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.

Proposed Rules Federal Register

43799 

Vol. 83, No. 167 

Tuesday, August 28, 2018 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 927 

[Doc. No. AMS–SC–18–0048; SC18–927–1 

PR] 

Pears Grown in Oregon and 

Washington; Increased Assessment 

Rate for Fresh Pears 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Proposed rule. 

SUMMARY: This proposed rule would 

implement 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 would 

remain in effect indefinitely unless 

modified, suspended, or terminated. 

DATES: Comments must be received by 

September 27, 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: 

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, 

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 and handlers 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 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 proposed rule would increase 

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 

proposed 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 would allow the Committee to fully 

fund budgeted expenses and replenish 

its financial reserve. 

The Committee met on May 31, 2018, 

and unanimously recommended 2018– 


daltland on DSKBBV9HB2PROD with PROPOSALS
43800 Federal Register / Vol. 83, No. 167 / Tuesday, August 28, 2018 / Proposed Rules 

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 proposed assessment rate of $0.463 

is $0.014 higher than the $0.449 rate 

currently 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 

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. Income derived from handler 

assessments of $9,260,000 (20 million 

standard boxes or equivalent at $0.463 

per box) would 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) would 

be kept within the maximum permitted 

by § 927.42(a) and would not exceed the 

expenses of approximately one fiscal 

period. 

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 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 OregonWashington 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 

would 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 OregonWashington 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 proposal would increase 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 

proposed 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 would 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 proposed 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 2016–2017 and 2017–2018 fiscal 

periods. Drawing from its financial 

reserve to fund operations on an ongoing basis is not a sustainable strategy. 

Increasing the continuing assessment 

rate would 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 

generate 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 


daltland on DSKBBV9HB2PROD with PROPOSALS
Federal Register / Vol. 83, No. 167 / Tuesday, August 28, 2018 / Proposed Rules 43801 

recommended assessment rate of $0.463 

per standard box or equivalent should 

provide $9,260,000 in assessment 

income. The Committee determined 

assessment revenue would be adequate 

to fully cover budgeted expenditures for 

the 2018–2019 fiscal period, with any 

excess funds used to replenish the 

Committee’s monetary reserve. Reserve 

funds would 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 

would be about 2.6 percent. 

This proposed action would increase 

the assessment obligation imposed on 

handlers. While assessments impose 

some additional costs on handlers, the 

costs are minimal and uniform on all 

handlers. Some of the additional costs 

may be passed on to growers. However, 

these costs would be offset by the 

benefits derived by the operation of the 

Order. In addition, the Committee’s 

meetings were widely publicized 

throughout the Oregon and Washington 

fresh 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 31, 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 the OMB and 

assigned OMB No. 0581–0189 Fruit 

Crops. 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 

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. 

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 

■ 1. The authority citation for 7 CFR 

part 927 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

■ 2. Section 927.236 paragraphs (a) and 

(b) are revised to read as follows: 

§ 927.236 Fresh pear 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: August 22, 2018. 

Bruce Summers, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. 2018–18552 Filed 8–27–18; 8:45 am] 

BILLING CODE 3410–02–P 

FEDERAL HOUSING FINANCE 

AGENCY 

12 CFR Part 1231 

RIN 2590–AA72 

Golden Parachute and Indemnification 

Payments 

AGENCY: Federal Housing Finance 

Agency. 

ACTION: Notice of Proposed Rulemaking. 

SUMMARY: The Federal Housing Finance 

Agency (FHFA) is proposing to amend 

its rule on golden parachute payments 

to better align the rule with areas of 

FHFA’s supervisory concern and reduce 

administrative and compliance burdens. 

The current rule requires FHFA review 

and consent before a regulated entity or 

the Office of Finance (OF) enters into an 

agreement to make, or makes, a payment 

that is contingent on the termination of 

an affiliated party, if the regulated entity 

or OF is in a troubled condition, in 

conservatorship or receivership, or 

insolvent. FHFA’s experience 

implementing the rule indicates that the 

rule requires review of some agreements 

and payments where there is little risk 

of excess or abuse, and thus that it is too 

broad. 

If amended as proposed, the rule 

would focus on the types of agreements 

and payments that are of greater 

supervisory concern to FHFA. In 

general, these are payments to and 

agreements with executive officers, 

broad-based plans covering large 

numbers of employees (such as 

severance plans), and payments made to 

non-executive-officer employees who 

may have engaged in certain types of 

wrongdoing. The proposed amendments 

would also revise and clarify 

definitions, exemptions, and procedures 

to implement FHFA’s supervisory 

approach. Where possible, FHFA would 

also align procedures and outcomes of 

review under the Golden Parachute 

Payment Rule with requirements of 

FHFA’s rule on executive 

compensation. FHFA expects 

implementation of these changes would 

result in reduced administrative and 

compliance burdens. 

DATES: Comments must be received by 

October 12, 2018. 

ADDRESSES: You may submit your 

comments on the proposed rule, 

identified by regulatory information 

number (RIN) 2590–AA72, by any one 

of the following methods: 

• Agency website: www.fhfa.gov/ 

open-for-comment-or-input. 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. If 

you submit your comment to the 

Federal eRulemaking Portal, please also 

send it by email to FHFA at 

RegComments@fhfa.gov to ensure 

timely receipt by FHFA. Include the 

following information in the subject line 

of your submission: Comments/RIN 

2590–AA72. 

• Hand Delivered/Courier: The hand 

delivery address is: Alfred M. Pollard, 

General Counsel, Attention: Comments/ 


daltland on DSKBBV9HB2PROD with PROPOSALS