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

39369 

Vol. 82, No. 159 

Friday, August 18, 2017 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 982 

[Doc. No. AMS–SC–17–0036; SC17–982–1 

PR] 

Hazelnuts Grown in Oregon and 

Washington; Increased Assessment 

Rate 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Proposed rule. 

SUMMARY: This proposed rule would 

implement a recommendation from the 

Hazelnut Marketing Board (Board) to 

increase the assessment rate established 

for the 2017–2018 and subsequent 

marketing years from $0.005 to $0.006 

per pound of hazelnuts handled under 

the marketing order (order). The Board 

locally administers the order and is 

comprised of growers and handlers of 

hazelnuts operating within the area of 

production. The Board’s membership 

also includes one public member. 

Assessments upon hazelnut handlers 

are used by the Board to fund 

reasonable and necessary expenses of 

the program. The marketing year begins 

July 1 and ends June 30. The assessment 

rate would remain in effect indefinitely 

unless modified, suspended, or 

terminated. 

DATES: Comments must be received by 

September 18, 2017. 

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 proposed 

rule will be included in the record and 

will be made available to the public. 

Please be advised that the identity of the 

individuals or entities submitting the 

comments will be made public on the 

Internet at the address provided above. 

FOR FURTHER INFORMATION CONTACT: Dale 

Novotny, Marketing Specialist, or Gary 

D. Olson, Regional Director, Northwest 

Marketing Field Office, Marketing Order 

and Agreement Division, Specialty 

Crops Program, AMS, USDA; 

Telephone: (503) 326–2724, Fax: (503) 

326–7440, or Email: DaleJ.Novotny@

ams.usda.gov or GaryD.Olson@

ams.usda.gov. 

Small businesses may request 

information on complying with this 

regulation by contacting Richard Lower, 

Marketing Order and Agreement 

Division, Specialty Crops Program, 

AMS, USDA, 1400 Independence 

Avenue SW., STOP 0237, Washington, 

DC 20250–0237; Telephone: (202) 720– 

2491, Fax: (202)720–8938, or Email: 

Richard.Lower@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: This 

proposed rule is issued under Marketing 

Agreement No. 115 and Order No. 982, 

both as amended (7 CFR part 982), 

regulating the handling of hazelnuts 

grown in Oregon and Washington, 

hereinafter referred to as the ‘‘order.’’ 

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 Department of Agriculture 

(USDA) is issuing this proposed rule in 

conformance with 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). 

This proposed rule has been reviewed 

under Executive Order 12988, Civil 

Justice Reform. Under the marketing 

order now in effect, Oregon and 

Washington hazelnut handlers are 

subject to assessments. Funds to 

administer the order are derived from 

such assessments. It is intended that the 

assessment rate as proposed herein 

would be applicable to all assessable 

hazelnuts beginning on July 1, 2017, 

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. 

This proposed rule would increase 

the assessment rate for the 2017–2018 

and subsequent marketing years from 

$0.005 to $0.006 per pound of 

hazelnuts. 

The order provides authority for the 

Hazelnut Marketing Board (Board), with 

the approval of USDA, to formulate an 

annual budget of expenses and collect 

assessments from handlers to administer 

the program. The members and alternate 

members of the Board are growers and 

handlers of Oregon and Washington 

hazelnuts. The Board’s membership also 

includes one public member and an 

alternate public member, neither of 

whom are involved in the production or 

handling of hazelnuts. The Board 

members are familiar with the program’s 

needs and with the costs for goods and 

services in their local area and are thus 

in a position to formulate an appropriate 

budget and assessment rate. The 

assessment rate is formulated and 

discussed in a public meeting. Thus, all 

directly affected persons have an 

opportunity to participate and provide 

input. 

For the 2000–2001 and subsequent 

marketing years, the Board 

recommended, and USDA approved, an 

assessment rate that would continue in 

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39370 Federal Register / Vol. 82, No. 159 / Friday, August 18, 2017 / Proposed Rules 

effect from marketing year to marketing 

year unless modified, suspended, or 

terminated by USDA upon 

recommendation and information 

submitted by the Board or other 

information available to USDA. 

The Board met on May 17, 2017, and 

unanimously recommended 2017–2018 

marketing year expenditures of 

$878,627 and an assessment rate of 

$0.006 per pound of hazelnuts handled. 

In comparison, last year’s budgeted 

expenditures were $765,598. The 

assessment rate of $0.006 per pound is 

$0.001 per pound higher than the rate 

currently in effect. 

The major expenditures 

recommended by the Board for the 

2017–2018 marketing year include 

$210,590 for administrative expenses, 

$111,000 for a crop survey, $342,037 for 

promotional activities, $35,000 for 

consulting, and $180,000 for 

undesignated emergency/miscellaneous 

expenses. Budgeted expenses for these 

items in the 2016–2017 marketing year 

were $138,088, $96,000, $234,510, 

$35,000, and $262,000, respectively. 

The increase in administrative expenses 

reflects the addition of an 

administrative staff member. The budget 

increase for marketing and promotion 

expenditures reflects the Board’s desire 

to improve domestic hazelnut’s share of 

the edible nut market and to increase 

consumer awareness of Oregon and 

Washington hazelnut products. 

The assessment rate recommended by 

the Board was derived at an annual 

meeting of the Board where budgetary 

matters for the forthcoming marketing 

year were discussed. After an open 

discussion with growers, handlers, and 

industry personnel, the Board 

established a crop estimate for the 

2017–2018 marketing year. The Board 

considered the crop estimate, the 

recommended 2017–2018 marketing 

year expenses, and the Board’s financial 

reserve when it recommended the 

assessment rate increase. 

Shipments for the year are estimated 

to be 80,000,000 pounds, which should 

provide $480,000 in assessment income 

at the $0.006 per pound assessment rate. 

Income derived from handler 

assessments, along with funds from the 

Board’s authorized reserve and other 

income, would be adequate to cover 

budgeted expenses. Section 982.62(a) of 

the order specifies that the financial 

reserve is not to exceed approximately 

one marketing year’s operational 

expenses. The Board expects its 

financial reserve to be $316,881 at the 

beginning of the 2017–2018 marketing 

year and $117,348 at the end of the year, 

which would be within the reserve limit 

authorized under the order. 

The proposed assessment rate would 

continue in effect indefinitely unless 

modified, suspended, or terminated by 

USDA upon recommendation and 

information submitted by the Board or 

other available information. 

Although this assessment rate would 

be in effect for an indefinite period, the 

Board would continue to meet prior to 

or during each marketing year to 

recommend a budget of expenses and 

consider recommendations for 

modification of the assessment rate. The 

dates and times of Board meetings are 

available from the Board or USDA. 

Board meetings are open to the public 

and interested persons may express 

their views at these meetings. USDA 

would evaluate Board recommendations 

and other available information to 

determine whether modification of the 

assessment rate is needed. Further 

rulemaking would be undertaken as 

necessary. The Board’s 2017–2018 

marketing year budget, and those for 

subsequent marketing years, 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. 

According to the Board, there are 

approximately 800 growers of hazelnuts 

in the production area and 

approximately 17 handlers subject to 

regulation under the marketing order. 

Small agricultural producers (growers) 

are defined by the Small Business 

Administration (SBA) as those having 

annual receipts less than $750,000, and 

small agricultural service firms 

(handlers) are defined as those whose 

annual receipts are less than $7,500,000 

(13 CFR 121.201). 

According to the latest National 

Agricultural Statistic Service (NASS) 

data, 2015 grower prices averaged $1.40 

per pound. With a total production of 

62,000,000 pounds in the same year, the 

farm gate value for hazelnuts in 2015 

totaled $86.8 million ($1.40 per pound 

multiplied by 62,000,000 pounds). 

Taking the total 2015 value of 

production for hazelnuts and dividing it 

by the approximate number of hazelnut 

growers provides an average return per 

grower of $108,500. It is estimated by 

the Board that approximately 98 percent 

of hazelnut growers under the marketing 

order have annual receipts less than 

$750,000. Therefore, a majority of 

hazelnut growers are considered small 

entities under the SBA standards. 

According to the Board, four of the 

approximately 17 hazelnut handlers 

process and ship 80 percent of the total 

crop. An estimation of handler receipts 

can be calculated using the same 2015 

farm gate value of $86.8 million from 

NASS, described above. Multiplying 

$86.8 million by 80 percent ($86.8 

million × 80 percent = $69.4 million) 

and dividing by four indicates that the 

largest hazelnut handlers received an 

estimated $17.4 million each. Dividing 

the remaining 20 percent ($17.4 million) 

by the remaining 13 handlers yields 

average annual receipts of $1.3 million 

per handler. Therefore, under SBA’s 

definition of a small business, about 24 

percent of handlers could be considered 

large businesses and about 76 percent 

could be considered small businesses. 

Thus, the majority of hazelnut handlers 

in Oregon and Washington may be 

classified as small entities. 

This proposal would increase the 

assessment rate established for the 

Board and collected from handlers for 

the 2017–2018 and subsequent 

marketing years from $0.005 to $0.006 

per pound of hazelnuts handled. The 

Board unanimously recommended 

2017–2018 expenditures of $878,627 

and an assessment rate of $0.006 per 

pound. The proposed assessment rate of 

$0.006 per pound is $0.001 per pound 

higher than the 2016–2017 rate. The 

quantity of assessable hazelnuts for the 

2017–2018 marketing year is estimated 

at 80,000,000 pounds. Thus, the $0.006 

per pound rate should provide $480,000 

in assessment income. This amount, 

along with the Board’s reserve funds 

and other income, should be adequate to 

cover budgeted expenses. 

The major expenditures 

recommended by the Board for the 

2017–2018 marketing year include 

$210,590 for administrative expenses, 

$111,000 for a crop survey, $342,037 for 

promotional activities, $35,000 for 

consulting, and $180,000 for 

undesignated emergency/miscellaneous 

expenses. Budgeted expenses for these 

items in the 2016–2017 marketing year 

were $138,088, $96,000, $234,510, 

$35,000, and $262,000, respectively. 

The Board believes there is a need to 

expand its promotion and outreach 

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Federal Register / Vol. 82, No. 159 / Friday, August 18, 2017 / Proposed Rules 39371 

activities to increase consumers’ 

awareness of, and desire for, Oregon and 

Washington hazelnuts in the edible tree 

nut market. The Oregon and 

Washington hazelnut industry has 

experienced a large amount of growth in 

new orchard plantings in recent years. 

The supply of hazelnuts grown in the 

production area is expected to increase 

greatly as newly planted trees come into 

nut bearing age (approximately 3 to 7 

years after planting, depending on the 

variety of hazelnut tree). The proposed 

increase to the assessment rate is 

necessary to fund expanded 

promotional activities intended to assist 

marketing of the anticipated increased 

supply of hazelnuts in the forthcoming 

years. 

Prior to arriving at this budget and 

assessment rate, the Board considered 

information from various sources, such 

as the Board’s Budget and Personnel 

Committee, representatives from private 

research firms, and input from industry 

personnel. Alternative expenditure 

levels were discussed by these groups, 

based upon the relative value of various 

activities to the hazelnut industry. Many 

growers at the May 17, 2017, meeting 

were in favor of even greater spending 

by the Board on promotional activities 

for hazelnuts, while handlers were more 

conservative. 

The Board ultimately determined that 

2017–2018 marketing year expenditures 

of $878,627 were appropriate, and the 

recommended assessment rate, when 

combined with reserve funds and other 

income, would generate sufficient 

revenue to meet its budgeted expenses. 

Further, the Board will maintain a 

$180,000 emergency fund throughout 

the 2017–2018 marketing year in order 

to cover any unforeseen or emergency 

operational expenses. If the 2017–2018 

emergency funds are not expended, the 

resulting operating reserve would not 

exceed the limit authorized under the 

order. 

A review of historical information and 

preliminary information pertaining to 

the upcoming marketing year indicates 

that the grower price for the 2017–2018 

marketing year could range between 

$0.81 and $1.80 per pound (NASS, 

2017). Therefore, the estimated 

assessment revenue for the 2017–2018 

marketing year as a percentage of total 

grower revenue could range between 

0.74 and 0.33 percent, respectively. 

This 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 

marketing order. In addition, the 

Board’s meeting was widely publicized 

throughout the Oregon and Washington 

hazelnut industry, and all interested 

persons were invited to attend the 

meeting and participate in Board 

deliberations on all issues. Like all 

Board meetings, the May 17, 2017, 

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 

informational impacts of this action on 

small businesses. 

In accordance with the Paperwork 

Reduction Act of 1995 (44 U.S.C. 

Chapter 35), the order’s information 

collection requirements have been 

previously approved by OMB and 

assigned OMB No. 0581–0178, 

Vegetable and Specialty Crops. No 

changes in those requirements as a 

result of this action are necessary. 

Should any changes become necessary, 

they would be submitted to OMB for 

approval. 

This proposed rule would impose no 

additional reporting or recordkeeping 

requirements on either small or large 

Oregon and Washington hazelnut 

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 action. 

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. 

A 30-day comment period is provided 

to allow interested persons to respond 

to this proposed rule. Thirty days is 

deemed appropriate because: (1) The 

2017–2018 marketing year begins on 

July 1, 2017, and the marketing order 

requires that the rate of assessment for 

each marketing year apply to all 

assessable hazelnuts handled during 

such marketing year; (2) the Board 

needs to have sufficient funds to pay its 

expenses, which are incurred on a 

continuous basis; and (3) handlers are 

aware of this action, which was 

unanimously recommended by the 

Board at a public meeting and is similar 

to other assessment rate actions issued 

in the past. 

List of Subjects in 7 CFR Part 982 

Hazelnuts, Marketing agreements, 

Nuts, Reporting and recordkeeping 

requirements. 

For the reasons set forth in the 

preamble, 7 CFR part 982 is proposed to 

be amended as follows: 

PART 982—HAZELNUTS GROWN IN 

OREGON AND WASHINGTON 

■ 1. The authority citation for 7 CFR 

part 982 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

■ 2. Section 982.340 is revised to read 

as follows: 

§ 982.340 Assessment rate. 

On and after July 1, 2017, an 

assessment rate of $0.006 per pound is 

established for Oregon and Washington 

hazelnuts. 

Dated: August 15, 2017. 

Bruce Summers, 

Acting Administrator, Agricultural Marketing 

Service. 

[FR Doc. 2017–17488 Filed 8–17–17; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF LABOR 

Veterans’ Employment and Training 

Service 

20 CFR Part 1011 

[Docket No. VETS–2017–0001] 

RIN 1293–AA21 

HIRE Vets Medallion Program 

AGENCY: Veterans’ Employment and 

Training Service (VETS), Labor. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: VETS is publishing this 

Notice of Proposed Rulemaking (NPRM) 

to propose regulations implementing the 

Honoring Investments in Recruiting and 

Employing (HIRE) American Military 

Veterans Act of 2017 (HIRE Vets Act of 

2017 or Act). The HIRE Vets Act 

requires the Department of Labor (DOL, 

Department) to annually solicit and 

accept voluntary information from 

employers for consideration of 

employers to receive a HIRE Vets 

Medallion Award. VETS will review 

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