83 FR 52946 - Hazelnuts Grown in Oregon and Washington; Order Amending Marketing Order No. 982
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service Federal Register Volume 83, Issue 203 (October 19, 2018)
Agricultural Marketing Service
Federal Register Volume 83, Issue 203 (October 19, 2018)
| Page Range | 52946-52950 | |
| FR Document | 2018-22762 |
[Federal Register Volume 83, Number 203 (Friday, October 19, 2018)] [Rules and Regulations] [Pages 52946-52950] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-22762] ----------------------------------------------------------------------- DEPARTMENT OF AGRICULTURE Agricultural Marketing Service 7 CFR Part 982 [Doc. No. AO-SC-16-0136; AMS-SC-16-0074; SC16-982-1] Hazelnuts Grown in Oregon and Washington; Order Amending Marketing Order No. 982 AGENCY: Agricultural Marketing Service, USDA. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: This final rule amends Marketing Order No. 982 (Order), which regulates the handling of hazelnuts grown in Oregon and Washington. The amendments were proposed by the Hazelnut Marketing Board (Board) and add the authority to regulate quality for the purpose of pathogen reduction and to establish different regulations for different markets. This final rule also makes administrative revisions to subpart headings to bring the language into conformance with the Office of Federal Register requirements. DATES: This rule is effective November 19, 2018. ADDRESSES: Marketing Order and Agreement Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue SW, Stop 0237, Washington, DC 20250-0237. [[Page 52947]] 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 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: Prior documents in this proceeding: Notice of Hearing issued on September 27, 2016, and published in the September 30, 2016, issue of the Federal Register (81 FR 67217); a Recommended Decision issued on June 5, 2017, and published in the June 12, 2017, issue of the Federal Register (82 FR 26859); and a Secretary's Decision and Referendum Order issued September 14, 2017, and published in the September 28, 2017, issue of the Federal Register (82 FR 45208). 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 Orders 12866, 13563, and 13175. 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 the Office of Management and Budget's (OMB) 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). Notice of this rulemaking action was provided to tribal governments through the Department of Agriculture's (USDA) Office of Tribal Relations. Preliminary Statement This action finalizes an amendment to regulations issued to carry out a marketing order as defined in 7 CFR 900.2(j). This rule is issued under Marketing Order No. 982, as amended (7 CFR part 982), regulating the handling of hazelnuts grown in Oregon and Washington. Part 982 (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 final rule was formulated on the record of a public hearing held on October 18, 2016, in Wilsonville, Oregon. The hearing was held 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). Notice of this hearing was published in the Federal Register September 30, 2016 (81 FR 67217). The notice of hearing contained two proposals submitted by the Board and one submitted by USDA. Upon the basis of evidence introduced at the hearing and the record thereof, the Administrator of the Agricultural Marketing Service (AMS) on June 5, 2017, filed with the Hearing Clerk, USDA, a Recommended Decision and Opportunity to File Written Exceptions thereto by July 12, 2017. No exceptions were filed. A Secretary's Decision and Referendum Order was published in the Federal Register on September 28, 2017 (82 FR 45208), directing that a referendum be conducted during the period of October 16 through November 3, 2017, among eligible Oregon and Washington hazelnut growers to determine whether they favored the proposed amendments to the Order. To become effective, the amendments had to be approved by at least two- thirds of those growers voting, or by voters representing at least two- thirds of the volume of hazelnuts represented by voters voting in the referendum. The amendment adding authority to regulate quality was favored by 69.5 percent of the growers voting in the referendum, representing 71.6 percent of the total volume of hazelnuts produced by those voting. The amendment adding authority to establish different regulations for different markets was favored by 67.9 percent of the growers voting in the referendum, representing 69.5 percent of the total volume of hazelnuts produced by those voting. The amendments favored by voters and included in this final order authorize the regulation of quality for the purpose of pathogen reduction and the establishment of different outgoing quality regulations for different markets. USDA also made such changes as were necessary to the Order so that all of the Order's provisions conform to the effectuated amendments. USDA recommended one clarifying change to the language in the new paragraph 982.45(c), which adds authority to regulate quality. USDA determined that the language as presented in the Notice of Hearing was redundant and, therefore, confusing. USDA revised the language in the new paragraph Sec. 982.45(c) so that its intent is more clearly stated. This language is included in the regulatory text of this Order. The amended marketing agreement was subsequently mailed to all hazelnut handlers in the production area for their approval. The marketing agreement was not approved by handlers representing more than 50 percent of the volume of hazelnuts handled by all handlers during the representative period of July 1, 2016, through June 30, 2017. Consequently, no companion handler agreement will be established. Small Business Consideration Pursuant to the requirements set forth in the Regulatory Flexibility Act (RFA), AMS has considered the economic impact of this action 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 so that small businesses will not be unduly or disproportionately burdened. Marketing orders and amendments thereto are unique in that they are normally brought about through group action of essentially small entities for their own benefit. Hazelnut Industry Background and Overview According to the hearing transcript, there are currently over 800 hazelnut growers in the production area. According to National Agricultural Statistics Service (NASS) data presented at the hearing, 2015 grower receipts averaged $2,800 per ton. With a total 2015 production of 31,000 tons, the farm gate value for hazelnuts in that year totaled $86.8 million ($2,800 per ton multiplied by 31,000 tons). Taking the total value of production for hazelnuts and dividing it by the total number of hazelnut growers provides a return per grower of $108,500. A small grower as defined by the Small Business Administration (SBA) (13 CFR 121.201) is one having annual receipts of less than $750,000 annually. Therefore, a majority of hazelnut growers are considered small entities under the SBA standards. Record evidence indicates that approximately 98 percent of hazelnut growers are small businesses. According to the industry, there are 17 hazelnut handlers, four of which handle 80 percent of the crop. While market prices for hazelnuts were not included among the data presented at [[Page 52948]] the hearing, an estimation of handler receipts can be calculated using the 2015 grower receipt value of $86.8 million. Multiplying $86.8 million by 80 percent ($86.8 million multiplied by 80 percent equals $69.4 million) and dividing by four indicates that the largest hazelnut handlers received an estimated $17.3 million each. Dividing the remaining 20 percent of $86.8 million, or $17.4 million, by the remaining 13 handlers, indicates average receipts of $1.3 million each. A small agricultural service firm is defined by the SBA as one having annual receipts of less than $7,500,000. Based on the above calculations, a majority of hazelnut handlers are considered small entities under the SBA's standards. The production area regulated under the Order covers Oregon and Washington. According to the record, Eastern Filbert Blight has heavily impacted hazelnut production in Washington. One witness stated that there is currently no commercial production in that state. As a result, production data entered into the record pertains almost exclusively to Oregon. NASS data indicates bearing acres of hazelnuts reached a fifteen- year high during the 2013-2014 crop year at 30,000 acres. Acreage remained steady, at 30,000 bearing acres for the 2015-2016 crop year. By dividing 30,000 acres by 800 growers, NASS data indicate there are approximately 37.5 acres per grower. Industry testimony estimates that due to new plantings, there are potentially 60,000 bearing acres of hazelnuts, or an estimated 75 bearing acres per hazelnut grower. During the hearing held October 18, 2016, interested parties were invited to present evidence on the probable regulatory impact of the amendments to the Order on small businesses. The evidence presented at the hearing shows that none of the amendments would have a significant economic impact on a substantial number of small agricultural growers or firms. Material Issues This action amends the Order to authorize the regulation of quality for the purpose of pathogen reduction and the establishment of different outgoing quality regulations for different markets. These authorities will aid in pathogen reduction in hazelnuts and increase the industry's ability to meet the needs of different market destinations. During the hearing held on October 18, 2016, interested persons were invited to present evidence on the probable regulatory and informational impact of the amendments to the Order on small businesses. The evidence presented at the hearing shows that the amendments would have no burdensome effects on small agricultural producers or firms. In discussing the impacts of the amendments on growers and handlers, record evidence indicates that the authority to establish quality regulations that require hazelnuts to be treated prior to shipment to reduce pathogen load would not significantly impact the majority of handlers. Regulations implemented under that authority could impose additional costs on handlers required to comply with them. However, witnesses testified that establishing mandatory treatment regulations could increase the industry's credibility and reduce the risk that shipments of substandard product could jeopardize the entire industry's reputation. Record evidence shows that any additional costs are likely to be offset by the benefits of complying with those requirements. The record shows that the proposal to add authority to establish different outgoing quality requirements for different markets would, in itself, have no economic impact on growers or handlers of any size. While regulations implemented under that authority could potentially impose additional costs on handlers required to comply with them, the record indicates the benefits of such regulation would outweigh the potential future costs. The record indicates that allowing different regulations for different markets would likely lower the costs to handlers and prevent multiple treatments of hazelnuts while preserving hazelnut quality. This final rule also makes administrative revisions to subpart headings to bring the language into conformance with the Office of Federal Register requirements. USDA has not identified any relevant Federal rules that duplicate, overlap or conflict with this rule. These amendments are intended to improve the operation and administration of the Order and to assist in the marketing of hazelnuts. Paperwork Reduction Act Current information collection requirements for Part 982 are approved by OMB, under 0581-0178 ``Vegetable and Specialty Crops.'' No changes are anticipated in these requirements as a result of this proceeding. Should any such changes become necessary, they would be submitted to OMB for approval. 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 Government Paperwork Elimination Act, which requires Government agencies in general to provide the public the option of submitting information or transacting business electronically to the maximum extent possible. 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. Civil Justice Reform The amendments to the Order stated herein have been reviewed under Executive Order 12988, Civil Justice Reform. They are not intended to have retroactive effect. The amendments do not preempt any State or local laws, regulations, or policies, unless they present an irreconcilable conflict with this rule. The Act provides that administrative proceedings must be exhausted before parties may file suit in court. Under section 608c(15)(A) of the Act, any handler subject to an order may file with 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. 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 no later than 20 days after the date of entry of the ruling. Order Amending the Order Regulating the Handling of Hazelnuts Grown in Oregon and Washington 1 --------------------------------------------------------------------------- \1\ This order shall not become effective unless and until the requirements of Sec. 900.14 of the rules of practice and procedure governing proceedings to formulate marketing agreements and marketing orders have been met. --------------------------------------------------------------------------- Findings and Determinations The findings and determinations hereinafter set forth are supplementary to the findings and determinations that were previously made in connection with the issuance of the Marketing Order; and all said previous findings and determinations are hereby ratified and affirmed, except insofar as such findings and determinations may be in [[Page 52949]] conflict with the findings and determinations set forth herein. (a) Findings and Determinations Upon the Basis of the Hearing Record Pursuant to the provisions of the Agricultural Marketing Agreement Act of 1937, as amended (7 U.S.C. 601-674), and the applicable rules of practice and procedure effective thereunder (7 CFR part 900), a public hearing was held upon further amendment of Marketing Order No. 982, regulating the handling of hazelnuts grown in Oregon and Washington. Upon the basis of the record, it is found that: (1) The Order, as amended, and as hereby further amended, and all of the terms and conditions thereof, would tend to effectuate the declared policy of the Act; (2) The Order, as amended, and as hereby further amended, regulates the handling of hazelnuts grown in the production area in the same manner as, and is applicable only to, persons in the respective classes of commercial and industrial activity specified in the Order upon which a hearing has been held; (3) The Order, as amended, and as hereby further amended, is limited in its application to the smallest regional production area that is practicable, consistent with carrying out the declared policy of the Act, and the issuance of several orders applicable to subdivisions of the production area would not effectively carry out the declared policy of the Act; (4) The Order, as amended, and as hereby further amended, prescribes, insofar as practicable, such different terms applicable to different parts of the production area as are necessary to give due recognition to the differences in the production and marketing of hazelnuts grown in Oregon and Washington; and (5) All handling of hazelnuts grown in the production area as defined in the Order is in the current of interstate or foreign commerce or directly burdens, obstructs, or affects such commerce. (b) Determinations. It is hereby determined that: (1) Handlers (excluding cooperative associations of growers who are not engaged in processing, distributing, or shipping hazelnuts covered by the order as hereby amended) who, during the period July 1, 2016, through June 30, 2017, handled 50 percent or more of the volume of such hazelnuts covered by said order, as hereby amended, have not signed an amended marketing agreement; (2) The issuance of this amendatory Order, further amending the aforesaid Order, was favored or approved by at least two-thirds of the growers who participated in a referendum on the question of approval and who, during the period of July 1, 2016, through June 30, 2017 (which has been deemed to be a representative period), have been engaged within the production area in the production of such hazelnuts, such growers having also produced for market at least two-thirds of the volume of such commodity represented in the referendum; and (3) The issuance of this amendatory Order advances the interests of growers of hazelnuts in the production area pursuant to the declared policy of the Act. Order Relative to Handling It is therefore ordered, that on and after the effective date hereof, all handling of hazelnuts grown in Oregon and Washington shall be in conformity to, and in compliance with, the terms and conditions of the said Order as hereby amended as follows: The provisions of the amendments to the Order contained in the Secretary's Decision issued on September 14, 2017, and published in the September 28, 2017, issue of the Federal Register (82 FR 45208) will be and are the terms and provisions of this order amending the Order and are set forth in full herein. List of Subjects in 7 CFR Part 982 Hazelnuts, Marketing agreements, Nuts, Reporting and recordkeeping requirements. For the reasons set out in the preamble, 7 CFR part 982 is amended as follows: PART 982--HAZELNUTS GROWN IN OREGON AND WASHINGTON 0 1. The authority citation for part 982 continues to read as follows: Authority: 7 U.S.C. 601-674. [Subpart Redesignated as Subpart A] 0 2. Redesignate the ``Subpart--Order Regulating Handling'' as ``Subpart A--Order Regulating Handling''. 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. Revise the undesignated center heading prior to Sec. 982.45 to read as follows: Grade, Size, and Quality Regulation 0 6. In Sec. 982.45, revise the section heading and add paragraphs (c) and (d) to read as follows: 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 applicable to hazelnuts to facilitate the reduction of pathogens as will contribute to orderly marketing or will 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. (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. 0 7. Amend Sec. 982.46 by adding paragraph (d) to read as follows: 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. [Subpart Redesignated as Subpart B and Amended] 0 8. Redesignate ``Subpart--Grade and Size Regulation'' as subpart B and revise the heading to read as follows: Subpart B--Grade and Size Requirements [Subpart Redesignated as Subpart C] 0 9. Redesignate ``Subpart--Free and Restricted Percentages'' as ``Subpart C--Free and Restricted Percentages''. [[Page 52950]] [Subpart Redesignated as Subpart D] 0 10. Redesignate ``Subpart--Assessment Rates'' as ``Subpart D-- Assessment Rates''. [Subpart Redesignated as Subpart E and Amended] 0 11. Redesignate ``Subpart--Administrative Rules and Regulations'' as subpart E and revise the heading to read as follows: Subpart E--Administrative Requirements Dated: October 15, 2018. Bruce Summers, Administrator, Agricultural Marketing Service. [FR Doc. 2018-22762 Filed 10-18-18; 8:45 am] BILLING CODE 3410-02-P
![52946 Federal Register / Vol. 83, No. 203 / Friday, October 19, 2018 / Rules and Regulations
A proposed rule concerning this dimensions of 46 to 471⁄2 inches in (xv) 8⁄5 Body master carton with
action was published in the Federal length, 37 to 38 inches in width, and 36 approximate inside dimensions of
Register on July 6, 2018 (83 FR 31471). inches in height: Provided, That the 19.5385 x 13.125 x 11.625 inches, one
Copies of the proposed rule were sent container has a Mullen or Cady test of piece;
via email to all Committee members and at least 1,300 pounds, and that it is used (xvi) Euro 8⁄5 (5 Down) with
Texas citrus handlers. The proposed only once for the shipment of citrus approximate inside dimensions of
rule was made available through the fruit: And Provided further, That the 22.813 x 14.688 x 7.0 up to 7.936
internet by USDA and the Office of the container may be used to pack any poly inches;
Federal Register. A 30-day comment or mesh bags authorized in this section, (xvii) Fiberboard one piece display
period ending August 6, 2018, was or bulk fruit; container with approximate inside
provided to allow interested persons to (v) Rectangular or octagonal 2⁄3 dimensions of 23 inches x 15 inches x
respond to the proposal. No comments fiberboard crib with approximate 91⁄2 up to 101⁄2 inches in depth;
were received. dimensions of 46 to 471⁄2 inches in (xviii) Such types and sizes of
A small business guide on complying length, 37 to 38 inches in width, and 24 containers as may be approved by the
with fruit, vegetable, and specialty crop inches in height: Provided, That the crib committee for testing in connection
marketing agreements and orders may has a Mullen or Cady test of at least with a research project conducted by or
be viewed at: http://www.ams.usda.gov/ 1,300 pounds, and that it is used only in cooperation with the committee:
rules-regulations/moa/small-businesses. once for the shipment of citrus fruit: Provided, That the handling of each lot
Any questions about the compliance And Provided further, That the of fruit in such test containers shall be
guide should be sent to Richard Lower container may be used to pack any poly subject to prior approval and under the
at the previously mentioned address in or mesh bags authorized in this section, supervision of the committee.
the FOR FURTHER INFORMATION CONTACT or bulk fruit; * * * * *
section. (vi) Octagonal fiberboard crib with
Dated: October 15, 2018.
After consideration of all relevant approximate dimensions of 46 to 471⁄2
inches in width, 37 to 38 inches in Bruce Summers,
matter presented, including the
information and recommendation depth, and 26 to 261⁄2 inches in height: Administrator, Agricultural Marketing
Provided, That the crib has a Mullen or Service.
submitted by the Committee and other
Cady test of at least 1,300 pounds, and [FR Doc. 2018–22759 Filed 10–18–18; 8:45 am]
available information, it is hereby found
that this rule, as hereinafter set forth, that it is used only once for the BILLING CODE 3410–02–P
will tend to effectuate the declared shipment of citrus fruit: And Provided
policy of the Act. further, That the crib may be used to
pack any poly or mesh bags authorized DEPARTMENT OF AGRICULTURE
List of Subjects in 7 CFR Part 906 in this section, or bulk fruit;
(vii) Fiberboard box holding two Agricultural Marketing Service
Grapefruit, Marketing agreements,
Oranges, Reporting and recordkeeping layers of fruit, with approximate
dimensions of 23 inches in length, 151⁄2 7 CFR Part 982
requirements.
For the reasons set forth in the inches in width, and 7 inches in depth; [Doc. No. AO–SC–16–0136; AMS–SC–16–
preamble, 7 CFR part 906 is amended as (viii) Reusable collapsible plastic 0074; SC16–982–1]
follows: container with approximate dimensions
of 23 inches in length, 15 inches in Hazelnuts Grown in Oregon and
PART 906—ORANGES AND width, and 7 to 11 inches in depth; Washington; Order Amending
GRAPEFRUIT GROWN IN LOWER RIO (ix) Reusable collapsible plastic bin Marketing Order No. 982
GRANDE VALLEY IN TEXAS with approximate dimensions of 363⁄4 x AGENCY: Agricultural Marketing Service,
443⁄4 x 27 inches; USDA.
■ 1. The authority citation for 7 CFR (x) Octagonal bulk triple wall
fiberboard crib with approximate ACTION: Final rule.
part 906 continues to read as follows:
Authority: 7 U.S.C. 601–674.
dimensions of 373⁄4 inches in length, 25 SUMMARY: This final rule amends
inches in width, and 25 inches in Marketing Order No. 982 (Order), which
■ 2. Revise § 906.340(a)(1) to read as height: Provided, That the container has regulates the handling of hazelnuts
follows: a Mullen or Cady test of at least 1,100 grown in Oregon and Washington. The
pounds: And Provided further, That the amendments were proposed by the
§ 906.340 Container, pack, and container container may be used to pack any poly
marking regulations. Hazelnut Marketing Board (Board) and
or mesh bags authorized in this section, add the authority to regulate quality for
(a) * * * or bulk fruit;
(1) Containers. (i) Closed fiberboard the purpose of pathogen reduction and
(xi) Bag having the capacity of 15
carton with approximate inside to establish different regulations for
pounds of fruit, either in a combination
dimensions of 131⁄4 x 101⁄2 x 71⁄4 inches: 1⁄2 poly and 1⁄2 mesh bag or mesh bag;
different markets.
Provided, That the container has a This final rule also makes
(xii) Reusable collapsible plastic mini
Mullen or Cady test of at least 200 administrative revisions to subpart
bin with approximate dimensions of
pounds; headings to bring the language into
391⁄2 inches in length, 24 inches in
(ii) Closed fully telescopic fiberboard conformance with the Office of Federal
width, and 301⁄2 inches in height:
carton with approximate inside Register requirements.
Provided, That the container may be
dimensions of 161⁄2 x 103⁄4 x 91⁄2 inches used to pack any poly or mesh bags DATES: This rule is effective November
amozie on DSK3GDR082PROD with RULES
(Standard carton); authorized in this section, or bulk fruit; 19, 2018.
(iii) Poly or mesh bags having a (xiii) Bag having the capacity of three ADDRESSES: Marketing Order and
capacity of 4, 5, 8, 10, or 18 pounds of pounds of fruit; Agreement Division, Specialty Crops
fruit; (xiv) Standard carton with Program, AMS, USDA, 1400
(iv) Rectangular or octagonal bulk approximate inside dimensions of Independence Avenue SW, Stop 0237,
fiberboard crib with approximate 16.375 x 10.6875 x 10.25 inches; Washington, DC 20250–0237.
VerDate Sep<11>2014 16:11 Oct 18, 2018 Jkt 247001 PO 00000 Frm 00004 Fmt 4700 Sfmt 4700 E:\FR\FM\19OCR1.SGM 19OCR1](https://thefederalregister.org/doc/83_FR_53149/page/1.svg)
![Federal Register / Vol. 83, No. 203 / Friday, October 19, 2018 / Rules and Regulations 52949
conflict with the findings and least two-thirds of the growers who (d) Grade, size, and quality
determinations set forth herein. participated in a referendum on the regulations. Prior to September 20, the
question of approval and who, during Board may consider grade, size, and
(a) Findings and Determinations Upon
the period of July 1, 2016, through June quality regulations in effect and may
the Basis of the Hearing Record
30, 2017 (which has been deemed to be recommend modifications thereof to the
Pursuant to the provisions of the a representative period), have been Secretary.
Agricultural Marketing Agreement Act engaged within the production area in * * * * *
of 1937, as amended (7 U.S.C. 601–674), the production of such hazelnuts, such
and the applicable rules of practice and growers having also produced for ■ 5. Revise the undesignated center
procedure effective thereunder (7 CFR market at least two-thirds of the volume heading prior to § 982.45 to read as
part 900), a public hearing was held of such commodity represented in the follows:
upon further amendment of Marketing referendum; and Grade, Size, and Quality Regulation
Order No. 982, regulating the handling (3) The issuance of this amendatory
of hazelnuts grown in Oregon and Order advances the interests of growers ■ 6. In § 982.45, revise the section
Washington. of hazelnuts in the production area heading and add paragraphs (c) and (d)
Upon the basis of the record, it is pursuant to the declared policy of the to read as follows:
found that: Act.
(1) The Order, as amended, and as § 982.45 Establishment of grade, size, and
hereby further amended, and all of the Order Relative to Handling quality regulations.
terms and conditions thereof, would It is therefore ordered, that on and * * * * *
tend to effectuate the declared policy of after the effective date hereof, all (c) Quality regulations. For any
the Act; handling of hazelnuts grown in Oregon marketing year, the Board may establish,
(2) The Order, as amended, and as and Washington shall be in conformity with the approval of the Secretary, such
hereby further amended, regulates the to, and in compliance with, the terms minimum quality and inspection
handling of hazelnuts grown in the and conditions of the said Order as requirements applicable to hazelnuts to
production area in the same manner as, hereby amended as follows: facilitate the reduction of pathogens as
and is applicable only to, persons in the The provisions of the amendments to will contribute to orderly marketing or
respective classes of commercial and the Order contained in the Secretary’s will be in the public interest. In such
industrial activity specified in the Order Decision issued on September 14, 2017, marketing year, no handler shall handle
upon which a hearing has been held; and published in the September 28, hazelnuts unless they meet applicable
(3) The Order, as amended, and as 2017, issue of the Federal Register (82 minimum quality and inspection
hereby further amended, is limited in its FR 45208) will be and are the terms and requirements as evidenced by
application to the smallest regional provisions of this order amending the certification acceptable to the Board.
production area that is practicable, Order and are set forth in full herein.
consistent with carrying out the (d) Different regulations for different
declared policy of the Act, and the List of Subjects in 7 CFR Part 982 markets. The Board may, with the
issuance of several orders applicable to approval of the Secretary, recommend
Hazelnuts, Marketing agreements, different outgoing quality requirements
subdivisions of the production area Nuts, Reporting and recordkeeping
would not effectively carry out the for different markets. The Board, with
requirements. the approval of the Secretary, may
declared policy of the Act;
(4) The Order, as amended, and as For the reasons set out in the establish rules and regulations
hereby further amended, prescribes, preamble, 7 CFR part 982 is amended as necessary and incidental to the
insofar as practicable, such different follows: administration of this provision.
terms applicable to different parts of the ■ 7. Amend § 982.46 by adding
PART 982—HAZELNUTS GROWN IN
production area as are necessary to give paragraph (d) to read as follows:
OREGON AND WASHINGTON
due recognition to the differences in the
production and marketing of hazelnuts § 982.46 Inspection and certification.
■ 1. The authority citation for part 982
grown in Oregon and Washington; and continues to read as follows: * * * * *
(5) All handling of hazelnuts grown in (d) Whenever quality regulations are
the production area as defined in the Authority: 7 U.S.C. 601–674.
in effect pursuant to § 982.45, each
Order is in the current of interstate or [Subpart Redesignated as Subpart A] handler shall certify that all product to
foreign commerce or directly burdens, be handled or credited in satisfaction of
obstructs, or affects such commerce. ■ 2. Redesignate the ‘‘Subpart—Order a restricted obligation meets the quality
(b) Determinations. It is hereby Regulating Handling’’ as ‘‘Subpart A— regulations as prescribed.
determined that: Order Regulating Handling’’.
(1) Handlers (excluding cooperative ■ 3. Revise § 982.12 to read as follows: [Subpart Redesignated as Subpart B
associations of growers who are not and Amended]
engaged in processing, distributing, or § 982.12 Merchantable hazelnuts.
shipping hazelnuts covered by the order Merchantable hazelnuts means inshell ■ 8. Redesignate ‘‘Subpart—Grade and
as hereby amended) who, during the hazelnuts that meet the grade, size, and Size Regulation’’ as subpart B and revise
period July 1, 2016, through June 30, quality regulations in effect pursuant to the heading to read as follows:
2017, handled 50 percent or more of the § 982.45 and are likely to be available
Subpart B—Grade and Size
volume of such hazelnuts covered by for handling as inshell hazelnuts.
amozie on DSK3GDR082PROD with RULES
Requirements
said order, as hereby amended, have not ■ 4. Amend § 982.40 by revising
signed an amended marketing paragraph (d) to read as follows: [Subpart Redesignated as Subpart C]
agreement;
(2) The issuance of this amendatory § 982.40 Marketing policy and volume ■ 9. Redesignate ‘‘Subpart—Free and
Order, further amending the aforesaid regulation. Restricted Percentages’’ as ‘‘Subpart C—
Order, was favored or approved by at * * * * * Free and Restricted Percentages’’.
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![52950 Federal Register / Vol. 83, No. 203 / Friday, October 19, 2018 / Rules and Regulations
[Subpart Redesignated as Subpart D] Office of Finance Board of Directors plan. Two commenters also argued that
regulation. a regulated board should be permitted to
■10. Redesignate ‘‘Subpart— articulate goals, strategies, and risks at
Assessment Rates’’ as ‘‘Subpart D— DATES: The final rule is effective on
December 18, 2018. a high level, rather than with granular
Assessment Rates’’. specificity. Other comments included
FOR FURTHER INFORMATION CONTACT:
[Subpart Redesignated as Subpart E one concerning the effect that the new
Daniel Callis, Principal Risk Analyst,
and Amended] activities process and conservatorship
Office of the Chief Accountant, at
have on the strategic business plan
■ 11. Redesignate ‘‘Subpart— Daniel.Callis@fhfa.gov or (202) 649–
process.
Administrative Rules and Regulations’’ 3448, or Ming-Yuen Meyer-Fong, Office The comments are summarized
as subpart E and revise the heading to of General Counsel, at Ming- below, along with FHFA’s responses
read as follows: Yuen.Meyer-Fong@fhfa.gov or (202) and discussion of changes, if any, to the
649–3078 (these are not toll-free final rule text in consideration of the
Subpart E—Administrative numbers), Federal Housing Finance comments.
Requirements Agency, Constitution Center, 400
Seventh Street SW, Washington, DC A. Commenters Agreed on a
Dated: October 15, 2018. 20219. The telephone number for the Requirement for a Board-Approved
Bruce Summers, Telecommunications Device for the Strategic Business Plan
Administrator, Agricultural Marketing Hearing Impaired is (800) 877–8339. The commenters agreed generally
Service. SUPPLEMENTARY INFORMATION: with the establishment of a regulatory
[FR Doc. 2018–22762 Filed 10–18–18; 8:45 am] requirement for a board-approved
I. Background
BILLING CODE 3410–02–P strategic business plan. The commenters
On April 6, 2018, FHFA published a also generally agreed that a strategic
proposed rule that would amend the business plan should have measurable
existing FHFA regulation on goals and objectives to hold
FEDERAL HOUSING FINANCE Responsibilities of Boards of Directors, management accountable.
AGENCY Corporate Practices and Corporate
Governance Matters. The proposed rule B. Appropriate Balance Between High-
12 CFR Parts 1239 and 1273 would amend, and extend to apply to Level View and Granular Detail
the board of directors of each Enterprise, (§ 1239.14(a) (Opening Provision);
RIN 2590–AA90 § 1239.14(a)(1)(i) and (ii);
the existing provision requiring the
board of directors for each Federal § 1239.14(a)(3); and § 1239.14(a)(5))
Responsibilities of Boards of
Directors, Corporate Practices, and Home Loan Bank to have in effect at all Commenters differed on the
Corporate Governance times a strategic business plan for the appropriate balance between board
entity. It would also require the strategic flexibility to plan from a high-level
AGENCY: Federal Housing Finance business plan to: (1) Articulate perspective and at a more detailed level.
Agency. measurable operating goals; (2) address Two commenters proposed modifying
ACTION: Final rule. credit needs identified through ongoing the final rule to permit a board to
market research and stakeholder articulate goals and strategies at a high
SUMMARY: The Federal Housing Finance consultations; (3) describe significant level, while one commenter supported
Agency (FHFA) is amending its activities being planned, including any requirements on the level of individual
regulation on the Responsibilities of changes to business strategy; (4) be activities.
Boards of Directors, Corporate Practices, supported by appropriate and timely The commenters offered specific
and Corporate Governance for its research; and (5) identify current and suggestions to revise the language of the
regulated entities. The final rule amends emerging risks, including those regulation to permit high-level
the existing regulation pertaining to associated with the entity’s existing discussion. With respect to proposed
Federal Home Loan Bank strategic activities or new activities. It would also § 1239.14(a)(1)(ii), FHFA received
business plans so that it applies as well require a board to review the strategic suggestions for the plan to articulate
to the Enterprises, and makes a number business plan at least annually, re-adopt goals and objectives for ‘‘strategic
of adjustments and conforming changes it at least once every three years, and activities,’’ not ‘‘for each significant
to the existing regulation. As amended, establish reporting requirements for and activity and all authorized new
the regulation requires that the board of monitor implementation of the strategic activities’’ as proposed. Another
directors of each regulated entity have business plan. commenter suggested that goals and
in effect at all times a strategic business The proposed rule would also repeal objectives be articulated for ‘‘significant
plan that describes its strategy for two outdated provisions, and make a business strategy.’’
achieving its mission and public conforming change to the Office of For proposed § 1239.14(a)(3), one
purposes. It extends to the Enterprise Finance Board of Directors regulation. commenter suggested that the
boards the existing provision requiring requirement should be that the plan
the board of each Federal Home Loan II. Summary of Comments and FHFA describe ‘‘significant strategic activities’’
Bank to review the strategic business Responses while another suggested ‘‘strategies.’’
plan at least annually, re-adopt it at FHFA received comments on the Commenters suggested that the final
least once every three years, and proposed rule from Fannie Mae and regulation exclude from strategic
establish reporting requirements for and Freddie Mac (Enterprises) and U.S. planning changes in business strategy
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monitor implementation of the strategic Mortgage Insurers (USMI), a trade not determined ‘‘significant.’’
business plan. The final rule adds a new association comprising various private For proposed § 1239.14(a)(5),
provision regarding current and mortgage insurance companies. The commenters suggested excluding less-
emerging risks, repeals two outdated commenters generally agreed with the than-significant risks from being
provisions of the existing regulation, establishment of a regulatory required to be addressed in the strategic
and makes a conforming change to the requirement for a strategic business business plan. One commenter
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Document Created: 2018-10-19 01:26:16
Document Modified: 2018-10-19 01:26:16
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Final rule. | |
| Dates | This rule is effective November 19, 2018. | |
| 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] | |
| FR Citation | 83 FR 52946 | |
| CFR Associated | Hazelnuts; Marketing Agreements; Nuts and Reporting and Recordkeeping Requirements |
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