[Federal Register Volume 81, Number 190 (Friday, September 30, 2016)]
[Proposed Rules]
[Pages 67217-67219]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-23669]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 982

[Docket No. AO-SC-16-0136; AMS-SC-16-0074; SC16-982-1]


Hazelnuts Grown in Oregon and Washington; Hearing on Proposed 
Amendment of Marketing Order No. 982

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Notice of hearing on proposed rulemaking.

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SUMMARY: Notice is hereby given of a public hearing to receive evidence 
on proposed amendments to Marketing Order No. 982 (order), which 
regulates the handling of hazelnuts grown in Oregon and Washington. Two 
amendments are proposed by the Hazelnut Marketing Board (Board), which 
is responsible for local administration of the order. The proposed 
amendments would add both the authority to regulate quality and the 
authority to establish different regulations for different markets. In 
addition, the Agricultural Marketing Service (AMS) proposes to make any 
such changes as may be necessary to the order to conform to any 
amendment that may result from the hearing. The proposals are intended 
to aid in pathogen reduction and meet the needs of different market 
destinations.

DATES: The hearing date is October 18, 2016, 8:30 a.m. to 5:00 p.m.

ADDRESSES: The hearing will be held at the Holiday Inn, 25425 SW. 95th 
Ave., Wilsonville, Oregon 97070.

FOR FURTHER INFORMATION CONTACT: Melissa Schmaedick, Marketing Order 
and Agreement Division, Specialty Crops Program, AMS, USDA, Post Office 
Box 952, Moab, UT 84532; Telephone: (202) 557-4783, Fax: (435) 259-
1502, or Michelle Sharrow, 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] or 
[email protected].
    Small businesses may request information on this proceeding by 
contacting Richard E. 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].

SUPPLEMENTARY INFORMATION: This administrative action is instituted 
pursuant to the Agricultural Marketing Agreement Act of 1937, as 
amended (7 U.S.C. 601-674), hereinafter referred to as the ``Act.'' 
This action is governed by the provisions of sections 556 and 557 of 
title 5 of the United States Code and, therefore, is excluded from the 
requirements of Executive Order 12866, 13563 and 13175. Notice of this 
rulemaking action was provided to tribal governments through USDA's 
Office of Tribal Relations.

[[Page 67218]]

    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) seeks to 
ensure that within the statutory authority of a program, the regulatory 
and informational requirements are tailored to the size and nature of 
small businesses. Interested persons are invited to present evidence at 
the hearing on the possible regulatory and informational impacts of the 
proposals on small businesses.
    The amendments proposed herein have been reviewed under Executive 
Order 12988, Civil Justice Reform. They are not intended to have 
retroactive effect.
    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. A 
handler is afforded the opportunity for a hearing on the petition. The 
Act provides that the district court of the United States in any 
district in which the handler is an inhabitant, or has his or her 
principal place of business, has jurisdiction to review the 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 hearing is called pursuant to the provisions of the Act and the 
applicable rules of practice and procedure governing the formulation of 
marketing agreements and orders (7 CFR part 900).
    The proposed amendments were recommended by the Board and submitted 
to USDA on May 16, 2016. After reviewing the proposals and other 
information submitted by the Board, USDA made a determination to 
schedule this matter for hearing.
    The proposed amendments to the order recommended by the Board are 
summarized as follows:
    1. Amend the order to add authority to regulate quality. This would 
include: Adding a new Sec.  982.45(c); adding a new Sec.  982.46(d); 
and revising Sec. Sec.  982.12 and 982.40. Corresponding changes would 
also revise the subheading ``Grade and Size Regulation'' prior to Sec.  
982.45 and the section heading for Sec.  982.45 ``Establishment of 
grade and size regulations.'' to include quality.
    2. Amend the order by adding Sec.  982.45(d) to add authority to 
establish different outgoing quality regulations for different markets.
    The Board works with USDA in administering the order. The proposals 
submitted by the Board have not received the approval of USDA. The 
proposed changes would add authority to regulate quality to aid in 
pathogen reduction and establish different outgoing quality regulations 
for different market destinations. The proposed amendments are intended 
to aid in the marketing of hazelnuts and improve the operation and 
administration of the order.
    In addition to the proposed amendments to the order submitted by 
the Board, AMS proposes to make any such changes as may be necessary to 
the order to conform to any amendment that may result from the hearing, 
or to correct minor inconsistencies and typographical errors.
    The public hearing is held for the purpose of: (i) Receiving 
evidence about the economic and marketing conditions which relate to 
the proposed amendments of the order; (ii) determining whether there is 
a need for the proposed amendments to the order; and (iii) determining 
whether the proposed amendments or appropriate modifications thereof 
will tend to effectuate the declared policy of the Act.
    Testimony is invited at the hearing on all the proposals and 
recommendations contained in this notice, as well as any appropriate 
modifications or alternatives.
    All persons wishing to submit written material as evidence at the 
hearing should be prepared to submit four copies of such material at 
the hearing. Four copies of prepared testimony for presentation at the 
hearing should also be made available. To the extent practicable, eight 
additional copies of evidentiary exhibits and testimony prepared as an 
exhibit should be made available to USDA representatives on the day of 
appearance at the hearing. Any requests for preparation of USDA data 
for this rulemaking hearing should be made at least 10 days prior to 
the beginning of the hearing.
    From the time the notice of hearing is issued and until the 
issuance of a final decision in this proceeding, USDA employees 
involved in the decisional process are prohibited from discussing the 
merits of the hearing issues on an ex parte basis with any person 
having an interest in the proceeding. The prohibition applies to 
employees in the following organizational units: Office of the 
Secretary of Agriculture; Office of the Administrator, AMS; Office of 
the General Counsel; and the Specialty Crops Program, AMS.
    Procedural matters are not subject to the above prohibition and may 
be discussed at any time.

List of Subjects in 7 CFR Part 982

    Hazelnuts, Marketing agreements, Nuts, Reporting and recordkeeping 
requirements.

PART 982--HAZELNUTS GROWN IN OREGON AND WASHINGTON

0
1. The authority citation for 7 CFR part 982 continues to read as 
follows:

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

0
2. Testimony is invited on the following proposals or appropriate 
alternatives or modifications to such proposals.
    Proposals submitted by the Hazelnut Marketing Board:

Proposal Number 1

0
3. Revise Sec.  982.12 to read as follows:


Sec.  982.12  Merchantable hazelnuts.

    Merchantable hazelnuts means inshell hazelnuts that meet the grade, 
size, and quality regulations in effect pursuant to Sec.  982.45 and 
are likely to be available for handling as inshell hazelnuts.
0
4. Amend Sec.  982.40 by revising paragraph (d) to read as follows:


Sec.  982.40  Marketing policy and volume regulation.

* * * * *
    (d) Grade, size, and quality regulations. Prior to September 20, 
the Board may consider grade, size, and quality regulations in effect 
and may recommend modifications thereof to the Secretary.
* * * * *
0
5. In Sec.  982.45:
0
a. Revise the heading prior to this section;
0
b. Revise the section heading; and
0
c. Add paragraph (c).
    The revisions and addition read as follows:

Grade, Size, and Quality Regulation


Sec.  982.45  Establishment of grade, size, and quality regulations.

* * * * *
    (c) Quality regulations. For any marketing year, the Board may 
establish, with the approval of the Secretary, such minimum quality and 
inspection requirements, to facilitate the reduction of pathogens, 
applicable to hazelnuts, as will contribute to orderly marketing or be 
in the public interest. In such marketing year, no handler shall handle 
hazelnuts unless they meet applicable minimum quality and inspection 
requirements as evidenced by certification acceptable to the Board.
0
6. Revise Sec.  982.46 by adding paragraph (d):

[[Page 67219]]

Sec.  982.46  Inspection and certification.

* * * * *
    (d) Whenever quality regulations are in effect pursuant to Sec.  
982.45, each handler shall certify that all product to be handled or 
credited in satisfaction of a restricted obligation meets the quality 
regulations as prescribed.

Proposal Number 2

0
7. Amend Sec.  982.45 by adding paragraph (d) to read as follows:


Sec.  982.45  Establishment of grade, size, and quality regulations.

* * * * *
    (d) Different regulations for different markets. The Board may, 
with the approval of the Secretary, recommend different outgoing 
quality requirements for different markets. The Board, with the 
approval of the Secretary, may establish rules and regulations 
necessary and incidental to the administration of this provision.
    Proposal submitted by USDA:

Proposal Number 3

    Make other such changes as may be necessary to the order to conform 
with any amendment thereto that may result from the hearing, or to 
correct minor inconsistencies and typographical errors.

    Dated: September 27, 2016.
Elanor Starmer,
Administrator, Agricultural Marketing Service.
[FR Doc. 2016-23669 Filed 9-29-16; 8:45 am]
 BILLING CODE 3410-02-P