $0.449 to $0.463 per 
standard box or equivalent of Oregon and Washington fresh ``summer/
fall'' and ``winter'' pears handled. The Committee unanimously 
recommended 2018-2019 fiscal period expenditures of $9,213,133 and the 
$0.463 per standard box or equivalent assessment rate. The assessment 
rate of $0.463 is $0.014 higher than the rate for the 2017-2018 fiscal 
period. The quantity of assessable fresh ``summer/fall'' and ``winter'' 
pears for the 2018-2019 fiscal period is estimated at 20 million 
standard boxes or equivalent. Thus, the $0.463 rate should provide 
$9,260,000 in assessment income. Income derived from handler 
assessments should be adequate to cover budgeted expenses, with any 
excess funds used to replenish the Committee's monetary reserve.
    The major expenditures recommended by the Committee for the 2018-
2019 fiscal period include $550,790 for contracted administration by 
Pear Bureau Northwest, $190,700 for administrative expenses, $771,643 
for production research and market development, and $7,700,000 for 
promotion and paid advertising for both ``summer/fall'' pears and 
``winter'' pears. Budgeted expenses for these items in the 2017-2018 
fiscal period were $512,928, $232,200, $836,931, and $7,700,000, 
respectively.
    The higher assessment rate is necessary to fully cover the 
Committee's 2018-2019 fiscal period budgeted expenditures. The 
Committee has had to draw from its monetary reserve to partially fund 
program activities during the 2016-2017 and 2017-2018 fiscal periods. 
Drawing from its financial reserve to fund operations on an on-going 
basis is not a sustainable strategy. Increasing the continuing 
assessment rate will allow the Committee to fully fund budgeted 
expenses and replenish its financial reserve.
    Prior to arriving at this budget and assessment rate, the Committee 
considered maintaining the current assessment rate of $0.449 per 
standard box or equivalent. However, leaving the assessment unchanged 
would not have generated sufficient revenue to meet the Committee's 
2018-2019 fiscal period budgeted expenses of $9,213,133, and would have 
required the Committee to continue to deplete its financial reserve. 
Based on estimated shipments, the recommended assessment rate of $0.463 
per standard box or equivalent should provide $9,260,000 in assessment 
income. The Committee determined assessment revenue should be adequate 
to cover budgeted expenses for the 2018-2019 fiscal period. Any excess 
assessment revenue will be allocated to replenish the Committee's 
monetary reserve. Reserve funds will 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 $800 per 
ton of fresh pears. Therefore, the estimated assessment revenue for the 
2018-2019 fiscal period as a percentage of total grower revenue is 
about 2.6 percent.
    This action increases the assessment obligation imposed on 
handlers. While assessments impose some additional costs on handlers, 
the costs are minimal

[[Page 56257]]

and uniform on all handlers. Some of the additional costs may be passed 
on to growers. However, these costs are offset by the benefits derived 
by the operation of the Order. In addition, the Committee's meeting was 
widely publicized throughout the Oregon and Washington fresh pear 
industry. All interested persons were invited to attend the meeting and 
participate in Committee deliberations on all issues. Like all 
Committee meetings, the May 31, 2018, meeting was a public meeting and 
all entities, both large and small, were able to express views on this 
issue.
    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 the OMB and assigned OMB No. 0581-0189 Fruit 
Crops. No changes in those requirements are necessary as a result of 
this action. Should any changes become necessary, they would be 
submitted to OMB for approval.
    This rule imposes no additional reporting or recordkeeping 
requirements on either small or large Oregon and Washington fresh 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. USDA has not 
identified any relevant Federal rules that duplicate, overlap, or 
conflict with this final rule.
    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.
    A proposed rule concerning this action was published in the Federal 
Register on August 28, 2018 (83 FR 43799). Copies of the proposed rule 
were also mailed or sent via facsimile to all Oregon and Washington 
fresh pear handlers. The proposal was made available through the 
internet by USDA and the Office of the Federal Register. A 30-day 
comment period ending September 27, 2018, was provided for interested 
persons to respond to the proposal. One comment was received during the 
comment period. The commenter was in favor of the regulation. 
Accordingly, no changes will be made to the rule as proposed, based on 
the comment received.
    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.
    After consideration of all relevant material presented, including 
the information and recommendation submitted by the Committee and other 
available information, it is hereby found that this rule, will tend to 
effectuate the declared policy of the Act.

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--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.  927.236, the introductory text and paragraphs (a) and (b) 
are revised to read as follows:


Sec.  927.236   Assessment rate.

    On and after July 1, 2018, the following base rates of assessment 
for fresh pears are established for the Fresh Pear Committee:
    (a) $0.463 per 44-pound net weight standard box or container 
equivalent for any or all varieties or subvarieties of fresh pears 
classified as ``summer/fall'';
    (b) $0.463 per 44-pound net weight standard box or container 
equivalent for any or all varieties or subvarieties of fresh pears 
classified as ``winter''; and
* * * * *

    Dated: November 7, 2018.
Bruce Summers,
Administrator, Agricultural Marketing Service.
[FR Doc. 2018-24728 Filed 11-9-18; 8:45 am]
 BILLING CODE 3410-02-P



                                                                                                                                                                                            56255

                                           Rules and Regulations                                                                                         Federal Register
                                                                                                                                                         Vol. 83, No. 219

                                                                                                                                                         Tuesday, November 13, 2018



                                           This section of the FEDERAL REGISTER                    of pears grown in Oregon and                             The Order provides authority for the
                                           contains regulatory documents having general            Washington. Part 927, (referred to as                 Committee, with the approval of USDA,
                                           applicability and legal effect, most of which           ‘‘the Order’’) is effective under the                 to formulate an annual budget of
                                           are keyed to and codified in the Code of                Agricultural Marketing Agreement Act                  expenses and collect assessments from
                                           Federal Regulations, which is published under           of 1937, as amended (7 U.S.C. 601–674),               handlers to administer the program. The
                                           50 titles pursuant to 44 U.S.C. 1510.
                                                                                                   hereinafter referred to as the ‘‘Act.’’ The           members are familiar with the
                                           The Code of Federal Regulations is sold by              Committee locally administers the                     Committee’s needs and with the costs of
                                           the Superintendent of Documents.                        Order and is comprised of growers and                 goods and services in their local area
                                                                                                   handlers operating within the area of                 and are in a position to formulate an
                                                                                                   production, and a public member.                      appropriate budget and assessment rate.
                                           DEPARTMENT OF AGRICULTURE                                  The Department of Agriculture                      The assessment rate is formulated and
                                                                                                   (USDA) is issuing this final rule in                  discussed in a public meeting where all
                                           Agricultural Marketing Service                          conformance with Executive Orders                     directly affected persons have an
                                                                                                   13563 and 13175. This rule falls within               opportunity to participate and provide
                                           7 CFR Part 927                                          a category of regulatory actions that the             input.
                                           [Doc. No. AMS–SC–18–0048; SC18–927–1                    Office of Management and Budget                          This rule increases the assessment
                                           FR]                                                     (OMB) exempted from Executive Order                   rate from $0.449 to $0.463 per 44-pound
                                                                                                   12866 review. Additionally, because                   standard box or equivalent of fresh
                                           Pears Grown in Oregon and                               this rule does not meet the definition of             ‘‘summer/fall’’ and ‘‘winter’’ pears
                                           Washington; Increased Assessment                        a significant regulatory action, it does              handled for the 2018–2019 and
                                           Rate for Fresh Pears                                    not trigger the requirements contained                subsequent fiscal periods. The higher
                                                                                                   in Executive Order 13771. See OMB’s                   rate is necessary to fully cover the
                                           AGENCY:  Agricultural Marketing Service,
                                                                                                   Memorandum titled ‘‘Interim Guidance                  Committee’s 2018–2019 fiscal period
                                           USDA.
                                                                                                   Implementing Section 2 of the Executive               budgeted expenditures. The Committee
                                           ACTION: Final rule.                                     Order of January 30, 2017, titled                     has had to draw from its monetary
                                           SUMMARY:   This rule implements a                       ‘Reducing Regulation and Controlling                  reserve to partially fund program
                                           recommendation from the Fresh Pear                      Regulatory Costs’ ’’ (February 2, 2017).              activities during the last two fiscal
                                           Committee (Committee) to increase the                      This rule has been reviewed under                  periods. Drawing from reserves to fund
                                           assessment rate established for the                     Executive Order 12988, Civil Justice                  operations on an on-going basis is not a
                                           2018–2019 and subsequent fiscal                         Reform. Under the Order now in effect,                sustainable strategy. Therefore,
                                           periods. The assessment rate will                       Oregon and Washington pear handlers                   increasing the continuing assessment
                                           remain in effect indefinitely unless                    are subject to assessments. Funds to                  rate will allow the Committee to fully
                                           modified, suspended, or terminated.                     administer the Order are derived from                 fund budgeted expenses and replenish
                                                                                                   such assessments. The assessment rate                 its financial reserve.
                                           DATES: Effective December 13, 2018.
                                                                                                   established by this rule will be                         The Committee met on May 31, 2018,
                                           FOR FURTHER INFORMATION CONTACT:                        applicable to all assessable pears for the            and unanimously recommended 2018–
                                           Barry Broadbent, Marketing Specialist,                  2018–2019 fiscal period, and continue                 2019 fiscal period expenditures of
                                           or Gary Olson, Regional Director,                       until amended, suspended, or                          $9,213,133 and an assessment rate of
                                           Northwest Marketing Field Office,                       terminated.                                           $0.463 per standard box or equivalent of
                                           Marketing Order and Agreement                              The Act provides that administrative               fresh ‘‘summer/fall’’ and ‘‘winter’’ pears
                                           Division, Specialty Crops Program,                      proceedings must be exhausted before                  handled. In comparison, last year’s
                                           AMS, USDA; Telephone: (503) 326–                        parties may file suit in court. Under                 budgeted expenditures were $9,282,059.
                                           2724, Fax: (503) 326–7440, or Email:                    section 608c(15)(A) of the Act, any                   The new assessment rate of $0.463 is
                                           Barry.Broadbent@ams.usda.gov or                         handler subject to an order may file                  $0.014 higher than the $0.449 rate
                                           GaryD.Olson@ams.usda.gov.                               with USDA a petition stating that the                 previously in effect. The Committee
                                             Small businesses may request                          order, any provision of the order, or any             recommended the assessment rate
                                           information on complying with this                      obligation imposed in connection with                 increase because expenditures have
                                           regulation by contacting Richard Lower,                 the order is not in accordance with law               exceeded assessment revenue in the
                                           Marketing Order and Agreement                           and request a modification of the order               previous two fiscal periods.
                                           Division, Specialty Crops Program,                      or to be exempted therefrom. Such                        The major expenditures
                                           AMS, USDA, 1400 Independence                            handler is afforded the opportunity for               recommended by the Committee for the
                                           Avenue SW, STOP 0237, Washington,                       a hearing on the petition. After the                  2018–2019 fiscal period include
                                           DC 20250–0237; Telephone: (202) 720–                    hearing, USDA would rule on the                       $550,790 for contracted administration
                                           2491, Fax: (202) 720–8938, or Email:                    petition. The Act provides that the                   by Pear Bureau Northwest, $190,700 for
                                           Richard.Lower@ams.usda.gov.                             district court of the United States in any            administrative expenses, $771,643 for
                                           SUPPLEMENTARY INFORMATION: This                         district in which the handler is an                   production research and market
amozie on DSK3GDR082PROD with RULES




                                           action, pursuant to 5 U.S.C. 553,                       inhabitant, or has his or her principal               development, and $7,700,000 for
                                           amends regulations issued to carry out                  place of business, has jurisdiction to                promotion and paid advertising for both
                                           a marketing order as defined in 7 CFR                   review USDA’s ruling on the petition,                 ‘‘summer/fall’’ and ‘‘winter’’ varieties of
                                           900.2(j). This rule is issued under                     provided an action is filed not later than            fresh pears. In comparison, major
                                           Marketing Order No. 927, as amended (7                  20 days after the date of the entry of the            expenses for the 2017–2018 fiscal
                                           CFR part 927), regulating the handling                  ruling.                                               period included $512,928 for contracted


                                      VerDate Sep<11>2014   16:36 Nov 09, 2018   Jkt 247001   PO 00000   Frm 00001   Fmt 4700   Sfmt 4700   E:\FR\FM\13NOR1.SGM   13NOR1


                                           56256            Federal Register / Vol. 83, No. 219 / Tuesday, November 13, 2018 / Rules and Regulations

                                           administration, $232,200 for                            small entities acting on their own                    adequate to cover budgeted expenses,
                                           administrative expenses, $836,931 for                   behalf.                                               with any excess funds used to replenish
                                           production research and market                             There are approximately 827 growers                the Committee’s monetary reserve.
                                           development, and $7,700,000 for                         of fresh pears in the production area and                The major expenditures
                                           promotion and paid advertising.                         approximately 38 handlers subject to                  recommended by the Committee for the
                                              The assessment rate recommended by                   regulation under the Order. Small                     2018–2019 fiscal period include
                                           the Committee was derived by                            agricultural producers are defined by                 $550,790 for contracted administration
                                           considering anticipated expenses,                       the Small Business Administration                     by Pear Bureau Northwest, $190,700 for
                                           expected shipments, and the amount of                   (SBA) as those having annual receipts                 administrative expenses, $771,643 for
                                           funds available in the authorized                       less than $750,000, and small                         production research and market
                                           reserve. Anticipated income derived                     agricultural service firms are defined as             development, and $7,700,000 for
                                           from handler assessments of $9,260,000                  those whose annual receipts are less                  promotion and paid advertising for both
                                           (20 million standard boxes or equivalent                than $7,500,000 (13 CFR 121.201).                     ‘‘summer/fall’’ pears and ‘‘winter’’
                                           at $0.463 per box) should be adequate                      According to data from USDA Market                 pears. Budgeted expenses for these
                                           to cover budgeted expenses of                           News, the industry, and the Committee,                items in the 2017–2018 fiscal period
                                           $9,213,133, with any excess funds used                  for the 2016–17 season, the weighted                  were $512,928, $232,200, $836,931, and
                                           to replenish the Committee’s monetary                   average f.o.b. price for Oregon-                      $7,700,000, respectively.
                                           reserve. Funds in the reserve (currently                Washington fresh pears was                               The higher assessment rate is
                                           $1,096,332) will be kept within the                     approximately $26.99 per standard 44-                 necessary to fully cover the Committee’s
                                           maximum permitted by § 927.42(a) and                    pound box. Total shipments for that                   2018–2019 fiscal period budgeted
                                           will not exceed the expenses of                         period were 17,878,219 standard boxes                 expenditures. The Committee has had to
                                           approximately one fiscal period.                        or equivalent. Using the number of                    draw from its monetary reserve to
                                              The assessment rate established in                   handlers, and assuming a normal                       partially fund program activities during
                                           this rule will continue in effect                       distribution, the majority of handlers                the 2016–2017 and 2017–2018 fiscal
                                           indefinitely unless modified,                           may have average annual receipts of                   periods. Drawing from its financial
                                           suspended, or terminated by USDA                        more than $7,500,000 ($26.99 per box                  reserve to fund operations on an on-
                                           upon recommendation and information                     times 17,878,219 equals $482,533,130                  going basis is not a sustainable strategy.
                                           submitted by the Committee or other                     divided by 38 handlers equals                         Increasing the continuing assessment
                                           available information.                                  $12,698,240 per handler).                             rate will allow the Committee to fully
                                              Although this assessment rate will be                   In addition, based on National                     fund budgeted expenses and replenish
                                           in effect for an indefinite period, the                 Agricultural Statistics Service data, the             its financial reserve.
                                           Committee will continue to meet prior                   industry produced 441,950 tons of fresh                  Prior to arriving at this budget and
                                           to or during each fiscal period to                      pears in the production area during the               assessment rate, the Committee
                                           recommend a budget of expenses and                      2016–2017 season, with an average                     considered maintaining the current
                                           consider recommendations for                            grower price of $797 per ton. Based on                assessment rate of $0.449 per standard
                                           modification of the assessment rate. The                the average grower price, production,                 box or equivalent. However, leaving the
                                           dates and times of Committee meetings                   and the total number of Oregon-                       assessment unchanged would not have
                                           are available from the Committee or                     Washington fresh pear growers, and                    generated sufficient revenue to meet the
                                           USDA. Committee meetings are open to                    assuming a normal distribution, the                   Committee’s 2018–2019 fiscal period
                                           the public and interested persons may                   average annual grower revenue is below                budgeted expenses of $9,213,133, and
                                           express their views at these meetings.                  $750,000 ($797 per ton times 441,950                  would have required the Committee to
                                           USDA will evaluate Committee                            tons equals $352,234,150 divided by                   continue to deplete its financial reserve.
                                           recommendations and other available                     827 growers equals $425,918 per                       Based on estimated shipments, the
                                           information to determine whether                        grower). Thus, the majority of Oregon                 recommended assessment rate of $0.463
                                           modification of the assessment rate is                  and Washington fresh pear handlers                    per standard box or equivalent should
                                           needed. Further rulemaking would be                     may be classified as large entities, while            provide $9,260,000 in assessment
                                           undertaken as necessary. The                            the majority of growers may be                        income. The Committee determined
                                           Committee’s budget for subsequent                       classified as small entities.                         assessment revenue should be adequate
                                           fiscal periods will be reviewed and, as                    This rule increases the assessment                 to cover budgeted expenses for the
                                           appropriate, approved by USDA.                          rate collected from handlers for the                  2018–2019 fiscal period. Any excess
                                                                                                   2018–2019 and subsequent fiscal                       assessment revenue will be allocated to
                                           Final Regulatory Flexibility Analysis                   periods from $0.449 to $0.463 per                     replenish the Committee’s monetary
                                              Pursuant to requirements set forth in                standard box or equivalent of Oregon                  reserve. Reserve funds will be kept
                                           the Regulatory Flexibility Act (RFA) (5                 and Washington fresh ‘‘summer/fall’’                  within the amount authorized in the
                                           U.S.C. 601–612), the Agricultural                       and ‘‘winter’’ pears handled. The                     Order.
                                           Marketing Service (AMS) has                             Committee unanimously recommended                        A review of historical information and
                                           considered the economic impact of this                  2018–2019 fiscal period expenditures of               preliminary information pertaining to
                                           rule on small entities. Accordingly,                    $9,213,133 and the $0.463 per standard                the upcoming fiscal year indicates that
                                           AMS has prepared this final regulatory                  box or equivalent assessment rate. The                the average grower price for the 2018–
                                           flexibility analysis.                                   assessment rate of $0.463 is $0.014                   2019 season should be approximately
                                              The purpose of the RFA is to fit                     higher than the rate for the 2017–2018                $800 per ton of fresh pears. Therefore,
                                           regulatory actions to the scale of                      fiscal period. The quantity of assessable             the estimated assessment revenue for
                                           businesses subject to such actions in                   fresh ‘‘summer/fall’’ and ‘‘winter’’ pears            the 2018–2019 fiscal period as a
amozie on DSK3GDR082PROD with RULES




                                           order that small businesses will not be                 for the 2018–2019 fiscal period is                    percentage of total grower revenue is
                                           unduly or disproportionately burdened.                  estimated at 20 million standard boxes                about 2.6 percent.
                                           Marketing orders issued pursuant to the                 or equivalent. Thus, the $0.463 rate                     This action increases the assessment
                                           Act, and the rules issued thereunder, are               should provide $9,260,000 in                          obligation imposed on handlers. While
                                           unique in that they are brought about                   assessment income. Income derived                     assessments impose some additional
                                           through group action of essentially                     from handler assessments should be                    costs on handlers, the costs are minimal


                                      VerDate Sep<11>2014   16:36 Nov 09, 2018   Jkt 247001   PO 00000   Frm 00002   Fmt 4700   Sfmt 4700   E:\FR\FM\13NOR1.SGM   13NOR1


                                                            Federal Register / Vol. 83, No. 219 / Tuesday, November 13, 2018 / Rules and Regulations                                            56257

                                           and uniform on all handlers. Some of                    Any questions about the compliance                    SUMMARY:    This document makes
                                           the additional costs may be passed on                   guide should be sent to Richard Lower                 technical corrections to a rule that was
                                           to growers. However, these costs are                    at the previously mentioned address in                published in the Federal Register on
                                           offset by the benefits derived by the                   the FOR FURTHER INFORMATION CONTACT                   August 7, 2018. The Commission
                                           operation of the Order. In addition, the                section.                                              adopted amendments to the regulatory
                                           Committee’s meeting was widely                             After consideration of all relevant                requirements in Regulation ATS under
                                           publicized throughout the Oregon and                    material presented, including the                     the Securities Exchange Act of 1934
                                           Washington fresh pear industry. All                     information and recommendation                        applicable to alternative trading systems
                                           interested persons were invited to                      submitted by the Committee and other                  (‘‘ATSs’’) that trade National Market
                                           attend the meeting and participate in                   available information, it is hereby found             System (‘‘NMS’’) stocks (hereinafter
                                           Committee deliberations on all issues.                  that this rule, will tend to effectuate the           referred to as ‘‘NMS Stock ATSs’’),
                                           Like all Committee meetings, the May                    declared policy of the Act.                           which included, among other items,
                                           31, 2018, meeting was a public meeting                                                                        Form ATS–N. This document is being
                                           and all entities, both large and small,                 List of Subjects in 7 CFR Part 927                    published to correct a citation contained
                                           were able to express views on this issue.                 Marketing agreements, Pears,                        in the adopted language of Part III, Item
                                              In accordance with the Paperwork                     Reporting and recordkeeping                           15.a of Form ATS–N.
                                           Reduction Act of 1995 (44 U.S.C.                        requirements.                                         DATES: Effective November 13, 2018.
                                           Chapter 35), the Order’s information                      For the reasons set forth in the                    FOR FURTHER INFORMATION CONTACT:
                                           collection requirements have been                       preamble, 7 CFR part 927 is amended as                Tyler Raimo, Senior Special Counsel, at
                                           previously approved by the OMB and                                                                            (202) 551–6227; Matthew Cursio,
                                                                                                   follows:
                                           assigned OMB No. 0581–0189 Fruit                                                                              Special Counsel, at (202) 551–5748;
                                           Crops. No changes in those                              PART 927—PEARS GROWN IN                               Marsha Dixon, Special Counsel, at (202)
                                           requirements are necessary as a result of               OREGON AND WASHINGTON                                 551–5782; Jennifer Dodd, Special
                                           this action. Should any changes become                                                                        Counsel, at (202) 551–5653; David
                                           necessary, they would be submitted to                   ■ 1. The authority citation for 7 CFR                 Garcia, Special Counsel, at (202) 551–
                                           OMB for approval.                                       part 927 continues to read as follows:                5681; or Megan Mitchell, Special
                                              This rule imposes no additional                                                                            Counsel, at (202) 551–4887; Office of
                                           reporting or recordkeeping requirements                     Authority: 7 U.S.C. 601–674.
                                                                                                                                                         Market Supervision, Division of Trading
                                           on either small or large Oregon and                     ■ 2. In § 927.236, the introductory text
                                                                                                                                                         and Markets, Securities and Exchange
                                           Washington fresh pear handlers. As                      and paragraphs (a) and (b) are revised to
                                                                                                                                                         Commission, 100 F Street NE,
                                           with all Federal marketing order                        read as follows:
                                                                                                                                                         Washington, DC 20549–7010.
                                           programs, reports and forms are
                                                                                                   § 927.236    Assessment rate.                         SUPPLEMENTARY INFORMATION: We are
                                           periodically reviewed to reduce
                                                                                                      On and after July 1, 2018, the                     making a technical amendment to Part
                                           information requirements and
                                                                                                   following base rates of assessment for                III, Item 15.a of Form ATS–N under 17
                                           duplication by industry and public
                                           sector agencies. USDA has not                           fresh pears are established for the Fresh             CFR 249.640.
                                           identified any relevant Federal rules                   Pear Committee:                                       List of Subjects in 17 CFR Part 249
                                           that duplicate, overlap, or conflict with                  (a) $0.463 per 44-pound net weight
                                                                                                   standard box or container equivalent for                Brokers, Reporting and recordkeeping
                                           this final rule.                                                                                              requirements, Securities.
                                              AMS is committed to complying with                   any or all varieties or subvarieties of
                                           the E-Government Act, to promote the                    fresh pears classified as ‘‘summer/fall’’;            Statutory Authority and Text of
                                           use of the internet and other                              (b) $0.463 per 44-pound net weight                 Amendments
                                           information technologies to provide                     standard box or container equivalent for                For the reasons set out above, title 17,
                                           increased opportunities for citizen                     any or all varieties or subvarieties of               chapter II of the Code of Federal
                                           access to Government information and                    fresh pears classified as ‘‘winter’’; and             Regulations is amended as follows:
                                           services, and for other purposes.                       *      *    *     *     *
                                              A proposed rule concerning this                                                                            PART 249—FORMS, SECURITIES
                                                                                                     Dated: November 7, 2018.
                                           action was published in the Federal                                                                           EXCHANGE ACT OF 1934
                                           Register on August 28, 2018 (83 FR                      Bruce Summers,
                                           43799). Copies of the proposed rule                     Administrator, Agricultural Marketing                 ■ 1. The authority citation for part 249
                                           were also mailed or sent via facsimile to               Service.                                              continues to read in part as follows:
                                           all Oregon and Washington fresh pear                    [FR Doc. 2018–24728 Filed 11–9–18; 8:45 am]
                                                                                                                                                            Authority: 15 U.S.C. 78a et seq. and 7201
                                           handlers. The proposal was made                         BILLING CODE 3410–02–P                                et seq.; 12 U.S.C. 5461 et seq.; 18 U.S.C. 1350;
                                           available through the internet by USDA                                                                        Sec. 953(b), Pub. L. 111–203, 124 Stat. 1904;
                                           and the Office of the Federal Register. A                                                                     Sec. 102(a)(3), Pub. L. 112–106, 126 Stat. 309
                                           30-day comment period ending                            SECURITIES AND EXCHANGE                               (2012); Sec. 107, Pub. L. 112–106, 126 Stat.
                                                                                                                                                         313 (2012), and Sec. 72001, Pub. L. 114–94,
                                           September 27, 2018, was provided for                    COMMISSION
                                                                                                                                                         129 Stat. 1312 (2015), unless otherwise
                                           interested persons to respond to the                                                                          noted.
                                           proposal. One comment was received                      17 CFR Part 249
                                                                                                                                                         *     *     *    *     *
                                           during the comment period. The                          [Release No. 34–84541; File No. S7–23–15]
                                           commenter was in favor of the                                                                                 ■ 2. Amend Form ATS–N (referenced in
                                           regulation. Accordingly, no changes will                RIN 3235–AL66                                         § 249.640) by revising Part III, Item 15.a
                                           be made to the rule as proposed, based                                                                        to read as follows:
amozie on DSK3GDR082PROD with RULES




                                           on the comment received.                                Regulation of NMS Stock Alternative                     Note: The text of Form ATS–N does not,
                                              A small business guide on complying                  Trading Systems                                       and this amendment will not, appear in the
                                           with fruit, vegetable, and specialty crop                                                                     Code of Federal Regulations.
                                                                                                   AGENCY:  Securities and Exchange
                                           marketing agreements and orders may                     Commission.
                                           be viewed at: http://www.ams.usda.gov/                                                                        Form ATS–N
                                                                                                   ACTION: Final rule; technical correction.
                                           rules-regulations/moa/small-businesses.                                                                       *        *       *    *   *


                                      VerDate Sep<11>2014   16:36 Nov 09, 2018   Jkt 247001   PO 00000   Frm 00003   Fmt 4700   Sfmt 4700   E:\FR\FM\13NOR1.SGM       13NOR1



Document Created: 2018-11-10 03:18:45
Document Modified: 2018-11-10 03:18:45
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesEffective December 13, 2018.
ContactBarry Broadbent, 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]
FR Citation83 FR 56255 
CFR AssociatedMarketing Agreements; Pears and Reporting and Recordkeeping Requirements

2024 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR